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Item 5.1 Jacobs Plat Second Addition Endeavor Investments Xll LLC Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 27 July 2026 PRESENTER(s) REVIEWED BY: ITEM #: City Planner Licht City Administrator/Finance Director Flaherty City Engineer Wagner City Attorney Kendall 5.1 – Jacobs Plat Second 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 vacation of existing drainage and utility easements, a final plat, a Development Contract, and Special Assessment Agreements for public improvements and utility fees. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes Yes, held by the Planning Commission on 18 May 2026 BACKGROUND/JUSTIFICATION: Endeavor Investments XII, LLC received City Council approval of a preliminary plat on 26 May 2026 to expand Lot 1, Block 1, Jacobs Plat, for the industrial warehouse/distribution building located at 6400 Queens Avenue. The developer has applied for approval of a final plat. The final plat consists of one lot and one outlot. Final plat applications are processed in accordance with Section 10-5-3 of the Subdivision Ordinance and are subject to review and approval of the City Council. • Preliminary Plat. The subdivision design expanding Lot 1, Block 1 and reducing the area of Outlot A to allow for an outdoor storage use upon the subject property is consistent with the preliminary plat. • Comprehensive Plan. The subject property is guided by the Comprehensive Plan for light industrial land uses. This land use category includes office, warehouse, and distribution facilities as primary uses for the area to encourage location of businesses with larger, high-quality buildings and employment opportunities. Although no physical changes to the building are proposed at this time, the change in occupancy will result in creation of more than 100 jobs on site. The existing and proposed use of Lot 1, Block 1 is consistent with the goals and policies of the Comprehensive Plan. • Zoning. The subject property is zoned I-1, Limited Industrial District. The proposed use of the property for a building materials warehouse and distribution facilities is a permitted use of the I-1 District. An Interim Use Permit was also approved to allow outdoor storage within Lot 1, Block 1. Use of the property is subject to the conditions of approval adopted by the City Council on 26 May 2026. • Surrounding Area. The table below summarizes existing and planned land uses in the area surrounding the subject property. The existing and proposed use of the subject property is characteristic of the industrial uses developed to the west within the Gateway North Industrial Park. Additional development of this type is planned to the north. Direction Land Use Plan Zoning Map Existing Use North Industrial I-1 District A-1 District Undeveloped Rural residential East LD Residential A-1 District Undeveloped Rural residential South LD Residential R-5 District Harvest Run/Harvest Run East West Industrial I-2 District Gateway North Industrial Park • Lot Area. Section 11-85-7.A of the Zoning Ordinance requires lots within the I-1 District to have a minimum area of 1.0 acre. Lot 1, Block 1 is proposed to be 38.65 acres in area and complies with the minimum lot requirement established by the Zoning Ordinance. • Lot Width. Section 11-85-7.B of the Zoning Ordinance requires lots within the I-1 District to have a minimum width of 200 feet at the front setback line. Lot 1, Block 1 measures 1,239 feet at the setback line from 65th Street and complies with the minimum lot width requirement of the Zoning Ordinance. • Right-of-Way. The subject property abuts Queens Avenue on the east and 65th Street to the north. Queens Avenue is an improved Industrial/Commercial Major Collector Street in accordance with the Transportation Plan of the 2023 Comprehensive Plan. The Transportation Plan designates 65th Street as an Industrial/Commercial Major Collector Street. The Jacobs Plat provided for dedication of all right-of-way necessary for Queens Avenue and 65th Street and no additional right-of-way is required with the final plat. • 65th Street. On the north line of the subject property, 65th Street exists as a rural section gravel roadway. The Subdivision Ordinance requires that when a property is subdivided, abutting roadways must be improved to the standard designated by the Transportation Plan. The City deferred improvement of 65th Street with the Jacobs Plat as a means of financial assistance for the development. The Jacobs Plat approval includes a condition that upon platting any portion of existing Outlot A, the developer is responsible for improvement of 65th Street to an industrial street standard if the roadway is not already improved. The developer has requested that the City undertake improvement of 65th Street to an urban industrial street along the north line of proposed Lot 1, Block 1 as a public improvement project. The roadway is to be a 46-foot wide asphalt section with concrete curb and gutter within the existing right-of-way and roadway easement and will include a trail along the south side of the street; street lighting; signs; and sewer, water, and storm utilities. The City Engineer will prepare plans and specifications for the public improvement project which will require a bid process. Construction of the 65th Street improvement project will be scheduled to occur in 2027. The developer is responsible for the full cost of the improvements less credits determined by the City Engineer for trunk utility fees. The City Attorney has drafted a Special Assessment Agreement for the public improvement that includes the following provisions: o The assessment is listed as 120 percent of the City Engineer’s cost estimate for the project, which will be reduced to the actual project cost o A 10-year assessment with payments beginning in 2028 o Interest at 5.12 percent in accordance with City policy o Appeal of the Wright County Assessor property valuation up to $30,000,000.00 prohibited during term of the special assessment • Utilities. The existing building has a permanent connection to water utilities in Queens Avenue. The subject property is served by a temporary lift station for collection of sewer to Queens Avenue. Gravity sewer is to be extended to the subject property from the east in the future, but the timing is unknown. Construction of 65th Street will require coordination with the City Engineer installation of utilities for future sewer service needs. The development contract will require that the developer abandon the temporary sewer connection to Queens Avenue at such time as the permanent gravity service is available in accordance with Section 8-1-3 of the City Code. With expansion of Lot 1, Block 1, the developer is required to pay Utility Availability Charges for 17.91 