12-12-11 SCCCITY OF
�. OTSEGO
ON THE GREAT RIVER ROAD
TO: Otsego Mayor and City Council
FROM: Lori Johnson, City Administrator
DATE: December 7, 2011
RE: Special Meeting
1. Former Godfather's Site: On Friday, staff will be meeting with representatives of
the proposed Boondox project on the former Godfather's site. Ron Touchette,
representing the building owner will be at the Council meeting.
2. Great River Centre: Attached is a draft agreement from City Attorney Andy
MacArthur extending the current Great River Centre development agreement
between the City of Otsego and Appello Group, LLC. Todd Plaisted
representing Appello Group and Jonathon Dolphin representing 21St Century
Bank will be at the Council meeting
3. Website: Mayor Stockamp asked that Council provide input to staff on
development of the website. Attached is an article from the last League of
Minnesota Cities magazine "5 Tips for a Successful City Website."
Attachments:
• Draft Great River Centre development agreement extension.
• Article from the LMC magazine "5 Tips for a Successful City Website".
DRAFT- December 8, 2011
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
AGREEMENT BETWEEN THE CITY OF OTSEGO AND APPELLO GROUP,
LLC REGARDING COMPLETION OF PUBLIC IMPROVEMENTS AND
PAYMENT OF CITY ASSESMENTS WITHIN GREAT RIVER CENTRE
AGREEMENT entered this day of , 2011 between Appello Group, LLC
(APPELLO), a Minnesota Limited Liability Company and the City of Otsego (CITY) a
municipal corporation under the laws of the State of Minnesota. This Agreement affects
real property located in Wright County, Minnesota and described as follows:
See Exhibit A.
WHEREAS, APPELLO and CITY previously entered into agreements regarding
completion of certain public improvements; and
WHEREAS, pursuant to those Agreements certain funds were escrowed for that purpose
with 21St Century Bank; and
WHEREAS, APPELLO completed a certain portion of the work in 2010, utilizing the
escrowed funds; and
WHEREAS, APPELLO was to complete the remainder of the public improvements by
July 15, 2011 or to request City extension of the Agreement by April 15, 2011; and
WHEREAS, APPELLO did request extension of the Agreement in writing by the
required date of April 15, 2011 indicating in that letter that they would not be able to
complete the remainder of the required public improvements by July 15, 2011 due to the
current market conditions; and
WHEREAS, the Otsego City Council by resolutions adopted at a regularly scheduled
City Council meeting on April 25, 2011 authorized City staff to draw on the Letter of
Credit unless a satisfactory additional extension Agreement could be reached by July 15,
2011 ; and
WHEREAS, CITY and APPELLO entered into an additional extension Agreement
which was approved by the CITY and executed on or about August 12, 2011; and
WHEREAS the terms and conditions of that Agreement required that APPELLO keep
in place a $300,000.00 Letter of Credit to insure compliance with the original Developers
Agreement and addendums thereto specifically related to timelycompletion of public
improvements and payment of CITY assessments, and
WHEREAS the Letter of Credit was due to expire on November 30, 2011 without a
replacement or extension of the Letter of Credit provided as required by the last extension
Agreement; and
WHEREAS APELLO did not deliver to CITY a replacement or extension of the Letter
of Credit before November 30, 2011; and
WHEREAS, the City drew on the Letter of Credit and has taken possession of the funds;
and
WHEREAS, APPELLO and 21St CENTURY BANK have requested that CITY approve
an additional agreement extending the general terms and conditions of the parties
previous agreements upon payment of a certain portion of special assessments now due
and owing and extension of the Letter of Credit.
NOW, THEREFORE, IT IS AGREED between the Parties as follows:
APPELLO agrees with the conclusion of the City Engineer that the roadways
(specifically Quaday Avenue from 87th Street to 85th Street and 85th Street from
CSAH 42 to Quaday Avenue) within GREAT RIVER CENTRE that have not
received a final lift of bituminous have deteriorated to such an extent that those
roadways will have to be re -milled and an adequate base will have to be laid prior
to application of a wear course of bituminous. APPELLO agrees that this
substantially increases the estimated cost of the work to be completed. Further,
APPELLO specifically agrees not to raise the issue of the adequacy of the initial
laying of the base course or oversight with the CITY and agrees to waive any and
all possible claims or causes of action against the City and its employees, agents
and contractors based upon such allegations. Unfinished public improvements
within the subdivision are set forth on the attached punch list, Exhibit B.
