Loading...
HomeMy WebLinkAboutEDA March 6, 2002 , " ,I CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N,W. . ANDOVER, MINNESOTA 55304. (763) 755.5100 FAX (763) 755.8923. WWW,CLANDOVER.MN.US ECONOMIC DEVELOPMENT AUTHORITY MEETING WEDNESDAY, MARCH 6, 2002 - 5:45 P.M. CONFERENCE A 1. CALL TO ORDER 2. UNITED PROPERTIES - OPTIONS AGREEMENT, 3. ENVIRONMENTAL INDEMNIFICATION , AGREEMENT - Hans Hagen Homes, , j 4. DISCUSS OFF-SALE LIQUOR STORE RESTRICTIONS 5. WDE SITE - VERBAL UPDATE 6. GREAT RIVER ENERGY PROPER TIES - VERBAL UPDATE 7. COMMERCIAL BOULEV ARD - RENAMING (If Time Permits) 8. SCHEDULE NEXT MEETING 9. ADJOURN j (JJ / CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755.5100 FAX (763) 755-8923. WWW.cI.ANDOVER.MN.US TO: EDA President and Commissioners FROM: John Erar, City Administrator SUBJECT: Andover Station - Revise Options Agreement Providing for Additional Land Sale DATE: March 6, 2002 INTRODUCTION During the course of staff review of the commercial site plan submitted by United Properties for Andover Station, it was discovered that additional land is needed by the developer to allow for the construction of Quinn Street. Under the terms and conditions of the development agreement, Section 3.3, United Properties is required to construct a private street i.e. Quinn Street to allow for internal access to the commercial site. / DISCUSSION Additional property required by United Properties has been surveyed and amounts to approximately .94 acres or 40,946.4 square feet. Staff has negotiated a preliminary agreement with United Properties calling for the sale of this additional square footage at a price of$3,20 per square foot-similar to the original and optioned land sales terms, United Properties has requested that this additional land sale for construction of the private road be handled separately by revising the existing option agreement. The City Attorney has revised the Options Agreement in response to this accommodation. The purchase price of this additional property will be due and payable regardless of whether United Properties exercises the full option on the remaining land. BUDGET IMP ACT The additional land sale will generate approximately $131,028.48 for the City's Economic Development Authority, RECOMMENDATION I Approve the revised options agreement as attached allowing United Properties to purchase \ additional property for the construction of Quinn Street. Minor, non-substantive additions to the agreement will be made once the necessary information has been reviewed and received by the City Attorney. Respectfully submitted, Attachments , / . - EXHIBIT A-I , Sketch of Commercial Development Property ?~ I z ).J;;y ! w IL ~ 1 I w ':L ~'~I I ' ':L ( w J , l RED OAKS l-1ANO~ bTH ADDITlol I l___________ f- I!l ------L____I z \f) - - - -;~"~~€:2:~;c.t-l => f- l C) z c.-..'- "',;. "'1 w iii ....' '-',: [lC <( => ~ I~ C) )- o l:ii I!l D ~ z ZI'" ~ <( '" ~. <( I [lC D )- J D_ C) --' \) GOMMERGIALBOJLEV ARD D -, 1------- \, [lC F-==--- I <( I <( I I Z I C) \f) COMMERCIAL PARK I I I f- ~---- D <{ I I W I [lC LOT A LOT 8 Z RETAIL TOTALS RETAIL TOTALS I <( 1lCI:1OO':#1tO...1l..1OT.... "''''''''lII'''E!'''-..i:>IIl.6 I \) OO/XJO!JI'.6'tO<.O\1' :a.lOO~'~""~ => ,t/OOY'_ .L.--- C) 2~!~ --'- !6lXJQ!#'UoGI<I - -- - )- "4~~ST1oU.'~1ltP lO.....'lOO6'r"'l..Ul~Q.Mo!tl ~'lI'0"'lV"" _!II'<1f'llelN. HIDDEN CREEK EAST FIFTH ADDITION ~ 1:a~"~1-...n '~"..~',IoL.l..So~tlW &2"~'T....u.~~ PARKINS DI!"':::NSIONS ~'-o"IO'-<T"-""" ,r,<<U ""-o''''''''''Nt...~...g.... 1IO'C'''AAJ:lf<6Doto.,...ln\t I (;C~~~.~D SI'l"E PLAN EEl ~ I I -~ I I I I I \ J Ooc# 1403922\4 A-l-l . EXHIBIT C OPTION TO PURCHASE THIS OPTION is granted this _ day of , 2002, by the Andover Economic Development Authority, a body corporate and politic under the laws of Minnesota, (hereinafter called "Optionor"), to United Properties Investment, LLC, (hereinafter "Optionee"). WHEREAS, Optionor is the legal owner of certain real property situated in the County of Anoka, State of Minnesota, and more particularly and specifically described on Exhibit A. (hereinafter called "Option Premises"); and WHEREAS, Optionee is desirous of obtaining the exclusive right, without becoming so obligated, to purchase the Option Premises at an agreed consideration, , and Optionor is willing to grant such right on certain terms and conditions as hereinafter set forth. NOW, THEREFORE, in consideration of the covenants and agreements herein contained, and One hundred thirty-one thousand twenty-eiqht dollars and 48 cents ($131,028.48) Dollars paid by the Optionee to Optionor, which amount shall be applied to the purchase price described hereunder in the event this Option is exercised, Optionor hereby grants to Optionee an irrevocable Option to purchase the Option Premises on the following terms: / C-l SECTION 1. PURCHASE PRICE AND OPTION PREMISES. 1.1 In the event the Option hereby granted is exercised, the purchase price to be paid by Optionee to Optionor shall be Three and 20/100 Dollars ($3.20) per square foot and shall be paid in cash to the Optionor at the date of closing. Payment of the purchase price upon the exercise of the Option shall entitle Optionee to a Warranty Deed for all right, title and interest of Optionor in and to the Option Premises, free and clear of all mortgages, liens and encumbrances, except as created hereunder, and except those matters set forth in Paragraphs A through H of Section 4 of Exhibit B to the Development Agreement. SECTION 2. OPTION TERM AND EXERCISE OF OPTION. / 2.1 Unless extended, the term of the Option granted herein is for a period commencing on execution thereof and continuing until 4:00 p.m., March 15, 2003, at the expiration of which time the Option shall terminate, and unless it is exercised prior thereto, Optionee shall have no further rights in and to the Option Premises. 2.2 The Option may be exercised by Optionee at any time during its term by providing notice of the exercise thereof in writing in the manner provided for notices in Section 10 hereof. 2.3 In the event this Option terminates, Optionee shall forfeit any right to the return of any sums paid to Optionor and Optionee agrees at his expense to execute, acknowledge, and deliver to Optionor, within twenty (20) days C-2 after written request, release of this Option or such other document as may be required by any title company, or title examiner, to remove the cloud of this Option from the Option Premises. SECTION 3. TITLE EXAMINATION. 3.1 Optionor, as soon as possible after exercise of this Option by Optionee, shall deliver to Optionee an abstract of title, certified to a current date, including all appropriate searches, including without limitation, state and federal tax lien searches, judgment searches in the district and county court in the county in which the Option Premises is located, current and delinquent taxes, special assessments, and delinquent utility bills, as such searches are made by the abstracter, showing marketable title to the Option Premises in Optionor. Optionee shall have twenty (20) days from and after , receipt of the abstract of title in which to examine the same and notify Optionor in writing of any objections thereto. In the event no objections are made within said twenty (20) days period, such objections shall be deemed waived. If any objections are made, Optionor, in good faith, shall use all diligence and make all reasonable efforts to promptly cure such objections and make title marketable and shall be allowed one-hundred-twenty (120) days after receipt of notice thereof to do so. SECTION 4. TITLE DEFECTS. 4.1 In the event, following the exercise of this Option, Optionor is unable to close on the date designated for closing in Section 7 hereof, because of the existence of title defects or objections which have not been removed to C-3 the satisfaction of counsel for Optionee or a title insurance company licensed to do business in the State of Minnesota, Optionee may elect anyone of the following procedures: (a) Accepting the Option Premises subject to any title defects or objections and closing shall be held within ten (10) days after Optionee gives written notice of such election. (b) Extending closing for such time as may be mutually agreeable to the parties to afford Optionor time for curing said defects or objections up to sixty (6) days or; (c) Terminating this Agreement. If Optionee makes the election set forth in Section 4.1 (b) above, at the expiration of said sixty (60) days extension, if the objections to title or title . . , defects have not been removed or cured to the satisfaction of counsel for the Optionee or such title insurance company described above, Optionee may then elect to terminate this Agreement, or waive such defect. SECTION 5. REPRESENTATIONS AND WARRANTIES. 5.1 Optionor represents and warrants to Optionee as follows: (a) Optionor is, or will be, lawfully seized in fee simple of the Option Premises at the time of closing; (b) Optionor will defend title and quiet enjoyment of the Option Premises against the lawful claims and demands of all persons; \ -' C-4 (c) Optionor knows of no unrecorded agreements not described herein / affecting any of the Option Premises; (d) Optionor will not commit waste or materially damage the Option Premises. SECTION 6. CONDITIONS PRECEDENT. 6.1 Notwithstanding anything stated herein to the contrary, Optionee's obligation to perform at the closing shall, at Optionee's election, be conditioned upon the satisfaction of each of the following conditions precedent: (a) Optionor shall have performed and complied with all agreements and conditions required by this Option to be performed and complied with prior to J or at the closing, and shall certify in such detail as Optionee may specify to the foregoing effect; (b) At the closing, there shall have been no material damage to, or destruction of, the Option Premises; (c) All legal matters in connection with the performance of Optionor of its obligations in this Option shall be reasonably satisfactory to counsel for Optionee, or such title insurance company described in Section 4.1. 6.2 Notwithstanding anything stated herein to the contrary, Optionor's obligation to perform at the closing shall, at Optionor's election, be conditioned upon the satisfaction of each of the following conditions precedent: / c-s (a) Optionee shall perform and comply with all agreements and conditions , required by this Option to be performed and complied with prior to or at closing, and shall certify in such detail as Optionor may specify the foregoing effect; and (b) All legal matters in connection with the performance of Optionee of its obligations under this Option shall be reasonably satisfactory to counsel for Optionor, or such title insurance company described in Section 4.1. SECTION 7. CLOSING. 7.1 Closing hereunder shall take place on one of the following applicable closing dates: (a) Thirty (30) days after Optionor has delivered the abstract of title to Optionee for examination pursuant to Section 3 hereof, provided no , / objections have been made to title and there are no title defects; or (b) Ten (10) days after the expiration of the one-hundred-twenty (120) day period permitted for the removal of title objections and title defects as provided in Section 3 hereof, provided, however, that all title objections and title defects have been removed to the satisfaction of counsel for the Optionee, or such title insurance company described in Section 4.1. SECTION 8. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. In the event this Option is exercised, real estate taxes due and payable in the year of closing shall be pro-rated between the Optionor and Optionee on a calendar year basis to the actual date of closing. / C-6 Optionor shall pay on the date of closing all installments of special " ; assessments certified for payment with the real estate taxes due and payable in the year of closing. Optionor shall pay on Date of Closing all other special assessments levied or pending as of the date hereof. Optionor shall pay on the Date of Closing any deferred real estate taxes or special assessments or deferred connection charges, payment of which is required as a result of the closing of the sale. Optionee shall pay real estate taxes due and payable in the year following closing and thereafter and any unpaid special assessments payable therewith and thereafter, the payment of which is not otherwise provided herein. Optionor makes no representation concerning the amount of future real I estate taxes or of future special assessments. SECTION 9. POSSESSION. Possession of the Option Premises to be conveyed hereunder shall be given and the risk of loss and damage thereto shall pass at the closing, and pending closing shall be borne by Optionor. SECTION 10. NOTICES. 