Agenda - Council - 05/14/1991 - Laserfiche WebLink

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DEVELOPMENT AGREEMENT - CEDAR HILLS Special Assessments to be levied against the lots in the Subject Property pursuant to this Agreement. 8. Developer's Financial Guaranty. The Developer agrees and understands that the City has the right, privilege and authority pursuant to Minnesota Statutes Chapter 462.358 and as amended as a condition precedent to the approval of the plans and specifications and approval of a final plat, to prescribe requirements and the extent to which, and the manner in which, the streets be graded or improved and the water, sewer, and other utility mains, piping, or other facilities be installed, and that the Developer shall provide a financial guaranty to the City to provide for the actual construction and installation of all Stage I Improvements within a period specified by the City Council. Said financial guaranty shall provide that the City possess the statutory power to enforce such financial guaranty by all appropriate and legal remedies. The financial guaranty shall be in the form of a letter of credit as follows: The developer shall provide the City, in a form acceptable to the City, a letter of credit in an amount equal to twenty percent (20%) of the total cost of the Public Improvements to be specially assessed against the Subject Property. The letter of credit, in addition to guaranteeing the Developer's performance of this Agreement, shall guarantee that all levied special assessments pertaining to the Subject Property will be paid at or before the time a Certificate of Occupancy is issued for a residence within the Plat. The total cost of the Public Improvements to be specially assessed against the Subject Property is estimated to be $571,103. Therefore, the letter of credit shall be in the estimated amount of $114,221. This financial guaranty shall assure the City that the Stage I Improvement required herein will be actually constructed and installed according to specifications approved by the City, and that the special assessments are paid as required herein. Because of the need to guarantee the payment of the special assessments, the letter of credit shall be effective and in force for the payment term of the assessments, which term is five (5) years. 9. Estimated Costs. It is understood and agreed that construction cost amounts set forth in this Agreement as Stage I Improvements, are estimated, unless indicated otherwise. The Developer agrees to pay the entire actual costs of said improvements.including interest, fiscal engineering and legal charges. lO. Date for Supplying Financial Guaranty. The Developer agrees to supply the financial guaranty referenced in paragraph 8 herein upon execution of this Agreement. 11. Violation of This Agreement. The Developer agrees that the terms of the financial guaranty shall be deemed to have been violated if the Developer fails to perform any of the terms of this Agreement in the manner required by the City, and the City shall be entitled to recover from the Developer or the issuer of Developer's letter of credit, the full amount of the letter of credit. In addition, a late charge fee of 1{)% of any special assessment payment delinquent by more than I I I I I i I I I ! I I I I I I I