CHARTER TOWNSHIP OF ORIONPROPOSED ORDINANCE ADOPTIONAMENDMENT TO ORD. 78, ZONING ORDINANCE

NOTICE

CHARTER TOWNSHIP OF ORION
PROPOSED ORDINANCE ADOPTION
AMENDMENT TO ORD. 78, ZONING ORDINANCE

ARTICLE XXX
PERFORMANCE GUARANTEE

The Charter Township of Orion Board of Trustees, at the regular meeting of Monday, December
5, 2022, to be held at 7:00 p.m., at the Orion Township Municipal Complex Board Room, 2323
Joslyn Rd., Lake Orion, Michigan 48360, proposes to adopt an ordinance amending the Zoning
Ordinance No. 78, Article XXX, Section 30.09 for the Charter Township of Orion, Michigan;
providing for repeal of conflicting ordinances and portions thereof; and providing an effective
date.
THE CHARTER TOWNSHIP OF ORION ORDAINS:
SECTION 1 of Ordinance

Pursuant to the provisions of the Michigan Zoning Enabling Act, pursuant to all applicable provisions
of law, Article XXX is amended by adding the herein after language in the Article as follows:
ARTICLE XXX – Administrative Procedures & Standards

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Section 30.09 – Performance Guarantee
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D. Requirements. All performance guarantee, and completion agreements, and development agreements (including
PUD Agreements) shall meet the following requirements:
1. The performance guarantee shall be in the form of a cash deposit, irrevocable bank letter of credit, or
certified check, or performance bond acceptable to the Township, which shall be deposited with the
Township.
The performance guarantee shall be submitted along with a fully executed completion agreement, if
applicable, at the time of issuance of the permit authorizing the activity or project. The Township shall
deposit the funds in an account in a financial institution with which the Township regularly conducts
business. The fund shall not accrue interest.
2. The amount of the performance guarantee shall be sufficient to cover fifty percent (50%) of the total
estimated cost of improvements associated with a project for which site plan approval is sought, which
amount shall be reviewed and approved by the Township Engineers, with the inclusion of an administrative
fee payable as a separate fee, paid in cash, plus an administrative fee in an amount approved by the
Township Board in an amount set by the Township’s fee schedule (Ordinance No. 41). The only exception
to this requirement shall be for projects located in the Industrial Complex (IC) District as set forth in
Subsection D(3) below.
3. Projects located within the Township’s Industrial Complex (IC) District, as defined in Section 19.00, shall
be governed by all provisions set forth in Section 30.09, with the exception of Subsection (D)(2), above.
Instead, due to the increased cost and scope of projects located in the Industrial Complex (IC) District, the
amount of the performance guarantee for such projects shall cover a percentage of the total estimated cost
of improvements associated with a project for which site plan approval is sought, which may be less than
fifty percent (50%) of the total estimated cost of improvements. The Total estimated cost of improvements
associated with a project for which site plan approval is sought under this Section shall be approved by the
Township Engineers, with the inclusion of an administrative fee. The percentage of the performance
guarantee shall be recommended by Township Engineer and approved by the Township Board of Trustees.
4. The entire performance guarantee, without interest and less the ten percent (10%) detailed in Section 30.09
(D) (5) below, shall be returned to the applicant upon satisfactory completion of the required improvements
within the time limits specified in this Ordinance. The For a performance guarantee in the form of a cash
deposit or irrevocable bank letter of credit, an applicant may request that the performance guarantee be