acres of the existing Outlot A being final platted as a buildable lot. The City Engineer has calculated the required fees, which are included in the Development Contract prepared by the City Attorney. The developer has requested that the City assess the Utility Availability Charges. The City Attorney has drafted a Special Assessment Agreement for this purpose, which includes the following provisions: o Deferred assessment not requiring payment until full payment of the 65th Street project assessments. o A 7-year assessment term o Interest at 5.12 percent in accordance with City policy o Appeal of the Wright County Assessor property valuation up to $30,000,000.00 prohibited during term of assessment • Grading. The developer has submitted plans for grading of the subject site, including information required regarding stormwater management and erosion control. All grading, drainage, and erosion control issues are subject to review and approval by the City Engineer. There is no stormwater impact fee for the final plat. • Easements. Drainage and utility easements were dedicated over areas of Lot 1, Block 1 and Outlot A with the Jacobs Plat as required by Section 11-8-12.A of the Subdivision Ordinance. These easements are to be vacated with the replatting of the subject property to ensure an orderly property record. The public hearing to consider the vacation was held concurrent with the preliminary plat review process. The final plat provides for 10-foot wide drainage and utility easements to be dedicated at the perimeter of Lot 1, Block 1 and drainage and utility easements over water utilities, stormwater basins, wetlands, and wetland buffers within both Lot 1, Block 1 and Outlot A. The 65th Street improvement project will generate additional stormwater runoff that must be managed. As the 65th Street project is an obligation of the developer as a condition of plat approval, the developer must also provide necessary area for stormwater basins for treatment and rate control. The storm water basins required for 65th Street can be located within Outlot A, but have not been designed pending approval of the final plat and execution of the development contract and special assessment agreement. A temporary drainage and utility easement over all of Outlot A or a permanent easement over only the required storm water basins will be required by document. All drainage and utility easements are to be subject to review and approval of the City Engineer. • Park Dedication. Expansion of the area of Lot 1, Block 1 triggers park dedication requirements as provided for in Section 10-8-15 of the Subdivision Ordinance. The Parks System Master Plan does not identify acquisition of land from the subject site for park purposes. Park dedication for the proposed plat is to require payment of a cash fee in lieu of land for the 19.71 acres of Outlot A being final platted. • Development Contract. Section 10-10-4.A of the Subdivision Ordinance requires execution of a Development Contract with final plat approval to provide for completion of public improvements, establishment of required securities, and payment of applicable fees related to the subdivision of the subject property. The City Attorney has drafted a Development Contract, which is subject to approval of the City Council. The developer’s requests to undertake 65th Street as a public improvement project with all costs being assessed and assessment of Utility Availability Charges is addressed in the Development Contract. SUPPORTING DOCUMENTS ATTACHED: • Site Location Map • Final Plat • Resolution 2026-56 vacating existing drainage and utility easements • Resolution 2026-57 approving Jacobs Plat Second Addition Final Plat • Resolution 2026-58 approving a Development Contract • Resolution 2026-59 approving a Special Assessment Agreement for 65th Street • Resolution 2026-60 approving a Special Assessment Agreement for Utility Availability Charges POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to adopt: 1. Resolution 2026-56 vacating existing drainage and utility easements within the Jacobs Plat; 2. Resolution 2026-57 approving the Jacobs Plat Second Addition Final Plat, subject to conditions as presented; 3. Resolution 2026-58 approving a Development Contract; 4. Resolution 2026-59 approving a Special Assessment Agreement for 65th Street; and 5. Resolution 2026-60 approving a Special Assessment Agreement for Utility Availability Charges. BUDGET INFORMATION FUNDING: BUDGETED: Fund 701 - Development Escrow N/A ENGINEERING ARCHITECTURE LAND SURVEYING ENVIRONMENTAL SERVICES LANDSCAPE ARCHITECTURE JACOBS PLAT SECOND ADDITION ENGINEERING ARCHITECTURE LAND SURVEYING ENVIRONMENTAL SERVICES LANDSCAPE ARCHITECTURE JACOBS PLAT SECOND ADDITION 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2026-56 VACATION OF EXISTING DRAINAGE AND UTILITY EASEMENTS JACOBS PLAT A RESOLUTION APPROVING VACATION OF EXISTING DRAINAGE AND UTILITY EASEMENTS WITHIN THE PLAT OF JACOBS PLAT. WHEREAS, Endeavor Investments has initiated a request for vacation of existing drainage and utility easements dedicated over Outlots C and D, Otsego Waterfront East 3rd Addition; and WHEREAS, the City Engineer has reviewed request and determined that the existing drainage and utility easements are unnecessary for public purposes upon recording a final plat for Jacobs Plat Section Addition; and WHEREAS, the Planning Commission held a public hearing at their regular meeting on 26 May 2026 to consider the vacation, preceded by required published and mailed legal notice; and WHEREAS, the Planning Commission heard all parties interested therein, closed the public hearing and voted to recommend the City Council approve the vacation request; and WHEREAS, the Request for Council Action dated 27 July 2026 prepared by the City Planner, The Planning Company LLC, is incorporated herein; and WHEREAS, the City Council considered the vacation request at its meeting on 27 July 2026; and WHEREAS, the City Council having considered all information received finds that the existing drainage and utility easements serve no useful public purpose and vacating the existing drainage and utility easements would be in the public interest. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Otsego that: 1. That the existing drainage and utility easements dedicated with the Jacobs Plat are hereby vacated. 2. The vacation shall be effective upon recording a final plat for Otsego Waterfront Commons. 3. The City Council hereby determines that the vacation of said existing right-of-way and drainage and utility easements shall cause no damage to any abutting or nearby property owners and therefore no damages are awarded to any such property owners. 2 ADOPTED by the Otsego City Council this 27th day of July, 2026. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2026-57 APPROVING A FINAL PLAT FOR JACOBS PLAT SECOND ADDITION WHEREAS, Endeavor Investments, LLC (“Developer”) has submitted application for a Final Plat for a subdivision to be known as Jacob Plat Second Addition; and WHEREAS, the legal description of the subject property (“Property”) is attached as Exhibit A; and WHEREAS, the Property is within the East Sewer District and guided for future Industrial land uses by the 2023 Comprehensive Plan; and WHEREAS, the subject property is zoned I-1, Limited Industrial District; and WHEREAS, the proposed subdivision consists of one lot and one outlot; and WHEREAS, a preliminary plat for the proposed subdivision was approved by the City Council on 26 May 2026, subject to conditions; and WHEREAS, applications for final plat approval are processed in accordance with the provisions of Section 10-5-3 of the Subdivision Ordinance; and WHEREAS, the Planning Report dated 23 February 2026 prepared by the City Planner, The Planning Company LLC, is incorporated herein. WHEREAS, the Planning Commission conducted a public hearing at their regular meeting on 2 March 2026 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. WHEREAS, the City Council considered the final plat at its meeting on 27 July 2026. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Otsego that the application for final plat approval is approved based upon the foregoing information and applicable ordinances, subject to the following conditions: 1.The subject property shall be developed in accordance with the site and building plans submitted to the City subject to the stipulations, limitations, and conditions as approved by the City Council. 2.The developer shall be required to provide at their cost for improvement of 65th Street abutting Lot 1, Block 1, of the plat, to an Industrial/Commercial Major Collector Street standard, including street; curb; trail; street lighting; signs; and sewer, water, and storm sewer utilities. 2 3. Final platting of any portion of Outlot A, Jacobs Plat Second Additon as a lot and block or as an expansion of an existing lot shall require that 65th Street be constructed as an Industrial/Commercial Major Collector Street in compliance with Section 10-8-5.A.7 of the Subdivision Ordinance, unless the roadway has already been improved to that standard. 4. All utility plans are subject to review and approval of the City Engineer. 5. The developer shall pay Utility Availability Charges approval based upon the net increase in the area of Lot 1, Block 1, of the plat, from area of the existing Lot 1, Block 1, Jacobs Plat. 6. The owner of Lot 1, Block 1, of the plat, shall be required, at their cost, to abandon the temporary sewer connection to Queens Avenue and connect to permanent sewer utilities at 65th Street at such time as service is available to the lot as determined by the City Engineer. 7. All grading, drainage, and erosion control plans and issues shall be subject to review and approval by the City Engineer. 8. The developer shall pay Park Fees in lieu of land at the time of final plat approval based upon the net increase in the area of Lot 1, Block 1, of the plat, from area of the existing Lot 1, Block 1, Jacobs Plat. 9. All easements shall be subject to review and approval by the City Engineer; the Developer shall dedicate a drainage and utility easement over Outlot A, of the plat, as required for stormwater management purposes. 10. The developer shall execute a Development Contract as drafted by the City Attorney and approved by the City Council. 11. The owner of Lot 1, Block 1, of the plat, shall execute a Special Assessment Agreement for the 65 th Street Public Improvement Project as drafted by the City Attorney and approved by the City Council. 12. The owner of Lot 1, Block 1, of the plat, shall execute a Special Assessment Agreement for the Utility Availability Charges as drafted by the City Attorney and approved by the City Council. (remainder of page blank; signatures follow) 3 ADOPTED by the Otsego City Council this 27th day of July, 2026. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk EXHIBIT A LEGAL DESCRIPTION 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2025-58 APPROVING A DEVELOPMENT CONTRACT FOR JACOBS PLAT SECOND ADDITION WHEREAS, Endeavor Investments XII, LLC (the “owner”) is proposing the final plat of Jacobs Plat Second Addition; and WHEREAS, a final plat for the development was approved by the City Council on 28 July 2026; and WHEREAS, Section 10-10-4.A of the Subdivision Ordinance requires the developer to execute a development contract to provide the City construction and warranty securities for the public and private improvements and to provide the City various remedies if 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 Endeavor Investments XII, 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 blank; signatures follow) 2 ADOPTED by the City Council of the City of Otsego this 27th day of July, 2026. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 1 239392v12 Jacobs Plat Second Addition (reserved for recording information) DEVELOPMENT CONTRACT (Developer Installed Improvements) JACOBS PLAT SECOND ADDITION CONTRACT dated ____________________, 2026, by and between the CITY OF OTSEGO, a Minnesota municipal corporation (“City”), and ENDEAVOR INVESTMENTS XII, LLC, a Delaware limited liability company (the “Developer”). 1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a plat for JACOBS PLAT SECOND ADDITION (referred to in this Contract as the "plat"). The land is situated in the County of Wright, State of Minnesota, and is legally described as: Lot 1, Block 1, and Outlot A, Jacobs Plat, Wright County, Minnesota, according to the recorded plat thereof. [To be platted as Jacobs Plat Second Addition, Wright County, Minnesota]. 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. 2 239392v12 Jacobs Plat Second Addition 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, 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. 3 239392v12 Jacobs Plat Second Addition 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 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 Plan D - Landscape Plan 9. IMPROVEMENTS. The Developer shall install and pay for the following: A. Storm Sewer System B. Concrete Curb and Gutter C. Site Grading, Stormwater Treatment/Infiltration Basins, and Erosion Control D. Setting of Iron Monuments E. Surveying and Staking F. Landscaping 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 4 239392v12 Jacobs Plat Second Addition 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 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 5 239392v12 Jacobs Plat Second Addition 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, 2027. 