RES 2026-60 Approving a Special Assessment Agreement for Jacobs Plat Second Addition Utility Availability ChargesCITY 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)
ADOPTED by the City Council of the City of Otsego this 27th day of July, 2026.
MOTION BY: Dunlap
SECONDED BY: Tanner
IN FAVOR: Stockamp, Dunlap, Goede, Lund, and Tanner
OPPOSED: none
CITY OF OTSEGO
Jessica L. Stockamp, May r
ATTEST:
a
Audra Etzel, ity Clerk
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
("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.
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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
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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.
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Signature pages to follow. ]
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CITY OF OTSEGO
Jessica L. Stockamp, Mayor
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 Cleric
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 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
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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
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;
goo
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;
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 ofpage is intentionally left blank.
Signature page follows.]
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STATE OF MINNESOTA
)ss.
COUNTY OF
The foregoing instrument
2026,
on behalf of said corporation.
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
TRADITION CAPITAL BANK
Its
[print name]
[title]
was acknowledged before me this day of
by , the
of Tradition Capital Bank, a Minnesota banking corporation,
NOTARY PUBLIC
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