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ITEM 5.1 Bury Industrial ParkOtSTY F O MINNESOTA V DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 14 May 2018 PRESENTER(s) REVIEWED BY: ITEM #: City Planner Licht City Engineer Wagner 5.1— Bury Industrial Park City Attorney MacArthur STRATEGIC VISION MEETS: I THE CITY OF OTSEGO: interim use permit, and PUD -CUP. Is a strong organization that is committed to leading the community through innovative communication. IS A PUBLIC HEARING REQUIRED? Has proactively expanded infrastructure to responsibly provide core services. Held by Planning Commission 17 July 2017 Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. X Is a social community with diverse housing, service options, and employment opportunities. business, which includes outdoor storage of metal supply. The proposed development requires Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff recommends approval of a final plat, development agreement, and site and building plans, interim use permit, and PUD -CUP. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes Held by Planning Commission 17 July 2017 BACKGROUND/JUSTIFICATION: Bury Industries, LLC has submitted plans to for final plat approval of the Bury Industrial Park together with plans for development of Lot 1, Block 1. The proposed use of Lot 1, Block 1 is the Developer's fabrication business, which includes outdoor storage of metal supply. The proposed development requires consideration of applications final plat, site and building plan review, interim use permit, and PUD -CUP. A public hearing to consider the applications was held by the Planning Commission meeting on 17 July 2017. There were no public comments. The public hearing was closed and the Planning Commission recommended approval of the development plans by a 7-0 vote. The City Council approved related applications for a Zoning Map amendment and preliminary plat for the subject site on 12 February 2018. SUPPORTING DOCUMENTS ATTACHED: ■ Planning Report dated 8 May 2018 ■ Engineering Review dated 9 May 2018 ■ Findings of Fact and Decision ■ Resolution 2018-35 approving a development agreement ■ Development agreement POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES: Motion approve a final plat for the Bury Industrial Park, adopt a Resolution 2018-35 approving a development agreement, and approve site and building plans, an interim use permit for outdoor storage, and a PUD -CUP for Lot 1, Block 1 Bury Industrial Park, subject to the conditions stated in the findings of fact and decision as presented. BUDGET INFORMATION FUNDING: BUDGETED: TPC The Planning Company PLANNING REPORT TO: Otsego Mayor and City Council FROM: D. Daniel Licht, AICP RE: Otsego — Bury Industrial Park; Lot 1, Block 1 REPORT DATE: 8 May 2018 ACTION DATE: MN Statutes 15.99 waived by Developer TPC FILE: 101.02 BACKGROUND Bury Industries, LLC has submitted plans to for final plat approval of the Bury Industrial Park together with plans for development of Lot 1, Block 1. The proposed use of Lot 1, Block 1 is the Developer's fabrication business, which includes outdoor storage of metal supply. The proposed development requires consideration of applications final plat, site and building plan review, interim use permit, and PUD -CUP. A public hearing to consider the applications was held by the Planning Commission meeting on 17 July 2017. The City Council approved related applications for a Zoning Map amendment and preliminary plat for the subject site on 12 February 2018. Fvhihitc- ■ Site location map ■ Exterior elevations dated 01/11/18 ■ Floor plan dated 01/11/18 ■ Overall site plan dated 05/01/18 ■ Landscape plan dated 02/05/18 ■ Overall grading and drainage plan dated 05/01/18 ■ Utility plan dated 05/01/18 ■ Preliminary plat ■ Final plat (2 sheets) 1 ANALYSIS Zoning. The subject site is zoned 1-2, General Industrial District. The proposed fabrication use of development of Lot 1, Block 1 of the final plat is a permitted use within the 1-2 District subject to site and building plan review in accordance with Section 9 of the Zoning Ordinance. The proposed use also requires consideration of an Interim Use Permit allowing outdoor storage and a PUD -CUP related to the proposed site plan for Lot 1, Block 1. Consideration of the Interim Use Permit and PUD -CUP is subject to the criteria outlined in Section 20-4-2.F of the Zoning Ordinance below: 1. The proposed action's consistency with the specific policies and provisions of the Otsego Comprehensive Plan. Comment: The Comprehensive Plan guides the subject site for future industrial land uses within the west sanitary sewer district. The proposed development of a 77.02 acre industrial park is consistent with the Future Land Use Plan and the City's goals to encourage industrial development to create employment opportunities and expand tax base within the City. The proposed use's compatibility with present and future land uses of the area. Comment: The table below summarizes existing and planned land uses surrounding the subject site. The proposed development of an industrial park and Lot 1, Block 1 of the final plat with a fabrication use including outdoor storage will be compatible with existing and planned land uses in the area. Direction Land Use Plan Zoning Map Existing Use North Industrial A-1 District Agriculture Rural residential dwellings East Office/Warehouse A-1 District Agriculture Rural residential dwelling South Industrial Commercial 1-2 District A-1 District Industrial Undeveloped West Industrial A-1 District Agriculture The proposed use's conformity with all performance standards contained within the Zoning Ordinance and other provisions of the City Code. Comment: The development of the final plat and Lot 1, Block 1 of the final plat will comply with the provisions of the Zoning Ordinance, Subdivision Ordinance, Engineering Manual, and City Code as applicable. 4. Traffic generation of the proposed use in relation to capabilities of streets serving the property. N Comment: The subject site will be accessed from Kadler Avenue. Kadler Avenue is designated by the 2012 Transportation Plan (as amended) as a minor arterial roadway. The City has initiated an improvement project to upgrade Kadler Avenue to an industrial section roadway consistent with the requirements of the Engineering Manual and Subdivision Ordinance. Upon completion of the City improvement project, Kadler Avenue will have adequate capacity to accommodate traffic generated by the proposed development. 5. The proposed use can be accommodated by existing public services and facilities and will not overburden the City's service capacity. Comment: The subject site is located within the West Sewer District where the City anticipates immediate development of the uses guided by the Future Land Use Plan. Sanitary sewer and water utilities are available with capacity to service the proposed development, together with other City services as required. Subdivision: The developer has submitted a final plat for one lot and three outlots as the first phase of development. • Right -of -Way. The final plat provides for dedication of right-of-way for Kadler Avenue abutting the subject site and 73rd Street within the subdivision. The west 75 feet of the Kadler Avenue right-of-way required for a minor arterial street is shown on the final plat. No direct access to Kadler Avenue is allowed. The right-of-way within the subject site for access to the individual lots is 80 feet in width as required by the Subdivision Ordinance and Engineering Manual. All rights-of-way are subject to review and approval of the City Engineer. • Streets. Kadler Avenue from 70th Street to the north plat line and the initial section of 73rd Street are being constructed as a City project. The developer will agree to pay a proportional share for the construction of Kadler Avenue as outlined in the project feasibility report approved by the City Council and terms drafted by the City Attorney in the development agreement. The developer will also pay a proportional share for the cost of construction of 73rd Street remaining after a grand award by the Minnesota Department of Employment and Economic Development (DEED). The developer has requested that their proportional share of the Kadler Avenue project and the costs for 73rd Street be assessed. The terms of the assessment will be established in the development agreement drafted by the City Attorney. Both Kadler Avenue and 73rd Street will be constructed as a 46 foot wide urban section roadway having two 12 foot drive aisles and 11 foot wide shoulders between curb and gutter with 10 ton capacity as required by the Subdivision Ordinance and Engineering Manual. There are no sidewalks or trails being constructed adjacent to either street at this time. A temporary cul-de-sac at the terminus of 73rd Street will be constructed until 91 future phases of Outlot B of the final plat is platted and 73rd Street extended. The developer must provide a temporary roadway easement for the temporary cul-de-sac that terminates with extension of 73rd Street. All street construction plans are subject to review and approval of the City Engineer as part of the City improvement project. • Lot Requirements. Lot 1, Block 1 within the final plat is subject to the requirements of the 1-2 District, which establishes a minimum lot area of 2 acres and minimum lot width of 200 feet in Section 20-86-8.A and B of the Zoning Ordinance. The developer is proceeding to final plat Lot 1, Block 1 as a 14.45 acre, 1,070 foot wide lot for the first phase of development. The proposed lot complies with the minimum requirements of the 1-2 