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STATE OF MINNESOTA v� I,. I Ap� � � �� J UD1STKICT COURT
COUNTY OF HENNEPIN URTH,JUDICIAL DISTRICT
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In the Matter of, Litt: Condcmr�'4t� -ion,' �
by the City of Edina, Minnesota,
of Certain Land in Hennepin County FINAL CERTIFICATE
for Public Road and Storm Water IN CONDEMNATION
System
Case No. C -1563
• I, THOMAS S. ERICKSON, city attorney for the City
of Edina, petitioner herein, do hereby certify that an estate
in fee simple absolute has been taken by the petitioner in the
following described real property by eminent domain proceedings
pursuant to Minnesota Statutes, Chapter 117, for the purpose
of erecting a public road and storm water system:
Outlot 1, Heath Glen,- according to the plat there-
of on file and of record in the office of the Re-
gister of Deeds, in and for Hennepin County, Minnesota.
That on the 24th day of April, 1979, the above -named
court entered its order granting the petition for the taking of
such land and appointed commissioners to ascertain and report the
amount of damages sustained by the owners on account of sucn
taking; that the commissioners filed their award of damages for
the taking of such land; that no appeals have been filed with
the court; that all awards made by the commissioners have been
paid; and that all necessary proceedings for the taking of such
land are now completed in accordance with the provisions of
Minnesota Statl.ltes, Chapter 11.7. P
Dated at Minneapolis, Minnesota, this day of
November, 1979.
Subscribed and sworn to before
me this 9th day of November, 1979.
Notary Public
M ,nMMhM,AAAAM AA M
MARIT K. WI TER
Ir " NOTARY PUULIC i ih,,
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My Commission Expiros Oct. 24, 1965
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Y'l�omas S. lrick�on
City Attorney for the
City of Edina, Minnesota
2300 First National Bank Bldg.
Minneapolis, Minnesota 55402
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STATE OF MINNESOTA, COUNTY.,. ENNEPIN
Certified to be a true and Correc�'c- of the
original on;lile and of record in my office.
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OFFICE OF COUNTY rif CORDi.R M
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1979 NOV 14 AM If: 23
M i,,r421033
RECCRt;: a
T ITLE I NSURANCE COMPANY OF M INNESOTA
February 10, 1981 Z 089
Dorsey Law Firm
2300 First National Bank Bldg.
Minneapolis, MN 55402 FtECE''t
Attn: Barb Dulebohn FEB 10 1987
RE. T.D. 480059 - Braemer Assoc.
Documents indicated below are enclosed;
Abstract of Title No.
Owner's Policy No.
KX Mortgagee's Policy No. B1486741
Title Binder
Deed, Document No.
XX Mortgage, Document No. 4619599 (original)
Closing Statement
Tax Receipt No.
Satisfaction, Document No.
Assignment, Document No.
Mortgage Note No.
Hazard Insurance Policy No.
Check in the sum of $
Invoice
Yours very truly,
TITLE INSURANCE COMPANY OF MINNESOTA
BY: Barbara K. Korman
Assistant Secretary
BKK:jah
TIM Form 2058
HOME OFFICE: TITLE INSURANCE BUILDING* MINNEAPOLIS, MINNESOTA 0 (612) 371 -1111
w <, j POLICY NO-B1486741 z C1911
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AMERICAN LAND TITLE ASSOCIATION LOAN POLICY — 1970 Rev.
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°E° "`MeE� N„ TITLE INSURANCE COMPANY OF MINNESOTA
Ta Stock Company, of Minneapolis, Minnesota
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS CONTAINED IN SCHEDULE B AND
THE PROVISIONS OF THE CONDITIONS AND STIPULATIONS HEREOF,
TITLE INSURANCE COMPANY OF MINNESOTA, herein called the Company, insures, as of Date of Policy shown in
Schedule A, against loss or damage, not exceeding the amount of insurance stated in Schedule A, and costs, attorneys' fees and
expenses which the Company may become obligated to pay hereunder, sustained or incurred by the insured by reason of:
1. Title to the estate or interest described in Schedule A being vested otherwise than as stated therein;
2. Any defect in or lien or encumbrance on such title;
3. Lack of a right of access to and from the land;
4. Unmarketability of such title;
5. The invalidity or unen force ability of the lien of the insured mortgage upon said estate or interest except to the
extent that such invalidity or unen force ability, or claim thereof, arises out of the transaction evidenced by the
insured mortgage and is based upon
a. usury, or
b. any consumer credit protection or truth in lending law;
6. The priority of any lien or encumbrance over the lien of the insured mortgage;
7. Any statutory lien for labor or material which now has gained or hereafter may gain priority over the lien of the
insured mortgage, except any such lien arising from an improvement on the land contracted for and commenced
subsequent to Date of Policy not financed in whole or in part by proceeds of the indebtedness secured by the
insured mortgage which at Date of Policy the insured has advanced or is obligated to advance; or
8. The invalidity or unen force ability of any assignment, shown in Schedule A, of the insured mortgage or the failure
of said assignment to vest title to the insured mortgage in the named insured assignee free and clear of all liens.
IN WITNESS WHEREOF, the said Title Insurance Company of Minnesota has caused its corporate name and seal to be
hereunto affixed by its duly authorized officers as of the date shown in Schedule A, the policy to be valid when countersigned
by an authorized officer or agent of the Company.
TITLE INSURANCE COMPANY OF MINNESOTA
President
Countersigned:
Secretary
Authorized Officer or Agent
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy:
1. Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances)
restricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character,
dimensions or location of any improvement now or hereafter erected on the land, or prohibiting a separation in
ownership or a reduction in the dimensions or area of the land, or the effect of any violation of any such law, ordi-
nance or governmental regulation.
2. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights
appears in the public records at Date of Policy.
3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed or agreed to by the
insured claimant; (b) not known to the Company and not shown by the public records but known to the insured
claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy
or acquired the insured mortgage and not disclosed in writing by the insured claimant to the Company prior to the
date such insured claimant became an insured hereunder; (c) resulting in no loss or damage to the insured claimant;
(d) attaching or created subsequent to Date of Policy (except to the extent insurance is afforded herein as to any
statutory lien for labor or material or right thereto).
4. Unenforceability of the lien of the insured mortgage because of failure of the insured at Date of Policy or of any
subsequent owner of the indebtedness to comply with applicable "doing business" laws of the state in which the
land is situated.
Form 209 6/71
Copyright 1969 American Land Title Association
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TITLE INSURANCE POLICY
AMERICAN LAND TITLE ASSOCIATION LOAN POLICY — 1970 Rev.
Issued through the office of:
TITLE INSURANCE COMPANY OF MINNESOTA
400 Second Avenue South
Minneapolis, MN 55 401
371 -1111
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TITLE INSURANCE COMPANY OF MINNESOT
Home Office: 400-2nd Ave. So., Minneapolis, Minn. 55401 • 612/371 -11'
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CONDITIONS AND STIPULATIONS
1. Definition of Terms
The following terms when used in this policy mean:
(a) "insured ": the insured named in Schedule A. The
term "insured" also includes (i) the owner of the indebtedness
secured by the insured mortgage and each successor in ownership
of such indebtedness (reserving, however, all rights and defenses as
to any such successor who acquires the indebtedness by operation
of law as distinguished from purchase including, but not limited to,
heirs, distributees, devisees, survivors, personal representatives,
next of kin or corporate or fiduciary successors that the Company
would have had against the successor's transferor), and further in-
cludes (ii) any governmental agency or instrumentality which is an
insurer or guarantor under an insurance contract or guaranty
insuring or guaranteeing said indebtedness, or any part thereof,
whether named as an insured herein or not, and (iii) the parties
designated in paragraph 2(a) of these Conditions and Stipulations.
(b) "insured claimant ": an insured claiming loss or
damage hereunder.
(c) "knowledge ": actual knowledge, not constructive
knowledge or notice which may be imputed to an insured by
reason of any public records.
(d) "land ": the land described, specifically or by
reference in Schedule A, and improvements affixed thereto which
by law constitute real property; provided, however, the term
"land" does not include any property beyond the lines of the area
specifically described or referred to in Schedule A, nor any right,
title, interest, estate or easement in abutting streets, roads,
avenues, alleys, lanes, ways or waterways, but nothing herein
shall modify or limit the extent to which a right of access to and
from the land is insured by this policy.
(e) "mortgage ": mortgage, deed of trust, trust deed, or
other security instrument.
(f) "public records ": those records which by law impart
constructive notice of matters relating to said land.
