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it11
Doc No 4547634 11/25/2008 04:00 PM
Certified filed and or recorded on above date:
Office of the Registrar of Titles
Hennepin County, Minnesota
Michael H. Cunniff, Registrar of Titles
TransID 4568`14 Deputy 26
New cert Cert Fees
1230924 1228974 $1.50 AF
y
$40.00 EXCHFEE
$10.50 STATEFEE
$44.00 TPLATFEE
$0.00 TSUR -
$15.00 CCP
$10.00 CCD
$121.00 Total
t
� AND PRIOR flI4R TAXES PAID
TAXPAYER SERVICES
TRANSFER ENTERED
NOV 2 5 2008
COMMON INTEREST COMMUNITY
NUMBER 1732
TYPE OF
COMMON INTEREST COMMUNITY:
CONDOMINIUM
NAME OF
COMMON INTEREST COMMUNITY:
THE GALLERIA RESIDENCES
DECLARATION
�f22$�17�
0
TABLE OF CONTENTS
PAGE
ARTICLE1. Definitions....................................................................................................2
1.1 Act ................................................................ .............................. ......:.........
2
1.2 Articles of Incorporation .................................... .............................. ..................
1.3 Association .................. 2
1.4 Board of Directors.............................................................. .... ..........................2 I
1.5 Building:..................................................................................................................2
1.6 Bylaws .................................... ........... .......... ............... ...... ................3
1.7 Condominium...........................................................................................................3
1.8 Common Element.................................................................................:...................3
1.9 Common Expenses...................................................................................................3
1.10 Common Interest Community Plat...........................................................................3
1.11 Declarant...............................................................:....:.............................................4
1.12 Declarant Control Period..........................................:...............................................4
1.13 Eligible Mortgagee....................................................................................... ........4
1.14 Garage Stalls............................................................................................................4
1.15 Governing Documents..............................................................................................4 I
1.16 Hotel........................................................................................................ 4
1.17 Limited Common Element......................................................................:................4
1.18 Member ............................................ 5
.......................................................................
1.19 Mortgagee.............................................................:...................................................5
1.20 Owner ................................... 5
1.21 Occupant..........................................................................................................:........ 5
1.22 Purchaser ................................................................................................................5
1.23 REA's.......................................................................................................................5
1.24 Recording Officer.....................................................................................................5
1.25 Rules and Regulations..............................................................................................5
1.26 Security for an Obligation........................................................................................6
1.27 Storage Locker.........................................................................................................6
1.28 Subject Property.......................................................................................................6
1.29 Unit...........................................................................................................................6
ARTICLE 2. Submission of Subject Property to Act; Act Requirements ....................6
2.1 Submission...............................................................................,...............................6
2.2 Name; Common Interest Community Number; "Type of Common Interest
Community......................................... ............6
2.3 Division of the Subject Property Into Separate Estates in Fee Simple
Absolute; No Time Shares.......................................................................................6
2.4 Creation of Additional Units by Subdivision or Conversion...................................6
2.5 Association...............................................................................................................7
2.6 Master Association...................................................................................................7
4
2.7
Legal Description of Real Estate Included in the Community Interest
4.3
Administration of Condominium...........................................................................12
Community and Appurtenant Easements................................................................7
4.4
2.8
Description of Boundaries of Units, .........................................................................
8
2.9
Common Interest Community Plat...........................................................................9
Restriction on Renting or Leasing of Units...................................................:........15
2.10
Allocation of Common Element Interests, Votes, and Common Expense
4.7
Liabilitiesto Units...................................................................................................9
2.11
Restrictions on Use, Occupancy and Alienation of Units ......... .........................:..9
-
2.12
Allocation of Limited Common Elements Not Described in Sections
4.9
515B.2 -102(d) and (f) of the Act.............................................................................9
2.13
Statement Pursuant to Section 515B.1-106 of the Act.............................................9
2.14
Shoreland..............................................................................................................9
2.15
Special Declarant Rights ............................................................................... ...9
ARTICLE3. Easements...................................................................................................10
Construction Standards..........................................................................................19
3.1 Easements for Encroachments...............................................................................10
3.2 Easements for Certain Utilities and Other Purposes..............................................10
3.3 Easements Through Walls, Within Units and Upkeep of Condominium ..............1 l
3.4 Easements for Maintenance.......................................................... .....................11
3.5 Structural Support Easements................................................................................11
3.6 Easements to Run With Land................................................................................11
ARTICLE 4. Restrictions, Conditions and Covenants ..................................................
4.1 Membership in Association............................................................. I.... I.................
4.2
Compliance with Governing Documents and REA's............................................12
4.3
Administration of Condominium...........................................................................12
4.4
Purposes for Which Units, Garage Stalls and Storage Lockers are
Restrictedas to Use...............................................................................................12
4.5
Restriction on Renting or Leasing of Units...................................................:........15
4.6
Restrictions on Alienation of Units........................................................................17
4.7
Impairment of Structural Integrity of Unit or Building and Impairment of
Sound Transmission Standards...........................:..................................................17
4.8
Improvements.........................................................................................................18
4.9
Architectural Committee........................................................................................18
4.10
Improvement and Installation Procedures..............................................................18
4.11
Purpose of Architectural Requirements.................................................................18
4.12
Appurtenant Easements..........................................................................................19
4.13
Construction Standards..........................................................................................19
4.14
Miscellaneous.............................................................:...........................................19
4.15
Indemnification for Unit or Common Element Alterations...................................19
4.16
Pets.....................................................................................................................:...19
4.17
Home Occupations, Prohibited Activities and'Signs.............................................20
4.18
Rules and Regulations............................................................................................20
4.19
Restrictions, Conditions and Covenants to Run With Land..................................20
4.20
Non -Waiver of Covenants......................................................................................20
4.21
Restriction on Number of Occupants.....................................................................20
r
4.22
Resale Restrictions.................................................................................................20
4.23
Termination............................................................................................................20
ARTICLE 5. Management, Maintenance, Repairs, Alterations and Improvements2l
5. 1;
Common Elements and Limited Common Elements.............................................21
7.3
5.2
Units........................................................................................ ...........................21
7.4
5.3
Damage...................................................................................................................
21
5.4
Waiver of Claims ...............................................................................................21
7.7
5.5
Mechanics' Liens....................................................................................................22
7.8
5.6
Owner Obligated to Pay .................................................................................22
7.9
ARTICLE 6. Assessments and Liens for Assessments..................................................22
6.1
Obligation for Assessments....................................................................................22
6.2
Assessments Against Fewer Than All Units..........................................................23
6.3
Annual Assessment................................................................................................23
6.4
Special Assessments ...........................................................................................23
6.5
Assessment Rate.....................................................................................................23
6.6
Lien for Unpaid Assessments, Interest and Late Fees...........................................23
6.7
Priority of Lien; Purchaser at Foreclosure Sale Not Liable for Certain
Unpaid Assessments; Association Responsible for Certain Unpaid
Assessments..................................................23
.........................................................
6.8
Preparation of Proposed Budget and Levying of Assessment...............................24
6.9
Payment of Assessments........................................................................................24
6.10
Failure to Prepare Annual Budget and Levy Annual Assessments ........................24
6.11
Late Fees and Interest on Unpaid Assessments; Acceleration...............................25
6.12
Assessment Roll Available for Inspection....:........................................................25
6.13
No Exception or Waiver of Payment of Assessments...........................................25
6.14
Foreclosure of Lien................................................................................................25
6.15
No Further Perfection or Notice Required.............................................................25
6.16
Adequate Reserve Fund.......................................................................................25
6.17
Working Capital Fund............................................................................................26
6.18
Alternative Assessment Program .....................................
ARTICLE 7. Insurance and Eminent Domain ............................................................... 26
7.1
Required Coverage............................................................................................26
7.2
Premiums; Improvements; Deductibles.................................................................28
7.3
Loss Payt:e; Insurance Trustee...............................................................................28
7.4
Required Policy Provisions....................................................................................28
7.5
Cancellation: Notice of Loss................................................................................28
7.6
Restoration in Lieu of Cash Settlement.................................................................29
7.7
Owner's Personal Insurance........................................................................... ...29
7.8
Required Insurance Not Available.........................................................................29
7.9
Eminent Domain....................................................................................................29
ARTICLE
S. Amendments to Declaration.....................................................................29
iii
8.1
Percentage of Owners.............................................................................................29
8.2
Recordation............................................................................................................29
8.3
Limitations........................................................................:....................................29
8.4
Alteration of Limited Common Elements..............................................................30
8.5
Secretary's Affidavit......................................................................t.......................30
ARTICLE 9. General Provisions.....................................................................................30
9.1
Interpretation of Declaration..................................................................................30
9.2
Examination of Records.........................................................................................30
9.3
Notices....................................................................................................................31
9.4
Successors and Assigns..........................................................................................31
9.5
Severable Provisions..............................................................................................31
9.6
Titles, Headings or Captions and Reference to Gender.........................................31
9.7
Minor Revisions.....................................................................................................32
9.8
Minnesota Law to Govern ......................................................................................32
9.9
Association's Right of Entry ..................................................................................32
9.10
Right of Action.......................................................................................................32
ARTICLE 10. Provisions for Eligible Mortgagees .........32
10.1
No Right of First Refusal .. .............................................................................32
10.2
Approval of Eligible Mortgagees...........................................................................32
10.3
Notice to Eligible Mortgagees ........................................ ....33
10.4
Liens Prior to First Mortgage.................................................................................34
10.5
Rights to Condemnation Proceeds.......................................................:.................34
10.6
Amendments...........................................................................................................34
10
(Above Space Reserved for Recording Date)
COMMON INTEREST COMMUNITY NUMBER 1732
CONDOMINIUM
THE GALLERIA RESIDENCES
DECLARATION
THIS DECLARATION FOR THE GALLERIA RESIDENCES, COMMON
INTEREST COMMUNITY NUMBER 1732, Hennepin County, Minnesota, is made as of
this _61-& day - of _ October , 200 by Galleria Condominiums, LLC, a
Minnesota limited liability company (the "Declarant"), pursuant to Minnesota Statutes
Chapter 51513, known as the "Minnesota Common Interest Ownership Act," and laws
amendatory thereof and supplemental thereto (the "Act").
RECITALS
A. Declarant is the owner in fee simple of the real property situated in the City of
Edina, in Hennepin County, Minnesota, legally described on Exhibit A attached hereto and
incorporated herein by reference (the "Subject Property").
B. Declarant has deemed it desirable for the preservation of the value of the
Subject Property to submit the same, together with the improvements and other permanent
fixtures thereon to the provisions of the Act, and to incorporate under the laws of the State of
Minnesu "The Galleria Residences Owners' Association" for the purpose of administering
the Subject property.
C. - Declarant is about to sell, dispose of and convey Common Interest Community
(as defined in the Act) interests or estates in and to the Subject Property, together with the
buildings, structures, improvements and other permanent fixtures of whatsoever kind
thereon, and any and all rights and privileges. belonging to or in any way appertaining
thereto, and to accomplish this purpose desires to submit the Subject Property to the
requirements of the Act.
1
D. Declarant desires and intends that the Owners, Mortgagees, Occupants (as
defined in Article 1), and other persons hereafter acquiring any interest in the Subject
Property shall at all times enjoy the rights, easements, privileges, and restrictions set forth in
this Declaration, all of which are declared to be in furtherance of a plan to promote and
t protect the cooperative aspect of the Common Interest Community form of ownership of the r
Subject Property and are established for the purposes of enhancing and perfecting the value,
desirability and attractiveness of the same.
E. The Subject Property is not subject to an ordinance referred to in Section
51513.1-106 of the Act governing conversions to common interest ownership, and is not
! subject to a "master association" as that term is defined in the Act.
NOW, THEREFORE, Declarant, as the sole owner of the Subject Property, subjects
the Subject Property to this Declaration under the name "The Galleria Residences",
consisting of the Units and Common Elements referred to in Article 2, declaring that this
Declaration shall constitute covenants to run with the Subject Property, and that the Subject
I Property shall be owned, occupied and conveyed subject to the covenants, restrictions,
easements, charges and liens set forth herein, all of which shall be binding upon all persons
owning, or acquiring any right, title or interest therein, and their heirs, personal
representatives and assigns.
