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HomeMy WebLinkAbout2360AGREEMENT (Special Assessment for Traffic Signal) -Z3 4e THIS AGREEMENT is made this day of 19_ff by and between FAIRVIEW HOSPITAL AN HEALTHCARE SERVICES, a Minnesota non- profit corporation, ( "Owner ") and CITY OF ED NA, a Minnesota municipal corporation, ( "City"). RECITALS: FIRST: Owner is the fee owner of certain real property ( "Property ") located in the City of Edina, Hennepin County, Minnesota, legally described on Exhibit A attached hereto and hereby made a part hereof. SECOND: City on June 15, 1987, in case no. P -86 -5 did approve a Final Development Plan for the Property, including a variance relative to parking setbacks, subject to a number of conditions, one of which related to the obtaining from Owner of an agreement to pay part of the costs of constructing the Traffic Signal (defined below). THIRD: Owner is agreeable to the payment of a share of the cost of constructing the Traffic Signal on the terms and conditions herein set out. NOW, THEREFORE, in consideration of the granting by City of the Final Development Plan approval and parking setback variance in the above - referenced case, and in consideration of the mutual covenants and agreements of the parties herein, it is hereby agreed as follows: 1. If City shall hereafter decide to construct or install, or have constructed or installed, the Traffic Signal, it shall be constructed and /or installed by City pursuant to then applicable City standards, and then normal City procedures, and may be assessed, in whole or in part, by City pursuant to then applicable Minnesota Statutes and City procedures, and Owner agrees that City may levy an assessment against the Property in an amount equal to not more than 25% of the total cost of the Traffic Signal. For purposes hereof, "Traffic Signal" shall mean one fully activated traffic signal located at West 65th Street and Drew Avenue South. A fully activated traffic signal shall include, but not be limited to, poles, mast arms, signal heads for all traffic movements and directions, cabinets, power sources, loop detectors, with all of the foregoing. cost of the Traffic Signal the cost of constructing then normally charged by services and other costs connection with projects including interest at the and all electrical wiring associated Also, for purposes hereof, the total shall include, but not be limited to, and /or installing the same, the cost City for its own engineering staff then normally included by City in .or which assessments are levied, and rate then charged by City on such costs, including such engineering costs, from the date the costs were incurred up to the date of the levy of the assessment. 2. If such an assessment is levied against the Property, the Owner shall not object to such assessment or levy in any way, or as to any particular, including, without limitation, the amount of the assessment, the allocation of the assessment among benefitted properties (it being agreed that the Property shall be benefitted by the Traffic Signal, and it being understood and agreed that some benefitted properties may not be assessed at all for the Traffic Signal), or the hearing process, and shall and hereby does, waive any and all objections to such assessments and the levy thereof and the process to determine the same, including, without limitation, waiver of any and all notices and hearings required by then applicable statutes in connection with the making of such Traffic Signal improvement or the levying or such assessments. 3. All notices or demands required or permitted to be given under this Agreement shall be in writing and shall be deemed to be given when personally delivered to any officer of the party to which notice is being given, or when deposited in the United States mail in a sealed envelope, with registered or certified mail, postage prepaid thereon, addressed to the parties at the following addresses: To City: 4801 West 50th Street Edina, MN 55424 Attn: City Manager To Owner: Fairview Hospital and Healthcare Services, 6401 France Avenue South Edina, MN 55435 Attn: Administrator Such addresses may be changed by any party upon notice to the other party as herein provided. - 2 - 4. The terms and provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, and shall run with the title to the Property and be binding upon all present and future owners of all or any part of the Property. 5. The undersigned warrants and represents that Owner has full power and authority to enter into this Agreement and that the undersigned can act for and bind Owner to the provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed the day and year first above written. OWNER: FAIRVIEW HOSPITAL AND HEALTHCARE SERVICES its: CITY: CITY OF EDINA By: >- Fr erick S. Richar Its May r And: Kenneth E. Rcjsland Its Manager - 3 - STATE OF MINNESOTA) ) ss. COUNTY OF HENNEPIN) The foregoing instrument was acknoWledge bore me this day of , l9c8q, by �u� t� , the of 0 Fairview Hospi (f-al and Healthcare Services, a Minnesota non - profit corporation, on behalf of the corporation. Notary Public `.Patzicia oq Buzirxratrr HENNEPIN COUNTy STATE OF MINNESOTA) NpTmmisi nexpiB4Nfc249- '" My commies +on expires 2 -19 -92 ss. COUNTY OF HENNEPIN) �.,t.