10/01/2007 Council Packet - Laserfiche WebLink

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4. CITY - FINANCED IMPROVEMENTS - NEW SUBDIVISIONS In all projects which the City constructs and finances, the following security provisions shall apply: A. The developer shall deposit with the City a letter of credit or cash escrow deposit of not less than thirty -five percent (35 %) of the estimated project cost as determined by the City Engineer. Project costs to include intemal improvements involved with the plat only. If the project costs determined after receipt of bids for construction exceed the Engineer's estimate by ten percent (10 %) or more, the cash escrow deposit or letter of credit shall be increased proportionately. The total project cost shall be assessed in equal annual installments over a period not to exceed fifteen (15) years at an interest rate of 2% over the interest rate on the project improvement bonds. The cash escrow or letter of credit shall remain intact until the outstanding principal of assessments against the property is equal to or less than the cash escrow or letter of credit, plus accrued interest. At such time the cash escrow or letter of credit with accrued interest deposit, shall be used to pay the balance of the principal outstanding. Assessments on a lot shall be paid in full within sixty days after a certificate of occupancy is issued for a building on any lot whether such lot is owned by the developer, his heirs, successors or assigns. B. In the case where the improvements benefit not only the property being developed, but other areas within the City, the developer shall provide to the City a security deposit in accordance with subsection A., above for the portion of the estimated project costs which represent the benefit to the proposed development. Such portion shall be assessed against the property as outlined in subsection A., above. C. Where trunk sanitary sewers or watermains and storm sewers are constructed to serve undeveloped areas, the trunk costs and unit costs may be assessed on a per acre basis and included with the assessments levied under the procedure outlined in subsection A., above. D. In areas where trunk sanitary sewers or watermains are constructed to serve undeveloped areas, the City may determine to assess the trunk costs by the use of unit connection charges to be paid at the time building permits are issued, or at the time the lateral sewer and/or water assessment is made. The City shall determine the number of sanitary sewer and/or water connections to be made in the proposed development served by the trunk systems and shall require that the estimated unit charges for the development be added to the estimated project cost and included in the security deposit. In the event the connections are not made to the public sanitary sewer and/or water systems and the charges paid by the end of the financing period, then the unit charges would be paid from the available security deposit. If the funds available are not sufficient to pay the connection charges, the additional cost shall be assessed against the development in equal annual installments over a period of two years. E. New plats will be allocated and/or assessed for a proportional share of costs for adjacent utility lines and streets.