In lieu of requiring the completion, installation, and dedication of improvements required as part of development, the county may enter into a written agreement with the developer(s) whereby the developer(s) shall agree to complete all required improvements. Once the agreement is signed by both parties and the security required herein is provided, the development may be approved by the Development Review Board or other appropriate government body, if all other requirements of this chapter are met. Improvements required by state and federal agencies shall not be included as part of any improvement guarantees provided by the developer(s) to the county. However, the requirements of these agencies shall have been met prior to approval of a development. To secure this agreement, the developer(s) shall provide, as approved by the county, any and all required forms, and either one or a combination of the following guarantees equal to one and one-quarter times the entire cost of the improvements secured.
(A) Improvements required prior to acceptance of improvement guarantees. To ensure that adequate measures have been made to provide public safety and emergency service access to the development, the following improvements shall have been made by the developer(s), and approved by the county, prior to acceptance of any improvement guarantee allowed by this section:
(1) Permits shall have been issued for the water supply system, with final approval by NCDENR;
(2) Temporary fire protection shall be made available. The appropriate and required temporary fire protection for each development shall be determined by the county’s Fire Code Official;
(3) Minimum ingress/egress access shall be provided, in compliance with § 153.151(M)(4); and/or
(4) All street sign fees shall have been received by the county.
(B) Required estimate for improvement guarantees. A written, itemized estimate shall be provided by a third-party, industry expert in the field in which the guarantees are being provided for. The county may require that additional estimates be provided. All estimates shall be sealed.
(C) Surety performance bond(s). The developer shall obtain a performance bond(s) from a surety bonding company authorized to do business in the state and approved by the county. The bond shall be payable to the county and shall be in an amount equal to one and one-quarter times the entire cost, as estimated by the developer and verified by the county, of installing all required improvements. The duration of the bond(s) shall be until such time as the improvements are accepted by the county. Any expenses associated with the cost verification by the county shall be paid entirely by the developer.
(D) Cash, letter of credit, or equivalent security. The developer shall deposit cash, an irrevocable letter of credit, or other instrument readily convertible into cash at face value with the county. The use of any instrument other than cash shall be subject to the approval of the county. The amount of deposit shall be equal to one and one-quarter times the entire cost, as estimated by the developer, and verified by the county, of installing all required improvements.
(E) Improvement guarantee review process. The Planning Department shall provide required forms and documents to be used as part of a completed application to provide improvement guarantees. A minimum 10-day review period shall begin once a completed application has been submitted, including required forms and estimates. All applicable county departments, including, but not limited to, the County Engineer and Legal Services, shall review all improvement guarantee applications prior to approval.
(F) Default. Upon default, meaning failure on the part of the developer to complete the required improvements in the time allowed by this chapter or as spelled out in the performance bond or security agreement, then the surety, or financial institution holding the account, shall, if requested by the county, pay all or any portion of the bond or security to the county up to the amount needed to complete the improvements based on an estimate by the county. Upon payment, the county, in its discretion, may expend such portion of the funds as it deems necessary to complete all or any portion of the required improvements. The county shall return to the developer any funds not spent in completing the improvements.
(G) Release of guarantee security. The county may release all or a portion of any security posted as the improvements are completed and recommended for approval by the Administrator, after receiving a written request. The Administrator shall approve or disapprove the request within 30 days. When the county approves the improvements, it shall immediately release the portion of the security posted which covers the cost of the improvements approved. In the instance when a reduction in the improvement guarantee is being requested, the required process for improvement guarantee approvals shall begin again for the remaining portion to be held in guarantee. The developer(s) shall provide an affidavit stating that all subcontractors have been paid for the portion to be reduced.
(Ord. passed 10-17-2011)