As Cities and Town’s grow and develop, infrastructure improvements play a vital role in ensuring the safety and functionality of public spaces. In the Town of Nolensville, site improvements are carefully regulated with high standards to ensure that the required improvements are completed responsibly, adhering to local and state regulations, as well as safety standards.

What is a Site Improvement Surety

The Town of Nolensville allows Developer’s to utilize a Surety, if granted approval from the Planning Commission, serving as a financial guarantee for the completion of proposed required site improvements according to the approved plans and within a designated timeframe. The establishment of a Surety involves both a contractual agreement (referred to as an Improvement Guarantee Agreement) between an applicant/developer and the Town of Nolensville, and Security in the form of either an Irrevocable Letter of Credit or a Cashier’s Check. Both the Improvement Guarantee Agreement and the selected form of Security require approval by the Town's Legal Counsel to ensure the completion of improvements and guarantee a warranty period of 12 months thereafter.

Requirements for Obtaining a Town of Nolensville Site Improvement Surety

Developers must meet specific requirements to utilize a Surety which includes an application process, the determination of improvement costs by the Town Engineer, an underwriting evaluation by the Town’s Surety Coordinator/Planning Assistant and permission being granted by the Town of Nolensville’s Planning Commission.

The Benefits and Importance of an Improvement Surety

• Project Completion Assurance

• Compliance with both the Town’s Subdivision Regulations & Zoning Ordinance

• Financial Protection

• Accountability

Surety Protocol

The Town of Nolensville Planning Commission will not approve a Site Plan or Final Plat of a Subdivision or authorize recording until:

(a) all required improvements and facilities are constructed , installed, and completed, providing for and securing to the public, in accordance with the regulations requirements and specifications of the Town of Nolensville and the conditions established by the Planning Department, Town Engineer and Planning Commission, including but not limited to any or all of the following: construction of roadways, proposed private amenities/ entrance signs, greenways/trails, grading, ditching, storm drainage improvements, erosion control, re-vegetation, sanitary sewers, water lines, street improvements, alleys, street lights, traffic control devices, signage, striping, pins, concrete monuments, sidewalks, pedestrian/bike paths, landscaping and any proposed facilities /improvements in any designated open space and/or common areas (such required improvements and facilities being hereinafter called "the Improvements");

or

(b) an applicant/developer in lieu of completing the Improvements, prior to commencement of development activities on individual lots and prior to the approval of a Site Plan or Final Plat, may request permission for the use and establishment of a Surety consisting of a satisfactory Improvement Guarantee Agreement with good and sufficient Security being furnished, providing for and securing to the public the actual completion, construction, installation and dedication of all required site Improvements, as well as the maintenance of said Improvements, guaranteeing the completed improvements against defects in workmanship and/or materials for a period of one (1) year following the construction completion or until approval for final release by the Planning Commission is granted, whichever is longer.

Said Surety is security to the Town for completion of the construction and installation of the required Improvements and works, providing and insuring that said Improvements will be constructed to the satisfaction of the Town and in accordance with the approved construction plans.

The infrastructure improvements shall be itemized and calculated by the Applicant’s Project Engineer, in the form of a stamped and signed Cost Estimate reflecting a 25% contingency, for the Town Engineer’s review and approval simultaneously with the Site Plan/ Final Plat submittal package or prior to. The recommendation and request for approval of a surety, in an amount estimated by the Town Engineer as sufficient, will be presented to the Planning Commission outlining the required improvements concurrently with the Site Plan/ Final Plat approval request.

Town of Nolensville's Irrevocable Letter of Credit Requirements:

• The Irrevocable Letter of Credit shall be made payable to the Town of Nolensville and not bear an expiration date but rather contain an automatic renewal contract clause, often referred to as an “evergreen” letter of credit.

• The Letter of Credit must be issued by or confirmed by a financial institution that is licensed and registered under the laws of the State of Tennessee, with a branch located within a One-Hundred (100) mile radius of Nolensville, Tennessee, be callable within the physical limits of Tennessee and such branch must be authorized to accept an in person call of or demand on the Letter of Credit, regardless of where the funds are paid from.

• The financial institution shall not issue a surety for more than ten percent (10%) of its total capital to an applicant.

• The supporting Letter of Credit must also contain language that it will be automatically extended on an annual or biannual basis unless the Town is provided with at least sixty days’ notice of non-renewal by the issuer of said Letter of Credit.

• The Irrevocable Letter of Credit option shall not be available to an applicant whose past performance has resulted in a breach, insufficient, or expired letter of credit.

• A financial institution whose past performance has resulted in non-payment of an irrevocable letter of credit may be excluded from providing surety.

What is the process to obtain approval for a Surety and at what point in Development should I be prepared to utilize one?

