ITEM 7.2B Great River Centre 4th AdditionN._y
CITY O
OtSego
F
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Legal
Andy MacArthur, City Attorney
May 9, 2016
PRESENTER(s):
REVIEWED BY:
ITEM #:
City Attorney
Lori Johnson, City Administrator
7.2B
AGENDA ITEM DETAILS
RECOMMENDATION:
Staff recommends that the attached resolution be adopted releasing LOT 1, BLOCK 1 GREAT RIVER
CETRE OF OTSEGO from certain previous Developers Agreements.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No.
No.
BACKGROUND/JUSTIFICATION:
The City recently entered into a Purchase Agreement with P&F Properties, Inc. for the sale of LOT 1,
BLOCK 1. Prior to closing on the property the City has been asked by the Purchaser to release certain
previous Developers Agreements that show up on title. These Agreements are no longer in affect and
the Developer is now entering into a separate Developers Agreement with the City.
SUPPORTING DOCUMENTS: x ATTACHED ❑ NONE
Resolution Releasing Certain Property From Recorded Developers Agreements- Lot 1, Block 1 GREAT
RIVER CENTRE OF OTSEGO FOURTH ADDITION
MOTION: (Please word motion as you would like it to appear in the minutes.) Motion to approve Resolution NO. 2016-46
Resolution Releasing Certain Property From Recorded Developers Agreements- Lot 1, Block 1 GREAT
RIVER CENTRE OF OTSEGO FOURTH ADDITION.
BUDGET INFORMATION
FUNDING:
ACTION TAKEN
BUDGETED: ❑ YES
❑ NO
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO.2016-46
RESOLUTION RELEASING CERTAIN PROPERTY FROM RECORDED
DEVELOPERS AGREEMENTS- LOT 1, BLOCK 1 GREAT RIVER
CENTRE OF OTSEGO FOURTH ADDITION
WHEREAS, the CITY OF OTSEGO owns certain property within the CITY OF
OTSEGO described as follows:
LOT 1, BLOCK 1 GREAT RIVER CENTRE OF OTSEGO FOURTH
ADDITION all according to the Plat on file and of record at the Office of the
County Recorder, Wright County, Minnesota; and
WHEREAS, THE CITY OF OTSEGO intends to sell LOT 1, BLOCK 1 GREAT
RIVER CENTRE OF OTSEGO FOURTH ADDITION to P&F PROPERTIES,
INC.; and
WHEREAS, the CITY OF OTSEGO entered into certain agreements with the
previous owner APPELLO GROUP, LLC and 2IST CENTURY BANK as
follows: DEVELOPMENT AGREEMENT GREAT RIVER CENTRE OF
OTSEGO by and between APPELLO GROUP, LLC and the CITY OF OTSEGO
dated May 16, 2006, filed June 15, 2006 as Document No. Al014006 and First
Addendum dated October 29, 2007, filed January 9, 2009 as Document No.
Al106268 and Second Addendum dated September 22, 2008, filed January 9,
2009 as Document No. Al 106287 at the Office of the County Recorder, Wright
County, Minnesota, and AGREEMENT BETWEEN THE CITY OF OTSEGO
and APPELLO GROUP, LLC RELATIVE TO ASSESSMENTS dated March 9,
2010, filed April 5, 20110 as Document No. Al 144338 and AGREEMENT
BETWEEN THE CITY OF OTSEGO, APPELLO GROUP, LLC AND 21sT
CENTURY BANK dated March 29, 2013, filed April 19, 2013 as Document No.
A1234757 at the Office of the County Recorder, Wright County, Minnesota.
WHEREAS, P&F PROPERTIES, INC. has requested release of LOT 1, BLOCK
1 from these various Agreements.
NOW, THEREFORE it is hereby resolved by the City Council of the City of
Otsego, Wright County, Minnesota as follows:
The CITY OF OTSEGO hereby releases LOT 1, BLOCK 1 GREAT
RIVER CENTRE OF OTSEGO FOURTH ADDITION from the terms and
conditions of the following Agreements: DEVELOPMENT AGREEMENT
GREAT RIVER CENTRE OF OTSEGO by and between APPELLO GROUP,
LLC and the CITY OF OTSEGO dated May 16, 2006, filed June 15, 2006 as
Document No. Al014006 and First Addendum dated October 29, 2007, filed
January 9, 2009 as Document No. Al 106268 and Second Addendum dated
September 22, 2008, filed January 9, 2009 as Document No. Al 106287 at the
Office of the County Recorder, Wright County, Minnesota, and AGREEMENT
BETWEEN THE CITY OF OTSEGO and APPELLO GROUP, LLC
RELATIVE TO ASSESSMENTS dated March 9, 2010, filed April 5, 20110 as
Document No. A1144338 and AGREEMENT BETWEEN THE CITY OF
OTSEGO, APPELLO GROUP, LLC AND 21 sT CENTURY BANK dated
March 29, 2013, filed April 19, 2013 as Document No. A1234757 at the Office
of the County Recorder, Wright County, Minnesota.
2. Release of the Agreements as set forth above is contingent upon transfer of
LOT 1, BLOCK 1 GREAT RIVER CENTRE OF OTSEGO FOURTH
ADDITION from the CITY OF OTSEGO to P&F PROPERTIES, INC.
APPROVED this 9th day of May, 2016 by the Otsego City Council.
Motion to approve made by Council Member and seconded by
Council Member
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
2
0
OtsTe F o
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Administration
Adam Flaherty, Finance Director
May 9, 2016
PRESENTER(s):
REVIEWED BY:
ITEM #:
Adam Flaherty, Finance Director
City Administrator Johnson
7.2C
AGENDA ITEM DETAILS
RECOMMENDATION:
It is recommended by staff that the City Council adopt the attached resolution for the modification of
special assessments related to the P&F Machining project at Great River Centre Fourth Addition.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
On February 22, 2016, the City Council adopted resolutions for the certification of special assessments
for County Road 42 and Quaday Avenue Improvements. These special assessments are inter -mingled
with many other aspects of the development project for P&F Machining, primarily the TIF District. At the
time those assessments were certified, the expected life of the TIF District was estimated to be 7 years.
