Loading...
95-07 HRA Resolution . . . Resolution 95-7 September 12, 1995 Commissioner Russell introduced the following resolution and moved its adoption: RESOLUTION APPROVING SALE OF CERTAIN REAL PROPERTY IN THE GOLDEN HILLS REDEVELOPMENT AREA TO MEPC AMERICAN PROPERTIES, INC. WHEREAS, the Housing and Redevelopment Authority in and for the City of Golden Valley, Minnesota (hereinafter referred to as the "HRA"), and the City Council of the City of Golden Valley, Minnesota have approved the Golden Hills Redevelopment Plan; and WHEREAS, the Golden Hills Redevelopment Plan contemplates the redevelopment of the West Area in office, office warehouse, office service and light manufacturing; and WHEREAS, MEPC American Properties, Inc. a Delaware Corporation (hereinafter referred to as "developer") has made a proposal for the construction of an 88,000 sq. ft. office/warehouse; and WHEREAS, the HRA has reviewed the terms of the proposal made by the Developer and they appear to be reasonable and within the overall guidelines for redevelopment of the Golden Hills Redevelopment Area; and WHEREAS, the HRA has determined the use value of the real property contemplated by the Developer's proposal; and WHEREAS, pursuant to Minnesota Statutes S469.029 the HRA has duly given notice in the form attached as Exhibit A of a public hearing on the proposed sale of the property legally described as Lot 2, Block 1, Golden Hills West Second Addition, Hennepin County, Minnesota, according to the plat thereof (hereinafter the "Subject Property") and has duly held said public hearing. NOW, THEREFORE, BE IT RESOLVED, that the HRA does hereby make the following findings and determinations: 1. Proper published notice of the proposed sale of the Subject Property described above has been given and a public hearing has been held thereon, all in accordance with the provisions of Minnesota Statutes S469.029; and, 2. The use of the Subject Property proposed by the Developer is reasonably within the overall guidelines of the Golden Hills Redevelopment Plan; and, . . . Resolution 95-7 - Continued September 12, 1995 3. The use value of the Subject Property is hereby established as $2.60 per sq. ft..; and, 4. In consideration of the restrictions on the sale and use of the Subject Property imposed by Minnesota Statute 9469.029 and the restrictions imposed by the Golden Hills Redevelopment Plan, sale of the Subject Property to the Developer at $2.60 per sq. ft. is appropriate. BE IT FURTHER RESOLVED that: 1. The sale of Subject Property to the Developer on the terms and conditions set forth in the development agreement attached hereto as Exhibit B is hereby approved; and 2. The Chair of the HRA and the Director of the HRA are hereby authorized to execute the necessary documents and close the sale of the Subject Property to the Developer pursuant to the terms and restrictions provided hereby; and 3. The Director of the HRA is hereby authorized and empowered to perform the obligations imposed on the HRA under the private development ag reement. ~~A,~ David A. Thompson, Chair ATTEST: Motion for the ad t on of the foregoing resolution was seconded by Commissioner Mic ; and upon a vote taken thereon, the following voted in favor thereof: Johnson, Micks, Russell, Thompson and Tremere; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Chair and his signature attested by the Director. . . . Resolution 95-7 - Continued EXHIBIT A September 12, 1995 NOTICE OF PUBLIC HEARING (APPROVAL OF SALE OF CERTAIN REAL PROPERTY TO MEPC AMERICAN PROPERTIES INC. FOR REDEVELOPMENT) NOTICE IS HEREBY GIVEN that the Housing and Redevelopment Authority (HRA) of Golden Valley, Minnesota will meet at the Golden Valley City Hall, Council Chambers, 7800 Golden Valley Road, on Tuesday, September 12, 1995, at 7:00 PM and will then and there consider the sale and terms of sale of the following described tract located south of Laurel Avenue and west of the CP Rail tracks, Golden Valley, Minnesota, to MEPC American Properties, Inc. for redevelopment pursuant to Minnesota Statutes Section 469.029. The legal description is as follows: Lot 2, Block 1, Golden Hills Second Addition, Hennepin County, Minnesota, according to the recorded plat thereof. The proposal is to construct an 88,000 sq. ft. office warehouse facility on this site. All interested parties may appear in person or by counsel and be heard. BY THE HOUSING AND REDEVELOPMENT AUTHORITY Is/ William S. Joynes, HRA Director . . . 6t2lb/AlAL ((,E.C6\H)E.\) lollllcts. Resolution 95-7 - Continued 1)~JiUiI:r<8./..~,==,-ClIo <s, September 12, 1995 SECOND MEPC PRIVATE DEVELOPMENT AGREEMENT THIS AGREEMENT, effective as of :5t::PTfmf)F~ l2., 1995, is made and entered into by and between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY, a public body corporate established and existing under Minnesota Statutes, Section 469.001 ~ seq., with its principal offices at 7800 Golden Valley Road, Golden Valley, Minnesota 55427 (the "HRA"), and MEPC AMERICAN PROPERTIES, INC., a Delaware corporation with its Minnesota office located at 1550 Utica Avenue South, Suite 120, Minneapolis, Minnesota 55416 ("Developer"). WHEREAS, the HRA and the City of Golden Valley (the "City") adopted the Golden Hills Redevelopment Plan (the "Plan") in October of 1984, and have since made certain amendments thereto, for the purpose of redeveloping approximately 50 acres located in the City of Golden Valley (the "Redevelopment Area"); and WHEREAS, the Redevelopment Area has been designated as a tax increment district pursuant to applicable Minnesota statutes; and WHEREAS, the Plan is intended to encourage private development of the Redevelopment Area through various forms of government aid and financial assistance; and WHEREAS, Developer has submitted to the HRA a proposal for the development of an office/warehouse project with approximately 88,000 square feet, plus a drainage system and drainage pond (the "Project") on a site in the Redevelopment Area legally described in attached Exhibit A (the "Development property"); and WHEREAS, following its completion of the project, Developer intends to lease the office/warehouse facility to CyberOptics Corporation, a manufacturer of optical lasers and related equipment; and WHEREAS, the HRA, after public hearing, has approved the Project as being consistent with the provisions of the Plan; and . WHEREAS, Minnesota'-Statutes, Section 469.029, requires the adoption of a development agreement between the parties setting forth the mutual rights and obligations of the parties in accordance with the provisions of the Plan; NOW, THEREFORE, in consideration of the foregoing, and in consideration of the mutual terms and conditions contained herein, the parties hereby agree as follows: \ " . