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Item 3.14 MRD Christ Lutheran 2nd Addition Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 12 October 2026 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty City Engineer Wagner City Attorney Kendall 3.14 – MRD Christ Lutheran 2nd Add. STRATEGIC VISION MEETS: THE CITY OF OTSEGO: X 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 a final plat and development contract. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes No BACKGROUND/JUSTIFICATION: Trade Level Construction, on behalf of Christ Church of Otsego, received preliminary plat approval for subdivision of Lot 1, Block 1, MRD Christ Lutheran Addition into two lots on 24 August 2026. The subject property is located east of Christ Church within the southwest quadrant of TH 101 and 90th Street (CSAH 39). Lot 1, Block 1 is occupied by Christ Church. Lot 2, Block 1 of the final plat is proposed to be developed as a 35,000 square foot building for Revolution Gym. The subdivider is now requesting approval of a final plat. • Comprehensive Plan. The subject property is planned for commercial uses as part of Otsego’s primary area for commercial development surrounding the TH 101 and CSAH 39 interchange. The final plat provides a lot for development of a building to be owned and occupied by Revolution Gym, an indoor gymnastics program business, and leasable space. The proposed building and occupancy by Revolution Gym will provides a recreation service for Otsego and surrounding communities and can be expected to enhance market support for businesses in the surrounding area through participant and employee activity. The proposed development of the subject property is consistent with the goals, policies, and plans of the 2023 Comprehensive Plan. • Zoning. Lot 1, Block 1 of the final plat is zoned INS, Institutional District reflecting current ownership and use by Christ Church. Lot 2, Block 1 is zoned B-1, Retail Business District. Indoor recreation uses such as Revolution Gym are allowed within the B-1 District as a permitted use. • Surrounding Area. The table below summarizes the existing and planned land uses in the area surrounding the subject property. The proposed development of the subject property will be consistent with, and complementary to, existing and planned land uses in the area. Direction Land Use Plan Zoning Map Existing Use North Commercial PUD District Otsego Waterfront East -- -- TH 101 South Commercial INS District PUD District Undeveloped Great River Centre of Otsego West Commercial INS District B-1 District Christ Church Bank of Elk River/Starbucks • Subdivision. The subject property exists as Lot 1, Block 1, MRD Christ Lutheran Addition, which includes the Christ Church religious facility building and off-street parking. For development of Revolution Gym, the existing property is proposed to be subdivided into two lots with Christ Church occupying the Lot 1, Block 1 and Revolution Gym located upon Lot 2, Block 1. The final plat is consistent with the approved preliminary plat • Lot Requirements. Section 11-75-7 of the Zoning Ordinance establishes the minimum lot requirements for the B-1 District are shown below. The final plat complies with the minimum lot requirements of the B-1 District. Min. Lot Area Min. Lot Width Required 1.0ac. 200ft. Lot 1 5.51ac. 380ft. Lot 2 4.41ac. 275ft. • Right-of-Way. The subject property abuts TH 101, 90th Street (CSAH 39), and 88th Street. The preliminary plat is subject to review by the Minnesota Department of Transportation and Wright County as it abuts State and County right-of-way, respectively. Right-of-way for 88th Street has been dedicated with the plats of MRD Christ Lutheran Addition and Great River Centre of Otsego. No additional right of way dedication for 88th Street is required. • Streets. The subject site abuts 90th Street (CSAH 39) and 88th Street. The Transportation Plan designates 90th Street (CSAH 39) as a Minor Arterial street and no new direct lot access from Lot 2, Block 1 is allowed. No street improvements are proposed with the final plat. • Sidewalks/Trails. There is an existing trail abutting the south line of the subject property along 88th Street, which connects to Quaday Avenue and 87th Street to the south and Parrish Avenue (CSAH 42) to the east. There is no sidewalk or trail along the north line of the subject site abutting 90th Street and none is planned to avoid pedestrian conflicts at the TH 101 and CSAH 39 interchange. • Utilities. The subject property is within the East Sewer District. The Christ Church building is connected to City water and sewer utilities. A utility plan has been submitted for extension of service for Lot 2, Block 1 for the proposed building. All utility plans are to be subject to review and approval by the City Engineer. As an existing developed property, Utility Availability Charges for the plat have been satisfied. Utility Connection Fees for Lot 2, Block 1 will be required to be paid at the time a building permit is issued. • Stormwater. A grading plan for Lot 2, Block 1 has been approved as part of the site and building plans for that lot. A grading agreement has been drafted to allow the developer to begin site work once the sale of the property is closed. The Stormwater Impact Fee for the North Mississippi Watershed District was established after the subject property was initially