RES 2022-47 Approving a Development Contract for Interstate OtsegoCITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2022-47
APPROVING A DEVELOPMENT CONTRACT FOR
INTERSTATE OTSEGO
WHEREAS, Kadler Industrial, LLC (the "developer") is proposing platting of the Interstate Otsego final plat
and development of Lot 1, Block 1, Interstate Otsego; and
WHEREAS, a final plat and an Interim User Permit for the development 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 developerto 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 Kadler Industrial, 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.
ADOPTED by the City Council of the City of Otsego this 9th day of May, 2022.
MOTION BY: Moores
SECONDED BY. Dahl
IN FAVOR: Stockamp, Dahl, Darkenwald, Goede, and Moores
OPPOSED: none
CITY OF OTSEGO
• • •
ATTEST:
Audra Ette, City Clerk
z
CONTRACT dated
(resewed for recording information)
DEVELOPMENT CONTRACT
(Developer Installed Improvements)
INTERSTATE OTSEGO
2022, by and between the CITY OF OTSEGO, a
Minnesota municipal corporation ("City"), and KADLER INDUSTRIAL LLC, a Minnesota limited liability
company (the "Developer")together with the City, sometimes hereinafter collectively referred to as
the "Parties".
1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a plat
for INTERSTATE OTSEGO (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 South Half of the Northeast Quarter of Section 27, Township 121, Range 24, 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" (as defined in Section 29 below) required from
the Developer, and cause the Plat to be recorded with the Wright County Recorder within 100 days after
the City Council approves the final Plat ("Plat Approval").
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
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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
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. 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.
5. 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:
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
Plan G — Kadler Avenue Reconstruction Plan
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6. IMPROVEMENTS. The Developer shall install and pay for the following public
improvements (collectively, the "Improvements"
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
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
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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
constructed" plans and an electronic file of the "as -constructed" plans in an AutoCAD .DWG file or a .DXF
fileI 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.
7. 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 Improvements identified in Paragraph 8 above.
8. 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
H. City of Otsego for Building Permits, Retaining Walls, Irrigation
I. MDH for water permits
J. MPCA for sewer extension
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9. 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.
10. TIME OF PERFORMANCE. The Developer shall install all required Improvements by
December 31, 2022.
11. STREETS. The Developer agrees to maintain the area of Kadler Avenue under construction
to allow access for 7524 Kadler Avenue 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 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.
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.
12. 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.
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13. 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 costs 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.
14. GRADING. The Plat shall be graded in accordance with the approved Grading and Erosion
Control Plan, Plan "B" and Plan "G". Plan B and G shall conform to City of Otsego specifications. Within
thirty (30) days after completion of the grading and before the City approves the required building permits,
the Developer shall provide the City with an "as -built" survey of the grading plan certified by a registered
land surveyor or engineer (the "As -Built Survey") that all storm water treatment/infiltration basins and
swales, have been constructed on public easements or land owned by the City. The As -Built Survey 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
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until the approved As -Built Survey is on file with the City and all erosion control measures are in place as
determined by the City Engineer.
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 Grading and Erosion Control Plan and
the submittal of the As -Built Survey. If the final Grading and Erosion Control Plan and As -Built Survey
are 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.
The certified As -Built Survey must be submitted and approved for commercial, industrial or
institutional developments prior to issuance of a building permit.
15. 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.
16. 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.
17. LATERAL STORM SEWER, The Developer shall post a security for lateral storm sewer
in the amount of $489,985.00 which is due upon final Plat Approval.
The Developer must install a 36 inch storm culvert under Kadler Avenue at the Creek Crossing.
This is considered part of the City's trunk storm sewer system and the City shall provide a credit to the
Developer for the cost of this pipe and installation in the amount of $27,855.00.
The Developer shall pay a cash fee in the amount of $32,278.65 for the Trunk Storm Water
Management Impact Fee due upon final Plat Approval which is calculated as follows:
15.09 Net Acres X $3,985/Net Acre - $27,855.00 Credit = $32,278.65
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18. 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 ow ku6 8 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. The Developer shall post a security in the amount of $151,303.00 for Lateral and Trunk Sanitary
Sewer which is due upon final Plat Approval.
