2007-07-11 CC - Laserfiche WebLink

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of proof to the City that work has been satisfactorily completed and financial obligations to the City and Developer's contractors have been satisfied, with City approval the Security may be reduced from time to time by ninety percent (90%) of the financial obligations that have been satisfied, except in no event shall the security be reduced to an amount lower than the outstanding special assessments on the property in the development Ten percent (10%) of the Security shall be retained until all Public Improvements have been completed, all obligations to the City satisfied, and the required "as constructed" plans have been accepted by the City. The City must approve or deny a request for reduction in the Security within twenty-one (21) days after receipt of proof satisfactory to the City as provided above. 20. CLAIMS. In the event that the City receives claims from laborers, materialmen, or others that work or materials have been provided subject to this Agreement for Developer whereby sums due them have not been paid, and the laborers, materialmen, or others are seeking payment from the City, the Developer hereby authorizes the City to commence an Interpleader action pursuant to Rule 22, Minnesota Rules of Civil Procedure. The Developer authorizes the City to draw upon the Security and Additional Security in an amount up to 125% of the claim(s) and deposit the funds in compliance with the Rule. Upon such deposit, the Developer shall assume responsibility for the claims, release the City from liability for the claims and authorize the Court to dismiss with prejudice the City from any further proceedings as it pertains to the claims, or the Security or Additional Security deposited with the District Court, except that the Court shall retain jurisdiction to determine the City's attorneys' fees pursuant to this Agreement. Nothing in this paragraph shall diminish the Developer's duty to indemnify the City as stated elsewhere in this Agreement. 21. SPECIAL PROVISIONS. The following special provisions shall apply to plat development: HanzaI Development Agreement v8 11