In order to provide for the orderly growth of the Village and to further provide for the orderly development of land and the installation of all required improvements in newly developed areas, no plat of a proposed subdivision shall be given final approval, or permit issued to construct any other improvements as provided for in Section 9-1-4 of this Title, until the requirements of this Section have been met. Before approval of a final plat, or approval or issuance of a permit to construct any development improvements, a performance bond, acceptable irrevocable letter of credit, or other guarantee acceptable to the Village must be provided as set forth hereunder: (Ord. 92-01, 1-29-92)
A. Amount: The amount of the guarantee shall be equal to one hundred fifty percent (150%) of the estimated cost of construction of the required improvements as approved by the Village Engineer.
B. Time Limit: All guarantees shall run to the Village and shall require performance of work to be completed within eighteen (18) months from the date of final plat approval. Letters of credit or cash deposit guarantees shall not expire until at least ninety (90) days after date of required performance completion.
C. Release: Release of portions of the required performance bond is expressly prohibited, but if the guarantee is in the form of a cash deposit or of a letter of credit, the amount of the guarantee may be reduced from time to time upon approval of the Village Engineer in a sum equal to ninety percent (90%) of the original estimated value of work which has been completed, approved, fully paid for, and accepted by the Village. No guarantee shall be released until the work has been finally approved and accepted by the Village and a two (2) year guarantee submitted as hereinafter provided in subsections E and F. Separate guarantees for different kinds of improvements shall be minimized.
D. Bond Company: The bonding company, bank, financial institution or escrowee utilized shall meet with the approval of the Village.
E. Two Year Guarantee: After the work has been completed and accepted and approved by the corporate authorities, the subdivider and the owner shall guarantee said public improvements against defects in materials and workmanship for a period of two (2) years from the date of the acceptance of said public improvements by the Village. The owner and subdivider agree to repair or replace any of said public improvements which, during said two (2) year period after acceptance shall become damaged or deficient due to defective materials or workmanship and to maintain said public improvements in a good and safe state of repair, ordinary wear and tear excepted, for said two (2) year period after acceptance.
F. Acceptance of Improvements, Two Year Guarantee: Upon certification to the Village Board by the Village Engineer that all of said improvements have been completed and have been approved by him and when all of the costs of construction of said improvements and all engineering costs including the Village's engineering inspection fees have been paid, the Village Board shall thereupon accept said public improvements; provided however, that the subdivider shall first post a guarantee in a form acceptable to the Village in an amount not to exceed ten percent (10%) of the cost of the construction of public improvements being accepted to assure performance of the two (2) year guarantee of maintenance and replacement of defective improvements hereinabove required in subsection E. Said two year (2) guarantee shall be in similar form to the original guarantee, and letters of credit or cash deposit guarantees shall not expire until ninety (90) days after the two (2) year guarantee period.
G. Release of Guarantees: When the said improvements have been accepted and approved and the two (2) year guarantee posted as hereinabove provided, the guarantee of performance hereinabove required shall be released by the corporate authorities. When the two (2) year guarantee period has expired and when all obligations under the two (2) year guarantee have been satisfied, the subdivider shall be entitled to release thereof by the corporate authorities.
H. Default: If the improvements are not completed within the required time, the corporate authorities of the Village may use the performance bond, letter of credit, or other guarantee or any portion thereof, to complete construction of the improvements. In addition thereto or in lieu thereof, the corporate authorities may deem such failure to complete the improvements within the required time sufficient cause for the revocation and cancellation of the Village's approval of said plan of subdivision or any part thereof. Default is failure to install herein required improvements or to maintain or replace the same as required in subsection F.
1. Performance Bond: In the event of default, when the guarantee is in the form of a performance bond, the corporate authorities shall seek completion of the improvements or two (2) year maintenance and replacement, as the case may be, in the manner provided in said bond.
2. Letter of Credit: In the event of default, when the guarantee is in the form of a letter of credit, the corporate authorities shall obtain from the Village Engineer, an estimate of the cost of completion of the improvements, or of the two (2) year maintenance and replacement, as the case may be, and immediately draw against said letter of credit, a sight draft in a sum equal to one hundred fifty percent (150%) of the said cost estimate. Said sum shall be deposited in a special fund and used only to pay the cost of curing said default including any engineering and attorney's fees. When all costs of curing said default have been paid, and within one year after drawing said funds, the balance thereof, if any, shall be returned to the subdivider. (Ord. 90-03, 7-25-90)
I. Approval with Conditions: Notwithstanding the provisions of this subsection, the Village Board may waive the requirements herein that bond or other security be posted prior to final approval if the following conditions are met:
1. The final plat shall bear a legend which clearly provides that no building permits may be issued for, nor any construction allowed upon any lot in the subdivision unless there shall first have been provided to and approved by the Village, an adequate security in the form provided in this Section to assure that all public improvements necessary for the use and occupancy of the lot will be installed and completed.
2. That a deed conveying all of the public interest or open space areas of the subdivision is delivered to the Village.
3. That the developer meets such other conditions that the Village Board determines to be necessary to assure that the approval of the final plat shall not create a condition under which the developer can avoid any of its obligation to complete all of the improvements required to be made by the developer in the subdivision.
4. No lots shall be sold by the developer before providing security in the form required in this Section unless the proposed buyer shall first be provided with a notice that no building permits will be issued and no construction allowed until such security is provided. Developer shall file a copy of such notice signed by buyer with the Village before delivering a deed.
5. The provisions of this subsection shall apply only to residential subdivisions of one hundred (100) acres or more in which at least thirty five (35) acres thereof are being conveyed to the Village as per open space areas as referred to in subsection I2 of this Section. (Ord. 93-19, 4-21-93)