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2005-10-25 I1 I ,~ PLEASE TURN OFF AT CEI,L PHONES & PAGERS IN COUNCIL CHAMBERS. AGENDA Page Open meeting Action approving agenda, with any amendments (--3. Action approving minutes: September 27, 2005 1-2 4. Report by Westport Properties on Indian Knoll Manor, with any 3-12 necessary action 5. Action approving letter of credit for Lost Lake portion of Mound 13-17 Harbor Renaissance development Redevelopment update, by representatives of Mound Harbor Renaissance Adjourn MOUND HOUSING AND REDEVELOPMENT AUTHORITY SEPTEMBER 27, 2005 The Housing and Redevelopment Authority of and for the City of Mound, Minnesota, met in regular session on Tuesday, September 27, 2005, at 7:20 p.m. in the council chambers of city hall. Members Present: Chairperson Pat Meisel; Commissioners Bob Brown, Mike Specht, John Beise, and David Osmek. Others Present: City Attorney John Dean, Acting Executive Director Gino Businaro, City Clerk Bonnie Ritter, Community Development Director Sarah Smith, Public Works Director Carlson Moore, Cindy Reiter, Sharon Wardwell. 1. Open Meetinq Chair Meisel opened the meeting at 7:20 p.m. 2. Approve Aqenda MOTION by Brown, seconded by Beise to approve the agenda. All voted in favor. Motion carried. 3. Approve Minutes MOTION by Osmek, seconded by Brown to approve the minutes of September 13, 2005. All voted in favor. Motion carried. 4. Appoint Tenant Representative from Indian Knoll Manor MOTION by Osmek, seconded by Beise to appoint Sharon Wardwell as the tenant representative to the HRA, according to the current HRA By-Laws. All voted in favor. Motion carried. 5. Report by Westport Properties on Indian Knoll Manor Cindy Reiter of Westport Properties presented the report as follows: A. August bank statement B. July Income statement: Osmek questioned line item 433000 - Gas, stating that year to date spent is $24,380 with the prorated budget being $15,750. Reiter stated that their fiscal year ends in September and HUD calculates this figure with a formula based on last year's utility bills. It was noted that HUD will supplement that through their operating subsidy fund. C. Review of bills paid: MOTION by Osmek, seconded by Speht to approve the payment of bills for August 2005. D. Manager's Report (i) the bids have been received to remodel two ADA units and the work should start in the next 30 days. (ii) Vacancy Update - there are currently two vacancies, which are the two units being modified to ADA as mentioned above. 1 1 HRA Minutes - September 27, 2005 Eo Resident Council Report - Sharon Wardwell reported that the tenants are · very pleased with the new improvements in the building and these improvements give the building a much hOmier feeling. 6. Adjourn MOTION by Osmek, seconded by Brown to adjourn at 7:31 p.m. All voted in favor. Motion carried. Attest: Bonnie Ritter, City Clerk Chair Pat Meisel 2 MOUND HRA INDIAN KNOLJ. APARTMI~NT$ PROPERTY MANAGER'S MONTHLY REPORT October 2§, 200§ Manager's Agenda · September Bank Statement · August Income Statement · Review of bills paid · Managers Report Introduction of Kathleen Walker - New on sire manager All is as it should be · Resident Council Repom~ -3- WELLS FARGO BANK, N.A. NICOLLET.MALL OFFICE POST OFFICE BOX B 5t~l MINNEAPOLIS, MN 55479 I,hl',hh,,ih,lh,,I,,h,,Ihll,,,,hlh,,hh,h,,ll,il.I HOUSZNG & REDEVELOPMENT AUTHORZTY SPECZAL ACCOUNT CITY OF MOUND FINANCE DIRECTOR 55~1 NAYWOOD RD HOUND MN 555&q-i&27. Page i of 4 482 Account Number: Statement End Date: Number of Enclosures: _ (C0300) 09/30/05 