2016.04.04 CC Packet - Laserfiche WebLink

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ESCROW AGREEMENT THIS ESCROW AGREEMENT ("Agreement") is made effective as of March 25, 2016 ("Effective Date'), by and between Team Two Investments, LLC, a Minnesota limited liability company ("Seller'), Hugo Daycare Properties LLC, a Minnesota limited liability company ("Purchaser"), and the City of Hugo, Minnesota (the "Escrow Agent"). RECITALS A. Seller has agreed to sell to Purchaser property in Washington County, Minnesota legally described as Lot A, Frenchman Place 2nd Addition, Washington County, Minnesota (the "Property"). B. It is the intent of the Purchaser to build a daycare on the Property (the "Project"). C. Purchaser sought permission from the Escrow Agent to construct a daycare building on the Property. D. On or about February 7, 2016 the Escrow Agent approved the construction of Project on the Property but their approval was subject to conditions including the following: (i) The developer shall provide an escrow in the amount of Ten Thousand One Hundred Fifty and no/100 Dollars ($10,150.00) to purchase wetland banking credits in the event that the in - advance project specific credits are not available. E. Purchaser is concerned that the amount requested by the Escrow Agent would not be sufficient to purchase wetland banking credits forthe Project and has requested an escrow amount of Twenty Thousand and no/100 Dollars ($20,000.00). F. Seller has agreed to escrow Twenty Thousand and no/100 Dollars ($20,000.00) with the Escrow Agent AGREEMENT In consideration of the mutual covenants and agreements contained herein, the parties agree as follows: 1. The Recitals are incorporated into and made a part of the Agreement. 2. Seller agrees that on the closing of the sale from Seller to Purchaser on or about March 28, 2016, Seller will escrow, with the Escrow Agent, from the closing proceeds, the sum of Twenty Thousand and no/100 Dollars ($20,000.00). 3. The cash escrow will be held by the Escrow Agent and will cover the cost of purchasing wetland credits through an alternate wetland bank if for any reason the on-site wetlands cannot be certified and used as credits for the Project 4. The escrow amount will be held by the Escrow Agent until the Escrow Agent can determine whether the on-site wetlands can be certified andlrsed as credits for the project, or March . 31, 2020, whichever comes first. 5. If the on-site wetlands are not approved by March 31, 2020, then Purchaser can use the escrowed funds to purchase wetland credits for the Project. 6. The balance of the funds held in the escrow account with the Escrow Agent, after purchasing the applicable wetland credits, if any, will be returned to the Seller. 7. This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which shall constitute one agreement which is binding on the parties hereto. Any facsimile or e-mail signature shall be deemed an original signature and be binding on all parties.