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HomeMy WebLinkAboutescrow agreement i��II il LAND USE APPLICATION ESCROW AGREEMENT Application #09-3436 AGREEMENT made this 19th day of November 2009, by and between the CITY OF ORONO, a Minnesota municipal corporation ("City") and Lori & Richard Gherardi ("Owner"). Recitals 1. Owner has filed Zoning Application #09-3436 formally requesting a variance from the City for an attached garage located at 2700 Ethel Avenue the ("Subject Property") as legally described as Lots 13 and 14, Block 2, Casco Heights, Hennepin County, Minnesota. 2. Owner requests the City to review said pians. 3. The City is willing to 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 Owner shall deposit $2,500.00 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, or legal consultant review) or will incur in meeting with the Owner, reviewing the plans, and preparing agenda packet material for City Council review of application #09-3436. Eligible expenses shall be consistent with expenses the Owner would be responsible for under a zoning and subdivision application. 3. MONTHLY BILLING. As the City receives consultant bills for incurred costs, the City will in turn send a bill to the Owner. Owner shali be responsible for payment to the City within 30 days of the Owner's receipt of bill. 4. DISBURSEMENT FROM ESCROW ACCOUNT. In the event that the Owner does not make payment to the City within the timeframe outlined in #3 above, the City may draw from the escrow account without further approval of the Owner to reimburse the City for eligible expenses the City has incurred. The City shall notify the Owner of such draw and the nature of the expense for which the reimbursement is being made. If the Escrow amount falls below 75% of the original escrow amount the Owner shall deposit additional sums as directed by the City, or the City shall discontinue all review. 5. CLOSING ESCROW. The Balance on deposit in the escrow, if any, shall be returned tp'the Owner when the review has been completed. � 6. CERTIFY UNPAID CHARGES. If the project is abandoned by Owner, 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. `� r CITY: CITY,QF �NC� OWNER: ,� , /' �F �f / ` ` By: = By:__ (',�����it _ , � � Its: ! _� (`�;�Vl �"L�. -4� Its; Internal Use Onty: 0 Original to Finance Department 0 Copy to Zoning File � Copy to Street File