ITEM 4.1 Resolution 2018-32�M
0tSTeY OF o
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR: MEETING DATE:
Legal
City Attorney MacArthur April 23, 2018
PRESENTER(s)
REVIEWED BY: ITEM #:
City Attorney
City Administrator/ Finance Director Flaherty 4.1
STRATEGIC VISION
MEETS:
THE CITY OF OTSEGO:
X
Is a strong organization that is committed to leading the community through innovative
communication.
Agreements whose terms and conditions no longer apply.
Has proactively expanded infrastructure to responsibly provide core services.
IS A PUBLIC HEARING REQUIRED?
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
No
Is a social community with diverse housing, service options, and employment opportunities.
KleinBank is selling its property (Lot 1, Block 1, The Shoppes At Great River Centre) to Wings Financial
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
Staff recommends Council approve Resolution Releasing Certain Property From Recorded Sign Easement
And Developers Agreements- Lot 1, Block 1, The Shoppes At Great River Centre between City of Otsego and
KleinBank relative to proposed pylon sign in Great River Centre of Otsego and previous Developers
Agreements whose terms and conditions no longer apply.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
KleinBank is selling its property (Lot 1, Block 1, The Shoppes At Great River Centre) to Wings Financial
Credit Union. The City owns Outlot C, Great River Centre of Otsego Second Addition which it obtained
through tax forfeiture in 2015. There is an existing easement agreement affecting these properties for the
purposes of erecting an additional pylon sign on the City owned property. The new buyer wants to
terminate that agreement.
The City Planner has indicated that the City has no intention at this time to erect a pylon sign and thus he
has no problem with terminating the agreement. The Agreement confers obligations on the City that are
not necessary.
Additionally, the Buyer also seeks release from a number of Development Agreements that show up on
title to the property. City staff has reviewed these Agreements and all of the public infrastructure required
by said Agreements has already been completed. Therefore, it is appropriate that the property be released
from these Agreements.
City staff is recommending release of the sign easement agreement and release of the properties from the
Developers Agreements as set forth in the attached Resolution.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution Releasing Sign Easement Agreement and Developers Agreements
• Sign Easement Agreement
• Easement Termination Agreement
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve Resolution No. 2018- 32 Releasing Certain Property From Recorded Sign Easement
Agreement and Developers Agreements- Lot 1, Block 1, The Shoppes At Great River Centre.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2018-32
RESOLUTION RELEASING CERTAIN PROPERTY FROM RECORDED
SIGN EASEMENT AND DEVELOPERS AGREEMENTS- LOT 1, BLOCK
1, THE SHOPPES AT GREAT RIVER CENTRE
WHEREAS, the CITY OF OTSEGO owns certain property within the CITY OF
OTSEGO obtained through tax forfeiture, and described as follows:
OUTLOT C GREAT RIVER CENTRE OF OTSEGO SECOND ADDITION all
according to the Plat on file and of record at the Office of the County Recorder,
Wright County, Minnesota; and
WHEREAS, KLEINBANK currently owns and intends to sell LOT 1, BLOCK 1
THE SHOPPES AT GREAT RIVER CENTRE to WINGS FINANCIAL CREDIT
UNION.; and
WHEREAS, KLEINBANK entered into a certain SIGN EASEMENT
AGREEMENT affecting said LOT 1, BLOCK 1 THE SHOPPES AT GREAT
RIVER CENTRE dated April 21, 2008 and recorded as Document No. A1086707
on April 28, 2008 at the Office of the County Recorder, Wright County,
Minnesota with the predecessor in title to the CITY owned property, APPELLO
GROUP, LLC; and
WHEREAS, the CITY OF OTSEGO entered into certain agreements with the
previous owner APPELLO GROUP, LLC and others as follows:
DEVELOPMENT AGREEMENT GREAT RIVER CENTRE OF OTSEGO by
and between APPELLO GROUP, LLC and the CITY OF OTSEGO dated May 16,
2006, filed June 15, 2006 as Document No. A 10 14006 and First Addendum dated
October 29, 2007, filed January 9, 2009 as Document No. At 106268 and Second
Addendum dated September 22, 2008, filed January 9, 2009 as Document No.
