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The development agreement described in section 11-5-3 of this chapter, shall require the developer, at the option of the city, to deposit cash in escrow, furnish a performance bond, or file a letter of credit to ensure payment of the total cost of the required improvements. The total cost of the required improvements shall be estimated by the developer and approved by the city engineer; said estimate shall include, but not be limited to, the following costs: the cost of construction or installation; engineering; preparation of feasibility report; preparation of plans and specifications; inspection; legal services; right of way acquisition; construction interest; and related administrative costs. The city shall be entitled to reimbursement from the financial guarantee for the cost of the required improvements, for any expense incurred by the city to cause completion of the work, and payment therefor, in the event of subdivider default of the development agreement, and for any damages or legal costs, including reasonable attorney fees, sustained by the city on account of any breach thereof. Upon completion of the work and termination of any subdivider liability under the development agreement, the financial guarantee or any cash balance and interest earnings retained by the city shall be refunded to the subdivider. In the event the cost of the required improvements or any part thereof are assessed, the financial guarantee may be retained by the city until such time as the subdivider has completed its obligations under the development agreement. Financial guarantees shall be provided by the subdivider as follows:
A. Improvements Not Assessed: A one year warranty, acceptable to the city on the improvements made; and the escrow or letter of credit (or subdivision bond) per subsection 11-5-3B or C of this chapter.
B. Improvements Assessed: If the city consents to assess the costs of the required improvements against the subdivider's property, the city may require the subdivider to deposit cash in escrow, or an irrevocable letter of credit with the city in an amount equal to one hundred twenty five percent (125%) of the total cost of the required improvements to subdivider's property. The subdivider shall also agree, in the developer's agreement, to pay at the time of sale of each lot the respective special assessments levied against each such lot sold within the subdivision or to pay into escrow one hundred twenty five percent (125%) of any pending special assessments against each lot sold within the subdivision. At completion of subdivision, and total reimbursement to the city of any such special assessments, any remaining funds shall be returned to the developer or a letter of credit shall be terminated.
The city council will not accept dedication of the required improvements or release the financial guarantees until the city engineer has submitted a statement that all required improvements have been satisfactorily completed and the treasurer indicates all payments have been made. (Ord. 2014-02, 2-18-2014)