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. . DEVELOPMENT AGREEMENT Street Addition to the City of Moscow Thip agreement is entered into this day of r, L , 1992, by and between Indian Hills Trading C (referred to as DEVELOPER) being developer of real property included in this agreement, and the City of Moscow, a Municipal Corporation of Idaho, (referred to as CITY) ; WITNESSETH: WHEREAS, DEVELOPERS own property within the City of Moscow described as the ' C' Street Addition to the City of Moscow; and WHEREAS, the CITY desires to ensure that all public improvements are properly installed by DEVELOPER; NOW THEREFORE, DEVELOPER and the CITY hereby agree and covenant as follows: I. PROPERTY AFFECTED: This agreement affects real property known as Street Addition to the City of Moscow, Latah County, Idaho. This property is described in the plat identified as ' Appendix A' which is attached and incorporated by this reference into this agreement. II. PUBLIC IMPROVEMENTS: The DEVELOPERS hereby agree to install, in said Street Addition, at their expense, all curbs, sidewalks, home drain system with the approved plans and to City standards during and under the terms of this agreement. All plans and drawings shall be approved by the City Engineer prior to beginning of any construction or improvements. DEVELOPERS also agree to pave street as required below. III. CITY' S COVENANT: CITY shall issue building permits on lots located within ' C' Street Addition after all public improvements have been constructed for the subdivision, or after adequate security has been provided to ensure proper construction of the required public improvements. IV. DEVELOPERS ' COVENANT : follows: The DEVELOPERS agree as A. DEVELOPERS shall construct curb, sidewalk, and house drain system in accordance with the approved plans and to City standards during and under the terms of this agreement. It is ---PAGE BREAK--- further agreed that Developers shall provide security for such improvements in accordance with this agreement as required below. B. DEVELOPERS shall also pay to CITY the cost for the paving of one half of Street for the distance that said subdivision fronts on said street, provided, that CITY may delay said street paving for a period of up to two ( 2) years from the issuance of the first building permit. It is agreed that DEVELOPERS shall provide security for such street paving in accordance with this agreement as required below. It is further agreed that if CITY does not commence the paving of Street within two ( 2 ) years from the date of issuance of the first building permit, DEVELOPERS' security shall be released or allowed to expire. c. Parkland Dedication. DEVELOPER agrees to pay a fee in lieu of parkland dedication in the amount of TWO THOUSAND FOUR HUNDRED EIGHTY DOLLARS ($2480.00) payable as follows : 1. $620. 00 upon approval of the plat; 2. $620.00 within one year from the date of approval of the plat; 3. $620. 00 within two years from the date of approval of the plat; and 4. $620.00 within three years from the date of approval of the plat. It is further agreed that the DEVELOPER shall pay interest on the outstanding balance owing of the original $2480.00 in the amount of seven percent 7% of the outstanding balance, per annum, until the balance is paid in full. D. If the DEVELOPER fails to complete all public improvements except for street paving within 90 calendar days of issuance of the first building permit, the parties agree that building permits will cease to be issued until the improvements are complete, and the CITY may utilize the security specified in paragraphs VI and VII to complete work on the improvements. It is further agreed that if street paving is commenced by the CITY within two ( 2 ) years from the date of the issuance of the first building permit, and DEVELOPERS refuse to pay for the same in accordance with this ---PAGE BREAK--- Agreement, the CITY may utilize the security specified in paragraphs VI and VII to pay for said street paving. v. TERM: This agreement shall remain in effect until all improvements are constructed and accepted by the CITY, and in no event shall the time period to construct these improvements exceed three years, unless said time period is extended by the CITY. VI. SECURITY FOR IMPROVEMENTS: The CITY agrees that upon receipt of the security described in paragraph VII it will issue building permits (upon payment of permit fees) for properties affected. If the DEVELOPER fails to complete construction of all of the improvements within the specified period of time after issuance of the first building permit specified in paragraph IV, the CITY may attach the security and cause the improvements to be made. Any engineering or construction costs in excess of the security shall be borne by the DEVELOPERS. Any additional construction services shall be let by bid, and subject to the laws of the State of Idaho relative