(A) Escrow: The subdivider shall deposit with any insurance company, bank, or savings and loan institution in an escrow account an amount of money equal to at least 125% of the costs of the improvements required by this title not previously accepted by the county. The costs of the improvements not accepted and not installed or constructed shall be determined by the Zoning Administrator. The escrow agreement shall be subject to approval by the County Attorney and shall be signed by the subdivider, the county, and the escrow holder, and shall contain substantially the following language:
ESCROW AGREEMENT
This Escrow Agreement made and entered into this day of , 20 , by and among Franklin County, body politic of the State of Idaho, hereinafter referred to as “county”, and , hereinafter referred to as “subdivider”, and , hereinafter referred to as “Escrow Agent”.
WITNESSETH:
WHEREAS, subdivider and county have entered into an agreement whereby subdivider has agreed to install certain improvements within a subdivision before being accepted by county; and
WHEREAS, subdivider is willing to deposit with Escrow Agent funds sufficient to complete the improvements contemplated by the Subdivision Agreement; and
WHEREAS, Escrow Agent is willing to hold the funds deposited with it and to release them upon the following terms and conditions
NOW THEREFORE, in consideration of the mutual covenants and promises contained hereafter, the parties hereto agree as follows:
(1) Subdivider does hereby deposit with Escrow Agent for the benefit of county the sum of , which represents at least 125% of the estimated costs of the improvements to be installed in the proposed subdivision of subdivider, his or her agents or employees.
(2) Subdivider and county hereby agree that the foregoing sums of money shall be used exclusively for the purpose of paying for the costs of materials, and construction and installation of the improvements required by the County Development Code and that said improvements shall be installed in accordance with the approved plans and specifications and in accordance with the provisions of the County Development Code. In addition, county and subdivider further agree that the money held by Escrow Agent shall be paid out to the contractor installing and constructing the required improvements only upon an order executed by the subdivider and by an authorized officer of the county.
(3) Except as provided in paragraph 7 of this Agreement, Escrow Agent does hereby agree to pay sums from the escrowed funds only after having received an order signed by the subdivider and by an authorized office of the county specifying the amount to be paid out of the Escrow Account.
(4) County and subdivider agree that subdivider shall not withdraw from the Escrow Account any amount in excess of 100% of the estimated costs of the improvements, but subdivider agrees to pay from other sources any costs for such improvements which exceed 100% of the estimated costs.
(5) The sum of 25% of the estimated costs of improvements shall remain with the Escrow Agent for a period of one year after improvements are made and completed. If, during that one year period, the territory containing the subdivision is annexed by a municipality, Franklin County reserves the right to assign its interest in this agreement to the municipality.
(6) If after 18 months from the date of final subdivision approval, all or any part of the required improvements have not been installed, constructed, and maintained according to the standards required by the Franklin County Development Code, the county shall notify in writing the subdivider and the Escrow Agent of the improvements that have not been installed, constructed, or maintained, and shall make demand on subdivider that the improvements be installed constructed, or maintained. If the improvements are not installed, constructed, and maintained within 30 days after notice by the county, the county may install, construct, or maintain the improvements and receive payment from the Escrow Agent up to the limit of the escrowed funds for the costs of installing, constructing, or maintaining the required improvements.
(7) The Escrow Agent shall, on receiving written proof from the county of notice of subdivider as required by paragraph 6 above and reasonable proof of the installation, construction, or maintenance of the required improvements, pay to the county from the Escrow Account the cost of constructing, installing, or maintaining the improvements; and upon payment Escrow Agent shall be relieved from any responsibility or liability for the payment of his or her escrowed funds.
(8) If, after one year after the improvements have been installed by the subdivider, the required improvements have been maintained and remain substantially free from latent defects, the county shall certify such fact to the Escrow Agent, and the Escrow Agent shall release to the subdivider any funds still held in the Escrow Account, and the Escrow Agent shall be discharged from its obligation to the county and to the subdivider.
WHEREFORE the parties hereto have signed this Escrow Agreement the day and year first above written.
FRANKLIN COUNTY BY:
Chair person
Commissioner
Commissioner
ATTEST:
Franklin County Clerk Franklin County Attorney
Subdivider BY:
ESCROW AGENT BY:
Approved as to Form:
(B) Irrevocable Letter of Credit: The subdivider shall file with Franklin County an irrevocable letter of credit from a duly chartered state or national bank, which letter shall contain provisions substantially similar to that required in the escrow agreement. The form of the irrevocable letter of credit shall be substantially as follows:
Name of Bank
Address
IRREVOCABLE LETTER OF CREDIT
To: Franklin County Board of Commissioners Date:
Credit No.: Letter of:
Gentlemen:
We hereby establish our irrevocable letter of credit in your favor for the account of (insert name of subdivider, subdivider’s address) up to the aggregate amount of $ (insert amount) available by your draft(s) drawn at sight on (insert name of bank, address of bank), accompanied by (here insert terms which give Franklin County control over payment, substantially the same terms as in the escrow agreement).
It is fully understood that said funds are solely for the purpose of guaranteeing improvements, whether off-site or on-site for the Subdivision according to plans and specifications as approved by Franklin County. No offsets, charges, or reductions in these funds will be made without written approval from Franklin County.
Authorized Bank Officer
(C) Bond:
(1) The subdivider shall furnish and file with the Planning and Zoning Department a bond with corporate surety in an amount equal to 125% of the cost of the improvements not previously installed, as estimated by the engineer, to assure installation and construction of such improvements within 18 months, immediately following the approval of the subdivision plat by the Board, which bond shall be approved by the Board and attorney and which bond shall guarantee that the improvements shall be maintained in a state of good repair, free from material or workmanship defects, for a period of 12 months from the date of completion. After 12 months following the completion of the improvements for which a surety or cash bond has been filed, the subdivider shall call for inspection by the Administrator. If inspection shows that the standards and specifications have been met in completion of such improvements, the bonds therefor shall be released within 14 days from the time of inspection.
(2) Such surety or bond shall remain in force for a period of 12 months after the construction completion inspection for the purpose of guaranteeing all improvements, at which time they shall be inspected again by the Administrator. If the improvements are found to be in satisfactory, the Administrator will release the bond. If the improvements are not found to be satisfactory condition, the Administrator shall in writing make demand on the subdivider to make repairs. If repairs are not made within 30 days of date of letter, bond shall be forfeited to the county.
(Ord. 2007-8-13, passed 3-11-2019)