§ 13-6. Required agreements and bonds.

(a)

General. Prior to final plat approval, the subdivider and city shall enter into an agreement for the required improvements, as follows:

(1)

Plat bonding requirements. Before a final plat is approved by the city council, the owner and subdivider of the land covered by said plat shall execute and submit to the council an agreement to make and install within one year, all improvements required to be installed by him under the provisions of this chapter, in accordance with the time table and plans and specifications therefore to be prepared or approved by the city engineer. The agreement (hereinafter sometimes referred to as development contract) shall be accompanied by a cash escrow equal to one and one-half times the city engineer's estimated cost for completing said improvements, or a corporate performance bond, or other collateral authorized by law (sometimes referred to as a subdivision bond) to be approved by the city, in an amount equal to one and one-half times the city engineer's estimated cost of said improvement. Bond amounts for assessments for which the developer agrees to pay shall be determined initially by the cost of the project as estimated by the city engineer, and may subsequently be modified by the city based upon the actual assessments levied. The bond shall be accompanied by surety and conditions satisfactory to the city to assure the city that such improvements and utilities will be actually constructed by the developer according to the specifications approved by the city council as expressed in the development contract, and the assessments which the developer has specifically agreed to pay in accordance with its contract are in fact paid on a timely basis. The performance bond or cash escrow shall be conditioned upon:

a.

Completion of improvements. The making and installing of the improvements required under terms of this chapter within the one year period, unless the said one year period is extended by city resolution, or by the city not taking action to compel timely performance by the developer, for any reason. If the city has agreed to perform the work, the completion of the improvements shall be performed within the time established by the council.

b.

Completion of works. Completion of the work undertaken by the owner or subdivider in accordance with the development contract executed by him and for him.

c.

Payment of assessments. Payment on a timely basis of all assessments against the premises which the developer has specifically and contractually agreed to pay.

d.

Payment. The payment by the subdivider to the city of all expenses incurred by the city, which expenses shall include but not be limited to engineering, fiscal, legal, construction and administration expenses. In instances where a cash escrow is submitted in lieu of a corporate performance bond, there shall be a cash escrow agreement or development contract which shall provide that in the event the required improvements are not completed within one year, unless extended by the city council, all amounts held under the cash escrow agreement shall be automatically turned over and delivered to the city and applied by the city to the cost of completing the required improvements. If the funds available within said cash escrow agreement are not sufficient to complete the required improvements, the necessary additional cost to the city may be assessed against the subdivision in accordance with assessment procedures as regulated under Minnesota Statutes, or the city may, at its option, proceed against those persons who agreed to pay the sums involved. Any balance remaining in the cash escrow fund after such improvements have been made and all expenses therefore have been paid, shall be returned to the subdivider.

e.

Assessed improvements. When the city agrees to install improvements in a subdivision and assess the cost pursuant to M.S. chapter 429, the subdivision bond shall be one-half of the estimated cost of the improvement. The subdivision bond shall guarantee timely payment of all assessments on the property, and shall provide for payment in full of such assessments within three years of the date of a resolution levying such assessments.

(b)

Inspection of improvements. All required land improvements to be installed under the provisions of this chapter shall be inspected at the subdivider's expense during the course of construction. Such inspection shall be by the city engineer or an inspector appointed by the council.

(c)

Building permits withheld. No building permit shall be issued by any governing official for the construction of any building, structure or improvement on any land required to be subdivided by this chapter until all requirements of this chapter have been fully complied with.

(Ord. No. 77-5; Ord. No. 78-17)