District. • Easements. Section 21-7-15.A of the Zoning Ordinance requires 10 foot perimeter easements be dedicated at the perimeter of each lot. The proposed final plat includes dedication of drainage and utility easements as required by the Subdivision Ordinance. Drainage and utility easements are shown on the north/east/south perimeter of Outlot Drainage and utility easements and a conservation easement must also be shown over the wetland and required 20 foot wetland buffer within Lot 1, Block 1 on the final plat as described above. • Park and Trail Dedication. The proposed final plat requires satisfaction of park and trail dedication fees as established by Section 21-7-18 of the Subdivision Ordinance. The 2012 Future Parks and Trails Plan does not identify acquisition of land for public park facilities within the area of the subject site. A trail is identified for future construction along Kalder Avenue. However, as the section of roadway is only one-half mile long and there are no other trail connections, construction of the trail will be deferred. The City Code does not require a cash fee in lieu of land for park purposes from industrial subdivisions. Lot 1, Block 1. Lot 1, Block 1 of the final plat is proposed for development of a 19,953 square foot building and outdoor storage for a fabrication use. The submitted plans also show a 17,493 square foot addition to the fabrication building to the west of the initial structure. A separate office building may also be constructed in the future to the east of the initial principal building, which would require application for a PUD -CUP amendment to allow for two principal buildings on one lot. ■ Principal use. The principal use of the proposed building will be for a steel fabrication business. The 1-2 District allows fabrication uses as a permitted use. ■ Outdoor storage. The site plan illustrates an outdoor storage area to the south and west of the proposed principal building, which is allowed as an interim use within the 1-2 District. The outdoor storage is to be surfaced with gravel. The proposed material is suitable to control dust and drainage within the subject site while accommodating storage of metal and movement of the stored supplies by equipment. The M specifications for the outdoor storage surface are subject to review and approval of the City Engineer. The outdoor storage area is partially screened from view from 73rd Street and Kadler Avenue by the principal building. The landscape plan includes evergreen trees along the west lot line and east line of the outdoor storage area for effective year- round screening consistent with the requirements of the Zoning Ordinance. ■ Building Design. The proposed 32,000 square foot principal building is to be constructed of precast insulated concrete panels as a single story 35 foot high building. Section 20-17-4.E of the Zoning Ordinance requires buildings within the 1-2 District to utilize a minimum of 75 percent grade A, B, or C exterior materials specified in Section 20-17-4.13.1 of the Zoning Ordinance. Precast insulated concrete panels are defined as a Grade B material. The exterior materials of the proposed principal building comply the requirements of the Zoning Ordinance. The proposed building is to be painted with complementary colors in varied sections to provide visual relief for the mass of the structure. The 1-2 District allows a maximum building height of 48 feet, which the proposed building complies with. ■ Landscaping. The submitted plans include a landscape plan that proposes significant quantities of plantings at the perimeter of the site and within the yards surrounding the principal building and outdoor storage area. The seven common hackberry trees proposed north of the outdoor storage area should be replaced by black hills spruce to better screen the outdoor storage area west of the principal building. The quantities and types of plantings illustrated on the landscape plan are appropriate for the subject site and comply with the requirements of Section 20-19-2 of the Zoning Ordinance. The sizes of the proposed plantings included on the landscape plan comply with Section 20- 19-3 of the Zoning Ordinance. Section 5-7-3.B.4.b of the Zoning Ordinance requires installation of an irrigation system within turf areas of the subject site to provide for maintenance of the plantings. ■ Lot Coverage. Section 20-86-9 of the Zoning Ordinance limits building coverage within the 1-2 District to 50 percent of the lot area. The proposed 37,446 square foot building (including planned expansion) is equal to 5.9 percent of the 14.45 acre lot. The proposed site plan complies within the lot coverage limits established by the Zoning Ordinance. ■ Setbacks. The table below summarizes required setbacks applicable to the subject site for principal and accessory structures and uses. 5 73'd St. East South West Wetland Required 30ft. 20ft. 25ft. 20ft. 40ft. Building 180ft. 530ft. 195ft. 370ft. NA Storage 40ft. 10ft. 40ft. 20ft. NA 5 The storage area is setback only 10 feet from the east property line abutting Outlot A. As Outlot A will be deeded to the City for stormwater management purposes, the reduced setback has no negative impacts. City staff recommends approving the setback encroachment shown on the site plan with the requested PUD -CUP. ■ Off -Street Parking. Access to the subject site is provided from two driveways to 73rd Street. The driveway are 24 feet wide as allowed by Section 20-21-4.H.7.b of the Zoning Ordinance, with an expanded radius on the east side at the street intersection to allow for semi-tractor/trailer turning movements. The proposed access is subject to review and approval of the City Engineer. Manufacturing uses are required to provide one off-street parking stall per 7,500 square feet of building area, plus parking based on the number of employees (which will vary over time). The office portion of the building requires one off-street parking stall per 200 square feet of floor area. Based on the area of the proposed fabrication building (including expansion) and office, a minimum of 17 off-street parking stalls are required. The site plan provides 20 parking stalls including two van accessible disability stalls as required by ADA standards. The parking stalls are designed as 20 feet deep by 9 feet wide accessed by drive aisles a minimum of 24 feet in width for two-way traffic. The drive aisle and parking stalls are surfaced with asphalt and surrounded on by perimeter curb. The parking areas and drive aisles are setback more than 15 feet from public rights-of-way and more than 10 feet from side or rear lot lines. The dimensions and design of the off-street parking area comply with Section 20-21-4.1-1 of the Zoning Ordinance. ■ Fence. The site plan illustrates a 6 foot high perimeter chain link fence that encompasses the outdoor storage area and off-street parking lot. The gate for the fence is located across the main driveway from 73rd Street. The west gate is setback 40 feet from the front property line to allow stacking of vehicles off of the public street if the gate is closed. The proposed fence complies with the requirements of Section 20- 19-4.H of the Zoning Ordinance. A fence permit is required prior to installation of the fence. ■ Exterior Lighting. The submitted plans do not include an exterior lighting plan. The developer is required to submit a plan indicating the location, type, height, and illumination pattern of all proposed exterior lighting. All exterior lighting must comply with the provisions of Section 20-16-6 of the Zoning Ordinance. The exterior lighting plan is subject to review and approval of the Zoning Administrator prior to issuance of a building permit. ■ Trash. The site plan does not identify an enclosure for exterior storage of trash and recycling containers within the subject site. Section 20-18-4.0 of the Zoning Ordinance requires an enclosure at least six feet in height and constructed of materials consistent 0 with that used for the principal building if trash and recycling containers are to be stored outside. If outdoor storage of trash and recycling containers occurs, plans for an enclosure must be submitted prior to issuance of a building permit and are subject to review of the Zoning Administrator. ■ Signs. The submitted plans do not indicate proposed freestanding or wall signs. All signs must comply with Section 37 of the Zoning Ordinance. A sign permit is required prior to placement of signs upon the subject site. Grading. The developer has submitted a grading plan for development of the subject site, including development of Lot 1, Block 1 of the final plat. Grading for construction of Kadler Avenue and 73rd Street is being coordinated with the City Engineer as part of the City improvement project. The grading plan establishes regional drainage basins at the northeast and southeast corners of the subject site for development of Lot 1, Block 1 and construction of Kadler Avenue and 73rd Street. Outlots A and D will be deeded to the City for long term ownership and maintenance as required by Section 21-7-15.D of the Subdivision Ordinance. The developer must pay a storm water impact fee for Otsego Creek as part of the development agreement as a condition of final plat approval. Utilities. Municipal sanitary sewer and water utilities are available to the subject site. The submitted plans include a utility plan for extension of sanitary sewer and water utilities within the 73rd Street right-of-way to serve the Lot 1, Block 1 and future additions. The initial phase of utility will be constructed as part of the City improvement project, coinciding with development of Lot 1, Block 1. The developer will pay all costs for extension of lateral sanitary sewer and water utilities. The developer will also pay utility availability charges for sanitary sewer and water with approval of the final plat in accordance with Chapter 6, Section 1 of the City Code. Utility connection charges for Lot 1, Block 1 will be collected at the time a building permit is issued in accordance with Chapter 6, Section 1 of the City Code. All utility plans are subject to review and approval of the City Engineer. Development Agreement. The developer is required to enter into a development agreement with the City upon approval of the final plat addressing the City project assessments, memorializing entitlements to phased development of the preliminary plat, and providing for all required securities, fees, and other conditions of approval. The City Attorney has drafted the development agreement and it is subject to City Council approval. RECOMMENDATION The proposed Bury Industrial Park Final Plat and development of Lot 1, Block 1 therein is consistent with the Future Land Use Plan and economic development goals of the 2012 Comprehensive Plan. The proposed development also complies with the requirements of the Zoning Ordinance, Subdivision Ordinance, and Engineering Manual. City staff recommends approval of the applications as outlined below. 