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I~DEVELOPMENT CONTRACT L FLINTWOOD HILLS 2ND ADDITION . . <br /> prescribe requirements and the extent to which, and the <br /> manner in which the streets be graded or improved, and <br /> the water, sewer, and other utility mains, piping or <br /> other facilities shall be installed and that the <br /> Developers shall provide a financial guarantee to the <br /> [ City to provide for the actual construction and <br /> [ installation of the required improvements within a <br /> period specified by the City Council. <br /> [ Said financial guarantee shall provide that the City <br /> possess the statutory power to enforce such financial <br />[ \~ ~ I guarantee by all appropriate and legal remedies. Said <br /> [ financial guarantee shall be a letter of credit as <br /> [ follows: The Developers shall provide the City, in a <br /> ~ form acceptable to the City, a letter of credit in an <br /> ~ amount equal to twenty percent (20%) of the total cost <br /> ! of the project or a cash deposit in the amount of 15% of <br /> ! the total project cost. The City will accept the letter <br /> ~ of credit subject to the Developers' agreement that all <br /> [ levied special assessments pertaining to the lots within <br /> ~ the subdivision be paid at the time a certificate of <br /> [ occupancy is issued for a residence within the <br /> | subdivision and payment of all pending special <br /> ~ assessments pertaining to the lots within the <br /> ~ / subdivision be guaranteed by escrowing an amount equal <br /> ~ to ]05% of the pending special assessments at the time <br /> ! of the issuance of the certificate of occupancy for a <br /> ~ residence on any one of the lots within the subdivision. <br /> The total estimated cost of the improvements in the plat <br /> is $40~,400.00. Therefore the letter of credit shall be <br /> in the amount of $80,280.00(20% x $40~,400.00) or cash <br /> in the amount of $60,2~0.00(]5% x $40],400.00). This <br /> financial guarantee shall assure the City that the <br /> improvements required herein will be actually <br /> constructed and installed according to specifications <br /> approved by the City, and that the special assessments <br /> are paid as required herein. Because of the need to <br /> o~uarantee the payment of the special assessments, the <br /> letter of credit shall be effective and in force for the <br /> ,payment term of the assessments, which term is five (5) <br /> ~ears. <br /> 7.~he Developers agree to supply the financial guarantee <br /> as described above to the City prior to awarding the <br /> construction contracts by the City, and if a letter of <br /> credit is submitted, said letter of credit shall be <br /> issued by a financial institution and in a form <br /> satisfactory to the City. <br /> <br />The Developers agree that the terms of the financial <br />guarantee shall be deemed to have been violated if the <br />Developers fail to perform anyone of the terms of this <br /> <br /> <br />