Development Escrow Requirements
The requirements for escrow accounts are done on a case-by-case basis. Below is a general outline of what is involved; it is not intended to be a comprehensive policy. Depending on the specifics of your project, your requirements may be different.
There are three main considerations that determine the amount to be held in escrow.
- Site Restoration
- Construction Inspections
- Pavement Restoration
A site restoration security is required on development projects approved by the Planning Board. The purpose of the security is to stabilize a construction site in the event a developer abandons the project. The amount required is 10% of 110% of the cost of site work as estimated by the project engineer. As categories of site work are completed, the developer may request a draw down of the security posted. If a developer wishes to start selling lots (as in the case of a residential development), 110% of the cost of the remaining site work must be deposited with the city for security.
To monitor construction activities of an individual project, the City may use its own ("in-house") inspectors or hire contracted third-party engineers. Construction inspection agreements provide the funds designated for these activities. If the funds run low, the developer is required to add more funds. Upon the completion of the project, the remaining balance is returned to the developer.
Pavement Restoration Security
If a new project involves the use of a considerable amount of heavy equipment, adjacent City roads may get damaged. The pavement restoration security ensures that road conditions are maintained throughout the completion of the project and provides funds to repair any damages.
For specific information on your project, contact the Assistant Director of Public Works at (603)528-6379 or the Planning Dept. at (603)527-1264.