platted. Further development of the subject property benefits from the regional stormwater system. A Stormwater Impact Fee for the area of Lot 2, Block 1 is included in the Development Contract. • Easements. The existing drainage and utility easements overlaying the subject property are to be vacated. The final plat provides for dedication of drainage and utility easements over Lots 1 and 2, Block 1 as required by Section 10-8-15 of the Subdivision Ordinance. All drainage and utility easements are to be subject to review and approval by the City Engineer. • Park Dedication. The proposed preliminary plat is a resubdivision of an existing platted lot. The plat of MRD Christ Lutheran Addition has already satisfied park dedication requirements established by Section 10-8-18 of the Subdivision Ordinance at the time of final plat approval. No additional park dedication is required for the proposed preliminary plat. • Development Contact. A Development Contract is required with final plat approval by Section 10-10-4.A of the Subdivision Ordinance to provide for the platting of the subject property and payment of applicable fees. The City Attorney has drafted a Development Contract that is subject to approval by resolution of the City Council. A Site Improvement Performance Agreement for Lot 2, Block 1 will be brought to a future City Council meeting for consideration. SUPPORTING DOCUMENTS ATTACHED: • Site Location Map • Final Plat • Resolution 2026-92 vacating existing drainage and utility easements • Resolution 2026-93 approving a final plat • Resolution 2026-94 approving a development contract • Development Contract POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to adopt Resolution 2026-92 vacating existing drainage and utility easements; adopt Resolution 2026-93 approving the MRD Christ Lutheran 2nd Addition final plat, subject to conditions as presented; and adopt Resolution 2026-94 approving a Development Contract. BUDGET INFORMATION FUNDING: BUDGETED: Fund 701 – Development Escrows N/A MRD Christ Lutheran 2nd Addition Property Location Map 525 ft Overview Legend Highways Interstate State Highway US Highway Roads City/Township Limits c t Parcels MRD CHRIST LUTHERAN 2ND ADDITION Meyer-Rohlin PRELIMINARY DRAFT FOR CLIENT REVIEW 04/21/2026 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2026-92 VACATING EXISTING DRAINAGE AND UTILITY EASEMENTS WHEREAS, Trade Level Construction, on behalf of Christ Church of Otsego, has initiated vacation of existing drainage and utility easements dedicated over the property (“Property”) described by Exhibit A. WHEREAS, the City Engineer has reviewed the request and determined that the existing drainage and utility easements are unnecessary for public purposes upon recording a final plat for subdivision of the Property; and WHEREAS, the Planning Commission held a public hearing at their regular meeting on 17 August 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 12 October 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 12 October 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 that the City Council of the City of Otsego hereby orders: 1. That the existing drainage and utility easements dedicated over the Property described herein is hereby vacated. 2. The vacation shall be effective upon recording a final plat of the Property described herein. 3. The City Council hereby determines that the vacation of said 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. (Remainder of page blank signatures follow) 2 ADOPTED by the Otsego City Council this 12th day of October, 2026. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk EXHIBIT A LEGAL DESCRIPTION Lot 1, Block 1 MRD Christ Lutheran Addition, Wright County, Minnesota. 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2026-93 ADOPTING FINDINGS OF FACT AND APPROVING MRD CHRIST LUTHERAN 2ND ADDITION FINAL PLAT WHEREAS, Trade Level Construction (“Developer”) has submitted application for final plat approval of the MRD Christ Lutheran 2nd Addition Final Plat; 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 Commercial land uses by the 2023 Comprehensive Plan; and WHEREAS, Lot 1, Block 1 of the proposed final plat is zoned INS, Institutional District; and WHEREAS, Lot 2, Block 1 of the proposed final plat is zoned B-1, Retail Business District; and WHEREAS, the Developer is requesting approval of a Final Plat to be known as MRD Christ Lutheran 2nd Addition (“Plat”) for subdivision the Property into two lots; and WHEREAS, an application for preliminary plat is processed in accordance with the provisions of Section 10-5-3 of the Subdivision Ordinance; and WHEREAS, the Request for Council Action dated 12 October 2026 prepared by the City Planner, The Planning Company LLC, is incorporated herein; and WHEREAS, the City Council considered the applications at its meeting on 12 October 2026. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA THAT the final plat of MRD Christ Lutheran 2nd Addition is approved based upon the foregoing information and applicable ordinances, subject to the following conditions: 1. The developer shall execute a Development Contract as drafted by the City Attorney and subject to approval of the City Council. 2. All easements shall be subject to review and approval by the City Engineer. 