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Item 4.2 Sunshine Addition Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 9 June 2025 PRESENTER(s) REVIEWED BY: ITEM #: City Planner Licht City Administrator/Finance Director Flaherty City Engineer Wagner City Attorney Kendall 4.2 – Sunshine Addition STRATEGIC VISION MEETS: THE CITY OF OTSEGO: Is a strong organization that is committed to leading the community through innovative communication. X Has proactively expanded infrastructure to responsibly provide core services. Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. X Is a social community with diverse housing, service options, and employment opportunities. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff recommends the City Council adopt a resolution to vacate existing drainage and utility easements, approve a final plat, a PUD Development Stage Plan, and a Development Contract. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes Yes, held by Planning Commission 19 May 2025. BACKGROUND/JUSTIFICATION: Arrow Companies, Inc. has applied to develop Outlot A, Otsego Developments Addition located at the northeast quadrant of TH 101 and 90th Street. The proposed development is a 3,495 square foot dentist office that requires consideration of vacation of existing drainage and utility easements, final plat, and a PUD Development Stage Plan that are subject to review by the Planning Commission and approval of the City Council. A public hearing was held by the Planning Commission at their meeting on 19 May 2025. Mr. Steven Fischer of Arrow Companies, Inc., was present as the applicant and agreed with the recommendations of City staff. There were no public comments and the public hearing was closed. The Planning Commission voted 7-0 to recommend approval of the proposed development. SUPPORTING DOCUMENTS ATTACHED: • Planning Report dated 14 May 2025 • Resolution 2025-25 vacating existing drainage and utility easements • Findings of Fact and Decision • Resolution 2025-26 approving a Development Contract • Development Contract POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to adopt Resolution 2025-25 vacating existing drainage and utility easements; approve a final plat and PUD Development Stage Plan for Sunshine Addition, subject to the conditions stated on the Findings of Fact and Decision as presented; and adopt Resolution 2025-26 approving a Development Contract. BUDGET INFORMATION FUNDING: BUDGETED: Fund 701 – Development Escrows N/A 3601 Thurston Avenue Anoka, MN 55303 763.231.5840 TPC@PlanningCo.com 1 PLANNING REPORT TO: Otsego Planning Commission FROM: D. Daniel Licht REPORT DATE: 14 May 2025 60-DAY DATE: 21 June 2025 RE: Otsego – Waterfront Commons; Sunshine Pediatric Dentistry TPC FILE: 101.02 BACKGROUND Arrow Companies, Inc. has submitted an application to develop Outlot A, Otsego Developments Addition located at the northeast quadrant of TH 101 and 90th Street. The proposed development is a 3,495 square foot dentist office that requires consideration of a PUD Development Stage Plan, vacation of existing drainage and utility easement, and final plat that are subject to review by the Planning Commission and approval of the City Council. The submitted plans also illustrate a 3,000 square foot expansion of the proposed building. A public hearing has been noticed for the Planning Commission meeting on 19 May 2025. Exhibits: Property Location Map Architectural plans dated 05-12-2025 (7 sheets) Civil plans dated 05.12.2025 (11 sheets) Final Plat ANALYSIS Comprehensive Plan. The 2023 Comprehensive Plan guides the subject property for commercial uses as part of a retail, service, and office district located adjacent to the TH 101 and CSAH 39 interchange. The proposed building will provide for a pediatric dentist office expanding services and expanding commercial building space within the City. The proposed land use is consistent with the Future Land Use Plan. 2 Zoning. The subject property is zoned PUD, Planned Unit District with allowed uses specified as being those permitted, conditional, and interim uses as allowed in the B-1, Retail Business District. The proposed dentist office is a permitted use within the B-1 District and PUD District. Surrounding Uses. The subject property abuts TH 101 to the west. Areas to the north, east, and south of the subject property are all within the Otsego Waterfront East PUD District. The surrounding uses consist of medical and professional offices, a child-oriented recreation use, a restaurant, and senior housing. The proposed PUD Development Stage Plan for the subject property will be complementary to existing and planned land uses within Otsego Waterfront East. Lot Requirements. The Otsego Waterfront East PUD District establishes no minimum lot area or width requirements. The suitability of the lot to accommodate the proposed development is based on the ability to comply with applicable setbacks, off-street parking, and other site design requirements. The Otsego Waterfront East PUD District establishes setbacks of 30 feet from public street rights-of-way and 10 feet from interior lot lines. The proposed development of Lot 1, Block 1 complies with the required setbacks. The submitted plans illustrate a 3,000 square foot expansion of the proposed building. The expansion encroaches into a drainage and utility easement and over a trunk watermain. The plans for the future expansion will need to be adjusted to avoid the encroachment into the drainage and utility easement or other solution approved by the City Engineer at such time as the planned expansion is to occur. The future expansion of the principal building will be subject to site and building plan review at the time the construction is proposed. Building Plans. The developer has submitted architectural plans for the proposed 3,495 square foot dental office building to be constructed on Lot 1, Block 1. Exterior Materials. The Otsego Waterfront East PUD Design Guidelines and Section 11- 17-4.D.1 of the Zoning Ordinance establish exterior finish requirements for the proposed building. The architectural plans include a schedule for the exterior elevation materials, which indicates ledgestone and glass (Grade A) materials comprise 67.1 percent of the exterior finish, with metal and wood-look (Grade B) materials used for 32.9 percent of the exterior finish. The exterior finishes and mix of materials comply with the requirements of the Zoning Ordinance. Height. Principal buildings within the Waterfront East PUD District are allowed to be up to three stories or 35 feet in height. The proposed building is a single-story structure with a height of 12.0 feet to the top of the roof and 15.5 feet to the top of the angled roof sections. The proposed building complies with the height limits of the Waterfront East PUD District. 