Improvement guaranties shall be provided to ensure the proper installation and maintenance of required street, utility, and other improvements. The nature and duration of the guaranty shall be structured to achieve this goal without adding unnecessary costs to the developer.
If required by the Planning Board Pursuant to Article VI of this chapter, applicants for subdivision plat approvals shall provide the Town with acceptable financial security in an amount sufficient to guarantee the installation of basic public improvements. Such public improvements may include public water supply, sewage disposal systems, storm drains and sewers, roads, pavement markings and traffic signs and signals, sidewalks, and other public improvements.
Improvements and performance bond. Before the Planning Board grants final approval of the subdivision plat, the subdivider shall follow the procedure set forth in either Subsection A(1) or (2) below:
A.
Performance bond or other security.
(1)
Furnishing of performance bond or other security. As an alternative to the installation of infrastructure and improvements, as above provided, prior to Planning Board approval, a performance bond or other security sufficient to cover the full cost of the same, as estimated by the Planning Board or the Town Engineer, where such estimate is deemed to be acceptable by the Planning Board, shall be furnished to the Town by the owner.
(2)
Security where plat approved in sections. In the event that the owner shall be authorized to file the approved plat in sections, approval of the plat may be granted upon the installation of the required improvements in the section of the plat filed in the office of the County Clerk or Register or the furnishing of security covering the costs of such improvements. The owner shall not be permitted to begin construction of buildings in any other section until such section has been filed in the office of the County Clerk or Register and the required improvements have been installed in such section or a security covering the cost of such improvements is provided.
B.
Form of security. Any such security must be provided pursuant to a written security agreement with the Town, approved by the Town Board and also approved by the Town Attorney as to form, sufficiency, and manner of execution, and shall be limited to:
(1)
A performance bond issued by a bonding or surety company;
(2)
The deposit of funds in or a certificate of deposit issued by a bank or trust company located and authorized to do business in this state;
(3)
An irrevocable letter of credit from a bank located and authorized to do business in this state;
(4)
Obligations of the United States of America; or
(5)
Any obligations fully guaranteed as to interest and principal by the United States of America, having a market value at least equal to the full cost of such improvements. If not delivered to the Town, such security shall be held in a Town account at a bank or trust company.
C.
Term of security agreement. Any such performance bond or security agreement shall run for a term to be fixed by the Planning Board, but in no case for a longer term than three years; provided, however, that the term of such performance bond or security agreement may be extended by the Planning Board with consent of the parties thereto. If the planning board shall decide at any time during the term of the performance bond or security agreement that the extent of building development that has taken place in the subdivision is not sufficient to warrant all the improvements covered by such security, or that the required improvements have been installed as provided in this section and by the Planning Board in sufficient amount to warrant reduction in the amount of said security, and upon approval by the Town Board, the Planning Board may modify its requirements for any or all such improvements, and the amount of such security shall thereupon be reduced by an appropriate amount so that the new amount will cover the cost in full of the amended list of improvements required by the Planning Board.
D.
Default of security agreement. In the event that any required improvements have not been installed as provided in this section within the term of such security agreement, the Town Board may thereupon declare the said performance bond or security agreement to be in default and collect the sum remaining payable thereunder; and upon the receipt of the proceeds thereof, the Town shall install such improvements as are covered by such security and as commensurate with the extent of building development that has taken place in the subdivision but not exceeding in cost the amount of such proceeds.
E.
Costs of improvements. The costs of all required improvements shall be borne by the subdivider without reimbursement by the Town of Minden.
F.
Acceptance of dedication offers. Acceptance of formal offers of dedication of streets, public areas, easements, and parks may be made at the sole discretion of the Town Board. The Town Board shall have no obligation whatsoever to accept such offers. The approval by the Planning Board of a subdivision plan shall not be deemed to constitute or imply the acceptance by the Town of any roads, public areas, easements, or parks shown on said plan. The Planning Board shall require any dedication offer to be endorsed with notes on the plan to this effect.
G.
Modification of design of improvements. If at any time before or during the construction of the required improvements it is demonstrated to the satisfaction of the Town Engineer that unforeseen conditions make it necessary or preferable to modify the location or design of such required improvements, the Town Engineer may, upon approval by a previously delegated member of the Planning Board, authorize modifications, provided that these modifications are within the spirit and intent of the Planning Board's approval and do not extend to the waiver of substantial alteration of the function of any improvements required by the Board. The Town Engineer shall issue any authorization under this section, in writing, and shall transmit a copy of such authorization to the Planning Board at their next regular meeting.
H.
Inspection of improvements. At least five days prior to commencing construction of required improvements, the subdivider shall pay to the Town Clerk the inspection fee required by the Town Board and shall notify the Town Board, in writing, of the time when he proposes to commence construction of such improvements so that the Town Board may cause inspection to be made to assure that all Town specifications and requirements shall be met during the construction of required improvements and to assure the satisfactory completion of improvements and utilities required by the Planning Board.
I.
Proper installation of improvements. If the Town Engineer shall find, upon inspection of the improvements performed before the expiration date of the performance bond, that any of the required improvements have not been constructed in accordance with plans and specifications filed by the subdivider, he shall so report to the Town Board, Code Enforcement Officer and Planning Board. The Town Board then shall notify the subdivider and, if necessary, the bonding company and take all necessary steps to preserve the Town's rights under the bond. No plat shall be approved by the Planning Board if the subdivider is in default on a previously approved plat.
J.
Maintenance of improvements. The subdivider shall be required to maintain all improvements on the individual subdivided lots and provide for snow removal on streets and sidewalks if required, until acceptance of the improvements by the Town Board. If a certificate of occupancy has been issued for a lot on a road not dedicated to the Town, the Town may, on 12 hours' notice, plow the street or effect emergency repairs and charge same to subdivider. Any sum remaining unpaid after 30 days shall be added to the tax levy for the affected properties still owned by the subdivider. The subdivider may be required to file with the Town a maintenance bond in an amount determined by the Town Engineer to be adequate to assure the satisfactory condition of the initial public improvements for a period of one year following their completion and acceptance by the Town. Such bond shall be satisfactory to the Town Attorney as to form, manner of execution and surety.
The construction or installation of any improvements or facilities, other than roads, for which a financial guaranty has been made pursuant to this article shall be completed within one year from the date of the approval of the subdivision plat or special use. Road improvements shall be completed within two years from the date of approval of the plat. At the end of such time, if the required public improvements are not completed and accepted by the Town, the Town may use as much of the financial security required by this article to construct and install, maintain, or perfect the improvements as necessary to meet all applicable state and local laws, ordinances, rules, and regulations.
The applicant may request an extension of time to perform required public improvements, provided reasonable cause can be shown for the inability to construct and install said improvements within the required time. Such extension of time shall not exceed six months.
The applicant may request a phasing of required improvements, provided reasonable cause can be shown that is directly a part of the documenting phasing schedule for a subdivision reviewed by the Planning Board.
When a guaranty agreement has been approved by the Town Board and the required surety bond, certified check or letter of credit has been received by the Town Clerk, the Town and the applicant shall enter into a written agreement itemizing the required public improvements, establishing a schedule for the construction and installation of such improvement, and itemizing the cost of construction and installation for each improvement. Whenever feasible, costs shall be organized by logical phases of work completion in order to facilitate the partial release of funds held as a financial guaranty by the municipality to the applicant as work is satisfactorily completed.
When the project inspector, following final inspection of the project, certifies to the Planning Board and the Town Board that all required public improvements have been completed in accordance with all applicable requirements, the Town Board may act, by resolution, to accept the public improvements.