Title/Name/Summary
Land Development Code Amendment: Establish Surety Bond Rating Requirements
History
**See attached Amendment Report for Text Changes**
Project: 2025-0819 - Land Development Code Amendment: Establish Surety Bond Rating Requirements
Requested Approvals: Establish a surety bond minimum rating requirement in the Land Development Code for subdivision and public improvements.
PROPOSED AMENDMENT SUMMARY
The goal of this proposed amendment is to establish a minimum financial rating requirement for surety bonds submitted in connection with subdivision and public improvement projects.
Currently, the Land Development Code does not specify a minimum financial rating for corporate sureties that issue subdivision bonds. In comparison, many municipalities require that bonds be secured by surety companies holding a minimum A.M. Best Company rating of “A” to ensure adequate financial strength and reliability. This standard helps protect the Village in the event the developer defaults on required improvements.
A corporate surety is a licensed insurance or guarantee company that issues bonds guaranteeing completion of required public improvements. Establishing a minimum financial rating helps ensure that these companies possess sufficient financial capacity to fulfill their obligations. This change will promote consistency among bond submittals and strengthen financial protections for the Village.
Recommended Action/Motion
Regarding Case Number 2025-0819 - Land Development Code Amendment: Establish Surety Bond Rating Requirements, Staff recommends to accept and make findings of fact as discussed at this Plan Commission meeting and within the Staff Report dated October 13, 2025;
And
Staff Recommends the Plan Commission approves the Land Development Code Amendment for Section 5-112.E.3.b.
Regarding Case Number 2025-0819 - Land Development Code Amendment: Establish Surety Bond Rating Requirements, I move to approve the Staff Recommended Action as presented in the Staff Report to the Plan Commission for this case.