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partially returned prior to completion of the required improvements if Township Administration determines
the improvements are at least fifty percent (50%) complete. If Township Administration determines the
Applicant meets the foregoing requirement, it shall return a portion of the performance in an amount as
work progresses in reasonable proportion to the ratio of work completed on the required improvements. For
a performance guarantee in the form of a bond, no reduction shall occur until the project or work for which
the bond was required is one hundred percent (100%) complete and all fees and other obligations for the
project to the Township are satisfied. The applicant is responsible to pay all costs and fees, including all
consultant or third-party fees, related to the Township’s determination of the reasonable proportion of the
work completed.
5. An amount not less than ten percent (10%) of the total performance guarantee shall be retained for a period
of at least one (1) year after installation of landscape materials to ensure their proper maintenance and
replacement, if necessary. This amount, without interest, shall be released to the applicant upon
certification by the Building Department Planning and Zoning Department that all landscape materials are
being maintained in good condition. For developments with landscaping intended to be installed in more
than one phase, the Planning and Zoning Director may, at their sole discretion, release a portion of the ten
(10%) percent of the performance guarantee after landscaping materials have been installed in at least one
phase for a one (1) year period. The amount released shall be prorated based on the percentage of the total
project (including all phases) which is completed at the time of review, as determined in the sole discretion
of the Planning and Zoning Director.
E. Unsatisfactory Completion of Improvements. Whenever required improvements are not installed or maintained
in accordance with the standards or time limits of this Ordinance or as set forth in a completion agreement, the
Township may complete the necessary improvements itself or by contract with an independent contractor, and
assess all costs of completing said improvements against the performance guarantee or other surety. Prior to the
completing of said improvements, the Township shall notify the owner, site plan review applicant, or other
individual or firm responsible for installation and maintenance of the required improvements provide thirty (30)
days’ notice to the persons that provided the performance guarantee and the licensee or holder of the permit,
certificate, or approval that required the performance guarantee.
F. Default and Use and Disposition of Bonds.
1. Bond Forfeiture. A bond shall be forfeited to the Township if: (i) a condition of the bond, or the Code,
permit, certificate, or approval that required the bond, is not satisfied, and complied with at the deadline for
that compliance, or (ii) if a licensee or holder of a permit, certificate, or approval fails to timely request a
required Township compliance inspection or review. The application for the permit, certificate, or approval
for which the bond was provided shall be deemed to have authorized the right of the Township by its
employees, agents, consultants, and/or contractors to enter upon the property to determine whether the
terms of any condition of the bond, or the Code, permit, certificate, or approval has been met.
2. Before forfeiting a bond, the Township will provide at least thirty (30) days’ written notice of its intention
to do so to the persons that provided the bond, the principal, and any sureties on the bond, and the licensee
or holder of the permit, certificate, or approval that required the bond. Such notice shall include the
opportunity to cure the default in a time and manner specified in the notice to the persons that provided the
bond and that obtained the Township permit, certificate, or approval. The proceeds of a forfeited bond shall
be applied or held by the Township toward the cost of accomplishing or securing compliance with the
conditions of the bond, Code, permit, certificate, or approval, and to cover the Township convenience fee in
accordance with Sec. F(4) with any portions not needed for that purpose to be refunded to the source of the
forfeited, drawn upon, or collected bond proceeds held by the Township. A notice given under this section
may be provided by first class mail or other delivery to addresses provided to the Township.
3. If the bond proceeds are insufficient in amount to pay for the costs that are, or will be, incurred by the
Township, the persons that provided the bond and/or that obtained the Township permit, certificate, or
approval, shall be required to pay, and are liable to the Township, jointly and severally, for such additional
amounts, which shall be paid within thirty (30) days of the Township’s written notice of deficiency.
4. The Township may incur actual costs in exercising its rights to cure or satisfy a default and achieve
compliance, as set forth herein. Any portion of the proceeds of a forfeited, drawn upon, or collected bond
that remain after payment of: (i) all actual costs, (ii) the Township’s administrative costs, (iii) an additional
convenience fee of up to five percent (5%) of the total bond amount to cover costs for consultant reviews,
and/or staff time to undertake review and enactment of the forfeiture in accordance with this Ordinance;
and (iv) any actual attorney and consultant fees incurred by the Township; shall be refunded to the person
who provided the bond funds that were used by the Township.
5. If a default on a requirement or condition of a bond, Code, permit, or certificate of approval is cured or
satisfied, and compliance is achieved by persons other than the Township after a bond that has been

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forfeited or subject to draw or collection, then any bond proceeds that remain after payment of any actual
attorney and consultant fees incurred by the Township, as well as administrative costs and convenience
fees, shall be refunded to the source of the forfeited, drawn upon, or collected bond proceeds held by the
Township.

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SECTION 2 of Ordinance

All other ordinances or parts of ordinances which are inconsistent or in conflict herewith are
hereby repealed to the extent of such inconsistency or conflict.
SECTION 3 of Ordinance

The various parts, sections and clauses of this Ordinance are declared to be severable. If any part,
sentence, paragraph, section or clause is adjudged unconstitutional or invalid by a court of
competent jurisdiction, the remainder of the Ordinance shall not be affected.

SECTION 4 of Ordinance

This Ordinance shall be published in full in a newspaper of general circulation in the Charter
Township of Orion, qualified under State law to publish legal notices, and shall become effective
upon publication, as provided by law.

SECTION 5 of Ordinance

This Ordinance is hereby declared to have been adopted by the Board of Trustees of the Charter
Township of Orion at a meeting thereof duly called and held on the day of December 2022
and ordered to be given publication in the manner prescribed by the Charter of the Township of
Orion.
Complete copies of the proposed Ordinance can be viewed on the Township’s website,
www.oriontownship.org and also are on file in the office of the Township Clerk, 2323 Joslyn
Road, Lake Orion, Michigan, 48360, where they may be examined during normal business
hours, 8:30 a.m. to 4:30 p.m., Monday through Friday. Written comments may be submitted
before the meeting to Penny S. Shults, Clerk, at the address listed above.
Penny S. Shults, Clerk
Charter Township of Orion

Publish: 11.16.22

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