ITEM 3.9 Parkview Grand.'
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MINNtSOT£.
DEPARTMENT INFORMATION
ORIGINATING p[-VT REQUESTi7R:
Planning City Planner Licht
Request for
City council Action
PRESENTER(s)i REVf[W-LO BY:
Consent City Administrator/Finance Director Flaherty
Emeritus City Attorney MacArthur
City Engineer Wagner
MEETING DATE:
13 April 2020
ITEM #:
3.9 — Parkview Grand
STRATEGIC
VISION
THE CITY OF OTSEGO,
MEETS;
Is a strong organization that is committed to leading the community through innovative
communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
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Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION: — -
City staff recommends approval of a final plat and development agreement for Parkview Grand.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED? -
Yes. N p.
SACKGROUN0/1USTIFICATiON:
Kuepers Inc. has submitted ,plans for development of Outlat A, Parkview Retail with a 70 unit apartment
building. The subject site is zoned R-7, High Density Residential District and governed by a PUD-CUP
approved by the City Council on 22 July 2019. The proposed development requires consideration of a PUD-
CUP amendment related to the building, site and building plan review, and final plat.
The PUD-CUP amendment and site and building plans were approved by the City Council an 10 February
2020. The final plat for Parkview Grand is an outlot within the Parkview Retail final plat and execution of
the Parkview Retail development agreement provides for completion of streets and utilities within the plat
as a public project. Action to approve the final plat and development agreement was delayed until such
time as the final plat for Parkview Retail was submitted and the development agreement for that
subdivision executed.
The City has received the final plat of Parkview Retail for recording and the executed development
agreement, including fees and securities. Emeritus City Attorney MacArthur has finalized the development
agreement for Parkview Grand and the final plat and construction plans have been approved by City staff.
SUPPORTING DOCUMENTS ATTACHED:
■ Site location map
■ Final Plat
■ Findings of Fact and Decision
■ Resolution 2020-21 approving a development agreement
• Development Agreement
POSSIBLE MOTION
PLEASE WORT] MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve the final plat of Parkview Grand subject to the conditions outlined in the findings of fact
and decision as presented, and adopt Resolution 2020-21 approving a development agreement.
BUDGET INFORMATION
FUNDING:
NA
BUDGETED: �.
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APPLICANT: Kuepers, Inc.
APPLICATION: Request for approval of a final plat to be known as Parkview Grand.
CITY COUNCIL MEETING: 13 April 2020
7 April 202D
FINDINGS & DECISION
Final Plat
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 properties is Outlot A, Parkview Retail.
B. The property lies within the East Sewer District and is guided for commercial uses by the 2012 Otsego
Comprehensive Plan, as amended.
C. The property is zoned R-7, High Density Residential District in accordance with the ordinance and
PUD-CUP approved by the City Council on 22 July 2019.
D. The developer is proposing to final plat 1 lot for development of a 70 unit multiple family use on the
property; multiple family dwellings are a permitted use within the R-7 District.
E. The planning report dated 27 January 2020 prepared by the City Planner, The Planning Company LLC,
is incorporated herein.
F. Final plat applications are processed in accordance with Section 10-3-3 of the Subdivision Ordinance
and do not require a recommendation by the Planning Commission.
DECISION: Based on the foregoing information and applicable ordinances, the request is hereby
APPROVED, subject to the following condition:
1. The applicant shall execute a development agreement as drafted by the City Attorney and subject to
approval of the City Council.
MOTION BY:
SECOND BY:
ALL IN FAVOR:
THOSE OPPOSED:
ADOPTED by the City Council of the City of Otsego this 13"' day of April, 2020.
'AfrXII9*1f-I CIC,
By:
Jessica L. Stockamp, Mayor
Attest:
By:
Tam! Loff, City Clerk
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2020-21
APPROVING DEVELOPERS AGREEMENT - PARKVIEW GRAND
WHEREAS, Grand Apartments of Otsego, LLLP intends to construct multifamily dwelling units
platted as PARKVIEW GRAND; and
WHEREAS, the approved work on the Plat requires construction of some public improvements
and payment of City costs and fees; 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, MINNESOTA'
1. The attached Developers Agreement between the City of Otsego and Grand Apartments
of Otsego, LLLP is hereby approved, subject to staff approved additions and changes.