Subsequently, the life of the TIF District has been extended to the full 9 years allowed by Statute.
The Developer has requested that the installment terms of the County Road 42 and Quaday Avenue
special assessments be modified to a 9 year amortization schedule to better match the life of the TIF
District. The installment terms for the Water and Sewer Availability & Connections charges will remain
unchanged.
Amortization schedules have been attached to illustrate the effects of the requested change in the
installment terms.
SUPPORTING DOCUMENTS: ATTACHED NONE
• Resolution 2016-47 & Exhibit A (Amortization Schedule)
• Comparative Amortizations for 7 Year vs. 9 Year Installment Terms
PCIGSIRI F MOTION
Please word motion as you would like it to appear in the minutes.
-Motion to approve Resolution 2016-47, Adopting modifications to previously adopted special
assessments for Lot 1, Block 1, Great River Centre Fourth Addition.
RIInGFT INFORMATION
FUNDING: BUDGETED:
N/A N/A
ACTION TAKFN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2016-47
RESOLUTION ADOPTING MODIFICATIONS TO PREVIOUSLY
ADOPTED SPECIAL ASSESSMENTS FOR
LOT 1, BLOCK 1, GREAT RIVER CENTRE FOURTH ADDITION
WHEREAS, the City of Otsego is the Owner of the property legally identified as Lot 1, Block 1, Great River
Centre Fourth Addition; and
WHEREAS, the Otsego City Council previously adopted Resolution 2016-22 on February 22, 2016
outlining the re -assessment of costs in relation to improvements made to County Road 42; and
WHEREAS, the Otsego City Council previously adopted Resolution 2016-23 on February 22, 2016
outlining the assessment of costs in relation to improvements for Quaday Avenue; and
WHEREAS, the Otsego City Council would like to change the installment terms of the assessments adopted
within the respective resolutions identified above; and
WHEREAS, as Owner, the City of Otsego hereby petitions for and consents to the assessments set forth
herein and waives any and all hearings, irregularities in procedure, and any all rights of appeal under
Minnesota Statute 429.081, or any other statute or case law; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO,
NHNNESOTA:
That the installment terms of the assessments adopted in Resolution 2016-22 be superseded by the
new installment terms identified in No. 2 of this resolution.
2. That such assessment for County Road 42 Improvements against Lot 1, Block 1, Great River Centre
Fourth Addition in the principal amount of $432,582.68 shall be payable in equal annual principal
installments extending over a period of nine (9) years, the first of the installments to be payable on or
before the first Monday in January 2018, and shall bear interest at the rate of 4.375% percent per
annum. Said interest will commence on January 1, 2018. To each subsequent installment when due
shall be added interest for one year on all unpaid assessments.
3. That the installment terms of the assessments adopted in Resolution 2016-23 for Lot 1, Block 1,
Great River Centre, be superseded by the new installment terms identified in No. 4 of this resolution.
4. That such assessment for Quaday Avenue Improvements against Lot 1, Block 1, Great River Centre
Fourth Addition in the principal amount of $163,485.45 shall be payable in equal annual principal
installments extending over a period of nine (9) years, the first of the installments to be payable on or
before the first Monday in January 2018, and shall bear interest at the rate of 3.25% percent per
annum. Said interest will commence on January 1, 2018. To each subsequent installment when due
shall be added interest for one year on all unpaid assessments.
5. That copies of said assessments are attached hereto as Exhibit A and made a part hereof, is hereby
accepted and shall constitute the special assessment against the lands named therein, and each tract of
land therein included in hereby found to be benefitted by the improvements in the amount of the
assessment levied against it.
6. The owner of any property so assessed may, at any time prior to certifications of the assessment
to the county auditor, pay the whole of the assessment on such property, with interest accrued to
the date of payment, to the Otsego City Clerk, except that no interest shall be charged if the entire
assessment is paid within 30 days from the adoption of this resolution; and the owner may, at any
time thereafter, pay to the Otsego City Clerk the entire amount of the assessment remaining
unpaid, with interest accrued to December 31 of the year in which such payment is made. Such
payment must be made before November 15 or interest will be charged through December 31 of
the next succeeding year.
7. The Otsego City Clerk shall forthwith transmit a certified duplicate of this assessment to the
county auditor to be extended on the property tax lists of the county. Such assessments shall be
collected and paid over in the same manner as other municipal taxes.
ADOPTED by the Otsego City Council this 9th day of May, 2016.
