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3.13 Project Ollie Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 9 May 2022 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty City Engineer Wagner City Attorney Kendall 3.13 – Project Ollie 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 approval of a final plat, development contract and special assessment of utility availability and connection fees. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes No BACKGROUND/JUSTIFICATION: The City Council on 28 March 2022 approved a Zoning Map amendment, site and building plans, and preliminary plat for Endeavor Development for 80 acres located east of Queens Avenue and south of 65th Street. The developer has worked with City staff to finalize the site and building plans and the final plat consisting of one lot and one outlot for the proposed development. Comprehensive Plan. The 2012 Otsego Comprehensive Plan guides the subject site for future industrial land uses within the East Sewer District in the form of large-scale industrial buildings to accommodate manufacturing, assembly, warehouse, and office uses. Industrial development is a goal of the Comprehensive Plan so as to diversify the tax base and lessen dependance on residential properties as well as to create employment opportunities within Otsego and the proposed development advances the City’s efforts. Zoning. The subject site is zoned I-1, Limited Industrial District. The proposed warehouse distribution facility to be developed on Lot 1, Block 1 is a permitted use within the I-1 District. Future expansion of the building proposed as Phase 2 of the development will require application for site and building plan review and a final plat amendment. Right-of-Way. The subject site abuts Queens Avenue on the east and 65th Street to the north. Queens Avenue is an improved Industrial/Commercial Major Collector Street in accordance with the Transportation Plan of the 2012 Comprehensive Plan. No right-of-way dedication or improvement of Queens Avenue is required with the final plat. The Transportation Plan also designates 65th Street as an Industrial/Commercial Major Collector Street, but it exists as a rural section gravel roadway within prescriptive easement. The final plat provides for dedication of 50-feet of right-of-way for the south half of the roadway. No improvements to 65th Street are planned with Phase 1 of proposed development. Replatting of Outlot A to accommodate Phase 2 of the proposed development will require construction of 65th Street as an Industrial/Commercial Major Collector Street if the roadway has not already been improved. All right-of-way dedication is to be subject to review and approval of the City Engineer. Lot Area. Section 11-85-7.A of the Zoning Ordinance requires lots within the I-1 District to have a minimum area of 1.0 acre. The area of Lot 1, Block 1 is 20.74 acres, which complies with the minimum lot area requirement of the Zoning Ordinance. Lot Width. Section 11-85-7.B of the Zoning Ordinance requires lots within the I-1 District to have a minimum width of 200-feet at the front setback line. The proposed lot measures 1,200-feet at the setback line from Queens Avenue, which is the front lot line as defined by the Zoning Ordinance. The width of the proposed lot complies with the requirements of the Zoning Ordinance. Site Coverage. Section 11-85-8 of the Zoning Ordinance establishes a maximum building coverage limit of 50-percent and maximum impervious surface coverage limit of 85-percent for lots within the I-1 District. The proposed Phase 1 building covers 39 percent of the area of Lot 1, Block 1 and the percentage of lot area for all impervious surfaces within Lot 1, Block 1 is shown to be 64 percent. The proposed site coverage complies with the limits of the Zoning Ordinance. Setbacks. The table below outlines the setbacks applicable to the proposed building within Lot 1, Block 1 as shown on the site plan. The proposed building complies with the setback requirements of the I-1 District established by Section 11-85-7.C of the Zoning Ordinance. Queens Ave. 65th St. East South Wetland Required 30ft. 30ft. 20ft. 30ft 40ft. Proposed 92ft. 200ft. 20ft. 490ft. 160ft. Landscaping and Screening. The submitted plans include a landscape plan to provide for plantings along Queens Avenue and 65th Street and along the south property line abutting the Harvest Run neighborhood. The plantings along the south property line are upon a berm that is nine to 17 feet above the floor elevation of the building and 15 to 25 feet above the rear line of the semi-tractor parking stalls. The proposed trees provided for screening along the berm are to be eight foot evergreen trees, but must be revised to include shade trees intermixed at 40 to 50 feet on center. The berm is to be 7 feet in height with a six foot composite material fence along the westerly section outside of Outlot A. The final landscape plan is to be subject to approval of the Zoning Administrator. Section 5-2-3.B.4.b of the City Code requires an irrigation system be provided for maintenance of the plantings, which is indicated to be installed on the landscape plan details. Utilities. There are existing sewer and water utilities available to the subject site within Queens Avenue. The City Engineer has approved the plans submitted by the developer for connection of the proposed development to sewer and water services for the proposed use. The connection to sewer will require installation of a temporary lift station until gravity sewer is extended to the subject site from the east. The developer will be required to pay Utility Availability Charges upon final plat approval and Utility Connection Charges at the time a building permit is issued, subject to an assessment agreement outlined below. Grading. The developer has submitted plans for grading of the subject site, including information required regarding stormwater management and erosion control. The proposed development impacts wetlands within the subject site that are subject to review by a Technical Evaluation Panel of agency staff. All grading, drainage, wetland impacts, and erosion