2. APPELLO agrees to hold in escrow any available funds from any closing
scheduled within GREAT RIVER CENTRE (or any of its additions) for lots
owned by APPELLO, said funds to be utilized by the CITY, at its sole discretion,
to complete the remainder of the public improvements required within GREAT
RIVER CENTRE or to be applied against CITY debt service related to unpaid
assessments allocated to APPELLO for the CITY CSAH 42 Project.
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3. APPELLO agrees to fully complete removal of existing base course and
installation of new base course and wear course on 85h Street and Quaday
Avenue as set forth in the City Engineer's e-mail to City staff and APPELLO
dated May 28, 2010 to the satisfaction and approval of the City Engineer by July
8 2013 utilizing funds escrowed from any closing occurring between the date of
execution of this Agreement and July 8, 2013. Additionally, all other required
public improvements (landscaping, street lights, trails/sidewalks) shall also be
completed by July 8, 2013 unless otherwise agreed to by CITY. APPELLO shall
notify CITY of any and all closings for properties within GREAT RIVER
CENTRE and shall prior to the closing disclose any amounts available from that
closing to be placed in escrow for the purpose of constructing the additional
public improvements or covering CITY debt service for the CSAH 42 Project, as
determined at the sole discretion of the CITY. Any funds available for those
purposes, as reasonably determined by CITY, and approved by APPELLO's
lender, shall be placed in escrow for either purpose. The obligation to escrow for
public improvements and/or debt service payments shall remain in force and
effect until such time as all CITY required public improvements within the Plat
have been constructed to the reasonable satisfaction of the City Engineer and
sufficient surety is available to cover all applicable warranties and all delinquent
assessments have been paid.
4. APPELLO agrees to keep in force and effect at all times from this date forward
the required Letter of Credit in at least the amount of $300,000.00 for purposes of
assuring CITY that all public improvements are completed and that assessments
and taxes on GREAT RIVER CENTRE are timely paid as required by the
Developer's Agreement and addendums thereto. This provision is to insure that
the CITY always has available to it security to cover the costs of public
improvements that must be finished by CITY and to assure that taxes and
assessments on the Plat are timely paid. In the event that the CITY must draw
upon any posted Letter of Credit for the purpose of completing public
improvements as set forth in this Agreement or to make needed payments on City
debt service, APPELLO must immediately cause there to be a replacement Letter
of Credit in the same amount, and in force and effect for a period of not less than
one year from the date of posting the Letter of Credit. Any new Letter of Credit
must contain an automatic renewal provision and be issued by an FDIC approved
and insured banking or lending institution with an office at which the Letter of
Credit can be delivered to draw upon within fifty (50) miles of CITY.
5. Upon execution of this Agreement, APPELLO shall pay directly to the CITY
$300,000.00 for payment of a portion of the unpaid special assessments related to
GREAT RIVER CENTRE and owed by APPELLO. APPELLO also agrees to
make payment directly to CITY of at least $37,295 by June 30, 2012 and at least
an additional $75,295.00 by December 31, 2012 both payments to be applied
against Special assessments due and owing by APPELLO. Additionally,
APPELLO shall make the first installment payment of special assessments
due in 2013 on or before May 15, 2013. Said payments shall be applied to the
amount of special assessments owed at the time of the payment, and payment of
these amounts does not reduce assessments due, plus applicable penalties and
interest any more than the amount of said payments. If the payments are not
timely made CITY may at anytime after the due date collect that amount from the
Letter of Credit.
6. Upon execution of this Agreement APPELLO shall deliver to CITY and
extension of the current Letter of Credit with an expiration date of at least Jules
2013. The issuer of the Letter of Credit shall by language included in the Letter of
Credit consent to the terms and conditions of this Agreement.
7. APPELLO must notify the CITY at least two weeks prior to the expiration of the
new Letter of Credit whether or not the BANK will renew the Letter of Credit. In
the event that the Letter of Credit is not reissued, replaced or extended the CITY
will draw down the Letter of Credit and use the proceeds at its sole discretion to
either construct all or a portion of the remaining public improvements or to pay
off existing or future CITY debt service. APPELLO agrees to cooperate with the
CITY's draw on the Letter of Credit. In the event that the CITY draws on the
Letter of Credit it does not reduce, change or modify any obligation that
APPELLO has to the CITY under this Agreement, the original Developer's
Agreement or any addendum or other Agreement between APPELLO and the
CITY related to GREAT RIVER CENTRE, including the obligation to have in
force and effect a Letter of Credit.