3. The developer shall pay Utility Connection Charges for the principal building on Lot 2, Block 1 at the time a building permit is issued in accordance with the provisions of the City Code. [Remainder of page blank; signatures follow] 2 ADOPTED by the Otsego City Council this 12th day of October, 2026. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk EXHIBIT A LEGAL DESCRIPTION Lot 1, Block 1, MRD Christ Lutheran Addition, Wright County, Minnesota. 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2026-94 APPROVING A DEVELOPMENT CONTRACT FOR MRD CHRIST LUTHERAN 2ND ADDITION WHEREAS, Christ Church of Otsego is proposing subdivision of MRD Christ Lutheran 2nd Addition; and WHEREAS, a final plat for the development was approved on 12 October 2026 by the City Council; and WHEREAS, Section 10-10-4.A of the Subdivision Ordinance requires the developer to enter into a development contract to provide the City construction and warranty securities for the public and private improvements and to provide the City various remedies in the event that the developer breaches the terms and conditions of said agreement; and WHEREAS, those obligations are outlined and memorialized in the attached Development Contract. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA: 1. The Development Contract attached hereto between the City of Otsego and Christ Church of Otsego 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 Otsego City Council this 12th day of October, 2026. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 1 240373v1 MRD Christ Lutheran 2nd Addition (reserved for recording information) DEVELOPMENT CONTRACT (Developer Installed Improvements) MRD CHRIST LUTHERAN 2ND ADDITION CONTRACT dated ____________________, 2026, by and between the CITY OF OTSEGO, a Minnesota municipal corporation (“City”), and CHRIST CHURCH OF OTSEGO, a Minnesota non-profit corporation (the “Developer”). 1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a plat for MRD CHRIST LUTHERAN 2ND 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, MRD CHRIST LUTHERAN ADDITION, according to the recorded plat thereof, Wright County, Minnesota. Except therefrom Parcel 316A as shown on Minnesota Department of Transportation Right of Way Plat No. 86-113. [To be platted as MRD CHRIST LUTHERAN 2ND 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 240373v1 MRD Christ Lutheran 2nd 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 240373v1 MRD Christ Lutheran 2nd 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 - Street Lighting Plan Plan E - Landscape Plan 9. IMPROVEMENTS. The Developer shall install and pay for the following: A. Sanitary Sewer System B. Water System C. Storm Sewer System D. Streets E. Concrete Curb and Gutter F. Street Lights G. Site Grading, Stormwater Treatment/Infiltration Basins, and Erosion Control H. Underground Utilities I. Setting of Iron Monuments J. Surveying and Staking 4 240373v1 MRD Christ Lutheran 2nd Addition K. Sidewalks and Trails L. Retaining Walls M. 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 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. 5 240373v1 MRD Christ Lutheran 2nd Addition 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 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. STREETS. The Developer agrees to maintain the streets within the Plat until the base course bituminous surfacing has been accepted by the City. Should the City be required to grade the street prior to paving, the cost of such grading shall be paid by the Developer and draw from the Developer’s letter of credit. Should the City determine that snowplowing is necessary prior to final wear course installation, the City will plow the street(s) prior to acceptance of the streets. The Developer shall hold harmless and indemnify the City from any and all liability related to snow plowing and shall pay all costs associated with snow plowing. Any plowing undertaken by the City shall not constitute City acceptance or evidence of acceptance of the street(s) in question. The final wear course shall not be constructed until at least one 6 240373v1 MRD Christ Lutheran 2nd Addition construction season after the base construction is completed and shall be delayed one more construction season if at least seventy five percent (75%) build out is not achieved. However, the final wear course shall not be delayed for a period longer than two years after the base course is paved, regardless of build out; in which case, the Developer shall provide an escrow for fog sealing the streets in the event the final wear course is placed prior to seventy five percent (75%) build out. Upon final completion of streets and acceptance by the City as a City street rather than a private drive, the Developer shall guarantee to the City for a period of two (2) years the streets have been constructed to City standards. The warranty period shall not commence until such time as street construction is completed and the streets are accepted as City streets by the City. The two (2) year warranty period set forth above commences upon the date on which the City accepts the streets by resolution. 14. 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. 15. 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, 7 240373v1 MRD Christ Lutheran 2nd Addition utility or street construction will be allowed and no building permits will be issued unless the plat is in full compliance with the approved erosion control plan. 16. GRADING. The plat shall be graded in accordance with the approved grading development and erosion control plan, Plan “B”. The plan shall conform to City of Otsego specifications. Within thirty (30) days after completion of the grading and before the City approves individual building permits (except three (3) model home permits on lots acceptable to the Building Official), the Developer shall provide the City with an “as-constructed” grading plan certified by a registered land surveyor or engineer that all storm water treatment/infiltration basins and swales, have been constructed on public easements or land owned by the City. The “as-constructed” plan shall include field verified elevations of the following: a) cross sections of storm water treatment/infiltration basins; b) location and elevations along all swales, wetlands, wetland mitigation areas if any, locations and dimensions of borrow areas/stockpiles, and installed “conservation area” posts; and c) lot corner elevations and house pads, and all other items listed in City Code. The City will withhold issuance of building permits until the approved certified grading plan is on file with the City and all erosion control measures are in place as determined by the City Engineer. The Developer certifies to the City that all lots with house footings placed on fill have been monitored and constructed to meet or exceed FHA/HUD 79G specifications. The soils observation and testing report, including referenced development phases and lot descriptions, shall be submitted to the Building Official for review prior to the issuance of building permits. Before a building permit is issued, a cash escrow shall be furnished to the City in accordance with the City’s current fee schedule to guarantee compliance with the erosion control and grading requirements and the submittal of an as-built certificate of survey. Prior to the release of the required individual lot grading and erosion control security that is submitted with the building permit, an as-built certificate of survey for single family lots must be submitted to verify that the final as-built grades and elevations of the specific lot and all building setbacks 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, 8 240373v1 MRD Christ Lutheran 2nd Addition 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 person who deposited the funds with the City. A certified as-built building pad survey must be submitted and approved for commercial, industrial or institutional developments prior to issuance of a building permit. 17. CLEAN UP. The Developer shall clean dirt and debris from streets that has resulted from construction work by the Developer, home builders, subcontractors, their agents or assigns. Prior to any construction in the plat, the Developer shall identify in writing a responsible party and schedule for erosion control, street cleaning, and street sweeping. 18. OWNERSHIP OF IMPROVEMENTS. Upon completion of the work and construction required by this Contract and final acceptance by the City, the improvements lying within public easements shall become City property without further notice or action. 19. STORM SEWER. The Developer shall pay a cash fee in the amount of $39,209.93 for the Trunk Storm Water Management Impact Fee for the North Mississippi Watershed due upon final Plat Approval, calculated as follows: 4.43 Gross Acres X $8,851/Gross Acre = $39,209.93 20. SANITARY SEWER. The Sewer Availability Charge (“SAC”) required by the City Code for the plat as satisfied with approval of the MRD Christ Lutheran Addition plat. 21. WATERMAIN. The Water Availability Charge (“WAC”) required by the City Code for the plat was satisfied with approval of the MRD CHRIST LUTHERAN ADDITION plat. 22. SEWER CONNECTION CHARGE AND WATER CONNECTION CHARGE. The Developer shall pay to the City required water and sewer connection charges. The water and sewer connection charges shall be collected per Section 8-1-6-C of City Code for all uses and must be paid prior to the issuance of a building permit based on the fee schedule in effect at the time of application for the building permit. 9 240373v1 MRD Christ Lutheran 2nd Addition 23. 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. 24. PARK DEDICATION. Park dedication requirements for the plat required by the City Code were satisfied with approval of the MRD CHRIST LUTHERAN ADDITION plat. 25. SPECIAL PROVISIONS. The following special provisions shall apply to plat development: A. Implementation of the conditions listed in the Findings of Fact approved by the City Council on October 12, 2026. B. All easements shall be subject to review and approval by the City Engineer. C. The Developer shall pay Utility Connection Charges for the principal building on Lot 2, Block 1, at the time a building permit is issued in accordance with the provisions of City Code. D. Prior to City Council approval of the final plat, the Developer shall furnish a boundary survey of the proposed property to be platted with all property corner monumentation in place and marked with lath and a flag. Any encroachments on or adjacent to the property shall be noted on the survey. The Developer's land surveyor certifies that all irons have been set following site grading and utility and street construction. In addition, the certificate of survey must also include a certification that all irons for a specific lot have either been found or set prior to the issuance of a building permit for that lot. E. 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. 26. CONSTRUCTION ADMINISTRATION AND FEES FOR CITY SERVICES. The Developer shall pay a fee for consulting engineering administration following approval of the Plat. City engineering administration will include consultation with Developer and its engineer on status or problems regarding the 10 240373v1 MRD Christ Lutheran 2nd Addition project, monitoring during the warranty period, general administration and processing of requests for reduction in security. Fees for this service shall be the actual amount billed for those services, which are estimated to be three percent (3%) of the estimated construction cost of the Improvements to be inspected, assuming normal construction and project scheduling. The Developer shall pay for construction observation performed by the City Engineer. Construction observation shall include part or full time observation, as determined by the City Engineer, of proposed street, sanitary sewer, water and storm drainage construction and will be billed on hourly rates actually required for said inspection, which are estimated to be five percent (5%) of the estimated construction cost of the Improvements to be inspected. In the event of prolonged construction or unusual problems, the City will notify the Developer of anticipated cost overruns for engineering administration and observation services. Any amounts for engineering administration not utilized from this escrow fund shall be returned to the Developer when all improvements have been completed, all financial obligations to the City satisfied, and the required "as constructed" plans have been received by the City. The escrow and fee account shall also include estimated fees for Legal expenses actually incurred (with any excess funds, if any, returned to Developer as indicated in this Contract), City Administrative Fee (a flat fee due upon execution of this Agreement), Trunk Water and Sewer Access Fees (a flat fee due upon execution of this Agreement), Park and Trail Dedication Fees (a flat fee due upon execution of this Agreement), and shall be as stated by the Financial Summary. 11 240373v1 MRD Christ Lutheran 2nd Addition This escrow amount shall be submitted to the City prior to the City executing this Agreement. All administrative and legal fees related to plan review, drafting of this Agreement and any other necessary items shall be paid to the City prior to execution of this Agreement. Any amounts for legal and engineering not utilized from this escrow fund shall be returned to the Developer when all improvements have been completed, all financial obligations to the City satisfied, and the required "as constructed" plans have been received by the City. All other amounts listed as flat fees are non-refundable and available immediately for City use when posted. ESCROW A. City Legal Expenses ($1,500.00 Minimum) $1,500.00 ESCROW TOTAL $1,500.00 This breakdown is not a restriction on the use of the security. 27. SUMMARY OF CASH REQUIREMENTS. The following is a summary of the cash requirements under this Contract which must be furnished to the City prior to the City Council signing the final plat: A. City Administrative ($1,500.00 Minimum) $1,500.00 B. Trunk Sewer Access Fee (SAC) 49,166.36 C. Trunk Water (WAC) 71,260.98 D. Trunk Stormwater Management Impact Fee 39,209.93 TOTAL CASH REQUIREMENTS $161,137.27 28. RESPONSIBILITY FOR COSTS. A. Except as otherwise specified herein, the Developer shall pay all costs incurred by it or the City in conjunction with the development of the plat, including but not limited to Soil and Water Conservation District charges, legal, planning, engineering and construction observation inspection expenses incurred in connection with approval and acceptance of the plat, the preparation of this Contract, review of construction plans and documents, and all costs and expenses incurred by the City in monitoring and inspecting development of the plat. 12 240373v1 MRD Christ Lutheran 2nd Addition B. The Developer shall hold the City and its officers, employees, and agents harmless from claims made by itself and third parties for damages sustained or costs incurred resulting from plat approval and development. The Developer shall indemnify the City and its officers, employees, and agents for all costs, damages, or expenses which the City may pay or incur in consequence of such claims, including attorneys' fees. C. The Developer shall reimburse the City for costs incurred in the enforcement of this Contract, including engineering and attorneys' fees. D. The Developer shall pay, or cause to be paid when due, and in any event before any penalty is attached, all special assessments referred to in this Contract. This is a personal obligation of the Developer and shall continue in full force and effect even if the Developer sells one or more lots, the entire plat, or any part of it. E. The Developer shall pay in full all bills submitted to it by the City for obligations incurred under this Contract within thirty (30) days after receipt. If the bills are not paid on time, the City may halt plat development and construction until the bills are paid in full. Bills not paid within thirty (30) days shall accrue interest at the rate of eighteen percent (18%) per year. Additionally, the Developer shall pay in full all bills submitted to it by the City prior to any reductions in the security for the development. F. In addition to the charges and special assessments referred to herein, other charges and special assessments may be imposed such as but not limited to sewer availability charges ("SAC"), City water connection charges, City sewer connection charges, and building permit fees. 29. 