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 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 6 239392v12 Jacobs Plat Second Addition 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, 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 all other items listed in City Code. The Developer shall provide the City a security in the amount of $53,730.00 to guarantee compliance with the erosion control and grading requirements and the submittal of an as-built certificate of survey. Prior to the release of the required grading and erosion control security, an as-built certificate of survey must be submitted to verify that the final as-built grades and elevations of the specific lot are consistent with the approved grading plan for the development, and amendments thereto as approved by the City Engineer, and that all required property monuments are in place. 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 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 per son who deposited the funds with the City. 16. CLEAN UP. The Developer shall clean dirt and debris from streets that has resulted from construction work by the Developer, 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. 7 239392v12 Jacobs Plat Second Addition 17. OWNERSHIP OF IMPROVEMENTS. Upon completion of the work and construction required by this Contract and final acceptance by the City, the public improvements lying within public easements shall become City property without further notice or action. 18. 65th STREET. The Developer is required to improve 65th Street abutting the plat to an industrial street (Standard Plate No. 114), including a trail on the south side of 65th Street, water, sewer and storm sewer utilities (“65th Street Project”). The Developer requests that the City construct the 65th Street Project pursuant to plans to be prepared by the City and specially assess all costs associated with the portion of 65th Street Project abutting Lot 1, Block 1 of the plat, currently estimated at $1,407,096.71, to Lot 1, Block 1 of the plat. Prior to recording the plat, Developer/Owner and the City must enter into a Public Improvement and Special Assessment Agreement (“65th Street Assessment Agreement”) for the costs associated with 65th Street Project for the portion of the 65th Street abutting Lot 1, Block 1 of the plat. The 65th Street Assessment Agreement must be recorded simultaneously with the Development Contract. To the extent that the total project cost for 65th Street Project abutting the plat exceeds the original amount assessed for the 65th Street Project under the 65th Street Assessment Agreement, the Developer shall reimburse the City for such excess costs for the portion of the plat within the 65th Street Project within thirty (30) days of the receipt of the City’s invoice for the costs. Any violation of the terms and conditions of the Public Improvement and Special Assessment Agreement shall also constitute a breach of this Development Contract. 19. SANITARY SEWER AVAILABILITY CHARGES. The Developer shall pay to the City the required sanitary sewer availability charges. The sanitary sewer availability charge is calculated as follows 17.91 acres x 3.5 REC/acre x $3,171.00 = $198,774.14 The Developer/Owner requests that City specially assess the sanitary sewer availability charge against Lot 1, Block 1 of the plat. The Developer/ Owner and City will simultaneously with the execution of this Contract, enter into a separate Public Improvement and Special Assessment Agreement for sanitary sewer availability charges (“Assessment Agreement”). The Assessment Agreement must be recorded 8 239392v12 Jacobs Plat Second Addition simultaneously with the plat. This Development Contract requires compliance with the Assessment Agreement. Any violation of the terms and conditions of the Assessment Agreement shall also constitute a breach of this Development Contract. 20. WATER AVAILABILITY CHARGES. The Developer shall pay to the City the required water availability charge. The water availability charge is calculated as follows: 17.91 acres x 3.5 REC/acre x $4,596.00 = $288,100.26 The Developer/Owner requests that City specially assess the water availability charge against Lot 1, Block 1, of the plat. The Developer/ Owner and City will simultaneously with the execution of this Contract, enter into the Assessment Agreement for sanitary sewer availability charges. The Assessment Agreement must be recorded simultaneously with the plat. This Development Contract requires compliance with the Assessment Agreement. Any violation of the terms and conditions of the Assessment Agreement shall also constitute a breach of this Development Contract. 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 $43,306.38. The Park Dedication Fee is to be calculated and paid at the time this agreement is executed. The fee is calculated as follows: Lot 1, Block 1 = 17.91 Acres x $2,418.00/Acre = $43,306.38 23. LANDSCAPING. Landscaping (and screening fence) shall be installed in accordance with the approved landscape plan. The Developer shall post a $123,045.00 landscaping security and $221,921.00 security for fence installation at the time of final plat approval to ensure that the landscaping and screening fence is installed in accordance with the approved plan. 9 239392v12 Jacobs Plat Second Addition 24. SPECIAL PROVISIONS. The following special provisions shall apply to plat development: A. Implementation of the conditions listed in City Resolution approving the final plat of Jacobs Plat Second Addition. B. The Subject Property shall be developed in accordance with the site and building plans submitted to the City subject to the stipulations, limitations, and conditions as approved by the City Council in accordance with Section 11-9-4 of the Zoning Ordinance. C. Screening: 1. The landscape plan, including type of plantings, quantities, and sizes shall comply the requirements of Section 11-19-3 of the Zoning Ordinance, subject to review and approval of the Zoning Administrator. 2. The minimum height for coniferous trees to be planted for screening purposes shall be six (6) feet measured to the base of the leader. 3. The Developer shall provide for landscape screening, subject to review and approval of the Zoning Administrator, through a combination of berms, fence and landscaping along 65 th Street and within Outlot A as shown on the submitted plans to a minimum height of fourteen (14) feet. 4. The Developer shall obtain a fence permit prior to installation of any fences within the Subject Property, subject to review and approval of the City Engineer. D. The specifications for the outdoor storage area surface and curb are subject to review and approval of the City Engineer. E. Movement of building materials into, out of, or within the outdoor storage area shall be prohibited between the hours of 10:00 PM and 7:00AM each day. H. All on-site equipment (e.g, forklifts) shall be equipped only with a reverse signal alarm that utilizes an alternative to a single-tone type that complies with Occupational Safety and Health Administration regulations. I. All exterior lighting shall comply with Section 11-16-6 of the Zoning Ordinance, subject to review and approval of the Zoning Administrator. 