(a) The subdivider or developer shall execute financial guarantees and shall file such financial guarantees with the City prior to approval of a certificate of zoning approval or certification of a final plat, if the applicant does not propose to construct the required public improvements or private streets prior to receiving certification of the final plat or approval of the site plan or zoning. Such financial guarantee shall take any form allowed in Section 1125.07(g).
(b) The financial guarantee shall be an obligation for the faithful performance of any and all work and the construction and installation of all public improvements required to be done by the subdivider, together with all engineering and inspection costs and fees incurred by the City.
(c) When, in the judgment of the Director of Community Development, public improvements have been completed in accordance with the improvement plans as approved by City, City Council shall, at the recommendation of the Director of Community Development, accept such improvements and authorize the full or partial release of the financial guarantee.
(d) The terms of such financial guarantees shall be determined by the City's legal counsel, with confirmation by the Director of Community Development.
(e) Financial guarantees shall be made payable to the City of Sharonville and shall be acceptable to the Director of Community Development and the City's legal counsel.
(f) Incomplete public improvements that the Director of Community Development determines will constitute a safety hazard or maintenance issue, or will prevent the effective functioning of the public improvements, shall be required to be completed prior to the approval of a final plat.
(g) Types of Financial Guarantees. The following are the types of financial guarantees allowed by the City. The standards for each type of guarantee shall apply to any situation where a financial guarantee is required, regardless if it is related to a subdivision application or not.
(1) Irrevocable Letter of Credit. The following standards shall apply if an irrevocable letter of credit is utilized as a financial guarantee:
A. The subdivider shall provide an irrevocable letter of credit from a bank or other reputable institution or individual, subject to the approval of the City's legal counsel and Director of Community Development.
B. The letter shall be deposited with the City, and shall certify the following:
i. The creditor guarantees funds in an amount equal to the cost, as estimated in accordance with this section, for completion all required public improvements.
ii. In the case of failure on the part of the subdivider to complete the specified public improvements within the required time period, the creditor shall pay to the City immediately and without further action such funds as are necessary to finance the completion of those public improvements, up to the limit of credit stated in the letter.
iii. This irrevocable letter of credit may not be withdrawn or reduced in amount until released by the Director of Community Development in accordance with this chapter.
(2) Certified Check, Wire Transfer, Escrow, or Cash Deposit. The following standards shall apply if cash is utilized as a financial guarantee:
A. The subdivider shall provide a certified check, wire transfer, escrow to a third-party escrow account, or cash deposit for the amount of the guarantee, payable to the City of Sharonville.
B. If a third-party escrow account is to be established, the account shall be with a bank approved by the City's legal counsel and shall be in an account set up for the sole ownership of the City.
C. When the public improvements are complete, the City shall issue a check for the released amount based on this subsection.
D. The City shall not be responsible for paying interest for the period of time the City retains the guarantee.
(3) Bonds. The following standards shall apply if a bond is utilized as a financial guarantee:
A. A bond in the amount determined in accordance with this section shall be filed with the City of Sharonville.
B. The bond may be in the form of a surety bond or a cash bond of the kind approved by law for securing deposits of public money.
C. The bond shall be executed by the subdivider as principal, and if a surety bond, shall be executed by a corporation authorized to act as a surety under the laws of the State of Ohio.
D. The bond shall provide that it cannot be terminated or canceled without the approval of the City, and shall remain in force until such improvements have been accepted by City Council.
(Ord. 2022-22. Passed 5-10-22.)