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C I T Y 0 F SAN B ERN A R DIN 0
INTEROFFICE MEMORANDUM
TO:
Mayor W. R. Holcomb
FROM:
Dennis A. Barlow, Sr. Asst. City Attorney
DATE:
April 20, 1992
RE:
$250,000 loan to Dukes and Dukes
At the Commission meeting of April 6, 1992, the Commission
approved a loan of $250,000 to Dukes and Dukes on the Arrowvista
project with the documents to be prepared.
The vehicle to accomplish this, as understood at the meeting,
was an amendment to the Joint Development Agreement. In preparing
the necessary Amendment staff required the developer to provide
ti tle reports to be assure that the surety was sufficient to
support the loan. I understand that they will be provided soon.
When it is received you have the authority to execute the amendment
and the security documents and thereafter the loan may be funded.
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C I T Y 0 F SAN B ERN A R DIN 0
INTEROFFICE MEMORANDUM
TO:
Mayor W.R. Holcomb
FROM:
Dennis A. Barlow, Sr. Asst. City Attorney
DATE:
April 20, 1992
RE:
Dukes and Dukes Retention
As one of the phases of the Dukes and Dukes housing project
(Arrowvista) the Agency has retained 10% of the payouts pursuant to
the Agreement and state law to be sure that the laborers, suppliers
and subcontractors on this phase of the project are paid. State
law requires that these funds be retained for 30 days following the
recording of a Notice of Completion. The Notice was recorded on
April 16, 1992. This retention amount is approximately $185,000.
The developer has proposed that we release this retention as
follows:
$121,000 to the vendors and subcontractors
$63,000 to the developer
He has then proposed to provide the Agency with an
indemnification letter to protect the Agency should any unknown
subcontractors file stop notices within the 30 day period. The
Agency would also be protected by the funds to be paid from the
remaining phases of this project.
Based on the foregoing it would be my opinion that the
retained funds can be released upon receipt of the indemnification
letter.
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DE NIS A. RLOW
DAB:js[Dukes.Mem]
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