10 239392v12 Jacobs Plat Second Addition J. Waste or recycling shall be stored within the principal building or any outdoor storage in compliance with Section 11-18-4.C of the Zoning Ordinance, subject to review and approval of the Zoning Administrator. K. All signs on the Subject Property shall comply with Chapter 37 of the Zoning Ordinance and require issuance of a sign permit prior to installation, subject to review and approval of the Zoning Administrator. L. All utility plans are subject to review and approval of the City Engineer. M. All grading, drainage, and erosion control plans and issues shall be subject to review and approval by the City Engineer. N. All easements shall be subject to review and approval by the City Engineer; the Developer shall dedicate a drainage and utility easement over Outlot A, of the plat, as required for stormwater management purposes for the 65th Street improvement, subject to review and approval by the City Engineer. O. 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 $250.00. P. 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. Q. The owner of Lot 1, Block 1, of the plat, shall be required, at their cost, to abandon the temporary sewer connection to Queens Avenue and connect to permanent sewer utilities at 65th Street at such time as service is available to the lot as determined by the City Engineer 25. CONSTRUCTION ADMINISTRATION AND FEES FOR CITY SERVICES. The Developer shall pay a fee for consulting planning and engineering administration following approval of the Plat. City planning and engineering administration will include consultation with Developer and its engineer on status or 11 239392v12 Jacobs Plat Second Addition 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 In the event of prolonged construction or unusual problems, the City will notify the Developer of anticipated cost overruns for planning and engineering administration and observation services. Any amounts for planning and engineering administration not utilized from this escrow fund shall be returned to the Developer when all improvements have been completed and all financial obligations to the City satisfied. 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 Administrative Fee (a flat fee due upon execution of this Agreement), Water and Sewer Access Charges (a flat fee due upon execution of this Agreement), Park 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 planning, 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, payment of special assessments, 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. Except as otherwise provided under this Agreement, the security amount shall be one hundred twenty five percent (125%) of the City Engineer’s 12 239392v12 Jacobs Plat Second Addition estimated cost of all public improvements and/or private improvements required by the Subdivision Ordinance or Zoning Ordinance. 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. 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. This security amount shall be submitted to the City prior to execution of the Contract. All administrative, planning, engineering, 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. 13 239392v12 Jacobs Plat Second Addition 27. SUMMARY OF SECURITY REQUIREMENTS. The amount of the security described above is $498,370.00, calculated as follows: CONSTRUCTION COSTS: A. Grading $53,730.00 B. Landscaping 123,045.00 C. Fence ___$221,921.00 CONSTRUCTION SUB-TOTAL $398,696.00 OTHER COSTS: OTHER COSTS SUB-TOTAL $0.00 TOTAL – SUBTOTAL $398,696.00 IRREVOCABLE LETTER OF CREDIT FOR ABOVE SECURITY (125% OF SUBTOTAL) $498,370.00 TOTAL IRREVOCABLE LETTER OF CREDIT $498,370.00 ESCROW A. City Legal Expenses ($1,500.00 minimum) $1,500.00 B. City Construction Observation ($10,000.00 minimum) 10,000.00 C. GIS Data Entry Fee $250.00 ESCROW TOTAL $11,750.00 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. Park Dedication 43,306.38 C. Sewer Availability Charges (SAC) $198,774.14* D. Water Availability Charges $288,100.26* TOTAL CASH REQUIREMENTS $531,680.78 TOTAL CASH PAID UPON APPROVAL $44,806.38 * To be paid through Assessment Agreement 14 239392v12 Jacobs Plat Second Addition 29. 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 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 planning, 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. 15 239392v12 Jacobs Plat Second Addition 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"), water availability charges (WAC),sewer connection fees, water connection fees, and building permit fees. 30. 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. 31. 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. 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 16 239392v12 Jacobs Plat Second Addition 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 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. F. 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. G. 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. H. 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 17 239392v12 Jacobs Plat Second Addition 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 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 thirty 18 239392v12 Jacobs Plat Second Addition (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. I. 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. J. 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. K. 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. L. 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 19 239392v12 Jacobs Plat Second Addition Minnesota. Following construction, a certification signed by the design engineer shall be filed 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. M. 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. 32. 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: 200 Southdale Center, Suite 190, Minneapolis, MN 55435. 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.] 