Agenda - Council - 11/24/1992 - Laserfiche WebLink

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letter of credit approved by the C~y in a m~ntmum amount equal to 2(55~. of the City Engineer's estimated cost of the Stage I Development improvements. The decision on ``,,,tether a cash escrow or letter of credit will be used for this escrow requirement will be made by the City Council on a case by case basis. For non-City awarded improvements, the owner or subdivider shall deposit with the City Finance Department a cash amount or letter of credit equal to 125% of the lotal cosI of such improvements as estimated b5' the City Engineer, including the billable estimated expense of the City for engineering, legal, fiscal, administrative and other expenses incurred by the City in connection with the making of such improvements. On a monthly basis as the project pro~esses, the City Engineer shall estimate the amount of work completed and recommend to the Git.',' council the amount of funds to be released to the subdivider. There shall be an escrow agreement which shall provide that in the event the required improvements are not completed within one year, all amounts held under the escro``v agreement shall be automatically turned over and delivered to the Git5' and applied by the City to the cos~ of completing the required improvements. If the fnnds available within said escrow are not sufficient to complete the required improvements, the necessary additional cost to the City shall be assessed against the subdivision. An.-,, balance remaining in the escrow fund after such improvements have been made and all expenses therefore have been paid shall be returned to the subdivider. In instances ,.,,,here a letter of credit is used in lieu of a cash escrow, said letter of credit shall be in a form satisfactou, to the City and the tem'~s thereof sh~l 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 cieveloper's financial status in relation to the project size. That is, the escrow requirements may var,,, with each developer depending on his credit worthiness. The final escrow amount, above the minimums described above, shall be determined by the City Council Eae. h developer shall be required to submit with his development application current audited financia) statements. The City will then reviev,' and anaivze the financial statements and then issue its opinion as to :ne financial strength of the developer in relation to the proposed projezt. The report ,,,,,ill then be the basis for the City to determine what, if an.',', additional escrow over and above the minimum dest..'ribed in Para~aph c. above will be necessa_rv ~fore the project proceeds. The City ma``' require access to the developer's records in order to test the accuracy of the developer's audited financial statements. Assessment. Upon completion of the City ordered Stage I im:rovements, the City shall cause to be specially assessed in the manner provided by 5'iinnesota Statutes Chapter 429. 100% of the cos', of said impro``'ements. The assessments shal! be levied against the benefitted lots in the Subdivision requiring payment in full over a period of five ``,ears. together with interest. At the time of rte