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Item 4.1 Parkview Retail 2nd Addition9 Ot TeFgo MINNESOTA DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 22 March 2021 PRESENTER(s) REVIEWED BY: ITEM #: City Planner Licht City Administrator/Finance Director Flaherty City Engineer Wagner City Attorney Kendall 4.1— Parkview Retail 2"d Add 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 recommends vacation of existing drainage and utility easements, approval of a final plat for Parkview Retail 2°d Addition and approval of a development contract. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes To be held by City Council 22 March 2021 BACKGROUND/JUSTIFICATION: Rice Companies, Inc. has submitted plans on behalf of owners Parkview Partners, LLC for final plat approval of Parkview Retail 2"d Addition. The proposed final plat consists of one lot and one outlot at the southwest corner of Parrish Avenue (CSAH 42) and 88th Street. The preliminary plat and PUD-CUP for Parkview Retail was approved by the City Council on 22 July 2019. Zoning approvals for proposed Lot 1, Block 1, Parkview Retail 2"d Addition will be considered as a separate application. Comprehensive Plan. The 2012 Comprehensive Plan guides Parkview Retail for commercial land use as part of the City's primary retail, service, and office development area at TH 101 and CSAH 39. The proposed final plat will provide for a lot for development of business in Otsego consistent with the goals of the Comprehensive Plan Zoning. The subject site is zoned B-3 General Business District. Lot Requirements. Minimum lot area, lot width, and setback requirements for the B-3 District established by Section 11-77-7 of the Zoning Ordinance. Lots must have a minimum area of one acre and minimum width of 200 feet. The proposed lot is 1.18 acres in area and is 200 feet wide measured at the front setback line along Parkview Avenue. The proposed lot complies with the minimum area and width requirements of the B-3 District. A 30 foot setback is required from public rights -of -way abutting proposed Lot 1, Block 1, Parkview Retail 2"d Addition and a 10 foot setback is required from the south lot line of the proposed lot. The proposed lot has sufficient building envelope within required setbacks to allow for development that is in compliance with the Zoning Ordinance. Outlot. The proposed final plat includes Outlot A to be retained by the developer for future phases of development. Streets. The subject site abuts Parkview Avenue and 88th Street. Construction of the streets abutting the subject site were completed as a public improvement project as part of the Parkview Retail plat. Construction of sidewalks along Parkview Avenue and 88th Street, as well as a trail along Parrish Avenue (CSAH 42) will be required with development of proposed Lot 1, Block 1, Parkview Retail 2"d Addition. Grading Plan. A grading plan and all stormwater management and erosion control issues for Lot 1, Block 1 will be reviewed as part of a development application for Lot 1, Block 1, Parkview Retail 2"d Addition. All grading, drainage, and erosion control issues are subject to review and approval of the City Engineer. Utilities. Utilities were constructed with the public improvements to provide sewer and water services to proposed Lot 1, Block 1, Parkview Retail. Connection to the existing utility lines will be reviewed at such time as application for development of the the subject site is proposed, subject to review and approval of the City Engineer. The developer is required by Section 8-1-5 and Section 8-1-6 of the City Code to pay utility availability charges for Lot 1, Block 1, Parkview Retail 2°d Addition at the time of final plat approval. Easements. Drainage and utility easements dedicated over the subject site with Parkview Retail are required to be vacated. Section 10-8-12.A of the Subdivision Ordinance requires dedication of 10 foot wide drainage and utility easements at the perimeter of Lot 1, Block 1, Parkview Retail 2"d Addition. Temporary drainage and utility easements must be dedicated over Outlot A, including a five foot wide easement along the north line. All drainage and utility easements are subject to review and approval of the City Engineer. Park Dedication. The preliminary plat approval for Parkview Retail stipulates that park dedication requirements for the subdivision are to be satisfied as a cash fee in lieu of land paid at the time of final plat approval. The developer will be required to pay a cash fee in lieu of land of $7,000 per acre in accordance with Section 3-1-2 of the City Code. Development Contract. The proposed final plat does not include public improvements. The City Attorney has drafted a basic development contract as required by Section 10-10-4 of the Subdivision Ordinance. Section 10-5-3-B.8 of the Subdivision Ordinance requires recording of the final plat and development contract within 100 days of City Council approval. SUPPORTING DOCUMENTS ATTACHED: ■ Site location map ■ Engineering Review dated March 16, 2021 ■ Resolution 2021-25 vacating existing drainage and utility easements ■ Final plat ■ Findings of Fact and Decision ■ Resolution 2021-26 approving a development contract ■ Development Contract PnSSIRI F MTInN PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: I Motion to adopt Resolution 2021-25 vacating existing drainage and utility easements within Outlot