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RES 2023-12 Approving a Development Contract for Otsego Developments AdditionCITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2023-12 APPROVING A DEVELOPMENT CONTRACT FOR OTSEGO DEVELOPMENTS ADDITION WHEREAS, Otsego Developments, LLC (the "owner") is proposing subdivision of Outlots C and D, Otsego Waterfront East Third Addition; and WHEREAS, a final plat for the development was approved on 13 February 2023 by the City Council; and WHEREAS, Section 10-10-4.A of the Subdivision 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 agreement; 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 Otsego Developments, 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. MOTION BY: Dahl SECOND BY: Moores ALL IN FAVOR: Stockamp, Dahl, Moores, and Dunlap THOSE OPPOSED: none ADOPTED by the Otsego City Council this 13th day of February, 2023a CITY OF OTSEGO Jessica L. Stockamp, M yor ATTEST: r. "'- Audra Etze1 City Clerk (resewed for• recording information) DEVELOPMENT CONTRACT (Developer Installed Improvements) OTSEGO DEVELOPMENTS ADDITION CONTRACT dated 2023, by and between the CITY OF OTSEGO, a Minnesota municipal corporation ("City"), and OTSEGO DEVELOPMENTS, LLC, a Minnesota limited liability company (the "Developer") 1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a plat for OTSEGD DEVELOPMENTS ADDITION (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: Outlots C and D, Otsego Waterfront East Third Addition, Wright County, Minnesota, according to the recorded plat thereof. 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 1 225063v6 Otsego Developments Addition 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 amulti-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 amulti-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: 2 225063v6 Otsego Developments Addition Plan A - Plat 8. IMPROVEMENTS. The Developer shall install and pay for the following: A. Setting of Iron Monuments B. Surveying and Staking The improvements shall be installed in accordance with the City subdivision ordinance. 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 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 3 225063v6 Otsego Developments Addition 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 September 30, 2023. 13. 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. 14. LATERAL TRUNK AND SANITARY SEWER. The Developer of Lot 1, Block 1 shall pay to the City the required sanitary sewer availability charges at the time a Planned Unit Development Stage Plan is approved and Site Improvement Performance Agreement is executed. The sewer availability charges shall be calculated according to Section 8-1-6-B of City Code including 3.5 RECs per gross acre for commercial, industrial, or institutional uses based on the fee schedule then in effect. The Developer shall receive a payment in the amount of $9,193.50 for one-half of the net area of the drainage and utility easement being dedicated for relocation of existing trunk sanitary sewer within the subject site calculated as follows: New Easement Dedicated: Existing Easement Vacated Total Credit: SAC Credit: 10,400sf. x $6.81/sf. x 50% _ $35,412.00 5,000sf, x $6.81/sf. x 50% _ $17,025.00 $18,387.00 $18,387.00/2 = $ 9,193.50 15. LATERAL AND TRUNK WATERMAIN. The Developer of Lot 1, Block 1 shall pay to the City the required water availability charges at the time a Planned Unit Development Stage Plan is approved and Site Improvement Performance Agreement is executed. The water availability charges shall be calculated according to Section 8-1-6-8 of City Code including 3.5 RECs per gross acre for commercial, industrial, or institutional uses based on the fee schedule then in effect. 0 225063v6 Otsego Developments Addition The Developer shall receive a payment in the amount of 9,193.50 for one-half of the net area of the drainage and utility easement being dedicated for existing trunk watermain within the subject site calculated as follows: New Easement Dedicated: Existing Easement Vacated Total Credit: WAC Credit: 101400sf0 x $6.81/sf0 x 50% _ $35,412.00 S,OOOsf. x $6.81/sf. x 50% _ $179025000 $18,387.00 $18,387.00/2 = $ 91193050 16. 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. 17. 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. 18. 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 February 13, 2023. B. The Developer shall install a five-foot wide concrete sidewalk within the subject site providing pedestrian access to 90t" Street at such time as Outlots A and/or B are final platted and developed. C. The Developer shall install afive-foot wide concrete sidewalk adjacent to Quantrelle Avenue between 90t" Street and the north plat line at such time as Outlot B is final platted. D. The Developer shall construct the right turn lane for Quantrelle Avenue with the platting of Outlot B if it is determined to be necessary by the City Engineer based on estimated traffic generated by the development and existing traffic volumes and intersection functionality at that time. 225063v6 Otsego Developments Addition E. All grading, drainage and erosion control plans shall be subject to review and approval by the City Engineer, F. All utty 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. The Developer shall grant to the City temporary drainage and utility easements over the entirety of Outlots A and B in a form approved by the City expiring at such time as Outlots A and B are platted into lots and blocks. I. The Developer shall enter into a reciprocal access and cross parking easement in a form approved by the City over Lot 1, Block 1, Outlot A, and Outlot B to be recorded concurrent with the final plat. J. The Developer shall be permitted to install the following signs, for Lot 1, Block 1, Outlot A, and Outlot B, except as may be amended by future PUD Development Stage Plan approvals. a. Free Standing Signs: (1.) One free standing sign not to exceed 320 square feet in area and a height not to exceed 70 feet or 20 feet above the centerline elevation of TH 101 measured perpendicular to the sign location, whichever is less. free standing sign not to exceed 64 square feet in area or 15 feet in height at each driveway access to 90th Street and Quantrelle Avenue. (3.) All free standing signs shall be setback 10 feet from the perimeter of property lines. b. Wall Signs: (1.) The total area of all wall signs shall not exceed 15 percent of the wall area of the principal building. (2.) The area of individual wall signs shall not exceed 100 square feet. (3.) Wall signs shall be allowed on all building elevations. 