2. The Mayor and City Clerk are hereby authorized to execute the Developers Agreement
on behalf of the City of Otsego.
ADOPTED by the Otsego City Council this 13th day of April, 2020.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica L. Stockarnp, Mayor
ATTEST:
Tami M. Loff, City Clerk
DEVELOPMENT AGREEMENT
LOT 1, BLOCK 1, PARKVIEW GRAND
THIS AGREEMENT, entered into this day of _ _ , 2020 by and
between the CITY OF OTSEGO, a Minnesota municipal corporation ("CITY") and,
Park -view Grand Apartments of Otsego, LLLP, a Minnesota limited liability limited
partnership ("DEVELOPER").
RECITALS
WHEREAS, DEVELOPER has proposed construction of 70 units of multifamily
dwelling units on OUTLOT A, PARKVIEW RETAIL; and
WHEREAS, DEVELOPER has or will acquire fee ownership of the parcel of
land described as OOTLOT A, PARKVIEW RETAIL, which includes approximately
3.52 acres and is proposed to be final platted as LOT 1, BLOCK 1, PARKVIEW
GRAND (the "Subject Property") as part of the final plat known as PARKVIEW
GRAD (the "Final Plat" or "flat"); and
WHEREAS, the Final Plat is zoned'R-7, High Density Residential District PUD,
and governed by a PUD—CUP adopted by the City Council on July 22, 2019; and
WHEREAS, the Final Plat approval for LOT 1, BLOCK 1, PARKVIEW
GRAN-D requires that the DEVELOPER enter into this Agreement with the CITY as a
condition of approval; and
WHEREAS, the buildings and improvements within LOT 1, BLOCK 1,
PARKVIEW GRAND shall be constructed, maintained and operated in accordance with
the Final 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;
[29234-000113 7 17962/11
1. Development Plans. LOT 1, BLOCK 1, PARKVIEW GRAND shall be
developed in accordance with the plans, the cover sheet of which is attached to this
Agreement as Exhibit C and signed by the City Engineer on file and of record at CITY
and Tully incorporated herein by reference and the conditions stated below (hereinafter
the "Building Development Plans"). If the Building Development Plans vary from the
written wrens of this Agreement, the Building Development Plans shall control. The
buildings shall be substantially completed by December 31, 2021.
2. Municipal Improvements. The Building Development Plans include
certain Municipal Improvements as set forth on the attached Exhibit C.
3. Private Improvements and Parking. 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 as provided in the
Building Development Plans, All Private Improvements are to be installed at
DEVELOPER'S sale cost and expense pursuant to this Agreement.
DEVELOPER shall construct one hundred forty-two (142) parking spaces
to serve the apartment building including seventy (70) parking stalls within an enclosed
garage below the principal building.
DEVELOPER shall construct such Private Improvements in accordance
with all applicable building cedes, 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 Buildings.
CITY shall provide adequate field inspection personnel to assure acceptable quality
control, which will allow certification of the construction work. Within thirty (30) clays
after the completion of the building and before any security is released, the DEVELOPER
shall supply the CITY with a complete set of reproducible "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, and record
the Plat with the Wright County Recorder or Registrar of titles within one hundred twenty
(120) clays of Plat approval. The DEVELOPER shall cooperate with the CITY in (i)
recording the Plat and this Agreement, and (ii) providing assurance that the Plat and this
Agreement have been properly and timely recorded.
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
129234-OOD1l3717962111 2
fully executed by bath patties and filed with the City Clerk, and all conditions for
proceeding with grading and construction 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 the Plat dues not occur until such time as all required security is posted.