2. (a) Continuation of Insurance after Acquisition of Title
This policy shall continue in force as of Date of Policy in
favor of an insured who acquires all or any part of the estate or
interest in the land described in Schedule A by foreclosure, trus-
tee's sale, conveyance in lieu of foreclosure, or other legal manner
which discharges the lien of the insured mortgage, and if the
insured is a corporation, its transferee of the estate or interest so
acquired, provided the transferee is the parent or wholly owned
subsidiary of the insured; and in favor of any governmental agency
or instrumentality which acquires all or any part of the estate or
interest pursuant to a contract of insurance or guaranty insuring
or guaranteeing the indebtedness secured by the insured mortgage;
provided that the amount of insurance hereunder after such ac-
quisition, exclusive of costs, attorneys' fees and expenses which
the Company may become obligated to pay, shall not exceed the
least of:
(i) the amount of insurance stated in Schedule A;
(ii) the amount of the unpaid principal of the indebted-
ness as defined in paragraph 8 hereof, plus interest thereon,
expenses of foreclosure and amounts advanced to protect the lien
of the insured mortgage and secured by said insured mortgage at
the time of acquisition of such estate or interest in the land; or
(iii) the amount paid by any governmental agency or
instrumentality, if such agency or instrumentality is the insured
claimant, in the acquisition of such estate or interest in satisfac-
tion of its insurance contract or guaranty.
(b) Continuation of Insurance after Conveyance of Title
The coverage of this policy shall continue in force as of
Date of Policy in favor of an insured so long as such insured re-
tains an estate or interest in the land, or holds an indebtedness
secured by a purchase money mortgage given by a purchaser from
such insured, or so long as such insured shall have liability by
reason of covenants of warranty made by such insured in any
transfer or conveyance of such estate or interest; provided, how-
ever, this policy shall not continue in force in favor of any pur-
chaser from such insured of either said estate or interest or the
indebtedness secured by a purchase money mortgage given to
such insured.
3. Defense and Prosecution of Actions — Notice of Claim
to be given by an Insured Claimant
(a) The Company, at its own cost and without undue
delay, shall provide for the defense of an insured in all litigation
consisting of actions or proceedings commenced against such
insured, or defenses, restraining orders or injunctions interposed
against a foreclosure of the insured mortgage or a defense inter-
posed against an insured in an action to enforce a contract for a
sale of the indebtedness secured by the insured mortgage, or a
sale of the estate or interest in said land, to the extent that such
litigation is founded upon an alleged defect, lien, encumbrance,
or other matter insured against by this policy.
(b) The insured shall notify the Company promptly in
writing (i) in case any action or proceeding is begun or defense or
restraining order or injunction is interposed as set forth in (a)
above, (ii) in case knowledge shall come to an insured hereunder
of any claim of title or interest which is adverse to the title to the
estate or interest or the lien of the insured mortgage, as insured,
and which might cause loss or damage for which the Company
may be liable by virtue of this policy, or (iii) if title to the estate
or interest or the lien of the insured mortgage, as insured, is re-
jected as unmarketable. If such prompt notice shall not be given
to the Company, then as to such insured all liability of the Com-
pany shall cease and terminate in regard to the matter or matters
for which such prompt notice is required; provided, however, that
failure to notify shall in no case prejuduce the rights of any such
insured under this policy unless the Company shall be prejudiced
by such failure and then only to the extent of such prejudice.
(c) The Company shall have the right at its own cost to
institute and without undue delay prosecute any action or pro-
ceeding or to do any other act which in its opinion may be neces-
sary or desirable to establish the title to the estate or interest or
the lien of the insured mortgage, as insured, and the Company
may take any appropriate action under the terms of this policy,
whether or not it shall be liable thereunder, and shall not thereby
concede liability or waive any provision of this policy.
(d) Whenever the Company shall have brought any
action or interposed a defense as required or permitted by the pro-
visions of this policy, the Company may pursue any such litiga-
tion to final determination by a court of competent jurisdiction
and expressly reserves the right, in its sole discretion, to appeal
from any adverse judgment or order.
(e) In all cases where this policy permits or requires
the Company to prosecute or provide for the defense of any
action or proceeding, the insured hereunder shall secure to the
Company the right to so prosecute or provide defense in such
action or proceeding, and all appeals therein, and permit the Com-
pany to use, at its option, the name of such insured for such
purpose. Whenever requested by the Company, such insured shall
give the Company all reasonable aid in any such action or pro-
ceeding, in effecting settlement, securing evidence, obtaining
witnesses, or prosecuting or defending such action or proceeding,
and the Company shall reimburse such insured for any expense so
incurred.
4. Notice of Loss — Limitation of Action
In addition to the notices required tinder paragraph 3(b) of
these Conditions and Stipulations, a statement in writing of any
loss or damage for which it is claimed the Company is liable under
this policy shall be furnished to the Company within 90 days after
such loss or damage shall have been determined and no right of
action shall accrue to an insured claimant until 30 days after such
(Continued on inside back flap)
(Continued from inside front flap)
statement shall have been furnished. Failure to furnish such state-
ment of loss or damage shall terminate any liability of the
Company under this policy as to such loss or damage.
S. Options to Pay or Otherwise Settle Claims
The Company shall have the option to pay or otherwise
settle for or in the name of an insured claimant any claim insured
against or to terminate all liability acid obligations of the Company
hereunder by paying or tendering payment of the amount of
insurance under this policy together with any costs, attorneys'
fees and expenses incurred up to the time of such payment or
tender of payment by the insured claimant and authorized by the
Company. In case loss or damage is claimed under this policy by
an insured, the Company shall have the further option to purchase
such indebtedness for the amount owing thereon together with all
costs, attorneys' fees and expenses which the Company is obligated
hereunder to pay. If the Company offers to purchase said indebt-
edness as herein provided, the owner of such indebtedness shall
transfer and assign said indebtedness and the mortgage and any
collateral securing the same to the Company upon payment there-
for as herein provided.
6. Determination and Payment of Loss
(a) The liability of the Company under this policy shall
in no case exceed the least of:
(i) the actual loss of the insured claimant; or
(ii) the amount of insurance stated in Schedule A,
or, if applicable, the amount of insurance as defined in paragraph
2(a) hereof; or
(iii) the amount of the indebtedness secured by the
insured mortgage as determined under paragraph 8 hereof, at the
time the loss or damage insured against hereunder occurs, together
with interest thereon; or
(b) The Company will pay, in addition to any loss
insured against by this policy, all costs imposed upon an insured
in litigation carried on by the Company for such insured, and all
costs, attorneys' fees and expenses in litigation carried on by such
insured with the written authorization of the Company.
(c) When liability has been definitely fixed in accordance
with the conditions of this policy, the loss or damage shall be
payable within 30 days thereafter.
7. Limitation of Liability
No claim shall arise or be maintainable under this policy (a)
if' the Company, after having received notice of an alleged defect,
lien or encumbrance insured against hereunder, by litigation or
otherwise, removes such defect, lien or encumbrance or establishes
the title, or the lien of the insured mortgage, as insured, within a
reasonable time after receipt of such notice; (b) in the event of
litigation until there has been a final determination by a court of
competent jurisdiction, and disposition of all appeals therefrom,
adverse to the title or to the lien of the insured mortgage, as
insured, as provided in paragraph 3 hereof; or (c) for liability
voluntarily assumed by an insured in settling any claim or suit
without prior written consent of the Company.
8. Reduction of Liability
(a) All payments under this policy, except payments
made for costs, attorneys' fees and expenses, shall reduce the
amount of the insurance pro tanto; provided, however, such pay-
ments, prior to the acquisition of title to said estate or interest
as provided in paragraph 2(a) of these Conditions and Stipula-
tions, shall not reduce pro tanto the amount of the insurance
afforded hereunder except to the extent that such payments
reduce the amount of the indebtedness secured by the insured
mortgage.
Payment in full by any person or voluntary satisfaction or
release of the insured mortgage shall terminate all liability of the
Company except as provided in paragraph 2(a) hereof.
(b) The liability of the Company shall not be increased
by additional principal indebtedness created subsequent to Date
of Policy, except as to amounts advanced to protect the lien of
the insured mortgage and secured thereby.
No payment shall be made without producing this policy
for endorsement of such payment unless the policy be lost or
destroyed, in which case proof of loss or destruction shall be fur-
nished to the satisfaction of the Company.
Liability Noncumulative.
If the insured acquires title to the estate or interest in satis-
faction of the indebtedness secured by the insured mortgage, or
any part thereof, it is expressly understood that the amount of
insurance under this policy shall be reduced by any amount the
Company may pay under any policy insuring a mortgage here-
after executed by an insured which is a charge or lien on the
estate or interest described or referred to in Schedule A, and the
amount so paid shall be deemed a payment under this policy.
