RES 2023-37 Approving a Site Improvement Performance Agreement for Lot 1, Block 1 MRD Commercial Park Second AddnCITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2023-37
APPROVING A SITE IMPROVEMENT PERFORMANCE AGREEMENT FOR
LOT 1, BLOCK 1 MRD COMMERCIAL PARK SECOND ADDITION
WHEREAS, Java Otsego Coffee, LLC (the "developer) is proposing development of Lot 1, Blocl< 1, MRD
Commercial Parl<Second Addition; and
WHEREAS, a Planned Unit Development -Conditional Use Permit, Conditional Use Permit, and Site and
Building Plans for the development were approved on 22 May 2023 by the City Council; and
WHEREAS, Section 11-9-7 of the Zoning Ordinance requires the developer to enter into a Site
Improvement Performance Agreement 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 Site Improvement Performance
Agreement,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. The Site Improvement Performance Agreement attached hereto between the City of Otsego and
Java Otsego Coffee, LLC is hereby approved in form subject to modification of fees, charges, and
securities as approved by City staff.
2. The Mayor and City Clerl< are hereby authorized to execute th'e Site Improvement Performance
Agreement on behalf of the City of Otsego.
ADOPTED by the City Council of the City of Otsego this 22"d day of May 2023,
MOTION BY: Dahl
SECONDED BY:Moores
IN FAVOR: Stockamp,
OPPOSED: none
Dahl, Dunlap, and Moores
F�
CITY OF OTSEGO
Jessica L. Stockamp, Mayor 119
-., C'� rATTEST:
Audra Etze , City Clerk
(reserved for recording i��formation)
SITE IMPROVEMENT PERFORMANCE
AGREEMENT
(LOT], BLOCK], MRD COMMERCIAL PARK SECOND ADDITION)
THIS SITE IMPROVEMENT PERFORMANCE AGREEMENT ("Agreement") dated
2023, by and between the CITY OF OTSEGO, a Minnesota municipal corporation
("City") and JAVA OTSEGO COFFEE LLC, a Minnesota limited liability company (the "Developer").
1. BACKGROUND.
A. The Developer has submitted to the City a site plan and conditional use permit
application for property in the City of Otsego, Minnesota, legally described as Lot 1, Block 1, MRD
Commercial Park Second Addition, Wright County, Minnesota according to the recorded plat thereof
(hereinafter referred to as the "Subject Property").
B. The development of the above described property includes the construction of a 1,740
square foot coffee shop, with an outdoor patio, and drive through amenity.
2. CONDITIONS OF APPROVAL. This Agreement is a condition of City site plan approval and
will be recorded against the Subject Property.
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225703v3 Lot 1, Block 1, MRD Commercial Park 2"d Addition
3. PLANS. The Subject Property shall be developed in accordance with the following plans
which are on file with the City. The plans shall not be attached to this Agreement. If the plans vary from the
written terms of this Agreement, the written terms shall control. The plans are:
Plan A —Site Plan
Plan B —Grading and Drainage and Erosion Control Plan
Plan C —Plans and Specifications for Public Improvements
Plan D —Utility Plan
Plan E —Landscape Plan
Plan F —New Building Floor Plan
Plan G —New Building Elevations Plan
Plan H —Lighting Photometric Plan
No work can occur outside of the areas indicated on the plans without modifying this
Agreement or obtaining a separate grading permit.
4. IMPROVEMENTS. The Developer shall install and pay for the following:
A. Sanitary Sewer System
B. Water System
C. Storm Sewer System
D. Concrete Curb and Gutter
E. Site Grading, Stormwater Treatment/Infiltration Basins, and Erosion Control
F. Underground Utilities
G. Setting of Iron Monuments
H. Surveying and Staking
I. Sidewalks
J, Retaining Walls
K. Landscaping
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225703v3
Lot 1, Block 1, MRD Commercial Park 2"d Addition
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 engineer is responsible for design changes
and contract administration between the Developer and the Developer's contractor. The Developer or its
engineer shall schedule apre-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 deliver to
the City a complete set of reproducible "as -constructed" plans and an electronic file of the "as -constructed"
plans in an AutoCAD .DWG file or a ,DXF file, 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.
5. 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.
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225703v3 Lot 1, Block I, MRD Commercial Park 2"`' Addition
6. PERMITS. The Developer shall obtain or require its contractors and subcontractors to obtain
alI 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
7. 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.
8. TIME OF PERFORMANCE. The Developer shall install all required public improvements by
December 31, 2023.
9. 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.
10. 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 such additional requirements are needed for erosion control in the reasonable
determination of the City. 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 Citys current seeding
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225703v3 Lot 1, Block ], MRD Commercial Park 2°d Addition
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.
