07-21-2023 - Escrow Agreement to fix damages caused by builder

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ESCROW AGREEMENT This ESCROW AGREEMENT ("Agreement") is made this dayof T--ly ( g ) 2.4 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 227228