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0114 AND PRIOR TAXES PAID
TAXPAYER SERVICES
TRANSFER ENTERED
MAY 11 2004
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OFFICE OF THE REGISTRAR
OF TITLES
HENNEPIN COUNTY, MINNESOTA
CERTIFIED FILED ON
MAY 11 2044
�RE`G(ISSTRA OF TrrLES
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(Above Space Reserved for Recording Data)
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PPI ?S= CIC PLAT 1ILSD AS
PART OP TRIP DACLARATION
COMMON INTEREST COMMUNITY NO. 1250
Condominium,
VILLAGE HOMES Or G AND IE W SQUARE H
DECLARATION
This Declaration is made in the County of Hennepin, State of Minnesota, on this
rµ day of /4 A,#4,C N , 2004, by R.E.C., Inc., a Minnesota corporation
(the "Declarant "), pursuant to the provisions of Minnesota Statutes Chapter 515B, known as the
Minnesota Common Interest Ownership Act (the "Act "), for the purpose of creating Village
Homes of Grandview Square II as a condominium under the Act.
WHEREAS, Declarant is the owner of certain real property located in Hennepin County,
Minnesota, legally described in Exhibit B attached hereto, and Declarant desires to submit said
real property and all improvements thereon (collectively the "Property ") to the Act as a
condominium, and,
WHEREAS, Declarant desires to establish on the Property a plan for a permanent
residential community to be owned, occupied and operated for the use, health, safety and welfare
of its resident Owners and Occupants, and for the purpose of preserving the value, the structural
quality, and the architectural character of the Property, and
WHEREAS, the Property is not subject to an ordinance referred to in
Section 51513.1 -106 of the Act, governing conversions to common interest ownership, and is not
subject to a master association as defined in the Act.
THEREFORE, Declarant subjects the Property to this Declaration under the name
"Village Homes of Grandview Square II," consisting of the Units referred to in Section 2,
declaring that this Declaration shall constitute covenants to run with the Property, and that the
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Property shall be owned, used, occupied and conveyed subject to the covenants, restrictions,
easements, charges and liens set forth herein, all of which shall be binding upon all Persons
owning or acquiring any right, title or interest therein, and their heirs, personal representatives,
successors and assigns.
SECTION 1
DEFINITIONS
The following words when used in the Governing Documents shall have the following
meanings (unless the context indicates otherwise):
1.1 "Act" means the Minnesota Common Interest Ownership Act, Minnesota Statutes
Chapter 515B, as amended now and in the future.
1.2 "Assessments" means all assessments levied by the Association pursuant to
Section 6, including annual Assessments, special Assessments and limited
Assessments.
1.3 "Association" means Village Homes of Grandview Square II Association, a
nonprofit corporation which has been created pursuant to Chapter 317A of the
laws of the state of Minnesota and Section 515B.3 -101 of the Act, whose
members consist of all Owners.
1A "Board" means the Board of Directors of the Association as provided for in the
Bylaws.
1.5 "Buiidina" means the structure within which the Units are located.
1.6 "B laws" means the Bylaws governing the operation_ of the Association, as
amended flour time to time.4
1.7 "City„ means the City of Edina, Minnesota.
1.8 "Common Elements" means all parts of the Property including all improvements
thereon, except the Units.
1.9 "Common Expenses" means all expenditures made or liabilities incurred by or on
behalf of the Association and incident to its operation, including Assessments and
items otherwise identified as Common Expenses in the Declaration or Bylaws.
1.10 "Declarant Control Period" means the time period during which Declarant has the
exclusive right to appoint the members of the Board, as described in Section 15.6.
1.11 "Declaration of Easements" means the recorded instrument entitled Amended and
Restated Declaration of Reciprocal Easements, Covenants, Conditions and
Restrictions, and dated July 17, 2001, which establishes and defines certain
easement rights and maintenance obligations with respect to the Property and
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certain adjacent property constituting a part of the Grandview Square
development.
1.12 "Eligible Mortgagee" means any Person which owns a first mortgage on a Unit
and which has requested in writing that the Association notify it regarding any
proposed action which requires approval by a specified percentage of Eligible
Mortgagees.
1.13 "Garage" means the underground parking garage which is located on the lowest
level of the Building and reserved for the use of Owners and Occupants.
1.14 "Governing Documents" means this Declaration, and the Articles of Incorporation
and Bylaws of the Association, as amended from time to time, all of which shall
govern the use and operation of the Property.
1.15 "Limited Common Elements" means a portion of the Common Elements allocated
by the Declaration or by operation of Section 515B.2- 102(4) or (f) of the Act for
the exclusive use of one or more, but fewer than all, of the Units.
1.16 "Member" means a member of the Association. The words "Owner" and
"Member" may be used interchangeably in the Governing Documents.
1.17 "Occupant" means any Person or Persons, other than an Owner, in possession of
or residing in a Unit.
1.18 "Owner" means a Person who owns a Unit, but excluding contract for deed
vendors, mortgagees, holders of reversionary interests in life estates and other
secured parties within the meaning of the Act. The term "Owner" includes,
without limitation, contract for deed vendees and holders of a life estate.
1.19 "Person" means a natural individual, corporation, limited liability company,
partnership, limited liability partnership, trustee, or other legal entity capable of
holding title to real property.
1.20 "Plat" means the recorded plat depicting the Property pursuant to the
requirements of Section 515B.2- 110(c) of the Act, including any amended or
supplemental Plat recorded from time to time in accordance with the Act.
1.21 "Property" means all of the real property subjected to this Declaration, now or in
the future, including the Units and all other structures and improvements located
thereon. The Property is legally described in Exhibit B attached hereto.
1.22 "Rules and Regulations" means the Rules and Regulations of the Association as
approved from time to time pursuant to Section 5.6.
1.23 "Unit" means a part of the property within a Building, including one or more
rooms or enclosed spaces, occupying all or part of one or more floors, designed
and intended for separate ownership and use, as described in Section 2 and shown
on the Plat.
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Any terms used in the Governing Documents, and defined in the Act and not in this Section,
shall have the meaning set forth in the Act. References to Section numbers refer to the Sections
of this Declaration unless otherwise indicated.
SECTION 2
DESCRIPTION OF UNITS AND BOUNDARIES,
AND RELATED EASEMENTS AND RESTRICTIONS
2.1 Units. There are fifty Units. All Units are restricted exclusively to residential
use. Each Unit constitutes a separate parcel of real estate. No additional Units may be created by
the subdivision or conversion of Units pursuant to Section 515B.2 -112 of the Act. The Unit
identifiers and locations of the Units are as shown on the Plat, which is incorporated herein by
reference. A schedule of Units is set forth in Exhibit A attached hereto.
2.2 Unit Boundaries. The boundaries of each Unit shall be the interior unfinished
surfaces of its perimeter walls, floors and ceilings. Wallpaper, paneling, tiles and other finishing
materials adhered to the interior of the Unit boundaries shall be a part of the Unit; provided, that
any load bearing portions of any interior or perimeter walls, columns, ceilings or floors, and any
common utility lines or other common facilities located in or passing through a Unit, shall. be
Common Elements. The boundaries of each Unit shall also extend along the inside unfinished
surfaces of its perimeter doors and windows, and their frames, and said perimeter doors,:
windows and frames, and their hardware, Shall be- Limited Common Elements allocated to such
Unit. Subject to this Section and Section 3, all spaces, interior partitions, and other fixtures and
improvements located within the boundaries of a Unit are a part of the Unit.
2.3 Appurtenant Easements. The Units shall be subject to and benefited by the
easements described in Section 11, including without limitation the Declaration of Easements.
SECTION 3
COMMON ELEMENTS, LIMITED COMMON ELEMENTS
AND OTHER PROPERTY
3.1 Common Elements, The Common Elements and their characteristics are as
follows:
3.1.1 All of the Property not included within the Unit boundaries and any load
bearing portions of any interior or perimeter walls, columns, ceilings or floors; and any
common utility lines or other common facilities located in or passing through a Unit shall
be Common Elements, The Common Elements include, but are not limited to, all areas
and items listed in this Section 3, and those parts of the Property designated as Common
Elements on the Plat or in the Act.
3.1.2 The Common Elements shall be subject to (i) certain easements as
described in this Declaration, the Plat and any other recorded instrument; (ii) the rights of
Owners and Occupants in Limited Common Elements allocated to their respective Units
and (iii) the right of the Association to establish reasonable Rules and Regulations
governing the use of the Property.
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3.2 Limited Common Elements. The Limited Common Elements are those parts of
the Common Elements reserved for the exclusive use of the Owners and Occupants of the Units
to which they are allocated. The rights to the use and enjoyment of the Limited Common
Elements are automatically conveyed with the conveyance of such Units. The Limited Common
Elements are described and allocated to the Units, as shown on the Plat and as follows:
3.2.1. Those items or areas designated as Limited Common Elements on the
Plat or by the Act are allocated to the Units indicated thereon.
3.2.2. Those parts of the Building located outside the Unit's boundaries,
which form the structure and shell of the Building, such as framing, roofs, siding,
foundations and foundation walls, trim and related exterior fixtures, are allocated to the
Unit or Units which they serve.
3.2.3. Improvements, if any, such as decks, patios, porches, balconies,
shutters, awnings, exterior windows and doors, window boxes, chimneys, driveways,
walks, doorsteps and stoops, constructed as part of the original construction to serve a
single Unit or Units, and replacements and modifications thereof authorized pursuant to
Section 7.10, located wholly or partially outside the Unit boundaries, are allocated
exclusively to the Unit or Units which they serve.
3.2.4. Chutes, flues, ducts, pipes, wires, conduit or other utility installations,
bearing walls, bearing columns, or any other components or fixtures lying wholly.,or,
partially outside the Unit boundaries, and serving only that Unit or Units, are allocated to
the Unit or Units they serve. Any portion of such installations serving or affecting the
function of the Common Elements is a part of the Common Elements.
3.2.5. Heating, ventilating or air conditioning equipment serving only a
certain Unit or Units, and located wholly or partially outside the Unit boundaries, are
allocated to the Unit or Units served by sucIz equipment.
3.3 Garage Stalls. The Garage includes Common Element vehicle parking stalls
(collectively the "Stalls" or individually a "Stall "), at least one of which must be assigned to each
Unit at all times. The use and transfer of the Stalls shall be administered by the Association in
accordance with this Section 3.3. The following conditions and restrictions shall govern the
assignment, use and transfer of the Stalls.