10.1 All notices, requests, demands, elections, and other communications required or permitted by this Option Agreement shall be in writing and shall be deemed to have been given at the time when mailed in any United States Post Office or Branch United States Post Office, registered or certified mail, J with return receipt requested, postage prepaid, to the addresses set forth C-7 below, which addresses may be amended in writing from time to time, in the / manner herein provided for notices: Notice as to Optionor: Executive Director Andover Economic Development Authority 1685 Crosstown Boulevard NW Andover, Minnesota 55304 Notice as to Optionee: United Properties Investment, LLC 3500 West 80th Street Suite 200 Bloomington, Minnesota 55431 Attn: Frank J. Datke and Bruce Carlson SECTION 11. ENTIRE AGREEMENT, MODIFICATION AND WAIVER. This Agreement constitutes the entire Agreement between the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements, understanding, negotiations and discussions, whether oral or written, of the parties; there are no warranties, representations or agreements among the parties in connection with the subject matter hereof, except as set forth or referred to herein. No supplement, modification or waiver to this Agreement or any provisions shall be binding unless executed in writing by the parties to be bound. No waiver of any of the provisions of this Agreement shall constitute a waiver of any other provisions, nor shall such waiver constitute a continuing waiver unless otherwise expressly provided. SECTION 12. ASSIGNMENT; RECORDING 12.1 All representations, warranties, covenants and conditions made pursuant to this Agreement, and all agreements made by the parties pursuant to this Agreement shall survive the consummation of the transaction or J C-B transactions contemplated by this Agreement, and all the representations and / warranties made in any document delivered in connection herewith shall survive the delivery of the deed and shall not be merged therein, any rule of law to the contrary notwithstanding. IN WITNESS WHEREOF, the parties have duly executed this Option Agreement the day and year first above written. ANDOVER ECONOMIC DEVELOPMENT UNITED PROPERTIES INVESTMENT, AUTHORITY LLC By: By: Michael R. Gamache Its: President By: By: John Erar Its: Executive Director STATE OF MINNESOTA ss COUNTY OF ANOKA The foregoing instrument was acknowledged before me this _ day of , 2002 by Michael R. Gamache and John Erar, the President and Executive Director of the Andover Economic Development Authority, a body corporate and politic under the laws of Minnesota, on behalf of the authority. Notary Public J C-9 STATE OF MINNESOTA , , ss COUNTY OF The foregoing instrument was acknowledged before me this _ day of , 2002 by and , the and of United Properties Investment LLC, a limited liability company under the laws of Minnesota, on behalf of the company. Notary Public , / C-1O (J J CITY OF ANDOVER 1685 CROSSTOWN BOULEY ARD N.W. . ANDOYER, MINNESOTA 55304 . (763) 755.5100 FAX (763) 755.8923. WWW.CLANDOYER.MN.US TO: EDA President and Commissioners FROM: John Erar, Executive Director SUBJECT: Environmental Undertaking Agreement/Hans Hagen Homes Inc. DATE: March 6, 2002 INTRODUCTION My office has been notified that Hans Hagen Homes Inc. is requesting the approval of an environmental undertaking agreement that would effectively indemnify the developer from any business loss during construction should contaminated soils be discovered, as well as mitigate their liability resulting from future potential residential claims arising from the soils correction activities that occurred on the Andover Station site. The provisions provided by this prospective / agreement would reinforce existing requirements that the EDA would cooperate in the event contamination is encountered in the course of excavation and construction and that any costs associated with remediation are borne by the City, DISCUSSION In discussions with Mr. Hagen, staff had previously indicated that the City would be willing to indemnify the developer to a certain degree given the history of soil corrections work on the site. A review of site clean-up activities indicates that the City has received an MPCA Commissioner's Certificate of Completion of Response Actions under the Land Recycling Act of 1992, This certificate also provides that the City is qualified to obtain protection from liability provided by the Land Recycling Action of 1992. Attached, please find information regarding the history of site clean-up activities that have taken place in order to receive the aforementioned certificate, To this point, the developer is requesting indemnification from any liability associated with the site work relative to project development and residential occupancy, Mr. Hagen has indicated that without this agreement he may be unwilling to continue forward with the residential development of the site, City Attorney Bill Hawkins has reviewed the agreement and is awaiting responses from the developer's attorney, but has indicated no particular objection to the developer's request given the site's history as a federal superfund site and the City's completion of the MPCA's Voluntary Investigation and Cleanup program (VIC) requirements, J RECOMMENDATION Authorize the Executive Director and City Attorney to negotiate an acceptable Environmental Undertaking Agreement between the City of Andover Economic Development Authority and United Properties on the Andover Station site. A copy of the proposed agreement is attached, but is subject to additional revisions as deemed legally appropriate by the City Attorney. Re.POC~nlltte~ ;;& { " tErM Attachments Cc: Bill Hawkins, City Attorney / IDRAFT DRAFT DRAF11 ENVIRONMENTAL UNDERTAKING AGREEMENT , J (Andover Economic Development Authority - United Properties Investment LLC) THIS AGREEMENT is made and entered into as of the _ day of February, 2002 by and between ANDOVER ECONOMIC DEVELOPMENT AUTHORITY (the "EDA"), a body corporate and politic under the laws ofthe State of Minnesota, and UNITED PROPERTIES INVESTMENT LLC, a Minnesota limited liability company (the "Company"), with its principal offices at 3500 West 80th Street, Suite 200, Minneapolis, MN 55431. PREMISES: WHEREAS, EDA and Company entered into a Development Agreement on September 25,2001 (the "Development Agreement"); and WHEREAS, the Development Property (therein defined) is wholly or partially located within an area known as the South Andover Redevelopment Site (formerly the Best Oil Parts Site), which has been the subject of environmental study and remedial efforts by both the United States Environmental Protection Agency ("EPA") and the Minnesota Pollution Control Agency ("MPCA"); and WHEREAS, pursuant to such efforts, the City of Andover ("City") has obtained a Certificate of Completion of Response Actions under the Land Recycling Act of 1992, as ) amended ("Certificate of Completion"), and the parties desire to set forth with particularity their respective responsibilities regarding the environmental condition of the Development Property. AGREEMENT: NOW, THEREFORE, in consideration of the mutual benefits to EP A and Company, which include the closing of transactions described in the Development Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, EDA and Company agree as follows: 1. Definitions. Terms not otherwise defined herein shall have the meanings ascribed to them in the Development Agreement, unless the context clearly requires otherwise, 2. Monitoring Activities; EP A Covenant Not to Sue or Prospective Purchaser Agreement. EDA shall cause City to carry out any remaining groundwater monitoring or other activities now or hereafter required by the MPCA or the EP A with respect to the Development Property, or property adjacent to the Development Property, such activities to be carried out in a manner so as to cause minimal interference with the use or enjoyment of the Development Property by Company, or its successors in interest in the Development Property. In the event the Company elects to secure coverage under any existing EP A Covenant not to Sue, or to obtain a Prospective Purchaser Agreement directly with the EP A, for any portion of the Development Property, EDA agrees to cooperate and join, and cause the City or any third party defendant in 1 Doc# 1520598\1 IDRAFT DRAFT DRAF11 , the original EP A Consent Decree in the South Andover Superfund case, to cooperate and join, in ) any actions or documents reasonably required for such Covenant not to Sue, or Prospective Purchaser Agreement. 3, Recording of Certificate of Completion Against the Development Property. EDA shall record, or cause the City to record, the Certificate of Completion issued by the MPCA against the Development Property, without cost or expense to Company, such recording to be accomplished not later than the transfer of the Development Property, or the initial portion thereof, to the Company pursuant to the Development Agreement. 4. Environmental Information, Upon request, EDA shall furnish, or cause the City to furnish, to the Redeveloper copies of all environmental studies, reports, data or ' correspondence with the MPCA or the EP A in the possession of EDA or the City relative to the environmental condition of the Development Property, and any investigative, remedial or response actions carried out with respect thereto. Particular efforts shall be directed to studies or reports bearing on the extent and depth of soil excavation or removal actions on the Development Property, as well as in-situ deposit of contaminated material in berms or roadways on or adjacent to the Development Property, to the end that Company, and its contractors and subcontractors, may gauge the extent to which redevelopment activities may exceed previous excavation limits or otherwise be affected by such previous remedial or removal activities, 5. Contingency Plan; Response by EDA. In the event Company, or its contractors or subcontractors, encounters contamination in the course of excavation or other development or , redevelopment activities (and as used herein "Contamination" is to be broadly construed as I including pollutants, contaminants or hazardous substances, as defined under state or federal environmental law and regulations), then in any such event, Company, or such contractor or subcontractor, may halt work immediately pending the preparation or updating by City or EDA of a Site Contingency Plan, and the taking of all appropriate response or remedial actions by the City or EDA, pursuant to applicable requirements of the MPCA's Voluntary Investigation and Cleanup ("VIC") or Voluntary Petroleum Investigation and Cleanup (''VPIC'') Programs, as the case may be. Any preparation or updating of such Contingency Plan, any study or investigative expense or removal or remedial or other expense incurred or to be incurred by the City or the EDA, including all costs of the VIC or VPIC Programs in connection therewith, shall be the sole responsibility of the City or the EDA, 6, Extension of Time for Completion, The deadlines established in Article IV of the Development Agreement for completion of the Commercial Minimum Improvements or Residential Minimum Improvements (as the case may be) shall be extended by a period of time equal to the delay caused by the Redeveloper encountering contamination, and any necessary response to such discovery, as described above. 7. No Association Letter. Upon request by Redeveloper, the EDA, or the City on behalf of the EDA, shall obtain a "no association" letter from the MPCA, pursuant to Minnesota Statutes, Section 115B.178, covering a particular parcel in the Development Property, without cost or expense to Redeveloper, such no association letter to be addressed to the Redeveloper, or, at its designation, the actual purchasing entity, and any tenant of, or lender on, the particular 2 Doc# 1520598\1 [DRAFT DRAFT DRAF11 parcel, as the case may be, Redeveloper agrees, at its expense, to furnish such information as , may be necessary for the MPCA to process such no association request, including, but not I limited to, site plans, grading plans, utility plans or excavation plans for any proposed improvement, information regarding the proposed tenant, user or occupant of the Development Property, and the chemical, industrial or other processes proposed to be employed on the parcel. 8, Other Terms Unaffected. All ofthe terms, covenants or conditions of the Development Agreement shall remain in full force and effect, including all of the rights and remedies of the parties thereunder, and shall not be deemed altered or amended in any manner by the within Agreement. IN WITNESS WHEREOF, the parties have executed this Environmental Undertaking Agreement as of the day and year first abov(}-written. ANDOVER ECONOMIC DEVELOPMENT AUTHORITY By: Its: UNITED PROPERTIES INVESTMENT LLC , , / By: Its: 3 Doc# 1520598\1 \ , / STATE OF MINNESOTA POLLUTION CONTROL AGENCY Commissioner's Certificate of Completion of Response Actions Under the Land Recycling Act of 1992, As Amended Whereas, the city of Andover (the City) has undertaken response actions pursuant to Minn. Stat. S 115B.175 (the Land Recycling Act of 1992, as amended) at the South Andover Redevelopment site (formerly referred to as the Best Auto Parts site), located in Andover and bounded approximately by Bunker Lake Boulevard, Thrush Street Northwest, Commercial Boulevard Northwest, and Jay Street and further described in a legal description in Exhibit A to this CERTIFICATE (the Sitet. and Whereas, the City submitted a Voluntary Response Action Plan including an '\ Investigation Report (comprised of the documents A.l through A.15 on Exhibit B), to the , - ) 11innesota Pollution Control Agency (MPCA) under 11inn. Stat. S 115B.17, subd. 14, governing review of voluntary investigation and response actions; and Whereas, in accordance with Minn. Stat. SS U5B,17, subd, 14, and 115B.175. the Commissioner of the MPCA (Commissioner) or the Commissioner's delegate has determined that the Investigation Report adequately identified and evaluated the nature and extent of the releases and threatened releases at or from the Site; and Whereas, the Commissioner or the Commissioner's delegate has approved a Voluntary Response Action Plan (comprised of the documents B.l through B.ll on EK.hibit B) including the response actions determined by the Commissioner or the Commissioner's delegate to be necessary to protect public health and welfare, and the environment, from releases or threatened releases of hazardous substances, pollutants, or contaminants at or from the Site; and Whereas, based upon information contained in correspondence from Scott Erickson of the City, dated September 1, 1999, the MPCA Commissioner or Commissioner's delegate '* has determined that the City is qualified to obtain protection from liability provided by the Land Recycling Act of 1992, as amended, as a person not otherwise responsible for the release or threatened release of hazardous substances, pollutants, or contaminants at the Site under Minn, Stat. ~~ U5B,01 to 115B.18; and / Whereas, the City has completed the response actions set forth in the approved. Voluntary Response Action Plan; Page 1 . t ~.) Now, Therefore, pursuant to Minn, Stat. S 115B,175, subd, 5, L KAREN A, STUDDERS, COMMISSIONER OF THE MINNESOTA POLLUTION CONTROL AGENCY, CERTIFY UNDER MINN. STAT. S 115B.175 (THE LAND RECYCLING ACT OF 1992, AS AMENDED) THAT RESPONSE ACTIONS HAVE BEEN COMPLETED AS SET FORTH IN THE APPROVED VOLUNTARY RESPONSE ACTION PLAN FOR THE SITE, Upon issuance of this CERTIFICATE, the persons qualified for protection under Minn. Stat. S 115B.175, subd. 6 are entitled to protection from liability under Minn. Stat. SS 1 15B.Ol to l15B,18, to the extent provided in the Land Recycling Act of 1992, as ' amended, The protectionfrom liability provided under Minn. Stat. S 115B.175, does not apply to any person excluded from that protection under Minn. Stats 115B.175, subd. 7. Nothing in this CERTIFICATE or in the Land Recycling Act of 1992,as amended, affects the authority of the MPCA or the MPCA Commissioner to exercise any powers or duties under Minn, Stat SS 115B.0! to 115B.18, or other law with respect to any release or threatened release at the $ite, or the right of the MPCA or the MPCA Commissioner to seek (j any relief available under those sections against any person who is not entitled to protection from liability under the Land Recycling Act of 1992, as amended, with respect to such release or threatened release. SIGNED AND CERTIFIED this 25"1!t day of 0;vu"L ,2000 I STATE OF MlNJ'..TE,SOTA ) ) ss, COUNTY OF RAMSEY ) The foregoing was ackn?wledged before me this :l. 5 day of ~ ' , 2000, by 0~ ~'~ ,the Deputy Commissioner of the Minnesota Pollution Control Agency 0 ehalf of th Minnesota Pollution Control Agency. _.