ARTICLE 1, Definitions
The terms and phrases used in this Declaration shall have the meanings ascribed to
them in Section 515B.1-103 of the Act except as those meanings are modified or
supplemented below.
1.1 Act. "Act" means the Minnesota Common Interest Ownership Act, Minnesota
Statutes Chapter 515B, as amended from time to time.
1.2 Articles of Incorporation. "Articles of Incorporation" shall mean the Articles
of Incorporation for the Association filed in the Office of the Minnesota Secretary of State.
1.3 Association. "Association" or "Owners' Association" means the owners'
Association organized under Section 515B.3-101 of the Act, in general, and in particular,
"The Galleria Residences Owners' Association" a non-profit corporation organized under
Minnesota Statutes Chapter 317A, as amended, of which each Owner shall, by virtue of such
ownership interest, be a Member and which has been established to provide for the
maintenance, preservation, and architecture] control, together with the regulation of activities
in the Units and Common Elements in the Condominium, for the collective benefit of the
Members.
i 1.4 Board of Directors. `Board of Directors" or "Board" means the Board of
Directors of the Association.
1.5 Building. `Building" means the structure, part of which is- the Subject
2
t
Property and contains the Units.
1.6 Bylaws, `Bylaws" means the Bylaws of the Association, as amended from
time to time.
1.7 Condominium. "Condominium" means a "condominium," as defined under
the Act, portions of which are designated for separate ownership and the remainder of which
is designated for common ownership solely by the Owners of those portions. Specifically, as
the term is used herein, it means and refers to The Galleria Residences, Common Interest
Community Number 1732, Hennepin County, Minnesota, the Condominium established by
this Declaration.
1.8 Common Element. "Common Element" means all parts of the Subject
Property other than the Units, including, but not limited to, the following: the wood
sub -flooring, concrete slab, or bituminous material under each Unit; the ceiling joists, the
masonry perimeter walls and the studs and plates of non -masonry perimeter walls; roof;
stairways, landings, halls, corridors, walkways and light wells; foundations and main walls;
exterior planes of doors and windows of the Units and the Building on the Subject Property;
entrance stoops, if any, at the entrances to Units; those portions of bearing walls and
columns, pipes, vents, flues, chutes, chimneys, wires, chases, conduits and other utility
installations which may lie partially within and partially without the designated boundaries of
a Unit, but which serve more than one Unit or any portion of the Common Elements; and any
other area, facility, fixture or element which is designed or intended for common use. If a
perimeter wall does not exist between two or more Units and the Owner or Owners of those
Units construct a wall to separate those Units pursuant to Article IV, Section 4.8, the wall
shall be Common Element upon the completion of its construction.
1.9 Common Expenses. "Common Expenses" means expenditures made or
liabilities incurred by or on behalf of the Association together with any allocations for
'reserves including, but not limited to, the following: premiums for any and all insurance
maintained by the Association; common utilities that are not separately metered (if any);
legal and accounting fees; the unpaid portion of any assessment against a Unit that is
acquired pursuant to a mortgage foreclosure proceeding or a deed in lieu of foreclosure and
not required to be paid by such acquirer; deficits remaining from any prior assessment
period; the cost of all fidelity bonds required by the Board; all costs for the maintenance,
operation, alteration, improvement and replacement of the Common Elements; real estate
taxes and special assessments, and other charges and fees which would normally be levied
against the Common Elements by governmental authorities; the Associ Lion's share of any
fees charged or liabilities incurred under any easement, operation or maintenance agreement
including, without limitation, the REA's; and any other expenses for the administration,
operation and management of the Association and the Condominium.
1,10 Common Interest Community Plat. "Common Interest Community Plat"
means that certain Common interest Community Plat of the Condominium meeting the
3 I
I
x
requirements of Section 51513.2-110 of the Act, as amended, to be recorded with and
incorporated as a part of this Declaration.
1. 11 Declarant. "Declarant" means Galleria Condominiums, LLC, a Minnesota
limited liability company, its successors or assigns.
1.12 Declarant Control Period. "Declarant Control Period" means the period
during which Declarant has the power to appoint, to remove and replace members of the
Board, commencing on the date of creation of the Condominium and continuing until the
earlier of (i) the date three (3)' years after the date of the first conveyance of a Unit to an
Owner other than Declarant; (ii) Declarant's voluntary surrender of control by giving written
notice to the Owners pursuant to Section 515B.1-115 of the Act; or (iii) the conveyance of
seventy-five percent (75%) of the Units to Owners other than Declarant.
1.13 Eligible Mortgagee. "Eligible Mortgagee" means the owner of any recorded
mortgage of a Unit and the successors or assigns of such Eligible Mortgagee or any persons
named as vendor or seller under any recorded contract for deed of a Unit and the successors
or assigns of such vendor which holder, assignee, vendor, successor, or seller, as the case
may be, has requested in writing that the Association notify it regarding any proposed action
which requires approval by a specified number of Eligible Mortgagees.
1.14 Garage Stalls. "Garage Stalls" means the stalls designed for vehicle parking
and located in the Building.
1.15 Governing Documents. "Governing Documents" means this Declaration, the
Articles of Incorporation, Bylaws and Rules and Regulations.
1.16 Hotel. "Hotel" shall mean any hotel operated from time to time in a portion of
the Building.
1.17 Limited Common Element. "Limited Common Element" means a portion of
the Common Elements allocated by the Declaration or by operation of Section
515B.2 -102(d) or (f) of the Act for the exclusive use of one or more but fewer than all of the
Units. Section 2.12 allocates those Limited Common Elements not specifically described in
Section 515B.2 -102(d) and (f) of the Act to specific Units or group(s) thereof. Section
515B.2 -102(d) of the Act provides as follows:
"If any ch -ate, flue, duct, wire, pipe, conduit, bearing wall,
bearing col' inn, or any other fixture serving fewer than all units
lies partially within and partially outside of the boundaries of
the unit or units served, any portion thereof serving only that
unit or units is a limited common element allocated solely to
that unit or units, and any portion thereof serving any portion of
the common elements is a part of the common elements."
Section 51513.2-1020 of the Act provides as follows:
4
"Improvements such as shutters, awnings, window boxes,
doorsteps, stoops, porches, balconies, decks, patios, perimeter
doors and windows, and their frames, constructed as part of the
original construction to serve a single unit, and authorized
replacements and modifications thereof, if located wholly or',
partially outside the unit's boundaries, are limited common
elements allocated - - exclusively --to that unit." - --
L 18 Member. "Member" means each Owner of any Unit. Where a Unit is being
sold by the Owner to a contract vendee who is entitled to possession, the contract vendee
shall be considered the Member if (i) the rights of the contract vendor hereunder are
delegated to the vendee under such contract for deed; and (ii) the vendee shall furnish proof
of such delegation to the Association. Membership shall be appurtenant to and may not be
separated from ownership of the Unit.
1.19 Mortgagee. "Mortgagee" means the owner of any recorded mortgage of a
Unit and the successors or assigns of such Mortgagee or any persons named as vendor or
seller .under any recorded contract for deed of a Unit and the successors or assigns of such
vendor.
1.20 Owner. Declarant, for so long as it owns a Unit, and each person to whom
ownership of a Unit has been conveyed or transferred, but does not include a holder of an
interest as Security for an Obligation, other than a contract vendor's interest, unless such
interest is delegated to a contract vendee as provided in Section 1.18.
1.21 Occupant. "Occupant" means any person or persons, other than an Owner, in
possession of or residing in a Unit.
1.22 Purchaser. "Purchaser" means the holder of a Unit interest (i.e., fee owner or a
contract for deed vendee), or the proposed purchaser of such an interest who holds a valid
and binding purchase agreement for a Unit.
1.23 REA's. "REA's" means the Cross Easement, Operation and Maintenance
Agreement (2 -Dimensional) between Galleria Shopping Center, LLC, Galleria Hotel, LLC
and Galleria Parking Ramp, LLC, dated as of September 22, 2006 and filed in the Office of
the Hennepin County Registrar of Titles on October 12, 2006 as Document No. 4315689,
and the Reciprocal Maintenance, Use, and Easement Agreement (3 -Dimensional) between
Declarant and Galleria Hotel, LLC, dated as of October' 10, 2008 and filed in the Office of
the Hennepin County Registrar of Titles on October 13, 2008 as Document No. 4536803.
1.24 Recording Officer. "Recording Officer" means the Registrar of Titles for
Hennepin County, Minnesota.
1.25 Rules and Regulations. "Rules and Regulations" means the Rules and
Regulations of the Association adopted by the Board, as amended from time to time.
5
1.26 Security for an Obligation. "Security for an Obligation" means the vendor's
interest in a contract for deed, Mortgagee's interest in a mortgage, Purchaser's interest under
a sheriff's certificate of sale during the period of redemption, or the holder's interest in a lien.
1.27 Storage Locker. The individual storage lockers located on the parking garage
level of the Condominium.
1.28 Subject Property. "Subject Property means that certain real property situated
in the City of Edina, Hennepin County, Minnesota, legally described on Exhibit A of this
Declaration, together with the buildings, structures, and other permanent fixtures of
whatsoever kind thereon, and any and all rights and privileges belonging to or in any other
way appertaining thereto.
1.29 Unit. "Unit" means a portion of the Condominium, designated hereby for
separate ownership as a residence, the boundaries of which are delineated on the Common
Interest Community Plat and described in Section 2.8. Garage Stalls and Storage Lockers are
not Units.
ARTICLE 2. Submission of Subject Property to Act; Act Requirements
2.1 Submission. Declarant hereby submits the Subject Property to the provisions
of the Act, and the Subject Property shall be conveyed, encumbered, held, leased, occupied,
rented and used subject to all conditions, covenants, limitations, obligations, restrictions and
uses expressed in this Declaration or in the Act. All such conditions, covenants, limitations,
obligations, restrictions and uses are declared and agreed to be in furtherance of a plan for
and be a burden and benefit to Declarant, its grantees, successors and assigns and any
persons acquiring or owning an interest in the Subject Property, their grantees, successors
and assigns.
2.2 Name, Common Interest Community Number-, Type of Common Interest
Community. The Subject Property shall be a "condominium" (as defined in the Act) and
shall hereafter be known as "The Galleria Residences". The Common Interest Community
number for the Subject Property is 1732.
2.3 Division of the Subject Property Into Separate Estates in Fee Simple Absolute,•
No Time Shares. Declarant, in accordance with the requirements and provisions of the Act
and in order to establish a plan of Condominium Unit ownership for the Condominium, does
hereby divide "'the Subject Property into eighty-two (82) Units, (subject to Declaranl's
exclusive right to subdivide, convert and combine Units), each separately designated an
legally described estates in fee simple absolute, each Unit consisting of a Unit and that Unit's
undivided interest in the Common Elements. All of the Units are designed for residential and
not for commercial purposes. Descriptions as to the boundaries of the Units and restrictions
as to their use are hereinafter set forth. Time Shares of Units are not permitted.
Units may not be subdivided, combined, or converted. Notwithstanding the
foregoing, a Unit or Units owned exclusively by Declarant may be subdivided, combined, or
converted into one or more Units, Limited Common Elements, Common Elements, or a
combination of Units, Limited Common Elements, or Common Elements pursuant to Section
i 515B.2-112 of the Act. The maximum number of additional Units that may be created by
Declarant by subdivision or conversion pursuant to Section 515B.2-112 of the Act is ten (10)
additional Units.
2.5 Association. The Association has been incorporated as a non-profit
corporation organized under Minnesota Statutes Chapter 317A, as amended.
2.6 Master Association. The Condominium is not subject to any master
association.
2.7 Legal Description of Real Estate Included in the Community Interest
Community and Appurtenant Easements. The legal description of the Subject Property is as
set forth in Exhibit A of this Declaration. The Units will be conveyed by use of the
following legal description, or any other valid description allowed by law:.
