11/05/92 - Laserfiche WebLink

Home

letter of credit approved by the City in a minimum amount equal to 20% of the City Engineer's estimated cost of the Stage I Development improvements. The decision on whether 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 total cost of such improvements as estimated by 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 progresses, the City Engineer shall estimate the amount of work completed and recommend to the City council the amount of funds to be released to the subdivider. e. 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 escrow agreement shall be automatically turned over and delivered to the City and applied by the City to the cost of completing the required improvements. If the funds 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. Any 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 where a letter of credit is used in lieu of a cash escrow, said letter of credit shall be in a form satisfactory to the City and the terms thereof shall 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 his credit worthiness. The final escrow amount, above the minimums described above, shall be determined by the City Council Each developer shall be required to submit with his development application current audited financial statements. The City will 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 an3,, additional escrow over and above the minimum described in Para~aph c. 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 developer's audited financial statements. Assessment. Upon completion of the City ordered Stage I improvements, the City shall cause to be specially assessed in the manner provided by Minnesota Statutes 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 years, together with interest. At the time of the