Item 3.14 Otsego Industrial Park 6th Addition4101
TY
Otse zC' o
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
Planning
City Planner Licht
14 December 2020
Consent
City Administrator/Finance Director Flaherty
3.14 —
City Engineer Wagner
Otsego Industrial Park 6th
City Attorney Kendall
STRATEGIC VISION
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
City staff recommends approval of a Development Contract for Otsego Industrial Park 6th Addition.
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The City Council approved a preliminary/final plat for the Otsego Industrial Park Addition 61h Addition at
their meeting on 14 September 2020. Section 10-10-4.A of the Subdivision Ordinance requires that the
developer execute a Development Contract with the City to provide for construction of the project,
completion of all public improvements, establishment of required securities, and payment of applicable
fees. The City Attorney has drafted a Development Contract related to the proposed subdivision, which is
to be adopted by resolution of the City Council and executed prior to recording of the final plat.
/
■ Resolution 2020-83 approving a Development Contract
■ Development Contract
POSSIBLE MOTION
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Motion to adopt Resolution 2020-83 approving a Development Contract for the Otsego Industrial Park 61h
Addition.
BUDGET INFORMATION
NA
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2020-83
APPROVING A DEVELOPMENT CONTRACT FOR
OTSEGO INDUSTRIAL PARK SIXTH ADDITION
WHEREAS, Cummings Property Management II, LLC (the "developer") is proposing the plat of Otsego
Industrial Park Sixth Addition; and
WHEREAS, the final plat was approved on 14 September 2020 by the City Council; and
WHEREAS, Section 10-10-4.A of the Subdivision Ordinance requires the developer to enter into a
Development Contract to provide the City construction and warranty securities for the public and private
improvements and to provide the City various remedies in the event that the developer breaches the
terms and conditions of said agreement; and
WHEREAS, those obligations are outlined and memorialized in the attached Development Contract.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA THAT:
1. The Development Contract attached hereto between the City of Otsego and Cummings Property
Management, Inc. is hereby approved in form subject to modification of fees, charges, and securities
as approved by City staff.
The Mayor and Deputy City Clerk are hereby authorized to execute the Development Contract on
behalf of the City of Otsego.
ADOPTED by the Otsego City Council this 14th day of December, 2020.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica L. Stockamp, Mayor
ATTEST:
Bethany Benting, Deputy City Clerk
(reserved for recording information)
DEVELOPMENT CONTRACT
(Developer Installed Improvements)
CONTRACT dated , 2020, by and between the CITY OF OTSEGO, a
Minnesota municipal corporation ("City"), and Cummings Property Management II, LLC , INC., a
Minnesota corporation (the "Developer")
1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a plat
for OTSEGO INDUSTRIAL PARK SIXTH ADDITION (referred to in this Contract as the "plat"). The land is
situated in the County of Wright, State of Minnesota, and is legally described in Exhibit "A" attached hereto
and made a part hereof.
2. CONDITIONS OF PLAT APPROVAL. The City hereby approves the plat on condition that
the Developer enter into this Contract, furnish the security required by it, and record the plat with the
County Recorder or Registrar of Titles within 100 days after the City Council approves the final plat.
3. RIGHT TO PROCEED. Within the plat or land to be platted, the Developer may not grade
or otherwise disturb the earth or remove trees, unless a grading permit has been approved by the City
Engineer following approval of a preliminary plat by the City Council, which shall not be unreasonably
denied, withheld, or delayed, or construct sewer lines, water lines, streets, utilities, public or private
improvements, or any buildings until all the following conditions have been satisfied: 1) this contract has
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Otsego Industrial Park 6111 Addition
been fully executed by both parties and filed with the City Clerk, 2) the OecBSS8[y S8CUritv has been
received by the Citv, g) the OeCeSS3[y iOSUc@OCe for the O8Ve|VpB[ and its CDOStDJCtiOO COFk[@CtOnS has
been received by the City, and 4\ the plat has been filed with the Wright COUntv Recorder or Registrar of
Titles' office.
4' PHASED DEVELOPMENT. [Not applicable]
5- PFXEL|K0|ydARY PLAT -STATUS- [Not applicable]
6' CHANGES IN OFFICIAL CONTROLS. For five (5) years from the date of this Contract, no
amendments to the City's Comprehensive Plan or official controls shall apply toO[affect the use,
development density, |[t Size. |[t |8yOUt or dedications of the approved plat UO|e8s [8qUi[8d by state or
federal law O[agreed to in writing by the City and the Developer. Thereafter, OOtN/ithSt8OdiDQ anything in
this Contract tOthe contrary, tOthe full extent permitted by state |@VV. the City may require compliance with
any 8[DeOdrDeOtS to the City'S Comprehensive P|8D' official CoOtPD|S. platting or dedication requirements
enacted after the date ofthis Contract.
