Planning commission backs AM Best A‑rated requirement for surety bonds

Orland Park’s Planning Commission voted to adopt a land development code amendment requiring a minimum AM Best rating of A (or better) and an Illinois corporate surety license for surety bonds that guarantee subdivision and public improvements.

Planner Marcus told the commission the amendment would establish a minimum financial rating requirement for surety bonds or letters of credit used to guarantee public improvements such as roads, utilities and stormwater work. Marcus said the proposed text would require bonds to have a corporate surety licensed in Illinois and an AM Best Company rating of A or better.

Commissioners discussed the change. One asked whether recent problems precipitated the amendment; staff said there had been no known issues but that the topic was raised at a village board meeting a few months earlier. Another commissioner asked whether staff had studied how the new requirement might affect the pool of available surety providers and contractors; Marcus said that study had not been done. Staff said later that the village’s approach matched requirements in many nearby municipalities.

Commissioner Ed Schuessler moved and Commissioner Kathy Fenton seconded approval of the amendment to Section 5‑1‑12(e)(3)(b). The motion passed with all commissioners voting in favor.

Staff said the change applies to private development when projects include public improvements; it does not alter existing requirements that a letter of credit or surety be posted for final engineering and public improvements, it adds a minimum quality threshold for the issuing surety.