(1)

Completion of Improvements. Before the final subdivision plat is signed by the City Clerk, all applicants shall be required to complete, in accordance with the Council's decision and to the satisfaction of the City Engineer, all the street, sanitary and other public improvements, including lot improvements on the individual lots of the subdivision, as required in this ordinance, specified in the final subdivision plat and as approved by the Council, and to dedicate those public improvements to the City, free and clear of all liens and encumbrances on the dedicated property and public improvements.

(2)

Subdivision Improvement Agreement and Guarantee.

(a)

Agreement. The Council may waive the requirement that the proprietor complete and dedicate all public improvements prior to approval of the final subdivision plat and, in the alternative, permit the proprietor to enter into a subdivision improvement agreement by which the proprietor covenants to complete all required public improvements within a set time period.

(b)

Covenants to Run. The subdivision improvement agreement shall provide that the covenants contained in the agreement shall run with the land and bind all successors, heirs, and assignees of the subdivider. The subdivision improvement agreement will be adopted by the Council, pursuant to applicable state and local laws and shall be recorded in the Ottawa County Recorder of Deeds.

(c)

Security. Whenever the Council permits an applicant to enter into a subdivision improvement agreement, it shall require the applicant to provide a letter of credit or cash escrow as security for the promises contained in the subdivision improvement agreement. Either security shall be in an amount equal to 100 percent of the estimated cost of completion of the required public improvements, including lot improvements.

1.

Letter of Credit. If the applicant posts a letter of credit as security for its promises contained in the subdivision improvement agreement, the credit shall: (1) be irrevocable; (2) be for a term sufficient to cover the completion, maintenance and warranty periods in Section 1226.01(2)(a); and (3) require only that the City present the credit with a sight draft and an affidavit signed by the City Attorney attesting to the municipality's right to draw funds under the credit.

2.

Cash Escrow. If the applicant posts a cash escrow as security for its promises contained in the subdivision improvement agreement, the escrow instructions shall provide: (1) that the subdivider will have no right to a return of any of the funds except as provided in Section 1226.02(2)(b); and (2) that the escrow agent shall have a legal duty to deliver the funds to the City whenever the City Attorney presents an affidavit to the agent attesting to the City's right to receive funds whether or not the subdivider protests that right. If and when the municipality accepts the offer of dedication for the last completed required public improvement, the municipality shall execute a waiver of its right to receive all but twenty-five percent of the funds represented by the letter of credit or cash escrow if the subdivider is not in breach of the subdivision improvement agreement.

(3)

Temporary Improvement. The applicant shall build and pay for all costs of temporary improvements required by the Council and shall maintain those temporary improvements for the period specified by the Council. Prior to construction of any temporary facility or improvement, the developer shall file with the City a separate subdivision improvement agreement and a letter of credit or cash escrow in an appropriate amount for temporary facilities, which agreement and credit or escrow shall ensure that the temporary facilities will be properly constructed, maintained, and removed.

(4)

Costs of Improvements. All required improvements shall be made by the developer, at its expense, without reimbursement by the City or any special assessment district except that, as may be allowed under state law, the developer may form or cause to be formed a special assessment district or districts to construct and finance the construction of required public improvements excluding lot improvements on individual lots. If the subdivider does form or cause to be formed a special assessment district for the purposes identified in this section, the City shall not release the subdivider from its obligations under any subdivision improvement agreement nor shall the City release any security, in whole or in part, until the special assessment district has sold bonds or otherwise certifies to the City that it has an absolute right to raise revenues sufficient to construct, maintain, and warrant the quality of the required public improvements. The City, in lieu of the contract and security, may pass a certified resolution or ordinance from the Council agreeing to comply with the provisions of this article.

(5)

Failure to Complete Improvement. For subdivisions for which no subdivision improvement agreement has been executed and no security has been posted, if the improvements are not completed within the period specified by the Council in the resolution approving the plat, the sketch plat or preliminary plat approval shall be deemed to have expired. In those cases where a subdivision improvement agreement has been executed and security has been posted and required public improvements have not been installed within the terms of the agreement, the City may avail itself of all remedies permitted under the Security Improvement Agreement.

(6)

Acceptance of Dedication Offers. Acceptance of formal offers of dedication of streets, public areas, easements, and parks shall be by ordinance of the Council. The approval of a subdivision plat by the Council, whether preliminary or final, shall not be deemed to constitute or imply the acceptance by the City of any street, easement, or park shown on plat. The Council may require the plat to be endorsed with appropriate notes to this effect.

(Ord. No. 309. Passed 3-23-98.)

