2016-00134 - escrow fee - Laserfiche WebLink

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. . :ono 3uildina Permit# 020/(a ' �d/� � -aREEMENT made this �irst day of repruary . 2016 , by and between the CITY OF ORONO, a Minnesota municipal coruoration ("Citv"1 and Elizabeth and Jule Hannaford ("Owners"). Recitals 1. A building permit application has been filed for a new single family residence located at i��racketts f�oint Road. Orono. MN 55391 tne ("Subiect Property"l. leaaliy described as (see attachmentl 2. Owners request the City to review this application which requires City approval and may repuire consultant lepai and/or engineerina revie+n�. 3. The City will commence its review of the application and incur costs associated with said review only if the Owner establishes an escrow to ensure reimbursement to the City of its costs. NOW THEREFORE.THE PARTIES AGREE AS FOLLOW� 1. DEPOSIT OF ESCROW FUNDS. Contemporaneously with the execution of this Escrow Agreement, �e Owners shall denosit$2,500 with the City. All accrued interest, if any, shal) be paid to the City to reimburse the City for its cost in administering the escrow account. 2. PURPOSE OF ESCROW. The purpose of the escrow is to auarantee reimbursement to the Citv for ai, out-of-pocket costs the City has incurred (including planning, engineering, in excess of$500, or legal consultant review) or will incur in reviewing the plan. Eligible expenses shall be consistent with expenses the Owners would be responsible for under a buildina permit application. The escrow will also guarantee reimbursement to the City for all out-of-pocket costs the City has incurred to assure that the work is completed in accordance with the Stormwater Pollution Prevention Plan and the provisions of Orono City Code Chapter 79. The financial security may also be used by the City to eliminate any hazardous conditions associated with the work and to repair any damage to public property or infrastructure that is caused by the work (including planning, engineering, or legal consultant review) associated with building permit #d0!(o-vD/33 if compliance with the approved building permit is not accomplished. 3. MONTHLY BILLING. As the City receives consultant bills for incurred costs, the City will in turn send a bill to the Owners. Owners shall be responsible for payment to the City within 30 days of the Owners' receipt of bill. 4. DISBURSEMENT FROM ESCROW ACCOUNT. In the event that the Owners do not make pavment to tr� City within the timeframe outfined in #3 above, shall issue a Stop Work Order until the Owners pay all expenses invoiced pursuant to#3. The City may draw from the escrow accou�t without further approval of the OwnerS to reimburse the City for eligible expenses the Ciry has incurred. 5. CLOSING ESCROW. The Balance on deposit in the escrow, if any, shall be returned to the Owners wMen al1 requirements related to the project are complete. City Staff shatl review the terms of this escrow agreement two times per year to determine whether the requirements of the project have been successfully completed and whetne� it is appropriate to return the funds. Owner may also request the release of the funds, and such funds shall be released upon City Staff receiving the appropriate verification that all requirements of the project have been successfully completed. 6. CERTIFY UNPAID CHARGES. If the project is abandoned by Owners, or if the eligibie ex�enses incurred by the City exceed the amount in escrow, the City shall have the right to certify the unpaid balance to the subject property pursuant to Minn. Stat. §§415.01 and 366.0'I= CITY: CITY OF ORONO OWNER: By:��:�,�I��;� 1��, �r�.-��'� �"�' Irc.�l �t� ��1�� S►s�� ntemal Use Only: �Original to Finance Department �Copy to Street File � I �