If you intend to utilize a Surety, as security, to ensure the completion, construction, installation, and dedication of all required improvements in lieu of the completion of the required on-site and off-site improvements, you must first be granted permission to do so by the Planning Commission. An application requesting the use of a Surety should be submitted online simultaneously with you Site Plan / Final Plat submittal. Planning Commission approval for the use of a Surety shall be requested concurrently with the Site Plan/ Final Plat approval request.

It is important to plan your submittals accordingly to make the proper Planning Commission Meeting Agenda. Click here to see the meeting schedule.

The recommendation for approval of a Surety will be presented to the Planning Commission outlining the required improvements and the amount needed for said Surety by Town Staff following the receipt and approval of a Cost Estimate, by the Town Engineer, that has been prepared and stamped by the Applicant’s Project Engineer itemizing the required infrastructure improvements no less than 35 days prior to the Planning Commission Meeting the applicant plans to attend for their Final Site Plan/ Final Plat approval request. The Cost Estimate should reflect road improvements, expansions, stormwater drainage, hardscape and landscaping, if applicable to the project/subdivision.

If granted permission to utilize a Surety by the Planning Commission, said Surety will need to be applied for and established with the Planning Department within 90 days of a Site Plan/ Final Plat approval and prior to obtaining signatures for recording.

The ESTABLISHMENT of a SURETY means receipt of the following:

• A Surety Request Application submitted through the Town’s online portal.

• Any applicable application fee paid in full.

• An Executed Improvement Guarantee Agreement that was prepared by the Planning Department specifically listing your project/development's required improvements.

• Approval of the Improvement Guarantee Agreement by the Town’s Counsel.

• A "Draft" of the proposed Irrevocable Letter of Credit from your Financial Institution for the Town's Counsel to review prior to the issuance of an Original.

• The Original Irrevocable Letter of Credit following the Town Counsel's approval of the prepared draft.

SURETY STEPS:

REQUESTING THE USE OF A SURETY - APPLICATION SUBMITTAL

An application through the Town’s online portal shall be submitted to request the use of a Surety, along with the required documents, and full payment of any application fee. It is important to remember that this application should be submitted simultaneously with your Site Plan/ Final Plat submittal for the Planning Commission's consideration.

Supporting documents required for a Surety request include:

• A Cost Estimate

• An Executed Improvement Guarantee Agreement*

• A draft of the proposed Irrevocable Letter of Credit

• An Original Irrevocable Letter of Credit*

* The Executed Improvement Guarantee Agreement & Original Letter of Credit do not have to be received initially to request permission from the Planning Commission to utilize a Surety, as these documents can be uploaded after being granted permission. The Cost Estimate and Application are required to present to the Planning Commission.

 SURETY ESTABLISHMENT - THE PERFORMANCE PERIOD BEGINS

Once the Planning Commission grants permission to utilize a Surety and both the fully executed Improvement Guarantee Agreement and the Original Irrevocable Letter of Credit have been provided and approved by the Town’s Counsel, the Surety is considered established, the Application is considered approved and the Performance Period for the completion of the required improvements shall begin. The Performance Period shall be for a 12-month period.  

It is important to note that, prior to the expiration date of the Performance Period, the applicant/developer is required to request either a transition from Performance to Maintenance, if the improvements have been completed, or an extension of the Performance Period due to incomplete improvements, both of which require approval from the Planning Commission.

MAINTENANCE - The Warranty Period

All applicants/ developers shall be required to enter a Maintenance Period, also known as the Warranty Period, following the Performance Period. If no Performance Period was warranted because the applicant/developer chose to complete all of the required improvements prior to their request for a Site Plan/ Final Plat approval request, a Maintenance Period is still required and an Improvement Guarantee Agreement for such must be executed, however, the Agreement would be specific to the Maintenance Period only.  The Maintenance Period shall be for a period of no less than 12 months or until the Planning Commission releases the applicant/developer from Maintenance, whichever is greater.

TRANSITION TO MAINTENANCE – THE MAINTENANCE PERIOD BEGINS

Once all improvements have been fully completed and accepted by the Planning Commission, said Principal shall transition from Performance Security to a new Security (hereinafter called "the Maintenance Security"), agreeing to ensure the maintenance of said improvements pursuant to the applicable rules and regulations of the Town of Nolensville, Tennessee. Said Maintenance Security is established as a warranty guaranteeing the improvements shall remain valid for a period of time of not less than twelve (12) months (hereinafter called "the Maintenance Period") and continuing until acceptance as required by the Town Engineer and Planning Commission and shall be subject to the same standards established for the original Security.

The request for a transition to Maintenance requires an application, supporting documents and full payment of any application fee. The applicant should plan their submittal accordingly to make an Agenda and receive approval from the Planning Commission prior to the expiration of the existing surety performance period.

