Agenda - Council - 10/13/2026 - Laserfiche WebLink

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7. Developer'�Financial Guarantee. The DEVELOPER agrees and understands that the CITY has the right, privilege and authority pursuant to Minnesota Statutes Chapter 462.358 and as amended as a condition precedent to the approval of the plans and specifications and approval of a final plat, to prescribe requirements and the extent to which, and the manner in which the streets be graded or improved, and the water, sewer, and other utility mains, piping, or other facilities shall be installed and that the DEVELOPER shall provide a financial guarantee to the CITY to provide for the actual construction and installation of the required Stage I Improvements and all other obligations of DEVELOPER provided for herein within a period specified by the City Council. Said financial guarantee shall provide that the CITY possess the statutory power to enforce such financial guarantee by all appropriate and legal remedies. The DEVELOPERS shall deposit with the CITY, cash in an amount equal to fifteen percent (15%) of the total cost of the project. In lieu of this cash deposit, the DEVELOPERS may file an irrevocable Letter of Credit or some other form of financial guarantee acceptable to the CITY in a minimum amount equal to twenty percent (20%) of the total cost of the project. This financial guarantee, in addition to those purposes described above, shall assure the CITY that the improvements required herein will be actually constructed and installed according to the specifications approved by the CITY, that the special assessments are paid as required herein, and that the DEVELOPERS will fulfill all obligations set forth in this Agreement. Because of the need to guarantee the payment of the special assessments, the escrow shall be :retained until all obligations of the DEVELOPERS, including the payment of all special assessments, are satisfied. The DEVELOPERS agree to pay all costs associated with the installation of sanitary sewer and water systems necessary to provide service to the development with the exception of those elements which are required to be oversized to enhance the overall performance of the system or to provide extra depth to service future upstream service areas. Eight inch (8") watermain and eight inch (8") sanitary sewer are considered to be normal sizes for providing lateral service. The DEVELOPERS share of the total estimated cost of the Stage I Improvements is Seventy One Thousand Five Hundred Dollars and no cents ($71,500.00). Therefore, the cash deposit shall be in the amount of Ten Thousand Seven Hundred Twenty Five Dollars and no cents ($10,725.00) or Fourteen Thousand Three Hundred Dollars and no cents ($14,300) in any other form of financial guarantee. This financial guarantee, in addition to