7- DEVELOPMENT PLANS. The plat shall be developed in accordance with the following
plans. The plans shall not be attached to this Contract. The D|@nS may be prepared, subject tOthe City
Engineer's app[OVGL after entering the COOtract, but before COOOOO8Oce0eRt Ofany work iO the plat. The
City Engineer may approve [DiO0[ 8DleOdDlentS to P|8DS without City COUDCi| @pp[VV8|. If the plans V8[y
from the written terms Ofthis Contract, the written terms shall control. The plans are:
Plan /\-Plat
8. IMPROVEMENTS. The Developer shall install and pay for the following:
A. Setting OfIron Monuments
B. Surveying and Staking
The iOlp[OV8DleOtS ShG|| be installed in accordance with the City subdivision OFdiO8DQe and any
other OK]iO8DCeS including Chapter 0 of the City Code CODQe[Oing enJSiOO and sediment CODtnD|. The
Developer shall submit p|gDS and specifications which have been prepared by 8 competent Minnesota
registered pnJfe8siUD@| engineer to the City for approval by the City Engineer. The Developer shall iDStFUCt
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Otsego Industrial Park611 Addition
its aOgiD8e[ to provide adequate field inspection penSODDd to GssU[8 GO 8CCeDtGb|e level Of quality control
to the extent that the Developer's engineer will be able to certify that the COOst0CtiOD work meets the
GppFOV8d City standards as 8 condition Of City acceptance. In addition, the City may, at the Citv'8
diSCF8ti0D and at the Developer's expense, have one or more City inspectors and 8 Soil engineer inspect
the VVO[k OD a fU|| or part-time basis. The EJ8Ve|Opg[. its COOt[8CtOnS and GUbcODt[G[tOrS. shall fO||OVV all
iDSt[UCtiOOS received from the City'S inspectors. The Developer's engineer shall provide for on -site project
Dl8n@QHDleOt. The Developer's engineer is responsible for design changes and CUOt[8(t 8dDliDiGt[3tiOO
between the Developer and the [>eV8|0pe['S CODtng{t0[ The Developer D[its engineer shall schedule G
pnB-CODGt[U(tiOD meeting at G DlUtUG||y agreeable time at the City with all parties C0OCe[Oed, including the
City St8ff, to neVi8VV the pnOgrBDl for the CDDSt[UCtiVD VVO[k. Within thirty (30) days after the CnDlp|etiOD of
the iDlpnJVe[DeOtG, which shall be OD VF before . 20__. and before the G8CU[ity is released, the
Developer shall supply the City with 8 complete set Of reproducible "8S constructed" p|8DG and an
e|eCtn3OiC file Of the "8S constructed" plans in an AUtOC|AO DWG file or a OXF file, all prepared in
accordance with City standards.
In 8CCOnd8DCB with Minnesota Statutes 505.021. the final placement Of inJO DlOOUrDeOtS for all lot
corners must becompleted before the applicable security iSreleased. The Developer's surveyor shall also
submit @vv[itteO notice tOthe City certifying that the DlODUDleOtS have been iO8t8||8d fOl|UVViOg installation.
S' CONTRACTORS/SUBCONTRACTORS. City Council O0enobenS. City employees, and
City P/8DDiOg CODlnOiGSioD OleOObe[S, and CO[pO[@tiODS. partnerships, and other entities in which such
individuals have greater than @ 25% VVVD8nGhip interest or in which they are an Officer OF diFBCtOF may not
act as contractors or subcontractors for the public improvements identified in Paragraph 8 above.
10' PERMITS. The Developer shall obtain or nBqVina its contractors and subcontractors to
obtain all necessary pe[DlhS. which may include:
A. MPCA NPDES Permit for Construction Activity
B. MPCA for Hazardous Material Removal and Disposal
C. DNF{for Dewatehng
D. City of Otsego for Building Permits, Retaining Walls, Irrigation
Otsego Industrial Park 6yAddition
11. DEWATERING. [Not applicable]
12. TIME OF PERFORMANCE. The Developer shall install all required public improvements
by October 31, 2021..
13. STREETS. [Not applicable.]
14. LICENSE. The Developer hereby grants the City, its agents, employees, officers and
contractors a license to enter the plat to perform all work and inspections deemed appropriate by the City in
conjunction with plat development.
15. EROSION CONTROL. [Not applicable]
16. GRADING. [Not applicable]
17. CLEAN UP. The Developer shall clean dirt and debris from streets that has resulted from
construction work by the Developer, subcontractors, their agents or assigns. Prior to any construction in
the plat, the Developer shall identify in writing a responsible party and schedule for erosion control, street
cleaning, and street sweeping.
18. OWNERSHIP OF IMPROVEMENTS. Upon completion of the work and construction
required by this Contract and final acceptance by the City, the improvements lying within public easements
shall become City property without further notice or action.
