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HomeMy WebLinkAboutTuskawilla Retail Partners II, LLC Escrow Agreement 2026 05 04ESCROW AGREEMENT THIS ESCROW AGREEMENT (this "Agreement") is entered into this day of April, 2026 (the "Effective Date"), by and between the CITY OF WINTER SPRINGS, FLORIDA, a Florida municipal corporation ("QIX") and TUSKAWELLA RETAIL PARTNERSU,LLC,aFlorida limited liability company ("Developer") (collectively, "Parties"). WHEREAS, Developer has dedicated to the City certain real property located at the northeast corner of S.R. 434 and Michael Blake Blvd. in the City of Winter Springs Town Center District (T 5 Transect), legally described on Exhibit "A" attached hereto and incorporated herein by reference (the "Property "); and WHEREAS, Developer has developed certain land adjacent to the Property as a commercialo e development known as "Blake Commons" (the "Prct") in accordance with that certain Development Agreement between the City and Developer recorded at Official Record Book 10887, Page 649 of the records of Seminole County, Florida (the "Development Agreement"), including the construction of certain infrastructure on the Property to serve the Project, the materials of which are described on Exhibit 1111" attached hereto and incorporated herein by reference (collectively, the "Infrastructure"), as more particularly described in the Final Engineering/Site Plans approved by the City incorporated in the Development Agreement and on file with the City as File Nos. FDEP-2024-0009, DVAG-2025-0007, WAN 2025-0005, and WAN 2025-0008; and WHEREAS, as a condition to the City's acceptance of the Infrastructure by that certain Bill of Sale dated April , 2026 (the "Acceptance Date"), the City has required that the Developer agree to protect the City against any material defects in the construction of the Infrastructure resulting from faulty materials, workmanship, or design of such Infrastructure and to maintain such Infrastructure in a commercially acceptable manner equivalent to similarly sA tuated Projects (collectively, the "Maintenance Work") for a period of two (2) years after the Acceptance Date (the "Term"); and WHEREAS, the City has required that the Developer deposit (MA ,927.60 (the "Escrow Funds"),which sum represents ten percent (10%) of the cost of wall "a lfor the Infrastructure, in escrow with the City for the Term as security to ensure the completion of such Maintenance Work by Developer. NOW, THEREFORE, in consideration of the covenants and agreements herein set forth and other good and lawful consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties intending to be legally bound agree as follows: Section 1. Recitals. The foregoing recitals are true and correct and are fully incorporated herein by this reference. Escmw Agreement City of Winter Springs and'il�skawilta Retail Partners II, LLC Page 1 of 4 4938-2931.4253 Section I Maintenance Work. The Parties agree that the Developer shall, at its sole expense, be required to undertake, or cause to be undertaken, the Maintenance Work for the duration of the Term. Section 3. Deposit and Use of Escrow Funds. Within three (3) business days after the Effective Date, the Developer shall deposit, or cause to be deposited, with the City into escrow the Escrow Funds by wire transfer pursuant to those certain wire instructions to be provided by the City to Developer in writing. The Escrow Funds shall serve as security to assure the Developer's Faithful performance of this Agreement and the Maintenance Work required hereunder. The City shall hold and deposit the Escrow Funds in escrow and shall be entitled to use the Escrow Funds to mitigate the City's damages in the event of a default by the Developer. A default by the Developer shall include the following: failure to timely complete the Maintenance Work as required hereunder; insolvency, appointment of a receiver, or the filing of any petition in bankruptcy; and/or commencement of a foreclosure action against the Property or any portion thereof. Upon such a default, the City shall provide written notice to the Developer including evidence of such default (a "Default Notice"). In the event the Developer fails to cure any default within thirty (30) days after receipt of the Default Notice, the Developer irrevocably authorizes and agrees that the City shall be entitled to use the Escrow Funds to complete the Maintenance Work, and further agrees to pay any actual costs incurred by the City in excess of such Escrow Funds as provided in Section 4 below. The City may complete the Maintenance Work by contract or any other method the City deems reasonably appropriate. The City shall provide written notice to Developer within three (3) business days after its exercise of the foregoing self=help remedy, which written notice shall include evidence of the costs incurred by the City and the amount of Escrow Funds being drawn upon in such instance. Any interest earned on the Escrow Funds shall be considered de minimis, may be retained by the City and shall not be owed to Developer upon the expiration of the Term. The City agrees to return any unused Escrow Funds back to Developer, in accordance with wire instructions to be provided by Developer to the City in writing, within fifteen (15) business days of the expiration of the Term. For the avoidance of doubt, the Escrow Funds shall be returned only to Developer and not to any other party. Section 4. Additional Compensation to City. Notwithstanding Section 3, above, which shall not be construed as a limitation of liability, the Developer shall be required to reimburse the City for any and all actual costs incurred by the City in completing the Maintenance Work, should those costs exceed the Escrow Funds. Such actual costs shall include fees and charges of architects, engineers, attorneys, other professionals, and court costs. The City shall be entitled to pursue all remedies allowed by law or in equity to seek reimbursement of such expenses. Section 5. Miscellaneous Provisions. (a) This Agreement shall be governed by and construed in accordance with the laws of State of Florida. Venue for any legal action arising from this Agreement shall be in Seminole County, Florida, for state court actions, or the Middle District of Florida, Orlando Division, for federal court actions. Escrow Agreement City of Winter Springs and Tuskawilla Retail Partners II, LLC Page 2 of 4 4938.2031-4283 (b) This Agreement constitutes the entire understanding between the Parties with respect to the subject matter hereof and supersedes all prior negotiations, representations, or agreements, whether written or oral. (c) Nothing herein shall limit the City's authority to grant or deny any development pemut applications or requests subsequent to the effective date of this Agreement in accordance with the criteria and requirements of the City Code. This Agreement shall not relieve the Developer and the City of the necessity of complying with the law governing applicable permitting requirements including, but not limited to, site clearing and grading permits and platting. {d) This Agreement may be amended or modified only by a written instrument executed by both the City and the Developer. (e) This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. Electronic signatures (e.g., signatures by Docusign and similar programs) and signatures transmitted by PDF or other electronic means shall be deemed original signatures. (f) If any provision of this Agreement is held invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect. (g) The failure of either party to enforce any provision of this Agreement shall not be deemed a waiver of that provision or any other provision. {h) The City's role as "escrow agent' in holding the Escrow Funds under this Agreement is strictly administrative, and the City shall not be liable for any loss, claim, or damages except for its willful misconduct, gross negli mgence or breach of this Agreement. {i) This Agreement is the result of negotiations between the Parties and shall not be construed against either party as the drafter. Each party has had the opportunity to consult with legal counsel of its choice, and both parties have participated equally in the drafting of this Agreement. No presumption or rule of construction shall arise against either party based on authorship of any provision. (j) In the event of any legal action between the Parties arising under this Agreement, each Party agrees to bear its own attorney fees and costs. (k) All notices, demands, or communications required or permitted under this Agreement shall be in writing and delivered personally or by certified mail (return receipt requested, addressed as follows (or to such other address as either party may designate in writing), To Ci City of Winter Springs Escrow Agreement City of Winter Springs and Ttrskawilla Retail Partners II, LLC Page 3 of 4 d938.2031-4253 Attn: Kevin Sweet, City Manager 1126 East State Road 434 Winter Springs, FL 32708 To Developer: Tuskawilla Retail Partners H, LLC 880 Glenwood Ave, Suite H Atlanta, GA 30316 Attn: Mark Mechlowitz Email: markm(cx;catalystdp.com Any Party may freely rnodify their respective contact person and address contained in this Paragraph by providing written notice of the modification to the other party. Any Notice given as provided herein shall be deemed received as follows: if delivered by personal service, on the date so delivered; and if mailed, on the third business day after mailing. {1} Notwithstanding any other provision set forth in this Agreement, nothing contained herein shall be construed as a waiver of the City's right to sovereign immunity under Section 768.28, Florida Statutes, or other limitations imposed on the City's potential liability under state or federal law. This paragraph shall survive termination of this Agreement. (m)Developer shall have the right to assign this Agreement to a successor owner of a portion of the Project by written notice to the City; provided that such assignee agrees in writing to assume Developer's obligations under this Agreement. (n) Neither the City nor any elected official, officer, employee, or agent shall be liable for any injury to persons or property occasioned by reasons of the act of omissions of the Developer, its agents, employees, contractors, and subcontractors, in the performance of this Agreement. The Developer further agrees to protect, defend, indemnify, and hold harmless the City, its elected officials, officers, employees, and agents from any and all claims, demands, causes of action, liability, or loss of any sort ("Claims"), because of or arising out of acts or omissions of the Developer, its agents, employees, contractors, and subcontractors in the performance of this Agreement, including all claims arisi rmng out of, in whole or in part, the performance of the Maintenance Work, except for such claims arising out of the sole negligence of the City, willful misconduct by the City, or the City's breach of this Agreement. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURES FOLLOW] Escrow Agreement City of Winter Springs and Tuskawilla Retail Partners Il, LLC Page 4 of 4 4938-2031-4253 IN WITNESS WHEREOF, the Patties hereto have executed this Agreement with the intent to be bound by the terms hereof. DEVELOPER: TUSKAWILLA RETAIL PARTNERS II, LLC, a Florida limited liability company Name: Marth'lo itz Title: Vice President CITY: CITY OF Nalme: Kev�weet Title: City Mangger . Date: S OV a a 6 ATTEST Name: Christian Gowan Title: City Cleyk Date: 4j n y o z Escrow Agreement City of Winter Springs and'Iirskawilla Retail Partners II, LLC 4938-2031-4253 FLORIDA LEGAL DESCRIPTION OF PROPERTY Tract RW-15 as designated on that certain plat titled "Blake Commons a Replat of a Portion of Lot S, Block "A", D.R. Mitchell's Survey of the Levy Grant on Lake Jessup" and recorded in Plat Book 91, Page 65 with the Seminole County, Florida Clerk of Circuit Court. Escrow Agreement City of Winter Springs and Tuskawilta Retail Partners II, LLC 4938.2031-4253 EXHIBIT °pis DESCRIPTION OF iNFRASTRUCTUIiE January 22, 2026 N V Project - Sea Ho" Cove Extension Project No. 23012.20 Prepared by: lames Herbert, E,f. Bill of Sale Material List Infastructure being turned over to the City for ownership and maintenance Quantity Uolt Current Total Materials wAar l6lrj and polated tmprovenlants Fire Hydrant Awambly (Weiler Super Conturan Fro Hydrenl) 1 EA $4,713 sr x W woe tapping Onva (JCM 432) 1 EA $3,200 • gala valve (Musser T•2351) 5 EA $185 • Cg00 DR 18 662 LF $11,040 1,5'wow s4r0cetubing 49 LF $1,029 r x IV service some 3 EA $2,418 Fittings and Accassoriss 1 LS $9,800 STDTAL $32,385 8811tery Main and Related ImpmWmenta 5" PVC gravity aawar plea 128 LF $13,896 W PVC gravity sewer pipe 404 LF $18,766 Sanitary mantaies wf 24" coven 1 LS $2805" FMhgs and Accessorise 1 LS $8,506 S UMOTAL S87,754 Htrdacape 6 t eiidticapa In thq pubtle riytof way Sieawalk in Pubbe Right afFWay 5,393 SF $25,339 Roadway in Public Rightwol-way 16.074 SF $75,942.Ot) 18•Curband Gutter 1,08E LF S431851.00 Decorative street Sign FiuMunWa. Stop Sign 1 EA $4t'005.00 Landscape 1 LS $0.00 ELTI Escrow Agreement City of Winter Springs and Tuskawilla Retail Partners II, LLC 4938-2031-4253 BILL OF SALE NOW ALL MEN BY THESE PRESENTS: That Tuskawiila Retail Partners 11, LLC (hereinafter referred to as the DEVELOPER), for and in consideration of the sum of Ten and no/100 ($10.00) Dollars and other good and valuable consideration to it paid by the CITY OF WINTER SPRINGS, SEMINOLE COUNTY, FLORIDA (hereinafter referred to as the CITY), has granted, bargained, sold, transferred, set over and delivered, and by these presents does grant, bargain, sell, transfer, set over and deliver unto the CITY, its successors and assigns, all those certain goods and chattels described as follows: • Water Main and related improvements {Valves, Hydrants, etc.) between the point of connection and the point of service (Meters). • Public Sidewalks along ail public Right of Ways and Public Sidewalk Easements. • Signage and Striping in the Right of Way. • Sanitary Sewer System. • Stormwater Infrastructure in the public Right of Way. • Irrigation Main Lines and related appurtenances with in the Right Of Way. • Roadway infrastructure (Pavement, base, curb, gutter, etc.) for all public roads. TO HAVE AND TO HOLD the same unto the CITY, its successors and assigns forever. And the DEVELOPER, for itself and its successors, hereby covenants to and with the CITY, its successors and assigns, that it is lawful owner of the said goods and chattels, that they are free from all liens and encumbrances, that it has good right to sell the same as aforesaid, and that it will warrant and defend the same against the lawful claims and demands of all persons whomsoever, In addition, the DEVELOPER hereby warrants said infrastructure to be free from material defects due to installation and/or materials for a period of twenty-four (24) months from the date of execution of this document as more particularly set forth in that certain Escrow Agreement by and between the CITY and DEVJELOPER dated on or about the date hereof. This Bill of Sale may be executed by in counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. Electronic signatures (e.g., signatures by Docusign and similar programs) and signatures transmitted by PDF or other electronic means shall be deemed original signatures. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS] IN WITNESS WHEREOF, the DEVELOPER has caused its name to be hereunto subscribed this day of AMR., 2026 (month and year). DEVELOPER: TUSKAWIt.LA RETAIL PARTNERS il, LLC Title: Vice President