39 If you have any questions about this statement or your accounts, call: 800-225-5935 [1-800-CALL-WELLS). Your Accounts at a Glance Account Beginning Deposits/ WithdraWals/ Ending Type Balance Credits Debits Balance Basic Business Checking with Interest 12,368.41 16,912,00 -21,099~20 8,181.21 000-0033530 · News from Wells Fargo Online Statements & Check Images:- another time saving solution from Wells Fargo Business Online Banking,. Nc you can view, print and download yOur statements and Check images online, anytime, Banking °hline can also help protect your busii~ess from fraud by eliminating the need to send statements and check images through the mail. Enroll today to get more convenience, control and: security for your business. Just go to www:wellsfargo.com/biz. Basic Business Checking with Interest. O00-O033530' Housing & Redevelopment Authority Special Account Aug 3~ Beginning Balance Sep 30 Ending Balance Deposits and Credits Effective Posted Date Date Transaction Detail Sep 07 DepoSit Sep 07 Deposit Sep 07 Deposit Sep 07 Deposit Sep 07 Deposit Sep 09 Deposit Sep 12 Hud Treas 303 Misc Pay 091205 410962421860103 RMT*VV*O99096705 ........ hud Operating Fund MN0740 Sep 12 Deposit Sep Sep ~ Deposit Interest Payment 12,368.41 8,181.21 Amount 4,392.00 3,993.00 823.00 661.00 4O6,25 382.00 8,045.60 56.00 151'.25' 1.90 Continued on next page -4- Housing & Redevelopment Authority SpecialAccount 'Checks Paid Page 2 of 4 483 Account Number: '~ Statement End Date: 000.0033530 09130105 C Check ~ Date 2037 2038 2039 2040 2041 2043 2044 2045 2046 2047 2048 2049 2050 2052 2053 2054 2055 2056 2057 Se~ 07 Se~ 08 Se~ 02 Seo 06 SeD 01 * Seo 06 Seo Of SeD 08 SeD 08 Se 02 Amo~t 59:68 62.00 103.00 109.73 181.29 82.43 3.00 79.00 210.02 6.69 Se Se Se Se Se Se 07 2,699.84 01 3,630.81 09 461.98 02 150.00 08 436.53 07 52.27 08 61.5.q 15 850.00 20 62.00 22 206.00 Check 2059 2060 2061 2062 2063 20~ 2066 2067 2069 2070 2071 2073 2074 2O75 2076 2077 Date Amount Sep 19 Sep 19 Sep 21 Sep19 Sep 21 Sep 19 Sep 19 Sep 20 Se 2O Se 22 Se Se S~ 15 19 15 27 26 29 29. 26 29 73.61 341.03 152.57 246.47 133.13 54.77 65.65 80.48 47.92 315.25 51.17 2,034.01 3,647.50 464.46 181.29 59.00 98.57 52.00 3,492.46 * GaR in Check Sec uence Daily Balance Summary Date Balance Acg 31 ' 12,368.41 Se ~. 01 8,553.3.1 Se ~ 02 8,293.62 S~ ~ 06 8, t01~46 se ~' ~07' 15,:56~:92 Se ~ 14,715,78 Se 09 14,635.80 SoDD 12 20,737,40 Se~ 15 16,188.73 Average Collected Balance $ Interest Summery .......... Annual Percentage Weld Earned This Period Interest Earned During This Period Year to Date Interest and Bonuses Paid 12,904.51 Date Sep 1.6 Sep 19 se~ 20 sep, 21 s~p ~ Sep 26 Sep 27 seP 29 Sep. 30 Balance 16,339.98 13,524.44 13,334.04 13,048.34 12,52.7.09 12,293.80 11,829.34 8,17g.31 8,181.21 0.18% 1.90 18.45 Continued on next page -5- /14Ella Summary Statement September 2005 For more information, call MBIA Asset Management at (800)395-5505 Fax: (800)765-7600 Mound Housing and RedeveloPment Authority Account Number:. MN-01-0258-2001 Account Name: GENERAL FUND Beginning Contributions Withdrawals Income Average Daily Month End Balance Earned Balance Balance This Month $485,214.28 $10,000.00 $0.00 $1;322.80 $486,226.06 $496,537.08 Fkscal YTD Endill[ 12/31/05 $417,708.28 $70,000.00 $0.00 $8,828.80 $438,768.47 $496,537.08 Account Number:. MN-01-0258-2002 Account Name: MOUND HUD Beginning Contributions Withdrawals Income Average Daily Month End Balance Earned Balance Balance This Month $11,756.95 $0.00 ! $10,000.001 $31.08 $11,440.02 $1,788.03 Fiscal YTD $10,000.00 Endin$12/31/05 $11,556.05 $0.00 $231.98 $11,625.19 $1,788.03 Total of all accounts Beginning Contributions Withdrawals Income Average Daily Month End Balance Earned Balance Balance This Month $496,971.23 $10,000.00 $10,000.00: $1,353.88 $497,666.08 $498,325.11 Fiscal YTD Ending $429,264.33 $70,000.00 i $10,000.00 $9,060.78 $450,393.66 $498,325.11 September 2005 Page:. 