(A) Where the required improvements have not been completed prior to the submission of the plat for final approval, the approval of the plat shall be subject to the subdivider guaranteeing the installation of the improvements by the posting of a performance or surety bond in sufficient amount to assure the completion of all required improvements at the time the plat is recorded. For any specific development, the type of performance guarantee shall be at the election of the person required to give the performance guarantee. For purposes of this section, all of the following shall apply with respect to performance guarantees.
(B) The guarantee of improvements shall mean a surety bond issued by any company authorized to do business in this state, a letter of credit issued by any financial institution licensed to do business in this state, or another form of guarantee that provides equivalent security to a surety bond or letter of credit.
(C) The performance guarantee shall be returned or released, as appropriate, in a timely manner upon the acknowledgment by the local government that the improvements for which the performance guarantee is being required are complete. If the improvements are not complete and the current performance guarantee is expiring, the performance guarantee shall be extended, or a new performance guarantee issued, for an additional period until such required improvements are complete. A developer shall demonstrate reasonable, good-faith progress toward completion of the required improvements that are the subject of the performance guarantee or any extension. The form of any extension shall remain at the election of the developer.
(D) The amount of the performance guarantee shall not exceed 125% of the reasonably estimated cost of completion at the time the performance guarantee is issued. Any extension of the performance guarantee necessary to complete required improvements shall not exceed 125% of the reasonably estimated cost of completion of the remaining incomplete improvements still outstanding at the time the extension is obtained.
(E) The performance guarantee shall only be used for completion of the required improvements and not for repairs or maintenance after completion.
(F) No person shall have or may claim any rights under or to any performance guarantee provided pursuant to this section or in the proceeds of any such performance guarantee other than the following:
(1) The local government to which such performance guarantee is provided.
(2) The developer at whose request or for whose benefit such performance guarantee is given.
(2009 Code, § 154.49) (Ord. passed 5-1-1972; Ord. passed 9-12-1995; Ord. 2021-Z-19, passed 6-22-2021)