4.5 SR 02-05-2024Request for Action
To
Item Number
Mayor and City Council
4.5
Agenda Section
Meeting Date
Prepared by
Consent Agenda
February 5, 2024
Zack Carlton, Community Development Director
Item Description
Reviewed by
Escrow Agreement: Clear Sky (Trellis) Apartment
Cal Portner, City Administrator
Project
Reviewed by
Action Requested
Approve, by motion, the escrow agreement securing funds for landscape improvements at 10730 1751h Ave NW.
Background/Discussion
The Clear Sky apartment project, developed by Trellis Co, completed construction of their building, and has
requested a temporary certificate of occupancy (CO) to begin leasing their units. However, the exterior
landscaping and sidewalk work has not been completed due to the winter season.
Typically, the city issues a temporary CO and collects an escrow for all outstanding work, allowing the facility to
open prior to completing all required improvements. This escrow is held by the city and released when the work
is completed in the spring. The applicant contacted staff to note that additional agencies also require an escrow
for this project to secure the same improvements. They proposed adding the city as an interested party in an
escrow agreement held by the title company.
Staff and the city attorney reviewed the escrow agreement and are comfortable with this proposal, helping the
applicant reduce costs for their project.
Financial Impact
None
Mission/Policy/Goal
Support businesses working in the community.
Attachments
■ Escrow Agreement
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires pi ospei ly.
M
TUREJ
Updated.- Januag 2023
ESCROW AGREEMENT
Guaranty File No.: 67067-1
Insured: Minnesota Housing Finance Agency ("MHFA")
Interested Party: City of Elk River ("City")
Borrower: Hillside Heights Limited Partnership
The undersigned, as Borrower, hereby agrees to employ Guaranty Commercial Title, Inc.
("Guaranty") to act as escrow agent in accordance with the following instructions and
provisions:
1. Borrower hereby deposits the sum of $138,929.28 with Guaranty.
2. The funds deposited shall be held by Guaranty pending approval of MHFA, City and
Borrower that the Landscaping and Walking Path work as shown in Exhibit A has been
completed to their reasonable satisfaction.
3. Upon receipt of confirmation of the terms set forth in paragraph 2 above, Guaranty shall
pay for all labor and materials and obtain final lien waivers for same. Any additional
funds will be refunded to Borrower.
4. No rescission of this escrow or modification of its terms shall be effective without the
written consent of the undersigned and Guaranty.
5. MHFA, City and Borrower shall hold Guaranty harmless from any claims or expenses
arising out of this Escrow Agreement, except for Guaranty's failure to account for
payments made pursuant to these instructions.
6. Following release of the Funds as directed herein, Guaranty shall have no further
obligations or liabilities arising from or related to this Agreement.
[SIGNATURE PAGE TO FOLLOW]
1
Dated:
BORROWER:
Hillside Heights Limited Partnership
By:
Its:
Minnesota Housing Finance Agency
By:
Its:
City of Elk River
By:
Its:
Guaranty Commercial Title, Inc. hereby acknowledges receipt of the funds specified in
Paragraph 1 above and agrees to act as escrow agent as above set forth.
Dated:
GUARANTY COMMERCIAL TITLE, INC.
By:
Its:
2
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