02-10-2020 Council Packet - Laserfiche WebLink

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ESCROW AGREEMENT AGREEMENT made this day of ORONO, a Minnesota municipal corporation ("City") and 2020, by and between the CITY OF , a ("Builder") Recitals A. The City entered into a Development Contract for Orono Preserve ("Development") with OP5 Orono, LLC, a Minnesota limited liability company ("Developer") for Project Nos. 16-3807 and 16-3842, dated September 16, 2017 ("Contract"). B. The Contract requires Developer to provide a letter of credit ("Security") to the City in the amount of 150% of the cost of the Improvements. C. Developer has provided a Letter of Credit to the City and has installed the required Improvements. D. Through the course of construction of the Development, 48 sidewalk panels have been damaged and need to be replaced before the City will accept these Improvements. E. The Developer has agreed to provide the necessary security, in the amount of Thirty-nine Thousand and no/100ths ($39,000.00) Dollars to ensure the sidewalk panels are repaired or replaced. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. DEPOSIT OF ESCROW FUNDS. Contemporaneously with the execution of this Escrow Agreement and the return of the Security, the Builder shall deposit $39,000.00 with the City ("Escrow"). All accrued interest, if any, shall be paid to the City to reimburse the City for its cost in administering the escrow account. 2. PURPOSE OF ESCROW. The Escrow shall be substituted as the Security in the Contract. All terms of the Contract applicable to the Security shall apply to the Escrow. 3. REFUND OF ESCROW. The escrow shall be retained in its entirety until all sidewalk panels have been replaced to the satisfaction of the City. IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above written. CITY: CITY OF ORONO By: City Administrator/Planner/Building Official 207245v1 DEVELOPER: Un Its [print name] [title]