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 13 240373v1 MRD Christ Lutheran 2nd Addition 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. 30. MISCELLANEOUS. A. The Developer represents to the City that the plat complies with all city, county, state, and federal laws and regulations, including but not limited to: subdivision ordinances, zoning ordinances, and environmental regulations. If the City determines that the plat does not comply, the City may, at its option, refuse to allow construction or development work in the plat until the Developer does comply. Upon the City's demand, the Developer shall cease work until there is compliance. B. Third parties shall have no recourse against the City under this Contract. C. Breach of the terms of this Contract by the Developer shall be grounds for denial of building permits, including lots sold to third parties. D. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this Contract is for any reason held invalid, such decision shall not affect the validity of the remaining portion of this Contract. E. Grading, curbing, and one lift of asphalt shall be installed on all public and private streets prior to issuance of any building permits. F. If building permits are issued prior to the acceptance of public improvements, the Developer assumes all liability and costs resulting in delays in completion of public improvements and damage to public improvements caused by the City, Developer, its contractors, subcontractors, material men, employees, agents, or third parties. No sewer and water connections or inspections may be conducted and no one may occupy a building for which a building permit is issued on either a temporary or permanent basis until the streets needed for access have been paved with a bituminous surface and the utilities are accepted by the City Engineer. G. The action or inaction of the City shall not constitute a waiver or amendment to the provisions of this Contract. To be binding, amendments or waivers shall be in writing, signed by the parties 14 240373v1 MRD Christ Lutheran 2nd Addition and approved by written resolution of the City Council. The City's failure to promptly take legal action to enforce this Contract shall not be a waiver or release. H. This Contract shall run with the land and may be recorded against the title to the property. In the event this Contract is recorded, upon request by Developer, the City covenants to provide a recordable Certificate of Completion within a reasonable period of time following the request, upon the completion of the work and responsibilities required herein, payment of all costs and fees required and compliance with all terms of the Contract. A release of this Contract may be provided in the same manner and subject to the same conditions as a Certificate of Completion provided there are no outstanding or ongoing obligations of Developer under the terms of this Contract. The Developer covenants with the City, its successors and assigns, that the Developer is well seized in fee title of the property being final platted and/or has obtained consents to this Contract, in the form attached hereto, from all parties who have an interest in the property; that there are no unrecorded interests in the property being final platted; and that the Developer will indemnify and hold the City harmless for any breach of the foregoing covenants. I. Insurance. Prior to execution of the final plat, Developer and its general contractor shall furnish to the City a certificate of insurance showing proof of the required insurance required under this Paragraph. Developer and its general contractor shall take out and maintain or cause to be taken out and maintained until six (6) months after the City has finally accepted the public improvements, such insurance as shall protect Developer and its general contractor and the City for work covered by the Contract including workers’ compensation claims and 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: 15 240373v1 MRD Christ Lutheran 2nd Addition 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 (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. 