8. In the event that the CITY determines that the Letter of Credit must be drawn
down to insure the CITY's ability to make current of future debt service
obligations prior to completion of the public improvements, CITY may determine
that the public improvements must go forward as a CITY Project, in which case
all costs associated with the CITY project may be assessed against lots and outlots
within the Plat owned by APELLO; specifically Outlots I and K, GREAT RIVER
CENTRE FIRST ADDITION; Outlots A,B and C and Lot 1, Block 2; Lots 1 and
2, Block 3 and Lot 1, Block 4 GREAT RIVER CENTRE SECOND ADDITION;
and Oulot A, GREAT RIVER CENTRE THIRD ADDITION. If the CITY
proceeds with a CITY project and assessment APPELLO specifically waives any
and all hearings, irregularities in the proceedings and any right of appeal of
whatever nature including the right of appeal in Minnesota Statute 429.081.
APPELLO specifically agrees that the remaining public improvements increase
the fair market value of the above described properties in at least the amount of
the cost of said improvements.
9. This current Agreement does not affect any of the terms and conditions of those
previous Developers Agreement and amendments thereto between APPELLO and
CITY, unless specifically amended or modified by this Agreement. All other
terms and conditions of the previous Developers Agreement and amendments
thereto shall remain in full force and effect. APELLO specifically agrees that the
4
original Developer's Agreement and addendums thereto are binding and remain
binding on APPELLO, it successors and assigns and that it will not contest the
validity of said Agreements.
10. Any and all required upkeep and repair (such as potholes and crack sealing) of
those portions of the road (85th and Quaday) which will not receive wear course
until the term of this extension, as well as prompt mowing of all lots within the
Plat, are the responsibility of APPELLO. Any such required repairs or mowing, as
determined at the reasonable discretion of the CITY, shall be promptly undertaken
and completed by APPELLO upon receipt of notice of the same from the CITY.
In the event that APPELLO does not promptly make the repairs as required by the
City Engineer or undertake mowing as required by the Zoning Administrator,
CITY may make such repairs and/or undertake mowing and bill the costs of the
repair or mowing as well as any attendant administrative, legal, engineering,
planning or other costs incurred by the CITY to APPELLO which shall promptly
(within thirty days) make such payment. If APPELLO fails to pay for any costs
CITY may draw upon any available escrow or security that it holds to cover these
costs plus interest and/or assess the costs against any property within the Plat
owned by APPELLO. Failure to immediately pay any such repair costs shall be
considered a material breach of this Agreement, and CITY may immediately
terminate the Agreement. In order to assure compliance with these terms and
conditions and to reimburse the CITY for any ongoing expenses incurred as
a result of this Agreement and the Letter of Credit, APPELLO shall upon
execution of this Agreement place $10,000.00 in escrow for these purposes
and shall make such payments into that escrow account from time to time to
keep it at all times at $10,000.00.
9. This Agreement supersedes any and all previous Agreements, oral or written,
regarding extension of the specific items listed only. This Agreement does not
affect or modify any other obligation of APPELLO under the original
Developer's Agreement or addendums thereto, nor is it to be construed as a
waiver of any other obligation of APPELLO by the CITY.
10. This Agreement shall be recorded against the real property described in attached
Exhibit A and its terms and conditions shall run with the land and bind any and all
successors in title or assigns.
Dated:
APPELLO GROUP, LLC
By:
Its
Dated:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
COUNTY OF WRIGHT )
) ss.
STATE OF MINNESOTA)
Subscribed and sworn before me this day of
December, 2011 by the
of Appello Group, LLC on behalf
Of Appello and with authority.
NOTARY PUBLIC
COUNTY OF WRIGHT )
) ss.
STATE OF MINNESOTA)
Subscribed and sworn before me this _ day of
December, 2011 by Jessica Stockamp, Mayor and
Tami Loff, City Clerk on behalf of the City of Otsego
0
and with authority.
