In lieu of requiring the completion, installation and dedication of all improvements prior to final plat approval, the county may enter into an agreement with the subdivider whereby the subdivider shall agree to complete all required improvements. Once all parties sign the said articles of agreement and the security required herein is provided, the final plat may be approved by the Planning Board, if all other requirements of this chapter are met. To secure this agreement, the subdivider shall provide, subject to the approval of the County Attorney and Finance Director, either one, or a combination of the following performance guarantees not exceeding 1.25 times the reasonably estimated cost of completion at the time the performance guarantee is issued as provided herein:
(A) Surety performance bond(s). The subdivider shall obtain a performance bond(s) issued by any company authorized to do business in North Carolina. The bonds shall be payable to the county and shall be in an amount equal to 1.25 times the entire costs, as estimated by the subdivider and approved by the Planning Board, of installing all required improvements. The duration of the bond(s) shall be until such time as the improvements are completed or one year.
(B) Cash, letter of credit, or equivalent security. The subdivider shall deposit cash, an irrevocable letter of credit issued by any financial institution licensed to do business in North Carolina, or other instrument readily convertible into cash at face value either with the county or in escrow with a financial institution designated as an official depository of the county. The use of any instrument other than cash or letter of credit shall be subject to the approval of the County Attorney and Finance Officer. The amount of deposit shall be equal 1.25 times the reasonably estimated costs, as estimated by the subdivider and approved by the Planning Board, of installing all required improvements. If cash or other instrument is deposited in escrow with a financial institution as provided above, then the subdivider shall file with the Finance Officer, an agreement between the financial institution and himself guaranteeing the following:
(1) That said escrow account shall be held in trust until released by the county and may not be used or pledged by the subdivider in any other matter during the term of the escrow; and
(2) That in case of a failure on the part of the developer to complete said improvements, the financial institution shall upon notification by the Planning Board or designee, and submission by the Planning Board to the financial institution of an engineer’s estimate of the amount needed to complete the improvements, immediately either pay to the county the funds estimated to complete the improvement, up to the full balance of the escrow account, or deliver to the county any other instruments fully endorsed or otherwise made payable to in full to the county.
(Ord. passed 6-7-2021)