(A) Prior to approval of the final plat, the developer shall provide one of the following:
(1) A corporate surety bond equal to 100% of the cost of the improvement;
(2) A cash deposit in the sum of 100% of the cost of the improvement; and
(3) An irrevocable letter of credit from a bank or other financial institution in an amount equal to 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 developer necessary to conform to the requirements established by this chapter.
(C) The Village Attorney must approve, as the case may be, the following:
(1) The corporate survey and the terms and conditions, including, but not limited to, the specific language of the bond; and
(2) The depository and escrow agreement in the event a cash deposit is made.
(D) Whichever manner of providing guarantee is chosen by the developer, the exact terms and conditions of same will be drafted and executed to accomplish the following.
(1) The Village Trustees 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.
(3) If the developer 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 development improvements, the developer 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 development improvements by the Village Engineer, the Village Board shall release the guarantee.
(2009 Code, § 41-3-6) (Ord. 10-09-01, passed
10-09-2001
)