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HomeMy WebLinkAboutItem #09 Approval of a Two-Year Warranty Surety and Maintenance, Materials, and Workmanship Escrow Agreement with Building Hope Lakewood Avenue LLC, for Innovation Montessori School ocoee florida AGENDA ITEM COVER SHEET Meeting Date: April 3, 2018 Item # Reviewed By: Contact Name: Milen D. Womack, P1D`� Department Director: Development Engineer Contact Number: 407-554-7081 City Manager: Subject: Approval of a Two-Year Warranty Surety and Maintenance, Material , and Workmanship Agreement with Escrow(Check)with Building Hope Lakewood Avenue LLC, for Innovation Montessori School (District 1 —Commissioner Grogan) BACKGROUND: The Innovation Montessori School is a tuition-free public charter school located at 1644 N. Lakewood Avenue. The overall parcel is 17.6 acres in size, of which 12 acres have been used for the construction of three buildings with associated playgrounds, stormwater management areas, parking, and public road access. The three buildings consist of an 8,000SF one story Pre-School/Kindergarten Building, a 4,000SF one story Multi- Function Building, and a 39,000 two-story Classroom Building housing grades 1 through 8. The Innovation Montessori School has an 800 student capacity. The developer has completed construction of the infrastructure improvements for the Innovation Montessori School and has requested a Certificate of Completion for this phase. The infrastructure improvements include the onsite water and sanitary sewer systems, a new public lift station, a new 2,300-foot extension of an 8" sanitary force main, road widening and turn lane additions to Lakewood Ave., the associated stormwater collection system, the perimeter fencing and associated landscaping. All identified punch list repairs have been completed, and the developer is ready to start the two-year warranty period for the public infrastructure improvements. As a requirement of the Land Development Code, the developer is required to furnish the City a Surety to cover any possible damages discovered during the next two years, should the developer not choose to make those repairs. Building Hope Lakewood Avenue LLC, has provided the City with a Check in the amount of 10% of the constructed improvements ($24,270.00). The attached Maintenance, Materials, and Workmanship Agreement with Escrow (Check issued by Branch Banking and Trust Company) acts as the executable document between the developer and the City. The check will first be deposited into the City of Ocoee bank account; the amount is then recorded in the Innovation Montessori School accounts receivable account. This will ensure that funds will be available should they be needed during the two-year warranty period. The Surety will be returned to the developer upon completion of the two-year warranty period and the repair of any damages caused over that two year period. ISSUE: Should the City accept the Surety as provided by Building Hope Lakewood Avenue LLC, for the two-year warranty for The Innovation Montessori School and execute the Maintenance, Materials, and Workmanship Agreement with Escrow with Building Hope Lakewood Avenue LLC? RECOMMENDATION: The Development Services Department recommends the acceptance of the Surety and the execution of the Maintenance, Materials, and Workmanship Agreement with Escrow with Building Hope Lakewood Avenue LLC, for The Innovation Montessori School. ATTACHMENTS: Maintenance, Materials, and Workmanship Agreement with Escrow with Building Hope Lakewood Avenue LLC. FINANCIAL IMPACT: There is no Financial Impact for Approval of the Maintenance, Materials, and Workmanship Agreement with Letter of Credit TYPE OF ITEM: (please mark with an "x") Public Hearing For Clerk's Deot Use: Ordinance First Reading X Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda X Commission Approval Discussion&Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance Dept. N/A Reviewed by () N/A There are no financial impacts to the City in accepting this two-year warranty Surety. 2 MAINTENANCE,MATERIALS.AND WORKMANSHIP ESCROW AGREEMENT This Agreement is entered into this _ day of , 2018, by Building Hope Lakewood Avenue, LLC, a Florida 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, or its predecessor-in-interest or its predecessor-in title, has developed and/or constructed a charter school facility on Lakewood Avenue within the jurisdictional limits of the City (the "Project") and in connection therewith has installed with the approval of the City certain lift station improvements (collectively, the "Improvements") under the provisions,conditions, and requirements of the City's regulations; 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 for the Project;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 as required by Section 4-4, Subdivision Review Process,of the Land Development Code. NOW THEREFORE,the parties agree as follows: SECTION 1. ESTABLISHMENT OF ESCROW FUND. Developer does hereby establish an escrow fund with the City in the amount of Twenty- Four Thousand Two Hundred Seventy and no/100's Dollars ($24,270.00) 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. SECTION 2. TERMS AND CONDITIONS FOR RETURN OF ESCROW FUND. 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 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 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 performance of any work required to be performed hereunder, then the monies escrowed hereunder less an administrative fee of two (2)percent which shall be retained by the City and less all bank charges with respect to the maintenance of the escrow fund shall be returned to the Developer. SECTION 3. CITY'S RIGHT TO DRAW ON ESCROW FUND. 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 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 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 DEVELOPER: in the presence of: Building Hope Lakewood Avenue,LLC,a Florida limited liability company 7,k( By: Building Hope Parkside Foundation, 9,-„, Manager (1.,,,z________ Prime (;cat. DAltSS4►.it.> By: Print Name: Paul Leleck Its: Chief Financial Officer Print Name.4b 'i I VI,/r.4 l th""'L-- CITY: ATTEST: CITY OF OCOEE,FLORIDA, a Florida municipal corporation By: By: City Clerk Mayor (SEAL) For the use and reliance by the City of Ocoee Approved by the Ocoee City Commission at a only. Approved as to form and legality this meeting held on , 20_ _day of 20 under Agenda Item No. . SHUFFIELD,LOWMAN&WILSON,P.A. By: City Attorney EXHIBIT"A" ALL THAT CERTAIN PIECE, PARCEL OR TRACT SITUATE, LYING AND BEING IN THE COUNTY OF ORANGE AND STATE OF FLORIDA AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: PARCEL 1: THE SOUTH 1/2 OF THE NE1/4 OF THE NE1/4 OF SECTION 7,TOWNSHIP 22 SOUTH, RANGE 28 EAST(LESS THE SOUTH 330 FEET THEREOF AND LESS THE EAST 30 FEET THEREOF FOR ROAD). ALSO: PARCEL 2: THE SOUTH 330 FEET OF THE NE1/4 OF THE NE1/4 OF SECTION 7,TOWNSHIP 22 SOUTH, RANGE 28 EAST(LESS THE EAST 30 FEET THEREOF FOR ROAD).