16.04.100 – Guarantee for completion of land improvements and monuments/benchmarks

The Subdivider shall submit a guarantee for completion of the Land Improvements prior to approval and signature of the Final Plat of Subdivision by the Director of Community Development or designee for issuance of any required permits.  As a condition of recording of a Final Plat of Subdivision, any partial guarantee for completion shall be replaced by a full guarantee.

The guarantee shall be in one of the following formats, with the form, amount and provider being subject to approval by the Development Engineering Division Manager or designee.

  1. Cash in the amount of 115% of the estimated cost of the Land Improvements remaining to be completed.
  2. A performance letter of credit, in substantially the form attached as Appendix C, in the amount of 115% of the estimated cost of the Land Improvements remaining to be completed, issued by a sound reputable banking institution authorized to do business in the state of Illinois and meeting the criteria set forth below.
  3. A surety bond in the amount of 115% of the estimated cost of the Land Improvements remaining to be completed, issued by a surety company authorized to do business in Illinois and meeting the criteria set forth below.

The form, amount and provider of the guarantee for completion shall be subject to the approval of the Director of Community Development, Development Engineering Division Manager or their designee, and shall meet the following criteria:

  1. Banks (for letters of credit):  Each letter of credit shall be drawn on an institution 1) acceptable to the Director of Finance; 2) having assets of at least $10 million; 3) having an office in the Chicago Metropolitan Area; and 4) that is a member of the Federal Deposit Insurance Corporation; or
  2. Insurance Companies (for surety bonds):  Must have an A.M. Best Company rating of Superior (A++ and A+), Excellent (A and A-) or Very Good (B++ and B+) (or equivalent).

Completed Land Improvements may be omitted from the amount of the guarantee.  For purposes of this section, completed Land Improvements shall be those Land Improvements which have been previously accepted by the City Council, and, if applicable, conveyed to the City via a bill of sale substantially in the form set forth in Appendix C pursuant to the terms and conditions of the Land Improvement Agreement

The guarantee shall be accompanied by a Land Improvement Agreement in substantially the form set forth in Appendix D. The Mayor is authorized to execute a Land Improvement Agreement and authorization from the City Council is not required.

(2019-M-24: § 2)