�The fo eg ing i stru nt was acknowledged before me this / �- day o 19,D by Frederick S. Richards and Kenneth E. Rosland, the ayor a d Manager, respectively, of the City of Edina, a Minne' to municipal corporation, on behalf of said municipal corporation. Notary Public J. SKARE �iG n� �OTA h0 y My cc....... , ,. - This instrument was drafted by: Dorsey & Whitney (JES )�L�zi-� !v ZNdQ ARK`S 2200 First Bank Place East �7Z Minneapolis, MN 55402 == r EXHIBIT A Legal Description Lot 1, Block 1, Fairview Southdale Addition, according to the plat thereof on file and of record in the office of the Registrar of Titles, Hennepin County, Minnesota. 20142GG 'REGISTERED VOLea�&- PAGE��/ eZ —s 4v COPY OFFICE OF THE REGISTRAR OF TITLES HENNEPIN COUNTY, MINNESOTA CERTIFIED FILED ON MAY 2 21989 '4-� G-4, REGISTRAR OF TITLES L DEPUTY Igoe S e—/ -t- w HH ru & `( A-"-&)'. c- c N D k j "0000007 .Z 3 L o !- DECLARATION OF EASEMENTS AND COVENANTS u 0 THIS DECLARATION, Made and entered into this day of 11 1.';;:.- °::. } , 1989, by and between FAIRVIEW HOSPITAL AND HEALTHCARE SERVICES, a Minnesota nonprofit corporation (herein- ` after referred to as "Fairview "), and FAIRVIEW SOUTHDALE PHYSICIANS BUILDING LIMITED PARTNERSHIP, a Minnesota limited � partnership (hereinafter referred to as "Partnership "); CNy WITNESSETH, THAT: WHEREAS, Fairview is the fee owner of the tract of land (hereinafter referred to as the "Fairview Land ") and the hospital building constructed thereon (hereinafter referred to as the "Hospital ") which is located in the City of Edina, County of Hennepin and State of Minnesota and is legally described in Exhibit A attached hereto; and WHEREAS, pursuant to a Ground Lease of even date herewith (hereinafter referred to as the "Ground Lease "), Fairview has leased to Partnership the tract of land (herein- after referred to as the "Partnership Land "), adjoining the Fairview Land, which is legally described in Exhibit B attached hereto; and WHEREAS, pursuant to the Ground Lease, Partnership has agreed to construct a medical office building (hereinafter referred to as the "Office Building ") on the Partnership Land, a parking ramp structure (hereinafter, together,,w the ( AND F F at-';.' 7 N:1,E A existing parking ramp structure attached thereto and located on the Fairview Land, referred to as the "Parking Ramp ") in the Northeasterly portion of the Fairview Land, a tunnel (hereinafter referred to as the "Tunnel ") located in part beneath the surface of the Partnership Land and in part beneath the surface of the Fairview Land and connecting the Office Building and the Hospital, and various other site improvements to the Fairview Land and the Partnership Land; and WHEREAS, Fairview and Partnership desire to enter into this Declaration for the purpose of granting to each other various easements necessary for the construction, use and operation of the Office Building, the Parking Ramp, the Hospital and the Tunnel, and setting forth various agreements, covenants and restrictions with respect thereto. NOW, THEREFORE, in consideration of the mutual covenants herein contained, Fairview and Partnership do hereby agree as follows: 1. Temporary Construction Easement. Fairview hereby grants to Partnership an easement to use that portion of the Fairview Land which is located within the area shown cross- hatched on the site plan attached hereto as Exhibit C, together with such additional portions of the Fairview Land as are reasonably necessary for construction of the site improvements to the Fairview Land, for the purpose of constructing the improvements described in the plans and specifications which - 2 - { are listed on Exhibit B to the Ground Lease (hereinafter referred to as the "Plans "). Partnership shall use only so much of said premises and for such periods of time as are reasonably necessary for such purposes. This easement shall terminate upon the completion of construction of such improve- ments, but in no event later than September 30, 1990. Partnership shall at its expense procure and maintain liability insurance in the amount of at least $1,000,000 covering the risk of death or injury to persons and damage to property incident to such construction activities, which policy shall name Fairview as an additional insured party. Partnership further covenants and agrees to defend, indemnify and hold Fairview harmless, and Fairview is hereby expressly relieved, from any and all claims, liability, loss or damage arising by reason of any death, injury, loss or damage to any person or property in connection with such construction activities, except as may result from the negligent or intentional acts of Fairview or its agents. 2. Access. Fairview hereby grants to Partnership, for the benefit of the Partnership and the future owners and tenants of the Office Building and its and their agents, employees and invitees, a perpetual, non - exclusive easement to use the roadway which now exists and is to be widened by the Partnership over and across those portions of the Fairview Land which are shown crosshatched on the site plan attached - 3 - s hereto as Exhibit D, for the purpose of ingress and egress of vehicles between the Partnership Land and West 65th Street. Upon completion of such widening, the Partnership shall cause such easement areas to be surveyed and the parties shall execute and record a supplement to this Declaration for the purpose of setting forth the legal descriptions thereof. Fairview shall have the right to from time to time relocate such easement areas provided that such relocated easement areas shall provide a reasonable means of vehicular access between the Partnership Land and West 65th Street, and provided further that Fairview shall at its expense relocate the roadway entire- ly within such relocated