This Ordinance applies only where all of the following requirements are met:
(A) A subdivision of land achieved final plat approval based on the posting of financial guarantees in lieu of completing required public infrastructure; and
(B) A financial guarantee was issued by a financial institution that has failed and been closed and the FDIC, as receiver, has disaffirmed and repudiated such financial guarantee(s); and
(C) The developer has failed or refused to provide a replacement financial guarantee(s) or to complete such required public infrastructure; and
(D) The developer sold and conveyed lots to third parties prior to the date on which the Village was notified by the FDIC that the financial guarantees were disaffirmed and repudiated ('Notification Date'); and
(E) Sufficient infrastructure has been installed by the developer in such phase or phases such that acceptable access is provided and adequate utilities are installed for fire protection, potable water and sewer service. This shall be determined by the village engineer and the fire marshal.
If all of the requirements set forth above are met, then, in such developments or phases thereof, lot owners who purchased lots before the notification date wishing to build new heated square footage or additions of heated square footage may provide a substitute financial guarantee (SFG) on a per lot basis. The SFG shall be determined by Council based on the amount of the repudiated letters of credit issued for phase of development and the number of undeveloped lots in that phase.
Once the SFG is determined, the Village may issue a building permit upon receipt of the SFG. Certificates of occupancy shall not be withheld by the Village based on incomplete public infrastructure or the failure to provide or maintain a financial guarantee if a SFG was provided for such lot, although other PDO requirements will continue to apply.
Half of the SFG will be collected at or prior to issuance of a building permit and half will be collected prior to the issuance of a certificate of occupancy. Such SFG shall be maintained by the Village and shall be used by the Village to complete the infrastructure in that particular phase of the subdivision. In the event the infrastructure in that phase of the development is completed by the developer or their successor without cost to the Village, or in the event the Village completes the infrastructure and discovers that it does not need all of the SFG funds provided for, the Village shall refund a proportionate share of such SFG's not needed to the persons who provided them.
This regulation shall not obligate the Village to complete public infrastructure for which SFG's have been provided until such time as adequate funds exist to complete the public infrastructure, although the Village, in its sole discretion, may undertake such completion at any time.
The Village reserves the right to transfer these funds to a third party to ensure completion and acceptance by the Village.
(Ord. 14-35, passed 09-24-2014)