UNIT NUMBER , THE GALLERIA RESIDENCES, COMMON
INTEREST COMMUNITY NUMBER 1732, HENNEPIN COUNTY, MINNESOTA
7
j The Unit identifier for each Unit is as follows:
Unit #
Unit #
Unit #
Unit #
801
1101
1401
1701
802
1102
1402 }
1702
803
1103
1403
1703
804
1104
1404 _
1704
805
1105
1405
1705
806
1106
1406
1708
807
1107
1.407
1801
808
1108
1408
1802
901
1201.
1501,
1803
902
1202
1502
1804
903
1203
1503
1805
904
1204
1504
1808
905
1205
1505
906
1206
1506
907
1207
1507
908
1208
1508
1001
1301
1601
1002
1302
1602
1003
1303
1603
1004
1304
1604
1005
1305
1605
1006
1306
1608.
1007
1307
1008
1308•
The Subject Property is the beneficiary of appurtenant easements for ingress and
egress throughout the Building and driveway areas outside the Building granted in the
REA's, which provide access from the Condominium and Units in the Condominium to the
public streets known as York Avenue and 69`h Street, Edina, Minnesota. The Subject
Property is both burdened and benefited by appurtenant easements in the REA's.
2.8 Description of Boundaries of Units. The boundaries of each Unit are the
interior unfinished surfaces of its perimeter walls, lowest level floors and upper level ceiling
of the Unit, and, in the case of Units that are not separated by a wall, the boundary baween
such Units is a vertical plane in the location shown on the CIC Plat. The boundaries cx the
Units include allpaneling, tiles, wallpaper, paint, floor coverings, and any other finishing
m, terials applied to the interior surfaces of the perimeter wall, floors or ceilings. All spaces,
interior partitions, and other fixtures and improvements within the boundaries of the Unit are
part of the Unit. Except as otherwise set forth in this paragraph, all other portions of the
walls, floors, or ceilings, including perimeter doors and windows, and their frames, are part
of the Common Elements. Any chute, flue, duct, wire, conduit, bearing wall, bearing
8
column, or any other fixture that lies partially within and partially outside of the designated
boundaries of a Unit is a Limited Common Element allocated solely to that Unit, and any
portion thereof serving more than one Unit or any portion of the Common Elements is a part
of the Common Elements. All improvements such as shutters, awnings, window boxes,
doorsteps, stoops, porches, balconies, decks, patios, perimeter doors and windows
constructed as part of the original construction to serve a single Unit, and authorized
replacements and modifications thereof, if located outside the Unit's boundaries, are Limited -
Common Elements allocated exclusively to that Unit.
2.9 Common Interest Community Plat. The Common Interest Community Plat,
meeting the requirements of Section 515B.2-110 of the Act, as amended, is incorporated
herein by reference and made a part hereof.
2.10 Allocation of Common Element Interests Votes and Common Expense
Liabilities to Units. The Units are each allocated the voting power, the percentage of
undivided interest in the Common Elements and the percentage of Common Expense liability
indicated on Exhibit B attached hereto. Such allocations are based on Declarant's estimate
of approximate finished floor area of each Unit in proportion to the relative estimated
finished. floor area of all Units in the Condominium. Notwithstanding any provision to the
contrary, the Association, pursuant to Section 5158.3-115(h) of the Act, may assess any
Common Expense benefiting fewer than all of the Unit(s) against the Units benefited by the
item of improvement, maintenance, repair or alteration giving rise to such expense.
2.11 Restrictions on Use, Occupancy and Alienation of Units. Any restrictions on
the use, occupancy and alienation of Units in the Condominium are as set forth in Article 4,
in the Rules and Regulations, and in the REA's.
2.12 Allocation of Limited Common Elements Not Described in Sections
51513.2-102(d) and (f) of the Act. In addition to the Limited Common Elements allocated to
each Unit by operation of Sections 515B.2-102(4) and (f) of the Act, any heating, ventilating
or air conditioning equipment serving only a certain Unit or Units, and located wholly or
partially outside the Unit or Unit's boundaries, are Limited Common Elements allocated to
the Unit or Units served by such equipment.
2.13 Statement Pursuant to Section 5158.1-106 of the Act. The Condominium has
not been created in violation of any zoning, subdivision, building, housing, environmental
protection, heritage preservation, or other.real estate use law, ordinance, regulation, rule or
charter provision. Any conditions of any �.,u h law, ordinance, regulation, rule or charter
provision have been complied with in the creation of the Condominium. The Condominium
is not "conversion property" as that term.is defined in the Act.
2.14 Shoreland The Condominium does not include "shoreland", as defined in i
Minnesota Statutes Section 103F.205. I
2.15 Special Declarant Rights. Declarant hereby reserves exclusive and i
unconditional authority to exercise the following "Special Declarant Rights" within the
9
meaning of Section 51513.1-103(32) of the Act for as long as it owns a Unit, or for such
period as may be specifically indicated:
2.15.1 complete improvements indicated on the Common Interest Community
Plat, planned by Declarant consistent with the disclosure statement provided to
Purchasers pursuant to the Act, or authorized by the City of Edina, Minnesota;
2.15.2 subdivide or combine Units or convert Units into Common Elements,
Limited Common Elements and/or Units;
2.15.3 maintain one (1) sales office, located in a model Unit or on the
Common Elements, one (1) management office, located in a model Unit or on the
Common Elements, up to five (5) model Units, located in Units owned by Declarant
from time to time, and signs advertising .the Condominiums located in model Units
and on the Common Elements;
2.15.4 use easements through the Common Elements for the purpose of
making improvements within the Condominium; and
2.15.5 appoint or remove any officer or director of the Association during the
Declarant Control Period.
ARTICLE 3. Easements
3.1 Easements for Encroachments. If by reason of the construction,
reconstruction, rehabilitation, alteration, improvement, settlement or shifting of the Building,
any part of the Common Elements encroaches or shall hereafter encroach upon any part of
any Unit, or any part of any Unit encroaches or shall hereafter encroach upon any part of the
Common Elements or upon any part of another Unit, or if by reason of the design or
construction of utility systems and ventilation systems, any main, pipe, duct, or conduit
serving more than one Unit encroaches or shall hereafter encroach upon any part of any Unit,
valid easements for the maintenance of such encroachments and for such use of the Common
Elements are hereby established and shall exist for the benefit of such Units, and the Owners,
and the Common Elements, as the case may be, so long as all or any part of the structure
shall remain standing; provided, however, that in no event shall a valid easement for any
encroachment or use of the Common Elements be created in favor of any Owner if such
encroachment or use is detrimental to or interferes with the reasonable use and enjoyment of
,he Condominium or any portion thereof by the other Owners and if it oc.".Trued due to the
willful conduct of any Owner.
3.2 Easements for Certain Utilities and' Other Purposes. The Board acting on
behalf of the Association may grant easements for public utilities, public rights-of-way or
other public purposes, and cable television or other communication, through, over or under
the Common Elements; grant easements, leases, or licenses to Owners for purposes
authorized by this Declaration; and, subject to approval by resolution of Owners other than
Declarant or its affiliates, grant other easements, leases; and licenses through, over or under
l0
the Common Elements. Each Owner hereby grants to the Association an. irrevocable power
of attorney to execute, acknowledge, and record or file, for and in the name of each such
Owner, such instruments as may be necessary to effectuate the foregoing.
3.3 Easements Through Walls Within Units and Upkeep of Condominium.
Easements are hereby declared and granted to install, lay, maintain, repair, and replace any
wires, pipes, flues, ducts, conduits, public utility lines, or structural components running
through the walls of the Units, or other Common Elements whether or not such walls lie in
whole or in part within the Unit boundaries. These easements are granted to the Association
if such wires, pipes, flues, conduits, public utility lines, or structural components are part of
the Common Elements. These easements are granted to the Owners if such wires, pipes,
flues, -ducts, conduits, public utility lines; or structural components are Limited Common
Elements reserved for the exclusive use of such Units.
Nothing in this Article 3 shall be interpreted to limit or modify the access easements
described in Section 515B.3-107 of the Act.
3.4 Easements for Maintenance. Mutual non-exclusive easements are hereby
granted' and declared for the benefit of each Unit, the Association, and Declarant as may be
reasonably necessary for the purpose of discharging Declarant's obligations or exercising
Special Declarant Rights, and burdening each of them, within and through each Unit for
access to other Units, the Common Elements or Limited Common Elements, if reasonably
necessary for the alteration, maintenance, repair, improvement or replacement of the other
Unit, Common Elements or Limited Common Elements; provided, however, that the exercise
of such rights shall be upon reasonable notice and at reasonable times, except in the event of
an emergency, in which event no notice need be given, and shall not interfere unreasonably
with the use and occupancy of the burdened Unit.
3.5 Structural Support Easements Each Unit shall be subject to, and the
beneficiary of, an easement for structural support in all walls, columns, joists, girders and
other structural components located in another Unit or on the Common Elements and
contributing to the support of the Building.
3.6 Easements to Run With Land. All easement rights and obligations created in
this Article 3 are affirmative and negative easements, running with the land, perpetually in
full force and effect and at all times shall inure to the benefit of, and be binding upon,
Declarant, its successors and assigns, and any Owner, Purchaser; Mortgagee, holder of a
Security for an Obligation and other person having any interest in the Condominium or any
part or portion thereof.
ARTICLE 4. Restrictions, Conditions and Covenants
4.1 Membership in Association. Each Owner shall, 'by virtue of such ownership
interest, be a Member of the Association and shall remain a Member of the Association until
such .time as the ownership interest in the Unit ceases for any reason, at which time the
Owner's membership in the Association shall automatically cease. When one or more
persons hold an ownership interest in a Unit, all such persons shall be Members, but. multiple
ownership of a Unit shall not increase the voting rights allocated to each Unit or authorize
the division of voting rights.
4.2 , Compliance with Governing Documents, and REA's. Each Owner and all
Occupants of a Unit shall comply with all of the provisions of this Declaration, the Bylaws,
the Articles of Incorporation, the Rules and Regulations, the REA's, and any other
easements, covenants and restrictions affecting the Condominium and decisions of the
Association made pursuant to the authority granted to the Association in the foregoing
documents, and failure to comply with any such provisions and Rules and Regulations shall
be grounds for an action to recover damages or for injunctive relief.
4.3 Administration of Condominium. The administration of the Condominium
shall be by the Board in accordance with the provisions of the Governing Documents and the
REA's. The Condominium shall at all times be managed by a professional management
company.
to Use.
4.4 Purposes for Which Units, Garage Stalls and Storage Lockers are Restricted as
4.4.1 Units. Units shall be occupied and used by the respective Owners, their
families, tenants and social guests, only as private residential dwellings; provided,
however, an Owner or Occupant may pursue any home occupation that does not (i)
violate the Declaration or the Act, or any federal, state or local laws, or ordinance; (ii)
adversely affect other Owners and Occupants; (iii) involve pedestrian traffic to the
Units; or (iv) otherwise increase substantially the use of the Common Elements for
meetings or receipt of packages. Any home occupation that causes customers or
employees to come to the Unit or the Condominium, or causes the delivery of bulk
mailings to the Occupant of such Unit, shall be deemed to violate this Subsection
4.4.1. Only Units may be used at any time as temporary or permanent lodging. No
time shares of any Unit are permitted.
4.4.2 Use and Transfer of Garage Stalls. The building includes Garage Stalls
that are assigned to individual Units for the parking of vehicles belonging to the
Owner or Occupant of the Unit. The use and transfer of the Garage Stalls shall be
administered by the Association in accordance with this Subsection. The following
conditions and restrictions shall govern the assignment, -use and transfer of the Garage
Stalls:
(a) The initial assignment of Garage Stalls shall be made by Declarant.
Declarant shall assign the exclusive., right, and license to use an
otherwise unassigned Garage Stall to a Unit designated by Declarant
and shall provide to the Association a copy of the written "Certificate
of Garage Stall Assignment, which shall be substantially in the form
of the document attached hereto as Exhibit C .