easement areas. Partnership hereby grants to Fairview, for the benefit of Fairview and the future owners and tenants of the Hospital and their agents, employees and invitees, a perpetual, non - exclusive easement to use the roadways which are to be constructed over and across that portion of the Partnership Land which is shown crosshatched on the site plan attached hereto as Exhibit E, for the purpose of ingress and egress of vehicles to and from the Parking Ramp and between the segments of the roadway located on the premises shown crosshatched on Exhibit D. Upon completion of such roadways, the Partnership shall cause such easement area to be surveyed and the parties shall execute and record a supple- ment to this Declaration for the purpose of setting forth the legal description thereof. Fairview shall keep and maintain - 4 - I j all of the roadways referred to herein, including those located on the Partnership Land, in good condition and state of repair and reasonably clear of accumulations of ice and snow. 3. Tunnel. Notwithstanding anything to the contrary contained in the Ground Lease, title to the Tunnel shall vest in Fairview. Fairview shall at all times keep the Tunnel insured against loss or damage by fire and extended coverage risks for the full replacement cost thereof. In the event that the Tunnel shall be damaged or destroyed, Fairview shall, at its sole cost and expense and as expeditiously as is reasonably possible, repair and restore the Tunnel to substantially the same condition as existed prior to such damage or destruction, and Partnership grants to Fairview an easement to enter upon and utilize so much of the Partnership Land and for such period as may be reasonably necessary for such purpose; provided, however, that Fairview shall have no obligation to repair or restore the Tunnel if the Hospital shall no longer exist. Notwithstanding the preceding sentence, if the Tunnel is damaged or destroyed by an occurrence which is not insured under the standard form of all -risk casualty insurance policy, the Partnership shall be responsible for 50% of the cost incurred for repair and restoration thereof. Fairview grants to Partnership, for the benefit of the Partnership and the future owners and tenants of the Office Building and its and their agents, employees and invitees, a non - exclusive easement - 5 - to use the Tunnel for the purpose of ingress and egress between the Office Building and the Hospital, which easement shall continue in effect for so long as the Hospital shall continue to exist. Fairview shall have the right to reasonably regulate use of the Tunnel, provided that use thereof between the hours of 7:00 A.M. to 6:00 P.M., Monday through Friday, and 7:00 A.M. to 1:00 P.M. on Saturday shall always be allowed. Partnership shall, at its sole cost and expense, furnish all necessary heat, ventilation, air conditioning and electricity to the Tunnel. Fairview shall keep and maintain the Tunnel in good and clean condition and state of repair, and Partnership shall reimburse Fairview for 50% of all direct costs incurred by Fairview for such maintenance, as reasonably determined by Fairview. Such reimbursement shall be made within 10 days after Fairview's submission to Partnership of statements therefor. Fairview covenants and agrees to defend, indemnify and hold Partnership harmless from any and all claims, liability, loss or damage arising by reason of any death, injury, loss or damage to any person or property within the Tunnel, except as may result from the negligent or intentional acts of the Partnership or its agents. 4. Access to Tunnel. Partnership grants to Fairview, for the benefit of Fairview and the future owners and tenants of the Hospital and their agents, employees and invitees, a non - exclusive easement to use the walkways to be - 6 - C 1 constructed between the Parking Ramp and the Office Building and to use the hallways, elevators and stairways located on the basement and first floor levels of the Office Building which are shown crosshatched on the floor plans attached hereto as Exhibits F -1 and F -2, for the purpose of ingress and egress between the Tunnel and the Parking Ramp, which easement shall continue in effect for so long as the Hospital shall continue to exist. Partnership shall have the right to reasonably regulate the use of such hallways, elevators and stairways, provided that use thereof between the hours of 7:00 A.M. to 6:00 P.M., Monday through Friday, and 7:00 A.M. to 1:00 P.M. on Saturday shall always be allowed. Partnership shall, at its sole cost and expense, operate, keep and maintain such walkways, hallways, elevators and stairways in good and clean condition and state of repair. Partnership covenants and agrees to defend, indemnify and hold Fairview harmless from any and all claims, liability, loss or damage arising by reason of any death, injury, loss or damage to any person or property occurring at such walkways, hallways, elevators and stairways, except as may result from the negligent or intentional acts of Fairview or its agents. 