ATTEST:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
MOTION made by Council Member and SECONDED by Council Member
IN FAVOR:
OPPOSED:
2
City of Otsego
Special Assessments - Amortization Schedule
Reassessment - Outstanding CR42 Improvements
r Great River Centre - Fourth Addition
l� Lot 1 Block 1
Payment
Year Assessed Principal Interest Total Balance
2016 432,582.68
-
-
-
432,582.68
2017 -
-
-
-
432,582.68
2018 -
48,064.74
18,925.49
66,990.23
384,517.94
2019 -
48,064.74
16,822.66
64,887.40
336,453.20
2020 -
48,064.74
14,719.83
62,784.57
288,388.46
2021 -
48,064.74
12,617.00
60,681.74
240,323.72
2022 -
48,064.74
10,514.16
58,578.90
192,258.98
2023 -
48,064.74
8,411.33
56,476.07
144,194.24
2024 -
48,064.74
6,308.50
54,373.24
96,129.50
2025 -
48,064.74
4,205.67
52,270.41
48,064.76
2026 -
48,064.76
2,102.83
50,167.59
0.00
Totals 432,582.68 94,627.47 527,210.15
City of Otsego
Special Assessments - Amortization Schedule
Assessment - Quaday Avenue Extension
Great River Centre - Fourth Addition
Lot 1 Block 1
Payment
Year Assessed Principal Interest Total Balance
2016 163,485.45
-
-
-
163,485.45
2017 -
-
-
-
163,485.45
2018 -
18,165.05
5,313.28
23,478.33
145,320.40
2019 -
18,165.05
4,722.91
22,887.96
127,155.35
2020 -
18,165.05
4,132.55
22,297.60
108,990.30
2021 -
18,165.05
3,542.18
21,707.23
90,825.25
2022 -
18,165.05
2,951.82
21,116.87
72,660.20
2023 -
18,165.05
2,361.46
20,526.51
54,495.15
2024 -
18,165.05
1,771.09
19,936.14
36,330.10
2025 -
18,165.05
1,180.73
19,345.78
18,165.05
2026 -
18,165.05
590.36
18,755.41
-
Totals 163,485.45 26,566.38 190,051.83
City of Otsego
Special Assessments - Amortization Schedule
Reassessment - Outstanding CR42 Improvements
Great River Centre - Fourth Addition
Lot 1 Block 1
Payment
Year Assessed Principal Interest Total Balance
2016
432,582.68
-
-
-
432,582.68
2017
-
-
-
-
432,582.68
2018
-
61,797.53
18,925.49
80,723.02
370,785.15
2019
-
61,797.53
16,221.85
78,019.38
308,987.62
2020
-
61,797.53
13,518.21
75,315.74
247,190.09
2021
-
61,797.53
10,814.57
72,612.10
185,392.56
2022
-
61,797.53
8,110.92
69,908.45
123,595.03
2023
61,797.53
5,407.28
67,204.81
61,797.50
2024
-
61,797.50
2,703.64
64,501.14
-
Totals
432,582.68
75,701.96
508,284.64
Payment
Year
Assessed
Principal
Interest
Total
Balance
2016
432,582.68
-
-
-
432,582.68
2017
-
-
-
-
432,582.68
2018
-
48,064.74
18,925.49
66,990.23
384,517.94
2019
-
48,064.74
16,822.66
64,887.40
336,453.20
2020
-
48,064.74
14,719.83
62,784.57
288,388.46
2021
-
48,064.74
12,617.00
60,681.74
240,323.72
2022
-
48,064.74
10,514.16
58,578.90
192,258.98
2023
-
48,064.74
8,411.33
56,476.07
144,194.24
2024
-
48,064.74
6,308.50
54,373.24
96,129.50
2025
-
48,064.74
4,205.67
52,270.41
48,064.76
2026
-
48,064.76
2,102.83
50,167.59
0.00
Totals
432,582.68
94,627.47
527,210.15
City of Otsego
Special Assessments - Amortization Schedule
Assessment - Quaday Avenue Extension
Great River Centre - Fourth Addition
Lot 1 Block 1
Payment
Year Assessed
Principal
Interest
Total
Balance
2016 163,485.45
-
-
-
163,485.45
2017 -
-
-
-
163,485.45
2018 -
23,355.06
5,313.28
28,668.34
140,130.39
2019 -
23,355.06
4,554.24
27,909.30
116,775.33
2020 -
23,355.06
3,795.20
27,150.26
93,420.27
2021 -
23,355.06
3,036.16
26,391.22
70,065.21
2022 -
23,355.06
2,277.12
25,632.18
46,710.15
2023
23,355.06
1,518.08
24,873.14
23,355.09
2024 -
23,355.09
759.04
24,114.13
-
Totals
163,485.45
21,253.12
184,738.57
Payment
Year Assessed
Principal
Interest
Total
Balance
2016 163,485.45
-
-
-
163,485.45
2017 -
-
-
-
163,485.45
2018 -
18,165.05
5,313.28
23,478.33
145,320.40
2019 -
18,165.05
4,722.91
22,887.96
127,155.35
2020 -
18,165.05
4,132.55
22,297.60
108,990.30
2021 -
18,165.05
3,542.18
21,707.23
90,825.25
2022 -
18,165.05
2,951.82
21,116.87
72,660.20
2023 -
18,165.05
2,361.46
20,526.51
54,495.15
2024 -
18,165.05
1,771.09
19,936.14
36,330.10
2025 -
18,165.05
1,180.73
19,345.78
18,165.05
2026 -
18,165.05
590.36
18,755.41
-
Totals 163,485.45 26,566.38 190,051.83
OtCI�egoF
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Legal
Andy MacArthur, City Attorney
May 9, 2016
PRESENTER(s):
REVIEWED BY:
ITEM #:
City Attorney
Lori Johnson, City Administrator
7.2D
AGENDA ITEM DETAILS
RECOMMENDATION:
Staff recommends that the attached resolutions be adopted approving the attached Developers
Agreement between the City and P&F Properties, Inc. and approving sale of the property to P&F
Properties, Inc.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes.
No.
BACKGROUNDMUSTIFICATION: The City recently entered into a Purchase Agreement with P&F Properties, Inc.
for the sale of LOT 1, BLOCK 1. The City is currently looking at TIF assistance to that property. Prior to
closing on the property the City needs to record the recently approved Plat with the County, enter into a
development TIF agreement and enter into a specific Development Agreement for the Lot upon which
P&F will construct their building. The Plat has been recorded at the County.
The attached Developers Agreement is a fairly standard Agreement for a commercial building but it also
references the concurrent construction of a portion of Quaday Avenue, the assessments that will be
placed against the property, and construction and use of a retention pond which is partially located on
the adjacent City owned Outlot A.