7. Changes in Official Controls. PARKVIEW GRAND is a planned and
staged development within the meaning of Minn.. Stat. 462,358, Subd.. 3c, and no
amendment to the City'; Comprehensive Plan or other Official Controls (as defined in
Minn. Stat. 462.352, Subd. 15) shall apply to or affect the use, development density, lot size,
lot layout, or platting requirements for future phases of PAIVIEW GRAND 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 alter the
date of this Agreement.
8. Development Plans. The Plat shall be developed in accordance with the
Building Development Plans on file at the office of the City Clerk and the conditions stated
below. If such plans vary from the written terms of this Agreement, the plans shall control.
The plans are:
Plan A Final Plat, PARK VIEW GRAND, dated , 2020
prepared by Westwood Professional Services, Inc.
Plan B PUD Development Stage Plan, dated prepared by
and as finally approved by the City Council can July 22,
2019.
Plan C Grading, Drainage, and Erasion Control Plan prepared by
Campion Engineering Services, Inc. and as finally approved by
the: City Engineer.
Plan D Construction Plans for PA.RKVIEW GRAND, prepared by
and as finally approved by the City Engineer.
[29234-000113717962/11 3
Plan E Specifications for PARKVIEW GRANT, prepared by
and as finally approved by the City Engineer.
Plan F Landscape Plan for PARKVIEW GRAND, prepared by
and as finally approved by the 'Zoning
.Administrator.
9. Improvements. The DEVELOPER shall install and pay for the following:
A. Site grading and ponding
B. Underground installation of all utilities
C. Storm water management improvements
D. Setting of lot and block monuments
E. Construction surveying and staking
P. Landscaping
Improvements shall be installed in accordance with City standards, the City
Cade, 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 alter 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 AutoC1AD.DWG file or a
.DF° 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 DI.VELOPER'S surveyor shall submit a written
notice to the CITY certifying that the monuments are installed following site grading, utility
and streetconstruction.
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.
[29234-4401137 17962/ 1) 4
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. NIPCA NPDES Permit for construction activity
F. MPCA for sanitary sewer and hazardous material removal and
disposal
G. DNR for dewatering
H. City of Otsego for building permits
1. 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
flaws, 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 December 31, 2021; provided however that the deadline shall be extended
for each day of Unavoidable Delay. The DEVELOPER may request an extension of tone
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. For purposes of
this Section, "Unavoidable Delays" means delays, outside the control of the party
claiming its occurrence, which are the direct result of strifes, other labor troubles,
[29234-0001/3717962/11 5
unusually severe or prolonged bad weather, acts of God, fire or other casualty to the
Project, delays in delivery of materials for the construction of the Project, the soil
conditions of the Development Property, litigation commenced by third parties which, by
injunction or other similar judicial action or by the exercise of reasonable discretion,
directly results in delays, acts of any federal, state or local governmental unit (other than
the City) which directly result in delays, any pandemic or other cause outside: of
DEVELGPF,R'S reasonable control.
14. Right of Entry. The DEVELOPER hereby grants to the CITY, its agents,
employees, officers and contractors an irrevocable right of entry at reasonable times upon
reasonable notice to enter the Plat to perform any and all work and inspections reasonably
necessary or deemed reasonably 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, the CITY shall give; the.
DEVELOPER thirty (30) business days' written notice stating the deficiencies and
necessary corrections and a reasonable time to cure prior to making any corrective action.
Said right of entry shall continue until the CITY finally accepts the public 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 C, shall be implemented by the DEVELOPER and inspected and reasonably 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 tape place and what
particular building permits can be issued prior to full implementation. The CITY may
impose additional erosion control requirements if, in the reasonably opinion of the City
Engineer, they would be necessary. All areas disturbed by the excavation and baekfilling
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 and opportunity to cure,
take action as it deems reasonably appropriate.