~ ~ e COREN' LAUBACH ,/ \ ' ,.'- NOTARY 1"..';~!.iC. MINNESOTA ) , MY COMMISSION , , ,',. EXPlRE!'; JAN, 31. 2005 ~>"'tf Page 2 . ~ EXHIBIT A LEGAL DESCRIPTION South Andover Redevelopment Site MPCA Project Number VP6290 Lots 1,2,3 and 4, WATT'S GARDEN ACRES, Andover County, Minnesota, including Andover Highway Right-of-Way Plat No.1, over the southerly 100 feet of said lot 4. The Northeast Quarter ofthe Southwest Quarter of Section 34, TOVvTIship 32, Range 24, Anoka County, Minnesota, including Andover Highway Right-of-Way Plat No, 4 across the above described property. The north 658.00 feet of the east 625.00 feet of the NOlihwest Quarter of the Southwest of Section 34, Township 32, Range 24, Anoka County, Minnesota, including 136'h Avenue Northwest lying southerly of and adjacent to the above described property. Outlot D, Andover Commercial Park, Anoka County, Minnesota. \ j j Page 1 of 1 . ~) EXHIBIT B SITE DOCUMENTS South Andover Redevelopment Site MPCA Project Number VP6290 A. Site Remedial Investigation Reports 1. "Environmental Soils Assessment, Best Auto Parts Property," prepared by Braun Intertec Corporation, dated October 30,1995; 2. "Phase I Environmental Site Assessment, Best Auto Parts," prepared by Maxim Technologies Inc" dated JUly 16, 1996; 3, "Waste Characterization Plan, Commercial Boulevard Northwest," prepared by Maxim, dated November 8, 1996; 4, "Phase II Environmental Investigation, Mom's Auto Salvage," prepared by Maxim, dated December 17, 1996; 5. "Analytical Data Summary, West of Best Auto Site, Paint and Solvent A.rea, Table II () (addendum to data of January 13, 1997 correspondence)," prepared by Maxim, dated February 7, 1997; 6. "Waste Characterbition Report, Best Auto Parts, Paint and Solvent Area Excavated Soil," prepared by Maxim, dated February 10, 1997; 7. Facsimile correspondence from JeffEIIiott ofMFRA (Soil Pile Information) to Richard M. Jolley of the MPCA, dated February 26, 1997; 8, "Addendum No.1, City of Andover, Specifications for Commercial Boulevard Northwest, Contaminated Soil and Debris Disposal Project, City Project No. 94-33C," prepared by MFRA, dated April 18, 1997; 9, "Phase II Investigation Work Plan," prepared by Maxim, dated July 11, 1997; 10. "Phase II Groundwater Investigation Report," prepared by Maxim, dated March 24, 1998; 11. "Historical Site Re~earch Summary, Commercial Auto Parts," prepared by Maxim, dated July 16, 1998; 12. "Historical Site Research Summary, Andover Auto Parts," prepared by Maxim, dated ,,-) July 16, 1998; , I Page 1 of4 . / 13. "Historical Site Research Summary, Sandeen Parcel," prepared by Maxim, dated July 16, 1998; 14. "Historical Site Research Summary, Wilber Auto Palis Parcel," prepared by Maxim, dated July 16, 1998; and 15. Correspondence from R, Jeff Elliott ofMFRA to the MPCA, Soil Stockpile Data for Wilber, Andover, and Commercial Parcels, dated August 11,1998. B. Site Remedial Design, Response Action Plans and Response Action Implementation Reports 1. "Site Contingency Plan," prepared by Maxim Technologies, Inc. (Maxim), dated August 19,1996; 2. "Interim Response Action Plall, Commercial Boulevard Northwest Development Site," prepared by Maxim, dated June 16,1997; 3. Facsimile correspondence from Jonathan P. Nedved of Maxim to Rick Jolley of the MPCA, Revised Table V and Table VI for the June 16, 1997, Interim Response Action Plan dated June 18, 1997; 4. "Proposed Remedial Actions" (Mom's Auto Salvage Interim Response Action Plan), correspondence from Jonathan p, Nedved of Maxim to the MPCA, dated October 23,1997; 5, "Conceptual Remedial Action Plan,"prepared by Maxim, dated November 15, 1997; 6, "Interim Response Action, Mom's Auto," prepared by Maxim, dated February 11, 1998; 7. "Proposed Interim Response Action, Andover Auto Parts," prepared by Maxim, dated June 23, 1998; 8. "Proposed Interim Response Action, Wilber Auto Parts," prepared by Maxim, dated June 23, 1998; 9. "Proposed Disposition of Excavated Contaminated Soil Excavation "A" and Excavation "B" Areas - Wilber Auto Parts and Andover Auto Parts Parcel," letter report from Jonathan P. Nedved of Maxim to the MPCA, dated September 15,1998; 10. "Results of Tier II SL V Screening of Excavated Contaminated Soil," letter report submitted by Jonathan P. Nedved of Maxim to the MPCA, dated September 21,1998; 11. "Interim Response Action Plan, Excavated Waste Material and Contaminated Soil," letter J report submitted by Jonathan p, Nedved of Maxim to the MPCA, dated October 13" 1998; Page 2 of 4 . ~) 12. "Draft Corrective Action Report," prepared by Maxim, dated December 18, 1998; , 13. "Placement of Excavated Impacted Soil Beneath Jay Street Northwest, Wilber Auto Parts and Andover Auto Parts Parcels," letter report prepared by Jonathan P. Nedved of Maxim to the MPCA, dated November 24, 1998; 14. "Draft Corrective Action Report" (Revision #1), prepared by Maxim, dated February 19,1999; 15. "Corrective Action Report," prepared by Maxim, dated May 7,1999; and 16. MPCA RAP and RAP Implementation Report Approval Letters: a) Correspondence from Deborah B. DeLuca of the MPCA to Scott Erickson of the city of .A.ndover, Site Contingency Plan Approval, dated September 3, 1996; b) Correspondence from J. Joseph Otte of the MPCA to Scott Erickson of the city of Andover, Approval of Mom's Auto Salvage Interim Response Action Plan, dated October 29.1997; c) Correspondence from J. Joseph Otte of the MPCA to Scott Erickson of the city of Andover, Approval for Interim Response Action Plan for Mom's Auto Salvage parcel, dated February 19,1998; / \ d) Correspondence from Richard M, Jolley of the MPCA to Scott Erickson of the city of J An~over, Approval of the Interim Response Actions for the Andover and Wilber Parcels, dated September 9,1998; e) Correspondence from Richard M. Jolley of the MPCA to Scott Erickson of the city of Andover, Approval of On-Site Placement of Marginally Impacted. Soils, dated September 25, 1998; f) Correspondence from Richard M, Jolley of the MPCA to Scott Erickson of the city of Andover, Approval ofInterim Response Action Plan, Excavated Waste Material and Contaminated Soil, dated October 21, 1998; and g) Correspondence from Richard M. Jolley of the MPCA to Scott Erickson of the City of Andover, Approval of Corrective Action Report, dated May 17, 1999, C. Miscellaneous Site Documents and Correspondence L "Specifications for Commercial Boulevard Northwest; Andover, Minnesota," prepared by McCombs Frank Roos Associates, Inc, (MFRA), dated July, 1996; 2. Correspondence from R. Jeff Elliott ofMFRA to Richard M, Jolley of the MPCA, Program Application Addition and legal description of the Site, dated July 11, 1996; 3, Correspondence from Frederick A. Micke of the United States Environmental Protection .' '\ Agency (EP A) to Deborall DeLuca of the MPCA (EP A comments on the Site Contingency J Plan), c:ated August 30, 1996; Page 3 of 4 . 4. Office Memorandum from Pat Matuseski of the Hazardous Waste Division of the MPCA to Rick Jolley of the VIC Program of the MPCA (hazardous waste determination prepared for preliminary soil analytical data received from the Best Auto Palts parcel), dated December 4, 1996; 5, "Hazardous Waste Determination, Waste Material Excavated from Best Auto Parts Site,'" letter report received from Jonathan P. Nedved of Maxim, dated January 13, 1997; 6. MPCA Office Memorandum (Hazard evaluation of soil stockpile sampling data from the Best Auto Pal.ts/South Andover Redevelopment site) from Helen Goeden, Ph.D. to Rick Jolley (both of the MPCA), dated February 24,1997; 7. "Specifications for Commercial Boulevard Northwest, Contaminated Soil and Debris Disposal Project, City Project No, 94-33C," prepared by MFRA, dated March 1997; 8. Correspondence from Jonathan P. Nedved of Maxim (TCLP Analytical Data, "West of Best Auto Parts" Area Soil Piles) to Rick Jolley of the MPCA, dated March 19, 1997; 9. Correspondence from Jonathan P. Nedved of Maxim (Hazardous Waste Detem1ination, / Waste Material Excavated from "West of Best Auto Parts" Area, Soil Pile No. 29), dated March 19,1997; 10, MPCA Office Memorandum (Hazardous Waste Determination) from Beth Gav,TYs of Hazardous Waste Division to Rick Jolley of the MPCA, dated March 31,1997; 1 LCorrespondence from Jonathan p, Nedved of Maxim (Estimated Schedule for Field Activities) to Rick Jolley ofthe MPCA, dated May 19, 1997; 12, Correspondence from Jonathan p, Nedved of Maxim (Results for Toxicity Screening of Excavated Soil) to Rick Jolley of the MPCA, dated May 22, 1997; 13. Correspondence from Jonathan P. Nedved of Maxim (Evaluation of Waste Materials Against Revised Site Screening Levels) to Rick Jolley of the MPCA, dated June 2, 1997; 14, Correspondence from James 1. Warner of the MPCA to Scott Erickson of the city of Andover, No Action Letter for the Sandeen and the Commercial Auto Parts parcels. dated September 11, 1998; and 15, Affidavit from Scott Erickson documenting the City of Andover's association with the South luidover Redevelopment Site, dated September 1, 1999, / Page 4 of 4 - , "\ ! EXHIBIT C SITE SUMMARY South Andover Redevelopment Site MPCA Project Number VP6290 The South Andover Redevelopment Site (forn1erly referred to as the Best Auto Parts Site) (the Site) is located in Andover and is bounded on the north by Bunker Lake Boulevard, on the west by Thrush Street Northwest, on the southeast by Commercial Boulevard Northwest, on the southwest by developed residential properties, and on the east by Jay Street. 111e Site is roughly rectangUlar, includes what was originally 24 separate parcels and covers approximately 90 acres as is shown on the figure of Exhibit D. The Site is part of the South Andover Superfund site, which is on the National Priorities List (NPL), with the United States Environmental Protection Agency (EPA) in Region 5 serving as administrative lead. Historically, activities at the Site have included numerous automobile scrapyards, foundry operations, and the filling of wetlands by contaminated fill. In 1993, the EPA conducted soil remediation activities at the NPL site and subsequently continued to monitor the ground water contamination from the Site wide monitoring network. The City has been working cooperatively with the MPCA Voluntary Investigation and Cleanup (VIC) Program to develop and implement investigation and cleanup plans for the Site since June 1996 in order to prepare the Site for redevelopment. In October 1998, the EPA delisted the soil and the wetland operable wlits of the 1\PL site from the NPL. The EPA and the Superfund Administrative Group, representing several potential responsible parties for the NPL site, are continuing to investigate and monitor ground water , - ) contamination in a portion ofthe NPL site located southwest of the portion of the Site, Initially, the City entered only the Best Auto Parts parcel within the VIC Program for investigation. Thus, many of the files and reports concerning the investigation and response actions from 1996 to 1999 refer to the Site as the "Best Auto Parts Site." The Site was later renamed at the request of the City and in order to better reflect the multi-parcel nature of the redevelopment Site. The City's response action plan for the Site was initially designed as a comprehensive Site Contingency Plan whose purpose was to specify how potentially hazardous compounds were to be screened, characterized, and remediated as the City graded and prepared the Site for redevelopment. The City prepared the Contingency Plan to meet the guidelines of the MPCA VIC Prognun in order to eJlSure that hazardous materials, pollutants, and contaminants encountered during Site redevelopment activities are properly remedied in accordance with requirements of the Minnesota Environmental Response and Liability Act (MERLA), The MPCA approved the Site Contingency Plan with modifications on September 3, 1996. On numerous parcels of the Site, the City conducted additional Phase I Investigations and targeted specific areas of the Site for further investigation through the use of extensive test pits, in-field soil screening and monitoring, and soil sampling. The Site Contingency Plan, parcel-specific investigations, and interim response action proposals were implemented by the City to identify and remediate additional areas of soil contamination not previously addressed during the NFL site investigation. Table 1 summarizes investigative activities and response actions conducted by the City at the Site, ,'.) .I Page I of2 . I The following parcels not noted in Table I were evaluated during clearing and grading activities by an on.site environmental technician, but no environmental concerns were observed and no response actions were required: the A TV (West), A TV (South), David Heidelberger, Rick Heidelberger (North), the Leisinger (North), the Leisinger (South) Parcel, the Punk in City (East and West), Charles Mistelski, M.R. Olson, and the Tax Ladies, Inc, (East, West, and South). The City documented the completion of several interim response actions during the course of the project. A summary of all response actions conducted at the Site by the City is presented in the "Corrective Action Report,"dated May 7, 1999. This report was approved by the MPCA on May 17, 1999. \ I / I Page 2 of2 - r~ , \ ) Table 1 Summary of Response Actions Conducted by the City of Andover South Andover Redevelopment Site MPCA Project Number VP6290 Andover Auto 625 cubic yards of impacted soil was excavated and The excavated soil placed beneath south bound lane of Parts Parcel characterized with concentrations that were between Jay Street. Tier I and Tier 2 Soil Leaching Values (SL Vs), ATV (East) 2,800 cubic yards of soil/waste contaminated with l\onhazardous waste was disposed of in Buffalo, I Parcel VOCs, lead and PCBs, was excavated, A small portion Minnesota at the Superior Services Forest City Road of this material was excavated from the adjacent Tax facility, a RCRA Subtitle D landfill. PCBs in excess of Ladies (Central) Parcel. the Toxic Substances Control Act (TSCA) limit of 50 parts per mill ion (ppm) was disposed of at a Resource Conservation and Recovery Act (RCRA) Subtitle C