Item 3.12 Queens Avenue Otsego 104 Investments LLC
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Planning City Planner Licht 13 October 2025
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Administrator/Finance Director Flaherty
City Engineer Wagner
City Attorney Kendall
3.12 – Queens Ave Otsego
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
Is a strong organization that is committed to leading the community through innovative communication.
X Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
X Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommend the City Council approve a Zoning Map amendment, preliminary plat, final plat, and
Development Contract.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
Yes Yes, held by Planning Commission 15 September 2025
BACKGROUND/JUSTIFICATION:
104 Investments, LLC is proposing development of a 36,000 square foot industrial building on a 14.78 acre parcel
located at the northeast quadrant of Queens Avenue and 65th Street. The subject property is currently developed with
a single family dwelling. The proposed development requires consideration of a Zoning Map amendment, preliminary
plat, final plat, site and building plan review and Interim Use Permit for outdoor storage. The developer is proposing
an initial application to plat the property with a lot for the industrial use and another for the existing single family
dwelling. A subsequent application will be submitted for site and building plan review and an Interim Use Permit for
the development of the industrial lot.
A public hearing was held at the Planning Commission meeting on 15 September 2025 to consider the request. Mr.
David Gladwell was present as the applicant and agreed with the recommendations of City staff. There were no
public comments and the public hearing was closed. The Planning Commission supported the proposed subdivision of
the property with planned future development of one initial industrial lot and voted to recommended the City Council
approve the applications 7-0 vote.
SUPPORTING DOCUMENTS ATTACHED:
• Planning Report dated 28 August 2025
• Findings of Fact and Decision; Zoning Map
• Ordinance 2025-08 amending the Zoning Map
• Findings of Fact and Decision; Preliminary and Final Plat
• Resolution 2025-50
• Development Contract
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Ordinance 2025-08 amending the Zoning Map; approve a preliminary plat and final plat for Queens
Ave Otsego, subject to the conditions stated on the Findings of Fact and Decision as presented; and adopt Resolution
2025-50 approving a Development Contract.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 701 – Development Escrows
N/A
3601 Thurston Avenue
Anoka, MN 55303
763.231.5840
TPC@PlanningCo.com
1
PLANNING REPORT
TO: Otsego Planning Commission
FROM: D. Daniel Licht
REPORT DATE: 28 August 2025
120-DAY DATE: 11 December 2025
RE: Otsego – Queens Ave Otsego; Preliminary/Final Plat
TPC FILE: 101.02
BACKGROUND
104 Investments, LLC is proposing development of a 36,000 square foot industrial building on a
14.78 acre parcel located at the northeast quadrant of Queens Avenue and 65th Street. The
subject property is currently developed with a single family dwelling. The proposed
development requires consideration of a Zoning Map amendment, preliminary plat, final plat,
site and building plan review and Interim Use Permit for outdoor storage. The developer is
proposing an initial application to plat the property with a lot for the industrial use and another
for the existing single family dwelling. A subsequent application will be submitted for site and
building plan review and an Interim Use Permit for the development of the industrial lot. A
public hearing to consider the Zoning Map amendment and preliminary plat has been noticed
for the Planning Commission meeting on 15 September 2025 at 7:00PM.
Exhibits:
Site Location Map
Building plan dated 07-31-25
Concept Plan dated 07/30/25
Preliminary plat dated 31 July 2025
Final plat
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ANALYSIS
Zoning. The subject property is zoned A-1, Agriculture Rural Service District consistent with the
interim land use plan policy of the 2023 Otsego Comprehensive Plan that directs A-1 District
zoning is to be maintained until such time as a parcel is proposed for development. Platting and
development of Lot 1, Block 1 with an industrial use requires consideration of a Zoning Map
amendment to rezone the parcel to I-1, Limited Industrial District. Lot 2, Block 1 will remain
zoned A-1 District until such time as redevelopment of the existing single family residential use
to an industrial use is proposed. Consideration of the requested Zoning Map amendment is to
be based upon, but not limited to, the criteria established by Section 11-3-2.F of the Zoning
Ordinance:
1. The proposed action's consistency with the specific policies and provisions of the Otsego
Comprehensive Plan.
Comment: The 2023 Otsego Comprehensive Plan guides the subject property for future
industrial land uses within the East Sewer District. Industrial development is a goal of
the Comprehensive Plan so as to diversify the tax base and lessen dependance of
residential properties and to create employment opportunities within Otsego. The Future
Land Use Plan identifies the area on the east and west sides of Queens Avenue as an
appropriate location for development of industrial uses based on proximity and access to
TH 101. The proposed subdivision is consistent with the goals and policies of the 2023
Comprehensive Plan.
2. The proposed use's compatibility with present and future land uses of the area.
Comment: The following table summarizes existing and planned land uses in the area
surrounding the subject property. The proposed development is characteristic of the
development along Queens Avenue and the proposed subdivision will be compatible with
existing and planned uses in the area.
Direction Land Use Plan Zoning Map Existing Use
North Industrial I-1 District R+L Carriers
East Industrial A-1 District Rural residential
South Industrial I-1 District Blue Dot
West Industrial I-2 District Gateway North
3. The proposed use's conformity with all performance standards contained within the
Zoning Ordinance and other provisions of the City Code.
Comment: The proposed subdivision and development of the industrial lot will be
required to comply with all requirements of the Zoning Ordinance, Subdivision
Ordinance, and Engineering Manual.
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4. Traffic generation of the proposed use in relation to capabilities of streets serving the
property.
Comment: Lot 1, Block 1 is to be accessed via Queens Avenue, which the Transportation
Plan designates as a Commercial/Industrial Collector Street. Queens Avenue intersects
70th Street (CSAH 38) to the north, which is also designated as a Commercial/Industrial
Collector Street. Queens Avenue and 70th Street (CSAH 38) are designed to accommodate
up to 15,000 vehicle trips per day, including semi-tractor trailer traffic accessing TH 101.
The traffic that will be generated by the proposed use is within the capacity available on
Queens Avenue and 70th Street (CSAH 38).
5. The proposed use can be accommodated by existing public services and facilities and
will not overburden the City's service capacity.
Comment: The subject property is located within the East Sewer District established by
the 2023 Otsego Comprehensive Plan. Sewer and water utilities are available at the
subject property with sufficient capacity to accommodate the proposed use. The City has
the ability to provide all other required municipal services to the subject property within
the East Sewer District.
Concept Plan. The developer has submitted a concept plan and building plans for development
of Lot 1, Block 1. Approval to implement the development plans for Lot 1, Block 1 require
application for site and building plan review and an Interim Use Permit to allow the illustrated
outdoor storage area. The need for additional applications may be identified based on City
staff review of more detailed plans for compliance with the provisions of the Zoning Ordinance.
No entitlement for development of Lot 1, Block 1 is being considered with the current
application.
Lot Requirements. Lots within the I-1 District are required to be a minimum of one acre in area
and have a minimum width of 200 feet measured at the setback line from the front lot line in
accordance with Section 11-85-7.A and B of the Zoning Ordinance. The lots proposed on the
preliminary and final plat comply with the minimum requirements of the I-1 District.
Min. Lot Area Min. Lot Width
Required 1.00ac. 200ft.
Lot 1, Block 1 5.01ac. 550ft.
Lot 2, Block 1 6.37ac. 493ft.
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Setbacks. The table below outlines I-1 District setbacks established by Section 11-85-7.C of the
Zoning Ordinance applicable to Lot 1, Block 1 and future application of I-1 District setbacks to
Lot 2, Block 1. The concept plan for Lot 1, Block 1 complies with these setback requirements.
Queens
Ave.
70th St. East South North Wetland
Lot 1, Block 1 30ft. NA 20ft. 10ft. 10ft. 40ft.
Lot 2, Block 1 30ft. 30ft. 10ft. NA 20ft. 40ft.
Site Coverage. Section 11-85-8 of the Zoning Ordinance establishes maximum site coverage
limits for lots within the I-1 District. Budlings and structures may not occupy more than 50
percent of the lot area and all impervious surfaces may not exceed 85 percent of the lot area.
The proposed 36,000 square foot building to be developed on Lot 1, Block 1 would cover 16.5
percent of the 5.01 acre area of the lot. Impervious surfaces coverage is not identified and will
be required to be shown on a site plan submitted for site and building plan review approval.
Right-of-Way. The subject property abuts Queens Avenue to the west and 65th Street to the
south. Both Queens Avenue and 65th Street are designated by the 2023 Transportation Plan as
Commercial/Industrial Collector Streets.