16. Grading Plan. Plat grading shall be in accordance with the approved grading
plan, Plan C. The plan shall conform to CITY specifications and the City Cade. Ponds,
swales and ditches shall be constructed on public easements. Within thirty (30) days after
completion of grading and before any retained security is Fully released, the DE ELOPER
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,
17. Grading, Landscaping and Drainage. The DEVELOPER shall be
responsible for grading, landscaping and stone water management within the Plat as
[29234-000113717962111 6
more fully set forth in this Agreement and the PUD Development Stage Plan, and
Landscaping Plan.
A. Landscaping. DEVELOPER shall maintain the sod and landscape of
boulevard areas adjacent to streets as shown in the Building
Development Plans through at least one growing season and to the
reasonable satisfaction of CITY. The long-term maintenance of sad
and landscaping of boulevard areas shall be the responsibility of
DEVELOPER. Further, DEVELOPED shall be responsible for
mowing, elimination of weeds and removal of any garbage or debris.
B. Erosion Control. The erosion control plan for the Plat within the
Building Development Plans has been reviewed and approved by
CITY and shall be implemented by DEVELOPER prior to grading.
All areas disturbed by the excavation and backfilling operations shall
be reseeded forthwith after completion of work in that area. If
DEVELOPER dues not comply with the erosion control plan and
schedule or any erosion control requirements, CITY may, after
reasonable notice and an opportunity to cure, tape action as it deems
reasonably appropriate in accordance with all applicable laws,
ordinances or regulations or according to this Agreement.
C. Grading Plan. Grading shall be in accordance with the approved
Grading Plaza 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 flans, and to coordinate the schedule with the City Engineer.
19. Ownership of Improvements. Upon completion of the work and
construction rewired by this Agreement; improvements lying within public easements
within the Plat shall became 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 fee for City Administration of this project is as
stated by the Financial Summary attached hereto as Exhibit B.
129234-0001/3717962111 7
22. Park and Trail Dedication. The park and trail dedication requirements for
the Plat shall be as a cash fee in lieu of land as stated by the Financial Summary attached
hereto as Exhibit B.
23. Storm Water Fees, and Storm 'Water Basin. The ston-nwater management
fee for the Plat due upon final plat approval is stated by the Financial Summary attached
hereto as Exhibit B.
24. Sewer Availability Charges. The Sewer .Availability Charges for the Plat
due upon final Plat approval are stated by the Financial Suimnary attached hereto as Exhibit
B.
25. Sewer Connection Fees. Sanitary sewer connection fees are paid at the time
of issuance of a building permit.
26. Water Availability Charges. The Water Availability Charges for the Plat
due upon Final Plat approval are stated by the Financial Summary attached hereto as Exhibit
B.
27. Water Connection Fees. Water connection fees are paid at the time of
issuance of a building permit.
28. Street Lighting Fees. Upon approval of the Final Plat, the DEVELOPER
shall pay to the CITY for the purchase and installation of street lights the amount as stated
by the Financial SutrttYtary attached as Exhibit B hereto.
29. CITY Engineering, Engineering Administration, Construction
Observation, and Legal Fee Escrow and City Fees. The DEVELOPER shall pay a fee
for consulting engineering administration following approval of the Plat. 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 services. The DEVELOPER shall pay the costs
for construction observation performed by the City Engineer. Construction observation
shall include part or full time observation, as determined by the City Engineer, of proposed
street, sanitary sewer, water and storm drainage construction and will be billed on hourly
rates actually required for said inspection, which are estimated to be five percent (511/0) of the
estimated construction cost of the Plan C Improvements to be inspected. In the event of
prolonged construction or unusual problems, the CITY will notify the DEVELOPER of
anticipated cast overruns for engineering administration and observation services. Any
amounts for engineering administration not utilized from this escrow fund shall be returned
to the DEVELOPER when all improvements have been completed, all financial obligations
[29234-0001/3717962/1] 8
to the CITY satisfied, and the required "as constructed" plans have been received by the
CITY.