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 TABLE OF CONTENTS Article I - Definitions 1.1. Definitions Article II - Reoresentations and Warranties 2.1. . 2.2. Representations and Warranties by the HRA Representations and Warranties by Developer Article III - Title and Other Matters 3.1. 3.2. 3.3 3.4. 3.5. 3.6. 3.7. 3.8. 3.9. 3.10. Marketable Title Survey and Replatting Environmental Matters Real Estate Taxes and Special Assessments Deed Easement and Option Agreement Recording Use Condemnation Future Development . Article IV - Construction of Imorovements 4.1. 4.2. 4.3. 4.4. 4.5. Construction of Improvements Commencement and Completion of Construction Certificate of Completion Deposit and Reimbursement of HRA Expenses by Developer Escrow Agreement Article V - Assessment Aqreement and Payment of Taxes 5.1. 5.2. Execution of Assessment Agreement PaYment of Taxes, Assessments, Etc. Article VI - Insurance 6.1. Insurance Article VII - Undertakinqs of the BRA 7.1. 7.2. 7.3. Sale of Development Property Limitations on Financial Undertakings of the BRA HRA to Maintain Existence . Article VIII - Mortqaqe Financinq 8.1. 8.2. 8.3. Approval of Mortgage Notice of Default; Copy to Mortgagee Mortgagee's Option to Cure Defaults 2 Paqe 4 6 7 9 9 10 12 12 13 13 13 14 14 15 15 16 17 17 18 18 18 21 21 22 22 23 23 . . . Resolution 95-7 - Continued 8.4. 8.5. EXHIBIT B September 12, 1995 HRA's Option to Cure Default on Mortgage Subordinate Liens Article IX - Restrictions on Transfer: Indemnification 9.1. 9.2. Restrictions on Transfer Indemnification Article X - Events of Default 10.1. 10.2. 10.3. 10.4. Events of Default Defined Remedies on Default No Remedy Exclusive No Additional Waiver Implied by One Waiver Article XI - Additional Provisions 11.1. 11.2. 11.3. 11.4. 11.5. 11.6. 11.7. 11.8. 11.9. 11.10. 11.11- 11.12. Equal EmploYment Opportunity Not for Speculation Titles of Articles and Sections Notices and Demands Counterparts Modification Interpretation and Amendment Severability Duration Binding Effect Consents Certificates Article XII - Termination of Aqreement 12.1. 12.2. Developer's Options to Terminate Effect of Termination Exhibits: A Legal Description B Assessment Agreement B-1 Legal Description B-2 Assessor's Certification C Certificate of Completion D Preliminary Plans E Demolition Specifications F Limited Warranty Deed G Easement and Option Agreement H Escrow Agreement 3 24 25 25 26 26 27 28. 28 29 29. 29 29 29 29 30 30 30 30 30 30 30 31 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Aqreement" means this Private Development Agreement by and between The Housing and Redevelopment Authority in and for the City of Golden Valley, Minnesota, and MEPC American Properties, Inc., a Delaware corporation, as the same may be from time to time modified, amended or supplemented. "Assessment Aqreement" means the assessment agreement to.be executed by the HRA and Developer, and certified by the Assessor for Hennepin County, pursuant to the provisions and requirements of Minnesota Statutes, Section 469.177, Subdivision 8, establishing the Assessor's Minimum Market Value for the Improved Parcel, a copy of which is attached hereto as Exhibit B. "Assessor's Minimum Market Value" means the agreed minimum market value for calculation of real estate taxes certified by the Assessor for Hennepin County for the Improved Parcel pursuant to the Assessment Agreement. . "Certificate of Completion" means the certification, in the form of the certificate contained in Exhibit C attached to and made a part of this Agreement, provided to Developer pursuant to Section 4.3 of this Agreement upon satisfactory completion of the Improvements. "city" means the City of Golden Valley, Minnesota. "Closinq Date" means the date upon which the HRA, and the HRA. conveys the Development Property to Developer, which shall be on or after the date the Parties have obtained all necessary environmental assurances and consents and approvals required for construction of the Improvements, and which the Parties expect to be on or about September 14, 1995. "County" means the County of Hennepin, Minnesota. "Developer" means MEPC American Properties, Inc., a Delaware corporation, and its successors and assigns under this Agreement. . "Development Plans" means the plans, specifications, drawings, and related documents on all construction work to be performed by Developer on the Development Property, including all on-site improvements to be performed, installed or constructed upon the Development Property pursuant to this Agreement. Such plans include, for each building or other structure to be constructed on the Development Property, at least the following: (i) site plan; (ii) floor plan for each floor; (iii) elevations (all sides) and exterior materials; and (iv) landscape plan. Such plans also include the drainage system and drainage pond to 4 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 be constructed on the'Development Property by Developer, with sufficient capacity to accommodate the storm water drainage from the Development Property and the remainder of the Plan's west area. The Development Plans are attached as Exhibit D and are hereby approved. No changes, except those deemed minor by the HRA Director, shall be made to the Development Plans without prior written approval by the HRA. "Develooment Prooertv" means the real property described in Exhibit A of this Agreement. "Event of Default" means an action by Developer listed in Section 10.1 of this Agreement. "First Mortqaqe" means any first priority mortgage which is secured, in whole or in part, by Developer's interest in the Development Property, or any portion or parcel thereof, or any Improvements constructed thereon, and which is a permitted encumbrance pursuant to the provisions of Article VIII of this Agreement. "Hazardous Substances", as used in this Agreement, means pollutants, contaminants, toxic or hazardous waste or any other substances, the removal of which is required or the use of which is restricted, prohibited or penalized by "Environmental Law", which term means any federal, state or local law or ordinance relating