RES 2023-24 Approving a Development Contract for Parkview Retail 3rd AdditionCITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2023-24
APPROVING A DEVELOPMENT CONTRACT FOR
PARKVIEW RETAIL 3RD ADDITION
WHEREAS, Parl<view Partners, LLC (the "developer") is proposing development of Parl<view Retail 3�d
Addition; and
WHEREAS, a final plat for the development was approved by the City Council on 27 March 2023; 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 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 Parkview Partners, LLC
is hereby approved in form subject to modification of fees, charges, and securities as approved by
City staff.
2. The Mayor and City Clerlc are hereby authorized to execute the Development Contract on behalf of
the City of Otsego.
ADOPTED by the Otsego City Council this 27t" day of March, 2023.
MOTION BY: MOORES
SECONDED BY: GOEDE
INFAVOR: STOCKAMP, MOORES, GOEDE, DAHL, DUNLAP
OPPOSED: NONE
CITY OF OTSEGO
I'Ll' 1
ATTEST;
Audra Etzel, City Clerk
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(�eser��ed for^ recording inforrnatfon)
DEVELOPMENT CONTRACT
(Developer Installed Improvements)
PARKVIEW RETAIL 3RD ADDITION
This DEVELOPMENT CONTRACT (this "Contract") dated as of
2023,
by and between the CITY OF OTSEGO, a Minnesota municipal corporation ("City"), and PARKVIEW
PARTNERS, LLC, a Minnesota limited liability company (the "Developer").
1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a plat
for PARKVIEW RETAIL 3RD 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:
Outlot A, Parkview Retail 2nd 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 escrow 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
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satisfied: 1) this Contract has been fully executed by both parties and filed with the City Clerk, 2) the
necessary escrow has been received by the City, and 3) 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. IMPROVEMENTS. The Developer shall install and pay for the following (the
"Improvements"):
A. Setting of Iron Monuments
B. Surveying and Staking
In accordance with Minnesota Statutes 505.021, the final placement of iron monuments for all lot
corners must be completed before the applicable security, if any, is released. The Developer's surveyor
shall also submit a written notice to the City certifying that the monuments have been installed.
6. 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.
7. TIME OF PERFORMANCE. The Developer shall install all required Improvements by
September 30, 2023. -
8. 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 this Contract.
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9. LATERAL AND TRUNK SANITARY SEWER. The Developer shall pay a cash fee in the
amount of $26,785.47 for the Sewer Availability Charge ("SAC") prior to the City's release of the signed
plat which is calculated as follows:
2.51 Gr Ac X 3.5 RECs/Gr Ac X$3,049.00/REC = $26,785.47
10. LATERAL AND TRUNK WATERMAIN. The Developer shall pay a cash fee in the amount
of $18,694.48 for the Water Availability Charge ("WAC") prior to the City's release of the signed plat which
is calculated as follows:
2.51 Gr Ac X 3.5 RECS/Gr Ac X $2,128.00/Gr Ac = $18,694.48
11. SEWER CONNECTION CHARGE AND WATER CONNECTION CHARGE. The owner of
each lot 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 Certificate of Occupancy based on the fee schedule in effect at the time of application
for the Certificate of Occupancy.
12. PARK DEDICATION. The Developer shall pay a cash contribution of $21,608.59 prior to
the City's release of the signed plat in satisfaction of the City's park dedication requirements. The charge
is calculated as follows:
2.51 Gr Ac X $8,609.00/Gr Ac = $21,608.59
13. STREET LIGHT OPERATION COSTS. The Developer shall be responsible to reimburse
the City for the cost of street light installation consistent with a street lighting plan approved by the City by
paying to the City a cash fee in the amount of $5,300.00 prior to the City's release of the signed plat.
The fee is calculated as follows: one (1) street light at $5,300.00 per street light.
14. 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
March 27, 2023.
B. All grading, drainage, and erosion control issues are to be subject to review and approval of the
City Engineer.
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C. The Developer shall provide a cash contribution to the City in the amount of $10,838.58 at the
time of the City's release of the signed plat to reimburse the City for the cost of construction for
the trail on the west side of Parrish Avenue (CSAH 42) between Parkview Retail 2�d Addition
and Parrish Meadows. The fee is calculated as follows:
381.64 Linear Feet X $28.40 per Linear Foot = $10,838.58
D. Park Dedication requirements shall be satisfied as a cash fee in lieu of land as provided herein
in accordance with Section 10-8-15 of the Subdivision Ordinance.
E. The Developer shall pay a cash escrow for the preparation of record construction drawings and
City base map updating. This fee is $250.00 per lot for a total charge of $500.00.
F. 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.
15. 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 and delivery of this Contract), Trunk Water and Sewer Access Fees In flat fee
due upon execution and delivery of this Contract), Park and Trail Dedication Fees (a flat fee due upon
execution and delivery of this Contract), Street Light Maintenance and Operation Fee (a flat fee due upon
execution and delivery 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 and delivering 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 and delivery of this Contract. Any amounts for
legal and engineering not utilized from this escrow fund shall be promptly returned to the Developer when all
Improvements have been completed and all financial obligations to the City herein are satisfied.
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218333v16 Parkview Retail 3`� Addition
The parties agree that the City shall not issue building permits until all outstanding financial
obligations pursuant to this Development Contract are satisfied by the Developer.
All other amounts listed as flat fees are non-refundable and available immediately for City use
when posted.