3 The submitted plans do not indicate the location of building mechanical equipment. If mounted on the roof of the building, the mechanical units must be screened by the parapet or other measures so as not to be visible from 90th Street and Quantrelle Avenue. This requirement will need to be verified by the Zoning Administrator prior to issuance of a building permit. Access. The subject property abuts 90th Street and Quantrelle Avenue. The access the three commercial lots within the preliminary plat is shared via one driveway to 90th Street and one driveway to Quantrelle Avenue. An ingress/egress and cross parking easement has been recorded with the Otsego Developments Addition final plat. The access to 90th Street is be limited to right-in/right-out only due to the existing median within the four lane roadway. The existing access is 280 feet from Quantrelle Avenue and more than 320 feet from the northbound TH 101 entrance ramp. The access to Quantrelle Avenue is setback at least 200 feet from existing driveways onto Quantrelle Avenue. The location of both of the existing driveways complies with the spacing requirements of Section 11-21-6 of the Zoning Ordinance. A traffic study completed for the Mississippi Landings development evaluated the capacity of 90th Street and Quantrelle Avenue. The study indicated that full build out of the Waterfront East, including the subject property, would necessitate a dedicated right turn lane at the 90th Street and Quantrelle Avenue intersection. The Otsego Developments Addition final plat dedicates right-of-way for the right turn lane. The timing for construction of the right turn lane is deferred until Outlot B, Otsego Developments is final platted and would only be built if a need for the turn lane is determined at that time. Off-Street Parking. The submitted plans illustrate the 59 off-street parking spaces constructed with Phase 1 and 35 spaces to be constructed with Phase 2 for a total of 94 spaces. The Phase 1 approval included a proof-of-parking agreement for construction of five spaces east of the Phase 1 building and the submitted plans illustrate 12 additional spaces that would be constructed with the planned future expansion of the Phase 2 building. The table below outlines that the number of off-street parking spaces available within Phases 1 and 2 under the shared ingress/egress and cross parking easement complies with Section 11-21-13 of the Zoning Ordinance. Business Requirement Area Required Spaces Phase 1 Kennedy Vision 1 space/200sft. 4,060sf.19Lil’ Gym Phase 2 Dentist 3,495sf. 16 Future Expansion 3,000sf. 14 TOTAL 49 4 The off-street parking spaces are designed as nine feet wide by 20 feet in depth and the spaces abutting the sidewalk or perimeter of the parking area as 18 feet deep (with two foot overhang) accessed via 24 foot wide drive aisles in compliance with Section 11-21-7.B of the Zoning Ordinance. The parking area is shown to be surfaced with asphalt and surrounded by perimeter concrete curb as required by Section 11-21-7.C and D of the Zoning Ordinance. The construction specifications for the off-street parking area are to be subject to review and approval of the City Engineer. Sidewalks. There is an existing sidewalk abutting the south line of the subject property. The civil plans illustrate construction of a sidewalk along the front line of the proposed building. A connection along the west side of the driveway to 90th Street must be added between the sidewalk adjacent to 90th Street to the sidewalk at the front of the building to allow for public access to the proposed building and other uses within the Waterfront Commons development. Landscaping. A landscape plan has been submitted that provides for a planting turf grass and one ornamental tree. Section 11-19-2.B.2 of the Zoning Ordinance requires landscaping be installed: a. The boundary or perimeter of the proposed site at points adjoining other property. b. The immediate perimeter of the structure. c. The perimeter of parking and loading areas. Section 11-21-7.K of the Zoning Ordinance further requires that off-street parking areas be landscaped so as to be screened from view of public rights-of-way. The landscape plan must be revised to include shade and/or ornamental trees in the yard along 90th Street and west side of the driveway accessing 90th Street. Tall grasses and shrubs should also be incorporated to screen parking areas at a lower level and at the foundation of the building. The revised landscape plan is to be subject to review and approval of the Zoning Administrator. Section 5-2-3.C.2 of the City Code requires installation of in-ground irrigation for the yards and planting areas within the property, which must be indicated on the landscape plan. 5 Signs. The PUD Development Stage Plan approved for Phase 1 of Waterfront Commons established allowances for the following signs within the development: Freestanding signs: o One freestanding 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. o One freestanding sign not to exceed 64 square feet in area or 15 feet in height at each driveway access to 90th Street and Quantrelle Avenue. o All freestanding signs must be setback 10 feet from perimeter property lines. Wall signs to be mounted on the principal buildings are allowed on all four elevations to 15 percent of the wall area of the building with no individual sign larger than 100 square feet in area. The submitted plans identify a freestanding pylon sign at the southwest corner of the subject property, as well as a monument sign at the 90th Street access. The proposed pylon sign is not provided for by the initial Waterfront Commons PUD General Development Plan approval and should be removed from the plans unless supported by the Planning Commission. The architectural plans do not identify proposed wall signs. A sign permit subject to review and approval of the Zoning Administrator is required prior to placement of any signs upon the property. Exterior Lighting. Section 11-16-6 of the Zoning Ordinance establishes performance standards for exterior lighting. An exterior lighting plan including photometric measurements of light intensity and indicating the type, location, and height of all exterior light fixtures must be submitted with application for a building permit. The exterior lighting plan is to be subject to review and approval of the Zoning Administrator. Waste Storage. The submitted plans show a location for waste storage containers along the west side of the off-street parking area. Plans for the enclosure that comply with the requirements of Section 11-18-4.C of the Zoning Ordinance for screening outdoor waste storage areas must be submitted with application for a building permit. The waste enclosure structure is to be subject to review and approval of the Zoning Adminstrator. Utilities. The developer has submitted a utility plan for connection of the proposed building to City sewer and water utilities. The City Engineer has met with the Utility Department to review the submitted plans. All utility plans are subject to review and approval of the City Engineer. 