10. Subrogation Upon Payment or Settlement
Whenever the Company shall have settled a claim under this
policy, all right of subrogation shall vest in the Company unaf-
fected by any act of the insured claimant, except that the owner
of the indebtedness secured by the insured mortgage may release
or substitute the personal liability of any debtor or guarantor,
or extend or otherwise modify the terms of payment, or release
a portion of the estate or interest from the lien of the insured
mortgage, or release any collateral security for the indebtedness,
provided such act occurs prior to receipt by the insured of
notice of any claim of title or interest adverse to the title to the
estate or interest or the priority of the lien of the insured mortgage
and does not result in any loss of priority of the lien of the insured
mortgage. The Company shall be subrogated to and be entitled to
all rights and remedies which such insured claimant would have
had against any person or property in respect to such claim had
this policy not been issued, and if requested by the Company,
such insured claimant shall transfer to the Company all rights and
remedies against any person or property necessary in order to
perfect such right of subrogation and shall permit the Company
to use the name of such insured claimant in any transaction or
litigation involving such rights or remedies. If the payment does
not cover the loss of such insured claimant, the Company shall be
subrogated to such rights and remedies in the proportion which
said payment bears to the amount of said loss, but such subroga-
tion shall be in subordination to the insured mortgage. If loss of
priority should result from any act of such insured claimant, such
act shall not void this policy, but the Company, in that event,
shall be required to pay only that part of any losses insured
against hereunder which shall exceed the amount, if any, lost to
the Company by reason of the impairment of the right of subro-
gation.
11. Liability Limited to this Policy
This instrument together with all endorsements and other
instruments, if any, attached hereto by the Company is the entire
policy and contract between the insured and the Company.
Any claim of loss or damage, whether or not based on negli-
gence, and which arises out of the status of the lien of the insured
mortgage or of the title to the estate or interest covered hereby
or any action asserting such claim, shall be restricted to the pro-
visions and conditions and stipulations of this policy.
No amendment of or endorsement to this policy can be made
except by writing endorsed hereon or attached hereto signed by
either the President, a Vice President, the Secretary, an Assistant
Secretary, or validating officer or authorized signatory of the
Company.
12. Notices, Where Sent
All notice required to be given the Company and any state-
ment in writing required to be furnished the Company shall be
addressed to its Home Office, Minneapolis, Minnesota 55401.
Note: This policy valid only if Schedules A and B are attached.
ST . 22 CNTY. 053 PROP. 3 TRAN. 410 ISSUED THROUGH THE OFFICE OF:
Re -Issue Liability: - --
TITLE INSURANCE
COMPANY
OF MINNESOTA A
TIM MORTGAGE 12/67 FORM 2254
PREMIUM: $7.50
AMOUNT $194,000.00
FILE NO. 480059 POLICY NO. B1486741
SCHEDULE A
1. POLICY DATE January 19, 1981 AT 4:00 P.M.
2. NAME OF INSURED:
CITY OF EDINA
3. THE TITLE TO THE FEE SIMPLE ESTATE IN SAID LAND IS, AT DATE HEREOF, VESTED
IN:
BRAEMAR ASSOCIATES, INC. (a Minnesota Corporation)
4. THE MORTGAGE AND ASSIGNMENTS, IF ANY, COVERED BY THIS POLICY ARE DESCRIBED
AS FOLLOWS:
Mortgage:
Dated: January 9, 1981
Filed: January 19, 1981
As Document No. 4619599
Mortgagor: Braemar Associates, Inc. (a Minnesota Corporation)
Mortgagee: City of Edina, a Minnesota municipal corporation
To secure an indebtedness of $194,000.00 and any other sums which may
become due and payable under the terms thereof.
5. THE LAND REFERRED TO IN THIS POLICY IS THE SAME LAND AS DESCRIBED IN THE
MORTGAGE SHOWN AT NO. 4 ABOVE, AND IS FURTHER DESCRIBED AS FOLLOWS:
Parcel 1:
That part of Outlot 1, HEATH GLEN, according to the recorded plat thereof,
Hennepin County, Minnesota, lying Easterly of a line drawn 30 feet
Easterly of and parallel with the following described line:
Commencing at the intersection of the southerly extension of the
centerline of Glasgow Drive as dedicated in said plat of HEATH GLEN, and
the centerline of West 78th Street (Old State Highway No. 5); thence
northeasterly along the centerline of West 78th Street a distance of 250.9
feet to a point of curve to the right; thence northeasterly along the
tangent line of said curve, a distance of 6.32 feet to the point of
beginning of the line to be described; thence northwesterly, deflecting to
the left 90 degrees, a distance of 210.43 feet to a point of curve to the
right with a radius of 238.23 feet and a central angle of 67041'30 ";
thence along said curve 281.46 feet to a point of reverse curve; thence
along a 250 foot radius curve; concave to the West, to the North line of
said Outlot 1 and there terminating.
See Page 2
ISSUED THROUGH THE OFFICE OF:
TITLE INSURANCE
Page 2 COMPANV
OF MINNESOTA A
Parcel 2:
That part of the Southwest Quarter of the Southeast Quarter of Section 8,
Township 116, Range 21, Hennepin County, Minnesota, described as beginning
at the intersection of the west line of East Half of said Southwest
Quarter of the Southeast Quarter of Section 8 with the south line of the
north 20 rods (330 feet) of said Southwest Quarter of the Southeast
Quarter of Section 8; thence westerly, along said south line of the north
20 rods (330 feet) of the Southwest Quarter of the Southeast Quarter of
Section 8, a distance of 0.89 feet, more or less,
to the east line of the west 40 rods (660 feet) of said Southwest Quarter
of the Southeast Quarter of Section 8; thence southerly, along said east
line of the west 40 rods (660 feet) of the Southwest Quarter of the
Southeast Quarter of Section 8, a distance of 516.68 feet, more or less,
to the northerly right -of -way of West 78th Street, thence easterly along
said northerly right -of -way of West 78th Street, a distance of 0.91 feet,
more or less, to said west line of the East Half of the Southwest Quarter
of the Southeast Quarter of Section 8; thence northerly, along said west
line of the East Half of the Southwest Quarter of the Southeast Quarter of
Section 8 to the point of beginning.
Parcel 3:
That part of the East 1/2 of the Southwest 1/4 of the Southeast 1/4 lying
North of the North line of State Highway No. 5 and South of the North 20
rods, and West of County Road No. 28, all in Section 8, Township 116,
Range 21, Hennepin County, Minnesota, lying westerly of a line described
as commencing at the intersection of the west line of said East 1/2 of the
Southwest Quarter of the Southeast Quarter of Section 8, with the south
line of said north 20 rods (330 feet) of the Southwest Quarter of the
Southeast Quarter of Section 8; thence North 89 degrees 51 minutes 34
seconds East assumed bearing, along said south line of the north 20 rods
(330 feet), a distance of 182.87 feet to the point of beginning of the
line to be described; thence South 00 degrees 08 minutes 26 seconds East a
distance of 193.00 feet; thence South 65 degrees 45 minutes 00 seconds
West a distance of 115.00 feet; thence South 10 degrees 33 minutes 00
seconds West a distance of 91.60 feet; thence South 34 degrees 47 minutes
00 seconds East a distance of 65.32 feet; thence South 10 degrees 59
minutes 43 seconds East a distance of 102.45 feet, more or less, to the
northerly right -of -way of West 78th Street (Old State Highway No. 5) and
said line there terminating.
All situate in Hennepin County, Minnesota.
See Page 3
ISSUED THROUGH THE OFFICE OF:
TITLE INSURANCE
Page 3 COMPANY WN
OF MINNESOTA A
SCHEDULE B -1
THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE BY REASON OF THE FOLLOWING:
1. Taxes not yet due and payable and special assessments, if any.
2. Taxes for the year 1981 not paid on which no penalty will accrue if first
one -half is paid on or before May 31, 1981 and second one -half is paid on
or before October 31, 1981.
3. Non - exclusive easement for roadway and utility purposes reserved in
insured mortgage.
SCHEDULE B -II
IN ADDITION TO THE MATTERS SET FORTH IN PART I OF THIS SCHEDULE, THE TITLE TO
THE ESTATE OR INTEREST IN THE LAND DESCRIBED OR REFERRED TO IN SCHEDULE A IS
SUBJECT TO THE FOLLOWING MATTERS, IF ANY BE SHOWN, BUT THE COMPANY INSURES
THAT THE LIEN OR CHARGE OF THE INSURED MORTGAGE UPON SAID ESTATE OR INTEREST
IS PRIOR TO SUCH MATTERS:
1. Mortgage:
Dated: December 31, 1980
Filed: January 19, 1981
As Document No. 4619595
Mortgagor: Braemar Associates, Inc. (a Minnesota Corporation)
Mortgagee: Harold G. Haglund and E. A. Nieland
To secure an indebtedness of $315,000.00 and any other sums which may
become due and payable under the terms thereof.