20 239392v12 Jacobs Plat Second Addition 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 ______________, 2026, 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 21 239392v12 Jacobs Plat Second Addition DEVELOPER: ENDEAVOR INVESTMENTS XII, LLC BY: ___________________________________________ Its STATE OF MINNESOTA ) )ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this ________ day of ______________, 2026, by __________________________________ the ____________________________________ of Endeavor Investments XII, LLC, a Delaware 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 22 239392v12 Jacobs Plat Second Addition MORTGAGE HOLDER CONSENT TO DEVELOPMENT CONTRACT TRADITION CAPITAL BANK, a Minnesota banking corporation, which holds: 1. A Mortgage executed by Endeavor Investments XII, LLC, a Delaware limited liability company, or its assigns, as mortgagor, in favor of Tradition Capital Bank, as mortgagee, in the original principal amount of $28,000,000.00, dated May 18, 2022, and recorded May 19, 2022, in the Office of the Wright County Recorder as Document No. A1507567; And 2. As amended by Amendment to Mortgage and Security Agreement and Fixture Financing Statement and Assignment of Rents and Leases dated February 24, 2025, recorded February 25, 2025, in the Office of the Wright County Recorder as Document No. A1570669; And 3. An Assignment of Leases and Rents executed by Endeavor Investments XII, LLC, a Delaware limited liability company, as assignor, to Tradition Capital Bank, a Minnesota banking corporation assignee, dated May 17, 2022, recorded May 19, 2022, as Document No. A1507568; 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 ____________, 2026. [Remainder of page is intentionally left blank. Signature page follows.] 23 239392v12 Jacobs Plat Second Addition TRADITION CAPITAL BANK By: _________________________ [print name] Its _____________________ [title] STATE OF MINNESOTA ) )ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _____ day of ________________, 2026, by ___________________________, the _____________________________ of Tradition Capital Bank, a Minnesota banking corporation, on behalf of said corporation. ________________________________________ 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 24 239392v12 Jacobs Plat Second Addition [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. 25 239392v12 Jacobs Plat Second Addition 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 is issued subject to the International Standby Practices 1998, International Chamber of Commerce Publication No. 590 (“ISP98”). This letter of Credit shall also be governed by the laws of the State of Minnesota, including the Minnesota Uniform Commercial Code, to the extent not inconsistent with ISP98. We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored upon presentation. 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 ______________________________ 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2026-59 APPROVING A SPECIAL ASSESSEMENT AGREEMENT FOR JACOBS PLAT SECOND ADDITION/65TH STREET IMPROVEMENT PROJECT WHEREAS, Endeavor Investments XII, LLC (the “owner”) is proposing the final plat of Jacobs Plat Second Addition; and WHEREAS, a final plat for the development was approved by the City Council on 27 July 2026; and WHEREAS, the final plat approval includes a condition that the owner complete improvement of 65th Street, including street; curb; trail; sewer, water, and storm sewer utilities, abutting Lot 1, Block 1, of the plat at their cost; WHEREAS, the owner has requested that the City undertake the required improvement of 65th Street as a public improvement project with all costs to be to be assessed to Lot 1, Block 1, of the plat; WHEREAS, the City Attorney has drafted a Special Assessment Agreement that the owner is to be required to execute for assessment of the public improvement project, to provide the City securities that the special assessments for the public improvement project will be paid, and to provide the City various remedies if the owner breaches the terms and conditions of said agreement; and WHEREAS, those obligations are outlined and memorialized in the attached Special Assessment Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Otsego that: 1. The Special Assessment Agreement attached hereto between the City of Otsego and Endeavor Investments XII, 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 Special Assessment Agreement on behalf of the City of Otsego. (remainder of page blank; signatures follow) 2 ADOPTED by the City Council of the City of Otsego this 27th day of July, 2026. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 1 239619v5 PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT THIS PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT ("Agreement") is made this ____ day of _______________, 2026, by and between the CITY OF OTSEGO, a Minnesota municipal corporation (“City”) and ENDEAVOR INVESTMENTS XII, LLC, a Delaware limited liability company, (“Property Owner”). RECITALS A. Owner is the fee owner of real property located in the City of Otsego, Wright County, Minnesota, as legally described on Exhibit A attached hereto and incorporated herein (the “Property”); B. The Owner has requested that the City construct the improvements abutting the Jacobs Plat Second Addition consisting of 65th Street, including a trail on the south side of 65th Street, water, sewer, and storm sewer utilities (the “Public Improvements”) to serve the Property; C. The Owner has requested that one hundred percent (100%) of all costs associated with Public Improvements, including associated legal expenses, engineering administration and staff time, financing (bond issuance), construction observation, surveying, record drawing preparation, permits, and publication fees, together with a contingency of twenty percent (20%) be specially assessed to the Property. NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. PUBLIC IMPROVEMENTS. The City will have plans, specifications and contract documents prepared for the Public Improvements and then solicit bids for the construction of the Public Improvements. If the City receives bids which are acceptable to the City, the City will construct the Public Improvements that specially benefit the Property. 2. SPECIAL ASSESSMENT. The City hereby assesses the Property One Million Six Hundred Eighty-eight Thousand Five Hundred Sixteen and 05/100th Dollars (1,688,516.05) (“Assessment”) for the Public Improvements. The Assessment shall be deemed adopted on the date this Agreement has been signed by all parties. The Assessment shall be spread without deferment over a ten (10) year period in equal annual installments, together with interest of Five and Twelve One Hundredth percent (5.12%) per year on the unpaid balance. The first installment shall be payable with taxes paid in 2028. In the event that the total costs of the Public Improvements are less than the 2 239619v5 amounts assessed by the City for the Public Improvements to the Property (“Deficiency”), then the Assessment to the Property shall be reduced accordingly. 3. WAIVER. Owner, its successors and assigns, waives any and all procedural and substantive objections to the Improvements and special assessment, including but not limited to hearing requirements and any claim that the assessment exceeds the benefit to the Property. Owner waives any appeal rights otherwise available pursuant to Minn. Stat. § 429.081. 4. VALUATION AND TAXES. A. The Owner shall, so long as this Agreement remains in effect, pay all real property taxes with respect to the Property which are payable pursuant to any statutory or contractual duty that shall accrue until title to the Property is vested in another person or party at which time said party shall be liable for all of the real estate tax relating to the Property. B. The Owner shall not seek a reduction of the market value of the Property as determined by the County Assessor below Thirty Million ($30,000,000.00) dollars so long as this Agreement remains in effect. Owner is prohibited under this Agreement from seeking, through the exercise of legal or administrative remedies, a reduction in such market value for property tax purposes. Such action by Owner or will constitute a default under this Agreement. C. The Owner agrees that for as long as this Agreement is in effect: (1) Owner will not seek administrative review or judicial review of the applicability of any tax statute relating to the taxation of the Property determined by any tax official to be applicable to the Property; (2) Owner will not raise the inapplicability of any tax statute as a defense in any proceedings, including delinquent tax proceedings; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (3) Owner will not seek administrative review or judicial review of the constitutionality of any tax statute relating to the taxation of the Property determined by any tax official to be applicable to the Property or raise the unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (4) Owner will not seek any tax deferral or abatement, either presently or prospectively authorized under any other State or federal law, of the taxation the Property during the term of this Agreement. 5. BINDING EFFECT; RECORDING. This Agreement shall be binding upon Owner and Owner's successors and assigns in title to the Property. This Agreement shall run with the land and may be recorded against the title to the Property. 3 239619v5 CITY OF OTSEGO BY: ___________________________ Jessica L. Stockamp, Mayor 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 L. Stockamp and 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 239619v5 OWNER: ENDEAVOR INVESTMENTS XII, LLC BY: ______________________________ Its STATE OF _____________ ) )ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ________ day of _________________, 2026, by _____________________________, the ____________________ of Endeavor Investments XII, LLC, a Delaware limited liability company, 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 DSK/smt 239619v5 EXHIBIT A Lot 1, Block 1, Jacobs Plat Second Addition, Wright County, Minnesota, according to the recorded plat thereof. 239619v5 MORTGAGE HOLDER CONSENT TO PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT TRADITION CAPITAL BANK, a Minnesota banking corporation, which holds: 1. A Mortgage executed by Endeavor Investments XII, LLC, a Delaware limited liability company, or its assigns, as mortgagor, in favor of Tradition Capital Bank, as mortgagee, in the original principal amount of $28,000,000.00, dated May 18, 2022, and recorded May 19, 2022, in the Office of the Wright County Recorder as Document No. A1507567; And 2. As amended by Amendment to Mortgage and Security Agreement and Fixture Financing Statement and Assignment of Rents and Leases dated February 24, 2025, recorded February 25, 2025, in the Office of the Wright County Recorder as Document No. A1570669; And 3. An Assignment of Leases and Rents executed by Endeavor Investments XII, LLC, a Delaware limited liability company, as assignor, to Tradition Capital Bank, a Minnesota banking corporation assignee, dated May 17, 2022, recorded May 19, 2022, as Document No. A1507568; on the subject property, the development of which is governed by the foregoing Public Improvement and Special Assessment Agreement, agrees that the Development Contract shall remain in full force and effect even if it forecloses on its mortgage. Dated this _____ day of ____________, 2026. [Remainder of page is intentionally left blank. Signature page follows.] 239619v5 TRADITION CAPITAL BANK By: _________________________ [print name] Its _____________________ [title] STATE OF MINNESOTA ) )ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _____ day of ________________, 2026, by ___________________________, the _____________________________ of Tradition Capital Bank, a Minnesota banking corporation, on behalf of said corporation. ________________________________________ 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 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2026-60 APPROVING A SPECIAL ASSESSEMENT AGREEMENT FOR JACOBS PLAT SECOND ADDITION/UTILITY AVAILABILITY CHARGES WHEREAS, Endeavor Investments XII, LLC (the “owner”) is proposing the final plat of Jacobs Plat Second Addition; and WHEREAS, a final plat for the development was approved by the City Council on 27 July 2026; and WHEREAS, the final plat approval includes a condition that the owner pay Sewer Availability Charges and Water Availability Charges for Lot 1, Block 1, of the plat; WHEREAS, the owner has requested that the City assess the Sewer Availability Charges and Water Availability Charges required to be paid for Lot 1, Block 1, of the plat; WHEREAS, the City Attorney has drafted a Special Assessment Agreement that the owner shall be required to execute for assessment of the Sewer Availability Charges and Water Availability Charges required to be paid for Lot 1, Block 1, of the plat and to provide the City various remedies if the owner breaches the terms and conditions of said agreement; and WHEREAS, those obligations are outlined and memorialized in the attached Special Assessment Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Otsego that: 1. The Special Assessment Agreement attached hereto between the City of Otsego and Endeavor Investments XII, 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 Special Assessment Agreement on behalf of the City of Otsego. (remainder of page blank; signatures follow) 2 ADOPTED by the City Council of the City of Otsego this 27th day of July, 2026. