HomeMy WebLinkAboutEscrow Agreement/Associated Trust Company TID 7 2011 ESCROW AGREEMENT
THIS ESCROW AGREEMENT (the "Agreement"), dated as of July j eV, 2011, is by
and between the CITY OF OSHKOSH, WISCONSIN, a Wisconsin municipal corporation (the
"City"), and Associated Trust Company, National Association, Green Bay, WI (the
"Escrow Agent"), as escrow trustee.
WITNESSETH:
WHEREAS, pursuant to Section 66.1105 of the Wisconsin Statutes (the "Act"), the City
has heretofore established its Tax Incremental District No. 7 ("TID No. 7") pursuant to
resolution of the City's Common Council originally adopted on July 20, 1989; and
WHEREAS, the City has adopted a Project Plan (the "Project Plan") for TID No. 7,
which provides that the costs of land acquisition, infrastructure development, signage,
landscaping and other site preparation costs within TID No. 7 are allowed expenditures; and
WHEREAS, the expenditure period for Project Costs for TID No. 7 will end on July 20,
2011; and
WHEREAS, by Resolution 11-323, adopted July 13, 2011, the City has obligated itself
incur allowable Project Costs set forth on Exhibit A(the"Project Costs"),but said Project Costs
will not be due and payable until after July 20, 2011; and
WHEREAS, the City deems it to be necessary, desirable and in its best interest to
authorize this Escrow Agreement for escrowing of funds in order to comply with the Act's
expenditure requirements and to pay, as they become due, the Project Costs; and
WHEREAS, by Resolution 11-323, adopted July 13, 2011, the City authorized the
preparation and execution of this Escrow Agreement and intends to apply money in the Escrow
Fund to the Project Costs pursuant to the Resolution; and
WHEREAS, the City has determined that the amount deposited in the Escrow Fund will
be sufficient to pay the Project Costs.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained,the parties hereto agree as follows:
Section 1. Definitions. As used herein, the following terms mean:
"Act"means Section 66.1105 of the Wisconsin Statutes, as amended.
"Agreement"means this Escrow Agreement.
capacity, and to make disbursements from the Escrow Fund only in accordance with the
provisions of this Agreement;
(b) to deposit in the Escrow Fund, as received, the receipts of maturing principal of
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and interest on the Escrow Obligations in the Escrow Fund;
(c) to pay Project Costs, as set forth in Section 5 hereof;
(d) in the event the Escrow Agent is unable or fails to account for any property held
hereunder, such property shall be and remain the property of the City and if, for any reason, such
property cannot be identified, all other assets or Escrow Agent shall be impressed with a trust for
the amount thereof and City shall be entitled to the preferred claim upon such assets enjoyed by
any trust beneficiary; property held by Escrow Agent hereunder shall not be deemed to be a
banking deposit of the City, and Escrow Agent shall have no right or title with respect thereto
(including any right of set-off) and the City shall have no right of withdrawal thereof except as
disbursed pursuant to this Agreement.
Section 5. Payment of Project Costs. Upon receipt from the authorized city
representative of a Requisition to Pay Project Costs in the form set forth hereto as Exhibit B, the
Escrow Agent shall pay, in immediately available funds, to the designated payee, the amount
requisitioned from the cash on hand in the Escrow Fund. Such payment shall be made as set
forth in the Requisition. The City and Escrow Agent agree that the Project Costs set forth on
Exhibit A are estimates. Requisitions may be submitted for any individual line item that exceeds
the estimate listed in Exhibit A for that item, as long as the aggregate amount of Requisitions
does not exceed the amount of the Escrow Obligations.
Section 6. Liability of Escrow Agent. The Escrow Agent shall be obligated to perform
the duties described in this Escrow Agreement and shall have no liability to any person or entity
not a party to this Agreement. The Escrow Agent may rely upon any instrument or signature
believed by it to be genuine and to have been signed or presented to it by the proper party or
parties duly authorized to do so hereunder. The Escrow Agent shall not be liable for any action
taken or omitted by it in good faith and believed by it to be authorized, and shall not be liable for
any mistake or error of judgment or for any acts or omissions of any kind unless caused by the
willful misconduct or gross negligence of the Escrow Agent. The City shall indemnify the
Escrow Agent and hold it harmless from and against any and all liabilities, losses or expenses
incurred by the Escrow Agent hereunder or arising out of or in connection with this Agreement
(including the reasonable compensation of and disbursements to its counsel and other advisors
and assistants who are not employees of the Escrow Agent), except in the case of the Escrow
Agent's own willful misconduct or gross negligence.
