42-117. Amount and Terms of Guarantee; Time Limits
- Approval. All guarantees shall be accompanied by a written agreement (performance agreement) specifying the terms and the amount of the guarantee. The Planning Director shall have the authority to approve all improvement guarantee applications taking into consideration the amount and terms of the guarantees for improvements (including time of initiation and completion of the work).
- Temporary Access and Construction Easement. The applicant shall provide temporary access and permanent construction easement s for all infrastructure improvements.
- Amount and Terms. The amount of the guarantee shall be sufficient to provide adequate funds to the County to ensure, in the case of default, the installation of all required improvements uncompleted at the time of default. All improvement guarantees shall comply with applicable statutory requirements and shall be satisfactory to the County Attorney or Staff Attorney as to form, sufficiency and manner of execution. Guarantees employing lending institutions shall require that those banking corporations be licensed to do business in North Carolina and be from a national association or FDIC registered group.
The following terms shall be stated in the performance agreement:
- The applicant shall be provided 15 days to identify a new security provider or prove alternate security where the security provider is in default, bankruptcy, or otherwise determined to be insolvent by the County after which time the County may redeem the improvement guarantee.
- The applicant shall provide the County with specific benchmarks for completion of work and, as a term of the agreement, should the applicant fail to meet the self-imposed benchmarks the county may redeem the improvement guarantee.
- If in violation of any other provision of this Chapter 42, Henderson County Land Development Code, where the applicant shall been notified of the violation, and the applicant has been provided the period for remediation authorized by the approving agency, and where applicant is in continued violation, the County may consider this to be a breach of the agreement and call the improvement guarantee to prevent further violation of Chapter 42, Land Development Code.
D. Time Limits. The improvement guarantee is valid for a period of eighteen (18) months from the date of execution.
E. Extensions. The Planning Director, upon proof of difficulty, may grant an extension for a maximum of (1) one additional year. Improvements not completed within thirty (30) months shall be in breach with the requirements of this section and the improvement guarantee and any and all monies and accrued interest shall be forfeited by the applicant.
F. Second Improvement Guarantee. If the Planning Director has found that the applicant has made a good faith effort in completing the required improvements within the thirty (30) months the County may allow the applicant to execute a second improvement guarantee. Said agreement much be in the form of cash on deposit equal to the cost as described in ยง42-117A (Amount of Guarantee) of the remaining improvements. The County shall assess and administrative fee equal to ten (10) percent of the new improvement guarantee monies.