At 106287 at the Office of the County Recorder, Wright County, Minnesota; and
DEVELOPMENT CONTRACT- THE SHOPPES AT GREAT RIVER CENTRE
SECOND ADDITION by and between CP OTSEGO PARTNERS, LLC and the
CITY OF OTSEGO dated August 12, 2008, filed September 11, 2008 as
Document No. At097682 at the Office of the Wright County Recorder, Wright
County, Minnesota and DEVELOPMENT CONTRACT- LOT 1, BLOCK 1 by
and between KLEINBANK and THE CITY OF OTSEGO dated September 15,
2008, filed March 3, 2009 as Document No. At 110447 at the Office of the County
Recorder, Wright County, Minnesota.
WHEREAS, KLEINBANK and the BUYER have requested that the CITY
release LOT 1, BLOCK 1, THE SHOPPES AT GREAT RIVER CENTRE from
these various Agreements; and
WHEREAS, the above Agreements are no longer necessary, the terms and
conditions have been completed and they no longer benefit the CITY.
NOW, THEREFORE it is hereby resolved by the City Council of the City of
Otsego, Wright County, Minnesota as follows:
1. The CITY OF OTSEGO hereby releases LOT 1, BLOCK 1 SHOPPES OF
GREAT RIVER CENTRE from the terms and conditions of the following
Agreements: SIGN EASEMENT AGREEMENT by and between APPELLO
GROUP, LLC and KLEINBANK affecting said LOT 1, BLOCK 1 THE
SHOPPES AT GREAT RIVER CENTRE dated April 21, 2008 and recorded
as Document No. A1086707 on April 28, 2008 at the Office of the County
Recorder, Wright County, Minnesota, DEVELOPMENT AGREEMENT
GREAT RIVER CENTRE OF OTSEGO by and between APPELLO GROUP,
LLC and the CITY OF OTSEGO dated May 16, 2006, filed June 15, 2006 as
Document No. At 014006 and First Addendum dated October 29, 2007, filed
January 9, 2009 as Document No. Al 106268 and Second Addendum dated
September 22, 2008, filed January 9, 2009 as Document No. At 106287 at the
Office of the County Recorder, Wright County, Minnesota; and
DEVELOPMENT CONTRACT- THE SHOPPES AT GREAT RIVER
CENTRE SECOND ADDITION by and between CP OTSEGO PARTNERS,
LLC and the CITY OF OTSEGO dated August 12, 2008, filed September 11,
2008 as Document No. A1097682 at the Office of the Wright County
Recorder, Wright County, Minnesota and DEVELOPMENT CONTRACT -
LOT 1, BLOCK 1 by and between KLEINBANK and THE CITY OF
OTSEGO dated September 15, 2008, filed March 3, 2009 as Document No.
At t 10447 at the Office of the County Recorder, Wright County, Minnesota.
2. The Mayor and City Clerk are hereby authorized on behalf of the CITY to
execute the attached EASEMENT TERMINATION AGREEMENT and
any other documents required to release the documents described above.
4
APPROVED this 17th day of April, 2018 by the Otsego City Council.
Motion to approve made by Council Member and seconded by
Council Member
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Cleric
3
j q6
Doc. No. A 1088707
OFFICE OF THE COUNTY RECORDER
WRIGHT COUNTY, MINNESOTA
Certified Filed and/or Recorded on
()4-28-2008 at 12:57
Check #: 191554 Fee: $ 45.00
Payment Code 02
Addl. Fee
Larry A. Unger, County Reorder
� I
��t
1bpap
SIGN EASEMENT AGREEMENT
(Middle Pylon)
THIS SIGN EASEMENT AGREEMENT ("Agreement") is made as of April Z4 008
(the "Effective Date"), by and between APPELLO GROUP, LLC, a Minnesota limited liability
company, its successors and assigns ("Grantor") and KLEIN BANK, a Minnesota banking
corporation ("Grantee").
RECITALS
A. Grantor is the owner of that certain tract of real property ("Parcel A"), legally
described on Exhibit A attached hereto and incorporated herein, by reference.
