The performance guaranty for completion of required improvements
shall meet the following requirements:
A. Security.
(1) The guaranty shall be secured by the credit of any of the following:
(a)
An irrevocable and unconditional letter of credit of a federal
or state chartered lending institution;
(b)
A restrictive or escrow account in a federal or state chartered
lending institution; or
(c)
Such other financial security approved by the Board of Commissioners,
but not including a second or third mortgage on the unimproved lands.
(2) Such approved security shall provide for, and secure to the public,
the completion of any improvements which may be required by the date
fixed in the development agreement for the completion of such improvements.
(3) Such financial security shall be posted with a federally issued or
state chartered lending institution chosen by the party posting the
financial security, or such other approved entity, provided such institution
or entity is authorized to conduct such business within the state.
(a)
The Board of Commissioners may require that evidence be provided
that such institution or entity has sufficiently adequate and secure
assets to cover the security.
(b)
The Township shall be the authorized signatory on any account
in which the escrow funds are held.
B. Amount of security.
(1) The amount of financial security to be posted for the completion
of the required improvements shall be equal to 110% of the cost of
completion estimated as of 90 days following the date scheduled for
completion by the developer in the official development schedule and
within the process for increases to cover inflation as permitted by
the Pennsylvania Municipalities Planning Code.
(2) The cost of the improvements shall be established by an estimate
prepared by a Pennsylvania-registered professional engineer, which
shall be reviewed by the Township Engineer, within the arbitration
process permitted by the Pennsylvania Municipalities Planning Code.
(3) If the party posting the financial security requires more than one
year from the date of posting of the financial security to complete
the required improvements, the amount of financial security may be
increased by a maximum of an additional 10% for each one-year period
beyond the first anniversary date from posting of financial security
or to an amount not exceeding 110% of the cost of completing the required
improvements as reestablished on or about the expiration of the preceding
one-year period by using the above procedure.
(4) Inspection fees. The amount of financial security shall also include an additional 5% of the estimated cost of completion of the work to guarantee payment of inspection fees and related engineering costs. The funds needed for inspection of the improvements by the Township or the Township's representatives shall be funded in advance by the applicant through an escrow account. See §
192-8 of this chapter.
C. Multiyear or multistage development. In the case where development
is projected over a period of years, the Board of Commissioners may
authorize submission of final plans by phases/stages of development,
subject to such requirements or improvement guaranties concerning
future improvements as it finds necessary for the proper functioning
of each phase and for the eventual development as a whole.