to pollution or the protection of the environment and includes without limitation asbestos, petroleum products and underground storage tanks. "Holder" means the owner of the First Mortgage. "HRA" means The Housing and Redevelopment Authority in and for the City of Golden Valley. "Imoroved Parcel" means the Development Property and the completed Improvements, other than the portion of the Development property subject to the Easement and Option Agreement attached as Exhibit G and the Improvements thereon. "Imorovements" ,means an office/warehouse facility, containing a minimum of '-88,000 square feet, plus all other improvements, including fixtures and equipment, and including a drainage system and drainage pond with sufficient capacity to accommodate the storm water drainage from the Development Property and the remainder of the Plan's west area, to be constructed by Developer upon the Development Property pursuant to this Agreement, as such improvements are defined in the Development Plans. "Net Proceeds" means any proceeds paid by an insurer to Developer, the Holder of the First Mortgage, or the HRA under a policy or policies of insurance to be provided and maintained by Developer pursuant to Article VI of this Agreement and remaining after deducting all expenses (including reasonable fees and 5 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 disbursements of coun~el) incurred in the collection of such proceeds. "Parties" means the HRA and Developer. "Party" means either the HRA or Developer. "Plan" means the Golden Hills Redevelopment Plan, adopted by the City and the HRA in October of 1984, and as amended through the date hereof. "Pro;ect" means the construction and operation of the Improvements by Developer on the Development Property pursuant to the terms of this Agreement. "Purchase Price" means the sum of $2.60 per square foot of the Development Property, except that portion subject to the Easement and Option Agreement. "Redevelooment Area" means the approximately 100 acres located in Golden Valley, Minnesota that are subject to the Plan. "Staten means the State of Minnesota. "Tax Increment District" means the Redevelopment Area. "Tax Increment Financinq Act" means the statutes located at Minnesota Statutes, Sections 469.174 through 469.179, inclusive, as amended. "Tax Increment Financinq Plan" means the Tax Increment Financing Plan for City of Golden Valley. "Tax Official" means any City or County Assessor; County Auditor; County or State Board of Equalization; the Commissioner of Revenue of the State; or any State or Federal District Court, the Tax Court of the State or the State Supreme Court. "Unavoidable Delavs" means actual delays due to events directly affecting the Project which are beyond the control of the Parties, including but not limited to actions of governmental authorities other than the City or the HRA, labor disputes, unusually severe or prolonged bad weather, acts of God, civil disturbances, accidents, fire or other casualty, shortage of labor or materials, injunctions, or other court or administrative orders. ARTICLE II Reoresentations and Warranties Section 2.1. Reoresentations and warranties bv the HRA. The HRA represents and warrants that: 6 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . (a) The H~ has the power to enter into this Agreement and carry out its obligations hereunder. (b) The Redevelopment Area constitutes a Redevelopment Project pursuant to Minnesota Statutes, Section 469.002, and a Tax Increment District pursuant to Minnesota Statutes, Section 469.042, and is an "existing project" pursuant to Minnesota Statutes, Section 469.179. (c) The HRA has examined this Agreement, and has determined that its terms and provisions are in accordance with the objectives embodied in the Plan, and are in the best interests of the City and its residents. (d) The Project, as defined and described in this Agreement, is in conformance with the Plan. (e) The HRA is the fee owner of the Development Property. (f) All improvements previously on the Development Property, other than the buildings and adjacent asphalt parking lot previously owned and occupied by Midland Welding, have been demolished in accordance with the specifications attached as Exhibit E. . (g) There are no legal proceedings pending, or known to be threatened or contemplated, to which the HRA is a party, or to which any property of the HRA is subject, which, if determined adversely, would individually or in the aggregate have a material adverse effect on the HRA's financial position, or prevent or impair the HRA's ability to perform any covenants or obligations under this Agreement. (h) Developer shall have the permanent right to cross the railroad spur on the northerly side of the Development Property from Laurel Avenue at three locations. The above representations and warranties are true and complete as o~ the date hereof, shall be true and complete as of the Closing Date, and shall survive".the Closing Date. Section 2.2. Reoresentations and Warranties bv Develooer. Developer represents and warrants that: (a) Developer is a corporation duly organized under Delaware law and in good standing under the laws of the State. . (b) Developer is not in violation of any prov~s~ons in its Articles of Incorporation or Bylaws, has power to enter into this Agreement and to perform its obligations hereunder and has duly authorized the execution, delivery and performance of this Agreement by proper action, such that 7 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . this Agreement i5 and shall remain binding and enforceable against Developer according to its terms, subject to laws affecting the rights of creditors generally or principles of equity. (c) Developer shall construct, operate and maintain the Improvements upon the Development Property in accordance with the terms of this Agreement, the Plan and all local, state and federal laws and regulations. (d) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented or limited by, or in conflict with or will result in a breach of, the terms, conditions or provisions of Developer's Articles of Incorporation or Bylaws, as amended, or any indenture, mortgage, agreement or instrument of whatever nature to which Developer is now a party or by which it is bound, or will constitute a default under any of the foregoing. . (e) There are no legal proceedings pending, or known to be threatened or contemplated, to which