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 1 239424v8 SPECIAL ASSESSMENT AGREEMENT THIS SPECIAL ASSESSMENT AGREEMENT made this ___ day of _______________, 2026, by and between the CITY OF OTSEGO, a Minnesota municipal corporation (“City”) and ENDEAVOR INVESTMENTS XII, LLC, a Delaware limited liability company, (“Owner”). RECITALS A. Owner is the fee owner of real property located in the City of Otsego, Wright County, Minnesota, as legally described on Exhibit A attached hereto and incorporated herein (the “Property”); B. The Owner entered into a Development Contract with the City for improvement of the Property which will be recorded in conjunction with this Public Improvement and Special Assessment Agreement; C. The Development Contract requires the Owner to pay Water Availability Charges (“WAC”) in the total amount of $288,100.26; D. The Development Contract requires the Owner to pay Sewer Availability Charges (“SAC”) in the total amount of $198,774.14; E. The Owner has requested that fees in the total amount of $486,874.40 be assessed against the Property, comprised of the following elements: Availability – Water (WAC) $288,100.26 Availability – Sewer (SAC) $198,774.14 Total $486,874.40 (“Assessment”); F. The Owner requests that the City assess one hundred percent (100%) of the WAC and SAC fees against the Property. NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. RECITALS INCORPORATED. The above recitals are incorporated into and made a part of this Agreement. 2 239424v8 2. SPECIAL ASSESSMENT. The City hereby assesses the amount of Four Hundred Eighty-Six Thousand Eight Hundred Seventy-Four and 40/100 Dollars ($486,874.40) against the Property together with interest at the rate of Five and Twelve One Hundredth percent (5.12%) per annum over a period of seven (7) years. The special assessment shall be deemed adopted on the date this Agreement has been signed by all parties. 3. DEFERRAL OF ASSESSMENT. The Assessment shall be deferred with interest accruing, until November 30, 2038 at which time the deferred assessment shall become payable in equal annual installments extending over a seven (7) year period, together with interest of Five and Twelve One Hundredth percent (5.12%) per year on the unpaid balance. 4. VALUATION AND TAXES. A. The Owner shall, so long as this Agreement remains in effect, pay all real property taxes with respect to the Property which are payable pursuant to any statutory or contractual duty that shall accrue until title to the Property is vested in another person or party at which time said party shall be liable for all of the real estate tax relating to the Property. B. The Owner shall not seek a reduction of the market value of the Property as determined by the County Assessor below Thirty Million Dollars ($30,000,000.00) so long as this Agreement remains in effect. Owner is prohibited under this Agreement from seeking, through the exercise of legal or administrative remedies, a reduction in such market value for property tax purposes. Such action by Owner or will constitute a default under this Agreement. C. The Owner agrees that for as long as this Agreement is in effect: (1) Owner will not seek administrative review or judicial review of the applicability of any tax statute relating to the taxation of the Property determined by any tax official to be applicable to the Property; (2) Owner will not raise the inapplicability of any tax statute as a defense in any proceedings, including delinquent tax proceedings; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (3) Owner will not seek administrative review or judicial review of the constitutionality of any tax statute relating to the taxation of the Property determined by any tax official to be applicable to the Property or raise the unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (4) Owner will not seek any tax deferral or abatement, either presently or prospectively authorized under any other State or federal law, of the taxation the Property during the term of this Agreement. 5. WAIVER. Owner, its successors and assigns, waives any and all procedural and substantive objections to the Public Improvements and special assessment, including but not limited 3 239424v8 to hearing requirements and any claim that the assessment exceeds the benefit to the Property. Owner waives any appeal rights otherwise available pursuant to Minn. Stat. § 429.081. 6. BINDING EFFECT; RECORDING. This Agreement shall be binding upon Owner and its successors and assigns. This Agreement shall run with the land and may be recorded against the title to the Property. [Remainder of page is intentionally left blank. Signature pages to follow.] 4 239424v8 CITY OF OTSEGO BY: ___________________________ Jessica L. Stockamp, Mayor 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 L. Stockamp and 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 5 239424v8 OWNER: ENDEAVOR INVESTMENTS XII, LLC BY: ______________________________ Its STATE OF _____________ ) )ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ________ day of _________________, 2026, by _____________________________, the ____________________ of Endeavor Investments XII, LLC, a Delaware limited liability company, 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 DSK/smt 6 239424v8 EXHIBIT A Lot 1, Block 1, Jacobs Plat Second Addition, Wright County, Minnesota, according to the recorded plat thereof. 7 239424v8 MORTGAGE HOLDER CONSENT TO SPECIAL ASSESSMENT AGREEMENT TRADITION CAPITAL BANK, a Minnesota banking corporation, which holds: 1. A Mortgage executed by Endeavor Investments XII, LLC, a Delaware limited liability company, or its assigns, as mortgagor, in favor of Tradition Capital Bank, as mortgagee, in the original principal amount of $28,000,000.00, dated May 18, 2022, and recorded May 19, 2022, in the Office of the Wright County Recorder as Document No. A1507567; And 2. As amended by Amendment to Mortgage and Security Agreement and Fixture Financing Statement and Assignment of Rents and Leases dated February 24, 2025, recorded February 25, 2025, in the Office of the Wright County Recorder as Document No. A1570669; And 3. An Assignment of Leases and Rents executed by Endeavor Investments XII, LLC, a Delaware limited liability company, as assignor, to Tradition Capital Bank, a Minnesota banking corporation assignee, dated May 17, 2022, recorded May 19, 2022, as Document No. A1507568; on the subject property, the development of which is governed by the foregoing Special Assessment Agreement, agrees that the Development Contract shall remain in full force and effect even if it forecloses on its mortgage. Dated this _____ day of ____________, 2026. [Remainder of page is intentionally left blank. Signature page follows.] 8 239424v8 TRADITION CAPITAL BANK By: _________________________ [print name] Its _____________________ [title] STATE OF MINNESOTA ) )ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _____ day of ________________, 2026, by ___________________________, the _____________________________ of Tradition Capital Bank, a Minnesota banking corporation, on behalf of said corporation. ________________________________________ 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