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1 BUILDING PERMIT ESCROW AGREEMENT Orono Building Permit#2014-00551 &Demolition Permit#2014-00548 AGREEMENT made this day of , 2014, by and between the CITY OF ORONO, a Minnesota municipal corporation ("City") and ("Owners"). Recitals 1. A demolition permit application has been filed for the property at 3700 Northern Avenue ("Subject Property") which is currently described in Exhibit A attached, concurrently with a building permit application for a new home to be constructed upon successful completion of a pending subdivision within the Subject Property. The future address of the new home is anticipated to be assigned as 3750 Northern Avenue, on a portion of the Subject Property anticipated to be legally described as Lot 1, Block 1, Northern Oaks, Hennepin County, Minnesota. 2. Owners request the City to review the applications. 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 FOLLOWS: 1. DEPOSIT OF ESCROW FUNDS. Contemporaneously with the execution of this Escrow Agreement, the Owners shall deposit$2,500 with the City. 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 purpose of the escrow is to guarantee reimbursement to the City for all 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 demolition and building permit applications. 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 #2014-00551 & demolition permit#2014-00548 if compliance with the approved permits 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 payment to the City within the timeframe outlined 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 account without further approval of the Owners to reimburse the City for eligible expenses the City has incurred. 5. CLOSING ESCROW. The Balance on deposit in the escrow, if any, shall be returned to the Owners when all requirements related to the project are complete. City Staff shall review the terms of this escrow agreement two times per year to determine whether the requirements of the project have been successfully completed and whether 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 eligible expenses 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 366.012. CITY: ITY OF ORONO OWNER: By: w Its: w�� rna�else,OMy t}n'gfirwat fctlnninmu __ _ 1 G_�apy_to r-0— r- k°' G Coag to Stmt Frit