Developer is a party, or to which any property of Developer is subject, which, if determined adversely, would individually or in the aggregate have a material adverse effect on Developer's financial position, or prevent or impair Developer's ability to perform any covenants or obligations under this Agreement. (f) Developer has previously delivered to the HRA copies of its most recent financial statements, prepared in accordance with generally accepted accounting principles; since the date of such statements, there have been no changes in Developer's financial condition which would have a material adverse effect on Developer, or which would prevent or impair Developer's ability to perform any covenants or obligations under this Agreement. (g) Developer will act in good faith and use its best efforts to obtain all consents and approvals required for construction of the. Improvements, and Developer will' comply with all reasonable requirements imposed as conditions for such consents and approvals even if such requirements involve changes to the Development Plans (so long as such changes are not substantial). The above representations and warranties are true and complete as of the date hereof, shall be true and complete as of the Closing Date, and shall survive the Closing Date. i. 8 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 ARTICLE III Title and Other Matters Section 3.1. Marketable Title. Subject to Section 7.2(e}, the HRA agrees to furnish to Developer, as soon as practicable after Developer's execution of this Agreement, a commitment for the issuance of an owner's ALTA policy of title insurance with respect to the Development Property issued by an acceptable title insurance company showing marketable title in the HRA subject only to the following: (a) Building, zoning and similar laws and ordinances. (b) Mineral rights reserved to the State of Minnesota. (c) Easements of record which will not interfere with Developer's proposed development and use of the property. (d) The lien of current real estate taxes, if any. (e) Other restrictions, if any, expressly agreed to by Developer, including those restrictions and reversionary rights contained in this Agreement. The commitment shall include searches for bankruptcies; state and federal judgments; tax and other liens; and for all special assessments, levied, pending (approved by the City Council), or deferred. The commitment shall include full mechanic's lien coverage, shall delete any exceptions for the rights of parties in possession and survey matters, and shall include copies of all documents referred to therein. The cost and expense of the title commitment and the title policy, based upqn t~e Purchase Price only, shall be paid by the HRA. Any other title costs or policies shall be paid by Developer. Developer shall be allowed 15 days after receipt of such commitment to make objections thereto, such objections to be made in writing or deemed waived. The HRA shall be permitted 120 days from and after the date of such objections to cure the same and the HRA hereby undertakes to cure such defects. If such title objections cannot be cured within 60 days, or such longer period as is agreed to by Developer, and Developer does not waive such objections, then Developer shall have the right to terminate this Agreement by giving written notice thereof to the HRA. The Closing Date shall be extended to the extent necessary during the 60-day period. The HRA has commenced a proceeding to register title for the Development Property in the Hennepin County District Court and shall use reasonable efforts to complete the proceeding as soon as practicable. Section 3.2. Survey and Reolattinq. Promptly after the execution of this Agreement, the HRA shall deliver to Developer a 9 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 survey from a registered land surveyor showing the Development Property to the nearest hundredth of a square foot, and also showing all easements of record or in use, all roads and encroachments, and any gaps or overlaps. The HRA shall undertake no replatting of the Development Property prior to its exercise of the Easement and Option Agreement described in Section 3.6, at which time the Development Property shall be subdivided and replatted at the HRA's expense. Developer agrees to cooperate with such replatting and to sign any new plat if necessary. Section 3.3. Environmental Matters. The HRA has previously delivered to Developer copies of the following reports (the "Environmental Reports") : "Supplemental Data to Phase II Investigation Report Former Bury & Carlson Asphalt Plant Site, 6008 Wayzata Blvd., Golden Valley" June 12, 1995, Dahl & Associates, Inc. "Phase II Investigation Report Former Bury & Carlson Aspha~t Plant" January 24, 1995, Dahl & Associates, Inc. Dahl & Associates, Inc. "Subsurface Investigation Report Former Bury & Carlson Asphalt Plant (MPCA Site ID # LEAK 00003598)" April 29, 1992, Braun Intertec Environmental, Inc. "1991 Annual Report for Continued Groundwater Monitoring Former Bury & Carlson Asphalt Plant" April 29, 1992, Braun Intertec Environmental, Inc. itA Report to City of Golden Valley 1990 Annual Report Former Bury & Carlson Asphalt Plant" May 23, 1991, Braun Intertec Environmental, Inc. "Underground Storage Tank Excavation Former Bury & Carlson Asphalt Plant" August 30, 1990, Braun Intertec Environmental, Inc. "EG-292 Site Study and Closure Plan Bury & Carlson Asphalt Plant Property Golden Valley, Minnesota" September 20, 1989, Braun Environmental Laboratories, Inc. "EG-168 Environmental Evaluation Bury Carlson Site Golden Valley Minnesota" June 28, 1989, Braun Environmental Laboratories, Inc. "Contaminated Soil Excavations Bury & Carlson Asphalt Plant" December 1, 1987, Braun Environmental Laboratories, Inc. The Environmental Reports describe in detail the presence of certain Hazardous Substances on and under the Development Property (the "Existing Contamination"), which the HRA and Developer have also disclosed to the Minnesota Pollution Control Agency ("MPCA") pursuant to the Voluntary Investigation and Cleanup Program ("VIC Program"). Developer and the HRA have 10 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 received from the MP~ a No-Association Determination, a No- Action Determination, and an Off-Site Source Determination contained in two letters dated July 27, 1995, one addressed to Developer and one addressed to the HRA ("MPCA Response"). The HRA covenants and agrees that prior to the Closing Date it shall comply, and Developer covenants and agrees that subsequent to the Closing Date it shall comply, with all terms of the MPCA Response and any other plans, orders, regulations or judgments concerning the Existing Contamination issued by the MPCA or any other regulatory agency. The HRA has also submitted an Excavation Soil Screening Contingency Plan, dated July 7, 1995, to the MPCA (the "Contingency Planll). To the extent required by the MPCA Response and the Contingency Plan, the HRA agrees to perform, at its expense, soil screening during excavation by Developer on the Development Property. Developer agrees to permit such soil screening and also agrees to stockpile on the Development Property any contaminated soil discovered pursuant to such soil screening to the extent such stockpiling does not conflict with construction of the Improvements. The HRA agrees to treat or. . dispose of any such contaminated soil promptly and at its expense and in compliance with all applicable laws and regulations; provided, however, that to the extent permitted by applicable law and regulation, and to the extent it is consistent with the Development Plans, Developer shall cooperate with the HRA in retaining any contaminated soil on the Development Property and/or using it in construction of the Improvements. The HRA also agrees to cap all existing monitoring wells on the Development Property at its expense and in accordance with the MPCA Response. Notwithstanding the information contained in the Environmental Reports and the MPCA Response, the HRA makes no representation or warranty, express or implied, concerning the presence on, in or under the Development Property of any Hazardous Substances, and, except as provided in the prior paragraph with respect to treatment or disposal of contaminated soil discovered during soil screening and capping of the monitoring wells, and except as provided in the following paragraph with respect to construction of the drainage system and pond, the HRA disclaims any and all liability and responsibility to Developer in connection therewith. Such disclaimer shall not be construed to release or relieve the HRA from liability or responsibility to any parties, private or public, other than Developer, in connection therewith. If any Hazardous Substances (unless released by Developer or its agents) are discovered at any time during Developer's ownership or construction of the drainage system and pond in, under and about that portion of the Development Property subject to the Easement and Option Agreement, Developer shall immediately notify the HRA of the discovery. The HRA shall promptly devise a plan for dealing with the Hazardous Substances which mayor may not include prompt remediation thereof. Developer shall not take any action to re~ediate, treat or dispose of such Hazardous Substances, or incur any other cost or expense in connection therewith, without the HRA's prior approval, unless Developer elects to take such action or assume such cost or expense at its 11 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 own expense and without any liability to the HRA. If the discovery of any Hazardous Substances delays construction of the drainage system and drainage pond, the HRA and Developer shall cooperate to create temporary ponding so as not to delay completion or use of the building Improvements. Subject to the foregoing, the HRA shall indemnify and hold Developer harmless from and against any loss, cost, damage or expense resulting from claims, demands or actions by governmental authorities, private persons, or property owners with respect to Hazardous Substances in, under or about that portion of the Development Property subject to the Easement and Option Agreement, except to the extent such Hazardous Substances are released by Developer or its agents or to the extent of any other wrongful act or omission of Developer or its agents. Section 3.4. Real Estate Taxes and Soecial Assessments. The HRA represents that no property taxes are due and payable on the Development Property in the year of closing. The HRA shall pay in full all special assessments against the Development Property which are levied or pending (approved by the City Council) as of the Closing Date. Developer shall pay all real estate taxes, and installments of special assessments payable therewith, which become payable after December 31, 1995. The HRA also agrees that Developer shall not be assessed for the cost of contructing the drainage system, drainage pond and any new road and railroad crossing providing access to the Development Property from the south. Section 3.5. Deed. Upon tender to the HRA on the Closing Date of the Purchase Price for the Development Property from Developer, the HRA shall deliver to Developer a limited warranty deed for the Development Property in the form attached as Exhibit F (the "Deed"). The Deed shall be subject to the restrictions, reservations and encumbrances of record, if any, a drainage utility and access easement over the easterly 30 feet of the Development Property, all building and zoning laws and ordinances and all other local, state, and federal laws and regulations, the terms and conditions of this Agreement, and such other encumbrances as the HRA and Developer shall mutually agree. The Deed shall contain a forfeiture clause providing for revesting of title of the Development Property in the HRA, subject to the rights of the Holder of ' a First Mortgage, upon the occurrence of an Event of Default (as defined in Section 10.1 hereof) and expiration of any period to cure such Event of Default provided in Section 10.2 hereof prior to issuance of the Certificate of Completion. The Purchase Price shall be due and payable in full at closing in cash, or by cashier's or certified check. Delivery of the Deed shall not cause termination of any provisions of this Agreement or the Assessment Agreement, except where expressly provided in such agreements. Except as provided in Section 3.1 and Section 3.2, all costs of the conveyance of the Development Property to Developer, including any and all fees and charges relating to such conveyance, and filing or recording fees and any and all other taxes and charges payable in connection with such conveyance, if any, shall be wholly borne by Developer, except 12 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 for the state