(a) If the applicant does not propose to construct the required public improvements or private streets prior to receiving certification of the final plat or approval of the site plan or zoning, the applicant shall execute financial guarantees and shall file such financial guarantees with the Village prior to approval of a zoning certificate or certification of a final plat. Such financial guarantee shall take any form allowed in this section.
(b) The financial guarantee shall cover one hundred twenty percent (120%) of the estimated costs to install the public improvements.
(c) The financial guarantee shall be an obligation for the faithful performance of any and all work and the construction and installation of all public improvements required to be done by the applicant, together with all engineering and inspection costs and fees incurred by the Village.
(d) Upon completion, inspection, and approval of the public improvements and release of the initial financial guarantee for construction, the applicant shall be required to execute a warranty and financial guarantee that shall remain in force for two(2)-years over the public improvement, as determined by the Village Administrator as part of the subdivider's agreement. If during that two (2)- year period any improvements in the subdivision should fail to perform in the designed manner or fail to retain an acceptable condition, the Village may use or allocate the financial guarantee to correct those deficiencies.
(e) When, in the judgment of the Zoning Administrator, public improvements have been completed in accordance with the improvement plans as approved by Village, Village Council shall, at the recommendation of the Zoning Administrator, accept such improvements and authorize the full or partial release of the financial guarantee.
(f) The terms of such financial guarantees shall be determined by the Village's legal counsel, with confirmation by the Zoning Administrator.
(g) Financial guarantees shall be made payable to the Village of Centerburg and shall be acceptable to the Zoning Administrator.
(h) Incomplete public improvements that the Zoning Administrator or Village's engineer determines will constitute a safety hazard or maintenance issue, or will prevent the effective functioning of the public improvements, shall be required to be completed prior to the approval of a final plat.
(i) Types of Financial Guarantees. The following are the types of financial guarantees allowed by the Village. The standards for each type of guarantee shall apply to any situation where a financial guarantee is required, regardless if it is related to a subdivision application or not.
(1) Irrevocable Letter of Credit. The following standards shall apply if an irrevocable letter of credit is utilized as a financial guarantee:
A. The applicant shall provide an irrevocable letter of credit from a bank or other reputable institution or individual, subject to the approval of the Village's legal counsel and Village Administrator.
B. The letter shall be deposited with the Village, and shall certify the following:
i. The creditor guarantees funds in an amount equal to the cost, as estimated in accordance with this section, for completion all required public improvements.
ii. In the case of failure on the part of the applicant to complete the specified public improvements within the required time period, the creditor shall pay to the Village immediately and without further action such funds as are necessary to finance the completion of those public improvements, up to the limit of credit stated in the letter.
iii. This irrevocable letter of credit may not be withdrawn or reduced in amount until released by the Village Administrator in accordance with this chapter.
(2) Certified Check, Wire Transfer, Escrow, or Cash Deposit. The following standards shall apply if cash is utilized as a financial guarantee:
A. The applicant shall provide a certified check, wire transfer, escrow to a third-party escrow account, or cash deposit for the amount of the guarantee, payable to the Village of Centerburg.
B. If a third-party escrow account is to be established, the account shall be with a bank approved by the Village's legal counsel and shall be in an account set up for the sole ownership of the Village.
C. When the public improvements are complete, the Village shall issue a check for the amount released based on this subsection.
D. The Village shall not be responsible for paying interest for the period of time the Village retains the guarantee.
(3) Bonds. The following standards shall apply if a bond is utilized as a financial guarantee:
A. A bond in the amount determined in accordance with this section shall be filed with the Village of Centerburg.
B. The bond may be in the form of a surety bond or a cash bond of the kind approved by law for securing deposits of public money.
C. The bond shall be executed by the applicant as principal, and if a surety bond, shall be executed by a corporation authorized to act as a surety under the laws of the State of Ohio.
D. The bond shall provide that it cannot be terminated or canceled without the approval of the Village, and shall remain in force until such improvements have been accepted by Village Council.
(Ord. 2023-16. Passed 6-5-23.)