Queens Avenue is an existing three lane urban section roadway with a trail on the east side of
the right-of-way abutting the subject property. No right-of-way dedication or improvement is
required by the City for Queens Avenue, which was acquired and constructed with the Gateway
North Industrial Park.
The preliminary and final plat provides for dedication of 50 feet of right-of-way for the north
half of 65th Street. No improvements to 65th Street are proposed, which is a rural gravel
roadway. The City will require that 65th Street be improved at such time application is made to
develop Lot 2, Block 1 with an industrial use or Outlot A, Jacobs Plat is developed on the south
side of the street.
All right-of-way dedication is subject to review by the City Engineer.
Utilities. Sewer and water utilities are available in Queens Avenue abutting the subject
property. Utility Availability Charges are required to be paid at the time of final plat approval
and utility connection fees are to be paid for the proposed use of a lot at the time a building
permit is issued. The developer is requesting that payment of the Utility Availability Charges be
deferred until the site and building plans are approved. Payment of Utility Availability Charges
for Lot 2, Block 1 are requested to be deferred until the lot is rezoned to I-1 District. The terms
for payment of the Utility Availabity Charges will be set forth in the development contract,
which will include that the Utility Availability Charges be paid based on the City fee schedule in
effect at the time of payment.
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Stormwater Management. There is no regional stormwater management plan for the subject
property and thus no stormwater impact fee to be paid at the time of final plat approval. The
developer has submitted a preliminary plan for grading, drainage for stormwater management
with development of Lot 1, Block 1. Approval of stormwater management plans for Lot 1, Block
1 will be determined at the time of site and building plan review and are subject to review and
approval of the City Engineer.
Easements. Section 10-8-12 of the Subdivision Ordinance requires dedication of drainage and
utility easements at the perimeter of the two proposed lot as well as over stormwater drainage
facilities or public utilities not within outlots to be deeded to the City. The preliminary plat
illustrates the required 10 foot wide drainage and utility easements at the perimeter of the two
lots as required by Section 10-8-12.A of the Subdivision Ordinance.
Drainage and utility easements are also shown over the wetland within Lot 2, Block 1. The City
may require that Lot 2, Block 1 be replatted in the at the time it is redeveloped to an industrial
use to dedicate an outlot encompassing this wetland to the City for stormwater management
purposes in accordance with Section 10-8-12.D of the Subdivision Ordinance.
Drainage and utility easements are also dedicated on the preliminary plat and final plat over
Outlot A (wetland) and Outlot B (future stormwater basin).
All drainage and utility easements are subject to review and approval of the City Engineer.
Outlots. The preliminary plat and final plat includes two outlots. Outlot A encompasses a
wetland along the northeast plat line. Outlot B is provided for a future stormwater basin to be
constructed with development of Lot 1, Block 1. Outlot A is to be deeded to the City for
stormwater management purposes with approval of the final plat. Outlot B will be required to
be deeded to the City concurrent with approval of the site and building plans for Lot 1, Block 1.
Park Dedication. The Parks System Master Plan does not identify land within the area of the
subject property for acquisition by the City for park purposes. Section 10-8-15.I of the
Subdivision Ordinance allows the City to require payment of a cash fee in lieu of land for park
dedication. A park dedication fee in lieu of land will be required to be paid with final plat
approval for Lot 1, Block 1. Park dedication requirements for Lot 2, Block 1 will be deferred until
the lot is rezoned to I-1 District and paid in accordance with the fee schedule in effect at that
time.
Development Contact. Section 10-10-4.A of the Subdivision Ordinance requires that the
developer enter into a development contract with the City to provide for construction of any
public improvements, establishment of required securities, transfer of property to the City, and
payment of applicable fees. The development contract will be drafted by the City Attorney for
approval by resolution of the City Council.
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RECOMMENDATION
The proposed Queens Ave Otsego preliminary plat and final plat complies with the provisions of
the Zoning Ordinance and Subdivision Ordinance. Approval of the preliminary plat and final
plat will provide opportunity for additional industrial development furthering the economic
development goals of the Comprehensive Plan. City staff recommends approval of the
applications as outlined below.
POSSIBLE ACTIONS
A. Motion to recommend approval of a Zoning Map amendment, preliminary plat, and
final plat for Queens Ave Otsego subject to the following conditions:
1. Approval of the preliminary plat shall not guarantee access to sanitary sewer
service. The City shall only allocate sanitary sewer capacity to approved final
plats with signed development contracts to assure the City of timely
development.
2. Development of Lot 1, Block 1, shall require application for, but not limited to,
the following approvals:
a. Site and building plan review.
b. Interim Use Permit allowing outdoor storage
3. Lot 2, Block 1 shall remain zoned A-1 District until such time as a proposal to
develop the lot with a use consistent with the Comprehensive Plan is submitted.
4. All right-of-way dedication shall be subject to review and approval by the City
Engineer.
5. Utility Availability Charges are required to be paid subject to the following:
a. Lot 1, Block 1: Upon approval of site and building plans for construction
of an industrial use.
b. Lot 2, Block 1: Upon approval of a Zoning Map zoning the lot to allow
development of a land use as guided by the Comprehensive Plan.
c. Utility Availability Charges shall be based on the City fee schedule in
effect at the time of payment.
6. Utility Connection Charges are to be paid for the proposed use of Lot 1 and Lot 2,
Block 1 at the time a building permit is issued.
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7. Stormwater management plans for Lots 1 and 2, Block 1 shall be subject to
review and approval of the City Engineer with application for site and building
plan review,
8. Outlot A shall be deeded to the City for stormwater management purposes.
9. Park dedication:
a. Lot 1, Block 1: Park dedication shall be satisfied as a cash fee in lieu of
land at the time of site and building plan approval.
b. Lot 2, Block 1:
(1) Park dedication shall be satisfied upon approval of a Zoning Map
zoning the lot to allow development of a land use as guided by the
Comprehensive Plan.
(2) The required park dedication cash fee in lieu of land shall be
based on the City fee schedule in effect at the time of payment.
10. The developer shall enter into a development contract as required by Section 10-
10-4.A of the Subdivision Ordinance, subject to review by the City Attorney and
approval of the City Council.
B. Motion to recommend the application be denied based on a finding that the request is
inconsistent with the Comprehensive Plan and does not comply with the requirements
of the Zoning Ordinance and/or Subdivision Ordinance.
C. Motion to table.
c. Adam Flaherty, City Administrator/Finance Director
Audra Etzel, City Clerk
Ron Wagner, City Engineer
David Kendall, City Attorney
Property Location
Queens Ave Otsego Plat
921 ft
Overview
Legend
Highways
Interstate
State Hwy
US Hwy
Roads
City/Township Limits
c
t
Parcels
Date Last Revised:Copyright Michael J. Thomas Architect,LLC. All rights reserved.The architectural works depicted herein are thesole property of Michael J. Thomas Architect, LLCand may not be constructed or used without itsexpressed written permission. No permission tomodify or reproduce any of these architecturalworks, including without limitation theconstruction of any building, is expressed orshould be implied from delivery of preliminarydrawings or unsealed construction drawings.Permission to construct the buildings(s) depictedin sealed construction drawings is expresslyconditioned on the full and timely payment of allfees otherwise due to Michael J. ThomasArchitect, LLC and, in absence of any writtenagreement to the contrary, is limited to a one-time use on the site indicated on these plans.MJTProject No:File Name:25014 Gladwin Otsego07-31-25.plnDrawn By:25014SignatureI hereby certify that this plan, specification, orreport was prepared by me or under my directsupervision and that I am a duly LicensedArchitect under the laws of the State ofMinnesota.23592Minnesota License No.:00-00-00Date Signed:06-18-25, 07-07-25, 07-31-25A0.04918 S. Tri Oak Circle NEEast Bethel, MN 55092Phone: 651-245-2346Email: mjtallc2520@gmail.comWeb:michaeljthomasarchitect.comSCALE INDICATED BASED UPON PRINTED 24" X 36" (ARCHITECTURAL D) SHEETPreliminary Do Not Use for ConstructionNew Building - Tenant Lease Spacefor David Gladwin104 Investments, LLC16686 65th Street NEOtsego, MN 55330125014 Gladwin Otsego 07-31-25 - NW View - Close225014 Gladwin Otsego 07-31-25 - NE View325014 Gladwin Otsego 07-31-25 - SE View425014 Gladwin Otsego 07-31-25 - SW View525014 Gladwin Otsego 07-31-25 - NW View - AerialClear Anodized AluminumExterior Storefront Windowsand DoorsHaas 700 Series OverheadGarage DoorsElevate Una-Clad Prefin MetalParapet Cap FlashingFabcon - Top side, exposedaggregate. Gray OnyxFabcon - Top side, exposedaggregate. GrayFabcon - Cast-In Brick FinishReynobond Composite MetalPanels at Canopy Face
East line of the West Half of the West Half of the East Half of the SouthwestQuarter of the Northeast Quarter of Section 35, Township 121, Range 23West line of the East Half of the West Half of the Southwest Quarter of the Northeast Quarter of Section 35, Township 121, Range 23North line of the Southwest Quarter of the Northeast Quarter of Section 35, Township 121, Range 23
South line of the Northeast Quarter of Section 35, Township 121, Range 23
A-1 ZONING
JUNE & AARON HOFFMAN
I-2 ZONING
Owner:
DUKE REALTY LP
120°NO PARKINGPROPOSED
BUILDING
120 x 300 =
36,000 SF
FFE=932.00
DOCK=928.00NO PARKING12
0
°120°150°90°
STORM WATER
MANAGEMENT
BASIN
1/1CIVIL ENGINEERINGSITE DESIGN12468 Hassan Court
Rogers, MN 55374
David Gladwin
612-483-1745
davidtgladwin@gmail.com
104 Investments
1
FINDINGS OF FACT & DECISION
ZONING MAP AMENDMENT
QUEENS AVE OTSEGO
APPLICANT: 104 Investments, LLC
APPLICATION: Request to amend the Zoning Map for land included in the Queens Ave Otsego plat.