7 POSSIBLE ACTIONS A. Motion approve a final plat for the Bury Industrial Park, adopt a resolution approving a development agreement, and approve site and building plans, an interim use permit for outdoor storage, and a PUD -CUP for Lot 1, Block 1 Bury Industrial Park, subject to the following conditions: 1. All rights-of-way and street construction plans are subject to review and approval of the City Engineer. 2. The developer shall provide a temporary easement document for the interim cul-de-sac terminus of 73rd Street, subject to approval of City staff. The developer shall pay a proportional share for the construction of Kadler Avenue and 73rd Street, including extension of sanitary sewer and water utilities, subject to the terms established in the development agreement drafted by the City Attorney and approval by the City Council. 4. All grading, drainage, and erosion control issues are subject to review and approval of the City Engineer, and: Outlots A and D shall be deeded to the City as required by Section 21-7- 15.D of the Subdivision Ordinance. The developer shall pay a storm water impact fee for Otsego Creek as part of the development agreement as a condition of final plat approval. All utility plans are subject to review and approval of the City Engineer; the developer shall pay utility availability and connection fees for the final plat and Lot 1, Block 1 of the final plat in accordance the requirements of the City Code and terms of the development agreement. 6. The preliminary plat and final plat shall be revised to provide for dedication of drainage and utility easements as required by Section 21-7-15.A of the Subdivision Ordinance; all drainage and utility easements are subject to review and approval of the City Engineer. 7. Principal and accessory structures and uses shall be subject to the following setback requirements: 73rd St. East South West Wetland Parking ROW Side/ Rear 30ft. 20ft. 25ft. 20ft. 20ft. 15ft. 5ft. Landscaping plan: The seven common hackberry trees within the front yard shall be replaced by seven black hills spruce. b. The landscape plan shall specify installation of an irrigation system within turf areas of the subject site as required by Section 5-7-3.B.4.b of the Zoning Ordinance requires installation, subject to review and approval of the Zoning Administrator. 9. A permit is required prior to installation of the fence shown on the site plan, subject to review and approval of the Zoning Administrator. 10. A photometric lighting plan shall be submitted indicating the location, type, height, and illumination pattern of all proposed exterior lighting in compliance with Section 20-16-6 of the Zoning Ordinance and subject to review and approval of the Zoning Administrator. 11. Storage of trash and recycling containers shall be subject to the requirements of Section 20-18-4.0 of the Zoning Ordinance. 12. All signs shall comply with Section 37 of the Zoning Ordinance. 13. The developer shall execute a development agreement as drafted by the City Attorney, subject to review and approval of the City Council. B. Motion to deny the application based on a finding that the request does not comply with the Zoning Ordinance and Subdivision Ordinance. C. Motion to table. C. Adam Flaherty, City Administrator/Finance Director Tami Loff, City Clerk Andy MacArthur, City Attorney Ron Wagner, City Engineer Tom Bury, Bury Industries, LLC Subject Site Bury Industrial Park '118800224;1`00 1;1'8800223;1',0-,,0? ; y:- 1'1'8800233300 11;880022.4400. ,80TH NE _ uw =j 11.8800271100 - 118800262200 i r UJ Ll 1,4.8800272200 } 1,18800271400 f+ 8800262300 UJ FLU . ` / ' '3 _ 118800274101 �Y � 'r. 118800273100- -- is-� f 118800263201 1& 1188.00274100 `k T!UF 1181;6600101 U 118800263200 1 low ' ~'�•' 101500352,1-00"'x' 118800341300' I 921 ft Overview Legend Roads —CSAHCL —CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate — State Hwy — US Hwy City lTowns hip Limits ❑ c ❑t LSI Parcels Review No. 4 Hakanson 1-111Anderson ENGINEERING REVIEW Residential Subdivision for the City of Otsego by Hakanson Anderson Submitted to: Honorable Mayor and City Council cc: Adam Flaherty, City Administrator Tami Loff, City Clerk Dan Licht, City Planner Andy MacArthur, City Attorney Tom Bury, Bury Industries Andy Berenberg, P.E., VAA Engineering Reviewed by: Ronald J. Wagner, P.E. Brent M. Larson, P.E. Cody Sylvester, E.I.T. Date: May 9, 2018 Proposed Development: Bury Industrial Park Street Location The N %2 of the N %2 of the SE'/4 of S27, R24, T121 and the S %2 of of Property: the N %2 of the SE'/4 of S27, R24, T121 west of Kadler Avenue NE and north of 70th Street. Applicant: Tom Bury Developer: Bury Industries, LLC 14210 Northdale Blvd Rogers, MN 55374 Owners of Record: Tom Bury 14210 Northdale Blvd Rogers, MN 55374 Purpose: Bury Industrial Park is a proposed 77.02 acre light industrial development Jurisdictional Agencies: City of Otsego, Wright County, Minnesota Department of (but not limited to) Health, Minnesota Department of Natural Resources, Minnesota Pollution Control Agency, Wright Soil and Water Conservation District. Permits Required: NPDES, Minnesota Department of Health (water), and (but not limited to) Minnesota Pollution Control Agency (sanitary sewer) TABLE OF CONTENTS INFORMATION AVAILABLE FINAL PLAT DEVELOPMENT PACKAGE TITLE SHEET OVERALL EXISTING CONDITIONS AND REMOVALS PRELIMINARY PLAT OVERALL GRADING AND DRAINAGE PLAN EROSION AND SEDIMENT CONTROL PLAN SITE PAVING PLAN UTILITY PLAN DETAILS S WPP PLAN HYDROLOGY/STORM WATER OTHER CONSIDERATIONS SUMMARY AND/OR RECOMMENDATION PAGE 2 S:\Municipal\Aotsego23xx\2340\A-REVIEW PHASE\OT2340 RVW4.docx INFORMATION AVAILABLE Final Plat for Bury Industrial Park, received 5/3/18, by Anderson Engineering Construction and Grading Plans for Bury Industrial Park, dated 5/1/18, by VAA, LLC Wetland Investigation Report for Bury Industrial Park, dated 6/2/16, by Anderson Engineering Wetland Replacement Plan for Bury Industrial Park, dated 6/2/16, by Anderson Engineering Stormwater Pollution Prevention Plan, dated 6/14/17, by VAA, LLC Stormwater Management Plan, dated 5/1/18, by VAA, LLC Additional Information Minnesota Rules, Chapter 4410 — EAW Requirement City of Otsego Engineering Manual City of Otsego Zoning and Subdivision Ordinances National Wetland Inventory Map PAGE 3 S:\Municipal\Aotsego23xx\2340W-REVIEW PHASE\OT2340 RVW4.docx FINAL PLAT 1. All storm ponds shall be contained within an Outlot, up to the 100 -yr HWL. Outlot C shall be revised to encompass the entire storm pond. 2. The current Outlot C, around the north pond, should be Outlot B. The current Outlot B, for the future phases, should be Outlot C. This way when the future phases are final platted we won't be left with Outlots A and C and no Outlot B. 3. We recommend not platting separate drainage and utility easements in the future phase Outlot(s) as they will have to be vacated when the outlot is final platted for development DEVELOPMENT PACKAGE Title Sheet (Sheet C000) 4. Provide approval signature line for Ronald Wagner, P.E. City Engineer. Certificate of Surva/Existing Conditions 5. No comments. Existing Conditions and Removals Plan (Sheet C100) 6. No comments. Grading and Drainage Plan (Sheet C200 -C201) 7. The City pond in the SE of the site has a 100 -yr HWL elevation = 963.68. As proposed, the swale along the south property line will have water from the pond backed up almost to the middle of the property. This will still be covered by the drainage and utility easement and if the property owner in the future decides to fill this swale up to the edge of the pond, will not affect the ponds function, so this will be'allowed. 8. Care should be taken when the contractor places the proposed topsoil stockpile to the west of Lot 1. It appears that the stockpile will be on the edge of an existing drainage route that could be blocked if the stock pile is too far north. Erosion and Sediment Control Plan (Sheet C300) 9. No comments. Site Paving Plan Sheets C400 -C401) 10. No comments. Utility Plan (Sheet C450) 11. A 2' sump is called out on at CBMH 302 on sheet C200 but not on sheet C450. PAGE 4 S:\Municipal\Aotsego23xx\2340\A-REVIEW PHASE\OT2340 RVW4.docx 12. A SAFL Baffle is called out on CBMH 301 on sheet C200 but not on sheet C450. Routine maintenance is required on these types of devices but the developer has acknowledged this in discussions with City staff. 