3.3:1 The initial assignment of Stalls shall be made by Declarant at the time of
the first conveyance of a Unit by Declarant to an Owner. Declarant shall assign the
exclusive right and license to use a previously unassigned Stall designated by Declarant
to a Unit designated by Declarant and shall provide to the Association a copy of the
Certificate evidencing the Stall assignment. At least one Stall shall be, assigned to each
Unit at all times. Any Stalls remaining after all Units owned by Declarant have been
conveyed may be assigned to the Association, or reserved for guest or handicapped
parking, as directed by Declarant. Any Stall assigned to the Association may be rented to
an Owner or Occupant.
3.3.2 Following Declarant's initial assignment of a Stall to a Unit, the use rights
with respect to the Stall shall be deemed to be licensed by the Association exclusively to
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the Owner of the Unit to which the Stall is assigned. The Association shall maintain
records identifying the Stalls, the Units to which they are assigned, the names of the
Owners of the Units, and the dates of assignment and any reassignments. A written
certification of the assignment shall be delivered to the Owner upon request. The
Association shall not unilaterally reassign any Stall assigned to a Unit, and reassignments
shall be made only in accordance with Section 3.3.3. At least one Stall shall remain
assigned to each Unit at all times. Any Stalls which are arranged end -to -end with
restricted access to the inner Stall ( "Tandem Stalls ") shall be assigned and licensed to the
same Unit, and the license and use rights in the Tandem Stalls shall be transferred
simultaneously and not independently.
3.3.3 Subject to Section 3.3.2, a Stall license may be reassigned to another
Owner, but only by first delivering to the Association a written assignment, in form
approved by the Association, signed by the assignor and the assignee. The Association
shall review the proposed assignment for compliance with this Section 3.3, and if the
assignment complies, the Association shall transfer the license on its records to the Unit
owned by the assignee and issue a Certificate evidencing the assignment of the Stall to
the assignee. The license to use the Stall shall remain with the Owner and Unit to which
it is assigned until the license is reassigned in accordance with this Section. In the
absence of a properly executed assignment to the contrary, the license to use a Stall
assigned to a Unit at the time of the Unit's conveyance shall be automatically assigned
with the conveyance of title to the Unit.
3.3.4 Owners shall not rent or allow the use of their assigned Stall except to or
by other Owners and Occupants. The lease or other use right shall be in written form,
and shall terminate when the lessor, lessee or other user is no longer an Owner or
Occupant, regardless of any agreement to the contrary. The Owner shall give the
Association advance written notice of any lease or use agreement with respect to such
Owner's Stall, and shall provide a copy of the lease or use agreement to the Association
upon its request. The Association inay hold or reassign the license to, or rent, a Stall
assigned to it in the same manner as an Owner.
3.3.5 The interest of a secured party holding a first lien on a Unit shall include
the license to any Stall which is assigned to the Unit, and said rights shall be included
within the secured party's interest acquired in the event of a foreclosure of the lien or
other security interest against the Unit.
3.3.6 The use of the Stalls and the Garage, and the size and types of cars and
other vehicles which may be kept in the Garage, are subject to Rules and Regulations
approved from time to time by the Board. The Association shall apply for and maintain
any permits required for the Garage.
3.3.7 Any license, lease, rental, use, assignment, transfer or purported transfer
of any interest in a Stall in violation of this Section shall be void.
3.4 Storage Rooms. The Building contains storage rooms (collectively the "Storage
Rooms" or individually a "Storage Room ") which are assigned, one Storage Room to each Unit,
for the storage of personal property belonging to the Owner of the Unit. The use and transfer of
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the Storage Rooms shall be administered by the Association in accordance with this Section 3.4.
The following conditions and restrictions shall govern the assignment, use and transfer of the
Storage Rooms.
3.4.1 The initial assignment of Storage Rooms shall be made by Declarant.
Declarant shall assign the exclusive right and license to use a previously unassigned
Storage Room designated by Declarant to a Unit designated by Declarant and shall
provide to the Association a copy of the Certificate evidencing the Storage Room
assignment. At least one Storage Room shall be assigned to each Unit at all times. Any
Storage Rooms remaining after all Units owned by Declarant have been conveyed may
be assigned to the Association, or reserved for other use, as directed by Declarant. Any
Storage Room assigned to the Association may be rented to an Owner or Occupant.
3.4.2 Following Declarant's initial assignment of a Storage Room, the use rights
with respect to the Storage Room shall be deemed to be licensed by the Association
exclusively to the Owner of the Unit to which the Storage Room is assigned. The
Association shall maintain records identifying the Storage Rooms, the Units to which
they are assigned, the names of the Owners of the Units, and the dates of assignment and
any reassignments. A written certification of the assignment shall be delivered to the
Owner upon request. The Association shall not unilaterally reassign any Storage Room
assigned to a Unit, and reassignments shall be made only in accordance with
Section 3.4.3. At least one Storage Room shall remain assigned to each Unit at all times.
3.4.3 Subject to Section 3.4.2, a Storage Room license may be reassigned to
another Owner, but only by first delivering to the Association a written assignment, in
form approved by the Association, signed by the assignor and the assignee. The
Association shall review the proposed assignment for compliance with this Section 3.4, ,
and if the assignment complies, the Association shall transfer the license on its records to
the Unit owned by the assignee and issue a Certificate evidencing the assignment of the
Storage -Roem to the assignee. The - license to use -the Storage Room shall remain with the
Owner and Unit to which it is assigned until the license is reassigned in accordance with
this Section. In the absence of a properly executed assignment to the contrary, the license
to use a Storage Room assigned to a Unit at the time of the Unit's conveyance shall be
automatically assigned with the conveyance of title to the Unit.
3.4.4 Owners shall not rent or allow the use of their assigned Storage Room
except to or by other Owners and Occupants. The lease or other use right shall be in
written form, and shall terminate when the lessor, lessee or other user is no longer an
Owner or Occupant, regardless of any agreement to the contrary. The Owner shall give
the Association advance written notice of any lease or use agreement with respect to such
Owner's Storage Room, and shall provide a copy of the lease or use agreement to the
Association upon its request. The Association may hold or reassign the license to, or
rent, a Storage Room assigned to it in the same manner as an Owner.
3.4.5 The interest of a secured party holding a first lien on a Unit shall include
the license to any Storage Room which is assigned to the Unit, and said rights shall be
included within the secured party's interest acquired in the event of a foreclosure of the
lien or other security interest against the Unit.
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3.4.7 The use of the Storage Rooms, and the size and types of materials which
may be kept in the Storage Rooms, are subject to Rules and Regulations as approved
from time to time by the Board.
3.4.8 Any Iicense, lease, rental, use, assignment, transfer or purported transfer
of any interest in a Storage Room in violation of this Section shall be void.
3.5 Annexation of Other Prot)=. Real property may be added to the common
interest community as Units or Common Elements and subjected to this Declaration, with the
approval of (i) Owners (other than Declarant) of Units to which are allocated at least sixty -seven
percent of the votes in the Association, and (ii) Declarant so long as Declarant owns any unsold
Unit for sale.
SECTION 4
ASSOCIATION MEMBERSHIP: RIGHTS AND OBLIGATIONS
Membership in the Association, and the allocation to each Unit of a portion of the votes
in the Association and a portion of the Common Expenses and undivided interests in the
Common Elements of the Association shall. be governed by the following provisions:
4.1 Membership, Each Owner shall be a member of the Association solely by reason
of owning a Unit, and the membership shall be transferred with the conveyance of the Owner's
interest in the Unit. An Owner's membership shall terminate when the Owner's ownership
terminates. When more than one Person is an Owner of a Unit, all such Persons. shall be
members of the Association, but multiple ownership of a Unit shall not increase the voting rights
allocated to such Unit nor authorize the division of the voting rights.
4.2 Voting, Common Expenses and Undivided Interests. Voting rights are allocated
. .. egL�411y „among._the, iJnits. Undivided. ,inleres0,,Vd, Common Expense oblig Lions- .(subject. to.
Sections 6.4 and 6.7), are allocated among the Units according to a formula based upon the area
of each Unit relative to the area of all Units, as shown by the percentages set forth on Exhibit A
attached hereto.
4.3 Appurtenant Rights and Oblimations. The ownership of a Unit shall include the
voting rights, Common Expense obligations and undivided interests described in Section 4.2.
Said rights, obligations and interests, and the title to the Units, shall not be separated or conveyed
separately, and any conveyance, encumbrance, judicial sale or other transfer of any allocated
interest in a Unit, separate from the title to the Unit shall be void. The allocation of the rights,
obligations and interests described in this Section may not be changed, except in accordance with
the Governing Documents and the Act.
4.4 Authority to Vote. The Owner, or some natural person designated to act as proxy
on behalf of the Owner, and who need not be an Owner, may cast the vote allocated to such Unit
at meetings of the Association. However, if there are multiple Owners of a Unit, only the Owner
or other person designated pursuant to the provisions of the Bylaws may cast such vote. The
voting rights of Owners are more fully described in Section 3 of the Bylaws.
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SECTION 5
ADMINISTRATION
The administration and operation of the Association and the Property, including but not
limited to the acts required of the Association, shall be governed by the following provisions:
5.1 General. The operation and administration of the Association and the Property
shall be governed by the Governing Documents, the Rules and Regulations, and the Act. The
Association shall be responsible for the operation, management and control of the Property. The
Association shall have all powers described in the Governing Documents, the Act and the statute
under which the Association is incorporated. All power and authority of the Association shall
be vested in the Board, unless action or approval by the individual Owners is specifically
required by the Governing Documents or the Act. All references to the Association shall mean
the Association acting through the Board unless specifically stated to the contrary,.
5.2 Operational Purposes. The Association shall operate and manage the Property for
the purposes of (i) administering and enforcing the covenants, restrictions, easements, charges
and liens set .forth in the Governing Documents and the Rules and Regulations, (ii) maintaining,
repairing and replacing those portions of the Property and other property for which it is
responsible and (iii) preserving the value and the architectural character of the Property.
5.3 Binding Effect of Actions. All agreements and determinations made by the
Association in accordance with the powers and voting rights established by the Governing
Documents or the Act shall be binding upon all Owners and Occupants, and their lessees, guests;
heirs, personal representatives, successors and assigns, and all secured parties as defined.in the
Act.
