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ITEM 3.7 Release Development Agreements4 Ad, 11 1-11 OtsceP o MINNESOTA DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING BATE: Legal City Attorney MacArthur December 9, 2019 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty 3.7 STRATEGIC VISION MEETS: THE (CITY OF OTSEGO: X Is a strong organization that is committed to leading the community through innovative communication. No Has proactively expanded infrastructure to responsibly provide core services. BACKGROUND/J USTI FI CATI O N : Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. receives requests that these documents be released by the City since they are recorded against title to the Is a social community with diverse housing, service options, and employment opportunities. takes only a short staff review to determine whether or not the agreement can be released or partially Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: That the City Council approve a resolution authorizing City staff to release development agreements. ARE YOU SEEKING' APPROVALOF A CONTRACT? IS A PUBLIC HEARING REQUIRED?:' No No BACKGROUND/J USTI FI CATI O N : The City has approved numerous developer agreements over the years. From time to time, City staff receives requests that these documents be released by the City since they are recorded against title to the development property. Often these requests are made upon short notice as a closing issue. In most cases it takes only a short staff review to determine whether or not the agreement can be released or partially released. City staff has historically brought these releases to the City Council which often delays closings. City staff believes that it is more practical and efficient for the City Council to authorize the City Administrator to release these agreements after adequate consultation with the City Attorney and other City staff as necessary. This would be similar to the current policy where letters of credit are released at the staff level. SUPPORTING DOCUMENTS ATTACHED: 0 Resolution 2019-80 POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES: Motion to adopt Resolution 2019-80 authorizing staff release of developer agreements. BUDGET INFORMATION FUNDING: BUDGETED: N/A N/A CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2019-80 AUTHORIZING STAFF RELEASE OF DEVELOPER AGREEMENTS WHEREAS, the City regularly enters into Developer Agreements with entities developing property within the City; and WHEREAS, the Developer Agreements contain terms and conditions of approval, conditions for construction of public improvements, payment of City costs and fees and escrow and security; and WHEREAS, the Developer Agreements contain a provision for release of the Agreement upon satisfactory completion of all requirements and applicable warranty periods; and WHEREAS, City staff have been frequently contacted by Developers requesting that the City release thein from the Agreements; and WHEREAS, upon such request, City staff have reviewed the status of the Agreement and have brought the Agreement release to the City Council for consideration of the release; and WHEREAS, many times these requests are done in conjunction with a closing, which may be adversely affected by the time required to bring the issue to the City Council; and WHEREAS, the determination as to whether or not the agreement should be released can be made in short order by City staff. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Otsego, Wright County, Minnesota as follows; 1. The City Council herby authorizes the City Administrator, in consultation with City staff, to determine whether or not a particular Developer Agreement should be released without City Council action. 2. Upon a City staff determination that City Council review is not necessary, the City Administrator is hereby authorized to execute the Release of Developer Agreement on behalf of the City of Otsego. ADOPTED this 9th day of December, 2019 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