Prior to installation of any required improvements and prior to approval of the final plat, the subdivider shall enter into a written development agreement with the city in a form as approved by the city attorney. The development agreement will outline the financial guarantee required, as well as the terms of development. Developers have three (3) options for installation of city utilities (listed below) that provide for public and private installation of improvements. With options in subsections A and B of this section, the time for initiation and completion of work shall be determined by the city upon recommendation of the city engineer. The city reserves the authority to correlate the work with any other city work being done or contracted. With options in subsections A, B, and C of this section, the city will charge an administrative fee, at the current established rate for such purposes, to defray administrative costs.
A. Developer Petitioned: The developer petitions the city to install the utilities. The developer and all involved property owners sign a one hundred percent (100%) petition for the improvements. The developer escrows with the city the estimated engineering costs for a feasibility study. A public hearing may be required if additional city improvements are necessary or other properties are affected. The city will assess all concerned properties to recoup project costs together with engineering, inspection, legal, and administrative costs. The city may limit the amount of funds for such projects pursuant to a bonded debt policy. The city has the ultimate discretion on whether to accept the petition for this option.
B. Developer Petitioned And Paid: The developer petitions the city to install the improvements and agrees to pay all costs upon completion of project activities. The developer shall provide an escrow or a letter of credit equal to one hundred twenty five percent (125%) of project costs. The city shall be entitled to draw upon that escrow or letter of credit as the project proceeds. Once the project is completed and paid for, and the improvements are accepted and warranted for an additional year, the letter of credit shall be canceled or the balance in escrow shall be returned.
C. Developer Installed: The developer shall provide the city with a feasibility study for the project. If said study is approved, the developer shall provide surety in the form of a cash escrow or a letter of credit which equals one hundred twenty five percent (125%) of the project cost in a form to be preapproved by the city attorney. If one hundred twenty five percent (125%) of the project cost is over three hundred thousand dollars ($300,000.00), a performance bond shall be required in lieu of a cash escrow or letter of credit at the same amount and as prescribed by Minnesota statutes. The performance bond shall be approved by the city attorney prior to its acceptance. Developer shall provide complete construction plans for said project, which shall be approved by the city engineer as to form, city specifications, and engineer's estimate of project cost. Developer shall utilize the city engineer for construction staking, inspection and for record drawings. Developer shall deposit an engineering and administrative escrow with the city that equals twenty percent (20%) of the project costs. Developer shall have its own contractor to do the work. Upon completion and acceptance, the developer shall provide a one year warranty bond and an administrative fee which equals five percent (5%) of the project costs; whereupon the city shall release the project surety. (Ord. 2014-02, 2-18-2014)