3980K /Mon /kae
TITLE INSURANCE COMPANY OF MINNESOTA
a Stock Company of Minneapolis, Minnesota
ENDORSEMENT
To be attached to and become a part of Policy No. b 1486 7 41
The Company hereby insures the Insured against loss or damage which the Insured shall sustain by reason of.
1. Any inaccuracies in the following assurances; unless otherwise expressly set forth or indicated to the contrary
in Schedule B:
(a) There are no covenants, conditions or restrictions under which the lien of the mortgage referred to
in Schedule A can be divested or subordinated or its validity, priority or enforceability other wise
impaired;
(b) There are no present violations on said land of any enforceable covenants, conditions or restrictions
or plat building lines;
(c) Any instruments, covenants and restrictions referred to in Schedule B do not provide for an easement
over the land or provide for a private assessment or charge;
(d) There are no encroachments of existing improvements located on said land onto adjoining land, nor
any encroachments onto said land of existing improvements located on adjoining land;
(e) There are no encroachments of existing improvements located on said land onto that portion of said
land subject to any easement shown in Schedule B.
2. Any future violations on said land of any covenants, conditions or restrictions occurring prior to the acquisition
of title to said land by the Insured, provided such violations result in loss of the lien of the mortgage referred to
in Schedule A or impair the validity, priority or enforceability of such lien, or result in loss of the title to said
estate or interest if the Insured shall acquire title in satisfaction of the indebtedness secured by such mortgage.
3. The entry of any court order or judgment which constitutes a final determination and denies the right to main-
tain any existing improvements on said land because of any violation of any covenants, conditions or restrictions
or of plat building lines or because of any encroachment thereof over onto adjoining land.
Wherever in this endorsement any or all the words "covenants, conditions or restrictions" appear, they shall not
be deemed to refer to or to include the terms, covenants, conditions or limitations contained in any lease or declara-
tion of condominium referred to in Schedule A.
The total liability of the Company under said policy and any endorsement thereto shall not exceed, in the aggregate,
the face amount of said policy and costs which the Company is obligated under the Conditions and Stipulations thereof
to pay.
This endorsement, when countersigned by an authorized officer or agent, is made a part of said policy as of the policy
date thereof and is subject to the Schedules, Conditions and Stipulations and Exclusions from Coverage therein con-
tained, except as modified by the provisions hereof.
cps! 0 1 4 lF
s38AX .
pis
Countersigned:
f, - t - � A,)",o
Authorized Officer or Agent
TIM 1 00XC - 3/68
TITLE INSURANCE COMPANY OF MINNESOTA
President
Secretary
AN g SAW Exempt fr6
4619599 S . o n Tax
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ZOSaj Sy _'�
MORTGAGE m
THIS INDENTURE ( "Mortgage ") mad ,
1981, between BRAEMAR ASSOCIATES, INC., a innesota corporation'-
( "Mortgagor ") and CITY OF EDINA, a Minnesota municipal corpora-
tion ("Mortgagee").
WITNESSETH:
Mortgagor, in consideration of the sum of One Hundred
Ninety -Four Thousand and no /100 Dollars ($194,000.00) in hand paid
by Mortgagee, the receipt of which is hereby acknowledged, does
hereby grant, bargain, sell and convey unto Mortgagee, its suc-
cessors and assigns, forever, the following:
A. The tract of land situate in the County of
Hennepin, State of Minnesota, described on Schedule A hereto,
together with all easements, rights, hereditaments and appur- t
tenances now or hereafter belonging or appurtenant to, or
in any way appertaining to, said land ( "Mortgaged Land ").
B. All buildings, fixtures and other improvements
( "Mortgaged Improvements ") heretofore or hereafter erected on
the Mortgaged Land.
C. All furniture, furnishings, equipment, supplies
and other items of personal property ( "Mortgaged Equipment ")
heretofore or hereafter placed on the Mortgaged Land or in the
Mortgaged Improvements by or at the instance of Mortgagor and
used or useful in connection with the operation of the Mortgaged
Land and Mortgaged Improvements.
TO,HAVE AND TO HOLD the Mortgaged Land, Mortgaged
Improvements and Mortgaged Equipment (collectively, "Mortgaged
Premises "), together with all the hereditaments and appurtenances
tr
thereunto now or hereafter belonging, unto Mortgagee forever.
• Mortgagor covenants with Mortgagee that it is lawfully seized
}
t
of the Mortgaged Land and will be lawfully seized of the Mort-
gaged Improvements as the same are erected on the Mortgaged Land
and of the Mortgaged Equipment as the same is placed in the Mort-
gaged Land and in the Mortgaged Improvements; that it has good
right to convey the Mortgaged Premises; that the Mortgaged Premises
are free from encumbrances except those ( "Permitted Encum-
brances") enumerated on Schedule B hereto; that Mortgagee
shall quietly enjoy and possess the Mortgaged Premises, and
Mortgagor will warrant and defend the title to the Mortgaged
Premises against all lawful claims.
PROVIDED, NEVERTHELESS, If Mortgagor shall pay or
cause to be paid to Mortgagee the principal sum of One Hundred
Fifty -Four Thousand and no /100 Dollars ($154,000.00) with interest
thereon according to the terms of a promissory note ( "Note ")
and the principal sum of Forty Thousand and no /100 Dollars
($40,000.00) with interest thereon according to the terms of a
second promissory note ( "Note A "), both bearing even date herewith
and both made by Mortgagor, payable to the order of Mortgagee,
the last installment of each of which is due January 9, 1986,
and shall keep and perform all the covenants and conditions
hereof, then this Mortgage shall be null and void, otherwise
it shall remain in full force and effect. Mortgagee and any
present or future owner or owners of the Mortgaged Premises
may, from time-to time, extend, renew or otherwise modify the
date or dates-or amount or amounts of payment of the Note or
of Note A (herein together called the "Notes ") or Mortgagee
may, from time to time, release any part or parts of the Mort-
gaged Premises, with or without consideration, and in any such
event Mortgagor shall not be released from personal obligation
on the Notes.
Mortgagor further covenants and agrees:
1. To pay the principal and interest at the time
or times and in the manner specified in the Notes.
-2-
2. To pay all taxes, assessments and charges of
every character heretofore or hereafter levied or charged
against the Mortgaged Premises before penalty attaches there-
to, and to deliver official receipts therefor to Mortgagee at
its request.
3. To keep the Mortgaged Premises in good and
tenantable condition, in accordance with all applicable
laws, ordinances and regulations, all applicable requirements
of insurance underwriters and restrictions of record, if
. any. Without limiting the generality of the foregoing, if
the Mortgaged Premises are damaged or destroyed by any cause
whatsoever (including any casualty for which insurance was
not obtained or obtainable), to commence and diligently con-
tinue to restore, repair, replace and rebuild the Mortgaged
Premises as nearly as possible to its value, condition and
character immediately prior to such damage or destruction.
4. To keep the Mortgaged Premises (if and to the
extent it is operated, or any part thereof is operated, as an
income property) as fully leased as reasonably possible, at
reasonable rentals and under written leases in form and sub-
stance acceptable to Mortgagee.
5. To indemnify and defend Mortgagee against, and
hold it harmless from, all liability, and claims thereof,
arising out of, or incidental to, the rights granted to Mort-
gagee under this Mortgage or Mortgagee's efforts to exercise
said rights, whether resulting from the negligence of Mortgagee
or otherwise.
6. To defend Mortgagee and hold it harmless from
any action, proceeding or claim affecting the Mortgaged Pre-
mises, the lien of this Mortgage or the priority thereof or
the value of the Notes.
7. Not to abandon or vacate the Mortgaged Premises
or commit or permit waste thereof.
-3-
a
8. To keep the Mortgaged Premises insured against
loss by fire and extended coverage risks, war damage when avail-
able and when requested by Mortgagee, and such other risks as
Mortgagee from time to time requests and against loss resulting
from injuries, deaths and property damage occurring in, on or
about the Mortgaged Premises. All policies of insurance shall
be in form and substance, in amounts, covering periods of time,
issued by a company or companies, and, with respect to policies
of hazard insurance, containing loss payable clauses in favor
of Mortgagee as its interest may appear, all as from time to
time approved by Mortgagee.