landfill. Best Auto Pans Contaminated soil impacted by Palllt solvents, paint Several stockpiles underwent ex~sitll venting to reduce Parcel - Soil wastes and metals associated with a grease trap concentrations ofVaCs; these soils were subsequently totaling 2600 cubic'yards were excavated and disposed of at Superior Services Forest City Road characterized. (FCR) Landfill, a RCRA Subtitle D pennitted landfill. A portion of the excavated soils did not require -- remediation and were replaced onsite on the ATV Parcel as fill. Best Auto Parts The contaminated soil identifred on this parcel A ground water plume consisting ofVOCs sImilar to Parcel - Ground extended to tile ground water table, as a result the those identified in the excavated soil were identified, Water VIC Program required the extent ofthe resulting however the pbme was largely confmed to the area () Contamination ground water contamination to be determined. surrounding the excavated soil contamination. No response actions were required due to the limited nature of the plume and the fact that L'le source for contamination had been removed. Commercial A total of94 test excavations were dug and slight No response a~tions were conducted or required. Auto Parts petroleum odors were noted in eight excavations. VOCs Parcel were identified, but were below risk based actien levels. Rick 16 test excavations were conducted and an area oflead The leadaimpacted soil was excavated and Heidelberger impacted soil was identified approximately 70 cubic yards disposed of off.site at the Superior FCR Landfill. (South) Parcel in volume. South Andover Partially crushed drums and associated soil was The drums were piaced in overpacked drums and Parcel excavated, Elevated levels of chromium, lead, and transported as hazardous waste to the Mi chigan VOCs were identified in the associated soils. Disposal, Inc. RCRA Subtitle C landfill in Wy..,dot, Michigan, Approximately 100 cubic yards of soils was disposed of eff.site at the Superior FCR La,dfill. Mom's Auto A Phase II investigation was conducted including nine The impacted soil from these two areas \oVer: Salvage Parcel soil borings and 24 test pits. Two areas of concern were excavated and disposed of off-site at the Superior identified with a total volume of approximately 470 cubic FCR Landfill. yards. Sandeen Parcel Historical information indicated the possible presence of No response actions were conducted or required solvents and oils had been burned on titis property, A for this parcel. Phase 11 Investigation was conducted consisting of soil borings, test excavations and observations made during grading activities. however no soil contamination was identified. Tax Ladies, Inc, Wastes and contaminated soil was excavated in See A TV (East) Parcel (Central) Parcel conjunction with the excavation of wastes and contaminated soil at the adjacent ATV (East) and the Best Auto Parts parcel. Wilber Auto 70 cubic yards of soil containing elevated levels ofiead The excavated soil was disposed of off.s i te at the Parts Parcel with traces ofPAHs, PCBs and vacs was identified in Superior FCR Landfill. the central portion of the site; 690 cubic yards of , "- petroleum impacted soil, and 20 cubic yards of metal ) impacted soil was identified in the eastern portion by use of test excavations. Page 1 of 1 . , J , / EAl-fIBIT D IvLAJl ILLUSTRATING SITE STUDY AREA South Andover Redevelopment Site MPCA Project Number VP6290 , ' ) - . _._..' ,.0__.- ,1-""\ \ I THRUSH STREET NORTHWEST ::u I -l -. o R- ~)( ~ UJ W UJI ;:: 0"".A. <)> on CO a.. c-. .-0. ""0. ::::o@ ~- ~m . ...... ........~ ..............,.0= JU ~ . ~ m Q o - c ~ Ul "'0 :J ~ CD 0 ~ "~2:.i" :0 c: :0 "\"r"~'::~- -:-.:.]-:-...:~.::, '::::J" :::::::::;::::::::~::::::-'; . I : : "-('0 ! : Ui"!!. I t'Ol'\ __ I Z ~. r::::J\ 1 ~ g S'@l ~ ~~r;:;'\1 3.~.~ !?e : ~<~: 2:0 . ri:-::".~.._.!-.._.._.. ~ --- ~.._.._.:-1-"-"-"l -{ , ~.._.._" .._.._.,.1 ;:: 1 ~ E9 ! r;;;, I UJ 0 I S? W z i ~: g 3 "b 1:; o : I,... _ I ~o. ~ ;_.._.._..~ :T : ,J ~~. I I' C@ _,,_' , . .! ,........ _"- 1 - I' 0 r" , :0 "") ,I UJ : m 1 " ( I' 0 I 0 : ' "0 1 _ , @ I '" Dc' < . ~ ~..-:3 ! ~ I I -. 1 :E~@. !" L--" : a. : ~::I ~ ! . _..J I I ~. Ul L.._.._.._,._,_.._.,_ .._.. . (11 :.........Q I 0 I o..:!-<: S. : :;:;:) ::J" :T 1 _. > C) c= I I ~R- Z n )> Z - C .., I :::I@ , 0..,.. >....I:::J lO 0.<0 I ~_ CD _.._"._ ~('ll o ", " I ~ 0 r"-"-"-" , :TO: t!l;j z " : ~ , ! '-"~ >C::llrr.C I "I [;1>r'N\ i c- ZZ OJ./.;:: Icil\' UJ '~<\..e),:, ~ g ~ 8 Hr-3 ~ ~! ~r: I, .._,.::,,_.. -..-..J ~ -..-.'" ..~, < e:: :::0 1 "_"_"1_"_"_"_ '_"_"_" t;<j a:: .. "-" "-r-"-"- ~ ~~t':lt:rj "I i 100 ::<::::l 10 I,::c ",t<Jn : 'I I OJ IZ - - I: C1I '^ :.z, t!l>!;7 :: I" il'1 at"' ~ I! i~::o c;l ~Et:l r,..." i!: ?: 0 1,... ~)( (f.l t':l...... "I ~ I.:Y I> n ~ Q , ;j ....... "0 ! n ! :E ,0 '~g b'rt' >i>~'U c::> 0 I == ! -0 I r+c..\V ~ 0 -~:J ! 3 : rr i 0 :rn d ni. : CI '"::l 1'10 -. c.'1 3 1 n ,;+ I a _" boo' :J 0 . .., j Ul :c........- ~ ~ <: CI) "I >-. li_ t=j .........n CtI I..., c; 'fT]::I Z ;::;:., : !}. : ,....,.. I ~< n >-3 '< ~ 8 1 0 e I 0 '-.._.._. ,_.. ,:> ' - - - ~' , L ':>J ~' > i -0 : ..-..-..-" 0 ;;:::illUl:::O 0"0 0 0 c: 0 I III i o :;0)> ..-+0 I ;l. : a " 5< > ~ ~ 0 r;j, "0 ci' 0 'I' " !:o ~ i ~1~("1]:E~.. ~ ;4.. "'0: ""0 . ~~ "<Zo tl UI 0 Ie! CtI I o 1'1 -;- 3 ;+ : C) i:O , -l :E_O~ '" g " I ~: ! ~ C) . rn" Z:::::- ~ : L-.T..- "-", '"' (f, ' II -< P -.J !, : g',....l>' _" Z .. > .. ~ 'i I" 0 c I o .".. 0 ~ !. ::::: c-'J : .c.e: / g~C"J(Q i i ~5~! ~ t..l. "'-oJ "-\.S)' _ o Z -.J i i ~c=D! _ o r'T1 I'..:l ":x:-t.O. ;:J to ~ '" i i _, ! " ~ ~ ; j' o ;e JAY STREET '" ;0 en (j) " ) CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923. WWW.cJ.ANDOVEKMN.US TO: EDA President and Commissioners FROM: John Erar, Executive Director SUBJECT: Discuss Off-Sale Liquor Store Restrictions DATE: March 6, 2002 INTRODUCTION The EDA has discussed issues regarding the permitting of multiple off-sale liquor stores in a concentrated commercial area, The Executive Director has been directed to provide additional information on regulatory authority. DISCUSSION / While state statute does not regulate the number of off-sale liquor licenses a city may issue, it does allow municipalities to locally regulate off-sale liquor store operations, Currently, the City does not have any ordinances regulating off-sale liquor store operations. In review of neighboring communities, staff has prepared a brief survey! of neighboring communities. CITY # LICENSES ALLOWED NOTES Anoka Municipal only Blaine 6 One license per 7,000 residents Chanhassen 4 500 foot radius restrictions with building valuation of not less than $100,000 Champlin 3 Coon Rapids 6 One mile radius restrictions Elk River Municipal only Ham Lake 3 One license per 5,000 residents Plymouth No limit Ramsey No limit / I Provided by the City Clerk's Office Cities with municipal liquor store operations generally do not allow private competition, and J essentially construct additional municipal stores in response to market demand, Minnesota Statute 340AA08, subd, 3 regulates the amount of fees cities can charge for off-sale liquor licenses-Andover is limited to $200 per license, There is no statutory limit on the number of off- sale liquor licenses that may be issued other than what the City may limit by ordinance subject to Council discretion. In discussions with City Attorney Bill Hawkins, it was indicated that off-sale liquor stores do not typically result in additional City enforcement actions as the product is purchased for off-site or home consumption. However, the City Council has the flexibility to impose restrictions as it deems appropriate, Of the cities surveyed, the Council has the following options: I) Develop license restrictions based on radius locations; given the limited and concentrated commercial retail land areas remaining in the City, this may essentially preclude more than one liquor store from locating in the Andover Station\WDE area, 2) Develop license restrictions based on population; 3) Develop license restrictions based on construction valuation; this would create economic barriers to more pedestrian liquor store retailers and allow the City Council/EDA to be more selective in choosing preferred off-sale liquor store retailers while guaranteeing certain architectural and building construction standards. 4) Develop license restrictions based on a combination off actors; 5) Status Quo; Allow market factors to determine the economic sustainability of multiple off-sale liquor stores that would also facilitate consumer competition, ./ ACTION REQUIRED Given the interest by multiple developers in locating off-sale liquor stores in the WDE and Andover Station sites, EDA Board discussion is requested regarding the nature of preferred off- sale liquor license restrictions, A recommendation by the EDA would then be advanced to the Planning and Zoning Commission for review and comment, with final consideration and action by the City Council. Respectfully submitted, ~ ; (j) , / CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923. WWW.CLANDOVER.MN.US TO: EDA President and Commissioners FROM: John Erar, Executive Director SUBJECT: Commercial Boulevard - Renaming DATE: March 6, 2001 INTRODUCTION At the February 6, 2001, the EDA discussed interest in renaming Commercial Boulevard to more appropriately reflect the true nature and character of the Board's vision of Andover Station, DISCUSSION '. , My office has received submittals of possible street names for Board consideration. ACTION REQUESTED EDA consideration of submitted street names, Respectfully submitted, John Erar " ~ -<6--='0 a _________~__~___n____ _____"__________ ___~_ -- - -- - - ----.------"-- r-- u ~--. . ~-- _u_ , - - - --~ - -- . , lohrJ --- -v. - - ----- --- ---- -.---- -.----- -.- --- ----- - -"-- ---"---- --- .- ..- - ----- ------ - -- ----- ----- -----~--- ---------f-~~---- /15- -Lo 5"u~7etln<J~5 04_ RE-/J.4-/Vlt.,.JG-u ~~ ea~:J?l_(-r~~ ~_~- _=ii~~p-~-~:__~~j-~~,~::;-~_~-,-d.~-;tJJ ,.:: t~_= ~c:) nO~~~~l--- ;--~-~~;~~ ;;,-~;~;-~~~---~- ~-.--==--~~==--~='= -- -- - -- -- --- .- -- -- ---- ------ -~- - - --- -- - -- - ---- - ------- ,A~13012. 1-4I1JC__(o~ G\..'IIr.:>)._________ __ _ _ ~ -- - ---- ---- -- - - ---- . - - ".- .--- - . _.--.--- ---- -_.---- - -- - ----- ---- -~------------ , 0 v Cfl Lt,t,.; 6 'I ~A-\ L A S1r:=rJ Ltr/Vt ------ - goLde'" ~f'kc ROIl-()k/l1rt.c;l~!-r ~ _ __ ~_.___ - . ---u--t/~,.!-lJftf?r(l.-'!~n:.~-- flt1r' ~ O,fJ..,vc L-=-u A-4tfM~__1f_'-~'_::_/!~NS_ M. II"'" a -. I " . I ... c- /::: ""'jh P.E Ie; 11 , {...Cte ^-- 1:0 ~ elf-TrLc . If ,~ LAJe7Tt11..f\J Sf All ttVCN\JC ~ T"'~ Ot."J. .soo t..,IVG" - ~ . ~ ~').J~(;;0fij ~1/jir-1'tt-e~-- W;';n;uJ--5rtf{t~rh-fUJ~ ~~-- 'it b J .. ...._ ___ ~:-:;~~~~!,A c __ j, Gclb. NOvJ/fk: ..------- --------- ------- -------- ------ -- -- - -- ----- ---------. -------- ------,.~-- -------------- ------- --- -- - - --~-~-- -- ~--~- Submitted by EDA Commissioner Don Jacobson I Possible names for the "old" Commercial Blvd . Oak Ridge Road . Railroad Drive . Andover Drive . Arbor Lake Drive . Sand Point Road . Brickstone Court . Broadway Drive . Burl Oak Trail . Zepher Lake . Water Tower Drive . City Center Circle (or drive) . Coach Road . Roundhouse Road . Great Northern Trail . Empire Trail . Station Trail . North Star Drive . Grand Avenue , . Great Oaks Trail A Iron Horse Way . . Overland Trail . Golden Spike Road . Carriage Drive . Market Street . Round House Road . Muskrat Run . Oak Terrace . Old Settlers Trail . Patriot Lane . Rail Way . . FIRST AMENDMENT TO DEVELOPMENT AGREEMENT This First Amendment to Development Agreement ("First Amendment") is dated as of March 15,2002 (which date is for reference purposes only), by and between the Andover Economic Development Authority (the "EDA"), a body politic and corporate under the laws of Minnesota, and United Properties Investment LLC, a Minnesota limited liability company (the "Company"). WITNESSETH: WHEREAS, the EDA and the Company entered into that certain Development Agreement dated September 25, 2001 (the "Development Agreement"); WHEREAS, the Development Agreement concerns, inter alia certain property located southeast ofthe comer of Bunker Lake Boulevard NW and Thrush Street in Andover, Minnesota, more fully set forth on Exhibit A and Exhibit A-I to the Development Agreement and referred to therein as the "Development Property" consisting of the "Commercial Development Property" and the "Residential Development Property," all of which is being acquired from the EDA by the Company for development purposes; WHEREAS, the EDA is in the process of registering the Commercial Development Property and Residential Development Property pursuant to the Torrens Act, and replatting the same substantially pursuant to the preliminary plat attached hereto as Exhibit A-I (the "Andover Station First Addition Replat"); and WHEREAS, the parties desire to clarify and otherwise amend the Development Agreement on the terms and conditions as hereafter set forth, NOW, THEREFORE, in consideration of the premises, of the mutual obligations of the parties hereto and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties covenant and agree with each other as follows: 1. Recitals. The parties agree to incorporate the provisions of the above recitals into and as a part of the provisions of this Agreement the same as if they were repeated in their entirety, 2. Definitions. Any term or phrase with initial capitalized letters shall have the meanings as defined in the above recitals, or elsewhere defined herein or if not so defined shall have the meaning as set forth in the Development Agreement. 3, Revised Le!!al Descriotion, Exhibits A and A-I to the Development Agreement are hereby deemed deleted therefrom and Exhibits A and A-I attached to this 1 Doc# 1525398\1 . . First Amendment shall be deemed substituted in lieu thereof, 4, Exhibit B/Purchase Al!reement. Exhibit B to the Development Agreement (the "P A") sets forth the terms of conveyance between the EDA and the Company with respect to the Development Property and is hereby amended, modified and revised as follows: A, Closinl! Date, The Date of Closing as set forth in paragraph 3 of the P A shall be extended to allow for the finalizing of the Andover Station First Addition Replat, and accordingly such Date of Closing shall now be Friday, April 19, 2002, or such earlier date agreed to by the parties, B. Simultaneous c1osinl! of Residential and Commercial Development Properties, At the Closing on the conveyance of the Development Property, the EDA agrees to execute and delivery separate warranty deeds for each of the Residential Development Property and Commercial Development Property which shall run to the Residential Assignee and to the Company, respectively, and paragraph 4 of the PA is hereby revised and amended accordingly. C, Price and Terms. The parties agree that the price for the entire Development Property shall not exceed $2,648,448,00 (19 acres times $3.20 per square foot), To the extent that the area of the Development Property exceeds 19 acres (827,640 square feet) then the amount of square feet over 19 acres times $3.20 shall be added to the purchase price to be paid for the "Option Property" (as defined below) (the "Additional Option Price"). If, at the expiration of the Option Agreement (4:00 p,m. March 15, 2003), the Company has not exercised, in whole or in part, the Option, then the Company agrees to pay the Additional Option Price to the EDA on or before March 17,2003. 