Item 3.9p
Otse F o
MINNESOTA g
DEPARTMENT INFORMATION
Request for
City Council Action
ORGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Legal
Andy MacArthur
November 13, 2012
PRESENTER(s):
REVIEWED BY:
ITEM #:
Consent
City Administrator
3.9
AGENDA ITEM DETAILS
RECOMMENDATION: Council approval of attached Resolution modifying the special assessments to be
certified to the County reflecting payments made as partial pre -payments from Appello Group, LLC to
the City pursuant to Agreement between the City and Appello dated December 29, 2011.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No.
No.
BACKGROUND/JUSTIFICATION: The City entered into a written Agreement with Appello Group, LLC and 21St
Century Bank in December of last year allowing them to proceed without default on the Developers
Agreement if they would timely make pre -payments on the assessments for County 42 according to the
schedule adopted in the Agreement. Appello made an initial payment of $300,000.00 to the City as well
as a payment of $37,705.00 which was received this summer. The Agreement also calls for an additional
payment by the end of the year in the amount of $75,295.00. City staff advised Appello and the Bank
that we could not reduce the final payment amount from next year's assessment unless it was received
prior to this meeting or suitable security for the payment was submitted. 21St Century bank has agreed
to submit a Letter of Credit in the amount of $75,295.00 to insure City receipt of the last payment.
The resolution certifies the current assessment amount minus the payments received to the County for
inclusion on next year's tax rolls.
SUPPORTING DOCUMENTS: xo ATTACHED n NONE
List: Resolution and Exhibit
MOTION: (Please word motion as you would like it to appear in the minutes.) Motion to Approve Resolution No. 2012 -XX
Modifying Assessment- A Portion of City Project No. 2006-09.
BUDGET INFORMATION
FUNDING: BUDGETED: ❑ YES
NA ❑ NO
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
EXHIBIT A- ASSESSMENTS
APPELLO GROUP, LLC PROPERTIES
GREAT RIVER CENTRE OF OTSEGO
Outlot I
Great River Centre of Otsego
PID # 118-239-000090
#28830- $11,780.46
#31330- $ 15,524.77
#28930 A -C $ 125,220.98
Total All Projects- $152,526.21
Lot I, Block 2
Great River Centre of Otsego 2"d Addition
PID # 118-252-002010
#28830- $7,727.07
#31330- $10,839.52
#28930 A -B- $82,060.94
Total All Projects- $ 100,627.53
Lot 1, Block 3
Great River Centre of Otsego 2nd Addition
PID # 118-252-003010
#28830- $6,671.97
#31330- $9,422.77
#28930 A- $71,191.24
Total All Projects- $ 87,285.98
Lot 2, Block 3
Great River Centre of Otsego 2°d Addition
PID # 118-252-003020
#28830- $4,074.93
#31330- $5,756.68
#28930 A- $43,456.80
Total All Projects- $ 53,288.41
Lot 1, Block 4
Great River Centre of Otsego
PID # 118-252-004010
#28830- $ 13,090.04
#31330- $ 18,421.87
#28930 A -C- $ 139,341.94
TOTAL ALL PROJECTS- $ 170,853.85
Outlot A
Great River Centre of Otsego 3rd Addition
PID # 118-266-000010
#31330- $ 264,784.04
TOTAL ALL PROJECTS- $ 264,784.04
2
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2012- 75
RESOLUTION MODIFYING ASSESSMENT- A PORTION OF CITY
PROJECT NO. 2006-09
WHEREAS, the property owners of Great River Centre (Appello Group, LLC)
petitioned the City for construction of certain public improvements adjacent to the
Plat of Great River Centre of Otsego, specifically needed improvements to County
Highway 42 designated as Otsego City Project No. 2006-09 and agreed to pay
100% of their share of the assessment and waive all procedural challenges and any
right of appeal as set forth in the Developers Agreement between the City and
Appello Group, LLC and subsequent addendums to that Agreement; and
WHEREAS, the property owners have sold certain lots within the Plat and
currently own the following properties: Outlot I, Great River Centre of Otsego
(PID # 118-239-000090), Lott, Block 2, Great River Centre of Otsego 2nd
Addition (PID # 118-252-002010), Lot 1, Block 3, Great River Centre of Otsego
2nd Addition (PID # 118-252-003010), Lot 2, Block 3, Great River Centre of
Otsego 2nd Addition (PID # 118-252-003020), Lot 1, Block 4, Great River Centre
of Otsego 2nd Addition (PID # 118-252-004010) and Outlot A, Great River Centre
of Otsego 3rd Addition (PID # 118-266-000010) ; and
WHEREAS, each of the above lots carries a portion of the assessments for Otsego
City Project No. 2006-09; and
WHEREAS, the City of Otsego and Appello Group, LLC and 21St Century Bank
arrived at an Agreement dated December 29, 2011 which includes provisions
related to principal reduction of certain portions of the previously adopted
assessment.
NOW, THEREFORE IT IS RESOLVED by the City Council of the City of
Otsego, Minnesota as follows:
1. That the Assessment for Great River Centre designated as City Project No.
2006-209 and affecting the parcels listed above is hereby adopted as
modified to reflect principal reductions by the City as set forth on the
attached Exhibit A. The adopted assessment roll shall replace the current
assessments against the property previously certified.
ADOPTED, this 13th day of November, 2013 by the Otsego City Council.
MOTION MADE BY
IN FAVOR:
OPPOSED:
2
and SECONDED by
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk