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HomeMy WebLinkAbout2613r 11 -TC ,r(k AND PMRTAXES VP19 TAXPAYER SERVICES Tn "IlgPPR ENTERF-D DEC II{ UTY mm Doc No 8498298 12127/2004 12:36 PM - Certified filed and or recorded on above date: Office of the County Recorder Hennepin County, Minnesota Michael H. Cunniff, County Recorder Deputy 18 TranSID 83352 Fees $19.00 DOC $4.50 SUR $1.00 COPY 1 - $30.00 PLT t $54.50 Total COMMON INTEREST COMMUNITY NO. 1472 CONDOMINIUM 50TH STREET CONDOMINIUM DECLARATION THIS DECLARATION is made as of this 26h day of November, 2004, by Colonial Development of Edina, Inc., a Minnesota corporation, herein collectively called "Declarant ", pursuant to the provisions of the Minnesota Common Interest Ownership Act, Minnesota Statutes Sections 515B.1 -101 through 51513.4 -118 ( "MCIOA "), as amended. RECITALS Declarant is the owner of that certain real estate situated in Hennepin County, Minnesota, described in Exhibit A attached hereto, all of which real estate constitutes and is referred to herein as the "Real Estate ". Declarant has caused 50th Street Condominium Association (the "Association ") to be formed as a Minnesota nonprofit corporation to serve as the statutory association of unit owners for 50`h Street Condominium. Declarant wishes to establish the Real Estate as a condominium under MCIOA. NOW THEREFORE, Declarant declares that the Real Estate is and shall be divided, held, transferred, conveyed, sold, leased, occupied and developed subject to MCIOA and to the covenants, conditions, restrictions, easements, charges and liens set forth in this Declaration, all of which shall run with the Real Estate and be binding upon all parties having any right, title or interest in the Real Estate, their heirs, successors and assigns, and which shall inure to the benefit of each unit owner, and the heirs, successors and assigns of each unit owner. 1 Note to Readers Many provisions of MCIOA (Chapter 515B) which govern this common interest community (TIC"), and of the Minnesota Nonprofit Corporation Act, Minnesota Statutes, Chapter 317A under which the Association is formed, are not repeated in this Declaration. This Declaration should be read in conjunction with both statutes. 1.00 DEFINITIONS 1.01 Words defined in MCIOA shall have the meaning ascribed to them in that Act. The following are supplemental definitions. A. "Association" shall mean 50"' Street Condominium Association, a Minnesota nonprofit corporation. B. "Board of Directors" or "Board" shall mean the board of directors of the Association. C. "City" shall mean the City of Minneapolis. D. "Common Elements" shall mean the common elements of this condominium, as defined in MCIOA. E. "Eligible Mortgage Holders" shall mean those holders of a first mortgage on a Unit that have submitted a written request for the Association to notify them on any proposed action requiring the consent of a specified percentage of eligible mortgage holders. F. "Garage Units" shall mean any of the Units numbered Garage Unit 1 through Garage Unit 9. G. "Member" shall mean any person or entity holding membership in the Association. H. "Occupant" shall mean the lawful occupant of a Unit. I. "Owner" shall mean the record owner of a Unit. J. "Parking Space" shall mean any paved parking space designated from time to time by the Board under the authority of Section 8.02 below, and recorded in the corporate record books of the Association. K. "Residential Unit" shall mean any of the ten Units numbered 11, 12, 101, 102, 103, 104, 201, 202, 203 and 204. 2 L 2.00 IDENTITY OF REAL ESTATE AND CIC 2.01 This Declaration establishes Common Interest Community No. 1472, Hennepin County, Minnesota, under the name 50`s Street Condominium. It is a condominium (and not a planned community or cooperative). It is not subject to a master association within the meaning of MCIOA. The real estate included within this CIC is legally described in Exhibit A attached hereto. 3.00 CIC PLAT 3.01 The CIC Plat for this CIC is being recorded simultaneously with, and as a part of, this Declaration. 4.00 OWNERS ASSOCIATION 4.01 5& Street Condominium Association has been incorporated as a Minnesota nonprofit corporation under Minnesota Statutes, Chapter 317A to act as the association of unit owners required by section 515B.3 -101 of MCIOA. ;x.00 UNITS AND UNIT IDENTIFIERS 5.01 This CIC consists of nineteen (19) Units, of which ten (10) are Residential Units and nine (9) are Garage Units. The unit identifier of each Unit is shown on the CIC Plat. 6.00 BOUNDARIES 6.01 The unit boundaries of each Residential Unit shall be the walls, floors and ceilings of thereof, as described in further detail in Section 515B.2- 102(b) of MCIOA, all as shown on the CIC Plat. The lower and upper unit boundaries of each Garage Unit shall be the floor and ceiling thereof, and the vertical boundaries of each Garage Unit shall be the interior, unfinished surface, of a perimeter wall, and where there is no perimeter wall, a vertical plane extended upward from the center of the stall lines on the floor of the garage, all as shown on the CIC Plat. 7.00 USE OF UNITS; TRANSFER OF GARAGE UNITS 7.01 Residential Units. The Residential Units are restricted to residential use. However, the Owner or Occupant of a Residential Unit may use the Unit for home office or studio uses which are incidental to the principal residential use of the Unit, which comply with applicable zoning, and which do not invite or generate regular or frequent visits by clients, customers, employees, coworkers, or the public. 7.02 Garage Units: Use.. Garage Units are restricted to parking of vehicles. No Garage Unit may be used, temporarily or otherwise, as living or sleeping space. 