User's Guide: This article contains specific provisions relating to required performance guarantees and how they will be administered.
A. 
With submittal of the application for final plan approval, the developer shall provide one of the following performance guarantees for an amount adequate to cover the total construction costs of all required improvements, taking into account the time span of the construction schedule and the inflation rate for construction costs:
(1) 
A certified check payable to the Town or a savings account passbook or certificate of deposit both naming the Town as owner, for the establishment of an escrow account;
(2) 
A performance bond payable to the Town issued by a surety company approved by the Board of Selectmen or Town Attorney;
(3) 
An irrevocable letter of credit from a financial institution establishing funding for the construction of the development, from which the Town may draw if construction is inadequate, approved by the Board of Selectmen or Town Attorney; or
(4) 
An offer of conditional approval limiting the number of units built or lots sold until all required improvements have been constructed.
B. 
The conditions and the amount of the performance guarantee shall be determined by the Board with the advice of the Town Engineer, Road Commissioner, Board of Selectmen and/or Town Attorney.
A. 
The performance guarantee shall contain the following:
(1) 
A construction schedule;
(2) 
Cost estimates for each major phase of construction taking into account inflation;
(3) 
Provisions for inspections of each phase of construction;
(4) 
Provisions for the release of part or all of the performance guarantee to the developer; and
(5) 
A date after which the developer will be in default and the Town shall have access to the funds to finish construction.
B. 
The performance guarantee shall be held by the Town Manager.
A. 
A cash contribution to the establishment of an escrow account shall be made by:
(1) 
A certified check made out to the Town;
(2) 
The direct deposit into a savings account; or
(3) 
The purchase of a certificate of deposit.
B. 
For any account opened by the developer, the Town shall be named as owner or co-owner, and the consent of the Town shall be required for a withdrawal. Any interest earned on the escrow account shall be returned to the developer.
A. 
A performance bond shall detail:
(1) 
The conditions of the bond;
(2) 
The method for release of the bond or portions of the bond to the developer; and
(3) 
The procedures for collection by the Town.
B. 
The bond documents shall specifically reference the development for which approval is sought.
An irrevocable letter of credit from a bank or other lending institution shall indicate that funds have been set aside for the construction of the development and may not be used for any other project or loan.
A. 
The Board, at its discretion, may provide for the developer to enter into a binding agreement with the Town in lieu of the other financial performance guarantees. Such an agreement shall provide for approval of the final plan on the condition that only up to four lots may be sold or built upon until either:
(1) 
It is certified by the Board, or its agent, that all of the required improvements have been installed in accordance with this chapter and the regulations of the appropriate utilities; or
(2) 
A performance guarantee acceptable to the Town is submitted in an amount necessary to cover the completion of the required improvements at an amount adjusted for inflation and prorated for the portions of the required improvements already installed.
B. 
Notice of the agreement and any conditions shall be on the final plan which is recorded at the Registry of Deeds. Release from the agreement shall follow the procedures for release of the performance guarantees contained in § 45-113.
A. 
The Board may approve plans to develop a major subdivision in separate and distinct phases.
B. 
This may be accomplished by limiting final approval to those lots or buildings abutting that section of the proposed development's road which is covered by a performance guarantee.
C. 
When development is phased, road construction shall commence from an existing public way.
D. 
Final approval of lots in subsequent phases shall be given only upon satisfactory completion of all requirements pertaining to previous phases.
Prior to the release of any part of the performance guarantee, the Board shall determine to its satisfaction, in part upon the report of the Town's consulting engineer and whatever other agencies and departments may be involved, that the proposed improvements meet or exceed the design and construction requirements for that portion of the improvements for which the release is requested.
A. 
If, upon inspection, the Town's consulting engineer finds that any of the required improvements have not been constructed in accordance with the plans and specifications filed as part of the application, the consulting engineer shall so report in writing to the Codes Enforcement Officer, the Board of Selectmen, the Board, and the subdivider or developer.
B. 
The Board of Selectmen shall take any steps necessary to preserve the Town's rights.
Where the development roads are to remain private roads, the following words shall appear on the recorded plan: "All roads in this development shall remain private roads to be maintained by the developer or the lot owners and shall not be accepted or maintained by the Town."
Performance guarantees shall be tendered for all improvements required by Article XIX of this chapter, as well as any other improvements required by the Board.