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(b) The use rights with respect to each Garage Stall shall be licensed
exclusively to the Owner or Occupant of the Unit to which the Garage
Stall is assigned. The Association shall maintain records identifying
the Garage Stalls, the Units to which they are assigned, the names of
the Owners and Occupants of the Units, and the dates of assignment
and any reassignments. The Association will deliver a written
- certification of the assignment to the Owner upon request. -
(c) A Garage Stall license may be reassigned, but only by first delivering
to the Association a written assignment, in form approved by the
Association, signed by the assignor and the assignee. The Association
shall review the proposed assignment for compliance with this
Subsection and if the assignment complies, the Association shall
transfer the license on its records to the Unit_ owned by the assignee. In
the absence of a properly executed assignment to the contrary, the
license to use a Garage Stall assigned to a Unit at the time of the Unit's
conveyance shall be automatically assigned with the conveyance of
title.to the Unit.
(d) Owners shall not rent or allow use of their assigned Garage Stall by
anyone except other Owners or Occupants. The lease or other use right
shall be in written form, and shall terminate when the lessee, lessor or
other user is no longer an Owner or Occupant of the Unit, regardless of
any agreement to the contrary. The Owner shall give the Association
advance written notice of any lease or use agreement with respect to
such Owner's Garage Stall, and shall provide a copy of the lease or use
agreement to the Association upon its request.
(e) The security interest of a secured party holding a first lien on a Unit
shall include the license from the Association or Declarant to any
Garage Stall that is assigned to -the Unit and the rights shall be included
within the secured party's interest acquired if the lien or other security
interest is foreclosed against the Unit.
(f) Any license, lease, rental, assignment, transfer or purported transfer,
whether voluntary or involuntary, of any interest in a Garage Stall in
violation of this Subsection shall be void.
(g) The use of the Garage Stalls, and the size and types of materials which
may. be kept in the Garage Stalls, are subject to the Rules and
Regulations.
(h) Garage Stalls shall be used only by Owners and Occupants of Units,
their tenants and social guests; provided, however, that Declarant shall
be entitled to use any unassigned Garage Stall for a period of six (b)
months after the last Unit. is conveyed to an Owner other than
13
Declarant.
(i) Any Garage Stall not assigned six (6) months after the last Unit owned
by Declarant has been conveyed will be assigned to the Association.
The Association may hold or reassign the license to, or rent, a Garage
Stall assigned to it in the same manner as an Owner.
4.4.3 Use and Transfer of Storage Lockers. The Condominium includes
Storage Lockers that are assigned to individual Units for the storage of personal
property belonging to the Owner of the Unit. The use and transfer of the Storage
Lockers shall be administered by the Association in accordance with this Subsection
4.4.3. The following conditions and restrictions shall govern the assignment, use and
transfer of the Storage Lockers:
(a) The initial assignment of Storage Lockers shall be made by Declarant.
Declarant shall assign the exclusive right and license to use an
otherwise unassigned Storage Locker to a Unit designated by Declarant
and shall provide to the Association a copy of a "Certificate of Storage
Locker Assignment", which shall be substantially in the form of the
document attached hereto as Exhibit D.
(b) The use rights with respect to each Storage Locker that is assigned to a
Unit shall be licensed exclusively to the Owner or Occupant of the Unit
to which the Storage Locker is assigned. The Association shall
maintain records identifying the Storage Lockers, the Units to which
they are assigned, the names of the Owners and Occupants of the Units,
and the dates of assignment and any reassignments. The Association
will deliver a written certification of the assignment to the Owner or
Occupant upon request.
(c) A Storage Locker license may be reassigned, but only by first
delivering to the Association a written assignment, in form approved by
the Association, signed by the assignor and the assignee. The
Association shall review the proposed assignment for compliance with
this Subsection, and if the assignment complies, the Association shall
transfer the license on its records to the Unit owned or occupied by the
assignee. The license to use the Storage Locker shall remain with the
Owner or Occupant and Unit to which' 11 is assigned until the license is
reassigned in accordance with this Subsection. In the absence of a
properly executed assignment to the contrary, the license to use a
Storage Locker assigned to a Unit at the time of the Unit's conveyance
shall be automatically assigned with the conveyance of title to the Unit.
(d) Owners shall not rent or allow the use of their assigned Storage Locker
by anyone except other Owners or Occupants. The lease or other use
right shall be in written form, and shall terminate when the lessor,
14
t
lessee or other user is no longer an Owner or Occupant of the Unit,
regardless of any agreement to the contrary. The Owner shall give the
Association advance written notice of any lease or use agreement with
respect to such Owner's Storage Locker, and shall provide a copy of
the lease or use agreement to the Association upon its request.
(e)_ The security interest of a secured party holding a first lien on a Unit
shall include the license from the Association or Declarant to any
Storage Locker that is assigned to the Unit, and the rights shall be
included within the secured party's interest acquired if the lien or other
security interest is foreclosed against the Unit.
(f) Any license, lease, rental, assignment, transfer or purported transfer,
whether voluntary or involuntary, of any interest in a Storage Locker in
violation of this Subsection shall be void.
(g) The use of Storage Lockers, and the size and types of materials which
may be kept in the Storage Lockers, are subject to Rules and
Regulations.
(h) Storage Lockers shall be used only by Owners and Occupants of Units,
then tenants and social guests; provided, however, that Declarant shall
be entitled to use any unassigned Storage Locker for a period of six (6)
months after the last Unit is conveyed to an Owner other than
Declarant.
(i) Any Storage Locker not assigned six (6) months after the last Unit
owned by Declarant has been conveyed will be assigned to the
Association. The Association may hold or reassign the license to, or
rent, a Storage Locker assigned to it in the same manner as an Owner.
4.5 Restriction on Renting or Leasing of Units. Leasing of Units shall be allowed,
subject to reasonable regulation by the Association, and subject to the following terms and
conditions:
4.5.1 Except for a Unit acquired by a mortgagee taking title through
foreclosure or a deed in lieu of foreclosure, a Unit must be leased for a minimum term
of six (6) inonths.
4.5.2 A Unit must be leased in its entirety (not by room); provided, however,
that an Owner shall be permitted to lease to roommates at its discretion.
4.5.3 All leases must be in writing.
4.5.4 No more than fifteen percent (15%) of the Units may be leased at any
given time, provided, however that the Association may grant exemptions to this.
i
15
limitation for extenuating circumstances consistent with Subsection 4.5.6.
4.5.5 All leases must provide that they are subject to this Declaration, the
Articles of Incorporation, the Bylaws, the Rules and Regulations, the REA's and the
Act, and that any failure of the lessee to comply with the terms of such documents
shall be a default under the lease.
4.5.6 The Association may grant exemptions to the restrictions set forth in
this Section 4.5 to an Owner, upon written application by the Owner, under the
following circumstances:
(a) An Owner who is transferred out of the Minneapolis/St. Paul
metropolitan area by the Owner's employer, and who has a reasonable basis to
believe that he or she will reoccupy the Unit within two years following the
date of transfer, may lease the Unit during the two-year absence period.
However, if the Owner does not return and reoccupy the Unit within the
specified time period, then the Owner must undertake to sell the Unit,
including listing the Unit for sale with a licensed real estate broker at a,market-
competitive price, promptly upon the request of the Association.
(b) An Owner who has been accepted for an educational program
sponsored by a recognized educational institution, or who has been granted a
sabbatical leave for educational purposes that will take the Owner out of the
Minneapolis/St. Paul metropolitan area, and who has a reasonable- basis to
believe that he or she will reoccupy the Unit within two years following the
date of departure, may lease the Unit during the two-year absence period.
However, if the Owner does not return and reoccupy the Unit within the
specified time period, the Owner must undertake to sell the Unit, including
listing the Unit for sale with a licensed real estate broker at a market -
competitive price, promptly upon the request of the Association.
(c) An Owner who has a medical emergency, or who is the primary
caregiver for another individual who has a medical emergency, who must
leave the Minneapolis/St. Paul metropolitan area in order to take care of the
medical or care emergency, and who has a reasonable basis to believe that he
or she will reoccupy the Unit within six months following the date of
departure, may lease the Unit during; the six-month absence period. However,
if the Owner does not return within tho specified time period, then the Owner
must undertake to sell the Unit, including listing the Unit for sale with a
licensed real estate broker at a market -competitive price, promptly upon the
request of the Association.
(d) An Owner who is a member of the United States military
services, who is transferred out of the Minneapolis/St. Paul metropolitan area
by reason of such service, and who has a reasonable basis to believe that he or
16
she will reoccupy the Unit within two years following the date of transfer, may
lease the Unit during the two-year absence period. However, if the Owner
does not return and reoccupy the Unit within the specified time period, then
the Owner must undertake to sell the Unit, including listing the Unit for sale
with a licensed real estate broker at a market -competitive price, promptly upon
request of the Association.
(e) The Board may grant additional exemptions to the leasing
restrictions for similar circumstances and upon written request. The Board
may also require that the Owner sign an agreement prior to departure that
describes the conditions for leasing the Unit.
4.5.7 Any permitted lease authorized under this Section 4.5 shall be subject
to the following conditions: (i) the Unit shall not be leased for transient or hotel
purposes or for a period less than six months; (ii) the Unit shall not be subleased; (iii)
the lease shall be in writing; (iv) the tenant who has the legal right to possess the Unit
shall have the right to use any common facilities, parking, and any other amenities in
lieu of the Owner and the Owner's family; (v) the lease must terminate within thirty
(30) days of a sale or other conveyance of the Owner's interest in the Unit; (vi) the
lease shall provide that it is subject to the governing documents of the Association
and the Act, and any failure by the lessee to comply with the terms of such documents
shall be a default under the lease that may be enforced by the Association; and (vii)
no Unit shall be leased to anyone who has had a prior history of destructive behavior
in an earlier residence; who has been convicted of a felony during the last five years
for crimes of theft, breaking and entering, burglary, property vandalism, or similar
crimes against property, or assault, battery, rape, criminal sexual conduct, homicide or
other crimes against a person; who has persistently disrupted or breached the peace;
or, who has persistently failed to meet financial obligations.
Owners shall be permitted to lease Units pursuant to Subsection 4.5.4 on a first
request basis. The Association shall keep a. register of Units that are leased pursuant to
Subsection 4.5.4 and shall prohibit any lease that causes more than fifteen percent (15%) of
the Units to be non -Owner occupied at any given time (excluding from the 15% cap any
lease authorized by the Association pursuant to Subsection 4.5.6) The Association may
impose such reasonable Rules and Regulations as may be necessary to implement procedures
for leasing Units consistent with this Section 4.5 and applicable law, including but not
limited to a requirement for the screening of tenants through a reputable, professional
screening organization, provided such screening does not violate federal, state or local
discrimination laws.
4.6 Restrictions on Alienation of Units. There are no restrictions on the alienation
of Units by reason of age, race, sex or religion.
4.7 Impairment of Structural Integrity of Unit or Building and Impairment of
Sound Transmission Standards. Nothing shall be done, placed, installed, or erected in any
17
Unit or in, upon or to the Common Elements (including the walls, ceilings and floors of any
Unit) without the prior written authorization of the Board, in accordance with the
requirements described in Section 4. 10, which would (i) impair the structural integrity of the
improvements, (ii) structurally change the improvements (including but not limited to the
consolidation of one or more Units by removing demising walls or the division of any
combined Units by installing demising walls), or (iii) reduce the noise reduction properties of
- those structures, including installing or hanging speakers or other noise emitting devices.
4.8 Improvements. Except as expressly permitted by this Declaration, no
modifications, improvements, repairs or replacements of any type, temporary or permanent,
structural, aesthetic or otherwise (collectively referred to as "improvements"), including but
not limited to, any structure, building, addition, balcony, wall, enclosure, window, sign,
display, color change, shrubbery, material topographical or landscaping change, shall be
made, or caused or allowed to be made, by any Owner or Occupant, or their invitees, in any
part of the. Common Elements, or in any part of the Unit which affects the Common
Elements or another Unit, or which is visible from the exterior of the Unit, without the prior
written authorization of the Board, or an architectural committee appointed by it. No Board
approval shall be required for non-structural changes to Units that cannot be seen from the
exterior of a Unit including, but not limited to, carpeting, painting and decorating.
