(A) When the owner/developer requests final plat approval under the requirements contained in § 152.060(B), the owner/developer shall enter into an agreement with the city to guarantee installation or ensure the completion of improvements.
(B) The Planning Commission may accept the subdivision and issue a certificate of final plat approval subject to all requirements of these regulations, and upon providing one of the following guarantee requirements or financial instruments:
(1) Cash deposit.
(a) The subdivider may provide a cashier’s check in the amount as determined by the engineer-of-record and agreed upon by the city’s Engineer and Planning Commission at 125% of the estimated amount to complete the improvements and installations to comply with these rules and regulations.
(b) The check shall be cashed one year from date of approval unless improvements are completed.
(c) For improvement completion that takes over one year, an extension must be approved by the Planning Commission if found reasonable.
(d) If the extension is not approved, the check amount, in full, will be payable to the city at the end of the year.
(2) Irrevocable letter of credit. The subdivider may provide an irrevocable letter of credit to the City of Tontitown pursuant to the following conditions:
(a) The letter of credit will be for an amount equal to 125% of the estimated cost for improvements as determined by the engineer-of-record and agreed upon by the City Engineer and Planning Commission.
(b) The letter of credit will be irrevocable and will list the city as the sole beneficiary.
(c) The letter of credit will be in a form approved by the City Attorney.
(d) The city, as the sole beneficiary, shall be entitled to payment upon making demand for payment under the terms of the letter of credit in the event the subdivider is in default. Further, the city shall be entitled to use all of the money secured by the letter of credit to assure the cost of completion of the work in the subdivision.
(e) The subdivider will not be entitled to any excess monies until the work in the subdivision has been completed.
(f) The terms of the letter of credit shall be limited to a time specified, not to exceed one year, unless extension is granted by the Planning Commission. If the extension is not approved, the amount of the letter of credit shall be payable in full to the city.
(g) The letter of credit extension shall provide all costs incurred by the project and related inflation costs.
(Ord. 2013-04-417, passed 4-2-13; Am. Ord. 2013-09-440, § 152.300.08, passed 9-3-13)