The Agreement requires security to cover public improvements on the property, specifically the
retention pond and water lines. The City has agreed to approve this Agreement prior to closing on the
property.
The Title Company is also requiring a Resolution from the City Council approving the sale of the property
to P&F.
SUPPORTING DOCUMENTS: x ATTACHED ❑ NONE
• Resolution Approving Developers Agreement.
• Developers Agreement.
• Resolution Approving Sale of Property.
MOTION: (Please word motion as you would like it to appear in the minutes.
Motion to approve Resolution No. 2016-48 Approving Developers Agreement- Great River Centre of
Otsego Fourth Addition- Lot 1, Block 1 and to approve Resolution No. 2016-49 Approving Sale of Real
Property.
BUDGET INFORMATION
FUNDING: I BUDGETED: ❑ YES
❑ NO
ACTION TAKEN
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO.2016-48
RESOLUTION APPROVING DEVELOPERS AGREEMENT- GREAT
RIVER CENTRE OF OTSEGO FOURTH ADDITION- LOT 1, BLOCK 1
WHEREAS, P&F Properties, Inc. intends to construct a building upon LOT 1,
BLOCK 1 of a previously approved Plat known as GREAT RIVER CENTRE OF
OTSEGO FOURTH ADDITION; and
WHEREAS, the approved work on the Lot requires construction of some public
improvements and payment of City costs and fees; and
WHEREAS, those obligations are contained and memorialized in the attached
Developers Agreement; and
WHEREAS, the Developers Agreement also sets forth the security required to
assure satisfactory construction of public improvements and establishes the
various remedies available to the City in the event that Developer breaches the
terms and conditions of the Agreement.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of
Otsego, Wright County, Minnesota as follows;
1. The attached Developers Agreement between the City of Otsego and P&F
Properties, Inc. is hereby approved.
2. The Mayor and City Clerk are hereby authorized to execute the Developers
Agreement on behalf of the City of Otsego.
ADOPTED this 9th day of May, 2016 by the City Council of Otsego.
MOTION TO ADOPT the Resolution by Council Member
and seconded by Council Member
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Cleric
2
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO.2016-49
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY
WHEREAS, the CITY OF OTSEGO has acquired by way of tax forfeit and
currently owns certain real estate described as follows:
LOT 1, BLOCK 1, GREAT RIVER CENTRE OF OTSEGO FOURTH
ADDITION according to the Plat on file and of record at the Office of the County
Recorder, Wright County, Minnesota; and
WHEREAS, THE CITY OF OTSEGO has entered into a Purchase Agreement
with P&F PROPERTIES, INC. to sell it LOT 1, BLOCK 1 GREAT RIVER
CENTRE OF OTSEGO FOURTH ADDITION; and
WHEREAS, pursuant to its Agreements with the CITY, P&F will construct a
manufacturing facility on the property which will bring jobs and additional tax
base to the City; and
NOW, THEREFORE it is hereby resolved by the City Council of the City of
Otsego, Wright County, Minnesota as follows:
1. The CITY COUNCIL of the CITY OF OTSEGO hereby authorizes the sale
of LOT 1, BLOCK 1 GREAT RIVER CENTRE OF OTSEGO FOURTH
ADDITION to P&F PROPERTIES, INC. according to the terms and
conditions of that Purchase Agreement between the Parties dated December
29, 2015 and amended May 9, 2016.
2. THE CITY OF OTSEGO hereby authorizes the Mayor, City Clerk, City
Administrator and City Attorney to execute any and all documents
necessary to complete the sale of the real property described above.
APPROVED this 9th day of May, 2016 by the Otsego City Council.
Motion to approve made by Council Member and seconded by
Council Member
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
2
DEVELOPMENT AGREEMENT
GREAT RIVER CENTRE OF OTSEGO FOURTH ADDITION- LOT 1,
BLOCK 1
THIS AGREEMENT, entered into this day of May, 2016 by and
between the CITY OF OTSEGO, a Minnesota municipal corporation ("CITY")
and P&F Properties, Inc., a Minnesota corporation ("DEVELOPER")
RECITALS
WHEREAS, DEVELOPER has proposed construction of a building to be
constructed on the following described property; LOT 1, BLOCK 1 GREAT
RIVER CENTRE OF OTSEGO FOURTH ("LOT 1") ADDITION; and
WHEREAS, DEVELOPER is the fee owner of the parcel of land described
and newly consolidated as, which lot measures approximately 6.17 acres and is
legally described as follows:
LOT 1, BLOCK 1, GREAT RIVER CENTRE OF OTSEGO FOURTH
ADDITION according to the Plat on file and of record with the Office of the
County Recorder, Wright County, Minnesota.
WHEREAS, LOT 1 is proposed for development of a manufacturing
building, and other related improvements; and
1
WHEREAS, the Final Plat and an existing and the new building are
subject to a Planned Unit Development District ("PUD") by Ordinance adopted by
the City Council on March 13, 2006 and a PUD Development Stage Plan for great
River Centre of Otsego approved on March 13, 2006; and
WHEREAS, the PUD Development Stage Plan for Great River Centre of
Otsego requires that the DEVELOPER enter into additional Development
Agreements with the CITY as a condition of approval of individual developments;
and
WHEREAS, the building and improvements on LOT 1 shall be
constructed, maintained and operated in accordance with the PUD and the
Development Stage Plan for Great River Centre of Otsego and the terms and
conditions contained herein; and
NOW THEREFORE, in consideration of the promises and mutual promises
hereinafter contained, it is agreed between the parties as follows:
Development Plans. The Building shall be developed on LOT 1, in
accordance with the plans the cover sheet of which is attached to this
Agreement as Exhibit B dated January 20, 2016 and signed by the City
Engineer on file and of record at CITY and herein fully incorporated
herein by reference and the conditions stated below (hereinafter the
"Building Development Plans"). If the Building Development Plans
vary from the written terms of this Agreement, the Building
Development Plans shall control. The building shall be substantially
completed by April 1, 2017, unless construction is delayed by failure of
CITY to timely complete the Quaday Avenue Project.