B, Parkview Retail; approve the final plat of Parkview Retail 2"d Addition subject to the conditions stated in the Findings of Fact and Decision as presented; adopt Resolution 2021-26 approving a development contractI Rl1DGET INFORMATION FUNDING: BUDGETED: N/A N/A Site Location 101 !TN QS1KIFr__ 42 K . or A 1,1'8500224300 loll {{ �. ft Vol Overview Legend Roads CSAHCL ^— CTYCL MUNICL s PRIVATECL TWPCL Highways Interstate — State Hwy — US Hwy City/Township Limits �t �� Parcels Review No. 1 IHakanson IAAAnderson ENGINEERING REVIEW Parkview Retail 2"d Addition Final Plat for the City of Otsego by Hakanson Anderson Submitted to: Honorable Mayor and City Council cc: Adam Flaherty, City Administrator Audra Etzel, City Clerk Dan Licht, City Planner Dave Kendall, City Attorney Tom Bruce, Rice Companies, Inc Reviewed by: Ronald J. Wagner, P.E. Brent M. Larson, P.E. Date: March 16, 2021 Proposed Development: Parkview Retail 2nd Addition Development Location: Parcels 118341000020 Applicant: Tom Bruce, Rice Companies, Inc. Developer: Parkview Partners, LLC Owners of Record: Chris Rice, Parkview Partners, LLC 1019 Industrial Drive South Sault Rapids MN 56379 Purpose: Parkview Retail 2nd Addition consists of one lot and one outlot at the southwest corner of Parrish Avenue (CSAH 42) and 88th St. on approximately 3.7 acres in the City of Otsego, Wright County, Minnesota. The proposed development will be served with municipal water, sanitary sewer, storm sewer, and public streets typical of an urban setting. Jurisdictional Agencies: City of Otsego, Wright County, Minnesota Department of (but not limited to) Health, Minnesota Department of Natural Resources, Minnesota Pollution Control Agency, Wright Soil and Water Conservation District. Permits Required: NPDES, Minnesota Department of Health (water), (but not limited to) Minnesota Pollution Control Agency (sanitary sewer), and Wright County TABLE OF CONTENTS FINAL PLAT SUMMARY AND/OR RECOMMENDATION PAGE 2 V:\City Council Agendas\Council Packets\2021\03-22\4.1 Parkview Retail 2nd\Engineering Review.docx INFORMATION AVAILABLE Final Plat for Parkview Retail, dated May 20, 2020 88thth St and Parkview Avenue Improvement Project Plans, dated March 19, 2020 CSAH 39 Construction Plans, dated January 31, 2021 CSAH 42 As -built Plans, dated December 18, 2006 Additional Information Minnesota Rules, Chapter 4410 — EAW Requirement City of Otsego Engineering Manual City of Otsego Zoning and Subdivision Ordinances National Wetland Inventory Map PAGE 3 V:\City Council Agendas\Council Packets\2021\03-22\4.1 Parkview Retail 2nd\Engineering Review.docx FINAL PLAT 1. Plat is adjacent to CSAH 42 therefore Wright County Highway Department will need to review plat. 2. No easements for potential waterline and hydrant are shown and will need to be added upon application for development. 3. No easements for required storm water infiltration or rate control is shown. Drainage and Utility easements over all of Outlot A of Parkview Retail 2nd Addition shall be required to ensure access to required storm water ponding and storm water conveyance to storm water outlet at CSAH 42. SUMMARY AND/OR RECOMMENDATION We recommend approval contingent upon Outlot A being covered with a Drainage and Utility Easement. PAGE 4 V:\City Council Agendas\Council Packets\2021\03-22\4.1 Parkview Retail 2nd\Engineering Review.docx CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2021-25 VACATION OF EXISTING DRAINAGE AND UTILITY EASEMENTS WITHIN OUTLOT B, PARKVIEW RETAIL WHEREAS, drainage and utility easements were dedicated with the final plat of Parkview Retail; and, WHEREAS, Rice Companies, Inc. has applied for approval of a final plat of Outlot B, Parkview Retail to be known as Parkview Retail 2"d Addition; and, WHEREAS, the drainage and utility easements to be dedicated within the final plat of Parkview Retail 2nd Addition make unnecessary those drainage and utility easements dedicated within Outlot B, Parkview Retail; and, WHEREAS, Rice Companies has applied for vacation of the existing drainage and utility easements within Outlot B, Parkview Retail; and, WHEREAS, the City Council held a public hearing at their regular meeting on 22 March 2021 to consider the vacation, preceded by required published and mailed legal notice; and, WHEREAS, the City Council heard all parties interested therein and closed the public hearing; and, WHEREAS, the existing drainage and utility easements within Outlot B, Parkview Retail serve no useful public purpose upon approval of the final plat of Parkview Retail 2nd Addition; and, WHEREAS, the City Council having considered all information received related to the proposed vacation finds that vacating the existing drainage and utility easements within Outlot B, Parkview Retail would be in the public interest. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA THAT: 1. The existing drainage and utility easements located in the City of Otsego, Wright County, State of Minnesota within Outlot B, Parkview Retail are hereby vacated. 2. The City Council hereby determines that the vacation of said existing drainage and utility easements shall cause no damage to any abutting or nearby property owners and therefore no damages are awarded to any such property owners. 3. The vacation shall be effective upon approval and recording of a final plat for Parkview Retail 2nd Addition. 