16 240373v1 MRD Christ Lutheran 2nd Addition J. Indemnification. To the fullest extent permitted by law, Developer agrees to defend, indemnify and hold harmless the City, and its employees, officials, and agents from and against all claims, actions, damages, losses and expenses, including reasonable attorney fees, arising out of Developer’s negligence or its performance or failure to perform its obligations under this Contract. Developer’s indemnification obligation shall apply to Developer’s general contractor, subcontractor(s), or anyone directly or indirectly employed or hired by Developer, or anyone for whose acts Developer may be liable. Developer agrees this indemnity obligation shall survive the completion or termination of this Contract. K. Each right, power or remedy herein conferred upon the City is cumulative and in addition to every other right, power or remedy, express or implied, now or hereafter arising, available to City, at law or in equity, or under any other agreement, and each and every right, power and remedy herein set forth or otherwise so existing may be exercised from time to time as often and in such order as may be deemed expedient by the City and shall not be a waiver of the right to exercise at any time thereafter any other right, power or remedy. L. The Developer may not assign this Contract without the written permission of the City Council. The Developer's obligation hereunder shall continue in full force and effect even if the Developer sells one or more lots, the entire plat, or any part of it, until the City’s issuance of a Certificate of Completion and Release. M. Retaining walls over four feet in height shall be constructed in accordance with plans and specifications prepared by a structural or geotechnical engineer licensed by the State of Minnesota. Following construction, a certification signed by the design engineer shall be filed 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. 17 240373v1 MRD Christ Lutheran 2nd Addition N. Should the Developer convey any lot or lots in the Development to a third party, the City and the owner of that lot or those lots may amend this Development Contract or other city approvals or agreements for development or use of those lots without the approval or consent of the Developer or other lot owners in the Development. Private agreements between the owners of lots within the Development for shared service or access and related matters necessary for the efficient use of the Development shall be the responsibility of the lot owners and shall not bind or restrict City authority to approve applications from any lot owner in the Development. 31. 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: 15849 90th Street NE, Otsego, MN 55330. 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.] 18 240373v1 MRD Christ Lutheran 2nd 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 19 240373v1 MRD Christ Lutheran 2nd Addition DEVELOPER: CHRIST CHURCH OF OTSEGO BY: ___________________________________________ Its STATE OF MINNESOTA ) )ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this ________ day of ______________, 2026, by __________________________________ the ____________________________________ of Christ Church of Otsego, a Minnesota non-profit corporation, on behalf of said entity. ______________________________________________ NOTARY PUBLIC DRAFTED BY: CAMPBELL, KNUTSON Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, MN 55121 Telephone: 651-452-5000 DSK/smt 20 240373v1 MRD Christ Lutheran 2nd Addition MORTGAGE HOLDER CONSENT TO DEVELOPMENT CONTRACT THRIVENT FINANCIAL FOR LUTHERANS, a Wisconsin corporation, which holds: 1. A Mortgage executed by Christ Lutheran Church of Elk River, a Minnesota non-profit corporation, now known as Christ Church of Otsego, dated November 5, 1999, filed November 5, 1999 with the Office of the County Recorder, Wright County, Minnesota, as Document No. 694521 in favor of Mission Investment Fund of the Evangelical Lutheran Church in America, a Minnesota non-profit corporation, in the amount of $1,700,000.00 (Covers Additional Property) assigned to Thrivent Financial for Lutherans, a Wisconsin corporation, by Assignment of Mortgage dated June 16, 2004, filed July 8, 2004, with the Office of the County Recorder, Wright County, Minnesota, as Document No. A917590; 2. Consolidated, Supplemental, Amended and Restated Mortgage dated June 16, 2004, filed July 8, 2004, with the Office of the County Recorder, Wright County, Minnesota, as Document No. A917591; 3. First Amendment of Consolidating Note Agreement and Consolidated, Amended and Restated Promissory Note and Consolidated, Supplemental, Amended and Restated Mortgage and Spreader Agreement dated August 24, 2011, filed September 2, 2011, with the Office of the County Recorder, Wright County, Minnesota, as Document No. A1182669; on all or part of the subject property, the development of which is governed by the foregoing Development Contract, agrees that the Development Contract shall remain in full force and effect even if it forecloses on its mortgage. [Remainder of page is intentionally left blank. Signature page follows.] 21 240373v1 MRD Christ Lutheran 2nd Addition Dated this _____ day of ____________, 2026. THRIVENT FINANCIAL FOR LUTHERANS By: _________________________ [print name] Its: ______________________ [title] STATE OF ______________ ) )ss. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this _____ day of _____________, 2026, by ___________________________________ the ____________________________________ of Thrivent Financial for Lutherans, a Wisconsin corporation, on behalf of said entity. __________________________________________ NOTARY PUBLIC DRAFTED BY: CAMPBELL KNUTSON Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 651-452-5000 DSK/smt 22 240373v1 MRD Christ Lutheran 2nd 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, PRESENTAT ION OF ORIGINAL DOCUMENTS IS NOT REQUIRED. OR DEMAND(S) FOR PAYMENT TO BE MADE VIA EMAIL TO _______________. PRESENTATION OF ORIGINAL DOCUMENTS IS NOT REQUIRED. 23 240373v1 MRD Christ Lutheran 2nd 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 ______________________________