5.4 Bylaws. The Association shall have Bylaws. The Bylaws shall govern the
operatim and administration - of theme Association, and shall be binding on. all . Owners and
Occupants.
5.5 Management. The Board may delegate to a manager or managing agent the
management duties imposed upon the Association's officers and directors by the Governing
Documents and the Act. However, such delegation shall not relieve the officers and directors of
the ultimate responsibility for the performance of their duties as prescribed by the Governing
Documents and by law.
5.6 Rules and Regulations. The Board shall have exclusive authority to approve and
implement such reasonable Rules and Regulations as it deems necessary from time to time for
the purpose of operating and administering the affairs of the Association and regulating the use
of the Property; provided that the Rules and Regulations shall not be inconsistent with the
Governing Documents or, the Act. The inclusion in other parts of the Governing Documents of
authority to approve Rules and Regulations shall be deemed to be in furtherance, and not in
limitation, of the authority granted by this Section. New or amended Rules and Regulations shall
be effective only after reasonable notice thereof has been given to the Owners.
5.7 Association Assets; Surplus Funds. All funds and real or personal property
acquired by the Association shall be held and used for the benefit of the Owners for the purposes
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stated in the Governing Documents. Surplus funds remaining after payment of or provision for
Common Expenses and reserves shall be credited against future assessments or added to
reserves, as determined by the Board.
SECTION 6
ASSESSMENTS
6.1 General. Assessments shall be determined and assessed against the Units by the
Board, in its discretion; subject to the requirements and procedures set forth in this Section 6 and
the requirements of the Bylaws. Assessments shall include annual Assessments under
Section 6.2, and may include special Assessments under Section 6.3 and limited Assessments
under Section 6.4. Annual and special Assessments shall be allocated among the Units in
accordance with the allocation formula set forth in Section 4.2. Limited assessments under
Section 6.4 shall be allocated to the Units as set forth in that Section.
6.2 Annual Assessments. Annual Assessments shall be established and levied by the
Board, subject to the limitations set forth hereafter. Each annual Assessment shall cover all of
the anticipated Common Expenses of the Association for that year which are to be shared by all
Units in accordance with the allocation set forth in Section 4.2. Annual Assessments shall be
payable in equal monthly installments. Annual Assessments shall provide for an adequate
reserve fund for the replacement of the Common Elements and those parts of the Units for which
the Association is responsible, except to the extent that the replacement is funded by limited
Assessments pursuant to Section 6.4.
6.3 Special Assessments.. In addition to annual Assessments, and subject to the
limitations set forth hereafter, the Board may levy in any Assessment year a special Assessment
against all Units in accordance with the allocation formula set forth in Section 4.2. Special
Assessments shall be used for the purpose of defraying in whole or in part the cost of any .
..:unforeseen and_unbudgeted. Common Fxpeno; ..._. y,.
6.4 Limited Assessments. In addition to annual Assessments and special
Assessments, the Board may, at its discretion, levy and allocate "limited Assessments" among
one or more, but not all, Units in accordance with the following requirements and procedures:
6.4.1 Any Common Expense associated with the maintenance, repair, or
replacement of a Limited Common Element shall be assessed exclusively against the Unit
or Units to which that Limited Common Element is allocated, equally, in proportion to
undivided interests or by actual cost per Unit, unless otherwise unanimously agreed by
resolution of the Board.
6.4.2 Any Common Expense benefiting fewer than all of the Units but not
falling within Section 6.4.1 may, at the Board's discretion, be assessed against the Unit or
Units benefited equally, in proportion to undivided interests or by actual cost per unit.
6.4.3 The costs of insurance may be assessed equally, or in proportion to
undivided interests or actual cost per Unit, and the costs of common utilities may be
assessed equally, in proportion to usage, undivided interests or such other reasonable
allocation as may be approved by the Board.
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6.4.4 Reasonable attorneys' fees and other costs incurred by the Association in
connection with (i) the collection of Assessments and (ii) the enforcement of the
Governing Documents, the Act, or the Rules and Regulations, against an Owner or
Occupant or their guests, may be assessed against the responsible Owner's Unit.
6.4.5 Late charges, fines and interest may be assessed as provided in Section 12.
6.4.6 Assessments levied under Section 515B.3- 116(a) of the Act to pay a
judgment against the Association may be levied only against the Units existing at the
time the judgment was entered, in proportion to their Common Expense liabilities.
6.4.7 If any damage to the Common Elements or another Unit or any portion of
the Owner's Unit that the Association is obligated to maintain hereunder is caused by the
act or omission of any Owner or Occupant, or their guests, the Association may assess
the costs of repairing the damage exclusively against the Owner's Unit to the extent not
covered by insurance.
6.4.8 If Common Expense liabilities are reallocated for any purpose authorized
by the Act, Assessments and any installment thereof not yet due shall be recalculated in
accordance with the reallocated Common Expense liabilities.
Assessments levied under Sections 6.4.1 through 6.4.7 may, at the Board's discretion, be
assessed as a part of, or in addition to, the Assessments levied under Section 6.
6.5 Working Capital Fund. There shall be established a working capital fund to meet
unforeseen expenditures or to purchase additional equipment or services during the Association's
beginning years of operation. The Board shall include in each subsequent annual budget a
reasonable amount of working capital, based upon the anticipated needs of the Association for
the year in question. There shall be contributed on a one -time basis for each Unit sold an amount
slu_ul tc stw ..motattts installment: -o£ the estimated Common Expense Assessment ..,for the. Unit..:.
The contribution shall be paid at the earlier of the time of closing of sale of the Unit or the time
of termination of the Declarant Control Period. The contributions to this fund are in addition to
the regular monthly installments of Assessments. The funds shall be deposited into a segregated
Association account no later than the termination of the Declarant Control Period. Declarant
may not use the funds to defray any of its expenses, reserve contributions or construction costs,
or to make up any budget deficit during the Declarant Control Period. However, upon the
closing of the sale of an unsold Unit, Declarant may reimburse itself from funds collected from
the purchaser at the closing for any contributions made by Declarant to the working capital fund
with respect to that Unit.
6.6 Liability of Owners for Assessments. The obligation of an Owner to pay
Assessments shall commence at the later of (i) the time at which the Owner acquires title to the
Unit, or (ii) the due date of the first Assessment levied by the Board, subject to the alternative.
Assessment program described in Section 6.7. The Owner at the time an Assessment is payable
with respect to the Unit shall be personally liable for the share of the Common Expenses
assessed against such Unit. Such liability shall be joint and several where there are multiple
Owners of the Unit. The liability is absolute and unconditional, subject to Section 6.7. No
Owner is exempt from liability for payment of Assessments by right of set -off, by waiver of use
or enjoyment of any part of the Property, by absence from or abandonment of the Unit, by the
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waiver of any other rights, or by reason of any claim against the Association or its officers,
directors or agents, or for their failure to fulfill any duties under the Governing Documents or the
Act.
6.7 Declarant's Alternative Assessment Program. The following alternative
Assessment program is established pursuant to Section 515B.3- 115(x)(2) of the Act.
6.7.1 Notwithstanding anything to the contrary in the Governing Documents, if
an Assessment has been levied, any unsold Unit owned by Declarant shall be assessed at
the rate of twenty -five percent of the Assessments (exclusive of replacement reserves)
levied on that Unit and other Units of the same type until a certificate of occupancy or
comparable approval has been issued with respect to such Unit by the municipality in
which the Unit is located.
6.7.2 This alternative Assessment program shall not affect the share of
replacement reserves for Units owned by Declarant, which reserves must be funded by
Declarant as required by Section 515B.3 -115 of the Act. However, there are no
assurances that Declarant's reduced Assessment obligations will not affect the level of
services for other items set forth in the Association's budget.
6.7.3 This alternative Assessment program shall apply to each Unit owned by
Declarant at the time that any Assessment is levied against the Unit, and shall terminate
w;t.. respect to eadh such Unit upon the issuance of a certificate of occupancy-or
comparable completion certification for the Unit.
6.8 Assessment Lien. The Association has a lien on a Unit for any Assessment levied
against that Unit from the time the Assessment becomes due. If an Assessment is payable in
installments, the full amount of the Assessment is a lien from the time the first installment
thereof becomes due. Fees, charges, late charges, fines and interest charges imposed by the
., Association pursuant to Section 5151 .3- 102(a)(10), (11) and (le) of-the Act are liens, and are
enforceable as Assessments, under this Section 6. Recording of the Declaration constitutes
record notice and perfection of any lien under this Section 6, and no further recordation of any
notice of or claim for the lien is required. The release of the lien shall not release the Owner
from personal liability unless agreed to in writing by the Association.
6.9 Foreclosure of Lien: Remedies. A lien for Assessments may be foreclosed
against a Unit under the laws of the state of Minnesota (i) by action, or (ii) by advertisement in a
like manner as a mortgage containing a power of sale. The Association, or its authorized
representative, shall have the power to bid in at the foreclosure sale and to acquire, hold, lease,
mortgage and convey any Unit so acquired. The Owner and any other Person claiming an
interest in the Unit, by the acceptance or assertion of any interest in the Unit, grants to the
Association a power of sale and full authority to accomplish the foreclosure. The Association
shall, in addition to its other remedies, have the right to pursue any other remedy at law or in
equity against the Owner who fails to pay any Assessment or charge against the Unit.
6.10 Lien Priority: Foreclosure. A lien for Assessments is prior to all other liens and
encumbrances on a Unit except (i) liens and encumbrances recorded before the Declaration,
(ii) any first mortgage on the Unit, and (iii) liens for real estate taxes and other governmental
Assessments or charges against the Unit. Notwithstanding the foregoing, if (1) a first mortgage
MPIS -Word 31235.1 12
v
on a Unit is foreclosed, (2) the first mortgage was recorded on or after the date of recording of
this Declaration, and (3) no Owner redeems during the Owner's period of redemption provided
by Minnesota Statutes Chapters 580, 581, or 582, then the holder of the sheriffs certificate of
sale from the foreclosure of the first mortgage shall take title to the Unit subject to unpaid
Assessments for Common Expenses levied pursuant to Sections 515B.3- 115(a), (e)(1) to (3), (f),
and (i) of the Act which became due, without acceleration, during the six months immediately
preceding the first day following the end of the Owner's period of redemption.