7.03 Garage Units, Transfer. It is considered especially important to the preservation of the 91 value and desirability of Residential Units in this CIC that Garage Units not be owned by persons who have no ownership interest in a Residential Unit in this CIC. Therefore, a Garage Unit may only be owned by or conveyed (voluntarily, by operation of law, or otherwise) to one of the following: A. the owner or owners of a Residential Unit; or B. the Association. Any purported conveyance or transfer of a Garage Unit other than to the owner of a Residential Unit or to the Association shall be deemed null and void. If the owner of a Residential Unit conveys said Residential Unit, voluntarily or by operation of law or otherwise, and no loner owns any Residential Unit, but retains ownership of one or more Garage Units, the Association may give written notice to such former Residential Unit owner requiring conveyance to the Association of all Garage Units owned by such former Residential Unit Owner, or conveyance to an owner of a Residential Unit, for such consideration as the parties may agree, within sixty (60) days of such notice, and if such conveyance does not occur of record within said sixty (60) days, the Association may declare such Garage Unit or Units forfeited to the Association, whereupon the owner of such Garage Unit or Units will deed the same to the Association free and clear and without compensation. The Association may enforce this restriction in equity. 8.00 LIMITED COMMON ELEMENTS 8.01 Allocation of Limited Common Elements. Certain portions of the common elements are allocated for the exclusi a use of one or more but fewer than all of the Units. Portions of the common elements so all cated are referred to as "limited common elements ". In other words, all limited common elements are also common elements, but not all of the common elements are limited common elements. Fixtures, improvements and other components specified in Section 515B.2- 102(d) and (f) of the Act are limited common elements. These include the doors and windows that are part of the perimeter boundary of a Unit. In addition, certain other limited common elements, and the Unit to which each is allocated, are depicted in the CIC Plat. 8.02 Parking Spaces (Not Limited Common Elements). In addition to the Garage Units, which are enclosed parking stalls, there are parking spaces behind the apartment building in the common element area designated on the CIC. Plat as "Bituminous Surface". These Parking Spaces are not limited common elements but are simply part of the Common Elements. All of the Parking Spaces shall be deemed assigned to the Declarant upon the recording of this Declaration. Declarant may then reassign a Parking Space for the exclusive use of a particular Unit. Declarant shall be entitled to charge for the initial reassignment of a Parking Space and to retain all such consideration received for such reassignment. The Declarant shall continue to have the right to make, such initial reassignments of Parking Spaces not previously assigned by it until the recording of a conveyance of the last Unit to an owner other than Declarant. Thereafter, any Parking Spaces that were not previously reassigned by the Declarant will be deemed reassigned without consideration to the Association, and the Board may then make 4 initial reassignments of Parking Spaces not previously assigned in accordance with the rules and regulations adopted from time to time by the Board. The Board is not required to assign all such Parking Spaces, but may designate some for guest parking or other shared use. Every assignment and reassignment shall be recorded in the corporate records of the Association, and once an assignment is made, the Parking Space may not be reconfigured or reassigned without the written consent of the then Owners of the Unit to which it was assigned. The then- current assignment of a Parking Space will run with the conveyance of the Unit to which it is assigned. The Board will reassign a Parking Space to another Unit upon the written request of the Owners of the Unit to which it is then assigned and of the Owners of the Unit to which it will be reassigned. The Board may allocate some or all of the common expenses associated with an Parking Space to the Unit to which it is assigned. The Board may adopt reasonable regulations regarding the type, size and condition of vehicles and materials that may be stored on Parking Spaces, and prohibiting long -term storage of inoperable or seasonal vehicles. 9.00 ALLOCATED INTERESTS 9.01 Expenses and Ownership. Each of the Units is hereby allocated the percentage Qf the undivided interest in the common elements and the percentage of the common expenses of the Association set forth in Exhibit B hereto attached, provided, however, that certain expenses may be assessed on a different basis, or against one or fewer than all Units, under the following circumstances: A. Any common expense associated with the maintenance, repair, or replacement of a limited common element undertaken by the Association shall be assessed exclusively against the Unit or Units to which that limited common element is assigned, on the basis of (i) equality, (ii) square footage of the area being maintained, repaired or replaced, or (iii) the actual cost incurred with respect to each Unit. B. Any common expense or portion thereof benefiting fewer than all of the Units may be assessed exclusively against the Units benefited, on the basis of (i) equality, (ii) square footage of the area being maintained, repaired or replaced, or (iii) the actual cost incurred with respect to each Unit. For example, the Board may determine that a particular common expense benefits only the Garage Units. C. The costs of insurance may be assessed in proportion to value, risk or coverage, and the costs of utilities may be assessed in proportion to usage. D. Reasonable attorneys fees and other costs incurred by the Association in connection with (i) the collection of assessments and (ii) the enforcement of the Declaration, bylaws, MCIOA, or the Rules and Regulations, against an Owner or occupant or their guests, maybe assessed against the Owner's Unit. E. Fees, charges, late charges, fines and interest may be assessed as provided in Section 51513.3- 116(a) of MCIOA. 