A.
Completion of improvements.
1.
Except as provided below, before the issuance of a building permit, all applicants shall be required to complete, to the satisfaction of the City Engineer, all street, sanitary, and other public improvements, as well as lot improvements on the individual residential lots of the subdivision or addition as required in these regulations. The required improvements shall be those specified and approved by the Council in the final plat. Where required by the provisions of this ordinance, said final plat shall dedicate those public improvements to the City. As used in this Section, "lot improvements" refers to grading and installation of improvements required for proper drainage and prevention of soil erosion.
2.
As a condition of a final plat, the Council may require the property owner to deposit in escrow a sufficient deed describing by metes and bounds street rights-of-way and necessary easements required by these regulations, conveying such rights-of-way and easements to the City, pending acceptance of improvements by the City and recordation of the final plat. In the event the property owner is unable to complete said improvements, and such improvements are deemed necessary for the preservation of the public health and safety, the City may compel the delivery of the deed in order to complete the improvements as required.
B.
Public improvement agreement and guarantee of completion of public improvements.
1.
Public improvement agreement.
The Council, upon recommendation of the Planning and Zoning Administrator, may waive the requirement of Section 4.1(A) and may permit the property owner to enter into a public improvement agreement by which the property owner covenants to complete all required public improvements no later than two (2) years following the date upon which the final plat is signed. The Council may also require the property owner to complete and dedicate some required public improvements prior to approval of the final plat and to enter into a public improvement agreement for completion of the remainder of the required improvements during such two-year period. The owner shall covenant to maintain the required public improvements for a period of five (5) years following acceptance by the City of all required public improvements and shall provide a maintenance bond in the amount of 110% of the costs of the improvements for such period as required in Section 4.4. The Public Improvement Agreement shall contain such other terms and conditions as are agreed to by the property owner and City. The agreements relative to any subdivision or development shall not be considered as complete until three (3) sets of record drawings, two (2) set of mylars, and an electronic (CAD) copy for such drawings for all streets and utilities including street lighting in the subdivision, certified by the developer's engineer, are filed with the Planning and Zoning Administrator. Nothing in this section shall nullify the City's obligation to participate in the construction of oversize facilities in accordance with Section 6.
2.
Covenants to run with the land.
The Public Improvement Agreement shall provide that the covenants contained in the agreement shall run with the land and bind all successors, heirs and assignees of the property owner. The Public Improvement Agreement shall be recorded in the Grayson County Clerks Office. All existing lienholders shall be required to subordinate their liens to the covenants contained in the Public Improvement Agreement. However, the City shall deliver a release to bona fide third-party purchasers of individual lots once all required public improvements have been completed to the City's satisfaction.
3.
Public improvement agreement and security to include lot improvements.
For residential subdivisions, the public improvement agreement shall include security sufficient to guarantee completion of all lot improvement requirements including, but not limited to, soil preservation, removal of debris and waste, and all other lot improvements required for the subdivision. Whether or not a building permit or certificate of occupancy has been issued, the City may enforce the provisions of the public improvement agreement where the provisions of this section or any other applicable law, ordinance, or regulation have not been met.
4.
Security.
Whenever the City permits a property owner to enter into a public improvement agreement, it shall require the owner to provide sufficient security, to ensure completion of the required public improvements. The security shall be in the form of one of the following:
a.
A cash escrow; or
b.
A letter of credit drawn upon a state or national bank. Said letter of credit shall be 1) irrevocable, 2) be of a term sufficient to cover the completion, maintenance and warranty periods, but not less than two years and, 3) require only that the City present the issuer with a sight draft and a certificate signed by an authorized representative of the City certifying to the City's right to draw funds under the letter of credit; or
c.
A first and prior lien on the property.
Said securities shall be issued in the amount of 110% of the funds estimated by the City Engineer to be necessary to pay for all promises and conditions contained in the Public Improvement Agreement. In addition to all other security, for completion of those public improvements where the City participates in the cost, the owner shall provide a performance bond from the contractor, with the City as a co-oblige. The issuer of any surety bond and letter of credit shall be subject to the approval of the Planning and Zoning Administrator and the City Attorney. |
5.
As portions of the public improvements are completed in accordance with the Standard Specifications for Public Works Construction, as published by the North Central Texas Council of Governments (NCTCOG), and the approved construction plans, the owner may make application to the Planning and Zoning Administrator to reduce the amount of the original letter of credit or cash escrow. If the Administrator, with the concurrence of the City Engineer, is satisfied that such portion of the improvements has been completed in accordance with City standards, he may cause the amount of the letter of credit or cash escrow to be reduced by such amount that he deems appropriate, so that the remaining amount of the letter of credit or cash escrow adequately insures the completion of the remaining public improvements.
C.
Temporary improvements.
The property owner shall build and pay for all costs of temporary improvements required by the Council and shall maintain those temporary improvements for the period specified by the Council. Prior to construction of any temporary facility or improvement, the owner shall file with the City a separate public improvement agreement and escrow, or, where authorized, letter of credit, in an appropriate amount for temporary facilities, which agreement and escrow or letter of credit shall ensure that the temporary facilities will be properly constructed, maintained, and removed.
D.
Governmental units.
Governmental units to which these contract and security provisions apply may file, in lieu of the contract and security, a certified resolution or ordinance from officers or agencies authorized to act in their behalf, agreeing to comply with the provisions of this Ordinance.
E.
Failure to complete improvements.
For plats for which no public improvement agreement has been executed and no security has been posted, if the public improvements are not completed within the period specified by the City, the preliminary plat approval shall be deemed to have expired. In those cases where a public improvement agreement has been executed and security has been posted and required public improvements have not been installed within the terms of the agreement, the City may:
1.
Declare the agreement to be in default and require that all the public improvements be installed regardless of the extent of completion of the development at the time the agreement is declared to be in default;
2.
Suspend issuance of a building permit until the public improvements are completed and record a document to that effect for the purpose of public notice;
3.
Obtain funds under the security and complete the public improvements itself or through a third party;
4.
Assign its right to receive funds under the security to any third party, including a subsequent owner of the subdivision or development for which public improvements were not constructed, in whole or in part, in exchange for that subsequent owner's promise to complete the public improvements on the tract;
5.
Exercise any other rights available under the law.
F.
Acceptance of dedication offers.
Acceptance of formal offers of dedication of street, public areas, easements, and parks shall be by authorization and written notification to the City Engineer. The approval by the Council of a plat, whether preliminary or final, shall not of itself be deemed to constitute or imply the acceptance by the City of any street, easement, or park shown on the plat. The Council may require the plat to be endorsed with appropriate notes to this effect.
(Ordinance 1167 adopted 4/3/07; Ordinance 1424 adopted 2/4/19; Ordinance 1501 adopted 9/9/2024)