(A) Performance Guarantee with Installation. The developer further agrees that it will furnish to the city a non-interest earning cash deposit in the amount of 10% of the engineer’s estimated construction costs and an irrevocable letter of credit from the bank confirming that the developer has, on deposit, funds in an amount not less than 100% of the engineer’s estimated cost of construction, to be used solely to finance and pay the total cost of all the required subdivision improvements in the said subdivision and such funds shall be placed in the name of the city subject only to the terms of this escrow agreement.
(B) Performance Guarantee in Lieu of Installation. The developer may execute and file with the city financial guarantees in lieu of actual installation or completion of the required improvements and/or to secure the rehabilitation of any lands cleared for construction but not improved. Such guarantees shall be concurrently filed with the applications for approval of the final plat. Such guarantees shall be in the form of an escrow account in the name of the city, a letter of credit, a certified check or other equivalent security as approved by Council for the particular circumstance.
(1) Terms. The terms of such guarantees shall be determined by Council. However, they shall not be for a longer period than two years unless Council, by resolution, extends the time.
(2) Amount of Guarantee. The financial guarantees shall be in an amount equal to the estimated total cost of materials and labor required to install or construct the improvements. Such costs shall be recommended by the City Engineer and approved by Council. When any portion of an improvement has, upon inspection, been found to be satisfactorily completed, a reduction in the guarantee or partial withdrawal of funds equal to the estimated costs of such completed improvements may be authorized by Council upon the recommendation of the City Engineer.
(3) Progressive Installation. The developer may apply for final approval and recording of only a portion of the entire subdivision. Under such a progressive unit development procedure, the installation of required improvements and sale or lease of lots may proceed only on that portion of the subdivision which has been approved and recorded.
(Ord. 52-90, passed 5-7-1990; Ord. 80-92, passed 9-21-1992; Ord. 108-92, passed 10-19-1992; Ord. 12-16, passed 2-22-2016)