CITY COUNCIL MEETING: 13 October 2025
FINDINGS: Based upon review of the application and evidence received, the Otsego City Council now makes the
following findings of fact:
A. The legal description of the property is:
Lot 1, Block 1, Queens Ave Otsego, Wright County, Minnesota
B. The property is within the East Sewer District and is guided for Light Industrial land uses by the 2023
Otsego Comprehensive Plan, as amended.
C. The property is zoned A-1, Agriculture Rural Service District.
D. The applicant has requested approval of a Zoning Map amendment to rezone the property to I-1, Limited
Industrial District to allow for development of a preliminary plat and final plat consisting of two lots.
E. The Planning Commission and City Council must take into consideration the possible effects of the request
with their judgment based upon (but not limited to) the criteria outlined in Section 11-3-2.F of the Zoning
Ordinance:
1. The proposed action's consistency with the specific policies and provisions of the Otsego
Comprehensive Plan.
Finding: The 2023 Otsego Comprehensive Plan guides the subject property for future industrial
land uses within the East Sewer District. Industrial development is a goal of the Comprehensive
Plan so as to diversify the tax base and lessen dependance of residential properties and to create
employment opportunities within Otsego. The Future Land Use Plan identifies the area on the east
and west sides of Queens Avenue as an appropriate location for development of industrial uses
based on proximity and access to TH 101. The proposed subdivision is consistent with the goals
and policies of the 2023 Comprehensive Plan.
2
2. The proposed use's compatibility with present and future land uses of the area.
Finding: The following table summarizes existing and planned land uses in the area surrounding
the subject property. The proposed development is characteristic of the development along
Queens Avenue and the proposed subdivision will be compatible with existing and planned uses in
the area.
Direction Land Use Plan Zoning Map Existing Use
North Industrial I-1 District R+L Carriers
East Industrial A-1 District Rural residential
South Industrial I-1 District Blue Dot
West Industrial I-2 District Gateway North
3. The proposed use's conformity with all performance standards contained within the Zoning
Ordinance and other provisions of the City Code.
Finding: The proposed subdivision and development of the industrial lot will be required to comply
with all requirements of the Zoning Ordinance, Subdivision Ordinance, and Engineering Manual.
4. Traffic generation of the proposed use in relation to capabilities of streets serving the property.
Finding: Lot 1, Block 1 is to be accessed via Queens Avenue, which the Transportation Plan
designates as a Commercial/Industrial Collector Street. Queens Avenue intersects 70th Street
(CSAH 38) to the north, which is also designated as a Commercial/Industrial Collector Street.
Queens Avenue and 70th Street (CSAH 38) are designed to accommodate up to 15,000 vehicle trips
per day, including semi-tractor trailer traffic accessing TH 101. The traffic that will be generated
by the proposed use is within the capacity available on Queens Avenue and 70th Street (CSAH 38).
5. The proposed use can be accommodated by existing public services and facilities and will not
overburden the City's service capacity.
Finding: The subject property is located within the East Sewer District established by the 2023
Otsego Comprehensive Plan. Sewer and water utilities are available at the subject property with
sufficient capacity to accommodate the proposed use. The City has the ability to provide all other
required municipal services to the subject property within the East Sewer District.
F. The planning report dated 28 August 2025 prepared by the City Planner, The Planning Company LLC, is
incorporated herein.
G. The Otsego Planning Commission conducted a public hearing at their regular meeting on 15 September
2025 to consider the application, preceded by published and mailed notice; based upon review of the
application and evidence received, the public hearing was closed and the Planning Commission
recommended by a 7-0 vote that the City Council approve the request based on the aforementioned
findings.
DECISION: Based on the foregoing information and applicable ordinances, the requested is hereby approved.
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ADOPTED by the Otsego City Council this 13th day of October, 2025.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
ORDINANCE NO: 2025-08
AN ORDINANCE AMENDING THE ZONING ORDINANCE OF THE CITY OF OTSEGO TO PROVIDE FOR A
CHANGE IN ZONING CLASSIFICATION FOR LAND INCLUDED WITHIN THE QUEENS AVE OTSEGO PLAT.
THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN:
Section 1. The official Zoning Map of the Otsego Zoning Ordinance is hereby amended to change
the zoning classification of the property legally as described as:
Lot 1, Block 1, Queens Ave Otsego, Wright County, Minnesota
Section 2. The property is hereby rezoned from an A-1, Agricultural Rural Service District
designation to B-1, Limited Industrial District.
Section 3. The Zoning Map of the City of Otsego shall not be republished to show the aforesaid
rezoning, but the Zoning Administrator shall appropriately mark the Zoning Map on file at City Hall for the
purpose of indicating the rezoning hereinabove provided for in this Ordinance, and all of the notations,
references and other information shown thereon are hereby incorporated by reference and made part of
this Ordinance.
Section 4. This Ordinance shall become effective immediately upon its adoption and publication.
[THE REMAINDER OF THIS PAGE IS LEFT INTENTIONALLY BLANK]
ADOPTED by the Otsego City Council this 13th day of October, 2025.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk
1
FINDINGS OF FACT & DECISION
PRELIMINARY PLAT / FINAL PLAT
QUEENS AVE OTSEGO
APPLICANT: 104 Investments, LLC
APPLICATION: Request to approve the preliminary plat and final plat of Queens Ave Otsego.
CITY COUNCIL MEETING: 13 October 2025
FINDINGS: Based upon review of the application and evidence received, the Otsego City Council now makes the
following findings of fact:
A. The legal description of the property is:
The West Half of the West Half of the East Half of the Southwest Quarter of the Northeast
Quarter of Section 35, Township 121, Range 23.
Also the East Half of the West Half of the Southwest Quarter of the Northeast Quarter of
Section 35, Township 121, Range 23, according to the United States Government Survey
thereof and situate in Wright County, Minnesota.
B. The property is within the East Sewer District and is guided for Light Industrial land uses by the 2023
Otsego Comprehensive Plan, as amended.
C. The property is zoned A-1, Agriculture Rural Service District and I-1, Limited Industrial District.
D. The applicant is proposing to subdivide the property into two lots, two outlots, and public right-of-way.
F. The planning report dated 28 August 2025 prepared by the City Planner, The Planning Company LLC, is
incorporated herein.
G. The Otsego Planning Commission conducted a public hearing at their regular meeting on 15 September
2025 to consider the application, preceded by published and mailed notice; based upon review of the
application and evidence received, the public hearing was closed and the Planning Commission
recommended by a 7-0 vote that the City Council approve the request based on the aforementioned
findings.
DECISION: Based on the foregoing information and applicable ordinances, the requested is hereby approved,
subject to the following conditions:
2
1. Approval of the preliminary plat shall not guarantee access to sanitary sewer service. The City shall only
allocate sanitary sewer capacity to approved final plats with signed development contracts to assure the
City of timely development.
2. Development of Lot 1, Block 1, shall require application for, but not limited to, the following approvals:
a. Site and building plan review.
b. Interim Use Permit allowing outdoor storage.