The Developer must install a 15 inch sanitary sewer pipe and three (3) manholes along Kadler
Avenue with the development of Interstate Otsego. This is considered trunk sanitary sewer and part of
the City's Master Sewer Plan. This pipe is necessary to provide future connections across Kadler
Avenue. The City shall provide a credit to the Developer for the cost of the pipe, manholes and
installation in the amount of $77,176.50.
The Developer shall pay a cash fee in the amount of $75,194.78 for the Sewer Availability Charge
("SAC") at the time of Plat Approval which is calculated as follows:
15.09 Gr Ac X 3.5 RECs/Gr Ac X 2,885/REC — $77,176.50 Credit = $75,194.78
19. LATERAL AND TRUNK WATERMAIN. The Developer shall post a security in the
amount of $97,343.00 for the installation of lateral and trunk watermain and connection. The Developer
shall pay a cash fee in the amount of $106,369.41 for the Water Availability Charge ("WAC") at the time of
Plat Approval which is calculated as follows:
15.09 Gr Ac X 3.5 RECs/Gr Ac X $2,014.00/REC = $106,369.41
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.
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21. CONSTRUCTION ACCESS. Construction traffic access, ingress and egress for grading,
public utility construction, and public street construction is restricted to access the subdivision as approved
by the City Engineer.
22. WETLAND, STREET, AND TRAFFIC CONTROL SIGNS. The Developer shall pay to the
City $8,750.00 for installation of wetland, street, and traffic control signs. The fee is calculated as follows:
35 signs X 250.00/Sign = $8,750.00.
23. LANDSCAPING. Landscaping shall be installed in accordance with the approved
Landscape Plan. The Developer shall post a $27,084.00 landscaping security at the time of final Plat
Approval to ensure that the landscaping is installed in accordance with the approved Landscape Plan.
The Developer shall revise the Landscape Plan prior to final Plat Approval to provide for minimum
eight -foot evergreen trees surrounding the north and west perimeter of the outdoor storage, subject to
review and approval of the Zoning Administrator.
24. WETLAND REPLACEMENT OR MITIGATION. Before the City signs the final Plat, the
Developer shall post a $68,668.16 security for wetland mitigation ("Wetland Mitigation Security"). This
Wetland Mitigation Security may be in the form of a letter of credit separate from the primary development
security or in the form of anon -interest bearing cash escrow with the City.
25. 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. Before the City signs the final Plat, the Developer shall provide to the City a Warranty Deed
transferring title of Outlot A, free and clear of any and all encumbrances, including but not
limited to all Outlots for stormwater basins, wetlands, and wetland buffers.
C. The Developer shall revise the Kadler Avenue plans (construction and cross sections) prior to
final Plat Approval to indicate the location of the access and buildings on the property to the
east of the subject site.
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D. The Developer shall revise the Site Plan prior to final Plat Approval to indicate the surface of the
outdoor storage area, subject to review and approval of the City Engineer.
E. Any outdoor storage of waste and recycling containers shall comply with Section 11-18-4.0 of
the Zoning Ordinance, subject to review and approval of the Zoning Administrator.
F. All signs shall comply with Chapter 37 of the Zoning Ordinance and shall require a sign permit
approved by the Zoning Administrator prior to installation.
G. Proposed fencing shall comply with Section 11-19-4.H of the Zoning Ordinance and requires
approval of a fence permit by the Zoning Administrator prior to construction.
H. The Developer shall submit a plan detailing the type, location, and height of all proposed
exterior lighting in compliance with Section 11-16-6 of the Zoning Ordinance, subject to review
and approval of the Zoning Administrator.
The design and construction of the Interstate Otsego —Dakota Supply Group site development
plan shall be subject to review and approval of the City Engineer.
J. Right -of -Way dedication and design and construction plans for Kadler Avenue shall be subject
to review by the City Engineer.
K. The Developer shall be responsible for the cost and construction of Kadler Avenue, subject to
review and approval of the City Engineer.
