A. Guarantee required. Whenever an applicant chooses to record before completing required public improvements, the applicant shall be required to provide a sufficient guarantee for completion of the required public improvements. The guarantee shall be in the form of cash, letter of credit, escrow or surety bond naming the City as the beneficiary pursuant to N.C.G.S. 160D-804, as amended.
B. Amount of guarantee. The guarantee shall be in an amount equal to one hundred twenty-five percent (125%) of the estimated cost of improvements as shown on the approved construction plan, shall be signed and sealed by an engineer licensed to practice in North Carolina, and shall be sufficient to cover all promises and conditions contained in the Development Agreement. The City reserves the right to verify the estimated cost of improvements shown on the approved construction plan with a third- party engineer licensed to practice in North Carolina and any expense shall be assessed to the applicant as a cost recovery fee.
C. Completion of public improvements. The City Council may defer the completion of required improvements provided the applicant guarantees completion of all required public improvements no later than two (2) years following the date of Final Plat approval. The Council may grant one (1) extension for up to two (2) years. Developers of multi-phase developments may be required to complete and dedicate those improvements necessary for initial development to occur in accordance with the terms of the development agreement.
D. Final plat recording. Once the development agreement is approved by city council and the required financial guarantee is provided by the developer, the final plat may be approved or the Certificate of Occupancy may be issued if all other requirements of this chapter and other land development regulations are met. The approved and executed Development Agreement shall be recorded in the Office of Register of Deeds.
E. Duration of performance guarantees. The duration of a performance guarantee must be of a reasonable period to allow for completion and acceptance of improvements. In no case may the duration of the performance guarantee exceed two (2) years, unless the guarantee is extended with the consent of city council. The city may release a portion or all of any financial guarantee posted as the improvements are completed and approved by the city council. All infrastructure necessary to serve off-site development must be completed before final release of the financial guarantee.
F. Default.
1. Public improvements. Developments with public improvements that are not completed and accepted at least 30 calendar days before the expiration of the performance guarantee will be considered to be in default. Upon default the surety bonding company or the financial institution holding the escrow account must, if requested by the city, pay to the city all or any portion of the bond or escrow fund in an amount deemed necessary by the city to complete the improvements.
2. Private improvements. With the exception of stormwater controls or other improvements to remain privately owned, developments with private improvements that are not completed and accepted at least 30 calendar days before the expiration of the performance guarantee will be considered to be in default. Upon default the surety bonding company or the financial institution holding the escrow account must, if requested by the city, pay to the city all or any portion of the bond or escrow fund in an amount deemed necessary by the city to have the improvements completed. Upon payment, the city shall require completion of all required improvements and shall use such funds or portion thereof from the bond or escrow account to reimburse costs for all or any portion of the required improvements. Default on a project does not release the original applicant or developer and all subsequent applicants and developers from liability and responsibility for completion of the required improvements.
(Ord. No. O-21-06-15-5, §1, 6-15-21)