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Item 3.8 Acuity Land Holdings LLC I94 West Contractor Suites Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 23 June 2025 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty City Engineer Wagner City Attorney Kendall 3.8 – I-94 West Contractor Suites 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 recommend the City Council approve site and building plans and execution of a Site Improvement Performance Agreement. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes Held by the Planning Commission on 19 May 2025 BACKGROUND/JUSTIFICATION: Acuity Landholdings LLC has submitted an application to develop an 11,880 square-foot building with up to seven business tenants in suites upon Lot 2, Block 1 Otsego I-94 West Industrial Park 4th Addition. The proposed building is subject to site and building plan review in accordance with Section 11-9-3 of the Zoning Ordinance. The Planning Commission considered the proposed development at their meeting on 19 May 2025. Mr. Dustin Heggum of Acuity Landholdings LLC was present as the applicant and agreed with the recommendations of City staff. The Planning Commission had no comments or questions and voted 7-0 to recommend approval. City staff have prepared the findings of fact and decision and a Site Improvement Performance Agreement for consideration of approval by the City Council. SUPPORTING DOCUMENTS ATTACHED: • Planning Report dated 14 May 2025 • Findings of Fact and Decision • Resolution 2025-28 approving a Site Improvement Performance Agreement • Site Improvement Performance Agreement POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to approve site and building plans for Lot 2, Block 1, Otsego I-94 West Industrial Park 4th Addition subject to the conditions stated on the Findings of Fact and Decision as presented and to adopt Resolution 2025-28 approving a Site Improvement Performance Agreement. 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 120-DAY DATE: 19 July 2025 RE: Otsego – I-94 West Contractor Suites TPC FILE: 101.02 BACKGROUND Acuity Landholdings LLC has submitted an application to develop an 11, 880 square foot building with up to seven suites upon Lot 2, Block 1 Otsego I-94 West Industrial Park 4th Addition. The proposed building is subject to site and building plan review in accordance with Section 11-9-3 of the Zoning Ordinance. The Planning Commission will consider the proposed development at their meeting on 19 May 2025. Exhibits: Site Location Map Architectural plans dated 03/10/25 (6 sheets) Civil plans dated 3-18-2025 (5 sheets) Photometric lighting plan dated 3/17/2025 ANALYSIS Comprehensive Plan. The subject property is guided for industrial uses by the Future Land Use Plan map of 2023 Comprehensive Plan. The proposed building is to be build-to-suit for up to seven business tenants in suites between 1,680 square feet to 1,800 square feet; one tenant could also occupy multiple suites. Development of the proposed multiple tenant building is an opportunity to add industrial space for small businesses within the City. The proposed development is consistent with the goals and policies of the Comprehensive Plan. 2 Zoning. The subject site is zoned I-2, General Industrial District, which provides for business locations with office, storage, warehouse, assembly, compounding and the like uses. The proposed building may be occupied by any permitted use in the I-2 District; those uses allowed as a conditional use or interim use within the I-2 District would require application for the appropriate zoning approval prior to occupancy. No outdoor storage is indicated on the submitted plans. Outdoor storage would include parking of any vehicles, trailers, or equipment outside of designated parking stalls, use of land/sea or detached accessory buildings for storage, material stockpiles, waste and recycling storage, etc. Unless approved with an interim use permit, outdoor storage will be prohibited. City staff further recommends that approval of the site and building plans include a stipulation that residential occupancy is prohibited. Building Materials. The architectural plans identify that the exterior of the proposed building is to be finished with architectural panels having three different textures/colors. The north elevation (front) of the building uses two panels with different vertical seem forms along with an artificial stone wainscoting. The sides and rear of the building use a stucco texture and a third color. The proposed exterior finish of the building complies with Section 11-17-4.E.1 of the Zoning Ordinance. Building Height. Buildings within the I-2 District may be up to 48 feet in height as allowed by Section 11-86-9 of the Zoning Ordinance. The height of the building is divided into three sections with the center section having a higher roof line. The height of the building measured to the mid-point of the center roof section is 26 feet, which complies with the Zoning Ordinance. Lot Requirements. Lots within the I-2 District are required to be a minimum of 2.0 acres in area with a minimum width of 200 feet by Section 11-86-6 of the Zoning Ordinance. The area of the existing lot platted with the Otsego I-94 West Industrial Park 4th Addition is 3.47 acres and its width is 265 feet. The existing lot of record complies with the minimum requirements of the I-2 District. Setbacks. The table below states the required setbacks applicable to the lot as established by Section 11-86-7 of the Zoning Ordinance and the setbacks measured from lot lines to the proposed building: 71st Street 70th Street Side Required 30ft. 30ft. 20ft. Proposed 64ft. 447ft. 38ft.30ft. Note that the preliminary plat was approved prior to 14 August 2002 and, as such, no wetland setback is required by Section 11-16-5.F of the Zoning Ordinance. The proposed building complies with applicable setback requirements. 