CITIES/REQUIRE PERFORMANCE GUARANTEES.

View NCGA Bill Details2017-2018 Session
House Bill 602 (Public) Filed Wednesday, April 5, 2017
AN ACT AUTHORIZING CITIES TO REQUIRE PERFORMANCE GUARANTEES WHEN INDUSTRIAL PROPERTY IS BEING DEMOLISHED.
Intro. by Dobson.

Status: Re-ref Com On Rules, Calendar, and Operations of the House (House Action) (Apr 25 2017)
H 602

Bill Summaries:

  • Summary date: Apr 5 2017 - More information

    Enacts GS 160A-440, authorizing a city to require performance guarantees when the owner of property classified as industrial under the city's zoning ordinance or property historically used for industrial purposes submits an application for a permit to assure successful completion of demolition and removal of all material from the site in a reasonable time period. Provides that the type of performance guarantee is at the election of the owner, but requires the owner to, in conjunction with the city, determine the estimated cost of demolition and removal of all material from the site and the time period in which the demolition and removal will be completed. Defines performance guarantee to mean (1) a surety bond issued by any company authorized to do business in this State; (2) a letter of credit issued by any financial institution licensed to do business in this State; or (3) any other form of guarantee that provides equivalent security to a surety bond or letter of credit.

    Provides for the timely return or release of the performance guarantee; the extension of the performance guarantee; or the issuance of a new performance guarantee. Requires the owner to demonstrate reasonable, good-faith progress toward the completion of the demolition and removal of all material that is the subject of the performance guarantee or any extension. Provides that the form of any extension remains at the election of the owner.

    Prohibits the amount of the performance guarantee from exceeding 125% of the reasonably estimated cost of completion of demolition and removal of all material at the time the performance guarantee is issued. Provides that any extension of the performance guarantee necessary to complete demolition and removal of all material cannot exceed 125% of the reasonably estimated cost of completion of the remaining demolition and removal of all material still outstanding at the time the extension is obtained. 

    Limits the use of the performance guarantee for completion of the demolition and removal of all material from the site.

    Clarifies that the statute does not authorize a city to require performance guarantees for demolition of residential property. 

    Effective July 1, 2017.


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