5. Utilities. Fairview grants to Partnership, for the benefit of the Partnership Land, an easement for the installation, use, maintenance and repair of the underground utility lines and facilities shown and described in the Plans, - 7 - including the right to connect to Fairview's existing utility lines, across and beneath the surface of those portions of the Fairview Land which are shown shaded on the utilities plan attached hereto as Exhibit G. Upon completion of installation of-such utility lines and facilities, the Partnership shall cause such easement areas to be surveyed and the parties shall execute and record a supplement to this Declaration for the purpose of setting forth the legal descriptions thereof. Partnership shall, at its expense, promptly repair and restore any damage to improvements or landscaping resulting from the installation, use, maintenance or repair of such utility lines and facilities. Partnership further covenants and agrees to defend, indemnify and hold Fairview harmless, and Fairview is expressly released, from any and all claims, liability, loss or damage arising by reason of any death, injury, loss or damage to any person or property in connection with such utility lines and facilities. 6. Use of Office Building. (a) The Office Building shall be used primarily for medical office purposes, but portions thereof may also be used for medically- related commercial purposes and services ancillary thereto, including but not limited to a pharmacy and optical store. For a period of 30 years from and after the date hereof, no space in the Office Building shall be leased or used for any of the following purposes ( "Prohibited Uses "): 2 (i) abortion clinic; (ii) surgicenter or surgical clinic or center; or (iii) primarily for laboratory, radiology, diagnostic or other services which are at any time and from time to time offered in Minneapolis -St. Paul metropolitan area hospitals providing hospital services similar to those provided at the Hospital; provided, however, that in no event shall this subparagraph (iii) be construed to restrict the use and /or leasing of space in the Office Building to physicians and /or surgeons for purposes of general medical office space. In the event that the Partnership in good faith proposes to lease space in the Office Building to a bonafide tenant for any use other than a Prohibited Use, then within 10 days following the receipt by Fairview from the Partnership of said proposed lease, time being of the essence, Fairview shall either (i) approve said lease, or (ii) notify the Partnership of its election to lease such space upon the same terms and conditions as contained in the proposed lease, except as otherwise provided herein, whereupon Fairview and the Partner- ship shall promptly enter into such lease. If Fairview fails to so notify the Partnership within such 10 -day period, then it shall be deemed to have approved the proposed lease. If Fairview exercises its right to lease such space as provided in clause (ii) above, no further space elsewhere in the Office Building shall be proposed for leasing to said proposed tenant. If Fairview approves or is deemed to have approved a proposed lease, then the Partnership shall be free to lease such space to the proposed tenant notwithstanding the use authorized by the lease provided it is not a Prohibited Use. Notwithstanding anything to the contrary contained in the proposed lease, if Fairview exercises its right to lease space in the Office Building as provided in clause (ii) above, the lease shall provide that the lessor may not unreasonably with- hold or delay its consent to any assignment of the lease or subletting of all or any part of the space, but that Fairview shall in no event be released from liability under the lease. (b) Fairview shall defend, indemnify and hold the Partnership harmless from any loss, liability and expense (including reasonable attorneys' fees) arising out of any claim of restraint of trade or any other claim of unlawful restric- tion asserted by any party by reason of subparagraph (a) hereof, provided that the Partnership shall give reasonable notice to Fairview of any such asserted claims, permit Fairview to select counsel to defend the same, and authorize Fairview to determine all defenses, legal procedures, strategy and other aspects of all litigation pertaining to such asserted claim. (c) If the Partnership shall enter into, or propose to enter into, any lease of space in the Office Building in - 10 - violation of the restrictions and covenants contained in subparagraph (a) hereof, then Fairview shall have any one or more of the following remedies: (i) a claim for damages; (ii) a claim for injunctive relief; and (iii) any other remedy provided at law or in equity. 7. Parking Ramp and Facilities. Fairview hereby grants to Partnership, for the benefit of the Partnership and the future owners and tenants of the Office Building and its and their agents, employees and invitees, a perpetual, non - exclusive easement to use the Parking Ramp for automobile parking purposes in accordance with the provisions. hereof. Fairview shall at all times keep the Parking Ramp insured against loss or damage by fire and extended coverage risks for the full replacement cost thereof. In the event that the Parking Ramp shall be damaged or destroyed, Fairview shall, at its sole cost and expense and as expeditiously as is reason- ably possible, repair and restore the Parking Ramp to substantially the same condition as existed prior to such damage or destruction. Fairview may at any time, at its sole cost and expense, enlarge or otherwise alter the Parking Ramp provided that such alterations do not reduce the number of parking spaces therein and are consistent with the archi- tectural design of the Parking Ramp. For purposes hereof, the following terms shall have the following meanings: - 11 - "Total Parking Facilities" shall mean the Parking Ramp (including any future expansions thereof) and all surface