6 The developer will pay Utility Availability Charges for Lot 1, Block 1 at the time of final plat approval in accordance with the current Fee Schedule. Utility Connection Charges will be collected when a building permit is issued for the proposed building subject to Fee Schedule in effect at that time. Grading Plan. Plans for grading, erosion control, and stormwater management have been submitted for the property. All grading, drainage, and erosion control plans are subject to review and approval of the City Engineer. Easements. Section 10-8-12 of the Subdivision Ordinance requires dedication of drainage and utility easements at the perimeter of each lot, over public utility lines, and regional stormwater drainage facilities. The proposed final plat illustrates the required easements, which are subject to review and approval of the City Engineer. A drainage and utility easement dedicated at the southeast corner of Outlot A, Otsego Waterfront Addition to overlay a catch basin is proposed to be vacated. The City Engineer is requiring that the catch basin be relocated to the west curb of the private drive. With relocation of the catch basin, the existing drainage and utility easement no longer serves a public purpose. Park Dedication. Section 10-8-15 of the Subdivision Ordinance establishes park dedication requirements for new subdivisions. Park dedication requirements for Otsego Waterfront East, including the subject property, were satisfied with the initial final plat approval with dedication of park easements and improvements within the outlot encompassing the Mississippi River frontage. No additional park dedication is required for the proposed final plat. Development Contact. A development contract is required with final plat approval by Section 10-10-4.A of the Subdivision Ordinance to provide for completion of public improvements, establishment of required securities, and payment of applicable fees related to the subdivision of the subject property. Section 11-9-7 of the Zoning Ordinance also requires that the developer enter into a performance agreement with the City to provide for construction of the project improvements within the subject property. The City Attorney will draft the development contract, which is subject to approval by City Council resolution concurrent with the zoning and subdivision applications. RECOMMENDATION The proposed Sunshine Pediatric Dental development is consistent with the policies of the Comprehensive Plan and the requirements of the Zoning Ordinance and Otsego Waterfront East PUD District, as well as the Subdivision Ordinance. Our office recommends approval of the applications as outlined below. 7 POSSIBLE ACTIONS A.Motion to recommend approval of a PUD Development Stage Plan for Sunshine Pediatric Dentistry, vacation of drainage and utility easements, and a final plat of Sunshine Addition, subject to the following conditions: 1.The subject property shall be developed in accordance with the site and building plans submitted to the City subject to the stipulations, limitations, and conditions as approved by the City Council in accordance with Section 11-9-4 of the Zoning Ordinance. 2.Any mechanical equipment mounted on the roof of the buildings shall be screened by the parapet or other measures so as not to be visible from 90th Street and Quantrelle Avenue, subject to review and approval of the Zoning Administrator prior to issuance of a building permit. 3.A five foot wide concrete sidewalk shall be constructed between 90th Street and the sidewalk at the front line of the principal building along the west side of the driveway accessing 90th Street. 4.The construction specifications for the off-street parking area shall be subject to review and approval of the City Engineer. 5.Landscaping: a.The landscape plan shall be revised to comply with Section 11-19-2.B.2 and Section 11-21-7.L of the Zoning Ordinance, subject to review and approval of the Zoning Administrator. b.An in-ground irrigation system for all yards and planting areas within Lot 1, Block 1 shall be required in compliance with Section 5-2-3.C.2 of the City Code. 6.Signs shall comply with the PUD Development Stage Plan for Waterfront Commons, unless modified by approval of the City Council, subject to issuance of a sign permit of the Zoning Administrator. 7.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 11-16-6 of the Zoning Ordinance shall be submitted with application for a building permit and is subject to review and approval of the Zoning Administrator. 8 8. Plans for a waste container enclosure that complies with the requirements of Section 11-18-4.C of the Zoning Ordinance shall be submitted with application for a building permit, subject to review and approval of the Zoning Administrator. 9. All grading, drainage, and erosion control plans shall be subject to review and approval of the City Engineer. 10. All utility plans shall be subject to review and approval of the City Engineer. 11. The developer shall pay Utility Availability Charges for Lot 1, Block 1 in accordance with the City Code and current fee schedule in effect at the time of final plat approval. 12. All drainage and utility easements shall be subject to review and approval of the City Engineer. 13. The developer shall enter into a development contract as required by Section 10- 10-4.A of the Subdivision Ordinance Section 11-9-7 of the Zoning Ordinances drafted by the City Attorney and subject to approval of the City Council. B. Motion to recommend the application be denied based on a finding that the request is inconsistent with the Comprehensive Plan and requirements of the Zoning Ordinance and/or Subdivision Ordinance. C. Motion to table. c. 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██████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████FFE = 864.3██████████████████████████████████ ██████ ██████████████████████████████████████████████████████████DDDDDD D2S1SFUTURESTAFFPARKINGSUNSHINE PEDIATRICDENTISTRY~3,495 SQ FTFUTUREEXPANSION~3,000 SQ FT█ ███████ █████████ ██████████ ██████████ █████████ ████████████ ██████████ █████████ ██████████ ██████████ █████████ ████████████ ██████████ █████████ █████████████ ██████████ █████████ █████████████ ██████████ █████████ ██████████ ██████████ █████████ ███████████████ ██████████ ██████ █ ██ ██ █ █ ███ █ ██████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████FFE = 864.3██████████████████████████████████████████ █████ ███████████████████████████████████████████████████████████████████████████████████████████████████████████████████████►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►HT►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►►DDD►►►►►►►►►►►►►►► N 37°35'23" W 101.27S 66°28'42" W 87.43N 23°3 1' 1 8" W 5.00L O T 1B L O C K 1S 66°28'42" W 168.20N 21°29' 2 5 " W 1 3 6. 