(A) Intent and scope of requirements. To insure compliance with the provisions of this chapter and any conditions imposed thereunder, the Planning Commission, Community Development Director, Zoning Administrator or their designee may require that a performance guarantee be deposited with the city, prior to the issuance of permits or approvals, to insure faithful completion of improvements, in accordance with the Michigan Zoning Enabling Act, Act 110 of 2006, as amended. Improvements for which the city may require a performance guarantee include, but are not limited to roadways, lighting, utilities, sidewalks, driveways, screening, grading and drainage, incomplete structures, site clean-up and landscape buffers.
(B) General requirements. The performance guarantee shall meet the following requirements.
(1) The performance guarantee shall be in the form of cash, certified check, irrevocable letter of credit from a Michigan lending institution, surety bond or performance bond which names the property owner/developer/contractor as the obligor and the city as the at-will oblige or beneficiary.
(2) The performance guarantee shall be submitted at the time of issuance of the permit authorizing the activity or project.
(3) The amount of the performance guarantee shall be sufficient to cover the estimated cost of the project/development/improvements for which the performance guarantee is required. Prior to the issuance of the permit authorizing the activity or project, the applicant shall provide an itemized schedule of estimated costs to complete the project/development/improvements. The amount of the performance guarantee shall be determined by the Zoning Administrator or Building Official and shall be reasonably related to the costs incurred by the city to complete the project/development/improvements.
(4) The entire performance guarantee shall be returned to the applicant following issuance of a Certificate of Occupancy by the Building Official and/or final site approval by the Community Development Director or designee where appropriate. The performance guarantee may be released to the applicant in proportion to the work completed on various elements, provided that a minimum of 10% shall be retained on each element until satisfactory completion of the entire project.
(C) Unsatisfactory completion of improvements. Whenever required improvements are not installed or maintained within the time stipulated or in accordance with the standards set forth in this chapter or the Approved Site Plan, the city may complete the necessary improvements and assess all costs of completing the improvements plus interest against the performance guarantee. Prior to the city completing the improvements, the city shall notify the owner, site plan review applicant, or other firm or individual responsible for completion of the required improvements.
(Ord. 92-005, passed 2-17-92; Am. Ord. 06-004, passed 2-13-06; Am. Ord. 13-014, passed 9-9-13)
Penalty, see § 154.999