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11. <br /> <br />De.v, elot~er's Financial Guaranlee. The DEVELOPER agrees and understands that <br />the CITY: has the right, privilege and authority pursuant to Minnesota Statutes Chapter <br />462.328 and as amended as a condition precedent to the approval of the plans and <br />specifications and approval of a final plat, to prescribe requirements and the extent to <br />which, and the manner in which the streets be graded or improved, and the water, sewer, <br />and Other. utility mains, piping, or other facilities shall be installed and that the <br />DEVELOPER shall provide a financial guarantee to the CITY to provide for the actual <br />constmcfi.on and installation of the required Stage I Improvements and all other obligations <br />of DEVEI'.OPER provided for herein within a period specified by the City Council. <br /> <br />Said financial guarantee shall provide that the CITY possess the statutory power to enforce <br />such financial guarantee by all appropriate and legal remedies. The financial guarantee shall <br />be satisfied by the DEVELOPER depositing cash with the CITY as follows: In addition <br />to that required by paragraph four (4), the DEVELOPER shall deposit with the CITY <br />cash in an amount equal to fifteen percent (I5%) of the total cost of the project. In lieu of <br />this cash deposit, the DEVELOPER may file an irrevocable Letter of Credit or some other <br />form of financial guarantee acceptable to the CITY in a minimum amount equal to twenty <br />percent (20%) of the total cost of the project. This financial guarantee, in addition to those <br />purposes described above, shall assure the CITY that the improvements required herein <br />will be actually constructed and installed according to the specifications approved by the <br />CITY, that the special assessments are paid as required herein, and that the <br />DEVELOPER will fulfill all obligations set forth in this Agreement. Because of the need <br />to guarantee the payment of the special assessments, the escrow shall be retained until all <br />obligations of the DEVELOPER, including the payment of all special assessments, are <br />satisfied. <br /> <br />The DEVELOPER agrees to pay ail costs associated with the installation of sanitary <br />sewer, water, and storm water systems necessary to provide service to the development. <br />The DEVELOPER'S share of the total estimated cost of the Stage I Improvements is <br />Sixty-Two Thousand Dollars ($62,000.00). Therefore, the cash deposit shall be in the <br />amount of Nine Thousand Three Hundred Dollars ($9,300.00) or Twelve Thousand l:our <br />Hundred Dollars ($12,400.00) with any other form of financial guarantee. This financial <br />guarantee, in addition to those purposes described above, shall assure the CITY that the <br /> <br />DEVELOPMENT AGREEMENT - WOOD POND HILLS - 2ND ADDITION <br /> Page 5 of 1I <br /> <br /> <br />