4.9 Architectural Committee. The Board may appoint, supervise and establish an
architectural committee, and specifically delegate to it part or all of the functions which the
Board exercises under this Article 4, in which case the references to the Board shall refer to
the architectural committee where appropriate. The architectural committee shall be subject
to the supervision of the Board.
4.10 Improvement and Installation Procedures. The Board shall have authority to
establish reasonable procedures for applying for authorization for improvements and
installations described in Sections 4.$.. and 4.9, and reasonable requirements for
improvements and installations, and shall be the sole judge of whether the criteria are
satisfied, subject to any restrictions imposed by any applicable governmental laws, codes,
ordinances or regulations, historical district standards, and this Declaration. The Board shall
hire a sound consultant who is a member of the National Counsel of Acoustical Consultants
(NCAC), at the sole expense of the Owner requesting to make any structural alterations or
installations described in Section 4.8(iii), to assess whether the proposed alterations or
installations will materially reduce the sound transmission quality of demising wall, corridor,
floor or ceiling assemblies as origin-elly designed. If such consultant determines that the
proposed alterations or installations are likely to reduce the sound transmission quality of (i)
demising wall, floor or ceiling assemblies to below a field Sound Transmission Class (STC)
rating of 58, or (ii) floor and ceiling assemblies within a'10' by 12' room to below a field
Impact Insulation Class (IIC) rating of 58, then the sound transmission quality shall be
deemed materially reduced and the Board shall not approve the requested alterations or
installations.
4.11 Purpose of Architectural Requirements. The purpose of the requirements
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1
established by the Board shall be (i) to preserve the architecturalstyle, the quality and the
value of the Subject Property; and (ii) to protect the Association and the Owners from undue
liability arising out of the improvements or any construction activity in connection therewith.
4.12 Appurtenant Easements. Approval of improvements which encroach upon
another .Unit or the Common Elements shall create an appurtenant easement for such
encroachment in favor of the Unit with respect to which the improvements are approved,
notwithstanding any contrary requirement in the Governing Documents or the Act. A file of
the Board or committee resolutions approving all improvements shall be maintained
permanently as a part of the Association's records.
4.13 Construction Standards. An Owner who causes an improvement to be made,
regardless of whether the improvement is approved by the Board, shall be solely responsible
for the construction standards and specifications relating to the improvement, and for the
construction work. The Owner, and not the Association, is responsible for determining
whether any improvement is in compliance with any requirements imposed by any
governmental authority having jurisdiction over the Subject Property. The Owner shall hold
harmless, indemnify and defend the Association, and its officers and directors, from and
against any expenses, claims, damages, losses or other liabilities, including, without
limitation, attorneys' fees and costs of litigation arising out of (i) any improvement which
violates any governmental laws, codes, ordinances or regulations; (ii) the inadequacy of the
specifications for construction of the improvements; (iii) defects in the construction of the
improvements; or (iv) any improvements which negatively affect the use of any other Unit or
the Common Elements.
4.14 Miscellaneous. This Article 4 shall not apply to improvements to Units owned
by Declarant prior to initial conveyance to a Purchaser.
4.1.5 Indemnification for Unit or Common Element Alterations, The Board shall
require that an Owner intending to make structural alterations to the Common Elements,
Limited Common Elements or the Owner's Unit, which have been first approved by the
Board, furnish the Association with adequate assurances that such Owner will indemnify,
defend and hold harmless the Association, the Board, members of the Board, officers of the
Association or employees or agent of any thereof, the Hotel owner and operator, their
officers, employees and agents, and other Owners from mechanics' liens or other claims
arising from structural alterations or modifications of the Units or Common Elements. The
Board may require that an Owner provide a deposit, performance bond or other assurance
that any removed or altered Common Element will be repaired at{d restored as required by
the Board. The Board shall have the right to complete, pay for and assess the Unit and the
Owner for any alterations commenced but not completed.
4.16 Pets. The policy of the Condominium with respect to pets shall be as from
time to time established in the Rules and Regulations, and subject to the following
conditions: (i) pets may live only in a Unit (not in Garage Stalls or elsewhere); (ii) only
dogs, cats, and aquarium fish are permitted; (iii) no more than 1 (one) dog or 2 (two) cats
19
may occupy any Unit at any given time; (iv) there may never be more than two (2) domestic
animals occupying any Unit at any given time; (v) no noise or odor may be heard or noticed
at any time outside of the Unit housing a household pet pursuant to this Section 4.16; and (vi)
breeds known to be aggressive, as determined by the Board, are not permitted. The Board i
can require removal if the above restrictions or the Rules and Regulations are not followed.
I
4.17 Home Occupations. Prohibited Activities and Signs. _ _Except as otherwise
permitted by Subsection 4.4.1, no business activity, trade, or occupation of any kind shall be
i
conducted, maintained or permitted on any part of the Condominium. i
4.18 Rules and Regulations. In addition to the foregoing restrictions, conditions
and covenants. concerning the use of the Condominium, reasonable Rules and Regulations J
that do not conflict with and are supplementary to this Declaration, may be promulgated and
amended from time to time by the Board. Copies of such Rules and Regulations and i
amendments thereto shall be furnished by the Association to each Owner.
4.19 Restrictions, Conditions and Covenants to Run With Land. Each grantee of
Declarant, by the acceptance of a deed of conveyance, and each Owner who acquires such
interest hereafter, accepts such deed or such interest, as the case may be, subject to all
restrictions, conditions, covenants, reservations, liens and charges, and the jurisdiction, rights
and powers created or reserved by this Declaration, and all rights, benefits and privileges of
every character hereby granted, created, reserved or declared, and all impositions and
obligations hereby imposed shall be deemed and taken to be covenants running with the land,
and shall bind any person having, at any time, any interest or estate in the land, and shall
inure to the benefit of the Owner in like manner as though the provisions of this Declaration
were recited and stipulated at length in each and every deed or other conveyance. The
Association shall ensure that the Subject Property and all structures and improvements upon
the Subject Property are constructed and maintained in compliance with all permits, zoning
ordinances and other applicable regulations.
4.20 Non -Waiver of Covenants. No covenants, restrictions, conditions, obligations
or provisions contained in this Declaration shall be deemed to have been abrogated or waived
by reason of any failure to enforce the same, irrespective of the number of violations or
breaches which may occur.
4.21 Restriction on Number of Occupants. The maximum number of residents
living in each Unit shall be in compliance with all applicable federal, state and local laws
including, but not liny,ited to, all applicable zoning ordinances.
4.22 Resale Restrictions. Purchasers of Units from Declarant are prohibited from
listing their Unit for resale with any broker or otherwise advertising, promoting. or
publicizing the, availability of his or her Unit for sale until the earlier of (i) one year after the
effective date of the closing on the Unit, or (ii) the point that all Units in the Condominium
have been sold by Declarant to Purchasers other than Declarant.
4.23 Termination. The procedures that the Association and the Owners must follow
20
in the event of a decision to terminate the Condominium, except in the case of a taking of all
the Units by eminent domain, are set forth in Section 51513.2-119 of the Act and shall be
complied with by the Association.
ARTICLE 5. Management, Maintenance, Repairs,
Alterations and Improvements
5.1 Common Elements and Limited Common Elements. Except to the extent
otherwise provided in Section 51513.3-113 of the Act, but as provided in Section 51513.3-107
thereof, the Association (as determined by the Board) shall be responsible for the
maintenance, repair, alteration, improvements and replacement of the Common Elements,
and, to the extent determined appropriate by the Board, the Limited Common Elements.
5.2 Units. Except to the extent otherwise provided in Section 51513.3-113 of the
Act, but as provided in Section 51513.3-107 thereof, each Owner is responsible for the
maintenance, repair, alteration, improvement and replacement of that Owner's Unit and,
except to the extent determined by the Board, for the Limited Common Elements allocated to
such Unit. Members shall perform their responsibilities in such manner as not to disturb
other Owners; shall not impair any easement; shall comply with the Rules and Regulations,
Bylaws, Articles of Incorporation, Declaration and REA's; shall promptly report to the
Association any defect or need for repairs to the Common Elements; shall not do anything
that will or might jeopardize or impair the safety and/or soundness of any of the
improvements or equipment without the prior written consent of the Board of Directors,
which consent may be withheld for any reason. If any Owner fails to perform appropriate
maintenance, then the Association will have the right to enter upon the Unit to perform
maintenance, and the cost thereof will be charged to the Owner.
5.3 Damage. If damage is inflicted on the Common Elements or any Unit by an
Owner or his or her tenants, guests, agents, or assigns, the Owner is liable at his or her
expense for the prompt repair thereof except as provided in Section 5.4.
5.4 Waiver of Claims. Anything herein to the contrary notwithstanding, the
Association agrees that it shall make no claim against Hotel owner or operator, any Owner or
Occupant, and each Owner and Occupant agrees to make no claim against the Association,
the Board or members of the Board, officers of the Association, or employees or agents of
any thereof, or against the property manager or its officers, employees or agents, or other
Owners or Occupants or, its officers, employees. or agents for any loss or damage to the
Condominium, or to a Unit or personal property, toren if caused by the act or neglect of any
one or more of such persons, due to a peril insured against by casualty insurance purchased
by the Association, or any Owners to the extent of the insurance proceeds recovered under all
such policies of insurance, and all such claims, to the extent of such recovery, are hereby
waived and released; provided, however, that this waiver shall not apply to vandalism or
malicious mischief and shall apply only during such time as the applicable policy or policies
shall contain a clause or endorsement to the effect that any such release shall not adversely
affect or impair the policy or policies, or prejudice the right of the insured to recover
21
thereunder, and each Owner and the Board agree that their respective insurance policies shall
contain such a clause or endorsement, if available at reasonable cost in the opinion of the
party insured thereunder. The Board shall have the right to determine who shall pay the
deductible portion not covered by insurance.
5.5 Mechanics' Liens. Before the commencement of any construction, alteration,
modification, remodeling, or renovation of any portion of.the Condominium, or any other
i activity which may give rise to mechanics' liens or other claims, the Association may require
the Owner or Owners involved to post a bond in favor of the Association, Hotel owner and
operator, and other uninvolved Owners equal to one hundred twenty-five percent (125%) of
the estimated cost of completion, which bond shall indemnify the Association and other
uninvolved Owners against any such mechanics' liens or other claims.
5.6 Owner Obligated to Pay. Section 5.5 notwithstanding, the Owner or -Owners
so involved shall promptly pay for all material, equipment, and labor used in any such
construction, alteration, modification, remodeling, renovation, or other activity and in any
event shall so pay therefor within thirty (30) days of the filing of any mechanic's lien or
other claim; provided, however, that if any such Owner or Owners choose to contest the
validity of such lien or claim, the Association may require such Owner or Owners to post a
bond (assuming that no other similar bond is then in effect) in favor of the Association and
other uninvolved Owners equal to one hundred twenty-five percent (125%) of the amount
claimed by the holder of such lien or claim, which bond shall indemnify the Association and
other non-involved Owners against such lien or claim.
ARTICLE 6. Assessments and Liens for Assessments
Assessments against the Owners shall be levied by a majority vote of the Board and
paid by the Owners to the Association in accordance with the following provisions:
6.1 Obligation for Assessments. Each Owner of any Unit, by acceptance of a deed
therefor, whether or not it shall be so expressed in such deed, is deemed to covenant and
agree to pay to the Association, commencing on the date of delivery of the deed: (i) annual
assessments or charges; and (ii) special assessments for capital improvements, such
assessments to be established and collected as hereinafter -provided. The annual and special
assessments, together with interest, costs, and reasonable attorneys' fees, shall be a charge on
the land and shall be a continuing lien upon the Unit against which each such assessment is
made. Each such assessment, together with interest, costs, and reasonable attorneys' fees,
shall also become the personal obligation of the Owner at the time the assessment becomes
due. The personal obligation for delinquent assessments shall not pass to such Owner's
sticcessors in title, unless expressly assumed by them. Assessments against all Units shall be
levied at the time of the conveyance of a Unit to an Owner other than Declarant unless
Declarant chooses to delay levying an assessment, subject to the Association's right to assess
certain Common Expenses against only the Units benefited as provided in Section 6.2.