5 F. Assessments levied under Section 515B.3-116 ofMCIOA to pay ajudgment 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. G. If any damage to the common elements or another Unit is caused by the act or omission of any Owner or Occupant, or their invitees, the Association may assess the costs of repairing the damage exclusively against the Owner's Unit to the extent not covered by insurance. H. If any installment of an assessment becomes more than 30 days past due, then the AssociatiQn may, upon 10 days written notice of the Owner, declare the entire amount of the assessment immediately due and payable in full.. I. Expenses' relating to the maintenance, repair, replacement or operation of all or any part or component of a common element or limited common element may be assessed against Units on the basis of use, which may either be measured or reasonably estimated. If common expense liabilities are reallocated for any purpose authorized by MCIOA, common expense assessments and any installment thereof not yet due shall be recalculated in accordance with the reallocated common expense liabilities. K. Assessments described in Subsections 9.01.A -J shall not be considered special assessments as described in Section 10.03. 9.02 Votin . Each Residential Unit is hereby allocated one vote in the Association. Garage Units are nonvoting. 9.03 Formula. The percentage allocation of interests specified in Section 9.01 above is based on the relative floor area of a Unit compared to the total area of all Units 9.04 Reasonable Estimates. Whenever an expense that is allocable to Units to which a limited common element is assigned under Section 9.0l.A, to certain benefited Units under Section 9.01.$, or to certain Units on the basis of use of utilities under Section 9.0l .C, is not separately metered or cannot otherwise be precisely measured, the Association may make a reasonable estimate thereof, and based on such estimate, may adopt for convenience a simple flat fee per each such Unit. 10.00 ASSESSMENTS 10.01 General Provisions. Section 51513.3 -115 ofMCIOA specifies how assessments are assessed and collected. Section 515B.3 -116 specifies how the lien for assessments is created and enforced, and to which interests it is either superior or subordinate. The following subsections 10.02 through 10.07 supplement those provisions. C1 10.02 Annual Assessments. Annual Assessments shall be established and levied by the Board. Each annual assessment shall cover all of the anticipated Common Expenses of the Association for that year. Annual assessments shall provide, among other things, for contributions to a separate reserve fund sufficient to (cover the periodic cost of maintenance, repair and replacement of the common elements and those parts of the Units for which the Association is responsible, in accordance with the Association's reserve plan. The plan may assume that a portion of the future costs will be funded by future special assessments. 10.03 Special Assessments. In addition to the annual assessments authorized above, the Board may, by a majority vote of all Directors, levy a special assessment payable over one or several assessment years for the purpose of defraying, in whole or in part, the cost of any unforeseen or unbudgeted common expense, including without limitation the construction, reconstruction, repair or replacement of a capital improvement and including fixtures and personal property related thereto. 10.04 Commencement of Initial Annual Assessments. The annual assessments provided for herein shall commence as to all units not later than 60 days after the conveyance of the first Unit to an Owner other than Declarant or a successor declarant. The first annual assessment shall be adjusted according to the number of months remaining in the calendar year. 10.05 Commencement of Annual Assessments. By November 30 of each year the Board shall fix the amount of annual assessments against each Unit for the following fiscal year and shall send written notice thereof to each Owner. The due date for payment of annual assessments shall be as set by the Board. At the time the Board fixes the amount of annual assessments it shall adopt a budget for the following fiscal year and cause a copy of such budget in reasonable detail to be furnished to each Owner. 10.06 Lien Priority; Foreclosure. A lien under this Section 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 a first mortgage on a unit is foreclosed, the first mortgage was recorded on or after June 1, 1994, and no Owner redeems during the Owner's period of redemption provided by Chapters 580, 581, and 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 Section 51513.3-115(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. 10.07 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 satisfied. 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 7 assessments payable in the Association's current fiscal year, which statement shall be binding on the Association, seller and buyer. 