ARTICLE V. DEVELOPMENT PREREQUISITE TO FINAL PLAT
APPROVAL
1. Completion of Improvements
Before the final
subdivision plat is signed by the Secretary of the Planning Commission all
developer(s) shall complete, in accordance with plans approved by
the Planning Commission and to the satisfaction of the City, all public ways,
sanitary sewer, water service, fire protection, storm water drainage,
electrical service, and all other improvements, including improvements on
individual lots of the subdivision as required in these regulations and
approved by the Planning Commission, and shall dedicate such improvements to
the city, free and clear of all liens and encumbrances on the property and
public improvements dedicated.
2. Surety Instrument
The Planning Commission,
at its discretion, may waive the requirement that the developer(s) complete and
dedicate all public improvements prior to signing of the final subdivision plat
by the Secretary of the Planning Commission providing that, as an alternative,
the developer shall post an instrument of surety, as referenced below, to
ensure completion of said improvements without cost to the City in the event of
default by the developer of record. The
cost of the surety instrument shall be calculated and sealed by the developer’s
engineer and submitted to the City Engineer for approval and shall be based on
an amount equal to 120% of the estimated cost of installation of the required
improvements. The cost shall be a detailed
itemized estimate of all incomplete items on the date the estimate is prepared. The cost of the surety shall be
memorialized in the minutes of the Planning Commission at the time of approval
of the final plat and approval of the request to defer the installation of
improvements.
a. Methods of Posting Surety Instrument: The following methods of surety will be
acceptable:
(1) An irrevocable letter of credit in favor of
the City, from a bank or other financial institution. The bank or other financial institution
issuing the letter of credit shall be insured by the FDIC or NCUSIF (National
Credit Union Share Insurance Fund). The
bank or other financial institution shall allow the letter of credit to be presented
for collection at a place physically located within the boundaries of Anderson
and Roane Counties or those counties which are contiguous.
(2) A certified check or cash to the City in the
full amount equal to 120% of the estimated cost required to complete all
outstanding infrastructure improvements.
(3) An escrow account or Certificate of Deposit
in favor of the city in the full amount equal to 120% of the
estimated cost required to complete all outstanding infrastructure
improvements.
(4)
A
surety bond, insurance bond or performance bond from the subdivider to the City
in the full amount meeting the following criteria:
(i) The
performance bond shall contain a provision stating the bond may not be revoked
except upon written notice by certified letter to the City, and the expiration
date, if revoked, shall be at least thirty (30) days after receipt of written
notice by the City. It shall be
understood and agreed, however, that the maker of the performance bond will be
liable for any and all unpaid bills up to the amount of the performance bond
accruing up to the expiration date thereof, and a provision stating such shall
be set forth in the performance bond.
(ii) All
performance bonds shall be drafted so that the only requirement for the City to
draw upon such bond is to notify the financial institution that the
applicant/developer/owner has failed to complete construction of their project
in accordance with the subdivision plans and the rules and regulations
governing the subdivision of land within Oak Ridge, Tennessee. The City shall
have the right, at its discretion and upon seven (7) days notice to the
subdivider, to draw any amount necessary to complete the project up to the
remaining balance. The amount drawn, which may be more than required to
complete the project, will be held in a segregated bank account until the work
can be bid competitively and the bid awarded and paid for or until the contract
for the work is otherwise let and paid for.
In no instance shall the City incur any liability for repayment of these
funds. Any excess over the cost of completing the work will be returned to the
grantor. Release of the funds will be made only with the prior written consent
of the Finance Director of the City.
(iii) The
company issuing the performance bond shall be qualified to do business in the
State of Tennessee and shall maintain an office within the State of Tennessee.
All performance bonds shall provide a location within Anderson or Roane
Counties or an adjoining county where such bond(s) may be drawn upon. Bonds
must be rated A/AA+15 by A.M. Best. The
City reserves the right to reject any company that does not comply with this
section.
(iv) The performance bond shall contain a provision
that requires, in the event of change to the bond, thirty (30) days prior
written notice to be sent by registered mail to the City.
(Pl. Comm. Res. 09-01 effective
01/22/09)
Incomplete improvements
shall be completed within one (1) year from the date the subdivision plat is
filed in the Register of Deeds office.
In the event the work is not completed the City may use the surety to
complete installation of the required improvements, unless an extension for a
specified time period(s), of one (1) year or less, is submitted in writing,
along with justification for the extension, to the staff and forwarded to the
Planning Commission with a staff recommendation.
The surety instrument
shall name the Oak Ridge Municipal Planning Commission and the city as obligees
and shall be satisfactory to the City Attorney as to form, sufficiency and
manner of execution. The surety instrument shall remain in force in its
full-face amount until improvements are completed and accepted by the City. The
City may elect to reduce the amount of the surety as infrastructure
improvements are constructed. In the
event reductions are made, reductions shall not be considered more than
quarterly and shall not be reduced to an amount less than 40% of the face value
of the original amount of surety posted until all work is complete and accepted
by City Council.
1. In the event a surety instrument has been
accepted for a subdivision, or any section of a subdivision, no temporary or
permanent certificate of occupancy for any building in the subdivision or
section thereof shall be issued prior to the completion of essential health and
protective services, as required in the review of the final plat(s).
2. Prior to issuance of a building permit all
lots shall be accessible to fire department apparatus by way of access
roadways, with all weather driving surfaces as determined by the licensed
engineer of record, of not less than 20 feet of unobstructed
width, with adequate roadway turning radius capable of supporting the imposed
loads of fire apparatus and having a minimum vertical clearance of 13 feet 6
inches. A permanently installed water line shall be operational.
(Pl. Comm. Res. 04-01 effective
9/23/04)