Section 7. Escrow Agent Fees. For its services,the City will pay the Escrow Agent a fee
of One Thousand Five Hundred and no/100 Dollars($1500.00).
Section 8. Resignation of Escrow Agent. The Escrow Agent may resign and thereby
become discharged from the duties and obligations hereby created,by giving not less than forty-
five (45) days' written notice to the City. Such resignation shall take effect upon the date
specified in such written notice to the City unless a successor shall have been appointed prior to
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covenants and agreements and shall in no way affect the validity of the remaining provisions of
this Agreement.
Section 15. Counterparts. This Agreement may be executed in several counterparts, all
or any of which shall be regarded for all purposes as duplicate originals and shall constitute and
be but one and the same instrument.
Section 16. Governing Law. This Agreement shall be governed by the laws of the State
of Wisconsin without regard to conflict of law provisions.
Section 17. Amendments.
(a) This Agreement may be amended by the City and the Escrow Agent to add to the
terms of this Agreement to correct errors, clarify ambiguities or insert inadvertently omitted
material. This Agreement may be amended or supplemented, the Escrow Obligations or any
portion thereof sold or redeemed and moneys derived therefrom invested,reinvested or disbursed
(any such amendment, supplement, redemption, direction to sell or redeem or invest, reinvest or
disbursed to be referred to herein as a "Subsequent Action"), upon submission to the Escrow
Agent of written authorization of the City for the Subsequent Action;
(b) Except as provided in Section 11 herein and in subsection (a) above, all of the
rights,powers, duties and obligations of the City and the Escrow Agent shall be irrevocable and
shall not be subject to amendment by either the City or the Escrow Agent, respectively, and shall
be binding on any successor to the City or the Escrow Agent during the term of this Agreement.
Section 18. Notices. Any notice, request, communication or other papers shall be
sufficiently given when delivered by regular mail, postage prepaid, or sent by facsimile as
follows:
To the City: City of Oshkosh
Ms.Peggy Steeno,Director of Finance
City of Oshkosh
P.O. Box 1130
Oshkosh,WI 54903-1130
Phone: 920/236-5005
Fax: 920/236-5039 0/236-5039
To the Escrow Agent: s'c-' ? //✓s` /'' 1/II
a i:e 1 A-• Ei ah se f IrP
Po 130X �o $
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Phone: y ,¢-b 7 7. ��43
Fax: (1,714 , 7 7 • 53 G'
The City and the Escrow Agent may designate further or different addresses or telecopy
numbers to which subsequent notices, communications or other papers shall be sent.
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EXHIBIT B
to Escrow Agreement
REQUISITION NO.
TO PAY PROJECT COSTS
RE: Requisition to Pay Project Costs—City of Oshkosh,Wisconsin TID No. 7
Escrow
Gentlemen:
This constitutes a request for disbursement of funds to pay Project Costs pursuant to
Section 5 of the Escrow Agreement dated as of July , 2011 by and between the City of
Oshkosh, Wisconsin (the "City") and (the "Escrow
Agent"). Reference is made to the Escrow Agreement for definitions of terms used herein.
The City requests the amounts set forth on the attached Schedule of Disbursements be
paid from the Escrow Fund:
• to the persons identified on the Scheduled Disbursements, or
• to reimburse the City for Project Costs paid by it and itemized on the Schedule of
Disbursements.
If the City has not indicated on the Schedule of Documents that disbursement should be
made by wire transfer or other means and given appropriate instructions, we understand that you
will make disbursement by check and mail it to the City of Oshkosh, and the City will arrange
for delivery to the party indicated.
As provided in the Escrow Agreement, you are hereby authorized to make the
disbursements set forth herein.
Dated this day of , 2011.
CITY OF OSHKOSH,WISCONSIN
By:
Title:
Schedule of Disbursements
Disbursement to be made to: In the amount of: Delivery Instructions:
(Name and Address) (attach invoice) (wire or other instructions)
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