The requirements of this section shall be complied with prior to the approval and recording of a final plat of subdivision, except as noted otherwise.
A. Action By The Subdivider:
1. Prior to the approval of a final plat, the owner or subdivider shall submit an executed subdivision improvement agreement, acceptable to the village, providing for the completion and guarantee of all required improvements in accordance with the approved plans and specifications therefor, said completion of all required improvements, and submission of as built plans therefor, to occur as provided for in such agreement.
2. After final plat approval, but prior to construction activity, the owner or subdivider shall submit a guarantee security in accordance with subsection A2a of this section, naming the village as beneficiary thereto from a sound and reputable banking institution, savings and loan association, surety or insurance company, authorized to do business in this state, and deemed good and sufficient by the village, in a form acceptable to the village attorney. The cost of improvements shall be in accordance with cost estimates prepared by the subdivider at his expense by a registered professional engineer and approved by the village engineer.
a. Guarantee Security:
(1) A corporate surety bond or other financing surety submitted in accordance with this section to guarantee the completion of public improvements shall be in an amount equal to or greater than one hundred ten percent (110%) of the estimated cost of installing and constructing said public improvements, including labor and material required for the work, whether by subcontractor or otherwise, and shall provide as follows:
(A) An expiration date not less than one year from the date of issuance and an express provision that such surety or bond will not expire prior to completion and village board acceptance of said public improvements;
(B) That written notice shall be given by certified or registered mail to the village clerk of the expiration date, if any, of the surety bond not less than sixty (60) days before said expiration, and that the surety or bond shall not expire absent such notice;
(C) That failure of the subdivider to complete the public improvements secured by such surety or bond prior to the completion date and acceptance by the village board shall be considered a default by the subdivider and the issuing institution;
(D) That failure of the subdivider to submit a new surety or bond in accordance with this section upon expiration of such surety or bond shall be considered a default by the subdivider and the issuing institution;
(E) That the surety or bond shall be irrevocable and shall be clearly marked "irrevocable";
(F) That the surety or bond will not be discharged or reduced by the issuing institution except upon written certificate of the village clerk that said surety or bond may be discharged or reduced in accordance with this section and the amount of such discharge or reduction;
(G) That the issuing institution will pay all attorney fees and other costs reasonably incurred in enforcing collection of such financing surety in the event that the issuer wrongfully fails to honor the village's demand for payment under the terms of such surety or bond.
(2) The requirements of subsection A2a(1) of this section may be modified or waived upon motion, resolution or ordinance of the village board if the board first determines that the requirements of said subsection A.2.a.(1) of this section would impose an unreasonable hardship upon the subdivider and that the absence of a surety or bond submitted in accordance with said subsection will not materially affect the guarantee that the requirements of this title will be met.
(3) A subdivider may, at its option, submit separate sureties or bonds for each public improvement to be accepted.
(4) A surety or bond submitted in accordance with this section to guarantee the completion of public improvements may be reduced or partially discharged prior to completion and acceptance of such public improvements by the village board upon the following showing by the subdivider and the certificate of the village engineer:
(A) A sworn statement by the subdivider's engineer of the cost of work performed and labor and materials provided toward the completion of such improvement and estimating the amount and cost of work, labor and material remaining to be performed or provided in order to complete such improvement. This statement may be waived by the village board where the estimated cost of the public improvement is less than five thousand dollars ($5,000.00).
(B) Written waivers of lien for all labor or material provided for such public improvement where public funds are involved.
(5) Any partial reduction or discharge of a surety or bond submitted in accordance with this section to guarantee completion of public improvements shall be subject to the following restrictions:
(A) No partial reduction or discharge approved on account of work performed and labor and materials provided shall exceed the cost of such work, labor or materials;
(B) No partial reduction or discharge shall be approved to the extent that it would cause the balance of funds remaining to be less than one hundred ten percent (110%) of the estimated cost of work, labor, and material remaining to be performed or provided in order to complete such improvements;
(C) A partial reduction or discharge of such financing surety may be approved upon the chief operating officer's recommendation to the village board; provided, however, such certificate shall not be construed as partial or complete acceptance of the improvement for which said work was performed or labor and materials provided.
(6) When the subdivider has supplied all of the documents or materials required by this title to be submitted in support of its request for discharge of a surety or bond or acceptance of the public improvement as completed, the village board shall approve or disapprove such request within sixty (60) days of the subdivider's application. If the subdivider's application is disapproved, a written statement of the reasons for such disapproval shall be given to the subdivider. The subdivider and the village board may mutually agree to extend the sixty (60) day period. In addition, the sixty (60) day period shall be extended as necessary in the event that weather prevents the village from verifying the facts contained in the subdivider's application.
(7) A surety or bond submitted in accordance with this section shall be discharged upon acceptance by the village board of all improvements for which said surety or bond was submitted and submission of a maintenance bond guaranteeing said improvement against defects in materials or workmanship in the amount of ten percent (10%) of the estimated cost of said improvement to be effective for a period of one year from the date of acceptance in order to assure the satisfactory condition of the required improvements for a period of one year after the date of their acceptance by the village board. The maintenance bond shall continue in effect for good cause shown in writing by the village beyond the maintenance period and until the village staff shall verify that condition of the improvements is satisfactory and recommend release of the maintenance bond.
(8) Upon acceptance of all public improvements or approval of a partial reduction or discharge of such a surety or bond, the village clerk shall send a written certificate within three (3) days after the next succeeding village board meeting to the issuing institution and to the subdivider that such financing surety may be discharged or partially reduced and the amount of such discharge or reduction, said surety or bond to otherwise remain in full force and effect.
(9) This section shall be binding upon and applicable to all subdividers, developers and successors in title of property which is subdivided or platted in accordance with this title.
B. Compliance Required Before Sale Of Lots: No owner, or agent of the owner, of any parcel of land located in a proposed subdivision shall transfer or sell such parcel before the final plat of said subdivision has been approved by the village board, in accordance with the provisions of this title, and filed with the recorder of deeds of Lake County, Illinois.
C. Compliance Required Before Issuance Of Building Permits: No building permits shall be issued until the chief operating officer has notified the village board that the final plat has been recorded, that the improvements of the entire plat have been installed, inspected and approved in writing by the village engineer up to, but not including, the bituminous surface course and subsequent required items, and that the construction of the subdivision has complied with the requirements of this code. (Ord. 1645-16, 3-21-2016; amd. Ord. 1972-19, 9-23-2019)