§ 50-110. Subdivision agreement.

(a)

Contract and security to be submitted. Before the city council shall accept a final plat, the subdivider and owner shall have submitted the following contract and security for public improvements:

(1)

Written agreement. A written agreement between the subdivider and owner and the city for the installation within one year (from the date of the plat approval), or such other period as the city council shall approve, of public facilities as required by the city. Such agreement shall specify the nature of all public improvements, the time of construction and any other matters required.

(2)

Types of guarantee. The subdivider and owners shall further guarantee such construction by one of the following methods:

a.

Surety bond. Surety bond executed by a corporate surety duly licensed to do business in the state, or by other appropriate institution having adequate assets to perform the terms of the surety bond as determined by the city, in an amount at least equal to 115 percent of the current cost of public facilities, such cost to be established by the city.

b.

Cash bond. The subdivider and owners shall deposit with the city an amount at least equal to 115 percent of the current cost of public facilities, such cost to be established by the city.

c.

Irrevocable letter of credit. The subdivider and owners shall provide a clear and sufficient irrevocable letter of credit executed by a commercial bank insured by FDIC or other appropriate institution having adequate assets to perform the terms of the letter of credit as determined by the city. The form and conditions of such irrevocable letter of credit shall be approved by the city administrator and city attorney. The letter of credit shall be an amount equal to 115 percent of the current cost of public facilities, such cost to be established by the city.

d.

Plat restriction. The subdivider and owner shall enter, upon the final plat, language which restricts the conveyance, sale or transfer of any lot, lots, tract of land within the property until the required public facilities are constructed and are accepted by the city. The plat restriction may be utilized in only those phases in which a building permit has not been used. To release the plat restriction, the subdivider and owner shall supply the city with one of the above forms of surety in an amount as determined by the city.

(3)

Additional security to be provided for a one-year warranty period. After acceptance of the public facilities, the subdivider and owner shall continue to deposit with the treasurer a type of security described above in the amount of 15 percent of the cost of public facilities. Such surety shall be held for a one-year warranty period and used, subject to full accounts, for repairs or replacement of defects in material or workmanship if the owner should fail to make same.

(4)

Improvements of common-ownership areas. The city shall further require a written agreement between the subdivider and owner and the city for improvement of all areas of common ownership in the development. The city shall require that the subdivider guarantee improvement of the common areas by one of the methods delineated in subsection (2) of this section.

(5)

Circumstances voiding final plat. A final plat shall lapse and become void if less than one-half of the improvements required by the subdivision agreement have not been constructed prior to the deadline established in the subdivision agreement. In such event, the city shall certify to the county clerk that the plat is null and void.

(b)

Approval of amendments to construction schedule. Upon petition of the developer, the city council may, but shall at no time be under any obligation to do so, approve amendments to the construction schedule established in the subdivision agreement without otherwise amending the agreement. The city council may, but shall not be obligated to, consider physical and market factors which may have caused a change in the original construction schedule.

(Code 1985, § 11-1-8)