3 Building Coverage. Section 11-86-8 of the Zoning Ordinance limits coverage of the lot by buildings to 50 percent of the lot area. The extent of wetlands within the existing lot of record greatly limits opportunity for location of principal or accessory structures within the lot. As a result, the proposed 11,880 square foot building covers only 7.9 percent of the lot. The proposed development complies with the building coverage limits of the I-2 District. Off-Street Parking. The subject lot is to be accessed from 71st Street, which is a local industrial street. The site plan has one 24 foot wide access at the center of the property, the design and location of which conforms with the requirements of Section 11-21-6 of the Zoning Ordinance. City staff has suggested the developer consider two accesses to 71st Street at the east and west ends of the off-street parking area to facilitate interior site circulation. The off street parking area is setback 15 feet from the right-of-way for 71st Street 30 feet from side lot lines. There is 45 feet between the north curb line and north elevation of the proposed building. The off-street parking area is shown to be paved with asphalt and surrounded by concrete curb and gutter. The design and construction of the off-street parking area is to comply with Section 11-21-7 of the Zoning Ordinance subject to review and approval of the City Engineer. Section 11-21-8 of the Zoning Ordinance requires industrial uses to provide one off-street parking space for each 200 square feet of office, one space for each 350 square feet of manufacture/assembly, and/or one space for each 1,000 square feet of warehouse. Based on minimal use of the building suites for office and warehouse space, there should be at least 14 off-street parking spaces on site for any vehicles not kept within the buildings. The width of the off-street parking area is sufficient to allow for a two-way drive aisle and 18 foot deep parking stalls along the north curb line. City staff recommends that nine foot wide parking spaces be striped on the pavement along the north curb line where there is sufficient area for 17 parking spaces, with one space being designated for disability accessibility. A minimum of 14 parking spaces are to be stripped onto the off-street parking area in accordance with Section 11-21-7.F of the Zoning Ordinance. The supply of off-street parking will need to be monitored in accordance with Section 11-21-4.C of the Zoning Ordinance as occupancy of the tenant spaces is proposed for buildout to ensure the required number of spaces are available. Landscaping. The site plan shows six overstory trees to be planted in the yard adjacent to 71st Street, whereas Sheet C5 includes generic landscape information cut/pasted from the Zoning Ordinance, including listing the proposed trees as red maple and white oak. Turf grass is required in the front yard and must include irrigation as required by Section 5-2-3.C.2 of the City Code. 4 Signs. The submitted plans do not identify proposed signs. Any signs are to comply with Chapter 37 of the Zoning Ordinance and require issuance of a sign permit by the Zoning Administrator prior to installation. Waste Storage. The submitted plans do not identify locations for waste storage within the buildings or an exterior enclosure. If any exterior trash containers are to be utilized, an enclosure(s) will need to be identified on the site plan that comply with the requirements of Section 11-18-4.C of the Zoning Ordinance and subject to approval of the Zoning Administrator. Exterior Lighting. Section 11-16-6.C.1 of the Zoning Ordinance limits the intensity of light at the property lines to not more than 0.4 foot-candles. Light fixtures are required to have a 90 degree horizontal cut-off as required by Section 11-16-6.C.3 of the Zoning Ordinance. The height of freestanding light fixtures is limited to 25 feet by Section 11-16-6.C.4.a of the Zoning Ordinance. The developer submitted a photometric lighting plan, but it is not overlaid on the site plan to confirm compliance with the Zoning Ordinance. An updated photometric plan will be required to be submitted with application for a building permit to verify compliance with the Zoning Ordinance. Utilities. Each suite has the opportunity for an interior restroom. The developer has submitted a utility plan for connection of the proposed building to City sewer and water utilities, which are available at the property. The City Engineer has met with the Utility Department to review the submitted plans and provided comments. All utility plans are subject to review and approval of the City Engineer. Utility Availability Charges were previously assessed to the lot of record. Utility Connection Charges will be collected when a building permit is issued for the building shell and additional Utility Connection Charges for each tenant space based on occupancy 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. Common Interest Community. The subject property can exist as rental units under single ownership or with individual ownership by Common Interest Community. If a Common Interest Community ownership arrangement is planned, declaration documents are to be submitted and are subject to review of the City Attorney and approval of the City Council in the manner of a final plat. SIPA. Section 11-9-7 of the Zoning Ordinance 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 performance agreement, which is subject to approval by City Council resolution. 