City of Fenton, MO
St. Louis County
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Table of Contents
Table of Contents
Editor's Note — Ordinance no. 3001 §1, adopted December 23, 2008, repealed title IV in its entirety. See editor's note at beginning of title IV.

Section 435.010 Escrow Procedures.

[Ord. No. 3001 §1, 12-23-2008]
A. 
Prior to approval of the final plat by the Planning and Zoning Commission Chairperson, the developer, contractor and/or owner of the property must certify that all required subdivision improvements are in place in accord with the approved plans. This certification shall be in the form that is acceptable to the City of Fenton.
B. 
Prior to the approval of the final plat the developer, contractor and/or owner of the property shall enter into an escrow agreement that is acceptable to the City and shall be in accord with provisions of this Section.
C. 
The escrow agreement shall be prepared and executed on forms furnished by the City and shall be submitted, reviewed and approved according to the procedures adopted by the Board of Aldermen. Every escrow agreement shall be approved by the Board of Aldermen.
1. 
Escrow guarantee. Every escrow agreement shall require that the developer, contractor and/or owner of the property to guarantee a specific amount of money with a bona fide escrow holder by either:
a. 
Depositing a said amount in lawful money of the United States of America with a bona fide escrow holder;
b. 
By issuing an irrevocable letter of credit under an acceptable deposit agreement with the City. This commitment shall be from a lending institution approved by the City and shall guarantee the availability and upon demand a sum of money which shall be stated in the approved escrow agreement; or
c. 
By posting a land subdivision bond to guarantee the construction of said subdivision improvements.
The City shall determine which monetary guarantee will be appropriate and acceptable.
2. 
Release of escrow funds. The escrowed funds shall be held in the escrow account and shall be released only by written authorization from the City's designated representative. The designated representative shall be approved by the Board of Aldermen and shall be stipulated in the escrow agreement. The method for approval for the release of the escrow funds shall be approved by the Board of Aldermen.
a. 
Any such authorization for release of escrow funds shall occur only upon receipt by the City of a written request from the developer, contractor and/or property owner and;
b. 
In no case shall the City's designated representative authorize the release of more than ninety-five percent (95%) of the amount held in an escrow account until all the improvements have been completed, approved by the City and accepted or approved by the Board of Aldermen.
c. 
Any escrow amount held by the City shall be released within thirty (30) days of completion of each category of improvement or utility work to be installed, minus a maximum retention of five percent (5%) which shall be released upon completion of all improvements and utility work. Any such work shall be deemed to be completed upon certification by the Board of Aldermen that the project is complete in accordance with the ordinances of the City of Fenton, including the filing of all documentation and certifications.
d. 
The release shall be deemed effective when the escrow funds are duly posted with United States Postal Service or other agreed upon delivery service or when the escrow funds are hand delivered to an authorized person or place as specified by the owner or developer.
e. 
If the City has not released the escrow funds within thirty (30) days after approval by the Board of Aldermen, the City shall pay the owner or developer, in addition to the escrow funds due, interest at the rate of one and one-half percent (1.5%) per month calculated from the expiration of the thirty (30) day period until the escrow funds have been released.
3. 
Term of the escrow guarantee.
a. 
The term of an escrow agreement shall not exceed two (2) years. The developer, contractor and/or owner of the property shall guarantee that all required utilities and improvements will be installed, constructed and completed within two (2) years from the date of the approval of the final plat.
b. 
At the end of the two (2) year period, the Board may extend the term of the escrow agreement for a period not to exceed one (1) additional year. In the event that the developer, contractor and/or owner of the property shall abandon the project or fail to complete the improvement within two (2) years from the date of the City's approval of final plat, whichever shall occur first, the City may complete or have completed the said improvements and the escrow holder shall disburse the escrow amount to the City as ordered and directed by the City.
c. 
In the event the escrow holder fails to remit the amount required within thirty (30) days after written request by the City, the Director shall recommend that the City Attorney take immediate action to secure the payment of the amount required.
d. 
