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HomeMy WebLinkAboutItem #04 Approval of a Two-Year Warranty Surety and Maintenance, Materials, and Workmanship Escrow Agreement with MPV SBR Ocoee, LLC, for the Sunbelt Rental ocoee florida AGENDA ITEM COVER SHEET Meeting Date: August 21, 2018 Item # L7 Reviewed By: Contact Name: Milen D. Womack, ��� Department Director: f`" Development Engineer Contact Number: 407-554-7081 City Manager: 174 Subject: Approval of a Two-Year Warranty Surety and Maintenance, Materials, nd Workmanship Escrow Agreement with MPV SBR Ocoee, LLC, for Sunbelt Rental Commission District#3—Richard Firstner BACKGROUND: Sunbelt Rental is located 259 Maguire Road, immediately north of the City of Ocoee Public Works Department. The lot is identified as Parcel Number 19-22-28-0000-00-047. The total area of the parcel amounts to approximately 28.234 acres. Sunbelt Rental consists of a 12,161 sq. ft. retail rental facility, a 7,800 sq. ft retail rental facility, and a 14,408 sq. ft. contractor service and maintenance shop. Additionally, there is 149,000 sq. ft. of outdoor storage area for equipment rentals. The developer has nearly completed construction of the infrastructure improvements necessary for Sunbelt Rental and will be requesting a Certificate of Completion for the overall development. The infrastructure improvements include the sewer, potable water, reclaimed water systems, the retention pond and swales, the addition of turn lanes on Maguire Road, concrete and crushed asphalt equipment storage yards, and other improvements under the provisions. Additionally, Sunbelt Rental constructed a new 10" water main to allow for future, more robust connections of public water utilities for the businesses on Enterprise Street. All identified punch list repairs are currently being completed, and the developer will be ready to start the two-year warranty period for the public infrastructure improvements once the punch list items are inspected. 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 choose not to make those repairs. MPV SBR Ocoee, LLC has provided the City with a check in the amount of 10% of the constructed public improvements ($22,193.74). The attached Maintenance, Materials, and Workmanship Escrow Agreement acts as the executable document between the developer and the City. The check will first be deposited into the City of Ocoee bank account, and the amount is then recorded in the Sunbelt Rentals accounts receivable account. The surety will be kept with the signed Maintenance, Materials, and Workmanship Agreement, which 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 MPV SBR Ocoee, LLC, for the two-year warranty for Sunbelt Rental and execute the Maintenance, Materials, and Workmanship Escrow Agreement? RECOMMENDATION: The Development Services Department recommends the acceptance of the Surety and the execution of the Maintenance, Materials, and Workmanship Agreement with Letter of Credit with MPV SBR Ocoee, LLC for Sunbelt Rental. ATTACHMENTS: Maintenance, Materials, and Workmanship Escrow Agreement. FINANCIAL IMPACT: There are no financial impacts to the City in accepting this two-year warranty Surety. TYPE OF ITEM: (please mark with an x') Public Hearing For Clerk's Dept Use: Ordinance First Reading )( 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 0 N/A 2 MAINTENANCE, MATERIALS,AND WORKMANSHIP ESCROW AGREEMENT This Agreement is entered into this — day of August , 2018 , by MPV SBR Ocoee, LLC ., 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 Sunbelt Rentals (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 4 day of August , 2017,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. 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 $22,193.74 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 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 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 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 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: MPV SBR Ocoee, LLC a North Carolina Limited Liability Company ge By: MPV Properties, LLC, its Manager By: A, , Print Name Ctir►s 51cVefe Z Print Na e: John Bra.1 Murr Its: Manager V Print Name CIA, 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 EXIIIBIT "A" A part of Section 19,Township 22 South, Range 28 fast, Orange County, Florida, more particularly described as follows: Commence at the Northwest corner of Section 19,Township 22 South, Range 28 fast,Orange County, Florida; thence N 89 08'10"f along the North line of Section 19 for 869.18 feet to the POINT OF BEGINNING; thence continue N.89 52 '49 "f., along the South line of Tract B,Ocoee Business Park Phase 1, as recorded in Plat Book 60, Pages 137 through 138, Public Records of Orange County, Florida, a distance of 58.93 feet to a point on a non tangent curve concave fast, having a radius of 766.27 feet,a chord bearing of S. 1 T42'03"f., and a chord distance of 458.60 feet;thence Southerly along the arc, through a central angle of 34.49'28", a distance of 465.74 feet;thence 5.89°08'06"W., a distance of 1,060.15 feet;thence 5.00.32'29"[., a distance of 425.66 feet to the North line of Lot V,West Orange Industrial Park Unit One, as recorded in Plat Book 3, Page 118, Public Records of Orange County, Florida; thence S.89 °07'57"W., along the North line of said Lot V and the North line of West Orange Industrial Park Unit Two,as recorded in Plat Book 5, Pages 84 through 85, Public Records of Orange County, Florida, a distance of 1,095.09 feet; thence S.00 37'17"E., along the West line of Lot 0,said West Orange Industrial Park Unit Two, a distance of 366. 67 feet to the North right-of-way line of Enterprise Street; thence 5.89 °09 '23"W.,along said North right-of-way line, a distance of 29. 78 feet;thence S.86°50'37"W.,a distance of 30.49 feet to the Southeast corner of Lot 1, Ocoee Industrial Park Phase 1, as recorded in Plat Book 33, Page 7, Public Records of Orange County, Florida;thence N.00°37'17"W., along the East line of said Lot 1 and the Northerly extension thereof, a distance of 427.97 feet; thence N.89"07'43"E., a distance of 290.72 feet;thence N.00°34'43"w., a distance of 805.33 feet to the POINT OF BEGINNING. Containing 27.86 acres, more or less.