Item #06 Two-Year Warranty Surety and Maintenance, Materials, and Workmanship Escrow Agreement with Park Place at Maguire, LLC for Park Place at Maguire ocoee
florida
AGENDA ITEM COVER SHEET
Meeting Date: June 21, 2016
Item # CD
Reviewed By:
Contact Name: Milen D. Womack Department Director: 629
Contact Number: 407-554-7081 Ext. 1506 City Manager:
Subject: Two-Year Warranty Surety and Maintenance, Materials, and Workmanship Escrow
Agreement with Park Place at Maguire, LLC for Park Place at Maguire (District 3 — Commissioner
Firstner)
Background Summary:
Park Place at Maguire, LLC is a Multi-Family Apartment Complex with 242 dwelling units and 25,000 square
feet of retail/commercial uses within the commercial lots. This project is located on Maguire Road and Tomyn
Boulevard. The developer has completed construction of the infrastructure improvements and has requested a
Certificate of Completion. The infrastructure improvements include the water, sanitary sewer, and reuse utilities,
the streets and stormwater collection system, and the perimeter wall. All identified punchlist repairs have been
completed and the developer is ready to start the two-year warranty period.
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. Park Place at Maguire, LLC has provided the City with a check in the amount of 10% of the constructed
improvements. The attached Maintenance, Materials, and Workmanship Escrow Agreement (Form 8 from the
Land Development Code) acts as the executable document between the developer and the City in the event
that the surety is monetary. 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 Park Place at Maguire, LLC for the two-year warranty for Park
Place at Maguire and execute the Maintenance, Materials, and Workmanship Escrow Agreement with Park
Place at Maguire, LLC?
Recommendations
The Development Services Department recommends the acceptance of the surety and the authorization of the
Mayor and City Clerk to execute the Maintenance, Materials, and Workmanship Escrow Agreement with Park
Place at Maguire, LLC.
Attachments:
Maintenance, Materials, and Workmanship Escrow Agreement with Park Place at Maguire, LLC.
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 () N/A
2
MAINTENANCE, MATERIALS, AND WORKMANSHIP
ESCROW AGREEMENT
This Maintenance, Materials, and Workmanship Escrow Agreement ("Agreement")
is entered into this 90-day of April, 2016, by Park Place at Maguire, 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 has developed and constructed on the Property, portions of
a subdivision known as Villages of Wesmere (the "Subdivision") and in connection
therewith has installed with the approval of the City certain components of a potable water
facility and a right turn lane on Maguire Road (collectively, the "Improvements") under
the provisions, conditions, and requirements of the City's Subdivision Regulations and the
subdivision approval granted the day of , 20_, 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;
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;
and
WHEREAS, the City agrees to act as the escrow agent for the Funds (defined
herein) and to hold, administer and disburse the Funds pursuant to the terms and
conditions set forth herein.
NOW THEREFORE, for and in consideration of the sum of Ten Dollars ($10.00)
and other valuable considerations in hand paid, the receipt and sufficiency of which is
hereby acknowledged, 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-Two Thousand Nine Hundred and Six and .45/100 Dollars ($22,906.45) ("the
Funds") to act as cash escrow for the guaranty of the maintenance, materials,
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workmanship, and structural integrity of the Improvements. The Funds shall be deposited
by the City in an account at a local federally insured financial institution and shall be
disbursed only in accordance with the terms of this Agreement.
SECTION 2. TERMS AND CONDITIONS FOR RETURN OF ESCROW FUND.
In the event Developer shall have: i) adequately maintained the Improvements in a
"first class condition" (similar to other like improvements in other subdivisions) for a period
of two (2) years from the date of issuance of the Certificate of Completion for the
Improvements from the City, ii) replaced any paving or other Improvements within said two
(2) year period from the date of issuance of the Certificate of Completion which shall be
reasonably determined by the City not to comply with said subdivision approval, iii)
replaced any other Improvements, the materials, workmanship, or structural integrity of
which shall be found by the City not to reasonably comply with said subdivision approval
during the two (2) year period from the date of issuance of the Certificate of Completion,
and iv) paid any and all costs or expenses incidental to the performance of any work
required to be performed in subsection i) — iii) hereunder, then the Funds escrowed
hereunder, less an administrative fee of two (2) percent of the amount of Funds and less
all reasonable and customary bank charges with respect to the deposit of the escrow fund,
shall be returned to the Developer forthwith.
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 Developer's requirements in
Section 2 above, except as for any non-compliance that the parties mutually agree is not
required or waived. 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 adequately correct such deficiency or fault to the
reasonable 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 Funds for
this purpose upon 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.
This Agreement shall terminate after the two (2) year period following the issuance of the
Certificate of Completion for the Improvements.
This Agreement shall be binding upon and inure to the benefit of the parties
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hereto and their respective heirs, executors, administrators, representatives, successors
and assigns. This Agreement shall be construed under and governed by the laws of the
State of Florida, and, in the event that any provision hereof shall be deemed illegal or
unenforceable, said provision shall be severed here from and the remainder of this
Agreement shall be enforced in accordance with the intentions of the parties as herein
expressed. This Agreement may not be amended or altered except by an instrument in
writing executed by all the parties hereto. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same instrument. Confirmation of execution by
electronic transmission of a facsimile signature page shall be binding upon any party so
confirming. If any civil action, arbitration or other legal proceeding is brought for the
enforcement of this Agreement, or because of an alleged dispute, breach, default or
misrepresentation in connection with any provision of this Agreement, the successful or
prevailing party or parties shall be entitled to recover reasonable attorneys' fees and
court costs.
(SIGNATURE PAGE FOLLOWS)
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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
Park Place at Maguire, LLC,
a Florida limited liability company
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Print Name: i'4 J�1L i-e ��`?�`-- a S •rman, Manager
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By:
Prat Name: Kir,/1 ‘,- - TZ-ciNt.ti ti(.15.1- —leg Ro r gue , Manager
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(SIGNATURES CONTINUE ON NEXT PAGE)
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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 Approved by the Ocoee City Commission
Ocoee only. Approved as to form and at a meeting held on
legality this day of , 20 under Agenda Item No.
20
SHUFFIELD, LOWMAN & WILSON, P.A.
By:
City Attorney
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EXHIBIT "A"
Legal Description
PARCEL 1,VILLAGES OF WESMERE,ACCORDING TO THE PLAT THEREOF, AS RECORDED IN PLAT BOOK
70, PAGES 9 THROUGH 17, INCLUSIVE, OF THE PUBLIC RECORDS OF ORANGE COUNTY, FLORIDA.
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