Loading...
IMPROVEMENT GUARANTEES
Where required improvements have not been completed and certified by the applicant subdivider, improvement guarantees may be provided to ensure the proper installation of such required street, utility, and other improvements. The nature and duration of the guarantee shall be structured to achieve this goal without adding unnecessary costs to the developer.
(Ord., passed 10-13-92; Am. Ord. 07-019, passed 8-14-07; Am. Ord. 2024-012, passed 6-11-24)
Before the recording of final subdivision plats, or as a condition of final plat approval, the City Council may require and may accept the following financial guarantees in an amount equal to 125% of the cost of installing the improvements.
(A) Security bond. The applicant may obtain a security bond from a surety bonding company authorized to do business in the state.
(B) Letter of credit. The applicant may provide an irrevocable letter of credit from a bank or other reputable institution.
(C) Escrow account. The applicant may deposit cash, or other instruments readily convertible into cash at face value, with the city or in escrow with a bank.
(D) Property. The applicant may provide as a guarantee land or other property.
(E) Improvement guarantee. The applicant may provide as a guarantee an improvement agreement between the applicant, lender, and the city.
(F) Prepayment. The applicant may make a prepayment to the city in the full amount of said improvements. Any unexpended funds shall be returned to the applicant.
(Ord., passed 10-13-92; Am. Ord. 07-019, passed 8-14-07; Am. Ord. 2024-012, passed 6-11-24)
The City Council shall have the right to refuse any of the above financial guarantees and require construction and installation of all improvements by the subdivider, where:
(A) Past performance of the subdivider is unsatisfactory; or
(B) The selected option is unacceptable.
(Ord., passed 10-13-92; Am. Ord. 07-019, passed 8-14-07; Am. Ord. 2024-012, passed 6-11-24)
In the event the subdivider fails to install or construct the required improvements during the specified time allotted and in conformity with these regulations, the improvement guarantee shall be forfeited to the city to be used for the completion of the improvements.
(Ord., passed 10-13-92; Am. Ord. 07-019, passed 8-14-07; Am. Ord. 2024-012, passed 6-11-24)
If it appears to the developer that he or she may not complete construction of required improvements before expiration of his or her improvement guarantee, it shall be his or her obligation, at least 15 days prior to said expiration, to submit an extended guarantee to the Planning and Development Director or designee, who shall forward said extension request to City Council for approval. Such extension shall be for a period of six months. A maximum of two such extensions shall be allowed.
(Ord., passed 10-13-92; Am. Ord. 07-019, passed 8-14-07; Am. Ord. 10-036, passed 8-24-10; Am. Ord. 2024-012, passed 6-11-24)
Loading...