Land Development Performance Bond - City of Acworth, GA in Georgia

Brief Summary

In Acworth a final plat is not approved until the infrastructure is either built or bonded. A land development performance bond lets a developer record the plat and keep moving while the remaining improvements are finished, without tying up project cash in an escrow account.

The City of Acworth accepts a performance bond in place of finished infrastructure under Section 73-12, Guarantees and Sureties, of its Chapter 73 ordinance. The developer is the principal and the City of Acworth is the obligee. If the work is not completed, the City can call on the surety for up to the amount needed to finish the improvements based on the City's own estimate.

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How to Apply for a Land Development Performance Bond:

• Obtain the City's approved cost estimate for the unfinished improvements.
• Have the developer's legal name and project name exactly as shown on the plat and development plan approval.
• Apply for the bond and provide company and owner financial information for underwriting.
• Sign the bond and have the surety attach its power of attorney.
• File the original with the City of Acworth before final plat approval.
• Petition the City for release once the improvements are complete.

Detailed Information About the Georgia Land Development Performance Bond:

Built or bonded before final plat

Under Acworth's Chapter 73 ordinance, no final plat is approved until the subdivider has installed all required improvements, unless sureties are posted under Section 73-12 in their place. Section 73-13.1.11(B) puts it plainly: final plats shall not be approved until all infrastructure is completed or bonded. Before project close out, the City also certifies that the applicant has obtained the necessary bonds. Sanitary sewer, storm drainage and water supply systems are all items the subdivider must pay for or guarantee payment for.

What triggers a claim

Section 73-12.7.1 defines default as the applicant's failure to complete the required improvements. On default, the surety pays the City, if requested, up to the amount needed to complete the improvements or maintenance based on an estimate by the City. Section 73-12.7.2 allows the City to give notice of default after a project has been abandoned for more than 90 continuous days. The City may spend what it needs on the work and must return any unspent funds.

Getting the bond released

Release is not automatic. Section 73-12.8.1 makes it the applicant's responsibility to petition the City for release and to warrant that all bonded improvements are complete. The City may release a portion of the security as improvements are completed, inspected and approved.

Amount

The bond amount is project specific and follows the City's estimate of the cost of the remaining improvements. Confirm the figure and the current bond form with the City of Acworth before the bond is issued.

Eligibility and Requirements for a Georgia Land Development Performance Bond:

• City of Acworth named as obligee.
• Bond amount equal to the City's estimate for the bonded improvements.
• Surety obligated to pay the City, on request, the amount needed to complete the work.
• Exposure to a default notice after more than 90 continuous days of abandonment.
• Underwriting based on the developer's financial strength, experience and credit, which also sets the premium.

Georgia Land Development Performance Bond FAQs:

Official and Additional Resources for the Georgia Land Development Performance Bond: