RES 2022-44 Resolution Authorizing the Execution of an Amended and Restated Development Agreement, and Two Assignments of Tax Increment Notes, and Resinding RES 2022-15EXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE
CITY OF OTSEGO, MINNESOTA
HELD: May 9, 2022
Pursuant to due call and notice thereof, a regular or special meeting of the City Council
of the City of Otsego, Wright County, Minnesota, was duly called and held at the City Hall in
said City on May 9, 2022, at 7:00 p.m.
The following members were present: Stockamp, Dahl, Moores, and Goede
the following were absent: none
Member Dahl
adoption:
CM Darlcenwald abstained.
introduced the following resolution and moved its
RESOLUTION 2022-44
RESOLUTION AUTHORIZING THE EXECUTION OF AN AMENDED
AND RESTATED DEVELOPMENT AGREEMENT, AND TWO
ASSIGNMENTS OF TAX INCREMENT NOTES, AND RESCINDING
RESOLUTION NO.2022-15
A. WHEREAS, the City of Otsego, Minnesota (the "City"), Otsego Apartments,
LLC, a Minnesota limited liability company (the "Developer"), and Otsego Mini Storage, LLC, a
Minnesota limited liability company ("OMS"), entered into a Development Agreement, dated as
of January 28, 2019 (the "Development Agreement"), in connection with the construction of a
97-unit multifamily rental apartment project and the construction of an approximately 44,000
square foot commercial mini -storage facility (the "Phase 1 Project"), and the construction of a
67-unit multifamily rental apartment project (the "Phase 2 Project", and together with the Phase
1 Project, the "Project"), each to be constructed by the Developer and located in the City; and
B. WHEREAS, the City, OMS, Otsego Apartments II, LLC, a Minnesota limited
liability company ("OA2"), and the Developer have agreed to amend and restate the
Development Agreement in its entirety (the "Amended Development Agreement") to account
for, among other things, the undertaking of OA2 to construct the Phase II Project; and
C. WHEREAS, the City issued Tax Increment Revenue Note A (Otsego Apartments
Project), in the original principal amount of $1,684,685.00, and Tax Increment Revenue Note B
(Otsego Apartments Project), in the original principal amount of $1,250,000.00 (collectively, the
"Tax Increment Notes"), and such Tax Increment Notes are currently held by the Developer; and
D. WHEREAS, in connection with the Amended Development Agreement, the
Developer proposes to assign the Tax Increment Notes to OA2, pursuant to an Assignment of
TIF Notes (the "Assignment to OA2");
E. WHEREAS, in order to finance the construction of the Phase II Project, Wings
Financial Credit Union, a Minnesota credit union (the "Lender"), is requiring that OA2 assign the
Tax Increment Notes to the Lender, pursuant to an Assignment of Tax Increment Revenue Notes
(the "Assignment to Wings", and together, with the Assignment to OA2, the "Assignments"); and
F. WHEREAS, at the regular meeting of the City Council (the "City Council") held
on January 24, 2022, the City Council adopted Resolution No. 2022-15, entitled "Resolution
Authorizing Execution of a First Amendment to Development Agreement" (the "Resolution"); and
G. WHEREAS, subsequent to the approval of the Resolution, the First Amendment to
Development Agreement was not executed by the Developer or OMS and the parties now wish to
enter into the Amended Development Agreement; and
H. WHEREAS, a draft of the Amended Development Agreement and the Assignments
have been submitted to the City Council for approval.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Otsego,
Minnesota, as follows:
1. The City Council hereby approves the Amended Development Agreement and the
Assignments in substantially the forms submitted, and the Mayor and City Administrator are
hereby authorized and directed to execute the Amended Development Agreement and the
Assignments on behalf of the City.
2. The City Council hereby rescinds the Resolution.
3. The approval hereby given to the Assignments and the Amended Development
Agreement includes approval of such additional details therein as may be necessary and
appropriate and such modifications thereof, deletions therefrom and additions thereto as may be
necessary and appropriate and approved by the City officials authorized by this resolution to
execute the Assignments and the Amended Development Agreement. The execution of the
Assignments and the Amended Development Agreement by the appropriate officer or officers of
the City shall be conclusive evidence of the approval of the Assignments and the Amended
Development Agreement in accordance with the terms hereof. In the absence of the Mayor or the
City Administrator, any document authorized by this resolution to be executed may be executed
by an acting or duly designated official.
4. All terms not defined herein shall have the meanings assigned to them in the
Amended Development Agreement, or if not defined therein, the Assignments.
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The motion for adoption of the foregoing resolution was duly seconded by member
Stockamp and, after full discussion thereof, and upon a vote being taken thereof, the
following voted in favor thereof: Stockamp, Dahl, Goede and Moores
and the following voted against same: none
CM Darkenwald Abstained.
Adopted this 9t1i day of May, 2022.
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•
Attest:
City Administrator al Finance Director
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STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF OTSEGO
I, the undersigned, being the duly qualified and acting City Administrator and Finance
Director of the City of Otsego, Minnesota, DO HEREBY CERTIFY that I have carefully compared
the attached and foregoing extract of minutes with the original minutes of a meeting of the City
Council of the City held on the date therein indicated, which are on file and of record in my office,
and the same is a full, true and complete transcript therefrom insofar as the same relates to a
Resolution Authorizing the Execution of an Amended and Restated Development Agreement, and
Two Assignments of Tax Increment Notes, and Rescinding Resolution No. 2022-15.
WITNESS my hand as such Administrator of the City Council of the City of Otsego,
Minnesota this day of May, 2022.
Administrator an�`Finance Director
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73314907v2