11.00 ENCROACHMENTS 11.01 Physical Boundaries. The existing physical boundaries of a Unit, or of a Unit reconstructed in substantial accordancewith the description contained in the original Declaration, are its legal boundaries, regardless of vertical or lateral movement of the building or minor variances due to shifting or settling. 12.00 ASSOCIATION MAINTENANCE RESPONSIBILITY 12.01 Common Elements. The Association shall be responsible for the maintenance and repair of the common elements, including limited common elements, and common easement rights, the expense of which shall be allocated as described in MCIOA and this Declaration, except that each. Owner shall be responsible for replacement of broken glass in windows and doors of such Owner's Unit, and except that the Board may permit Owners to undertake directly certain specific maintenance and repair of limited common elements, subject to the oversight of the Association. The Association shall have the exclusive right to manage, maintain and alter the common elements. 12.02 Services. The Association may obtain and pay for the services of any persons or entities, to manage its affairs, or any part thereof, to the extent it deems advisable, as well as such other personnel as the Association shall determine to be necessary or desirable for the proper operation of the Real Estate, whethe such personnel are furnished or employed directly by the Association or by it any person or entity wwhom or which it contracts. The Association may obtain and pay for legal and accounting services necessary or desirable in connection with the operation of the Real Estate or the enforcement of d Declaration. The Association may arrange with others to furnish trash collection and other common services to each Unit. 12.03 Personal Property and Real Estate for Common Use. The Association may acquire and hold for the use and benefit of all of the Owners tangible and intangible personal property and real estate and may dispose of the same by sale or otherwise. Such beneficial interest shall not be transferable except with the transfer of title to a Unit, provided that an Owner may delegate the right of enjoyment of such property to Occupants of the Unit. A transfer of title to a Unit shall transfer to the transferee ownership of the transferor's beneficial interest in such property in accordance with the purpose for which it is intended, without hindering or encroaching upon the lawful rights of other Owners. The transfer of title to a Unit under foreclosure shall entitle the purchaser to the beneficial interest in such property associated with the foreclosed Unit. 13.00 OWNERS' MAINTENANCE 13.01 Upkeep and Maintenance. Each owner shall be responsible for the upkeep and maintenance of the owner's Unit and (with the permission of the Board) assigned limited common elements. The 9 Board may amend any part of the Rules and Regulations from time -to -time, including this allocation of maintenance responsibility. 13.02 Negligence and Misuse. If maintenance, repairs or replacement to the common elements or to the Unit of another owner are necessitated by the negligence, misuse or neglect of a Unit Owner, the expense thereof shall be charged to such offending Unit Owner. 13.03 Internal Installations. All maintenance and repair of internal installations ofthe Unit, which are not Common Elements, shall be at the Unit Owner's expense. 14.00 INSURANCE, CASUALTY AND EMINENT DOMAIN 14.01 Association's Policies. Section 515B.3 -113 of MCIOA requires the Association to maintain casualty insurance coverage on the Common Elements and Units. The same section also requires general liability coverage, authorizes the Association to carry any other insurance it considers appropriate, specifies minimum notice from an insurer prior to cancellation, specifies other provisions for such insurance, requires the Association or an insurance trustee to adjust all losses, and describes the Association's duty with respect to repair or rebuilding after casualty to Common Elements or Units. I"ne provisions of MCIOA described in this paragraph may not be vaned or waived, but are hereby su pp lemented, as follows: A. The Association shall carry workers compensation insurance whenever it has eligible employees. B. The Association may carry fidelity insurance and shall do so whenever required by a holder, insurer or guarantor of a mortgage. C. The Association may enter into binding agreements with one or more holders, insurers or guarantors of mortgages obligating the Association to keep specified coverages in effect for specified periods and to notify a holder, insurer or guarantor of any changes to coverage. D. The Association shall maintain policy limits which are consistent with those maintained by similar properties within the Minneapolis -St. Paul metropolitan area. 14.02 Owners' Individual Policies. Each Unit Owner must carry an individual Condominium Unit All Risk Homeowners Policy (currently designated as an HO -6 policy in the case of residential properties) covering liability for accidents occurring within the Unit, and insuring the value of personal property and real property within the Unit which is not covered by the Association's comprehensive blanket policy. Personal property and attached items in a Unit, such as carpeting and other types of floor covering (such as stone, ceramic tile or hardwood flooring), wallcoverings, light fixtures, plumbing fixtures, window treatments, and all types of built -in appliances, cabinets and millwork are not covered by the Association's blanket policy. The extent of the property included or excluded from the Association's blanket policy may be clarified by the Board from time -to -time by E amendments to the Rules and Regulations, and each Unit Owner is responsible for conforming his/her individual coverage to such changes. All such policies shall contain waivers of subrogation and provide that the liability of the carriers issuing insurance obtained by the Association shall not be affected or diminished by reason of any such individual insurance carried by any Owner. 