§ 12.6.2. Guarantee of public improvements.

A.

Purpose. Guarantees that all public improvements required to serve projects approved under this Code are completed according to approved plans without public expense.

B.

Applicability. A guarantee of public improvements is required for all development agreements.

C.

Collateral amount. Collateral submitted to guarantee the completion of improvements must be in an amount equal to of 115 percent of the estimated cost of improvements specified in the development agreement.

D.

Types of collateral. The county will accept the following types of collateral:

1.

Irrevocable letter of credit from a state or federally licensed financial institution on a form approved by the county that states at least the following:

a.

The amount of the letter of credit is equal to at least 115 percent of the estimated cost of the improvements;

b.

The letter of credit is payable to the county upon demand if the applicant fails to perform the obligations specified in the development agreement and the county has notified the issuer of the letter of credit of the failure to perform;

c.

At all times the unreleased portion of the letter of credit is equal to at least 115 percent of the estimated costs of the uncompleted portions of the required improvements;

d.

Fifteen percent of the total amount will remain available to the county until released by the county; [and]

e.

The date of expiration, which must coincide with the timetable specified in the development agreement but stipulate that in no event can the letter of credit expire until the county has received 60 days' written notice of the pending expiration. The notice must be sent by certified mail to the planning director.

2.

An escrow agreement that provides at least the following:

a.

Cash in escrow is equal to at least 115 percent of the estimated cost of the improvements;

b.

The escrowed funds will be used only for improvements specified in the development agreement. The escrow agent will not release any portion of the escrowed funds without prior approval;

c.

The escrow agent is a federal- or state-licensed financial institution; [and]

d.

The escrowed funds will be released to the county upon demand, if the applicant fails to perform the obligations specified in the development agreement and the county has notified the escrow agent of the failure to perform.

3.

A cash deposit made with county commissioners equal to 115 percent of the estimated costs of improvements.