2. Municipal Improvements. The Building Development Plans include
certain Municipal Improvements as set forth on the attached Exhibit C.
3. Private Improvements. The DEVELOPER of the Subject Property
agrees that it shall cause to be constructed and installed certain private
improvements ("Private Improvements") on the Subject Property. All
Private Improvements are to be installed at DEVELOPER'S sole cost
and expense pursuant to this Agreement and the private improvements
to LOT 1, shall include those improvements shown on the Building
Development Plans.
DEVELOPER shall construct such Private Improvements in accordance
with all applicable building codes, ordinances and CITY standards and
2
the Building Development Plans furnished to the CITY and approved by
the City Engineer. The DEVELOPER shall obtain all necessary permits
before construction of the Building. CITY shall provide adequate field
inspection personnel to assure acceptable quality control, which will
allow certification of the construction work. Within thirty (30) days after
the completion of Building and before any security is released, the
DEVELOPER shall supply the CITY with a complete set of reproducible
"as built" plans and two (2) complete sets of blue line "as built" plans
prepared in accordance with CITY standards.
4. Grading, Landscaping and Drainage. The DEVELOPER shall be
responsible for grading, landscaping and storm water management on
the Subject Property as more fully set forth in this Agreement and as
for LOT 1 only the Building Development Plans and Landscaping
Plan.
A. Landscaping. DEVELOPER shall maintain the sod and landscape
of boulevard areas adjacent to LOT 1 as shown in the Building
Development Plans through at least one growing season and to the
satisfaction of CITY. The long term maintenance of sod and
landscaping of boulevard areas shall be the responsibility of
DEVELOPER. Further, DEVELOPER shall be responsible for
mowing, elimination of weeds and removal of any garbage or debris
on LOT 1.
B. Erosion Control. The erosion control plan for LOT 1 within the
Building Development Plans has been reviewed and approved by
CITY and shall be implemented by DEVELOPER prior to grading
of LOT 1. All areas disturbed by the excavation and backfilling
operations shall be reseeded forthwith after completion of work in
that area. If DEVELOPER does not comply with the erosion control
plan and schedule or any erosion control requirements, CITY may,
after reasonable notice, take action as it deems appropriate in
accordance with all applicable laws, ordinances or regulations or
according to this Agreement.
C. Grading Plan. Grading of LOT 1 shall be in accordance with the
approved Grading Plan as provided in the Building Development
Plans.
5. Pre -Construction Activity. DEVELOPER shall schedule a pre -
construction meeting with CITY to review the proposed schedule for
grading and construction of the building and related improvements as
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set forth on the Building Development Plans, and to coordinate the
schedule with the City Engineer.
6. Ownership of Improvements. Upon completion of the work and
construction required by this Agreement, improvements lying within
public easements on the Subject Property shall become CITY property
without further notice or action.
7. Clean Up. DEVELOPER shall promptly clean any and all dirt and
debris from streets resulting from construction work by DEVELOPER,
its agents or assigns during the work and construction required by this
Agreement.
8. Administrative Fee. A one-time fee for CITY administration of the
development is $1,500.00.
9. Park and Trail Dedication. Park and Trail dedication requirements
for GREAT RIVER CENTRE OF OTSEGO FOURTH ADDITION
were satisfied with the Final Plat of GREAT RIVER CENTRE OF
OTSEGO.
10. Storm Water Fees, and Storm Water Basin. No Storm Water Fees
are applicable to the Final Plat.
11. Sewer Availability Charges. The Sewer Availability Charges for LOT
1 are as follows: 6.17 acres x 3.5 RECs per acre = 21.6 RECs at
$2,200.00 per REC = $47,520.00. Sewer Availability Charges are to be
assessed against LOT 1.
12. Sewer Connection Fees.. The sewer connection fees are as follows:
10.8 RECs at $6,932.00 per REC = $74,865.60. Sewer connection fees
are to be assessed against LOT 1.
13. Water Availability Charges. The Water Availability Charges for the
Plat are as follows: 6.17 acres x 3.5 RECs per acre-- 21.6 RECs at
$1,566.00 per REC = $33,825.60. Water availability charges are to be
assessed against LOT 1.
14. Water Connection Fees. The water connection fees are as follows:
10.8 RECs at $1,613 per REC = $17,420.40. Water connection fees are
to be assessed against LOT 1.
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15. Street and Traffic Control Sign Fees. CITY shall, at its sole cost and
expense purchase and install the street and traffic control signs as part
of the Project.
16. CITY Engineering, Engineering Administration, Construction
Observation, and Legal Fee Escrow and City Fees. DEVELOPER
shall pay escrow for the CITY' S engineering, engineering
administration and construction observation services of Municipal
Improvements as set forth on Exhibit C, following execution of this
agreement, in the estimated amount set forth below. City engineering
administration will include consultation with DEVELOPER and its
engineer on status or problems regarding the Project, monitoring during
the warranty period, general administration and processing of requests
for reduction in security. Fees for this service shall be the actual
amount billed for those service estimated to be three percent (3%) of
the estimated construction cost of the improvements to be inspected,
assuming normal construction and project scheduling. DEVELOPER
shall pay for construction observation performed by the City Engineer.