3. Lot 2, Block 1 shall remain zoned A-1 District until such time as a proposal to develop the lot with a use
consistent with the Comprehensive Plan is submitted.
4. All right-of-way dedication shall be subject to review and approval by the City Engineer.
5. Utility Availability Charges are required to be paid subject to the following:
a. Lot 1, Block 1: Upon approval of site and building plans and execution of a Site Improvement
Performance Agreement for construction of an industrial use.
b. Lot 2, Block 1: Upon approval of a Zoning Map zoning the lot to allow development of a land use
as guided by the Comprehensive Plan.
c. Utility Availability Charges shall be based on the City fee schedule in effect at the time of
payment.
6. Utility Connection Charges are to be paid for the proposed use of Lot 1 and Lot 2, Block 1 at the time a
building permit is issued.
7. Stormwater management plans for Lots 1 and 2, Block 1 shall be subject to review and approval of the
City Engineer with application for site and building plan review,
8. Outlot A shall be deeded to the City for stormwater management purposes.
9. Park dedication:
a. Lot 1, Block 1: Park dedication shall be satisfied as a cash fee in lieu of land at the time of site
and building plan approval and execution of a Site Improvement Performance Agreement.
b. Lot 2, Block 1:
(1) Park dedication shall be satisfied upon approval of a Zoning Map zoning the lot to allow
development of a land use as guided by the Comprehensive Plan.
(2) The required park dedication cash fee in lieu of land shall be based on the City fee
schedule in effect at the time of payment.
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10. The developer shall enter into a Development Contract as required by Section 10-10-4.A of the
Subdivision Ordinance, subject to review by the City Attorney and approval of the City Council.
11. The final plat and Development Contract shall be recorded within 100 days from City Council approval.
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4
ADOPTED by the Otsego City Council this 13th day of October, 2025.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk
1
CITY OF OTSEGO
WRIGHT COUNTY, MINNESOTA
RESOLUTION NO: 2025-50
APPROVING A DEVELOPMENT CONTRACT FOR
QUEENS AVE OTSEGO
WHEREAS, 104 Investments, LLC (the “owner”) is proposing subdivision of the Queens Ave Otsego plat; and
WHEREAS, a final plat for the development was approved by the City Council on 13 October 2025; and
WHEREAS, Section 10-10-4.A of the Subdivision Ordinance requires the developer to enter into a
development contract to provide the City construction and warranty securities for the public and private
improvements and to provide the City various remedies in the event that the developer breaches the
terms and conditions of said agreement; and
WHEREAS, those obligations are outlined and memorialized in the attached Development Contract.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA THAT:
1. The Development Contract attached hereto between the City of Otsego and 104 Investments, LLC is
hereby approved in form subject to modification of fees, charges, and securities as approved by City
staff.
2. The Mayor and City Clerk are hereby authorized to execute the Development Contract on behalf of
the City of Otsego.
(remainder of page intentionally blank signatures to follow)
2
ADOPTED by the City Council of the City of Otsego this 13th day of October, 2025.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk
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(reserved for recording information)
DEVELOPMENT CONTRACT
(Developer Installed Improvements)
QUEENS AVE OTSEGO
CONTRACT dated ____________________, 2025, by and between the CITY OF OTSEGO, a
Minnesota municipal corporation (“City”), and 104 INVESTMENTS LLC, a Minnesota limited liability
company (the “Developer”).
1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a plat
for QUEENS AVE OTSEGO (referred to in this Contract as the "plat"). The land is situated in the County
of Wright, State of Minnesota, and is legally on Exhibit A attached hereto and made a part hereof.
2. CONDITIONS OF PLAT APPROVAL. The City hereby approves the plat on condition that
the Developer enter into this Contract, furnish the security required by it, and record the plat with the
County Recorder or Registrar of Titles within one hundred (100) days after the City Council approves the
final plat.
3. RIGHT TO PROCEED. Within the plat or land to be platted, the Developer may not grade
or otherwise disturb the earth or remove trees, unless a grading permit has been approved by the City
Engineer following approval of a preliminary plat by the City Council, construct sewer lines, water lines,
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streets, utilities, public or private improvements, or any buildings until all the following conditions have been
satisfied: 1) this contract has been fully executed by both parties and filed with the City Clerk, 2) the
necessary security has been received by the City, 3) the necessary insurance for the Developer and its
construction contractors has been received by the City, and 4) the plat has been filed with the Wright
County Recorder or Registrar of Titles’ office.
4. PHASED DEVELOPMENT. If the plat is a phase of a multi-phased preliminary plat, the
City may refuse to approve final plats of subsequent phases if the Developer has breached this Contract
and the breach has not been remedied. Development of subsequent phases may not proceed until
Development Contracts for such phases are approved by the City. Park dedication charges referred to in
this Contract are not being imposed on outlots, if any, in the plat that are designated in an approved
preliminary plat for future subdivision into lots and blocks. Such charges will be calculated and imposed
when the outlots are final platted into lots and blocks.
5. PRELIMINARY PLAT STATUS. If the plat is a phase of a multi-phased preliminary plat,
the preliminary plat approval for all phases not final platted shall lapse and be void unless final platted into
lots and blocks and outlots, within two (2) years after preliminary plat approval.
6. CHANGES IN OFFICIAL CONTROLS. For five (5) years from the date of this Contract, no
amendments to the City’s Comprehensive Plan or official controls shall apply to or affect the use,
development density, lot size, lot layout or dedications of the approved plat unless required by state or
federal law or agreed to in writing by the City and the Developer. Thereafter, notwithstanding anything in
this Contract to the contrary, to the full extent permitted by state law, the City may require compliance with
any amendments to the City’s Comprehensive Plan, official controls, platting or dedication requirements
enacted after the date of this Contract.
7. CONTRACTORS/SUBCONTRACTORS. City Council members, City employees, and
City Planning Commission members, and corporations, partnerships, and other entities in which such
individuals have greater than a twenty five percent (25%) ownership interest or in which they are an
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officer or director may not act as contractors or subcontractors for the public improvements identified in
Paragraph 6 above.
8. DEVELOPMENT PLANS. The plat shall be developed in accordance with the following
plans. The plans shall not be attached to this Contract. The plans may be prepared, subject to the City
Engineer’s approval, after entering the Contract, but before commencement of any work in the plat. The
City Engineer may approve minor amendments to Plans without City Council approval. If the plans vary
from the written terms of this Contract, the written terms shall control. The plans are:
Plan A - Plat
Plan B - Final Grading, Drainage, and Erosion Control Plan
Plan C - Plans and Specifications for Public Improvements
9. IMPROVEMENTS. The Developer shall install and pay for the following:
A. Sanitary Sewer System
B. Water System
C. Storm Sewer System
D. Streets
E. Concrete Curb and Gutter
F. Street Lights
G. Site Grading, Stormwater Treatment/Infiltration Basins, and Erosion Control
H. Underground Utilities
I. Setting of Iron Monuments
J. Surveying and Staking
K. Sidewalks and Trails
L. Retaining Walls
M. Landscaping
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The improvements shall be installed in accordance with the City subdivision ordinance; City
standard specifications for utility and street construction; and any other ordinances including Chapter 6 of
the City Code concerning erosion and sediment control. The Developer shall submit plans and
specifications which have been prepared by a competent Minnesota registered professional engineer to the
City for approval by the City Engineer. The Developer shall instruct its engineer to provide adequate field
inspection personnel to assure an acceptable level of quality control to the extent that the Developer’s
engineer will be able to certify that the construction work meets the approved City standards as a condition
of City acceptance. In addition, the City may, at the City’s discretion and at the Developer’s expense, have
one or more City inspectors and a soil engineer inspect the work on a full or part-time basis. The
Developer, its contractors and subcontractors, shall follow all instructions received from the City’s
inspectors. The Developer’s engineer shall provide for on-site project management. The Developer’s
engineer is responsible for design changes and contract administration between the Developer and the
Developer’s contractor. The Developer or its engineer shall schedule a pre-construction meeting at a
mutually agreeable time at the City with all parties concerned, including the City staff, to review the
program for the construction work. Within thirty (30) days after the completion of the improvements and
before the security is released, the Developer shall supply the City with a complete set of reproducible “as-
constructed” plans and an electronic file of the “as-constructed” plans in an AutoCAD .DWG file or a .DXF
file, all prepared in accordance with City standards.
