BY COUNCILOR STOVER:
RESOLVED, that the proper city officers are hereby authorized to enter into an escrow agreement, substantially in the form of that on file in the office of the city clerk as Public Document No. __________, with Cottage Homesteads of Duluth, Inc., and St. Louis County Abstract & Title providing for the escrowing of funds to complete construction of or to correct construction defects related to the Cottage Homesteads project.
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize execution of an agreement with Cottage Homesteads of Duluth, Inc. (Cottage), and St. Louis County Abstract & Title (Title) pursuant to which Cottage would deposit $48,900 with Title to insure that the needed work is completed on the Cottage Homesteads project.
This project has suffered a long and checkered career of resident complaints and concerns by city officials regarding the completion of the project as originally promised and the correction of defects in the construction which did occur. After extensive review, the city engineer and the city building official, in consultation with affected property owners, have established a definitive list of tasks which must be completed in order to appropriately complete the project and have established estimates of the total cost of this work. The list is attached to the subject agreement (referenced as the city letter) and includes the estimated costs which total $48,900.
Pursuant to the agreement, Cottage would deposit $48,900 with Title who would hold the money in escrow to pay for the corrections. Cottage would complete the required improvements to the satisfaction of the city and, upon approval by the city, the costs would be paid from the escrow account. If Cottage failed to do so within a reasonable time, the city could perform the work and reimburse itself from the escrowed funds.
Approval of this agreement would allow the building official to issue the final certificates of occupancy for the properties.