225063v6 Otsego Developments Additio❑ K. 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. L. The Developer shall provide a cash escrow for the preparation of record construction drawings, GIS, and City base map updating. This fee is $2,000.00 per lot for a total charge of $2,000.00. M. 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. 19. CONSTRUCTION ADMINISTRATION AND FEES FOR CITY SERVICES. The escrow and fee account shall 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) 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 and all financial obligations to the City satisfied. All other amounts listed as flat fees are non-refundable and available immediately for City use when posted. 7 225063v6 Otsego Developments Addition 20. SUMMARY OF SECURITY REQUIREMENTS. above is calculated as follows: ESCROW A. City Legal Expenses ($1,500 Minimum)) B. GIS Data Entry Fee ESCROW TOTAL The amount of the security described $1,500.00 2 000.00 $3,500.00 This breakdown is not a restriction on the use of the security. 21. 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: City: 22. 23. A. City Administrative ($1,500.00 Minimum) $1,500.00 TOTAL CASH REQUIREMENTS $1,500.00 DEVELOPMENT CREDITS. The following is a summary of Developer credits from the A. Trunk Sanitary Sewer B. Trunk Watermain TOTAL DEVELOPMENT CREDITS RESPONSIBILITY FOR COSTS. $9,193.00 9 193.00 $18,387.00 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, 225063v6 Otsego Developments Addition 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 attachedI 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. 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. 24. 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. 225063v6 Otsego Developments Addition 2Ox 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 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. >o 225063v6 Otsego Developments Addition 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 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: I1 225063v6 Otsego Developments Addition Commercial General Liability (or in combination with an umbrella poli(;y) $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 • $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 enAorsement 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. 12 225063v6 Otsego Developments Addition 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 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. ff�? 225063v6 Otsego Developments Addition 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. 26. 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: 7365 Kirkwood Court N #335 Maple Grove, MN 55369. 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.] 14 225063v6 Otsego Developments Addition CITY OF OTSEGO BY: (SEAL) 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 , 20231 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 15 225063v6 Otsego Developments Addition DEVELOPER: OTSEGO DEVELOPMENTS, LLC BY: STATE OF MINNESOTA ) )ss. COUNTY OF WRIGHT ) Its The foregoing instrument was acknowledged before me this day of , 2023, by Otsego Developments, LLC, the of 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: 651-452-5000 DSK/smt NOTARY PUBLIC 16 225063v6 Otsego Developments Addition MORTGAGE HOLDER CONSENT TO DEVELOPMENT CONTRACT FIRST BANK ELK RIVER, a Minnesota banking corporation, formerly known as, THE FIRST NATIONAL BANK OF ELK RIVER, which holds: 1. A mortgage executed by Otsego Developments, LLC, a Minnesota limited liability company dated October 11, 2016 and filed October 19, 2016 with the office of the County Recorder, Wright County, Minnesota as Abstract Document No, Al327512; 2. Modification of Mortgage filed May 7, 2018 with the office of the County Recorder, Wright County, Minnesota as Abstract Document No, A1369567; 3. Modification of Mortgage filed May 6, 2019 with the office of the County Recorder, Wright County, Minnesota as Abstract Document No. A1394961; 4. Modification of Mortgage filed May 21, 2020 with the office of the County Recorder, Wright County, Minnesota as Abstract Document No. A1427230; 5. Modification of Mortgage filed May 24, 2021 with the office of the County Recorder, Wright County, Minnesota as Abstract Document No. A1471269; 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 , 2023. (Remainder of page is intentionally left blank. Signature page is to follow.] 17 225063v6 Otsego Developments Addition 2023, by the First Bank Elk River, a Minnesota banking corporation, River, 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 651452-5000 DSK/smt FIRST BANK ELK RIVER By: STATE OF MINNESOTA ) )ss. COUNTY OF ) Its [print name] [title] The foregoing instrument was acknowledged before me this day of , of formerly known as, The First National Bank of Elk NOTARY PUBLIC 18 225063v6 Otsego Developments Addition [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, 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 19 225063v6 Otsego Developments Addition