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Preserve at Lino Lakes Development Contract May, 2013 page 9 III. CITY IMPROVEMENTS A. The City shall install the following described i mprovements to serve the Subdivision on the terms and conditions herein set forth: 1. Storm sewer trunks. 2. Sanitary sewer trunks. 3. Water trunks. B. Construction Procedures 1. All City improvements above shall be instituted, constructed and financed as follows: The City shall commence proceedings pursu ant to Minnesota Statute 429 and City Charter providing that such im provements be made and assessed against the benefited properties. After p reparation of preliminary Developer Plans and estimates by the City Engineer, an improvement hearing, if required by law, will be called by the City Council for the purpose of ordering such City Improvements. After preparation of the final Developer Plans and specifications by the City Engi neer, bids will be taken by the City and contract awarded for the installati on of City Improvements under the City's complete supervision. C. Security, Levy of Special Assessments and Requir ed Payment Therefore. 1. Prior to the preparation of final Developer Plan s and specifications for the construction of said City Improvements, the Develop er shall provide to the City a cash escrow or letter of credit in an amount equal to thirty-five (35%) percent of the total estimated assessments as estab lished by the City Engineer. (See Attachment B) 2. Said letter of credit or cash escrow including a ccrued interest thereon, may be used by the City upon default by Developer in th e payment of special assessments pursuant hereto, whether accelerated or otherwise. That such cash escrow or letter of credit shall remain in ful l force and effect throughout the term of the special assessments, except, the am ount of such escrow or letter of credit may be reduced, upon the request o f the Developer, at the City's option, but in no event shall be less than 3 5% of the outstanding special assessments against all properties within t he Subdivision. The entire cost of the installation of such City Improvements, including any reasonable engineering, legal and administrative costs incurre d by the City, shall be assessed against the benefited properties within th e Subdivision in accordance with City policy existing the date of th is agreement, in equal annual principal installments plus interest on the unpaid installments at a rate not to exceed the maximum allowed by law.