deed tax which shall be paid by the HRA on the Closing Date, and except that the HRA shall pay its own attorneys' fees. The HRA shall voluntarily take no actions to encumber title, or fail to take any action necessary to prevent encumbrance of title, between the date hereof and date of delivery of the Deed to Developer by the HRA pursuant to this Section. The HRA shall release the access easement over the easterly 30 feet of the Development Property when the roadway described in Section 7.1(b) is completed. section 3.6. Easement and option Aqreement. The Parties shall also execute on the Closing Date the Easement and option' Agreement attached as Exhibit G, whereby Developer shall grant to the HRA an easement over that portion of the Development Property described in the legal description attached to the Easement and Option Agreement for the purpose of constructing and maintaining a roadway and maintaining the drainage system and drainage pond to be constructed by Developer on the Development Property. The Easement and Option Agreement shall also entitle the HRA to purchase the property subject to the agreement for $1.00 on or before September 1, 1998, and shall require the HRA to purchase such property on such date, if the HRA has not previously exercised the option and purchased the property. Developer shall retain a permanent easement for an underground drainage pipe, the location of which shall be described in the Easement and option Agreement, plus a nonexclusive easement to use the drainage pond for stormwater runoff. Developer agrees that the HRA may assign the Easement and option Agreement to the City at any time subject to all of the terms and conditions thereof. section 3.7. Recordinq. Developer shall cause the title insurance company to promptly file the Agreement, the Deed, the Assessment Agreement and the Easement and option Agreement in the office of the Hennepin County Recorder. Developer shall pay all costs of recording, except for the State deed tax which shall be paid by the HRA on the Closing Date. section 3.8. Use. From the Closing Date through December 31, 2008, Developer shall devote the Improved Parcel Property only to use as an office/warehouse facility, as specified in this Agreement, and there shall be no unlawful discrimination in the use of the Development Property on account of race, color, religion, sex, age, national origin, or political affiliation. If the Plan is subsequently amended in a material respect, such amendment shall not bind Developer or the Development Property without Developer's consent, which consent shall not be unreasonably withheld or delayed. To the extent that there are any conflicts between this Agreement and the Plan, the provisions of this Agreement shall govern, and the approval by the HRA of this Agreement shall constitute an amendment of the Plan. 13 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 Section 3.9. Condemnation. In the event that title to and possession of the building Improvements or any material part thereof shall be taken in condemnation or by the exercise of the power of eminent domain by any governmental body or other person (except the HRA) after the Closing Date but prior to December 31, 2008, Developer shall, with reasonable promptness after such taking, notify the HRA as to the nature and extent of such taking. Upon receipt of any condemnation award, subject to the rights of the Holder of a First Mortgage, Developer shall use the entire condemnation award first to pay the reasonable costs and expenses of such taking, including but not limited to reasonable attorneys' fees and appraisers' fees, and second to reconstruct the building Improvements to the extent practicable (or, in the event only a part of the building Improvements have been taken, then to reconstruct such part) upon the Development Property. Section 3.10. Future Development. If Developer provides to the HRA, on or before December 31, 1996, a written notice of its intent to construct at least 80,000 square feet of additional . office or office/warehouse improvements on the parcel immediately to the west of the Development Property (the "Parcel"), and if such notice includes preliminary plans for such improvements that conform with all applicable City requirements, the HRA shall reasonably and in good faith determine, and notify Developer within 30 days of its receipt of the notice from Developer, the following: (a) whether the planned improvements are compatible with the Plan and the Improvements and in the best interests of the City, and (b) the market value of the Parcel based on a then- current appraisal by an independent, qualified appraiser. If the HRA reasonably and in good faith determines that the planned improvements are compatible with the Plan and the Improvements and in the best interests of the City, the HRA shall act in good faith and use reasonable efforts to negotiate a private development agreement with Developer for the construction of such additional improvements and, to the extent necessary, to acquire the Parcel by purchase or condemnation. If the private development agreement is executed by both parties and becomes effective within 120 days of the date of Deyeloper's written notice described above, and if it provides for a closing date within 180 days of the date of the private development agreement, then the HRA shall sell the Parcel to Developer for the market value determined by the'ERA pursuant to clause (b) above. The HRA may discontinue its efforts at any time prior to execution of the private development agreement if it determines, reasonably and in good faith, that (x) the project is not in the best interests of the City, (y) the HRA's total property acquisition costs, excluding relocation costs, attorney's fees and expenses, and other administrative fees and expenses, for the Parcel and the adjacent parcel with property tax identification number 04- 117-21-23-0041, plus all leaseholds associated with the Parcel and the adjacent parcel, will exceed $2,085,000, or (z) the project is otherwise not feasible. The private development agreement shall provide that the closing date shall be delayed until the HRA completes its acquisition of all of the property. This Section is contingent on the continuation by the City and 14 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 the State of the avai[ability in its current form of tax increment financing for the HRA's costs related