(A) General requirements. The Board of Trustees shall not approve any final plat of subdivision (and, hence, said final plat shall not be entitled to recording) until:
(1) All improvements required in the approved improvements plan have been completed by the subdivider/developer at his or her expense, inspected by the Municipal Engineer, and dedicated to the village or other appropriate entity; or
(2) In accordance with the divisions below, the subdivider/developer has provided the village with legal assurance to guarantee the satisfactory completion and dedication of all required improvements.
(B) Forms of assurance. At the option of the Board of Trustees, the required legal assurance may be either a performance bond or an escrow deposit. Every performance bond shall be reviewed by the Municipal Attorney, and posted with the Municipal Clerk. Any funds to be held in escrow shall be deposited in a special account to be titled in the name of the village and the subdivider/developer.
(C) Amount of bond or deposit. The amount of the performance bond or escrow deposit shall be equal to 125% of the Municipal Engineer’s estimate of the costs of constructing the uncompleted portion of the required improvements plus all required inspection fees. Any escrow deposit may be in the form of:
(1) Cash;
(2) An irrevocable letter of credit or commitment from a lending institution guaranteeing to the village the availability of the escrow funds from time to time upon demand; or
(3) Certificates of deposit, treasury bills, or other readily negotiable instruments approved by the Municipal Attorney, and made payable to the village.
(D) Eligible sureties. No person shall be eligible to act as surety unless he or she has been approved by the Municipal Attorney. The Attorney shall conduct or cause to be conducted spot audits of all sureties. Any surety who fails to perform shall be ineligible for two years thereafter to act as surety for any subdivision improvement within the village jurisdiction.
(E) Terms of assurance, extension. The initial term of any performance bond or escrow agreement shall not exceed two years. If all the required improvements have not been completed by the end of the two-year period, the administrator, with the advice and consent of the Board of Trustees, may either extend said bond/escrow agreement for one year only, or may proceed as per division (G) below.
(F) Release of bond/escrow deposit.
(1) The Municipal Clerk/Mayor of the Board may release up to 90% of the amount of the performance bond/escrow deposit upon receipt of written authorization from the Municipal Engineer. The amount which the Municipal Engineer authorizes to be released shall be equal to the value of improvements actually completed in accordance with approved plans.
(2) The balance of the amount of the performance bond/escrow deposit shall not be released until:
(a) The Municipal Engineer has certified to the administrator in writing that all required improvements have been satisfactorily completed; and
(b) Said improvements have been accepted by and dedicated to the village or other appropriate entity.
(G) Failure to complete improvements. If all the required improvements have not been completed by the end of the two-year period (or three-year period, in the case of an extension), the administrator, with the assistance of the Municipal Attorney, may:
(1) Require the surety to perform on the bond, and to pay to the village an amount equal to the cost of completing the required improvements (as estimated by the Municipal Engineer) or the amount of the bond not theretofore released, whichever is less;
(2) Order the Village Clerk to retain all escrowed funds needed to complete the required improvements and to return the balance (if any) of such funds to the subdivider/developer; or
(3) Require the subdivider/developer to submit a new performance bond/escrow deposit in an amount sufficient to cover any increase in the cost of constructing the required improvements.
(Prior Code, § 11-4-3) (Ord. 731, passed 7-1-2013)