6 4 N 68°30'35" E 287.5543.57 N 26°3 1' 2 5" W SITECITY COUNCIL, CITY OF OTSEGO, MINNESOTAThis plat of SUNSHINE ADDITION was approved and accepted by the City Council of the City of Otsego, Minnesota, at a regular meeting thereof held this______ dayof ______________________, 20_____, and said plat is in compliance with the provisions of Minnesota Statutes, Section 505.03, Subd. 2. By ____________________________________________, Mayor By _______________________________________, ClerkWRIGHT COUNTY SURVEYORI hereby certify that in accordance with Minnesota Statutes, Section 505.021, Subd. 11, this plat has been reviewed and approved this ______ day of _________________________, 20_______. _________________________________________ Wright County SurveyorWRIGHT COUNTY LAND RECORDSPursuant to Minnesota Statutes, Section 505.021, Subd. 9, taxes payable for the year 20_______ on the land hereinbefore described have been paid. Also, pursuant to Minnesota Statutes, Section 272.12, there are no delinquent taxes and transfer entered this ______ day of __________________________, 20_______. _________________________________________ Wright County Land Records AdministratorWRIGHT COUNTY RECORDERI hereby certify that this instrument was filed in the office of the County Recorder for record on this _____ day of _________________________, 20_____, at ________o'clock _____.M. and wasduly recorded in Cabinet No. __________________________, Sleeve __________________________, as Document No. _____________________________. _______________________________________ Wright County RecorderKNOW ALL PERSONS BY THESE PRESENTS: That Otsego Developments, LLC, a Minnesota limited liability company, owner of the following described property situated in the County of Wright,State of Minnesota, to wit: OUTLOT A, OTSEGO DEVELOPMENTS ADDITION, Wright County, Minnesota.Has caused the same to be surveyed and platted as SUNSHINE ADDITION and does hereby dedicate to the public for public use the public way and the drainage and utility easements as created by this plat.In witness whereof said Otsego Developments, LLC, a Minnesota limited liability company, has caused these presents to be signed by its proper officer this_____ day of __________________________,20____.Otsego Developments, LLC By _____________________________________________ , Vice President, Chief Financial Officer, and Treasurer (signature)STATE OF ________________COUNTY OF ________________This instrument was acknowledged before me this ______ day of ___________________, 20____, by Steven Fischer, Vice President, Chief Financial Officer, and Treasurer of Otsego Developments, LLC,a Minnesota limited liability company, on behalf of the company. __________________________________________ ________________________________________________ (Signature) (Printed name) Notary Public,_______________________ County, ________________ My Commission Expires___________________I Gregory R. Prasch do hereby certify that this plat was prepared by me or under my direct supervision; that I am a duly Licensed Land Surveyor in the State of Minnesota; that this plat is a correctrepresentation of the boundary survey; that all mathematical data and labels are correctly designated on this plat; that all monuments depicted on this plat have been, or will be correctly set within oneyear; that all water boundaries and wet lands as defined in Minnesota Statutes, Section 505.01, Subd. 3, as of the date of this certificate are shown and labeled on this plat; and all public ways are shownand labeled on this plat.Dated this ____________day of ____________________, 20 ______. ______________________________________ Gregory R. Prasch, Licensed Land Surveyor Minnesota License No. 24992STATE OF MINNESOTACOUNTY OF HENNEPINThe foregoing Surveyor's Certificate was acknowledged before me on this ______ day of ___________________, 20____, by Gregory R. Prasch, Land Surveyor, Minnesota License No. 24992. __________________________________________ ________________________________________________ (Signature) (Printed name) Notary Public, Hennepin County, Minnesota My Commission Expires___________________SUNSHINE ADDITION BEARING ORIENTATION:THE SOUTHERLY LINE OF OUTLOT A, OTSEGODEVELOPMENTS ADDITION IS ASSUMED TOBEAR NORTH 66°28'42" EASTSec. 14 & 15, Twp. 121, R. 23Vicinity MapNo ScaleSCALE IN FEET06030901 INCH = 30 FEET Main Office: 3601 Thurston Avenue, Anoka, MN 55303 Phone: 763/427-5860 www.haa-inc.com MEMORANDUM TO: Honorable Mayor and City Council CC: Adam Flaherty, City Administrator Audra Etzel, City Clerk Daniel Licht, City Planner Dave Kendall, City Attorney Steve Fischer, Arrow Companies Jeffrey Prasch, Demarc FROM: Ronald Wagner, P.E. City Engineer DATE: May 7, 2025 RE: Sunshine Addition We have reviewed the following information provided by Demarc on behalf of Arrow Companies regarding the Sunshine Addition. Site Development Plans and Preliminary Plat for Sunshine Addition, Otsego, dated 4/15/2025. The submittal is to be considered for preliminary acceptance. We would offer the following comments: Preliminary Plat 1. The catch basin in proposed Lot 1, Block is to be replaced with a catch basin in west curb line of the private drive and the grading plan modified accordingly; the final plat is also to be revised to remove the drainage and utility easement overlaying the catch basin and stormwater pipe. Title Sheet 2. Add an approval signature block for City Engineer. Details 3. Add Otsego Standard plate #301 Existing Conditions and Removals Plan 4. Removals of pavement for catch basin in private drive. 5. Removals of trail for ADA ramps at either side of private drive crossing. Sunshine Addition Page 2 Site Plan 6. Proposed monument sign is in easement, which is not allowed. Easement should be removed with relocation of the catch basin as described above. 7. Proposed building extension cannot be within existing easement. Grading & Drainage Plan 8. Regrade to southeast of building to be able to relocate catch basin and remove D& U easement so monument sign can be located as proposed. Utility Plan 9. Water and sewer access apparently was not relocated with Otsego Developments Addition to prevent removal of a portion of private drive. Water and sewer utility service shall be designed and constructed such that a minimal number of bends are required. All sanitary sewer bends will need clean outs. The water service is located as close as feet from trail. Unless directional drilled, portions of the trail will need to be removed. If trail removed, replacement will be from needed ADA ramps to west until past improvements to minimize joints. We highly recommend moving utility room to east side of building to eliminate these issues. 10. With the building permit, a water meter along with a deduct irrigation meter will be required. Irrigation line will also need a backflow preventer installed. Storm Water Pollution Prevention Plan 11. Will require update with catch basin relocated. Landscape Plans 12. No comments. Other Consideration 13. No comments. Summary and/or Recommendation 14. Please make the corrections listed above and re-submit. 