to acquisition and development of the Parcel. Notwithstanding any provision in this Agreement to the contrary, Developer's rights under this Section may not be assigned by Developer without the HRA's prior written consent, which consent may be granted or withheld by the HRA in its sole and absolute discretion. ARTICLE IV Construction of Imorovements Section 4.1. Construction of Imorovements. Developer agrees that it will construct the Improvements on the Development Property in substantial conformance with the approved Development Plans for the Improvements and in conformance with all applicable legal requirements. Developer agrees that the scope and scale of the Improvements to be constructed shall not be significantly less than the scope and scale of the Improvements as detailed. and outlined in the Development Plans. In connection with its construction of the Improvements, Developer shall demolish the buildings and adjacent asphalt parking lot on the Development Property that was previously owned and occupied by Midland Welding in accordance with the specifications attached as Exhibit E. Developer shall also remove the existing drainage pipe on the easterly portion of the Development Property, unless Developer's engineer, with the consent of the City Engineer, determines that the existing drainage pipe may be abandoned. Promptly after completion of such demolition and removal, the HRA shall reimburse Developer for its actual out-of-pocket costs therefor, subject to a maximum of $39,000, upon Developer's delivery to the HRA of a certified cost statement from Developer's contractor plus all necessary liem waivers. Section 4.2. Commencement and Comoletion of Construction. Developer shall commence construction of the Improvements within 30 days after the Closing Date, and shall diligently prosecute construction to completion. Developer shall complete construction of 100 percent of the Improvements, as a percentage of market value, by Sept.ember 30, 1996. The times provided herein for commencement and completion of construction shall also be extended to the extent of any Unavoidable Delays. All work with respect to the Improvements to be constructed or provided by Developer on the Development Property shall be in substantial conformity with the Development Plans as submitted by Develop~r and approved by the HRA, and in compliance with all applicable laws and regulations. Upon issuance of the Certificate of Completion, the HRA shall reimburse Developer for out-of-pocket costs and expenses actually incurred by Developer after the Closing Date for berm construction and landscaping, and for soil correction on the Development Property reasonably required to permit construction lS Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . of the Improvements, and approved in advance by the BRA. All such expenses shall be documented by invoices or other billing statements and are limited to a maximum of $100,000 for soil correction and $40,000 for berm construction and extraordinary landscaping in accordance with the Development Plans. Promptly after completion (as determined by the City Engineer ~fter his or her inspection) of the drainage system and drainage pond in accordance with the Development Plans, the terms of this Agreement and plans certified to the City Engineer by Hansen, Thorpe, Pellinen, et al., dated July 28, 1995, revised as of September 6, 1995, the HRA shall reimburse Developer for its actual out-of-pocket costs for labor and materials incurred in construction, subject to a maximum of $316,050, upon Developer's delivery to the HRA of a certified cost statement from Developer's contractor plus all necessary lien waivers. The drainage pond shall not include a fountain. Subsequent to execution of this Agreement, and until certification of the Improvements pursuant to section 4.3, Developer shall make reports to the HRA, in such detail and at such times as may reasonably be requested by the HRA, as to the actual progress of Developer with respect to construction of the Improvements. Developer also agrees that designated representatives of the BRA may enter upon the Development Property during the construction of the Improvements to inspect such construction. . The Holder of a First Mortgage shall not have any obligation to construct or complete construction of the Improvements while in possession of the Development Property pursuant to foreclosure, or conveyance by Developer to the Holder of the First Mortgage in lieu of foreclosure, except as provided in section 8.3. 4.3. certificate of Completion. (a) Promptly after completion of the Improvements in accordance with the provisions of this Agreement, the BRA will furnish Developer with a certificate of completion, in substantially the form set forth in Exhibit C attached hereto. Such certificate of Completion shall be (and it shall be so provided in the Certificate of Completion itself) a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligations of Developer to construct the Improvements. . (b) If the HRA shall refuse or fail to provide a Certificate of Completion in accordance with the provisions of this Section, the HRA shall, within ten (10) days after written request by Developer, provide Developer with a written statement, indicating in adequate detail in what respects Developer has failed to complete the Improvements in accordance with the provisions of this Agreement, or is 16 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . otherwise in default under the terms of this Agreement, and what measures or acts will be necessary, in the opinion of the HRA, for Developer to take or perform in order to obtain such Certificate of Completion. . Section 4.4. Deoosit and Reimbursement of HRA Exoenses. Developer has previously deposited $10,000 with the HRA for the reimbursement of certain out-of-pocket expenses incurred by the HRA in connection with the Project (the "Deposit"). The HRA shall treat the Deposit as a separate account on its books, but the HRAmay commingle the Deposit with its other funds for purposes of investment and ~einvestment. All interest earned on the Deposit shall accrue to the HRA. In the event the closing of the sale of the Development Property by the HRA to Developer pursuant to this Agreement does not occur by October 10, 1995, for any reason other than a default by the HRA as provided in Section 12.1(a), it being agreed that failure of the Closing to occur for one of the