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Date: December 21, 2020 Item No.
ASSIGNMENT OF SECURITIES ESCROW - CHOKECHERRY HILL 2ND ADDITION
Proposed Action
Staff recommends adoption of the following motion: Move to approve an Assignment of the
Chokecherry Hill 2nd Addition securities escrow from Shamrock Development, Inc. to George
Badui Younes.
Overview
As required by the Chokecherry Hill 2nd Addition (Development) Development Contract,
Shamrock Development, Inc. (Developer) provided the City with an escrow as security for the
Development’s improvements. Shamrock Development, Inc. will no longer be a corporation
beyond 2020 and requests that the City assign the remainder of the existing required escrow to
George Badui Younes (Builder). The remainder of the securities escrow will be held to guarantee
erosion and sediment control is maintained for the one remaining undeveloped lot (Lot 8, Block
1) in Chokecherry Hill 2nd Addition.
Primary Issues to Consider
• The City will return any remaining portion of the security escrow to the Builder upon
issuance of a building permit for Lot 8, Block 1, Chokecherry Hill 2nd Addition.
Supporting Information
• Assignment
Financial Impact: $0 Budgeted: Y☒ N☐ Source: N/A
Related Documents: Chokecherry Hill 2nd Addition Development Contract
Envision Lakeville Community Values: Diversified Economic Development
Report Completed by: Alex Jordan, Assistant City Engineer
1
ASSIGNMENT
THIS ASSIGNMENT made this ____ day of December, 2020, by, between and among
the CITY OF LAKEVILLE, a Minnesota municipal corporation (“City”), SHAMROCK
DEVELOPMENT, INC., a Minnesota corporation (“Developer”) and GEORGE BADUI
YOUNES, an individual (“Builder”).
RECITALS
WHEREAS, Developer was the real estate developer for Chokecherry Hill 2nd Addition
in Lakeville, MN (“Development”); and
WHEREAS, the Developer and the City signed a development contract for the
Development on April 17, 2014 (“Development Contract”) and Developer submitted to the City
a letter of credit (“LOC”) for the required security in the Development Contract; and
WHEREAS, in addition to other requirements, the LOC included a One Thousand and
No/100 Dollars ($1,000) escrow for each individual lot to be held by the City until a building
permit is issued (“Escrow”). Upon the issuance of a building permit, the City shall return the
Escrow; and
WHEREAS, the Developer replaced the LOC with cash on August 16, 2017; and
WHEREAS, at the time of this Assignment, the City is holding only one (1) Escrow in
the amount of One Thousand and No/100 Dollars ($1,000); and
WHEREAS, the Developer has requested to assign the remaining Escrow to the Builder.
NOW,THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS
THE PARTIES AGREE AS FOLLOWS:
1.ASSIGNMENT. Developer’s rights to the Escrow is hereby assigned to the
Builder. Upon the issuance of a building permit for Lot 8, Block 1, Chokecherry
Hill 2nd Addition, the City shall return any remaining portion of the Escrow to the
Builder.
2.EFFECTIVE DATE. This Assignment shall be effective upon execution by the
City, Developer and Builder.
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(Signature pages to follow)