HomeMy WebLinkAbout1998-098 Agrmt - Great OaksAGREEMENT
The parties to this agreement are the City of Ashland,
Oregon, hereafter referred to as "City," and Great Oaks, LLC,
hereafter referred to as "LLC."
Whereas, City has approved a 21-lot subdivision known as
Great Oaks Subdivision at Mountain Meadows, in the City of
Ashland, Oregon, under City of Ashland Planning Action No. 98-
060, hereafter referred to as the "Subdivision;" and
Whereas, City has approved certain streets and services to
be installed in the Subdivision by LLC, hereafter referred to as
the "Streets and Services;" and
Whereas, City has required LLC to provide assurances to City
that LLC will pay for the cost of the Streets and Services; and
Whereas, LLC has agreed to execute and record a trust deed
encumbering the Subdivision wherein City is the beneficiary and a
title company in the City of Ashland, Oregon, ( the "Title
Company") is the trustee to provide City with security for LLC's
payment of the cost of the Streets and Services, hereafter
referred to as the "Trust Deed;" and
Whereas, the parties desire to establish a bank account to
be funded with a portion of the sale proceeds from the sale of
each lot in the Subdivision and to remit payment out of said bank
account for the cost of the Streets and Services, hereafter
referred to as the "Bank Account;" and
Whereas, the parties desire to establish a collection escrow
(the "Collection Escrow") with the Title Company, and to place in
the Collection Escrow a partial release of the Trust Deed for
each of the 21 lots in the Subdivision and also a request for
reconveyance of the Trust Deed, hereafter referred to
respectively as the "Lot Releases" and the "Reconveyance;" and
Whereas, the parties desire to provide for an agreement for
management of the Bank Account and for the establishment of the
Collection Escrow and for sale of lots in the Subdivision and for
payment of the cost of the Streets and Services;
Now, therefore, the parties agree as follows:
1. As soon as practical after execution of this agreement,
LLC shall sign and record the Trust Deed and City will sign the
Lot Releases and Reconveyance, and the recorded Trust Deed and
signed Lot Releases and Reconveyance will be placed in the
Collection Escrow with a signed copy of this agreement, and the
parties will instruct the Title Company as follows:
a. Upon the sale of each lot in the Subdivision, the
Title Company shall record the Lot Release for that lot and
withhold the sum of $30,000 from the sale proceeds and remit said
sum to the Bank Account.
b. Upon receipt of a written notice signed by City and
LLC that the cost of the Streets and Services have been paid in
full, the Title Company shall record the Reconveyance, and the
Collection Escrow shall be terminated. ~
2. As soon as practical after execution of this agreement,
the parties shall establish the Bank Account, subject to the
following:
a. All disbursements from the Bank Account shall
require the written authorization of City and LLC.
b. The cost of the Streets and Services for the
Subdivision will be paid out of the Bank Account until those
costs are paid in full.
c. When the cost of the Streets and Services has been
paid in full, the balance in the Bank Account will be disbursed
to LLC, and the Bank Account will be closed.
3. LLC will pay all fees and costs incurred with the Title
Company and for the Bank Account and all recording fees and other
costs incurred to carry out the terms of this agreement.
4. The Bank Account shall serve as a cash bond to assure
payment of the cost of the Streets and Services, and this
agreement shall serve as a performance bond to insure that the
Streets and Services are installed and paid for. This agreement
applies to the Subdivision only. LLC expressly acknowledges that
this agreement does not constitute or establish any precedent for
any future action by the City or LLC.
DATED: This I~ day of August, 1998.
GREAT OAKS, LLC
by its Manager, Mountain Meadows,~ LLC
CITY OF ASHLAND