Orono Woods Storm/Sanitary Relocation

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Apr-30-02 04:16pm From-LEONARD, STREET AND DEINARD + T-423 P.005/013 F-587 • ESCROW AGREEMENT FOR SEWER RELOCATION ON LOT 2,BLOCK 1, ORONO AMBAR This Agreement is made December 3, 2001 by and among Sidney B. Rebers and Barbara L. Rebers,Husband and wife ("Seller"), Orono Ambar, LLC ("Buyer") and Universal Title Company("Universal")relating to the sale of Lot 1,Block 1, ORONO AMBAR, Hennepin County, Minnesota("Property"),for the benefit of the City of Orono. On the date hereof, Seller sold and deeded the Property to Buyer,pursuant to a Purchase Agreement dated October 8, 2001, as amended. Paragraph 22 of the Purchase Agreement reads as follows: 22. Relocation of Sewer Line. There is a sanitary sewer line in that portion of Outlot F, Sugar Woods that is owned by the State of Minnesota,namely Parcel 242A in Minnesota Department of Transportation Right-of-Way Plat No. 27-56. Buyer hereby consents to Seller granting to the City of Orono a utility and drainage easement in the Property up to 30 feet wide along the boundary between the Property and Parcel 242A. If the sewer line must be relocated from Parcel 242A into the new easement area for any reason,then Seller shall pay all costs of relocating the sewer line. However,Buyer shall remain responsible for all earthwork, erosion control, landscaping and other costs of(a) expanding the pond in Parcel 242A, if necessary to accommodate development of the Property by Buyer, and (b)berming the new easement area,if required by the City of Orono or desired by Buyer. Seller reserves all claims Seller may have against third parties for recovery of the costs of relocating the easement and relocating the sewer line. Buyer has undertaken to relocate the sewer line at Seller's expense; the City Engineer has estimated that it will cost$21,038 to relocate the sewer; and the City Council requires a bond or other financial security in the amount of 150% for all subdivision improvement work. Upon execution of this Agreement Seller has deposited $21,038 x 150% = $31,557 with Universal to provide financial security to the City of Orono for relocation of the sewer line. Buyer has obtained a fixed price bid of$34,265 for relocating the 'sewer. Seller will re- bid the work and attempt to find a union contractor who will do the work for less than$34,235. If Seller selects a contractor who will do the work for more than $31,557, then Seller shall promptly augment the escrow fund with enough money to pay the contractor. Universal agrees to hold all the money(the initial $31,557 plus any additional amount) in escrow pursuant to: (1)paragraph 22 quoted above.; (2)the terms of Universal's standard form of escrow agreement attached hereto as Exhibit A; and (3) such additional escrow terms as the parties hereto and the City of Orono may agree upon. In case of any conflict, item 3 shall prevail over item 2, and item 2 shall prevail over item 1. When Universal receives from the City of Orono written notice that the sewer line has been relocated into the Property pursuant to Buyer's utility plans approved by the City and receives from Buyer evidence that all costs of relocating the sewer line have been paid in full, 2156328v Printed 12/3/2001 11:07 AM