In the event the term of the escrow agreement is not extended by the Board of Aldermen or the escrow holder fails to remit the amount required by the City, the City shall withhold all permits for any new dwelling with the subdivision or plat thereof until authorized by the Board of Aldermen.
4. 
Approval of escrow holder and audit. All escrow holders shall be approved by the City's Attorney. All escrow holders shall be subject to spot audits by the City. If the escrow holder fails to comply with any provision of the escrow agreement, the holder may be prohibited from acting as an escrow holder in the City for a period of two (2) years.
5. 
Slopes and waterway modifications.
a. 
For the purposes of this Chapter, "waterway" is defined as any natural swale, watercourse, creek or drainage area not otherwise regulated by ordinances of the City of Fenton.
b. 
"Slope" shall mean any hill, hillside, rise, change in the natural terrain having a change of two percent (2%) or more from the base grade of the subdivision.
c. 
In addition to escrow funds pursuant to the development of subdivision plats as required by the ordinances of the City, if upon review of the subdivision plat by the Planning and Zoning Commission and the Director so determine further escrow funds may be required to guarantee the completion of improvements and a creation of a maintenance guarantee for slopes and waterway modifications.
d. 
If a review of the site and the subdivision plat indicate that modification of an existing slope and/or waterway is required, then the Director shall reasonably determine the cost of such modification.
e. 
Upon determination of such cost for the guarantee of completion of such improvements and modifications, the developer, contractor and/or property owner shall establish an escrow sum with a bona fide escrow holder by either:
(1) 
Depositing a said amount in lawful money of the United States of America with a bona fide escrow holder;
(2) 
By issuing an irrevocable letter of credit under an acceptable deposit agreement with the City. This commitment shall be from a lending institution approved by the City and shall guarantee the availability and upon demand a sum of money which shall be stated in the approved escrow agreement; or
(3) 
By posting a land subdivision bond to guarantee the construction of such improvements to the land, completion and installation of the improvements to the slopes and waterways as shown on the approved improvements plans.
f. 
The City shall determine which monetary guarantee will be appropriate and acceptable.
g. 
The improvement and/or completion period shall be approved by the Board of Aldermen and shall not exceed three (3) years.
h. 
During this escrow period the developer, contractor and/or owner of the property shall maintain the slope and/or waterway modifications.
i. 
Should the slope and/or waterway modifications suffer from structure or maintenance deficiency in the opinion of the Director prior to the expiration of the escrow period, then the Director shall provide a written notice of such deficiencies to the developer, contractor and/or owner of the property.
j. 
Upon failure by the developer, contractor and/or owner to correct such structure or maintenance deficiency within forty-five (45) days of the date of written notice, the City may correct the structure or maintenance deficiency and draw against the escrow funds.
k. 
The escrow sum, letter of credit and/or bond hereby provided for in this Section shall be subject to all City ordinances pertaining to subdivision bonds and the release thereof.
6. 
Landscaping escrow guarantee. For the purpose of landscaping and related activities, the developer, contractor and/or owner of the property shall be required to deposit a reasonable escrow sum which shall be determined by the Director into an escrow account. Upon determination of such cost for the guarantee of completion of such landscaping, the developer, contractor and/or owner shall establish an escrow sum with a bona fide escrow holder by either:
a. 
Depositing a said amount in lawful money of the United States of America with a bona fide escrow holder;
b. 
By issuing an irrevocable letter of credit under an acceptable deposit agreement with the City. This commitment shall be from a lending institution approved by the City and shall guarantee the availability and upon demand a sum of money which shall be stated in the approved escrow agreement; or
c. 
By posting a land subdivision bond to guarantee the construction, installation and completion and of such landscaping as shown on the approved plans.
D. 
The City shall determine which monetary guarantee will be appropriate and acceptable.
E. 
The escrow sum, letter of credit and/or bond hereby provided for in this Section shall be subject to all City ordinances pertaining to subdivision bonds and the release thereof.