13. The length of watermain shall be called out in the plans. 14. It appears there is less than the required minimum of 10' of horizontal separation between the water and sanitary sewer services into the building. Please revise. 15. The watermain servicing the hydrant in the SW corner of the proposed building shall be covered by a drainage and utility easement. This may be a temporary easement that can be removed when the future building is constructed and this hydrant and watermain will need to be removed. The temporary easement shall be recorded with the County. Details (Sheets C500-0505) 16. In the storm sewer schedule, the "see detail C -3001/C504" for OCS-107 appears to be incorrect. Please revise. SWPP Plan (Sheet C600) 17. The most recent SWPPP we have received is dated 6/14/17. Please submit the most recent updated SWPPP for the City's records. HYDROLOGY/STORMWATER 18. The development plans only include the development of Lot 1, Block 1 of the Bury Industrial Development. The hydrology models received only account for the development of this one lot and appears meet all requirements. 19. It should be noted that the discharge from this lot is being routed to a new proposed City "regional" pond and that this pond has been designed to accommodate the proposed runoff from Lot 1, Block 1. OTHER CONSIDERATIONS 20. No comments. SUMMARY AND/OR RECOMMENDATION We recommend approval contingent on the above comments being addressed. PAGE 5 S:\Municipal\Aotsego23xx\2340\A-REVIEW PHASE\OT2340 RVW4.docx 0tsF TY o MINNESOTA APPLICANT: Bury Companies, LLC 9May 18 FINDINGS & DECISION FINAL PLAT/IUP/PUD-CUP APPLICATION: Request for approval of a final plat for Bury Industrial Park and site and building plans, interim use permit, and PUD -CUP for Lot 1, Block 1. CITY COUNCIL MEETING: 14 May 2018 FINDINGS: Based upon review of the application and evidence received, the Otsego City Council now makes the following findings of fact: A. The legal description of the property is attached as Exhibit A. B. The property lies within the West Sewer District and is guided for industrial land uses by the 2012 Otsego Comprehensive Plan, as amended. C. The property is zoned 1-2, General Industrial District. D. The Planning Commission and City Council must take into consideration the possible effects of the request with their judgment based upon (but not limited to) the criteria outlined in Section 20-4-2.17 of the Zoning Ordinance: The proposed action's consistency with the specific policies and provisions of the Otsego Comprehensive Plan. Finding: The Comprehensive Plan guides the subject site for future industrial land uses within the west sanitary sewer district. The proposed development of a 77.02 acre industrial park is consistent with the Future Land Use Plan and the City's goals to encourage industrial development to create employment opportunities and expand tax base within the City. 2. The proposed use's compatibility with present and future land uses of the area. Finding: The table below summarizes existing and planned land uses surrounding the subject site. The proposed development of an industrial park and Lot 1, Block 1 of the final plat with a fabrication use including outdoor storage will be compatible with existing and planned land uses in the area. Direction Land Use Plan Zoning Map Existing Use North Industrial A-1 District Agriculture Rural residential dwellings East Office/Warehouse A-1 District Agriculture Rural residential dwelling South Industrial 1-2 District Industrial Commercial A-1 District Undeveloped West Industrial A-1 District Agriculture 3. The proposed use's conformity with all performance standards contained within the Zoning Ordinance and other provisions of the City Code. Finding: The development of the final plat and Lot 11 Block 1 of the final plat will comply with the provisions of the Zoning Ordinance, Subdivision Ordinance, Engineering Manual, and City Code as applicable. 4. Traffic generation of the proposed use in relation to capabilities of streets serving the property. Finding: The subject site will be accessed from Kadler Avenue. Kadler Avenue is designated by the 2012 Transportation Plan (as amended) as a minor arterial roadway. The City has initiated an improvement project to upgrade Kadler Avenue to an industrial section roadway consistent with the requirements of the Engineering Manual and Subdivision Ordinance. Upon completion of the City improvement project, Kadler Avenue will have adequate capacity to accommodate traffic generated by the proposed development. 5. The proposed use can be accommodated by existing public services and facilities and will not overburden the City's service capacity. Finding: The subject site is located within the West Sewer District where the City anticipates immediate development of the uses guided by the Future Land Use Plan. Sanitary sewer and water utilities are available with capacity to service the proposed development, together with other City services as required. E. The planning reports dated 14 July 2017, 7 February 2018 and 8 May 2018 prepared by the City Planner, The Planning Company LLC, is incorporated herein. G. The Engineering Review dated 8 May 2018 prepared by the City Engineer, Hakanson Anderson, Inc., is incorporated herein. F. The Otsego Planning Commission opened a public hearing at their regular meeting on 17 July 2017 to consider the application, preceded by published and mailed notice; based upon review of the application and evidence received, the public hearing was closed and the Planning Commission recommended by a 7-0 vote that the City Council approve the request based on the aforementioned findings. DECISION: Based on the foregoing information and applicable ordinances, the request is hereby APPROVED, subject to the following conditions: 1. All rights-of-way and street construction plans are subject to review and approval of the City Engineer. 2. The developer shall provide a temporary easement document for the interim cul-de-sac terminus of 73rd Street, subject to approval of City staff. 3. The developer shall pay a proportional share for the construction of Kadler Avenue and 73rd Street, including extension of sanitary sewer and water utilities, subject to the terms established in the development agreement drafted by the City Attorney and approval by the City Council. 4. All grading, drainage, and erosion control issues are subject to review and approval of the 2 City Engineer, and: a. Outlots A and D shall be deeded to the City as required by Section 21-7-15.D of the Subdivision Ordinance. b. The developer shall pay a storm water impact fee for Otsego Creek as part of the development agreement as a condition of final plat approval. 5. All utility plans are subject to review and approval of the City Engineer; the developer shall pay utility availability and connection fees for the final plat and Lot 1, Block 1 of the final plat in accordance the requirements of the City Code and terms of the development agreement. 6. The preliminary plat and final plat shall be revised to provide for dedication of drainage and utility easements as required by Section 21-7-15.A of the Subdivision Ordinance; all drainage and utility easements are subject to review and approval of the City Engineer. 7. Principal and accessory structures and uses shall be subject to the following setback requirements: 73rd St. East South West Wetland Parking ROW Side/ Rear 30ft. 20ft. 25ft. 20ft. 20ft. 15ft. 5ft. 8. Landscaping plan: a. The seven common hackberry trees within the front yard shall be replaced by seven black hills spruce. b. The landscape plan shall specify installation of an irrigation system within turf areas of the subject site as required by Section 5-7-3.B.4.b of the Zoning Ordinance requires installation, subject to review and approval of the Zoning Administrator. 9. A permit is required prior to installation of the fence shown on the site plan, subject to review and approval of the Zoning Administrator. 10. A photometric lighting plan shall be submitted indicating the location, type, height, and illumination pattern of all proposed exterior lighting in compliance with Section 20-16-6 of the Zoning Ordinance and subject to review and approval of the Zoning Administrator. 11. Storage of trash and recycling containers shall be subject to the requirements of Section 20- 18-4.0 of the Zoning Ordinance. 12. All signs shall comply with Section 37 of the Zoning Ordinance. 13. The developer shall execute a development agreement as drafted by the City Attorney, subject to review and approval of the City Council. MOTION BY: SECOND BY: ALL IN FAVOR: 3 THOSE OPPOSED: Attest: ADOPTED by the City Council of the City of Otsego this 14th day of May, 2018. Tami Loff, City Clerk 4 CITY OF OTSEGO By: Jessica L. Stockamp, Mayor CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2018-35 RESOLUTION APPROVING DEVELOPERS AGREEMENT- BURY INDUSTRIAL PARK WHEREAS, Bury Industries, LLC and Bury Manufacturing, LLC has an approved Plat known as BURY INDUSTRIAL PARK; and WHEREAS, the approved Plat requires construction of public improvements, payment of City costs and fees and petition and waiver of certain assessments; and WHEREAS, those obligations are contained and memorialized in the attached Developers Agreement; and WHEREAS, the Developers Agreement also sets forth the security required to assure satisfactory construction of public improvements and establishes the various remedies available to the City in the event that Developer breaches the terms and conditions of the Agreement. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Otsego, Wright County, Minnesota as follows; 1. The attached Developers Agreement between the City of Otsego and Bury Industries, LLC and Bury Manufacturing, LLC (collectively DEVELOPER) is hereby approved in form, subject to modification of fees, charges and security as approved by City staff. 2. The Mayor and City Clerk are hereby authorized to execute the final Developers Agreement on behalf of the City of Otsego. ADOPTED this 14th day of May, 2018 by the City Council of Otsego. MOTION TO ADOPT the Resolution by Council Member and seconded by Council Member IN FAVOR: OPPOSED: CITY OF OTSEGO Jessica Stockamp, Mayor Tami Loff, City Clerk 2 1 DEVELOPMENT AGREEMENT BURY INDUSTRIAL PARK THIS AGREEMENT, entered into this ___ day of May, 2018 by and between the CITY OF OTSEGO, a Minnesota municipal corporation (“CITY”) and, Bury Industries, LLC a Minnesota limited liability company and Bury Manufacturing, LLC a Minnesota limited liability company (collectively “DEVELOPER”) RECITALS WHEREAS, DEVELOPER has proposed construction of a building to be constructed on the following described property; LOT 1, BLOCK 1, BURY INDUSTRIAL PARK (“LOT 1”); and WHEREAS, Bury Industries, LLC is currently the fee owner of the parcel of land described and newly consolidated as, which lot measures approximately 14.45 acres and is legally described as follows: See Exhibit A.; and WHEREAS, Bury Manufacturing, LLC is the Future Owner of LOT 1; and WHEREAS, LOT 1 is proposed for development of a manufacturing building and warehouse facility, and other related improvements; and WHEREAS, the Final Plat and LOT 1, is zoned I-2. General Industrial District in accordance with the Ordinance adopted by the City Council on February 12, 2018; and 2 WHEREAS, the Final Plat approval for BURY INDUSTRIAL PARK requires that the DEVELOPER enter into this Agreement as well as additional Development Agreements with the CITY as a condition of approval of individual developments; and WHEREAS, the building and improvements on LOT 1 shall be constructed, maintained and operated in accordance with the Plat approval and the terms and conditions contained herein; and NOW THEREFORE, in consideration of the promises and mutual promises hereinafter contained, it is agreed between the parties as follows: 1. Development Plans. The Plat and LOT 1 shall be developed in accordance with the plans the cover sheet of which is attached to this Agreement as Exhibit B dated _____, 2018 and signed by the City Engineer on file and of record at CITY and herein fully incorporated herein by reference and the conditions stated below (hereinafter the “Building Development Plans”). If the Building Development Plans vary from the written terms of this Agreement, the Building Development Plans shall control. The building shall be substantially completed by February 1, 2019. 2. Municipal Improvements. The Building Development Plans include certain Municipal Improvements as set forth on the attached Exhibit C. 3. Private Improvements. The DEVELOPER of the Subject Property agrees that it shall cause to be constructed and installed certain private improvements (“Private Improvements”) on the Subject Property. All Private Improvements are to be installed at DEVELOPER’S sole cost and expense pursuant to this Agreement and the private improvements to LOT 1, shall include those improvements shown on the Building Development Plans. DEVELOPER shall construct such Private Improvements in accordance with all applicable building codes, ordinances and CITY standards and the Building Development Plans furnished to the CITY and approved by the City Engineer. The DEVELOPER shall obtain all necessary permits before construction of the Building. CITY shall provide adequate field inspection personnel to assure acceptable quality control, which will allow certification of the construction work. Within thirty (30) days after the completion of Building and before any security is released, the DEVELOPER shall supply the CITY with a complete set of reproducible 3 “as built” plans and two (2) complete sets of blue line “as built” plans prepared in accordance with CITY standards. 4. Conditions of Plat Approval. The City hereby approves the plat on condition that the Developer enter into this Agreement, furnish the security required by it, and record the Plat with the Wright County Recorder or Registrar of titles within one hundred (100) days after the City Council approves the final plat. The Developer shall cooperate with the City in recording the Plat and all required additional deeds and documents and providing assurance that the Plat and all required documents have been properly and timely recorded. Any restrictive covenants for the Plat shall be submitted to the City Attorney for approval and shall be recorded prior to sale of any lots within the Plat. 5. Right to Proceed. Within the Plat or land to be platted, the Developer may not grade or otherwise disturb the earth, remove trees, construct sewer lines, storm sewers, water lines, streets, utilities, public or private improvements, or any buildings or structures until all the following conditions have been satisfied: 1) this Agreement has been fully executed by both parties and filed with the City Clerk, and all conditions contained in the Agreement have been met, 2) the necessary security has been received by the City, 3) the Plat and this Agreement have been recorded with the Wright County Recorder’s Office, 4) The Developer has initiated and attended a pre-construction meeting with the City Engineer, and 5) the Zoning Administrator has issued a letter that all conditions have been satisfied and that the Developer may proceed; or until such time as approval to commence earlier construction is specifically approved by the City, and Developer has fully complied with all conditions set forth by City staff. 6. Sanitary Sewer Service Allocation. The allocation of sanitary sewer service to lot(s) within the Plat does not occur until such time as all required security is posted. 7. Changes in Official Controls. BURY INDUSTRIAL PARK is a planned and staged development within the meaning of Minn. Stat. 462.358, Subd. 3c, and no amendment to the City’s Comprehensive Plan or other Official Controls shall apply to or affect the use, development density, lot size, lot layout, or platting requirements for future phases of BURY INDUSTRIAL PARK for a period of five (5) years. Thereafter, notwithstanding anything in this Agreement to the contrary, to the full extent permitted by State law, the City may require compliance with any amendments to the City’s Comprehensive Plan, other Official Controls enacted after the date of this Agreement. This provision does not apply to regulations or Official 4 Controls related to park and trail dedication or any fee established by the City chargeable to the Developer for municipal costs arising from said future phases. 8. Development Plans. The Plat shall be developed in accordance with the plans on file at the office of the City Clerk and the conditions stated below. If the plans vary from the written terms of this Agreement, the written terms shall control. The plans are: Plan A Final Plat, BURY INDUSTRIAL PARK, dated _____________, 2018 prepared by Anderson Engineering. Plan B Grading, Drainage, and Erosion Control Plan prepared by Anderson Engineering and as finally approved by the City Engineer. Plan C Construction Plans for BURY INDUSTRIAL PARK, prepared by Anderson Engineering, Inc. and as finally approved by the City Engineer. Plan D Specifications for BURY INDUSTRIAL PARK, prepared by Anderson Engineering, and as finally approved by the City Engineer. 9. Improvements. The Developer shall install and/or pay for the following: A. Streets B. Street lights C. Site grading and ponding D. Underground installation of all utilities E. Storm water management improvements F. Setting of lot and block monuments G. Construction surveying and staking H. Traffic control signs 5 Improvements shall be installed in accordance with City standards, the City Code, and the above-referenced plans that have been furnished to the City and approved by the City Engineer. The Developer shall obtain all necessary permits before proceeding with construction. The City shall provide adequate field inspection personnel to assure acceptable quality control, which will allow certification of the construction work. The City may, when reasonably required to do so, and at the Developer’s expense, have one (1) or more City inspectors and a qualified engineer inspect the work. Within thirty (30) days after the completion of the improvements and before all retained security is released, the Developer shall supply the City with a complete set of reproducible “as constructed” and an electronic file of the “as constructed” plans in AutoCAD.DWG file or a .DXF file, all prepared in accordance with City standards. Before the security for the completion of utilities is fully released, iron monuments shall be installed in accordance with Minnesota Statutes 505.02. The Developer’s surveyor shall submit a written notice to the City certifying that the monuments are installed following site grading, utility and street construction. 10. Contractors/Subcontractors. City Council members, City employees, and City Planning Commission members, and corporations, partnerships and other entities in which such individuals have greater than a twenty five percent (25%) ownership interest or in which they are an officer or director may not act as contractors or subcontractors for the public improvements identified in Paragraph 7 above. 