1 -6- Mound, MN Public Housin¢~ 2020 Commerce Boulevard Mound. MN 55364 As OF Aul3ust 31. 2005 BALANCE SHEET ASSETS' 111101 - 111700- 112200- 112900- 116200- 121100- 140002- 140003- 140005- 140007- 140008 - 140009- 140016- 140017- 140055- 140095- 150600- Cash General Fund Petty Cash Tenants Accounts Receivable City of Mound General Fund Investments Prepaid Insurance Development Cost Development Cost Contra Accumlated Depreciation Buildings Furniture,Equipment,Machines-Dwelling Fumiture,Equipment, Machines-Admin Land Improvements Building Improvements Mod Cost Complete Mod Cost Uncomplete Mod Cost Uncomplete Contra TOTAL ASSETS SURPLUS AND LIABILITIES 211400 - Tenants Secudty Deposits 211410 - Tenants Pet Deposits 211499 - Secudty Deposit Interest 212900 - Notes Pay Levy Fund 213700 - Payment in Lieu of Taxes 213701 - PILOT Current Year 280200 - HUD PHA Contribution 280600 - Retained Earnings Current Year Net Activity TOTAL SURPLUS AND LIABILITIES 4,783.52 100.00 (271.00) 910.11 11,509.58 1,348.80 1,505,904.64 (2,107,638.55) (1,776,855.74) 1,642,970.53 33,551.61 17,493.01 11,1'08.20 565,942.47 601,733.91 98,888.92 (23,124.08) 588.355.93 (8,255.00) (2,700.00) (613.14) (70,000.00) (526.23) (2,901.93) (308,629.59) (174,117.62) (20,612.42) 1588.355.93) 1 Mound, MN Public Housin~ 2020 Commerce Boulevard Mound. MN 55364 As Of Au;ust 31, 2005 Statement of Operating ReCeipts & Expenditures 311000 - Dwelling Rental Total Rental Income 361000 - Investment Interest/General Funds 369000 - Other Income 802000 - Operating Subsidy Total Other Operating Receipts Total Receipts 414000- 415000- 417000- 417100- 419000- Expenses 411200 - Manager Payroll 413000- Legal Expense Staff Training Travel Accounting Fees Auditing Fees Sundry-Administrative 419500 - Outside Management Total Administrative Expense 422000 - Tenant Services Total Tenant Services Expense 431000- Water 432000- Electricity 433000- Gas 439000 - Other Utility Expense 439100 - Garbage Removal Total Utilities Expense 441000 - Maintenance Labor 442000- Materials 443000 - Contract Costs 448000 - Protective Services Total Maintenance Expense Current YTD Activity Balance YTD Prorated Budget (10,808.00) (114,031.37) (117,874.13) (10,808.00) (114,031.37) (117,874.13) Over (Under) Budget (3,842.76) 3,842.76 (1.63) (18.89) (366.63) (347.74) (117.50) (3,647.90) (2,530.00) 1,117.90 (6,045.50) (66,500.40) (66,500.50) (0.10) (6,164.63) (70,167.19) (69,397.13) (770.06) (16,972.63) (184,1'98.56) (187,271.26) 3~072.70 2,908.00 33,765.45 35,979.13 (2,213.68) 0.00 0.00 641.63 (641.63) 0.00 0.00 1,283.37 (1,283.37) 0.00 160.66 '733.37 (572.71) 150.92 3,067.12 3,254.13 (187.01 ) 0.00 7,000.00 5,041.63 1,958.37 2,002.91 15,769.01 19,323.37 (3,554.36) 0.00 8,500.00 0.00 8,500.00 5,061.83 68,262.24 66,256.63 2,005.61 1,833.37 0.00 0.00 0.00 1,833.37 0.00 (1,833.37) (1,833.37) 630.32 1,740.88 3,666.63 (1,925.75) 1,969.05 12,026.29 16,225.00 ~,198.71) 482.68 24,863.56 17,325.00 7,538.56 1,723.99 12,740.46 9,533.37 3,207.09 461.98 4,621.59 4,950.00 (328.41) 5r268.02 55,992.78 51~700.00 4~292.78 3,265.75 38,351.25 45,723.37 (7,372.12) 602.90 6,106.79 7,333.37 (1,226.58) 622.65 8,217.91 6,160.00 2,057.91 150.00 403.49 641.63 ~38.14) 4~641.30 53,079.44 59~858.37 (6~778.93) Mound, MN Public Housin¢~ 2020 Commerce Boulevard Mound. MN 55364 A.