5 RECOMMENDATION City staff recommends approval of site and building plans for Otsego I-94 West Industrial Condos subject to the conditions outlined below. POSSIBLE ACTIONS A. Motion to recommend approval of site and building plans for Lot 2, Block 1, Otsego I-94 West Industrial Park 4th 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. Uses occupying the principal building shall include those permitted uses allowed within the I-2 District or those conditional or interim uses subject to approval of the applicable zoning application; residential occupancy of the principal building is prohibited. 3. Off-Street Parking: a. The site plan shall be revised to designate a minimum of 14 off-street parking spaces. b. The supply of off-street parking shall conform with Section 11-21-4.C of the Zoning Ordinance related to change in occupancy to ensure the number of spaces required by the Zoning Ordinance are available. c. The design and construction of the off-street parking area shall comply with Section 11-21-7 of the Zoning Ordinance subject to review and approval of the City Engineer. 4. Landscaping: a. The landscape plan shall specify turf grass in the front yard. b. Irrigation shall be provided for all turf grass and planting areas as required by Section 5-2-3.C.2 of the City Code. 5. All signs shall comply with Chapter 37 of the Zoning Ordinance, subject to issuance of a sign permit of the Zoning Administrator. 6 6. Any exterior storage of waste containers shall provide for an enclosure that complies with the requirements of Section 11-18-4.C of the Zoning Ordinance, which is subject to review and approval of the Zoning Administrator. 7. The photometric lighting plan shall be revised to be overlaid upon the site plan and is subject to review and approval of the Zoning Administrator prior to issuance of a building permit. 8. All utility plans are subject to review and approval of the City Engineer. 9. One Utility Connection Charges shall be collected when a building permit is issued for the building shell and additional Utility Connection Charges shall be paid for each tenant space based on occupancy subject to Fee Schedule in effect. 10. All grading, drainage, and erosion control plans are subject to review and approval of the City Engineer. 11. Subdivision of the subject property by Common Interest Community shall require submission of declaration documents and be subject to review by the City Attorney and approval of the City Council in the manner of a final plat. 12. The developer shall enter into a Site Improvement Performance Agreement 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 does not comply with the requirements of the Zoning Ordinance. C. Motion to table. c. Adam Flaherty, City Administrator/Finance Director Audra Etzel, City Clerk Ron Wagner, City Engineer David Kendall, City Attorney Jason Coombe, Building Official Property Location 921 ft Overview Legend Highways Interstate State Hwy US Hwy Roads City/Township Limits c t Parcels Torrens 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-2%7,7/('5$:1%<'$7(6$/(65(3&867,1,7,$//ŚĞƌĞďǇĐĞƌƚŝĨǇƚŚĂƚƚŚŝƐƉůĂŶ͕ƐƉĞĐŝĨŝĐĂƚŝŽŶ͕ŽƌƌĞƉŽƌƚǁĂƐƉƌĞƉĂƌĞĚďǇŵĞŽƌƵŶĚĞƌŵǇĚŝƌĞĐƚƐƵƉĞƌǀŝƐŝŽŶĂŶĚƚŚĂƚ/ĂŵĂĚƵůǇ>ŝĐĞŶƐĞĚƌĐŚŝƚĞĐƚƵŶĚĞƌƚŚĞůĂǁƐŽĨƚŚĞƐƚĂƚĞŽĨDŝŶŶĞƐŽƚĂ͘^ŝŐŶĂƚƵƌĞ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺdǇƉĞĚŽƌWƌŝŶƚĞĚŶĂŵĞ͗DŝĐŚĂĞů:ƵŚůĂƚĞ͗>ŝĐĞŶƐĞEƵŵďĞƌ͗ϰϲϱϲϴ),567675((7%(&.(5012)),&(6758&785$/%8,/',1*6&20&23<5,*+76758&785$/%8,/',1*6$&8,7<+2/',1*6&21'2'(9$0-35(/,0,1$5<127)25&216758&7,21',0$*(6$'9,(:$'9,(:$'9,(:1R 'DWH BLOCH ENGINEERING, PLLCblochengineering.com32210 XEON ST NWCAMBRIDGE, MN 55008krystle@blochengineering.comNCHBLENGINEERINGTHE SUBSURFACE UTILITY INFORMATION IN THIS PLAN IS UTILITY QUALITY LEVEL D.THIS QUALITY LEVEL WAS DETERMINED ACCORDING TO THE GUIDELINES OF CI/ASCE 3-2,ENTITLED "STANDARD GUILDELINES FOR THE COLLECTION AND DEPICTION OF EXISTINGSUBSURFACE UTILITY DATA."CONTRACTOR SHALL FIELD VERIFY EXACT LOCATIONS PRIOR TO COMMENCING CONSTRUCTION AS REQUIRED BYSTATE LAW. GSOC INFORMATION ABOVE.GOVERNING STANDARDS: COUNTY OF WRIGHT STANDARDS, CITY OF OTSEGO STANDARD CONTRACT DOCUMENTS ANDTECHNICAL SPECIFICATIONS FOR UTILITY AND STREET CONSTRUCTION, LATEST EDITION OF THE MINNESOTA DEPARTMENTOF TRANSPORTATION "STANDARD SPECIFICATIONS FOR CONSTRUCTION" , LATEST VERSION OF THE "MINNESOTAMANUAL OF UNIFORM TRAFFIC CONTROL DEVICES" (MMUTCD)ACUITY HOLDINGS CONDO DEVELOPMENTOTSEGO, MNPROJECT AREA (APPROX.) GGGGGGGGGGGGGGGSSSSSSSSSSSSSSFO FO F O WATWATWATWATWATWATWATWATWATWATWATWATWATSSSSSWETLANDWETLAND WETLANDWETLANDWETLANDWETLANDWETLANDWETLANDWETLANDWETLANDWE T L A N D WETLAND WETLANDWETLANDWETLANDWETLANDWE T L A N D WETLANDWE T LAND WET LAND WETLAND WETLANDWETLANDWETLANDWETLANDWETLANDWETLAND WETLAND WETLANDBLOCH ENGINEERING, PLLCblochengineering.com32210 XEON ST NWCAMBRIDGE, MN 55008krystle@blochengineering.comNCHBLENGINEERINGEXISTING TRAILER TO BE REMOVED PRIOR TO GRADING PROPOSEDBUILDING12,000 