To guarantee the construction or maintenance of required improvements prior to the approval and recording of the final plat, the subdivider may be required to provide a performance guarantee in one or a combination of the following arrangements:
(A) Performance bond. The subdivider may post a bond executed by a surety company equal to the estimated cost plus 10% of the required improvements. The bond shall be in favor of the Village Council. The bond shall guarantee construction of the improvements according to the plans and specifications approved by the Planning Commission and the responsible public officials. The term of the bond shall not exceed one year, except the Planning Commission may grant an extension where due cause can be shown.
(B) Deposit. The subdivider may make a deposit with a responsible escrow agent or with a trust company. The deposit shall be money or negotiable bonds in an amount equal to the estimated cost plus 10% of the required improvements. If a cash deposit is made, an agreement may be executed to provide payments to the contractor or the subdivider from the deposit as the work progresses and is approved by the responsible officials.
(C) Escrow agreements. Where escrow agreements for the proposed improvements are proposed for the estimated cost of the improvements plus 10%, they will constitute sufficient guarantee for the installation of required improvements in lieu of other methods stated above. An escrow agreement form is available from the appropriate agency involved and must be used.
(D) Failure of subdivider to complete improvements. In case the subdivider shall fail to complete the required improvements work within such time period as required by the conditions or guarantees as outlined above, the Planning Commission and Village Council may proceed to have such work completed and reimburse the village for the cost thereof by appropriating the cash deposit, certified check, surety bond, or escrow account, or shall take the necessary steps to require performance by the bonding company.
(Ord. 12-94, § 516, passed 1-17-95)