to the letting of said bids. VII. FORM OF SECURITY: A. The DEVELOPERS agree to provide security in the amount of FIFTEEN THOUSAND FOUR HUNDRED FIFTEEN DOLLARS ($15,415.00) for public improvements as identified in paragraph IV.A. above; and, B. The DEVELOPERS agree to provide additional security in the amount of FOURTEEN THOUSAND ONE HUNDRED EIGHTY ONE DOLLARS AND SEVENTY FIVE CENTS ($14,181.75) for public improvements as identified in paragraph IV.B. above. Such security shall be in a separate form from the security required in paragraph VII.A., above. The security shall be in the form of a construction bond, irrevocable letter of credit from a certified bank or financial institution, or such other form of security acceptable by the City Attorney and the City Council prior to the issuance of building permits by the CITY. The security required pursuant to paragraph VII. above must be effective for a minimum period of one hundred and eighty (180) days from the issuance of the first building permit. The security required by paragraph VII.B., above must be effective for a minimum period of twenty-seven ---PAGE BREAK--- (27) months from the issuance of the first building permit. If this security is in the form of a letter of credit or bond, the secured improvements shall be constructed at least ninety (90) days prior to expiration date of the security. If not completed at that time, the CITY may claim security and utilize it to complete the improvements. The amount of the security may, from time to time, be modified as deemed appropriate by the City Engineer as conditions warrant. VIII. FAILURE TO COMPLY: If the DEVELOPERS fail to comply with the terms of this agreement, the CITY, after thirty ( 30) days written notice, may seek performance of the agreement and may attach the security to complete the improvements. The DEVELOPERS agree to pay all expenses incurred by the CITY in enforcing this agreement. IX. BINDING ON HEIRS, ASSIGNEES, AND PURCHASERS: This agreement shall be binding upon the heirs, assignees, and purchasers of the property. X. VENUE AND ATTORNEY'S FEES: The parties agree that should any prov1s1on of this agreement be litigated in the future, venue for such litigation shall be with the District Court of the State of Idaho in and for the County of Latah. The prevailing party in such action shall be awarded its reasonable costs and attorney's fees incurred in such litigation. XI. MODIFICATION: DEVELOPER and CITY agree that the provisions of this agreement may be modified only upon written request of the DEVELOPER accompanied by a complete set of development plans, and acceptance of such modification by the City Council. XII. COVENANTS TO RUN WITH LAND: This agreement shall run with the land affected hereby, as shall the covenants contained herein, and shall be to the benefit of the CITY and its successors and assigns. This development agreement shall be recorded with the Latah County recorder. ---PAGE BREAK--- XIII. NOTICES: Any notice required or called for by this agreement shall be deemed served upon the party to whom it is sent when delivered by certified or registered United States Mail to the following address: DEVELOPER: Indian Hills Trading Co. c/o Sally Powers Box 106 Ritzville, WN 99169 CITY: City of Moscow P.O. Box 9203 Moscow, ID 83843 IN WITNESS WHEREAS, the DEVELOPERS have executed this agreement to be effective the date first above written. DEVELOPER: CITY OF MOSCOW: Ela1ne Rusy Clerk ---PAGE BREAK--- BBANK, April 8, 1992 City of Moscow Gary Persal Director of Public Works P. 0. Box 9203 Moscow, Idaho 83843 RE: David D. and Sally N. Powers To Whom It May Concern: RITZVILLE BRANCH 101 EAST MAIN P.O. BOX 40B RITZVILLE, WASHINGTON 99169 . . . ' . . . . We hereby authorize you to dra_v on U. S. Bank of Washington, Ritzville Branch, 101 E. Main, Ritzville, WA 99169; for the account of David D. Powers and Sally N. Powers, P. 0. Box 106, Ritzville, WA 99169. Up to the aggregate amount of **Thirty-Thousand and no/100** available by your draft at sight accompanied by the following documents: The original of this letter of credit for endorsement. A statement signed by an authorized official of the City of Moscow as follows: "David D. Powers and Sally N. Powers have failed to perform or are in default of the Developement Agreement Street Addition to the City of Moscow and the areas of non-perfor mance have been communicated directly to David D. Powers and Sally N. Powers by the City of Moscow." Partial dr a`vings are permit ted. All drafts must be marked: DRAWN UNDER U.S. BANK OF WASHINGTON, RITZVILLE BRANCH, LETTER OF CREDIT. We hereby agree with drawers of drafts drawn under and in compliance with the terms of this credit that the same shall be duly honored on due presentation to the drawee. Barbara Manager BIW:bb . Wagner cc: David D. and Sally N. Powers U.S. Bank of Washington, National Association MEMBER FDIC A U.S. Bancorp Company