parking lots now or hereafter located on the Fairview Land (except the two parking areas, containing a total of approximately 20 parking spaces, located adjacent to the Hospital receiving dock and the power plant located on the Fairview Land), including all equip- ment and lighting used in the operation thereof, together with all roadways now or hereafter located on the Fairview Land and /or the Partnership Land. Fairview may at any time remove, add to or otherwise alter the surface parking lots located on the Fairview Land, provided that at least the minimum number of parking spaces required by the City of Edina for all buildings located on the Fairview Land and the Partnership Land shall at all times be provided thereon. "Parking Facilities Expenses" shall mean all costs and expenses incurred by Fairview in connection with the operation and maintenance of the Total Parking Facilities, including but not limited to the following: (i) All real estate taxes and special assessments payable with respect to the Parking Ramp. (ii) The cost of all maintenance (including snow removal) and repairs. (iii) Wages, salaries and benefits paid to all employees engaged in the operation or - 12 - management of the Total Parking Facilities. Such wages, salaries and benefits paid to employees who are not exclusively so engaged shall be prorated based upon relative time devoted thereto. (iv) Utility costs. (v) The cost of all supplies and materials used in the operation of the Total Parking Facilities. (vi) The premiums for all casualty and liability insurance maintained with respect to the Parking Ramp. (vii) Management fees paid to parties not affili- ated with Fairview. (viii) All taxes, excises and other charges of any kind which may be imposed by any governmental authority on revenues generated from the operation of the Total Parking Facilities. The cost of all capital improvements to and replacements of the Total Parking Facilities (including resurfacing of paved areas) shall not be included in Parking Facilities Expenses, and all necessary capital improve- ments and replacements shall be made by Fairview at its sole cost and expense. If the Partnership and Fairview disagree as to the need for any capital improvement or - 13 - replacement, then the matter shall be resolved by arbitration in accordance with subparagraph 8(b) hereof. If Fairview fails to commence any such capital improvement or replacement so determined to be necessary within 30 days after the issuance of the arbitrators' decision, or to diligently pursue such work to completion, then the Partnership may make or complete such capital improvement or replacement and Fairview shall pay to the Partnership upon demand all costs incurred by the Partnership in connection therewith. "Partnership's Proportionate Share" shall mean the ratio of 420 divided by the total number of parking spaces from time to time provided by the Total Parking Facili- ties, which shall be determined annually as of January lst. Fairview shall keep and maintain the Total Parking Facilities in good, clean and operable condition and state of repair. The Total Parking Facilities shall be operated so as to provide paid parking, on an unreserved, hourly /daily fee basis, for the agents, employees and invitees of Fairview and for the tenants of the Office Building and their agents, employees and invitees; provided, however, that (a) subject to the following provisions, Fairview shall have the right to lease parking spaces in the Total Parking Facilities to individuals designated by it on an unreserved, monthly basis, and (b) Fairview shall lease to individuals designated by - 14 - Partnership from time to time, on an unreserved, monthly basis, up to 200 parking spaces in the Parking Ramp; provided further, however, that at all times at least 240 parking spaces in the Parking Ramp shall be available for parking on an hourly /daily fee basis. Uniform rates shall be charged for monthly parking in the Parking Ramp, but a lower rate may be charged for monthly parking elsewhere in the Total Parking Facilities. Such parking fees and monthly parking rates shall be determined from time to time by Fairview, after consultation with the Partnership, but shall be set so as to attempt to generate total revenues from the operation of the Total Parking Facilities ( "Parking Revenues ") sufficient (but not substan- tially in excess of that necessary) to pay on a monthly basis all Parking Facilities Expenses, plus (i) the amount provided in subparagraph (b) hereof, (ii) $3,250 and (iii) 1% of the Ramp Addition Cost (as such term is hereinafter defined). If the Parking Revenues for any three consecutive months are insufficient to pay such total monthly amount, then the parking fees and rates shall be increased accordingly. Fairview shall keep and maintain (for at least 4 years) complete and accurate books and records of all Parking Revenues and Parking Facilities Expenses, which books and records shall be open to inspection by Partnership at all reasonable times. From and after the first day of the month following substantial completion of the addition to the Parking Ramp to be constructed by the Partnership (excluding the -'15 - pouring of the concrete floor on the ground level thereof) and the installation by the Partnership of all necessary Total Parking Facilities equipment, and thereafter until December 31, 2019, all Parking Revenues arising during each month of such term shall be paid and applied as follows and in the following order of priority: (a) First