Except as otherwise permitted by this Declaration or by the Act, assessments shall be
allocated among the Owners based on the percentages set forth on Exhibit B attached hereto.
22
The Association shall give Members at least ten (14) days prior written notice of the
assessment due for the following month. The failure or delay of the Board to send notice to
each Member as provided above shall not constitute a waiver or release in any manner of the
Member's obligation to pay the assessment whenever it shall be determined, and in the
absence of any notice each Member shall continue to pay the monthly assessment at the then
existing monthly rate until such Member has receipt of the assessment amount.
6.2 Assessments Against Fewer Than All Units, The Association may assess any
Common Expense benefiting fewer than all of the Units against the Units benefited. In that
case, the Common Expense shall be allocated among all of the Units benefited by such
Common Expense as provided in Section 515B.3 -115(h)(2) of the Act. Any Common
Expense associated with the maintenance, repair or replacement of a Limited Common
Element shall be assessed against the Unit or Units to which that Limited Common Element
was assigned at the time the expense was incurred as provided in Section 515B.3 -115(h)(1)
of the Act.
6.3 Annual Assessment. The annual assessment shall be established by the Board
in accordance with the provisions of this Article 6.
6.4 Special Assessments. In addition to the annual assessments levied as provided
in this Article 6, the Board may, in its discretion, levy special assessments at such other and
additional times as, in its judgment, are required for the proper management, maintenance,
repair and operation of the Condominium.
6.5 Assessment Rate. Except as otherwise permitted by the Act or this
Declaration, both annual and special assessments shall be assessed among the Units based on
the percentages set forth on Exhibit B attached hereto and may be collected on a monthly
basis, provided, however, that assessments arising out of the negligence or nonperformance
of any obligation of an Owner shall be for additional nonuniform amounts and shall be
immediately due in full from the Owner. In addition, upon determination by the Board, the
costs of insurance may be assessed in proportion to risk or coverage of the Unit being
assessed. All other costs shall be assessed against all Units.
6.6 Lien for Unpaid Assessments Interest and Late Fees. All assessments, both
annual and special, shall become a lien upon a Unit on the date the assessment or the
installment of an assessment becomes due, or if the assessment is not payable in installments,
then on the date the Board determines the assessment is due and payable. The lien for all
unpaid assessments shall incluc :A interest, costs, receiver's fees, collection fees, filing fees,
reasonable attorneys' fees and late fees.
6.7 Priority of Lien` Purchaser at Foreclosure Sale Not Liable for Certain Unpaid
Assessments; Association Responsible for Certain Unpaid Assessments. The lien for
assessments is prior to all other liens and encumbrances on the Unit except (i) liens and
encumbrances recorded before the recording of the Declaration; (ii) any recorded mortgage
on the Unit securing a first mortgage; and (iii) liens for real estate taxes and other
governmental assessments or charges against the Unit; provided, however, that if a first
23
mortgage on a Unit is foreclosed and no Owner redeems during the period of redemption
provided by Minnesota Statutes Chapters 580, 581, or 582, then
(a) the holder of the sheriff's certificate of sale from the foreclosure
of the first mortgage shall take title to the Unit subject to a lien in favor of the
Association for unpaid assessments for Common Expenses levied pursuant to
Sections 515B.3=1 15(a), (e)(1) to (3), (f) and (i) of the Act, which became due,
without acceleration, during the six (6) months immediately preceding the first
day following the end of the Owner's period of redemption, and
(b) any unpaid assessments for Common Expenses levied pursuant
to Sections 515B.3 -115(e)(4) and (g) of the Act, which became due, without
acceleration,_ at any time, and any unpaid assessments for Common Expenses
levied pursuant to Sections 515B.3-115(4), (e)(1) to (3), (f) and (i) of the Act,
which became due at any time prior to the date six (6) months immediately
preceding the first day following the end of the Owner's period of redemption
shall thereupon be spread over and become a lien on all Units subject to
assessments in proportion to their Common Expense liability.
Any such sale or transfer pursuant to foreclosure shall not relieve the Purchaser or
transferee of a Unit or the Unit itself from liability for the lien of any assessment made
thereafter. This provision does not affect the priority of mechanics' or materialmen's liens.
Nees, late charges and interest charges pursuant to this Declaration are enforceable as
assessments.
6.8 Preparation of Proposed Budget and Levying of Assessment. Each year, prior
to the beginning of the Association's fiscal year, the Board shall estimate the total amount
necessary to pay the Common Expenses during the next fiscal year together with the
reasonable amount considered by the Board to be necessary for reserves for such things as
maintenance, alterations and improvements, reconstruction and repair, and emergencies. At
least thirty (30) days prior to the beginning of the Association's fiscal year, the Board shall
provide or mail to each Owner the amount of the assessment that Owner shall pay in the next
fiscal year.
6.4 Payment of Assessments. All sums assessed by the Association for annual
assessments shall be payable monthly, except as determined by the Board, and special
assessments allocable to any Unit shall be payable monthly or as designated by the Board.
Except as otherwise provided by the. Board, following the .levying of an assessment as
provided in Section 6.8, on the first of each and every month of each fiscal year thereafter,
each Member shall be obligated to pay to the Association, one -twelfth (1/12) of the
assessment levied.
6.10 Failure to Prepare Annual Budget and Levy Annual Assessments. The failure
or delay of the Board to prepare the proposed annual budget and to levy assessments upon
each Member as provided above. shall not constitute a waiver or release in any manner of
such Member's obligation to pay annual assessments 'whenever the same shall be
24
1
determined, and in the absence of any annual budget, each. Member shall continue to -pay the
monthly assessment at the then existing monthly rate until such Member has received notice
of the new annual or special assessment levied.
6.11 Late Fees and Interest on Unpaid Assessments; Acceleration. All assessments
and installments not paid on or before the date when due shall bear a late fee determined by
the Board from time to time. In addition, an additional late fee shall be assessed for each
month thereafter that such fee is late. All payments upon account shall be applied first to any
penalty, and then to the assessment payment first due. This provision applies to both annual
and special assessments. If any installment of an assessment, whether annual or special,
becomes more than sixty (60) days past due, then the Board may, upon ten (10) days' written
notice to the Owner, declare the entire amount of the assessment immediately due and
payable in full.
6.12 Assessment Roll Available for Inspection. The assessments against all Units
shall be set forth upon a roll of the Units which shall be available in the office of the
Association for inspection at all reasonable times by Members or their duty authorized
representatives. Such roll shall indicate for each Unit the name and address of the Member,
the assessments for all purposes, and the amounts of all assessments paid and unpaid. A
certificate made by the Association as to the status of a Member's assessment account shall
limit the liability of any person for whom such certificate is made. The Association shall
issue such certificates to such persons as a Member may authorize in writing.
6.13 No Exception or Waiver of Payment of Assessments. No Member shall be
exempt from liability for contributions towards the Common Expenses by waiver of the
Member's use or enjoyment of (i) the Common Elements; (ii) any portion of the Member's
Unit; (iii) by the abandonment of the Member's Unit, or any other improvement; or (iv)
I
amenities, rights and services provided to the Condominium in the REA's.
i
6.14 Foreclosure of Lien. The Association's lien maybe foreclosed as provided by
laws of the State of Minnesota as if it were a lien under a mortgage containing a power of
sale. The rights of the parties shall be the same as those provided by the law except that
(i) the period of redemption shall be six (6) months from the date of sale or a lesser period
authorized by law; (ii) in a foreclosure by advertisement under Minnesota Statutes
Chapter 580, the foreclosing party shall be entitled to costs and disbursements of foreclosure,
and attorneys' fees in the amount provided by Minnesota Statutes Section 582.01, Subd. I a;
(iii) in a foreclosure by action under Minnesota Statutes Chapter 581, the foreclosing party
shall be entitled to costs and disbursements of foreclosure and attorneys' fees as the court
may determine; and (iv) the amount of the Association's lien shall be deemed to be adequate
consideration for the Unit subject to foreclosure, notwithstanding the value of the Unit.
6.15 No Further Perfection or Notice Required. The recording of this Declaration
constitutes record notice and perfection of the lien and no further recording of any claimed
lien for assessment is required.
6.16 Adequate Reserve Fund. Assessments for Common Expenses shall include an
25
adequate reserve fund for maintenance, repairs and replacement of those Common Elements
(including Limited Common Elements) that must be replaced on a periodic basis, and shall
be payable in regular installments rather than by special assessments.
6.17 Working Capital Fund. A segregated working capital fund equal to at least
two (2) months' estimated Common Expenses per Unit shall be established to ensure that the
Association will have cash available during the initial months of the Condominium's - -
existence. The contribution to the working capital fund required from each Unit shall be
made by the Purchaser at the time of closing of the sale of that Unit from Declarant.
Declarant shall be permitted to use the working capital funds to offset any operating deficits
incurred by the Association during the Declarant Control Period; provided, however, that
Declarant shall treat working capital fund deficits as "operating deficits" that must be made
up by Declarant at the termination of the Declarant Control Period, as required by Section
6.18.
6.18 Alternative Assessment Program. Declarant hereby establishes an alternative
assessment program as permitted by Section 5158.3-115(a)(2)(i) of the Act.. Specifically, if
a Common Expense assessment has been levied, any Unit owned by Declarant shall be
assessed at the rate of twenty-five percent (25%) of the assessment that would otherwise be
levied on such Unit (exclusive of replacement reserves) until a certificate of occupancy has
been issued with respect to such Unit by the City of Edina. Thereafter, such Unit shall be
assessed at the full rate. This reduced assessment shall apply to each Unit . owned by
Declarant, and shall continue as to each such Unit until the issuance of the certificate of
occupancy as previously described. There are no assurances that this alternative assessment
program will have no effect on the level of services for items set forth in the Association's
budget. Notwithstanding the foregoing, that part of any assessment that is allocated to
replacement reserves referred to in Section 515B.3-114 of the Act shall be fully levied
against a Unit, including any Unit owned by Declarant, no later than the date that the Unit is
substantially completed. Declarant shall, within sixty (60) days following the termination of
the Declarant Control Period, make up any operating deficit incurred by the Association
during the Declarant Control Period.
ARTICLE 7. Insurance and Eminent Domain
. 7.1 Required Coverage. The Association shall obtain and maintain, at a minimum,
a master policy or policies of insurance in accordance with the insurance requirements set
forth in the Act and the additional requirements -,f�t forth herein, issued by a reputable
insurance company or companies authorized to do "Liusiness in the state of Minnesota, as
follows:
7.1.1 Property insurance in broad form covering all risks of physical loss in
an amount equal to one hundred percent of the insurable "replacement cost" of the
Subject Property, exclusive of: (i) deductibles; and (ii) land, footings, excavation and
other items normally excluded from coverage (but including all building service
equipment and machinery). The Association will not insure (a) ceiling or wall
I
26
finishing materials; (b) floor coverings; (c) cabinetry; (d) appliances; or (e) other_
improvements and betterments within the Units, regardless of when installed, unless
required to do so by FNMA, FHLMC, FHA or VA, as referred to hereafter. The
policy or policies shall cover personal property owned by the Association. The policy
or policies shall also contain "Inflation Guard" and "Agreed Amount" endorsements,
if available. Such policy or policies shall include such additional endorsements,
-
coveragesandlimits with respect to the foregoing and other hazards as may be
required from time to time by' the regulations of the Federal National Mortgage
Association ("FNMA" ),'the Federal Home Loan Mortgage Corporation ("FHLMC"),
the Federal Housing Administration ("FHA") or the Secretary of Veterans Affairs
("VA"), if required by one of such agencies as a precondition to their purchase,
financing, insuring or guarantee of a mortgage on a Unit. The Board may also, on
behalf of the Association, enter into binding written agreements with a mortgagee, or
insurer, guarantor, or servicer of a mortgage, obligating the Association to keep
certain specified coverages or endorsements in effect.
