(A) Payment. The required improvements to be furnished and installed by the subdivider, which are listed and described above, are to be furnished and installed at the sole expense of the subdivider and at no expense to the public. If any improvement installed within the subdivision will be of substantial benefit to lands beyond the boundaries of the subdivision, the Council may make provision for causing a portion of the cost of the improvement, representing the benefit to those lands, to be assessed against the same, and in that case the subdivider will be required only to pay for those portions of the whole cost of the improvements as will represent the benefit to the property within the subdivision.
(B) Required improvement contract. Prior to installation of required improvements and prior to approval of the final plat, the subdivider shall enter into a contract with the city requiring that the subdivider furnish and construct the improvements at his or her expense and in accordance with plans and specifications to be approved by the City Engineer. The contract shall stipulate the type and extent of the improvements to be constructed, the cost of the construction, the city’s authority to inspect the construction and the amount of the escrow deposit or performance bond to be furnished in accordance with division (C) of this section. Alternatively, the city, in its discretion may require that, or, at the request of the subdivider may agree to undertake the installation of the required improvements, in which event the subdivider shall enter into a contract with the city agreeing to pay the expense thereof, including all construction, engineering, legal, financing and administrative costs incurred by the city by reason thereof; by this contract the developer shall agree to the method and schedule of payment to the city as determined by the city and, if required, shall agree to furnish the escrow deposit or surety bond described in division (C) below.
(C) Financial guarantee. Prior to the approval of the final plat, if the subdivider is to undertake the installation of the required improvements, he or she shall make an escrow deposit or, in lieu thereof, furnish a performance bond equal to the total construction cost of the improvements as estimated by the City Engineer, and including the cost of inspection by the city, or if the city undertakes the installation of the improvements, and if requested by the city, the subdivider shall make an escrow deposit or, in lieu thereof, furnish a surety bond in the amount of the sum he or she has agreed to pay the city for the installation of the improvements. Any deposit or bond shall accrue to the city in case of default of the subdivider. In case of default, the city shall appropriate the deposit and pursue its remedies provided by the bond. The term of any deposit or bond shall be specified by the city. Any bond must be subject to approval by the city. Deposits shall be made with the Administrator/Clerk-Treasurer of the city or with a responsible escrow agent acceptable to the city. The city may agree to provide for reduction of the amount of any bond or deposit by reason of completion of, or payment for, the improvements for which the bond or deposit has been made. Nothing herein shall preclude the city from making special assessments against benefitted property for improvements made on it.
(1989 Code, § 12.07, Subd. 2)