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 Justin
 Code of Ordinances
 Chapter 42. SUBDIVISIONS
 Article VI. REQUIREMENTS FOR CONSTRUCTION

  § 42-156. Alternative to completion of improvements.  

Latest version.

  • In lieu of requiring the completion of all improvements prior to the approval and recording of the final plat, the city council may, at its discretion, enter in to a contract with the subdivider whereby the subdivider shall provide one of the following guarantees:

    (1)

    The applicant shall post a payment and performance bond, or an irrevocable letter of credit payable to the city in an amount equal to 130 percent of the estimated cost. This amount shall include the city's cost of administering the completion of the improvement in the event the subdivider defaults as provided herein. The security shall be deposited with the city or in escrow with a bank at the option of the city. Such bond or letter of credit shall comply with all statutory requirements and shall be satisfactory to the city attorney as to form, sufficiency, and manner of execution as set forth in these regulations. The period within which required improvements must be completed shall be specified by the planning and zoning commission and shall be incorporated in the bond or letter of credit. In those cases where a bond or letter of credit has been posted and the required improvements have not been installed within the terms of the bond or letter of credit, the governmental body may thereupon declare the bond or letter of credit to be in default and require that all of the improvements be installed.

    (2)

    If a bank escrow is chosen, or if a letter of credit is submitted, the subdivider shall file with the city an agreement between the bank and the subdivider guaranteeing the following:

    a.

    That the funds of the escrow account shall be held in trust until released by the city and may not be used or pledged by the subdivider as security in any other matter during that period; and

    b.

    That in the case of a default on the part of the subdivider, the bank shall immediately make the escrowed funds available to the city for use in the completion of the required improvements.

    (3)

    In those cases where improvement guarantees have been made under the provisions of this section, the amount of the required guarantee may be reduced by the city upon acceptance of the dedicated portion of the required improvements. The amount of the reduction shall not exceed the percentage which the newly accepted improvements are of all originally required improvements. In no case, however, shall the guarantee be reduced to less than 15 percent of the original amount. Upon acceptance of the dedication of the final portion of improvements, the city shall authorize the release of the remaining portion of the improvement guarantee.

(Code 1994, ch. 9, art. 40; Ord. No. 248, exh. A(art. 40), 3-24-1997)