RES 16-58CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2016-58
RESOLUTION APPROVING WAIVER OF LETTER OF CREDIT
REQUIREMENTS FOR CERTAIN PROPERTY IN OTSEGO
WATERFRONT EAST THIRD ADDITION
WHEREAS, the City of Otsego entered into a mediated agreement with GCI
Capital in 2011 requiring a Letter of Credit to insure payment of special
assessments within Otsego Waterfront East; and
WHEREAS, upon sale of lots within Otsego Waterfront East the Agreement
requires the City to release a proportionate share of the GCI Capital Letter of
Credit which is to be replaced by a separate Letter of Credit from the new property
owner to remain in place until a Certificate of Occupancy has been issued for a
structure on the lot; and
WHEREAS, Guardian Angels Senior Services and/or its wholly owned affiliate
521 Land Company, LLC intends to purchase Outlot A, Otsego Waterfront East
Third Addition (PID 118264000010) and Lot 1, Block l,Otsego Waterfront East
Third Addition (PID 118264001010); and
WHEREAS, Guardian Angels Senior Services and 521 Land Company, LLC
have made a written request to the City to waive the requirement of a separate
Letter of Credit to insure payment of assessments from the date of property
transfer to the issuance of a Certificate of Occupancy.
NOW THEREFORE, the City Council of the City of Otsego resolves as follows:
1. Guardian Angels Senior Services and 521 Land Company, LLC are hereby
granted a waiver of the Letter of Credit requirement for both Lot 1, Block
1, Otsego Waterfront East Third Addition and Outlot A, Otsego Waterfront
East Third Addition. The waiver is specifically limited to the entities and
properties listed above.
2. The waiver shall be in force and effect from the date of this Resolution and
shall remain in place so long as all scheduled payments of property taxes
and assessments are paid on time. In the event that said payments are not
timely made, the waiver automatically terminates and a Letter of Credit
must be posted with the City in the applicable amount required as of that
date.
3. The waiver is not assignable without City approval.
4. If there is a default in scheduled payment of property taxes and special
assessments for the property, the City shall not be obligated to make
incentive payments pursuant to the agreement with GCI Capital, Inc.
recorded with Wright County as Document 1178736.
ADOPTED this 13th day of June, 2016 by the Otsego City Council.
Council Member Warehime motioned to adopt the resolution and the motion was
seconded by Council Member Schroeder.
IN FAVOR: Stockamp, Warehime, Heidner, Schroeder, Darkenwald
OPPOSED: None
CITY OF OTSEGO
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Tami Loff, City Clerk
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