SFFFE = 966.0GGGGGGGGGGGGGGGSSSSSSSSSSSSSSFO FO FO WATWATWATWATWATWATWATWATWATWATWATWATWATSSSSSWETLANDWETLAND WETLANDWETLANDWETLANDWETLANDWETLANDWETLANDWETLANDWETLANDWE T L A N D WETLAN D WETLANDWETLANDWETLANDWETLANDWE T L A N D WETLANDWETLANDWETLAND WETLAND WETLANDWETLANDWETLANDWETLANDWETLANDWETLAND WETLAND WETLAND 30.00'24.00'198.13'60.13'45.38'PROPOSED FILTRATIONBOTTOM = 960.0TOP = 962.0UNDERDRAIN OUTLET @ 959.3100YR HWL = 961.55ASSUMED GW ELEV = 955 PER AET GEOTECH REPORT2' CURBCUT &RIPRAPSANUPUPUPUPUPUPUPBLOCH ENGINEERING, PLLCblochengineering.com32210 XEON ST NWCAMBRIDGE, MN 55008krystle@blochengineering.comNCHBLENGINEERINGCONNECT TO EXISTING 6" PVC SDR 26 SANITARY SERVICECLEANOUTS AT BENDS (TYP)64 LF - 6" PVC SDR 26SANITARY SEWER@ 2.08%CONNECT TO EXISTING 6" DIP WATER SERVICE60 LF - 6" XXX WATER SERVICE PROPOSEDBUILDING12,000 SFFFE = 966.0GGGGGGGGGGGGGGGSSSSSSSSSSSSSSFO FO FO WATWATWATWATWATWATWATWATWATWATWATWATWATSSSSS961962963963964964964965965965966966WETLANDWETLAND WETLANDWETLANDWETLANDWETLANDWETLANDWETLANDWETLANDWETLANDWE T L A N D WETLAN D WETLANDWETLANDWETLANDWETLANDWE T L A N D WETLANDWETLANDWETLAND WETLAND WETLANDWETLANDWETLANDWETLANDWETLANDWETLAND WETLAND WETLAND 30.00'24.00'198.13'60.13'45.38'PROPOSED FILTRATIONBOTTOM = 960.0TOP = 962.0UNDERDRAIN OUTLET @ 959.3100YR HWL = 961.55ASSUMED GW ELEV = 955 PER AET GEOTECH REPORT2' CURBCUT &RIPRAPSAN965.60965.45965.10964.80964.50964.43966.00966.00UPUPUPUPUPUPUPSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSF SFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSF SFBLOCH ENGINEERING, PLLCblochengineering.com32210 XEON ST NWCAMBRIDGE, MN 55008krystle@blochengineering.comNCHBLENGINEERINGDOUBLE ROW SILT FENCE ALONG WETLANDTEMP. CONSTRUCTION EXITVALLEY GUTTERTO ENSURE PROPOSED RUNOFF TRAVELS TO PONDRATHER THAN STREET PROPOSEDBUILDING12,000 SFFFE = 966.0GGGGGGGGGGGGGGSSSSSSSSSSSSSSFO FO FO WATWATWATWATWATWATWATWATWATWATWATWATWATSSSSSWETLANDWETLAND WETLANDWETLANDWETLANDWETLANDWETLANDWETLANDWETLANDWETLANDWE T L A N D WETLAN D WETLANDWETLANDWETLANDWETLANDWE T L A N D WETLANDWETLANDWETLAND WETLAND WETLANDWETLANDWETLANDWETLANDWETLANDWETLAND WETLAND WETLAND 30.00'24.00'198.13'60.13'45.38'PROPOSED FILTRATIONBOTTOM = 960.0TOP = 962.0UNDERDRAIN OUTLET @ 959.3100YR HWL = 961.55ASSUMED GW ELEV = 955 PER AET GEOTECH REPORT2' CURBCUT &RIPRAPSANUPUPUPUPUPUPUPSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSF SFSFSFSFSFSFSFSFSFSFSFSFSFSFSFSF SFBLOCH ENGINEERING, PLLCblochengineering.com32210 XEON ST NWCAMBRIDGE, MN 55008krystle@blochengineering.com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ain 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 Dustin Heggum, Acuity Holdings Krystle Block, Bloch Engineering FROM: Ronald Wagner, P.E. City Engineer DATE: May 7, 2025 RE: ACG Condos We have reviewed the following information provided by Bloch Engineering on behalf of Acuity Holding regarding the ACG Condos. Site Development Plans for ACG Condos, Otsego, dated 3/18/2025. The submittal is to be considered for preliminary acceptance. We would offer the following comments: Cover Sheet – C1 1. Add CEAM to governing standards. 2. Add City Engineer signature block. Existing and Removal Plan – C2 3. Add street saw cut and removal for sanitary sewer connection. Site & Utility Plan – C3 4. Water service can be reduced to 2” water service and new valve per size of building and no fire suppression system required. 5. Sidewalk required to utility room. 6. Sewer can go directly across to north side of 71st Street and connect with sewer wye. Street can be removed and replaced. The City of Otsego will be placing an overlay in 2026. ACG Condos Page 2 Grading & Erosion Control Plan – C4 7. Does the filtration pond have drain tile under the bottom of the pond or is it designed to continue into the soil beneath the filtration layer? Knowing the tight soils in this area, we would need a infiltration test of the in situ soils. 8. Please provide a typical detail of the parking lot pavement section and curb. 9. Please use standard detail plate in the Engineering Manuel found on-line for construction entrance and valley gutter. Landscape Plan 10. No comments other than placing sheet title in block. Other Consideration 11. No comments. Summary and/or Recommendation 12. Please make the corrections listed above and re-submit. 1 SITE AND BUILDING PLAN REVIEW FINDINGS OF FACT & DECISION APPLICANT: Acuity Landholdings LLC APPLICATION: Request for approval of site and building plans for construction of an 11,880 square foot industrial building. CITY COUNCIL MEETING: 23 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 Lot 2, Block 1, Otsego I-94 West Industrial Park 4th Addition. B. The property lies within West Sewer District and is guided for Industrial land uses by the 2023 Otsego Comprehensive Plan, as amended. C. The property is zoned I-2, General Industrial District. D. The applicant is proposing to construct an 11,880 square foot principal building that can be divided into as many as seven suites. E. The site and building plans for the proposed development are subject to review by the Planning Commission and approval of the City Council pursuant to Section 11-9-2 of the Zoning Ordinance. F. The planning report dated 14 May 2025 prepared by the City Planner, The Planning Company LLC, is incorporated herein. G. The Otsego Planning Commission considered the application at their regular meeting on 19 May 2025; based upon review of the application and evidence received, 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. Uses occupying the principal building shall include those permitted uses allowed within the I-2 District or those conditional or interim uses subject to approval of the applicable zoning application; residential occupancy of the principal building is prohibited. 