(A) General Overview. Minn. Stat. § 462.358, subd. 2A, authorizes the City to condition approval of the subdivision of property on the construction and installation of certain utilities. The intent of this chapter is to specifically set out the required improvements which promote and protect the public health, safety and general welfare. The City reserves the right to require additional improvements if deemed necessary by circumstances and conditions unique to these particular lands. No subdivision of land is allowed unless storm sewer, sanitary sewer, a municipal water supply, streets and other public improvements are constructed to serve the area being divided unless some other ordinance or statute specifically authorizes said division.
(B) Payment for Facilities Benefiting Entire Community.
(1) If the cost of an improvement would, by general policy, be assessed only in part to the improved property and the remaining cost paid out of general tax levy, provision may be made for the payment of a portion of the cost of the improvement, representing the benefit to such lands, to be assessed against such lands. In such a situation, the subdivider will be required to pay for only such portion of the whole cost of such improvement as will represent the benefit to the property within the subdivision.
(2) Where existing trunk facilities provide the subdivision with a lateral benefit, an amount equal to the estimated current value of the lateral benefit, as determined by the City Engineer, shall be paid to the City.
(C) Development Agreement.
(1) Contents of Agreement. The City may require entering into a contract, known as a Development Agreement with the subdivider/developer. The Agreement shall provide for the completion of the improvements required by this Title. Prior to the subdivider or City initiating the improvements, the final plat and resolution shall be recorded, the development agreement and all cash deposits paid, the financial guarantees shall be posted and approved by the City, and land required to be dedicated shall be conveyed to the City.
(2) Public Improvements.
(a) The Agreement may require the subdivider/developer to furnish and construct at the sole expense of the subdivider and at no expense to the City all the public improvements in accordance with the plans and specifications prepared by the City Engineer or require the subdivider/developer to petition the City to furnish and construct improvements in accordance with the plans and specifications prepared by the City Engineer. The City Engineer shall prepare preliminary cost estimates for the public improvements, together with the costs for engineering, legal, fiscal and administrative costs related to the project, which shall be incorporated into the Development Agreement.
(b) The completion date for the public improvements shall be reasonable, considering the work to be done, the season of the year and proper correlation of the improvements with construction activities in the subdivision and other projects which are included within the City improvement contract(s).
(c) The Development Agreement shall contain provisions for park dedication as required of this Title.
(3) Boulevard and Yard Improvements. The subdivider shall be required to assure the performance and/or installation of the following:
(a) Rough grading of all public rights of way.
(b) Grading and seeding of vacant lots.
(c) Cutting of grass and weeds, in excess of eight inches in height.
(d) Street sweeping and cleaning of storm sewers and holding ponds.
(e) Installation and maintenance of erosion control devices.
(f) Boulevard sod, boulevard trees, yard sod and other landscaping and irrigation.
(g) Replacement of trees removed from the right of way.
(h) Monument replacement.
(i) Surveyor’s certification of individual lot grading compliance.
(j) Drainage and erosion control plan compliance.
(k) Entryway signs.
(l) Final grading of each lot in subdivisions in compliance with the approved plan.
(m) Driveways compliant with this code.
(n) Street lights.
(4) The subdivider shall not transfer or assign its obligations to install and pay for boulevard trees, sod and hard surface driveways to the home builder or purchaser of any lot without the consent of the City Engineer.
(5) Private Utilities – New Lines to be Underground. All electrical distribution systems (excluding main line feeders and high voltage distribution lines), telephone service lines, gas lines, telecommunications lines, cable lines and services constructed within the confines of and providing service to customers in a newly platted area, shall be buried underground in joint trench; unless the City Council, by resolution, determines that:
(a) Such requirement would result in unnecessary duplication of facilities where the property to be served abuts an existing development already served by overhead facilities; or
(b) That based upon engineering considerations, underground installation of such facilities is not feasible in a particular plat or portion thereof; or
(c) That the size of the subdivision is too small to justify the underground installation of such facilities.
(D) Financial Guarantees.
(1) Subdivider Petitioned Projects.
(a) Financial Guarantees Required Generally. The subdivider shall be required to post financial guarantees to ensure completion of all improvements required by this title, the preliminary and final plat resolutions, and the Development Agreement. The financial guarantees shall be in the form of cash deposit, irrevocable letter of credit, or other form of financial security found to be acceptable by the City. The City is entitled to require the subdivider to cover the City’s expenses for the engineering, inspection, testing, legal, and administrative and other costs of up to 12% of the total estimated cost of the improvements in a nonrefundable cash deposit.
(b) Public Improvements. 100% of improvements including, but not limited to, street lighting, sanitary sewer, water, storm sewer, curb and gutter, street grading and street bituminous surfacing, shall be assessed against properties in the subdivision. The subdivider shall provide the City with a cash deposit or LOC in an amount at least equal to 150% of the total estimated cost of the improvements which shall guarantee payment to the City of the assessments.
(c) Boulevard and Yard Improvements. The subdivider shall be required to post financial guarantees in the amount of 150% of the estimated costs to assure completion of the items listed in subsection C(3) of this chapter. The subdivider shall deposit with the City, from a bank or other reputable and financially sound institution subject to the approval of the finance director, a letter of credit guaranteeing performance and completion of improvements/work required by the Development Agreement.
(2) Noncompliance. If there is noncompliance with the requirements of this Title, at any time, the City can direct the performance of any work required of the subdivider. The cost of the City’s performance of any such work, including labor, equipment and material, shall be paid from the posted financial guarantees. The developer shall be liable to the City to the extent that the financial security is inadequate to reimburse the City its costs and pay for the completion of the work.
(3) Return of Cash Escrows or Reduction of LOC. If all, or a part, of a development has been completed, inspected and accepted, financial securities for that portion accepted by the City may be reduced by the City Council and full or partial payment be returned to the subdivider (with the exception of the nonrefundable public improvement cash deposit required by D(1)(a) of this section). In no case shall the financial guarantee be reduced to less than 10% of the original amount of the financial guarantees for offsite improvements and erosion control.
(E) Inspections and Acceptance.
(1) Inspections. The City Engineer or their staff shall regularly inspect for defects in the construction of required improvements on public lands or easements and shall require the subdivider/developer to conform with the approved plans for the subdivision.
(2) Statement to Engineer. Upon completion of grading or construction improvements, the subdivider shall file with the City Engineer a statement stipulating the following:
(a) That all required grading or construction improvements are complete and in compliance with the standards specified;
(b) That the subdivider knows of no defects or deviations from any cause in those improvements; and
(c) That the grading or construction improvements are free and clear of any encumbrance or liens.
(3) Acceptance of Improvements. If the engineer has certified that the aforementioned improvements are complete and free from defect, and upon receipt of other statements and agreements listed above, the governing body shall accept the construction of those improvements. The governing body may, at its discretion, accept the construction of any portion of the required improvements; provided, that all statements and agreements specified have been received for that portion of the improvements.
(F) Construction Plans.
(1) Construction plans and specifications for the required improvements conforming in all respects to the standards of the City Engineer and the ordinances of the City must be prepared at the subdivider’s expense and approved by the City Engineer.
(2) At the inspection, all required improvements on the site that are to be installed under the provisions of this chapter must be inspected during the course of construction by the City Engineer at the subdivider’s expense, and acceptance must be subject to the City Engineer’s certificate of compliance with the contract.
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