The escrow and fee account shall also include estimated fees for legal
expenses actually incurred (with any excess funds, if any, returned to DEVELOPER as
indicated further in this Paragraph 29), City Administrative Fee (a flat fee due upon
execution of this Agreement), Trunk Water and Sewer Access Dees (a flat fee due upon
execution of this Agreement), Transportation Infrastructure Costs (a flat fee clue upon
execution of this Agreement), Park and Trail Dedication. Fees (a flat fee due upon execution
of this Agreement), ,Street Light Maintenance and Operation Fee (a flat fee due upon
execution of this Agreement) and shall be as stated by the Financial Summary attached as
Exhibit B hereto.
This escrow amount shall be submitted to the CITY prior to the CITY
executing this Agreement. All administrative and legal fees related to plan review, drafting
of this Agreement and any other necessary items shall be paid to the CITY prier to
execution of this Agreement. Any amounts for legal and engineering not utilized from this
escrow Band shall. be returned to the DEVELOPER when all improvements have been
completed, all financial obligations to the CITY satisfied, and the required "as constructed"
plans have been received by the CITY.
All rather amounts listed as flat 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 public improvements, the DEVELOPER shall ftu-nish the CITY with a
cash escrow or Irrevocable Standby Letter of Credit with automatic renewal provisions in
the amount as stated by the Financial Security attached hereto as Exhibit B.
The issuer and farm 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, which approval
shall not be unreasonably withheld. 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 thank issuing the Letter of Credit.
The security shall be for a term ending December 31, 2021 and shall
contain an automatic renewal provision. CITY may draw dawn the Security for any
violation of the terms of this Agreement after reasonable 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
[29234-0001 /3717962111 9
relative to the security and this agreement. If, for whatever reason, the Security lapses
prior to complete compliance with this Agreement (ether 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 dawn the Security.
CITY may draw down the Security for any violation of the terms of this
Agreement (after any required notice to DEVELOPER and failure to cure within
applicable 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 that CITY has in its possession which are in excess of
the Security needed.
Upon receipt of proof reasonably 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 dawn to the amount of Warranty Security as set forth in
paragraph 31 of this Agreement.
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. The DEVELOPER warrants all public improvement 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 the CITY. The amount of posted
warranty security (the "Warranty Security") for public improvements to be posted by
DEV17U,OPER shall be 10% of the Security amount as stated by the Financial Summary
attached hereto as Exhibit B. 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 such public improvements.
32. DEVELOPER'S Construction and Maintenance of Private Drive.
Intentionally Deleted.
33. Responsibility for Costs.
129234-000113717962111 10
a. DEVELOPER shall pay all costs incurred by it in conjunction with
the development including, but not limited to legal, planning,
engineering, and inspection expenses in connection with the
development.
b. Except for gross negligence or willful and wanton acts of the CITY,
DEVELOPED shall hold CITY and its officers, employees and
agents harmless from clai►ns 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 DEVELOPED. DEVELOPER shall indemnify CITY
and its officers, employees and agents for all casts, damages or
expenses which CITY may pay or incur in consequence of such
claims, including attorney's fees.
C. In the event of dispute arise from or relating to this Agreement, the
Nutt -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. DEVELOPED shall pay in full all bills submitted to it by CITY for
obligations incurred under this Agreement and agreed to be paid by
DEVELOPED under this Agreement within thirty (30) days after
receipt of the invoices and supporting documentation. 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 eight percent (8%) per year.
34. Miscellaneous.
a. 'Third }parties shall have no recourse against CITY under this
Agreement.
b. 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.
C. 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
t29234-UUQ 1 /3717962/1,1 11
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.
d, 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. Upon request by
Developer, the City covenants to provide a recordable certificate of
completion or release within a reasonable period of time fallowing
the request, upon the satisfactory completion of the work and
responsibilities required herein, payment of all costs and fees
required, and satisfactory compliance with all terms of this
Agreement.
C. 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.
F. DEVELOPER shall pay for all local oasts, 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.
g. Should construction of DEVELOPER'S buildings or improvements
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
shall not unreasonably withhold consent to appropriate changes in
the terms of this Agreement.
h. DEVELOPER shall demonstrate and maintain compliance with the
1991 Wetland Conservation Act.
124234-0001/371796211 J 12
i. 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.