13. Concurrent herewith, Grantee has acquired a parcel of real property ("Parcel B")
located in the Great River Centre of Otsego development, legally described in
Exhibit B, attached hereto and incorporated herein by reference.
C, In accordance with the development plan approved by the City of Otsego,
Minnesota for Great River Centre of Otsego (the "Development"), Grantor has
agreed to construct a pylon sign structure for use by owners and tenants of the
Development adjacent to Minnesota trunk highway 101 at the approximate
location shown on the site plan attached hereto as Exhibit C (the "Pylon Sign").
D, As a material inducement to Grantee's acquisition of Parcel B, Grantor has agreed
to grant an easement to Grantee for the purpose of installing and operating an
identification panel on the Pylon Sign ;for the benefit of Parcel B upon the terms
and conditions set ;forth below.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth, and other good wid valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the proles hereby agree as follows;
1.) Construction of Pylon Sign. Grantor shall, at Grantor's initial expense, construct
the Pylon Sign in accordance with the approved development plan. for Great River Centre of
Otsego at the approximate location shown on Exhibit C. Grantor shall commence and diligently
complete construction of the Pylon Sign when the rights to at least seventy-five percent (7511/0) of
the identification panels have been allocated by Grantor in connection with the sale or lease of
lots in the Development, Grantor shall also install the necessary underground utility line to
provide the Pylon Sign with power to illuminate the same.
2.) Grant of casement. Grantor hereby grants to Grantee and Grantee's successors
and assigns, for the benefit of the Parcel B, an, appurtenant, perpetual, nonexclusive easement for
the pcupose of installation, replacerrient, maintenance, and repair of an identification panel of up
to eighty (80) square feet of space in a location on the Pylon Sign to be designated by Grantor
(the "Sign Panel Easement"). Grantee's sign panel shall advertise only the name of Grantee's
business operated on Parcel B together with any logo as may be permitted by the City of Otsego.
Grantee shall pay all costs of fabricating, installing, maintaining and repairing its sign panel,
3.) Reimbursement of Pylon Sign Costs. At the time Grantee installs its sign panel'
on the Pylon Sign, Grantee shall reimburse Grantor for Grantee's prorata share of the cost of
constructing the Pylon Sign (including utility costs), which shall be calculated by dividing the
area of Grantee's sign panel by the total area of all sign panels allocated by Grantor on the Pylon
Sign.
4.) Covenants Running nth the Land, The Sign, Panel Easement, together with the
rights related thereto and set forth herein, shall run with the land and shall be for the benefit of
and appurtenant to the Parcel B and shall be binding upon, enforceable against and burden
Parcel A, Grantee may grant the benefit of the Easement and the rights and privileges under this
Agreement to the tenants aid other occupants of the Parcel B for the duration of such occupancy,
S,) Maintenance and Utilities. Grantor shall, at Grantor's initial cost and expense,
maintain or cause to be maintained the Pylon Sign in good repair and condition and in
accordance with applicable laws, codes, and ordinances and pay the cost of electricity used to
illuminate the Pylon Sign. Grantor shall periodically bill Grantee and Grantee shall promptly
pay after receipt of Grantor's invoice, Granted's prorata share of the cost of maintenance and
utilities for the Pylon Sign,
6.) &endments, This Agreement may be amended only by a written agreement
executed by Grantor and Grantee except that Grantor may, without Grantee's consent, amend the
Agreement for the limited purpose of limiting the area of the Easement to the portion of Parcel A
actually used for Pylon Sign and utility purposes.
7.) Non -Dedication. Nothing contained in this Agreement shall be deemed to be a
gift or dedication of any portion of Parcel A to the general public or for any public use or
purpose whatsoever, it being the intention of the parties and their successors and assigns that
nothing in this Agreement, expressed or implied, shall confer upon any person, other than the
parties hereto and their respective successors and assigns, any rights or remedies under or by
reason of this Agreement.
8.) Severability. If any provision of this Agreement, or portion thereof, or the
application thereof to any person or circumstances, shall to any extent be held invalid,
inoperative or unenforceable, the remainder of this Agreement, or the application of such
provision or portion thereof to any other persons or circumstances, shall not be affected thereby.