16. ESCROW. To ensure compliance with the terms of this Contract, and construction of all
Improvements, and satisfaction of all other obligations herein, the Developer shall furnish the City with a
cash escrow in the amount as required under this Contract.
The City may draw down the escrow, on five (5) business days written notice to the Developer, for
any uncured violation of the terms of this Contract. If the required Improvements are not completed before
the date as provided herein, the City may also draw down the escrow without notice. If the escrow is
drawn down, the proceeds shall be used to cure the default.
Upon receipt of proof satisfactory to the City that the Improvements have been completed and
financial obligations to the City hereunder have been satisfied, with City approval not to be unreasonably
withheld or delayed, the escrow shall be promptly released to the Developer.
This escrow amount shall be submitted to the City prior to execution and delivery of the 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 and delivery of the Contract. Upon completion of the work
contemplated hereunder, the remaining escrow shall be promptly released to Developer.
17. SUMMARY OF ESCROW REQUIREMENTS. The amount of the escrow described above
is calculated as follows:
ESCROW
A. Professional Services
B. GIS Data Entry
ESCROW TOTAL
This breakdown is not a restriction on the use of the escrow.
$7,000.00
500.00
$7,500.00
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18. 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 and
delivering the final plat:
A. City Administrative ($1,500.00 Minimum)
B. Trunk Sewer Availability Charge (SAC)
C. Trunk Water Availability Charge (WAC)
D. Park Dedication
E. Street Lights
F. Trail Construction
TOTAL CASH REQUIREMENTS
19. RESPONSIBILITY FOR COSTS.
$1,500.00
26 785.47
18, 394A8
21, 308059
5 300.00
10,838.58
$84,727.12
A. Except as otherwise specified herein, the Developer shall pay all costs incurred by it or the City
in conjunction with the approval 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, and all costs and expenses incurred by the City in monitoring and
inspecting development of the plat as provided herein.
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, except to the extent caused by the gross negligence or intentional
misconduct of the City or its officers, employees or agents. 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 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
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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.
E. In addition to the charges referred to herein, other charges may be imposed such as but not
limited to City water connection charges, City sewer connection charges, and building permit
fees for buildings constructed in the plat.
20. 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 reasonably determined by the City, is first given written 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.
21. MISCELLANEOUS.
A. The Developer represents to the City that, to the Developer's knowledge, 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, which is not cured following written
notice to the Developer, shall be grounds for denial of building permits, including lots sold to
third parties.
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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. 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.
F. 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 and Release 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 shall be provided in the same manner and subject to the same conditions as a
Certificate of Completion and Release 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, to Developer's knowledge, 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.
G. 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
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218333v16 Parkview Retail 3'� Addition
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.
H. 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.
I. 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.
J. Should the Developer convey any lot or lots in the plat to a third party, the City and the owner of
that lot or those lots may execute a separate Site Improvement Performance Agreement or
amend this 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 plat. Private
agreements between the owners of lots within the plat for shared service or access and related
matters necessary for the efficient use of the plat 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 plat.
The City acknowledges and agrees that (a) the Developer shall only be responsible hereunder
for the construction of the Improvements, and (b) the Developer shall not be responsible for any
construction or other obligations related to the future development of the lots in the plat, which
shall be the responsibility of the developers of such lots.
22. 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
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following address: 1019 Industrial Drive South, Sauk Rapids, Minnesota 56379. 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.]
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CITY OF OTSEGO
BY:
(SEAL)
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 ,
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
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218333v16 Parkview Retail 3'� Addition
STATE OF MINNESOTA
)ss.
COUNTY OF
DEVELOPER:
PARKVIEW PARTNERS, LLC
By:
Christopher J. Rice
Its Chief Manager
The foregoing instrument was acknowledged before me this day of ,
2023) by Christopher J. Rice, the Chief Manager of PARKVIEW PARTNERS, 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: 651-452-5000
DSK/smt
NOTARY PUBLIC
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MORTGAGE HOLDER CONSENT
TO
DEVELOPMENT CONTRACT
WEST BANK, an Iowa state banking corporation, which holds:
1. A mortgage by Parkview Partners, LLC a Minnesota limited liability company, in favor of West Bank,
an Iowa state banking corporation, dated November 15, 20191 recorded November 20, 2019 as
Document No. A1411591 in the Office of the County Recorder, Wright County, Minnesota, in the
amount of $1,350,000.00;
And
2. Modification of Mortgage between Parkview Partners, LLC, a Minnesota limited liability company,
and West Bank, an Iowa state banking corporation, dated April 1, 2020, recorded April 6, 2020, as
Document No. A1422875 in the Office of the County Recorder, Wright County, Minnesota;
And
3. Modification of Mortgage between Parkview Partners, LLC, a Minnesota limited liability company,
and West Bank, an Iowa state banking corporation, dated July 24, 2020, recorded August 6, 2020,
as Document No. A1436028;
4. Modification of Mortgage between Parkview Partners, LLC, a Minnesota limited liability company,
and West Bank, an Iowa state banking corporation, dated July 15, 2022, recorded July 21, 2022, as
Document No. A1512556;
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.
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218333v16 Parkview Retail 3'� Addition
WEST BANK
By:
STATE OF )
)ss.
COUNTY OF )
Its
The foregoing instrument was acknowledged before me this
2023, by the
Iowa state banking corporation, on behalf of said entity.
NOTARY PUBLIC
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
Grand Oak Office Center 1
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
651452-5000
DSK/smt
_ [print name]
[title]
of West Bank, an
218333v16 Parlcview Retail 3'� Addition