Construction observation shall include part or full time observation, as
determined by the City Engineer, of the Municipal Improvements and
will be billed at hourly rates actually required for said inspection
estimated to be five percent (5%) of the estimated construction cost of
the improvements to be inspected. In the event of prolonged
construction or unusual problems, CITY will notify DEVELOPER of
anticipated cost overruns for engineering administration and
observation services.
The Escrow and Fee account shall include estimated escrow for City
Engineering, Engineering Administration and Construction Observation
limited to the Municipal Improvements expenses and Legal expenses,
and fees for City Administrative, Street and Traffic Control Signs,
Water and Sewer Availability Charges as follows:
ESCROW AND FEES
City Construction Administration and Inspection Escrow $5,918.00
(estimated 8% of $ $73,975, actual billings to be paid)
Legal Fees (actual billings to be paid) $1,500.00
City Administration Fees (flat fee) $1,500.00
Street & traffic control sign Fees (0 at $250.00 per sign) $00.00
Sewer Availability Charge. To be assessed against property $00.00
Water Availability Charge. To be assessed against property $00.00
GIS Data Entry Fee
TOTAL
$250.00
$9,168.00
These Escrow and Fee amounts shall be submitted to CITY upon
execution this Agreement by DEVELOPER and CITY. Any Escrow
amounts not utilized for legal and engineering charges incurred by the
City under this Agreement shall be returned to DEVELOPER when all
improvements have been completed, all financial obligations to CITY
satisfied, and all required "as -built " plans have been received by CITY.
Engineering, planning and legal fees incurred prior to the execution of
this Agreement shall be deducted from escrow already submitted with
the Plat application or charged against the escrow herein established.
All other amounts listed as one-time fees are non-refundable and
available immediately for CITY use when posted.
17. Security. To ensure compliance with the terms of this Agreement, and
construction of all Municipal Improvements, DEVELOPER shall
furnish CITY with a cash escrow or Irrevocable Standby Letter of
Credit in the amount of $185,644.00, said amount calculated as
follows:
Site Grading, Erosion Control & Wetland Protection
Sanitary Sewer- Lateral
Watermain- Lateral & Trunk
Storm Sewer- Lateral
Streets
Engineering & Surveying Construction Services
Landscaping
$18,510.00
$00.00
$55,100.00
$18,875.00
$00.00
$7,930.00
$48,100.00
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SUBTOTAL
$148,515.00
TOTAL SECURITY ($148,515.00 x 125%) $185,644.00
The issuer and form of the security (other than cash escrow) shall be
subject to CITY approval, which approval shall not be unreasonably
withheld, conditioned or delayed. The security shall be issued by a
banking institution in good standing as determined by CITY and
approved by the City Administrator. Upon a Default and after notice
and opportunity to cure, CITY shall have the ability to draw on the
Security by overnight courier delivery to the bank or branch bank
issuing the Letter of Credit.
The security shall be for a term ending April 1, 2017, or until the Project
is substantially complete, but no longer than May 1, 2017, or said longer
period if the delay or completion of the Project is as a result of the
CITY's failure to complete the Quaday Project as defined in Paragraph
21 herein, and shall contain an automatic renewal provision. CITY may
draw down the security for any violation of the terms of this Agreement
after notice and opportunity to cure by DEVELOPER, or upon receiving
notice of the pending expiration of the security. It shall be the
responsibility of DEVELOPER to inform CITY at least thirty (30) days
prior to expiration of the security of the impending expiration and the
status of the Project relative to the security and this Agreement. If, for
whatever reason, the security lapses prior to complete compliance with
this Agreement (other than during any warranty period), DEVELOPER
shall immediately provide CITY with either an extension of the security
or an irrevocable letter of credit of the same amount upon notification of
the expiration. If the required improvements are not completed at least
thirty (30) days prior to the expiration of the security, CITY may also
draw down the security.
CITY may draw down the security for any violation of the terms of this
Agreement (after any reasonable notice to DEVELOPER and cure
periods). If the security is drawn down, the proceeds shall be used to
cure any default. CITY will, upon making determination of final costs
to cure any default, refund to the DEVELOPER any monies which
CITY has in its possession which are in excess of the security needed.
Upon receipt of proof satisfactory to CITY that work has been
completed and financial obligations to CITY have been satisfied, the
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security will be reduced from time to time down to the amount of
warranty security as set forth in paragraph 18 of this Agreement.
The security shall not be reduced below ten percent (10%) of the posted
security until all improvements, except landscaping, have been
completed, all financial obligations to CITY satisfied (which includes
posting of warranty security), and required "as built" plans have been
received by CITY. The intent of this Agreement that CITY shall have
access to sufficient security, either security or warranty security, to
complete the Project and insure warranty on all public improvements.
The security amount shall be submitted to CITY prior to execution of
the Agreement.
18. Warranty. DEVELOPER warrants all work required to be performed
by it against poor material and faulty workmanship for a period of one
(1) year after its completion and acceptance by CITY. The amount of
posted security for public improvements to be posted by DEVELOPER
shall be in the amount of $12,040.00. The amount has been determined
by the City Engineer and is based upon the costs of the raw materials
and labor which would be necessary to correct the most common
deficiencies in the public improvements.
19. Assessments and Waiver. DEVELOPER shall take LOT 1 subject to
the following listed assessments. DEVELOPER hereby waives any and
all hearings and irregularities in procedure and any right of appeal
under Minnesota Statute 429.081 or any other right of appeal.
