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City of Mounds View Staff Report <br /> July 5, 1997 <br /> 1111 <br /> Page 3 <br /> license or any building permit required for the construction, alteration, expansion or improvement <br /> of land. Such contracts shall include provisions for supervision of details of construction by the <br /> City and grant to the City authority to inspect all work performed to assure satisfactory <br /> performance and completion of the work. The typical contract includes a provision for posting <br /> surety to guarantee the completion of improvements. <br /> In addition, Minnesota State Law on subdivisions includes the following provision: <br /> The regulations may permit the municipality to condition its approval on the <br /> construction and installation of sewers, streets, electric, gas, drainage, and water <br /> facilities, and similar utilities and improvements or, in lieu thereof, on the receipt <br /> by the municipality of a cash deposit, certified check, irrevocable letter of credit, or <br /> bond in an amount and with surety and conditions sufficient to assure the <br /> municipality that the utilities and improvements will be constructed or installed <br /> according to the specifications of the municipality...The regulations may permit the <br /> municipality to condition its approval on compliance with other requirements <br /> reasonably related to the provisions of the regulations and to execute development <br /> contracts embodying the terms and conditions of approval. The municipality may <br /> enforce such agreements and conditions by appropriate legal and equitable <br /> remedies. (Section 362.358. Subd. 2a.) <br /> III The Mounds View Subdivision Regulations do not include this provision, although the section on <br /> � <br /> Development Controls noted above includes subdivisions as one of the items requiring a <br /> development contract. <br /> It is stars understanding that one of the reasons for requiring development contracts and posting <br /> of surety is to assure that improvements are completed, and conditions of approval are met. <br /> There are usually three circumstances under which surety is needed: <br /> • In new development, such as in a residential subdivision, to assure the completion of <br /> public improvements such as roads, sewer and water lines, and drainage improvements. <br /> Other examples would include building acceleration and deceleration lanes, and installation <br /> of traffic signs and street lighting for a new commercial development. <br /> • In new development or redevelopment of a site, to assure completion of on-site <br /> improvements such as parking lots and landscaping. <br /> • For homeowners, who have been given permission to make improvements, to assure that <br /> conditions of approval of met such as removing buildings or driveways that are no longer <br /> allowed. <br /> The current wording in the City's Municipal Code states that development contracts are required <br /> • for a much broader set of circumstances, and if followed to the letter of the law, staff would be <br /> requiring development contracts to be signed for every building permit. This is not being done, <br />