(A) The development agreement requires the developer to make an escrow deposit or provide a certified check or irrevocable letter of credit as determined by the city. The escrow deposit, certified check or irrevocable letter of credit shall conform to the requirements of this section.
(1) Escrow deposit, certified check.
(a) If an escrow deposit or certified check is required, the escrow deposit or certified check shall be made with the City Clerk in a sum equal to the total costs for all improvements to be furnished and installed by the developer pursuant to the contract, which have not been completed prior to approval of the plat. The total costs shall include costs of inspection by the city.
(b) The city shall be entitled to reimburse itself out of said escrow deposit or for any cost and expense incurred by the city for completion of the work in case of default of the developer under said contract, and for any damages sustained on account of any breach thereof.
(c) Upon completion of the work and termination of any liability, the balance remaining in said escrow deposit shall be refunded to the applicant.
(2) Irrevocable letter of credit.
(a) If the applicant is required to furnish an irrevocable letter of credit, the sum shall be payable to the order of the city and delivered to the city in an amount as estimated by the City Engineer of all the improvements to be furnished and installed by the applicant pursuant to the contract, which have not been completed prior to the approval of the plat. The total costs shall include costs of inspection by the city.
(b) The irrevocable letter of credit shall be approved as to form by the City Attorney and filed with the City Administrator.
(c) The city shall be entitled to reimburse itself out of said letter of credit for any cost and expense incurred by the city for completion of work (including legal fees) in case of default of the applicant under said contract, and for any damages sustained on account of any breach thereof.
(Ord. 582, passed 8-26-2019) Penalty, see § 152.999