A BILL TO BE ENTITLED
AN ACT authorizing cities to require performance guaranteeS when INDUSTRIAL PROPERTY IS BEING DEMOLISHED.
The General Assembly of North Carolina enacts:
SECTION 1.  Part 5 of Article 19 of Chapter 160A of the General Statutes is amended by adding a new section to read as follows:
"§ 160A‑440.  Demolition of industrial buildings; performance guarantees required.
(a)	A city may 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. The type of performance guarantee shall be at the election of the owner, but the owner shall, 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 demolition and removal shall be completed. For purposes of this section, the term "performance guarantee" means any of the following: (i) a surety bond issued by any company authorized to do business in this State, (ii) a letter of credit issued by any financial institution licensed to do business in this State, or (iii) any other form of guarantee that provides equivalent security to a surety bond or letter of credit.
(b)	The performance guarantee shall be returned or released, as appropriate, in a timely manner upon the acknowledgement by the city that the demolition and removal of all material has been completed. If demolition and removal of all material has not been completed and the current performance guarantee is expiring, the performance guarantee shall be extended, or a new performance guarantee issued, for an additional period until demolition and removal of all material is completed. The owner shall demonstrate reasonable, good‑faith progress toward completion of the demolition and removal of all material that is the subject of the performance guarantee or any extension. The form of any extension shall remain at the election of the owner.
(c)	The amount of the performance guarantee shall not exceed one hundred twenty‑five percent (125%) of the reasonably estimated cost of completion of demolition and removal of all material at the time the performance guarantee is issued. Any extension of the performance guarantee necessary to complete demolition and removal of all material shall not exceed one hundred twenty‑five percent (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.
(d)	The performance guarantee shall only be used for completion of the demolition and removal of all material from the site and for no other purpose.
(e)	Nothing in this section shall be construed as authorizing a city to require performance guarantees for demolition of residential property."
SECTION 2.  This act becomes effective July 1, 2017.