(A) Provisions. Prior to the approval of the preliminary plat by the Planning Board, the subdivider shall provide for provision of either the installation of or the guarantee of the improvements required by the approval of the preliminary plat. The provision of the installation of required improvements, or the guarantee of the required improvements, may consist of a portion of a final plat. Upon the approval of the preliminary plat, the subdivider may proceed with the preparation of the final plat. Prior to approval of a final plat, the subdivider may install the required improvements or extend the guarantees for the required improvements, at the option of the village, for a time period acceptable to the village.
(B) Improvements guarantees.
(1) Agreement and security required. In lieu of requiring the completion, installation and dedication of all improvements prior to preliminary plat approval, the village may, at the village’s option, enter into an agreement with the subdivider, whereby the subdivider shall agree to complete all required improvements as specified on the approved preliminary plat for that portion of the subdivision to be shown on the preliminary plat within a reasonable time, to be determined in the agreement. Once the agreement is signed by both parties and security required herein is provided, the preliminary plat may be approved by the Planning Board provided it meets with the requirements of § 154.045. To secure this agreement, the subdivider shall provide, subject to the approval of the Planning Board, either 1 or a combination of the following guarantees not less than 1-1/2 times the entire cost as provided herein:
(a) Surety performance bond(s). The subdivider shall obtain a performance bond(s) from a surety bonding company authorized to do business in North Carolina. The bond(s) shall be payable to Chimney Rock Village and shall be in an amount not less than 1-1/2 times the entire cost, as estimated by the subdivider and approved by the Zoning Administrator, or his or her designee, of installing all required improvements as specified for that portion of the subdivision to be shown on the preliminary plat. The duration of the bond(s) shall be until the time as the improvements are approved by the Planning Board. The Planning Board shall not give the approval until it has been satisfied that all required improvements have been installed as specified for that portion of the subdivision to be shown on the preliminary plat.
(b) Cash or equivalent security. The subdivider shall deposit cash or other instruments readily convertible into cash at face value, either with the village or in escrow with a financial institution designated as an official depository of the village. The use of any instrument other than cash shall be subject to the approval of the Planning Board. The amount of deposit shall be not less than 1-1/2 times the cost, as estimated by the subdivider and approved by the Zoning Administrator, or his or her designee, of installing all required improvements as specified for that portion of the subdivision to be shown on the preliminary plat. If the cash or other instrument is deposited in escrow with a financial institution as provided above, then the subdivider shall file with the Planning Board an agreement between the financial institution and himself or herself guaranteeing the following:
1. That the escrow account shall be held in trust until released by the Planning Board and may not be used or pledged by the subdivider in any other matter during the term of the escrow; and
2. That in the case of a failure on the part of the subdivider to complete the improvements, the financial institution shall, upon notification by the Planning Board, immediately either pay to the village all funds in the account, or deliver to the village any other instruments fully endorsed or otherwise made payable in full to the village.
(2) Default. Upon default, meaning failure on the part of the subdivider to complete, within the time period specified in the agreement in division (B)(1) above, the required improvements for that portion of the subdivision to be shown on the preliminary plat, then the Planning Board may require the subdivider, the surety, or the financial institution holding the escrow account to pay all or a portion of the bond or escrow account to the village. Upon payment, the village shall expend the portion of the funds as it deems necessary to complete all or any portion of the required improvements. A shortage of funds shall constitute a lien on the property.
(3) Release of guarantee security. The Planning Board may release a portion of any security posted as the improvements are completed and recommended for approval by the Zoning Administrator. Within 32 days after receiving the Zoning Administrator's recommendation, the Planning Board shall approve or not approve the improvements. At the time the Planning Board approves all improvements placed in the subdivision, then all security posted shall be immediately released.
(4) Inspections. The developer may be required to obtain an inspection of each individual lot by the appropriate health official as to the suitability of each lot or the installation and use of a septic tank. However, if individual inspections are not made prior to the recordation of the plat, the recorded plat shall so reflect. Further, if individual inspections are not made as to the suitability of a lot for septic tank and/or individual well use, then in the event the developer must fully disclose this to the consumer and obtain a signed acknowledgment indicating 1 or the following:
(a) That the purchaser of the lot has been advised that no individual inspections of the subject lot has been made regarding its suitability, or lack thereof, for individual septic tank and/or well;
(b) The consumer accepts the lot “as is” with no further recourse against the developer or any other party regarding the suitability of the lot for a septic tank and/or well; and
(c) The consumer accepts the lot subject to the consumer's right to have the lot tested as to its suitability for a septic tank, and if it is not suitable and a certification to that effect is obtained within 30 days of the date of this acknowledgment by the Rutherford County Health Department, the developer agrees to refund the purchase price within 30 days of the receipt of the certification.
(2002 Code, Art. VII, § 704) (Ord. passed 4-1-1985; Am. Ord. passed 10-18-2005; Am. Ord. passed 6-20-2006)