RES 20-52CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2020-52
APPROVING AND ADOPTING
SPECIAL ASSESSMENTS
WHEREAS, R. SCHULTZ EXCHANGE, LLC, a Minnesota limited liability company, and E. SCHULTZ EXCHANGE,
LLC, a Minnesota limited liability company ("Owners") have requested that the Otsego City Council specially
assess certain public improvement costs that affect Owners' property legally described in Exhibit A attached
hereto ("Subject Property");
WHEREAS, the City has received the following signed Public Improvement and .Special Assessment
Agreement (Exhibit B) waiving all applicable assessment procedural requirements and requesting to be
assessed for the public improvement costs in the amount itemized therein for the Subject Property;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:.
1. The signed Public Improvement and Special Assessment Agreement is hereby accepted and approved.
2. The public improvement costs amounting to $960,500.00 are hereby adopted and shall constitute .a
special assessment against the Subject Property and hereby made part of this Resolution by reference
and that the tract of land therein included is hereby found to be benefited by the proposed
improvement in the amount of the assessment levied against it.
3. Such assessment shall be payable in equal annual installments without deferment extending over a
period of seven (7) years, the first of the installments to be payable with taxes paid in 2021 and shall
bear the interest rate of 2.20% per annum from the date of adoption of this assessment Resolution. To
the first installment shall be added interest on the entire assessment from the date of this Resolution
until December 31, 2021.
4. The Owners, at any time prior to certification of the assessment to the County Auditor,., may pay. the
whole of the assessment on such property, with interest accrued to the date.of payment, to the City,
except that no interest shall be charged if the entire assessment is paid within thirty (30) days from the
adoption of this Resolution; and such owner may at any time thereafter, pay the City the entire amount
of the assessment remaining unpaid, with interest accrued to December 31 of the year in which -such
payment is made. Such payment must be made before November 15 or interest will be charged
through December 31 of the next succeeding year. The Owners may also at any time -prior to
November 15, of any year, pay the remaining unpaid .principal balance with interest accrued to.
December 31 of the year in which such prepayment is made.
5. The City Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to
be extended on the property tax lists of the County.
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ADOPTED by the Otsego City Council this 10th day of August, 2020.
MOTION BY: Darkenwald
SECONDED BY: Tanner
IN FAVOR: Stockamp, Darkenwald, Tanner, Goede, Warehime
OPPOSED: None
210911v2
CITY OF OTSEGO
GAW610P3�
Jessica L. Stockamp, Mayor
ATTEST:
Tami M. Loff, City Clerk
EXHIBIT A
TO
RESOLUTION
Lot 1, Block 4, Great River Centre of Otsego 2nd Addition, Wright County, Minnesota, according to the
recorded plat thereof.
[PID 118-252-0040101
(Abstract Property)
210911v2
EXHIBIT B
TO
RESOLUTION
PUBLIC IMPROVEMENT
AND
SPECIAL ASSESSMENT AGREEMENT
AGREEMENT made this _ day of , 2020, by and between the CITY OF
OTSEGO, a Minnesota municipal corporation ("City") and R. SCHULTZ EXCHANGE, LLC, a Minnesota
limited liability company, and E. SCHULTZ EXCHANGE, LLC, a Minnesota limited liability company
("Property Owners").
RECITALS
A. Property Owners are the owners of real property located in the City of Otsego, Wright
County, Minnesota, as legally described on Exhibit A attached hereto and incorporated herein (the
"Subject Property").
B. The Property Owners entered into a Site Improvement Performance Agreement with
the City for improvement of the Subject Property dated and recorded with Wright County
as Document #
C. Whereas Paragraph 17 the Site Improvement Performance Agreement requires the
Property Owners to pay Sewer and Water Connection Charges in accordance with the City Code at the
time a building permit is issued for the Subject Property.
D. The Property Owners have requested that the City assess the Sewer and Water
connection Charges due for the proposed development ("Fees") against the Subject Property.
NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE
AS FOLLOWS:
1. SPECIAL ASSESSMENT. The City will assess the Fees in the amount of nine hundred sixty
thousand five hundred dollars ($960,500.00) against the Subject Property. The special assessment shall be
deemed adopted on the date this Agreement has been signed by all parties. The assessment shall be
spread without deferment over a seven (7) year period in equal annual installments, together with interest
of two and two tenths percent (2.2%) per year on the unpaid balance. The first installment shall be payable
with taxes paid in 2021.
2. WAIVER. Property Owners, their successors and assigns, waive any and all procedural and
substantive objections to the Public Improvements and special assessment, including but not limited to
hearing requirements and any claim that the assessment exceeds the benefit to the Subject Property.
Property Owners waive any appeal rights otherwise available pursuant to Minn. Stat. § 429.081.
3. RELEASE. Property Owners, their successors and assigns, hereby unconditionally release
and forever discharge the City, its elected officials, employees, agents and insurers from any and all claims
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210911v2
and causes of action of whatever kind or nature that is in any way connected with or related to the Public
Improvements and the City's sewer and water systems, including mapping errors.
4. BINDING EFFECT; RECORDING. This Agreement shall be binding upon Property Owners
and their successors and assigns. This Agreement shall run with the land and may be recorded against the
title to the Subject Property.
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
CITY OF OTSEGO
AND:
Jessica L. Stockamp, Mayor
Tami M. Loff, City Clerk
The foregoing instrument was acknowledged before me this day of
2020, by Jessica L. Stockamp and Tami M. Loff, the Mayor and City Clerk of the
City of Otsego, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the
authority granted by its City Council.
NOTARY PUBLIC
5
21091 M
STATE OF MINNESOTA )
)ss.
COUNTY OF WRIGHT )
OWNER:
R. SCHULTZ EXCHANGE, LLC
3'E
Its
The foregoing instrument was acknowledged before me this day of
2020, by Rick Schultz, the Chief Manager of R. Schultz Exchange, LLC, a Minnesota limited liability company,
on behalf of said limited liability company.
STATE OF MINNESOTA )
)ss.
COUNTY OF WRIGHT )
NOTARY PUBLIC
OWNER:
E. SCHULTZ EXCHANGE, LLC
W
Its
The foregoing instrument was acknowledged before me this day of
2020, by Eric Schultz, the Chief Manager of E. Schultz Exchange, LLC, a Minnesota limited liability company,
on behalf of said limited liability company.
THIS INSTRUMENT WAS DRAFTED BY:
Campbell Knutson,
Professional Association
Grand Oak Office Center 1
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
DSK/smt
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NOTARY PUBLIC
EXHIBIT A
Lot 1, Block 4, Great River Centre of Otsego 2nd Addition, Wright County, Minnesota, according
to the recorded plat thereof.
[PID 118-252-0040101
(Abstract Property)
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210911v2