HomeMy WebLinkAbout07-21-2023 - Escrow Agreement to fix damages caused by builder ESCROW AGREEMENT
This ESCROW AGREEMENT ("Agreement") is made this dayof T--ly
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2023, by and between the City of Orono, a Minnesota municipal corporation ("C' ") and
CedaRock Builders LLC, a Minnesota limited liability company, 7675 — 84th Avenue North,
Greenfield, Minnesota 55373 ("Builder").
RECITALS
1. Builder is the builder of a residence on that certain real property located at 1940 Lakeview
Terrace, City of Orono, County of Hennepin, State of Minnesota, PID: 2711823420007 (the
"Property"), which is owned in fee title by Barbara Jumppanen and Alexander Jumppanen,
married to each other (the "Owners");
2. Lakeview Terrace is a public street, owned and maintained by the City, and was repaved in
2022 (the "Street");
3. During the construction of the residence on the Property,Builder's equipment and construction
activity caused certain damage to the surface of the Street, namely, several cracks on the edge
of the north side of the Street in front of the lots numbered 1960, 1940, and 1900 Lakeview
Terrace, as depicted outlined in red on Exhibit A(the "Project Area");
4. Builder and the Owners do not dispute that such damage was caused by Builder's equipment
and construction activity,and have agreed to undertake a project to repair the damage,as further
described below(the "Project");
5. Builder estimates that the Project will take approximately five days to complete;
6. The parties have agreed that if Builder fails to complete the Project as provided in this
Agreement, the City will complete the Project at Builder's cost; and
7. As guarantee that such repair project will be completed by Builder, Builder has further agreed
to escrow funds as provided in this Agreement,to be used by the City in the event the City must
complete the Project.
NOW THEREFORE, the parties agree as follows:
1. Deposit of Escrow Funds. Contemporaneously with the execution of this Escrow
Agreement, Builder shall deposit $5,000.00 with the City ("Escrow Account"). 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 the completion of the
Project by Builder as provided in this Agreement, and to reimburse the City for all out-of-pocket
costs the City would incur if the City must complete the Project. The Project will include milling
or cutting out damaged pavement, patching the area where pavement is milled or cut out, and
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aligning repaired sections with existing shoulder, and will include repair of all damaged surface in
the Project Area.
3. Obligations of Builder. Builder is required to do all of the following:
A. Time is of the essence with this Project,and accordingly,Builder must complete the Project
to the City's full satisfaction on or before June 1, 2024, including any restoration of any
public or private landscaping, turf,trees, shrubbery, infrastructure, or other improvements
that are disturbed by the Project, as well as any "punch list" items identified by the City
during an inspection upon substantial completion of the Project. All work related to the
Project must comply with City specifications for street projects.
B. Prior to commencement of construction of the Project, Builder will provide the City with
complete construction plans for the Project, and make any changes or modification to such
plans as directed by the City. Builder will design and construct the Project so as to ensure
public safety and to minimize disruption to the public and neighboring properties.
C. Following approval of the plans for the Project and prior to entering onto the public
property to construct the Project, Builder must coordinate with the City as to any street,
sidewalk, or trail closures that will be necessary for performance of Project activities, as
well as signs necessary to direct traffic or pedestrians in the interest of public safety.
Builder must provide the City with notice at least five business days prior to
commencement of construction of the Project.
D. Upon substantial completion of the Project, Builder must notify the City of the same, and
request an inspection of the Project by the City.
4. Obligations of the City. The City is required to do all of the following:
A. Upon execution of this Agreement, receipt of the escrow funds, and completion of any
other applicable requirements,the City will close the building peilnit and issue a Certificate
of Occupancy for the Property.
B. If Builder does not complete the Project to the City's full satisfaction on or before June 1,
2024, the City will complete the Project at Builder's expense with all out-of-pocket City
costs being reimbursed from the Escrow Account.
C. Upon notice of substantial completion of the Project, the City will conduct an inspection
of the work. No escrow funds will be returned to Builder until the City has conducted a
final inspection of the Project.
5. Disbursement from Escrow Account. The City may draw from the escrow account from
time to time without further approval of Builder to reimburse the City for eligible expenses the
City has incurred. The City is not obligated to notify Builder of any draw on the Escrow Account.
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6. Closing Escrow. The balance on deposit in the Escrow Account, if any, will be returned
to Builder when the Project has been completed and approved by the City.
7. Incorporation of Recitals and Exhibit. The parties agree that the Recitals made at the
beginning, and the Exhibit attached to this Agreement,' of this Agreement are true and correct,
and, by this reference, are incorporated into this Agreement.
IN WITNESS WHEREOF, the parties to this Agreement have executed and delivered this
Agreement to be effective as of the date signed and executed by the last party.
[signature page follows]
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Signature page for Escrow Agreement between City of Orono and CedaRock Builders LLC
CITY OF ORONO, CEDAROCK BU DERS LLC,
a Minnesota municipal corporation a Minnesot i ited li bility company
Adam Edwards Be min aisanen
City Administrator Manager
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Exhibit A
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