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1 <br /> <br /> <br />PUBLIC IMPROVEMENT SURETY AGREEMENT <br /> <br />Nadeau Acres 2nd Addition <br /> <br /> THIS PUBLIC IMPROVEMENT SURETY AGREEMENT ("Agreement") is entered into on <br />____________, 2021, by Registered Abstractors, Inc., a Minnesota corporation (hereinafter <br />"Escrow Agent"), City of Lino Lakes (hereinafter "City"), BL Holdings, LLC (hereinafter <br />"Developer"), and Premier Bank, a Minnesota corporation (“Bank”). <br /> <br />RECITALS <br /> <br /> WHEREAS, City and Developer have entered into a Development Agreement for <br />Nadeau Acres 2nd Addition dated June 14, 2021 pursuant to which Developer has agreed to <br />deposit certain funds as identified in Paragraph 2 below in escrow in lieu of a letter of credit; <br />and <br /> <br /> WHEREAS, the Development Agreement requires a Letter of Credit or Surety <br />Agreement be posted with the City in the amount of $1,051,000.00; and <br /> <br /> WHEREAS, the cash which is being deposited with Escrow Agent from the Bank is <br />part of the proceeds of a loan from the Bank to the Developer, and said cash shall be <br />deposited in an account held at the Bank in the name of the Escrow Agent under certain <br />terms and conditions acceptable to the Bank, and this Agreement shall include restrictions <br />on draws or the release of funds from said escrow account by all Parties to this Agreement. <br /> <br /> WHEREAS, Developer agrees to privately construct improvements ("Improvements") <br />serving Nadeau Acres 2nd Addition, which Improvements are more particularly described in <br />the Development Agreement. The Final Plat is attached hereto as Exhibit A; and <br /> <br /> WHEREAS, City and Developer desire that Escrow Agent disburse the advances and <br />Escrow Agent is willing to do so on the terms and conditions hereinafter set forth; and <br /> <br /> WHEREAS, capitalized terms used, and not otherwise defined herein, shall have the <br />meanings set forth in the Development Agreement; and <br /> <br /> NOW THEREFORE, in consideration of the foregoing recitals and other good and <br />valuable consideration, it is agreed between the parties as follows: <br /> <br />1. The Developer will deposit escrowed funds in the amount of $1,051,000.00 with Escrow <br />agent and these funds represent a portion of the loan funds which the Developer has <br />secured from the Bank (hereinafter “Loan Funds”). Such Loan Funds shall be deposited <br />in an Escrow Account at the Bank (“Escrow Account”) and held in the name of the <br />Escrow Agent. Escrow Agent acknowledges that the Escrow Account shall be utilized