Land Disturbing Bond - City of Commerce, GA in Georgia

Brief Summary

Commerce will not issue a land disturbance permit until the per acre security is in place. A surety bond covers that $3,000 per acre obligation for an annual premium, so the cash a developer would otherwise lock up in an escrow account or letter of credit stays available for grading, utilities and the rest of the job.

The City of Commerce, Georgia requires a Land Disturbance Bond equal to $3,000 per acre of land disturbing activity before a land disturbance permit is issued. The city accepts a security bond, irrevocable letter of credit, escrow account, or a combination. If site activities fall out of compliance with city standards and are not corrected within 30 days, the city can call the bond and hire a contractor to stabilize the site.

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How to Apply for a Land Disturbing Bond:

• Calculate the disturbed acreage from the plans and multiply by $3,000 per acre.
• Pay fees to Georgia EPD and keep the receipt for the application package.
• Submit the Notice of Intent with the permit application.
• Provide a current GSWCC Level 1A card or higher for the person conducting grading.
• Obtain the Land Disturbance Bond and submit it for review by Planning and Development and the City Attorney.
• Pay the City of Commerce fee after plan review and approval.

Detailed Information About the Georgia Land Disturbing Bond:

The amount scales with acreage

The bond is not a flat figure. The City of Commerce Land Disturbance Permit Application calls for a Land Disturbance Bond in an amount equal to $3,000 per acre. A 5 acre site needs $15,000 of security, a 20 acre site needs $60,000. That matches the ceiling in state law, since O.C.G.A. 12-7-7 lets a local issuing authority require security of up to, but not exceeding, $3,000 per acre of the proposed land disturbing activity before the permit issues.

What triggers a claim

The city's application is direct about it. If activities on the site do not comply with City standards and policies within 30 days, the city will call the bond and hire a contractor to stabilize the activity. The state statute gives the same remedy, allowing the issuing authority to use the proceeds to stabilize the site. The surety pays a valid claim and then recovers that amount from the developer or contractor who posted the bond.

The bond is only one item on the checklist

The Commerce application package also asks for a receipt showing fees paid to Georgia EPD, a copy of the Notice of Intent, and a current GSWCC Level 1A Fundamentals certification card or higher for the person conducting grading on the project. Holding the certification does not replace the bond. Bonds are reviewed by the Commerce Planning and Development Department and the City Attorney for compliance, and the City of Commerce fee is due after the plans are reviewed and approved.

Before the bond is issued

Confirm the disturbed acreage on your approved plans, since that drives the bond amount, and ask the Planning and Development Department whether the city uses its own bond form.

Eligibility and Requirements for a Georgia Land Disturbing Bond:

• City of Commerce named as obligee.
• Bond amount equal to $3,000 per acre of land disturbing activity.
• Permit applicant as principal, matching the permit application exactly.
• Bond review by the Commerce Planning and Development Department and City Attorney.
• Credit and financial review of the developer or contractor, which shapes the premium.

Georgia Land Disturbing Bond FAQs:

Official and Additional Resources for the Georgia Land Disturbing Bond: