RES 2026-59 Approving a Special Assessment Agreement for Jacobs Plan Second Addition 65th Street Improvement ProjectCITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2026-59
APPROVING A SPECIAL ASSESSEMENT AGREEMENT FOR
JACOBS PLAT SECOND ADDITION/65T" 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)
ADOPTED by the City Council of the City of Otsego this 27th day of July, 2026.
MOTION BY: Dunlap
SECONDED BY: Tanner
INFAVOR: Stockamp, Dunlap, Goede, Lund, and Tanner
OPPOSED: none
CITY OF OTSEGO
Jessica L. Stocl<amp, Ma or
ATTEST:
(-iU-A , �-- - -IL
Audra Etzel, City Clerl<
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 651h 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 ASSESSME, NT. 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
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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.
2
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CITY OF OTSEGO
I:'
STATE OF MINNESOTA )
ss.
COUNTY OF WRIGHT )
Jessica L. Stockamp, Mayor
Audra Etzel, City Cleric
The foregoing instrument was acknowledged before me this day of
, 2026, by Jessica L. Stockamp and Audra Etzcl, the Mayor and City Clerk
of the City of Otsego, a Minnesota municipal corporation, on behalf of the corporation and
pursuant to the authority granted by its City Council.
NOTARY PUBLIC
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OWNER:
ENDEAVOR INVESTMENTS XII, LLC
Its
STATE OF )
)ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this
2026, by , the
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
day of ,
of Endeavor Investments
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EXHIBIT A
Lot 1, Block 1, Jacobs Plat Second Addition, Wright County, Minnesota, according to the
recorded plat thereof.
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MORTGAGE HOLDER CONSENT
TO
PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT
TRADITION CAPITAL BANK, a Minnesota banking corporation, which holds:
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;
we
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;
n
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.]
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TRADITION CAPITAL BANK
M.
STATE OF MINNESOTA )
)ss.
COUNTY OF )
Its
The foregoing instrument was acknowledged before me this
by , the
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
[print name]
[title]
day of , 2026,
of Tradition Capital Bank, a
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