(A) 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 as specified by the approved preliminary plat for that portion of the subdivision to be shown on the final plat within a mutually agreed upon specified time period.
(B) Once agreed upon by both parties and the security required herein is provided, the final plat may be approved by the Town Planning Board if all other requirements of this chapter are met.
(C) The Planning Board shall require a certified cost estimate from a licensed contractor or engineer for the cost of completion of the improvements.
(1) The subdivider shall provide one of the following performance guarantees in lieu of installation:
(a) Surety performance bond(s). The subdivider shall obtain a performance bond(s) from a surety bonding company authorized to do business in the state. The bond(s) shall be payable to the town, and shall be in an amount not to exceed one and one-fourth times the entire cost, as estimated by the subdivider in conjunction with the Planning Board, and approved by the Planning Board of installing all required improvements. The duration of the bond(s) shall be until such time as the improvements are accepted by the Planning Board or a default is declared; or
(b) Cash or equivalent security. The subdivider shall deposit cash, an irrevocable letter of credit, or other instrument readily convertible into cash at face value, either with the town or in a non-interest bearing escrow account 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 Planning Board. The amount of deposit shall not exceed one and one-fourth times the cost, as estimated by the subdivider in conjunction with the Planning Board or installing all required improvements. If 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. 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. 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 and submission by the Planning Board to the financial institution of an engineer's estimate of the amount needed to complete the improvements, immediately either pay to the town the funds estimated to complete the improvements, up to the full balance of the escrow account, or deliver to the county any other instruments fully endorsed or otherwise made payable to the county.
(2) Upon default, meaning failure on the part of the subdivider to complete the required improvements in a timely manner as spelled out in the performance bond or escrow agreement, then the surety, or the financial institution holding the escrow account shall, if requested by the town, pay all or any portion of the bond or escrow fund to the town up to the amount needed to complete the improvements based on an engineering estimate. Upon payment, the Planning Board, in its discretion, may expend the portion of the funds as it deems necessary to complete all or any portion of the required improvements. The town shall return to the subdivider any funds not spent in completing the improvements.
(3) The Planning Board may release a portion of any security posted as the improvements are completed and recommended for approval by the Subdivision Administrator. Within 30 days after receiving the Subdivision Administrator's recommendation, the Planning Board shall approve or not approve the improvements. If the Planning Board approves the improvements, then it shall immediately release any security posted.
(Ord. passed 5-17-2007)