Before approving any final subdivision plan, the governing body shall require a written agreement, and appropriate financial surety as specified in §
161-44 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. 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.
(1) 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.
(2) 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.
[1]
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:
[a] 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,
[b] 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.
[1]
When property is offered as an improvement guarantee, the developer
shall:
[a] 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;
[b] 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,
[c] 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 §
161-44.
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.