9. To deliver promptly to Mortgagee, upon its request,
policies, or certificates thereof, of all insurance kept by Mort-
gagor which pertain to the Mortgaged Premises; it being understood
that all renewal policies, or certificates thereof, shall be
delivered to Mortgagee at least ten (10) days before the ex-
piration of the old policies. No policy of insurance shall be
cancellable or amendable without at least thirty (30) days
advance written notice to Mortgagee.
10. To keep the Mortgaged Premises free and clear
of all liens and encumbrances whatsoever, whether they are on
parity with, superior to, or junior to, the lien of this
Mortgage, except (i) Permitted Encumbrances; (ii) mortgages
to which this Mortgage is hereafter subordinated pursuant to
the terms hereof; (iii) mortgage liens that are not prior to
the lien of this Mortgage; and (iv) that if any mechanics',
laborers' or materialmen's liens are filed or claimed against
all or any part of the Mortgaged Premises, Mortgagor shall
have the right to contest, by bona fide and timely proceedings,
and without cost to Mortgagee, the validity or amount thereof
if Mortgagor first gives security reasonably acceptable to
Mortgagee to insure payment thereof and to prevent forfeiture
of the Mortgaged Premises by reason of non - payment thereof.
Upon settlement or final judgment of any such contest, Mort-
gagor immediate"Ly shall pay such lien and satisfy it of record,
-4-
0
and if such lien is not so paid and satisfied of record, or if
Mortgagee should determine that
in jeopardy, then Mortgagee may
of record out of such security,
to Mortgagor, but Mortgagor sha
deficiency, and such deficiency
secured by this Mortgage.
such lien places its security
pay the lien and satisfy -it
and return the excess, if any,
11 be and remain liable for any
shall be an additional amount
11. To give Mortgagee immediate notice by mail of
any damage to the Mortgaged Premises whereupon Mortgagee may,
at its option, compromise and settle any loss claim under any
policy of hazard insurance then in effect and apply the in-
surance proceeds to restore the Mortgaged Premises, it
being understood that the lien of this Mortgage and Mortgagor's
obligations hereunder, shall not thereby be affected; provided,
however, if, when Mortgagee receives such insurance proceeds,
there exists an event which constitutes, or which upon notice
or lapse of time would constitute, an Event of Default under
this Mortgage, the Mortgagee need not apply the insurance pro-
ceeds to restore the Mortgaged Premises, but may, at its
option, apply the insurance proceeds to reduce the indebtedness
hereby secured, it being understood that the lien of this
Mortgage and Mortgagor's obligations hereunder, shall not there-
by be affected. If this Mortgage is foreclosed, Mortgagee shall
have the power to assign to the purchaser at the foreclosure
sale any hazard insurance policies then in effect.
12. At the request of Mortgagee, to execute,
acknowledge and deliver such further instruments (including,
without limitation, financing statements, and all renewals,
additions and supplements hereto or to or of such financing state-
ments), and do such further acts as may be necessary, de-
sirable or proper to carry out more effectively the purposes
of this Mortgage and to subject to the lien of this Mortgage
all property intended by the terms hereof to be covered.
m':
13. To cause this Mortgage, all supplements
thereto and all notices thereof, to be recorded and filed and
re- recorded and refiled in such manner and in such places as
Mortgagee shall, from time to time, reasonably request, and
tQ pay all taxes, fees and other charges associated therewith.
existence.
14. To keep in full force and effect its corporate
15. To duly and punctually keep and perform all
covenants and agreements which it is obliged to keep or per-
form under any agreement to which it is a party with respect
to the Mortgaged Premises or any part thereof, including;.with-
out limitation, all covenants and agreements of any Construction
Mortgage (below defined) to which this Mortgage may be subordi-
nated pursuant hereto and of any note or other evidence of debt
secured by such mortgage or security document.
16. To permit Mortgagee and its representatives,
at all reasonable times, to inspect the Mortgaged Premises and
to perform the obligations of the Mortgagor hereunder when and
if the Mortgagor fails to do so.
17. To pay to Mortgagee, upon receipt of a statement
from Mortgagee, any cost, including, without limitation, attorneys'
fees, suffered or incurred by Mortgagee in protecting the
lien of this Mortgage and its priority and in enforcing its
rights under the Notes and this Mortgage, or any of them,
whether suit is brought or not.
18. To prohibit (a) the Mortgaged Premises from
being used or occupied for any unlawful purpose or in violation
of any certificate of occupancy or other permit or certificate
or any law, ordinance or regulation affecting the use or occu-
pancy of the Mortgaged Premises, or (b) any act to be done, or
any condition to exist, or any article to be brought, on the
Mortgaged Premises which may be dangerous or which may make void
or voidable any insurance then in force with respect to the
Mortgaged Premises.
-6-
19. To prohibit alterations or additions to the
Mortgaged Premises which would materially diminish the value
thereof.
20. Should all or any part of the Mortgaged Pre-
mises be condemned under the power of eminent domain, all
compensation awarded therefor shall be paid directly to
Mortgagee and applied to the restoration of the Mortgaged Pre-
mises, or, if, when Mortgagee receives such award, there exists
an event which constitutes, or which upon notice or lapse of
time would constitute, an Event of Default under this Mortgage,
then such compensation, at Mortgagee's option, may be applied
to reduce the indebtedness hereby secured, and Mortgagee is
hereby empowered in the name of Mortgagor to receive and give
acquittance according to such award or judgment, whether joint
or several.
21. Mortgagor will not apply for or claim any
deduction by reason of this Mortgage from the taxable value
of the Mortgaged Premises; and will, when due, pay all taxes,
except Mortgagee's income taxes, levied or assessed against
the Mortgaged Premises, the Mortgagee's interest therein, this
Mortgage and /or the indebtedness secured by this Mortgage,
without regard to any law now in force or hereafter enacted
imposing payment of the whole or any part thereof upon Mort-
gagee. Upon violation of the provisions in this paragraph
contained or the passage of any law imposing payment of the
whole or any portion of the taxes aforesaid upon the Mortgagee
or the rendering by a court of competent jurisdiction of a
decision that the undertaking by Mortgagor as herein provided
to pay such taxes is illegal or inoperative, then the indebted-
ness secured hereby, without any deduction, shall, at the option
of Mortgagee, become iiunediately due, payable and collectible
notwithstanding anything contained in this Mortgage or any law
hereafter enacted or the decision of any court.
-7-
22. Should Mortgagor fail to keep the Mortgaged
Premises in repair or insured or should it commit or permit
waste thereof or should it fail to pay insurance premiums, taxes
and assessments, liens or encumbrances which it is obliged
to do under the provisions of this.Mortgagor or should it
fail to keep or perform any of its other obligations under
this Mortgage or under the Construction Mortgage or Permanent
Mortgage to which this Mortgage may be subordinated, or under
any notes or other evidence of debt secured thereby, then
Mortgagee, at its option, may make and pay for such repairs,
prevent such waste and pay the cost thereof, effect such in-
surance and pay premiums therefor, pay such taxes, assessments,
liens or encumbrances on the Mortgaged Premises and perform
any of the other obligations of Mortgagor under this Mortgage,
the Construction Mortgage and notes and debt secured there-
by, and pay the cost thereof. .All sums so paid by Mortgagee
shall bear interest from the date of such payment at the rate
of 12% per annum and such sums and interest thereon shall be
an additional lien upon the Mortgaged Premises and a part
of the indebtedness secured hereby and shall be payable by
Mortgagor to Mortgagee forthwith.
23. Not to develop or improve any or all of the
property described on Schedule C attached hereto and hereby
made a part hereof (the "Adjoining Land ") until the Notes and
all indebtedness secured hereby is paid in full.
24,' In order to further secure the payment of the
indebtedness evidenced by the Note and any other indebtedness
secured by this Mortgage, Mortgagor hereby grants, assigns,
transfers and sets over to Mortgagee, its successors and
assigns:
(a) all rents, issues and profits (and the right to
collect and retain the same) arising out of or
incidental to the use of the Mortgaged Premises
including, without limitation, rents paid by
tenants; and
(b) the right to operate and manage the Mortgaged
Premises, enter into leases pertaining to all or
any part of the Mortgaged Premises, amend, supple-
ment and enforce performance under, whether by
lawsuit or otherwise, all leases pertaining to
any part of the Mortgaged Premises, whether
heretofore or hereafter made.
