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Kearney City Zoning Code

CHAPTER 57

IMPROVEMENT FINANCING AND GUARANTEES

57-101 - PURPOSE

The purpose of this Chapter is to ensure the equitable financing and proper installation and maintenance of required streets, utilities, and other improvements. The guarantee shall be structured to provide adequate assurances to the City while not adding unnecessary costs to the developer.

57-102 - APPLICATION AND PROCEDURE

A.

Improvement Districts. This Chapter applies to subdivisions which require the installation of streets, utilities, or other public improvements by the City or developer. Whenever subdivision improvements are requested, the Council may create a district for each type of improvement. With the exception of districts created to advance public projects for, or at the request of, political subdivisions as that term is defined at Section 13-903 of the Nebraska Revised Statutes, all developers will be required to deposit with the City, within thirty (30) days after the Council accepts the engineer's estimate for the project, fifty percent (50%) of the total estimated cost of the improvements outlined in Section 57-103. In the event that developers fail or refuse to make the deposit, the City will not proceed further and may repeal the district. The remaining costs of the improvements outlined in Section 57-103 shall be assessed to the property within the district. Assessments levied against new subdivisions shall draw interest at a rate approximately two percent (2%) above the projected rate of interest of the bond required for the project.

B.

Developer Constructed Infrastructure. An alternative procedure for installation of public improvements is available, whereby the developer constructs all necessary public improvements at his/her expense under a City approved engineering contract, specifications, and design drawings. The application and procedures for developer constructed infrastructure are contained in Chapter 9, Article 13 of the Kearney City Code.

57-103 - RULES FOR DISTRIBUTING IMPROVEMENT COSTS FOR DISTRICTS

A.

Responsibility of Subdivider. The subdivider shall be responsible for the installation and/or construction of all improvements required by this Chapter and shall warrant the design, materials, workmanship, construction, and performance of such improvements for two (2) years after the date of completion. All costs of said improvements, less any deposits paid to the City shall be assessed to the property within the district:

1.

Paving: Thirty-six (36) foot wide, six (6) inch Portland Cement concrete slab in place, curb in place, excavation or fill, grading, and the portion of "T" intersections abutting building lots.

2.

Water: Eight (8) inch diameter water mains and services installed at the time of construction.

3.

Sanitary Sewer: Eight (8) inch diameter sanitary sewer mains; manholes, fittings, and stub outs installed at the time of construction.

4.

Storm Sewer: Adequately sized storm sewer systems (if the system is piped, the developer shall be responsible for up to twenty-four (24) inch diameter pipe) that provide effective runoff for storm water generated on the development site as well as storm water traveling across the site. Storm sewers shall be installed before the streets are graded and paved. A storm water management system adequate to provide for the collection, retention, and removal of surface runoff, extending to the boundaries of the subdivision.

5.

Engineering: Engineering costs shall include engineering for paving, water, sanitary sewer, and storm sewer.

6.

Sidewalks: As required by this ordinance. Construction of sidewalks may be delayed until after completion of site grading and construction, but must be completed prior to occupancy of the structure.

B.

Responsibility of the City. Generally, the following rules shall be followed in distributing costs for public improvements. Allowable public costs will be those items that have demonstrable benefit to the general public. The following improvements shall be an obligation of the City and are subject to any plans or policies as may be adopted by the City from time to time, budgetary constraints and considerations, and design and construction schedules. These items may include:

1.

Pavement: Costs for paving "T" intersections (except portions of "T" intersections abutting building lots). Pavement width in excess of thirty-six (36) feet or slab thickness in excess of six (6) inches for streets designated as collector or arterial streets in the Kearney Comprehensive Development Plan or any subsequent amendment thereof. On collector and arterial streets requiring a higher standard of paving than normal, the additional cost shall be borne by the City or other public agency.

2.

Water: Those costs required to be paid by the City for extension of water lines, pursuant to the Kearney City Code. The incremental cost of water mains over eight (8) inches in diameter, valves, fittings, booster pumps and fire hydrants.

3.

Sanitary Sewer: Those costs required to be paid by the City for extension of sewer lines, pursuant to the Kearney City Code. Sanitary outfall sewers or water lines outside of the limits of a subdivision that serve areas larger than that of the subdivision, provided that such extension is consistent with the sequencing of development specified in the Comprehensive Development Plan. The additional costs of sanitary sewers over eight (8) inches in diameter, when such sewers are required by the City. Costs for sewage treatment plants and lift stations will be paid for by the City, provided the City Council approves their installation.

4.

Storm Sewer: Oversized storm sewers or drainage structures required to serve other areas in the watershed. Such expenses may also be assessed on an area basis to properties served by the improvement.

5.

Park and Recreation facilities: Consistent with the Comprehensive Development Plan.

6.

Street Signs: Street signs of equal design and quality to the signs typically being installed by the Public Works Department.

C.

The subdivider in lieu of installing and constructing said improvements at his/her expense, may, along with all owners of property to be affected by such improvements and all perfected lienholders, petition the City Council to cause the construction of such improvements. This petition shall waive any required resolution of necessity, any applicable limitations of the amount which could be assessed against subdivision property owners including intersection costs, and other costs normally paid by the City in special assessment projects.

57-104 - SUBDIVISION AGREEMENT

A.

Condition for Approval of Plat. As a condition for final approval, each subdivision plat must include a subdivision agreement entered into between the City of Kearney and the subdivider, unless specifically waived by the Director of Public Works. Additionally, no contract for the construction of public improvements involving a subdivision within the extraterritorial jurisdiction but outside the corporate limits of Kearney shall be awarded without the approval of such an agreement.