19. CONSTRUCTION ACCESS. [Not applicable.]
20. STREET LIGHT OPERATION COSTS. [Not applicable.]
21. STORM SEWER. A stormwater impact fee in the amount of $54,896.40 shall be paid to the
City under a separate Site Improvement Performance Agreement between the City and GCC Dacotah,
Inc., which is calculated as follows:
15.3 Net Acres X $3,588.00 = $54,896.40
22. WETLAND REPLACEMENT OR MITIGATION. Before the City signs the final plat, the
Developer shall post a $ , security for wetland mitigation. This security may be in the form of a
letter of credit separate from the primary development security or in the form of a non -interest bearing cash
Otsego Industrial Park 61h Addition
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escrow with the City. If the mitigation area is found to be unsuccessful after the mandatory five-year
warranty period, the City may elect to keep the security to be used for this mitigation project or for wetland
mitigation/restoration elsewhere within the City. In addition, the City may draw down the security at any
time during the warranty period if the Developer fails to take corrective measures as directed by the City to
perform the work recommended. Security for wetland obligations may be released when the City
receives proof that Developer has ownership of the required wetland credits and has otherwise complied
with all requirements with respect to wetlands.
23. SPECIAL PROVISIONS. The following special provisions shall apply to plat development:
A. Implementation of the conditions listed in the Findings of Fact approved by the City Council on
September 14, 2020.
B. Right -of Way dedication and access to CSAH 37 shall be subject to review by the City Engineer
and approval of Wright County.
C. Lot 1, Block 1, shall be accessed from Jansen Avenue subject to approval of the City Engineer.
D. The Developer shall provide a minimum of fifty (50) feet of right-of-way for the north one-half of
CSAH 37.
E. Direct private driveway access to CSAH 37 for a future industrial use is subject to review and
approval of Wright County.
G. Prior to City Council approval of the final plat, the Developer shall furnish a boundary survey of
the proposed property to be platted with all property corner monumentation in place and marked
with lath and a flag. Any encroachments on or adjacent to the property shall be noted on the
survey. The Developer's land surveyor certifies that all irons have been set following site
grading and utility and street construction. In addition, the certificate of survey must also include
a certification that all irons for a specific lot have either been found or set prior to the issuance of
a building permit for that lot.
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H. The Developer shall pay 8cash fee for the preparation Ofrecord construction drawings and City
base map updating. This fee iS$25O.00per lot for 8total charge 0f$5OO.00.
|. The [)eVe|0p8[ is required to submit the final plat in e|e{tn]DiC format. The e|eCtn3DiC fV[Dl8t
Sh8|| be either /\Ut0C/\[).[}VVG file or 8 D)(F file. All CnDgt[UCtiOD PeCOR] d[8VViDg8 (e.g..
Q[8diDg. Uti|itieG, St[8et8) Gh8|| be in e|8Ct[OOic fO[Dl8t in 8CCOFd8OCe with standard City
specifications.
24. CONSTRUCTION ADMINISTRATION AND FEES FOR CITY SERVICES. The Developer
shall pay for construction ObSen/8tOD performed by the City'S in-house engineering staff or ConSUUUOg
eDgiOHB[ Construction observation shall include part O[full time inspection [f proposed public utilities and
will be billed OD hourly rates estimated to be five (5) percent of the estimated C0OStnJCtiOn COSt and the City
shall provide the [}eV8lOpeF with O0OOth|y StGt8O08Ot8 and back-up dOcUOUeOt8tiOD Of the foregoing
construction observation expenses.
The 8SC[OVV and fee 8CCOUOt Sh8|| also include estimated fees for Legal expenses 8CtU@||y
incurred (with any excess funds, if any, returned to Developer as indicated in this . City
Administrative Fee (a flat fee due upon execution of this Agreement), Trunk Water and Sewer Access Fees
/8 flat fee due UpOO execution of this AonSeOlenh. Transportation |OfG35t[UCtUFR Costs (@ flat fee due upon
execution Of this AD[8enleO[). Park and Trail Dedication Fees (g flat fee due UpnD execution Of this
Agreement), Street Light Maintenance and Operation Fee /8 flat fee due UpOD execution of this AgF88DleDt\
and shall be@Sstated bVthe Financial Summary.
This eSC[VVV @DlOUDt Sh8|| be submitted to the City prior to the City executing this Agreement.
All administrative and legal fees related to D|8D review, drafting of this Agreement and any other necessary
items Sh8U be paid to the City prior to e%8CUtiOO of this Agreement. Any @DOOUDtS for legal and engineering
not utilized from this escrow fund Gh8|| be returned to the Developer when all iDlprOVeO0eDtG have been
completed, all financial obligations tOthe City satisfied, and the nRqUiF8d "Gs constructed" p|GDa have been
received by the City.
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Otsego Industrial Park 6eAddition
All other amounts listed as flat fees are non-refundable and available immediately for City use
when posted.