control plans have been approved by the City Engineer. Easements. Section 11-8-12.A of the Subdivision Ordinance requires 10 foot wide drainage and utility easements to be dedicated at the perimeter of Lot 1, Block 1, which are shown on the final plat. Temporary drainage and utility easements are to be dedicated over all of Outlot A, which will overlay wetlands, wetland buffers, public utilities, or stormwater management facilities. All drainage and utility easements have been approved by the City Engineer. Park Dedication. The Parks System Master Plan does not identify acquisition of land from the subject site for park purposes. The City does not require payment of a cash fee in lieu of land for park dedication for industrial uses in order to facilitate the economic development goals of the 2012 Comprehensive Plan. Development Contact. A development contract is required with final plat approval by Section 10-10-4.A of the Subdivision Ordinance to provide for completion of public improvements, establishment of required securities, and payment of applicable fees related to the subdivision of the subject site. Section 11-9-7 of the Zoning Ordinance also requires that the developer enter into a performance agreement with the City to provide for construction of the project improvements within the subject site. The City Attorney has drafted a single development contract for the proposed development that has been executed by the developer and is subject to approval by resolution of the City Council and recorded with the property. Special Assessments. The developer is requesting assessment of a portion of the Utility Availability Charges for the final plat and all of the Utility Connection Charges for the issuance of a building permit for the proposed building. The total amount of the assessment is to be $688,789.78 for a period of seven years at 4.20% interest. The City Attorney has drafted an agreement to be executed by the developer agreeing to the assessment and waiving appeals. The assessment and assessment agreement are to be recorded against Lot 1, Block 1, Jacobs Plat after recording of the final plat. SUPPORTING DOCUMENTS ATTACHED: ▪ Engineering Approved Plans Cover Sheets & Final Plat ▪ Findings of Fact and Decision; Final Plat ▪ Resolution 2022-49 approving a Development Contract ▪ Development Contract ▪ Resolution 2022-50 approving and adopting Special Assessments ▪ Special Assessment Agreement POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to approve the final plat of the Jacobs Plat subject to the conditions as stated in the Findings of Fact and Decision as presented; adopt Resolution 2022-49 approving a development contract; and adopt Resolution 2022-50 approving and adopting special assessments. BUDGET INFORMATION FUNDING: BUDGETED: N/A N/A V2-27Apr22 1 PROJECT OLLIE FINAL PLAT FINDINGS OF FACT & DECISION APPLICANT: Endeavor Investments XII, LLC APPLICATION: Request for final plat approval of the Jacobs Plat. CITY COUNCIL MEETING: 9 May 2022 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: THE NORTH HALF OF THE SOUTHEAST QUARTER OF SECTION 35, TOWNSHIP 121, RANGE 23, WRIGHT COUNTY, MINNESOTA. B. The property lies within the East Sewer District and is guided industrial land uses by the 2012 Otsego Comprehensive Plan, as amended. C. The property is zoned I-1, Limited Industrial District. D. The applicant is requesting approval of a final plat of one lot and one outlot. E. The Request for Council Action dated 9 May 2022 prepared by the City Planner, The Planning Company LLC, is incorporated herein. F. The engineering review dated April 25, 2022 prepared by the City Engineer, Hakanson Anderson, Inc. is incorporated herein. G. Final Plat applications are processed in accordance with Section 10-3-3 of the Subdivision Ordinance and do not require review by the Planning Commission. DECISION: Based on the foregoing information and applicable ordinances, the request is hereby APPROVED, subject to the following conditions: 1. Final platting of any portion of Outlot A as a lot/block, or as an expansion of an existing lot, shall require that 65th Street be constructed as an Industrial/Commercial Major Collector Street in compliance with Section 10-8-5.A.7 of the Subdivision Ordinance, unless the roadway has already been improved to that standard. V2-27Apr22 2 2. The landscape plan shall be revised to provide for eight foot tall evergreen trees and incorporate 2.5 inch deciduous shade trees spaced not more than 100 feet on center along the screening berms, subject to review and approval of the Zoning Administrator. 3. All utility plans shall be subject to review and approval of the City Engineer. 4. The developer shall pay Utility Availability Charges as provided for by the City Code upon approval of the final plat. 5. The developer shall pay Utility Connection Charges in accordance with the City Code at the time a building permit is issued. 6. All grading, drainage, wetland, and erosion control plans shall be subject to review and approval of the City Engineer. 7. All drainage and utility easements shall be subject to review and approval of the City Engineer. 8. The developer shall execute development contract as drafted by the City Attorney, subject to approval of the City Council. MOTION BY: SECOND BY: ALL IN FAVOR: THOSE OPPOSED: ADOPTED by the City Council of the City of Otsego this 9th day of May, 2022. CITY OF OTSEGO By:________________________________ Jessica L. Stockamp, Mayor Attest: By:____________________________ Audra Etzel, City Clerk 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2022-49 APPROVING A DEVELOPMENT CONTRACT FOR JACOBS PLAT WHEREAS, Endeavor Investments XII, LLC (the “developer”) is proposing platting of the Jacobs Plat final plat; and WHEREAS, a final plat was approved by the City Council on 9 May 2022; and WHEREAS, Section 10-10-4.A of the Subdivision Ordinance and Section 11-9-7 of the Zoning 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 Endeavor Investments XII, LLC 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. 2 ADOPTED by the City Council of the City of Otsego this 9th day of May, 2022. