(A) Any owner or subdivider filing an application for approval of a final plat shall submit a statement of agreement that the land improvements as required of this chapter shall be completed by the owner or subdivider in accordance with plans and specifications approved by the Village Engineer and the Village Board, and all inspection fees referred to in this chapter shall be paid as required. One set of plans and specifications showing the improvements, as included, shall be filed with the Village Clerk within two years following the approval of the final plat by the Village Board.
(B) To ensure completion of all required land improvements development security in the sum of 125% of the cost of the improvements must be submitted.
(C) The development security referred to in division (B) above shall be posted with the village prior to Village Board approval of any final plat of subdivision or any final development plan. From time to time, the owner, developer, or subdivider, as the case may be, may request a reduction of the amount of the letter of credit to reflect progress in the completion of the public improvements secured thereby or progress in the performance of such other obligations as may be secured thereby. Such a request may be made by filing the following documents with the Village Manager:
(1) A request for the reduction certified to the Director of Community Development by the project engineer stating that the work has been completed in substantial conformance with the approved plans and specifications therefor and specifying the amount of the reduction then being sought, in such form as may be required from time to time by the Director of Community Development;
(2) A new or substitute development security for the public improvements in question or the other obligations secured, in a principal amount that reflects the requested amount of the reduction;
(3) The estimate of the Village Engineer stating the estimated cost to complete the public improvements not yet completed and to perform the remainder of any other obligations to be secured thereby which have not then been performed;
(4) Evidence satisfactory to the Village Attorney that the cost of the public improvements then constructed and the cost of any other obligations then performed and secured by said development security has actually been paid or that such payment has been adequately secured; and
(5) "As-built" plans for the public improvements then completed in such formats as may be required by the Director of Community Development.
The foregoing documentation shall be reviewed by the Village Engineer, who may recommend approval or denial of the requested reduction in the amount of the development security to the Village Board, but no reduction in any amount of any development security shall be requested by any owner, developer, or subdivider recommended for approval by the Village Engineer or ultimately approved by the Village Board which would reduce the then-remaining principal balance of said development security to an amount less than the total remaining cost to complete the public improvements secured thereby or to complete the performance of such other obligations as may be secured thereby, plus an amount equal to 25% of the original principal balance of the development security as it existed prior to the request or approval of the initial reduction thereof. In the event that any reduction of any development security shall be approved by the Village Board, no such reduction shall become effective in any event until such time as a new or substitute development security reflecting the reduction is received by the village, and until such receipt the prior existing development security shall remain in full force and effect and at that principal amount which existed immediately prior to the approval of the reduction in question by the Village Board.
(D) The form of development security shall be approved by the Village Attorney and Village Engineer.
(E) A required development security shall not be canceled except with the consent of the Village Board.
(F) Guarantees as set forth in this section shall not be required for subdivisions located in the unincorporated areas within one and one-half miles beyond the village limits or in those areas so located but declared to be the responsibility of another municipality as part of an approved boundary line agreement where there is evidence that agreements are entered into between the owner or subdivider and this county, except that for public improvement within the unincorporated areas within one and one-half miles beyond the village limits, and not relegated to another municipality as part of an approved boundary line agreement, where the village standards of public improvements are of higher quality than county standards, such agreements may be required by the village.
(G) The Village Clerk shall not certify the approval of the Village Board of the final plat until the required bond, deposit, or other guarantee has been filed as required by this section.
(H) Sample irrevocable letter of credit:
(On Bank/Issuer Letterhead)
BENEFICIARY: Village of Romeoville APPLICANT:
1050 W. Romeo Road
Romeoville, Illinois 60446
DATE: NUMBER:
EXPIRATION: [Not less than two years
from date first above named] PRINCIPAL AMOUNT:
Ladies and Gentlemen:
We hereby issue this Irrevocable Letter of Credit (the "Credit") in your favor up to the aggregate amount of U.S. [insert dollar amount equal to one hundred and twenty-five percent (125%) of the costs of completing all public improvements required of the developer or subdivider together with the costs of performing all other obligations for which financial security is required under this Chapter, or under the terms of any relevant annexation agreement or performance guarantee agreement].
This Credit is issued to secure the completion and installation of [list all public improvements required of the developer or subdivider, either specifically, by reference to any relevant annexation agreement or performance guarantee agreement, or by citation to pertinent sections of this Chapter] and the performance of [list all other obligations of the developer or subdivider for which financial security is required under this Chapter, or under the terms of any relevant annexation agreement or performance guarantee agreement], all on or before [insert a date which is at least ninety (90) days before the expiration date of the Credit].
