450.140 Improvement Agreement Required.
A. No final plat shall be approved unless the City has received adequate assurances that the subdivider or partitioner has agreed to make all public improvements which are required as conditions of approval of the tentative plan, including, but not limited to streets, alleys, pedestrian ways, and storm drainage, sewer and water systems. The following constitute acceptable adequate assurances:
(1) Certification by the City Engineer that all required improvements, both public and private, are completed and accepted by the City Council, and a maintenance agreement and guarantee have been executed pursuant to Section 450.155 of this Code; or
(2) An executed improvement agreement between the City and the developer, executed and filed with the City, requiring the developer to complete all required improvements within one (1) year of the approval of the tentative plan. The agreement shall also provide for reimbursement of the City for the cost of inspection by the City. The agreement shall include a performance guarantee as set forth in Section 450.150, and an agreement to file a one year maintenance agreement and performance guarantee as set forth in Section 450.155. The agreement may be continued for an additional one (1) year period, provided that the performance guarantee is modified to reflect any changes in the cost of construction. The agreement shall state that, should all improvements not be completed within the term of the agreement or its extension, the City shall estimate the cost of completing the work, call upon the performance guarantee as necessary to cover the cost, and complete the improvement from funds collected under the performance guarantee. If the funds collected under the performance guarantee are insufficient to install the required improvements, the City may:
(a) Hold the collected funds until additional funds are authorized for the improvement;
(b) Expend the funds on a revised improvement or on a portion of the improvement as determined to be reasonable by the City Engineer; or
(c) Complete the project. Upon completion, the excess amount due to the City, plus a 10% administrative charge, shall become a lien on the real property subject to the performance agreement. The lien shall attach upon entry in the City lien docket and the giving of notice of the claim for the amount due for the completion of the project pursuant to the performance agreement. The notice shall demand the amount due, allege the insufficiency of the bond or other security to compensate the City fully for the cost of the fulfillment of the obligation, and allege the applicant's failure to complete the public improvements as required by the improvement agreement. The lien may be foreclosed in the manner prescribed in ORS Chapter 223 for foreclosing liens on real property.
B. If a developer has begun construction pursuant to the tentative plan but fails to submit the final plat for approval within one year of approval of the tentative plan as required by Section 450.050(A) of this Code, the City may require execution of an improvement agreement and performance guarantee pursuant to Subsection A(2) of this section as a condition of granting an extension of time pursuant to Section 450.050(B).