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Article 8: Performance and Maintenance
Section 8.1. Performance
8.1.4. Performance Guarantees
June 23, 2017
Morrisville, NC
Page 8-2
Unified Development Ordinance
Planning Director
The Planning Director decides whether or not to approve or deny requests for Type 2 Subdivision
Preliminary Plat Approval or Minor Site Plan Approval.
(Ord. No. 2014-022, 06/24/2014)
(Ord. No. 2015-047, 07/28/2015)
B.
Form of in Lieu Payment
The in lieu payment shall be provided in cash or certified check from a North Carolina lender to the
Town prior to Construction Plan Approval.
C.
Amount of in Lieu Payment
The amount of an in-lieu payment shall be in an amount equal to 150 percent of the estimated full cost
of completing the installation of the required improvements, including the costs of materials, labor, and
project management.
D.
Use of in Lieu Funds
The Town shall deposit any in-lieu payment into a special Town fund that shall be used only for the
design and construction of street improvements, including associated land acquisition, that serve the
occupants, residents, or invitees of the subdivision or development for which the in-lieu payment is made
(though the improvements may also serve more than one subdivision or development in the area). Such
activities may be undertaken by the Town or in conjunction with the North Carolina Department of
Transportation (NCDOT) under an agreement between the Town and NCDOT.
(Ord. No. 2015-002, 04/29/2015; Ord. No. 2016-001, 05/10/2016)
8.1.4.
Performance Guarantees
A.
General
A performance guarantee in accordance with the standards in this section shall be furnished the Town
prior to Construction Plan Approval in the following circumstances:
To ensure completion of public infrastructure improvements (e.g., roadways, bike lanes, curb and
gutter, sidewalks, bike paths, crosswalks, traffic signs and controls, street lights, fire lanes, bus
shelters and other transit facilities, greenway paths—but not public improvements provided in
accordance wit
h Article 7: Stormwater Management)that are required as part of Construction Plan
Approval; and
To ensure completion of plantings of replacement trees, buffer screening, and landscaping that are
required as part of Construction Plan Approval.
B.
Term of Performance Guarantee
The term of a performance guarantee shall reflect any time limit for completing installation of required
improvements that is included in the Construction Plan Approval in a condition deemed acceptable by
the Town Engineer —but in any case, the term shall not exceed three years. The Planning Director or
Town Engineer, as appropriate, may, for good cause shown and with approval of the provider of the
guarantee, grant extensions of the term for up to a total extended period of two years.
C.
Form of Performance Guarantee
Where required, the owner or developer shall furnish a performance guarantee in any of the
following forms with terms and conditions acceptable to the Town Attorney:
a.
Cash deposit with the Town;
b.
Surety bond issued by any company authorized to do business in this State;
c.
Letter of credit issued by any financial institution licensed to do business in this State; or