A. Required: The subdivider shall execute, acknowledge and cause to be recorded in the office of the city recorder, a written agreement with the city by which he will covenant and agree that he will not lease or convey any of the subdivided property to anyone whomever unless he shall first, as a condition precedent thereto, either:
1. Install and pay for all of the improvements aforesaid necessary to the full, effective and practical use and enjoyment thereof by the lessee or grantee of the lands so to be conveyed, including, but not limited to, all street improvements in front of such property and thence along the dedicated streets to a connection with existing improvements, whichever is required as a condition of the subdivision approval; or
2. In lieu of actual construction of the improvements, the subdivider may furnish the city, at the time a subdivision final plat is approved, one of the following guarantees that the improvements, not then installed, will be constructed and paid for within a period of two (2) years from the date of approval of the subdivision:
a. A bond with a corporate surety in an amount equal to one hundred fifteen percent (115%) of the cost of the improvements.
b. Deposit in escrow with an escrow holder approved by the governing body an amount of money equal to one hundred fifteen percent (115%) of the cost of the improvements.
c. File an irrevocable letter of credit from a duly chartered bank or savings and loan institution, which shall contain provisions substantially similar to that required in the escrow agreement.
B. Agreement Deemed Covenant; Lien: The said agreement shall specifically provide that it shall be deemed to be a covenant running with the subdivided lands for the benefit of the city and shall particularly and accurately describe said lands. By said agreement, the subdivider shall further give and grant to the city a lien on said lands to secure the installation of all of the improvements required by this chapter, together with the payment of all costs, including reasonable attorney fees which the city may incur in enforcing any of the terms and provisions of said agreement.
C. Approval As To Form: The covenant and agreement aforesaid shall be approved as to form by the city attorney. The governing body is authorized to prescribe, by administrative rule or regulation filed for record with the city recorder, the forms and applications for the approval of a proposed subdivision and the strict compliance with the requirements of this title. The agreement shall be restricted to the guaranteeing and paying for the improvements required by this title. It shall be separated from any other financing or funding programs required by the subdivider. Funds can be released, or the amount of the bond or letter of credit decreased, only upon receipt of written authorization signed by the mayor. (Ord., 2-29-1996)