to Fairview in payment of all Parking Facilities Expenses incurred by Fairview. The monthly amount retained by Fairview hereunder shall be equal to 1 /12th of the total Parking Facilities Expenses for the current year, as reasonably estimated by Fairivew; and at the end of each year the actual Parking Facilities Expenses for such year shall be determined and any underpayment or overpayment shall be applied to the amount retained by Fairview hereunder for the first month of the following year. However, if at any time there are insufficient Parking Revenues to pay current Parking Facilities Expenses, Fairview may notify Partnership of such deficit and Partnership shall pay to Fairview the Partnership's Pro- portionate Share of such deficit within 10 days after such notice from Fairview. - 16 - e (b) Second to Fairview in an amount equal to 1 /378ths of the Ramp Addition Cost. (c) Third to the Partnership in an amount equal to the lesser of (i) 59 /10,000ths of the Ramp Addition Cost, or (ii) $16,800. (d) Fourth to the Partnership to the extent of (i) any sums paid by the Partnership to Fairview pursuant to the third sentence of subpara- graph (a) hereof, together with interest thereon at the rate of 10% per annum, and (ii) any difference between the amount payable and the amount actually paid to the Partnership pursuant to subparagraph (c) hereof for each previous month, together with interest thereon at the rate of 10% per annum. (e) All remaining Parking Revenues for each month shall be the property of Fairview. For purposes hereof, the term "Ramp Addition Cost" shall mean the Total Cost of the addition to the Parking Ramp, as determined in accordance with paragraph (a) of Section 5.02 of the Ground Lease, but not more than $2,864,000. When the Ramp Addition Cost has been determined, the parties shall execute and record a supplement to this Declaration for the purpose of specifying the amounts provided in subparagraphs (b) and (c) hereof. - 17 - ! 1 The sums payable to the Partnership pursuant to subparagraphs (c) and (d) hereof shall, if there are sufficient Parking Revenues to pay the same, be paid within 30 days after the end of each month, and at such times Fairview shall furnish to Partnership a written accounting of all Parking Revenues and Parking Facilities Expenses during such month. The Partnership may assign its rights to receive such payments and upon being furnished with any such written assignment, Fairview shall thereafter pay the same to the assignee therein named, its successors and assigns, unless and until it shall be notified otherwise in writing by such assignee. Partnership agrees that, to the extent such payments are paid to the assignee, Fairview shall have no further liability to the Partnership therefor. Any mortgagee of the Partnership Land or of the lessee's interest therein under the Ground Lease who acquires title thereto by foreclosure of such mortgage or conveyance in lieu thereof may at any time by written notice to Fairview elect not to be entitled to receive the sums thereafter payable to the Partnership pursuant to subparagraphs (c) and (d) hereof, in which event it shall have no further obligation to contribute to any deficit between Parking Revenues and Parking Facilities Expenses as provided in subparagraph (a) hereof. Any such election shall remain in effect for so long as such mortgagee is the owner of the Partnership Land or of the lessee's interest therein under the Ground Lease. - 18 - e From and after January 1, 2020, all Parking Revenues shall be the exclusive property of Fairview and Fairview shall have sole authority to establish parking fees and rates (including the right to dispense therewith), and the Partner- ship shall have no further obligation to contribute to any deficit between Parking Revenues and Parking Facilities Expenses. 8. Miscellaneous. (a) Any sums payable by either party pursuant to this Declaration which are not paid when due shall bear interest from the date due until paid at the rate of twelve percent (12 %) per annum, or such lesser rate as may be the maximum allowed by law, and the defaulting party shall also be liable for all costs of collection thereof, including reasonable attorneys' fees. (b) Any dispute which may arise concerning this Declaration shall be resolved by arbitration in accordance with the Minnesota Uniform Arbitration Act, Minnesota Statutes Chapter 572, as the same may hereafter be amended or pursuant to any replacement statute hereafter adopted. The issue shall be determined by a board of three (3) reputable and disinter- ested arbitrators, each of whom shall be a person experienced in the ownership and operation of commercial real estate and shall have no disqualifying interest. one arbitrator shall be appointed by each party and a third arbitrator shall be - 19 - appointed by the first two. If the first two arbitrators are unable to agree on a third within thirty (30) days after the appointment of the second arbitrator, or if either party fails to appoint an arbitrator as herein provided, then such arbitrator shall be appointed by a judge of the highest state trial court then sitting in Hennepin County, Minnesota. (c) All notices, demands or other writings in this Declaration provided to be given or made shall be deemed to have been fully given or made when deposited in the United States mail, certified or registered mail, postage prepaid, and addressed as follows: To Fairview: Fairview Hospital and Healthcare Services 2312 South Sixth Street Minneapolis, Minnesota 