1 ADOPTED by the Otsego City Council this 22°d day of March, 2021. MOTION BY: SECONDED BY. IN FAVOR: OPPOSED: 2 CITY OF OTSEGO Jessica L. Stockamp, Mayor ATTEST: Audra Etzel, City Clerk J Y r 3 YY a Emil g n� i 9 mill S £€ t 5 tat Q �E O I , K!l6 AtR.p.Ri _ _ Q � T _ — r - mY 3noav i � •mal.alaWaruamraurunovaMY� � _ _ _ _ _ _ I I I `• 1 I I I s I ek - s LiJ--------------------R `— o gg� 8 i@ I I. a 162 Los w ya c w C U 154 T I I I I I Ll_______ar.�.,.rrwo..-A,.r,o7 S *��— jJ o IT 122as tt va- I R I �a 4xtl �) 3q CS I 9'lR1VbfA-t0Y001 m�OK YIIAM�drlGf0012W�N Ot CIe Fffo MINNESOTA APPLICANT: Rice Companies, Inc. on behalf of owners Parkview Partners, LLC APPLICATION: Request for a final plat approval of Parkview Retail 2"d Addition. CITY COUNCIL MEETING: 22 March 2021 26 Feb 21 FINDINGS 8c 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 property is Outlot B, 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 B-3, General Business District. D. The Request for Council action dated 22 March 2021 prepared by the City Planner, The Planning Company LLC, is incorporated herein. E. The Engineering Review dated March 16, 2021 prepared by the City Engineer, Hakanson Anderson, Inc., is incorporated herein. F. Final plat applications are processed in accordance with Section 10-5-3 of the Subdivision Ordinance. DECISION: Based on the foregoing information and applicable ordinances, the request is hereby APPROVED, subject to the following conditions: 1. All grading, drainage, and erosion control issues are to be subject to review and approval of the City Engineer. 2. All utility issues are subject to review and approval of the City Engineer. 3. The developer shall pay utility availability charges at the time of final plat approval. 4. Park dedication requirements shall be satisfied as a cash fee in lieu of land in accordance with Section 10-8-15 of the Subdivision Ordinance. 5. All drainage and utility easements shall be subject to review and approval of the City Engineer. 6. The developer shall enter into a development contract with the City as provided for by Section 10-10- 4 of the Subdivision Ordinance as drafted by the City Attorney and subject to approval of the City Council. 1 7. The final plat shall be recorded by 30 June 2021 as provided for by Section 10-5-3.13.8 of the Subdivision Ordinance. MOTION BY: SECOND BY: ALL IN FAVOR: THOSE OPPOSED: ADOPTED by the City Council of the City of Otsego this r. day of March, 2021. CITY OF OTSEGO By: Jessica L. Stockamp, Mayor Attest: Audra Etzel, City Clerk CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2021-26 APPROVING A DEVELOPMENT CONTRACT FOR PARKVIEW RETAIL 2ND ADDITION WHEREAS, Rice Companies, Inc. (the "developer) is proposing development of Parkview Retail 2"d Addition; and WHEREAS, a final plat for the development was approved by the City Council on 22 March 2021; 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 contract; 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 Rice Companies, Inc. is hereby approved in form subject to modification of fees, charges, and securities as approved by City staff. 2. The Mayor and City Clerk are hereby authorized to execute the Development Contract on behalf of the City of Otsego. 1 ADOPTED by the Otsego City Council this 22nd day of March, 2021. MOTION BY: SECONDED BY: IN FAVOR. OPPOSED: 2 CITY OF OTSEGO Jessica L. Stockamp, Mayor ATTEST: Audra Etzel, City Clerk (reser7�ed for recording information) DEVELOPMENT CONTRACT (Developer Installed Improvements) PARKVIE W RETAIL 2ND ADDITION CONTRACT dated 2021, by and between the CITY OF OTSEGO, a Minnesota municipal corporation ("City"), and RICE COMPANIES, INC., a Minnesota corporation (the "Developer"). 1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a plat for PARKVIEW RETAIL 2ND 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 as: Outlot B, Parkview Retail, Wright County, Minnesota, according to the recorded plat thereof. 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, construct sewer lines, water lines, streets, utilities, public or private improvements, or any buildings until all the following conditions have been 1 214208v1 Parkview Retail 2°d Addition satisfied: 1) this contract has been fully executed by both parties and filed with the City Clerk, 2) the necessary security has been received by the City, 3) the necessary insurance for the Developer and its construction contractors has been received by the City, and 4) the plat has been filed with the Wright County Recorder or Registrar of Titles' office. 4. PHASED DEVELOPMENT. If the plat is a phase of amulti-phased preliminary plat, the City may refuse to approve final plats of subsequent phases if the Developer has breached this Contract and the breach has not been remedied. Development of subsequent phases may not proceed until Development Contracts for such phases are approved by the City. Park dedication charges referred to in this Contract are not being imposed on outlots, if any, in the plat that are designated in an approved preliminary plat for future subdivision into lots and blocks. Such charges will be calculated and imposed when the outlots are final platted into lots and blocks. 5. PRELIMINARY PLAT STATUS. If the plat is a phase of amulti-phased preliminary plat, the preliminary plat approval for all phases not final platted shall lapse and be void unless final platted into lots and blocks and outlots, within two (2) years after preliminary plat approval. 