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9. Inspection Fees. The PERMITTEE shall be responsible for all inspection costs incurred by the <br />CITY related to the installation of Required Improvements. The PERMITTEE shall make a <br />cash deposit into the appropriate escrow account at the CITY and the CITY shall have the authority <br />to draw upon these funds for the purpose of compensating for inspection services. The amount of <br />the deposit shall be equal to five percent (5%) of the estimated cost of the Required <br />Improvements, which equates to Five Thousand Four Hundred Fifty -Nine Dollars and No <br />Cents ($5,459.00) (5% x $109,179.25). Upon completion of the Required Improvements to the <br />satisfaction of the CITY, any surplus balance remaining in the CITY's escrow account shall be <br />refunded to the PERMITTEE. <br />10. Payment of Development Fees. The PERMITTEE must pay to the CITY development fees as <br />outlined in Exhibit 1, prior to issuance of a Building Permit. <br />SECTION II <br />PERMITS AND OCCUPANCY <br />11. Requirements for Building Permit. <br />a. No building permit shall be issued until the PERMITTEE has: (a) installed a Class 5 driving <br />surface to within 300 feet of the structure; (b) provided the CITY Building Official with a <br />Certificate of Survey; c.) submitted the financial guaranty described in Section I Paragraph 8 <br />to the CITY; d.) obtained all necessary permits from the Lower Rum River Watershed <br />Management Organization and has provided a copy of such permit to the CITY; and <br />b. No occupancy permit shall be issued until the PERMITTEE has: (a) constructed vehicular <br />access to the lot, including the installation of at least one layer of bituminous surfacing; (b) <br />constructed all utilities and storm water facilities this Agreement requires to serve the lot and <br />such utilities and storm water facilities are in place, operational and accepted by the CITY; (c) <br />for lots that have a slope of less than 2%, provided the CITY with a certificate of grading, <br />prepared by a licensed (State of Minnesota) professional land surveyor, certifying that the <br />flattest grade on the lot is 1 % or greater; (d) installed and planted the sod and landscaping that <br />are required; and (e) execute and record a Sidewalk Easement Agreement for the portion of <br />public sidewalk along Sunwood Drive that encroaches onto the Subject Property. <br />SECTION III <br />LANDSCAPING <br />12. Maintenance Guaranty for Landscaping. It is herein agreed that the PERMITTEE shall <br />provide a maintenance guaranty to ensure the survival of the plantings. Said maintenance guaranty <br />shall consist of cash or an irrevocable letter of credit, approved as to form by the CITY, in the <br />amount of One Thousand Nine Hundred Fifty -Eight Dollars and No Cents ($1,958.00) [#plantings <br />(6 trees and 63 shrubs) xcost/planting ($300/tree and $75/shrub) x 30% average non -survival rate], <br />which shall be in effect for a two (2) year period commencing on the date of the CITY's written <br />acceptance of said plantings as part of the Required Improvements. <br />At the end of the two (2) year period, the PERMITTEE shall contact the CITY to schedule a final <br />inspection of the landscaping. The determination that all plantings that have been planted in <br />accordance with the Plans have either survived or have been replaced shall be made by the CITY. <br />Upon approval of the final landscape inspection by the CITY, the maintenance guaranty shall be <br />3 <br />