RES 2022-50 Approving and Adopting Special AssessmentsCITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2022-50
APPROVING AND ADOPTING
SPECIAL ASSESSMENTS
ENDEAVOR INVESTMENTS XI1, 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.
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ADOPTED by the City Council of the City of Otsego this 9th day of May, 2022.
MOTION BY: Moores
SECONDED BY: Dahl
INFAVOR: Stockamp, Dahl, Darkenwald, Goede, and Moores
OPPOSED: none
CITY OF OTSEGO
ATTEST:
UL
Audra Etzef` City Clerk
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221592v2
EXHIBIT A
TO
RESOLUTION
Lot 11 Block 1, and OUtlot A, Jacobs Plat, Wright County, Minnesota, according to the
recorded plat thereof.
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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 $425911.89 in SAC ($209,422.15 - $1669510.26 =
$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.
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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)
Availability — Sewer (SAC)
Connection — Water
Connection — Sewer
Total
$29,956.52
$42,911.89
$116,268.22
$4995653915
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 maybe
A
ecorded against the title to the Subject Property.
[Remainder of page is intentionally left blank.
Signature pages follow.]
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221592v2
CITY OF OTSEGO
BY:
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
Jessica L. Stockamp, Mayor
Audra Etzel, City Clerk
The foregoing instrument was acknowledged before me this day of
, 2022, by Jessica L. Stockamp and Audra Etzel, the Mayor and City Cleric
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
221592v2
STATE OF MINNESOTA )
)ss.
COUNTY OF )
The foregoing instrument was
, 2022, by
OWNER:
ENDEAVOR INVESTMENTS XII, LLC
BY:
Its
acknowledged before me this
the
of Endeavor Investments XII, LLC, a Delaware limited liability company, on behalf of said
entity.
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
NOTARY PUBLIC
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221592v2
EXHIBIT A
Lot 15 Block 1, and Outlot A, Jacobs Plat, Wright County, Minnesota, according to
the recorded plat thereof.
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