55454 Attention: Director of Property Management To Partnership: Fairview Southdale Physicians Building Limited Partnership c/o BTO Development Corporation 1000 Shelard Parkway Suite 500 Minneapolis, Minnesota 55426 or to such other address as either party may notify the other party of by not less than 10 days' prior written notice. (d) This Declaration shall run with fee title to the Fairview Land and with title to the leasehold estate in the Partnership Land created by the Ground Lease or any new ground lease entered into pursuant to Section 17.02 of the Ground Lease (and, in the event of termination of the Ground - 20 - Lease or any such new ground lease, with fee title to the Partnership Land), and shall be binding upon and inure to the benefit of Fairview and Partnership and their respective successors in interest thereto. However, a party shall only be liable hereunder for the obligations which arise hereunder during the period of its ownership of such real estate. (e) This Declaration may not be modified or amended without the written approval of the holder of each recorded mortgage now or hereafter covering all or any part of or interest in the Partnership Land or the Fairview Land. (f) The access easement granted to Partnership pursuant to paragraph 2 hereof shall neither be terminated or narrowed to less than 30 feet at any point nor shall the use thereof by Partnership and the future owners and tenants of the Office Building and its and their agents, employees and invitees be restricted, without the prior written consent of the City of Edina. The parking easement granted to Partnership pursuant to paragraph 7 hereof shall neither be terminated nor shall either the number of parking spaces in the Parking Ramp to be available for monthly leasing to individuals designated by Partnership (i.e. 200) or the minimum number of parking spaces in the Parking Ramp to be available for parking on an hourly /daily fee basis (i.e. 240) be reduced, without the prior written consent of the City of Edina. - 21 - IN WITNESS WHEREOF, Fairview and Partnership have caused this Declaration to be duly executed as of the date first above written. FAIRVIEW HOSPITAL AND HEALTHCARE SERVICES By: And: 72-? It sT 1 FAIRVIEW SOUTHDALE PHYSICIANS BUILDING LIMITED PARTNERSHIP By: BTO Development Corporation, Its General Partner By: its: And: Its: STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this Z ?*, day of FE&4,hz j , 1989, by and ..]'R,-in P, Fu< , the UiLz- ��, =s,� ,- and jKc7�s�� respectively, of FAIRVIEW HOSPITAL AND HEALTHCARE SERVICES, a Minnesota nonprofit corporation, on behalf of the corporation. 1 Notary Public- :,-...,.,.., , - 22 - STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN ) The fo oing instrument was acknowledged before me this day of �,q , 1989, b���lfi��� }{,�►1�G� --eTfd , the a , respectively, of BTO Development Corporation, a Minnesota corporation, the General Partner of FAIRVIEW SOUTHDALE PHYSICIANS BUILDING LIMITED PARTNERSHIP, a Minnesota limited partnership, on behalf of said corporation and said limited partnership. LORI J. 1� NOTAftPUN C tary Pub is RAMSEY COUNTY t. :7 CJmmiss On Expires Apr. 136 ISM Pop This Instrument Was Drafted By: DORSEY & WHITNEY (DB) 2200 First Bank Place East Minneapolis, Minnesota 55402 - 23 - Exhibit A Fairview Land Parcel 1: The North 1,328.73 feet of Lot 2, "Cassin's Outlots ", according to the plat thereof on file or of record in the office of the County Recorder in and for Hennepin County, Minnesota, except that part thereof platted as Evans Addition, and also except that part thereof which lies westerly of the following described Line "X" and southerly of the southerly line of the highway easement described in Registrar of Titles Document Numbers 576247, 576767 and 1972506, and also except that part thereof which lies easterly of said Line "X", southerly of the southerly.line of said highway easement and northwesterly of a 90.00 foot radius curve concave to the southeast and tangent to both said southerly line of said highway easement and said Line "X ". Line "X" is a line drawn parallel with and distant 48.00 feet easterly of the following described line: Also except that part thereof described as follows: Commencing at a point on the West line of Section 29, Township 28 North, Range 24 West, distant 1,107.10 feet North of the West Quarter corner thereof (the West line of said Section 29 is assumed to bear North 0 000'30" West); thence run easterly at an angle of 74 024100" (as measured from North to East) for a distance of 124.10 feet; thence deflect left along a tangential curve having a radius of 1,527.89 feet (delta angle 18 02615511) for a distance of 491.96 feet; thence South 34 003'25" East along a radial line away from the center of said curve a distance of 50.00 feet to the point of intersection with the following described Line "A" and the point of beginning; thence South Commencing at the southwest corner of the Northwest Quarter of Section 29, Township 28, Range 24; thence run northerly along the west line of said Northwest Quarter for a distance of 630.6 feet; thence deflect right at an angle of 90 degrees for a distance of 10 feet to the actual point of beginning of the line being described; thence deflect left at an angle of 90 degrees for a distance of 100 feet; thence deflect right along a tangential curve having a radius of 5,729.58 feet (delta angle 1 degree 09 minutes 00 seconds) for a distance of 115.0 feet; thence tangent to said curve for a distance of 84.30 