25. SECURITY. To ensure compliance with the terms of this Contract, and construction of all
public improvements, and satisfaction of all other obligations, the Developer shall furnish the City with a
cash escrow or Irrevocable Standby Letter of Credit with automatic renewal provisions in the amount as
required under this Contract. The issuer and form of the security (other than cash escrow) shall be subject
to City approval in its reasonable discretion. The security shall be issued by a banking institution in good
standing as determined by the City and approved by the City Administrator. The City shall have the ability to
draw on the security at a bank or branch bank located within fifty (50) miles of the City Hall. The security
shall contain an automatic renewal provision and shall not expire until all the Development is complete and
fully and finally accepted by the City, and all terms of this Contract are satisfied.
The City may draw down the security, on five (5) business days written notice to the Developer, for
any violation of the terms of this Contract or without notice if the security is allowed to lapse prior to the end
of the required term. If the required public improvements are not completed at least thirty (30) days prior to
the expiration of the security, the City may also draw it down without notice. If the security is drawn down,
the proceeds shall be used to cure the default.
Upon receipt of proof satisfactory to the City that work has been completed and financial obligations
to the City have been satisfied, with City approval not to be unreasonably withheld or delayed, the security
shall be reduced from time to time in proportion to the work completed, but not below ten (10) percent which
is the amount of the warranty security. For purposes of this Section, the warranty period shall be a twelve
(12) month period after the applicable work has been completed.
This security amount shall be submitted to the City prior to execution of the Contract. All
administrative and legal fees related to plan review, drafting of this Contract and any other necessary items
shall be paid to the City prior to execution of the Contract Upon completion of the work contemplated
hereunder and expiration of the warranty period, the remaining security shall be promptly released to
Developer.
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26. SUMMARY OF SECURITY REQUIREMENTS. The amount of the security described
above is calculated as follows:
COSTS:
A. Lot Corners/Iron Monuments $xxxx.00
B. Survey and Staking $xxxx.00
OTHER COSTS SUB -TOTAL $xxxx.00
TOTAL SECURITY: $xxxx.00
A. City Legal Expenses (Est. 1.0% of $_) $xxxx.00
B. City Construction Observation (Est. 8.0% of $xxxx.00
C. Outstanding Escrow Balance for Application Review $2,527.50
ESCROW TOTAL: $xxxx.00
This breakdown is not a restriction on the use of the security.
27. SUMMARY OF CASH REQUIREMENTS. The following is a summary of the cash
requirements under this Contract which must be furnished to the City prior to the City Council signing the
final plat:
A. City Administrative (Est. 1.0% of $xxxxxx.00
B. Developer's Design (3.0%) $xxxxxx.00
C. Developer's Record Drawings $xxxxxx.00
D. City Base Map Updating $500.00
TOTAL CASH REQUIREMENTS $XXXXX.00
28. WARRANTY. The Developer warrants all improvements required to be constructed by it
pursuant to this Contract against poor material and faulty workmanship.
29. RESPONSIBILITY FOR COSTS.
A. Except as otherwise specified herein, the Developer shall pay all costs incurred by it or the City
in conjunction with the development of the plat, including but not limited to Soil and Water
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Conservation District charges, legal, planning, engineering and construction observation
inspection expenses incurred in connection with approval and acceptance of the plat, the
preparation of this Contract, review of construction plans and documents, and all costs and
expenses incurred by the City in monitoring and inspecting development of the plat.
B. The Developer shall hold the City and its officers, employees, and agents harmless from claims
made by itself and third parties for damages sustained or costs incurred resulting from plat
approval and development. The Developer shall indemnify the City and its officers, employees,
and agents for all costs, damages, or expenses which the City may pay or incur in
consequence of such claims, including attorneys' fees.
C. The Developer shall reimburse the City for costs incurred in the enforcement of this Contract,
including engineering and attorneys' fees.
E. The Developer shall pay in full all bills submitted to it by the City for obligations incurred under
this Contract within thirty (30) days after receipt. If the bills are not paid on time, the City may
halt plat development and construction until the bills are paid in full. Bills not paid within thirty
(30) days shall accrue interest at the rate of eighteen percent (18%) per year. Additionally, the
Developer shall pay in full all bills submitted to it by the City prior to any reductions in the
security for the development.
F. In addition to the charges and special assessments referred to herein, other charges and
special assessments may be imposed such as but not limited to building permit fees.
30. DEVELOPER'S DEFAULT. In the event of default by the Developer as to any of the work
to be performed by it hereunder, the City may, at its option, perform the work and the Developer shall
promptly reimburse the City for any expense incurred by the City, provided the Developer, except in an
emergency as determined by the City, is first given notice of the work in default, not less than forty-eight
(48) hours in advance. This Contract is a license for the City to act, and it shall not be necessary for the
City to seek a Court order for permission to enter the land. When the City does any such work, the City
may, in addition to its other remedies, assess the cost in whole or in part.
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31. MISCELLANEOUS.