11. Permits. The Developer shall obtain or require its contractors and subcontractors to obtain all necessary permits, which may include, but are not limited to: A. Wright County for County Road access and work in County right of way. B. MNDOT for State Highway Access C. MNDOT for work in right of way D. Minnesota Department of Health for watermains E. MPCA NPDES Permit for construction activity F. MPCA for sanitary sewer and hazardous material removal and disposal G. DNR for dewatering 6 H. City of Otsego for building permits I. City of Otsego for sanitary sewer connections J. City of Otsego for retaining walls 12. Dewatering. Due to the variable nature of groundwater levels and stormwater flows, it will be the Developer’s and the Developer’s contractors and subcontractors responsibility to satisfy themselves with regard to the elevation of groundwater in the area and the level of effort needed to perform dewatering and storm flow routing operations. All dewatering shall be in accordance with all applicable County, State, and Federal rules and regulations. DNR regulations regarding appropriations permits shall be strictly followed. 13. Time of Performance. The Developer shall install all listed improvements by February 1, 2019, except as specified in Paragraph 1 for the Building improvements within Lot 1. The Developer may request an extension of time from the City to be submitted in writing to the City Clerk, for which said extension shall be conditioned upon updating the security posted by Developer to reflect cost increases and the extended completion date. Final wear course placement outside of the above time frame must have the written approval of the City Engineer. The City may impose additional conditions on the extension necessary to ensure performance. 14. Right of Entry. The Developer hereby grants to the City, its agents, employees, officers and contractors an irrevocable right of entry to enter the Plat to perform any and all work and inspections necessary or deemed appropriate by the City during the installation of improvements by Developer or the City, or to make any necessary corrective actions necessary by the City. Except in emergency situations, as defined by the City, the City shall give the developer fifteen (15) business days’ notice stating the deficiencies and necessary corrections prior to making any corrective action. Said right of entry shall continue until the City finally accepts the improvements and any applicable warranty period has expired. 15. Erosion Control. Prior to initiating site grading, and before any utility construction is commenced or further building permits are issued, the erosion control plan, Plan B, shall be implemented by the Developer and inspected and approved by the City. If the City Engineer determines that it would be unreasonable to require full implementation of the erosion control plan prior to utility construction or issuance of certain building permits, he shall state in writing what construction can take place and what particular building permits can be issued prior to full implementation. The City may impose additional erosion control requirements if, in 7 the opinion of the City Engineer, they would be beneficial. All areas disturbed by the excavation and backfilling operations shall be reseeded forthwith after the completion of the work in that area. If the Developer does not comply with the erosion control plan and schedule or any supplementary instructions, the City may, with reasonable notice, take action as it deems appropriate. 16. Grading Plan. Plat grading shall be in accordance with the approved grading plan, Plan B. The plan shall conform to City specifications and the City Code. Ponds, swales, and ditches shall be constructed on public easements or land owned by the City. Within thirty (30) days after completion of grading and before any retained security is fully released, the Developer shall provide the City with an “as built” grading plan including certification by a registered land surveyor or qualified engineer that all ponds, swales, and ditches have been constructed on public easements or land owned by the City. “As built” plans shall include 17. Grading, Landscaping and Drainage. The DEVELOPER shall be responsible for grading, landscaping and storm water management on the Subject Property as more fully set forth in this Agreement and as for LOT 1 only the Building Development Plans and Landscaping Plan. A. Landscaping. DEVELOPER shall maintain the sod and landscape of boulevard areas adjacent to LOT 1 as shown in the Building Development Plans through at least one growing season and to the satisfaction of CITY. The long term maintenance of sod and landscaping of boulevard areas shall be the responsibility of DEVELOPER. Further, DEVELOPER shall be responsible for mowing, elimination of weeds and removal of any garbage or debris on LOT 1. B. Erosion Control. The erosion control plan for LOT 1 within the Building Development Plans has been reviewed and approved by CITY and shall be implemented by DEVELOPER prior to grading of LOT 1. All areas disturbed by the excavation and backfilling operations shall be reseeded forthwith after completion of work in that area. If DEVELOPER does not comply with the erosion control plan and schedule or any erosion control requirements, CITY may, after reasonable notice, take action as it deems appropriate in accordance with all applicable laws, ordinances or regulations or according to this Agreement. 8 C. Grading Plan. Grading of LOT 1 shall be in accordance with the approved Grading Plan as provided in the Building Development Plans. 18. Pre-Construction Activity. DEVELOPER shall schedule a pre- construction meeting with CITY to review the proposed schedule for grading and construction of the building and related improvements as set forth on the Building Development Plans, and to coordinate the schedule with the City Engineer. 19. Ownership of Improvements. Upon completion of the work and construction required by this Agreement, improvements lying within public easements on the Subject Property shall become CITY property without further notice or action. 20. Clean Up. DEVELOPER shall promptly clean any and all dirt and debris from streets resulting from construction work by DEVELOPER, its agents or assigns during the work and construction required by this Agreement. 21. Administrative Fee. A one-time fee for CITY administration of the development is $1,500.00. 22. Park and Trail Dedication. Park and Trail dedication requirements for BURY INDUSTRIAL PARK are as follows: Not applicable for subdivisions within the I-2 District. 23. Storm Water Fees, and Storm Water Basin. Storm Water Fees are as follows: 14.45 acres x $3,427per net acre = $49,520.00. 24. Sewer Availability Charges. The Sewer Availability Charges for LOT 1 are as follows: 14.45 acres x 3.5 RECs per acre = 50.575 RECs at $2,480.00 per REC = $125,426.00. 25. Sewer Connection Fees. The sewer connection fees are as follows: 3.5 RECs at $7,440 .00 per REC = $26,040.00. 26. Water Availability Charges. The Water Availability Charges for the Plat are as follows: 14.45 acres x 3.5 RECs per acre= 50.575 RECs at $1,731.00 per REC = $87,545.00. 27. Water Connection Fees. The water connection fees are as follows: 3.5 RECs at $1,731 per REC = $6,058.50. 9 28. Street and Traffic Control Sign Fees. DEVELOPER shall pay for nine (9) traffic control signs at $250.00 per sign or $2,250.00. CITY will install the signs. 29. CITY Engineering, Engineering Administration, Construction Observation, and Legal Fee Escrow and City Fees. DEVELOPER shall pay escrow for the CITY’S engineering, engineering administration and construction observation services of Municipal Improvements as set forth on Exhibit C, following execution of this agreement, in the estimated amount set forth below. City engineering administration will include consultation with DEVELOPER and its engineer on status or problems regarding the Project, monitoring during the warranty period, general administration and processing of requests for reduction in security. Fees for this service shall be the actual amount billed for those service. DEVELOPER shall pay for construction observation performed by the City Engineer. Construction observation shall include part or full time observation, as determined by the City Engineer, of the Municipal Improvements and will be billed at hourly rates actually required for said inspection. In the event of prolonged construction or unusual problems, CITY will notify DEVELOPER of anticipated cost overruns for engineering administration and observation services. The Escrow and Fee account shall include estimated escrow for City Engineering, Engineering Administration and Construction Observation limited to the Municipal Improvements expenses and Legal expenses, and fees for City Administrative, Street and Traffic Control Signs, Water and Sewer Availability Charges as follows: ESCROW AND FEES Legal Fees, Planning and miscellaneous (actual billings to be paid) $17,000.00 City Administration Fees (flat fee) $1,500.00 Street & traffic control sign Fees (9 at $250.00 per sign) $2,250.00 Street Lights (2 x $500 per light) $1,000.00 Storm Water Fees $49,520.00 GIS Data Entry Fee $250.00 10 TOTAL $71,520.00 These Escrow and Fee amounts shall be submitted to CITY upon execution this Agreement by DEVELOPER and CITY. Any Escrow amounts not utilized for legal and engineering charges incurred by the City under this Agreement shall be returned to DEVELOPER when all improvements have been completed, all financial obligations to CITY satisfied, and all required “as-built “ plans have been received by CITY. Engineering, planning and legal fees incurred prior to the execution of this Agreement shall be deducted from escrow already submitted with the Plat application or charged against the escrow herein established. All other amounts listed as one-time fees are non-refundable and available immediately for CITY use when posted. 