Each provision of this Agreement shall be valid and enforceable to the fullest extent per nritted by
law.
9.) Governing Law, This Agreement shall be construed in accordance with the laws
of the State of Minnesota.
2,
10.) Headings, The Article and Section headings in this Agreement are for
convenience only, shall in no way define or limit the scope or content of this Agreement, and
shall not be considered in any construction or interpretation of this Agreement or any part hereof.
11.) Relationship of Parties. Nothing in this Agreement shall be construed to make the
parties partners or joint venturers or render any part liable for the debts or obligations of any
other party.
12.) Prldority. This Agreement and the easements and restrictions established hereby
with respect to Marcel A, shall be superior and senior to any lien. ,placed upon. Parcel A, including
the lien of any mortgage or deed of trust, Notwithstanding the foregoing, no breach hereof shall
defeat, render invalid, diminish or impair the lien of any :mortgage or deed of trust made in good
faith and for value, but all the easements and restrictions and other provisions, terms and
conditions contained in this Agreement shall be binding upon and effective against any party
(including, but not limited to, any mortgagee or beneficiary under a deed of trust) who acquires
title to Parcel A or any portion thereof by foreclosure, trustee's sale, deed in lieu of foreclosure,
or otherwise,
1,) CountezParts and Separate Signature page, This Agreement may be executed in
one or more counterparts and on separate signature pages, as so executed shall constitute a single
instrument in force or which may hereafter be in force.
IN WITNESS WHEREOF, this Agreement shall be. deemed executed as of the date first
set forth above.
(Remainder of Page Intentionally Left )[clank)
3,
SEPARATE SIGNATURE PAGE, OF GRANTOR
APPELLO GROUP, LLC,
a Minnesota limited liability company
("Grantor")
Name: David A. Taus
Title: Chief Manger
STATE OF MINNESOTA )
)
COUNTY OF WRIGHT
The foregoing instrument was aftowledged before me, this day Of April, 2009,
by David A. Taus, the Chief Manager of APPELLO GROUP LLC, a Minnmota limited liability
company, on behalf of the company,
t
SANDY L. SCHNEIDER Notary Public
NOTARY PUaL10.Mj"NE$0TA
My 0QhVw&*fl wtw im 81, 201 a
S`W
4♦
SEPARATE SIGNAT[.iRE PAGE OF GRANTEE
KLEIN BAND,
a Minnesota banking corporation
("Grantee")
STATE OF MINNESOTA )
) ss.
COUNTY OF C-c'N Q"r }
The foregoing instrument was acknowledged before me this C ��� day of April, 2008,
by PYX\6' � ) - , the Q- V 3 of KLEIN
BAND, a Minnesota banking corporation, on behalf of the corporation.
Notaxy Public
THIS INSTRUMENT WAS DRAFTED BY:
LARKIN, HOFFMAN, DALY & LINDGREN, LTD.
1500 WELLS F'AR.GO PLAZA
7900 XERXES AVENUE SOUTH
BLOOMINGTON, MINNESOTA 55431
(952) 835-3800 ROSEANNE10.14ALURG
LQ)N0't(ARYPVBL1C-M1NNE$0TA
I1S955LF My Comm W, Jan. 31, 2010
MM
5.
�-aoe h—af
EXHIBIT A
LEGAL DESC.TtIPTION OF PARCEL A
Oudot C, Great Diver Centxe of Otsego Second Addition, according to the duly recorded plat
thereof, Wright County, Minnesota,
EXHIBIT B
LEGAL DESCRIPTION OF PARCEL B
Lot 1, Bloch 1, The Shoppes At Great River Centre, according to the duly recorded plat thereof,
Wright County, M,ianesota.,
,rY61Beacorf" Wright County, MN
Overview
Legend
Roads
— CSAHCL
— CTYCL
-- MUNICL
— PRIVATECL
-- TWPCL
Highways
Interstate
State Hwy
— US Hwy
City/Township Limits
0c
Jt
❑3 Parcels
Parcel ID 118258001010 Alternate ID n/a Owner Address n/a
Sec/Twp/Rng 22-121-023 Class 233 - COMM LAND & BLDGS
Property Address 1575187TH ST NE Acreage n/a
OTSEGO
District 3001 C ITY OF OTSEGO 728 H
Brief Tax Description Sect -22 Twp -121 Range -023 SHOP PES AT GREAT RIVER CENTRE Lot -001 Block -001
(Note: Not to be used on legal documents)
Date created: V26/2018
Last Data Uploaded: 9/26/201810:06:55AM
Developed by
�'I
Schneider The Schneider Corporation
Exhibit Page of —1—
lci xmIT C
SITE PLAN
GREAT RIVER CENTRE OF OTSEGO
SECOND ADDITION
IIlk,�,>--,try-, �,;.�R' \•fir \\
w TU 6?TH fiT -'_!/t➢Vf��Lf-
QUY�aT H
u AUTI,UT k , ailYltlT A s j •.