5, Option Al!reement, Exhibit C to the Development Agreement (the "Option Agreement") shall be revised as follows: A. Option Price, The Additional Option Price shall be added to the purchase price to be paid by Optionee to Optionor for all of the real estate subject to the Company's Option (the "Option Property"), which shall result in an increase in the $3.20 per square foot price to be paid for the Option Property (the "Revised Per Square Foot Price"). The Revised Per Square Foot Price shall be calculated by dividing the number of square feet of area contained within the Option Property into the following sum: i) the Additional Option Price, plus ii) the product of $3,20 times the number of square feet of area contained within the Option 2 Doc# 1525398\1 . Property, Thus, the $3,20 per square foot figure set forth in Section 1.1 of the Option Agreement shall be deemed deleted and the Revised Per Square Foot Price shall be inserted in lieu thereof. The Option Property, which is to be attached as Exhibit A to the Option Agreement is the property set forth on Exhibit A-2 attached to this First Amendment. B, Partial Takedowns, The Option Agreement is hereby revised to provide that the Optionee shall be entitled to exercise the Option one or more times for portions or all of the Option Property (at Optionee's election), by Optionee designating to Optionor (such designation to be by survey, legal description or otherwise), the portion of the real estate for which it desires to exercise its Option. Such partial take-down of the Option can be exercised more than once provided however, that no exercise is subsequent to 4:00 p.m. March 15,2003, In the event that Optionee exercises a partial take-down of the Option as set forth herein, it shall arrange to plat the property so designated by Optionee and Optionor agrees to cooperate with Optionee in connection with said platting process. The parties agree and acknowledge that closing on the real estate for which Optionee-has so exercised its partial take-down of the Option shall occur pursuant to Section 7 of the Option Agreement, or within ten (10) days following the platting of the parcel of real estate for which the Option has been exercised, whichever shall be last to occur, The EDA acknowledges and agrees to allow the Company to enter upon any of the Option Property to inspect, survey and plat the same at all times prior to the expiration of the Option, 6, Environmental Indemnification, The parties agree to amend, modify and revise Section 10 of the Development Agreement by adding thereto the following: "Section 10.3 Environmental Indemnitv. The EDA agrees to deliver at the Closing on the Commercial Development Property, an Environmental Indemnity Agreement, in the form attached to this First Amendment as Exhibit B, The EDA agrees to also delivery an Environmental Indemnity Agreement in substantially the same form, at the closing(s) of the Option Property, The EDA further agrees to delivery an Environmental Indemnity Agreement at the closing of the Residential Development Property on terms and conditions separately agreed to between the EDA and the Residential Assignee," 7. Declaration of Restrictive Covenant. The legal description to be attached to Exhibit D ("Declaration of Restrictive Covenant") to the Development Agreement is attached hereto as Exhibit A-3. 3 Doc# 1525398\1 . . 8, Covenants. Conditions and Restrictions, The parties have agreed that the form of the Covenants, Conditions and Restrictions referenced in paragraph 4H of the Development Agreement has been approved by the parties, a copy of which is attached hereto as Exhibit C. IN WITNESS WHEREOF, the EDA and the Company have caused this Agreement to be executed in their respective names, ANDOVER ECONOMIC DEVELOPMENT AUTHORITY By: Michael R. Gamache, President By: John Erar, Executive Director UNITED PROPERTIES INVESTMENT LLC By: - Its: By: Bruce Carlson, Vice President Retail Development SCHEDULE OF EXHIBITS Exhibit A - Revised Legal Description for Development Property Exhibit A-l-Andover Station First Addition Replat Exhibit A-2 - Legal Description of Option Property Option Exhibit A-3 - Legal Description to be attached to Declaration of Restrictive Covenant Exhibit B - Environmental Indemnity Exhibit C - Approved Form of Covenants, Conditions and Restrictions 4 Doc# 1525398\1 EXHIBIT A DEVELOPMENT PROPERTY 1. Commercial Development Property Legal Description: Lots 1,2 and 3, Block 1, Andover Station First Addition, Anoka County, Minnesota. 2. Residential Development Property Legal Description: Lot 1, Block 2, Andover Station First Addition, Anoka County, Minnesota. - 1 Doc# 1525398\1 . . EXHIBIT A-3 LEGAL DESCRIPTION TO BE ATTACHED TO DECLARATION OF RESTRICTIVE COVENANTS Parcel 1 That part of the Northeast Quarter of the Northeast Quarter, Section 34, Township 32, Range 24, Anoka County, Minnesota, lying southerly of the following described line: Commencing at the northwest comer of said Northeast Quarter of the Northeast Quarter; thence on an assumed bearing of South 00 degrees 18 minutes 44 seconds West, along the west line of said Northeast Quarter of the Northeast Quarter, a distance of 15 feet to the actual point of beginning of the line to be described; thence South 89 degrees 08 minutes 39 seconds East a distance of 180.52 feet; thence South 75 degrees 30 minutes 33 seconds East a distance of 190.89 feet; thence South 89 degrees 08 minutes 39 seconds East a distance of 474,80 feet; thence North 67 degrees 05 minutes 08 seconds East a distance of 111,64 feet; thence South 89 degrees 08 minutes 39 seconds East a distance of- 373.94 feet to a point on the east line of said Northeast Quarter of the Northeast Quarter and said line there terminating. Parcel 2 That part of the Northwest Quarter of the Northeast Quarter, Section 34, Township 32, Range 24, Anoka County, Minnesota, lying westerly and southerly of the following described line: Commencing at the northeast comer of said Northwest Quarter of the Northeast Quarter; thence on an assumed bearing of North 89 degrees 08 minutes 39 seconds West, along the north line of said Northwest Quarter of the Northeast Quarter, a distance of 1078.71 feet to the actual point of beginning of the line to be described; thence South 68 degrees 56 minutes 31 seconds East a distance of 402.99 feet; thence South 81 degrees 03 minutes 01 seconds East a distance of 109.56 feet; thence North 70 degrees 32 minutes 11 seconds East a distance of 198.91 feet; thence North 80 degrees 59 minutes 38 seconds East a distance of 411.73 feet to a point on the east line of said Northwest Quarter of the Northeast Quarter distant 15 feet south from said northeast comer of the Northwest Quarter of the Northeast Quarter, and said line there terminating, 1 Doc# 1525398\1 . . EXHIBIT C APPROVED FORM OF DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS THIS DECLARATION made this day of , 2002, by the Andover Economic Development Authority (EDA), a body corporate and politic, hereinafter referred to as "Declarant", WITNESSETH: WHEREAS, Declarant is the owner of certain real property located in the City of Andover, Anoka County, Minnesota, more-particularly described in Article II below and Exhibit "A" attached hereto, herein the "Property." WHEREAS, Declarant desires to create a community of compatible and complimentary commercial, residential and office buildings for the benefit of the owners and to protect the value and desirability of the Andover Station development; and WHEREAS, Declarant has deemed it desirable for the preservation of Andover Station and for the assurance of consistent quality and architectural design to establish certain restrictions and covenants as to how Andover Station may be developed; and WHEREAS, Declarant intends that certain of the following covenants and restrictions are to be administered and enforced by Declarant and Andover Station Owners Association established for Andover Station for the purposes expressed in the Articles of Incorporation for Andover Station Owners Association; and NOW, THEREFORE, Declarant hereby declares that all of the properties described above, known as Andover Station, and such additions thereto as may hereinafter be brought within the jurisdiction of the Association, shall be held, sold, and conveyed subject to the following restrictions, covenants and conditions which are for the purpose of protecting the value and desirability of, and which shall run with the real property and be binding on all parties having any right, title or interest in the described properties or any part thereof, their heirs, successors and assigns and shall inure to the benefit of each owner thereof. Section 1.1 1 Doc# 1525398\1 . . . The following words, when used in this Declaration (unless the context shall prohibit), shall have the following meanings: a. "ASSOCIATION" shall mean and refer to the Andover Station Owners Association, a nonprofit corporation created by Declarant under the laws of State of Minnesota for the purpose of administering and enforcing on behalf of the Owners and Covenants and Restrictions contained in this Declaration, b. "COMMON EXPENSES" shall mean and include (i) all expenses approved or incurred by the Board of Directors by Officers of the Association, pursuant to authority granted by the Governing Documents or by law, in the performance of their powers and duties; (ii) those items identified as Common Expenses In this Declaration and In the Association's Bylaws, c, "COMMON PROPERTY" shall mean and refer to all real property improvements thereon and property rights and easements owned by the Association for the common use and enjoyment of the Owners. d, "DECLARANT" shall mean and refer to Andover Economic - Development Authority (EDA), its successors and assigns, if such successors and assigns should acquire any undeveloped portions of the property from the Declarant for the purpose of Development or by virtue of foreclosure of a mortgage or by any transfer in lieu thereof. e. "FIRST MORTGAGE" shall mean and refer to any person named as a mortgage under any mortgage against a Lot, which mortgage is first in priority upon foreclosure to all other mortgages against said Lot, or any successors in interest to such person under said mortgage or any rights arising therefrom. f. "GOVERNING DOCUMENTS" shall mean and refer to this Declaration, and the Articles of Incorporation and Bylaws of the Association, and Andover Station Design Standards, as amended and supplemented from time to time, all of which shall govern the use and operation of the property. g, "LOT" shall mean and refer to any platted plot of land shown in Exhibit A, excluding the Common Property, h. "ASSOCIATION MAINTENANCE AREA" shall mean the common property and those areas of the Lots for which the Association is responsible for maintaining in accordance with these Declarations. 11 Doc# 1525398\1 . 1. "MEMBER" shall mean and refer to members of the Association as described in this Declaration and in the Bylaws of the Association. J. "OCCUPANT" shall mean and refer to each temporary or permanent occupant of a dwelling constructed on a Lot, whether said occupant is an Owner, tenant or other person or entity. k. "OWNER" shall mean and refer to the record owner, whether one or more persons or entities, of the fee simple title to any Lot except that if (i) a Lot is being sold in a contract for deed, (ii) the contract vendee is in possession of the Lot and (iii) the contract so provides, then the vendee and not the vendor shall be deemed the "Owner", 1. "PROPERTY" shall mean and refer collectively to all of the real property now or hereafter submitted to the Covenants and Restrictions of this Declaration, m, "RULES AND REGULATIONS" shall mean and refer to the Rules and Regulations of the Association as approved from time to time by the Association pursuant to Section 5.3. ~ n, "BUILDING" shall mean and refer to any building located on a Lot and designated and intended for use and occupancy and including any accessory building which may be adjacent to or within such building, 0, "ANDOVER STATION" shall mean that part of the property described in Exhibit A. p. "ANDOVER STATION DESIGN STANDARDS" shall mean those design standards adopted by the Andover Economic Development Authority dated December 18, 2001 and including any subsequent amendments thereto. q, ARCHITECTURAL CONTROL COMMITTEE" shall mean the Andover Review Committee which shall consist of representatives from the following Andover City Departments: planning, engineering, building, public works, fire, administration and finance, ARTICLE II. PROPERTY SUBJECT TO THIS DECLARATION Section 2.1 Property. 