HomeMy WebLinkAbout2018-378 Amending Chapter 9 Section 960 Chapter 10 Section 10170 Financial GuaranteesCity of Corcoran
County of Hennepin
State of Minnesota
Motion By: Botfiema
Seconded By: Dejewski
CITY OF CORCORAN
September 7 31 2018
AN ORDINANCE AMENDING THE TEXT OF CHAPTER 9, SECTION 960 AND CHAPTER 10,
SECTION 1070 OF THE CORCORAN CITY CODE RELATED TO FINANCIAL GUARANTEES
(CITY FILE 18-025)
SECTION 1. Amendment of the City Code. The text of Section 950.020, Subd. 2 "Erosion
Control Measures (Subdivision Ordinance) of the Corcoran City Code is hereby amended by
deleting the material and adding the underlined material as follows:
Financial Guarantee:
A financial guarantee toy
960.050 of the City Code
0
ide a financi
ee in accor
ith S e cti o
in an amount determined
adequate by the City to guarantee compliance with erosion control measures shall
be furnished before work is commenced. The financial guarantee shall remain in
place until all the subdividers obligations
satisfied
under the erosion control plan have been
SECTION 2. Amendment of the Cit i�Code. The text of Section 960.050 "Financial Guarantee"
(Subdivision Ordinance) of the Corcoran City Code is hereby amended by deleting the ��^i-oke-n
material and adding the underlined material as follows.
960.050 -FINANCIAL GUARANTEES.
Subsequent to execution of the development contract but prior to the release of a
signed final plat mylar for recording, the subdivider shall provide the City with a
financial guarantee in the form of a per erma bon - -letter of credit from a bank or;
cash escrow
. ,
\,A%..,Jl►J lll. YY 1%.11 � \.11v it:. The guarantee shall be in an amount equal to 100 percent of
the estimated cost of completion of the specified basic improvements. The issuer of the
letter of credit or the escrow agent, as applicable, shall be acceptable to the City.
Subd.1. Letter of Credit. If the subdivider posts a letter of credit as a guarantee,
the credit shalll) be irrevocable, 2) be from a bank approved by the City,
3) be in a form approved by the City, 4) be for a term sufficient to cover
the completion, maintenance and warranty periods identified in this
Section and 5) require only that the City present the credit with a sight
draft and an affidavit signed by the City Administrator or the
Administrator's designee attesting to the City's right to draw funds under
the credit.
Subd. 2. Cash Escrow. If the subdivider posts a cash escrow as a guarantee, the
escrow instructions approved by the City shall provide that 1) the
subdivider will have no right to a return of any of the funds except as
provided in Section 960.060, and 2) the escrow agent shall have a legal
duty to deliver the funds to the City whenever the City Administrator or
the Administrator's designee presents an affidavit to the agent attesting
to the City's right to receive funds whether or not the subdivider protests
that right.
Subd. 3. Cash. A cash deposit made with the City may be used as part of the
required financial guarantee in those instances where the subdivider
elects to have the City install some or all of the public improvements.
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SECTICJN 3. Amendment of the City Code. The text of Section 1040.140, Subd. 10 "Planned
Unit Development" (Zoning Ordinance) of the Corcoran City Code is hereby amended by
deleting the sfr*ak material and adding the underlined material as follows:
Subd. 10. Performance Guarantees
A. The City Council shall require the owner and developer of a PUD to
execute a development agreement which may include, but not be limited
to, the approved development plan, conditions of approval, association
and maintenance agreements, and a time table for construction.
B. The City Council shall require an applicant for PUD
rezoning/development plan to rnci- n Y,or�nrm��,�o �,nr� nr irrotn����o
C
',rtw'r� h o C%�A II %wXj 7 ILC' %a�rIL provide a financial guarantee in
nce with Section 1070.050 of this Chapter to ,insure that the
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development will be executed in performance with the approved final
PUD development plan.
SECTION 1 of the City Code. The text of Section 1070.050 Subd. 9(B) "Financial
Guarantee" (Zoning Ordinance) of the Corcoran City Code is hereby amended by deleting the
+" material and adding the underlined material as follows:
P. Financial Guarantee.
Financial guarantees acceptable to the City include ��; cash escrow
or; an Irrevocable Letter of Credit; r�orfnrm -,r �o h"n d; or of h or
2. The financial guarantee shall be for 3�100 percent of the estimated
costs of improvements, as approved by the City Engineer
SECTION 5. Effective Date. This Ordinance shall be in full force and effect upon its passage.
VOTING AYE
® Thomas, Ron
® Bottema, Jon
❑ Dejewski, Brian
® Keefe, M i ke
® Schultz, Alan
VOTING NAY
❑ Thomas, Ron
❑ Bottema, Jon
❑ Dejewski, Brian
❑ Keefe, Mike
❑ Schultz, Alan
Whereupon, said Resolution is hereby declared adopted on this 13t" day of September
2018.
ATTEST:
ssica
Ron Thomas -Mayor
eise —City Clerk/Administrative Services Coordinator
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City Seal