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO.: 2025-25 VACATION OF EXISTING DRAINAGE AND UTILITY EASEMENTS WITHIN THE PLAT OF OTSEGO DEVELOPMENTS ADDITION. WHEREAS, Arrow Companies, Inc. has initiated a request for vacation of existing drainage and utility easements dedicated over Outlots A, Otsego Development Addition described by Exhibit A; and WHEREAS, the City Engineer has reviewed request and determined that the existing drainage and utility easements are unnecessary for public purposes upon recording a final plat for Sunshine Addition; and WHEREAS, the Planning Commission held a public hearing at their regular meeting on 19 May 2025 to consider the vacation, preceded by required published and mailed legal notice; and WHEREAS, the Planning Commission heard all parties interested therein, closed the public hearing and voted 7-0 to recommend the City Council approve the vacation request; and WHEREAS, the Request for Council Action dated 9 June 2025 prepared by the City Planner, The Planning Company LLC, is incorporated herein; and WHEREAS, the City Council having considered all information received finds that the existing drainage and utility easements serve no useful public purpose and vacating the existing drainage and utility easements would be in the public interest. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO THAT: 1. That the existing drainage and utility easements dedicated over Outlot A, Otsego Developments Addition are hereby vacated. 2. The vacation shall be effective upon recording a final plat for Sunshine Addition. 3. The City Council hereby determines that the vacation of said existing right-of-way and drainage and utility easements shall cause no damage to any abutting or nearby property owners and therefore no damages are awarded to any such property owners. (remainder of this page intentionally blank signatures follow) 2 ADOPTED by the Otsego City Council this 9th day of June, 2025. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 3 EXHIBIT A EASEMENT VACATION DESCRIPTION 1 FINAL PLAT PUD DEVELOPMENT STAGE PLAN FINDINGS OF FACT & DECISION APPLICANT: Arrow Companies on behalf of SunshineMN Properties, LLC APPLICATION: Request for approval of a final plat and PUD Development Stage Plan. CITY COUNCIL MEETING: 9 June 2025 FINDINGS: Based upon review of the application and evidence received, the Otsego City Council now makes the following findings of fact: A. The legal description of the property is described by Exhibit A. B. The property lies within East Sewer District and is guided for Commercial land uses by the 2023 Otsego Comprehensive Plan, as amended. C. The property is zoned PUD, Planned Unit Development District. D. The applicant is proposing to final plat one lot and PUD Development Stage Plan for construction of a 3,495 square foot dental office; the proposed use is allowed within the PUD District. E. The Planning Commission and City Council must take into consideration the possible effects of the request with their judgment based upon (but not limited to) the criteria outlined in Section 11-3-2.F of the Zoning Ordinance: 1. The proposed action's consistency with the specific policies and provisions of the Otsego Comprehensive Plan. Finding: The 2023 Comprehensive Plan guides the subject property for commercial uses as part of a retail, service, and office district located adjacent to the TH 101 and CSAH 39 interchange. The proposed building will provide for a pediatric dentist office expanding services and expanding commercial building space within the City. The proposed land use is consistent with the Future Land Use Plan. 2. The proposed use's compatibility with present and future land uses of the area. Finding: Surrounding uses consist of medical and professional offices, a restaurant, and senior housing. Vacant lots and outlots north and south of the subject site available for additional development of similar uses. The proposed PUD Development Stage Plan for the subject site will be compatible with existing and planned land uses within Otsego Waterfront East. 2 3. The proposed use's conformity with all performance standards contained within the Zoning Ordinance and other provisions of the City Code. Finding: The proposed development complies with the requirements of the Zoning Ordinance and Subdivision Ordinance, except as modified by the PUD Development Stage Plan in a manner consistent with the intent of the underlying regulation and PUD District. 4. Traffic generation of the proposed use in relation to capabilities of streets serving the property. Finding: Quantrelle Avenue and 90th Street have adequate capacity to accommodate proposed final plat and PUD Development Stage Plan. 5. The proposed use can be accommodated by existing public services and facilities and will not overburden the City's service capacity. Finding: The subject property is within the East Sewer District where the City has planned for development and has capacity to provide required services. G. The planning report dated 14 May 2025 prepared by the City Planner, The Planning Company LLC, is incorporated herein. H. The Otsego Planning Commission conducted a public hearing at their regular meeting on 19 May 2025 to consider the application, preceded by published and mailed notice; based upon review of the application and evidence received, the public hearing was closed and the Planning Commission recommended by a 7-0 vote that the City Council approve the request based on the aforementioned findings. DECISION: Based on the foregoing information and applicable ordinances, the request is hereby APPROVED, subject to the following conditions: 1. The subject property shall be developed in accordance with the site and building plans submitted to the City subject to the stipulations, limitations, and conditions as approved by the City Council in accordance with Section 11-9-4 of the Zoning Ordinance. 2. Any mechanical equipment mounted on the roof of the buildings shall be screened by the parapet or other measures so as not to be visible from 90th Street and Quantrelle Avenue, subject to review and approval of the Zoning Administrator prior to issuance of a building permit. 3. A five foot wide concrete sidewalk shall be constructed between 90th Street and the sidewalk at the front line of the principal building along the west side of the driveway accessing 90th Street. 4. The construction specifications for the off-street parking area shall be subject to review and approval of the City Engineer. 5. Landscaping: a. The landscape plan shall be revised to comply with Section 11-19-2.B.2 and Section 11-21-7.L of the Zoning Ordinance, subject to review and approval of the Zoning Administrator. b. An in-ground irrigation system for all yards and planting areas within Lot 1, Block 1 shall be required in compliance with Section 5-2-3.C.2 of the City Code. 3 6. The PUD Development Stage Plan for Waterfront Commons approved on 6 February 2022 shall be amended to allow the following signs: a. Freestanding signs: (1) Lot 1, Block 1 and Outlot A, Otsego Developments Addition: One freestanding sign not to exceed 250 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 l (2) Lot 1, Block 1, Sunshine Addition shall be allowed one free standing sign not to exceed 70 square feet and a height not to exceed 20 feet. (c) One freestanding sign not to exceed 64 square feet in area or 15 feet in height at each driveway access to 90th Street and Quantrelle Avenue. (d) All freestanding signs must be setback 10 feet from perimeter property lines. b. Wall signs to be mounted on the principal buildings shall be allowed on all four elevations up to 15 percent of the wall area with no individual sign larger than 100 square feet in area. c. Placement of any sign upon the properties shall require issuance of a sign permit subj the Zoning Administrator. 