(A) Performance guarantee.
(1) In lieu of prior construction of the improvements required by this ordinance, the Board of Alderman may, for the purpose of approving a final plat, accept a guarantee from the subdivider that such improvements will be carried out according to the final plat and the town's specifications at his or her expense. Such guarantee may be in the form of a surety bond made by a surety company licensed to do business in the state, a letter of credit or certified check drawn in favor of the town, or cash deposited with the town. To secure this agreement, the subdivider shall provide, subject to the approval of the Town Board of Alderman an engineer's cost estimate equal to 125% of the entire cost of the improvements and a schedule indicating time of initiation and completion of the work, as a whole or in stages to the Subdivision Administrator. The engineer's cost estimate shall show the quantities, unit costs and estimated total costs. All expenses associated with the town's review, recommendation, modification and approval relative to the amount of any performance guarantee and periodic drawdowns shall be born directly by the subdivider.
(2) Performance guarantees shall run for a period of one year and may be renewed once for a period of one year upon written approval from the Board of Alderman.
(B) Default. Upon default, meaning failure on the part of the subdivider to complete the required improvements in a timely manner as spelled out in the performance bond or escrow agreement, then the surety, or the financial institution holding the escrow account shall if requested by the Board of Alderman, pay all or any portion of the bond or escrow fund to the town up to the amount needed to complete the improvements based on an engineering estimate. Upon payment, the Board of Alderman, in its discretion, may expend such portion of said funds, as it deems necessary to complete all or any portion of the required improvements. The town shall return to the subdivider any funds not spent in completing the improvements.
(C) Release of guarantee security.
(1) The Board of Alderman may release a portion of any security posted as the improvements are completed once said improvements are inspected and approved by the Subdivision Administrator.
(2) In the event that the applicant wishes to occupy any building or any portion of any building prior to the completion of the required site improvements, the financial guarantee guaranteeing improvements shall be retained by the town until the remaining required improvements are completed.
(D) Areas for use. All property shown on the plat as dedicated for public use shall be deemed to be dedicated for any other public use authorized by the Town Charter or any general, local or special law pertaining to the town, when such other use is approved by the Board of Aldermen as in the public interest.
(E) Recordation of plat. No plat shall be recorded until the final subdivision plat is approved in accordance with this ordinance.
(Ord. passed 7-1-2021)