2 3. Off-Street Parking: a. The site plan shall be revised to designate a minimum of 14 off-street parking spaces. b. The supply of off-street parking shall conform with Section 11-21-4.C of the Zoning Ordinance related to change in occupancy to ensure the number of spaces required by the Zoning Ordinance are available. c. The design and construction of the off-street parking area shall comply with Section 11-21-7 of the Zoning Ordinance subject to review and approval of the City Engineer. 4. Landscaping: a. The landscape plan shall specify turf grass in the front yard. b. Irrigation shall be provided for all turf grass and planting areas as required by Section 5-2- 3.C.2 of the City Code. 5. All signs shall comply with Chapter 37 of the Zoning Ordinance, subject to issuance of a sign permit of the Zoning Administrator. 6. Any exterior storage of waste containers shall provide for an enclosure that complies with the requirements of Section 11-18-4.C of the Zoning Ordinance, which is subject to review and approval of the Zoning Administrator. 7. The photometric lighting plan shall be revised to be overlaid upon the site plan and is subject to review and approval of the Zoning Administrator prior to issuance of a building permit. 8. All utility plans are subject to review and approval of the City Engineer. 9. One Utility Connection Charge shall be collected when a building permit is issued for the building shell and additional Utility Connection Charges shall be paid for each tenant space based on occupancy subject to Fee Schedule in effect. 10. All grading, drainage, and erosion control plans are subject to review and approval of the City Engineer. 11. Subdivision of the subject property by Common Interest Community shall require submission of declaration documents and be subject to review by the City Attorney and approval of the City Council in the manner of a final plat. 12. The developer shall enter into a Site Improvement Performance Agreement 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) 3 ADOPTED by the Otsego City Council this 23rd day of June, 2025. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2025-28 APPROVING A SITE IMPROVEMENT PERFORMANCE AGREEMENT FOR LOT 2, BLOCK 1, OTSEGO I-94 WEST INDUSTRIAL PARK 4TH ADDITION WHEREAS, Acuity Landholdings LLC (the “developer”) is proposing development of Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition; and WHEREAS, site and building plans for the development were approved by the City Council on 23 June 2025; 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 THAT: 1. The Site Improvement Performance Agreement attached hereto between the City of Otsego and Acuity Landholdings 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 Site Improvement Performance Agreement 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 23rd day of June, 2025. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 1 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition (reserved for recording information) SITE IMPROVEMENT PERFORMANCE AGREEMENT (LOT 2, BLOCK 1, OTSEGO I-94 WEST INDUSTRIAL PARK FOURTH ADDITION) THIS SITE IMPROVEMENT PERFORMANCE AGREEMENT (“Agreement”) dated ____________________, 2025, by and between the CITY OF OTSEGO, a Minnesota municipal corporation (“City”) and ACUITY LAND HOLDINGS, 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 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition, according to the plat thereof on file and of record in the office of the County Recorder, Wright County, Minnesota (hereinafter referred to as the “Subject Property”). B. The development of the above-described property includes the construction of an 11,880 square foot multiple tenant industrial building with uses allowed as provided for in the I-2 General Industrial District. 2 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition 2. CONDITIONS OF APPROVAL. This Agreement is a condition of City site plan approval and will be recorded against the Subject Property. 3. 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 4 below. 4. 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. 5. 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 3 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition G. Setting of Iron Monuments H. Surveying and Staking I. Sidewalks J. Retaining Walls K. 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. 4 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition 6. 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 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. RIGHT TO PROCEED. Within the land to be developed, 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 the development 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 agreement 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 PUD Development Stage Plan and this agreement has been recorded with the Wright County Recorder office. 9. TIME OF PERFORMANCE. The Developer shall install all required public improvements by December 31, 2025. 