DEVELOPER agrees that the property is benefited in at least the
amount of said assessments.
a. DEVELOPER has petitioned for assessment of applicable
Sewer and Water Availability Charges and Sewer and
Water Connection Fees in the total amount of $173,631.60,
to be assessed against the property for a period of seven (7)
years at an interest rate of 3.25% per annum, payments
commencing with real estate taxes, if any due and payable
in 2017.
b. DEVELOPER has petitioned for assessments related to the
proposed Quaday Avenue in the total amount of
$163,485.45, to be assessed against the property for a
period of nine (9) years at an interest rate of 3.25% per
annum, payments commencing with real estate taxes if any
due and payable in 2018. A portion of this assessment
amount ($13,485.45) shall be included in the approved TIF
for this property, and shall be paid to DEVELOPER as part
of the TIF so long as DEVELOPER is in compliance with
the TIF Agreement. A deferred assessment with no interest
of $154,211.00 shall be placed on Outlot A. In the event
that DEVELOPER excercises its option or right of first
refusal for a second lot it shall assume its proportionate
share of this assessment.
c. DEVELOPER shall assume assessments previously placed
against the property and subsequently reassessed in the
amount of $432,582.68, to be assessed against the property
for a period of nine (9) years at an interest rate of 4.375%
per annum, payments commencing with real estate taxes, if
any due and payable in 2018. The total amount of the
assessment shall be included in the approved TIF for this
property, and shall be paid to DEVELOPER as part of the
TIF so long as DEVELOPER is in compliance with the
TIF Agreement.
20. City Construction of Extension of Quaday Avenue South from 85t" Street.
In conjunction with and concurrently with DEVELOPER'S construction of the
Project, CITY shall construct an extension of Quaday Avenue south from 851h
Street to the southerly boundary of GREAT RIVER CENTRE OF OTSEGO
FOURTH ADDITION, including sanitary sewer and water lines, all as shown on
the Plans and Specifications provided to DEVELOPER. CITY shall commence
construction in late Spring or early Summer of 2016, with the Quaday Avenue
Project scheduled to be completed by October 1, 2016, subject to weather
conditions, natural forces, the discovery of unexpected conditions or failures to
perform by contractors. CITY and DEVELOPER shall coordinate construction
activities on LOT 1 and CITY construction of the Quaday Project.
21. DEVELOPER Use of CITY Pond. As part of its Project, DEVELOPER shall
construct a storm water retention pond on a portion of LOT 1 and extending onto
the adjacent OUTLOT A, GREAT RIVER CENTRE OF OTSEGO FOURTH
ADDITION currently owned by CITY. CITY hereby grants DEVELOPER a
temporary easement over, under and across OUTLOT A and right of entry in order
to construct the storm water retention pond. Any excess soils removed from the
storm water retention pond area may be used by DEVELOPER as part of its
Project. Further, CITY will grant to DEVELOPER a perpetual easement to
discharge storm water into the storm water retention pond including the portion of
the pond lying within OUTLOT A, so long as DEVELOPER complies with CITY,
State and Federal ordinances, statutes, rules and regulations regarding such
discharge. DEVELOPER shall have a continuing right to discharge into the storm
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water retention pond whether or not OUTLOT A (or portions thereof) is owned by
CITY or DEVELOPER in the future, all as provided in an easement to be
executed prior to DEVELOPER's purchase of LOT L.
22. Responsibility for Costs.
A. , DEVELOPER shall pay all costs incurred by it in conjunction with
the development of LOT 1 and its Building, including, but not
limited to legal, planning, engineering, and inspection expenses in
connection with the development of LOT 1 and its Building.
B. Except for gross negligence or willful and wanton acts of the CITY,
DEVELOPER shall hold CITY and its officers, employees and
agents harmless from claims made by itself and third parties for
damages sustained or costs incurred resulting from DEVELOPER's
acts or failures to act in connection with development of the Subject
Property by DEVELOPER. DEVELOPER shall indemnify CITY
and its officers, employees and agents for all costs, damages or
expenses which CITY may pay or incur in consequence of such
claims, including attorney's fees.
C. The Prevailing Party shall reimburse the Non -Prevailing Party for
costs incurred in the enforcement of this Agreement, including
engineering fees, planning fees, attorney's fees, and costs and
disbursements.
D. DEVELOPER shall pay in full all bills submitted to it by CITY for
obligations incurred under this Agreement and agreed to be paid by
DEVELOPER under this Agreement within thirty (30) days after
receipt. If the bills are not paid on time, and DEVELOPER does not
reasonably dispute the payment of amount of such bill CITY may
reimburse itself from existing Escrow or Security... Bills not paid
within thirty (30) days shall accrue interest at the rate of twelve
percent (12%) per year.
23. Miscellaneous.
E. Third parties shall have no recourse against CITY under this
Agreement.
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F. If any portion, section, subsection, sentence, clause, paragraph or
phrase of this Agreement is for any reason held invalid, such
decision shall not affect the validity of the remaining portion of this
Agreement.
G. The action or inaction of CITY or DEVELOPER shall not constitute
a waiver or amendment to the provisions of this Agreement. To be
binding, amendments or waivers shall be in writing, signed by the
parties and approved by written resolution of the City Council.
CITY's or DEVELOPER's failure to promptly take legal action to
enforce this Agreement shall not be a waiver or release.
H. This Agreement shall run with the land, shall be recorded against the
title to the Subject Property, and shall be binding on all parties
having any right, title or interests in the Subject Property or any part
thereof, their heirs, successors and assigns.
I. Each right, power or remedy herein conferred upon CITY or
DEVELOPER is cumulative and in addition to every other right,
power or remedy, express or implied, now or hereafter arising,
available to CITY or DEVELOPER, at law or in equity, or under
any other agreement, and each and every right, power and remedy
herein set forth or otherwise so existing may be exercised from time
to time as often and in such order as may be deemed expedient by
CITY or DEVELOPER and shall not be a waiver of the right to
exercise at anytime thereafter any other right, power or remedy.
J. DEVELOPER shall pay for all local costs, as defined in this
Agreement, related to drainage improvements required to complete
the construction of the Plat and building according to the Building
Development Plans. Local costs are costs related to required internal
drainage improvements such as retention ponds.