111 Doc# 1525398\1 . . The Property shall mean and refer to all Lots and Blocks in Andover Station, a plat duly recorded in Anoka County, Minnesota, as listed in Exhibit A, in Andover Station II, a plat duly recorded in Anoka County, Minnesota, and in Andover Station First Addition, a. plat duly recorded in Anoka County, Minnesota. Section 2,2 Transfer of Lots. The Lots shall be freely transferable in accordance with the applicable laws of the State of Minnesota and the provisions of the Governing Documents, provided, that the share of an Owner in the assets of the Association, and the Owner's rights and obligations as a member of the Association cannot be assigned, pledged, encumbered, conveyed or transferred in any manner, except as an appurtenance to his or her lot. ARTICLE III. MEMBERSHIP AND VOTING RIGHTS IN THE ASSOCIATION Section 3,1 Membership, The qualifications of members and the manner of their admission into the Association shall be as follows: - a, Every Owner shall, solely by virtue of such ownership interest, be a member of the Association, and such membership shall automatically cease when the person is no longer an Owner. When one or more persons is an Owner, all such persons shall be Members, b, It shall be the duty of each Owner to register Owner's name, Lot address, the name and address of the Owner's First Mortgagee, and the nature of the Owner's interest with the Secretary of the Association, If the Owner does not so register, the Association shall be under no duty to recognize the Owner's ownership for purposes relating to the operation of the Association, including voting, but such failure to register shall not relieve the Owner of the Owner's obligations under the Governing Documents. c, Membership in the Association is appurtenant to ownership of a Lot, and transfers of any interest of any Owner in the Property may be made only in accordance with provisions of the Governing Documents. Section 3.2 Voting Rights, The Association shall have two classes of voting membership. a. Class A Members, Class A members shall be all Owners, with exception of the Declarant. Class A members shall be entitled to one vote per acre contained within the Lot of which they are the Owner, When more than one person is an IV Ooc# 1525398\1 . Owner of any Lot, all such persons shall be members, but the Owners of such Lot shall be collectively entitled to only one vote per acre contained within that Lot, When there is more than one Owner of a Lot, the votes for such Lot shall be cast by one person designated in writing signed by all Owners of the Lot. Such voting authority shall be valid until revoked in writing by such Owners. b. Class B. Members. The Class B Member shall be the Declarant who shall be entitled to three (3) votes per acre contained within the Lot(s) owned. The Class B membership shall cease and Declarant shall then (notwithstanding provisions of Paragraph 3.2a above, to the contrary) be entitled to Class A membership pursuant to Paragraph 3.2a above, upon the occurrence of the earlier of the following (hereinafter called the "Conversion Date"): a, When the total votes outstanding in the Class A membership equal the total votes outstanding in the Class B membership, or b. December 31, 2003 ARTICLE IV. RIGHTS AND OBLIGATIONS OF OWNERS Section 4.1 Rights and Easements in Common Property. Subject to the provisions of Section 4.2, every Owner shall have the following non- exclusive, appurtenant rights and easements of enjoyment over, under and upon the Common Property: a. For access and use of utilities such as sewer, water, gas, power, telephone and cable, which may be installed by, for or with the permission of the Association. b. For access by pedestrians or vehicle travel, subject to reasonable regulation by the Association. c. For parking as located and constructed by the Declarant or the Association and as may be reasonably limited and regulated by the Association, Section 4.2 Limitations on Owners' Rights and Easements, Except as otherwise provided herein, the Owners' rights and easements created hereby, the right of the Association to govern the use and enjoyment of the Property, and the right and title of the Association to the Common Property, shall be subject to the following: v Doc# 1525398\1 a, The right of the Association, in accordance with the Governing Documents to maintain, repair and replace portions of the Common Property and to maintain the Association Maintenance Area pursuant to Article IX; and b. The right of the Association, in accordance with the Governing Documents, to improve the Common Property, and in furtherance thereof to borrow money and to mortgage said Common Property; provided, however, that the rights of such mortgagee in said Common Property shall be subordinate to this Declaration and to the rights of the Owners and the First Mortgagees; and c, The right of the Association to suspend the right of any Owner to vote and the right of any Owner, Occupants of the Owner's Lot and their respective guests to use the Common Property for any period during which any assessment against the Owner's Lot remains unpaid and for an additional period of up to 30 days for each violation of the provisions of the Governing Documents and Rules and Regulations by the Owner, Occupants of the Owner's Lot their respective guests; and d. The right ofthe Owners to use the common parking areas, if any, subject to reasonable regulation by the Association; and e, The right of the Association to dedicate or transfer all or any part of the - Common Property to any public agency, authority, or utility for public or utility purposes subject to written approval by Members entitled to cast two-thirds (2/3) of the votes of each class of membership and a like percentage of the First Mortgagees, or the right of the Declarant to effect such a dedication or transfer at its sole discretion prior to the Conversion Date. Section 4.3 Use of Lots. In addition to any other restrictions that may be imposed by the Governing Documents or by law, the use and conveyance of Lots shall be governed by the following provisions: a, Each Lot and each Building constructed on a Lot shall be in conformance only, with the use allowed under the Zoning Ordinances and Regulations of the City of Andover, as described in and authorized by the Governing Documents and the Rilles and Regillations. b, Any lease between an Owner and a lessee shall be required to provide that the terms of the lease shall be subject in all respects to the provisions of the Governing Documents and the Rules and Regulations, and that any failure by the lessee to comply with the terms of such documents shall be a default under the lease. The Association may approve and enforce such other reasonable rules and regulations governing leasing as it deems necessary from time to time, vi Doc# 1525398\1 . . c. The Association shall construct, repair and maintain upon the Common Property vehicle parking spaces and roadways for the common use of the Owners, the Occupants and their guests in accordance with applicable municipal requirements and any parking regulations established by the Association. d. Each Lot shall be held, conveyed, encumbered, leased, used and occupied subject to all covenants, conditions, restrictions, uses, limitations and obligations expressed in the Governing Documents and the Rules and Regulations. All such covenants and obligations are in furtherance of a plan for the preservation and enjoyment of the Property, and shall be deemed to run with the land and be a burden and benefit to any person acquiring or owning an interest in the Property, their heirs, personal representatives, grantees, successors and assigns. Each Owner, Occupant and their guests shall use the Owner's Lot in such a manner as will not unduly restrict, interfere with or impede the use by other Owners and Occupants of their Lots, e, No use shall be made of the Property which would violate the then existing municipal ordinances or state or federal laws, nor shall any act or use be permitted which would cause an increase in insurance rates on the Property or otherwise tend to cause liability or unwarranted expense for the Association or any Owner, f. No alteration or improvement, of any type, temporary or permanent shall be made or caused or suffered to be made by an Owner or Occupant on the exterior of any Building without the prior written authorization of the Board of Directors, or a Architectural Control Committee appointed by it, pursuant to Article XIII of this Declaration. g. In the event of damage to the Common Property cause by the willful or negligent act of any Owner or Occupant, or their guests, the Association shall have the right to restore the Common Property to its prior condition and assess the costs thereof against the Owner who violates, or whose Occupants or guests violate, such provisions, and such cost shall become a lien upon the Owner's Lot and shall be due and payable upon demand, Section 4.4 Delegation of Use, Any Owner may delegate, in accordance with the Governing Documents, the Owners right of enjoyment to the Common Property to the Owners lessees who occupy the Building; but the Owner shall remain responsible for any damages caused by the willful or negligent acts of such persons, and such persons shall be subject to the provisions of the Governing Documents. Section 4,5 Taxes and Special Assessments on Common Property, Vll Ooc# 1525398\1 . Any taxes or special assessments levied separately against the Common Property by a governmental authority shall be divided and levied against the Lots as the Association shall direct, which levies shall be a lien against said Lots and shall be collectible by the Association as part ofthe annual assessment, if the same are not required to be paid directly to the governmental authority, ARTICLE V. RIGHTS AND OBLIGATIONS OF THE ASSOCIATION Section 5,1 General. The Association shall be responsible for the management and control of the Common Property and all improvements thereon (including furnishings and equipment related thereto), all trail improvements, street lighting, irrigation systems, landscaping, sidewalks and pertinent improvements constructed thereon, and refuse service located upon all public easements within the Property ("Andover Station Improvements"). The Association shall keep the same in good, clean, attractive and sanitary condition, order and repair. Section 5.2 Services, The Association may contract and pay for the services of any person or entity who or which is a professional property manager to manage the Association's affairs, or any part thereof, to the extent it deems advisable. Such manager may employ such personnel as the manager shall determine to be necessary or desirable for the proper operation of the Associations' affairs, whether such personnel are furnished by the manager or by third parties hired by the manager. However, any such contract for professional management shall provide for termination by either party, with cause upon thirty (30) days prior written notice, and without cause and without payment of a termination fee or penalty upon ninety (90) days or less prior written notice. In addition, when professional management of the Property ahs been required by any First Mortgagee and in fact utilized by the Association, any decision to discontinue professional management and establish self-management by the Association shall require the prior consent of: (i) Owners of Lots to which at least sixty-seven percent (67%) of the vote in the Association are allocated; and (ii) the approval of First Mortgagee's holding mortgages on Lots to which are allocated at least fifty-one percent (51 %) of the votes in the Association, Section 5.3 Rules and Regulations. The Association may make such reasonable Rules and Regulations governing the use, maintenance and enjoyment of the Common Property, including but not limited to parking and access rules and regulations, as it deems reasonably necessary, which Rules and Regulations shall not be inconsistent with their rights and duties established by the Governing Documents, Section 5.4 Board of Directors. Vlll Doc# 1525398\1 . The power and authority of the Association in the Governing Documents 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, unless specifically provided otherwise in the Governing Documents. Accordingly, all referenced to the Association shall mean the Association acting through its Board of Directors. ARTICLE VI. COVENANTS AND ASSESSMENTS Section 6.1 Creation of the Lien and Personal Obligation of Assessments, The Declarant, for each Lot owned within the Properties, hereby covenants and each Owner of any Lot by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay the Association: (1) annual assessments or charges, and (2) special assessment for capital improvements or capital equipment to be owned by the Association; such assessments to be established and collected as hereinafter provided. The annual and special assessment, together with interest, costs, and reasonable attorney's fees, shall be a charge on each Lot and shall be a continuing lien upon each Lot. Annual assessments shall become a lien upon each Lot on the first day of January of the year in which such assessment is due and--payable, Special assessments shall become a lien on the earliest date any part of the same is due and payable. Each such assessment, together with interest, costs and reasonable attorney's fees, shall also be the obligation of the person or entity which is the Owner of such property at the time the assessment fell due. The personal obligation for delinquent assessments shall not pass to the Owner's successors in title unless expressly assumed by them, Section 6.2 Purposes of Assessments. The assessments levied by the Association shall be used exclusively to promote the health, safety and welfare of the Owners and occupants and their guests in the Property and for the improvement and the maintenance of the Common Property and common personal property thereon, including but not limited to: a, Payment by the Association of charges for utility services to the Common Property; b. Taxes and special assessments against the Common Property, if any, and income and other taxes levied or assessed against or charge to the Association, if any; c. Premiums for liability and other insurance carried upon the Common Property by the Association, including hazard insurance maintained on the Common Property pursuant to Article VII hereof, the deductible amount not covered by such insurance and the additional amounts deposited by the Association or its Board of Directors to repair or restore improvements on the Common Property; 1X Doc# 1525398\1 . d. Repair, replacements, construction, reconstruction, alterations, maintenance, snow removal and additions undertaken by the Association pursuant hereto; e. Creation of reasonable contingency, emergency, and working capital reserves (an adequate reserve fund funded from annual assessments and not from special assessments, shall be maintained for maintenance, repair and replacement of those elements of the Common Property which must be replaced on a periodic basis, including but not limited to replacement of mail boxes); f, The cost of labor, equipment, and materials for all work done by or for the Association; and g, Reasonable fees for management and supervision of the Common Property pursuant to this declaration during the time the Common Property is owned by the Association, Section 6.3 Annual Assessments - A proposed annual assessment shall be established by the Board of