(A) Prior to approval of the final plat, the subdivider shall provide one of the following:
(1) A corporate surety bond equal to 100% of the cost of the improvement; and
(2) A cash deposit in the sum of 100% of the cost of the improvement.
(B) For purposes of this section, COST OF THE IMPROVEMENT is defined as an amount equal to the approved cost estimate of the project, including reasonable inspection fees to be borne by the subdivider necessary to conform to the requirements established by this chapter.
(C) The Village Attorney shall approve, as the case may be, the following:
(1) The corporate surety and the terms and conditions including, but not limited, to the specific language of the bond;
(2) The depository and escrow agreement in the event a cash deposit is made; and
(3) The bank, or other financial institution, and terms and conditions of the irrevocable letter of credit.
(D) Whichever manner of providing guarantee is chosen by the subdivider, the exact terms and conditions of same will be drafted and executed to accomplish the following:
(1) The village will have sole authority to determine if the construction of the improvements is being accomplished in conformity with the requirements of this chapter;
(2) In the event the construction of the improvements is not being accomplished in conformity with the requirements of this chapter, all or such part of the bond, cash deposit or letter of credit, as the village deems appropriate, may be immediately forfeited and paid to the village; and
(3) If the subdivider disputes the decision of the village as to forfeiture, its sole remedy shall be to institute litigation as it deems appropriate.
(E) Up to 90% of the guarantee may be released in portions from time to time as construction is completed and conditionally approved.
(F) Upon completion and conditional approval of all subdivision improvements, the subdivider shall provide a two-year written guarantee of the improvements and shall provide a financial guarantee in a form and substance to be approved by the Village Board in one of the following ways:
(1) Maintain 10% of the existing guarantee in force; or
(2) Provide a new guarantee for 10% of the original amount upon release of the original guarantee.
(G) Upon final acceptance of the subdivision improvements by the Village Engineer, the Village Board shall release the guarantee.
(2009 Code, § 35-3-6) (Ord. 91-4, passed 5-6-1991; Ord. 05-08, passed 11-14-2005)