Agenda - Council - 08/13/1991 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I 10. 6. Developers Financial Guarantee. 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 prec~ent to the approval of the plans and specifications and final approval of the 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 shall be installed and that the DEVELOPER shall provide a financial guarantee to the CITY in an amount deemed suffcient by the City to defray the City's expenses incurred in the construction of the Stage I improvements together with the City's other miscellaneous expenses necessary in Plat approval and Improvement construction. The financial guarantee 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 Stage I 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 will be paid at or before the time a Certificate of Occupancy is issued for a residence within the Plat. The total amount of the cost of the Stage I Improvements to be specially assessed against the Plat is estimated at One Hundred Fifty-Four Thousand and Six Hundred and Fifty-Six Dollars and 00/100 ($154,656.00) Therefore the letter of credit shall be in the amount of Thirty One Thousand Dollars and 00/100 ($31,000.00) (20% x 154,656.00). This financial guarantee, in addition to those purposes described above, shall assure the CITY that the special assessments are paid as required herein. Because of the need to guarantee the payment of the special assessments, the cash escrow shall be retained for the payment term of the assessments, which term is five (5) years. Assessed Costs. It is understood and agreed that construction cost mounts set forth in this Agreement as Stage I Improvements, unless specified, are the actual costs to be assessed. The DEVELOPER agrees to pay the entire actual costs of said improvements including interest, fiscal engineering and legal charges. Date For Supplying Financial Guarantee. The DEVELOPER agrees to supply the financial guarantee as described above to the CITY prior to the CITY constructing the Stage I Improvements. Violation of this Agreement· The DEVELOPER agrees that the terms of the financial guarantee required herein 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 amount necessary for the City to cure the default. Late Charge Fee. A late charge fee of 10% of any special assessment payment delinquent by more' than thirty (30) days shall be required for late payments. Said 10% shall be paid to the Project's Bond fund established by the CITY. Draft Chestnut Pond Development Agreement 4