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 1 220939v8 Jacobs Plat (reserved for recording information) DEVELOPMENT CONTRACT (Developer Installed Improvements) JACOBS PLAT CONTRACT dated ____________________, 2022, by and between the CITY OF OTSEGO, a Minnesota municipal corporation (“City”), and ENDEAVOR INVESTMENTS XII, LLC, a Minnesota limited liability company (the “Developer”). 1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a plat for JACOBS PLAT (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: The North Half of the Southeast Quarter, Section 35, Township 121, Range 23, in Wright County, Minnesota. 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 2 220939v8 Jacobs Plat 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 a multi-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 a multi-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: 3 220939v8 Jacobs Plat 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 4 220939v8 Jacobs Plat 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 a pre-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 “as- 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 5 220939v8 Jacobs Plat 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 May 31, 2023. 13. STREETS. The Developer agrees to maintain the area of Queens Avenue under construction for access to utilities and curb cuts 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 drawn from the Developer’s letter of credit. Should the City determine that snowplowing is necessary prior to street paving, the City will plow the street(s) 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. 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 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. 6 220939v8 Jacobs Plat 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 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, 7 220939v8 Jacobs Plat 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 certifies 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. 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. 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 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. PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT FOR SEWER AND WATER AVAILABILITY CHARGES. The Developer/Owner requests that the Otsego City Counsel specially assess certain public improvement costs that affect the plat. The Developer/ Owner and City will simultaneously with the execution of this Contract, enter into a separate Public Improvement and Special Assessment Agreement for sewer and water availability charges. This Development Contract requires compliance with the Public Improvement and Special Assessment Agreement. Any violation of the terms and conditions of the Public Improvement and Special 8 220939v8 Jacobs Plat Assessment Agreement shall result in a default of both the Public Improvement and Special Assessment Agreement and the Development Contract. 20. LATERAL STORM SEWER. The Developer shall post a security for lateral storm sewer in the amount of $292,300.00 which is due upon final plat approval. 21. LATERAL AND TRUNK SANITARY SEWER. 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 at 3.5 RECs per gross acre for commercial, industrial, or institutional uses. The Developer shall post a security in the amount of $25,000.00 for Lateral and Trunk Sanitary Sewer which is due upon final plat approval. The Developer shall pay a cash fee in the amount of $209,422.15 for the Sewer Availability Charge (“SAC”) at the time of plat approval which is calculated as follows: 20.74 Gr Ac X 3.5 RECs/Gr Ac X $2,885.00/REC = $209,422.15 22. LATERAL AND TRUNK WATERMAIN. The Developer shall post a security in the amount of $358,520.00 for the installation of lateral and trunk watermain and connection. The Developer shall pay a cash fee in the amount of $146,196.26 for the Water Availability Charge (“WAC”) at the time of plat approval which is calculated as follows: 20.74 Gr Ac X 3.5 RECs/Gr Ac X $2,014.00/REC = $146,196.26 23. 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 Certificate of Occupancy based on the fee schedule in effect at the time of application for the Certificate of Occupancy. 24. 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. 9 220939v8 Jacobs Plat 25. LANDSCAPING. Landscaping (and screening fence) shall be installed in accordance with the approved landscape plan. The Developer shall post a $226,000.00 landscaping security at the time of final plat approval to ensure that the landscaping and screening fence is installed in accordance with the approved plan. 26. WETLAND REPLACEMENT OR MITIGATION. Before the City signs the final plat, the Developer shall post a security in the amount of $520,565.00 for Wetland Replacement Credits. The Developer shall post a security in the amount of $95,843.00 for Wetland Mitigation. The Wetland Replacement Credits security and Wetland Mitigation 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 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. 27. 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 May 9, 2022. B. Final platting of any portion of Outlot A as a lot/block, or as an expansion of an existing lot, shall require that 65th Street be constructed as an Industrial/Commercial Major Collector Street in compliance with Section 10-8-5.A.7 of the Subdivision Ordinance, unless the roadway has already been improved to that standard. C. All utility plans shall be subject to review and approval of the City Engineer. D. The Developer shall pay Utility Availability Charges as provided for by the City Code upon approval of the final plat. E. The Developer shall pay Utility Connection Charges in accordance with the City Code at the time a building permit is issued. 10 220939v8 Jacobs Plat F. All grading, drainage, wetland, and erosion control plans shall be subject to review and approval of the City Engineer. G. All drainage and utility easements shall be subject to review and approval of the City Engineer. H. 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. I. The Developer shall pay a cash fee for the preparation of record construction drawings, GIS, and City base map updating. This fee is $250.00 per lot for a total charge of $250.00. J. 