(1)

General Procedure and Fees. The applicant shall provide for inspection of required improvements during construction and ensure their satisfactory completion. The applicant shall provide to the City inspection and test results for gravel, sand, and bituminous compacting for road construction and all required for water and sanitary sewer. During construction, Council may require the inspecting of improvements by the City Engineer; inspection fees based on the cost of inspections shall be paid prior to final plat approval. These fees shall be due and payable upon demand of the City and no building permits or certificates of occupancy shall be issued until all fees are paid. If the City Engineer finds upon inspection that any one or more of the required improvements have not been constructed in accordance with the municipality's construction standards and specifications, the applicant shall be responsible for properly completing the improvements.

(2)

Release or Reduction of Security.

(a)

Certificate of Satisfactory Completion. The Council will not accept dedication of required improvements, nor release nor reduce the amount of any security posted by the subdivider until the applicant's engineer has submitted a certificate stating that all required improvements have been satisfactorily completed and until: (1) the applicant's engineer or surveyor has certified to the City Engineer, through submission of a detailed "as-built" survey plat of the subdivision, indicating location, dimensions, materials, and other information required by the City Engineer, that the layout of the line and grade of all public improvements is in accordance with construction plans for the subdivision, and (2) a title insurance policy has been furnished to and approved by the City Attorney indicating that the improvements have been completed, and are free and clear of any and all liens and encumbrances. Upon such approval and recommendation by the City Engineer, and City Attorney, the Council shall thereafter accept the improvements for dedication in accordance with the established procedure.

(b)

Reduction of Escrowed Funds and Security. If the security posted by the subdivider was a cash escrow, the amount of that escrow shall be reduced upon actual acceptance of the dedication of public improvements and then only to the ratio that the cost of the public improvement for which dedication was accepted bears to the total cost of public improvements for the subdivision. At the end of the maintenance and warranty periods, all escrowed funds, if any, shall be released to the subdivider. If the security provided by the subdivider was a letter of credit, the City Attorney shall execute waivers of the municipality's right to draw funds under the credit upon actual acceptance of the dedication of public improvements and then only to the ratio that the cost of the public improvement for which dedication was accepted bears to the total cost of public improvements for the subdivision.

(Ord. No. 309. Passed 3-23-98.)

(1)

Acceptance of Escrow Funds. Whenever, by reason of the season of the year, any lot improvements required by this ordinance cannot be performed, the Building Inspector may issue a certificate of occupancy, provided there is no danger to health, safety, or general welfare upon accepting a cash escrow deposit in an amount to be determined by the City Engineer for the cost of the lot improvements. The subdivision improvement agreement and security covering the lot improvements shall remain in full force and effect.

(2)

Procedures on Escrow Fund. All required improvements for which escrow monies have been accepted by the Building Inspector at the time of issuance of a certificate of occupancy shall be installed by the subdivider within a period of nine months from the date of deposit and issuance of the certificate of occupancy. If the improvements have not been properly installed at the end of the time period, the Building Inspector shall give two weeks written notice to the developer requiring it to install the improvements, and if they are not then installed properly, the Building Inspector may request the governing body to proceed to contract out the work for the installation of the necessary improvements in a sum not to exceed the amount of the escrow deposit. At the time of the issuance of the certificate of occupancy for which escrow monies are being deposited with the Building Inspector, the developer shall obtain and file with the Building Inspector prior to obtaining the certificate of occupancy a notarized statement from the purchaser or purchasers of the premises authorizing the Building Inspector to install the improvements at the end of the nine-month period if the improvements have not been duly installed by the subdivider.

(Ord. No. 309. Passed 3-23-98.)

(1)

The Council may defer or waiver at the time of final approval; subject to appropriate conditions, the provision of any or all public improvements as, in its judgement, are not requisite in the interests of the public health, safety, and general welfare, or which are inappropriate because of the inadequacy or inexistence of connecting facilities. Any determination to defer or waive the provision of any public improvement must be made on the record and the reasons for the deferral or waiver also shall be expressly made on the record.

(2)

Whenever it is deemed necessary by the Council to defer the construction of any improvement required under this ordinance because of incompatible grades, future planning, inadequate or nonexistent connecting facilities, or other reasons, the subdivider shall pay his share of the costs of the future improvements to the City prior to signing of the final subdivision plat by the City Clerk, or the developer may execute a separate subdivision improvement agreement secured by a letter of credit guaranteeing completion of the deferred improvements upon demand of the City.

(Ord. No. 309. Passed 3-23-98.)

(1)

When a subdivision improvement agreement and security have been required for a subdivision, no certificate of occupancy for any building in the subdivision shall be issued prior to the completion of the required public improvements and the acceptance of the dedication of those improvements by the City, as required in the Council's approval of the final subdivision plat.

(2)

The extent of street improvement shall be adequate for vehicular access by the prospective occupant(s) and by police and fire equipment prior to the issuance of an occupancy permit. The developer shall, at the time of the offer of dedication, submit monies in escrow to the City in a sum determined by the City Engineer for the necessary final improvement of the street.

(Ord. No. 309. Passed 3-23-98.)