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Attempts to recover the city’s costs in these types of scenarios may result in <br />legal fees and other unexpected administrative costs for the city. In addition, <br />if the city financed the public improvements through bonds, the city’s bond <br />rating may be affected while the special assessments remain unpaid and the <br />bonds are outstanding. <br />Cities thatrequire the developer to install improvements may still exercise a <br />high degree of control over the installation and construction of the public <br />improvements. Cities may: <br />Develop detailed specifications for each typeof improvement required <br />by the city. <br />Hire professional engineers to review and inspect each phase of <br />installation or construction of a required public improvement (these costs <br />can be recouped from the developer). <br />Require the developer to provide the city with a cash deposit, bond, letter <br />of credit,or other financial security that will allow the city to finish or <br />fix a failed or flawed public improvement with cash on hand (rather than <br />needing to bond or use city reserves). <br />Require the developer to enter into a development agreement that <br />includes quality controls and addresses any unique issues related to the <br />particular public improvement project. <br />Require completion of all needed public improvements prior to the <br />issuance of any building permits for construction on parcels within the <br />development. <br />Because cities may exercise such a high degree of control over public <br />improvements installed by a developer, there is limited risk for the city in <br />requiring the developer to construct and install public improvements. <br />A.Release and return of financial <br />securities <br />As discussed, the city may require a subdivision applicant to provide some <br />Minn. Stat. § 462.358 <br />subd 2a <br />type of financial security for the purpose of reimbursing the city for its costs <br />related to review, approval,and inspection of a specific project. There is a <br />specific statutory process regulating the release and return of developer <br />financial securities. <br />A developer who has completed a project for which there are still <br />outstanding financial securities may request that its security be released and <br />returned by sending a certified letter to the city. <br />28LMC <br />EAGUE OF INNESOTA ITIES <br /> <br />