A. The Developer represents to the City that the plat CODlD|ieG with all city, COUntv. state, and
federal |@VVG and [egu|@tiOOS, including but not limited to: subdivision OPdiO8DCeS. zoning
0PdiOaDCeS. and 8DVi[OODleOb3| [egU|8tiOOS. If the City determines that the plat does not
comply, the City may, at its 0ptiOO. refuse to allow construction O[development work in the plat
until the Developer does comply. Upon the City'Sdemand, the Developer shall cease work until
there iGcompliance.
B. Third parties shall have OOrecourse against the City under this Contract.
C. Breach of the te[DlS of this [|OOt[8Ct by the Developer Sh8|| be gnOUOd8 for denial Of building
permits, including lots sold t0third parties.
D. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this Contract is for
any reason held invalid, such decision shall not affect the validity of the remaining portion of this
Contract.
E. The action or inaction of the City shall not constitute a waiver or amendment to the provisions of
this Contract. TO be binding, @[DeDdDleOtS or waivers Sh8|| be in VV[itiOg. signed by the parties
and approved by written FeGO|UtiOO of the City COUDCi|. The City'S failure to pnJDl[t|V take legal
8CtiOO to enforce this CODt[8Ct Sh8|| not be 8waiver V[release.
F. This Contract shall [UO with the land and may be P2COPded against the title tOthe property. In
the event this Contract is F8C0Pded. UpOD request by Developer, the City COV8OGDtS to provide a
FecVK]8b|8 Certificate of Completion within G PB8SOD8b|e period of time foUOVVDg the [8qUeSt.
UpDO the completion of the vVO[k and responsibilities required herein, payment of all costs and
fees required and cO0p|i@DCe with all terms of the Contract. A release of this Contract may be
provided iOthe same manner and subject tUthe same conditions 8S@Certificate OfCompletion
provided there are no outstanding or ongoing obligations of [)eVe|Ope[ under the te[DlS of this
Contract. The [>eVe|Ope[ cOVeO8Dt8 with the City, its SUCCeGSU[S and 8SSigDS, that the
[}BVe|Ope[ is well seized in #3e title Of the property being final platted gDd/O[ has obtained
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Otsego Industrial Park61h Addition
consents to this Contract, in the form attached hereto, from all parties who have an interest in
the property; that there are no unrecorded interests in the property being final platted; and that
the Developer will indemnify and hold the City harmless for any breach of the foregoing
covenants.
G. Insurance. Prior to execution of the final plat, Developer and its general contractor shall
furnish to the City a certificate of insurance showing proof of the required insurance required
under this Paragraph. Developer and its general contractor shall take out and maintain or
cause to be taken out and maintained until six (6) months after the City has finally accepted
the public improvements, such insurance as shall protect Developer and its general contractor
and the City for work covered by the Contract including workers' compensation claims and
property damage, bodily and personal injury which may arise from operations under this
Contract, whether such operations are by Developer and its general contractor or anyone
directly or indirectly employed by either of them. The minimum amounts of insurance shall be
as follows:
Commercial General Liability (or in combination with an umbrella policy)
$2,000,000 Each Occurrence
$2,000,000 Products/Completed Operations Aggregate
$2,000,000 Annual Aggregate
The following coverages shall be included:
Premises and Operations Bodily Injury and Property Damage
Personal and Advertising Injury
Blanket Contractual Liability
Products and Completed Operations Liability
Automobile Liability
$2,000,000 Combined Single Limit — Bodily Injury & Property Damage
Including Owned, Hired & Non -Owned Automobiles
Workers Compensation
Workers' Compensation insurance in accordance with the statutory requirements of the
State of Minnesota, including Employer's Liability with minimum limits are as follows:
• $500, 000 — Bodily Injury by Disease per employee
• $500, 000 — Bodily Injury by Disease aggregate
• $500, 000 —Bodily Injury by Accident
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The Developer's and general contractor's insurance must be"Primary and NOO-CVDtribUtOm".
All iOsU[8DCe policies (or riders) required by this Contract shall be /i\t8k8O out by and
maintained with responsible iDSU[@OCe C000p8Oi8S organized under the |8VV8 of one of the
states of the United GtGt8G and qualified to do bUGiOe88 in the State of K8iOOeS0tg. (ii) Shg||
name the City, its e[Op|OV8eS and agents as additional iOSUFeUG /CGL and UDlb[e||8 OD|y\ by
8OdOFSeOOeOt which Sh8|| be filed with the City and /iii\ Gh@|| identify the D8Dle of the plat. A
copV of the endorsement must be submitted with the certificate of insurance.
Developer's and g8De[8| COOt[@{tVr'G policies and Certificate of Insurance ghG|| contain 8
p[OViSiOO that COVe[8ge afforded under the policies Sh8|| not be C8OCe||ed without at least
thirty (30) days' @dVaDC8d written notice tOthe City. or ten /10\ days' notice for non-payment
of premium.
An Umbrella OrExcess Liability insurance policy may be used tosupplement Developer's
or geO8[8| cOnt[G[tO['S policy limits OO 8 fO||OVv-fO[OO basis to satisfy the fU|| policy limits
required by this Contract.
