San Marcos Development Code 9.1.2020

3 C H A P T E R

Subdivisions

E. A performance bond submitted to the City by a surety company holding a license to do business in the State of Texas and providing a date for completion of the required public improvements. Section 3.4.2.4Amount and Acceptability The security shall be issued in the amount of one hundred twenty five (125%) percent of the cost estimate approved by the Responsible Official for all public improvements associated with the subdivision. The security shall be subject to the approval of the City Attorney. Section 3.4.2.5Security for Construction in Extraterritorial Jurisdiction Where the land to be platted lies within the extraterritorial jurisdiction of the City, the security shall be in a form and contain such terms as are consistent with the interlocal agreement between the City and the county in which the land is located. In cases where the requirements governing the form and terms of the security are defined in such an agreement, they shall supersede any conflicting provisions of this code. Section 3.4.2.6Partial Release If, in the opinion of the Responsible Official, the public improvements have commenced in good faith, a partial release for construction may be issued. A lot must have permanent street access installed to it prior to this release. Section 3.4.2.7Remedies In addition to all other remedies authorized where a subdivision improvement agreement has been executed and security has been posted and required public Improvements have not been installed in accordance with the terms of the agreement, the City may: A. Declare the agreement to be in default and require that all the public Improvements be installed regardless of the extent of completion of the development at the time the agreement is declared to be in default; B. Obtain funds under the security instrument provided and complete the improvements itself or through a third party; or C. Assign its right to receive funds under the security instrument to any third party, including a subsequent owner of the development, in exchange for the subsequent owner’s

5. Provisions for securing the obligations of the agreement consistent with Section 3.4.3.1 below; and 6. Such other terms and conditions as are agreed to by the property owner and City, or as may be required by this Development Code. Section 3.4.2.2Covenants to Run with the Land The subdivision improvement agreement shall provide that the covenants contained in the agreement run with the land and bind all successors, heirs and assignees of the property owner. All existing lienholders shall be required to execute the agreement or provide written consent to the covenants contained in the agreement. The City shall deliver a release to bona fide third party purchasers of individual lots when all required public improvements have been accepted by the City. Section 3.4.2.3Security For Completion of Improvements Whenever the obligation to install public improvements to serve a subdivision or development is deferred until after recordation of the final subdivision plat or final development plat, the property owner shall provide sufficient security to ensure completion of the required public improvements. The security shall be in the form of one of the following: B. An irrevocable letter of credit drawn upon a state or national bank that has a regular business office in the State of Texas that (A) is of a term sufficient to cover the completion, maintenance and warranty periods, but not less than two years and (B) authorizes the City to draw upon the letter of credit by presenting to the issuer only a sight draft and a certificate signed by an authorized representative of the City attesting to the City’s right to draw funds under the letter of credit; C. A construction funding agreement under which funds for the construction of the required improvements are escrowed in Texas with an office of a state or national bank, under which (A) the City has the irrevocable right to withdraw funds, and (B) the subdivider may be permitted to draw funds to make payments towards the construction of the improvements as progress is verified; A. A cash escrow with the City;

D. A first and prior lien on the property;

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San Marcos Development Code Amended: September 1, 2020