5 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition 10. STREETS. Streets indicates any work within the public right of way that touches or impacts City streets. Developer agrees to provide proper temporary traffic control signage and maintain traffic on 71st Street NE during construction of entrances and sidewalks associated with the Development. Developer shall complete all necessary street patching and curbing replacement prior to October 31, 2025. If Developer fails to complete all necessary street patching and curbing replacement prior to October 31, 2025, the City shall have the ability to draw on the security provided by the Developer to complete this work. 11. LICENSE. The Developer hereby grants the City, its agents, employees, officers and contractors a license to enter the Subject Property to perform all work and inspections deemed appropriate by the City. 12. 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 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. 13. 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) 6 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition 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 building 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. 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 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. The Developer shall post a security for site grading, erosion and sediment control, and wetland protection in the amount of $2,790.00 which is due upon execution of this Site Improvement Performance Agreement calculated as follows: 0.93 Net Ac. x $3,000.00/Disturbed Ac.= $2,790.00 7 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition 14. CLEAN UP. The Developer shall clean dirt and debris from streets that has resulted from construction work by the Developer, builders, subcontractors, their agents or assigns. Prior to any construction, the Developer shall identify in writing a responsible party and schedule for erosion control, street cleaning, and street sweeping. 15. 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. 16. CITY ENGINEERING ADMINISTRATION AND CONSTRUCTION OBSERVATION. The Developer shall pay a fee for in-house engineering administration. City engineering administration will include monitoring of construction observation, consultation with Developer and its engineer on status or problems regarding the project, coordination for final inspection and acceptance, project monitoring during the warranty period, and processing of requests for reduction in security. Fees for this service shall be three percent (3%) of construction costs identified in the Summary of Security Requirements if using a letter of credit, assuming normal construction and project scheduling. The Developer shall pay for construction observation performed by the City’s consulting engineer. Construction observation shall include part or full time inspection of proposed public utilities and street construction and will be billed on hourly rates estimated to be five percent (5%) of the estimated construction cost. 17. CONSTRUCTION ACCESS. Construction traffic access and egress for grading, public utility construction, and public street construction is restricted to access the subdivision as approved by the City Engineer. 18. TRAFFIC CONTROL SIGNS. The Developer shall pay a cash contribution to the City in the amount of $1,250.00 for installation of five (5) traffic control signs. The fee is calculated as follows: one (1) traffic sign at $250.00 per street sign. 19. LANDSCAPING. Section 11-19-2.B.2 of the City Zoning Ordinance requires a landscape plan that provides for installation of plantings including shade trees along 85th Street and Quaday Avenue at 60 feet on center, at the north line of the subject site at adjoining the outlot with storm water basins, the 8 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition immediate perimeter of the structure, and the perimeter / interior of off-street parking areas. The developer shall submit a landscape plan that meets all requirements. The sizes of the proposed plantings shall comply with Section 11-19-3 of the City Zoning Ordinance and an in-ground irrigation system shall be installed for all lawn and landscaped areas as required by Section 5-2-3.C.1 of the City Code. 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. 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 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 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. Landscaping shall be installed in accordance with the approved landscape plan. The Developer shall post a $14,500.00 landscaping security upon execution of this agreement to ensure that the landscaping is installed in accordance with the approved plan. The Developer shall install turf-grass in the front yard of the development consistent with the approved landscaping plan. The Developer shall provide for irrigation for all turf-grass and planting areas as required by Section 5-2-3.C.2 of the City Code. 9 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition 20. SPECIAL PROVISIONS. The following special provisions shall apply to this Agreement: A. Implementation of the conditions listed in the Findings of Fact and Decision approved by the City Council on June 23, 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. Uses occupying the principal building shall include those permitted uses allowed within the I-2 District or those conditional or interim uses subject to approval of the applicable zoning