~ Of Auqust 31. 2005 Statement of Operating Receipts & Expenditures 451000 - Insurance 452000 - Pmts In Lieu Of Taxes 454000 - Employee Benefit Contributions 457000- Collection Loss Total General Expense YTD Over Current YTD Prorated (Under) Activity. Balance Budget ~ 1,018.83 10,549.71 9,551.63 998.08 277.00 2,901.93 6,618.37 (3,716.44) 926.07 13,440.35 10,835.00 2,605.35 0.00 794.34 0.00 794.34 2~221.90 27,686.33.. 27~005.00 681.33 Total Routine Expense 601000 - Pdor Year Adjustments-Cash Total Nonroutine Expense Total Expense .17~193.05 205,020.79 206~653.37 (1~632.58) 0.00 1,361.30 0.00 1,361~30 0.00 1,361.30 0.00 1,36'!.30 17~193.05 206,382.09 206~653.37 (271.28) INDIAN KNOLL MANOR 2020 COMMERCE BLVD MOUND, MN 55364 PAID INVOICES SORTED BY VENDOR FROM September 1, 2005 THROUGH September 30, 2005 October 19, 2005 PAGE: 1 VENiDOR VENDOR CHECK ACCTG CHECK M INVOICE INVOICE CUMULATIVE NUMBER NAME DATE DATE NUMBER S NUMBER AMOUNT TOTAL 3 PROGRAMMED MANAGEMENT CORP 09-12-2005 SEP2005 2067 S 70325789 47.92 TOTAL PAID 47.92 47.92 6 WESTPORT PROPERTIES INC 09-08-2005 SEP2005 2056 S AUG MGMT FEE 850.00 6 WESTPORT PROPERTIES INC 09-12-2005 SEP2005 2069 S AUGUST POSTAGE 21.17 6 WESTPORT PROPERTIES INC 09-12-2005 SEP2005 2069 S SEPT RECURRING CHG 30.00 TOTAL PAID 901.17 949.09 7 WESTPORT PROPERTIES PAYROLL 09-12-2005 SEP2005 2071 S 09/15/05 PAYROLL 3647.50 7 WESTPORT PROPERTIES PAYROLL 09-26-2005 SEP2005 2077 S 09/30/05 PAYROLL 3492.46 TOTAL PAID 7139.96 8089.05 20 XCEL ENERGY 09-12-2005 SEP2005 2070 S 51-6383341-8 AUG 2034.01 TOTAL PAID 2034.01 10123.06 34 HOME DEPOT CREDIT SERV-MOUI~D 09-12-2005 SEP2005 2061 S 20557 42.59 34 HOME DEPOT CREDIT SERV-MOUl~D 09-12-2005 SEP2005 2061 S 5028368 33.44 34 HOME DEPOT CREDIT SERV-MOUND 09-12-2005 SEP2005 2061 S 8123851 21.27 34 HOME DEPOT CREDIT SERV-MOUND 09-12-2005 SEP2005 2061 S 9119869 55.27 TOTAL PAID 152.57 10275.63 54 RENTAL RESEARCH SERVICES, INC.09-16-2005 SEP2005 2076 S Y87232 AUGUST 52.00 TOTAL PAID 52.00 10327.63 62 Minnesota Multi Housing Assoc 09-16-2005 SEP2005 2074 S HUD TRAINING 59.00 TOTAL PAID 59.00 10386.63 78 DREAM KARE INC 09-12-2005 SEP2005 2060 S 2294 AUG 341.03 TOTAL PAID 341.03 10727.66 87 Office Depot 09-12-2005 SEP2005 2065 S 304446056 56.32 87 Office Depot 09-12-2005 SEP2005 2065 S 304972206 9.33 87 Office Depot 09-16-2005 SEP2005 2075 S 306055100 98.57 TOTAL PAID 164.22 10891.88 -10- INDIAN KNOLL MANOR 2020 'COMMERCE BLVD MOUND, MN 5~364 R VENDOR NUMBER NAME PAID INVOICES SORTED BY VENDOR FROM September 1, 2005 THROUGH September 30, 2005 October 19, 2005 PAGE: 2 CHECK ACCTG CHECK M INVOICE INVOICE CUMULATIVE DATE DATE NUMBER S ~ER AMOUNT TOTAL 93 Allied Waste Services 09-16-2005 SEP2005 2072 S 0894-000174484 464.46 TOTAL PAID 464.46 11356.34 95 B SYLVESTER, LLC 09-12-2005 SEP2005 2057 S AUGUST SERVICE 62.00 TOTAL PAID 62.00 11418.34 99 MINNESOTA ELEVATOR INC 09-16-2005 SEP2005 2073 S 80341 181.29 TOTAL PAID 181.29 11599.63 101 C NABER and ASSOCIATES 09-12-2005 SEP2005 2058 S JULY SERVICES 103.00 101 C NABER and ASSOCIATES 09-12-2005 SEP2005 2058 S AUGUST SERVICES 103.00 TOTAL PAID 206.00 11805.63 102 MOUND TRUE VALUE HARDW~RE 09-12-2005 SEP2005 2064 S 1657 10.48 102 MOUND TRUE VALUE HARDWARE 09-12-2005 SEP2005 2064 S 1757 22.98 102 MOUND TRUE VALUE HARDWARE 09-12-2005 SEP2005 2064 S 8976 10.58 ! 