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ITEM 1 Bury Industrial Park4 otseF o MINNESOTA g DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Legal City Attorney November 4, 2019 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty 1.1 STRATEGIC VISION MEETS: THE CITY OF OTSEGO: agreement. 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. No 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. property. Title Objections were made regarding the Developer's Agreement affecting the property. The Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff recommends that the City Council approve the attached resolution releasing a development agreement. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKGROUND/JUSTIFICATION: The City Council previously approved a Plat and Developer's Agreement for Bury Industrial Park in 2018. Michels, operating as Otsego LLC, is in the process of purchasing Outlot C and is preparing to close on the property. Title Objections were made regarding the Developer's Agreement affecting the property. The Developers Agreement relates to obligations of Bury Industries, LLC to the City and only included Outlot C since the Plat was entirely owned by Mr. Bury. Upon further development of the property Michels will have to enter into a separate Developers Agreement on the subject property. Otsego LLC has requested that the City release the property from the terms and conditions of the Agreement. I have reviewed the Developers Agreement and have checked with City staff regarding outstanding assessments or financial obligations. All of the obligations in the Agreement have been secured against the property owned by Mr. Bury. Therefore, City staff recommends that the City release the property from the Agreement as requested. SUPPORTING DOCUMENTS ATTACHED: 0 Resolution 2019-66 POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES: Motion to adopt Resolution 2019-66 releasing certain property from recorded developers' agreements for Outlot C, Bury Industrial Park. BUDGET INFORMATION FUNDING: BUDGETED: N/A N/A CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2019-66 RELEASING CERTAIN PROPERTY FROM RECORDED DEVELOPERS AGREEMENTS- OUTLOT C, BURY INDUSTRIAL PARK WHEREAS, OTSEGO LLC, a Wisconsin limited liability company has purchased OUTLOT C, BURY INDUSTRIAL PARK; and WHEREAS, the CITY OF OTSEGO entered into a certain agreement with the previous owner BURY INDUSTRIES, LLC and BURY MANUFACTURING, LLC as follows: DEVELOPMENT AGREEMENT BURY INDUSTRIAL PARK June 8, 2018, filed June 8, 2018 as Document No. A137192lat the Office of the County Recorder, Wright County, Minnesota. WHEREAS, OTSEGO LLC has requested release of OUTLOT C from this Agreement. 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 OUTLOT C, BURY INDUSTRIAL PARK from the terms and conditions of the following Agreement: DEVELOPMENT AGREEMENT BURY INDUSTRIAL PARK by and between BURY INDUSTRIES, LLC and BURY MANUFACTURING LLC and the CITY OF OTSEGO dated June 8, 2018, filed June 8, 2018 as Document No. Al371921 at the Office of the County Recorder, Wright County, Minnesota. 2. Release of the Agreement as set forth above is contingent upon OTSEGO LLC purchasing OUTLOT C, BURY INDUSTRIAL PARK. APPROVED this 4th day of November, 2019 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 Clerk 2