Within the limits and in accordance with procedures prescribed
by law, Mortgagee shall be entitled to the appointment of a
receiver without regard to waste, adequacy of security or
solvency of Mortgagor, for the purpose of collecting such
rents, issues and profits, operating and managing the Mortgaged
Premises and doing such other things as are appropriate in
connection therewith. Mortgagee or any receiver appointed
as aforesaid may apply or cause to be applied, in such amounts
and in such order as Mortgagee in its sole discretion, but
within the limits prescribed by law, deems advisable, the afore-
said rents, issues and profits to (i) the payment of the fees-
of such receiver, if any, (ii) to the repayment of security
deposits and interest thereon as required by law, (iii) to
the payment, when due, of delinquent or current real estate
taxes and special assessments levied or assessed against the
Mortgaged Premises, (iv) to the payment, when due, of premiums
for insurance required by the terms of this Mortgage, (v) to
the cost of keeping the covenants required of a lessor or licen-
sor as required by law, (vi) to the payment of expenses for
maiptenance of the Mortgaged Premises, (vii) to the payment and
performance when due of any and all obligations of Mortgagor under
any mortgage or other security document to which this Mortgage
may be subordinated, and the payments due under any note or other
Qam
evidence of debt secured thereby, and (viii) to the amount secured
by this Mortgage. If this Mortgage is foreclosed and the period
of redemption therefrom expires, all of the aforesaid rents,
issues and profits received after the aforesaid sale together
with the Mortgaged Premises acquired through foreclosure, shall
be the sole property of the purchaser at the foreclosure sale.
Notwithstanding the provisions of the immediately
preceding paragraph, unless and until an Event of Default oc-
curs under this Mortgage, Mortgagor shall be entitled to collect
such rents, issues and profits as and when they become due
and payable and Mortgagee shall not be entitled to exercise
the rights granted to it by the provisions of such paragraph.
Mortgagor hereby agrees, and hereby directs, that
the respective tenants under leases pertaining to the Mortgaged
Premises, or any part thereof, whether heretofore or hereafter
made, upon notice from Mortgagee of a default under this
Mortgage, shall thereafter pay to Mortgagee all rents and
other charges due and to become due under such leases with-
out any obligation whatsoever to determine ,whether or not a
default does, in fact, exist.
Mortgagee covenants and agrees:
A. Upon written request of Mortgagor, and if there
does not then exist an event which constitutes, or which.upon
notice or lapse of time would constitute, an Event of Default
under this Mortgage, to execute, as Mortgagee under this Mort-
gage, any documents, instruments, conveyances, covenants, con-
ditions, declarations, dedications or easements which are neces-
sary or desirable (i) to plat, subdivide or develop all or any
part of the Mortgaged Land, (ii) to allow the construction of
condominium buildings on the Mortgaged Land, (iii) to create
one or more condominium regimes on one or more of the lots
into which the Mortgaged Land is then subdivided of record,
(iv) to submit all or any part of the Mortgaged Land to the
provisions of Minnesota Statutes, Chapter 515A, and laws
-10-
amendatory thereof and supplemental thereto (the "Minnesota
Uniform Condominium Act ") and comply with the requirements
thereof, (v) to comply with the requirements of the VA, FHA,
FHLMC or FNMA in order to secure any of such entities' approval
of all or any portion of the Mortgaged Land or Mortgaged Im-
provements for mortgage purposes, (vi) to create a non - profit
association or other organization to own, manage or operate
all or any part of any common areas created under and pursuant
to the Minnesota Uniform Condominium Act, (vii) to create any
easements necessary or desirable to the development, improvement,
construction or sale of all or any part of the Mortgaged Premises
or Adjoining Land, including, but not limited to, easements over
and across portions of the Mortgaged Land in order to provide in-
gress and egress and utilities to other portions of the Mortgaged
Land or Adjoining Land, and easements to create a right to use
and enjoyment of any of said common areas located in any portion
of the Mortgaged Land for the benefit of all other portions of
the Mortgaged Land or Adjoining Land, or (viii) to facilitate a
plan for the common collection and payment of expenses for the
upkeep of any or all of such common areas or any of such condominium
buildings. Provided, however, that all of the foregoing shall be
done by Mortgagee only if Mortgagee, in its reasonable opinion,
then concludes that the act requested (a) will not create or impose
any liability or obligation on Mortgagee, (b) will not reduce
the value of the Mortgaged Premises below the then unpaid balance
of the indebtedness secured hereby and by all mortgages then prior
to the lien of this Mortgage, (c) will not adversely affect
Mortgagee's ability to foreclose this Mortgage, or acquire title
to the Mortgaged Premises by deed or other means in lieu of fore-
closure, and (d) will not otherwise adversely affect the in-
terest or lien of Mortgagee. And provided further that all of
the foregoing shall be done without cost or expense to Mortgagee,
including reasonable attorney's fees, and any costs incurred by
Mortgagee in connection with review, examination or execution
-11-
of any documents to be executed by Mortgagee pursuant to this
paragraph A, including reasonable attorney's fees, shall be
paid to Mortgagee before Mortgagee shall be obligated to exe-
cute such documents.
B. Upon written request of Mortgagor, and if-
there does not then exist an event which constitutes, or
which upon notice or lapse of time would constitute, an
Event of Default under this Mortgage, and if the Construction
Mortgage or Construction Loan (below defined), or Mortgagor,
then fulfill and meet all of the following conditions, to
subordinate the lien of this Mortgage and the interest of
Mortgagee under this Mortgage to the lien and interest created
by any one mortgage, assignment of rents, security agreement
or other related instruments (hereinafter collectively re-
ferred to as the "Construction Mortgage "), required by a
construction mortgage lender. The said conditions are:
(i) that the Construction Mortgage secures an interim loan
(hereinafter referred to as a "Construction Loan ") made
solely to provide financing for the development and improve-
ment of the Mortgaged Premises by the construction of not
more than one twelve (12) unit condominium building and
related facilities thereon and for the payment of costs
directly related to such development, improvement and con-
struction, including but not limited to, architect's, en-
gineer's, surveyor's, appraiser's, lawyer's and accountant's
fees, real estate taxes and installments of special assess-
ments coming due during the construction period, commitment,
standby and placement fees and charges incurred in obtaining
the Construction Loan and any permanent loans obtained by
Mortgagor to pay the Construction Loan, interest on the
Construction Loan, title insurance fees and premiums, other
insurance premiums, costs of platting and subdividing and
costs of all necessary permits, approvals and authorizations,
but not including, however, any payments to Mortgagor, or for
-12-
salary or wages to officers or employees of Mortgagor, or for
general overhead or office expense of Mortgagor, or any payments
to Mortgagor representing a fee or compensation for Mo'rtgagor's
services as a developer, manager, or promoter of any development
on the Mortgaged Land, or any payments representing return of
corporate or shareholder contributions or profit, however
characterized, (ii) that Mortgagee does not thereby incur any
personal liability for the payment of any such Construction
Mortgage or Construction Loan, or for the performance of any
of the terms, covenants, or conditions of such Construction
Mortgage or Construction Loan, (iii) that Mortgagor shall
pay all expenses in connection with the placement and re-
cording of such Construction Mortgage, including all expenses
incurred by Mortgagee, including reasonable attorneys' fees,
in connection with such subordination, (iv) that such Con-
struction Mortgage shall be placed with a national or state .
bank, a federal savings and loan association, a financial
or lending institution whose loans are, or with respect to
real estate are, regulated by state or federal law, an in-
surance company authorized to do business in Minnesota, or
other lender approved in writing by Mortgagee, (v) that
the interest rate payable to the lender under the Construction
Mortgage is competitive with and not greater than the rates
of interest then charged by other lenders for loans in the
principal amount and for the time evidenced by, and with
the security given by, such Construction Mortgage, (vi) that
such Construction Mortgage shall contain a provision obligating
the lender therein to use all proceeds of hazard insurance and
all condemnation awards to restore the Mortgaged Premises if
Mortgagor is not then in default under the Construction Mortgage,
(vii) that Mortgagor expressly convenants and agrees in
writing with Mortgagee to keep and perform all of the terms
and conditions of such Construction Mortgage and that any
default in any of such terms and conditions shall be an
-13-
Event of Default in this Mortgage, (viii) that such Con-
struction Mortgage shall contain a provision obligating the
lender to give notice to Mortgagee of any default in the .
Construction Mortgage and time in which to cure such default
at least equal to the time given to Mortgagor and commencing
after Mortgagor's time to cure such default has expired or
after actual receipt of such notice from such lender, which-
ever is later, (x) that Mortgagor then delivers to Mortgagee
purchase agreements fully executed by Mortgagor and bona fide
buyers for the bona fide sale of at least six (6) units in
the condominium building to be constructed with the Construc-
tion Loan; and (xi) that Mortgagor then pays to Mortgagee
the sum of $50,000.00 pursuant to the terms of the Note.