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 to or affect the use, development density, lot size, lot layout or dedications of the approved plat unless required by state or federal law or agreed to in writing by the City and the Developer. Thereafter, notwithstanding anything in this Contract 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, official controls, platting or dedication requirements enacted after the date of this 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 plans may be prepared, subject to the City Engineer's approval, after entering the Contract, but before commencement of any work in the plat. The City Engineer may approve minor amendments to Plans without City Council approval. If the plans vary from the written terms of this Contract, the written terms shall control. The plans are: 51 214208v1 Parkview Retail 2"d Addition Plan A - Plat Plan B - Final Grading, Drainage, and Erosion Control Plan Plan D - Plans and Specifications for Public Improvements Plan E -Street Lighting Plan Plan F -Landscape Plan 8. IMPROVEMENTS. The Developer shall install and pay for the following: A. Sanitary Sewer System B. Water System C. Storm Sewer System D. Streets E. Concrete Curb and Gutter F. Street Lights G. Site Grading, Stormwater Treatment/Infiltration Basins, and Erosion Control H. Underground Utilities I. Setting of Iron Monuments J. Surveying and Staking K. Sidewalks and Trails L. Retaining Walls M. Landscaping The improvements shall be installed in accordance with the City subdivision ordinance; City standard specifications for utility and street construction; and any other ordinances including Chapter 6 of the City Code concerning erosion and sediment control. The Developer shall submit plans and specifications which have been prepared by a competent Minnesota registered professional engineer to the City for approval by the City Engineer. The Developer shall instruct its engineer to provide adequate field inspection personnel to assure an acceptable level of quality control to the extent that the Developer's engineer will be able to certify that the construction work meets the approved City standards as a condition 91 214208v1 Parkview Retail 2"d Addition of City acceptance. In addition, the City may, at the City's discretion and at the Developer's expense, have one or more City inspectors and a soil engineer inspect the work on a full or part-time basis. The Developer, its contractors and subcontractors, shall follow all instructions received from the City's inspectors. The Developer's engineer shall provide for on -site project management. The Developer's engineer is responsible for design changes and contract administration between the Developer and the Developer's contractor. The Developer or its engineer shall schedule apre-construction meeting at a mutually agreeable time at the City with all parties concerned, including the City staff, to review the program for the construction work. Within thirty (30) days after the completion of the improvements and before the security is released, the Developer shall supply the City with a complete set of reproducible constructed" plans and an electronic file of the "as -constructed" plans in an AutoCAD .DWG file or a .DXF file, all prepared in accordance with City standards. In accordance with Minnesota Statutes 505.021, the final placement of iron monuments for all lot corners must be completed before the applicable security is released. The Developer's surveyor shall also submit a written notice to the City certifying that the monuments have been installed following site grading, utility and street construction. 9. 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 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 8 above. 10. PERMITS. The Developer shall obtain or require its contractors and subcontractors to obtain all necessary permits, which may include: A. Wright County for County Road Access and Work in County Rights -of -Way B. MnDot for State Highway Access C. MnDot for Work in Right -of -Way D. Minnesota Department of Health for Watermains E. MPCA NPDES Permit for Construction Activity F. MPCA for Sanitary Sewer and Hazardous Material Removal and Disposal G. DNR for Dewatering 0 214208v1 Parkview Retail 2"d Addition H. City of Otsego for Building Permits, Retaining Walls, Irrigation I. MDH for water permits J. MPCA for sewer extension 11. DEWATERING. Due to the variable nature of groundwater levels and stormwater flows, 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 also be strictly followed. 12. TIME OF PERFORMANCE. The Developer shall install all required public improvements by December 31, 2021. 