7. 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 11-16-6 of the Zoning Ordinance shall be submitted with application for a building permit and is subject to review and approval of the Zoning Administrator. 8. Plans for a waste container enclosure that complies with the requirements of Section 11-18-4.C of the Zoning Ordinance shall be submitted with application for a building permit, subject to review and approval of the Zoning Administrator. 9. All grading, drainage, and erosion control plans shall be subject to review and approval of the City Engineer. 10. All utility plans shall be subject to review and approval of the City Engineer. 11. The developer shall pay Utility Availability Charges for Lot 1, Block 1 in accordance with the City Code and current fee schedule in effect at the time of final plat approval. 12. All drainage and utility easements shall be subject to review and approval of the City Engineer. 13. The developer shall enter into a development contract as required by Section 10-10-4.A of the Subdivision Ordinance Section 11-9-7 of the Zoning Ordinances drafted by the City Attorney and subject to approval of the City Council. (Remainder of page intentionally blank signatures follow) 4 ADOPTED by the Otsego City Council this 9th day of June, 2025. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 5 EXHIBIT A LEGAL DESCRIPTION Outlot A, Otsego Developments Addition 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2025-26 APPROVING A DEVELOPMENT CONTRACT FOR SUNSHINE ADDITION WHEREAS, SunshineMN Properties, LLC (the developer”) is proposing subdivision of Outlot A, Otsego Developments Addition; and WHEREAS, a final plat for the Sunshine Addition was approved by the City Council on 9 June 2025; 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 SunshineMN Properties, 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. (remainder of page intentionally blank signatures follow) 2 ADOPTED by the City Council of the City of Otsego this 9th day of June, 2025. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 1 236049v1 Sunshine Addition (reserved for recording information) DEVELOPMENT CONTRACT (Developer Installed Improvements) SUNSHINE ADDITION CONTRACT dated ____________________, 2025, by and between the CITY OF OTSEGO, a Minnesota municipal corporation (“City”), and SUNSHINEMN PROPERTIES, LLC, a Minnesota limited liability company (the “Developer”). 1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a plat for SUNSHINE 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, Otsego Developments Addition, Wright County, Minnesota, according to the recorded plat thereof. [Platted as Sunshine Addition, Wright County, Minnesota.] 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 one hundred (100) days after the City Council approves the final plat. 2 236049v1 Sunshine Addition 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 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 a multi-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 a multi-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. 3 236049v1 Sunshine Addition 7. 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 twenty five percent (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 6 above. 8. 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: Plan A - Plat Plan B - Final Grading, Drainage, and Erosion Control Plan Plan C - Plans and Specifications for Public Improvements Plan D - Street Lighting Plan Plan E - Landscape Plan 9. IMPROVEMENTS. The Developer shall install and pay for the following: A. Sanitary Sewer System B. Water System C. Storm Sewer System D. Streets E. Concrete Curb and Gutter F. Street Lights G. Site Grading, Stormwater Treatment/Infiltration Basins, and Erosion Control H. Underground Utilities I. Setting of Iron Monuments J. Surveying and Staking 4 236049v1 Sunshine Addition K. Sidewalks and Trails L. Retaining Walls M. Landscaping 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 a pre-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 supply the City with 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 236049v1 Sunshine Addition 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 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 November 30, 2025. 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. 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 they would be beneficial. 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 City’s current seeding specification which may include temporary seed to provide 6 236049v1 Sunshine Addition 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. The City will endeavor to notify the Developer in advance of any proposed action, but failure of the City to do so will not affect the Developer’s and City’s rights or obligations hereunder. If the Developer does not reimburse the City for any cost the City incurred for such work within ten (10) days, 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. 15. 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 approves individual building permits (except three (3) model home permits on lots acceptable to the Building Official), 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 land owned by the City. 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 permits 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 Developer certifies to the City that all lots with house footings placed on fill have been monitored and constructed to meet or exceed FHA/HUD 79G specifications. 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. 7 236049v1 Sunshine 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. Prior to the release of the required individual lot grading and erosion control security that is submitted with the building permit, an as-built certificate of survey for single family lots must be submitted to verify that the final as-built grades and elevations of the specific lot and all building setbacks are consistent with the approved grading plan for the development, and amendments thereto as approved by the City Engineer, and that all required property monuments are in place. If the final grading, erosion control and as-built survey is not timely completed, the City may enter the lot, perform the work, and apply the cash escrow toward the cost. 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 person who deposited the funds with the City. 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. 16. 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. 17. 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. 