Council denies Lehi Misiones letter-of-credit request and plat, citing incomplete documentation

The Mission City Council on Monday denied a developer—s request to accept an emailed assurance of a letter of credit and denied the related subdivision plat for Lehi Misiones.

Council members said staff had received an email from the bank indicating a letter of credit would be issued but had not yet received the actual letter-of-credit document or the full supporting documentation. City staff and council members expressed concern about city liability if the developer failed to complete required infrastructure and the city later had to draw on a letter of credit without clear, executed documentation.

Council discussed options: approve subject to receipt of a formal letter of credit and city attorney/engineering review, table until documents are complete, or deny. One councilmember said they preferred denial rather than creating a potential city liability. The council voted to deny the request concerning the letter of credit (agenda item 61) and then denied the related plat approval (agenda item 62). Both motions carried unanimously, 5-0.

City staff said the developer estimated about six to eight weeks remaining to finish infrastructure, and engineering staff confirmed the developer had started on-site work and delivered materials. The city—s engineer reviewed the submitted cost estimate and found the approved amount would be sufficient to complete Phase 1 infrastructure but not sufficient for Phase 2.

Council urged the developer to return with complete documentation and a higher percentage of completion before council would consider recording the plat or accepting a substitute financial guarantee.

Votes: both denials were recorded 5-0 in favor of denial (all five council members present voted to deny).