2 MOUND TRUE VALUE PIARDWARE 09-12-2005 SEP2005 2064 S 9463 10.23 2 MOUND TRUE VALUE HARDWARE 09-12-2005 SEP2005 2064 S 818892 .50 TOTAL PAID 54.77 11860.40 107 The Laker 09-12-2005 SEP2005 2068 S 5657 MOUND 315.25 TOTAL PAID 315.25 12175.65 111 Cingular/AT&T Wireless 09-12-2005 SEP2005 2059 S 13225982 AUG 73.61 TOTAL PAID 73.61 12249.26 125 IKON FINANCIAL SERVICE - LEASE09-12~2005 SEP2005 2063 S 66459109 133.13 TOTAL PAID 133.13 12382.39 128 On Time Delivery Service 09-12-2005 SEP2005 2066 S 9533 80.48 TOTAL PAID 80.48 12462.87 137 Karen Rondeau 00-00-0000 SEP2004 1691 S 2020/311 RET S/D 383.28 TOTAL PAID 383.28 12846.15 -11- INDIAN KNOLL MANOR 2020 COMMERCE BLVD MOUND, MN 55364 FROM September 1, PAID INVOICES SORTED BY VENDOR 2005 THROUGH September~30, 200~ October 19, 2005 PAGE: 3 VENDOR VENDOR CHECK ACCTG CHECK M INVOICE INVOICE CUMULATIVE NUMBER NAME DATE DATE NUMBER S NUMBER AMOLTNT TOTAL 90005 HSBC BUSINESS SOLUTIONS 09-12-2005 SEP2005 2062 S 302421505095398 137 .98 90005 HSBC BUSINESS SOLUTIONS 09-12-2005 SEP2005 2062 S 302422205097666 12 .38 90005 HSBC BUSINESS SOLUTIONS 09-12-2005 SEP2005 2062 S 318821405068158 96.11 TOTAL PAID 246.47 13092.62 -12- CHARTERED 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 (612) 337-93® telephone · (612) 337-9310 fax http://www, kennedy -graven.com MEMORANDUM 10/20/05 To: HRA From: John Dean Subject: MHR Letter of Credit. The Redevelopment Contract with Mound Harbor Renaissance, LLC requires MHR to furnish the HRA with a letter of credit. The amount of the letter of credit was reduced to $500,000 by the First Amendment to the Redevelopment Contract. The letter of credit, to be delivered to the HRA at closing, serves as security for MHR's tax deficiency guarantee. The point is to assure that there are sufficient funds, either through tax increment or the Redeveloper's guarantee or a combination, to make debt service payments on the dump cleanup bonds. The State Bank of Long Lake has provided me with a draft of the letter of credit, and following discussions with the bank, a few revisions have been made. The attached letter of credit contains the revisions that we suggested. I recommend that the HRA, by motion, approve the form of the letter of credit in substantially the form contained in the attachment. -13- LETTER OF CREDIT IRREVOCABLE LETTER OF CREDIT NO. DATE: October 14, 2005 FOR ACCOUNT OF: Mound Harbor Renaissance Development, LLC TO BENEFICIARY: Housing and Redevelopment Authority in and for the City of Mound, Minnesota AMOUNT: $500,000.00 EXPIRATION: Aprill5,2007 PROJECT NAME: Villas on Lost Lake Ladies and Gentlemen: INTRODUCTION: State Bank of Long Lake ("SBLL") hereby agrees to provide this Letter of Credit ("Letter") for the benefit of the Housing and Redevelopment Authority in and for the City of Mound, Minnesota ("Authority") for the account of Mound Harbor Renaissance Development, LLC ("Redeveloper") for use in the development of the project commonly known as Villas on Lost Lake ("Project"). PURPOSE: This Letter is issued to secure performance by Redeveloper of its obligations under the Lost Lake Tax Deficiency Guarantee under Article VIII of the Contract for Private Redevelopment by and between Authority and Redeveloper dated March 22, 2005 ("Contract"), as amended by the First Amendment to Contract for Private Redevelopment dated July 5, 2005 ("First Amendment") for the Project. This Letter is issued only to secure the performance for the Lost Lake Tax Deficiency Guarantee and shall not secure any other obligations of Redeveloper, except the obligations of Redeveloper to renew the Letter of Credit pursuant to Section 8.2(c) of the Contract. -14- LETTER OF CREDIT Page 2 