In accordance with Minnesota Statutes 505.021, the final placement of iron monuments for all lot
corners must be completed before the applicable security is released. The Developer ’s surveyor shall also
submit a written notice to the City certifying that the monuments have been installed following site grading,
utility and street construction.
10. PERMITS. The Developer shall obtain or require its contractors and subcontractors to
obtain all necessary permits, which may include:
A. Wright County for County Road Access and Work in County Rights-of-Way
B. MnDot for State Highway Access
C. MnDot for Work in Right-of-Way
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D. Minnesota Department of Health for Watermains
E. MPCA NPDES Permit for Construction Activity
F. MPCA for Sanitary Sewer and Hazardous Material Removal and Disposal
G. DNR for Dewatering
H. City of Otsego for Building Permits, Retaining Walls, Irrigation
I. MDH for water permits
J. MPCA for sewer extension
11. DEWATERING. Due to the variable nature of groundwater levels and stormwater flows, it
will be the Developer’s and the Developer’s contractors and subcontractors responsibility to satisfy
themselves with regard to the elevation of groundwater in the area and the level of effort needed to
perform dewatering and storm flow routing operations. All dewatering shall be in accordance with all
applicable county, state, and federal rules and regulations. DNR regulations regarding appropriations
permits shall also be strictly followed.
12. TIME OF PERFORMANCE. The Developer shall install all required public improvements
by November 30, 2026.
13. LICENSE. The Developer hereby grants the City, its agents, employees, officers and
contractors a license to enter the plat to perform all work and inspections deemed appropriate by the City in
conjunction with plat development.
14. EROSION CONTROL. Prior to initiating site grading, the erosion control plan, Plan B, shall
be implemented by the Developer and inspected and approved by the City. The City may impose
additional erosion control requirements if they would be beneficial. All areas disturbed by the grading
operations shall be stabilized per the MPCA Stormwater Permit for Construction Activity. Seed shall be in
accordance with the City’s current seeding specification which may include temporary seed to provide
ground cover as rapidly as possible. All seeded areas shall be fertilized, mulched, and disc anchored as
necessary for seed retention. The parties recognize that time is of the essence in controlling erosion. If the
Developer does not comply with the MPCA Stormwater Permit for Construction Activity or with the erosion
control plan and schedule or supplementary instructions received from the City, the City may take such
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action as it deems appropriate to control erosion. The City will endeavor to notify the Developer in advance
of any proposed action, but failure of the City to do so will not affect the Developer’s and City’s rights or
obligations hereunder. If the Developer does not reimburse the City for any cost the City incurred for such
work within ten (10) days, the City may draw down the letter of credit to pay any costs. No development,
utility or street construction will be allowed and no building permits will be issued unless the plat is in full
compliance with the approved erosion control plan.
15. GRADING. The plat shall be graded in accordance with the approved grading development
and erosion control plan, Plan “B”. The plan shall conform to City of Otsego specifications. Within thirty
(30) days after completion of the grading and before the City approves individual building permits (except
three (3) model home permits on lots acceptable to the Building Official), the Developer shall provide the
City with an “as-constructed” grading plan certified by a registered land surveyor or engineer that all storm
water treatment/infiltration basins and swales, have been constructed on public easements or land owned
by the City. The “as-constructed” plan shall include field verified elevations of the following: a) cross
sections of storm water treatment/infiltration basins; b) location and elevations along all swales, wetlands,
wetland mitigation areas if any, locations and dimensions of borrow areas/stockpiles, and installed
“conservation area” posts; and c) lot corner elevations and house pads, and all other items listed in City
Code. The City will withhold issuance of building permits until the approved certified grading plan is on file
with the City and all erosion control measures are in place as determined by the City Engineer. The
Developer certifies to the City that all lots with house footings placed on fill have been monitored and
constructed to meet or exceed FHA/HUD 79G specifications. The soils observation and testing report,
including referenced development phases and lot descriptions, shall be submitted to the Building Official for
review prior to the issuance of building permits.
Before a building permit is issued, a cash escrow shall be furnished to the City in accordance with
the City’s current fee schedule to guarantee compliance with the erosion control and grading
requirements and the submittal of an as-built certificate of survey. If the final grading, erosion control and
as-built survey is not timely completed, the City may enter the lot, perform the work, and apply the cash
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escrow toward the cost. Upon satisfactory completion of the grading, erosion control and as-built survey,
the escrow funds, without interest, less any draw made by the City, shall be returned to the person who
deposited the funds with the City.
A certified as-built building pad survey must be submitted and approved for commercial, industrial
or institutional developments prior to issuance of a building permit.
16. CLEAN UP. The Developer shall clean dirt and debris from streets that has resulted from
construction work by the Developer, home builders, subcontractors, their agents or assigns. Prior to any
construction in the plat, the Developer shall identify in writing a responsible party and schedule for erosion
control, street cleaning, and street sweeping.
17. OWNERSHIP OF IMPROVEMENTS. Upon completion of the work and construction
required by this Contract and final acceptance by the City, the improvements lying within public easements
shall become City property without further notice or action.
18. LATERAL SANITARY SEWER. The Developer shall pay a cash fee in the amount of
$53,357.50 for the Sewer Availability Charge (“SAC”) at the time of site and building plan approval in
accordance with the City Fee Schedule then in effect, which is calculated as follows:
Lot 1, Block 1: 5.0 Gr Ac X 3.5 RECs/Gr Ac X $3,049/REC = $53,357.50
Sewer Availability Charges for Lot 2, Block 1 shall be required to be paid at the time the lot is
rezoned to allow a use as guided by the Future Land Use Plan of the Comprehensive Plan. The Sewer
Availability Charge to be paid shall be calculated based upon the Fee Schedule in effect at the time the
Zoning Map amendment is approved.
19. LATERAL WATERMAIN. The Developer shall pay a cash fee in the amount of
$67,025.00 for the Water Availability Charge (“WAC”) at the time of site and building plan approval in
accordance with the City Fee Schedule then in effect, which is calculated as follows:
Lot 1, Block 1: 5.0 Gr Ac X 3.5 RECs/Gr Ac X $3,830/REC = $67,025.00
Water Availability Charges for Lot 2, Block 1 shall be required to be paid at the time the lot is
rezoned to allow a use as guided by the Future Land Use Plan of the Comprehensive Plan. The Water
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Availability Charge to be paid shall be calculated based upon the Fee Schedule in effect at the time the
Zoning Map amendment is approved.
20. SEWER CONNECTION CHARGE AND WATER CONNECTION CHARGE. The
Developer shall pay to the City required water and sewer connection charges. The water and sewer
connection charges shall be collected per Section 8-1-6-C of City Code for all uses and must be paid prior
to the issuance of a building permit based on the fee schedule in effect at the time of application for the
building permit.
21. CONSTRUCTION ACCESS. Construction traffic access and egress for grading, public
utility construction, and public street construction is restricted to access the subdivision as approved by the
City Engineer.
22. PARK DEDICATION. The Parks System Master Plan does not identify land within the area
of the subject site for acquisition by the City for park purposes. As such, park dedication requirements are
to be satisfied by the Developer by a cash fee in lieu of land as provided for by Section 11-8-15.I of the
Subdivision Ordinance in the amount of $12,090.00. The Park Dedication Fee is to be calculated and paid
at the time of site and building plan approval in accordance with the City Fee Schedule then in effect. The
fee is calculated as follows.
Lot 1, Block 1: 5.0 Gr Acres x $2,418/Gr Acre = $12,090.00
The Park Dedication Fee for Lot 2, Block 1 shall be paid at the time the lot is rezoned to allow a
use as guided by the Future Land Use Plan of the Comprehensive Plan. The Water Availability Charge
to be paid shall be calculated based upon the Fee Schedule in effect at the time the
24. SPECIAL PROVISIONS. The following special provisions shall apply to plat development:
A. Implementation of the conditions listed in the Findings of Fact approved by the City Council on
October 13, 2025.
B. Before the City signs the final plat, the Developer shall convey Outlot A to the City by warranty
deed, free and clear of any and all encumbrances, including but not limited to all Outlots for
stormwater basins, wetlands, and wetland buffers.
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C. Development of Lot 1, Block 1, shall require application for, but not limited to, the following
approvals:
a. Site and building plan review.
b. Interim Use Permit allowing outdoor storage.
D. Lot 2, Block 1 shall remain zoned A-1 District until such time as a proposal to develop the lot
with a use consistent with the Comprehensive Plan is submitted.