NOTARY PUBLIC
DRAFTED BY:
Andrew MacArthur
MACARTHUR LAW OFFICE, LLC
3601 Thurston Ave N.
Suite 103
Anoka, MN 55303
763-231-5850
T E C H W IND O W
5 Tips for a Successful City Website
overnment services and com-
munications are quickly moving
online. Services like 311, utility
and ticket payments, and event
registration are all becoming inte-
grated with the web to provide an
unprecedented level of government -to -
citizen communication.
With this in mind, it is important for
city governments to maintain a func-
tional, well-designed web -site that is a
critical source of community information.
In the first era of city websites, the
sites were simple, containing a few
descriptions and contact information.
But modern users expect far more from
government websites.Timely informa-
tion, ease of use, and modern graphic
design are all requirements of the new
wave of city websites. If your city hasn't
looked at its website in a long time it
might be time to think about modern-
izing it. Below are a few tips to update
your city's website to appeal to increas-
ingly web -savvy citizens.
Usability trumps style. At its core
a city website needs to be functional.
While exploring a municipal website
redesign, try not to fall into the trap
of making something too flashy. Citi-
zens are visiting the site to quickly
find information and don't want to
sit through flashy animations, graphic
design, or other gimmicks to find it.
Keep things clean, simple, and easy
to use.
For an example, look at Fairfax
County, Va. The county wanted to
update its website and when they
released an artsy, flash -filled version,
citizens negatively reacted to the
design citing difficulty finding infor-
mation, increased load times, and
distracting photos and colors.The
county eventually ended up with a
website that focused more on usability
than design, and user satisfaction dra-
matically improved.
By Tim Verras
Organize by task, not department.
Many cities structure their website
just like their internal organization.
However, most citizens are looking
to perform a task and may not
understand how the city's depart-
ments are structured.
Instead, organize information in
terms of what tasks citizens are going to
perform.You likely already know what
these tasks are because they are the
same ones that generate frequent foot
and phone traffic—ticket payment, city
council meeting information, taxes, and
contact information. Give these tasks
precedence on the site and make them
easy to find and simple to use.
As an example, let's look at paying
a ticket online.While the finance or
accounting department might actu-
ally handle the transaction, this would
not be the best place to put the ticket
payment section on the website.To a
citizen, tickets come from police so that
is the first place they are likely to look.
If your city does online payments,
create a central hub to house all types
of payments from tickets to bills in
one easy place and then link to it from
the police page and the home page.
Remember, the easier you make it for
citizens to find the online payments, the
more likely the city gets paid and the
less time staff has to spend administer-
ing the program. This is a great way to
reduce costs and traffic at city facilities.
Don't sell ads. The cost of maintain-
ing a website might tempt some cities
to recoup the money by selling ads to
local advertisers or search engine com-
panies.This is a mistake. Citizens expect
a government website to provide quick
and easy information without being
hassled by ads.
If ads get in the way of citizens finding
information, they will react negatively
and lose trust in the city's ability to
provide easy -to -find information. Fur-
thermore, an advertising program requires
a lot of additional work for staff.
Update regularly. Nothing will kill
citizen usage of the city website faster
than finding it stocked with old, useless
information.A government website
needs to be actively maintained and
groomed on a regular basis. -Before
creating time -intensive features like cal-
endars, agendas, news feeds, and blogs,
make sure your staff can keep them
regularly updated. If the citizens don't
trust the information on the website,
they won't return. This might lead to
increased calls and foot traffic at city
hall, which can decrease operational
efficiency and increase costs.The power
of the web is that it can be instantly
updated, so make sure to harness that
power by keeping your website fresh.
Consider mobile devices. If your city
is redesigning its website, keep mobile
devices in mind.The new generation of
citizens is increasingly using phones and
other devices to access the web. If the
city's website is not accessible or legible
on these devices, it will negatively
impact some citizens' perception of the
city, especially that of younger citizens.
As the use of mobile devices grows,
maintaining a mobile -friendly website
will become increasingly important.
As you think about your website,
remember that it is a reflection of
your city. It needs to be updated,
modern, and well -kept just like your
town square.
This article was originally published in
Sophicity's CitySmart Newsletter.
Reprinted with permission from Sophicity
(sophicity.com), a Georgia -based munici-
pal IT consulting firm.
N O v E M B E R -DECEMBER 2 0 1 1 MINNESOTA CITIES 25