89.410. Regulations governing subdivision of land, limitations, contents--public hearing--escrow funds, when released.

Regulations governing subdivision of land, limitations,contents--public hearing--escrow funds, when released.

89.410. 1. The planning commission shall recommend and the councilmay by ordinance adopt regulations governing the subdivision of land withinits jurisdiction. The regulations, in addition to the requirementsprovided by law for the approval of plats, may provide requirements for thecoordinated development of the city, town or village; for the coordinationof streets within subdivisions with other existing or planned streets orwith other features of the city plan or official map of the city, town orvillage; for adequate open spaces for traffic, recreation, light and air;and for a distribution of population and traffic; provided that, the city,town or village may only impose requirements for the posting of bonds,letters of credit or escrows for subdivision-related improvements asprovided for in subsections 2 to 5 of this section.

2. The regulation may include requirements as to the extent and themanner in which the streets of the subdivision or any designated portionsthereto shall be graded and improved as well as including requirements asto the extent and manner of the installation of all utility facilities.Compliance with all of these requirements is a condition precedent to theapproval of the plat. The regulations or practice of the council mayprovide for the tentative approval of the plat previous to the improvementsand utility installations; but any tentative approval shall not be enteredon the plat. The regulations may provide that, in lieu of the completionof the work and installations previous to the final approval of a plat, thecouncil shall accept, at the option of the developer, an escrow securedwith cash or an irrevocable letter of credit deposited with the city, town,or village. The city, town, or village may accept a surety bond, and suchbond shall be in an amount and with surety and other reasonable conditions,providing for and securing the actual construction and installation of theimprovements and utilities within a period specified by the council andexpressed in the bond. The release of any such escrow, letter of credit,or bond by the city, town or village shall be as specified in this section.The council may enforce the escrow or bond by all appropriate legal andequitable remedies. The regulations may provide, in lieu of the completionof the work and installations previous to the final approval of a plat, foran assessment or other method whereby the council is put in an assuredposition to do the work and make the installations at the cost of theowners of the property within the subdivision. The regulations may providefor the dedication, reservation or acquisition of lands and open spacesnecessary for public uses indicated on the city plan and for appropriatemeans of providing for the compensation, including reasonable chargesagainst the subdivision, if any, and over a period of time and in a manneras is in the public interest.

3. The regulations shall provide that in the event a developer whohas posted an escrow, or letter of credit, or bond with a city, town, orvillage in accordance with subsection 2 of this section transfers title ofthe subdivision property prior to full release of the escrow, letter ofcredit, or bond, the municipality shall accept a replacement escrow orletter of credit from the successor developer in the form allowed insubsection 2 of this section and in the amount of the escrow or letter ofcredit held by the city, town, or village at the time of the propertytransfer, and upon receipt of the replacement escrow or letter of credit,the city, town, or village shall release the original escrow or letter ofcredit in full and release the prior developer from all further obligationswith respect to the subdivision improvements if the successor developerassumes all of the outstanding obligations of the previous developer. Thecity, town, or village may accept a surety bond from the successordeveloper in the form allowed in subsection 2 of this section and in theamount of the bond held by the city, town, or village at the time of theproperty transfer, and upon receipt of the replacement bond, the city,town, or village shall release the original bond in full, and release theprior developer from all further obligations with respect to thesubdivision improvements.

4. The regulations shall provide that any escrow or bond amount heldby the city, town or village to secure actual construction and installationon each component of the improvements or utilities shall be released withinthirty days of completion of each category of improvement or utility workto be installed, minus a maximum retention of five percent which shall bereleased upon completion of all improvements and utility work. The city,town, or village shall inspect each category of improvement or utility workwithin twenty business days after a request for such inspection. Any suchcategory of improvement or utility work shall be deemed to be completedupon certification by the city, town or village that the project iscomplete in accordance with the ordinance of the city, town or villageincluding the filing of all documentation and certifications required bythe city, town or village, in complete and acceptable form. The releaseshall be deemed effective when the escrow funds or bond amount are dulyposted with the United States Postal Service or other agreed-upon deliveryservice or when the escrow funds or bond amount are hand delivered to anauthorized person or place as specified by the owner or developer.

5. If the city, town or village has not released the escrow funds orbond amount within thirty days as provided in this section or provided atimely inspection of the improvements or utility work after request forsuch inspection, the city, town or village shall pay the owner or developerin addition to the escrow funds due the owner or developer, interest at therate of one and one-half percent per month calculated from the expirationof the thirty-day period until the escrow funds or bond amount have beenreleased. Any owner or developer aggrieved by the city's, town's orvillage's failure to observe the requirements of this section may bring acivil action to enforce the provisions of this section. In any civilaction or part of a civil action brought pursuant to this section, thecourt may award the prevailing party or the city, town or village theamount of all costs attributable to the action, including reasonableattorneys' fees.

6. Nothing in this section shall apply to performance, maintenanceand payment bonds required by cities, towns or villages.

7. Before adoption of its subdivision regulations or any amendmentthereof, a duly advertised public hearing thereon shall be held by thecouncil.

8. The provisions of subsection 2 of this section requiring theacceptance of an escrow secured by cash or an irrevocable letter of credit,rather than a surety bond, at the option of the developer, all of theprovisions of subsection 3 of this section, and the provisions ofsubsections 4 and 5 of this section regarding an inspection of improvementsor utility work within twenty business days shall not apply to any homerule city with more than four hundred thousand inhabitants and located inmore than one county.

9. Notwithstanding the provisions of section 290.210, RSMo, to thecontrary, improvements secured by escrow, letter of credit, or bond asprovided in this section shall not be subject to the terms of sections290.210 to 290.340, RSMo, unless they are paid for wholly or in part out ofpublic funds.

(L. 1963 p. 146 § 12, A.L. 1999 S.B. 20, A.L. 2004 H.B. 795, et al.)