E. All right-of-way dedication shall be subject to review and approval by the City Engineer.
F. Utility Availability Charges are required to be paid subject to the following:
a. Lot 1, Block 1: Upon approval of site and building plans and execution of a Site
Improvement Performance Agreement for construction of an industrial use.
b. Lot 2, Block 1: Upon approval of a Zoning Map zoning the lot to allow development of a land
use as guided by the Comprehensive Plan.
c. Utility Availability Charges shall be based on the City fee schedule in effect at the time of
payment.
G. Utility Connection Charges are to be paid for the proposed use of Lot 1 and 2, Block 1 at the
time a building permit is issued.
H. Stormwater management plans for Lots 1 and 2, Block 1 shall be subject to review and
approval of the City Engineer with application for site and building plan review.
I. The final plat and Development Contract shall be recorded within 100 days from City Council
approval.
J. Prior to City Council approval of the final plat, the Developer shall furnish a boundary survey of
the proposed property to be platted with all property corner monumentation in place and marked
with lath and a flag. Any encroachments on or adjacent to the property shall be noted on the
survey. The Developer's land surveyor certifies that all irons have been set following site
grading and utility and street construction. In addition, the certificate of survey must also
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include a certification that all irons for a specific lot have either been found or set prior to the
issuance of a building permit for that lot.
K. The Developer shall pay an escrow for the preparation of record construction drawings and City
base map updating. This fee is $250.00 per lot for a total charge of $500.00.
L. The Developer is required to submit the final plat in electronic format. The electronic format
shall be either AutoCAD.DWG file or a .DXF file. All construction record drawings (e.g.,
grading, utilities, streets) shall be in electronic format in accordance with standard City
specifications.
25. CONSTRUCTION ADMINISTRATION AND FEES FOR CITY SERVICES. The Developer
shall pay a fee for consulting engineering administration following approval of the Plat. 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 services, which are
estimated to be three percent (3%) of the estimated construction cost of the Improvements to be inspected,
assuming normal construction and project scheduling. The 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 proposed street, sanitary sewer, water and storm drainage construction
and will be billed on hourly rates actually required for said inspection, which are 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, the City will notify the Developer of anticipated cost overruns for
engineering administration and observation services. Any amounts for engineering administration not
utilized from this escrow fund shall be returned to the Developer when all improvements have been
completed, all financial obligations to the City satisfied, and the required "as constructed" plans have been
received by the City.
The escrow and fee account shall also include estimated fees for Legal expenses actually
incurred (with any excess funds, if any, returned to Developer as indicated in this Contract), City
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Administrative Fee (a flat fee due upon execution of this Agreement), Trunk Water and Sewer Access Fees
(a flat fee due upon execution of this Agreement), Park and Trail Dedication Fees (a flat fee due upon
execution of this Agreement), and shall be as stated by the Financial Summary.
This escrow amount shall be submitted to the City prior to the City executing this Agreement.
All administrative and legal fees related to plan review, drafting of this Agreement and any other necessary
items shall be paid to the City prior to execution of this Agreement. Any amounts for legal and engineering
not utilized from this escrow fund shall be returned to the Developer when all improvements have been
completed, all financial obligations to the City satisfied, and the required "as constructed" plans have been
received by the City.
All other amounts listed as flat fees are non-refundable and available immediately for City use
when posted.
26. SECURITY. To ensure compliance with the terms of this Contract, and construction of all
public improvements, and satisfaction of all other obligations, the Developer shall furnish the City with a
cash escrow or Irrevocable Standby Letter of Credit with automatic renewal provisions in the amount as
required under this Contract. The security amount shall be one hundred twenty five percent (125%) of the
City Engineer’s estimated cost of all public improvements and/or private improvements required by the
Subdivision Ordinance or Zoning Ordinance. The Developer shall provide an additional security equal to six
and one-half (6.5%) of the estimated cost of the required public and/or private improvements for use by the
City for the purpose of assuming responsibility for design, bidding, and construction administration of the
required improvement in the event of a default by the Developer as provided for by this contract.
The issuer and form of the security (other than cash escrow) shall be subject to City approval in its
reasonable discretion. The security shall be issued by a banking institution in good standing as determined
by the City and approved by the City Administrator. The City shall have the ability to draw on the security at
a bank or branch bank located within fifty (50) miles of the City Hall. The security shall contain an automatic
renewal provision and shall not expire until all the Development is complete and fully and finally accepted by
the City, and all terms of this Contract are satisfied.
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The City may draw down the security, on five (5) business days written notice to the Developer, for
any violation of the terms of this Contract or without notice if the security is allowed to lapse prior to the end
of the required term. If the required public improvements are not completed at least thirty (30) days prior to
the expiration of the security, the City may also draw it down without notice. If the security is drawn down,
the proceeds shall be used to cure the default.
Upon receipt of proof satisfactory to the City that work has been completed and financial obligations
to the City have been satisfied, with City approval not to be unreasonably withheld or delayed, the security
shall be reduced from time to time in proportion to the work completed, but not below ten percent (10%)
which is the amount of the warranty security. For purposes of this Section, the warranty period shall be a
twelve (12) month period after the applicable work has been completed, except with respect to streets, for
which the warranty period shall be two years as addressed elsewhere in this Contract.
This security amount shall be submitted to the City prior to execution of the Contract. All
administrative and legal fees related to plan review, drafting of this Contract and any other necessary items
shall be paid to the City prior to execution of the Contract. Upon completion of the work contemplated
hereunder and expiration of the warranty period, the remaining security shall be promptly released to
Developer.
27. SUMMARY OF SECURITY REQUIREMENTS. The amount of the security described
above is calculated as follows:
CONSTRUCTION COSTS:
OTHER COSTS:
A. Site Grading, Erosion & Sediment Control & Wetland Protection $12,000.00
OTHER COSTS SUB-TOTAL $12,000.00
TOTAL – SUBTOTAL
TOTAL IRREVOCABLE LETTER OF CREDIT $15,000.00
FOR SECURITY (125% OF SUBTOTAL
ESCROW
A. City Legal Expenses ($1,500.00 Minimum) $1,500.00
B. GIS Data Entry Fee 500.00
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ESCROW TOTAL $2,000.00
This breakdown is not a restriction on the use of the security.
28. SUMMARY OF CASH REQUIREMENTS. The following is a summary of the cash
requirements under this Contract which must be furnished to the City prior to the City Council signing the
final plat:
A. City Administrative (1,500.00 Minimum) $1,500.00
B. Trunk Sewer Access Fee (SAC) 53,357.50
C. Trunk Water (WAC) 67,025.00
D. Park And Trail Dedication 12,090.00
TOTAL CASH REQUIREMENTS $133,972.50
29. WARRANTY. The Developer warrants all improvements required to be constructed by it
pursuant to this Contract against poor material and faulty workmanship, other than as set forth hereafter in
this Section 31, for a period of one (1) year. The warranty period for streets is two (2) years as specified in
this Contract. The warranty period for underground utilities is two (2) years and shall commence following
completion and acceptance by City Council. A minimum of ten percent (10%) of the total security as
specified above in the portion of Section 29 of this Contract shall be retained as warranty security
calculated as follows.
WARRANTY RETAINAGE
A. Erosion & Sedimentation Control 600.00
TOTAL WARRANTY RETAINAGE FROM LETTER OF CREDIT $600.00
The Developer is not required to post this amount separately but rather this amount shall be
retained for warranty purposes from the total security posted according to Section 29 of this Contract until
warranty obligations are satisfied.
30. RESPONSIBILITY FOR COSTS.
A. Except as otherwise specified herein, the Developer shall pay all costs incurred by it or the City
in conjunction with the development of the plat, including but not limited to Soil and Water
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Conservation District charges, legal, planning, engineering and construction observation
inspection expenses incurred in connection with approval and acceptance of the plat, the
preparation of this Contract, review of construction plans and documents, and all costs and
expenses incurred by the City in monitoring and inspecting development of the plat.
B. The Developer shall hold the City and its officers, employees, and agents harmless from claims
made by itself and third parties for damages sustained or costs incurred resulting from plat
approval and development. The Developer shall indemnify the City and its officers, employees,
and agents for all costs, damages, or expenses which the City may pay or incur in
consequence of such claims, including attorneys' fees.
C. The Developer shall reimburse the City for costs incurred in the enforcement of this Contract,
including engineering and attorneys' fees.
D. The Developer shall pay, or cause to be paid when due, and in any event before any penalty is
attached, all special assessments referred to in this Contract. This is a personal obligation of
the Developer and shall continue in full force and effect even if the Developer sells one or more
lots, the entire plat, or any part of it.
