The following bonds and sureties are required on all new developments, phases, and build-outs in the City of Commerce. The required documentation must be submitted prior to the issuance of a land disturbance permit for the development. This documentation must be submitted to the Commerce Community Development Department five (5) days prior to the request for a land disturbance permit.
- Land Disturbance Bond: A land disturbance bond must be presented to the City of Commerce in an amount equal to $3,000 per acre prior to issuing the permit.
- Road Improvement and Installation Bond: The guarantee shall be equal to but not exceeding 120% of the cost of the installation of the road as shown on the as-built surveys or final plat. The cost of construction shall be evidenced by copies of contractor agreements or actual invoices paid, or as otherwise determined or accepted by the Community Development Department. All road backfill testing and compaction testing certifications must be submitted by a City approved engineer prior to pavement with asphalt within 48 hours of completion. After the submission of these reports, the Building Official and Public Works Director will release the roads for pavement with asphalt.
- Public Improvements: A bond must be submitted on all community improvements installed by the developer, including water facilities, sewer facilities, pump stations, gas facilities, electric facilities, drainage mechanisms, stormwater retention ponds, and telecommunication facilities. The value of the improvement guarantee shall be equal to but not exceeding 120% of the cost of the installation of the improvements shown on the as-built surveys or final plat. The cost of construction shall be evidenced by copies of contractor agreements or actual invoices paid, or as otherwise determined or accepted by the Community Development Department.
All bonds and sureties can be submitted in the form of security bond, irrevocable letter of credit, escrow account, or any combination thereof. These bonds will be reviewed by the Commerce Community Development Department and the City Attorney for compliance.
If any activities conducted 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 developer will maintain any roads public improvements in the development, for a period of two years or until certificates of occupancy have been issued for 75% or more of the principal buildings on the lots shown on the final subdivision plat, whichever occurs later. The two-year maintenance period shall begin upon recordation of the final subdivision plat. If the two-year term expires before the issuance of certificates of occupancy for 75% or more of the principal buildings on the lots shown on the final subdivision plat, the improvement guarantee shall be renewed or extended, until Certificates of
Occupancy have been issued on 75% of the principal buildings on the lots shown on the final subdivision plat. The subdivider shall not assign this responsibility to another entity without permission of the City Attorney and Community Development Department. In cases where the maintenance and performance guarantees are to cover a second phase or any other later stage of a development project, the guarantees shall be required to be extended in amount and application to cover the original phase of the project in addition to the later phase for the same period of application if the later phase will utilize the same entrance-street as that used by the original phase of the project.
Before to the end of the maintenance period, the subdivider shall request an inspection of the subdivision’s public improvements. The Community Development Department shall perform the inspection. The developer shall be notified of the inspection results in writing at least 30 days after receipt of a request from the developer to the city to initiate an inspection. If repairs are needed for the public improvements to meet city specifications during the maintenance period, the developer shall be required to make such repairs within 30 days, after written notification by the Community Development Department.
If the repairs are not completed, the improvement guarantee shall be called to pay for the repairs. Should the amount of the subdivision improvement guarantee be inadequate to pay for the repairs, the developer shall pay the remaining amount. The city may withhold building permits if the remaining amount required is not paid.
The bonds and sureties for public improvements will be released when the Commerce City Council adopts a resolution and approves a general warranty deed conveying fee simple title of such right of ways and lands that are to be owned by the City or by permanent grant of easement where appropriate. The warranty deed or easement shall be accompanied by a certificate of title and a tax transfer form addressed to the Commerce City Council. City Council’s acceptance and approval allows the Community Development Department to release the guarantees.