The developer proposed the bond amount. Who checked it?
On most data-center approvals the financial assurance figure arrives as a negotiated number with no stated basis — and is released on a calendar rather than on evidence. DICA replaces it with a published function, cited documents, and a reviewer your jurisdiction directs.
The figure is not wrong so much as unaccountable.
A hearing does not usually turn on whether $40 million is the right amount. It turns on the fact that nobody in the room can say where $40 million came from — which means it cannot be defended when challenged, cannot be raised when circumstances change, and cannot be lowered when the applicant does the work to deserve it.
No stated basis
The number is a negotiation outcome. It carries no function, no inputs, and no record of what it was meant to cover — so every future dispute restarts from zero.
No evidence discipline
An applicant’s own estimate and an independent reviewed study count the same. The diligent applicant is charged exactly what the undiligent one is.
Release on a calendar
Assurance steps down because time passed, not because risk fell. The instrument expires at the moment the obligation matures.
Four questions, asked in order, each answered once.
Most arguments about assurance are really arguments about double-counting — the same protection credited twice, or the same uncertainty charged twice. Fixing the order removes the argument.
What is ours?
The share of a cost this project causes, separated from background growth it did not create.
What already covers it?
Contract, insurance, tariff and statute standing ahead of the community, credited at instrument strength.
How well is it known?
Evidence class drives the loading. This is the lever the applicant controls — and the reason to prove things.
How much to cover?
A continuous coverage function. No bands, so no project sits just on the favorable side of a line.
Same project. Two ways of arriving at a number.
- Basis of the amount — not stated
- Which costs it covers — not stated
- Evidence behind the inputs — not distinguished
- What would raise or lower it — renegotiation
- Reproducible by a third party — no
- Basis — published function, named version
- Coverage — itemised by exposure bucket
- Evidence — each input classed and cited by digest
- What lowers it — better evidence, computed
- Reproducible by a third party — yes
This is the argument to make in a hearing room: DICA is not a demand for a bigger number. It is a demand that the number have a reason — which is as often an argument for lowering it as raising it.
The four things the applicant’s lawyer will say.
Take the kit to your next pre-application meeting.
Six documents. Everything a jurisdiction needs to require a determination without writing a new ordinance — drafted to sit inside the development agreement you already use.
- Model assurance clause MC-6, with drafting notes
- Peer-review funding mechanism — applicant-funded, jurisdiction-directed
- Assessor conduct and conflict-of-interest rules
- Release and step-down schedule template
- Three-page staff briefing memo in plain English
- Objection handling — developer counsel’s arguments, with answers