H. Indemnification. TOthe fullest extent permitted by |8VV. Developer agrees to defend, indemnify
and hold harmless the [|it«. and US employees, Offi[j8k6. and agents from and against all
C|8iDlS. 3CtiVDG. damages, |OSGHS and eXpBD8eG. including [e@SOD8b|e attorney fees, @hGiDg
out of Developer's negligence or its performance or failure to perform its obligations under this
{|VDtng(t. Developer's indemnification obligation shall apply to Developer's general
CVRt[8[to[. SUbCODt[3CtOr/G\. or 8DyOOe directly or indirectly employed or hired by [}eVelOpe[.
or anyone for whose 8CtS [)eVe|Dpe[ may be liable. [}BVe|opB[ agrees this indemnity
obligation shall survive the completion Ortermination Ofthis Contract.
|. Each right, power or remedy herein conferred upon the City is cUDlU|2tiVe and in addition to
every other right, power or remedy, express UF implied, now Orhereafter arising, available to
City. at law O[iD equity, or under any other agreement, and each and every right` power and
remedy herein set forth or Oth8Dmi8R GO existing may be 8Xen:�aed from time to time as often
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Otsego Industrial Park 6mAddition
and in such order as may be deemed expedient by the City and shall not be a waiver of the
right to exercise at any time thereafter any other right, power or remedy.
32. NOTICES. Required notices to the Developer shall be in writing, and shall be either hand
delivered to the Developer, its employees or agents, or mailed to the Developer by certified mail at the
following address: Cummings Property Management II, LLC Notices to the City
shall be in writing and shall be either hand delivered to the City Administrator, or mailed to the City by
certified mail in care of the City Administrator at the following address: Otsego City Hall, 13400 90th
Street NE, Otsego, Minnesota 55330.
[The remainder of this page has been intentionally left blank.
Signature pages follow.]
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Otsego Industrial Park 61h Addition
STATE OFK8|NNEGOTA
COUNTY OF WRIGHT
\Ge.
\
'
CITY OF OTSEGO
MEN
Jessica L. Stockamp, Mayor
Bethany Benting, Deputy City Clerk
The foregoing instrument was acknowledged before methis day of
2020. by Jessica L. GtOCk8Olp and by Bethany BeDtiDg. the Mayor and Deputy City Clerk of the City of
{]tSegO. R MiDO8GVt8 DlUOicip8| CO[p0[@tiOO. OD behalf Ofthe corporation and pursuant to the authority
granted byits City Council.
NOTARY PUBLIC
14
Otsego Industrial Park 6^Addition
DEVELOPER:
CUMMINGS PROPERTY MANAGEMENT, INC.
AAI V
STATE OF MINNESOTA
)ss.
COUNTY OF WRIGHT
Its
The foregoing instrument was acknowledged before me this
2020, by the
a Minnesota corporation, on behalf of said corporation.
NOTARY PUBLIC
DRAFTED BY:
CAMPBELL, KNUTSON
Professional Association
Grand Oak Office Center 1
860 Blue Gentian Road, Suite 290
Eagan, MN 55121
Telephone: 651-452-5000
DSK/smt
day of
of
15
Otsego Industrial Park 61h Addition
210527v5
16
210527v5
Otsego Industrial Park 611 Addition
FEE OWNER CONSENT
TO
DEVELOPMENT CONTRACT
Steven O. Kolles and Diane R. Kolles as Trustees of the Steven O. Kolles Revocable Trust
under Agreement dated September 9, 2004 and the Diane R. Kolles Revocable Trust under
Agreement dated September 9, 2004, fee owners of all or part of the subject property, the development
of which is governed by the foregoing Development Contract, affirm and consent to the provisions
thereof and agree to be bound by the provisions as the same may apply to that portion of the subject
property owned by them.
Dated this day of )2020.
STEVEN O. KOLLES REVOCABLE TRUST
UNDER AGREEMENT
DATED SEPTEMBER 9, 2004
la
la
STATE OF )
)ss.
COUNTY OF )
Steven O. Kolles, Trustee
Diane R. Kolles, Trustee
The foregoing instrument was acknowledged before me this day of 12020,
by Steven O. Kolles as Trustee of the Steven O. Kolles Revocable Trust under Agreement dated
September 9, 2004, on behalf of the Trust.
NOTARY PUBLIC
STATE OF )
)ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of 12020,
by Diane R. Kolles as Trustee of the Steven O. Kolles Revocable Trust under Agreement dated
September 9, 2004, on behalf of the Trust.
NOTARY PUBLIC
17
210527v5
Otsego Industrial Park 611 Addition
DIANE R. KOLLES REVOCABLE TRUST
UNDER AGREEMENT
DATED SEPTEMBER 9, 2004
M
0
STATE OF
)ss.
COUNTY OF
Diane R. Kolles, Trustee
Steven O. Kolles, Trustee
The foregoing instrument was acknowledged before me this day of '2020,
by Diane R. Kolles as Trustee of the Diane R. Kolles Revocable Trust under Agreement dated
September 9, 2004, on behalf of the Trust.