14.03 Rebuilding after Casual !y. If the Trustee or a mortgagee undertakes the reconstruction or remodeling of a Unit after casualty, the same need be restored only to substantially the same condition as the Unit was as of the recording of this Declaration. 14.04 Eminent Domain. As in the case of physical damage or destruction, the Association shall represent all Unit Owners with respect to any condemnation involving all or any part of the CIC, including the condemnation proceedings, and any negotiations, settlements, or agreements as part of the condemnation or in lieu of the condemnation, and all proceeds shall be payable in the first instance to the Association or an insurance trustee, for the benefit of Owners and mortgage holders. 14.05 Deductibles. The Association may, in the case of a claim under the Association's blanket policy for damage to a Unit, (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 Owners of the Units affected to pay the deductible amount directly. 15.00 ARCHITECTURAL RESTRICTIONS 15.01 Association Control. The Association shall have the exclusive control of the Common Elements (including limited common elements) and no change shall be made to the Common Elements or to the exterior of any Unit, including changes in appearance or color, except by the written authorization of the Association. Without limiting the scope of the foregoing language, the Association's control includes the color and appearance of windows and window treatments as seen from outside the Unit. 15.02 Safety, Noise and Vibrations. The Association shall have the right to regulate or prohibit appliances and installations within a Unit that may have an effect on safety, which may affect the functioning of common mechanical or electrical components, or which may cause noise or vibration detectable from outside the Unit. 15.03 Wiring or Penetrations. No exterior wiring shall be installed nor shall there be penetrations of the walls, window frames or roofs of the exterior of the building except as authorized in writing by the Board. 15.04 Antennae. No exterior television, radio, satellite, or microwave antenna of any sort shall be erected or maintained upon the common elements or the exterior of a Unit without the prior written approval of the Board. The Board will permit antennae one meter or less in diameter (and may permit other antennae, in its discretion) to be erected on the roof of the building if the installation meets the Association's design and appearance specifications, or in the absence of such specifications, good practice for a safe and weatherproof installation. Each Unit shall have an 10 easement for electric cable connecting its rooftop antenna with the Unit by a reasonable route, through common elements. However, any requirements with respect to satellite receiving antennas one meter or less in diameter shall be reasonable, shall not impair or degrade reception and shall conform to the Federal Telecommunications Act of 1996. The City may also have requirements. 16.00 RENTALS 16.01 Proportion of Leased Units. In order to protect the value and desirability of Units in this CIC, it is important to maintain a high level of owner - occupancy of Units. The target for this CIC is that not more than ten percent (10 %) of the Units be leased to and occupied by non - owners at any time. Therefore, any Owner desiring to rent a Unit must first give written notice of the intent to the Board or its managing agent. If it appears to the Board that rental of the Unit would not cause the proportion of rented Units to exceed the ten percent target, the Board shall give the Owner written consent to enter into a lease for the Unit within the following ninety (90) days, but if it appears otherwise, the Board may in its discretion give the Owner written notice prohibiting the rental of such Unit at that time. If the Board fails to respond in writing to the request within twenty days, the applicant will be deemed to be permitted to enter into a lease within the following ninety (90) days. Exemptions may be granted for specified limited time periods by the Board, in its discretion, for hardship, such as settling of an estate or one of the Occupants accepting employment outside the Twin Cities metropolitan area. A lease from a family trust, corporation or partnership to the beneficiaries or controlling interests of such trust, corporation or partnership is exempt from the requirements of this Section 16.01. 16.02 Governing Restrictions. Any lease of a Unit must be approved by the Board prior to occupancy by the tenant. The approval may include a background check on the proposed occupants. The approval process shall be conducted in a commercially reasonable and prompt manner, and shall not be used to inhibit or discourage ownership of Units by non- resident investors. All leases shall be in writing, and shall provide that they are subordinate and subject to the provisions of this Declaration and the Rules, and that a failure of the tenant to comply with the terms of such documents shall be a default under the lease enforceable by the Association as well as by the landlord. No Unit shall be leased for transient or hotel purposes. The Board may adopt such reasonable Rules as may be necessary to implement procedures, consistent with this Section. 