06-22-2020 Council Packet - Laserfiche WebLink

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2 only for draws for improvements undertaken and completed pursuant to the Grading Agreement. In no event shall Escrow Agent be allowed to comingle any Funds or withdraw any Funds from said Escrow Account for any use other than reimbursement for the costs of improvements defined in the Grading Agreement. 2. The Escrow Agent is authorized and directed to disburse the funds deposited hereunder to contractors and material suppliers to pay the costs of construction of the identified improvements (See Attachment B) to be constructed on the described real property as such property is identified in the Grading Agreement. The number of permissible draws and the fees to be charged therefore is as is set forth herein. Regardless of any provision to the contrary, no Funds shall be released from the Escrow Account to the Escrow Agent for disbursement unless the same is approved by both the City and the Bank. After disbursement of funds, the Escrow Agent shall collect partial or final lien waivers (as appropriate) to evidence the payments then made to the contractors and material suppliers with respect to the Improvements. 3. Prior to each disbursement of funds by the Escrow Agent to the Deve loper, the City, the Bank and Escrow Agent must be furnished with the following items and the following must be approved by both the City and the Bank prior to any further distribution of any Escrow Funds by Escrow Agent: a. Sworn Construction Statement, setting forth all contractors and material suppliers with whom the Developer has contracted, the amounts of each contract, the amounts paid-to-date, the amounts being requested, and the balances due. b. The draw request by the Developer for the requested disbursement. c. Written Approval by the City of the disbursement request, which approval shall (i) not be unreasonably withheld or delayed, and (ii) be provided within ten (10) business days following the date submitted by the Escrow Agent [in accordance with Paragraph 7 below] with confirmation from the Escrow Agent that Developer has provided all of the items required to be submitted under this Paragraph 3. Failure by the City to respond to such request within such 10 business day approval period shall automatically be deemed to be City’s approval to same. Escrow Agent may communicate with City electronically relative to these requests. d. To the extent not already collected by the Escrow Agent, full or partial, up-to- date lien waivers; plus affidavits supporting lien waivers and releases of lien if necessary, in a form satisfactory to Escrow Agent and City.