Completion of the improvements identified in a development agreement shall be guaranteed by one of the following methods:
A. The developer may place an amount equal to one hundred fifty percent (150%) of the estimated cost of the required improvements in escrow, with that amount and accumulated interest being released only after the city has inspected and accepted the required improvements. A development agreement may provide for the phased release of a portion of the escrowed funds as work proceeds, but at least twenty five percent (25%) of the amount in escrow shall be retained until all required improvements are installed, inspected, and accepted. If required improvements are not completed as provided in the development agreement, the city shall use as much as necessary of the escrow account to complete those improvements, then return any remaining balance to the developer.
B. The developer may provide an irrevocable or standing letter of credit for an amount equal to one hundred fifty percent (150%) of the estimated cost of the required improvements. The letter of credit shall be released only after the city has inspected and accepted the required improvements. If any required improvements are not completed as provided in the development agreement, the city shall use as much as necessary of the credit available to complete those improvements, then return any remaining balance to the developer. (Ord. 149, 10-22-2008)