Except in emergency situations, the City shall provide Developer with at least ten (10) days written notice
prior to taking any action on behalf of or at the cost of Developer. If the City completes any such work on
behalf of the Developer the City shall provide Developer with a detailed invoice of the actual costs incurred
by the City in completing such work . If the Developer does not reimburse the City for any cost the City
incurred for such work within twenty (20) days after receipt thereof, 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.
11. GRADING. The plat shall be graded in accordance with the approved grading development
and erosion control plan, Plan "B". The plan shall conform to City of Otsego specifications. Within thirty (30)
days after completion of the grading and before the City approve the individual building permit the Developer
shall provide the City with an "as -constructed" grading plan certified by a registered land surveyor or engineer
that all storm water treatment/infiltration basins and swales , have been constructed on public easements or
lanA owned by the (ity. The "as -constructed" plan 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 permit until the approved certified grading plan is on file
with the City and all erosion control measures are in place as determined by the City Engineer. The soils
observation and testing report, including referenced development phases and lot descriptions, shall be
submitted to the Building Official for review prior to the issuance of building permits.
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225703v3 Lot 1, Block 1, MI2D Commercial Park 2"'' Addition
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 erosion control and grading requirements
and the submittal of an as -built certificate of survey. 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 Developer.
A certified as -built building pad survey must be submitted and approved for commercial, industrial or
institutional developments prior to issuance of a building permit.
The Developer shall post a security for site grading, erosion and sediment control, and wetland
protection in the amount of $2,070.00 which is due upon execution of this Site Improvement Performance
Agreement.
12. 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.
13. 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.
14. LATERAL STORM SEWER. The Developer shall post a security for lateral storm sewer in
the amount of $10,000.00 which is due upon execution of this Site Improvement Performance Agreement.
The Developer shall pay. a cash fee in the amount of $5,706.99 for the Storm Water Impact
Fee which is calculated as follows:
0.69 Gross Acres X $8,271/Gross Acre = $5,706.99
15. LATERAL TRUNK AND SANITARY SEWER. The Developer shall post a security for lateral
sanitary sewer in the amount of $30,260.00 which is due upon execution of this Site Improvement
Performance Agreement. 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
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225703v3 Lot 1, Block 1, MI2D Commercial Park 2"`'Addition
Section 8-1-&B of City Code including 3.5 RECs per gross acre for commercial, industrial, or institutional
uses.
The Developer shall pay a cash fee in the amount of $7,378.58 for the Sewer Availability Charge
) upon execution of this Site Improvement Performance Agreement which is calculated as follows:
2.42 REC X $3,049/REC = $7,378.58
16. LATERAL AND TRUNK WATERMAIN. 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.
The Developer shall pay a cash fee in the amount of $5,149.76 for the Water Availability Charge
("WAC") upon execution of this Site Improvement Performance Agreement which is calculated as follows:
2.42 REC X $2,128/REC = $5,149.76
17. PARK DEDICATION. The Developer shall pay a cash contribution in the amount of
$12,608.59 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:
0.69 Acres X $8,609.00 per Acre
18. 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.
19. LANDSCAPING. Landscaping shall be installed in accordance with the approved landscape
plan. The Developer shall post a $14,667.00 landscaping security upon execution of this Site Improvement
Performance Agreement to ensure that the landscaping is installed in accordance with the approved plan.
Consistent with the approved landscape plan, the Developer shall ensure that the existing trees
preserved within the Subject Property shall be in good health and condition or shall be replaced with the
same or similar species, subject to approval of the Zoning Administrator.
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225703v3 Lot 1, Block 1, MI2D Commercial Park 2"`' Addition
The height of the proposed evergreen trees shown on the landscape plan shall be a minimum of eight
(8) feet in height.
The Developer shall install an in -ground irrigation system for all yards and planting areas wn Lot
1, Block 1, in compliance with Section 5-2-3.C.2 of the City Code.
20. SPECIAL PROVISIONS. The following special provisions shall apply to this Agreement:
A. All grading, drainage and erosion control plans shall be subject to review and approval by the City
Engineer.
B. The Developer shall pay a cash fee in lieu of land to satisfy park dedication requirements for Lot
1, Block 1 in accordance with the Subdivision Ordinance and the current fee schedule in effect at
the time of execution of this Site Improvement Performance Agreement.
C. All utility plans shall be subject to review and approval of the City Engineer.
D. The Developer shall pay Utility Availability Charges for Lot 1, Block 1, in accordance with the City
All drainage and utility easements shall be subject to review and approval of the City Engineer.
E. The Developer shall enter into an ingress/egress and cross parking easement agreement with
the abutting property owner of Lot 2, Block 1,MRD Commercial Park Second Addition in a
recordable form reasonably approved by the City simultaneously with the recording of this Site
Improvement Performance Agreement.