18. LATERAL SANITARY SEWER. The Developer shall pay a cash fee in the amount of $9,390.92 for the Sewer Availability Charge (“SAC”) at the time of plat approval which is calculated as follows: 0.88 Gr Ac X 3.5 /RECs/Gr Ac X $3,049.00/REC = $9,390.92 8 236049v1 Sunshine Addition 19. LATERAL WATERMAIN. The Developer shall pay a cash fee in the amount of $11,796.40 for the Water Availability Charge (“WAC”) at the time of plat approval which is calculated as follows: 0.88 Gr. Ac X 3.5/RECs/Gr Ac X $3,830,00/REC = $11,796.40 20. 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. 21. 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. 22. STREET LIGHT OPERATION COSTS. The Developer shall be responsible for the cost of street light installation consistent with a street lighting plan approved by the City. The Developer shall pay to the City $500.00 in payment of operating costs for street lights. 23. LANDSCAPING. The Developer or lot purchaser shall plant least two (2) trees on every lot in the plat, one of which must be planted in the front yard. Trees that are chosen by the Developer or property owner cannot cause a public nuisance, such as cotton producing trees, or trees that may become a public hazard due to insect infestation or weak bark. The minimum deciduous tree size shall be two and one-half (2½) inches caliper, balled and burlapped. Evergreen trees must be at least eight feet (8’) tall. The trees may not be planted in the right-of-way. The Developer or lot purchaser shall sod the front yard, boulevard, and side yards to the rear of the structure on every lot. Weather permitting, the trees, sod, and seed shall be planted within sixty (60) days after a home has received a certificate of occupancy. Before a building permit is issued, a cash escrow per each lot in the plat shall be furnished the City in accordance with the City’s current fee schedule to guarantee compliance with the landscaping requirements. If the landscaping is not completed in a timely manner, the City may enter the lot, perform the work, and apply the cash escrow toward the cost. Upon satisfactory completion of the landscaping 9 236049v1 Sunshine Addition the escrow funds, without interest, less any draw made by the City, shall be returned to the person who deposited the funds with the City. All trees shall be warranted to be alive, of good quality, and disease free for twelve (12) months after planting. Any replacements shall be warranted for twelve (12) months from the time of planting. The Developer or property owner is responsible for contacting the City when all the landscaping has been installed to set up an inspection. Fifty percent (50%) of the security will be released when all the landscaping has been installed and inspected by City staff and the remaining fifty percent (50%) will be released one year after the landscaping inspection and any warranty work has been completed. The Developer shall revise the landscape plan to comply with Section 11-19-2.B2 and Section 11-21-7.L of the Zoning Ordinance, subject to review and approval of the Zoning Administrator. The Developer shall install an in-ground irrigation system for all yards and planting areas within Lot 1, Block 1 in compliance with Section 5-2-3.C.2 of the City Code. Landscaping shall be installed in accordance with the approved landscape plan. The Developer shall post a $24,370.00 landscaping security at the time of final plat approval to ensure that the landscaping is installed in accordance with the approved plan. 24. 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 June 9, 2025. B. The subject property shall be developed in accordance with the site and building plans submitted to the City subject to the stipulations, limitations, and conditions as approved by the City Council in accordance with Section 11-9-4 of the Zoning Ordinance. C. Any mechanical equipment mounted on the roof of the buildings shall be screened by the parapet or other measures so as not to be visible from 90th Street and Quantrelle Avenue, subject to review and approval of the Zoning Administrator prior to issuance of a building permit. D. The Developer shall construct a five-foot wide concrete sidewalk between 90th Street and the sidewalk at the front line of the principal building along the west side of the driveway accessing 10 236049v1 Sunshine Addition 90th Street. The Developer shall provide a security in the amount of $10,000.00 to ensure construction of the sidewalk. E. The construction specifications for the off-street parking area shall be subject to review and approval of the City Engineer. F. The PUD Development Stage Plan for Waterfront Commons approved on February 22, 2022 shall be amended to allow the following signs: a. Freestanding Signs: (1) Lot 1, Block 1 and Outlot A, Otsego Developments Addition: One freestanding sign not to exceed 250 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. (2) Lot 1, Block 1, Sunshine Addition shall be allowed one free standing sign not to exceed 70 square feet and a height not to exceed 20 feet. (3) One freestanding sign not to exceed 64 square feet in area or 15 feet in height at each driveway access to 90th Street and Quantrelle Avenue. (4) All freestanding signs must be setback 10 feet from perimeter property lines. b. Wall signs to be mounted on the principal buildings shall be allowed on all four elevations up to 15 percent of the wall area with no individual sign larger than 100 square feet in area. c. Placement of any sign upon the properties shall require issuance of a sign permit subj the Zoning Administrator. 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 11-16-6 of the Zoning Ordinance with the application for a building permit, subject to review and approval of the Zoning Administrator. 11 236049v1 Sunshine Addition H. The Developer shall submit plans for a waste container enclosure that complies with the requirements of Section 11-18-4.C of the Zoning Ordinance with the application for a building permit, subject to review and approval of the Zoning Administrator. I. All grading, drainage and erosion control plans shall be subject to review and approval of the City Engineer. J. The Developer shall pay Utility Availability Charges for Lot 1, Block 1, in accordance with the City Code and current fee schedule in effect at the time of final plat approval. K. All drainage and utility easements shall be subject to review and approval of the City Engineer. L. 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. M. The Developer shall pay an escrow for the preparation of record construction drawings and City base map updating. This fee is $100.00 per acre for a total charge of $250.00. N. 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. 25. 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 12 236049v1 Sunshine Addition estimated to be three percent (3%) 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, all financial obligations to the City satisfied, and the required "as constructed" plans have been received by the City. All other amounts listed as flat fees are non-refundable and available immediately for City use when posted. 26. 