35. 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 following written
notice, 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,
CCTV may draw upon the DEVELOPI R's escrow or security to cure any violation of the
Agreement and to reimburse CITY for any costs incurred in curing the violation.
36, 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 DEVELOPED or its
contractors, except for damage caused by CITY, its employees, agents or contractors.
DEVELOPER further agrees to pay all reasonable casts required to repair the streets
and/or utility systems damaged or cluttered with debris when occurring as a direct 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 after
written notice or such longer period if DEVELOPED 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)
days of its billing to DEVELOPER. If DEVELOPER fails to pay said bill within thirty
(30) days, the security shall be responsible for reimbursing CITY.
37. Non -Assignment without Consent. The obligations of DEVELOPER
under this Agreement may be assigned by DEVELOPER if the assignment is approved
by CITY, which approval shall not be unreasonably withheld. However, DEVELOPED
shall not be released from its obligations under this Agreement without the express
written consent of the City Council through Council resolution, which consent shall not
be unreasonably withheld.
38. Subordination. This Agreement must be recorded against the Subject
Property and all other liens, interests or mortgages shall be subordinate to the terms and
129234-000113717962111 13
conditions this Agreement and said Agreement shall not be subject to foreclosure by any
other lien, interest or mortgage.
39. Notices. Except as otherwise expressly provided in, this Agreement, a
notice, demand or other communication under this Agreement by any party to any other
shall be sufficiently given or delivered if it is dispatched by registered or certified mail,
postage prepaid, return receipt requested, or delivered personally, and
in the case of the DEVELOPER is addressed to or delivered personally to:
Parkview Grand Apartments of Otsego, LLLP
17018 Commercial Park Road
Brainerd, MN 56401
Attn: Steve Kuepers
in the case of the CITY is addressed to or delivered personally to the CITY at:
City of Otsego, Minnesota
Otsego City Hall
13400 90 Street NE
Otsego, Minnesotan 55330
Attn: City Administrator
or at such other address with respect to any such party as that party may, from time to
time, designate in writing and forward to the other, as provided in this Section.
40. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall constitute one and the same instrument.
41. Law Governing. `Phis Agrvement wilt be governed and construed in accordance
with the laws of the State of Minnesota.
42. Agreement Effect. This Agreement shall be binding and inure to the
benefit of the parties and the respective representatives, heirs, successors and assigns of
the parties hereto.
43. Amendment, This Agreement shall be amended only by addendum
executed by bath parties to this Agreement.
[Signature pages fallow]
[29234-0001/3917962/11 14
IN WITNESS WHEREOF, DEVELOPED and CITY have executed this
Agreement as of the day and year above first written.
CITY OF OTSCGO,
A Minnesota municipal corporation
Jessica L. Stockarnp, Mayor
Tami Loff, City Clerk
STATE OF MINNESOTA, )
)Ss.
COUNTY OF WRIGHT )
On this day of , 2020, before me personally appeared Jessica
Stockamp and Tami Loff to rive 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 na>ned therein and that said instrument was signed on behalf of
said municipal corporation by authority of its City Council and said Jessica Stockainp
and Tami Loff acknowledged said instrument to be the free act and deed of said
municipal corporation.
NOTARY PUBLIC
129234-0001/3717962/1 ] 15
DEVELOPER
PARKVIEW GRAND APARTMENTS OF OTSEGO, LLaLP
A Minnesota limited liability limited partnership
By: Parkview Grand Apartments of Otsego, LLC
Steve Kuepc rs, Chief Manager
STATE OF MINNESOTA )
ss.
COUNTY OF }
On this day of _ , 2020, before one personally appeared Steve
Kuepers, to we known as the person described in the foregoing instrument and who did
say he is the Chief Manages- of Parkview Grand Apartments of Otsego, LLC, the general
partner of Parkview Grand Apartments of Otsego, LLLP, and that said instrument Was
signed on behalf of such entity with authority and on behalf ofthe company and said
Chief Manager acknowledged said instrument to be the free act and deed of said entity.
