Before approving any subdivision or land development
plan for recording, the Board of Supervisors shall require that the
Township be assured (by means of a proper development agreement and
performance guarantee) that the improvements required by this chapter
and the improvements appearing on the plan will be installed in strict
accordance with the standards and specifications of this chapter.
The performance guarantee for completion of
required improvements shall meet the following requirements:
A. Security.
(1) The guarantee shall be secured by the credit of any
of the following:
(a)
An irrevocable and unconditional letter of credit
of a federal or commonwealth chartered lending institution;
(b)
A restrictive or escrow account in a federal
or commonwealth chartered lending institution; or
(c)
Such other financial security approved by the
Board of Supervisors (which approval shall not be unreasonably withheld).
(2) Such bond or other security shall provide for, and secure to the public, the completion of any improvements which may be required within one year of the date fixed in the development schedule (see §
212-30G) for the completion of such improvements.
(3) Such financial security shall be posted with a bonding
company or federal or commonwealth chartered lending institution chosen
by the party posting the financial security, provided said bonding
company or lending institution is authorized to conduct such business
within the commonwealth.
B. Amount.
(1) The amount of security to be posted for the completion
of the required improvements shall be equal to 110% of the cost of
completion estimated by the Township Engineer and approved by the
Township, as of 90 days following the date scheduled for completion
by the developer. The Township may grant adjustments to the amount
of security, on an annual basis, by comparing the actual cost of the
improvements which have been completed and the Township Engineer’s
estimated cost for completion of the remaining improvements as of
the expiration of the 90th day after either
the original date scheduled for completion or a rescheduled date of
completion. Subsequent to said adjustment, the Township may require
the developer to post additional security in order to assure that
the financial security equals 110%, together with an extension agreement
extending the time for completion.
(2) 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
shall be increased by 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 bidding procedure.
C. Multiyear or multistage development. In the case where
development is projected over a period of years, the Board of Supervisors
may authorize submission of final plats by section or stages of development
subject to such requirements or guarantees as to improvements in future
sections or stages of development as it finds essential for the protection
of any finally approved section of the development.