13. STREETS. The Developer agrees to maintain the streets within the Plat until the base course bituminous surfacing has been accepted by the City. Should the City be required to grade the street prior to paving, the cost of such grading shall be paid by the Developer and draw from the Developer's letter of credit. Should the City determine that snowplowing is necessary prior to street paving, the City will plow the streets) prior to acceptance of the streets. The Developer shall hold harmless and indemnify the City from any and all liability related to this snow plowing and shall pay all costs associated with this snow plowing. Any plowing undertaken by the City shall constitute no acceptance or evidence of acceptance of the street(s) in question. The final wear course shall not be constructed until at least one construction season after the base construction is completed and shall be delayed one more construction season if at least 75% build out is not achieved. However, the final wear course shall not be delayed for a period longer than two years after the base course is paved, regardless of build out; in which case, the Developer shall provide an escrow for fog sealing the streets in the event the final wear course is placed prior to 75% build out. Upon final completion of streets and acceptance by the City as a City street rather than a private drive, the Developer shall guarantee to the City for a period of two (2) years the streets have been constructed to City standards. The warranty period shall not commence until such time as street construction is completed 5 214208v1 Parkview Retail 2"a Addition and the streets are accepted as City streets by the City. The two (2) year warranty period set forth above commences upon the date on which the City accepts the streets by resolution. 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. Prior to initiating site grading, the erosion control plan, Plan B, shall be implemented by the Developer and inspected and approved by the City. The City may impose additional erosion control requirements if they would be beneficial. All areas disturbed by the grading operations shall be stabilized per the MPCA Stormwater Permit for Construction Activity. Seed shall be in accordance with the City's current seeding specification which may include temporary seed to provide ground cover as rapidly as possible. All seeded areas shall be fertilized, mulched, and disc anchored as necessary for seed retention. The parties recognize that time is of the essence in controlling erosion. If the Developer does not comply with the MPCA Stormwater Permit for Construction Activity or with the erosion control plan and schedule or supplementary instructions received from the City, the City may take such action as it deems appropriate to control erosion. The City will endeavor to notify the Developer in advance of any proposed action, but failure of the City to do so will not affect the Developer's and City's rights or obligations hereunder. If the Developer does not reimburse the City for any cost the City incurred for such work within ten (10) days, the City may draw down the letter of credit to pay any costs. No development, utility or street construction will be allowed and no building permits will be issued unless the plat is in full compliance with the approved erosion control plan. 16. GRADING. The plat shall be graded in accordance with the approved grading development and erosion control plan, Plan "B". The plan shall conform to City of Otsego specifications. Within thirty (30) days after completion of the grading and before the City approves individual building permits (except three (3) model home permits on lots acceptable to the Building Official), the Developer shall provide the City with an "as -constructed" grading plan certified by a registered land surveyor or engineer that all storm water treatment/infiltration basins and swales, have been constructed on public easements or land owned 6 214208v1 Parkview Retail 2"d Addition by the City. The "as -constructed" plan shall include field verified elevations of the following: a) cross sections of storm water treatment/infiltration basins; b) location and elevations along all swales, wetlands, wetland mitigation areas if any, locations and dimensions of borrow areas/stockpiles, and installed "conservation area posts; and c) lot corner elevations and house pads, and all other items listed in City Code, The City will withhold issuance of building permits until the approved certified grading plan is on file with the City and all erosion control measures are in place as determined by the City Engineer. The Developer certes to the City that all lots with house footings placed on fill have been monitored and constructed to meet or exceed FHA/HUD 79G specifications. The soils observation and testing report, including referenced development phases and lot descriptions, shall be submitted to the Building Official for review prior to the issuance of building permits. Before a building permit is issued, a cash escrow shall be furnished to the City in accordance with the City's current fee schedule to guarantee compliance with the erosion control and grading requirements and the submittal of an as -built certificate of survey. Prior to the release of the required individual lot grading and erosion control security that is submitted with the building permit, an as -built certificate of survey for single family lots must be submitted to verify that the final as -built grades and elevations of the specific lot and all building setbacks are consistent with the approved grading plan for the development, and amendments thereto as approved by the City Engineer, and that all required property monuments are in place. If the final grading, erosion control and as -built survey is not timely completed, the City may enter the lot, perform the work, and apply the cash escrow toward the cost. Upon satisfactory completion of the grading, erosion control and as -built survey, the escrow funds, without interest, less any draw made by the City, shall be returned to the person who deposited the funds with the City. A certified as -built building pad survey must be submitted and approved for commercial, industrial or institutional developments prior to issuance of a building permit. 