17.00 GENERAL RESTRICTIONS 17.01 Pets. No pets other than common household pets shall be permitted in Units, provided that no more than (a) two domestic dogs (neither exceeding 20 pounds in weight), (b) two domestic cats or (c) one dog (not exceeding 20 pounds in weight) and one cat shall be permitted in a Unit at any time, except that this restriction does not apply to a guide dog or assist dog used by a blind, deaf or handicapped person or in training by' a resident. The Board may adopt reasonable regulations governing the behavior and wastes of animals, including, after reasonable notice and period to remedy, requiring the permanent removal of a pet for repeated barking, threatening manner or other disturbances to Unit owners, residents and guests. Since the common spaces are 11 for the enjoyment of all Owners and Occupants, the Board may prohibit or restrict the access of dogs and cats to the common lawn, and may limit the use of the common passages by dogs and cats to actual access to and from Units. 17.02 Re ulations. The Board of Directors may from time -to -time adopt, promulgate and publish rules of conduct; regulations and operating policies reasonably relating to the enjoyment of the CIC by Unit Owners and Occupants, and not inconsistent with this Declaration. 17.03 No Additional Units. Neither the Declarant nor any other Owner or person may subdivide or convert a Unit into Units, Common Elements and limited common elements under the provisions of Section 51513.2 -112 of the Act. 17.04 Time Shares. Time shares, as defined in MCIOA, are not permitted in this CIC. 18.00 FIRST MORTGAGEES 18.01 Precedence. The provisions of this Article take precedence over any other conflicting provisions of this Declaration. 18.02 Notice of Action. Any mortgagee and any insurer or guarantor of a first mortgage on a Unit who has advised the Association in writing of its name and address and the address of the Unit covered by such mortgage, and in said writing has requested the Association to notify it of any ofthe following, will be entitled to timely written notice of: A. Any condemnation loss or any casualty loss which affects a material portion of the project or any Unit on which there is a first mortgage held, insured, or guaranteed by such mortgage holder or insurer or guarantor, as applicable; B. Any delinquency in the payment of assessments or charges owed, or any other default in the performance of any obligation under the Declaration, Bylaws, or Articles of Incorporation by an Owner of a Unit subject to a first mortgage held, insured, or guaranteed by such holder or insurer or guarantor, which remains uncured for a period of 60 days; C. Any lapse, cancellation or material modification of any insurance policy maintained by the Association; and D. Any proposed action which would require the consent of a specified percentage of mortgage holders as specified below. 18.03 Examination of Books and Records. First mortgagees and holders, insurers and guarantors of first mortgages shall have the right to examine the books and records of the Association, as set forth more fully in the Bylaws. 12 l 8.04 Designation of Representative. Any holder of a first mortgage on a Unit may designate a representative to attend meetings of members. 19.00 SPECIAL DECLARANT RIGHTS 19.01 Special Declarant Rights. Declarant hereby reserves the following rights (referred to in the Act as Special Declarant Rights) for its benefit: A. the right to enter the common elements and complete improvements indicated on the CIC Plat; B. the right to create Units by this Declaration; C. the right to maintain sales offices, management offices, signs advertising the CIC, and models, provided that no more than one combined sales and management office and no more than two model units will be maintained at any one time; D. the right to use easements through the common elements for the purpose of making improvements within the CIC; and E. the right to appoint or remove any officer or director of the Association during the period of eclarant control, which shall expire on the earliest of the following events: 1. surrender of the right of control by the Declarant; 2. 60 days after the conveyance of 75 % of the Units to Owners other than Declarant; and 3. three years from the first conveyance of a Unit to an Owner other than Declarant. 20.00 AMENDMENTS 20.01 Statutory Requirements. MCIOA specifies the requirements for amending the Declaration. In addition to those requirements: 20.02 Declarant's Joinder. In addition to the other requirements for amendment of this Declaration and the Bylaws contained herein, the written joinder and consent of the Declarant shall be required for any amendment of either this Declaration or the Bylaws which shall abolish, diminish or restrict Declarant "s rights hereunder to complete improvements, to maintain sales and management offices and models or to maintain signs and advertise the project, until the last conveyance of a Unit to an Owner other than Declarant. This right may be waived in whole or part at any time by recording a written waiver executed and acknowledged by Declarant. 