B.

Components of the Agreement. The agreement shall include provisions for the financing and distribution of responsibilities among the City and the subdivider in accordance with Section 57-103 for land acquisition, design, and installation of public improvements as provided by Section 57-102. The agreement shall also state specifically how public services will be provided in the subdivision prior to annexation by the City.

57-105 - SUBDIVISIONS CONTIGUOUS WITH CITY

Developments which are contiguous to existing improvements (water, storm and sanitary sewer, streets, etc.) are strongly encouraged. Unless otherwise provided as a specific part of the subdivision approval by the City, all subdivisions now or hereafter laid out adjoining or contiguous to the corporate limits of the City shall be included within such corporate limits and become a part of the City of Kearney. The residents of the subdivision shall be entitled to all the rights and privileges and subject to all laws, ordinances, rules, and regulations of the City of Kearney.

57-106 - NON-CONTIGUOUS DEVELOPMENT

Developments are considered non-contiguous to existing improvements when either (1) the improvement is not immediately accessible to the development or (2) the improvements which are immediately accessible to the development do not have the available capacity to serve the development and other existing improvements must be extended to the development in order to supply the development. In cases of non-contiguous developments, the following shall apply:

A.

When developments require extension of improvements to developments not contiguous to existing improvements, the developer and City shall negotiate the allocation of cost.

B.

The City may create improvement districts and levy special assessments to pay for such improvements if it is in the best interest of the City.

57-107 - PERFORMANCE GUARANTEES

A.

As a condition of the final approval of the plat and prior to recording it with the appropriate County Register of Deeds, the City Council shall require and accept the following:

1.

The furnishing of a performance bond, letter of credit, cash escrow, or other guarantee in a form acceptable to the City, in an amount not to exceed one hundred percent (100%) of the estimated cost of the improvement installation.

2.

A specification of the time allowed for the installation of improvements. This period may be extended by the City Council.

3.

The performance guarantee amount and requirement, along with the permitted time for installation, shall be included within the Subdivision Agreement negotiated between the City and the Developer and approved with the Final Plat.

57-108 - BUILDING PERMITS

A.

Permit Issue Criteria. A building permit may be issued for a new building in a new development only after:

1.

All public improvements required by Code have been installed, or

2.

The City has awarded a construction contract for the public improvements and the construction of the improvements is reasonably expected to be completed prior to the building's certificate of occupancy, or

3.

The developer has entered into an infrastructure agreement for the public improvements and the construction of the improvements is reasonably expected to be completed prior to issuing the building's certificate of occupancy.

B.

Exceptions. There may be circumstances which warrant approval to proceed with building construction prior to one of the above three criteria being met. In that case, the City Council may enter into an agreement with the developer to allow building construction to proceed. Otherwise, building construction shall not be permitted. The agreement will be developed on a case-by-case basis, depending on the specific circumstances. Some of the agreement's requirements may include, but are not limited to:

1.

The developer provides justification demonstrating why the "Permit Issue Criteria" in section 57-108A cannot be met.

2.

The developer initiates the permanent public improvement process (either the City creates the improvement districts or the developer enters into an infrastructure agreement) and construction of the permanent public improvements is not expected to be completed prior to issuing the building's certificate of occupancy.

3.

The City may allow temporary use of well, septic, and gravel roads while awaiting construction of the permanent public improvements. In this case, the developer will be solely responsible for all costs, liabilities, and disruptions associated with the temporary improvements and the transfer to the permanent, public improvements. The agreement will address the allowed duration for the temporary use of well, septic, and gravel roads. Performance bonding in the amount of one hundred percent (100%) of the estimated cost of the construction of the public improvements, as determined by the City, may be required as security from the developer to ensure the developer will construct and/or connect to the permanent public improvements when they are available. Authority will be granted to the City to enjoin the developer from continued use of the temporary well, septic, and gravel roads or the transferring to permanent public improvements.

4.

The developer shall hold the City harmless for any and all costs and disruptions related to the use of well, septic, and gravel roads; transferring to permanent public improvements; and all problems which arise from building construction taking place prior to the construction of the permanent public improvements

C.

Buildings on Corner Lots. Building permits for buildings on corner lots shall be issued only after improvements on all abutting streets have met the "Permit Issue Criteria" in section 57-108A for the entire length of the lot.

D.

Certificates of Occupancy. Buildings shall be occupied and certificates of occupancy issued only after all improvements are in place, unless otherwise provided for under section 57-108B.

57-109 - NOTIFICATION OF COMPLETION AND ACCEPTANCE BY CITY

A.

Notification. Upon substantial completion of all required improvements, the developer shall notify the City Engineer in writing, as well as submitting a certification from a registered professional engineer, attesting to the adequacy of the installation.

B.

Inspection and Acceptance.

1.

The City Engineer shall inspect all installations, and shall approve, partially approve, or disapprove the installation. Upon completion of improvements, he/she shall file a statement with the City Council and City Planner certifying that the improvements have been completed satisfactorily or listing the defects in the improvements.

2.

If the installation is approved, the City Engineer shall notify the developer of acceptance in writing. Such acceptance shall release the developer from liability pursuant to the performance guarantee for the installation. The City has the right to retain up to ten percent (10%) of the value of the performance guarantee for a period of up to one (1) year from the date of acceptance to remedy any deficiencies which appear during that period.

3.

If improvements are not accepted or not completed within the specified time, the performance guarantee shall be forfeited and used by the City to complete satisfactory installation of improvements.

4.

No residential occupancy permits shall be issued for a subdivision unless the installation of improvements has been inspected and approved in full by the City Engineer.