(A) Performance Guarantee: In lieu of prior construction of the improvements required by this Ordinance, the sub-divider shall guarantee that such improvements will be carried out according to Village specifications at his/her expense. Additionally, the sub-divider shall submit a schedule for the completion of the remaining infrastructure improvements.
(B) Types of Guarantees: Such guarantee may be in the form of a surety bond made by a surety company licensed to do business in North Carolina or certified check drawn in favor of the Village, or cash deposited with the Village, or a letter of credit from a local bank. Such guarantees shall be in an amount of not less than one hundred twenty-five (125) percent of the cost of the construction of the required improvements as estimated by the Village Engineer.
(C) Time Limit: Improvements must be completed by the developer within five (5) years of the approval of the performance guarantee. The applicable guarantee shall be renewed at least fifteen (15) days prior to expiration or be self-renewing. Failure to renew the performance guarantee fifteen (15) days prior to the expiration shall be considered defaulting by the developer. Any renewal of the performance guarantee shall be done in the same fashion as the original performance guarantee.
(D) Default by Developer
(1) Upon default, meaning failure on the part of the developer or surety to make timely completion of the required improvements, the Village may require the developer, the surety, or the financial institution holding the escrow account to pay all or any portion of the bond or escrow account fund to the Village.
(2) Upon payment, the Village, in its discretion, may expend such portion of the funds as it deems necessary to complete all or any portion of the required improvements.
(E) Release of Guarantee: The Village Manager may release a portion of any security posted as the improvements are completed and recommended for approval by the Village Engineer. Such funds shall be released within thirty (30) days after approval of all improvements by the Village Engineer.
(F) As-built drawings required. As a condition of release of any Guarantee, as-built drawings and plans of all water system, sewer system, streets, sidewalks and storm drainage system facilities shall be prepared by the subdivider and submitted to the Village Engineer and Moore County Utilities at the time of request for Final Plat approval or release of any surety for required improvements, whichever comes later. These plans should show all easements and/or rights-of-way to demonstrate that the required improvements and facilities are properly placed. These drawings need not be placed on the final plat. Electronic copies of Final Plats, AutoCAD compatible, shall be submitted with all as-built plans if so required by this Ordinance, the Engineering Standards Manual or Moore County Utilities.
(G) Village Attorney Review. All instruments for performance guarantees shall be reviewed by the Village Attorney and a recommendation regarding their sufficiency made to the Village Manager.
(H) Note on plat. There shall be language placed on the final plat that states that all of the required improvements have not been installed for the development and that the lots being platted may not be buildable until such times as all required improvements have been made. The total amount of the performance guarantee shall also be placed on the plat.
(Ord. 21-12, passed 07-27-2021)