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Commission approves ordinance change to let staff assess performance/payment-bond needs case by case
Summary
The commission approved amendments to the land‑division and development control ordinance to give staff and board discretion over requiring performance and payment bonds, rather than a blanket requirement; staff said letters of credit remain the primary security and bonds typically add about 1% to project costs.
The Plan Commission approved amendments to the village land division and development control ordinance that remove a blanket requirement for performance and payment bonds and allow staff and the board to require additional security on a case‑by‑case basis.
Staff explained the village currently requires developers to provide financial security (commonly a letter of credit) equal to roughly 120% of estimated project costs; additional performance bonds (if required) typically add about 1% to project costs. Commissioners discussed the relative protections of letters of credit versus bonds, asked that any bond forms be prepared by village counsel so terms are consistent, and emphasized the need to review bond language to avoid protracted litigation. Staff confirmed that a standard bond form is referenced in the ordinance and said they would check with the village attorney on the most recent draft.
The commission voted to approve the ordinance amendments by voice vote.