F. Construction specifications for the off-street parking are subject to review and approval of the City
Engineer.
G. The Developer shall submit an exterior lighting plan including photometric measurements of light
intensity and indicating the type, location, and height of all exterior light fixtures compliant with
Section 10-16-10 of the Zoning Ordinance prior to approval of a building permit, subject to review
and approval of the Zoning Administrator.
H. Architectural details of the waste container enclosure shall comply with the requirements of
Section 11-184.c of the Zoning Ordinance, subject to review and approval of the Zoning
Administrator.
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225703v3 Lot 1, Block 1, NIRD Commercial Park 2"d Addition
All signs shall comply with Section 11-37-5. C of the Zoning Ordinance and require issuance of a
sign permit approved by the Zoning Administrator prior to installation.
2 I M 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 (3°/0) 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 received by the City.
The escrow and fee account shall also 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), Trunk Water and Sewer Access Fees (a flat fee due
upon execution of this Agreement), Park and Trail Dedication Fees (a flat fee due upon execution of this
Agreement), and shall be 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,
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225703v3 Lot 1, Block I, MRD Commercial Park 2"`' Addition
all financial obligations to the City satisfied, and the required as constructed" plans have been received by
thKO City.
All other amounts listed as flat fees are non-refundable and available immediately for City use
when posted.
22. SECURITY. To ensure compliance with the terms of this Contract, and construction of all
public improvements, and satisfaction of all other obligations, the Developer shall furnish the City with a cash
escrow or Irrevocable Standby Letter of Credit 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 public 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
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 public improvements are not completed at least thirty (30) days prior to
the expiration of the security, the City may also draw it down upon five (5) business days written notice.. If
the security is drawn down, the proceeds shall be used only 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
in
225703v3
Lot 1, Block 1, MRD Commercial Park 2"d Addition
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 elsewhere in this Contract.
This security amount shall be submitted to the City prior to execution 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 of the Contract. Upon completion of the work contemplated hereunder and
expiration of the warranty period, the remaining security shall be promptly released to Developer.
23. SUMMARY OF SECURITY REQUIREMENTS. The amount of the security described above
is calculated as follows:
CONSTRUCTION COSTS:
A. Storm Sewer -Lateral
B. Sanitary Sewer —Lateral
C. Watermain — Lateral
D. Streets and Trail Repair
CONSTRUCTION SUB -TOTAL
OTHER COSTS:
A. Site Grading, Erosion &Sediment Control &Wetland Protection
B. Engineering & Surveying Construction Services (6.5%)
C. Landscaping
OTHER COSTS SUB -TOTAL
TOTAL — SUBTOTAL
TOTAL IRREVOCABLE LETTER OF CREDIT
FOR SECURITY (125% OF SUBTOTAL
ESCROW
A. City Legal Expenses ($1,500 Minimum))
B. City Construction Administration and Utility &Street Inspection
C. GIS Data Entry Fee
ESCROW TOTAL
This breakdown is not a restriction on the use of the security.
$10, 000.00
30,MOM
25,051000
8�250.00
MINIM
$2,070.00
4,781647
14,667,.00
$21,518.47
$95,079.47
$118,849.33
$1,500.00
10,000.00
500.00
$12,000.00
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225703v3 Lot 1, Block 1, MRD Commercial Park 2°� Addition
24. 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 ($1,500.00 Minimum)
B. Trunk Sewer Availability Charge (SAC)
C. Trunk Water Availability Charge (WAC)
D. Trunk Storm Water Management Impact Fee
E. Park & Trail Dedication Fee
TOTAL CASH REQUIREMENTS
$1,500.00
7,378058
5,149,76
5,706099
5,940.21
$25,675.54
25. 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 31, for a period of one (1) year. The warranty period for streets is two (2) years as specified in
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 29 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
C. Erosion &Sedimentation Control
TOTAL WARRANTY LETTER OF CREDIT
4,539.00
3,757665
1,500.00
1,250000
103.50
;Owl
1,150.15
26. ACKNOWLEDGEMENT. The Developer acknowledges that approval of installation of the
Improvements does not constitute a guarantee by the City of any future subdivision approvals and, that the
Developer performs the work on the Subject Property at its own risk.
27. RESPONSIBILITY FOR COSTS.
A. The Developer shall pay all costs incurred by it or the City in conjunction with the
development of the Subject Property, including but not limited to legal, planning, engineering and inspection
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225703v3 Lot 1, Block 1, MRD Commercial Park 2"`' Addition
expenses incurred in connection with approval of the site plan, the preparation of this Agreement, review of
aI y other plans and documents.