NOTARY PUBLIC
STATE OF
)ss.
COUNTY OF
The foregoing instrument was acknowledged before me this day of 12020,
by Steven O. Kolles as Trustee of the Diane R. Kolles Revocable Trust under Agreement dated
September 9, 2004, on behalf of the Trust.
NOTARY PUBLIC
DRAFTED BY:
CAMPBELL, KNUTSON
Professional Association
Grand Oak Office Center 1
860 Blue Gentian Road, Suite 290
Eagan, MIN 55121
Telephone: 651-452-5000
DSK/smt
18
Otsego Industrial Park 61h Addition
210527v5
MORTGAGE HOLDER CONSENT
TO
DEVELOPMENT CONTRACT
AMERICANA COMMUNITY BANK, a Minnesota banking corporation, which holds:
A Mortgage, Security Agreement, FkdUFe Financing Statement and /\SGiQDDl8Ot of Rents and LB8SeG
executed by CUDlO0iDgS Property M8DGg8DleOt ||, LLC. @ W1iODeS0ta limited liability c0O0p8Oy. dated
October 12.2OO5,filed November 1O.2OO5aSDocument Number /\980182iDthe amount 0f$25O.00O.00
in favor of Americana CODlDlUDih/ Bank and Modification filed August 1. 2007 as [)0CUDleOt NUrDb8[
A1O81553;
K8odo8ge, Security AoFeHDl8Dt, Fixture FiO@O[jDg @tGteDle[d and ASSigD[UB[d Of Rents and Leases
executed by CUnODliOgG Mobility Conversion and Supply, Inc., 8 Minnesota cOq]0[@t0O. dated JUD8 12.
2010. filed jU|y 10. 2019 as [}OCVOOeOt NU[Db8[A14O0327 in the 8DlOUOt 0f$1.475.00O.00 in f8VO[ Of
Americana Community Bank, corrected byDocument Number A14OS177.filed October 25.2O1Sand also
CO[Fe[tiY8 Mortgage OOCUDleDt Number A1420321. filed March 8. 2020 (adds CUD7DliOgS Property
MGD3geOl8Dt ||. LLC 88 grantor and cOVenS additional property);
AND
AG8iA000eDt Of Rents by and between CUD1OliOgG Property M3OGgeD0BOt ||. LLC. 8 K8iDDeSDt@ limited
liability C0rDp8Oy. and Americana CUO0OlUOity Bank, dated June 18. 2019. filed July 10. 2019 as OOCUDleOt
NU0be[A140032O and Corrective Assignment of Rents filed {}(tOb8[ 25. 2019 as [)OCUOOeOt Number
A14O0178and Document Number A142O322.filed March 0.2O2O;
WED
Mortgage executed by Cummings Mobility Conversion and Supply, Inc., 8 K8iDOeGVt8 corporation, dated
June 18' 2019. filed July 16. 2019 88 [}OCU0e[d NUDlbe[A14O032S in the GDD0UDt Of$1.525.00ODO. in
f8VO[ of Americana CoD101UDitv Bank and Corrective Mortgage filed October 25, 2010 as OOCUOle[t
Number A1409179 and DOCU0eDt NUDlbe[A142O319, filed W18PCh 8. 2020 (add Cummings PPDpGdv
Management ||,LLC8Sg[@Db]h;
Assignment Of Rents by and between CUDl[DiDgS Mobility COOVenSiOO and Supply, Inc., 8 Minnesota
COqpO[8tiOn. and Americana CU00UOitv Bank,i dated June 18. 2010. filed July 10, 2019 US DOCU0eDt
NUDObe[A14OOD33U and Corrective Assignment Of Rents filed October 25, 2018 as C>OCUDleDt Number
A14O918Oand Document Number A142O32Dfiled March 8.2D2O;
on the SUhieCt pnDp8rtv, the deVe|OpnOe[d of which is governed by the foregoing Development
8g[8eS that the [)ev8|OpO0eDt Contract shall FeO08iO in full force and effect 8VeO if it fOFe[JOSeS OD its
Dated this day of )2020.
|9
Otsego Industrial Park6t" Addition
STATE OF MINNESOTA
)ss.
COUNTY OF
AMERICANA COMMUNITY BANK
M
Its
[print name]
[title]
The foregoing instrument was acknowledged before me this day
2020, by , the
Community Bank, a Minnesota banking corporation, on behalf of said corporation.
