ITEM 3.4A Adopting Assessments for Lot 1, Block 1 Parkview Retail (Coborns)4
ots T Y F o
MINNESOTA g
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/Finance Director Flaherty
October 26, 2020
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent
City Attorney Kendall
3.4 (A)
STRATEGIC VISION
MEETS:
THE CITY OF OTSEGO:
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.
X
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 is recommending that the City Council approve a resolution adopting the assessments for Lot 1,
Block 1, Parkview Retail (Coborn's).
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/J USTI FICATION:
During the development approval process, Coborn Realty Company, LP, petitioned the City Council to pay
certain development fees as a special assessment. Along with the petition for assessment of the respective
development fees, Coborn Realty Company, LP, has signed waivers to any and all hearings, irregularities in
procedure, and any and all rights to object said assessments, including but not limited to any right of
appeal under Minnesota Statute §429.081, any other statute or case law.
The detail of the development fees are as follows:
- Water Availability Charges: $36,839.99
- Sewer Availability Charges: $52,788.12
- Park and Trail Dedication Fees: $16,870.00
- Storm Water Management Impact Fee: $19,323.45
The grand total of the amount to be certified as a special assessment will be $125,821.56. The assessments
will begin to be payable in 2021, with a 7-year amortization schedule and interest of 0%.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2020-70
• Exhibit A — Estimated Amortization Schedule
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
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BUDGET INFORMATION
FUNDING: BUDGETED:
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2020-70
ADOPTING ASSESSMENT OF DEVELOPMENT FEES
LOT 1, BLOCK 1, PARKVIEW RETAIL
WHEREAS, Coborn Realty Company, LP, a Minnesota limited partnership, is the Owner of the property
legally described as Lot 1, Block 1, Parkview Retail; according to the Plat on file and of record with the
Office of the County Recorder, Wright County, Minnesota [PID 118-341-001010]; and
WHEREAS, Coborn Realty Company, LP as Owner, has petitioned the City for assessments related to
Development Fees including Water Availability Charges, Sewer Availability Charges, Storm Water
Management Impact Fees, and Park Dedication Fees; and
WHEREAS, Coborn Realty Company, LP as Owner, has petitioned the City for assessments related to
Development Fees including Water Availability Charges, Sewer Availability Charges, Storm Water
Management Impact Fees, and Park Dedication Fees; and
WHEREAS, the City of Otsego and Owner have agreed to special assessments against the property; and
WHEREAS, Coborn Realty Company, LP as Owner, has previously waived any and all hearings,
irregularities in procedure and any and all rights of appeal under Minnesota Statute or any other right of
appeal pursuant to Paragraph 20 of that document entitled Development Agreement, Lot 1, Block 1,
Parkview Retail, dated April 2, 2020.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. Such proposed assessment, attached hereto as Exhibit A and made a part hereof, are hereby
accepted and shall constitute the special assesment against the properties named therein and
that the tract of land therein included is hereby found to be benefited by the improvements in
the amount of the assessment levied against it.
2. Such assessment for Development Fees against [PID 118-341-001010], Lot 1, Block 1, Parkview
Retail in the principal amount of $125,821.56, shall be payable in equal annual installments
extending over a period of seven (7) years, the first of the installments to be payable on or before
the first Monday in January 2021, and shall bear interest at the rate of 0.00% percent per annum
from the date of adoption of this resolution. To the first installment shall be added interest on the
entire assessment from the date of this resolution until December 31, 2021.
The owner of any property so assessed may, at any time prior to certifications of the assessment
to the County Auditor, pay the whole of the assessment on such property, with interest accrued
to the date of payment, to the City of Otsego, except that no interest shall be charged if the entire
assessment is paid within 30 days from the adoption of this resolution; and the owner may, at any
time thereafter, pay to the City of Otsego 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.
4. The Finance Director shall forthwith transmit a certified copy of this assessment to the Wright
County Auditor to be extended on the property tax lists of the County. Such assessments shall be
paid over in the same manner as other City property taxes.
ADOPTED by the Otsego City Council this 26th day of October, 2020.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica L. Stockamp, Mayor
ATTEST:
Bethany Benting, Deputy City Clerk
EXHIBIT A
City of Otsego
Special Assessments - Estimated Amortization Schedule
Assessment - Water Availability Charges
Parkview Retail
Lot 1 Block 1
Interst Payment Principal
Year Assessed Accrual Principal Interest Total Balance
2020 36,839.99
- -
- -
36,839.99
2021 -
- 5,262.86
- 5,262.86
31,577.13
2022 -
- 5,262.86
- 5,262.86
26,314.27
2023 -
- 5,262.86
- 5,262.86
21,051.41
2024 -
- 5,262.86
- 5,262.86
15,788.55
2025 -
- 5,262.86
- 5,262.86
10,525.69
2026 -
- 5,262.86
- 5,262.86
5,262.83
2027 -
- 5,262.83
- 5,262.83
-
Totals 36,839.99 - 36,839.99
Interst
Year Assessed Accrual
Payment
Principal Interest
Total
Principal
Balance
2020 52,788.12 -
- -
-
52,788,12
2021 - -
7,541.16 -
7,541.16
45,246.96
2022 - -
7,541.16 -
7,541.16
37,705.80
2023 - -
7,541.16 -
7,541.16
30,164.64
2024 - -
7,541.16 -
7,541.16
22,623.48
2025 - -
7,541.16 -
7,541.16
15,082.32
2026 - -
7,541.16 -
7,541.16
7,541.16
2027 - -
7,541.16 -
7,541.16
-
Totals 52,788.12 - 52,788.12
City of Otsego
Special Assessments - Estimated Amortization Schedule
Assessment - Storm Water Management Impact Fee
Parkview Retail
Lot 1 Block 1
Interst Payment
Principal
Year Assessed Accrual Principal Interest
Total
Balance
2020 19,323.45 - - -
-
19,323.45
2021 - - 2,760.49 -
2,760.49
16,562.96
2022 - - 2,760.49 -
2,760.49
13,802.47
2023 - - 2,760.49 -
2,760.49
11,041.98
2024 - - 2,760.49 -
2,760.49
8,281.49
2025 - - 2,760.49 -
2,760.49
5,521.00
2026 - - 2,760.49 -
2,760.49
2,760.51
2027 - - 2,760.51 -
2,760.51
-
Totals 19,323.45 - 19,323.45
City of Otsego
Special Assessments - Estimated Amortization Schedule
Assessment - Park Dedication Fee
Parkview Retail
Lot 1 Block 1
Interst
Payment
Principal
Year Assessed Accrual
Principal Interest
Total
Balance
2020 16,870.00 -
- -
-
16,870.00
2021 - -
2,410.00 -
2,410.00
14,460.00
2022 - -
2,410.00 -
2,410.00
12,050.00
2023 - -
2,410.00 -
2,410.00
9,640.00
2024 - -
2,410.00 -
2,410.00
7,230.00
2025 - -
2,410.00 -
2,410.00
4,820.00
2026 - -
2,410.00 -
2,410.00
2,410.00
2027 - -
2,410.00 -
2,410.00
-
Totals 16,870.00 - 16,870.00