(A) Complete improvements prior to final plat approval. Before the final plat is signed by the Mayor and City Clerk, all applicants shall be required to complete, in accordance with the City Council’s decision and to the satisfaction of the city engineer, all the street, sanitary sewer, water, and other public improvements, including lot improvements on the individual lots of the subdivision, as required in these regulations, specified in the final plat review and as approved by the City Council, and to dedicate those public improvements to the city, free and clear of all liens and encumbrances on the dedicated property and public improvements.
(B) Complete improvements after final plat approval.
(1) Developer’s agreement. The City Council in its sole discretion may waive the requirement that the applicant complete and dedicate all public improvements prior to approval of the final plat and, as an alternative, permit the applicant to enter into a developer’s agreement by which the subdivider guarantees to complete all required public improvements no later than two years following the date on which the Mayor and City Clerk sign the final plat. In those cases where a developer’s agreement has been executed and security has been posted and required public improvements have not been installed within the terms of the agreement, the city may then:
(a) Declare the agreement to be in default and require that all the improvements be installed regardless of the extent of the building development at the time the agreement is declared to be in default;
(b) Suspend final plat approval until the improvements are completed and record a document to that effect for the purpose of public notice;
(c) Obtain funds under the security and complete improvements itself or through a third party;
(d) Assign its right to receive funds under the security to any third party, including a subsequent owner of the subdivision for which improvements were not constructed, in whole or in part, in exchange for that subsequent owner’s promise to complete improvements in the subdivision; and
(e) Exercise any other rights available under the law.
(2) Financial guarantees. Whenever the City Council permits an applicant to enter into a developer’s agreement, it shall require the applicant to provide a financial guarantee such as a letter of credit or cash escrow as security for the promises contained in the developer’s agreement. The security shall be in an amount equal to 125% of the estimated cost of completion of the required public improvements, including lot improvements. The issuer of the letter of creditor the escrow agent, as applicable, shall be acceptable to the City Council.
(a) Letter of credit. If the applicant posts a letter of credit as security for its promises contained in the developer’s agreement, the credit shall:
1. Be irrevocable;
2. Be for a term sufficient to cover the completion, maintenance and warranty periods in this section or the developer’s agreement; and
3. Require only that the city present the credit with a sight draft and an affidavit signed by the City Clerk attesting to the municipality’s right to draw funds under the credit.
(b) Cash escrow. If the applicant posts a cash escrow as security for its promises contained in the developer’s agreement, the escrow instructions shall provide:
1. The subdivider will have no right to a return of any of the funds except as provided in this section or the developer’s agreement; and
2. The escrow agent shall have a legal duty to deliver the funds to the municipality whenever the City Clerk presents an affidavit to the agent attesting to the municipality’s right to receive funds whether or not the subdivider protests that right. If and when the municipality accepts the offer of dedication for the last completed required public improvement, the municipality shall execute a waiver of its right to receive all but 25% of the funds represented by the letter of credit or cash escrow if the subdivider is not in breach of the developer’s agreement The residual funds shall be security for the subdivider’s covenant to maintain the required public improvements and its warranty that the improvements are free from defect.
(3) Maintenance. The applicant shall agree to maintain all public improvements in the subdivision for a period of one year following the acceptance by the City Council of that completed public improvement except for snow removal.
(4) Snow removal and emergency repairs. The developer shall be required to provide for snow removal on all streets and sidewalks in the subdivision until all of the streets and sidewalks in the subdivision are accepted by the City Council. The city, after 24-hours notice with no action by the developer, may plow the streets or effect emergency repairs and charge those costs to the developer.
(5) Warranty. The applicant shall also warrant that all required public improvements will be free from defect for a period of two years following the acceptance by the city of the last completed public improvement. The developer’s agreement shall contain other terms and conditions agreed to by the applicant and the City Council.
(6) Issuance of building permits. No building permits shall be issued for the final 10% of lots in a subdivision, or if 10% is less than two, for the final two lots of a subdivision, until all public improvements required by the City Council for the subdivision have been fully completed and the city has accepted the improvements.
(7) Issuance of certificate of occupancy. When a developer’s agreement and security have been required for a subdivision, no certificate of occupancy for any building in the subdivision shall be issued prior to the completion of the required public improvements and the acceptance of those improvements by the city, as required in the City Council’s approval of the final plat, except as provided in the developer’s agreement.
(8) Adequate access. The city engineer shall determine the extent of street improvements necessary for adequate vehicular access by the prospective occupant(s) and by police and fire equipment prior to the issuance of building permits and certificates of occupancy.
(9) Seasonal impacts. Whenever, by reason of the season of the year, any lot improvements required by the subdivision regulations cannot be performed, the building official may issue a certificate of occupancy, provided there is no danger to health, safety, or general welfare upon accepting a cash escrow deposit in an amount to be determined by the city engineer for the cost of the lot improvements The developer’s agreement and security covering the lot improvements shall remain in full force and effect.
(a) Procedures on escrow fund. All required improvements for which escrow monies have been accepted by the building official at the time of issuance of a certificate of occupancy shall be installed by the subdivider within a period of nine months from the date of deposit and issuance of the certificate of occupancy.
(b) Failure to complete improvements. If the improvements have not been properly installed at the end of the time period, the building official shall give two-weeks’ written notice to the developer requiring it to install the improvements, and if they are not then installed properly, the building official may request the City Council to proceed to contract out the work for the installation of the necessary improvements in a sum not to exceed the amount of the escrow deposit. At the time of the issuance of the certificate of occupancy for which escrow monies are being deposited with the building official, the developer shall obtain and file with the building official prior to obtaining the certificate of occupancy a notarized statement from the purchaser or purchasers of the premises authorizing the building official to install the improvements at the end of the nine-month period if the improvements have not been duly installed by the subdivider.
(Ord. passed 1-23-2001) Penalty, see § 153.999