17. CLEAN UP, The Developer shall clean dirt and debris from streets that has resulted from construction work by the Developer, home builders, subcontractors, their agents or assigns. Prior to any 7 214208v1 Parkview Retail 2°d Addition 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. SANITARY SEWER AVAILABILITY CHARGE AND WATER AVAILABILTIY CHARGE. The Developer shall pay to the City the required water availability charges and sanitary sewer availability charges. The water and sewer availability charges shall be collected according to Section 8- 1-6-B of City Code including 9.0 RECs per gross acre for multiple family uses and 3.5 RECs per gross acre for commercial, industrial, or institutional uses paid in cash at the time of final plat approval. The water and sewer availability charges shall be The Developer shall pay a cash fee in the amount of $10,960.15 for the Sewer Availability Charge ("SAC") at the time of plat approval which is calculated as follows: 4.15 REC X $2641/REC = $10,960.15 20. SEWER CONNECTION CHARGE AND WATER CONNECTION CHARGE. The Developer shall pay to the City required water and sewer connection charges. The water and sewer connection charges shall be collected per Section 8-1-6-C of City Code for all uses and must be paid prior to the issuance of a building permit based on the fee schedule in effect at the time of application for the building permit. The Developer shall pay a cash fee in the amount of $7,652.60 for the Water Availability Charge ) at the time of plat approval which is calculated as follows: 4.15 REC X $1844/REC = $7,652.60 21. CONSTRUCTION ACCESS. Construction traffic access and egress for grading, public utility construction, and public street construction is restricted to access the subdivision as approved by the City Engineer. !3 214208v1 Parkview Retail 2"d Addition 22. PARK DEDICATION. The Developer shall pay a cash contribution of $8,260.00 in satisfaction of the City 'spark dedication requirements. The charge was calculated as follows: 1.18 Acres X $7,000 per Acre = $8,260.00 23. SPECIAL PROVISIONS. The following special provisions shall apply to plat development: A. Implementation of the conons listed in the Findings of Fact approved by the City Council on March 22, 2021. B. All grading, drainage, and erosion control issues are subject to review and approval of the City Engineer C. All utility issues are subject to review and approval of the City Engineer D. All drainage and utility easements shall be subject to review and approval of the City Engineer. E. The Developer is required to submit the final plat in electronic format. The electronic format shall be either AutoCAD.DWG file or a .DXF file. All construction record drawings (e.g., grading, utilities, streets) shall be in electronic format in accordance with standard City specifications. F. The final plat shall be recorded by June 30, 2021 as provided for by Section 10-5-3.B.8 of the Subdivision Ordinance. 24. CONSTRUCTION ADMINISTRATION AND FEES FOR CITY SERVICES. 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, which are estimated to be three percent (3%) of the estimated construction cost of the Improvements to be inspected, assuming normal construction and project scheduling. The Developer shall pay 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 9 214208v1 Parkview Retail 2"d Addition (5%) of the estimated construction cost of the Improvements to be inspected. In the event of prolonged construction or unusual problems, the City will notify the Developer of anticipated cost 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 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 in this Contract), City Administrative Fee (a flat fee due upon execution of this Agreement), Trunk Water and Sewer Access Fees (a flat fee due upon execution of this Agreement), Transportation Infrastructure Costs (a flat fee due 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. 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 prior to execution of this Agreement. Any amounts for legal and engineering not utilized from this escrow fund 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 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 to 214208v1 Parkview Retail 2"d Addition 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, except with respect to streets, for which the warranty period shall be two years as addressed elsewhere in this Contract. 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. 26. SUMMARY OF SECURITY REQUIREMENTS above is calculated as follows: The amount of the security described ESCROW A. City Legal Expenses ($1,500.00 minimum) B. GIS Data Entry Feed C. City Construction Administration ($1,000.00 minimum) and Utility and Street $1,500.00 250.00 1,000.00 214208v1 11 Parkview Retail 2"d Addition ESCROW TOTAL This breakdown is not a restriction on the use of the security. $2,750.00 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. Trunk Sewer Access Fee (SAC) $10,960.15 B. Trunk Water (WAC) 7,652.60 C. City Administrative ($1,500.00 minimum) 1,500.00 D. Park And Trail Dedication 8,260,00 TOTAL CASH REQUIREMENTS $281372.75 28. WARRANTY. The Developer warrants all improvements required to be constructed by it pursuant to this Contract against poor material and faulty workmanship. The warranty period for streets is two years as specified in this Contract. The warranty period for underground utilities is two years and shall commence following completion and acceptance by City Council. A minimum of 10% of the total security required under this Contract shall be retained as warranty security as specified in the section of this Contract. 