A. Agreement For Completion Of Improvements: Before the final plat is signed by the President of the Board of Trustees, all applicants shall be required to enter into a subdivision improvement agreement with the Village.
B. Improvement Agreement And Guarantee:
1. Agreement: The applicant shall warrant that all required public improvements will be free from defects for a period of two (2) years following the acceptance by the Board of Trustees of the dedication of the last completed public improvement. The applicant (subdivider) shall promptly correct all deficiencies occurring in the improvements in the subdivision during the two (2) year warranty period. The subdivision improvement guarantee shall contain such other terms and conditions agreed to by the applicant and the Board of Trustees.
2. Covenants To Run With Land: The subdivision improvement shall provide that the covenants shall run with the land and bind all successors, heirs, and assignees of the subdivider.
3. Security: The applicant shall provide a letter of credit or cash escrow as security for the subdivision improvements. Either security shall be in an amount equal to one hundred twenty percent (120%) of the estimated cost of completion of the required public improvements, including lot improvements. The issuer of the letter of credit or the escrow agent, as applicable, shall be acceptable to the Village Treasurer.
a. Letter Of Credit: If the applicant posts a letter of credit as security for its promises contained in the subdivision improvement agreement, the credit shall: 1) be irrevocable; 2) be for a term sufficient to cover the completion, maintenance and warranty periods in subsection B1 of this section; and 3) require only that the government present the credit with a sight draft and an affidavit signed by the Village Attorney attesting to the Village's right to draw funds under the credit and be from a bank approved of and insured by the FDIC designating the Village of Glen Carbon as beneficiary.
b. Cash Escrow: If the applicant posts a cash escrow as security for its promises contained in the subdivision improvement plans, the escrow instructions shall provide: 1) that the subdivider will have no right to a return of any of the funds except as provided in subsection C3 of this section; and 2) that the escrow agent shall have legal duty to deliver the funds to the Village whenever the Village Attorney presents an affidavit to the agent attesting to the Village's right to receive funds whether or not the subdivider protests that right. (Ord. 2015-17, 4-14-2015)
C. Release Or Reduction Of Security:
1. Certificate Of Satisfactory Completion: The Board of Trustees will not accept dedication of required improvements, nor release nor reduce the amount of any security posted by the subdivider until the Public Works Director or his designee has submitted a certificate stating that all required improvements have been satisfactorily completed and until:
a. The applicant's licensed professional engineer or surveyor has certified to the Public Works Director or his designee, through submission of a detailed as built survey plat of the subdivision, indicating location, dimensions, materials, and other information required by the Public Works Director or his designee, that the layout of the line and grade of all public improvements are in accordance with construction plans for the subdivision; and
b. A title insurance policy has been furnished to and approved by the Village Attorney indicating that the improvements have been completed, are ready for dedication to the Village, and are free and clear of any and all liens and encumbrances. Upon such approval and recommendation by the Planning and Zoning Commission, Public Works Director or his designee, and Village Attorney, the Board of Trustees shall thereafter accept the improvements for dedication in accordance with the established procedure. (Ord. 2015-17, 4-14-2015; amd. Ord. 2018-07, 4-24-2018)
2. Submittal Of As Built Drawings: Upon satisfactory submission, review and approval of as built drawings, the developer's engineer shall provide the Village with as built drawings in an electronic computer aided drafting (CAD) format acceptable to the Village.
3. Reduction Of Escrowed Funds And Security: If the security posted by the subdivider was a cash escrow, the amount of that escrow shall be reduced upon actual acceptance of the dedication of public improvements and then only to the ratio that the cost of the public improvement for which dedication was accepted bears to the total cost of public improvements for the subdivision. In no event shall a cash escrow be reduced below twenty five percent (25%) of the principal amount. Funds held in the escrow account shall not be released to the subdivider, in whole or in part, except upon express written instructions of the Village Attorney. At the end of the maintenance and warranty periods, all escrowed funds, if any, shall be released to the subdivider. If the security provided by the subdivider was a letter of credit, the Village Attorney shall execute waivers of the Village's right to draw funds under the credit upon actual acceptance of the dedication of public improvements and then only to the ratio that the cost of the public improvement for which dedication was accepted bears to the total cost of public improvements for the subdivision. In no event shall waivers be executed that would reduce the security below twenty five percent (25%) of its original amount.
D. Temporary Improvement: The applicant shall build and pay for all costs of temporary improvements required by the Board of Trustees and shall maintain those temporary improvements for the period specified by the Board of Trustees. Prior to construction of any temporary facility or improvement, the developer shall file with the Village a separate subdivision improvement plan and a letter of credit or cash escrow in an appropriate amount for temporary facilities, which agreement and credit or escrow shall ensure that the temporary facilities will be properly constructed, maintained, and removed.
E. Costs Of Improvements: All required improvements shall be made by the developer, at its expense, without reimbursement by the Village.
F. Resolution Or Ordinance By Governmental Units: Governmental units to which these contract and security provisions apply may file, in lieu of the contract and security, a certified resolution or ordinance from officers or agencies authorized to act in their behalf, agreeing to comply with the provisions of this chapter.
G. Failure To Complete Improvements: In those cases where a subdivision improvement agreement has been executed and security has been posted and required public improvements have not been installed within the terms of the agreement, the Village may then: 1) declare the agreement to be in default and require that all the improvements be installed regardless of the extent of the building development at the time the agreement is declared to be in default; 2) suspend final plat approval until the improvements are completed and record a document to that effect for the purpose of public notice; 3) obtain funds under the security and complete improvements itself or through a third party; 4) assign its right to receive funds under the security to any third party, including a subsequent owner of the subdivision for which improvements were not constructed, in whole or in part, in exchange for that subsequent owner's promise to complete improvements in the subdivision; 5) exercise any other rights available under the law.
H. Acceptance Of Dedication Offers: Acceptance of formal offers of dedication of streets, public areas, easements, and parks shall be by ordinance of the Board of Trustees. The Planning and Zoning Commission may require the plat to be endorsed with appropriate notes to this effect. Maintenance requirements associated with Federal, State, and local laws or permits shall be appropriately noted on the plat.
I. Defective Improvements:
1. If at any time prior to final inspection and release of the maintenance security, as provided in subsection C3 of this section, the improvements are found by inspection to be defective, they shall be repaired or replaced at the subdivider's expense to the satisfaction of the Village. The Village shall have their option to either cause the improvements to be repaired or replaced and charge the costs thereof to the subdivider or to make demand upon the subdivider to cause the improvements to be repaired or replaced at the subdivider's expense. If the subdivider fails to pay costs or make repairs or replacements within sixty (60) days after demand is made upon the subdivider by the Village or other governmental entity, the maintenance security shall be sued to make the required repairs or replacements. If the costs of the repairs or replacements exceed the amount of security, the subdividers shall be personally liable for said excess costs.
2. Further, the excess costs shall constitute a lien on all unsold lots in the subdivision and no building permits shall be issued until all defects are corrected to the satisfaction of the Village. (Ord. 2015-17, 4-14-2015)