(a) Types of Guarantees. The developer may execute financial guarantees and shall file such financial guarantees with the City concurrently with the application for approval of the final plat or development plan. Such guarantees may be in the form of a performance or surety bond, a certified check, or any other type of surety approved by the City.
(b) Amount of Guarantee. All improvements required shall be constructed prior to the granting of the final plat approval by the Planning and Zoning Commission. In lieu thereof, the subdivider or applicant may furnish the City with a surety bond, a cashier’s or certified check, a pledge agreement with a passbook or any other method (collectively referred to hereinafter as “instrument(s)” or “instrument(s) of guarantee”) approved by the Law Director to secure the ultimate installation and required maintenance of the improvements. The amount of the guarantee shall be equal to the estimated construction costs plus an amount equal to fifteen percent (15%) of the estimated construction costs. The construction costs shall be determined and prepared by a registered Professional Engineer and stamped by the Engineer. Such costs shall be submitted and approved by the City Engineer. If the instrument(s) are furnished by a partnership, corporation or other entity, the instrument(s) shall be personally guaranteed by the partners in the case of a partnership, by the shareholders owing at least fifty (50%) of the shares in the case of a corporation, and by the owners, administrators, or other similar responsible persons in the case of any other entity.
The instrument(s) of guarantee shall guarantee to the City that such improvements shall be constructed and completed in accordance with the plans in a satisfactory manner within one (1) year from the date of final plat approval. Such instrument(s) of guarantee shall be valid for a period of three (3) years from the date of final plat approval, shall be approved by the Law Director as to form, and shall be made payable to and enforceable by the City and shall provide that the subdivider and/or applicant, their heirs, successors, assigns, agents, employees or subcontractors shall comply with all applicable terms, conditions, provisions and requirements of this Code. The instrument(s) of guarantee shall require and authorize the financial institution, surety company or other entity that issues the guarantee to provide to the City, prior to distribution, notice of intent to disburse funds represented by the instrument(s) of guarantee and to provide the City, upon request, with a balance of funds represented by the instrument(s) of guarantee.
(c) Terms. The terms of such guarantees shall be determined by the Law Director with confirmation by Council. Bonds shall be executed by the applicant as principal with a surety company authorized to do business in the State of Ohio.
(1) Subject to review and written approval by the City Engineer, the Developer and/or Applicant, and the Engineer representing the Developer and/or Applicant, a portion of the funds deposited for such improvements may be released as such improvements are completed, less a ten percent (10%) retainage. Notice of such release shall be provided, in writing, to the City’s Finance Director. In accordance with such notice, the Finance Director shall compile a balance of funds remaining in the instrument(s) of guarantee.
(2) When any portion of the improvements has, upon inspection by the City Engineer, been found satisfactorily completed, a reduction in the bond(s) or partial withdrawal of funds equal to the estimated costs of such completed improvements may be authorized, provided however, all other requirements of this section have been properly executed.
(3) The retainage may be returned after the acceptance date of the project, but only with the prior written approval of the City Engineer, indicating that the City Engineer is satisfied that all construction required of the Developer and/or applicant has been completed in accordance with the requirements of the City’s Codified Ordinances and in conformance with the approved plans and specifications, along with satisfactory evidence of payment in full of all contractors, subcontractors, suppliers of materials, engineers, surveyors, and all inspection fees, engineering fees, legal fees, or other fees incurred by the City as a result of the installation of the improvements by the Developer and/or Applicant. Otherwise, such retainage shall be retained until such construction has been completed to the satisfaction of the City Engineer.
(d) Staged Development. The developer may apply for final approval and recording of only a portion of the entire subdivision or development. Under such a staged development, the installation of required improvements and sale or lease of lots may proceed only on that portion of the subdivision which has been approved and recorded.
(Ord. 2006-35. Passed 5-25-06.)