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. 28. 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 11 220939v8 Jacobs Plat (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), Park and Trail Dedication Fees (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. 29. 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 12 220939v8 Jacobs Plat 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. 30. SUMMARY OF SECURITY REQUIREMENTS. The amount of the security described above is calculated as follows: CONSTRUCTION COSTS: A. Sanitary Sewer – Lateral and Trunk $25,000.00 B. Watermain – Lateral and Trunk 358,520.00 C. Storm Sewer - Lateral 292,300.00 D. Streets 15,000.00 CONSTRUCTION SUB-TOTAL $690,820.00 13 220939v8 Jacobs Plat OTHER COSTS: A. Site Grading, Erosion & Sediment Control $110,940.00 and Wetland Protection B. Engineering & Surveying Construction Services (6.5%) 44,903.30 C. Landscaping/Screening 226,000.00 D. Wetland Replacement (Credits) 520,565.00 E. Wetland Replacement (Mitigation) 95,843.00 F. Retaining Walls 52,415.00 OTHER COSTS SUB-TOTAL $1,050,666.30 TOTAL – SUBTOTAL $1,741,486.30 TOTAL IRREVOCABLE LETTER OF CREDIT $2,176,857.88 FOR SECURITY (125% OF SUBTOTAL ESCROW A. City Legal Expenses (Est. 1.0% of $690,820.00) $6,908.20 B. City Construction Observation (Est. 8.0% of $690,820.00) 55,265.60 C. GIS Data Entry Fee $250.00 ESCROW TOTAL $62,423.80 This breakdown is not a restriction on the use of the security. 31. 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 $690,820.00) $6,908.20 B. Trunk Sewer Availability Charge (SAC) 209,422.15 C. Trunk Water Availability Charge (WAC) 146,196.26 TOTAL CASH REQUIREMENTS $362,526.61 32. WARRANTY. The Developer warrants all improvements required to be constructed by it pursuant to this Contract against poor material and faulty workmanship, other than as set forth hereafter in this Section 31, for a period of one (1) year. The warranty period for streets is two (2) years as specified in this Contract. The warranty period for underground utilities is one (1) years and shall commence following completion and acceptance by City Council. A minimum of 10% of the total security as specified above in the portion of Section 30 of this Contract shall be retained as warranty security calculated as follows. 14 220939v8 Jacobs Plat DEVELOPMENT WARRANTY LETTER OF CREDIT A. Sanitary Sewer $3,750.00 B. Watermain 53,778.00 C. Storm Sewer 43,845.00 D. Streets 4,000.00 E. Erosion & Sedimentation Control 5,547.00 F. Wetland Mitigation & Monitoring 95,843.00 TOTAL WARRANTY LETTER OF CREDIT $206,763.00 33. 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, 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 attached, 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. 15 220939v8 Jacobs Plat 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 fees. 34. 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. 35. 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. 16 220939v8 Jacobs Plat 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. 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 17 220939v8 Jacobs Plat 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: 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 18 220939v8 Jacobs Plat • $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 (CGL 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. 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 out of Developer’s negligence or its performance or failure to perform its obligations under this Contract. Developer’s indemnification 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 19 220939v8 Jacobs Plat 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. 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 within 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. 36. 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: 200 Southdale Center, Suite 190, Minneapolis, MN 55435. Notices to the City shall be in writing and shall be either hand delivered to the City Administrator, or mailed to the City by 20 220939v8 Jacobs Plat 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.] 21 220939v8 Jacobs Plat CITY OF OTSEGO BY: ___________________________________________ Jessica L. Stockamp, Mayor (SEAL) AND __________________________________________ Audra Etzel, City Clerk STATE OF MINNESOTA ) )ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this ________ day of ______________, 2022, by Jessica L. Stockamp and by Audra Etzel, 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 22 220939v8 Jacobs Plat DEVELOPER: ENDEAVOR INVESTMENTS XII, LLC BY: ___________________________________________ Its STATE OF MINNESOTA ) )ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this ________ day of ______________, 2022, by __________________________________ the ____________________________________ of Endeavor Investments XII, LLC, a Minnesota limited liability company, on behalf of said entity. ______________________________________________ NOTARY PUBLIC DRAFTED BY: CAMPBELL, KNUTSON Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, MN 55121 Telephone: 651-452-5000 DSK/smt 23 220939v8 Jacobs Plat 1 220939v8 Jacobs Plat MORTGAGE HOLDER CONSENT TO DEVELOPMENT CONTRACT _______________________________________________________, which holds a mortgage 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 ____________, 2_____. ______________________________________ ______________________________________ STATE OF MINNESOTA ) )ss. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this _____ day of ________________, 2_____, by __________________________________________________________________________. ________________________________________ NOTARY PUBLIC DRAFTED BY: CAMPBELL KNUTSON Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 651-452-5000 DSK/smt 2 220939v8 Jacobs Plat [BANK LETTERHEAD] IRREVOCABLE LETTER OF CREDIT No. ___________________ Date: _________________ TO: City of Otsego City Hall 13400 90th Street NE Otsego, Minnesota 55330 Dear Sir or Madam: 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 ______________________________ 1 220939v8 Jacobs Plat (Above Space is Reserved for Recording Information) Minnesota Wetland Conservation Act Declaration of Restrictions and Covenants for Project-Specific Wetland Replacement Replacement Wetland Declarant: General Location of Replacement: Sec. , Twp. , Rge. , County of This Declaration of Restrictions and Covenants for Project-Specific Wetland Replacement Wetland (Declaration) is made this day of , by the undersigned Declarant: RECITALS A. The Declarant holds the fee title or perpetual easement on the real property described in Exhibit A, attached hereto. B. This real property is the site of a Replacement Wetland, as defined in Minnesota Rules 8420.0111, subp. 60. Exhibit B, attached hereto, is a map or survey of the subject Replacement Wetland. C. The Declarant is seeking approval of (1) a replacement plan under Minnesota Statutes section 103G.222. D. The Replacement Wetland is subject to the Wetland Conservation Act of 1991, as amended, Minnesota Statutes section 103G.222 et seq., and all other provisions of law that apply to wetlands, except that the exemptions in Minnesota Statutes section 103G.2241 do not apply to the Replacement Wetland, pursuant to Minnesota Rules 8420.0420. E. The Local Government Unit (LGU) charged with approval of the Replacement Plan is , whose address is 2 220939v8 Jacobs Plat F. All references in this instrument to Minnesota Statutes and Rules are to the Statutes and Rules currently in effect and as amended or renumbered in the future. RESTRICTIONS AND COVENANTS The Declarant makes the following declaration of restrictions and covenants for the Replacement Wetland. These restrictions and covenants shall run with the land, and bind Declarant, and Declarant's heirs, successors, and assigns: 1. The Declarant shall maintain a Replacement Wetland of the size and type specified in the replacement plan approved by the LGU and on file at the offices of the LGU. Declarant shall not make any use of the Replacement Wetland that would adversely affect the functions or values of the wetland as determined by Minnesota Rules 8420.0522, and as specified in the replacement plan. 2. Declarant shall pay the costs of maintenance, repairs, reconstruction, and replacement of the Replacement Wetland, which the LGU or the State of Minnesota through the Minnesota Board of Water and Soil Resources may deem necessary to comply with the specifications for the Replacement Wetland in the approved replacement plan. 3. Declarant grants to the LGU, the State of Minnesota, and the agents and employees of the LGU and the State of Minnesota, reasonable access to the Replacement Wetland for inspection, monitoring, and enforcement purposes. This Declaration grants no access to or entry on the lands described to the general public. 4. Declarant represents that he or she has a fee simple or easement interest in the land on which the Replacement Wetland is or will be located. Declarant represents that he or she has obtained the consent of all other parties who may have an interest in the land on which the Replacement Wetland is or will be located to the creation of the restrictions and covenants herein, and that, all such parties have agreed in writing to subordinate their interests to these restrictions and covenants, pursuant to the attached Consent and Subordination Agreement(s). 5. Declarant shall record or file this Declaration, pay all costs associated with recording or filing, and provide proof of recording or filing to the LGU. If this Declaration is given pursuant to a replacement plan, such proof shall be provided to the LGU before proceeding with construction of the Replacement Wetland. 6. Acknowledge that this Easement shall be unlimited in duration, without being re-recorded. This Easement shall be deemed to be a perpetual conservation easement pursuant to Minn. Stat. ch. 84C. 7. If the replacement plan approved by the LGU and on file at its offices requires the establishment of areas of native vegetative cover, the term “Replacement Wetland” as used in this Declaration shall also include the required areas of permanent vegetative cover, even if such areas are not wetlands. All provisions of this Declaration that apply to the Replacement Wetland shall apply equally to the required areas of native vegetative cover. In addition, the Declarant: (a) Shall comply with the applicable requirements of Minnesota Rules 8420.0526; (b) Shall, at Declarant’s cost, establish and maintain permanent vegetative cover on areas specified in the replacement plan for native vegetative cover, including any necessary planting 3 220939v8 Jacobs Plat and replanting thereof, and other conservation practices, in accordance with the replacement plan; (c) Shall not produce agricultural crops on the areas specified in the replacement plan; (d) Shall not graze livestock on the areas specified in the replacement plan or; (e) Shall not place any materials, substances, or other objects, nor erect or construct any type of structure, temporary or permanent, on the areas specified in the replacement plan, except as provided in the replacement plan; (f) Shall, at Declarant’s cost, be responsible for weed control by complying with noxious weed control laws and emergency control of pests necessary to protect the public health on the areas specified in the replacement plan; and (g) Shall comply with any other requirements or restrictions specified in the replacement plan, including, but not limited to, haying, mowing, timber management or other vegetative alterations that do not enhance or would degrade the ecological functions and values of the replacement site. 8. This Declaration may be modified only by the joint written approval of the LGU and the State of Minnesota through the Minnesota Board of Water and Soil Resources. If the Replacement Wetland has been used to mitigate wetland losses under the Federal Water Pollution Control Act, the U.S. Army Corps of Engineers (or successor agency) must also agree to the modification in writing. Such modification may include the release of land contained in the legal description above, if it is determined that non-wetland areas have been encumbered by this Declaration, unless the approved replacement plan designates these non-wetland areas for establishment of permanent vegetative cover. 