HomeMy WebLinkAboutEscrow agreement ���-- ��--� �
BUILDING PERMIT ESCROW AGREEMENT � 1
OronoBuildingPermit#'_.o20/�-OI��I �1' cJQ�
AGREEMENT made this�day of ��, 20� by and between the CITY OF ORONO,
a Minnesota municipal corporation ("City")N11C.I�►A�- 1JIb�iL"9�i�} Kl�N1.�1�'(Stb�vners").
Recitals
1. A building permit application has been filed a
located at 17l�D .SG101r��t��r the ("Subject Property"), legally
described as
2. Owners request the City to review this application.
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 Escro�r
Agreement, the Owners shall deposit $2,500 with the City. All accrued interest, if any,�ShalA I�e pa�h��ta_�_•
reimburse the City for its cost in administering the escrow acco�tll���('�� W��,,,��� (�����'��,
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, en_qineerinq, 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 building 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 # a017-O( 0 g'1 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 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: CITY OF ORONO OWNER:
By: l ������ ���`" --==
�ts: nn�r �1��
Internal Use Only: G Original to Planning �Copy to Property Owner G Copy to Street File
Last Updated: January 2016