Agenda Packets - 2004/08/09 - Laserfiche WebLink

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2.05. Additional Work or Materials. The Improvements shall be constructed at no expense to the City. The Developer shall not do any work or furnish any materials for which reimbursement is expected from the City, unless such work is first ordered and reimbursement is approved by the City or which is the subject of any separate written agreement. Any work or materials which is done or furnished by the Developer without prior written order is furnished at the Developer's risk, cost and expense, and the Developer agrees that it will make no claim for compensation for work or materials so done or furnished. 2.06. Financial Guarantee. Prior to commencement of construction of the Improvements, the Developer agrees to furnish the City a performance bond, certified check, certificate of deposit, irrevocable letter of credit from a bank or cash escrow in the amount of 125% of the estimated costs for the Improvements (the "Financial Guarantee"), such estimates to be based on received bids or other evidence satisfactory to the City in its sole discretion. The estimated costs for the Developer for the Improvements for the development of $172,000.00 are set forth in Exhibit B attached to this Agreement. Upon failure of Developer to perform, the City may declare the Developer to be in default under this Agreement and, upon failure of the Developer to cure the default within 30 days of written notice, may demand the Financial Guarantee be paid over to the City provided however if the Developer commences to cure within said thirty days, the time to cure shall be extended for a reasonable time not to exceed 60 days. From the proceeds of the Financial Guarantee, the City shall be reimbursed for any attorneys' fees, engineering fees or other technical, administrative or professional assistance, and the remainder thereof shall be used by the City to complete the Improvements. The Developer shall be liable to the City in the event that the Financial Guarantee is inadequate to reimburse the City for its costs and pay for the completion of the Improvements. Upon completion of the Improvements and passage of any required inspections and final acceptance of the Improvements by the City pursuant to Section 2.09 of this Agreement, absent any default of the Developer, the Financial Guarantee shall be terminated. The bank and form of the letter of credit or other security shall be subject to the approval of the City. The letter of credit shall be automatically renewable until the City releases the developer from responsibility. The letter of credit shall secure compliance with the terms of this Agreement and all obligations of the Developer under it. The City may draw down on the letter of credit without notice if the obligations of the Developer have not been completed as required by this Agreement. In the event of a default under this Agreement by the Developer, the City shall furnish the Developer with written notice by certified mail of Developer’s default(s) under the terms of this Agreement. If the Developer does not remove said default(s) within thirty (30) days of receiving notice provided however if the Developer commences to cure within said thirty days, the time to cure shall be extended for a reasonable time not to exceed 60 days; the City may draw on the letter of credit provided funds are used to complete the Improvements. With City approval, the letter of credit may be reduced from time to time as financial obligations are paid and Developer installed improvements completed to the City’s requirements. In the event City does not recover its costs for completing the Improvements under the provisions of this paragraph, as an additional remedy, City may, at its option, assess the Property in the manner provided by Minnesota Statutes, Chapter 429, and