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Item 3.6 Outlot A Great River Centre of Otsego 7th Addition Authorizing Release of Agreements Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 23 February 2026 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty City Engineer Wagner City Attorney Kendall 3.6 – GRC of Otsego 7th Addition 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 recommends the City Council approve partial release of development contracts and an assessment agreement. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No Yes, held by Planning Commission 19 May 2025 BACKGROUND/JUSTIFICATION: Foss Swim School has acquired Outlot A, Great River Centre of Otsego Seventh Addition. A preliminary plat for platting one lot and a sketch plan for development of a private swim school and second principal building on the property was approved by the City Council at their meeting on 26 January 2026. The developer is preparing plans for submission of an application for final plat approval and site and building plan review for the proposed development. A title commitment prepared for the developers closing on the property identified two prior development contracts and an assessment agreement in effect over the property. The developer is requesting that these documents be released only as they apply to Outlot A, Great River Centre of Otsego Seventh Addition. City staff has reviewed the development contracts, which were put in place with the initial development of Great River Centre of Otsego and for the Due North (now Good Day) car wash. The assessment agreement was established to relieve the initial developer of obligations related to street and construction improvements with the overall development. The terms of the development contracts and assessment agreement are no longer applicable to Outlot A, Great River Centre of Otsego Seventh Addition. The City Attorney has drafted partial releases of these documents for Outlot A, Great River Centre of Otsego Seventh Addition. SUPPORTING DOCUMENTS ATTACHED: • Resolution 2026-12 POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to adopt Resolution 2026-12 authorizing release of development contracts and a public improvement and special assessment agreement for Outlot A, Great River Centre of Otsego Seventh Addition. BUDGET INFORMATION FUNDING: BUDGETED: N/A N/A 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2026-12 AUTHORIZING RELEASE AND DISCHARGE OF DEVELOMENT CONTRACTS AND PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT FOR OUTLOT A, GREAT RIVER CENTRE OF OTSEGO SEVENTH ADDITION WHEREAS, the City has been asked to release and discharge real property in Wright County, Minnesota, legally described as set forth on attached Exhibit A; and WHEREAS, the property is subject to a development agreement between the City and Appello Group, LLC dated May 16, 2006, and recorded June 16, 2006, as Wright County Recorder Document Number A1014006; and WHEREAS, the property is subject to a development agreement between the City and CN Otsego Properties LLC, dated October 28, 2022, and recorded November 18, 2022, as Wright County Recorder Document Number A1521342; and WHEREAS, the property is subject to a Public Improvement and Special Assessment Agreement between the City and CN Otsego Properties LLC, dated October 28, 2022, and recorded as Wright County Recorder Document Number A1521338; and WHEREAS, all requirements of the aforementioned Development Contracts and Public Improvement and Special Assessment Agreement have been met as to the Property and there is no longer a need to have the Development Contract or Public Improvement and Special Assessment Agreement recorded against the Property; and WHEREAS, the City Attorney has drafted Release of Development Contract for the Property from Document No. A1014006 attached as Exhibit B; and WHEREAS, the City Attorney has drafted Release of Development Contract for the Property from Document No. A1521342 attached as Exhibit C; and WHEREAS, the City Attorney has drafted Release of Public Improvement and Special Assessment Agreement for the Property from Document No. A1521338 attached as Exhibit D. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA: 1. The Property described in Exhibit A is released and discharged from the Development Contract recorded as Wright County Recorder Document Number A1014006. 2. The Property described in Exhibit A is released and discharged from the Development Contract recorded as Wright County Recorder Document Number A1521342. 3. The Property described in Exhibit A is released and discharged from the Public Improvement and Special Assessment Agreement recorded as Wright County Recorder Document Number A1521338. 2 4. The City Administrator is authorized by Resolution 2019-80 to execute the releases of the Development Contracts recorded as Wright County Recorder Document Number A1014006 and A1521342 on behalf of the City of Otsego. 5. The Mayor and City Clerk are hereby authorized to execute release of the Public Improvement and Special Assessment Agreement recorded as Wright County Recorder Document Number A1521338on behalf of the City of Otsego. (remainder of page blank signatures follow) 3 ADOPTED by the Otsego City Council this 23rd day of February, 2026. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk EXHIBIT A LEGAL DESCRIPTION Outlot A, Great River Centre of Otsego Seventh Addition, Wright County, Minnesota, according to the recorded plat thereof. 