We engage with you that we will fully honor any draft drawn at sight under this Credit provided that:
1. Such draft is presented at our counters on or before [the above-stated expiration date], or before such other extended expiration date as may result from any automatic renewal of this Credit as hereinafter set forth;
2. Such draft is accompanied by this original Credit;
3. Such draft is marked "Drawn under [Issuer's] Irrevocable Letter of Credit No. dated [insert date first above named];
4. Such draft is accompanied by either (a) a statement signed by the Village President and the Village Engineer certifying that as of the date of such draft, the [developer or subdivider] has failed or defaulted in [the completion and installation of all public improvements required of the developer or subdivider, and/or the performance of any other obligation for which financial security is required under this Chapter, or under the terms of any relevant annexation agreement or performance guarantee agreement], or (b) a statement signed by the Village Assistant Manager certifying that the Village of Romeoville has received written notice of [Issuer's] election not to renew this Credit for an additional one (1) year term as hereinafter set forth.
The principal amount of this Credit shall automatically be deemed to be reduced by the amount of any drafts drawn hereunder and honored by [Issuer]. Furthermore, the principal amount of this Credit may from time to time be reduced to such amounts as may be approved in writing by the Village of Romeoville Board of Trustees pursuant to the written recommendation of the Village Engineer, provided, however, that neither the issuance of this Credit nor any such reduction shall constitute any waiver of any rights that the Village of Romeoville may have against [developer or subdivider], nor shall the issuance of this Credit or any such reduction serve to limit, modify or otherwise excuse the [developer or subdivider's] performance of any other obligation owed to the Village of Romeoville. However, unless and until the Village Board of Trustees accepts in writing and pursuant to the written recommendation of the Village Engineer [the completion and installation of all public improvements required of the developer or subdivider, and/or the performance of any other obligation for which financial security is required under this Chapter, or under the terms of any relevant annexation agreement or performance guarantee agreement], in no event shall the Village of Romeoville Board of Trustees and Village Engineer be obligated to issue or recommend in writing any reduction of this Credit which would reduce the then-current principal balance of this Credit to an amount which is less than the sum of (a) ten percent (10%) of the original principal amount of this Credit, and (b) the Village Engineer's estimate of the cost necessary to [complete the construction and installation of all public improvements required of the developer or subdivider, and/or the performance of any other obligation for which financial security is required under this Chapter, or under the terms of any relevant annexation agreement or performance guarantee agreement].
Notwithstanding anything herein to the contrary, this Credit shall automatically renew itself for successive terms of one (1) year from the above-stated or any future expiration date and without other amendment or modification hereto unless and until the Village Assistant Manager of the Village of Romeoville receives, not less than ninety (90) days before the above-stated or any future expiration date, written notice from [Issuer], via registered mail, return receipt requested or via nationally recognized overnight courier, that [Issuer] elects not to renew this Credit for any such additional successive terms. All drafts drawn at sight hereunder during any such additional successive term shall be fully honored by [Issuer] when presented at our counters in accordance with the terms hereinabove set forth. In the event that the Village Assistant Manager of the Village of Romeoville receives such a notice from the [Issuer] prior to the expiration of the then-current term of this Credit, then the Village may at any time thereafter within such then-current term of this Credit draw its draft on sight for the remaining balance of this Credit in accordance with the terms and conditions hereinabove set forth.
In the event that [Issuer] fails to honor any draft of the Village of Romeoville drawn under this Credit and in conformity with its terms, [Issuer] shall pay to the Village of Romeoville, in addition to any and all damages resulting from such dishonor, all attorney, expert witness fees, professional service fees, court costs incurred by the Village of Romeoville in connection with its efforts to obtain the honor of such draft, regardless of whether or not litigation ensues in relation thereto.
This Credit is subject to the provisions of Article 5 of the Illinois Uniform Commercial Code, 810 ILCS 5/5-101 et seq. Furthermore, this Credit is subject to the then-current Uniform Customs and Practice for Documentary Credits (the "UCP"), International Chamber of Commerce Publication No. 600, as revised from time to time, except to the extent that said UCP conflicts with said Article 5, or with an express term of this Credit.
Very truly yours,
[Issuer]
BY:
ITS:
ATTEST:
ITS:
(Ord. 2313-95, passed 2-1-95; Am. Ord. 36-01, passed 2-21-01; Am. Ord. 12-1014, passed 11-7-12; Am. Ord. 14-1128, passed 7-16-14)