application; residential occupancy of the principal building is prohibited. D. The Developer shall revise the site plan to designate a minimum of fourteen (14) off-street parking spaces. E. The supply of off-street parking shall conform with Section 11-21-4.C of the Zoning Ordinance related to change in occupancy to ensure the number of spaces required by the Zoning Ordinance are available. F. The design and construction of the off-street parking area shall comply with Section 11-21-7 of the Zoning Ordinance subject to review and approval of the City Engineer. G. All signs shall comply with Chapter 37 of the Zoning Ordinance, subject to issuance of a sign permit by the Zoning Administrator. H. The Developer shall provide for an enclosure for any exterior storage of waste containers complying with the requirements of Section 11-18-4.C of the Zoning Ordinance, subject to review and approval of the Zoning Administrator. I. The Developer shall provide a photometric lighting plan to be overlaid upon the site plan, subject to review and approval of the Zoning Administrator prior to issuance of a building permit. J. All utility plans are subject to review and approval of the City Engineer. K. The Developer shall pay one utility connection charge upon issuance of a building permit for the building shell. The City shall collect additional utility connection charges for each tenant space 10 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition based upon occupancy subject to the Fee Schedule in effect. L. All grading, drainage and erosion control plans shall be subject to review and approval by the City Engineer. M. The Developer shall a provide Common Interest Community Declaration in a recordable form approved by the City, subject to review by the city attorney and approval of the City Council for recording with the Site Improvement Performance Agreement. 21. 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 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 percent (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 national banking institution. 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. 11 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition 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 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. 22. SUMMARY OF SECURITY REQUIREMENTS. The amount of the security described above is calculated as follows: CONSTRUCTION COSTS: A. Site Grading, Erosion & Sediment Control $2,790.00 B. Landscaping 14,500.00 OTHER COSTS SUB-TOTAL $17,290.00 TOTAL – SUBTOTAL $17,290.00 TOTAL IRREVOCABLE LETTER OF CREDIT $21,612.50 FOR SECURITY (125% OF SUBTOTAL) ESCROW A. City Legal Expenses ($1,500 Minimum) $1,500.00 B. City Construction Administration & Utility & Street Inspection 10,000.00 ($10,000.00 Minimum) C. GIS Data Entry Fee 250.00 ESCROW TOTAL $11,750.00 This breakdown is not a restriction on the use of the security. 12 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition 23. 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 executing this Contract: A. City Administrative ($1,500.00 Minimum) $1,500.00 B. Wetland, Street & Traffic Control Signs 1,250.00 TOTAL CASH REQUIREMENTS $2,750.00 24. 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 24, 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 ten percent (10%) of the total security as specified above in the portion of Section 22 of this Contract shall be retained as warranty security calculated as follows. WARRANTY RETAINAGE A. Erosion and Sedimentation Control (minimum $500.00) $500.00 TOTAL WARRANTY LETTER OF CREDIT $500.00 The Developer is not required to post this amount separately but rather this amount shall be retained for warranty purposes from the total security posted according to Section 22 of this Contract until warranty obligations are satisfied. 25. 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, including but not limited to Soil and Water Conservation District charges, legal, planning, engineering and construction observation inspection expenses incurred in connection with approval of the Development, 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 approval 13 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition 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 any claims caused by or through the Developer, its contractors, agents, employees, and owners, 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 bef ore any penalty is attached, any 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 the Development. 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 development and construction until the bills are paid in full. Bills not paid within thirty (30) days shall accrue interest at the rate of eighteen percent (18%) per year. Additionally, the Developer shall pay in full all bills submitted to it by the City prior to any reductions in the security for the development. F. In addition to the charges and special assessments referred to herein, other charges and special assessments may be imposed such as but not limited to sewer availability charges ("SAC"), City water connection charges, City sewer connection charges, and building permit fees. 26. 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. 