A. Generally. In-lieu of the completion, installation and dedicated of required public improvements and facilities, and private site improvements prior to approval of a final plat of issuance of a certificate of occupancy, a developer may submit:
1. An itemized estimate of costs for required improvements, signed and dated, for which the developer is responsible.
2. A financial guarantee for the installation of the required improvements in accordance with this Section.
B. Eligible Facilities for Performance Guarantees. The following facilities may be eligible for performance guarantees:
1. Sidewalks (see Section 8.1.7.K: Sidewalks).
2. Required landscaping.
3. Private stormwater facilities (see Section 8.1.7.L: Stormwater).
4. Street Improvements (see Section 8.1.7.G: Streets).
5. Potable Water Facilities (see Section 8.1.7.M: Potable Water).
6. Sanitary Sewer Facilities (see Section 8.1.7.N: Sanitary Sewer).
C. Performance Guarantee Applicability. In compliance with G.S. § 160D-804, this section requires performance guarantees to assure successful completion of required improvements at the time the plat is recorded. Performance guarantee shall be required:
1. To ensure that public infrastructure improvements required as part of a preliminary plat, site plan or developer agreement, but not approved as complete before approval of a final plat or certificate of occupancy, are completed; and
2. To ensure that private site improvements that are required as part of a preliminary plat, site plan or developer agreement (such as landscaping or stormwater), but not installed before approval of a certificate of occupancy, are completed.
D. Performance Guarantee Standards. The guarantee shall comply with the following:
1. The term of the performance guarantee shall be required to reflect the time limit for completion of installing requirement improvements that are required in a preliminary or final plat, site plan or developer agreement.
2. An accepted performance guarantee shall be in the form of one of the following items:
a. Bond. A surety bond issued by any company authorized to do business in North Carolina. The bond shall be made payable to the City.
b. Cash, Cashier Check, or Letter of Credit. The applicant shall deposit cash, a cashier check, or letter of credit, either with the City of Monroe or with a North Carolina financial institution licensed to do business within the state. If a financial institution is used, the financial institution shall enter into an agreement with the City guaranteeing that the escrow account established for the guarantee shall be held in trust until released by the City and may not be used by the applicant.
3. The performance guarantee shall be required to distinguish the portion of the guarantee for public improvements and portion of the guarantee for private improvements.
4. Estimated costs of completing the required public and private improvements shall be itemized by the developer’s licensed professional engineer.
5. The performance guarantee shall not exceed one-hundred-and-ten percent 110%) of the reasonably estimated cost of completion at the time the performance guarantee is issued.
E. Release or Reduction of Performance Guarantees. The Director shall release or reduce a performance guarantee only when:
1. The developer has submitted a written request for release or reduction to the City. The written request shall include certification by the developer’s engineer that the installation of the guaranteed improvements has been completed in compliance with approved plans;
2. City staff has performed their inspections of the improvements and issued a certification that the improvements have been completed in compliance with approved plans; and
3. The subdivider may request a one-time reduction in the financial guarantee not to exceed 50% of the original amount of the guarantee once at least 50% of the required improvements have been made. Steps 1, 2, and 3 of the process outlined above are repeated for this process.
F. Certification. An architect or engineer retained by the developer shall certify to the City that all facilities and improvements to be dedicated to the City have been constructed in accordance with the requirements of this Section. This certification shall be a condition precedent to acceptance by the City of the offer of dedication of such facilities or improvements.
(Am. Ord. O-2022-70, passed 11-8-22)