Changes to NCC LDIA Requirements

The New Castle County Department of Land Use has recently revised their bonding requirements for the Land Developers Improvement Agreement (LDIA). These changes can/will save developers money when they are not proposing to start their project immediately upon recordation. The following scenarios explain how the developer can take advantage of the new LDIA bonding/letter of credit requirements.

1. The developer has received the LDIA from NCC for execution and issuance of the Bond/LOC based upon the previous process. How do we go about getting the LDIA using the new bonding requirements?

The Developer should execute and submit the pending LDIA agreement with a performance bond, letter of credit, or certified check for $5,000.00 to the Department of Land Use. Part III of the LDIA will subsequently be revised by Department staff to reflect the accurate surety amount. Please note that the Department has no obligation to notify those individuals regarding the revised bonding requirements.

2. A project has not been recorded, but the LDIA has been recorded with the previous bonding requirements. How does the developer get back the previous bond and provide a new bond based upon the new process.

If construction has not begun, the Owner/Developer may request (by written request to the Land Use General Manager) that the LDIA be amended, whereupon a new bond in the amount of $5,000 in favor of New Castle County must be submitted to the Department. The existing surety instrument will be released upon recordation of the amended LDIA. Again, the Department has no obligation to notify those individuals regarding the revised bonding requirements.

3. A project has been recorded along with the LDIA based upon the previous process. How does the developer get back the previous bond and provide a new bond based upon the new process?

If construction has not begun, the Owner/Developer may request (by written request to the Land Use General Manager) that the LDIA be amended, whereupon a new bond in the amount of $5,000 in favor of New Castle County must be submitted to the Department. The existing surety instrument will be released upon recordation of the amended LDIA. Again, the Department has no obligation to notify those individuals regarding the revised bonding requirements.

Notes:

In the event that construction has commenced for a development project, all parties to the recorded LDIA will be subject to the existing Agreement, laws, and regulations in effect upon submittal of the application.

An annual administrative fee will apply until the full performance guarantee is posted, or until the fee is no longer required by the Department (ie. plan expiration, withdrawal, etc.).

As always, Landmark/JCM continues to work on behalf of our clients through all aspects of their project development. Please contact us so that we can make your next project a success.