(A) Intent and scope of requirements.
(1) To ensure compliance with the provisions of this chapter and any conditions imposed thereunder, the Planning Commission or Township Board may require that a performance guarantee be deposited with the township to ensure faithful completion of improvements, in accordance with § 505 of the Michigan Zoning Enabling Act, Public Act 110 of 2006, as amended.
(2) Improvements for which the township may require a performance guarantee include, but are not limited to, landscaping, berms, walls, lighting, driveways and parking, acceleration/deceleration lanes, traffic control devices, sidewalks and land reclamation activities.
(B) General requirements. The performance guarantee shall meet the following requirements.
(1) The performance guarantee shall be in the form of an irrevocable bank letter of credit or cash escrow. If the applicant posts a letter of credit, the credit shall require only that the township present the credit with a sight draft and an affidavit signed by the Township Supervisor attesting to the township's right to draw funds under the credit. If the applicant posts a cash escrow, the escrow instructions shall provide that the escrow agent shall have a legal duty to deliver the funds to the township whenever the Township Supervisor presents an affidavit to the agent attesting to the township's right to receive funds whether or not the applicant protests that right.
(2) The performance guarantee shall be submitted at the time of issuance of the permit authorizing the activity or project. If appropriate, based on the type of performance guarantee submitted, the township shall deposit the funds in an interest-bearing account in a financial institution with which the township regularly conducts business.
(3) The amount of the performance guarantee shall be sufficient to cover the estimated cost of the improvements for which the performance guarantee is required. The applicant shall provide an itemized schedule of estimated costs to complete all such improvements. The exact amount of the performance guarantee shall be determined by the Building Official.
(4) The entire performance guarantee shall be returned to the applicant following inspection by the Building Official and a determination that the required improvements have been completed satisfactorily. The performance guarantee may be released to the applicant in proportion to the work completed on various elements, provided that a minimum of 10% shall be held back on each element until satisfactory completion of the entire project.
(5) An amount not less than 10% of the total performance guarantee may be retained for a period of at least one year after installation of landscape materials to ensure proper maintenance and replacement, if necessary. This amount shall be released to the applicant upon certification by the Zoning Administrator that all landscape materials are being maintained in good condition.
(C) Unsatisfactory completion of improvements. Whenever required improvements are not installed or maintained within the time stipulated or in accordance with the standards set forth in this chapter, the township may complete the necessary improvements itself or by contract to an independent developer, and assess all costs of completing said improvements against the performance guarantee. Prior to completing the improvements, the township shall notify the owner, site plan review applicant or other firm or individual responsible for completion of the required improvements.
(Ord., § 2.18, passed - -)