Directors. The Board of Directors may increase the maximmn annual Association assessment in an amount not to exceed the greater of (i) twenty percent (20%) of the previous year's Association assessment or (ii) the percentage increase in the most recently published US Department of Labor, Bureau of Labor Statistics, Consmner Price Index (Urban Wage Earners and Clerical Workers, Minneapolis-St. Paul Index, All Items), compared to the same index published 12 months earlier, Any increase in excess of this amount shall require the approval of sixty-seven percent (67%) of the Members of a class who are voting in person or by proxy, Section 6.4 Special Assessments for Capital Improvements. In addition to annual assessment authorized above, the Association may levy, in any calendar year, one or more special assessments applicable to that year only for the purpose of defraying in whole or in part, the cost of any construction, reconstruction, repair or replacement (i) of capital improvements upon the Common Property, including fixtures and personal property related thereto or, (ii) capital equipment to be owned by the Association; provided that each such assessments shall have the assent of two-third (2/3) of the votes of each class of Members who are voting in person or by proxy at a meeting duly called for this purpose. Special assessments shall be due and payable as determined by the board, Section 6.5 Notice of Quorum for Any Action Authorized under Sections 6.3 or 6.4 Written notice for any meeting called for the purpose of taking any action authorized under Section 6.3 or 6.4 shall be sent to all Members not less than 30 days nor more than 60 in advance 0 the meeting. At the first such meeting called, the presence of Members or of proxies x Doc# 1525398\1 . entitled to case sixty percent (60%) of all the votes of each class of membership shall constitute a quorum, If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorwn at the subsequent meeting shall be one-half (1/2) of the required quorwn at the preceding meeting, No such subsequent meeting shall be held more than 60 days following the preceding meeting, Section 6,6 Rate of Assessment. Both annual and special assessments shall be fixed at a pro-rata rate for all Lots when the Property is based on the square feet of the Building or Buildings on each Lot. Section 6,7 Date of Commencement of Annual Assessments; Due Dates, The Board shall fix the amount of the annual assessment provided for herein with the occupancy against each Lot at least fifteen (15) days in advance of each annual assessment period. The initial annual assessment period shall commence as to all Lots on the first day of the month following the conveyance of the Common Property to the Association and shall run through and including the next succeeding December 31, Each succeeding annual assessment period shall be a calendar year. Written notice of the annual assessment shall be sent to every Owner, Initially, annual assessments shall be due and payable in four equal quarterly installments on the first day of each quarter, beginning on the first day of January and the 151 day - of each April, July, October and January thereafter. Section 6.8 Certificate of Payment. The Association shall, upon demand and free of charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid in full and, if not paid in full, stating which assessments are unpaid, A properly executed certificate of the Association as to the status of assessments on a Lot shall be binding upon the Association as of the date of its issuance, Section 6,9 Remedies for Non-Payment of Assessments. a. If any assessment is not paid on or before its due date, the Association may impose interest from the due date at the rate of eight percent (8%) per annum, and/or bring an action at law against the Owner personally obligated to pay the same or foreclose the lien by action in the manner provided for foreclosure of mortgage liens. Each Owner, by acceptance of any conveyance of any interest in the Property, grants to the Association a power of sale to accomplish the foreclosure and sale of each Owner's lot. In a foreclosure action, the Association shall be entitled to recover, in addition to the principal amount of assessments, all costs of collection, including interest, attorney's fees and the cost of prosecuting such action and filing any liens. In addition, the Association may impose an administrative charge of up to 25 % of the delinquent installments for each delinquent installment of assessments, and/or involve any other remedies Xl Doc# 1525398\1 . or sanction set forth in Article XIII. All remedies shall be cumulative, and the exercise of one remedy shall not constitute a waiver of any other. b, No Owner may waive or otherwise escape liability for any assessments or other obligations impose under the Governing Documents or Rules and Regulations by non-use or waiver of any rights in the Common Property or abandonment of his or her Lot. Section 6,10 Subordination of Lien to Mortgages. The lien of the assessments provided for herein shall be subordinate to the lien of any First Mortgage now or hereafter placed upon a Lot; provided, however, that such subordination shall apply only to the assessments which have become due and payable prior to the date of expiration of the period of redemption following a mortgage foreclosure sale, or the date of any sale or transfer in lieu offoreclosure, Upon the expiration of the period of redemption of a mortgage foreclosure sale, or the delivery of a deed or other transfer in lieu of foreclosure, the interest of the holder of the Sheriffs Certificate or other instrument of transfer shall be prior and superior to the lien of any assessments then against the Lot, and such assessments shall, at the option of the Association become a lien against all of the Lots in equal shares. Any sale or transfer shall not release a Lot from liability for any assessment thereafter becoming due, nor from a lien of any subsequent assessment. Section 6.11 Assessments by Municipal Government. It is expressly declared that the foregoing Sections of this Article shall not in any way interfere with, abrogate, or affect the power of any local governmental authority to levy and collect taxes and special assessments. ARTICLE VII. INSURANCE AND RECONSTRUCTION Section 7,1 Liability Insurance; Fidelity Bonds, The Board of Directors of the Association or its duly authorized agent, shall obtain a broad for of public liability insurance insuring the Association, with such limits of liability as the Association shall determine to be necessary, against all acts, omissions to act and negligence of the Association, its employees and agents, The Association's Board of Directors shall also provide fidelity bonds providing protection to the Association against loss by reason of acts of fraud or dishonesty on the part of the Association's Directors, manager, officers, employees or volunteers who are responsible for the handling of funds of the Association in an amount sufficient to provide no less protection than one and one-half (1 II2) times the estimated annual operating expenses and reserves ofthe Association. ARTICLE VIII. xii Doc# 1525398\1 . ARCHITECTURAL CONTROL Section 8.1 Review by Architectural Control Committee. No building, structure, fence, wall, patio or other structure shall be commenced, constructed, altered or maintained upon any Lot, or portion thereof, nor shall any exterior addition to or change or alteration therein be made, unless and until the plans and specifications, proposals, site plans, and certificate of survey showing the nature, kind, shape, height, materials, color, surrounding landscaping, and location of the same (hereinafter collectively referred to as "plans") shall have been filed in writing with and have been approved by the Architectural Control Committee, These submitted plans shall contain details of design, elevation, site grade, fencing and location and dimensions of structures, walks and driveways and shall also state the type of construction and materials to be used in construction. The basis for review and approval of such plans shall be the guidelines and standards established by the Declarant in the Andover Station Design Standards, a copy of which is on file at the offices of the Declarant. The Architectural Control Committee shall not unreasonably withhold approval of any plan submitted pursuant hereto; provided, however, that failure to meet the covenants and restrictions, and conditions contained herein shall be grounds for the Architectural Control Committee reasonable disapproval of such plans. Plans approved by the Architectural Control Committee-shall permit the Owner of a Lot to construct in accordance with said plans and in conformity with the applicable codes ofthe City of Andover, Minnesota, as the case may be, Excavation or construction shall not be commenced until approval therefore has been received from the Architectural Control Committee in writing, or in the form of an approved signature upon said plans, All buildings, structures, or improvements must be completed within twelve (12) months of the approval of commencement of construction by Declarant; otherwise, all approvals become null and void. Any deviation in construction on any Lot from approved plans, which in the judgment of the Architectural Control Committee is of substantial detriment to the appearance of the structure or the surrounding area, shall be corrected to conform to the approved plans at the expense of the Owner and that Lot. The Architectural Control Committee must approve any and all privacy fences prior to their construction. Section 8.2 Architectural Liability, Neither Declarant or the Architectural Control Committee shall be liable to anyone in damages who has submitted plans for approval, or to any Owner by reason of mistake in judgment, negligence, or nonfeasance or themselves, their agents or employees arising out of or in connection with the approval or disapproval of any such plans, Declarant and the Architectural Control Committee shall be concerned about aesthetic characteristics and compliance with these Declarations and does not assert architectural expertise, It is the sole duty and responsibility of the applicant to employ an architect or other person to design the requested modification in a safe and architecturally sound manner. Each Owner of any interest in Andover Xlll Doc# 1525398\1 . . Station, their heirs, successors and assigns, as a condition oftheir ownership, waives any right to damages which result from architectural designs requested by Declarant or the Architectural Control Committee. Declarant and the Architectural Control Committee shall exercise their best judgment as to aesthetic characteristics of architectural design and their judgment shall be final. Section 8.3 Relief Against Owners. a. If construction of or exterior changes to a dwelling or other improvement are commenced without approval of the plans and specifications, or if construction of or exterior changes to a dwelling or other improvements are completed not in accordance with approved plans and specifications, the Association or any Owner of a Lot in the Properties, may bring an action to enjoin further construction and compel the offending Owner to conform the dwelling or other improvement with plans and specifications approved by the Architectural Control Committee, provided that such action shall be commenced and a notice Lis Pendens shall be filed no later than ninety (90) days after the date on which the certificate of occupancy is issued by the appropriate municipal authority, in the case of a dwelling, or the date of completion, in the case of any other improvement. b. If the Association or complaining Owner prevails as to any relief sought in any action brought to enforce compliance with this Article, it shall be entitled to recover from the offending Owner reasonable attorney's fees and costs shall be a lien against the offending Owner's Lot and in personal obligation of the offending Owner. In addition, the Association shall have the right to restore any Lot to its prior condition, if any alteration was made in violation of this Article, and the costs of such restoration shall be a personal obligation of the offending Owner and a lien against such Owner's Lot. Section 8.4 Relief Against Architectural Control Committee, In the event that the Architectural Control Committee and/or the members of the Architectural Control Committee shall fail to discharge their respective obligations under this Article, then any Owner of a Lot in the Properties may bring an action to compel the discharge of said obligations. Such an action shall, be the exclusive remedy of any Owner of a Lot in the Properties for failure of the Architectural Control Committee and/or its member to discharge such obligations. Under no circumstances shall the Architectural Control Committee and/or its members be liable to any person for damages (direct, consequential or otherwise). Section 8.5 Retention of Records. The Board of Directors shall retain for a period often (10) years all plans and specifications submitted to the Architectural Control Committee and a record of all actions taken with regard to them, XlV Doc# 1525398\1 . . ARTICLE IX MAINTENANCE OF COMMON PROPERTY Section 9.1 Maintenance and Repair, The Association shall provide for the maintenance and repair of the Common Property and Andover Station Improvements, The Association shall also provide and is hereby given the right to enter upon the Lots to maintain the Areas of the Lots lying outside of a Building which contain driveways, sidewalks or landscaping including trees, shrubs and grass. Maintenance and repair shall be determined and implemented from time to time by the Board of Directors at its sole discretion and assessed against all the Owners pursuant to Article VI of this Declaration, Section 9,2 Damage by Owner If, in the judgment of the Board of Directors, the need for maintenance, repair or replacement, by the Association of any part of the Common Property or Andover Station Improvements is caused by willful or negligent act of an Owner of Occupant of their guests, the cost of such maintenance or repair may be added to become part of the assessment to which such Owner and his or her Lot are subject, rather than assessed against all Owners, -~ ARTICLE X, EASEMENTS Section 10.1 Platted Easements All Lots shall be subject to the utility, drainage and street easements dedicated in the plat of Andover Station. Section 10.2 Other Easements. Certain Lots shall be