It is understood and agreed that such purchase agreements
will be deemed bona fide even if subject to the following
contingencies: (a) the obtaining of mortgage financing
by the buyer, (b) the completion of construction of the
condominium building, (c) the sale by the buyer of the buyer-9
home, (d) agreements being made with the buyer as to finishing
and decorating details in the unit sold, (e) the statutory
right to terminate given by the Minnesota Uniform Condominium
Act, and (f) such other contingencies as Mortgagee may accept
in writing.
C. -Upon written request of Mortgagor, and if there
does not then exist an event which constitutes, or which upon
notice or lapse of time would constitute, an Event of Default
under this Mortgage, and if the Second Construction Mortgage
(below defined), or Mortgagor, then fulfills and meets all of
the following conditions, to subordinate the lien of this
Mortgage to the lien and interest created by any one new
mortgage, assignment of rents, security agreement or other
related instruments (hereinafter collectively called the
"Second Construction Mortgage "), required by a construction
-14-
mortgage lender. The said conditions are: (a) that the con-
ditions set out in (i) through (x), inclusive, in paragraph
B above relative to the Construction Mortgage are also met and
fulfilled relative to the Second Construction Mortgage, and (b)
that Mortgagee shall have made principal payments on the Notes
in at least the sum of $81,800.00.
D. Upon written request of Mortgagor, and if there
does not then exist an event which constitutes, or which upon
notice or lapse of time would constitute, an Event of Default
under this Mortgage, and if the following conditions are ful-
filled and met, Mortgagee shall execute and deliver to Mort-
gagor a recordable release of this Mortgage as to any single
condominium unit on the Mortgaged Land, including that unit's
undivided percentage interest in any common areas appurtenant
thereto. Said conditions are: (i) that there is then paid
to Mortgagee, in exchange for such release, the Closing Pay-
ment or Excess Payment, plus interest, as required by the Note
or Note A, whichever Closing Payment or Excess Payment is to
be then made pursuant to the terms of said Notes,.(ii) that
all costs and expenses incurred by Mortgagee in connection
with such release, including reasonable attorneys' fees, shall
be paid by Mortgagor in exchange for such release, (iii) such
release is in connection with, and to enable closing of, a
bona fide sale of such condominium unit, and (iv) that said
condominium unit is then duly and properly subjected to the
Minnesota Uniform Condominium Act and to a Declaration and
By -laws filed of record under and pursuant to said Minnesota
Uniform Condominium Act.
agree:
Mortgagee and Mortgagor further covenant and
I. It is understood and agreed, anything herein
to the contrary notwithstanding, that (i) Mortgagee has no
obligation or duty by virtue of this Mortgage to grant Mort-
gagor any approvals or permits for platting, subdivision,
-15-
rezoning, or development of all or any part of the-Mortgaged
Premises, (ii) Mortgagee reserves and shall continue to have
the same authority and control over, and may impose require-
. ments in connection with, the platting, subdivision, rezoning,
and development of all or any part of the Mortgaged Premises
and Adjoining Land, and location of easements over, under
and across the Mortgaged Premises, as it has over, and as it
may impose relative to, other land in the City of Edina, and
(iii) failure or refusal of Mortgagee to grant any such approvals
or permits requested by Mortgagor shall not be a default in or
a breach of any provisions of this Mortgage by Mortgagee and
shall not subject Mortgagee to any damages or other liability
to Mortgagor under or by virtue of this Mortgage.
II. The following shall be deemed to be Events of
Default under this Mortgage:
(a) Mortgagor defaults in one or more of the terms,
covenants or conditions to be kept or performed
by it under either of the Notes, this Mortgage
or other documents evidencing and /or securing
the indebtedness secured by this Mortgage;
(b) Mortgagor defaults in one or more of the terms,
covenants or conditions to be kept or performed
by it under any Construction Mortgage or
under any note or other evidence of debt
secured by any such Construction Mortgage;
(c) Mortgagor applies for or consents to the appoint-
ment of a receiver, trustee or liquidator or the
like for itself and /or for all or substantially
all of its assets, or is unable to pay its debts
as they mature, or makes a general assignment
for the benefit of its creditors, or is adjudi-
cated a bankrupt or insolvent, or files a peti-
tion to be declared a bankrupt;
-16-
(d) an order, judgment or decree is entered by a
court or governmental agency having jurisdiction,
approving a petition seeking reorganization of
Mortgagor or appointing a receiver, trustee, li-
quidator or the like for Mortgagor and /or for all
or substantially all of Mortgagor's assets, and
remains in effect and unstayed for a period of
thirty (30) consecutive days; and
(e) Mortgagor ceases to exist, or ceases to be in
good standing under the laws of Minnesota, or
ceases to be authorized to transact business in
Minnesota, or control of Mortgagor is trans-
ferred to a person or persons not currently in
control of Mortgagor, or Mortgagor divests it-
self of any material interest, legal or equit-
able, in the Mortgaged Premises (leases of por-
tions of the Mortgaged Premises made in the
ordinary course of business and bona fide sales
of condominium units on the Mortgaged Land
made in the ordinary course of- business,
excepted).
III. At any time that an Event of Default under this
Mortgage continues, Mortgagor shall have the right, without notice,
to declare the then unpaid balance of the Notes, including, with-
out limitation, the interest thereon, and together with all sums ad-
vanced by Mortgagee hereunder, immediately due and payable and
Mortgagor hereby authorizes and empowers Mortgagee, its successors
and assigns, to foreclose this Mortgage by judicial proceedings
or to sell the then unreleased,portions of the Mortgaged Premises
at public auction as one tract or otherwise and to convey the
same to the purchaser in fee simple in accordance with the statute,
and out of the monies arising from such sale to retain all
sums secured hereby with interest and all costs and charges
of.such foreclosure and the maximum attorney's fees permitted
by law, Mortgagor to remain or be liable for any deficiency.
-17-
Failure to exercise said right or any other rights herein
given Mortgagee, however, often, shall not constitute a waiver
of the right to exercise such rights thereafter.
IV. If Mortgagee proceeds to enforce any right under
this Mortgage, whether by foreclosure or otherwise, and the
proceedings are discontinued, abandoned or adversely determined,
Mortgagor and Mortgagee shall be restored to their former
positions and rights hereunder as if such proceedings had
not been commenced.
V. The provisions of this Mortgage shall be governed
by the laws of the State of Minnesota.
VI. If Mortgagor now or hereafter includes two
or more parties, the obligations hereunder of each such
party shall be joint and several.
VII. If any provisioD of this Mortgage is for any
reason held to be invalid or unenforceable as to all or any
part of the Mortgaged Premises, or any improvement now or
hereafter located thereon, or any person or circumstance,
the application of such provision to any portion of the
Mortgaged Premises, or to any such improvement, or to persons
or circumstances, other than those as to which it shall be
held invalid and unenforceable, shall not be affected thereby,
and all provisions of this Mortgage in all other respects
shall remain in full force and effect and be valid and
enforceable.
The provisions of this Mortgage shall inure to
the benefit of Mortgagee, its successors and assigns, and
shall bind Mortgagor, its successors and assigns.
IN TESTIMONY WHEREOF, this Mortgage was duly executed
the day and year first above mentioned.
BRAEMAR ASSOCIAT S, INC.
B � �,
Y
Its
And
its
STATE OF MINNESOTA )
SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me
this day of January, 1981, by F
an 1114;""' /'V the
and of BRAEMAR ASSOCIATES, INC., a Minnesota
corporation, on behalf of said corporation.
Notary Public '
=.-RA K. KORMAN UBLIC - MINNESOTA -Pk COUNTY ion ExP:res May 19, 1987
-19-
All
SCHEDULE A
TO
MORTGAGE
(Mortgaged Land)
PART I
Parcel 1:
That part of Outlot 1, HEATH GLEN, according to the recorded .
plat thereof, Hennepin County, Minnesota, lying Easterly of
a line drawn 30 feet Easterly of and parallel with the.fol-
lowing described line:
Commencing at the intersection of the southerly
extension of the centerline of Glasgow Drive as
dedicated in said plat of HEATH GLEN, and the
centerline of West 78th Street (Old State Highway
No. 5); thence northeasterly along the centerline
of West 78th Street a distance of 250.9 feet to
a point of curve to the right; thence northeasterly
along the tangent line of said curve, a distance
of 6.32 feet to the point of beginning of the
line to be described; thence northwesterly, de-
flecting to the left "90 degrees, a distance of
210.43 feet to a point of curve to the right
with a radius of 238.23 feet and a central angle
of 67 °41130 "; thence along said curve 281.46
feet to a point of reverse curve; then along a
250 foot radius curve; concave to the West, to
the North line of said Outlot 1 and there termi-
nating.
