The performance guaranty for completion of required
improvements shall meet the following requirements:
A. Security.
(1) The guaranty shall be secured by 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.
(c)
Such other financial security approved by the
city (which approval shall not be unreasonably withheld), but not
including a second or third mortgage on unimproved lands.
(2) Such approved security shall provide for, and secure
to the public, the completion of any improvements which may be required
within the date fixed in the development schedule for the completion
of such improvements. It is the responsibility of the developer to
ensure that such security remains in effect during the entire time
period of construction of improvements. The city staff may withhold
or suspend the issuance of permits if such security lapses.
(3) Such financial security shall be posted with an approved
institution or entity authorized to conduct such business within Pennsylvania.
(a)
The Mayor may require that evidence be provided
that such institution or entity has adequate and sufficiently secure
assets to cover the security.
(b)
The city shall be the authorized signatory on
any account in which the escrow funds are held.
B. Amount.
(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 (see §
423-43).
(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 City Engineer, within the
arbitration process permitted by the Pennsylvania Municipalities Planning
Code.
(3) Inflation. 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 100% 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
may also be required to include an additional 5% of the estimated
cost of completion of the work to guaranty payment of inspection fees
and related engineering costs. In any case, the applicant shall compensate
the city for all actual costs to the city of the inspections and related
engineering, based upon established hourly rates that include compensation
for employee benefits. If such costs are higher than the five-percent
security, the applicant shall also fund the difference. If such costs
are lower than the five-percent security, then the remaining funds
shall be released by the city.
C. Multiyear or multistage development. In the case where
development is projected over a period of years, the Planning Commission
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. Such phasing
may also be approved through a development agreement.