(A) Improvements and escrow deposits or performance bond.
(1) Completion of improvements. Before the plat is signed by the Chairperson of the Commission, all applicants shall be required to complete, in accordance with the Commission’s decision and to the satisfaction of the City Engineer, all the street, sanitary and other improvements including lot improvements on the individual lots of the subdivision as required in these subdivision regulations, specified in the final subdivision plat, and as approved by the Commission, and to dedicate the same to the city, free and clear of all liens and encumbrances on the property and public improvements thus dedicated.
(2) Escrow deposits for lot improvements.
(a) Acceptance of escrow funds. Whenever, by reason of the season of the year, any lot improvements required by the subdivision regulations cannot be performed, the Zoning Inspector may, nevertheless, issue a certificate of occupancy, provided there is no danger to health, safety or general welfare upon accepting a cash escrow deposit in an amount to be determined by the City Engineer for the cost of such improvements. The performance bond covering such lot improvements shall remain in full force and effect.
(b) Procedures on escrow fund. All required improvements for which escrow moneys have been accepted by the Zoning Officer at the time of issuance of a certificate of occupancy shall be installed by the developer within a period of nine months from the date of deposit and issuance of the certificate of occupancy. In the event that the improvements have not been properly installed, at the end of the time period, the Zoning Inspector shall give two weeks’ written notice to the developer requiring him or her to install the same, and in the event that the same are not installed properly in the discretion of the Zoning Officer, the Zoning Officer may request the governing body to authorize the city to proceed to contract out the work for the installation of the necessary improvements in a sum not to exceed the amount of the escrow deposit. At the time of the issuance of the certificate of occupancy for which escrow moneys are being deposited with the Zoning Officer, the applicant shall obtain and file with the Zoning Officer prior to obtaining the certificate of occupancy a notarized statement from the purchaser of the premises authorizing the Zoning Officer to install the improvements at the end of the nine-month period in the event that the same have not been duly installed by the developer.
(3) Performance bond.
(a) The Planning Commission in its discretion may waive the requirement that the applicant complete and dedicate all public improvements prior to the signing of the subdivision plat, and that, as an alternative, the applicant post a bond at the time of application for final subdivision approval in an amount estimated by the Commission as sufficient to secure to the city the satisfactory construction, installation and dedication of the uncompleted portion of required improvements. The performance bond shall also secure all lot improvements on the individual lots of the subdivision as required in these subdivision regulations.
(b) Such performance bond shall comply with all statutory requirements and shall be satisfactory to the City Attorney as to form sufficiency and manner of execution as set forth in these subdivision regulations. The period within which required improvements must be completed shall be specified by the Planning Commission in the resolution approving the final subdivision plat and shall be incorporated in the bond and shall not in any event exceed two years from date of final approval. Such bond shall be approved by the city as to the amount and surety and conditions satisfactory to the governing body. The Commission may, upon proof of difficulty, recommend to the governing body extension of the completion date set forth in such bond for a maximum period of one additional year. The city may at any time during the period of such bond accept a substitution of principal or sureties on the bond upon recommendation of the Commission.
(4) Temporary improvement. The applicant shall build and pay for all costs of temporary improvements required by the Commission and shall maintain the same for the period specified by the Commission. Prior to construction of any temporary facility or improvements, the developer shall file with the city a separate suitable escrow deposit or bond for temporary facilities, which escrow deposit or bond shall insure that the temporary facilities will be properly constructed, maintained and removed.
(5) Cost of improvements. All required improvements shall be made by the applicant, at his or her expense, without reimbursement by the city or any improvement district therein.
(6) Governmental units. Governmental units to which these bonds and contract provisions apply may file in lieu of such contract or bond a certified resolution or from officers or agencies authorized to act in their behalf, agreeing to comply with the provisions of this subchapter.
(7) Failure to complete improvement. For subdivisions for which no escrow deposit or performance bond has been posted, if the improvements are not completed within the period specified by the Commission in the resolution approving the plat, the approval shall be deemed to have expired. In those cases where an escrow deposit or performance bond has been posted and required improvements have not been installed within the terms of such performance bond, the city may thereupon declare the escrow deposit or bond to be in default and require that all the improvements be installed regardless of the extent of the building development at the time the escrow deposit or bond is declared to be in default.
(8) Acceptance of dedication offers. Acceptance of formal offers of dedication of streets, public areas, easements and parks shall be by the city. The approval by the Commission of a subdivision plat shall not be deemed to constitute or imply the acceptance by the city of any street, easement or park shown on such plat. The Commission may require the plat to be endorsed with appropriate notes to this effect.
(B) Inspection of improvements.