AUTHORIZATION: SBLL hereby authorizes you to draw a sum not to exceed Five Hundred Thousand and no/100 Dollars ($500,000.00), available by your draft at sight, to be drawn upon Default by Redeveloper in the performance of the terms of the Contract and First Amendment between Authority and Redeveloper. PRESENTATION OF DRAFT: All drafts drawn must be marked "Drawn Under SBLL Letter of Credit No. dated October 14, 2005." The draft must be delivered to the address of SBLL contained herein, during normal business hours, marked: "Attention: Thomas D. Johnson. Urgent: Letter of Credit Draft." FORM OF DRAFT: The draft must be accompanied by this original Letter and a sworn and notarized written Statement of the Authority's Executive Director ("Statement"), stating in detail and with specificity the terms and items of the Default by Redeveloper under the Contract and First Amendment. The Statement shall state in detail and with specificity the amount necessary to cure the specific Default. Any draft drawn hereunder shall be limited to the amount of Default as contained in the Statement. TERMINATION: This Letter shall expire no sooner than April 15, 2007, unless released prior to that date by the Authority. RENEWAL: This Letter will not automatically renew. Any renewal hereof shall only be made in writing by SBLL, with notice to Authority, and must be made at least sixty (60) days before the date of expiration hereof. REDUCTION IN AMOUNT OF LETTER: This Letter shall be reduced in amount pursuant to Section 7 of the First Amendment. RIGHTS OF THIRD PARTIES: All conditions or obligations of SBLL hereunder, including the obligation to pay drafts, are imposed solely and exclusively for the benefit of Authority. No other person shall, under any circumstances, be deemed to be a beneficiary of such conditions. NONASSIGNABLE: Neither Authority nor Redeveloper may assign this Letter or any of its rights or obligations hereunder without the prior written consent of SBLL HEADINGS: The headings of the sections, paragraphs and subdivisions of this Letter are for the convenience of reference only, and are not to be considered a part hereof and shall not limit or otherwise affect any of the terms hereof. -15- LETTER OF CREDIT Page 3 INVALID PROVISIONS TO AFFECT NO OTHERS: The unenforceability or invalidity of any provision hereof shall not render any other provision or provisions hereof unenforceable or invalid. AMENDMENTS: Neither this Letter nor any provision hereof may be changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against whom enforcement of the change, waiver, discharge or termination is sought. NOTICES: Any notice which any party hereto may desire or may be required to give to any of the parties shall be in writing and the mailing thereof by certified mail, or equivalent, to the respective parties' addresses set forth below or to such o~er place such party may by notice in writing designate as its address shall constitute service of notice hereunder: STATE BANK OF: LONG LAKE AT: STATE BANK OF LONG LAKE 1964 W. Wayzata Boulevard P. O. Box 636 Long Lake, MN 55356-0636 ATTN: Mr. Thomas D. Johnson REDEVELOPER AT: MOUND HARBOR RENAISSANCE DEVELOPMENT ATTN: Mr. Thomas A. Stokes AUTHORITY AT: HOUSING AND REDEVELOPMENT AUTHORITY 5432 Maywood Road Mound, MN 55364 ATTN: Executive Director -16- LETTER OF CREDIT Page 4 GOVERNING LAW: This Letter is made and executed pursuant to and is intended to be governed by the laws of the State of Minnesota. STATE BANK OF LONG LAKE By: Thomas D. Johnson Its: Senior Vice President -17-