ITEM 3.10 Drainage East Waterfront Eastp
Ot§e F o
MINNESOTA C
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Administration
Lori Johnson, City Administrator
May 9, 2016
PRESENTER(s):
REVIEWED BY:
ITEM #:
Consent
Andy MacArthur, City Attorney
3.10
AGENDA ITEM DETAILS
RECOMMENDATION:
Recommend approval of the attached Drainage Maintenance and Repair Agreement between the City of
Otsego and GCI Capital, Inc. to facilitate the development of property in Waterfront East.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes
No
BACKGROUNDMUSTIFICATION:
Development of a professional office building in the Waterfront East development is progressing and
closing is scheduled for next week. As part of the closing documents, the developers have requested
that the City enter into an agreement for the discharge and drainage of storm water runoff into the
City's retention pond. Although this is already addressed through previous development documents
and construction of the public storm water system, the developers are requesting affirmation through a
formal agreement.
The City Attorney has reviewed and approved the attached Drainage Maintenance and Repair
Agreement and recommends Council approval.
SUPPORTING DOCUMENTS: X ❑ ATTACHED ❑ NONE
• Drainage Maintenance and Repair Agreement
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Motion to approve the Drainage Maintenance and Repair Agreement between the City of Otsego and
GCI Capital, Inc.
BUDGET INFORMATION
FUNDING: BUDGETED: X ❑ YES
N/a
❑ NO
DRAINAGE MAINTENANCE AND REPAIR AGREEMENT
THIS DRAINAGE MAINTENANCE AND REPAIR AGREEMENT ("Agreement") is
made and entered into on , 2016, by and between the City of Otsego,
Minnesota, a Minnesota municipal corporation ("City"), and GCI Capital, Inc., a
Minnesota corporation ("GCI").
RECITALS
A. GCI obtained fee ownership of certain real property located within the
City by foreclosing its mortgage encumbering the real property, which foreclosure was
completed in 2011; GCI continues to own some of the real property, all of which is
located in Wright County and is legally described as follows:
1. Outlot K, Otsego Waterfront East;
2. Outlots A, B, C and D, Otsego Waterfront East Third Addition; and
3. Lot 1, Block 1, Otsego Waterfront East Third Addition;
(collectively the "Property" and individually a "Parcel')
B. The Property is subject to a Declaration of Covenants, Conditions,
Restrictions and Grant of Easements dated March 16, 2005, and filed for record in the
office of the Wright County Recorder on May 16, 2005, as Document No. A959297
("Declaration").
C. The real property encumbered by the Declaration, which includes the
Property, is both burdened and benefitted by non-exclusive easements for, among
other things, the discharge and drainage of storm water runoff into the retention pond
located on Outlot A, Otsego Waterfront East, Wright County, Minnesota (the "Pond").
D. The City holds fee title to an undivided 85.66% of Outlot A, Otsego
Waterfront East, by virtue of a quit claim deed from GCI to the City filed for record in
the office of the Wright County Recorder on July 18, 2011, as Document No. A1179699;
the other 14.34% interest in Outlot A, Otsego Waterfront East, is owned by owners of
other real property encumbered by the Declaration.
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E. The City has agreed to certain obligations relative to the repair and
maintenance of the Pond for the benefit of GCI, the Property, and all other real property
encumbered by the Declaration.
AGREEMENT
1. The foregoing Recitals are incorporated into the body of this Agreement
as if fully set forth herein.
2. In addition to the City's assumption of liabilities relating to Outlot A,
Otsego Waterfront East, as previously stated in paragraph number 11 of the Agreement
between the City and GCI dated June 29, 2011, and filed for record in the office of the
Wright County Recorder on June 30, 2011, as Document No. A1178736, the City further
expressly agrees to undertake all necessary repair and maintenance of the Pond located
on Outlot A, Otsego Waterfront East, on an ongoing basis and in perpetuity, for the
benefit of GCI, the Property, and all other real property encumbered by the Declaration.
In the event the Pond ceases to function adequately for the detention and retention of
storm water runoff from the Property, the City agrees to work with the then owners of
the Property to provide other storm water retention and detention ponding.
3. The Property owners, pursuant to the Declaration, are entitled to access
and use the Pond and associated Water Detention and Drainage Facilities (as defined in
the Declaration) pursuant to the non-exclusive easements contained in the Declaration.
4. This Agreement will be construed according to the laws of Minnesota.
5. This Agreement will run with and be appurtenant to the Property, and
will be recorded against the title to the Property and Outlot A, Otsego Waterfront East.
6. This Agreement may be executed in counterparts.
IN WITNESS WHEREOF, the parties have hereunto set their hands the day and
year first above written.
(counterpart signature pages follow)
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COUNTERPART SIGNATURE PAGE TO THE DRAINAGE MAINTENANCE AND REPAIR
AGREEMENT BETWEEN THE CITY OF OTSEGO AND GCI CAPITAL, INC.
CITY OF OTSEGO
By: Jessica Stockamp
Its: Mayor
By: Ta m i Loff
Its: City Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me on
2016, by Jessica Stockamp and Tami Loff, the Mayor and City Clerk, respectively, of the
City of Otsego, a Minnesota municipal corporation, on behalf of the corporation.
Notary Public
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COUNTERPART SIGNATURE PAGE TO THE DRAINAGE MAINTENANCE AND REPAIR
AGREEMENT BETWEEN THE CITY OF OTSEGO AND GCI CAPITAL, INC.
GCI CAPITAL, INC.
By: Lee Erhard
Its: President
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me on
2016, by Lee Erhard, the President, of GCI Capital, Inc., a Minnesota corporation, on
behalf of the corporation.
THIS INSTRUMENT WAS DRAFTED BY:
Melchert Hubert Sjodin PLLP (rmh)
121 West Main Street, Suite 200
Waconia, MN 55387
952.442,7700
Notary Public
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