subject to easements in favor of the Association for the construction, maintenance, use and repair of sidewalks and entry monuments, Deeds to those certain Lots, shall reserve an easement in favor of the Association or reserve the right of the Declarant to convey an easement in favor of the Association for purposes of the sidewalks, ARTICLE XI. RIGHTS OF FIRST MORTGAGEES Section 11.1 Changes in Rights Any amendment to this Declaration which either restricts the rights granted by this Declaration to anyone or more First Mortgagees or which deals with the subject matter as an amendment as hereinafter described must be approved by the vote of seventy-five percent (75%) xv Doc# 1525398\1 . . of the votes of all Owners (other than the sponsor, builder or Declarants) entitled to vote, in person or by proxy, at a meeting duly called for such purpose, and by the written consent of seventy-five percent (75%) of the First Mortgagees (based upon one vote for each Lot subject to a First Mortgage); to wit: a. Any amendment which authorizes or allows the Association to abandon, partition, subdivide, encumber, mortgage, sell or transfer the Common Property; provided, however, that to the extent that the Association is requested to do so (and has a legal interest therefore) the granting of easements for public utilities consistent with the intended use of the Property shall not be deemed a transfer within the meaning of the foregoing prohibition; and b. Any amendment which changes the method of determining the obligations, assessments, dues or other charges which may be levied against an Owner, including specifically the ratio of assessments against an Owner, or which otherwise changes the pro rata interest or obligations of any individual Lot for the purpose of allocating distributions of hazard insurance proceeds or condemnation awards or determining the share of the Owner of such Lot in the Common Property; and - c, Any amendment which shall operate to waive or abandon the scheme of regulation or enforcement pertaining to architectural design or exterior maintenance and appearance of the homes or garages or the maintenance of the Common Property; and d, Any amendment which shall have as its effect the release of the Association from its duty to maintain insurance coverage as provided in Article VII; and e. Any amendment which would permit the partition or subdivision of any Lot. Section 11,2 Notice of Defaults In the event of a default in the keeping of the terms of the Governing Documents by an Owner or any person violating or attempting to violate the same, and provided such default has not been cured within sixty (60) days from the date of the default, the Association agrees to give notice of such default in such specificity as fully informs the recipient, such notice to be given to the First Mortgagee of the Owner who has committed or permitted the default. Each First Mortgagee shall register with the Secretary of the Association its name, address, the Lot against which its mortgage lies and the name of the mortgagor, and shall further notify the Association upon the satisfaction of such mortgage, Notice shall be given to the First Mortgagee by mailing the same postage prepaid to the address of the First Mortgagee stated on the books of the Association. XVI Doc# 1525398\1 Section 11.3 Right to Cure Certain Defaults First Mortgagees may, jointly or singly, pay taxes or other charges which are in default and which mayor have become a charge against the Common Property and may pay overdue premiums on insurance policies, or secure new insurance coverage on the lapse of a policy, for such Common Property. First Mortgagees making such payments shall be entitled to immediate reimbursement therefore from the Association, Section 11.4 Right to Examine Records First Mortgagees shall have the right to examine the books and records of the Association during the regular business hours upon reasonable notice, which shall not be less than three (3) business days. Section 11.5 Inapplicability of Association liens The Purchaser at a foreclosure sale, in addition to taking the Lot free and clear of the lien of all assessments of the Association arising subsequent to the recordation of the lien of the mortgage deed foreclosed, shall take the Lot free and clear, and shall have the right to sell the same free from any such liens, but shall be subject to any liens arising after the foreclosure sale. - ARTICLE XII. AMENDMENTS This Declaration may be amended by the Association with approval of the Owners of not less than seventy-five percent (75%) of the Lots and ratification by the Declarant, in writing or at a duly constituted meeting of the Association held for such purposes, subject to the rights of First Mortgages as set forth in Article XI. In the case of approval of an amendment at a special or annual meeting of Association members, a copy of the proposed amendment shall be delivered to the Owners by the same means and at the same time as the notice of the meeting. Whenever such as an amendment has been so approved, it shall be recorded in the form substantially similar to this Declaration with the Anoka County Registrar of Titles and shall not be effective until so recorded, The Association shall have the power and authority to certify such approval, and such certification shall be sufficient evidence of approval for all purposes including recording. ARTICLE XIII, COMPLIANCE, SANCTIONS AND REMEDIES Each Owner and Occupant shall be governed by and shall comply with the provisions of the Governing Documents, and such amendments thereto as may be made from time to time, A failure to comply shall entitle the Association (and/or Owners in certain stated instances) to the following relief: XVll Doc# 1525398\1 . . Section 13.1 Entitlement to Relief, An Owner or the Association may commence legal action to recover sums due, for damages, injunction relief, foreclosure of lien or any combination thereof, or any action for any other relief authorized by the Governing Documents as available at law or in equity, Relief may be sought by the Association or, if appropriate, by an aggrieved Owner, but in no case may any Owner or Occupant withhold any assessments due and payable to the Association, or take (or omit) other action in violation of the Governing Documents, as a measure to enforce such Owners or Occupant's position, or for any other reason. Section 13.2 Sanctions and Remedies. In addition to any other remedies or sanction, express or implied, administrative or legal, the Association shall have the right, but not the obligation, to implement anyone or more of the following actions against Owners and Occupant's who violate (or whose guests violate) the provisions of the Governing Documents: a, Impose interest charges at the highest rate allowed by law for any delinquent assessment payments. b. Impose administrative charges (in addition to interest), in amount up to 25% of each delinquent installment for each such delinquent assessment , payment. c. In the event of default of more than thirty (30) days in the payment of any assessments or installment thereof, all remaining installment of assessments assess against the defaulting Owner or Occupant may be accelerated and then shall be payable in full, forthwith at the call of the Board of Directors. Prior written notices of such acceleration shall be given to the defaulting Owner or Occupant. d, Impose reasonable monetary penalties for each violation of the Governing Documents, and the Rules and Regulation and for the continuing violation thereof, other than delinquent assessment payments, e, Foreclose any lien arising under the provision of the Governing Documents or under law, in the manner provided for in the foreclosure of mortgages in the state where the property is located. Any assessment, charges, penalties, or interest imposed under this Article XIII shall be a lien against the Lot of the Owner or Occupant against whom the same are imposed in the same manner as a lien for Common Expenses, and shall also be an obligation of such Owner of Occupant, The lien shall attach as of the date of imposition of the Remedy, but shall not be final as to violations appealed under Section 13.3 until affirmed in writing following the hearing provided for in Section 13.3. xviii Doc# 1525398\1 . . Section 13.3 Right to a Hearing, In the case of imposition of any of the remedies authorized by Section 13.2, Paragraph d, the Board of Directors shall cause to be mailed or delivered to the Owner or Occupant against whom the remedy is sought to be imposed written notice specifying the general nature of the violation, the remedy to be imposed written notice specifying the general nature of the violation, the remedy to be imposed and the effective date of such imposition, which notice must be delivered at least ten (10) days prior to such effective date. Said Owner or Occupant shall have the right, upon written request delivered to the Board of Directors, to a hearing before the Board of Directors or a committee of no fewer than three disinterested persons appointed by the Board to hear such matters. The hearing shall be set by the Board at a reasonable time and place, with reasonable notice to the parties involved, but in no case later than 30 days after the request for a hearing, The Board of Directors shall establish, and make known to all parties involved, uniform and fair rules for the conduct of such hearing, including without limitation the right of interested parties to appear and be heard. If a hearing is requested, the remedy imposed shall not take effect until the hearing is completed or the matter is otherwise resolved by mutual agreement of the Board of Directors and the person against whom the remedy is sought, whichever event occurs first, provided, however, that if the person or persons against' whom the remedy is sought do not appear at their duly noticed hearing, the remedy imposed may be enforced forthwith, The- decision of the Board, or the hearing committee, and the rules for the conduct of hearings established by the Board, shall be final and binding on all parties. The rights bestowed upon Owners and Occupants by this paragraph 13.3 shall be the sole and exclusive remedy of such Owners and Occupants with respect to the matters covered by this Article, except as may be specifically authorized by statute or by the Governing Documents. Section 13.4 Costs of Proceeding and Attorney Fees, In any legal or arbitration proceeding (exclusive of any proceeding authorized under this Article XIII) arising between the Association and an Owner or Occupant, or between Owners or Occupants, because of an alleged default or violation by any Owner or Occupant, the Association shall, if it prevails as to any material part of the relief sought, be entitled to recover the costs of the proceeding and such reasonable attorney's fees as may be determined by the court or arbitration board, In any situation in which the Association has incurred costs and expenses, including attorney's fees, in order to collect unpaid monthly assessments or to correct any other default or violation by an Owner or Occupant of the provisions of the Governing Document, the Owner of the Documents who has caused the Association to incur such costs and expenses shall be responsible therefore, and such costs and expenses shall become an assessment against such Owner's and Occupant's Lot. Section 13.5 Liability for Owner's and Occupants' Acts, All Owners and Occupants shall be liable for the expense of any maintenance, repair or replacement rendered necessary by their willful acts or negligence, or by that of their guests, but X1X Doc# 1525398\1 . . . only to the extent that such expense is not met by the proceeds of insurance carried by the Association or such Owner of Occupant. ARTICLE XIV, GENERAL PROVISIONS Section 14.1 Duration. The covenants, restrictions, conditions and reservation imposed and created by this Declaration shall bind the property for a period of thirty (30) years from the date of recordation of this Declaration, After the expiration of said thirty (30) year period, all of such covenants, restrictions, conditions and reservations shall continue to run with and bind the Property for successive periods often (10) years unless revoked by Members entitled to cast at least ninety percent (90%) of each class of votes and evidence by a recorded instrument executed by a duly authorized officer of the Association and such percentage of First Mortgagees as may be required by Article XI. Section 14,2 Notices. Any notice required to be sent to any person or entity under the provisions of this Declaration shall be deemed to have been properly sent when mailed, postage paid, to the last known address of the person on the records of the Association at the time of such mailing, except for registrations pursuant to Section 3.1, b, which shall be effective upon receipt by the Association. Section 14.3 Construction, This Declaration shall be construed under the laws of the State of Minnesota, The singular shall be deemed to include the plural wherever appropriate and unless the contest clearly indicates to the contrary, any obligations and duties as of the owners shall be joint and several. Invalidation of anyone of these covenants or restriction by judgment or court order, or otherwise, shall in no way affect the validity of any other provision. Section 14.4 Invalidation Invalidation of anyone of these covenants or restrictions by judgment or court order, or otherwise, shall in no way affect the validity of any other provision. ANDOVER ECONOMIC DEVELOPMENT AUTHORITY By By Chairman Executive Director xx Doc# 1525398\1 . . STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) On this _ day of , 2002, before me, a Notary Public within and for said County, personally knO\V11, who, being each by me duly sworn did say that they are respectively the Chairman and Executive Director of the Andover Economic Development Authority, a body corporate and political, the Municipal Corporation named in the foregoing instrument, and the seal affixed to said instrument is the corporate seal of said Municipal Corporation, and the said instrument was signed and sealed on behalf of said Municipal Corporation by authority of the Andover Economic Development Authority and said and acknowledged said instrument to be the free act and deed of said Municipal Corporation, Notary Public - THIS INSTRUMENT WAS DRAFTED BY: William G. Hawkins William G. Hawkins and Associates 2140 Fourth Avenue North Andover, Minnesota 55304 (763) 427-8877 XXI Doc# 1525398\1