A.
With submittal of the application for final plan approval,
the subdivider shall provide one of the following performance guaranties
for an amount adequate to cover the total construction costs of all
required improvements, taking into account the time span of the construction
schedule and the inflation rate for construction costs:
(1)
Either a certified check payable to the Town or a
savings account or certificate of deposit naming the Town as owner,
for the establishment of an escrow account;
(2)
A performance bond payable to the Town issued by a
surety company, approved by the municipal officers;
(3)
An irrevocable letter of credit (see Appendix B for
example) from a financial institution establishing funding for the
construction of the subdivision, from which the Town may draw if construction
is inadequate, approved by the municipal officers; or
(4)
An offer of conditional approval limiting the number
of units built or lots sold until all required improvements have been
constructed.
B.
The conditions and amount of the performance guaranty
shall be determined by the Board with the advice of the Town Engineer,
Road Commissioner, municipal officers and/or Town Attorney.
The performance guaranty shall contain a construction
schedule, cost estimates for each major phase of construction taking
into account inflation, provisions for inspections of each phase of
construction, provisions for the release of part or all of the performance
guaranty to the developer and a date after which the developer will
be in default and the Town shall have access to the funds to finish
construction.
A cash contribution to the establishment of
an escrow account shall be made by either a certified check made out
to the municipality, the direct deposit into a savings account or
the purchase of a certificate of deposit. For any account opened by
the subdivider, the municipality shall be named as owner or co-owner,
and the consent of the municipality shall be required for a withdrawal.
Any interest earned on the escrow account shall be returned to the
subdivider unless the municipality has found it necessary to draw
on the account, in which case the interest earned shall be proportionately
divided between the amount returned to the subdivider and the amount
withdrawn to complete the required improvements.
A performance bond shall detail the conditions
of the bond, the method for release of the bond or portions of the
bond to the subdivider and the procedures for collection by the municipality.
The bond documents shall specifically reference the subdivision for
which approval is sought.
An irrevocable letter of credit from a bank
or other lending institution shall indicate that funds have been set
aside for the construction of the subdivision and may not be used
for any other project or loan.
A.
The Board, at its discretion, may provide for the
subdivider to enter into a binding agreement with the municipality
in lieu of the other financial performance guaranties. Such an agreement
shall provide for approval of the final plan on the condition that
up to four lots may be sold or built upon until either:
(1)
It is certified by the Board, or its agent, that all
of the required improvements have been installed in accordance with
these regulations and the regulations of the appropriate utilities;
or
(2)
A performance guaranty, acceptable to the municipality,
is submitted in an amount necessary to cover the completion of the
required improvements at an amount adjusted for inflation and prorated
for the portions of the required improvements already installed.
The Board may approve plans to develop a major
subdivision in separate and distinct phases. This may be accomplished
by limiting final approval to those lots abutting that section of
the proposed subdivision street which is covered by a performance
guaranty. When development is phased, road construction shall commence
from an existing public way. Final approval of lots in subsequent
phases shall be given only upon satisfactory completion of all requirements
pertaining to previous phases.
Prior to the release of any part of the performance
guaranty, the Board shall determine to its satisfaction, in part upon
the report of the Town Engineer and whatever other agencies and departments
may be involved, that the proposed improvements meet or exceed the
design and construction requirements for that portion of the improvements
for which the release is requested.
If, upon inspection, the Town Engineer finds
that any of the required improvements have not been constructed in
accordance with the plans and specifications filed as part of the
application, he shall so report, in writing, to the Code Enforcement
Officer, the municipal officers, the Board and the subdivider or builder.
The municipal officers shall take any steps necessary to preserve
the Town's rights.
Where the subdivision streets are to remain
private roads, the following words shall appear on the recorded plan.
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"All roads in this subdivision shall remain
private roads to be maintained by the developer or the lot owners
and shall not be accepted or maintained by the Town."
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Performance guaranties shall be tendered for all improvements required by § 89-30 of these regulations, as well as any other improvements required by the Board.
