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Flood Diversion Board of Authority—July 9, 2015 4 <br /> <br /> <br />Escrow Construction Funds for Oxbow Houses <br />There are six homes in Oxbow in which builders have entered into negotiations or already signed <br />contracts to construct replacement homes. The contractors have been dealing with uncertainty <br />since the injunction was issued to stop construction on the OHB levee. Mr. Brodshaug explained <br />the appraisal and negotiation process used for replacement homes in Oxbow. As a result of the <br />injunction, bankers and builders are concerned and have requested the Diversion Authority Board <br />consider establishing escrow funds for homes under contract to provide assurance the builders <br />will be paid. Mr. Brodshaug said the CCJWRD will negotiate escrow agreements with the builders <br />with the funds to be held in an escrow account at the title company until the closing on the <br />property. Mr. Vanyo said the time frame associated with the accounts will be short-term as four <br />of the homes will close in July, one in August and one in December. <br />MOTION, passed <br />Mr. Mahoney moved and Ms. Otto seconded to authorize the Cass County <br />Joint Water Resource District to establish and fund construction escrow <br />accounts for contracted work related to six homes in Oxbow. Discussion: <br />Mr. Pawluk does not object to the request, but asked for clarification on the <br />process. Mr. Spiller said there are concerns from home builders due to <br />uncertainty resulting from the injunction and whether the Diversion <br />Authority will be able to disburse funds to builders. Mr. Brodshaug said the <br />intent is to put the funds into an escrow account until the closing is done. <br />On roll call vote, the motion carried with Mr. Mahoney, Ms. Otto, Mr. Vanyo, <br />Mr. Pawluk, Mr. Williams, Mr. Thorstad, and Mr. Olson voting “Yes”; Mr. <br />Piepkorn voting “No”. <br /> <br />Voucher approval <br />The bills for the month are with Fredrikson & Byron, P.A. for government relation services; Dorsey <br />& Whitney, LLP for legal services; and Cass County Joint Water Resource District for costs <br />associated with the in-town levees, OHB ring levee, Diversion Project Assessment Committee <br />(DPAC), and Oxbow Country Club golf course construction. <br />MOTION, passed <br />Mr. Mahoney moved and Mr. Piepkorn seconded to approve the vouchers in <br />the amount of $5,811,497.32 for June, 2015. On roll call vote, the motion <br />carried unanimously. <br /> <br />10. NEXT MEETING DATE <br />The next meeting will be held on Thursday, August 13, 2015, at 3:30 PM. <br /> <br />11. ADJOURNMENT <br /> MOTION, passed <br />On motion by Mr. Pawluk, seconded by Mr. Williams, and all voting in favor, <br />the meeting was adjourned at 4:40 PM. <br /> <br /> Minutes prepared by Heather Worden, Cass County Administrative Assistant