Irrevocable Letter of Credit. No construction or installation of any portion of the Improvements shall be commenced until Developer has filed with the Village an irrevocable letter of credit in the amount of One Hundred Twenty Percent (120%) current estimate of the entire cost of the Public Improvements to be completed, and which is acceptable in form and approved by the Village. The letter of credit shall be renewed and maintained until substantial completion and may be adjusted in amount, as allowed or required by law.
The Developer shall not be issued any permits, including, but not limited to, building permits or occupancy permits, unless Developer has on file with the Village the required irrevocable letter of credit.
In the event Developer fails to complete work on Public Improvements within the time period specified or breaches any other provisions of this Ordinance or shall become insolvent, or be declared bankrupt, or should commit any act of bankruptcy or insolvency, or shall make an assignment for the benefit of creditors, or, for any other cause whatsoever, shall not carry out the work on Public Improvements in an acceptable manner, (herein "breach") the Village shall give written notice of breach to Developer and the issuer of the irrevocable letter of credit. If Developer, within sixty (60) days after such notice, shall not correct the breach or take reasonable steps to correct the breach, the Village shall have full power and authority to invoke
the irrevocable letter of credit and use the proceeds to take over the work, including any and all materials and equipment on the Property as may be suitable and acceptable, and may complete the work by its own means and methods, or may enter into a new agreement with a third party for the completion of the obligations according to the terms and provisions hereof, or any combination of the foregoing remedies, or may use such other methods as, in the Village's opinion and sole discretion, shall be required for the completion of the Public Improvements. All costs and charges incurred by the Village, together with the cost of completing the work, shall be charged to Developer and the proceeds of the irrevocable letter of credit. Any excess costs and charges shall be paid by the Developer to the Village.
Subject to the provisions of Sec. 236.13, Wis. Stat., if applicable, within sixty (60) days of the public improvements (sewer main, water main, storm main, curbs and streets) having been installed and certified as complete, the Village's Director of Public Works shall authorize the phased reduction of the Letter of Credit amount for the portion of the work complete, retaining a balance of one hundred and twenty percent (120%) of the remaining public work outstanding. Multiple reductions of the letter of credit amount may be authorized as phases of the work are complete. Upon Village Board's acceptance of the public improvements, the Letter of Credit shall be released in its entirety. (Ord. 2022-3, 6-9-2022)