K. Should construction of DEVELOPER'S Building or improvements
to LOT 1proceed at a pace slower than anticipated, and for that
reason, specific terms of this Agreement become onerous or unduly
burdensome to DEVELOPER, upon DEVELOPER's application,
CITY will enter into negotiations regarding those specific terms and
shall not unreasonably withhold consent to appropriate changes in
the terms of this Agreement.
L. DEVELOPER shall demonstrate and maintain compliance with the
1991 Wetland Conservation Act.
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M. DEVELOPER shall be responsible for all on site drainage for the
Subject Property, as well as for any affects their actions may have on
adjoining properties.
24. Violation of Agreement. If while the escrow or security provided in this
Agreement is outstanding, a violation of any of the covenants or
agreements herein contained occurs and such violation is not cured within
thirty (30) days, or such longer period if DEVELOPER is in good faith and
with all due diligence attempting to cure said default after written notice
thereof from CITY to DEVELOPER, CITY may draw upon the
DEVELOPER's escrow or security to cure any violation of the Agreement
and to reimburse CITY for any costs incurred in curing the violation.
25. Maintain Public Property Damaged or Cluttered During
Construction. DEVELOPER agrees to assume full financial responsibility
for any damage which may occur to public property including, but not
limited to , street, street sub -base, base, bituminous surface, curb, utility
system including, but not limited to, watermain, sanitary sewer or storm
sewer when said damage occurs as a result of construction activity which
takes place during development of the Subject Property by DEVELOPER
or its contractors, except for damage caused by CITY, its employees,
agents or contractors. DEVELOPER further agrees to pay all reasonable
costs required to repair the streets and/or utility systems damaged or
cluttered with debris when occurring as a direct or indirect result of the
Developer's construction that takes place on the Subject Property. In the
event that DEVELOPER is required to maintain or repair such damage and
fails to maintain or repair the damaged public property referred to
aforesaid within thirty (30) days or such longer period if DEVELOPER is
in good faith and with all due diligence attempting to cure said default,
after written notice from CITY or such longer period as may reasonably
necessary or in the event of an emergency as shorter time period as
determined by CITY, CITY may, upon notifying DEVELOPER undertake
making or causing it to be repaired or maintained. When CITY undertakes
such repair, DEVELOPER shall reimburse CITY for all its reasonable
expenses within thirty (30) of its billing to DEVELOPER. If
DEVELOPER fails to pay said bill within thirty (30) days, the security
shall be responsible for reimbursing CITY.
26. Non -Assignment Without Consent. The obligations of DEVELOPER
under this Agreement may be assigned by DEVELOPER if the assignment
is approved by CITY. However, DEVELOPER shall not be released from
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its obligations under this Agreement without the express written consent of
the City Council through Council resolution.
27. Subordination. This Agreement must be recorded against the Subject
Property and all other liens, interests or mortgages shall be subordinate to
the terms and conditions this Agreement and said Agreement shall not be
subject to foreclosure by any other lien, interest or mortgage.
28. Notices. Required notices to DEVELOPER shall either hand delivered to
DEVELOPER, it employees or agents, or mailed to DEVELOPER by
registered mail or sent by overnight delivery at the following address: P&F
Properties, Inc. 17171 113th Avenue North, Dayton, MN 55369. Notice to
CITY shall be in writing and shall be either hand delivered to the City
Clerk or Deputy City Clerk or mailed by registered mail or sent by
overnight delivery at the following address: City of Otsego, City Hall,
13400 90th Street NE, Otsego, MN 55330, Attention: City Clerk.
29. Agreement Effect. This Agreement shall be binding and extend to the
respective representatives, heirs, successors and assigns of the parties
hereto.
30. Amendment. This Agreement shall be amended only by addendum
executed by both parties to this Agreement.
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IN WITNESS WHEREOF, DEVELOPER and CITY have executed this
Agreement as of the day and year above first written.
CITY OF OTSEGO,
A municipal corporation
Jessica Stockamp, Mayor
Tami Loff, City Clerk
P&F PROPERTIES, INC
A Minnesota corporation
By:
Its
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STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
On this day of May, 2016 before me personally appeared Jessica
Stockamp and Tami Loff to me known as the persons described in the foregoing
instrument and who did say they are, respectively, the Mayor and City Clerk of the
municipal corporation named therein and that said instrument was signed on
behalf of said municipal corporation by authority of its City Council and said
Jessica Stockamp and Tami Loff acknowledged said instrument to be the free act
and deed of said municipal corporation.
NOTARY PUBLIC
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
On this day of May, 2016, before me personally appeared
to me known as the person described in the foregoing
instrument and who did say he is the of P&F Properties, Inc
and
that said instrument was signed on behalf of P&F Properties, Inc. with authority
and on behalf of the corporation and said
instrument to be the free act and deed of said entity.
NOTARY PUBLIC
DRAFTED BY:
MACARTHUR LAW OFFICE
3601 Thurston Avenue North
Suite 103
Anoka, MN 55303
763-231-5850
acknowledged said
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EXHIBIT A
LEGAL DESCRIPTION OF THE SUBJECT PROPERTY
LOT 1, BLOCK 1, GREAT RIVER CENTRE OF OTSEGO FOURTH
ADDITION according to the recorded plat thereof, Wright County, Minnesota.
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EXHIBIT B
DEVELOPMENT PLANS FOR THE SUBJECT PROPERTY
Development Plans for LOT 1, BLOCK 1, GREAT RIVER CENTRE OF
OTSEGO FOURTH ADDITION by Loucks Associates dated January 20, 2016
and approved by CITY April 4, 2016 cover sheet attached.
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EXHIBIT C- MUNICIPAL IMPROVEMENTS
Watermain.
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