§ 10-7-1. Guarantee of performance.

Latest version.

Pre-Approval Requirements. Prior to any administrative approval or approval of any site plan or subdivision by the Planning and Zoning Commission and Village Board of Trustees, the following supporting documents shall be submitted to the Village's Department of Development Services by the developer or owner.

A detailed statement setting forth the nature, kind, character and extent of all improvements that will be constructed in the subdivision or on the site as required by this Code, together with the complete plans and specifications thereof approved by the Village Engineer and with the agreement that the owner or developer will construct same in accordance therewith without expense to the Village.

A statement by a competent registered professional engineer of the State of Illinois giving an estimate of the total cost of the construction or installation of all such improvements. Such estimate shall be based on prevailing construction costs.

Post-Approval Requirements. After any administrative approval or approval of any site plan or subdivision by the Village Board of Trustees and before the issuance of any building permit, grading approval or other site development work, the following requirements must be met for all developments. The Assistant Village Manager-Development Services may reduce the requirements listed below for projects where the total value of the public and private improvements for the benefit of the public are less than $20,000.00 where other satisfactory means of assuring performance are provided.

In accordance with state statute, the developer or owner shall submit financial guarantees in a form acceptable to the Village which shall assure the Village of the completion of the improvements, including public improvements and private improvements (for the benefit of the public) and as required and specified on the approved development documents. All of the financial guarantee funds shall be available to the Village to remedy any deficiencies in the development that are not addressed by the developer. The distribution of the financial guarantee funds shall not be limited based upon any prior estimates or reductions in the financial guarantee funds. The amount of the financial guarantee funds shall be 110 percent of the estimated cost of the public improvements. In no case shall the financial guarantee funds be for an amount less than 25 percent of the cost of the private improvements for the benefit of the public. In any case, the minimum financial guarantee funds shall be $1,000.00.

An amount equal to ten percent of the amount required in 1. above shall be held by the Village for a 12-month maintenance guarantee period after the final Certificate of Occupancy or final acceptance of public improvements to assure that any defects not apparent at the time of a final Certificate of Occupancy or final acceptance are corrected, except in non-residential cases where the Village Engineer determines such guarantee is not necessary due to a limited amount of public improvements on a project by project basis.

Financial Guarantees shall be as required by law and may include cash deposits, letters of credit, or surety bonds. If surety bonds are accepted by the Village, they will be in the following form:

VILLAGE OF HOFFMAN ESTATES
PERFORMANCE SURETY BOND

BOND NO:	DATE BOND EXECUTED:


PRINCIPAL:	BOND AMOUNT: (written out & numerically)


CO-PRINCIPAL(S):	DEVELOPMENT DOCUMENTS:


SURETY(IES):	PROJECT:

_____

KNOW ALL MEN BY THESE PRESENTS, that we, the Principal(s) and Surety(ies) hereto, recite and declare that:

We are held and firmly bound to the obligee Village of Hoffman Estates, Illinois (hereinafter called "Village"), in the sum written above in lawful money of the United States of America, to be paid to the Village, its successors or assigns, for the payment whereof Principal(s), Co-Principals and Surety(ies) bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, firmly by this Bond.

The condition of this Bond is that if the Principal shall in every respect perform all of its obligations under the Development Documents identified above, which Development Documents are incorporated herein by reference, then this Bond shall be void; otherwise, the Bond shall continuously remain in full force and effect until released by the Village. Development Documents shall also include any annexation agreements, development agreements, plats, zoning approvals, engineering plans, site plans or other Village documents associated with the Project, including any laws, ordinances or governmental regulations related to the Project.

Surety waives all of its surety defenses including, but not limited to, the following:

It shall be the duty of the Principal to notify the Surety of any revision of the plans, profiles and specifications referred to in the Development Documents. The Surety expressly waives any right to receive notice from the obligee or to review or approve any revisions to the plans, profiles and specifications referred to in the Development Documents which are required to meet governmental standards. No such revisions of any kind in the work shall in any way affect the obligation of the Surety under this Bond;

The addition or reduction in subdivision lots or area to those shown in the original plat of subdivision, site plan or construction plan referred to in the Development Document shall in no way affect the obligation of the Surety under this Bond;

Any extension of time beyond the period provided for in the Development Document for completion of its obligations under the Agreement shall in no way affect the obligation of the Surety under this Bond;

The failure or refusal of Village to take any action, proceeding, or steps to enforce any remedy or exercise any right under the Development Document, or that taking of any action, proceeding, or step by Village, acting in good faith upon the belief that same is permitted by the provisions of the Development Documents, shall not in any way release Principal or Surety, or either of them, or their respective executors, administrators, successors, or assigns, from liability under this Bond. Surety hereby waives notice of any amendment, indulgence made, granted or permitted;

The Principal, Co-Principal and Surety intend that each provision of this Bond be valid and binding upon them and expressly agree to abide thereby;

In the event of a default of this Bond, the Village may terminate whatever rights Principal, Co-Principal and/or Surety may have to perform further work on the Project.

The requirement of any other entity to perform any obligations contained in the Development Documents shall in no way affect the obligations of the Surety under this Bond.

Default:

A default shall be deemed to have occurred on the part of the Principal if Principal shall fail to complete its obligations under the Development Documents within the time set forth therein or any extensions thereof; or, prior to the expiration of such period, if in the sole judgment of the Village, the Principal has:

Abandoned the performance of its obligations under the Development Documents; or

Renounced or repudiated its obligations under the Development Documents; or

Clearly demonstrated through insolvency, or otherwise, that its obligations under the Development Documents cannot be completed within the time allotted under the Development Documents.

If the Principal defaults in the performance of all or any part of the obligations specified in the Development Documents, the Village shall give written notice of the default to the Surety, with a copy to the Principal and Co-Principal, if any. In the event of such default and notice, Surety shall, within 45 days of receipt of the default notice, give written notice to the Village stating whether Surety will assume the Development Document obligations and the obligations of the Principal, and should it elect to assume said obligations, Surety shall be required to complete the obligations specified in the Development Documents according to its terms and provisions within 180 days of said notice, but not before expiration of the period provided for under the Development Documents and approved extensions thereof. In the event that Surety elects to assume the obligations of Principal as provided herein and thereafter fails to faithfully perform all or any part of the work, or should it unnecessarily delay all or any part of the work, then the Village may proceed as provided in Paragraph No. 5 of this Bond.

Should Surety following notice of default notify the Village that Surety elects not to assume the obligations of Principal under the Development Documents, or fails within 45 days of receipt of the default notice as provided in Paragraph No. 4b) above to notify the Village whether Surety elects to assume the obligations of Principal under the Development Documents, or having elected to assume the obligations of Principal, should it then fail to perform, then in any event the Village may elect any of the following procedures or any combination thereof:

Terminate whatever rights the Principal, Co-Principal and/or Surety may have to perform further work on the Project;

Take over or relet all or any part of the work under the Development Documents which is not completed and complete the same for the account and at the expense of the Principal and Surety, who shall be jointly and severally liable to Village for the costs incurred in completion of the obligations under the Development Documents and/or correction thereof. Such costs as identified in the Development Documents shall include, but not be limited to, construction, engineering, surveying, maintenance, donations, impact fees, deterioration, administration, supervision, reasonable attorney's fees, and any costs associated or related to any litigation of the Bond agreement and shall be adjusted for inflation. The amount of Village's actual costs for completion and/or correction of the work required under the Development Documents shall be conclusive of the extent of the liability of Principal and Surety and may exceed the Bond Amount;

Require the Surety to pay the Bond Amount to the Village as liquidated damages.

Should Surety, following notice of default notify the Village within 45 days of the receipt of the default notice choose to pay the Village for completion of the obligation under the Development Documents, the Surety shall have the right to demand that the Village state a sum constituting the estimated costs at that time, of completion and/or correction of the work required under the Development Documents, such as costs as defined in Paragraph No. 5b). Surety shall then immediately pay over to the Village the sum so stated and be released from any further obligations under this Bond. If funds are paid over under this section and the paid over funds are not sufficient to complete the work, the Village's sole remedy shall be to proceed against the Principal(s) and Co-Principals for any deficiency. If there are any paid over funds not necessary for completion of the work, the Village will return the excess to Surety after completion of the work.

