Surety

Gallatin Zoning Ordinance Section 15.030.080  requires any applicant for a Site Plan or Final Master Development Plan to submit a site surety in the amount of the estimated cost of site improvements including, but not limited to, water line and sewer line installation, parking lot and driveway paving, drainage conveyances, installation of landscaping and screening barriers, site grading, erosion control, sidewalks and lighting fixtures.  This is to ensure the site will be restored to a natural condition.  

Gallatin Subdivision Regulations, Chapter 3, requires any applicant for a Subdivision Plat to submit a subdivision surety in the amount determined by the Engineering Division.  Additional sureties may be required including,  Land Disturbance, Maintenance and Utility sureties.  The Gallatin Public Utilities Department, or other utility service provider, determines the amount of Utility Sureties.  
  

General Requirements for Submitting a Surety

  • A surety shall be in the form of cash, certified check, or Irrevocable Letter of Credit.  
  • All Irrevocable Letters of Credit submitted to the City must either be payable at a local bank within a 50-mile radius of the corporate limits of the City of Gallatin or specifically state the Letter of Credit can be drawn upon by certified mail.
  • The surety shall name the City of Gallatin as obligee, shall comply with all statutory requirements and shall be satisfactory to the City Attorney as to form, sufficiency of surety, and manner of execution.  
  • All Irrevocable Letters of Credit shall be issued for such time as the Planning Commission deems necessary for the completion of the improvements enumerated in the first paragraph of this section, but shall in no event exceed one year and must contain automatic renewal provisions, in language satisfactory to the City Attorney, that provide for automatic renewal of the Irrevocable Letter of Credit unless the City is provided at least sixty days notice of non-renewal by the issuer of said Irrevocable Letter of Credit.
  • Upon proof of difficulty, the developer may petition the City, by completing the form below, for an extension of time for completion of improvements.  The Planning Commission may, upon proof of difficulty, grant an additional one year extension. 
  • A surety may be reduced by the City upon actual completion and inspection of site improvements and then only to the ratio that the improvements completed bears to the total improvements for the plan.  In no event shall a surety be reduced below fifteen percent of the principal amount prior to final acceptance of all items covered under the surety.  A surety reduction shall be approved a maximum of twice a year not more than once in any three month period. 
  • A surety may be released from obligation once all improvements are complete and accepted by the City and final inspection is satisfied.  In some cases, a Maintenance Surety will be required for one year after release of the performance surety.