6.11 Real Estate Taxes and Assessments. Reap estate taxes, special assessments, and
other charges and fees which may be levied against the Common Elements by governmental
authorities, shall be allocated among and levied against the Units based upon their respective
undivided interests in the Common Elements as set forth on Exhibit A, and shall be a lien against
each Unit in the same manner as a lien for real estate taxes and special assessments levied
against the Unit alone.
6.12 Voluntary Conveyances; Statement of Assessments. In a voluntary conveyance
of a Unit the buyer shall not be personally liable for any unpaid Assessments and other charges
made by the Association against the seller or the seller's Unit prior to the time of conveyance to
the buyer, unless expressly assumed by the buyer. However, the lien of such Assessments shall
remain against the Unit until released. Any seller or buyer shall be entitled to a statement, in
recordable form, from the Association " setting forth the amount of the unpaid Assessments
against the Unit, including all Assessments payable in the Association's current fiscal year,
which statement shall be binding on uie AJsociatioil, seller d(ld'. buyer.
SECTION 7
RESTRICTIONS ON USE OF PROPERTY
All Owners and Occupants, and all secured parties, by their acceptance or assertion of an
- interest in Alit Property, or by their occupancy of -a Unit; covenantt and agree that,, in addition to
any other restrictions which may be imposed by the Act or the Governing Documents, the
occupancy, use, operation, alienation and conveyance of the Property shall be subject to the
following restrictions:
7.1 General. The Property shall be owned, conveyed, encumbered, leased, used and
occupied subject to the Governing Documents and the Act, as amended from time to time. All
covenants, restrictions and obligations set forth in the Governing Documents are in furtherance
of a plan for the Property, and shall run with the Property and be a burden and benefit to all
Owners and Occupants and to any other Person acquiring or owning an interest in the Property,
their heirs, personal representatives, successors and assigns.
7.2 Subdivision Prohibited. Except as permitted by the Act, no Unit nor any part of
the Common Elements may be subdivided or partitioned without the prior written approval of all
Owners and all secured parties holding first mortgages on the Units.
7.3 Residential Use, The Units shall be used by Owners and Occupants and their
guests exclusively for private, single family residential purposes, and not for transient, hotel,
commercial, business or other non- residential purposes, except as permitted by Section 7.4. Any
lease of a Unit (except for occupancy by guests with the consent of the Owner) for a period of
MPLS -Word 31235.1 13
less than thirty days, or any occupancy which includes services customarily furnished to hotel
guests, shall be presumed to be for transient purposes. The number of occupants per Unit may
be restricted in accordance with any applicable municipal ordinances and standards acceptable
under the Fair Housing Amendments Act of 1988.
7.4 Business Use Restricted. No business, trade, occupation or profession of any
kind, whether carried on for profit or otherwise, shall be conducted, maintained or permitted in
any Unit or the Common Elements except:
7.4.1 An Owner or Occupant residing in a Unit may maintain a home
occupation in such Unit; provided, that such use (i) is incidental to the residential use;
(ii) does not involve physical alteration of the Unit visible from the exterior; (iii) is in
compliance with all governmental laws, ordinances and regulations; (iv) does not involve
observable business activity such as signs, advertising displays, unusual numbers of
deliveries, or unusual levels of pedestrian or vehicular traffic to and from the Unit; (v)
does not involve employees; and (vi) does not otherwise involve activity which disturbs
the quiet enjoyment of the other Units by their Owners or Occupants.
7.4.2 The Association may maintain offices on the Property for management
and related purposes.
7.4.3 - Declarant may maintain offices, models, sales facilities and other business
facilities on the Property in connection with the exercise of it,- special declarant rights.
7.5 Leasin . Leasing of Units shall be allowed, subject to reasonable regulation by
the Association, and subject to the following conditions: (i) no Unit shall be leased for transient
or hotel - purposes, (ii) no Unit may be subleased, (iii) unless simultaneously occupied by the
Owner, a Unit must be leased in its entirety (not by room), (iv) all leases shall be in writing, and
(v) all leases shall provide that they are subject to the Governing Documents, the Rules and
- Regulations - and -the Act, and that ar;y'fail°urc.of °the lessee: to- comply with the terns of such _ ...
documents shall be a default under the lease. The Association may impose such reasonable
Rules and Regulations as may be necessary to implement procedures for the leasing of Units,
consistent with this Section.
7.6 Garage and Parking. The Garage shall be used only for parking of vehicles
owned or leased by Owners and Occupants and their guests, and such other incidental uses as
may be authorized in writing by the Board. Except as authorized in writing by the Board, Stalls
shall not be converted to other uses or used for storage or other purposes which would prevent
the parking of a full size automobile in the Stalls. The use of Stalls, driveways and other parking
areas on the Property, and the types of vehicles and personal property permitted thereon, shall be
subject to (i) regulation by the Association and (ii) the easements and restrictions set forth in the
Declaration of Easements.
7.7 Animals. The Board shall have the exclusive authority to prohibit, or to allow and
regulate, by Rules and Regulations, the keeping of animals on the Property. This authority may
be exercised so as to permit or prohibit different types of animals, but animals which are
permitted shall be limited to common domestic house pets such as dogs, cats, fish, birds and the
like. The word "animal' shall be interpreted in its broadest sense and shall include all living
creatures except humans. Notwithstanding the foregoing, (i) no animal may be bred, or kept or
MPLS -Word 31235.1 14
maintained for business or commercial purposes, anywhere on the Property and (ii) nothing in
the Governing Documents or any Rule or Regulation shall prohibit the keeping of a qualified
service dog or similarly qualified animal by a person who is handicapped within the meaning of
the Fair Housing Amendments Act of 1988 or comparable state law.
7.8 Ouiet Eniovment. All Owners and Occupants and their guests shall have a right
of quiet enjoyment in their respective Units, subject to the rights of other Owners and Occupants
to reasonable use of their respective Units and the normal and customary sounds generated
thereby given the multi - family, apartment -style structure of the Building. Taking into
consideration the nature of the Building structure, Owners and Occupants shall use the Property
in such a manner as will not cause a nuisance, nor unduly restrict, interfere with or impede the
use and quiet enjoyment of the Property by other Owners and Occupants and their guests.
7.9 Prohibited Conduct No Owner or Occupant shall (i) cause or permit any physical
changes to their Unit that could jeopardize or impair the weather -tight soundness or safety of a
Building, or any Building system, or other improvement located on the Property; (ii) interfere
with any easement; (iii) install or permit the installation of hard surface floor coverings within
their Unit without the prior written authorization of the Board, except for the replacement of
floor coverings of that nature which were originally installed in the Unit by Declarant; or (iv)
cause or permit any physical changes to their Unit which could affect or damage the sound
barriers installed between the Units within the ceilings, floors or walls.
710 TmnmveMentg C�^hia�fi to Cecttnn 7 Q and -this Section 7.101 �;o modifications
r- �. ., �..,.....,,.,
improvements, repairs or replacements of any type, temporary or permanent, structural, aesthetic
or otherwise (collectively referred to as "improvements "), including but not limited to any
structure, building, addition, deck, patio, fence, wall, enclosure, window, exterior door, antenna
or other type of sending or receiving apparatus, sign, flag; display, decoration, color change,
shrubbery, material topographical or landscaping change, shall be made, or caused or allowed to
be made, by any Owner or Occupant, or their` invitees,- in any part of the Common Elements, or
iY�° °ally p rrof"the Unit which -affects the °Commmon °Blements'dr a btilier tJtrit; zs `t�vhich is 3ls ble
from the exterior of the Unit, without the prior written authorization of the Board, or an
architectural committee appointed by it, and compliance with the requirements of this Section.
Declarant's written consent shall also be required for improvements until the expiration of the
Declarant Control Period described in Section 15.6.
7.10.1 The Board may appoint, supervise and disestablish an architectural
committee, and specifically delegate to it part or all of the functions which the Board
exercises under this Section, in which case the references to the Board shall refer to the
architectural committee where appropriate. The architectural committee shall be subject
to the supervision of the Board.
7.10.2 The Board shall have authority to establish reasonable forms and
procedures for applying for authorization for improvements, and reasonable requirements
for improvements, and shall be the sole judge of whether the criteria are satisfied, subject
to any restrictions imposed by any applicable governmental laws, codes, ordinances or
regulations.
MPLS -Word 31235.1 15
M
7.10.3 The purpose of the requirements established by the Board shall be (i) to
preserve the architectural style, the quality and the value of the Property, and (ii) to
protect the Association and the Owners from undue liability arising out of the
improvements or any construction activity in connection therewith.
7.10.4 Improvements may be made in compliance with Section 515B.2 -113 of
the Act, and relocation of the boundaries of Units may be made in compliance with
Section 515B.2 -114 of the Act.
7.10.5 Approval of improvements which irrmaterially encroach upon another
Unit or the Common Elements shall create an appurtenant easement for such
encroachment in favor of the Unit with respect to which the improvements are approved,
notwithstanding any contrary requirement in the Governing Documents or the Act. A file
of the Board or committee resolutions approving or denying all proposed improvements
shall be maintained permanently as a part of the Association's records.
7.10.6 Notwithstanding the restrictions set forth in this Section 7.10, antennas
may be installed in accordance with applicable federal law and the Rules and Regulations
consistent therewith.
7.10.7 An Owner who causes an improvement to be made, regardless of whether
the improvement is approved by the Board, shall be solely responsible for the
construction standards and specifications relating to the improvement; and for _the
construction work. The Owner, and not the Association, is responsible for determining
whether any improvement is in compliance with any requirements imposed by any,
governmental authority having jurisdiction over the Property. The Owner shall hold
harmless, indemnify and defend the Association, and its officers and directors, from and
against any expenses, claims, damages, losses or other' liabilities, including without
limitation attorneys' fees and costs of litigation, arising out of (i) any improvement which
- violates any governmental laws, --odes,,- Drdinances or regulations; (ii) the inadequacy of
the specifications for construction of the improvements, or (iii) defects in the construction
of the improvements.
7.10.8 This Section 7.10 shall not apply to improvements or changes to the
.Property made by Declarant in exercising its special declarant rights under Section 15.
