A. Required: The village board shall not approve any final plat (and, hence, said final plat shall not be entitled to recording) until:
1. All improvements required in the approved improvement plans have been completed by the subdivider/developer at his expense, inspected by the appropriate village official, and dedicated to the village or other appropriate entity; or
2. In accordance with this section, the subdivider/developer has provided the village with legal assurance to guarantee the satisfactory completion and dedication of all required improvements.
3. Necessary title assurances have been given.
B. Type Of Assurance: The required legal assurance may be a performance bond, an escrow deposit or a letter of credit. Every performance bond shall be approved as to form by the village attorney and posted with the village clerk. Any funds held in escrow shall be deposited with an approved escrow agent.
C. Amount Of Bond Or Deposit: The amount of the legal assurance shall be equal to the appropriate village official's estimate of the costs of constructing the uncompleted portion of the required improvements, plus all required inspection fees. Any escrow deposit may be in the form of:
1. An irrevocable letter of credit or commitment from a lending institution guaranteeing to the village the availability of the escrow funds from time to time upon demand; or
2. Interest bearing accounts with a financial institution authorized to serve as an escrow agent.
D. Eligible Sureties: No person shall be eligible to act as surety unless he has been approved by the state of Illinois to act as a surety on public works improvements.
E. Term Of Assurance; Extension: The initial term of any performance bond or escrow agreement shall not exceed two (2) years. If all the required improvements have not been completed by the end of the two (2) year period, the appropriate village official, with the advice and consent of the village board, may extend said bond/escrow agreement for one year only.
F. Release Of Bond/Escrow Deposit:
1. The appropriate village official may release up to ninety percent (90%) of the amount of the performance bond/escrow deposit upon receipt of written authorization from the appropriate village official. The amount which the appropriate village official authorizes to be released shall be equal to the value of improvements actually completed in accordance with approved plans.
2. The balance of the amount of the performance bond/escrow deposit shall not be released until:
a. The appropriate village official has submitted in writing that all required improvements have been satisfactorily completed; and
b. Said improvements and corresponding right of way have been accepted by and dedicated to the village or other appropriate entity.
G. Failure To Complete Improvements: If all the required improvements have not been completed by the end of the two (2) year period (or 3 year period, in the case of an extension), the appropriate village official, with the assistance of the village attorney, may:
1. Require the surety to perform on the bond, and to pay to the village an amount equal to the cost of completing the required improvements (as estimated by the appropriate village official) or the amount of the bond not theretofore released, whichever is less; or
2. Order the escrow agent to retain all escrowed funds needed to complete the required improvements, and to return the balance (if any) of such funds to the subdivider/developer. (Ord. 1334, 4-18-2005)