feet; thence deflect left along a tangential curve having a radius of 5,729.58 U feet (delta angle 1 degree 09 minutes 00 seconds) for a �. distance of 115.0 feet; thence tangent to said curve for a distance of 100 feet and there terminating. Also except that part thereof described as follows: Commencing at a point on the West line of Section 29, Township 28 North, Range 24 West, distant 1,107.10 feet North of the West Quarter corner thereof (the West line of said Section 29 is assumed to bear North 0 000'30" West); thence run easterly at an angle of 74 024100" (as measured from North to East) for a distance of 124.10 feet; thence deflect left along a tangential curve having a radius of 1,527.89 feet (delta angle 18 02615511) for a distance of 491.96 feet; thence South 34 003'25" East along a radial line away from the center of said curve a distance of 50.00 feet to the point of intersection with the following described Line "A" and the point of beginning; thence South Y N G 0 001'10" West a distance of 188.77 feet; thence South 58 1109'16" East a distance of 144.69 feet; thence North 30 040'40" East a distance of 62.39 feet; thence North 0 001'10" East a distance of 335.85 feet to a point of intersection with said Line "A "; thence southwesterly along said Line "A" to the point of beginning. Line "A" is a line drawn parallel with and distant 50 feet Southeasterly of the following described line: Beginning at a point on the West line of Section 29, Township 28 North, Range 24 West, distant 1,107.10 feet North of the West Quarter corner thereof; thence run easterly at an angle of 74 024' (as measured from North to East) for a distance of 124.1 feet; thence deflect left along a tangential curve having a radius of 1,527.89 feet (delta angle 19 0231) for a distance of 516.9 feet; thence tangent to said curve for a distance of 30 feet; thence deflect left along a tangential curve having a radius of 716.2 feet (delta angle 16 0591) for a distance of 212.3 feet and there terminating. Parcel 2: The West 280.5 feet of that part of Lot 3 lying North of the South 654.78 feet thereof; except that part of the East 45.50 feet thereof lying South of the Southeasterly right -of -way line of County Highway No. 62, and except that part thereof platted as "Evans Addition ", "Cassin's Outlots ", according to the plat thereof on file or of record in the office of the County Recorder in and for said County. - 2 - That part of the North Outlots ", according to the office of the Coun Minnesota, except that described as follows: F.xhi hi t. R Partnership Land 1,328.73 feet of Lot 2, "Cassin's the plat thereof on file or of record in ty Recorder in and for Hennepin County, part thereof platted as Evans Addition, Commencing at a point on the West line of Section 29, Township 28 North, Range 24 West, distant 1,107.10 feet North of the West Quarter corner thereof (the West line of said Section 29 is assumed to bear North 0 000130" West); thence run easterly at an angle of 74 024100" (as measured from North to East) for a distance of 124.10 feet; thence deflect left along a tangential curve having a radius of 1,527.89 feet (delta angle 18 °26'5511) for a distance of 491.96 feet; thence South 34 003125" East along a radial line away from the center of said curve a distance of 50.00 feet to the point of intersection with the following described Line "A" and the point of beginning; thence South 0 001110" West a distance of 188.77 feet; thence South 58 009'16" East a distance of 144.69 feet; thence North 30 040140" East a distance of 62.39 feet; thence ,North 0 001110" East a distance of 335.85 feet to the following described Line "A "; thence southwesterly along said Line "A" to the point of beginning. Line "A" is a line drawn parallel with and distant 50 feet Southeasterly of the following described line: Beginning at a point on the West line of Section 29, Township 28 North, Range 24 West, distant 1,107.10 feet North of the West Quarter corner thereof; thence run easterly at an angle of 74 124' (as measured from North to East) for a distance of 124.1 feet; thence deflect left along a tangential curve having a radius of 1,527.89 feet (delta angle 19 0231) for a distance of 516.9 feet; thence tangent to said curve for a distance of 30 feet; thence deflect left along a tangential curve having a radius of 716.2 feet (delta angle 16 0591) for a distance of 212.3 feet and there terminating. ro aj 4j U � C O H W � U t-4 4J to C O U r mom colnomolow" 1 I ` L taw .. �AEEr EXWTDOU F*JW.q R OEVEL,OPIiEW II :'r Ia =P r r I • /, t S! 1"OMED RM1( Rate MDdIK MIICT I / WVAL IIJIMING WALOM AMA *%M Will - ! r / it L '[T\ \ . �• IUD.ODID NEW tliJf.O Palm dA �w�yrw � � f VIAL t1t<PY AMA UU.1 EM .� ti��• 3 r .�'�� RII.Md fEdAltEa ILLDE'K PM @MAM .�.� w •t. \ IMO1CAL Of SULOM Fwwwm .O/1(N NI tD(K ql A^W &A.QMN( LEM t.. 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M........... «« CWP C! r r. •w « sukows ... _— . _� �._.. ..a. r_ _ •v ..r: �T exnrfa MIIIISIO 11111/ I it �'� l y`q `II [nnlra no.r •t+fa / l I / �'� •r •Yb•O•a0 Larlt•at men MY•Ow0 Mar Yrfa �J wwouf rLnarwr ncstalo MovtrlLL. 7 \ a.,l1Y• Y...aY•YY. ` •Ir.nwna ••Y, ,x•.• • r•rt 1` ►OWM KASl 'I YKnMn aY al wrw YmnrL 1 l ! §U DMO ww n te.Yrwcns r 1 rMf• IYPYML/A tY1N9t •ffY1Mf st iMaYLLOr. Met. ilUrY. • LNf6 1111. �� ��!�� � IY wa ' ------- Sul _ sYl M01 s0. f000s -OA I r i r I Z 3�a 2000007 ausl uED VOL •`'(,` PAGE • : �; � ` - OFFICE OF THE REGISTRAR !d U OF TITLES HENNEPIN COUNTY, MINNESOTA CERTIFIED FILED ON MAR 151989 so;LafW\ 6Y OEPIi i'