04-12-2006 Council Agenda - Laserfiche WebLink

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The Preserve Development Contract Finance 11. As financial security, Developer shall furnish the City with a Developer's Bond or Letter of Credit in an approved format in an amount equal to One Million, One Hundred Sixty - Eight Thousand and no /100 ($1,168,000.00). The Developer's Bond or Letter of Credit shall guarantee Developer's completion of all of the Required Improvements, compliance with this Agreement, and compliance with the terms and conditions of approval of The Preserve Plat as delineated by City Resolution Number 2005 -9 -225 and any City resolution associated with final plat approval granted on September 28, 2005. Said surety shall be immediately available for City's use to complete part or all of the construction in a timely and satisfactory manner, as determined in the sole discretion of City. Said surety shall remain in full force and effect until completion and acceptance of the Required Improvements based on the sole determination of City. After the completion of the lowering of Magellan Midstream Partners pipelines, the letter of credit may be reduced by $125,000. After the first lift of asphalt is applied to the streets and approved by the City Engineer, the financial security may be reduced to an amount equal to the cost of the final Lift of asphalt, any remaining utility work, and any site restoration including plantings multiplied by 150 %. 12. The Developer agrees that the terms of the financial security shall be deemed to have been violated if the Developer fails to perform any of the terms of this Contract in the manner required by the City. Determination of a violation of the terms of the Contract shall be in the sole discretion of the City. The financial security shall be immediately available for use by the City to complete part or all of the Required Improvements in the event this agreement is breached or the Required Improvements are not completed in an acceptable or timely manner, as determined in the sole discretion of the City. The City shall have the right to enter upon the property to inspect work or complete all or a portion of the Required Improvements as necessary. In the event the City does any such work, the City may, in addition to its other remedies, assess its costs in whole or in part. - 4 - - 5 -