7.11 Compliance with Law. No use shall be made of the Property which would violate
any then existing municipal codes or ordinances, or state or federal laws, nor shall any act or use
be permitted which could cause waste to the Property, cause a material increase in insurance
rates on the Property, or otherwise cause any unusual liability, health or safety risk, or expense,
for the Association or any Owner or Occupant.
7.12 Time Shares Prohibited. The time share form of ownership, or any comparable
form of lease, occupancy rights or ownership which has the effect of dividing the ownership or
occupancy of a Unit into separate time periods, is prohibited.
7.13 Access to Units. In case of emergency, all Units and Limited Common Elements
are subject to entry, without notice and at any time, by an officer or member of the Board, by the
MPLS -Word 31235.1 16
Association's management agents or by any public safety personnel. Entry is also authorized for
maintenance purposes under Sections 8 and 1 I and for enforcement purposes under Section 12.
SECTION 8
MAINTENANCE AND REPAIR
The following provisions shall govern the maintenance, repair and replacement of the
property.
8.1 Association Responsibility. The Association shall, at its expense, undertake and
perform the maintenance, repair and replacement of all Common Elements and Limited
Common Elements, subject to the following qualifications:
8.1.1 The costs associated with the Association's maintenance obligations under
this Section 8.1 shall be paid from the general Common Expense funds of the Association
which are assessed as part of the annual Assessments or shall be assessed as determined
in accordance with Section 6.
8.1.2 The Association may assign to an Owner the obligation for routine
maintenance of a Limited Common Element allocated to the Owner's Unit. However, if
the Owner fails to adequately perform the maintenance, the Association may enter the
Limited Common Element, perform the maintenance and assess the Owner's Unit for the
costs.
8.1.3 The Association shall be responsible for incidental damage caused to a
Unit or its Limited Common Elements by work undertaken by the Association pursuant
to this Section.
8.1.4 The Association shall be ,resDonsiblet for the mainte anee gjbligatiops
assigned to it pursuant to the Declaration of Easements and the Assignment of
Maintenance Obligations referenced in Section 2.4 above.
8.1.5 The Association may elect to maintain, repair or replace mechanical,
structural or other components which are a part of the Unit and assess the costs against
the Unit, if the failure or impairment of the component could result in damage to the
Common Elements or other Units, impair the function of any common Building system,
or create a health or safety hazard.
8.1.6 If damage is caused to the Common Elements, Limited Common Elements
or other Units by an Owner, Occupant or their invitees, or by any condition in the Unit or
Limited Common Elements which the Owner or Occupant has caused or allowed to exist,
then the Association may repair the damage or correct the condition and assess the cost
thereof against the responsible Owner's Unit.
8.2 Owner Responsibility. The Owner shall, at his or her expense, be responsible for
maintenance, repair and replacement as follows:
MPLS -Ward 31235.1 17
8.2.1 To maintain, repair, and replace all portions of the Owner's Unit, except
those maintained by the Association, in good, clean, sanitary and safe condition.
8.2.2 To perform routine maintenance of the Limited Common Elements
allocated to the Unit to the extent the Association assigns such obligations to the Owner.
The Association may require that the Owners perform their maintenance obligations in
accordance with standards established by the Association.
8.2.3 To perform the foregoing maintenance obligations in such manner as not
to damage the Property, or unreasonably disturb or cause a hazard to other persons
occupying or using the Property.
8.2.4 To promptly pay or reimburse the Association for any costs incurred by
the Association for the repair of any damage to the Common Elements, Limited Common
Elements or other Units, caused by the Owner or Occupant, or their invitees, or caused by
any condition in the Unit or Limited Common Elements which the Owner or Occupant
has allowed to exist.
8.3 Duty to Report Defects. Owners or Occupants shall promptly report to the
Association any defect or need for repair to the Common Elements or Limited Common
Elements.
8.4 Easements for Repair and Rola^.ai:er++ T+an� LTnit a- t1Z
1{ ;ai{ 1 11 {. L4V 1 { {lt Q{lY 4 e
Common Elements and Limited Common Elements are subject to the maintenance, repair,
replacement and reconstruction easements described in Section 11.
SECTION 9
INSURANCE
9.1 Required Coverage. The Association shall obtain and maintain, at a minimum, a
master P olic Y or P q
policies of insurance in accordance with the insurance requirements set forth in
the Act and the additional requirements set forth herein, issued by a reputable insurance
company or companies authorized to do business in the state of Minnesota, as follows:
9.1.1 Property insurance in broad form covering risks of physical loss in an
amount equal to one hundred percent of the insurable "replacement cost" of the Property,
less deductibles, exclusive of land, footings, excavation and other items normally
excluded from coverage (but including all building service equipment and machinery).
The Association may or may not insure the improvements and betterments referred to in
Section 515B.3- 113(b)(i) through (vii) of the Act as determined by the Board, but must
do so if required by the FNMA, FHLMC, FHA or VA, as referred to hereafter. The
policy or policies shall cover personal property owned by the Association. The policy or
policies shall also contain "Inflation Guard" and "Agreed Amount" endorsements, if
reasonably available. Such policy or policies shall include such additional endorsements,
coverages and limits with respect to the foregoing and other hazards as may be required
from time to time by the regulations of the Federal Housing Administration ( "FHA "), the
U.S. Department of Veterans' Affairs ( "VA "), the Federal National Mortgage
Association ( "FNMA ") or the Federal Home Loan Mortgage Corporation ( "FHLMC ") as
MPLS -Word 31235.1 18
a precondition to their insuring, purchasing or financing a mortgage on a Unit. The
Board may also, on behalf of the Association, enter into binding written agreements with
a mortgagee, insurer or servicer, including without limitation the FHA, VA, FNMA or
FHLMC, obligating the Association to keep certain specified coverages or endorsements
in effect.
9.1.2 Commercial general liability insurance covering the use, operation and
maintenance of the Common Elements, with minimum limits of One Million Dollars per
occurrence, against claims for death, bodily injury and property damage, and such other
risks as are customarily covered by such policies for projects similar in construction,
location and use to the Property. The policy shall contain a "severability of interest"
endorsement which shall preclude the insurer from denying the claim of an Owner or
Occupant because of negligent acts of the Association or other Owners or Occupants.
The policy shall include such additional endorsements, coverages and limits with respect
to such hazards as may be required by the regulations of the FHA, VA, FNMA or
FHLMC as a precondition to their insuring, purchasing or financing a mortgage on a
Unit.
9.1.3 Fidelity bond or insurance coverage against dishonest acts on the part of
directors, officers, managers, trustees, employees or persons responsible for handling
funds belonging to or administered by the Association, if deemed to be advisable by the
Board or required by the regulations of any financing - related institution as a precondition
L uie purchase Insuring` guarantee, or financing of a mortgage on a Unit. The Liueiit
purchase, �� � t
bond or insurance shall name the Association as the named insured, and shall comply
with the regulations of the FNMA, FHA, VA or FHLMC, if required by one of such
agencies as a precondition to the purchase, financing, insuring, or guarantee of a
mortgage on a Unit. An appropriate endorsement to the policy to cover any persons who
serve without compensation shall be added if the policy would not otherwise cover
volunteers, or a waiver of defense based upon the exclusion of persons serving without
compensation shall be added. _..
9.1.4 Workers' Compensation insurance as applicable and required by law.
9.1.5 Directors and Officers liability insurance with such reasonable limits and
coverages as the Board shall determine from time to time.
9.1.6 Such other insurance as the Board may determine from time to time to be
in the best interests of the Association and the Owners.
9.2 Premiums; Improvements; Deductibles. Except as provided in Section 6.4 and
this Section, all insurance premiums shall be assessed and paid as an annual Assessment. Policy
deductible amounts shall be determined by the Board. If improvements and betterments to the
Units are covered, any increased cost may be assessed against the Units affected. The
Association may, in the case of a claim for damage to a Unit or Units, (i) pay the deductible
amount as a Common Expense, (ii) assess the deductible amount against the Units affected in
any reasonable manner, or (iii) require the Owner of any Unit affected to pay the deductible
amount directly. The Association's decision as to who shall be charged with paying the
deductible amount may, but need not, be based on fault.
MPiS -Word 31235.1 19
I • T
9.3 Loss Payee: insurance Trustee. All insurance coverage maintained by the
Association shall be written in the name of, and the proceeds thereof shall be payable to, the
Association (or a qualified insurance trustee selected by it) as trustee for the benefit of the
Owners and secured parties which suffer loss. The Association, or any insurance trustee selected
by it, shall have exclusive authority to negotiate, settle and collect upon any claims or losses
under any insurance policy maintained by the Association.
9.4 Required Policy Provisions. All policies of property insurance carried by the
Association shall provide that:
9.4.1 Each Owner and secured party is an insured Person under the policy with
respect to liability arising out of the Owner's interest in the Common Elements or
membership in the Association.
9.4.2 The insurer waives its right to subrogation under the policy against any
Owner or member of the Owner's household and against the Association and members of
the Board.
9.4.3 The coverage shall not be voided by or conditioned upon (i) any act or
omission of an Owner or Eligible Mortgagee, unless acting within the scope of authority
on behalf of the Association, or (ii) any failure of the Association to comply with any
warranty or condition regarding any portion of the Property over which the Association
has no control
9.4.4 If at the time of a loss under the policy there is other insurance in the name
of an Owner covering the same property covered by the policy,. the Association's policy
is primary.
9.5 Cancellation: Notice of Loss. Property insurance and comprehensive liability
insuwce . poli„ies. maintained by the Association shall. provide that the policies . shall ndt be
canceled or substantially modified, for any reason, without at least thirty days prior written
notice to the Association and to all secured parties holding first mortgages on Units.
9.6 Restoration in Lieu of Cash Settlement. All policies of property insurance
maintained by the Association shall provide that, despite any provisions giving the insurer the
right to elect to restore damage in lieu of a cash settlement, such option shall not be exercisable
(i) without the prior written approval of the Association (or any insurance trustee) or (ii) when in
conflict with provisions of any insurance trust agreement to which the Association may be a
party, or any requirement of law.
9.7 Owner's Personal Insurance. Each Owner shall obtain additional personal
insurance coverage (commonly known as "gap coverage" or an "1106" policy) at his or her own
expense covering fire and other casualty to the interior of the Unit, personal property and the
Owner's personal liability. Insurance policies maintained by Owners are without contribution as
against the insurance purchased by the Association, except as to deductible amounts or other
items not covered under the Association's policies.
