(A) Subdivision improvements guarantees.
(1) Prior to the final plat approval, but after approval of all improvement plans and specifications, the subdivider shall complete all improvements required for the subdivision. Final plat approval shall not be given until the dedication of all appropriate improvements and acceptance thereof by the Board of Trustees.
(2) In lieu of requiring the completion of all improvements prior to the final plat approval, the Board of Trustees may enter into an agreement with the subdivider whereby the subdivider shall guarantee to complete all improvements required by this chapter and approved by the Planning Commission and Board of Trustees in a manner satisfactory to the Board of Trustees. To secure this agreement, the subdivider shall provide, subject to the approval of the Board of Trustees, one or more of the guarantees.
(B) Surety performance bond. The subdivider shall obtain a performance bond from a bonding company authorized to do business in the state. The bond shall be payable to the village and shall be in an amount to cover 110% of the cost of all improvements, as estimated by the subdivider and accepted by the Board of Trustees upon recommendations of the Village Attorney and Engineer. The duration of the bond shall be until such time as the improvements are accepted by the Board of Trustees in accordance with division (J) below.
(C) Escrow account. The subdivider shall deposit cash, or other instrument readily convertible to cash at face value, either with the Board of Trustees or in escrow with a bank. The use of any instrument other than cash, and in the case of an escrow account, the bank with which the funds are to be deposited, shall be subject to the approval of the Board of Trustees. The amount of the deposit shall be an amount equal to 110% of the estimated cost of all required improvements as estimated by the subdivider and accepted by the Board of Trustees upon recommendation of the Village Engineer.
(D) Security agreement.
(1) The subdivider shall provide a security agreement guaranteeing the installation of all required improvements. The security agreement must be approved by the Village Attorney and in an amount sufficient to guarantee the installation of all improvements.
(2) In the case of an escrow account, the subdivider shall file with the Board of Trustees an agreement between the bank and himself or herself guaranteeing the following.
(a) The funds of said escrow account shall be held in trust until released by the Board of Trustees and may not be used or pledged by the subdivider as security in any other matter during that period.
(b) That in the case of a default on the part of the subdivider to complete said improvements, the bank shall immediately make the funds of said account available to the Board of Trustees for use in completion of the improvements.
(E) Improvement assessment district. Because the original intent of such improvements in already built-up areas, and because the village should not assume the risk of real estate development which results if the lots are unable to be sold and the subdivider defaults on the assessment payments, the use of improvement districts in connections with new subdivision developments shall not be used as a method of financing such improvements. Only in specific cases where the subdivider illustrates through extensive market research will the Board of Trustees consider acceptances of an improvement district as a means of financing the necessary improvements and providing financial security to the village.
(F) Time limits. Prior to the granting of final plat approval, the subdivider and the Board of Trustees shall agree upon a deadline for the completion of all improvements. Such deadline shall not exceed two years from the date of final plat approval; provided, however, the Board of Trustees may extend that deadline for one additional year where the subdivider present substantial reason for doing so and provides any additional performance surety made necessary due to inflation or increased cost of completing the improvements.
(G) Installation of improvements. Developers may select either method or combination of methods listed below to comply with the minimum improvement requirements.
(1) They may install the required improvements upon acceptance of plans and specifications being approved by Village Engineer and Board of Trustees.
(2) They may submit a petition or petitions requesting the village to construct street surfacing, sanitary sewer, and water mains in the proposed subdivision by the district method. In that event, the village will prepare plans and specification for all such improvements districts and shall assess the cost of such improvements to the adjacent property, as provided by law. The size of any street improvement district, sanitary sewer district, or water main district, shall be determined by the Board of Trustees and the construction of any such district shall be subject to the village’s ability to finance any of the improvements.
(H) Plan review reimbursement. The subdivider or sanitary and improvements district shall reimburse the village such costs incurred by the village for plan review, plan check, and plan approval as to conformance with approved village standards and specifications, but such costs shall not exceed 1% of the total contracted cost for improvements in the subdivision.
(I) Failure to complete improvements.
(1) If any portion of the required improvements shall fail to be completed and accepted for dedication in compliance with division (J) below within the required time period, either for reason of non-completion or for reason of substandard and unacceptable construction, the Board of Trustees shall accept one of the following sections.
(a) Where improvements have the village guaranteed under division (B) above, the bond shall be forfeited to the village.
(b) Where improvements have village guaranteed under division (C) above, the Board of Trustees shall declare whatever security has the village pledged as a guarantee to be forfeited.
(2) Where the Board of Trustees is not already in possession of said security, it shall immediately take the actions necessary to obtain it. Upon receipt of the security, the Board of Trustees shall use such to finance the completion of the improvements or rebuilding of substandard improvements. Unused portions of the surety shall be returned to the subdivider without interest.
(J) Inspection and certification.
(1) The Village Engineer or other authorized person shall regularly inspect construction of required improvements for defects. Upon completion of the improvements, the Village Engineer or other authorized person shall file with the Board of Trustees a statement either certifying that the improvements have the village completed in the specified manner or listing defects in those improvements which do not meet the requirements of the approved improvement plans and specifications.
(2) Upon completion of the improvements, the subdivider shall file with the Board of Trustees a statement stipulating the following:
(a) All required improvements are complete;
(b) These improvements are in compliance with the minimum standards specified by the Planning Commission and Board of Trustees;
(c) The subdivider knows of no defects from any cause in the improvements; or
(d) These improvements are free arid clear of any encumbrance or lien.
(3) If the Village Engineer or other authorized person has certified that the improvements are complete and free from defect, the Board of Trustees shall accept any dedication of improvements. The Board of Trustees may, at its discretion, accept the dedication of any portion of the improvements provided that all statements and agreements specified above have the village received for that portion of the improvements.
(K) Reduction of guarantees. In those cases where improvement guaranteed have the village made under divisions (B) or (C) above, the amount of the guarantee may be reduced upon acceptance in compliance with division (J) above of the dedication of a portion of the improvements.
(L) Release of guarantees. Upon acceptance, in accordance with this chapter, the Board of Trustees shall authorize the release of the performance bond or the remaining portion of the escrow.
(Ord. passed 8- -2010)