RES 2022-83 Approving and Adopting Special Assessments for Lot 1, Block 2 Great River Centre of Otsego 2nd AddnCITY OF OTSEGO
WRIGHT COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2022-83
APPROVING AND ADOPTING
SPECIAL ASSESSMENTS
CN OTSEGO PROPERTIES LLC, a Minnesota 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 $325,917.08 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, a of the installments to be payable with
taxes paid in 2023 and shall bear the interest rate of 4.0% 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 Clerl< 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 24th day of October, 2022,
MOTION BY: Moores
SECONDED BY: Dahl
INFAVOR:Stockamp, Dahl, Darkenwald,
OPPOSED: none
Goede, and Moores
CITY OF OTSEGO
ATTEST:
Audra Etzel,'�ty Clerl<
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EXHIBIT A
TO
RESOLUTION
Lot 1, Blocl< 2, Great River Centre of Otsego Second Addition, 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 CN OTSEGO PROPERTIES
LLC, a Minnesota 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 $14,802.90.
D. The Property Owner requests that the City assess the Water Availability Charges
in the total amount of D14,802,90 against the Subject Property.
E. The Development Contract requires the Property Owner to pay Sewer Availability
Charges ("SAC") in the total amount of $21,204.75.
F. The Property Owner requests that the City assess the Sewer Availability Charges
("SAC") in the total amount of $215204.75 against the Subject Property.
G. The Development Contract requires the Property Owner to pay Street Light
Operation Costs in the total amount of $21,200.00.
H. The Property Owner requests that the City assess the Street Light Operation Costs
in the total amount of $21,200.00 against the Subject Property.
I. The Development Contract and Otsego City Code Section 84-6-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).
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J. The sewer connection charges with respect to development of the Subject Property
are $217,984.83 calculated in accordance with the City Code and the Property Owner requests that
the full amount of sewer comlection charges be assessed against the Subject Property,
K. The water comlection charges with respect to development of the Subject Property
are $50,724.60 calculated in accordance with the City Code and the Property Owner requests that
the full amount of water connection charges be assessed against the Subject Property.
L. The Property Owner has requested that fees in the total amount of $383,496.98 be
assessed against the Subject Property, comprised of the following elements:
Availability —Water (WAC) $14,802.90
Availability — Sewer (SAC) $21,204.75
Street Lights $21,MOM
Connection — Water $50,724.60
Connection — Sewer $217,984.83
Total $3259917.08
M. 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 Three Hundred
Twenty Five Thousand Nine Hundred Seventeen Dollars and Eight Cents ($325,917.08) 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 zero tenths percent (4.0%) 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 fiom 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
recorded against the title to the Subject Property.
[Remainder ofpage is intentionally left blank.
Signature pages follow.]
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CITY OF OTSEGO
BY:
AND:
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
, 20225 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
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STATE OF MINNESOTA
)ss.
COUNTY OF
OWNER:
CN OTSEGO PROPERTIES LLC
BY:
Its
The foregoing instrument was acknowledged before me this day of
, 2022, by , the
of CN Otsego Properties LLC, a Minnesota limited liability company, on behalf of said entity.
THIS INSTRUMENT WAS DRAFTED BY:
Campbell Knutson,
Professional Association
Grand Oalc Office Center I
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
DSK/smt
NOTARY PUBLIC
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EXHIBIT A
Lot 1, Block 2, Great River Centre of Otsego Second Addition, Wright County,
Minnesota, according to the recorded plat thereof.
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