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To: Finance Department �
From: Christine Mattson, Planning Assistant �
Date: 5/10/2011 �
Re: Building Permit Escrow Refund
The Lindbloom's requested a temporary certificate of occupancy which required a $10,000
escrow to be submitted. The new escrow amount received on April 29, 2011, therefore there
is no need to verify bills are paid to date. Please refund the initial escrow amount of $2,500
(original attached)to:
Julie A. Lindbloom
2690 Rainey Road
Wayzata, MN 55391
w:\street files\fox street�2400\escrow refund memo for 2500 2009-00803.docx
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BUILDING PERMIT ESCROW AGREEMENT /
Orono Building Permit#2009-000803
AGREEMENT made this 5�' day of.December, 2009, by and between the CITY OF ORONO, a
Minnesota municipal corporation ("City") and Chad M. and Julie A. Lindbloom ("Owners").
Recitals
1. Building permit applications have been filed for a new principal structure located at 2400 Fox
Street the ("Subject Property"), legally described as Lot 1 Block 1 Majestic Spruce Addition, Hennepin County
Minnesota.
2. The 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 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 ptanning, engineering, in excess of $500, or legal
consultant review) or will incur in reviewing the plan. Eligible expenses shall be consistent with expenses the
Owner 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 #2009-00803 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, 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. The City shall
notify the Owners 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 Owners shall deposit additional sums as
directed by the City, or the City shall discontinue review and post a Stop Work Order.
4. CLOSING ESCROW. The Balance on deposit in the escrow, if any, shall be returned to the
Owner when the review has been completed and written notification is received from the Owners requesting the
funds.
5. 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 NERS:� �
By: �
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j Internal Use Only: '0 Original to Finance Department �Copy to Street File
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