10-13CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2010-13
RESOLUTION DECLARING DEFAULT IN TERMS AND CONDITIONS OF
ESCROW AGREEMENT FOR REQUIRED IMPROVEMENT OF ROADS AND
PUBLIC IMPROVEMENTS WITHIN GREAT RIVER CENTRE
WHEREAS, the original Developer's Agreement between the City of Otsego (CITY)
and Appello Group, LLC (APPELLO) required APPELLO to undertake and complete
certain public improvements within the Plat of GREAT RIVER CENTRE, including
construction of Plat streets and other public improvements to the satisfaction of the City
Engineer; and
WHEREAS, certain roads within the Plat were constructed, but no final lift of
bituminous was ever laid to this date, and certain other required public improvements
have not been constructed in the time frame required by the Developer's Agreement; and
WHEREAS, the above mentioned deficiencies in completing public improvements, as
well as others, have been brought to the attention of APPELLO over the course of the last
four years; and
WHEREAS, in order to facilitate closing and development of a portion of the Plat, CITY
entered into an Agreement between the CITY, APPELLO and 21St Century Bank
(BANK) in which $125,000.00 would be held in escrow from a closing on development
property within the Plat for purposes of insuring that the final lift of bituminous and other
required work would be completed by June 1, 2010; and
WHEREAS, APPELLO has not completed the required improvements by June 1 as
required by the Agreement.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Otsego,
Wright County, Minnesota as follows:
1. The CITY hereby declares that APPELLO has breached the conditions of that
Agreement between the CITY, APPELLO and BANK regarding construction of
certain improvements by APPELLO on or before June 1, 2010.
2. Pursuant to the terms and conditions of that Agreement, CITY hereby draws upon
the money held in escrow by BANK for the purposes of undertaking the needed
public improvements as soon as possible.
3. CITY staff are hereby directed to deliver this resolution and any other required
documents to the BANK and draw upon the money being held in escrow.
4. The Mayor and City Clerk are hereby authorized to execute on behalf of the CITY
any additional documents required to make the draw.
IN FAVOR: MAYOR STOCKAMP; CM SCHARBER, CM DARKENWALD AND CM HEIDNER
OPPOSED: NONE
CITY OF OTSEGO
ojwua CK
JIF
ca Stockamp, Mayor
Tami Loff, City Clerk
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