(A) Generally.
(1) Upon approval of the preliminary plat by the Board of Commissioners, the subdivider may proceed with the preparation of the final plat and the installation or arrangement for required improvements in accordance with the approved preliminary plat and the requirements of this chapter.
(2) Prior to approval of a final plat, the subdivider shall have installed improvements specified in this chapter; however, if the subdivider is confronted with adverse conditions or unusual circumstances which would likely be overcome if a delay in the installation of said improvements was permitted, which conditions and circumstances are found to exist by the Board of Commissioners, and, further, that it should appeal to the Board of Commissioners that a requested delay would serve the interests of the town and the subdivision, then the subdivider shall guarantee the installation of the specified improvements as provided below.
(B) Improvements guarantees.
(1) Agreement and security required.
(a) 1. In lieu of requiring the completion, installation, and dedication of all improvements prior to final plat approval, the town may enter into an agreement with the subdivider whereby the subdivider shall agree to complete all required improvements.
2. Once said agreement is signed by both parties and the security required herein is provided, the final plat may be approved by the Board of Commissioners.
(b) 1. To secure this agreement, the subdivider shall provide, subject to the approval of the Board of Commissioners, the following guarantees, not exceeding one and one-quarter times the entire cost of installing all required improvements as specified on the approved preliminary plat for that portion of the subdivision to be shown on the final plat.
2. The estimate of the cost of improvements shall be prepared by the subdivider and submitted to the Subdivision Administrator for approval.
3. The Board of Commissioners shall determine the method of improvements guarantees.
a. Cash or equivalent security. The subdivider shall deposit cash or other instrument readily convertible into cash at face value, either with the town or in escrow with a financial institution designated as an official depository of the town. The use of any instrument other than cash shall be subject to the approval of the Board of Commissioners.
b. Surety performance bond(s).
i. The subdivider shall obtain a performance bond(s) from a surety bonding company authorized to do business in the state.
2. The bond(s) shall be payable to the town.
3. The duration of the bond(s) shall be until such time as the improvements are approved by the Board of Commissioners, The Board of Commissioners shall not give said approval until it has been satisfied that all required improvements have been installed.
3. Letter of credit.
a. A satisfactory, irrevocable letter of credit as approved by the Town Attorney and Board of Commissioners, and deposited with the Town Clerk, shall be submitted.
b. When a letter of credit is submitted, the following information shall be contained in said letter:
i. Shall be entitled irrevocable letter of credit;
ii. Shall indicate that the town is the sole beneficiary;
iii. The amount (of the letter of credit) as approved by the town;
iv. Account number and/or credit number that drafts may be drawn on;
v. List of improvements that shall be built that the letter is guaranteeing;
terms in which the town may make drafts on the account; and
vi. Expiration date of the letter.
c. If cash or other instrument is deposited in escrow with a financial institution as provided above, then the subdivider shall file with the Board of Commissioners an agreement between the financial institution and himself or herself guaranteeing that the escrow account shall be held in trust until released by the Board of Commissioners and may not be used or pledged by the subdivider for any other matter during the term of escrow.
(2) Default.
(a) Upon default, meaning failure on the part of the subdivider to complete the required improvements, then the Board of Commissioners may require the subdivider or the financial institution holding the escrow account to pay all or any portion of the bond or escrow account fund to the town.
(b) Upon payment, the Board of Commissioners, in its discretion, may expend all or such portion of said funds, as it deems necessary to complete all or any portion of the required improvements.
(3) Release of guarantee security.
(a) The Board of Commissioners may release a portion of any security posted as the improvements are completed and recommended for approval by the Subdivision Administrator within 32 days after receiving the Subdivision Administrator’s recommendation, the Board of Commissioners shall approve or not approve said improvements.
(b) If the Board of Commissioners approves said improvements, then it shall immediately release any security posted.
(Ord. passed 7-17-1984)