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 13 236049v1 Sunshine Addition 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 percent (125%) 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 without notice. If the security is drawn down, the proceeds shall be used 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 shall be reduced from time to time in proportion to the work completed, but not below ten percent (10%) 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 14 236049v1 Sunshine Addition 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. 27. SUMMARY OF SECURITY REQUIREMENTS. The amount of the security described above is calculated as follows: CONSTRUCTION COSTS: A. Sidewalk and Trail $10,000.00 CONSTRUCTION SUB-TOTAL $10,000.00 OTHER COSTS: A. Engineering & Surveying Construction Services (6.5%) $650.00 B. Landscaping 24,370.00 OTHER COSTS SUB-TOTAL $25,020.00 TOTAL – SUBTOTAL $35,020.00 TOTAL IRREVOCABLE LETTER OF CREDIT $43,775.00 FOR SECURITY (125% OF SUBTOTAL ESCROW A. City Legal Expenses ($1,500.00 minimum) $1,500.00 B. City Construction Observation ($10,000.00 minimum) 10,000.00 C. GIS Data Entry Fee 250.00 ESCROW TOTAL $11,750.00 This breakdown is not a restriction on the use of the security. 28. 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) $1,500.00 B. Trunk Sewer Access Fee (SAC) 9,390.92 C. Trunk Water (WAC)(with credit included) 11,796.40 D. Street Lights 500.00 TOTAL CASH REQUIREMENTS $23,187.32 15 236049v1 Sunshine Addition 29. RESPONSIBILITY FOR COSTS. 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, 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 attached, 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 16 236049v1 Sunshine Addition ("SAC"), City water connection charges, City sewer connection charges, and building permit fees. 30. 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. 31. 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 17 236049v1 Sunshine Addition 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. 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 18 236049v1 Sunshine Addition 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: Commercial General Liability (or in combination with an umbrella policy) $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 endorsement 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. 19 236049v1 Sunshine Addition 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. 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. 20 236049v1 Sunshine Addition 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. 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. 32. 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: 11491 Kimball Ave NW, Annandale, MN 55302. 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.] 21 236049v1 Sunshine Addition CITY OF OTSEGO BY: ___________________________________________ Jessica L. Stockamp, Mayor (SEAL) AND __________________________________________ Audra Etzel, City Clerk STATE OF MINNESOTA ) )ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this ________ day of ______________, 2025, 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 22 236049v1 Sunshine Addition DEVELOPER: SUNSHINEMN PROPERTIES LLC BY: ___________________________________________ Its STATE OF MINNESOTA ) )ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this ________ day of ______________, 2025, by __________________________________ the ____________________________________ of SunshineMN Properties LLC, a Minnesota limited liability company, on behalf of said entity. ______________________________________________ NOTARY PUBLIC DRAFTED BY: CAMPBELL, KNUTSON Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, MN 55121 Telephone: 651-452-5000 DSK/smt 23 236049v1 Sunshine Addition FEE OWNER CONSENT TO DEVELOPMENT CONTRACT OTSEGO DEVELOPMENTS, LLC, a Minnesota limited liability company, fee owner of all or part of the subject property, the development of which is governed by the foregoing Development Contract, affirms and consents to the provisions thereof and agrees to be bound by the provisions as the same may apply to that portion of the subject property owned by it. Dated this _____ day of ____________, 2025. OTSEGO DEVELOPMENTS, LLC By: __________________________ [print name] Its: _______________________ [title] STATE OF MINNESOTA ) )ss. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this _____ day of _____________, 2025, by _________________________, the _________________________ of OTSEGO DEVELOPMENTS, LLC, a Minnesota limited liability company, on behalf of said entity. ________________________________________ NOTARY PUBLIC DRAFTED BY: CAMPBELL KNUTSON Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 651-452-5000 DSK/smt 24 236049v1 Sunshine 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. A1327512; 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; and 6. Modification of Mortgage filed April 18, 2024 with the office of the County Recorder, Wright County, Minnesota as Abstract Document No. A1550799; 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 ____________, 2025. [Remainder of page is intentionally left blank. Signature page is to follow.] 25 236049v1 Sunshine Addition FIRST BANK ELK RIVER By: _________________________ [print name] Its _____________________ [title] STATE OF MINNESOTA ) )ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _____ day of ________________, 2025, by ___________________________, the _________________________________________ of First Bank Elk River, a Minnesota banking corporation, formerly known as, The First National Bank of Elk River, on behalf of said entity. ________________________________________ NOTARY PUBLIC DRAFTED BY: CAMPBELL KNUTSON Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 651-452-5000 DSK/smt 26 236049v1 Sunshine Addition [BANK LETTERHEAD] IRREVOCABLE LETTER OF CREDIT No. ___________________ Date: _________________ TO: City of Otsego City Hall 13400 90th Street NE Otsego, Minnesota 55330 Dear Sir or Madam: 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. DEMAND(S) FOR PAYMENT MAY ALSO BE MADE BY FACSIMILE TRANSMISSION TO ________ OR SUCH OTHER FAX NUMBER AS (NAME OF ISSUING BANK) MAY IDENTIFY IN A WRITTEN NOTICE TO YOU. TO THE EXTENT PRESENTATION IS MADE BY FACSIMILE TRANSMISSION YOU MUST PROVIDE TELEPHONE NOTIFICATION THEREOF TO (NAME OF ISSUING BANK) AT TELEPHONE NUMBER: _________ PRIOR TO OR SIMULTANEOUSLY WITH THE SENDING OF SUCH FACSIMILE TRANSMISSION. HOWEVER, THE ABSENCE OF SUCH TELEPHONE CONFIRMATION AS DESCRIBED ABOVE DOES NOT AFFECT OUR OBLIGATION TO HONOR SUCH DRAWING, IF SUCH DRAWING IS OTHERWISE IN COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS IRREVOCABLE LETTER OF CREDIT. IF DEMAND FOR PAYMENT IS MADE BY FAX, PRESENTATION OF ORIGINAL DOCUMENTS IS NOT REQUIRED. OR DEMAND(S) FOR PAYMENT TO BE MADE VIA EMAIL TO _______________. PRESENTATION OF ORIGINAL DOCUMENTS IS NOT REQUIRED. 27 236049v1 Sunshine Addition 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 ______________________________