Where it appears to the Mayor from any application made under this article, or otherwise, that explosives of any type are to be used, or that a building permit allows the construction, demolition or removal of any building or structure located within fifteen feet of any street or alley within the Town, he may require that before a permit for any such work, construction, demolition, or removal is issued, the applicant for such permit file with the Code Enforcement Officer a policy of liability insurance, or bond, in which the Town is named as an additional insured for a combined single limit of $1,000,000 on structures three stories or less and $5,000,000 on structures in excess of three stories. An Agreement to indemnify and hold harmless the Town of Granville will also be required.