L. All stormwater management plans shall be subject to review and approval of the City Engineer.
M. The Developer shall pay a stormwater Impact Fee for Otsego Creek in accordance with the fee
schedule at the time of final Plat Approval.
N. All utility plans are subject to review and approval of the City Engineer.
O. The Developer shall pay utility availability charges in accordance with the fee schedule in effect
at the time of final Plat Approval.
P. All drainage and utility easements shall be subject to review and approval of the City Engineer.
Q. Prior to City Council approval of the final Plat, the Developer shall furnish a boundary survey of
the proposed property to be platted ("Boundary Survey") with all property corner monumentation
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in place and marked with lath and a flag. Any encroachments on or adjacent to the property
shall be noted on the Boundary Survey, The Developer's land surveyor shall certify on the
Boundary Survey that all irons have been set following site grading and utility and street
construction. In addition, the Boundary Survey must also include a certification that all irons for
a specc lot have either been found or set prior to the issuance of a building permit for that lot.
R. 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.
S. 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.
26. 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 (304) 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
(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
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received by the City.
The escrow and fee account shall also include estimated fees for legal expenses actually
incurred (with excess funds, if any, returned to Developer as indicated in this Contract), City Administrative
Fee (a flat fee due upon execution of this Contract), Trunk Water and Sewer Access Fees (a flat fee due
upon execution of this Contract), Park and Trail Dedication Fees (a flat fee due upon execution of this
Contract), and shall be as stated by the Financial Summary.
This escrow amount shall be submitted to the City prior to the City executing this 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 this Contract. 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.
27. SECURITY. To ensure compliance with the terms of this Contract, and construction of all
Improvements, and satisfaction of all other obligations, the Developer shall furnish the City with a cash
escrow or Irrevocable Standby Letter of Credit (the "Security") with automatic renewal provisions in the
amount as required under this Contract. The security amount shall be one hundred twenty five (125)
percent of the City Engineer's estimated cost of all Improvements and/or private improvements required by
the Subdivision Ordinance or Zoning Ordinance, The Developer shall provide an additional security equal to
six and one-half (6.5%) of the estimated cost of the required public and/or private improvements for use by
the City for the purpose of assuming responsibility for design, bidding, and construction administration of the
required improvement in the event of a default by the Developer as provided for by 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
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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 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 in Section 13 of this Contract.
This Security shall be submitted to the City prior to execution of this 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 this Contract. Upon completion of the work contemplated hereunder and expiration
of the warranty period, the remaining Security shall be promptly released to Developer, except that the
Warranty Security may be retained by the City until the applicable warranty periods have expired.
28. SUMMARY OF SECURITY REQUIREMENTS
above is
calculated as follows:
CONSTRUCTION COSTS:
A. Sanitary Sewer —Lateral and Trunk
B. Watermain —Lateral and Trunk
C. Storm Sewer -Lateral
D. Streets
CONSTRUCTION SUB -TOTAL
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The amount of the security described
$151,303.00
97,343.00
489,985.00
501 481.00
$1,240,112.00
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OTHER COSTS:
A. Site Grading, Erosion & Sediment Control & Wetland Protection $45,270.00
B. Engineering & Surveying Construction Services (6.5) 80,607.28
C. Landscaping 27,084.00
D. Wetland Replacement 68,668616
E. Retaining Walls (constructed adjacent to
public property or public rights -of -way) 135,200000
OTHER COSTS SUB -TOTAL $356,829.44
TOTAL — SUBTOTAL $1,596,941.44
TOTAL IRREVOCABLE LETTER OF CREDIT $119961176.80
FOR SECURITY (125% OF SUBTOTAL
ESCROW
A. City Legal Expenses (Est. 1.0% of $1,240,112.00) $12,401.12
B. City Construction Observation (Est. 8.0% of $1,240,112.00) 99,208.96
C. GIS Data Entry Fee $250.00
ESCROW TOTAL $111 ;860.08
This breakdown is not a restriction on the use of the Security.