E. The Developer shall pay in full all bills submitted to it by the City for obligations incurred under
this Contract within thirty (30) days after receipt. If the bills are not paid on time, the City may
halt plat development and construction until the bills are paid in full. Bills not paid within thirty
(30) days shall accrue interest at the rate of eighteen percent (18%) per year. Additionally, the
Developer shall pay in full all bills submitted to it by the City prior to any reductions in the
security for the development.
F. In addition to the charges and special assessments referred to herein, other charges and
special assessments may be imposed such as but not limited to sewer availability charges
("SAC"), City water connection charges, City sewer connection charges, and building permit
fees.
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31. DEVELOPER’S DEFAULT. In the event of default by the Developer as to any of the work
to be performed by it hereunder, the City may, at its option, perform the work and the Developer shall
promptly reimburse the City for any expense incurred by the City, provided the Developer, except in an
emergency as determined by the City, is first given notice of the work in default, not less than forty-eight
(48) hours in advance. This Contract is a license for the City to act, and it shall not be necessary for the
City to seek a Court order for permission to enter the land. When the City does any such work, the City
may, in addition to its other remedies, assess the cost in whole or in part.
32. MISCELLANEOUS.
A. The Developer represents to the City that the plat complies with all city, county, state, and
federal laws and regulations, including but not limited to: subdivision ordinances, zoning
ordinances, and environmental regulations. If the City determines that the plat does not
comply, the City may, at its option, refuse to allow construction or development work in the plat
until the Developer does comply. Upon the City's demand, the Developer shall cease work until
there is compliance.
B. Third parties shall have no recourse against the City under this Contract.
C. Breach of the terms of this Contract by the Developer shall be grounds for denial of building
permits, including lots sold to third parties.
D. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this Contract is for
any reason held invalid, such decision shall not affect the validity of the remaining portion of this
Contract.
E. Grading, curbing, and one (1) lift of asphalt shall be installed on all public and private streets
prior to issuance of any building permits.
F. If building permits are issued prior to the acceptance of public improvements, the Developer
assumes all liability and costs resulting in delays in completion of public improvements and
damage to public improvements caused by the City, Developer, its contractors, subcontractors,
material men, employees, agents, or third parties. No sewer and water connections or
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inspections may be conducted and no one may occupy a building for which a building permit is
issued on either a temporary or permanent basis until the streets needed for access have been
paved with a bituminous surface and the utilities are accepted by the City Engineer.
G. The action or inaction of the City shall not constitute a waiver or amendment to the provisions of
this Contract. To be binding, amendments or waivers shall be in writing, signed by the parties
and approved by written resolution of the City Council. The City's failure to promptly take legal
action to enforce this Contract shall not be a waiver or release.
H. This Contract shall run with the land and may be recorded against the title to the property. In
the event this Contract is recorded, upon request by Developer, the City covenants to provide a
recordable Certificate of Completion within a reasonable period of time following the request,
upon the completion of the work and responsibilities required herein, payment of all costs and
fees required and compliance with all terms of the Contract. A release of this Contract may be
provided in the same manner and subject to the same conditions as a Certificate of Completion
provided there are no outstanding or ongoing obligations of Developer under the terms of this
Contract. The Developer covenants with the City, its successors and assigns, that the
Developer is well seized in fee title of the property being final platted and/or has obtained
consents to this Contract, in the form attached hereto, from all parties who have an interest in
the property; that there are no unrecorded interests in the property being final platted; and that
the Developer will indemnify and hold the City harmless for any breach of the foregoing
covenants.
I. Insurance. Prior to execution of the final plat, Developer and its general contractor shall
furnish to the City a certificate of insurance showing proof of the required insurance required
under this Paragraph. Developer and its general contractor shall take out and maintain or
cause to be taken out and maintained until six (6) months after the City has finally accepted
the public improvements, such insurance as shall protect Developer and its general contractor
and the City for work covered by the Contract including workers’ compensation claims and
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property damage, bodily and personal injury which may arise from operations under this
Contract, whether such operations are by Developer and its general contractor or anyone
directly or indirectly employed by either of them. The minimum amounts of insurance shall be
as follows:
Commercial General Liability (or in combination with an umbrella policy)
$2,000,000 Each Occurrence
$2,000,000 Products/Completed Operations Aggregate
$2,000,000 Annual Aggregate
The following coverages shall be included:
Premises and Operations Bodily Injury and Property Damage
Personal and Advertising Injury
Blanket Contractual Liability
Products and Completed Operations Liability
Automobile Liability
$2,000,000 Combined Single Limit – Bodily Injury & Property Damage
Including Owned, Hired & Non-Owned Automobiles
Workers Compensation
Workers’ Compensation insurance in accordance with the statutory requirements of the
State of Minnesota, including Employer’s Liability with minimum limits are as follows:
• $500,000 – Bodily Injury by Disease per employee
• $500,000 – Bodily Injury by Disease aggregate
• $500,000 – Bodily Injury by Accident
The Developer’s and general contractor’s insurance must be “Primary and Non-Contributory”.
All insurance policies (or riders) required by this Contract shall be (i) taken out by and
maintained with responsible insurance companies organized under the laws of one of the
states of the United States and qualified to do business in the State of Minnesota, (ii) shall
name the City, its employees and agents as additional insureds (CGL and umbrella only) by
endorsement which shall be filed with the City and (iii) shall identify the name of the plat. A
copy of the endorsement must be submitted with the certificate of insurance.
Developer’s and general contractor’s policies and Certificate of Insurance shall contain a
provision that coverage afforded under the policies shall not be cancelled without at least
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thirty (30) days’ advanced written notice to the City, or ten (10) days’ notice for non-payment
of premium.
An Umbrella or Excess Liability insurance policy may be used to supplement Developer’s
or general contractor’s policy limits on a follow-form basis to satisfy the full policy limits
required by this Contract.
J. Indemnification. To the fullest extent permitted by law, Developer agrees to defend, indemnify
and hold harmless the City, and its employees, officials, and agents from and against all
claims, actions, damages, losses and expenses, including reasonable attorney fees, arising
out of Developer’s negligence or its performance or failure to perform its obligations under this
Contract. Developer’s indemnification obligation shall apply to Developer’s general
contractor, subcontractor(s), or anyone directly or indirectly employed or hired by Developer,
or anyone for whose acts Developer may be liable. Developer agrees this indemnity
obligation shall survive the completion or termination of this Contract.
K. Each right, power or remedy herein conferred upon the City is cumulative and in addition to
every other right, power or remedy, express or implied, now or hereafter arising, available to
City, 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 the City and shall not be a waiver of the
right to exercise at any time thereafter any other right, power or remedy.
L. The Developer may not assign this Contract without the written permission of the City Council.
The Developer's obligation hereunder shall continue in full force and effect even if the
Developer sells one or more lots, the entire plat, or any part of it, until the City’s issuance of a
Certificate of Completion and Release.
M. Retaining walls over four feet in height shall be constructed in accordance with plans and
specifications prepared by a structural or geotechnical engineer licensed by the State of
Minnesota. Following construction, a certification signed by the design engineer shall be filed
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with the Building Official evidencing that the retaining wall was constructed in accordance with
the approved plans and specifications. All retaining walls identified on the development plans
and by special conditions referred to in this Contract shall be constructed before any other
building permit is issued for a lot on which a retaining wall is required to be built. All retaining
walls must comply with the City’s engineering manual and the City’s zoning ordinance.
N. Should the Developer convey any lot or lots in the Development to a third party, the City and the
owner of that lot or those lots may amend this Development Contract or other city approvals or
agreements for development or use of those lots without the approval or consent of the
Developer or other lot owners in the Development. Private agreements between the owners of
lots within the Development for shared service or access and related matters necessary for the
efficient use of the Development shall be the responsibility of the lot owners and shall not bind
or restrict City authority to approve applications from any lot owner in the Development.
33. NOTICES. Required notices to the Developer shall be in writing, and shall be either hand
delivered to the Developer, its employees or agents, or mailed to the Developer by certified mail at the
following address: 12468 Hassan Court, Rogers, Minnesota 55374. Notices to the City shall be in
writing and shall be either hand delivered to the City Administrator, or mailed to the City by certified mail
in care of the City Administrator at the following address: Otsego City Hall, 13400 90th Street NE,
Otsego, Minnesota 55330.
[The remainder of this page has been intentionally left blank.
Signature pages follow.]