MPCS -Word 31235.1 20
SECTION 10
RECONSTRUCTION, CONDEMNATION AND EMINENT DOMAIN
10.1 Reconstruction. The obligations and procedures for the repair, reconstruction or
disposition of the Property following damage or destruction thereof shall be governed by the Act.
Any repair or reconstruction shall be commenced as soon as practicable after the casualty and
shall be substantially in accordance with the plans, specifications and design of the Property as
initially constructed and subsequently improved. Notice of substantial damage or destruction
shall be given as provided in Section 14.10.
10.2 Condemnation and Eminent Domain. In the event of a taking of any part of the
Property by condemnation or eminent domain, the provisions of the Act shall govern; provided,
(i) that notice shall be given as provided in Section 14.10, (ii) that the Association shall be the
attorney -in -fact to represent the Owners in any related proceedings, negotiations, settlements or
agreements and (iii) that any awards or proceeds shall be payable to the Association for the
benefit of the Owners and the mortgagees of their Units. Eligible Mortgagees shall be entitled to
priority for condemnation awards in accordance with the priorities established by the Act and the
Governing Documents, as their interests may appear.
10.3 Termination and Liquidation. The termination of the common interest
community, and the distribution of any proceeds therefrom, shall be governed by the Act. Any
distribution of funds shall be based upon the value of the Units as determined by their relative
value for property insurance purposes, and shall be made to Owners and their mortgage holders,
as their interests may appear, as provided in the Act.
10.4 Notice. The Association shall give written notice of any condemnation
proceedings or substantial destruction of the Property to the Eligible Mortgagees entitled to
notice under Section 14.10.
10.5 Association's Authority. In all cases involving reconstruction, condemnation,
eminent domain, termination or liquidation of the common interest community, the Association
shall have authority to act on behalf of the Owners in all proceedings, negotiations and
settlement of claims. All proceeds shall be payable to the Association to hold and distribute for
the benefit of the Owners and their mortgage holders, as their interests may appear, in
accordance with the Act.
SECTION 11
EASEMENTS
Each Unit and the Common Elements, and the rights of the Owners and Occupants
therein, shall be subject to the perpetual, appurtenant easements and rights granted and reserved
in this Section 11.
11.1 Access. Each Unit shall be the beneficiary of a nonexclusive easement for access
to and from public roadways and walkways on and across those portions of the Common
Elements (if any) designated for use as driveways or walkways, as originally constructed, shown
MPLS -Word 31235.1 21
• , 4 T
on the Plat or otherwise designated by the Association, subject to any restrictions authorized by
the Governing Documents or the Rules and Regulations.
11.2 Use and Enjoyment. Each Unit shall be the beneficiary of nonexclusive
easements for use and enjoyment on and across the Common Elements and any Limited
Common Element allocated to the Units, subject to any restrictions authorized or imposed by the
Governing Documents.
11.3 Structural Support. Each Unit and the Common Elements shall be subject to and
the beneficiary of nonexclusive easements for structural support in all walls, columns, joists,
girders and other structural components located in or passing through another Unit or other parts
of a Building, or shared with an adjoining Unit or the Common Elements.
11.4 Encroachments. Each Unit and the Common Elements, and the rights of the
Owners and Occupants therein, shall be subject to a nonexclusive easement in favor of the
adjoining Units for encroachments caused by the construction, reconstruction, repair, shifting,
settlement or movement of any part of the Property, and for improvements which are added in
compliance with Section 7.10. If there is an encroachment upon another Unit or the Common
Elements, as a result of any of the aforementioned causes, an easement shall exist for the
encroachment, for the use, enjoyment and habitation of any encroaching Unit or improvement,
and for the maintenance thereof Improvements or alterations added pursuant to. Section 7.10
shall be limited to minor encroachments, and no easement shall exist unless the proposed
improvements have been approved and constructed as required by this Declaration. • Such
easements shall, continue for as long as. the encroachment exists and shall not affect the
marketability of title.
11.5 Maintenance, Repair, Replacement and Reconstruction. Each Unit, and the rights
of the Owners and Occupants thereof, and the Common. Elements and Limited Common
Element, shall be subject and benefited by a nonexclusive easement in favor of the Association
for .he-maintenance, repair, replacement and reconstruction of the Common Elements, Units and
other improvements located within the Units, and utilities serving the Units, to the extent
necessary to fulfill the Association's obligations under the Governing Documents. Each Owner
shall afford to the Association and its management agents and employees, access at reasonable
times and upon reasonable notice, to and through the Unit and its Limited Common Elements for
maintenance, repair and replacement; provided that access may be had without notice and at any
time in case of emergency.
11.6 Utilities. The Common Elements and the Units shall be subject to and benefited
by nonexclusive easements in favor of the Association, the City and all utility companies and
other service providers for the installation, use, maintenance, repair and replacement of all
utilities, services and common operating systems, such as natural gas, electricity, cable TV and
other electronic communications, water, sewer, septic systems, wells, and similar services, fire
control systems and other common operating systems, and metering and control devices, which
exist, which are constructed as part of the development of the Property which are approved by
the City, which are approved by the Association under authority contained in the Governing
Documents or the Act, or which are described or referred to in the Plat, this Declaration or other
recorded instruments. Each Unit, and the rights of the Owners and Occupants thereof, shall also
be subject to and benefited by a non - exclusive, easement in favor of the other Units, the
MPIS -Word 31235.1 22
" Z
Common Elements and the Association for all such utilities, services, fire control systems and
other common operating systems. Utilities and related services or systems shall be installed,
used, maintained and repaired so as not to interfere with the use and quiet enjoyment of the Units
by the Owners and Occupants, nor affect the structural or architectural integrity of the Building,
Units or Common Element improvements.
11.7 Emergency Access to Units. In case of emergency, all Units and Limited
Common Elements are subject to an easement, without notice and at any time, in favor of the
Association for access by the Association's management agents, and in favor of fire, police or
other public safety personnel.
11.8 Project Signs. Declarant and the Association shall have a non - exclusive easement
and right to erect and maintain temporary and permanent signs and related monuments
identifying the common interest community on the Common Elements and on Units owned by
the Declarant. Those parts of the Property on which monument signs or related decorative
improvements are located shall be subject to non - exclusive easements in favor of the Association
for the continuing use, maintenance, repair and replacement of said signs and improvements.
11.9 Declarant's Easements.
exclusive easements in favor of the
described in the Governing Documents.
The Units and Common Elements are subject to
Declarant for the .exercise of its Declarant Rights as
11.10 Other Easements. The Property shall be subject to such other easements as may
be recorded against the Property by reason of the ;City's: requirements , in connection with the
development of the Property.
11.11 Declaration of Easements. The Property is subject to and benefited by the,
Declaration of Easements entered into, by the Edina Housing and Redevelopment Authority, the
City, the Declarant, and OPUS Northwest, LLC, the developer of other parts of the Grandview
_Square.,.dPY_dQpment .area. , . Subject ,„1o. -any, future. _.amendment thereof,--the ..Declaration_ of , ,.-
Easements establishes and defines certain easement rights and maintenance obligations with
respect to the Grandview Square development area, including certain rights and obligations of
the Association. These rights include easements for utilities, for access to and from the Property,
and for parking, in favor of the Owners and Occupants, and public access and parking rights on
certain roadways located on the Property. The maintenance obligations that are established
under the Declaration of Easements are delegated and assigned to and among the Association
and the other common interest community association referenced therein pursuant to an
Assignment of Maintenance Obligations recorded against the Property and the adjacent property
upon which such other common interest community is located. The Assignment of Maintenance
Obligations also obligates the Association to contribute to the costs of maintaining certain
portions of such adjacent property.
11.12 Continuation, Scope and Conflict of Easements. The easements set forth in this
Section (i) shall run with the land and shall be appurtenant to the benefited Property, (ii) shall
supplement and not limit any easements described elsewhere in this Declaration, or otherwise
recorded, (iii) shall be permanent, subject only to termination in accordance with the terms of the
easement, and (iv) shall include reasonable access to the easement areas over and through the
Property for purposes of construction, maintenance, repair, replacement and reconstruction.
MPtS -Word 31235.1 23
• .. 4?
I 1.13 Non Interference; Impairment Prohibited. All Persons exercising easement rights
shall do so in a reasonable manner so as not to materially interfere with the operation of the
Property or damage to the Property, and shall be financially liable for all costs of repair of any
part of the Property which is damaged by the Person's exercise of the easement rights. No
Person shall impair, obstruct or cause damage to any easement area, or improvements or
equipment installed therein. Notwithstanding anything in this Declaration to the contrary, no
Owner or Occupant shall be denied reasonable access to his or her Unit or the right to utility
services thereto.
11.14 Benefit of Easements. All easements benefiting a Unit shall benefit the Owners
and Occupants of the Unit, and their families and guests. However, an Owner who has delegated
the right to occupy the Unit to an Occupant or Occupants, whether by a lease or otherwise, does
not have the use and other easements rights in the Property during such delegated occupancy,
except (i) as a guest of an Owner or Occupant or (ii) in connection with the inspection of the
Unit or recovery of possession of the Unit pursuant to law.
SECTION 12
COMPLIANCE AND REMEDIES
Each Owner and Occupant, and any other Person owning or acquiring any interest in the
Property, shall be governed by and comply with the provisions of the Act, the Governing
Documents, the Ryles and Regulations; m
and such aendm ass- thereto may be ??Made from time
to time, and the decisions of the Association. A failure to comply shall entitle the Association to
the relief set forth in this Section, in addition to the rights and remedies authorized elsewhere by.
the Governing Documents and the Act.
12.1 Entitlement to Relief. Legal relief may be sought by the Association against any
Owner, or by an Owner against the Association or another Owner, to enforce compliance with
* thee -Gov wing Documents, the Rules end Regulations, the Act or -the decisions -of the
Association. However, no Owner may withhold any Assessments payable to the Association,
nor take or omit other action in violation of the Governing Documents, the Rules and
Regulations or the Act, as a measure to enforce such Owner's position, or for any other reason.
12.2 Remedies. In addition to any other remedies or sanctions, expressed or implied,
administrative or legal, the Association shall have the right, but not the obligation, to implement
any one or more of the following actions against Owners and Occupants and/or their guests, who
violate the provisions of the Governing Documents, the Rules and Regulations or the Act:
12.2.1 Commence legal action for damages or equitable relief in any court of
competent jurisdiction.