1 238426v1 EXHIBIT B (reserved for recording information) RELEASE OF DEVELOPMENT CONTRACT RELEASE granted ______________________, 2026, by the CITY OF OTSEGO, a Minnesota municipal corporation ("City"). WHEREAS, the City has been asked to release and discharge real property in Wright County, Minnesota, legally described as set forth on attached Exhibit “A”, according to the recorded plat thereof (“Subject Property”) from the Development Agreement between the City and Apello Group, LLC, a Minnesota limited liability company (“Developer”) dated May 16, 2006, and recorded June 15, 2006, as Document No. A1014006, as amended, in the Office of the County Recorder, Wright County, Minnesota (“Development Contract”); WHEREAS, all requirements of the Development Contract have been met as to the Property and there is no longer a need to have the Development Contract recorded against the Property; and WHEREAS, the City Council of Otsego adopted Resolution 2019-80 authorizing the City Administrator to execute an administrative release in this matter without further action of the City Council; NOW, THEREFORE, by the City of Otsego, Minnesota: The Subject Property described in Exhibit A is released and discharged from the Development Contract. 2 238426v1 DATED this ______ day of ____________, 2026. CITY OF OTSEGO BY: _______________________________________ Adam Flaherty, City Administrator (SEAL) STATE OF MINNESOTA ) )ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this _______ day of __________________, 2026, by Adam Flaherty, City Administrator 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 THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association Grand Oak Office Center 1 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 651-452-5000 DSK/smt 238426v1 EXHIBIT “A” LEGAL DESCRIPTION Outlot A, Great River Centre of Otsego Seventh Addition, Wright County, Minnesota, according to the recorded plat thereof. 1 238427v1 EXHIBIT C (reserved for recording information) RELEASE OF DEVELOPMENT CONTRACT RELEASE granted ______________________, 2026, by the CITY OF OTSEGO, a Minnesota municipal corporation ("City"). WHEREAS, the City has been asked to release and discharge real property in Wright County, Minnesota, legally described as set forth on attached Exhibit “A”, according to the recorded plat thereof (“Subject Property”) from the Development Contract between the City and CN Otsego Properties LLC, a Minnesota limited liability company (“Developer”) dated October 28, 2022, and recorded November 18, 2022, as Document No. A1521342 in the Office of the County Recorder, Wright County, Minnesota (“Development Contract”); WHEREAS, all requirements of the Development Contract have been met as to the Property and there is no longer a need to have the Development Contract recorded against the Property; and WHEREAS, the City Council of Otsego adopted Resolution 2019-80 authorizing the City Administrator to execute an administrative release in this matter without further action of the City Council; NOW, THEREFORE, by the City of Otsego, Minnesota: The Subject Property described in Exhibit A is released and discharged from the Development Contract. 2 238427v1 DATED this ______ day of ____________, 2026. CITY OF OTSEGO BY: _______________________________________ Adam Flaherty, City Administrator (SEAL) STATE OF MINNESOTA ) )ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this _______ day of __________________, 2026, by Adam Flaherty, City Administrator 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 THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association Grand Oak Office Center 1 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 651-452-5000 DSK/smt 238427v1 EXHIBIT “A” LEGAL DESCRIPTION Outlot A, Great River Centre of Otsego Seventh Addition, Wright County, Minnesota, according to the recorded plat thereof. 238428v1 EXHIBIT D (reserved for recording information) PARTIAL RELEASE OF SPECIAL ASSESSMENT AGREEMENT RECITALS: A. CN Otsego Properties, LLC, a Minnesota limited liability company (“Owner”) is the fee owner of the property legally described in Exhibit “A” attached hereto and made a part hereof (the “Property”); B. The City of Otsego, a Minnesota municipal corporation (hereinafter referred to as “City”), and Owner entered into a Public Improvement and Special Assessment Agreement dated October 28, 2022, and recorded as Wright County Recorder Document Number A1521338 (“Agreement”) for the Property. B. All assessments levied under the Special Assessment Agreement for the Property have now been paid in full. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. The City hereby confirms the satisfaction and payment in full of the assessments on the Property. 2. The Property is hereby released from the Special Assessment Agreement. 238428v1 CITY OF OTSEGO BY: _____________________________________ Jessica 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 __________________, 2026, by Jessica Stockamp and Audra Etzel, respectively 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 THIS INSTRUMENT WAS 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 238428v1 3 EXHIBIT “A” TO PARTIAL RELEASE OF SPECIAL ASSESSMENT AGREEMENT Legal Description Outlot A, Great River Centre of Otsego Seventh Addition, Wright County, Minnesota according to the recorded plat thereof.