10-14-2024 CC Agenda Packet - Laserfiche WebLink

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232998v1 CORE/2063606.0012/192738613.2 ESCROW AGREEMENT ESCROW AGREEMENT made this ______ day of _____________, 20___, by and between the CITY OF ORONO, a Minnesota municipal corporation (“City”) and 3350 FOX STREET, LLC, a Delaware limited liability company, and 3400 FOX STREET TRUST, under agreement dated September 16, 2022 (collectively, “Owner”). Recitals A. Pursuant to that Agreement for Sewer Line Extension (the “Extension Agreement”) executed concurrently herewith, Owner will be installing a sanitary sewer extension to serve each of Owner’s properties located at 3400 Fox Street & 3350 Fox Street, City of Orono, Hennepin County, Minnesota (the “Project”). The sewer extension is proposed to run through the private road of Fox Street (Outlot A, Fullerton Estates, Hennepin County, Minnesota) and the public right of way of Leaf Street. B. Pursuant to the Extension Agreement, the City is requiring Owner to cover all actual, reasonable out-of-pocket expenses incurred by the City for engineering review, inspection and legal consulting services associated with this Project, as more particularly described in the Extension Agreement (collectively, the “City Costs”). C. Pursuant to the Extension Agreement, Owner has agreed to provide a cash escrow to the City as financial security for Owner’s compliance with the Extension Agreement and Owner’s payment of the City Costs, subject to the terms and conditions of this Escrow Agreement. D. The City has determined that this Escrow Agreement constitutes adequate assurances from the Owner, sufficient to protect the City from potential damages and noncompliance with the City Code. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. INCORPORATION OF RECITALS AND DOCUMENTS. The recitals set forth above are acknowledged by the parties hereto to be true and correct and are hereby incorporated herein by reference. 2. DEPOSIT OF ESCROW FUNDS. Contemporaneously with the execution of this Escrow Agreement, Owner shall deposit ten thousand and No/100 dollars ($10,000.00) with the City (the “Escrow Funds”), which shall be deposited in a City account and held and later drawn upon or released by the City in accordance with the terms of this Escrow Agreement. All accrued interest, if any, shall be paid to the City to reimburse the City for its cost in administering the escrow account. The Escrow Funds shall not be used or pledged by the City for any other purposes except as set forth in this Agreement. 3. PURPOSE OF ESCROW. The purpose of the Escrow Funds is to guarantee that the sewer and water extension project is completed properly according to the approved plans by Sathre- Bergquist, Inc, dated October 9, 2025. Additionally, the Escrow Funds guarantee Owner’s 210