NOTARY PUBLIC
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
Grand Oak Office Center 1
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
651-452-5000
DSK/smt
of
of Americana
20
Otsego Industrial Park 611 Addition
210527v5
MORTGAGE HOLDER CONSENT
TO
DEVELOPMENT CONTRACT
LAKE COMMUNITY BANK, a Minnesota banking corporation, which holds:
A mortgage executed by Steven O. Kolles and Diane R. Kolles as Trustees of Diane R. Kolles Revocable
Trust under Agreement dated September 9, 2004, dated December 21, 2007, filed January 18, 2008 as
Document Number Al 077317 in the amount of $500,000.00, in favor of Lake Community Bank, which was
modified by Document Number Al 336253, filed February 6, 2017 and Corrective Mortgage as both Trusts
grantor filed March 8, 2017 as Document Number Al 338332;
on the subject property, the development of which is governed by the foregoing Development Contract,
agrees that the Development Contract shall remain in full force and effect even if it forecloses on its
mortgage.
Dated this day of
STATE OF MINNESOTA
)ss.
COUNTY OF
2020.
LAKE COMMUNITY BANK
am
Its
The foregoing instrument was acknowledged before me this
2020, by , the
Bank, a Minnesota banking corporation, on behalf of said corporation.
NOTARY PUBLIC
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
Grand Oak Office Center 1
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
651-452-5000
DSK/smt
[print name]
[title]
day of
of Lake Community
21
Otsego Industrial Park 6111 Addition
210527v5
MORTGAGE HOLDER CONSENT
TO
DEVELOPMENT CONTRACT
FINANCIAL SECURITY BANK, a Minnesota banking corporation, which holds a mortgage
executed by Steven O. Kolles and Diane R. Kolles as Trustees of the Steven O. Kolles Revocable Trust
and the Diane R. Kolles Revocable Trust, dated August 9, 2018, filed September 10, 2018 as Document
Number Al 379220 in favor of Financial Security Bank in the amount of $30,000.00 on the subject property,
the development of which is governed by the foregoing Development Contract, agrees that the
Development Contract shall remain in full force and effect even if it forecloses on its mortgage.
Dated this _ day of )2020.
STATE OF MINNESOTA
)ss.
COUNTY OF
FINANCIAL SECURITY BANK
0
Its
[print name]
[title]
The foregoing instrument was acknowledged before me this day of
2020, by , the
Security Bank, a Minnesota banking corporation, on behalf of said corporation.
NOTARY PUBLIC
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
Grand Oak Office Center 1
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
651-452-5000
DSK/smt
of Financial
22
Otsego Industrial Park 61h Addition
210527v5
EXHIBIT "A"
TO
DEVELOPMENT CONTRACT
Legal Description of Property Being Final Platted as
OTSEGO INDUSTRIAL PARK 6T" ADDITION
Outlot A and Outlot B and vacated Jansen Avenue N.E., as dedicated in the plat of OTSEGO
INDUSTRIAL PARK FIFTH ADDITION, according to the recorded plat thereof, Wright County, Minnesota.
AND
The West Half of the Northeast Quarter lying Southerly of the right-of-way of the Burlington Northern
Railroad, and the Southeast Quarter of the Northeast Quarter and that part of the Northeast Quarter and
that part of the Northeast Quarter of the Northeast Quarter lying Southerly of the right-of-way of the
Burlington Northern Railroad except the East 1142.12 feet of said Northeast Quarter lying Southerly of the
right-of-way of the Burlington Northern Railroad and except that part platted as OTSEGO INDUSTRIAL
PARK 5T" ADDITION. All in Section 34, Township 121, Range 24, Wright County, Minnesota.
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[BANK LETTERHEAD]
IRREVOCABLE LETTER OF CREDIT
TO: City of Otsego
City Hall
13400 90th Street NE
Otsego, Minnesota 55330
Dear Sir or Madam:
No. _
Date:
We hereby issue, for the account of (Name of Developer) and in your favor, our Irrevocable
Letter of Credit in the amount of $ available to you by your draft drawn on sight on the
undersigned bank.
The draft must:
a) Bear the clause, "Drawn under Letter of Credit No. dated 2 , of
(Name of Bank) ";
b) Be signed by the City Administrator or Finance Director of the City of Otsego.
c) Be presented for payment at (Address of Bank) on or before 4:00 p.m. on November 30,
2
This Letter of Credit shall automatically renew for successive one-year terms unless, at least forty-five (45)
days prior to the next annual renewal date (which shall be November 30 of each year), the Bank delivers written
notice to the Otsego Finance Director that it intends to modify the terms of, or cancel, this Letter of Credit. Written
notice is effective if sent by certified mail, postage prepaid, and deposited in the U.S. Mail, at least forty-five (45)
days prior to the next annual renewal date addressed as follows: Otsego Finance Director, Otsego City Hall,
13400 90th Street NE, Otsego, MN 55330, and is actually received by the Finance Director at least thirty (30)
days prior to the renewal date.
This Letter of Credit sets forth in full our understanding which shall not in any way be modified, amended,
amplified, or limited by reference to any document, instrument, or agreement, whether or not referred to herein.
This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be
made under this Letter of Credit.
This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice
for Documentary Credits, International Chamber of Commerce Publication No. 600.
We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly
honored upon presentation.
[NAME OF BANK]
M.
Its
210527v5