7.1.2 Commercial general liability insurance covering the ownership, use,
operation and maintenance of the Common Elements, with minimum limits of One
Million Dollars ($1,000,000) per occurrence, against claims for death, bodily injury
and property damage, and such other risks as are customarily covered by such policies
for projects similar in construction, location and use to the Subject Property. The
policy shall contain a "severability of interest" endorsement that shall preclude the
insurer from denying the claim of an Owner or Owners because of negligent acts of
the Association or another Owner or Owners. The policy shall include additional
endorsements, coverages and limits necessary to comply with the regulations of
FNMA, FHLMC, FHA or VA, if required by one of such agencies as a precondition
to the purchase, financing, insuring or guarantee of a mortgage on a Unit.
.7.1.3 Fidelity bond or insurance coverage against dishonest acts on the purt
of directors, officers, managers, trustees, employees or persons responsible for
handling funds belonging to or administered by the Association, if deemed to be
advisable by the Board or required by the regulations of any financing -related
institution as a precondition to the purchase, insuring, guarantee, or financing of a
mortgage on a Unit. The fidelity bond or insurance shall name the Association as the
named insured, and shall comply with the regulations of FNMA, FHLMC, FHA or
VA, if required by one of such agencies as a precondition to the purchase, financing,
inuring, or guarantee of a mortgage on a Unit. An appropriate endorsemerst.to the
policy to cover any persons who serve without compensation shall be added if the
policy would not otherwise cover volunteers, or a waiver of defense based uporr the
exclusion of persons serving without compensation shall be added.
7.1.4 Workers' Compensation insurance as applicable and required by law.
7.1.5 Directors' and officers' liability insurance with such reasonable limits
and coverages as the Board shall determine from time to time.
27
7.1.6 Such other insurance as the. Board may determine from time to time to
be in the best interests of the Association and the Owners.
7.2 Premiums; Improvements; Deductibles. Except as provided in Section 6.5, all
insurance premiums shall be assessed and paid as an annual assessment. If the Owners' F
improvements and betterments to the Units are covered, any increased cost may be assessed
against the Units affected., In the case of a _claim for damage to a Unit or Units, the
Association may, as authorized by Section 515B.3 -115(b) of the Act, (i) pay the deductible
amount as a Common Expense; (ii) assess the deductible amount against one or more of the
Units affected in any reasonable manner; or (iii) require the Owners of the Units affected to
pay the deductible amount directly. The Board's decision as to who shall be charged with
paying the deductible amount may, but need not, be based on fault.
7.3 Loss Payee; Insurance Trustee. All insurance coverage maintained by the
Association shall be written in the name of, and the proceeds thereof shall be payable to, the
Association (or a qualified insurance trustee selected by it) as trustee for the benefit of the
Owners and secured parties, including Mortgagees, which suffer loss. The Association, or
any insurance trustee selected by it, shall have exclusive authority to negotiate, settle and
collect upon any claims or losses under any insurance policy maintained by the Association.
7.4 Required Policy Provisions. All policies of property insurance carried by the
Association shall provide that:
7.4.1 Each Owner and secured party is an insured person under the policy
with respect to liability arising out of the Owner's interest in the Common Elements
or membership in the Association.
7.4.2 The insurer waives its right to subrogation under the policy against any
Owner or member of the Owner's household and against the Association and
members of the Board.
7.4.3 The coverage shall not be voided by or conditioned upon (i) any act or
omission of an Owner or Mortgagee, unless acting within the scope of authority on
behalf of the Association; or (ii) any failure of the Association to comply with any
warranty or condition regarding any portion of the property over which the
Association has no control.
7.4.4 If at the time of a ::ass under the policy there is other insurance in the
name of an Owner covering r e same property covered by the policy, the
Association's policy is primary.
7.5 Cancellation: Notice of Loss. Property insurance and comprehensive liability
insurance policies maintained by the Association shall provide that the policies shall not be
canceled or substantially modified, for any reason, without at least thirty (30) days' prior
written notice to the Association and to all first Mortgagees.
28
7.6 Restoration in Lieu of Cash Settlement. Property 'insurance policies
maintained by the Association shall provide that, despite any provisions giving the insurer
the right to elect to restore damage in lieu of a cash settlement, such option shall not be
exercisable (i) without the prior written approval of the Association (or any insurance
trustee); or (ii) when in conflict with provisions of any insurance trust agreement to which
the Association may be a parry, or any requirement of law.
7.7 Owner's Personal Insurance. Each Owner is required to obtain additional
personal insurance coverage (commonly known as "gap coverage" or an "H06" policy) at
his or her own expense covering fire and other casualty to the interior of the Unit, personal
property and the Owner's personal liability. Insurance policies maintained by Owners are
without contribution as against the insurance purchased by the Association, except as to
deductible amounts or other items not covered under the Association's policies.
7.8 Required Insurance Not Available. If any insurance required hereunder ceases
to be available, or is available on terms so unacceptable that prudent owners of similar
commercial property generally do not carry such insurance, then in lieu of such insurance the
pertinent party may carry the most comparable insurance which is available and generally
carried by prudent parties.
7.9 Eminent Domain. The procedures that the Association must follow in the
event of a taking (or a purchase in lieu of a taking) of part or all of the Common Elements by
a condemning authority are set forth in Section 515B.1-107 of the Act and shall be complied
with by the Association. The Association shall represent the Owners in any condemnation
proceedings or in negotiations, settlements and agreements with the condemning authority
for acquisition of the Common Elements, or part thereof. Each Owner hereby grants the
Board an irrevocable power of attorney for such purpose. Any proceeds from the settlement
should be payable to the Association for the benefit of the Owners and their Mortgagees.
Any distribution of funds in connection with the termination of the Condominium must be
made on a reasonable and equitable basis to the Owners and Mortgagees as their interests
appear.
ARTICLE 8. Amendments to Declaration
8.1 Percentage of Owners. Except as expressly permitted. or required by the Act
or Articles 8 and 10, this Declaration may be amended by the Association only by a vote or
written agreement of Owners to which at least sixty-seven percent (67%) of the votes in the
Association are allocated. To the extent permitted by law, Galleria HoteiS LLC, a Minnesota
limited liability company and its successors and assigns, as owner of the Hoi;1, shall have the
right to veto any amendment or modification to the Governing Documents to the extent any
such amendment or modification affects the Hotel.
8.2 Recordation. Every Amendment to the Declaration shall be recorded in the
office of the Recording Officer, and is effective only when recorded.
8.3 Limitations. Except to the extent expressly permitted or required by the
29
provisions of Sections 51513.1-101 through 51513.4-118 of the Act, no amendment may
create or increase Special Declarant Rights; increase the number of Units, change the
Common Expense liability or voting strength in the Association, convert Common Elements
to Limited Common Elements, change the authorized use of a Unit from residential to
commercial or conversely, or change the boundaries of any Unit, in the absence of
unanimous written agreement of the Owners.
8.4 Alteration of Limited Common Elements. A reallocation of Limited Common
Elements shall not be permitted without the written agreement of the Owners to which the
Limited Common Elements are allocated. The reallocation shall be made in accordance with
Section 515B.2 -109(c) of the Act, which provides:
"An allocation of limited common elements may be changed by an
amendment to the declaration executed by the unit owners between or among
whose units the reallocation is made and the association. The amendment
shall be approved by the board of directors of the association as to form, and
compliance with the declaration and this chapter.- The association shall
establish fair and reasonable procedures and time frames for the submission
and processing of the reallocations, and shall maintain records thereof. If
approved, the association shall cause the amendment to be recorded promptly.
The amendment shall be effective when recorded. The association may
require the unit owners requesting the reallocation to pay all fees and costs for
reviewing, preparing and recording the amendment and any amended CIC
plat."
8.5 Secretary's Affidavit. An affidavit of the secretary of the Association stating
that the votes or agreements required by this Article 8 have occurred shall be attached to the
amendment and shall constitute prima facie evidence of the representations contained
therein.
ARTICLE 9. General Provisions
9.1 Interpretation of Declaration. This Declaration is set forth to comply with the
requirements of the Act. In the event of any conflict between this Declaration and the
provisions of the Act, the provisions of the Act shall control. In the event of any conflict
between the Declaration, Articles of Incorporation, Bylaws or Rules and Regulations, the
Declaration, then Articles of Incorporation, then Bylaws, then Rules and Regulations shall
control in that order. The provisions of this Declaration shall be liberally construed to
effectuate its purpose of creating a uniform plan for the ownership and operation of a
residential Condominium. Compound words beginning with -the prefix "here" shall be read
as refcrring to this Declaration and not merely to the part of it in which they. appear.
9.2 Examination of Records. Owners, lenders, and holders, insurers or guarantors
of any first mortgage shall be entitled to inspect current copies of the Declaration, the
Articles of Incorporation, the Bylaws, the Rules and Regulations and the books, records and
kill
financial statements of the Association upon request during normal business hours or under
other reasonable circumstances. Purchasers shall be entitled to inspect current copies of the
Governing Documents and the most recent annual audited financial statement, if such is
prepared. Any person or entity which has an interest or prospective interest in the
Condominium shall be entitled, upon written request, to have an audited financial statement
for the immediately preceding fiscal year prepared within a reasonable time, at the expense
of such person or entity.
9.3 Notices. All notices, objections, demands and other communications required
or permitted to be given or served under this Declaration shall be in writing and shall be
deemed to have been duly given if delivered in person or deposited in the United States mail,
postage prepaid, for mailing by certified or registered mail, return receipt requested, as
follows:
9.3.1 Member. In the case of each Member, to the Member's last address as
shown on the records of the Association;
9.3.2 Association. In the case of the Association, to its president or
management agent at the last address shown for such person on the records of the
Association, or if not obtainable, to its registered office in the State of Minnesota; or
9.3.3 Declarant. In the case of Declarant, to:
Galleria Condominiums, LLC
c/o Gabbert and Beck, Inc.
3510 Galleria
Edina, MN 55435.
-- 9.4 Successors and Assigns. This Declaration shall be binding upon and inure to
the benefit of the Association, its Members and Declarant, and their heirs, successors and
assigns; provided, however, except as provided in this Declaration, that none of the parties
shall assign any right or obligation hereunder in whole or in part, without the prior written
consent of each of the other parties hereto, and any attempt to do so shall be void.
9.5 Severable Provisions. Each provision of this Declaration is intended to be
severable. If any term or provision herein is illegal or invalid for any reason whatsoever,
such illegality or invalidity shall not affect the validity of the remainder of this Declaration.
9.6 11
Titles, Headings or Captions and Reference to Genderr. All titles, headings or
captions in the articles or sections of this Declaration are inserted for convenience of
reference only and shall not constitute a part of this ,Declaration or as a limitation of the
scope of the particular articles or sections to which they apply. The masculine gender may
be read as the feminine gender or the neuter gender, the neuter gender may be read as the
masculine gender or feminine gender and the feminine gender may be read as the masculine
gender or the neuter gender. Where appropriate the singular may be read as the plural and
the plural may be read as the singular.
31
9.7 Minor Revisions. Declarant reserves the right to make minor, non -material
changes to the Governing Documents, in order to comply with the requirements of its
mortgagees, the Recording Officer, and any change in the Act.
9.8 Minnesota Law to Govern. This Declaration shall be construed and enforced
in accordance with the laws of the State of Minnesota.
. 9.9 Association's Right of Entry. The Association shall have aright of entry upon
each Unit and the Limited Common Elements allocated to it at any time to effect emergency
repairs and, upon 24 hours advance notice, between the hoLirs of 9:00 a.m., and 5:00 p.m. to
effect other repairs, improvements, replacements or maintenance deemed necessary by the
Association.
9.10 Right of Action. Failure of any Owner or the Association to comply with the
provisions of this Declaration, the Articles of Incorporation, the Bylaws or the Rules. and
Regulations shall give rise to a cause of action by any aggrieved Owner or the Association.
ARTICLE 10. Provisions for Eligible Mortgagees
The following provisions shall take precedence over all other provisions of this
Declaration, and in the event of any inconsistency or contradiction, the following provisions
shall control:
10.1 No Right of First Refusal. The right of an Owner to sell, transfer, or otherwise
convey his or her Unit shall not be subject to any right of first refusal or similar restriction.
