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HomeMy WebLinkAboutEscrow agreement w 1 • ESCROW AGREEMENT �c,�'o bt� v AGRL�MENT made this 2n� day oP 2006, between the CITY OF ORONO, a Minnesota municipal corporation ("City") and Gregoiy S. I-Iaugen & Cynthia M. Haugen, husband and wife ("Property Owners"). Recit�ls A. The Property Owners own the land located at 3320 Fox Street, Orono, legally described as Lot 5, Block 1, Fullerton Estates, Hennepin Couniy, Minnesota (the "Property"). B. The Property Owners will be making alterations to the Property for an in-ground pool that will include creating buffers for the wetlands on the Property. C. The City is requiring a security agreement to guarantee the required revegetation of the buffer is successful. D. The Property Owners have agreed to provide financial security for the completion of the items cited above by entering into this Escrow Agreement. L. The City has detei�nined that this Escrow Agreement constihites adec�uate assurances from Properly Owners, sufficient to protect the City from potential damages and noncompliance with the City Code. NOW,THER�FORE,THE PARTIES AGREE AS FOLLOWS: 1. DEPOSIT OF �SCROW FUNDS. Contemporaneously with the execution of this Escrow Agreement, the Property Owners shall deposit $1,900 with the City. All lccrued interest, if any, shall be paid to the City to reimburse the City for its cost in administering the escrow account. 2. 1'URl'OS� OF �SCROW. The purpose of the escrow is to guarantee that the seeding of the buffer required as part of Resolution No. 5476 is completed properly and that any veget�tion that does �lot establish successfully is replaced. A planting is deemed successful if there is �t least one native plani fi•om the seed mix per square Poot in the seeded area. nreas where lhe planting is not successfiil shall be re-seeded by the end of the growing season. "1'he funds shall be spent by the City if for any reason the Property Owners are unable OI' llI1W1I�111� t0 honor the requireinents of the City Code �nd any �. � Development Agreement. Consfiruction costs may 11so include engineering estimates and pl�ns as well as labor ancl materials for any repairs or matters completed. 3. R�QUiRED IMPROVEM�NTS. The following items need completion prior to rinal approval by the City�s set forth herein and as detailed on the attached plans: i. Est161ishment of buffer areas as shown in the �pproved plans by Dale Gustafson dated June 4, 2006. 4. llISI3U12SEMENT FROM ESCROW ACCOUNT. If the City suspects or knows of any matter cited above that is not completed correctly and in a timely fashion, it shall first make demand of lhe Property Ov�mers to make any necessary repairs or to talce other prudent remedial measures within a 5 day time period. If the Property Owners are unwilling or unable to honor this agreernent as determined by the City, the City may draw from the �scrow Account, as necessary. The remedies afforded to the City under this agreement shall be in addition to any other remedies which the City may be entitled by law or equity or other agreement. 5. CLOSING ESCROW. The escrow, less any eligible expenses, shall be returned to the Pi•operty Owners two growing seasons after planting if the planting is successful. If substantial portions of the plantings are not successfiil after one planting season the City may hold the escrow for an additional planting season. If substantial portions of the plantings are not successful after two planting seasons the City may hold the escrow for two additional planting seasons. 6. ACCESS TO PROP�RTY. 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