NOTARY PUUBLIC
DRAFTED BY!
MACARTHUR LAW OFFICE
H 205 45`h Place N.
Plymouth, MN 55442
763-226-3447
(2923A-0001/3717962/11 16
1 *:4:1.1:31 lI'I
LEGAL DESCRIPTION OF THE 'SUBJECT PROPERTY
LOT 1, BLOCK 1, PARKVIEW GRANT] according to plat on rile and of record at the
[office of the County Recorder, Wright County, Minnesota.
[29234-000111717962/ 11 17
EXHIBIT B- FINANCIAL SUMMARY
[29234-0001/3717962111 18
EXHIIIIT C
DEVELOPMENT PLANS FOR THE SUBJECT PROPERTY
Development Plans for PARKVIEW GRAND by Campion Engineering dated ,
2020 and approved by CITY , 2020, ever sheet attached.
129234-0001/371796211] 19
PARKVIEW GRAND
EXHIBIT
Summary of Financial Responsibility
Developer's Agreement
City of Otsego
Keepers, Ina
DEVELOPMENT Security - Letter of Credit
A. Site Grading, Erosion & Sediment Control and Wetland Protection
B. Sanitary Sewer- Lateral & Trunk
C_ Watermain - Lateral & Trunk
D. Storm Sewer - Lateral
E. Streets
F. Engineering & Surveying Construction Services (6,5%0)
I. Landscaping
Subtotal
Total Irrevocable Letter of Credit for Security (125% of Subtotal)
II, Escrow
A. Legal Service- 1,0%of $1,500,00 ($1,500minimum)
13, City Administrative 1.0% of $1,500,00 ($1,500 minimum)
C. City Construction Administration and Utility & Street ($10,000 minimum)
8% of $20,850.00
Total Escrow
III. Cash Fee
,A, Trunk Water & Sewer Access Fees
1. Trunk Sewer SAG
3.52 Gr Ac X 9,0 RECs/Gr Ac X $2,5971REC
2. Trunk Water WAC
3.52 Gr Ac X 9.0 RECs/Gr Ac X $1,813 /REC
B. Trunk Storm Water Management limeact Fee (North Mississippi Watershed)
3 2 Gross Ac X $7,045 /Gross Acre
C, park Dedication Fee
70 Units X $2,640 /Unit
D. Street Lights
4 Lights X $5,300/light
E, GIS Data EntDj Fee
3,52 Lots X $125 /Lot
Total Cash Fee
51ratud DoceTturlla;IpBlVaefeepuitlAsrk]'It AA.tl1 Fln$wnslu
8haal: FlnnnLm1611m1n;1ig
$10, 560.00
$0.00
20 850.00
$0.00
$0.00
$1 360.00
$41 255.00
$74, 025.00
$92,531.00
$1, 500.00
$1, 500.00
$10, 000.00
$13, 000, 00
$82,272.96
$57,435.84
$24, 798.40
$184, 800.00
$21, 200.00
$440.00
$ 396, 947.20
PAGE 1 OF 2
4M2o20
PARKVIEW GRAND
EXHIBIT
Summary of Financial Responsibility
Developers Agreement
City of Otsego
Kuepers, Inc
IV. Development Credits
A. Trunk Sanitary Sewer $0.00
B. Trunk Watermain $0.00
C, Trunk Storm Water Management $0.00
D. Park Dedication $0.00
Total Development Credits 1 $0.00
V. Development Warranty Letter of Credit
A. Watermain
$20,850.00 x 15 % $3,12T50
K Erosion & Sedimentation Control
$1 750,00 Site Restoration $1,750.00
Total Warranty Letter cf Credit $4,878.00
Ghamd l Flnsumtiu PAGE 2 OF 2
sham, r1odo lol sualhary 06/2 20