(A) In lieu of requiring the completion, installation and inspection of all or any part of the required improvements as described in this subchapter prior to final plat approval, the city may enter into a contract with the subdivider and/or applicant whereby the subdivider and/or applicant shall agree to complete all required improvements. Once said agreement is signed by both parties, and the security required herein is provided, the final plat may be approved if all other requirements of this chapter are met.
(B) To secure this contract, the subdivider and/or applicant shall provide either of, or a combination of, the following guarantees to cover the costs of the proposed improvements.
(1) Security.
(a) The subdivider and/or applicant shall deposit cash, an irrevocable letter of credit or other instrument readily convertible into cash at face value, either with the city or in escrow with a financial institution. The amount of deposit shall be equal to 120% of the estimated cost as approved by the Planning and Development Department, of installing all required improvements. The initial cost estimate shall be the responsibility of the subdivider and/or applicant and certified by his or her engineer, but the approval of the final cost estimate shall be made by the City Engineer.
(b) If other instrument is deposited in escrow with a financial institution as provided above, then the subdivider and/or applicant shall file with the city an agreement between the financial institution and him- or herself guaranteeing the following:
1. Said escrow account shall be held in trust until released by the City Council and may not be used or pledged by the subdivider and/or applicant in any other matter during the term of the escrow;
2. In the case of a failure on the part of the subdivider and/or applicant to complete said improvements within the time allotted, the financial institution shall, upon notification by the city and submission by the city to the financial institution of an estimate of the amount needed to complete the improvements, immediately either pay to the city the funds estimated to complete the improvements, up to the full balance of the escrow account, or deliver to the city any other instruments fully endorsed or otherwise made payable in full to the city; and
3. The irrevocable letter of credit shall be in the form of an “evergreen” or “automatic renewal” letter of credit, and the subdivider and/or applicant may request a reduction to 30% of the total amount deposited only after 80% of the homesites are developed and may reissue the “evergreen” letter of credit upon approval by the City Council.
(2) Governmental guarantee. In any case where a required improvement is to be provided by the state or any local government other than the city, the subdivider and/or applicant may provide, in lieu of the types of financial guarantee as provided for above, a letter from the appropriate state or local government official guaranteeing the installation of the improvement in the required manner and within the time allotted. Provided, however, in any case where the cost of such improvement exceeds $10,000 as determined by the city, such governmental guarantee shall be in the form of an approved Project Budget Ordinance where local government is to be the provider and an equivalent document where the state is to be the provider.
(Ord. passed 9-27-2021) Penalty, see § 153.999