Supporting documents required for a transition request include:

• A Letter addressed to the Planning Commission requesting the transition to Maintenance.

• If there are incomplete improvements a letter of explanation as to why shall be submitted along with a new updated Cost Estimate for the remaining infrastructure improvements reflecting the appropriate contingency.

• Certification from the Engineer of Record stating that the improvements have been installed and completed in accordance with the approved plans and specifications.

• Landscape Architectural Letter certifying that the landscape installation conforms to the design intent.

• If Applicable, any outstanding Documents requested by the Town Engineer such as Surface Course of Street Paving Completion, Proof Rolls, As Bulit’s of Stormwater Detention/Retention Facilities, Recorded Stormwater Maintenance Agreements etc.

• Inspection and Approval from the Town of Nolensville’s Engineer.

EXTENSION REQUEST - EXTENDING THE PERFORMANCE PERIOD TIMELINE

An applicant/developer may request an extension to the completion date established, however, any such request would need to be requested and approved prior to the expiration date of the Performance Guarantee Period. Extension requests are presented to the Planning Commission for consideration only upon the determination of the Planning Department and Town Engineer that good cause has been shown. An extension may also be imposed by the Planning Commission directly because of inadequate completion to a Performance Period and/or a Maintenance Period. The Planning Commission shall determine the length of any such extension regardless of the requested extension timeframe and the extension fee would be incurred at the expense of the applicant/ developer. No extension shall release or modify the Security or Improvement Guarantee.

An extension request requires an application, supporting documents and full payment of any application fee. The applicant should plan their submittal accordingly to make an Agenda and receive approval from the Planning Commission prior to the expiration of the existing surety performance period.

Any extension of a Performance Period (Surety) may necessitate an increase in the surety amount (Letter of Credit).

Supporting documents required for an extension request include:

• A Letter addressed to the Planning Commission requesting the extension that includes the length of time needed for the extension along with an explanation as to why the improvements could not be completed during the performance period.

• An updated cost estimate detailing the outstanding improvements stamped and signed by the Project/Development Engineer of Record.

REDUCTION REQUEST – IF APPLICABLE & WARRANTED - REDUCING THE SURETY AMOUNT

At the discretion of the Town’s Planning Director and the Town’s Engineer, an applicant/developer may request a reduction in a surety/security amount securing the Improvement Guarantee if undue and uncontrollable circumstances presented causing delay outside of the Developer’s control once 90% of the improvements work is completed. The reduction request would be presented for consideration by the Planning Commission with supporting documentation and a reduction fee would be incurred at the expense of the Developer.

A reduction request requires an application, supporting documents and full payment of any application fee.

Supporting documents required for a reduction request include:

• A Letter addressed to the Planning Commission requesting a reduction.

• An updated cost estimate detailing any remaining improvements stamped and signed by the Project/ Development Engineer of Record.

• The Town Engineer shall review the Cost Estimate and provide approval for such.

   

RELEASE REQUEST - REQUESTING THE RELEASE OF SAID SURETY/SECURITY

An applicant/ developer may request final acceptance of the Improvement Guarantee and the release of said Security when all Improvements are completed in full and have been maintained for a period of at least 1 year or until approval for final release by the Planning Commission is granted, whichever is longer.  Any such request for a release shall require approval of the Town Engineer following a final site visit to confirm that the required improvements have been completed and maintained to the satisfaction of the Town, in addition to approval by the Planning Commission for the release of said Security and Improvement Guarantee.

A release request requires an application, supporting documents and full payment of any application fee.

Supporting documents required for a release request include:

• A Letter addressed to the Planning Commission requesting Surety Release.

• Certification by the Engineer of Record certifying the conditions of all improvements.

• Certification by a Licensed Landscape Architect or Arborist certifying the health of all plantings and that they are planted per the approved plans.

• Final Inspection and Approval from the Town of Nolensville’s Engineer.

RETURN OF SECURITY/ SURETY

Following approval from the Planning Commission for the Release of a Surety, and the acceptance by the Board of Commissioners for any required road dedication's, Right-of-Ways, and/or public easements, to the Town of Nolensville, the Original Irrevocable Letter of Credit shall be returned to the appropriate Financial Institution releasing the applicant/developer from their Agreement and responsibilities.

SURETY DEFAULT

If at any time in the Surety process, an applicant/developer fails to comply with any of the terms of the Improvement Guarantee Agreement, the Town, by and through the staff of the Planning Department, Town Engineer and Planning Commission, may determine that said Principal is in default. Upon default, the Town may exercise any of the remedies set forth in the Improvement Guarantee Agreement, or any combination of such remedies as may be deemed necessary. Nothing shall be construed to relieve the principal from the burden of full compliance with all terms indicated in the Improvement Guarantee Agreement.