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 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, 12 214208v1 Parkview Retail 2"d Addition 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. D. The Developer shall pay, or cause to be paid when due, and in any event before any penalty is attachedI all special assessments referred to in this Contract. This is a personal obligation of the Developer and shall continue in full force and effect even if the Developer sells one or more lots, the entire plat, or any part of it. 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 sewer availability charges ("SAC"), City water connection charges, City sewer connection charges, and building permit 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. 13 214208v1 Parkview Retail 2"d Addition 312 MISCELLANEOUS. A. The Developer represents to the City that the plat complies with all city, county, state, and federal laws and regulations, including but not limited to: subdivision ordinances, zoning ordinances, and environmental regulations. If the City determines that the plat does not comply, the City may, at its option, refuse to allow construction or development work in the plat until the Developer does comply. Upon the City's demand, the Developer shall cease work until there is compliance. B. Third parties shall have no recourse against the City under this Contract. C. Breach of the terms of this Contract by the Developer shall be grounds for denial of building permits, including lots sold to third 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. Grading, curbing, and one lift of asphalt shall be installed on all public and private streets prior to issuance of any building permits. F. If building permits are issued prior to the acceptance of public improvements, the Developer assumes all liability and costs resulting in delays in completion of public improvements and damage to public improvements caused by the City, Developer, its contractors, subcontractors, material men, employees, agents, or third parties. No sewer and water connections or inspections may be conducted and no one may occupy a building for which a building permit is issued on either a temporary or permanent basis until the streets needed for access have been paved with a bituminous surface and the utilities are accepted by the City Engineer, G. The action or inaction of the City shall not constitute a waiver or amendment to the provisions of this Contract. To be binding, amendments or waivers shall be in writing, signed by the parties and approved by written resolution of the City Council. The City's failure to promptly take legal action to enforce this Contract shall not be a waiver or release. 14 214208v1 Parkview Retail 2"d Addition H. This Contract shall run with the land and may be recorded against the title to the property. In the event this Contract is recorded, upon request by Developer, the City covenants to provide a recordable Certificate of Completion within a reasonable period of time following the request, upon the completion of the work and responsibilities required herein, payment of all costs and fees required and compliance with all terms of the Contract. A release of this Contract may be provided in the same manner and subject to the same conditions as a Certificate of Completion provided there are no outstanding or ongoing obligations of Developer under the terms of this Contract. The Developer covenants with the City, its successors and assigns, that the Developer is well seized in fee title of the property being final platted and/or has obtained 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. I. 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: 15 214208v 1 Parkview Retail 2"d Addition 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 Injuryby Disease aggregate • $500, 000 — Bodily Injury by Accident The Developer's and general contractor's insurance must be "Primary and Non -Contributory" All insurance policies (or riders) required by this Contract shall be (i) taken out by and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State of Minnesota, (ii) shall name the City, its employees and agents as additional insureds (C(.L and umbrella only) by endorsement which shall be filed with the City and (iii) shall identify the name of the plat. A copy of the endorsement must be submitted with the certificate of insurance. Developer's and general contractor's policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty (30) days' advanced written notice to the City, or ten (10) days' notice for non-payment of premium. An Umbrella or Excess Liability insurance policy may be used to supplement Developer's or general contractor's policy limits on a follow -form basis to satisfy the full policy limits required by this Contract. 