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CITY OF OTSEGO
BY: ___________________________________________
Jessica L. Stockamp, Mayor
(SEAL)
AND __________________________________________
Audra Etzel, City Clerk
STATE OF MINNESOTA )
)ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this ________ day of ______________,
2025, by Jessica L. Stockamp and by Audra Etzel, the Mayor and City Clerk of the City of Otsego, a
Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its
City Council.
______________________________________________
NOTARY PUBLIC
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DEVELOPER:
104 INVESTMENTS LLC
BY: ___________________________________________
Its
STATE OF MINNESOTA )
)ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this ________ day of ______________,
2025, by __________________________________ the ____________________________________ of
104 Investments LLC, a Minnesota limited liability company, on behalf of said entity.
______________________________________________
NOTARY PUBLIC
DRAFTED BY:
CAMPBELL, KNUTSON
Professional Association
Grand Oak Office Center I
860 Blue Gentian Road, Suite 290
Eagan, MN 55121
Telephone: 651-452-5000
DSK/smt
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FEE OWNER CONSENT
TO
DEVELOPMENT CONTRACT
JAMES D. AESHLIMAN AND SIMONE J. AESHLIMAN, married to each other, fee owners of all
or part of the subject property, the development of which is governed by the foregoing Development
Contract, affirm and consent to the provisions thereof and agree to be bound by the provisions as the same
may apply to that portion of the subject property owned by them.
Dated this _____ day of ____________, 2025.
______________________________________
James D. Aeshliman
______________________________________
Simone J. Aeshliman
STATE OF MINNESOTA )
)ss.
COUNTY OF __________ )
The foregoing instrument was acknowledged before me this _____ day of _____________, 2025,
by James D. Aeshliman, spouse to Simone J. Aeshliman.
________________________________________
NOTARY PUBLIC
STATE OF MINNESOTA )
)ss.
COUNTY OF __________ )
The foregoing instrument was acknowledged before me this _____ day of _____________, 2025,
by Simone J. Aeshliman, spouse to James.D. Aeshliman.
________________________________________
NOTARY PUBLIC
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
Grand Oak Office Center I
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
651-452-5000
DSK/smt
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MORTGAGE HOLDER CONSENT
TO
DEVELOPMENT CONTRACT
MIN: 100853701047753859
MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., a Delaware corporation, as Nominee for
the Lender LOANDEPOT.COM, LLC a Delaware limited liability company, its successors and assigns,
which holds a mortgage executed by James D. Aeshliman and Simone J. Aeshliman, dated February 12,
2022, and recorded February 18, 2022 as Document No. A1499155 in the amount of $312,000.00 in
favor of Mortgage Electronic Registration Systems, Inc., as nominee for LOANDEPOT.COM, LLC, a
Delaware limited liability company, in the office of the County Recorder, Wright County, Minnesota on all
or part of the subject property, the development of which is governed by the foregoing Development
Contract, agrees that the Development Contract shall remain in full force and effect even if it forecloses on
its mortgage.
Dated this _____ day of ____________, 2025.
MORTGAGE ELECTRONIC
REGISTRATION SYSTEMS, INC.,
AS MORTGAGEE, AS NOMINEE
FOR LENDER LOANDEPOT.COM, LLC
By
_________________________ [print name]
Its ______________________ [title]
STATE OF _____________ )
) ss.
COUNTY OF ___________ )
The foregoing instrument was acknowledged before me this _________ day of
_________________, 2025, by ___________________________the ______________________of
MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., a Delaware corporation, as Mortgagee,
as Nominee for the Lender LOANDEPOT.COM, LLC, a Delaware limited liability company, its successors
and assigns, on behalf of said entity.
________________________________________
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
Grand Oak Office Center I
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
Telephone: (651) 452-5000
DSK/smt
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MORTGAGE HOLDER CONSENT
TO
DEVELOPMENT CONTRACT
21ST CENTURY BANK, a Minnesota banking corporation, which holds a mortgage dated October
4, 2023, made and executed between Simone Aeshliman and James Aeshliman, married to each other,
and 21st Century Bank, a Minnesota banking corporation, in the original principal amount of $275,000.00 in
favor of 21st Century Bank, recorded in the Office of the County Recorder, Wright County, Minnesota, as
Document No. A1540397 on the subject property, the development of which is governed by the foregoing
Development Contract, agrees that the Development Contract shall remain in full force and effect even if it
forecloses on its mortgage.
Dated this _____ day of ____________, 2025.
21ST CENTURY BANK
By:
_________________________ [print name]
Its: ______________________ [title]
STATE OF MINNESOTA )
)ss.
COUNTY OF ___________ )
The foregoing instrument was acknowledged before me this ___________ day of
______________________, 2025, by _________________________________________________, the
________________________________ of 21ST CENTURY BANK, a Minnesota banking corporation, on
behalf of said entity.
________________________________________
NOTARY PUBLIC
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
Grand Oak Office Center I
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
651-452-5000
DSK/smt
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EXHIBIT “A”
TO
DEVELOPMENT CONTRACT
Legal Description of Property Being Final Platted as
QUEENS AVE OTSEGO
The West Half of the West Half of the East Half of the Southwest Quarter of the Northeast
Quarter of Section 35, Township 121, Range 23.
Also
The East Half of the West Half of the Southwest Quarter of the Northeast Quarter of
Section 35, Township 121, Range 23, according to the United States Government Survey
thereof and situate in Wright County, Minnesota.
(Abstract Property)
[Platted as Queens Ave Otsego, Wright County, Minnesota.]
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[BANK LETTERHEAD]
IRREVOCABLE LETTER OF CREDIT
No. ___________________
Date: _________________
TO: City of Otsego
City Hall
13400 90th Street NE
Otsego, Minnesota 55330
Dear Sir or Madam:
We hereby issue, for the account of (Name of Developer) and in your favor, our Irrevocable
Letter of Credit in the amount of $____________, available to you by your draft drawn on sight on the
undersigned bank.
The draft must:
a) Bear the clause, "Drawn under Letter of Credit No. __________, dated ________________, 2_____,
of (Name of Bank) ";
b) Be signed by the City Administrator or Finance Director of the City of Otsego.
c) Be presented for payment at (Address of Bank) , on or before 4:00 p.m. on November 30,
2_____.
This Letter of Credit shall automatically renew for successive one-year terms unless, at least forty-five
(45) days prior to the next annual renewal date (which shall be November 30 of each year), the Bank delivers
written notice to the Otsego Finance Director that it intends to modify the terms of, or cancel, this Letter of Credit.
Written notice is effective if sent by certified mail, postage prepaid, and deposited in the U.S. Mail, at least forty -
five (45) days prior to the next annual renewal date addressed as follows: Otsego Finance Director, Otsego City
Hall, 13400 90th Street NE, Otsego, MN 55330, and is actually received by the Finance Director at least thirty
(30) days prior to the renewal date.
DEMAND(S) FOR PAYMENT MAY ALSO BE MADE BY FACSIMILE TRANSMISSION TO ________ OR
SUCH OTHER FAX NUMBER AS (NAME OF ISSUING BANK) MAY IDENTIFY IN A WRITTEN NOTICE TO
YOU. TO THE EXTENT PRESENTATION IS MADE BY FACSIMILE TRANSMISSION YOU MUST PROVIDE
TELEPHONE NOTIFICATION THEREOF TO (NAME OF ISSUING BANK) AT TELEPHONE NUMBER:
_________ PRIOR TO OR SIMULTANEOUSLY WITH THE SENDING OF SUCH FACSIMILE
TRANSMISSION. HOWEVER, THE ABSENCE OF SUCH TELEPHONE CONFIRMATION AS DESCRIBED
ABOVE DOES NOT AFFECT OUR OBLIGATION TO HONOR SUCH DRAWING, IF SUCH DRAWING IS
OTHERWISE IN COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS IRREVOCABLE LETTER
OF CREDIT. IF DEMAND FOR PAYMENT IS MADE BY FAX, PRESENTATION OF ORIGINAL
DOCUMENTS IS NOT REQUIRED.
OR
DEMAND(S) FOR PAYMENT TO BE MADE VIA EMAIL TO _______________. PRESENTATION OF
ORIGINAL DOCUMENTS IS NOT REQUIRED.
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This Letter of Credit sets forth in full our understanding which shall not in any way be modified,
amended, amplified, or limited by reference to any document, instrument, or agreement, whether or not referred
to herein.
This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may
be made under this Letter of Credit.
This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice
for Documentary Credits, International Chamber of Commerce Publication No. 600.
We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly
honored upon presentation.
[NAME OF BANK]
BY: ____________________________________
Its ______________________________