(a) In lieu of completion of some or all required improvements, the Council may give final plat approval conditioned upon the proprietor providing a financial guaranty for performance as provided in this section.
(b) Security shall be in an amount equal to the total estimated cost for completion of the improvement, including reasonable contingencies. Security shall not be required for an improvement for which security has been furnished to another governmental agency.
(c) Security shall remain in force for a time to be specified by the City Council.
(d) Security shall be in the form of an irrevocable bank letter of credit issued by a bank, in a form satisfactory to the City, or in the form of cash escrow or a certified check. A performance bond in form satisfactory to the City from a surety company authorized to do business in the State of Michigan and acceptable to the City, may be substituted in lieu of such security only if the applicant can satisfy the City that an irrevocable letter of credit, cash escrow or certified check cannot reasonably be made available.
(e) The proprietor may request periodic reductions in the amount of security as public improvements are completed. City staff may approve such reductions, to an amount estimated to be equal to the remaining cost of improvements, plus a reasonable contingency.
(5) (Ord. 389. Passed 3-6-01.)