This article applies to all permits and approvals under this Code for which the Town determines that the failure of the applicant or a successor in interest to the property to complete required construction or installation of infrastructure, road or street improvements, landscaping, or site amenities required by this Code or by a condition attached to the permit or approval could result in the Town or another governmental or quasi-governmental entity needing to complete construction or installation of those items to protect the public health, safety, or welfare.

(a)

Form of Security. Public and private improvements required by this Code or by a condition attached to an approval under this Code shall be secured by a financial guarantee in the form of cash or an irrevocable letter of credit, from a financial institution acceptable to the Town, and in a form approved by the Town attorney, unless the Town approves an alternative as provided below.

(b)

Amount of Security. The security shall be in the amount of 110 percent of the total construction cost for the improvements based upon an estimate from a certified professional. Cost estimates shall include:

(1)

The estimated cost for the Town to bring in materials, personnel, and equipment to complete any unperformed purpose of the financial guarantee;

(2)

Consultant fees, including engineering and legal fees;

(3)

The duration of project construction or activity and a reasonable projection of increased project cost due to inflation; and

(4)

A 10 percent contingency cost allowance.

(c)

Right to Draw on Financial Guarantee.

(1)

The Town shall have the right to draw on the security for the purpose of restoring and remediating any site disturbance and/or constructing or completing construction of any public improvements including landscaping; however, the Town shall not be obligated to undertake such action if the Board of Trustees, for good cause, deems it inadvisable to do so.

(2)

In the event the Town draws on the security, neither the applicant nor their successors or assigns shall engage in any work on the site until new security is provided to the Town in the amount specified in this Article.

(d)

Release of Security.

(1)

The Town shall release the financial guarantee as provided in the Subdivision Agreement, final inspection by the Town, and the Town's written approval accepting the public improvements.

(2)

The applicant may request partial release of the security based on its partial completion of the required improvements and the Town's acceptance of dedication of those improvements, and the Town Manager may approve such partial release if the Town Manager determines that the Town is adequately protected from risk of financial liability to complete any of the remaining improvements.

(e)

Substitution of Security. The applicant may request that the Town substitute a new form of security for an existing security held by the Town. The Town attorney may approve that request if the Town Manager determines that the replacement security provides the Town equal or better protection against risks of financial liability to complete any of the remaining improvements.

(f)

Alternative Form of Security. As an alternative to providing the financial security, the Town may approve other forms of assurance that the Town attorney confirms will adequately protect the Town against any financial liability to complete required improvements. Alternatives may include but are not limited to:

(g)

The pledge or dedication of other financial assets with a development agreement authorizing the Town to sell or otherwise realize the value of those assets upon the applicant's failure to timely complete and dedicate required improvements;

(h)

Written agreements by the applicant to initiate and complete development of only a limited portion of the development, and not to request approvals of later portions of the development, until all required improvements have been constructed and dedicated to the Town; or

(i)

Written agreements by the applicant not to request building permits or certificates of occupancy until all required improvements have been constructed and dedicated to the Town.

(a)

Security in the amount of 20 percent of the total construction cost of the required public improvements, shall be deposited with the Town or retained by the Town prior to the release of the initial security, in order to warrant the public improvements against defects during a two-year warranty period following acceptance of the public improvements by the Town. If the Town determines that defects in construction of the improvements are present, the Town shall have the rights to draw on this remaining security as described above.

(b)

Community parks that will be owned and maintained by the Town shall be subject to the two-year warranty period.

(c)

Private landscape, streetscape, and park improvements are not subject to the two-year warranty, and the cost of such improvements shall not be included in the calculation of total construction costs.

(d)

If the required public improvements have not been accepted in writing by the Town at the end of the two-year performance warranty period, an extension of the financial guarantee for the cost of the outstanding improvements shall be required, and the Town shall have the rights to draw on the original or extended security as described above.