§ 3.13.00. Guarantees and sureties.

A.

Applicability: The provisions of this section apply to all proposed developments in the town, including private road subdivisions.

1.

Nothing in this section shall be construed as relieving the developer or applicant of any requirement relating to concurrency or maintenance of level of service as may be required by this Code or the comprehensive plan.

2.

This section does not modify existing agreements between a developer and the town for subdivisions platted and final development orders granted prior to the effective date of this Code.

B.

Improvements, agreements required: The approval of any development plan shall be subject to the developer providing assurance that all required improvements, including, but not limited to, storm drainage facilities, streets and highways, water and sewer lines, parking facilities, open space and recreation facilities shall be satisfactorily constructed according to the approved development plan. The following information shall be provided:

1.

Agreement that all improvements, whether required by this Code or constructed at the developer's option, shall be constructed in accordance with the standards and provisions of this Code.

2.

The term of the agreement indicating that all required improvements shall be satisfactorily constructed within the period stipulated. The term shall not exceed five years from the recording of the plat or 30 percent occupancy of the development, which ever comes first.

3.

The projected total cost for each improvement. Cost for construction shall be determined by:

a.

An estimate prepared and provided by the applicant's engineer; or

b.

A copy of the executed construction contract.

4.

Specification of the public improvements to be made and dedicated together with the time table for making such improvements, if any.

5.

Agreement that upon failure of the applicant to make required improvements (or to cause them to be made) according to the schedule for making said improvements, the town shall utilize the security provided in connection with the agreement.

6.

Provision of the amount and type of security provided to insure performance.

7.

Provisions that the amount of the security may be reduced periodically as construction proceeds and improvements are made.

C.

Amount and type of security:

1.

The town manager shall be responsible for determining the adequacy of the security proposed to be provided by the developer.

2.

Security requirements may be met but are not limited to the following:

a.

Cashiers check;

b.

Certified check;

c.

Agreement between the developer, the lender and the town;

d.

Provision of an interest bearing certificate of deposit;

e.

Irrevocable letters of credit; or

f.

Surety bond (may be an insurance bond).

3.

The amount of security shall be 120 percent of the total construction costs for the required developer installed improvements (public and private). The amount of security may be reduced commensurate with the completion and final acceptance of required improvements. In no case, however, shall the amount of the security be less than 120 percent of the cost of completing the remaining required improvements.

D.

Completion of improvements:

1.

When improvements are completed, final inspection shall be conducted and corrections, if any, shall be completed before final acceptance by the town. The recommendation for final acceptance shall be made upon receipt of a certification of project completion by the town manager or by the inspections department of Okaloosa County and one copy of all test results, if any.

2.

As required improvements are completed and accepted, the developer may apply for release of all or portion of the security consistent with the requirements in Paragraph C.3 above.

E.

Maintenance of improvements:

1.

A maintenance agreement and security shall be provided to assure the town that all required improvements shall be maintained by the developer according to the requirements of this Code relating to roads, streets, storm water drainage, open space and recreation areas.

a.

The period of maintenance shall be as defined in the regulations relating to the specific improvement.

b.

The maintenance period shall begin with the acceptance by the town of construction of the improvements.

c.

The security shall be in an amount equal to 15 percent of the construction cost of the improvements.

2.

Whenever proposed development provides for the creation of facilities or improvements which are not proposed for dedication to the town, a legal entity shall be created to be responsible for the ownership and maintenance of such facilities and/or improvements.

a.

When the proposed development is to be organized as a condominium under the provisions of Chapter 718, F.S., common facilities and property shall be conveyed to the condominium association pursuant to that law.

b.

When no condominium is to be organized, an owner's association shall be created, and all common facilities and properties shall be conveyed to that association.

c.

No development order shall be issued for a development for which an owner's association is required until the documents establishing such association have been reviewed and approved by the town attorney.

3.

An organization established for the purpose of owning and maintaining common facilities not proposed for dedication to the town shall be created by covenants running with the land. Such covenant shall be included with the final plat. Such organization shall not be dissolved nor shall it dispose of any common facilities or open space by sale or otherwise without first offering to dedicate the same to the town.

(LDC Ord. of 1-9-2014)