(1) General procedure and fees. The Commission shall provide for inspection of required improvements during construction and ensure their satisfactory completion. The applicant shall pay to the city an inspection fee of 2% of the amount of the performance bond or the estimated cost of required improvements, and the subdivision plat shall not be signed by the Chairperson of the Commission unless such fee has been paid at the time of application. These fees shall be due and payable upon demand of the city and no building permits or certificate of occupancy shall be issued until all fees are paid. If the City Engineer finds upon inspection that any of the required improvements have not been constructed in accordance with the city’s construction standards and specifications, the applicant shall be responsible for completing the improvements. Wherever the cost of improvements is covered by an escrow deposit or performance bond, the applicant and the bonding company shall be severally and jointly liable for completing the improvements according to specifications.
(2) Release or reduction of performance bond.
(a) Certificate of satisfactory completion. The city shall not accept dedication of required improvements, nor release nor reduce a performance bond, until the City Engineer has submitted a certificate stating that all required improvements have been satisfactorily completed and until the applicant’s engineer or surveyor has certified to the City Engineer, through submission of detailed “as-built” survey plat of the subdivision, indicating location, dimensions, materials and other information required by the Commission or City Engineer, that the layout of the line and grade of all public improvements is in accordance with construction plans for the subdivision and that a title insurance policy has been furnished to and approved by the City Attorney indicating that the improvements shall have been completed, are ready for dedication to the city and are free and clear of any and all liens and encumbrances. Upon such approval and recommendation, the governing body shall thereafter accept the improvements for dedication in accordance with the established procedure.
(b) Reduction of escrow deposit or performance bond. An escrow deposit or performance bond shall be reduced upon actual dedication of public improvements and then only to the ratio that the public improvement dedicated bears to the total public improvements for the plat. In no event shall the escrow deposit or performance bond be so reduced below 25% of the principal amount.
(C) Maintenance of improvements.
(1) The applicant shall be required to maintain all improvements on the individual subdivided lots and provide for snow removal on streets and sidewalks, if required, until acceptance of such improvements by the city. If there are any certificates of occupancy on a street not dedicated to the city, the city may on 12 hours’ notice plow the street or effect emergency repairs and charge the same to applicant.
(2) The applicant shall be required to file a maintenance bond with the city, prior to dedication, in an amount considered adequate by the City Engineer and in a form satisfactory to the City Attorney, in order to assure the satisfactory condition of the required improvements, including all lot improvements on the individual subdivided lots for a period of one year after the date of their acceptance by the city and dedication of same to the local government.
(D) Deferral or waiver of required improvements.
(1) The Planning Commission may defer or waive at the time of final approval, subject to appropriate conditions, the provision of any or all such improvements as, in its judgment, are not requisite in the interests of the public health, safety and general welfare, or which are inappropriate because of inadequacy or lack of connecting facilities.
(2) Whenever it is deemed necessary by the Commission to defer the construction of any improvement required herein because of incompatible grades, future planning, inadequate or lack of connecting facilities, or for other reasons, the applicant shall pay his or her share of the costs of the future improvements to the city prior to signing of the final subdivision plat, or the applicant may post a bond insuring completion of such improvements upon demand of the local government.
(E) Issuance of building permits and certificates of occupancy.
(1) Where an escrow deposit or performance bond has been required for a subdivision, no certificate of occupancy for any building in the subdivision shall be issued prior to the completion of the improvements and dedication of same to the local government, as required in the Commission’s final approval of the subdivision plat.
(2) The extent of street improvement shall be adequate for vehicular access by the prospective occupant and by police and fire equipment, prior to the issuance of an occupancy permit. The developer shall at the time of the dedication submit moneys in escrow to the city in a sum determined by the City Engineer for the necessary final improvement of the street.
(3) No building permit shall be issued for the final 10% of lots in a subdivision, or if 10% is less than two, for the final two lots of a subdivision, until all public improvements required by the Commission for the plat have been fully completed and dedicated to the city.
(F) Consumer protection legislation and conflicts of interest statutes.
(1) No building permit or certificate of occupancy shall be granted or issued if a developer or his or her authorized agent has violated any federal, state or local law pertaining to consumer protection of real estate land sales, promotion or practices, or any applicable conflicts of interest legislation with respect to the lot or parcel of land which is the subject of the permit or certificate, until so ordered by a court of competent jurisdiction.
(2) With respect to such lot or parcel of land, in the event a building permit or certificate of occupancy has been granted or issued, it shall be subject to revocation by the city until so ordered otherwise by a court of competent jurisdiction, provided that in no event shall the rights of intervening innocent third parties in possession of a certificate of occupancy be prejudiced by any such revocation.
(3) Any violation of a federal, state or local consumer protection law, including, but not limited to: the Postal Reorganization Act of 1970, being 39 U.S.C. §§ 410 et seq.; the Federal Trade Commission Act of 1970, being 15 U.S.C. §§ 41 to 58; Interstate Land Sales Full Disclosure Act, being 15 U.S.C. §§ 1701 et seq.; the Truth in Lending Act, being 15 U.S.C. §§ 1601 et seq.; the Uniform Commercial Credit Code; appropriate and applicable state laws, or conflicts of interest statute, law or regulation shall be deemed a violation of these subdivision regulations and subject to all of the penalties and proceedings as set forth herein.
(Ord. passed 2-2-2010)