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10o UJyna roere 12cL <br /> ESCROW AGREEMENT <br /> 1141 <br /> AGREEMENT made this day of ;1-1-16e 2010, by and between the <br /> CITY OF ORONO, a Minnesota municipal corporation("City")and Jeffrey G. Kruesel and <br /> Sheila M. Kruesel,husband and wife ("Owners"). <br /> Recitals <br /> A. The Owners intend to purchase Lot 1, Block 1, Wyndmere 2nd Addition,in the <br /> City of Orono, Hennepin County, Minnesota ("Subject Property"); <br /> B. As a condition of the sale the City requires the septic system on the Subject <br /> Property be replaced. <br /> C. The City is requiring that Owners establish an escrow to pay for costs incurred by <br /> the City to guarantee that the replacement of the septic system on the Subject <br /> Property is successful. <br /> D. The Owners have agreed to replace the septic system before September 1,2010. <br /> They have signed a contract and made a down payment to the installer. The Owners <br /> have agreed to provide financial security for the completion of the items cited above <br /> by entering into this Escrow Agreement. <br /> E. The City has determined that this Escrow Agreement constitutes adequate <br /> assurances from The Owners, sufficient to protect the City from potential damages <br /> and noncompliance with the City Code. <br /> NOW THEREFORE,THE PARTIES AGREE AS FOLLOWS: <br /> 1. DEPOSIT OF ESCROW FUNDS. Contemporaneously with the execution of this <br /> Escrow Agreement,the Owners shall deposit$16,500("Escrow") with the City("Escrow <br /> Account"). All accrued interest on the Escrow Account, if any, shall be paid to the City <br /> to reimburse the City for its cost in administering the Escrow Account. <br /> 2. PURPOSE OF ESCROW. The Escrow shall be spent by the City if the Owners for any <br /> reason are unable or unwilling to honor the requirements of the City Code. The City may <br /> use the escrow amount to reimburse itself for all engineering and legal expenses <br /> associated with the replacement of the existing septic system if the Owners fail to replace <br /> the septic. <br /> 3. REQUIRED IMPROVEMENTS. The Septic System per plans approved by the City. <br /> 4. DISBURSEMENT FROM ESCROW ACCOUNT. If the City suspects or knows of any <br /> matter cited above that is not completed correctly and in a timely fashion,it shall first make <br /> demand of the Owners to make any necessary repairs or to take other prudent remedial <br /> 141938 1 <br />