16 214208v1 Parkview Retail 2"d Addition J. Indemnification. To the fullest extent permitted by law, Developer agrees to defend, indemnify and hold harmless the City, and its employees, officials, and agents from and against all claims, actions, damages, losses and expenses, including reasonable attorney fees, arising oLit of Developer's negligence or its performance or failure to perform its obligations under this Contract. Developer's indemncation obligation shall apply to Developer's general contractor, subcontractor(s), or anyone directly or indirectly employed or hired by Developer, or anyone for whose acts Developer may be liable. Developer agrees this indemnity obligation shall survive the completion or termination of this Contract. K. Each right, power or remedy herein conferred upon the City is cumulative and in addition to every other right, power or remedy, express or implied, now or hereafter arising, available to City, 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 the City and shall not be a waiver of the right to exercise at any time thereafter any other right, power or remedy. L. The Developer may not assign this Contract without the written permission of the City Council. The Developer's obligation hereunder shall continue in full force and effect even if the Developer sells one or more lots, the entire plat, or any part of it, until the City's issuance of a Certificate of Completion and Release. M. Retaining walls over four feet in height shall be constructed in accordance with plans and specifications prepared by a structural or geotechnical engineer licensed by the State of Minnesota. Following construction, a certification signed by the design engineer shall be filed with the Building Official evidencing that the retaining wall was constructed in accordance with the approved plans and specifications. All retaining walls identified on the development plans and by special conditions referred to in this Contract shall be constructed before any other building permit is issued for a lot on which a retaining wall is required to be built. All retaining walls must comply with the City's engineering manual and the City's zoning ordinance. 17 214208v1 Parkview Retail 2"d Addition N. Should the Developer convey any lot or lots in the Development to a third party, the City and the owner of that lot or those lots may amend this Development Contract or other city approvals or agreements for development or use of those lots without the approval or consent of the Developer or other lot owners in the Development. Private agreements between the owners of lots wn the Development for shared service or access and related matters necessary for the efficient use of the Development shall be the responsibility of the lot owners and shall not bind or restrict City authority to approve applications from any lot owner in the Development. 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: 1019 Industrial Drive South, Sauk Rapids, Minnesota 56379. 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.] 11E:3 214208v1 Parkview Retail 2"d Addition CITY OF OTSEGO BY: (SEAL) AND STATE OF MINNESOTA COUNTY OF WRIGHT Jessica L. Stockamp, Mayor Tami Loff, City Clerk The foregoing instrument was acknowledged before me this day of , 2021, by Jessica L. Stockamp and by Tami 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 19 214208v1 Parkview Retail 2"d Addition DEVELOPER: RICE COMPANIES, INC. BY: STATE OF MINNESOTA COUNTY OF Its The foregoing instrument was acknowledged before me this _ 2021. by Rice Companies, Inc., a Minnesota corporation, 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 the on behalf of said entity. NOTARY PUBLIC of 20 214208v1 Parkview Retail 2"a Addition FEE OWNER CONSENT TO DEVELOPMENT CONTRACT PARKVIEW PARTNERS, LLC, a Minnesota limited liability company, 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 STATE OF MINNESOTA COUNTY OF day of )ss. 2021. PARKVIEW PARTNERS, LLC By: Its The foregoing instrument was acknowledged before me this by , the Minnesota limited liability company, on behalf of said entity. 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 , 2021, of Parkview Partners, LLC, a 21 214208v1 Parkview Retail 2"d Addition MORTGAGE HOLDER CONSENT TO DEVELOPMENT CONTRACT WEST BANK, an Iowa banking corporation, which holds: 1. A Mortgage executed by Parkview Partners, LLC, a Minnesota limited liability company, in favor of West Bank, an Iowa banking corporation, dated November 15, 2019, filed November 20, 2019, as Document No. A1411591, in the amount of $1,350,000.00; and 2. Modification of Mortgage between Parkview Partners, LLC, a Minnesota limited liability company, and West Bank, an Iowa banking corporation, dated April 1, 2020, filed April 6, 2020, as Document No. A1422875; and 3. Modification of Mortgage between Parkview Partners, LLC, a Minnesota limited liability company, and West Bank, an Iowa banking corporation, dated July 24, 2020, filed August 6, 2020, as Document No. A1436028; 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 , 2021. STATE OF )ss. COUNTY OF WEST BANK By: Its The foregoing instrument was acknowledged before me this 2021, by ,the Iowa banking corporation, on behalf of said entity. DRAFTED BY: CAMPBELLKNUTSON Professional Association Grand Oak Office Center 1 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 651-452-5000 DSK/smt NOTARY PUBLIC [print name] [title] of West Bank, an 22 214208v1 Parkview Retail 2°d Addition [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] BY: Its 23 214208v1 Parkview Retail 2"d Addition