If any action or proceeding is initiated in connection with this Bond and any and all obligations arising hereunder the venue thereof shall be in State Court in the County of Cook, State of Illinois, it is further understood and agreed that this contract shall be governed by the laws of the State of Illinois, both as to interpretation and performance.

All notices sent to the Principal(s), Co-Principals, and Surety(ies) shall be sent to the address set forth on the signature page unless said Principal(s), Co-Principal(s) and Surety(ies) notify the Village in writing of any change. If the addresses of any of the Principal(s), Co-Principal(s) and Surety(ies) change, the Principal(s), Co-Principal(s) or Surety(ies) shall immediately notify the Village in writing of such change. Failure to notify the Village of any change in address is deemed to be a waiver of any requirement for notice under this Bond to the Principal(s), Co-Principal(s) or Surety(ies). All written notices to the Village required under the Bond shall be sent certified mail to the Village Clerk.

If any one or more of the provisions of this Bond are determined to be illegal or unenforceable by a court of competent jurisdiction, all other provisions shall remain effective.

10.

No party other than the Village shall have any rights under this Bond as against the Surety.

11.

As part of the obligation secured hereby and in addition the Bond Amount specified herein, there shall be included costs, interest and reasonable expenses and fees (including, without limitation, attorneys' fees and costs), incurred by the Village in successfully enforcing such obligations, to be awarded and fixed by the court.

12.

Nonpayment of the premiums associated with this Bond will not invalidate this Bond nor shall Village be obligated for the payment thereof. Surety agrees to deliver written notice of non-payment under this Bond or other actions to the Village.

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed and sealed as of the day and year set forth above.

PRINCIPAL

Type of Organization:	Legal Name of Organization:
_____	_____
	_____
State of Incorporation:	_____
_____	_____

	Address:
	_____
	_____
	_____
Authorized Signature(s):

By: _____ Signature	By: _____ Signature

_____ (Type name and title)	_____ (Type name and title)

ACKNOWLEDGMENT OF PRINCIPAL(S)

STATE OF _____ :

COUNTY/CITY OF _____ :

I,___________ Notary Public in and for the State and County/City aforesaid, do hereby certify that______________________ whose name is signed to the foregoing bond, this day personally appeared before me in my State and County/City aforesaid and acknowledged the same.

Given under my hand this_______ day of___________ , ___________

My commission expires: _____ ___________
NOTARY PUBLIC

Surety: _____

Bond No.: _____

CO-PRINCIPAL

Type of Organization:	Legal Name of Organization:
_____	_____
	_____
State of Incorporation:	_____
_____	_____

	Address:
	_____
	_____
	_____
Authorized Signature(s):

By: _____ Signature	By: _____ Signature

_____ (Type name and title)	_____ (Type name and title)

ACKNOWLEDGMENT OF CO-PRINCIPAL(S)

STATE OF _____ :

COUNTY/CITY OF _____ :

Given under my hand this_______ day of___________ , ___________

My commission expires: _____ ______________________
NOTARY PUBLIC

Surety: _____

Bond No.: _____

CORPORATE SURETY

Type of Organization:	Legal Name of Organization:
_____	_____
	_____
State of Incorporation:	_____
_____	_____

	Address:
	_____
	_____
	_____
Authorized Signature(s):

By: _____ Signature	By: _____ Signature

_____ (Type name and title)	_____ (Type name and title)

ACKNOWLEDGMENT OF CORPORATE SURETY(S)

STATE OF _____ :

COUNTY/CITY OF _____ :

Given under my hand this_______ day of___________ , ___________

My commission expires: _____ ______________________
NOTARY PUBLIC

Surety: _____

Bond No.: _____

(Ord. No. 4654-2018, § 1, 5-14-18)

Road Use Fee. A road use fee shall be assessed prior to subdivision acceptance for the use of public streets for construction access to the subdivision and/or site. For accepted Village streets, the road use fee shall be assessed for 50 percent of repairs and resurfacing cost for public streets used for ingress and egress to the subdivision and/or site.

(Ord. No. 4360-2013, § 1(Exh. A), 3-18-13)

                    
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