Bonds & Agreements

The developers are required by the City Code to install all improvements based on the approved construction plans and apply for recordation of the subdivision plat once the improvements are ready for acceptance by the City. However, in lieu of this, the developers may elect to post an agreement with a surety guaranteeing the installation of all improvements and apply for recordation prior to the completion of said improvements.

Agreements

Subdivision Agreement

A subdivision agreement, supported by a bond or other surety is required for projects to be recorded prior to completion of the physical improvements and are ready for acceptance by the City. The agreement is a legal, binding contract between the City and the owner/subdivider. The agreement specifies the manner and the date by which the physical improvements, outlined in the agreement and shown on the approved plans, shall be completed. A tri-party agreement will be required if the guarantor is another party than the owner/subdivider.

Ancillary Agreement

An ancillary agreement, supported by a bond or other surety allows City acceptance of the project prior to completion of improvements not posing or having an adverse impact. This agreement replaces the subdivision agreement. The agreement is a legal, binding contract between the owner/subdivider and City. The agreement specifies the manner and the date by which the physical improvements, outlined in the agreement and shown on the approved plans, shall be completed. The effective date is the date on the face of the agreement. The owner/subdivider is to provide a bond or other surety that assures compliance with the terms of the agreement.

Defect Agreement (Bond)

A defect agreement, supported by a bond or other surety is required to guarantee the workmanship and materials of the physical improvements for a period of two years from the date of City accepting the improvements for maintenance. The defect bond is a legal, binding contract between the party that is posting the bond and the City. The defect bond specifies the manner of replacing/repairing of the defective improvements and the date the City accepts the physical improvements.

Longer duration may be required depending on the nature of the field Conditions

Bonds

Surety Bonds (Insurance Co.)

This surety shall be furnished by an insurance company licensed to transact fidelity and surety insurance in the State of Virginia and shall guarantee the full amount of the bond. The ability of the surety writer to provide satisfactory performance guarantee will be assessed by City staff in accordance with criteria reported in the latest publication of the U.S. Department of Justice/Federal Bureau of Investigation Surety Bond Authenticity Guide publication.

Irrevocable Letters of Credit

This security shall be furnished by a bank or other financial institution, as permitted by law. The letter of credit shall be written in such a manner as to extend sixty (60) days beyond the agreement expiration date and for the defect bond the letter of credit must be extended to twenty-six (26) months from the City's acceptance date of physical improvements. Also it is required that the point of presentation of draft documents be located within the Hampton Roads, Virginia vicinity. 

Cash Deposit

Cash in the face amount of the bond is to be deposited with the City Treasurer. Upon completion and acceptance of the physical improvements outlined in the agreement or defect bond, the money will be refunded.