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Home My WebLink AboutItem 05 Approval of Two-Year Warranty Surety and Maintenance, Materials, and Workmanship Escrow Agreement with Heartland DentalMeeting Date: September 19, 2023 Item #: 5 Contact Name: Martrivus Keaton Department Director: Michael Rumer Contact Number: Ext. 1088 City Manager: Robert Frank Subject: Approval of Two -Year Warranty Surety and Maintenance, Materials, and Workmanship Escrow Agreement with Heartland Dental. (Development Engineer Keaton) Background Summary: Heartland Dental property is located on the south-east corner of the intersection at Blackwood Ave and Montgomery Ave, adjacent to the Crestwood Heights Townhomes Subdivision. The property consists of (1) 5,984 square foot dental office building. The infrastructure improvements include public roadways, potable water, sanitary sewer, other private utilities, stormwater collection system, and associated landscaping. Identified punch list repairs are currently being completed, and the developer is nearly ready to start the two- year warranty period for the public improvements. As a requirement of the Land Development Code, the developer is required to furnish the City with a Surety to cover any possible damages discovered during the next two years. Should the developer not choose to make those repairs, VMG Acquisitions, LLC has provided the City with an Escrow in the amount of 10% of the constructed improvements. The Escrow provided is for a grand total of $ 5,871.04. The attached Maintenance, Materials, and Workmanship Agreements (Form 8 from the Land Development Code) act as the executable document between the developer and the City. The Surety will be returned to the developer upon completion of the two-year warranty period and the repair of any damages caused over those two years. Issue: Should the Honorable Mayor and City Commissioners accept the Surety, as provided by VMG Acquisitions, LLC, for the two-year warranty for Hearland Dental and execute the Maintenance, Materials, and Workmanship Agreement? Recommendations: The Development Services Department recommends the Honorable Mayor and City Commissioners approve the acceptance of the Surety and the execution of the Maintenance, Materials, and Workmanship Agreement with VMG Acquisitions, LLC for Heartland Dental. Attachments: 1. MMW Agreement - Ocoee Heartland Dental Financial Impacts: There are no financial impacts to the City in accepting this two-year warranty surety. City of Ocoee ® 1 N. Bluford Avenue ® Ocoee, Florida 34761 Phone: (407) 905-3100 ® www.ocoee.org Page 127 of 193 Type of Item: Consent City • Ocoee - 1 N. Bluford Avenue - Ocoee, •. 34761 Phone: (407) 905-3100 - www.ocoee.org Page 128 of 193 ESCROW AGREEMENT This Agreement is entered into this day of . 20 , by WMG Acauisitions.. LLC, a Delaware limited liability company, hereinafter referred to as "Developer" and the City of Ocoee, a Florida municipal corporation, hereinafter referred to as the "City". WHEREAS, Developer is the owner of certain real property located in Orange County, Florida more fully described in the attached Exhibit "A" which exhibit is incorporated herein by this reference (the "Property"); and WHEREAS, Developer has developed and constructed on the property, a subdivision known as Ocoee Heartland Dental (the "Subdivision") and in connection therewith has installed with the approval of the City certain roads, streets, sewers, water systems, drainage works, and/or other improvements (the "Improvements") under the provisions, conditions, and requirements of the City's Subdivision Regulations and the subdivision approval granted the I st day of August 2023. by the Board of City Commissioners; and WHEREAS, under Section 4-4, Subdivision Review Process, of the City's Land Development Code, Developer is required to warrant the maintenance, materials, and workmanship of the Improvements constructed by Developer within the Subdivision, and WHEREAS, Section 4-4, Subdivision Review Process, of the City's Land Development Code provide that Developer may guaranty such maintenance, materials, and workmanship by placing a cash escrow with the City; and WHEREAS, Developer wishes to establish an escrow fund in order to guaranty the maintenance, materials, and workmanship of the Improvements within the Subdivision as required by Section 4-4, Subdivision Review Process, of the Land Development Code. Developer does hereby establish an escrow fund with the City in the amount of Five Thousand Eipht Hundred Seventy -One and 04/100 Dollars ($5871.04) to guaranty the maintenance, materials, workmanship, and structural integrity of the Improvements. This escrow fund shall be placed by the City in an account at a local financial institution and shall be disbursed only in accord with the terms of this Agreement. Page 129 of 193 11111 1 01 In the event Developer shall maintain the Improvements in a first class condition for a period of two (2) years from the date of issuance of the Certificate of Completion for the Improvements, and if Developer shall replace all paving or other structures which within said two (2) year period shall be found by the City not to comply with said subdivision approval, and that if the Developer shall replace any other Improvements the materials, workmanship, or structural integrity of which shall be found by the City not to comply with said subdivision approval for a two (2) year period following issuance of the Certificate of Completion by the City, and shall pay any and all costs or expenses incidental to the perforinance of any work required to be performed hereunder, then the monies escrowed hereunder less an administrative fee of two (2) percent which shal I be retained by the City and less a] I bank charges with respect to the maintenance of the escrow fund shall be returned to the Developer. M-4149F ogwol MILIAT011191 The funds escrowed hereunder shall be used by the City only to repair or replace the Improvements deemed by the City to not comply with the subdivision approval except as mutually agreed to by the parties. If at any time during the two (2) year period following the issuance of the Certificate of Completion for the Improvements the City notifies Developer in writing of any deficiency or fault in the materials, workmanship, or structural integrity of the Improvements, and Developer fails to correct such deficiency or fault to the satisfaction of the City within thirty (30) days of such written notice, then the City may make such corrections, the cost of which shall be paid for out of the escrow fund for this purpose without further notice to Developer. Notwithstanding anything contained in Section 2 above, in the event the City has notified Developer of a deficiency or fault as provided above, the term of this Agreement shall continue until such deficiency or fault is corrected. SECTION 4. CONTINUED APPLICABILITY OF SUBDIVISION REGULATIONS. This Agreement shall not be construed to relieve or release Developer from any of its obligations under the City Subdivision Regulations with respect to the Improvements. SIGNATURES TO FOLLOW Page 130 of 193 IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed as of the date and year first above written. Signed, sealed and delivered in the presence of. Print Name 4 Orint Name AI, E& s ATTEST: M City Clerk (SEAL) For the use and reliance by the City of Ocoee only. Approved as to form and legality this — day of 20—. SHUFFIELD, LOWMAN & WILSON, P.A. ma City Attorney DEVELOPER: WMG Acquisitions, LLC, a Delaware limited liability co By: PrintA6me: Jonathan Brumleve Its: Manager CITY: CITY OF OCOEE, FLORIDA, a Florida municipal corporation By: om Approved by the Ocoee City Commission at a meeting held on 20_ under Agenda Item No. Page 131 of 193 Ocoee Aeartland Dental, Subdivision as Recorded in Plat Book 112. Paqes 129-130. inclusive, of the Public Records of Oranqe Countv, Florida. Page 132 of 193