PART II
Parcel 2:
That part of the Southwest Quarter of the Southeast Quarter of
Section 8, Township 116, Range 21, Hennepin County, Minnesota,
described as beginning at the intersection of the west line of
the East Half of said Southwest Quarter of the Southeast Quarter
of Section 8 with the south line of the north 20 rods (330 feet)
of said Southwest Quarter of the Southeast Quarter of Section 8;
thence westerly, along said south line of the north 20 rods
(330 feet) of the Southwest Quarter of the Southeast Quarter
of Section 8, a distance of 0.89 feet, more or less, to the
east line of the west 40 rods (660 feet) of said Southwest
Quarter of the Southeast Quarter of Section 8; thence southerly,
along said east line of the west 40 rods (660 feet) of the
Southwest Quarter of the Southeast Quarter of Section 8, a
distance of 516.68 feet, more or less, to the northerly right -
of -way of West 78th Street, thence easterly along said northerly
right -of -way of West 78th Street, a distance of 0.91 feet, more
or less, to said west line of the East Half of the Southwest
Quarter of the Southeast Quarter of Section 8; thence northerly,
along said west line of the East Half of the Southwest Quarter
of the Southeast Quarter of Section 8 to the point of beginning;
and
Parcel 3:
That part of the East 1/2 of the Southwest 1/4 of the Southeast
1/4 lying North of State Highway No. 5 and South of the North
20 rods, and West of County Road No. 28 all in Section 8,- Town-
ship 116, Range 21, Hennepin County, Minnesota, lying westerly
of a line described as commencing at the intersection of the
west line of said East 1/2 of the Southwest Quarter of the
Southeast Quarter of Section 8, with the south line of said
north 20 rods (330 feet) of the Southwest Quarter of the
Southeast Quarter of Section 8; thence North 89 degrees 51
minutes 34 seconds East assumed bearing, along said south
line of the north 20 rods (330 feet), a distance of 182.87
feet.to the point of beginning of the line to be described;
thence South 00 degrees 08 minutes 26 seconds East a distance
of 193.00 feet; thence South 65 degrees 45 minutes 00 seconds
West a distance of 115.00 feet; thence South 10 degrees 33
minutes 00 seconds West a distance of 91.60 feet; thence
South 34 degrees-47 minutes 00 seconds East a distance of
65.32 feet; thence South 10 degrees 59 minutes 43 seconds
East a distance of 102.45 feet, more or less, to the northerly
right -of -way of West 78th Street (Old State Highway No. 5)
and said line there terminating.
-2-
SCHEDULE B
TO
MORTGAGE
(Permitted Encumbrances)
The Permitted Encumbrances shall be the following:
1. Building and zoning laws, ordinances, state
and federal regulations;
2. Taxes and special assessments to be paid by.
Mortgagor pursuant to the Mortgage to which this Schedule B
is attached;
3. Utility and- drainage easements which do not
interfere with the proposed development of the Mortgaged
Property by Mortgagor;
4. Reservation of any minerals or mineral rights
tv the State of Minnesota; and
5. P_ non - exclusive easement for roadway and utility.
purposes hereby reserved by mortgagor over and across so much of
the mortgaged land as falls within the following described parcel:
A strip of land, 28.00 feet in width, lying 14.00
feet on each side of the following described centerline:
Commencing at the intersection of the West line of the East
l/2 cf the Southwest Quarter of the Southeast .Quarter of
Section 8, Township 116, Range 21, with the South line of
the North 20 rods (330 feet) of the Southwest Quarter of
the Southeast Quarter of said Section 8; thence North
fig degrees 51 minutes 34 seconds East., assumed bearing,
along said South line of the North 20 rods (330 feet),
a distance of 182.fi7 feet; thence South 00 degrees 08
minutes 26 seconds East, a distance of 120.91 feet to
the point of beginning of the centerline to be described;
thence North 37 degrees 40 minutes 00 seconds West a distance
of 79.54 feet; thence northwesterly a distance of 83.62
feet along a tangential curve concave to the southwest,
having a radius of 91.30 feet, and a central angle of
52 degrees 28 minutes 26 seconds; thence South 89 degrees
51 M'inutes 34 seconds West, tangent to the last described
curve, a distance of 25.00 feet; thence westerly a distance
of 39.89 feet along a tangential curve concave to the north,
raving a radius of 222.40 feet and a central angle of 10
decrees 16 minutes 38 seconds; thence North 79 decrees
51 minut -es 46 seconds West, tangent to the last described
curve, a distance of 21.00 feet to the easterly right -of -way
line of Delaney Boulevard and said centerline there termin-
ating. r
The sidelines of said easement are prolonged or shortened
to terminate o^ the easterly right -of -way line of Delaney
Boulevard and" the east line of the tract described in
Schedule A.
SCHEDULE C
TO
MORTGAGE.
(Adjoining Land)
All that part of the East 1/4 of the Southwest 1 /4 of the
Southeast 1/4 of Section 8, Township 116, Range 21, lying
south of the North 20 rods thereof, westerly of the following
described Tract A, northerly of the following described Tract
B and easterly of the following described Parcel 3:
Tract A - a strip of land over and across the Southwest
1/4 of the Southeast 1 /4.of said Section 8-; said strip being all that part of said Southwest- 1/4 of the South-
east 1/4 which lies within a distance of 33 feet on each
side of the following described centerline: From a
point on the centerline of main tract of the Minneapolis,
Northfield and southern railway, distant 190 feet North-
easterly from the South line of said Section 8;.thence
running in a Northwesterly direction at an angle of 60
degrees 44 minutes with said centerline of the main
tract for a distance of 485 feet to the point of begin-
ning of the centerline being described; thence deflect
to the right in a Northeasterly direction at an angle
of 65 degrees, 40 minutes for a distance of 800 feet,
more or less, to the centerline of Old Township Road
along the east line of said Southwest 1/4 of the South-
east 1/4 and there terminating.
Tract B - a strip of land over and across the Southwest
1/4 of the Southeast 1/4 of Section 8, Township 116,
Range 21, such strip being all that part of the above -
described tract which lies within a distance of 40 feet
on each side of the following described centerline: Be-
ginning at a point on the West boundary of the Southeast
1/4 of the Southwest 1/4 of Section 8, distant 14.5 feet
North of the Southwest corner thereof; thence running
in a Northeasterly direction at an angle of 88 degrees,
27 minutes, with said West boundary for a distance of
796.9 feet; thence deflect to the left on a 4 degree,
00 minutes curve, with a delta angle of 25 degrees, 47
minutes for a distance of 644.6 feet; thence on a tangent
to said curve for a distance of 558.2 feet; thence deflect
to the right on a 7 degree, 30 minute curve, with a radius
of 764.5 feet for a distance of 765 feet and there termi-
nating.
Parcel 3 - That part of the East 1/2 of the Southwest 1/4
of the Southeast 1/4 lying North of State Highway No. 5
and South of the North 20 rods', and West of County Road
No. 28 all in Section &, Township 116, Range 21, Hennepin
County, Minnesota, lying westerly of a line described as
commencing at the intersection of the west line of said
East 1/2 of the Southwest Quarter of the Southeast Quarter
of Section 8, with the south line of said north 20 rods
(330'feet) of the Southwest Quarter of the Southeast
Quarter of Section 8; thence North 89 degrees 51 minutes
34 seconds East, assumed bearing, along said south line
of the north 20 rods (330 feet), a distance of 182.87
feet to the point of beginning of the line to be described;
thence South 00 degrees 08 minutes 26 seconds East a dis-
tance of 193.00 feet; thence South 65 degrees 45 minutes
00 seconds West a distance of 115.00 feet; thence South
10 degrees 33 minutes 00 seconds West a distance of 91.60
feet; thence South 34 degrees 47 minutes 00 seconds East
a distance of 65.32 feet; thence South 10 degrees 59
minutes 43 seconds East a.distance of 102.45 feet, more
or less to the northerly right -of -way of.West 78th Street
(Old State Highway No. 5) and said line there terminating.
w '
feet; thence South 34 degrees 47 minutes 00 seconds East
a distance of 65.32 feet; thence South 10 degrees 59
minutes 43 seconds East a.distance of 102.45 feet, more
or less to the northerly right -of -way of.West 78th Street
(Old State Highway No. 5) and said line there terminating.
ICY
Z&25%
JAN 21-81 9 9(9 9 S 024.0020
U-1
OFFICE OF C11UY! C a R M-l-,
HENNEPIN Ci 1,101 "Y.KhNi
CERTim!"
1981 JAN 21 AN 10: 29
AS DOCUMENT 04619599
�CEPUT I
110)(333
0 V,