30. Security. To ensure compliance with the terms of this Agreement, and construction of all Municipal Improvements, DEVELOPER shall furnish CITY with a cash escrow or Irrevocable Standby Letter of Credit in the amount of $379,442.50, said amount calculated as follows: Site Grading, Erosion Control & Wetland Protection $46,500.00 Sanitary Sewer- Lateral $00.00 Watermain- Lateral & Trunk $32,232.00 Storm Sewer- Lateral $00.00 Streets $00.00 Engineering & Surveying Construction Services $2,100.00 Landscaping $22,500.00 Assessment for 73rd Street $200,222.00 SUBTOTAL $303,554.00 TOTAL SECURITY ($303,554.00 x 125%) $379,442.50 11 The issuer and form of the security (other than cash escrow) shall be subject to CITY approval, which approval shall not be unreasonably withheld, conditioned or delayed. The security shall be issued by a banking institution in good standing as determined by CITY and approved by the City Administrator. Upon a Default and after notice and opportunity to cure, CITY shall have the ability to draw on the Security by overnight courier delivery to the bank or branch bank issuing the Letter of Credit. The security shall be for a term ending February 1, 2019, and shall contain an automatic renewal provision. CITY may draw down the security for any violation of the terms of this Agreement after notice and opportunity to cure by DEVELOPER, or upon receiving notice of the pending expiration of the security. It shall be the responsibility of DEVELOPER to inform CITY at least thirty (30) days prior to expiration of the security of the impending expiration and the status of the Project relative to the security and this Agreement. If, for whatever reason, the security lapses prior to complete compliance with this Agreement (other than during any warranty period), DEVELOPER shall immediately provide CITY with either an extension of the security or an irrevocable letter of credit of the same amount upon notification of the expiration. If the required improvements are not completed at least thirty (30) days prior to the expiration of the security, CITY may also draw down the security. That portion of the security for assessment for 73rd Street shall not be released, but shall remain in place, subject to yearly reduction at such time as the assessments are actually paid by DEVELOPER or its successors. CITY may draw down the security for any violation of the terms of this Agreement (after any reasonable notice to DEVELOPER and cure periods). If the security is drawn down, the proceeds shall be used to cure any default. CITY will, upon making determination of final costs to cure any default, refund to the DEVELOPER any monies which CITY has in its possession which are in excess of the security needed. Upon receipt of proof satisfactory to CITY that work has been completed and financial obligations to CITY have been satisfied, the security will be reduced from time to time down to the amount of warranty security as set forth in paragraph 18 of this Agreement. 12 The security shall not be reduced below ten percent (10%) of the posted security until all improvements, except landscaping, have been completed, all financial obligations to CITY satisfied (which includes posting of warranty security), and required “as built” plans have been received by CITY. The intent of this Agreement that CITY shall have access to sufficient security, either security or warranty security, to complete the Project and insure warranty on all public improvements. The security amount shall be submitted to CITY prior to execution of the Agreement. 31. Warranty. DEVELOPER warrants all work required to be performed by it against poor material and faulty workmanship for a period of one (1) year after its completion and acceptance by CITY. The amount of posted security for public improvements to be posted by DEVELOPER shall be in the amount of $7,160.00. The amount has been determined by the City Engineer and is based upon the costs of the raw materials and labor which would be necessary to correct the most common deficiencies in the public improvements. 32. Assessments and Waiver. DEVELOPER’s LOT 1, BLOCK 1 shall be subject to the following listed assessments. DEVELOPER as 100% owner of the property to be assessed on behalf of itself, its heirs, successors, assigns and successors in title and pursuant to Minnesota Statute 429.031, Subdivision 3, hereby petitions the CITY to construct the improvements and to assess the entire cost, as determined by CITY, against its property, LOT 1, BLOCK 1, BURY INDUSTRIAL PARK or, if necessary, over all of BURY INDUSTRIAL PARK. In the event of failure to make payments on assessments on LOT 1, DEVELOPER agrees that CITY may, at its sole discretion, re-allocate assessments or reassess over the remainder of BURY INDUSTRIAL PARK under the same terms and condition as the original assessment. DEVELOPER on behalf of itself, its heirs, successors, assigns and successors in title hereby waives any and all hearings and irregularities in procedure and any right of appeal under Minnesota Statute 429.081 or any other right of appeal. DEVELOPER agrees that the property is benefited in at least the amount of said assessments. a. DEVELOPER has petitioned for assessment of a portion of improvements to Kadler Avenue in the amount not to exceed $685,785.63, to be assessed against the property for a period of fifteen (15) years at an interest rate of 4.30% per annum, payments commencing with real estate taxes, if 13 any due and payable in 2019. DEVELOPER agrees to not pre-pay said assessments. b. DEVELOPER has petitioned for assessments related to the proposed construction of a portion of 73rd Street within the Plat to be constructed by CITY at the same time as the Kadler Avenue Improvements in the total estimated amount of $250,277.00 (125% of $200,222.00 estimate), to be assessed against the property for a period of fifteen (15) years at an interest rate of 4.30% per annum, payments commencing with real estate taxes, if any due and payable in 2019. The actual amount assessed for 73rd Street shall be the actual Developer’s share of the final cost of the Project (actual Project final cost minus City share capped at $200,222.00), and the assessment may be adjusted after originally certified to reflect the actual Developer’s share of costs if different than the estimate. DEVELOPER agrees to not pre-pay said assessment. c. DEVELOPER has petitioned for assessments related to Sewer and Water Availability Charges and Sewer and Water Connection Fees. The Sewer Availability Charge is $125,426.00. The Water Availability Charge is $87,545.00. The Sewer Connection Fee is $26,040.00. The Water Connection Fee is $6,058.50. The Sewer and Water Availability Charges in the amount of $212,971.00 and the Sewer and Water Connection Fees in the amount of $32,098.50 totaling $245,069.50. DEVELOPER has petitioned and CITY agrees that this amount be assessed against the property for a period of seven (7) years at an interest rate of 4.30% per annum, payments commencing with real estate taxes, if any, due and payable in 2019. 33. City Construction of Kadler Avenue Improvements, 73rd Street and Retention Pond. In conjunction with and concurrently with DEVELOPER’S construction of the Project, CITY shall construct Improvements to Kadler Avenue, construction of 73rd Street from 700 feet to the easterly Plat boundary and construction of a Retention Pond on OUTLOT A, BURY INDUSTRIAL PARK including sanitary sewer and water lines, all as shown on the Plans and Specifications provided to DEVELOPER. Plans for Kadler Avenue and the Retention Pond shall be drafted by the City Engineer. Plans for 73rd Street shall be drafted by DEVELOPER’s Engineer and reviewed and approved by the City Engineer. CITY shall commence construction in Summer of 2018. CITY and DEVELOPER shall coordinate construction activities on LOT 1 and CITY construction of the Kadler Avenue Improvements, Retention Pond and 73rd Street. 14 34. DEVELOPER Use of CITY Ponds and Conveyance of OUTLOT A and B. As part of the Project, CITY shall construct a storm water retention pond on portions of OUTLOT A and OUTLOT B currently owned by DEVELOPER. Upon execution of this Agreement and recording of the Agreement and the Plat, DEVELOPER shall immediately convey to CITY OUTLOT A and B free and clear of all encumbrances. CITY will grant to DEVELOPER a perpetual easement to discharge storm water from LOT 1, BLOCK 1 into the storm water retention ponds on OUTLOT A and B, so long as DEVELOPER complies with CITY, State and Federal ordinances, statutes, rules and regulations regarding such discharge. 