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Minn. Stat. § 462.358 <br />subd 2a <br />Sample public <br />improvement <br />ordinance <br />See Section V — B <br />Development <br />agreements <br />V. Public improvement <br />requirements <br />The city subdivision ordinance may condition approval of an application <br />upon the construction and installation of needed public improvements for the <br />subdivision such as: <br />• Drainage facilities <br />• Streets <br />• Electric, gas, sewer, water, and similar utilities <br />• Similar improvements <br />The city may require that the developer install the improvements to the city's <br />specifications as detailed in the subdivision ordinance. For example, the city <br />may wish to specify the width and composition of any streets installed by the <br />developer. In addition, in order to ensure that the improvements are installed <br />correctly and completely, the city may condition approval upon: <br />• Providing a cash deposit, certified check, irrevocable letter of credit, <br />bond, or some other type of financial security in an amount sufficient to <br />ensure that the required improvements will be completed as specified. <br />• The signing of a development agreement between the city and the <br />developer, which may be enforced by legal and equitable remedies in a <br />court. <br />Cities are not required to condition approval upon developer installation of <br />needed improvements. Cities may also install the improvement themselves. <br />Often these cities recoup the cost through special assessments on the newly <br />subdivided parcels. Cities may prefer to install improvements on their own <br />because it gives the city direct control and supervision of a public <br />improvement project, rather than simply inspecting the work of a third -party <br />developer. However, there are some risks to this approach that should be <br />considered by the city. <br />Specifically, when a city installs significant public improvements in a new <br />development, it typically expects to recoup its costs through special <br />assessments from buyers of the subdivided parcels in the development once <br />the project is completed. However, the city might experience unexpected <br />delays in cost recovery from assessments if: <br />• Public improvements are installed, but the developer does not finish the <br />project (likely due to insolvency or other financial issues). <br />• Public improvements are installed and the project is completed, however, <br />the subdivided lots do not sell and sit empty (due to market factors on a <br />nationwide or local scale). <br />SUBDIVISION GUIDE FOR CITIES 27 <br />