13 20.03 Mortgagee Approval. In addition to all other requirements set forth herein, and except when a higher percentage is required by law or this Declaration, amendments to this Declaration of a material nature must be agreed to by Unit Owners who represent at least 75 % of the total allocated votes in the Association and by Eligible Mortgage Holders who represent at least 51 % of the votes ascribed to Units that are subject to mortgages held by such mortgage holders. A change to any of the provisions governing the following matters would be considered material: A. voting rights; 13. increases in assessments that raise the previously assessed amount by more than 25 %, assessment liens, or the priority of assessment liens; C. reductions in reserves for maintenance, repair, and replacement of common elements; D. responsibility for maintenance and repairs; E. reallocation of interests in the general or limited common elements, or rights to their use; F. redefinition f any Unit boundaries; G. convertibility of Units into common elements or vice versa; H. expansion o contraction of the project, or the addition, annexation, or withdrawal of property to r from the project; I. hazard or fidelity insurance requirements; J. imposition of any restrictions on the leasing of Units; K. imposition of any restrictions on a Unit Owner's right to sell or transfer its Unit; L. a decision by the Association to establish self management if professional management had been required previously by the holder of a first mortgage on a unit; M. restoration or repair of the project (after damage or partial condemnation) in a manner other than that specified in the Declaration; or N, any provisions that expressly benefit mortgage holders, insurers, or guarantors. 20.04 Implied Approval. The implied approval of an Eligible Mortgage Holder may be assumed when an Eligible Mortgage Holder fails to submit a response to an written_ proposal for an amendment within 30 days after it receives proper notice of the proposal, provided the 14 notice was delivered by certified or registered mail, with a "return receipt" requested. 20.05 Inhibition of Rental§. In addition to any other requirement of MCIOA, any amendment that prohibits or imposes further restrictions on the rental of Units shall require the affirmative vote or written agreement of Owners of Units to which at least 90% of the votes in the Association are allocated fojr adoption, and may not, in any event, apply to persons or entities who are Owners as of the date of adoption of such amendment. 21.00 WORKING CAPITAL FUND 21.01 Establishment, The Declarant shall establish an Association working capital fund intended to meet unforeseen expenditures or to purchase any additional equipment or services. At the time control of the Association is transferred to Owners, the working capital fund shall be transferred to the Association for deposit in a segregated fund. The fund shall be initially established at an amount equal to two months' assessments on all Units. The amount attributable to a particular Unit will be collected and deposited in a fund at the time of closing of Declarant's sale of the Unit, provided that when control of the pro ect is transferred to Owners, the amounts attributable to all Units which have not then closed shall b collected. A contribution from each Unit to the working capital fund is measured by two months' sessments, but amounts paid into the fund are not advance payments of regular assessments. 21.02 Declarant's AccounAing. This working capital fund is the property of the Association, and is not to be confused with anyiearnest money agreed upon between the Declarant and buyers of Units. The Declarant may not use the Association working capital fund to defray any of its expenses, reserve contributions or cor struction costs or to make up any budget deficits while it is in control of the Association. When unsold Units are sold, however, the Declarant may reimburse itself from funds collected at a Unit closing for money it paid the Association for that Unit's share of the working capital fund. 22.00 SAFETY AND HEALTH 22.01 Hazardous Substanges, Devices and Pests. Owners must maintain their Units and limited common elements free of hazardous substances, faulty or dangerous devices and equipment, vermin, cockroaches, pests and debris which may pose a threat to the health or safety of Occupants of other Units. Owners must perform promptly all cleaning, maintenance and repair work within their Unit, which, if omitted, would affect another Unit or Units, being expressly responsible for the damages and liabilities that failure to do so may engender. Without limiting the generality of the foregoing, the Association may require an Owner to remove offending items, or to use a professional exterminator, and upon failure of the owner so to do, Association after reasonable notice may enter the unit with a professional exterminator or other appropriate contractor and take corrective action, charging the Owner of such Unit for the reasonable cost thereof 22.02 Impairment of Structure or Easement. An Owner shall do no act nor any work that will impair the structural soundness or integrity of the building, or impair any easement or other property 15 right or interest appurtenant to the Real Estate, nor do any act nor allow any condition to exist which will adversely affect the common elements, the other Units, or their Owners. 23.00 MISCELLANEOUS 23.01 Right to Cure. In tie event that any Owner violates any covenant or fails to perform any condition contained in this Declaration, the Association may perform the act, remove the defect or correct the violation upon thirty (30) days written notice to the owner. If the Association so acts on behalf of an Owner, the Association may levy an assessment against the Owner's Unit for the cost of the performance or correction. 23.02 Association Acts through Board. The power and authority of the Association as provided in the applicable Statutes, the Declaration, Bylaws, and Rules and Regulations shall be vested in a Board of Directors elected by the Owners in accordance with the Bylaws of the Association. The Association shall act through the Board of Directors and the officers elected by the Board; accordingly, all references in this Declaration and the Bylaws to action or consent by the Association shall mean the Board of Dir ctors acting for the Association, unless action by the vote of the Owners, members or mortgagees is xpressly required by the Declaration or Bylaws. 