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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