9. This Declaration may be enforced, at law or in equity, by the LGU, or by the State of Minnesota. The LGU and the State of Minnesota shall be entitled to recover an award of reasonable attorneys fees from Declarant in any action to enforce this Declaration. The right to enforce the terms of this Declaration is not waived or forfeited by any forbearance or failure to act on the part of the State or LGU. If the subject replacement area is to be used partially or wholly to fulfill permit requirements under the Federal Water Pollution Control Act or a federal farm program, then the provisions of this Declaration that run to the State or the LGU may also be enforced by the United States of America in a court of competent jurisdiction. 10. This Declaration must be recorded and proof of recording submitted to the LGU or other regulatory authority in order to be valid. __________________________________________ Signature of Declarant __________________________________________ Signature of Declarant 4 220939v8 Jacobs Plat STATE OF MINNESOTA ) ) ss. COUNTY OF ) This instrument was acknowledged before me on (date) by (name(s) of person(s). _________________________________________ (Signature of Notarial Officer) (Title) My commission expires: Attachments: [ ] Exhibit A (legal description) [ ] Exhibit B (map or survey of Replacement Wetland) This instrument drafted by: 5 220939v8 Jacobs Plat MINNESOTA WETLAND CONSERVATION ACT AFFIDAVIT OF LANDOWNER(S) STATE OF MINNESOTA ) ( ss. COUNTY OF _________ ) _______________________________________________, the Affiant herein, being first duly sworn, deposes and says: 1. Affiant is the owner of land described as follows, to-wit: (see attached legal description in Declaration) 2. Affiant is well-acquainted with the above-described land. 3. As of _________________, 2______, no persons were in possession of or claiming title to said land other than Affiant. 4. There have been no improvements made during the one hundred twenty (120) days prior to the above date for which any mechanics' liens might have arisen. 5. All taxes and assessments levied against the property have been paid when due, and such property is free and clear of any tax lien except for current taxes not yet due or not yet delinquent. 6. No lien for unpaid income taxes has been filed or is outstanding against the property. 7. The land described above is free of all mortgages, easements, liens and other encumbrances except as specified on the attached Form A-2 (Consent to Replacement Wetland). 8. No judgment or decree has been entered against Affiant that remains unsatisfied. 9. Affiant has not filed a bankruptcy petition nor had one filed against him under Title 11 of the United States Code. Further your Affiant sayeth not. ___________________________________ ___________________________________ Subscribed and sworn to before me this _____ day of ______________, 2____. ______________________________________ Notary Public AG:962 v1 220939v5 CONSENT TO REPLACEMENT WETLAND WHEREAS, _________________________________________ is the fee owner(s) of the following lands: [Insert same legal description from Replacement Wetland Declaration] AND WHEREAS, the undersigned, ____________________________, has an interest in the land pursuant to: _____ Mortgage _____ Utility Easement for utility line or pipeline which runs through the Replacement Wetland _____ Drainage Easement for ditch, tile line or other drainage system which runs through the Replacement Wetland _____ Contract for Deed ____ Lien _____ Other (specify)_________________________________ which document is dated ________________________, and was recorded on ____________________ in the Office of the County Recorder for Wright County, in Book _____, Page _______, as Document No. __________________; and WHEREAS, the fee owner or Landowner as defined in Minn. Rules part 8420.0110, subp. 29 intends to restore or create a Replacement Wetland under Minn. Stat. sec. 103G.222 and Minn. Rules part 8420.0530 or Minn. Rules part 8420.0740, upon the land described above. NOW, THEREFORE, for valuable consideration, receipt of which is hereby acknowledged, the undersigned hereby consents to the creation or restoration of the Replacement Wetland. The undersigned acknowledges that its interest in the land on which the Replacement Wetland is located shall be subject to all federal, state and local laws and regulations regarding wetlands, including the Declaration of Restrictions and Covenants for Replacement Wetland that is attached hereto. 220939v5 IN TESTIMONY WHEREOF, _______________________________________, the ________________________________ of the undersigned, has executed this document this _______ day of ___________________. ________________________________ ________________________________ Title ACKNOWLEDGEMENT STATE OF MINNESOTA ) ( ss. COUNTY OF ________ ) The foregoing instrument was acknowledged before me this _____ day of _________________, by ___________________________________________. _________________________________ Notary Public ______________________________ Notary Stamp or Seal THIS INSTRUMENT WAS DRAFTED BY: Board of Water and Soil Resources 520 Lafayette Road St. Paul, Minnesota 55155 1 221592v2 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2022-50 APPROVING AND ADOPTING SPECIAL ASSESSMENTS ENDEAVOR INVESTMENTS XII, LLC, a Delaware limited liability company, (“Owner”) has requested that the Otsego City Council specially assess certain public improvement costs that affect Owners’ property legally described in Exhibit A attached hereto (“Subject Property”); WHEREAS, the City has received the following signed Public Improvement and Special Assessment Agreement (Exhibit B) waiving all applicable assessment procedural requirements and requesting to be assessed for the public improvement costs in the amount itemized therein for the Subject Property; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA THAT: 1. The signed Public Improvement and Special Assessment Agreement is hereby accepted and approved. 2. The public improvement costs amounting to $688,789.78 are hereby adopted and shall constitute a special assessment against the Subject Property and hereby made part of this Resolution by reference and that the tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 3. Such assessment shall be payable in equal annual installments without deferment extending over a period of seven (7) years, the first of the installments to be payable with taxes paid in 2023 and shall bear the interest rate of 4.20% per annum from the date of adoption of this assessment Resolution. To the first installment shall be added interest on the entire assessment from the date of this Resolution until December 31, 2023. 4. The Owners, at any time prior to certification of the assessment to the County Auditor, may pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City, except that no interest shall be charged if the entire assessment is paid within thirty (30) days from the adoption of this Resolution; and such owner may at any time thereafter, pay the City the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. The Owners may also at any time prior to November 15, of any year, pay the remaining unpaid principal balance with interest accrued to December 31 of the year in which such prepayment is made. 5. The City Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County. 2 221592v2 ADOPTED by the City Council of the City of Otsego this 9th day of May, 2022. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 3 221592v2 EXHIBIT A TO RESOLUTION Lot 1, Block 1, and Outlot A, Jacobs Plat, Wright County, Minnesota, according to the recorded plat thereof. 4 221592v2 EXHIBIT B TO RESOLUTION PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT AGREEMENT made this ___ day of _______________, 2022, by and between the CITY OF OTSEGO, a Minnesota municipal corporation (“City”) and ENDEAVOR INVESTMENTS XII, LLC, a Delaware limited liability company, (“Property Owner”). RECITALS A. Property Owner is the owner of real property located in the City of Otsego, Wright County, Minnesota, as legally described on Exhibit A attached hereto and incorporated herein (the “Subject Property”). B. The Property Owner entered into a Development Contract with the City for improvement of the Subject Property which will be recorded in conjunction with this Public Improvement and Special Assessment Agreement. C. The Development Contract requires the Property Owner to pay Water Availability Charges (“WAC”) in the total amount of $146,196.26. D. The Property Owner paid $116,239.74 of this WAC upon execution of the Development Contract, leaving a balance of $29,956.52 in WAC ($ 146,196.26 - $116,239.74 = $29,956.52) which the Property Owner requests that the City assess against the Subject Property. E. The Development Contract requires the Property Owner to pay Sewer Availability Charges (“SAC”) in the total amount of $209,422.15. F. The Property Owner paid $166,510.26 of the SAC upon execution of the Development Contract, leaving a balance of $42,911.89 in SAC ($209,422.15 - $166,510.26 = $42,911.89) which the Property Owner requests that the City assess against the Subject Property. G. The Development Contract and Otsego City Code Section 8-1-6-C state that the Developer shall pay to the City the required sewer connection charges and water connection charges, which are separate and distinct from Sewer Availability Charges (SAC) and Water Availability Charges (WAC). H. The sewer connection charges with respect to development of the Subject Property are $499,653.15 and the Property Owner requests that the full amount of sewer connection charges be assessed against the Subject Property. 5 221592v2 I. The water connection charges with respect to development of the Subject Property are $116,268.22 and the Property Owner requests that the full amount of water connection charges be assessed against the Subject Property. J. The Property Owner has requested that fees in the total amount of $688,789.78 be assessed against the Subject Property, comprised of the following elements: Availability – Water (WAC) $29,956.52 Availability – Sewer (SAC) $42,911.89 Connection – Water $116,268.22 Connection – Sewer $499,653.15 Total $688,789.78 K. The Property Owner requests that the City assess this amount against the Subject Property. NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. SPECIAL ASSESSMENT. The City will assess the amount of Six Hundred Eighty Eight Thousand Seven Hundred Eighty Nine dollars and Seventy Eight cents ($688,789.78) against the Subject Property. The special assessment shall be deemed adopted on the date this Agreement has been signed by all parties. The assessment shall be spread without deferment over a seven (7) year period in equal annual installments, together with interest of four and two tenths percent (4.2%) per year on the unpaid balance. The first installment shall be payable with taxes paid in 2023. 2. WAIVER. Property Owner, its successors and assigns, waives any and all procedural and substantive objections to the Public Improvements and special assessment, including but not limited to hearing requirements and any claim that the assessment exceeds the benefit to the Subject Property. Property Owner waives any appeal rights otherwise available pursuant to Minn. Stat. § 429.081. 3. RELEASE. Property Owner, its successors and assigns, hereby unconditionally releases and forever discharges the City, its elected officials, employees, agents and insurers from any and all claims and causes of action of whatever kind or nature that is in any way connected with or related to the Public Improvements and the City’s sewer and water systems, including mapping errors. 4. BINDING EFFECT; RECORDING. This Agreement shall be binding upon Property Owner and its successors and assigns. This Agreement shall run with the land and may be recorded against the title to the Subject Property. [Remainder of page is intentionally left blank. Signature pages follow.] 