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Development Contract Century Farm North 2nd Addition 4 -26 -2004 The Developer shall reimburse the City for the following described improvements to serve the Subdivision on the terms and conditions herein set forth: 1. Sanitary sewer trunks. Construction Procedures 1. All City Improvements above shall be instituted, constructed and financed as follows: The City shall commence proceedings pursuant to Minnesota Statute 429 and City Charter providing that such improvements be made and assessed against the benefited properties. After preparation of preliminary 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 plans and specifications by the City Engineer, bids will be taken by the City and contract awarded for the installation of City Improvements under the City's complete supervision. Security, Levy of Special Assessments and Required Payment Therefore. 1.. Prior to the preparation of final plans and specifications for the construction of said City Improvements, the Developer 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 established by the City Engineer. (See Attachment B) Said letter of credit or cash escrow including accrued interest thereon, may be used by the City upon default by Developer in the payment of special assessments pursuant hereto, whether accelerated or otherwise. Developer must receive written notice and a reasonable opportunity to cure before City draws on cash escrow for special assessments. That such cash escrow or letter of credit shall remain in full force and effect throughout the term of the special assessments, except, the amount of such escrow or letter of credit may be reduced, upon the request of the Developer, at the City's option, but in no event shall be less than 35% of the outstanding special assessments against all properties within the Subdivision. The entire cost of the installation of such City Improvements, including any reasonable engineering, legal and administrative costs incurred by the City, shall be assessed against the benefited properties within the Subdivision in accordance with City policy existing the date of this agreement, in equal annual principal installments plus interest on the unpaid installments at a rate not to exceed the maximum allowed by law. All related special assessments levied hereto shall be payable to the City Clerk in semi - annual installments over fifteen (15) years commencing on page 8 -40-