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 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 Borough (which
approval shall not be unreasonably withheld), but not including a
second or third mortgage on the unimproved lands.
(2) Such approved 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 (§
180-46F) for the completion of such improvements.
(3) Such financial security shall be posted with a federally insured
or state-chartered lending institution chosen by the party posting
the financial security, or such other approved entity, provided such
institution or entity is authorized to conduct such business within
the state.
(a)
The Borough may require that evidence be provided that such
institution or entity has sufficiently adequate and secure assets
to cover the security.
(b)
The Borough 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 applicant in the official development schedule,
and within the process for increases to cover inflation as permitted
by the Pennsylvania Municipalities Planning Code.
(2) The cost of the improvements shall be established by an estimate
prepared by a Design Professional, which shall be reviewed by the
Borough Engineer, within the arbitration process permitted by the
Pennsylvania Municipalities Planning Code.
(3) 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% or 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 procedure.
(4) Inspection fees. The amount of financial security shall also include
an additional 5% of the estimated cost of completion of the work to
guarantee payment of inspection fees and related engineering costs.
C. Multi-year or multi-stage development. In the case where development
is projected over a period of years, the Borough may authorize submission
of final plans by phases/stage of development subject to such requirements
or improvement guarantees concerning future improvements as it finds
necessary for the proper functioning of each phase and for the eventual
development as a whole.