Agenda - Parks and Recreation Commission - 10/12/1995

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Subdivisior - Design Standards § 9.50.30 substantially comply with the procedure as set forth for a cash escrow fund. f. Final Escrow Requirements For Stage I Improvements. The minimum escrow requirements described above are subject to increase based on the developer's financial status in relation to the project size. That is, the escrow requirements may vary with each developer depending on credit worthiness. The final escrow amount, above the minimUms described above, shall be determined by the Council Each developer shall be required to submit with the development application current audited financial statements. The City %ill then review and analyze the financial statements and then issue its opinion as to the financial strength of the developer in relation to the proposed project. The report will then be the basis for the City to determine what, if any, additional escrow over and above the minimum described above will be necessary before the project proceeds. The City may require access to the developer's records' in order to test the accuracy of the developers audited f'mancial statements.- g. Assessment. Upon completion of the City ordered Stage I improvements, the City shall cause to be specially assessed in the manner provided by M.S. Chapter 429., 100% of the cost of said improvements. The assessments shall be levied against the benefitted lots in the subdivision requiring payment in full over a period of.five (5) years, together with interest. At the time of the application for a certificate of occupancy for any structures built on a lot which benefit by the improvements, the owner of the lot shall pay to the City the principal balance of such assessment remaining unpaid, together with accrued interest thereon. The escrow required in Paragraphs c. and d. above shall not be released even though the original subdivider/owner may have conveyed the subject Property. The escrow amount may be reduced on a quarterly basis to an amount equal to the then outstanding balance of special assessments. h. Installation of Stage II Improvements. Stage II imprdvements as desc.ribed in {}9.50.50 Subd. 3c shall be constructed and installed in conformance with city standards and per the schedule established by the performance contract requi!ed by §9.50.50 Subd. 7. i Stage II Improvements Escrow. A cash escrow or letter of credit equal to 125% of the City Engineer's estimated cost of the Stage II improvements shall be deposited' with the City. This escrow shall be released only upon final approval and acceptance by the City of said improvements. j. FHA and VA approval. The City will not participate in the payment of improvement costs as described in this section unless and until the City has on file a certificate indicating that the proposed development has both FHA and VA approval.