12.2.2 Impose late charges of up to the greater of twenty dollars, or fifteen
percent of the amount past due, for each past due Assessment or installment thereof, and
impose interest at the highest rate permitted by law accruing beginning on the first day of
the month after the Assessment or installment was due.
12.2.3 In the event of default of more than thirty days in the payment of any
Assessment or installment thereof, all remaining installments of Assessments assessed
MP[S -Word 31235.1 24
against the Unit owned by the defaulting Owner may be accelerated and shall then be
payable in full if all delinquent Assessments or installments thereof, together with all
attorneys' fees, costs of collection and late charges, are not paid in full prior to the
effective date of the acceleration. Not less than ten days advance written notice of the
effective date of the acceleration shall be given to the defaulting Owner.
12.2.4 Impose reasonable fines, penalties or charges for each violation of the Act,
the Governing Documents or the Rules and Regulations.
12.2.5 Suspend the rights of any Owner or Occupant and their guests to use any
Common Element amenities; provided, that the suspension of use rights shall not apply to
Limited Common Elements allocated to the Unit, and those portions of the Common
Elements providing utilities service and access to the Unit. Such suspensions shall be
limited to periods of default by such Owners and Occupants in their obligations under the
Governing Documents, and for up to thirty days thereafter, for each violation.
12.2.6 Restore any portions of the Common Elements, Unit, or Limited Common
Elements damaged or altered, or allowed to be damaged or altered, by any Owner or
Occupant or their guests in violation of the Governing Documents, and to assess the cost
of such restoration against the responsible Owners and their Units.
12.2.7 Enter any Unit or Limited Common Element in which, or as to which, a
violation or breach of the'Governing Documents or the Rules and Regulations exists
which materially affects, ,or -is likely to materially affect, the health or safety of the other
Owners or Occupants, or their guests, or the safety or soundness of any Unit or other part,
of the Property or the property of the Owners or Occupants. The Association may
summarily abate, demolish and remove, at the expense of the offending Owner or
Occupant, any structure, thing or condition in the Unit or Limited Common Elements
which is causing the violation; provided, that any improvements which are a part of a
-Unit inay-bc "altered, -demolished °or removed only pursuant to a court order or with the
agreement of the Owner.
12.2.8 Foreclose any lien arising under the provisions of the Governing
Documents or under law, in the manner provided by the Governing Documents.
12.3 Rights to Hearing. Before the imposition of any of the remedies authorized by
Section 12.2.4, 12.2.5, 12.2.6 or 12.2.7, the Board shall, upon written request of the offender,
grant to the offender an opportunity for a fair and equitable hearing as contemplated by the Act.
The offender shall be given notice of the nature of the violation and the right to a hearing, and
ten days within which to request a hearing. The hearing shall be scheduled by the Board and
held within thirty days of receipt of the hearing request by the Board, and with at least ten days'
prior written notice to the offender. If the offender fails to timely request a hearing or to appear
at the hearing, then the right to a hearing shall be waived and the Board may take such action as
it deems appropriate. The decision of the Board and the rules for the conduct of hearings
established by the Board shall be final and binding on all parties. The Board's decision shall be
delivered in writing to the offender within ten days following the hearing, if not delivered to the
offender at the hearing.
MPLS -Word 31235.1 25
a , AP
12.4 Lien for Charges, Penalties Etc. Any charges, fines, expenses, penalties, interest
or other impositions under this Section shall be a lien against the Unit of the Owner or Occupant
against whom the same are imposed and the personal obligation of such Owner in the same
manner and with the same priority and effect as Assessments under Section 6. The lien shall
attach as of the date of imposition of the remedy, but shall not be final as to violations for which
a hearing is held until the Board makes a written decision at or following the hearing. All
remedies shall be cumulative, and the exercise of, or failure to exercise, any remedy shall not be
deemed a waiver of the Association's right to pursue any others.
12.5 Costs of Proceeding and Attorneys' Fees. With respect to any collection
measures, or any measures or action, legal, administrative, or otherwise, which the Association
takes to enforce the provisions of the Act, Governing Documents or Rules and Regulations,
whether or not finally determined by a court or arbitrator, the Association may assess the Unit
owned by the violator with any expenses incurred in connection with such enforcement,
including without limitation fines or charges previously imposed by the Association, reasonable
attorneys' fees, and interest (at the highest rate allowed by law) on the delinquent amounts owed
to the Association. Such expenses shall also include any collection or contingency fees or costs
charged to the Association by a collection agency or other Person acting on behalf of the
Association in collecting any delinquent amounts owed to the Association by an Owner or
Occupant. Such collection or contingency fees or costs shall be the personal obligation of the
Owner of the Unit and shall be a lien against such Owner's Unit.
12.6 'Liability for Acts of Owners and Occupants. An Owner shall ;be liable for the
expense of any maintenance, repair or replacement of the Property rendered necessary by such
Owner's acts or omissions, or by that of Occupants or guests in the Owner's Unit, to the extent
that such expense is not covered by the proceeds of insurance carried by the Association;or such
Owner or Occupant. However, any insurance deductible amount and/or increase in insurance
rates,, resulting from the Owner's acts or omissions may be assessed against the Owner
responsible for the condition and against his or her Unit.
12.7 Enforcement by Owners. The provisions of this Section shall not limit or impair
the independent rights of other Owners to enforce the provisions of the Governing Documents,
the Rules and Regulations, and the Act as provided therein.
SECTION 13
AMENDMENTS
13.1 Approval Requirements. Except for amendments by Declarant pursuant to
Section 15, this Declaration may be amended only by the approval of
13.1.1 The Board.
13.1.2 Owners of Units to which are allocated at least sixty -seven percent of the
total votes in the Association.
13.1.3 The percentage of Eligible Mortgagees (based upon one vote per Unit
financed) required by Section 14 as to certain amendments referred to in said Section.
MPLS -Word 31235.1 26
, .3
13.1.4 Declarant as to certain amendments as provided in Section 15.
13.1.5 The City as to any amendment which adversely affects the rights or
obligations of the City under the Contract for Private Redevelopment or Declaration of
Reciprocal Easements covering the Property.
13.2 Procedures. Approval of the Owners may be obtained in writing or at a meeting
of the Association duly held in accordance with the Bylaws. Consents of Eligible Mortgagees or
Declarant, if required, shall be in writing. Any amendment shall be subject to any greater
requirements imposed by the Act. The amendment shall be effective when recorded as provided
in the Act. An affidavit by the Secretary of the Association as to the outcome of the vote, or the
execution of the foregoing agreements or consents, shall be adequate evidence thereof for all
purposes, including without limitation, the recording of the amendment.
SECTION 14
RIGHTS OF ELIGIBLE MORTGAGEES
Notwithstanding anything to the contrary in the Governing Documents, but subject to the
Act or other laws, Eligible Mortgagees shall have the following rights and protections:
14.1 Consent to Certain Amendments. Subject to Declarant's rights under Section 15,
the written consent of Eligible Mortgagees representing at least fifty -one percent of the Units that
are subject to first mortgages held by Eligible M— ortgagees (based upon one vote per Unit
financed ) shall be required for any amendment to the Governing Documents which causes any
change in provisions' including the following: '(i) voting rights; (ii) increases in Assessments
over twenty -five percent; (iii) Assessment liens, or priority of Assessment` liens; (iv) reductions
in reserves for maintenance, repair and replacement of Common Elements; (v) responsibility; for
maintenance and repairs; (vi) reallocation of interests in the Common Elements or Limited
Common Elements, ` or rights to their use; (vii) redefinition of any Unit boundaries;.
(viii) convertibility of Units into Common Elements or vice versa; (ix) expansion or contraction
of the Property or the addition, annexation or withdrawal of property to or from the Property;
(x) hazard or fidelity insurance requirements; (xi) imposition of material restrictions on the
leasing of Units; (xii) imposition of any restrictions on an Owner's right to sell or transfer his or
her Unit; (xiii) a decision by the Association (if the common interest community involves fifty or
more Units) to establish self management when professional management is in effect as required
previously by the Governing Documents or an Eligible Mortgagee; (xiv) restoration or repair of
the Property (after a hazard damage or partial condemnation) in a manner other than that
specified in the Governing Documents; (xv) any action to terminate the legal status of the
common interest community after substantial destruction or condemnation occurs; or (xvi) any
provisions that expressly benefit Eligible Mortgagees, or insurers or guarantors of mortgages.
14.2 Consent to Certain Actions. Subject to Declarant's rights under Section 15, the
written consent of Eligible Mortgagees representing at least sixty -seven percent of the Units that
are subject to first mortgages held by Eligible Mortgagees (based upon one vote per Unit
financed ) shall be required to (i) abandon or terminate the common interest community;
(ii) change the allocations of voting rights, Common Expense obligations or interests in the
Common Elements; (iii) partition or subdivide a Unit except as permitted by statute;
(iv) abandon, partition, subdivide, encumber or sell any Common Elements; or (v) use hazard
MPLS -Word 31235.1 27
I,
insurance proceeds for other than the repair, replacement or reconstruction of the Property,
except as otherwise provided by law.
14.3 Consent to Subdivision. No Unit may be partitioned or subdivided without the
prior written approval of the Owner and Eligible Mortgagee thereof, and the Association.
14.4 No Right of First Refusal. The right of an Owner to sell, transfer or otherwise
convey his or her Unit shall not be subject to any right of first refusal or similar restrictions.
14.5 Priori !y of Lien. Any Person who comes into possession of a Unit by foreclosure
of the first mortgage on a Unit, or by deed or assignment in lieu of foreclosure of the first
mortgage on a Unit, takes the Unit free of any claims for unpaid Assessments or any other
charges or liens imposed against the Unit by the Association which have accrued against such
Unit prior to the acquisition of possession of the Unit by said Person; (i) except as provided in
Section 6.10 and the Act and (ii) except that any unreimbursed Assessments or charges may be
reallocated among all Units in accordance with their interests in the Common Elements.
14.6 Priority of Taxes and Other Charges. All taxes, Assessments and charges which
may become liens prior to the first mortgage under state law shall relate only to the individual
Units and not to the Property as a whole.
