Before approving any final subdivision plan, the Governing Body shall require a written agreement, and appropriate financial surety as specified in §
178-47 hereinbelow, that necessary grading, paving and street improvements, sidewalks, street lights, fire hydrants, water mains, storm sewers and sanitary sewers, as may be required by the Township, shall be installed by the developer in strict accordance with the design standards and specifications of the Township, within a specified time period.
The Governing Body shall insure, through receipt
of certificates of compliance submitted and attested by the Township
Engineer, that the required improvements have been installed according
to the specifications of the final plan, or alternately require the
posting of adequate surety to cover the cost for such improvements.
The Governing Body may also insure, through the posting of bonds or
other surety acceptable to the Township, the maintenance of existing
public rights-of-way and road surfaces which are in any manner utilized
for transport or related purposes during development and construction
associated with subdivision development. The Governing Body shall
specify one of the following alternatives, or such other alternatives
as may be acceptable, for guaranteeing compliance with the requirements
of this section. Decision of which alternative shall be required is
that of the Governing Body. Final approval of a plan may not be granted
by the Governing Body until the surety required is fully provided.
In any event, the required surety shall be secured along with the
written agreement prior to any construction or related activity.
A. Completion of improvements prior to final approval.
Prior to final plan approval, the developer shall complete, in a manner
satisfactory to the Governing Body and the Township Engineer, all
improvements required in these regulations as specified in the final
subdivision plan, and as approved by the Governing Body, and shall
dedicate the same to the Township in accordance with these regulations.
B. Guarantee of future performance.
(1) In lieu of requiring the completion of all improvements
prior to final plan approval, the Township may, at its discretion,
enter into a contract with the developer whereby the developer shall
guarantee to complete all improvements required by this chapter, or
otherwise specified by the Governing Body in a manner satisfactory
to the Governing Body.
(2) When requested by the developer in order to facilitate
financing, the Governing Body shall furnish the developer with a signed
copy of a resolution indicating approval of the final plat contingent
upon the developer obtaining a satisfactory financial security. The
final plat or record plan shall not be signed nor recorded until the
financial improvements agreement is executed. The resolution or letter
of contingent approval shall expire and be deemed to be revoked if
the financial security agreement is not executed within 90 days, unless
a written extension is granted by the Governing Body; such extension
shall not be unreasonably withheld and shall be placed in writing
at the request of the developer.
(3) To secure this contract, the developer shall provide,
subject to the approval of the Governing Body, one of the following
guarantees:
(a)
Surety bond. The developer shall obtain a security
bond from a surety bonding company authorized to do business in the
Commonwealth of Pennsylvania. The bond shall be payable to the Township.
The amount of financial security shall be equal to 110% of the cost
of the required improvements as estimated by the developer and approved
by the Township Engineer. The duration of the bond shall be until
such time as the improvements are accepted by the Township in accordance
with the requirements of this chapter.
(b)
Escrow account. The developer shall deposit
cash, or other instrument readily convertible into cash at face value,
either with the Township or in escrow with a bank. The use of any
instrument other than cash, and in the case of an escrow account,
the bank with which the funds are to be deposited shall be subject
to the approval of the Governing Body. The amount of financial security
shall be equal to 110% of the cost of the required improvements as
estimated by the developer and approved by the Township Engineer.
In case of an escrow account, the developer shall file with the Governing
Body an agreement between the financial bank and himself guaranteeing
the following:
[1]
That the funds of said escrow account shall
be held in trust until released by the Governing Body and may not
be used or pledged by the developer as security in any other matter
during the period; and,
[2]
That in the case of a failure on the part of
the developer to complete said improvements, the bank shall immediately
make the funds in said account available to the Township for use in
the completion of those improvements.
(c)
Property escrow. The developer shall offer as
a guarantee, land or other property, including corporate stocks or
bonds. The value of any such property shall be at least equal to 110%
of the cost, as estimated by the developer and approved by the Township
Engineer, of the installation of all contracted improvements. Property
value shall be determined by means acceptable to the Township and
shall take into account the likelihood of a decline in the value of
said property during the guarantee period. The Governing Body shall
retain the right to reject the use of any property when it believes
that the property will be unusually difficult to sell, or for other
reasons such as will inhibit the Township from exchanging the property
for a sufficient amount of money to complete the required improvements.
When property is offered as an improvement guarantee, the developer
shall:
[1]
Execute an agreement with the trustee when it
is not the Governing Body, instructing the trust to release the property
to the Township in the case of default. The agreement shall also state
that the property may be released only upon consent of the Governing
Body. The agreement shall be placed on file with the Township Secretary;
[2]
File with the Governing Body an affidavit affirming
that the property to be used as a guarantee is free and clear of any
encumbrances or liens at the time it is to be put in trust; and,
[3]
Execute and file with the Governing Body an
agreement stating that the property to be placed in trust as an improvement
guarantee will not be used for any other purpose or pledged as a security
in any other matter until it is released by the Governing Body.
(d)
Extension of guarantees. If the developer requires more than one year from the date of posting financial security to complete the required improvements, the amount of security may be increased to assure that financial security equals 110%. Any additional security shall be posted by the developer in accordance with §
178-47.
If any road or any drainage facility in connection
therewith shall be opened, constructed or dedicated for public use
or travel, except in strict accordance with plans approved and recorded
as herein provided, neither the Governing Body nor any public authority
shall place, construct or operate any sewer, drain, water pipe or
other facility, or do any work of any kind in or upon such road; and
neither the Governing Body nor any other public authority shall have
responsibility of any kind with respect to any such road or drainage
facility, notwithstanding any use of the same by the public; provided,
however, that nothing herein contained shall prevent the laying of
trunk sewers, drains, water or gas mains, if required, by engineering
necessity for the accommodating of other territory.