(A) General: In order to assure that growth in the Village will be orderly and to further provide for the installation of all required improvements, public or private, in newly developed areas, no final plat shall be recorded until the requirements of this Section have been met.
(B) Performance Guarantee for Subdivision Within the Village Limits: Before recording of an approved final plat, a performance guarantee acceptable to the Village must be provided as required herein. One of the following options for guarantee of improvement completion shall be utilized:
1. Cash Escrow:
a. Establishing Account: An escrow account in the amount required shall be established with a financial institution located in Illinois (hereinafter referred to as the escrowee) which meets the approval of the Board of Trustees. The account shall be administered by the escrowee in accordance with the provisions of the escrow agreement to be negotiated by the Board of Trustees and the owner, developer and/or subdivider and approved by the Village Attorney or Special Counsel. Such agreement shall contain provisions for specific application of such funds; partial contract payouts; contract retention percentages until completion; prorate reduction of deposit excess; final escrow settlement; and other pertinent administrative matters as may be required.
b. Fund Disbursement: The escrowee shall disburse funds from time to time for the purposes provided upon presentation of, and in accordance with, payout orders issued by the owner's engineer and approved by the Village Engineer. Such disbursements shall not be subject to approval or disapproval by the owner or escrowee or their agents other than said owner's engineer; however, for accounting purposes, the Village shall send to the owner a copy of the approved engineer's estimate for payment at time of Village approval. Each payout order shall be accompanied by all appropriate sworn statements, affidavits and supporting waivers of lien in full compliance with the Illinois Mechanics Lien Law.
c. Excess Fund Balance: If, at any time, the Village Engineer shall notify escrowee in writing that the balance of funds then remaining undisbursed under said escrow account is more than sufficient to cover the cost of construction fees and maintenance hereinabove provided, which said notice shall specify the reduced balance then deemed sufficient, and if escrowee shall concur in such determination, escrowee shall pay over to the owner any excess of funds over such reduced balance then remaining undisbursed under said escrow account.
2. Letter of Credit: The applicant or owner may file a straight, commercial letter of credit from any financial institution located in Illinois acceptable to the Board of Trustees and the Village Attorney or Special Counsel in a form acceptable to the Village Attorney or Special Counsel. The letter of credit shall be in an amount, determined by the Village Engineer, sufficient to pay for the cost of construction of the improvements and all engineering costs including the engineering and inspection fees of the Village. The letter of credit must provide that the issuing financial institution shall pay to the Village, or as the Village directs, such amounts as may be required to complete the improvements according to the approved plans and specifications. The letter of credit should provide that its amount will be reduced from time to time as payments for improvements approved by the Village Engineer are made; however, no such reduction shall be approved by the Village Engineer unless the request is in writing and accompanied by lien waivers deemed adequate by the Village Engineer. The letter of credit shall be irrevocable for at least six (6) months and must provide that if any balance remains at the expiration of any time limit placed on it, said balance shall be deposited with the Village in a cash escrow or a new letter of credit in the amount of the unpaid balance will be issued or a surety bond as prescribed in subsection 6-5-1(B)3 will be provided. The letter of credit shall also provide that ten percent (10%) of the amount shall be retained until the Village Engineer has approved the improvements required by this Title.
3. Surety Bond:
a. Form: The bond shall be in a form and with a bonding company meeting with the approval of the Village Attorney or Special Counsel.
b. Time Limit: The bond shall be payable to the Village and be enforceable by same on or beyond a date thirty-six (36) months from the date of final plat approval.
c. Release of any bond required herein shall be conditioned on final approval or acceptance of the improvements by the Board of Trustees of the Village.
4. Insufficient Fund Balance: If, at any time before the construction of all required improvements has been completed, the balance of funds remaining undisbursed under said escrow account or letter of credit is not sufficient, in the sole judgment of the Village Engineer, to cover the cost of construction of said improvements and all engineering costs including the engineering and inspection fees of the Village or if by reason of any order, decree or writ of any court, or for any other reason, the said undisbursed balance of funds shall be withheld, diminished or otherwise unavailable for the purposes provided herein, the owner agrees to cause the balance to be increased to such amount as shall be required by the Village for such purposes, in the exercise of its judgment, or shall provide such other guarantee of performance as may be required by the Village.
(C) Performance Guarantee for Subdivisions Outside the Village Limits: Option 1, 2 or 3 above will not be required by the Village for a subdivision or that part of a subdivision which is located outside of the corporate limits of the Village, if one of the above options has been filed with the county or counties in which said subdivision is located.
(D) Time Limit: All performance guarantees shall provide that if required improvements are not installed within two (2) years of the date of recording of the final plat, the Village may deem the subdivider in default and proceed in accordance with the provisions of Section 6-5-2. (Ord. 93-5, 5-24-93)