14.7 Priority for Condemnation Awards. No provision of the Governing Documents
shall give an Owner, or any other party, priority over any, rights of the Eligible Mortgagee of the
Unit pursuant to its .mortgage in the case of a distribution to such Owner of insurance proceeds or.
condemnation awards for losses to or a taking of the Unit and/or the Common Elements. The,;
Association shall give written notice to all Eligible Mortgagees.of any condemnation or. eminent
domain proceeding affecting the Property promptly upon receipt of notice from the condemning
authority.
14.8 Requirements for Management Agceel ents. The term of any agreement for ,
professional management of the Property shall not exceed two years. Any such agreement shall
provide for termination without penalty or termination fee by either party as follows: (i) with
cause, upon a minimum of thirty days prior written notice, and, (ii) without cause, upon ninety
days prior written notice.
14.9 Access to Books and Records/Audit. Eligible Mortgagees shall have the right to
examine the books and records of the Association upon reasonable notice during normal business
hours, and to receive free of charge, upon written request, copies of the Association's annual
reports and other financial statements. Financial statements, including those which are audited,
shall be available within one hundred twenty days after the end of the Association's fiscal year.
If the common interest community consists of fewer than fifty Units, FNMA, or any institutional
guarantor or insurer of a mortgage loan against a Unit, may require that, at its own expense, an
audit of the Association's financial statements be made for the preceding year, in which case the
Association shall cooperate in having an audit made and a copy given to the requesting party. If
the common interest community consists of fifty or more Units, the Association shall provide the
requested audit at its expense.
MPCS -Word 31235.1 28
. , J.
14.10 Notice Requirements. Upon written request to the Association, identifying the
name and address of the holder, insurer or guarantor of a mortgage on a Unit, and the Unit
number or address, the holder, insurer or guarantor shall be entitled to timely written notice of
14.10.1 a condemnation loss or any casualty loss which affects a material portion
of the Property or the Unit securing the mortgage;
14.10.2 a sixty day delinquency in the payment of Assessments or charges owed
by the Owner of a Unit on which it holds a mortgage;
14.10.3 a lapse, cancellation or material modification of any insurance policy
maintained by the Association; and
14.10.4 a proposed action which requires the consent of a specified percentage of
Eligible Mortgagees.
SECTION 15
SPECIAL DECLARANT RIGHTS
Declarant hereby reserves exclusive and unconditional authority to exercise the following
special declarant rights within the meaning of Section 515B.1- 103(32) of the Act for as long asJt
owns a Unit, or for such shorter period as may be specifically indicated:
15.1 Complete Improvements. To complete all the` Units and other improvements
indicated on the Plat, or otherwise included in Declarant's development plans or authorized ,by.
the City or by this Declaration, and to make alterations in the Units owned by Declarant and the
Common Elements to accommodate the exercise of any special declarant rights.
15.2 Relocate Boundaries and Alter Units. To relocate boundaries between Units and
'to otherwise alter Units owned by it, to the extent permitted 1y the Actand -9ect on f 6. , -`
15.3 Sales Facilities. To construct, operate and maintain a sales office, management
office, models, and other development, sales and rental facilities within the Common Elements,
and within any Units owned or leased by Declarant from time to time, located anywhere on the
Property.
15.4 Si is. To erect and maintain signs and other sales displays offering the Units for
sale or lease, on any Unit owned by Declarant and on the Common Elements.
15.5 Easements. To have and use easements, for itself, its employees, contractors,
representatives, agents, prospective purchasers and other invitees through and over the Common
Elements and the Units for the purpose of exercising its special declarant rights.
15.6 Control of Association. To control the operation and administration of the
Association, including without limitation the power to appoint and remove the members of the
Board pursuant to Section 515B.3 -103 of the Act, until the earliest of: (i) voluntary surrender of
control by Declarant, (ii) an Association meeting which shall be held within sixty days after
conveyance to Owners other than Declarant of seventy-five percent of the total number of Units
MP1S -Word 31235.1 29
authorized to be included in the Property or (iii) the date three years following the date of the
first conveyance of a Unit to an Owner other than Declarant. Notwithstanding the foregoing, the
Owners other than Declarant shall have the right to nominate and elect not less than thirty -three
and one -third percent of the directors at a meeting of the Owners which shall be held within sixty
days following the conveyance by Declarant of fifty percent of the total number of Units
authorized to be included in the Property.
15.7 Consent to Certain Amendments. Until such time as Declarant no longer owns
any Unit for initial sale, Declarant's written consent shall be required for any amendment to the
Governing Documents or Rules and Regulations.
SECTION 16
RIGHTS TO RELOCATE BOUNDARIES
Declarant shall have the exclusive right and authority to relocate the boundaries of any
Unit owned by it pursuant to Section 515B.2 -114 of the Act.
SECTION 17
MISCELLANEOUS
17.1 Se_verability. If any term, covenant, or provision of this instrument or. any exhibit
attached hereto is held to be invalid or unenforceable for any reason whatsoever,_ such
determination shall not be deemed to alter, affect or impair in any manner whatsoever any other
portion of this Declaration or exhibits attached hereto.
17.2 Construction. Where applicable, the masculine gender of any word used herein
shall mean the feminine or neutral gender, or vice versa, and the singular of any word used
herein shall mew t the plural, or vice versa. References to the Act, or any section thereof, shal!be
deemed to include any statutes amending or replacing the Act, and the comparable sections
thereof. Any amendment to the Act shall retroactively apply to the Association and the Property,
except as expressly prohibited or qualified by the Government Documents.
17.3 Tender of Claims. In the event that any incident occurs which could reasonably
give rise to a demand by the Association against Declarant for indemnification pursuant to the
Act, the Association shall promptly tender the defense of the action to its insurance carrier, and
give Declarant (i) written notice of such tender, (ii) written notice of the specific nature of the
action, and (iii) an opportunity to defend against the action.
17.4 Notices. Unless specifically provided otherwise in the Governing Documents or
the Act, all notices required to be given by or to the Association, the Board, the Association
officers, or the Owners or Occupants shall be in writing and shall be effective upon hand
delivery, or mailing if properly addressed with postage prepaid and deposited in the United
States mail; except that registrations pursuant to Section 2.2 of the Bylaws shall be effective
upon receipt by the Association-
MRS-Word 31235.1 30
17.5 Conflicts Among Documents. In the event of any conflict among the provisions
of the Act, the Declaration, the Bylaws and the Rules or Regulations, the Act shall control unless
it permits the documents to control. As among the Declaration, the Bylaws and the Rules and
Regulations, the Declaration shall control, and as between the Bylaws and the Rules and
Regulations, the Bylaws shall control.
17.6 Duration of Covenants. The covenants, conditions, restrictions, easements, liens
and charges contained in this Declaration shall be perpetual, subject only to termination as
provided in this Declaration and the Act.
IN WITNESS WHEREOF, the undersigned has executed this instrument the day and
year first set forth in accordance with the requirements of the Act.
R.E.C., INC., a Minnesota corporation
By: cLL
Title: C,50
STATE OF MINNESOTA )
SS.
COUNTY
The foregoing ins tt t w ackn w ed n efore me this _1� day of
2004, by uu %nom the
of R.E.C., Inc., a Minnesota corporation, on behalf of said
entity.
THIS 1NSTRU'MENI° WAS DRAFTED BY:
David B. Eide, Esq.
FELHABER, LARSON, FENLON & VOGT, P.A.
Attorneys at Law
220 South Sixth Street, Suite 2200
Minneapolis, Minnesota 55402 -4302
(612) 373 -8520
MPLS -Word 31235.1 31
N t y Public
CYt�THU I.KA
Wro ota
Unit Number
2101
2102
2103
2104
2105
2106
2108
2109
2110
2111
2112
2113
2201
2202
2203
2204
2205
22(17
2208
2209
2210
2211
2212
2213
2301
2302
2303
2304
2305
2306
2307
2308
MPLS -Word 31235.1
COMMON INTEREST COMMUNITY NO. 1250
VILLAGE HOMES OF GRANDVIEW SQUARE II
EXHIBIT A TO DECLARATION
SCHEDULE OF UNITS AND UNDIVIDED INTERESTS
Percentage of
Percentage of
Undivided Interest
Unit Number
Undivided Interest
2.260
2309
1.678
2.046
2310
1.678
2.260
2311 •
1.678
2.046
2312 •
2.476
1.678
2313.
2.147
1.678
2401
2.260
2.260
2402
2.046
1.678
2403
2.260
1.678
2404
2.046
1.678
2405
1.678
2.476
2406
1.678
2.147
2407
2.046
2.260
2408 `
2.260
2.046
2409
1.678
2.260
2410
1.678
2.046
2411
1.678
1.678
2412
2.476
?.046
241.3
2.147
2.260
1.678
1.678
1.678
2.476
2.147
2.260
2.046
2.260
2.046
1.678
1.678
2.046
2.260
Total Percentage:
100.00%
COMMON INTEREST COMMUNITY NO. 1250
VILLAGE HOMES OF GRANDVIEW SQUARE II
EXHIBIT B TO DECLARATION
DESCRIPTION OF PROPERTY
Lot 1, Block 1, Grandview Square P Addition, Hennepin County, Minnesota,
according to the recorded plat thereof.
I
COMMON INTEREST COMMUNITY NO. 1250
Condominium
VILLAGE HOMES OF GRANDVIEW SQUARE II
CONSENT BY MORTGAGEE
The undersigned (the "Mortgagee ") is a mortgagee of portions of real property described
in the Declaration of Village Homes of Grandview Square II (the "Declaration'). Mortgagee
hereby consents 'to this Declaration; provided, that by consenting to this Declaration, (i) the
Mortgagee does not in any manner constitute itself or obligate itself as a Declarant as defined in
the Declaration, (ii) such consent does not modify or amend the terms and conditions of the
Mortgage and related loan documents, and (iii) the Mortgage shall remain as a lien on the
property described therein, prior to any Assessment liens or other liens imposed under the
Declaration, until released or satisfied.
IN WITNESS WHEREOF, the Mortgagee has caused this Consent to be executed on
the tq'8' day of /% ."C-6 A001.
STATE OF MINNESOTA )
) ss.
.COUNTY O ' )
boo �The.
, t
o f 1J-1U5do
+`
v Public
Public
.
MPLS -Ward 31235.1
By.
Its: A vP
was acknowledged before me this * day of
AMA
the
a
Notary Public
on behalf of said entity.