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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