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PERFORMANCE BOND IMPROVEMENT AGREEMENT THIS AGREEMENT, made and entered into this day of by and between the CITY OF KALISPELL, MONTANA, Party of the First Part and hereinafter referred to as the CITY, and a, (Owner/Developer) (individual, company, corporation) located (Owner/Developer Address) Party of the Second Part and hereinafter referred to as DEVELOPER. WITNESSETH: THAT WHEREAS, the Developer is the owner and / or developer of _ (Development Name) located at _ , and, (Development Address) WHEREAS, the City has conditioned the final approval of the aforementioned project upon the completion of improvements as cited in "Exhibit A" which have not been completed at this time. The Developer wishes to bond for the completion of those improvements set forth in "Exhibit and WHEREAS, the City will allow bonding for those improvement but will require that the Developer shall provide a financial security of 125% of the estimated total cost of construction of said improvements as evidenced by an estimate prepared by contractor, subcontractor or engineer included herewith as "Exhibit and WHEREAS, the estimated total cost of construction of said improvements is the sum of . (Value) NOW THEREFORE, in consideration of the final approval of the aforementioned project by the City, the Developer hereby agrees as follows: The Developer shall deposit as collateral with the City a Letter of Credit, or other acceptable collateral in the amount of . (Value x 1.25) Said Letter of Credit or other collateral shall have an expiration date of at least sixty (60) days following the date set for completion of the improvements, certifying the following: a. That the creditor guarantees funds in the sum of the estimated cost of (Value x 1.25) completing the required improvements at . (Development Address) b. That if the Developer fails to complete the specified improvements within the required period, the creditor will pay to the City immediately, and without further action, such funds as are necessary to finance the completion of those improvements up to the limited of credit stated in the letter. That said required improvements shall be fully completed by . (Date) ---PAGE BREAK--- That upon completion of the required improvements, the Developer shall cause to be filed with the City a statement certifying that: a. All required improvements are complete; b. That the improvements are in compliance with the minimum standards specified by the City for their construction. c. That the Developer knows of no defects in those improvements; d. That these improvements are free and clear of any encumbrances or liens; e. That a schedule of actual construction costs has been filed with the City; and, f. All applicable fees and surcharges have been paid. ALSO AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS, TO-WIT: That the Developer shall provide for inspection of all required improvements prior to release from this Agreement and that if the City determines that any improvements are not constructed in compliance with the specifications, it shall furnish the Developer with a list of specific deficiencies and may withhold collateral sufficient to ensure such compliance. If the City determines that the Developer will not construct any or all the improvements in accordance with the specifications, or within the required time limits, it may withdraw the collateral and employ such funds as may be necessary to construct the improvement or improvements in accordance with the specifications. The unused portions of the collateral shall be returned to the Developer or the crediting institution, as is appropriate. Signature (Name of Developer/Firm/Property Owner) ---PAGE BREAK--- EXHIBIT A This agreement specifically includes the following improvements, their projected construction completion date and estimated construction costs. Check appropriate improvement and estimated remaining costs: ESTIMATED COST Grading/Paving Other (City ROW grading and reclamation) Sidewalks Curbs and Gutters Sanitary Sewers Mains Other On-Site Sewage Facilities Water Systems Mains Other Fire Hydrants Storm Sewer or Drainage Facilities Street Signs Street Lighting Street Monuments Survey Monument Boxes Landscaping Other TOTAL COST TOTAL COLLATERAL (TOTALS COSTS X 125%)