14 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition 27. MISCELLANEOUS. A. The Developer represents to the City that the Development 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 Development does not comply, the City may, at its option, refuse to allow construction or development work until the Developer does comply. Upon the City's demand, the Developer shall cease work until there is compliance. B. Third parties shall have no recourse against the City under this Contract. C. Breach of the terms of this Contract by the Developer shall be grounds for denial of building permits, including lots sold to third parties. D. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this Contract is for any reason held invalid, such decision shall not affect the validity of the remaining portion of this Contract. E. Grading, curbing, and one lift of asphalt shall be installed on all public and private streets prior to issuance of any building permits. F. If building permits are issued prior to the acceptance of public improvements, the Developer assumes all liability and costs resulting in delays in completion of public improvements and damage to public improvements caused by the City, Developer, its contractors, subcontractors, material men, employees, agents, or third parties. No sewer and water connections or inspections may be conducted and no one may occupy a building for which a building permit is issued on either a temporary or permanent basis until the streets needed for access have been paved with a bituminous surface and the utilities are accepted by the City Engineer. G. The action or inaction of the City shall not constitute a waiver or amendment to the provisions of this Contract. To be binding, amendments or waivers shall be in writing, signed by the parties and approved by written resolution of the City Council. The City's failure to promptly take legal action to enforce this Contract shall not be a waiver or release. 15 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition H. This Contract shall run with the land and may be recorded against the title to the property. In the event this Contract is recorded, upon request by Developer, the City covenants to provide a recordable Certificate of Completion within a reasonable period of time following the request, upon the completion of the work and responsibilities required herein, payment of all costs and fees required and compliance with all terms of the Contract. A release of this Contract may be provided in the same manner and subject to the same conditions as a Certificate of Completion provided there are no outstanding or ongoing obligations of Developer under the terms of this Contract. The Developer covenants with the City, its successors and assigns, that the Developer is well seized in fee title of the property 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; and that the Developer will indemnify and hold the City harmless for any breach of the foregoing covenants. I. Insurance. Prior to execution of this agreement, 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 accepted the public improvements, such insurance as shall protect Developer and its general contractor and the City for work covered by the Contract including workers’ compensation claims and property damage, bodily and personal injury which may arise from operations under this Contract, whether such operations are by Developer and its general contractor or anyone directly or indirectly employed by either of them. The minimum amounts of insurance shall be as follows: 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 16 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition 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. A copy of the endorsement must be submitted with the certificate of insurance. Developer’s and general contractor’s policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty (30) days’ advanced written notice to the City, or ten (10) days’ notice for non-payment of premium. An Umbrella or Excess Liability insurance policy may be used to supplement Developer’s or general contractor’s policy limits on a follow-form basis to satisfy the full policy limits required by this Contract. 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, 17 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition 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 the land, or any part of it, until the City’s issuance of a Certificate of Completion and Release. M. Retaining walls that require a building permit 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 18 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition 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. 28. 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: 564 Dodge Ave NW, Elk River, MN 55330-1934. 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.] 19 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth 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 20 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth Addition DEVELOPER: ACCUITY LAND HOLDINGS, LLC By: Its: STATE OF MINNESOTA ) )ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this ________ day of ______________, 2025, by ___________________________________, the _____________________________________ of ACCUITY LAND HOLDINGS, 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 21 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth 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. 22 236473v1 Lot 2, Block 1, Otsego I-94 West Industrial Park Fourth 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 ______________________________