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 site
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. Notwithstanding anything contained within this Section 21(B), Developer shall not be
obligated to indemnify or defend the City from and against claims based on any negligence or willful
misconduct by the City, its employees, agents or contractors, or the failure of the City to act in accordance
with City ordinances and other applicable laws.
C. The Developer shall reimburse the City for costs incurred in the enforcement of this
Agreement, 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 Agreement within thirty (30) days after receipt. Bills not paid within thirty (30) days shall accrue
interest at the rate of eight percent (80/) per year.
28. MISCELLANEOUS.
A. Third parties shall have no recourse against the City under this Agreement.
B. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this
Agreement is for any reason held invalid, such decision shall not affect the validity of the remaining portion
of this Agreement.
C. The action or inaction of the City shall not constitute a waiver or amendment to the
provisions of this Agreement. 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 Agreement shall not be a waiver or release.
D. This Agreement shall run with the land and may be recorded against the title to the
Subject Property. The Developer covenants with the City, its successors and assigns, that the Developer
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225703v3 Lot 1, Block 1, MRD Coimnercial Park 2°d Addition
has fee title to the Subject Property and/or has obtained consents to this Agreement, in the form attached
hereto, from all parties who have an interest in the Subject Property; that there are no unrecorded interests
in the Subject Property; and that the Developer will indemnify and hold the City harmless for any breach of
the foregoing covenants.
E. 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.
F. Breach of the terms of this Agreement by the Developer, including nonpayment of
billings from the City, shall be grounds for denial of building permits and certificates of occupancy, and the
halting of all work on the Subject Property.
G. The Developer represents to the City that the development complies with all City,
county, metropolitan, state, and federal laws and regulations, including but not limited to: subdivision
ordinances, zoning ordinances, and environmental regulations. If the City determines that the development
does not comply, the City may, at its option, refuse to allow construction or development work in the
development until the Developer does comply. Upon the City's demand, the Developer shall cease work
until there is compliance.
29. 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 ten (10) days in advance.
This Agreement 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 Subject Property. When the City does any such work, the City may, in addition
to its other remedies, assess the cost in whole or in part.
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225703v3 Lot 1, Block 1, MRD Commercial Park 2"`' Addition
30. 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: Attn: Mark Krogh, 879 SchCm, ffer Avenue St. Paul, MN. 55102. 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,
I
Minnesota 55330,
31. FORCE MAJEURE. Any time period for the performance by Developer of any of its
obligations hereunder (excluding payment obligations) shall be subject to and reasonably extended
by labor dispute, acts of God, natural disaster, pandemic, public emergency or shortages of fuel,
supplies, or labor, or any other cause, whether similar or dissimilar, beyond Developer's reasonable
control; or by reason of any requirement, act or omission of any public utility or others serving the
Subject Property, beyond Landlord's reasonable control.
[Remainder of page is intentionally left blank.
Signature pages follow.]
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225703v3 Lot 1, Block 1, MRD Commercial Park 2"`' 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
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225703v3 Lot 1, Block I, MRD Commercial Park 2"d Addition
DEVELOPER:
JAVA OTSEGO COFFEE LLC
By:
STATE OF
Its:
)ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
2023) by the of JAVA OTSEGO COFFEE LLC, a
Minnesota limited liability company, on behalf of said entity.
NOTARY PUBLIC
DRAFTED BY:
CAMPBELL, KNUTSON
Professional Association
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
Telephone: 651-452-5000
DSK/smt
17
225703v3 Lot 1, Block 1, NII2D Commercial Park 2"d Addition
MORTGAGE HOLDER CONSENT
TO
SITE IMPROVEMENT PERFORMANCE AGREEMENT
a ,which holds a mortgage on all or part of the property
more particularly described in the foregoing Site Improvement Performance Agreement, which mortgage is
dated and filed for record as Document No. with the
office of the County Recorder/Registrar of Titles for Dakota County, Minnesota, for good and valuable
consideration, agrees that the Agreement shall remain in full force and effect even if it forecloses on its
mortgage.
Dated this day of
STATE OF
)ss.
COUNTY OF
2023.
By:
The foregoing instrument was acknowledged before me this
by the
Bank, a
DRAFTED BY:
CAMPBELL, KNUTSON
Professional Association
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
Telephone: 651-452-5000
AMP/smt
on behalf of said
NOTARY PUBLIC
iT
2023,
of
225703v3 Lot 1, Block 1, NIItD Commercial Park 2"d Addition
[BANK LETTERHEAD]
IRREVOCABLE LETTER OF CREDIT
TO: City of Otsego
City Hall
13400 90th 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
19
225703v3 Lot 1, Block 1, Otsego Developments Addition