Phoenixville |
Code of Ordinances |
Municipal Code |
Chapter 22. Subdivision and Land Development |
Part 7. IMPROVEMENT CONSTRUCTION REQUIREMENTS |
§ 22-702. Financial Security.
Latest version.
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1.In lieu of the completion of improvements required for final plan approval, financial security, in an amount required, shall be guaranteed to the Borough in compliance with the applicable requirements of the Pennsylvania Municipalities Planning Code. Such financial security shall assure the complete installation of all the required improvements to be completed on or before the date fixed in the plan approval, subdivision agreement, and/or development agreement for completion of such improvements.2.The amount of such security to be posted for the completion of required improvements shall be equal to 110% of the cost of completion estimated as of 90 days following the date scheduled for completion by the developer. Annually, the Borough may adjust the amount of the required financial security by comparing the actual cost of improvements which have been completed and the estimated cost for the completion of the remaining improvements as of the expiration of the 90th day after the original scheduled date for completion or a rescheduled completion date.3.In determining the cost of the completion of improvements for setting the amount of financial security required in § 22-702, such cost shall be based upon a detailed estimate of the cost of completion of required improvements submitted by the applicant or developer and prepared by a professional engineer and certified to be fair and reasonable. The Borough, under recommendation of the Borough Engineer, may refuse to accept the estimate for good reasons provided to the applicant. If the applicant or developer and the Borough are unable to agree upon an estimate, then the estimate shall be recalculated and recertified by another professional engineer who is mutually chosen by the Borough and the applicant. The estimate certified by the third engineer shall be presumed to be fair and reasonable and shall be the final estimate.4.When requested by the applicant in order to facilitate financing, the Borough Council shall furnish the applicant with a signed copy of a resolution indicating approval of the final plan contingent upon the applicant obtaining a satisfactory financial security. Final plans will not be signed or recorded until the developer's agreement and financial security agreement are executed and the required escrow is provided. The resolution of contingent approval shall expire and be deemed to be revoked if the financial security agreement is not executed within 90 days, unless a written extension is granted by the Borough Council.5.The Borough, at its option, may accept financial security in the form of a cash escrow placed with the Borough or an irrevocable standby letter of credit issued by a commonwealth or federal chartered lending institution chosen by the party posting financial security, provided that said institution is authorized to conduct such business in the Commonwealth of Pennsylvania.
Ord. 2016-2267, 10/11/2016