6 221592v2 CITY OF OTSEGO BY: ___________________________ Jessica L. Stockamp, Mayor AND: ____________________________ Audra Etzel, City Clerk STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this ________ day of __________________, 2022, by Jessica L. Stockamp and Audra Etzel, 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 7 221592v2 OWNER: ENDEAVOR INVESTMENTS XII, LLC BY: ______________________________ Its STATE OF MINNESOTA ) )ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ________ day of _________________, 2022, by _____________________________, the ____________________ of Endeavor Investments XII, LLC, a Delaware limited liability company, on behalf of said entity. _________________________________ NOTARY PUBLIC THIS INSTRUMENT WAS DRAFTED BY: Campbell Knutson, Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 DSK/smt 8 221592v2 EXHIBIT A Lot 1, Block 1, and Outlot A, Jacobs Plat, Wright County, Minnesota, according to the recorded plat thereof. 1 221574v4 PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT AGREEMENT made this ___ day of _______________, 2022, by and between the CITY OF OTSEGO, a Minnesota municipal corporation (“City”) and ENDEAVOR INVESTMENTS XII, LLC, a Delaware limited liability company, (“Property Owner”). RECITALS A. Property Owner is the owner of real property located in the City of Otsego, Wright County, Minnesota, as legally described on Exhibit A attached hereto and incorporated herein (the “Subject Property”). B. The Property Owner entered into a Development Contract with the City for improvement of the Subject Property which will be recorded in conjunction with this Public Improvement and Special Assessment Agreement. C. The Development Contract requires the Property Owner to pay Water Availability Charges (“WAC”) in the total amount of $146,196.26. D. The Property Owner paid $116,239.74 of this WAC upon execution of the Development Contract, leaving a balance of $29,956.52 in WAC ($ 146,196.26 - $116,239.74 = $29,956.52) which the Property Owner requests that the City assess against the Subject Property. E. The Development Contract requires the Property Owner to pay Sewer Availability Charges (“SAC”) in the total amount of $209,422.15. F. The Property Owner paid $166,510.26 of the SAC upon execution of the Development Contract, leaving a balance of $42,911.89 in SAC ($209,422.15 - $166,510.26 = $42,911.89) which the Property Owner requests that the City assess against the Subject Property. G. The Development Contract and Otsego City Code Section 8-1-6-C state that the Developer shall pay to the City the required sewer connection charges and water connection charges, which are separate and distinct from Sewer Availability Charges (SAC) and Water Availability Charges (WAC). H. The sewer connection charges with respect to development of the Subject Property are $499,653.15 and the Property Owner requests that the full amount of sewer connection charges be assessed against the Subject Property. I. The water connection charges with respect to development of the Subject Property are $116,268.22 and the Property Owner requests that the full amount of water connection charges be assessed against the Subject Property. 2 221574v4 J. The Property Owner has requested that fees in the total amount of $688,789.78 be assessed against the Subject Property, comprised of the following elements: Availability – Water (WAC) $29,956.52 Availability – Sewer (SAC) $42,911.89 Connection – Water $116,268.22 Connection – Sewer $499,653.15 Total $688,789.78 K. The Property Owner requests that the City assess this amount against the Subject Property. NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. SPECIAL ASSESSMENT. The City will assess the amount of Six Hundred Eighty Eight Thousand Seven Hundred Eighty Nine dollars and Seventy Eight cents ($688,789.78) against the Subject Property. The special assessment shall be deemed adopted on the date this Agreement has been signed by all parties. The assessment shall be spread without deferment over a seven (7) year period in equal annual installments, together with interest of four and two tenths percent (4.2%) per year on the unpaid balance. The first installment shall be payable with taxes paid in 2023. 2. WAIVER. Property Owner, its successors and assigns, waives any and all procedural and substantive objections to the Public Improvements and special assessment, including but not limited to hearing requirements and any claim that the assessment exceeds the benefit to the Subject Property. Property Owner waives any appeal rights otherwise available pursuant to Minn. Stat. § 429.081. 3. RELEASE. Property Owner, its successors and assigns, hereby unconditionally releases and forever discharges the City, its elected officials, employees, agents and insurers from any and all claims and causes of action of whatever kind or nature that is in any way connected with or related to the Public Improvements and the City’s sewer and water systems, including mapping errors. 4. BINDING EFFECT; RECORDING. This Agreement shall be binding upon Property Owner and its successors and assigns. This Agreement shall run with the land and may be recorded against the title to the Subject Property. [Remainder of page is intentionally left blank. Signature pages follow.] 3 221574v4 CITY OF OTSEGO BY: ___________________________ Jessica L. Stockamp, Mayor AND: ____________________________ Audra Etzel, City Clerk STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this ________ day of __________________, 2022, by Jessica L. Stockamp and Audra Etzel, 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 4 221574v4 OWNER: ENDEAVOR INVESTMENTS XII, LLC BY: ______________________________ Its STATE OF MINNESOTA ) )ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ________ day of _________________, 2022, by _____________________________, the ____________________ of Endeavor Investments XII, LLC, a Delaware limited liability company, on behalf of said entity. _________________________________ NOTARY PUBLIC THIS INSTRUMENT WAS DRAFTED BY: Campbell Knutson, Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 DSK/smt 5 221574v4 EXHIBIT A Lot 1, Block 1, and Outlot A, Jacobs Plat, Wright County, Minnesota, according to the recorded plat thereof.