23.03 Notices. Any notic required to be sent to any member of the Association (or Owner) under the provisions of this Decl ation shall be deemed to have been properly sent when mailed, postage prepaid, to the last known a dress of such member appearing on the records of the Association at the time of such mailing. In the case of multiple Owners of a Unit, notice to any one of such Owners shall be deemed notice to all. 23.04 Captions. The headings in this Declaration are intended for convenience only and shall not be given any substantive effect. 23.05 Construction. In the event of an apparent conflict between this Declaration and the Bylaws, the provisions of this Declaration shall govern. The use of pronouns such as "his ", "he" and "him" are for literary purposes and mean whenever applicable the plural and female forms. 23.06 Compliance with Ordinance. This CIC is a condominium conversion of an existing residential building located within the City of Minneapolis and is therefore governed by Chapter 250, Minneapolis Code of Ordinances. The Declarant hereby certifies that all conditions required under said Chapter 250 have been complied with. 23.07 Rights of Action. In addition to all other remedies and rights set forth in MCIOA, the Association, and any one or more aggrieved Unit Owners, shall have the right of action against Unit Owners who fail to comply' with the provisions of the Declaration and Bylaws or the decisions of the Association, and one or more Unit Owners shall also have such rights of action against the Association for any failure to comply with or enforce such provisions. W 23.08 Declarant's Rights and Obligations. The Declarant shall enjoy the same rights and shall be deemed to have assumed the same duties with respect to its unsold units in the condominium as any other owner, except as modified or extended by the alternate assessment program and the special declarant rights described in this Declaration. 23.09 Unresolved Disputes. In the event of an unresolved dispute between the Unit Owners, or a split decision by the Association or Directors, and such dispute shall not be resolved within thirty (30) days, then the matter shall be submitted to binding and final arbitration under the provisions of Minnesota Statutes Chapter 572, by application to Hennepin County District Court, which shall appoint a neutral arbitrator. Such arbitration shall be conducted in accordance with the rules and procedures of the American Arbitration Association. IN WITNESS WHEREOF, Declarant has caused this Declaration to be executed as of the day and year recited on the fiist page hereof. Colonial Development of Edina, Inc. By 4+_� Its P&sidd6t STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) I ae f oregoing nsttt e t was acknowledged before me this day of November, 2004, by , the President of Colonial Development of Edina, Inc., a esota corporate on, on behalf of the corporation. i THIS INSTRUMENT DRAFTED BY: N. Walter Graff, Esq. Best & Flanagan LLP 225 South Sixth Street, Suite 4000 Minneapolis, Minnesota 55402 (612) 339 -7121 Notary Public 17 YM1L *JWOfA. CLAUDIA E. NOTERMANN NQTAAY PUBLIC - MINNESOTA '•� My Comm. Exp. Jon. 31, 2005 ��►euduu� a V EXHIBIT A Real Estate The Westerly GO feet of Lot Two (2) and all of Lot Three (3), Block One (1), "Stevens I st Addition to Minneapolis ", Hennepin County, Minnesota. Together with appurtenant easements of record. A -1 4 EXHIBIT B Allocation of Undivided Interests in the Common Elements and of the Common Expenses (See Section 9.01 above) UNIT PERCENTAGE 11 11.16 12 4.50 101 8.03 102 8.01 103 8.03 104 8.01 201 8.03 202 8.01 203 8.03 1.42 204 8.01 GA GE UNIT PERCENTAGE 1 2.21 2 2.21 3 2.45 4 3.41 5 4.22 6 1.42 7 1.42 8 1.42 9 1.42 100.00 008219/90785813347481 i N M _ • 'o GO its 120.62_ _ - -8G - $c - - 25 _ NO2�4 yy 0 m W o ,Q 100 C .z a N 25 I � � 2s 3 F Qi C) N 5 Q. So 122 1 .�' 1 1 80 - _ - + ^60. 1 r 4278218 r � N 1 (167) ; (1 6) 1 (I 5) (164) CIC' NO 1472 1 11 of V 120.62 40 '8 80 OF tl o 129:31 - LOT z ti 4 m ,n m . (173) ==--------- (iry8) - - �- - - -- ' APIPM T© N 134.31 - 134.31 A C DOMINIU � Q�pp M HELI�.lL E Mt . ' '(17 2) ----------------- u . i Q _ i ,. (1751 m: ` N 20 M 0.38CIC NO 713 u,1� (t70)A tr�M� (17U 53 134.31" i do 134.31 25 90.2 ----- 0.2 - - -- -- - - - - - -- 9 I 1 2 0 1... (235) a Q (152) e (151 2y, 105 , 88 -64 4 7.22 Q CONDOMINIUM 1 1 4.7 ,'" 77.95 107.95 16.72 134.31 45.22 75 So 122 v .�' DOC NO m. 80 - _ - + ^60. 7 -.. 140_62 - 589° SI'SQ'� _ ;�: - 7 . 4278218 50. ` (280) 96x85 .. 1 i ' v3�8 8o CIC' NO 1472 0 11 _ o- PART OF tl o 50TH - STREE LOT z i h ' 9vi v 74.79 95.39 -- 15.13' --- - 3 O - 1 1 OF A C DOMINIU � Q�pp M HELI�.lL E of 2 .— - u . i Q _ i ,. (1751 ` N 20 M 0.38CIC NO 713 u,1� m s, 80 53 = 589° 5Q'05,E i do N TS: =- THE ++ENI_EY-� (174 N 4 m 1293E 9 I 1 4 AT EDINA N 3 - , WEST 3) (160) M �. 105 , 88 -64 4 7.22 Q CONDOMINIUM 1 1 4.7 ,'" 77.95 107.95 134.31 (239 -259) m. N . ` Q N 10 1 .o & '- ul O •� f 1'- i I N w Q 134.3! - - -- 1 --- 137_7 � •1.63 /1 "M _.�.. i . :. V V 17V OF 8 (106) O NN (260) F- N89° 54'5-5'W 136.32 • L _ - - 137.65 137.65 • 1 . t (105) (100) R.,90 137.61 _ 137.61 60.x. 50 67 21 107.95 4 e 61) (280) J ANI A c;° A -VE "OU m 73 _ o- (104) tl o i h ' 9vi v 74.79 95.39 -- 15.13' --- - . 22.88 O - 63 - -- --- 107.95 107. 95 - -- 50 62) -- - - i 135. ` N 20 M (123) m M N m s, 53 0 S O (103) N 4 m (281) (102) 3) - 105 _ 105 4 7.22 4.7 ,'" 77.95 107.95 -