The financial guarantee required as part of the Development Agreement shall be one of the following:
(A) Escrow deposit. A cash escrow deposit may be made with the City Treasurer in a sum equal to 125% of the total costs, as estimated by the Engineer, of all the improvements to be furnished and installed by the subdivider pursuant to the Development Agreement. The total costs shall include costs of inspection by the City Engineer. The city shall be entitled to reimburse itself out of such deposit for any cost or expense incurred by the city for completion of the work in case of default of the subdivider under such contract, and for any damages sustained on account of any branch thereof.
(B) Performance bond. The subdivider may furnish a performance and payment bond with corporate surety, in a penal sum equal to 125% of the total cost, as estimated by the Engineer, of all the improvements to be furnished and installed by the subdivider pursuant to the Development Agreement. The total costs shall include costs for inspection by the City Engineer. The bond shall be approved as to form by the City Attorney and filed with the City Clerk-Administrator.
(C) Letter of credit. The subdivider may deposit with the city, from a state or federally chartered bank or savings and loan association, insured by the Federal Deposit Insurance Corporation, that has an office in the state of Minnesota or a subsidiary of such bank or savings association with an office in the state of Minnesota subject to the approval of the City Council, an irrevocable letter of credit which shall certify the following:
(1) The creditor does guarantee funds in an amount equal to 125% of the total cost as estimated by the City Engineer, or completing all required improvements;
(2) In the case of failure on the part of the subdivider to complete the specified improvements within the required time period, the creditor shall pay to the city immediately, and without further action, such funds as are necessary to finance the completion of those improvements, up to the limit of credit stated in the letter; and
(3) This letter of credit may not be withdrawn, or reduced in amount, until released by the City Council.
(A) (3) The city shall require of a subdivider submission of a warranty/maintenance bond in the amount equal to the original cost of the improvements or such lesser amount as agreed to by the City Engineer. The required warranty period for materials and workmanship from the utility contractor installing public sewer and water mains shall be two years from the date of final acceptance or one year following final acceptance of the final bituminous wearing surface as approved by the City Engineer. The required period for sod, trees and landscaping is one growing season.
(B) No final plat shall be approved by the Council without first receiving a report from the City Engineer that the improvements described therein together with the agreements and documents required under this section, meet the requirements of the city.
(C) No final plat shall be approved by the Council without first receiving certification from the City Clerk-Administrator or Finance Officer that all fees required to be paid to the city in connection with the plat have been paid or that satisfactory arrangements have been made for payment.
Penalty, see § 156.999