San Marcos Development Code Effective 10.17.23

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Subdivisions

C. The plans conform to the environmental standards, development standards, and standards for adequate public facilities contained in this Development Code; and D. The plans conform to the specifications contained in the City’s adopted technical manuals, standards and guidelines. Section 3.4.1.5 Expiration A. Expiration. Public improvement construction plans shall expire two years from the date of approval if no progress has been made towards completion of the project as defined by the Texas Local Government Code Chapter 245. Whenever public improvements to serve the development are deferred until after final subdivision plat or final development plat recordation, the property owner shall enter into a subdivision improvement agreement by which the owner covenants to complete all required public improvements, including residential lot improvements for drainage or erosion control, and common area or parkland improvements, no later than two years following the date upon which the final subdivision plat or final development plat is approved and recorded. The agreement shall be subject to review and approval by the City Attorney, and shall be approved and executed by the City Manager with approval of the final subdivision plat or final development plat. Upon execution, the agreement shall be filed in the applicable county of record and shall contain the following provisions: 2. Covenants to warranty the improvements for a period of one year following acceptance by the City; 3. Covenants to provide security in a form authorized under Section 3.4.2.3 for maintenance in the amount of twenty (20) percent of the costs of the improvements for such period; 4. Provisions for participation in the costs of the improvements by the City, if authorization has been obtained from the City Council, and a performance bond for such improvements from the contractor, with the City as a co-obligee; Division 2: SUBDIVISION IMPROVEMENT AGREEMENT Section 3.4.2.1 Obligations under Agreement 1. Covenants to complete the improvements;

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 3.4.2.2 Covenants 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 3.4.2.3 Security 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: October 17, 2023