29. 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 $1,240,112.00)
B. Trunk Sewer Availability Charge (SAC)
C. Storm Water Management Impact Fee
D. Trunk Water Availability Charge (WAC)
E. Wetland, Street & Traffic Control Signs
F. Wetland Delineation Review
TOTAL CASH REQUIREMENTS
$12,401.12
75,194.78
321278065
1061369041
8,750.00
2.000.00
$236,993.96
30. 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 30, for a period of one (1) year. The warranty period for streets is two (2) years as specified in
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this Contract. The warranty period for underground utilities is two (2) 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 28 of this Contract shall be retained as warranty security calculated as follows.
DEVELOPMENT WARRANTY LETTER OF CREDIT
A. Sanitary Sewer
B. Watermain
C. Storm Sewer
D. Streets
E. Erosion & Sedimentation Control
TOTAL WARRANTY LETTER OF CREDIT
31. RESPONSIBILITY FOR COSTS.
$22,695.45
14,601.45
731497075
521800000
2 263.50
$165,858.15
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 Plat Approval, 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
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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
hCI lt 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.
32. 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.
221219v14A Interstate Otsego
33. 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 the Improvements, the Developer
assumes all liability and costs resulting in delays in completion of the Improvements and
damage to the 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.
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221219v14A Interstate Otsego
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 responsibties 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.
J. 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
unAer 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
as follows:
The minimum amounts of insurance shall be
221219v14A Interstate Otsego
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 (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 Certificates of Insurance shall contain a
provision that commercial 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.
fL•7
221219v14A Interstate Otsego
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 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 ar 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 of retaining walls, 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
20
221219v14A Interstate Otsego
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
contracts for development or use of those lots without the approval or consent of the Developer
or other lot owners in the Development. Private contracts 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.
34. NOTICES. Required notices to the Developer shall be in writing, and shall be either hand
delivered to the Developer ATTN: Lonnie L. Provencher, or mailed to the Developer by certified mail at
the following address: 6390 Carlson Drive, Eden Prairie, Minnesota 55346, ATTN: Lonnie L.
Provencher. 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.]
21
221219v14A Interstate Otsego
(SEAL)
STATE OF MINNESOTA
)ss.
COUNTY OF WRIGHT
CITY OF OTSEGO
BY:
AND
Jessica L. Stockamp, Mayor
Audra Etzel, City Clerk
The foregoing instrument was acknowledged before me this day of ,
20221 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
221219v14A Interstate Otsego
DEVELOPER:
KADLER INDUSTRIAL LLC
BY:
STATE OF MINNESOTA
COUNTY OF
Its
The foregoing instrument was acknowledged before me this day of
20221 by the
Kadler Industrial LLC, a Minnesota limited liability company, on behalf of said entity.
DRAFTED BY:
CAMPBELL, KNUTSON
Professional Association
Grand Oak Office Center 1
860 Blue Gentian Road, Suite 290
Eagan, MN 55121
Telephone: 651452-5000
DSK/smt
NOTARY PUBLIC
23
of
221219v14A Interstate Otsego
FEE OWNER CONSENT
TO
DEVELOPMENT CONTRACT
OTSEGO FARMS, LAY, a Minnesota limited liability partnership, fee owners of all or part of the
subject property, the development of which is governed by the foregoing Development Contract, affirm and
consent to the provisions thereof and agree to be bound by the provisions as the same may apply to that
portion of the subject property owned by them.
Dated this day of , 2022.
OTSEGO FARMS, LLP
By:
Its:
STATE OF MINNESOTA )
)ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this
by the
Minnesota limited liability partnership, on behalf of said entity.
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
Grand Oak Office Center 1
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
351452-5000
DSK/smt
[print name]
[title]
day of , 2022,
of Otsego Farms, LLP, a
221219v14A Interstate Otsego
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
2 , by
foregoing instrument was acknowledged before me this day of ,
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
NOTARY PUBLIC
25
221219v14A Interstate Otsego
[BANK LETTERHEAD]
IRREVOCABLE LETTER OF CREDIT
TO: City of Otsego
City Hall
13400 90t' 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
26
221219v14A Interstate Otsego