x
�
a
wro
Ma
ail-6aY .aat t
^. vATat u+e Q Honor t J + -WILOT a
i \ \vtl
OUT I)
N7l4Ai 9 I q' k.
q 111
�,.,-.. �-..1+dP3R.;1]G ¢�"�' �-�6iRiiaY RN ! w.+ .►..-..� t _
Int, a9Tll STK'T ai m_ w. ■,.�^. =w.. u *,.^ '"" .;'��3� 4
Ig � J p
I� 6 ti 4
<•
OUTLOT o
I oi-t- twlt.w..wat raw
f W Y.1 Aim'. MiN�1� 1 t) I
a ! w -.. I t
"Ea hI
qp J,
+F`4✓r W NMI viI YY.TYi, rwM.. W �'7�� 0
SF6 I;Uf 2 Oi ] 9KC{t
EASEMENT TERMINATION AGREEMENT
THIS EASEMENT TERMINATION AGREEMENT (the "Termination") is entered into
effective as of April , 2018 by and between the City of Otsego, a Minnesota municipal
corporation (the "City"), and K1einBanlc, a Minnesota state banking corporation (the `Bank") as
the current parties to that certain Easement (as defined below).
A. The Bank entered into that certain Sign Easement Agreement (Middle Pylon)
dated April 21, 2008 and recorded April 28, 2008 as Document No. A 1086707 in the Office of
the County Recorder, Wright County, Minnesota (the "Easement") with Appello Group, LLC, a
Minnesota limited liability company ("Appello").
B. The Easement encumbers the property legally described as Outlot C, Great River
Centre of Otsego Second Addition, Wright County, Minnesota (the "Property").
C. The City has acquired all rights, title and interest of Appello in and to the Property
and is the current and sole owner of the Property.
D. The Bank is the owner of the property legally described as Lot 1, Block 1, The
Shoppes At Great River Centre, Wright County, Minnesota (the "Bank Property").
E. The City and the Bank are the sole parties to the Easement and having determined
that the Easement is no longer necessary desire to release and terminate the Easement.
NOW THEREFORE, for good and valuable consideration, the undersigned parties
hereby release and terminate the Easement, and hereby confirm that the Easement is of no
further force and effect, and is fully discharged of record. This Termination shall run with the
land and be fully binding upon and incur to the benefit of the parties hereto and their successors
and assigns and any person or entity in possession of or occupancy of the Property and the Bank
Property. This Termination shall be governed by and interpreted according to the laws of the
State of Minnesota.
DMNORTH #6401259 v1
The undersigned have executed this Termination effective as of the date first written
above.
CITY OF OTSEGO
By:
Name:
Title:
By:
Name:
Title:
STATE OF MINNESOTA )
ss.
COUNTY OF WRIGHT )
KLEINBANK
By: _
Name:
Title:
The foregoing instrument was acknowledged before me this day of ,
2018, by , and the
and respectively, of the
City of Otsego, a Minnesota municipal corporation, on behalf of the corporation.
[seal]
Notary Public
STATE OF MINNESOTA )
ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this
2018, by , the
Minnesota state banking corporation, on behalf of the corporation.
[seal]
Notary Public
Drafted by:
Ballard Spahr LLP (VF)
80 South 8th Street, #2000
Minneapolis, MN 55402
2
DMNORTH #6401259 v1
day of ,
of KleinBank, a