35. Responsibility for Costs. A. DEVELOPER shall pay all costs incurred by it in conjunction with the development of LOT 1 and its Building, including, but not limited to legal, planning, engineering, and inspection expenses in connection with the development of LOT 1 and its Building. B. Except for gross negligence or willful and wanton acts of the CITY, DEVELOPER shall hold CITY and its officers, employees and agents harmless from claims made by itself and third parties for damages sustained or costs incurred resulting from DEVELOPER’s acts or failures to act in connection with development of the Subject Property by DEVELOPER. DEVELOPER shall indemnify CITY and its officers, employees and agents for all costs, damages or expenses which CITY may pay or incur in consequence of such claims, including attorney’s fees. C. The Non-Prevailing Party shall reimburse the Prevailing Party for costs incurred in the enforcement of this Agreement, including engineering fees, planning fees, attorney’s fees, and costs and disbursements. D. DEVELOPER shall pay in full all bills submitted to it by CITY for obligations incurred under this Agreement and agreed to be paid by DEVELOPER under this Agreement within thirty (30) days after receipt. If the bills are not paid on time, and DEVELOPER does not reasonably dispute the payment of amount of such bill CITY may reimburse itself from existing Escrow or Security... Bills not paid within thirty (30) days shall accrue interest at the rate of twelve percent (12%) per year. 36. Miscellaneous. 15 E. Third parties shall have no recourse against CITY under this Agreement. F. If any portion, section, subsection, sentence, clause, paragraph or phrase of this Agreement is for any reason held invalid, such decision shall not affect the validity of the remaining portion of this Agreement. G. The action or inaction of CITY or DEVELOPER shall not constitute a waiver or amendment to the provisions of this Agreement. To be binding, amendments or waivers shall be in writing, signed by the parties and approved by written resolution of the City Council. CITY’s or DEVELOPER’s failure to promptly take legal action to enforce this Agreement shall not be a waiver or release. H. This Agreement shall run with the land, shall be recorded against the title to the Subject Property, and shall be binding on all parties having any right, title or interests in the Subject Property or any part thereof, their heirs, successors and assigns. I. Each right, power or remedy herein conferred upon CITY or DEVELOPER is cumulative and in addition to every other right, power or remedy, express or implied, now or hereafter arising, available to CITY or DEVELOPER, at law or in equity, or under any other agreement, and each and every right, power and remedy herein set forth or otherwise so existing may be exercised from time to time as often and in such order as may be deemed expedient by CITY or DEVELOPER and shall not be a waiver of the right to exercise at anytime thereafter any other right, power or remedy. J. DEVELOPER shall pay for all local costs, as defined in this Agreement, related to drainage improvements required to complete the construction of the Plat and building according to the Building Development Plans. Local costs are costs related to required internal drainage improvements such as retention ponds. K. Should construction of DEVELOPER’S Building or improvements to LOT 1 proceed at a pace slower than anticipated, and for that reason, specific terms of this Agreement become onerous or unduly burdensome to DEVELOPER, upon DEVELOPER’s application, CITY will enter into negotiations regarding those specific terms and 16 shall not unreasonably withhold consent to appropriate changes in the terms of this Agreement. L. DEVELOPER shall demonstrate and maintain compliance with the 1991 Wetland Conservation Act. M. DEVELOPER shall be responsible for all on site drainage for the Subject Property, as well as for any affects their actions may have on adjoining properties. 37. Violation of Agreement. If while the escrow or security provided in this Agreement is outstanding, a violation of any of the covenants or agreements herein contained occurs and such violation is not cured within thirty (30) days, or such longer period if DEVELOPER is in good faith and with all due diligence attempting to cure said default after written notice thereof from CITY to DEVELOPER, CITY may draw upon the DEVELOPER’s escrow or security to cure any violation of the Agreement and to reimburse CITY for any costs incurred in curing the violation. 38. Maintain Public Property Damaged or Cluttered During Construction. DEVELOPER agrees to assume full financial responsibility for any damage which may occur to public property including, but not limited to , street, street sub-base, base, bituminous surface, curb, utility system including, but not limited to, watermain, sanitary sewer or storm sewer when said damage occurs as a result of construction activity which takes place during development of the Subject Property by DEVELOPER or its contractors, except for damage caused by CITY , its employees, agents or contractors. DEVELOPER further agrees to pay all reasonable costs required to repair the streets and/or utility systems damaged or cluttered with debris when occurring as a direct or indirect result of the Developer’s construction that takes place on the Subject Property. In the event that DEVELOPER is required to maintain or repair such damage and fails to maintain or repair the damaged public property referred to aforesaid within thirty (30) days or such longer period if DEVELOPER is in good faith and with all due diligence attempting to cure said default, after written notice from CITY or such longer period as may reasonably necessary or in the event of an emergency as shorter time period as determined by CITY, CITY may, upon notifying DEVELOPER undertake making or causing it to be repaired or maintained. When CITY undertakes such repair, DEVELOPER shall reimburse CITY for all its reasonable expenses within thirty (30) of its billing to DEVELOPER. If DEVELOPER fails to pay said bill within thirty (30) days, the security shall be responsible for reimbursing CITY. 17 39. Non-Assignment Without Consent. The obligations of DEVELOPER under this Agreement may be assigned by DEVELOPER if the assignment is approved by CITY. However, DEVELOPER shall not be released from its obligations under this Agreement without the express written consent of the City Council through Council resolution. 40. Subordination. This Agreement must be recorded against the Subject Property and all other liens, interests or mortgages shall be subordinate to the terms and conditions this Agreement and said Agreement shall not be subject to foreclosure by any other lien, interest or mortgage. 41. Notices. Required notices to DEVELOPER shall either hand delivered to DEVELOPER, it employees or agents, or mailed to DEVELOPER by registered mail or sent by overnight delivery at the following address: Bury Industries, LLC and Bury Manufacturing, LLC ________________________________. Notice to CITY shall be in writing and shall be either hand delivered to the City Clerk or Deputy City Clerk or mailed by registered mail or sent by overnight delivery at the following address: City of Otsego, City Hall, 13400 90th Street NE, Otsego, MN 55330, Attention: City Clerk. 42. Agreement Effect. This Agreement shall be binding and extend to the respective representatives, heirs, successors and assigns of the parties hereto. 43. Amendment. This Agreement shall be amended only by addendum executed by both parties to this Agreement. 18 IN WITNESS WHEREOF, DEVELOPER and CITY have executed this Agreement as of the day and year above first written. CITY OF OTSEGO, A Minnesota municipal corporation _____________________________ Jessica L. Stockamp, Mayor _____________________________ Tami Loff, City Clerk DEVELOPER BURY INDUSTRIES, LLC A Minnesota limited liability company By:__________________________ Its BURY MANUFACTURING, LLC A Minnesota limited liability company By:__________________________ Its 19 STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) On this ______ day of May, 2018 before me personally appeared Jessica Stockamp and Tami Loff to me known as the persons described in the foregoing instrument and who did say they are, respectively, the Mayor and City Clerk of the municipal corporation named therein and that said instrument was signed on behalf of said municipal corporation by authority of its City Council and said Jessica Stockamp and Tami Loff acknowledged said instrument to be the free act and deed of said municipal corporation. _____________________________ NOTARY PUBLIC STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) On this ______ day of May, 2018, before me personally appeared ________________ to me known as the person described in the foregoing instrument and who did say he is the ____________ of Bury Industries, LLC and that said instrument was signed on behalf of Bury Industries, LLC with authority and on behalf of the company and said ________________ acknowledged said instrument to be the free act and deed of said entity. _____________________________ NOTARY PUBLIC 20 STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) On this ______ day of May, 2018, before me personally appeared ________________ to me known as the person described in the foregoing instrument and who did say he is the ____________ of Bury Manufacturing, LLC and that said instrument was signed on behalf of Bury Manufacturing, LLC with authority and on behalf of the company and said ________________ acknowledged said instrument to be the free act and deed of said entity. _____________________________ NOTARY PUBLIC DRAFTED BY: MACARTHUR LAW OFFICE 3601 Thurston Avenue North Suite 103 Anoka, MN 55303 763-231-5850 21 EXHIBIT A LEGAL DESCRIPTION OF THE SUBJECT PROPERTY The North Half of the North Half of the Southeast Quarter of Section 27, Township 121 North, Range 24 West And The South Half of the North Half of the Southeast Quarter of Section 27, Township 121 North, Range 24 West. 22 EXHIBIT B DEVELOPMENT PLANS FOR THE SUBJECT PROPERTY Development Plans for BURY INDUSTRIAL PARK by __________ dated _______, 2018 and approved by CITY _______, 2017 cover sheet attached. . 23 EXHIBIT C- MUNICIPAL IMPROVEMENTS Watermain.