2014-112 Council Resolution - Laserfiche WebLink

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SECOND AMENDMENT TO PUBLIC IMPROVEMENT SURETY AGREEMENT NorthPointe THIS SECOND AMENDMENT is entered into on September , 2014, by Registered Abstractors, Inc., a Minnesota corporation ("Escrow Agent"), City of Lino Lakes ("City"), Tony Emmerich Construction, Inc., a Minnesota corporation ("Developer"), Parties to the original Public Improvement Surety Agreement ("Surety Agreement") and First Amendment to Public Improvement Surety Agreement ("First Amendment") which are attached as Exhibit D (collectively "Agreement") to that certain Development Contract & Planned Unit Development Agreement for NorthPointe dated August 8, 2014 ("PUD Agreement"), and First National Bank of Elk River, a national banking association ("Bank"). RECITALS WHEREAS, the First Amendment requires the payment of financial security of $730,589.00, in cash, to be deposited with Escrow Agent and a Letter of Credit posted with the City in the amount of $182,411.00; and WHEREAS, the Bank has required that the Surety Agreement be further amended to provide that the cash which is being deposited with Escrow Agent is a loan from the Bank to the Borrower, and said cash shall be deposited in an account held at the Bank in the name of the Escrow Agent under certain terms and conditions acceptable to the Bank, and said Surety Agreement shall further include restrictions on draws or the release of funds from said escrow account by all Parties including the Bank. NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, it is agreement between the Parties as follows: 1. Paragraph 1 of the First Amendment shall be further modified by adding the following sentence: "1. The deposit of funds in the amount of $730.589.00 represents the loan fund which the Developer/Borrower has secured from the Bank (hereinafter "Loan Funds"). The Loan Funds shall be deposited in an Escrow Account at the Bank ("Escrow Account") and held in the name of the Escrow Agent. Escrow Agent acknowledges that the Escrow Account shall be utilized only for draws for improvements undertaken and completed pursuant to the Surety Agreement, Development Agreement, and Loan Agreement between Borrower and Developer. 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 PUD Agreement.