10.2 Approval of Eligible Mortgagees.
10.2.1 Unless at least sixty-seven percent (67%) of the voting power of the
Owners and at least fifty-one percent (51 %) of Eligible Mortgagees (based upon one
vote for each mortgage owned) and Owners (other than Declarant) have given their
consent, the Association shall not be entitled to materially amend any provision of
this Declaration or of the Association's Bylaws or add any material provisions thereto
which establishes, provides for, governs .or regulates any of the following:
(a) voting;
N assessments, assessment liens or the subordination of any such
lien;
(c) reserves for maintenance, repair, or replacement of the Common
Elements;
(d) insurance or fidelity bonds;
(e) rights to use the Common Elements;
32
(f) responsibility for maintenance or repair of any portion of the
Condominium;
(g) -expansion or contraction of the Condominium or the addition,
annexation or withdrawal of property to or from the Condominium;
(h) _ boundaries of any Unit;
(a) interests in the Common Elements or Limited Common
Elements;
(i) convertibility of Units into Common Elements or Common
Elements into Units;
0) leasing of Units;
(k) imposition of any right of first refusal or any similar restriction
on the right of an Owner to sell, transfer or convey in any other manner the
Owner's Unit;
(1) establishment of self-management by the Association where the
Association had previously been managed professionally.
10.2.2 Unless at least fifty-one percent (51%) of Eligible Mortgagees (based
upon one vote for each mortgage owned) have given their approval:
(a) any restoration or repair of the Condominium after partial
condemnation or damage due to an insurable hazard shall be substantially in
accordance with the Declaration and the original plans and specifications; and
(b) no reallocation of interests in the Common Elements resulting
from a partial condemnation or partial destruction of the Condominium may be
effected.
10.2.3 Unless at least eighty percent (80%) of the voting power of the Owners
and at least eighty percent (80%) of first Mortgagees (based upon one vote for each
mortgage owned) have given their consent:
(a) the Condominium cannot be t-Crminated; and
(b) the.legal form of the Condominium cannot be changed.
10.3 Notice to Eli ig ble Mortgagees. Eligible Mortgagees shall be entitled to timely
written notice of:
10.3.1 an proposed amendment of the
y p p governing documents effecting a
change in (i) the boundaries of any Unit or the exclusive easement rights appertaining
33
thereto; (ii) the interests in the Common Elements or Limited Common Elements
appertaining to any Unit or the liability for Common Expenses; (iii) the number of
votes in the Association appertaining to any Unit; or (iv) the purposes to which any
Unit or the Common Elements are / is restricted;
10.3.2 any proposed termination of the Condominium;
10.3.3 any condemnation loss or any casualty loss which affects a material
portion of the Condominium or which affects any Unit on which there is a first
mortgage held, insured or guaranteed by an Eligible Mortgagee;
10.3.4 any delinquency in the payment of assessments or charges owed by an
Owner of a Unit subject to the mortgage of an Eligible Mortgagee, insurer or
guarantor, where such delinquency has continued for a period of sixty (60) days; and
10.3.5 any lapse, cancellation or material modification of any insurance policy
maintained by the Association. j
10.4 Liens Prior to First Mortgage. All taxes, assessments and charges which may
become liens prior to any first mortgage on any Unit under local law, shall relate only to the
individual Unit and not to the Condominium project as a whole.
10.5 Rights to Condemnation Proceeds. No provision of the Condominium
constituent documents gives an Owner or any other party priority over any rights of the first
Mortgagee of the Unit pursuant to its mortgage in the case of condemnation awards for
losses or the taking of Units and/or Common Elements.
10.6 Amendments. Neither this Section 10.6 nor any of the provisions of this
Declaration or the Bylaws that are for the express benefit of holders or insurers of first
mortgages on Units shall be amended without the approval of at least sixty-seven percent
(67%) of the voting power of the Owners (other than Declarant) and the approval of least
fifty-one percent (51%) .of Eligible Mortgagees (based upon one vote for each mortgage
owned).
lb. us. 1305218.07
919
IN WITNESS WHEREOF, the undersigned has executed this Declaration as of the
day and year first above written.
STATE OF MINNESOTA
COUNTY OF �)
ss.
GALLERIA CONDOMINIUMS, LLC, a
Minnesota limited liability company
By: �� J���&cZc
Its:
The foregoing instrument was acknowledged before me this —I— day of
&b tZP 2001 by the -fi2*Xge f'�( t,r, p of Galleria
Condominiums, LLC, a Minnesota limited liability company, on behalf of the limited
liability company.
7kA
THIS INSTRUMENT WAS DRAFTED BY:
FAEGRE & BENSON LLP
Charles S. Ferrell/Lindsey A. Lange
2200 Wells Fargo Center
90 South Seventh Street
Minneapolis, Minnesota 55402-3901
Telephone: (612) 766-7000
35
w
3
---- --- --- --- -- ---------.-....-
t
COMMON INTEREST COMMUNITY NO. 1732
THE GALLERIA RESIDENCES
CONSENT BY MORTGAGEE TO DECLARATION
The undersigned (the "Mortgagee"), is a mortgagee of the real property described in the
Declaration for the Galleria Residences, Common Interest Community Number 1732 (the
"Declaration") by that certain Mortgage, Security Agreement and Fixture Financing Statement
(Westin Galleria Hotel and Residential Project) dated as of August 16, 2006, filed in the Office
of the Registrar of Titles of Hennepin County, Minnesota on December 28, 2006, as Document
No. 4341667, as amended by that certain Amendment to Mortgage and Severance and Splitting
Agreement dated October ,O, 2008, filed on&kpber 13, 2008 with the Office of the Registrar
of Titles of Hennepin County, Minnesota, as Document No. 465 3 (tQD 4 , and that certain
AmenKaWbject)
tated Mortgage, Security Agreement and Fixture Financing Statement (Westin
Galleridated October 1Q, 2008, filed on k,&htl'/3, 2008 with the Office of
the Registrar of Titles of Hennepin County, Minnesota, as Document No. 4-53 (k 907 (as
amended, the "Mortgage"). Mortgagee hereby consents to the Declaration attached hereto and
the CIC Plat, provided, that by consenting to the Declaration and the CIC Plat, the Mortgagee
does not in any manner constitute or obligate itself as a Declarant (as defined in the Declaration),
nor does such consent affect the Mortgage except as provided in the Act (as defined in the
Declaration); and provided, further, that the Mortgage shall be and remain a lien on the property
described therein, prior to any lien for assessments or other liens imposed under the Declaration
on any Unit subject to the Mortgage, until the Mortgage is satisfied or released.
IN WITNESS WHEREOF, the Mortgagee has caused this Consent to be executed on
thel�day of 2008.
DOUGHERTY FUNDING LLC, a Delaware
limited liaWAty cc ppany .
By: V41,1111—,
ames P. Mayer, it enior Vice President
STATE OF MINNESOTA )
)ss #7KATTIE . WELSCH
COUNTY UVIIENNEPIN ) Minnesota
, s Jan 31, 2013
INOVVVVVVV%evvvvvvvv%lvv�V%,,,lV\Allle~I
The forcgoing instrument was acknowledged before me this lv day of
2008, by :lames P. Mayer, the Senior Vice President of Dougherty Funding LLC, a Delaware
limited liability company on behalf of the company. i
I
�Nt Public
80714-0171763171
i
EXHIBIT A
TO
DECLARATION
THE GALLERIA RESIDENCES
COMMON INTEREST COMMUNITY NUMBER 1732
Subiect Property
Tracts B and D, Registered Land Survey No. 1792, Hennepin County, Minnesota.
A-1
EXHIBIT B
TO
I DECLARATION
THE GALLERIA RESIDENCES
COMMON INTEREST COMMUNITY NUMBER 1732
Allocation of Interest in Voting Power, Common Elements and Liability for Assessments
Unit
Approximate
Square Feet
% Voting Power, Common Expense Liability
and Undivided Interest in Common Elements
801
1582
1.19686%
802
2114
1.59935%
803
1260
0.95326%
804
1538
1.16357%
805
1200
0.90786%
806
1135
0.85868%
807
865
0.65442%
808
2130
1.61145%
901
1147
0.86776%
902
2114
1.59935%
903
1260
0.95326%
904
1538
1.16357%
905
1200
0.90786%
906
1135
0.85868%
907
865
0.65442%
908
2130
1.61145%
1001
1774
1.34212%
1002
2114
1.59935%
1003
1332
1.00772%
1004
1538
1.16357% T
1200
0.90786%
_1005
1006
1135
0.85868%
1007
865
0.65442%.
1008
2130
1.61145%
1101
1774
1.34212%
1 102
2114
1.59935%
1103
1332
1.00772%
B-1
Unit
Approximate
Square Feet
% Voting Power, Common Expense Liability,
and Undivided Interest in Common Elements
1104
1538
1.16357%
1105
1200
0.90786%
1106
1135
0.85868%
1107
865
0.65442%
1108
2130
1.61145%
1201
1774
1.34212%
1202
2114
1.59935%
1203
1332
1.00772%
1204
1538
1.16357%
1205
1200
0.90786%
1206
1135
0.85868%
1207
865
0.65442%
1208
2130
1.61145%
1301
1774
1.34212%
1302
2114
1.59935%
1303
1332
1.00772%
1304
1538
1.16357%
1305
1200
0.90786%
1306
1135
0.85868%
1307
865
0.65442%
1308
2130
1.61145%
1401
1774
1.34212%
1402
2114
1.59935%
1403
1332
1.00772%
1404
1538
1.16357%
1405
1200
0.90786%
1406
1135
0.85868%
1407
865
0.65442%
1408
2130
1.61145%
1501
1774.
1.34212%
1502
2114
1.59935%
1503
1332
1.00772%
1504
153$
1.16357%
1505
1200
0.90786%
1506
1135
0.85868%
1507
865
0.65442%
1508
2130
1.61145%
1601
1774
1.34212%
Unit
Approximate
Square Feet
Co Voting Power, Common Expense Liability,
and Undivided Interest in Common Elements
1602
2900
2.19400%
1603
1332
1.00772%
1604
1920
1.45258%
1605
2090
1.58119%
1608
2130
1.61145%
1701
1774
1.34212%
1702
2900
2.19400%
1703
1332
1.00772%
1704
1920
1.45258%
1705
2090
1.58119%
1708
2130
1.61145%
1801
1774
1.34212%
1802
2900
2.19400%
1803
1332
1.00772%
1804
1920
1.45258%
1805
2090
1.58119%
1808
2130
1.61145%
132,179
1,00.00%
B-3
EX14IBIT C
TO
DECLARATION
THE GALLERIA RESIDENCES
COMMON INTEREST COMMUNITY NUMBER 1732
Form of Certificate of Garage Stall Assi nment
Garage Stall No. is hereby assigned exclusively to
, the Owner of Unit No.
(the "Owner"), The Galleria Residences, Common Interest Community Number
1732, Hennepin County, Minnesota (the "Condominium"). Use of Garage Stall No.
is subject to the Declaration for the Condominium and the Articles of
Incorporation, the Bylaws and the Rules and Regulations of the Galleria Residences Owners'
Association, all as amended from time to time.
Owner
Date
Declarant
EXHIBIT D
TO
DECLARATION
THE GALLERIA RESIDENCES +w
COMMON INTEREST COMMUNITY NUMBER 1732
Form of Certificate of Storage Locker Assignment
Storage Locker No. is hereby assigned exclusively to
, the Owner of Unit No.
(the "Owner"), The Galleria Residences, Common Interest Community Number
1732, Hennepin County, Minnesota (the "Condominium"). Use of Storage Locker No.
is subject to the Declaration for the Condominium and the Articles of
Incorporation, the Bylaws and the Rules and Regulations of the Galleria Residences Owners'
Association, all as amended from time to time.
Owner
Date
D-1
Declarant
69TH
CIT CROSS
IN CURB
CUT CROSS
IN GUTTER
14AG NAUL
ST
1
I
( 1 �
55 65
I
m
P I ,
n - O
O 89° 4854'
10
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