09-22-2003 EDA Packet - Laserfiche WebLink

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Section 4.5 Security for Site Improvements. (a) Prior to commencement of construction of any Site Improvements, and as a condition to approval of Construction Plans for those improvements, Developer must submit to the Authority an estimate of cost for all Site Improvements, itemized by type. The estimates must be based on on the actual estimates provided by contractors who will carry out the Site Improvements. The estimates of Site Improvement Costs will be reviewed and approved by the Authority. If the approved costs differ from the estimates used to determined Developer's security provided under paragraph (c) of this Section, the security described in that section shall be adjusted accordingly. (b) The Developer will comply with all terms and conditions of all contracts entered into by Developer for the installation and construction of all Site Improvements, and guarantees the workmanship and materials for a period of one year following the City's final acceptance of such improvements (as evidenced by issuance of the Certificate of Completion). (c) Upon execution of this Agreement, Developer will deliver to the Authority a cash deposit, certified check, or irrevocable letter of credit in the amount of 35% of the total estimated cost of the Site Improvements determined as of the date of this Agreement. An irrevocable letter of credit shall be for the exclusive use and benefit of the Authority, and shall state thereon that the same is issued to guarantee performance by the Developer of all the terms and conditions of this Agreement relating to construction of the Site Improvements in accordance with the ordinances and procedures of the City. The Authority reserves the right to draw, in whole or in part, on the irrevocable letter of credit for the purpose of carrying out installation of the Site Improvements in the event of default by Developer of its obligations regarding such matters. The Developer must renew or replace an irrevocable letter of credit no later than 30 days before its expiration with a like letter of credit. Failure to timely renew or replace will entitle the Authority to draw on the entire amount of the letter of credit. (d) Developer is entitled to a reduction from time to time in the amount of the security provided under paragraph (c) of this Section, based on the value of the completed Site Improvements at the time of the requested reduction. The amount of the reduction will be reasonably determined by the City Engineer. (e) In addition to the security provided under paragraph (c) of this Section, the Developer shall deposit with the Authority, upon demand by the City Engineer, an amount determined by the City Engineer or his designee for the payment of all costs incurred by the Authority or City related to development of the Minimum Improvements and Site Improvements, including without limitation the following: Planning Administration (planning, engineering, legal) $1,500 (ii) TIF Administration Costs (see Section 3.4) $5,000 (iii) Sanitary sewer truck unit charge (43 estimated units @$984/SAC unit) * $42,312 (iv) Water trunk unit charge (43 estimated units @$1,588/SAC unit) * $68,284 Total Estimated Costs of Escrow Account $117,096 SJB-237079v2 LN 140-81 13