reasons specified in Section 7.2 shall not constitute a default by the HRA, Developer shall reimburse the HRA for the total amount of out-of-pocket expenses relating to this Agreement paid or incurred by the HRA between June 1, 1995 and October 10, 1995 or, if earlier, the date of termination of this Agreement, subject to a maximum of $10,000. When any amount becomes due and payable hereunder, the HRA shall deduct such amount from the Deposit and provide Developer with a reasonably detailed itemization therefor. After the paYment of all such amounts, the HRA shall refund to Developer the balance of the Deposit, if any. If the closing occurs prior to December 31, 1995, the Deposit shall be applied as a credit against the Purchase Price. The HRA's rights under this Section 4.4 shall not limit any other remedy to which it is entitled under this Agreement or at law or equity due to an Event of Default by Developer, except to the extent that the HRA's damages are reduced by any amounts received under this Section 4.4. The prior Reimbursem(mt Agreement between the Parties is hereby terminated. Section 4.5. Escrow Aqreement. On the Closing Date, Developer shall deliver to the HRA an Escrow Agreement substantially in the form attached as Exhibit H, executed by Developer and First Bank St. Paul (the "Bank"), and funded by Developer in the amount ".of $350,000, which shall secure Developer's obligations under this Agreement. The HRA shall promptly execute the Escrow Agreement and deliver executed copies to Developer and the Bank. The HRA's rights with respect to the Escrow Agreement shall not limit any other remedy to which it is entitled under this Agreement or at law or equity due to an Event of Default by Developer, except to the extent that the HRA's damages are reduced by its recovery under the Escrow Agreement. . 17 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . ARTICLE V Assessment Aqreement and Payment of Taxes Section 5.1. Execution of Assessment Aqreement. Developer agrees, upon the Closing Date, to execute and deliver the Assessment Agreement to the BRA pursuant to the provisions of Minnesota Statutes, Section 469.177, Subdivision 8, specifying the Assessor's Minimum Market Value which shall be assessed upon the Improved Parcel for calculation of real estate taxes pursuant to Minnesota Statutes, Section 272.01, or any successor statute. The Assessment Agreement shall be in the form of Exhibit B. Specifically, Developer shall agree that the land and all . improvements thereto comprising the Improved Parcel with respect to which any real estate taxes, or taxes in lieu thereof which are levied or assessed and payable by Developer, shall be assessed to be of a market value of no less than $2,700,000 on January 2, 1997, and January 2 of every year thereafter until December 31, 2008 (for taxes payable in 1998 and subsequent years), increased in 1997 and subsequent years by the amount of $30.00 for each square foot of building Improvements in excess of 90,000 square feet, and decreased in 1997 and subsequent years by the fair market value of any portion of the building Improvements taken in condemnation or by the power of eminent domain for which reconstruction i~ impracticable as provided in Section 3.8, and by Developer's cost for any portion of the unimproved Improved Parcel taken in condemnation or by the power of eminent domain. . Section 5.2. Payment of Taxes, Assessments, Etc. Following the Closing Date, Developer agrees to payor cause to be paid, on or prior to their due dates, all real estate taxes, assessments, water, sewer and other charges, which become due and payable on or before December 31, 2008 with respect to the Development Property or any part thereof. Developer may, at its expense, in its own name and in good faith, contest any such taxes, assessments and other charges; provided, however, that the rights of Developer to seek administrative or judicial review of the application of, or any determination made pursuant to, any tax statute relating to the taxation of real proper~y contained on the Development Property shall be strictly subject to the restrictions contained in the Assessment Agreement. ARTICLE VI Insurance. Section 6.1. Insurance. . (a) Developer shall provide and maintain, or cause to be maintained, at all times during the process of constructing the Improvements, at its sole cost and expense, 18 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . and, from time to time at the request oftheHRA, furnish the HRA with proof of payment of premiums on: (i) Builder's risk insurance, written on the so-called "Builder's Risk Completed Value Basisll, in an amount equal to one hundred percent (100%) of the insurable value or one hundred percent (100%) of the full replacement cost of the Improvements at the date of completion, with a deductible amount of not more than $25,000, and with coverage available in nonreporting form on the so-called "all risk" form of policy; (ii) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner's and Contractor's Protective Policy with limits against bodily injury and property damage of not less than . $5,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used). The interest of the HRA shall be protected in accordance with a clause in form and content satisfactory to the HRA; and . (iii) Worker's compensation insurance, with statutory coverage. The policies of insurance required pursuant to clauses (i) and (ii) above shall be in form and substance satisfactory to the HRA and shall be placed with financially sound and reputable insurers licensed to transact business in the State. The policy of insurance required pursuant to clause (i) above shall contain an agreement of the insurer to give not less than thirty (30) days' advance written notice to the HRA and Developer in the event of cancellation of such pol~cy or change affecting the coverage thereunder. (b) Upon completion of construction of the Improvements and prior to December 31, 2008, Developer shall maintain, or cause to be maintained, at its sole cost and expense, and from time to time at the request of the HRA shall furnish proof of the payment of premiums on insurance as follows: . (i) Insurance against loss and/or damage to the Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses, including (without limiting the generality of the foregoing) fire, extended coverage, vandalism and malicious mischief, explosion, water damage, demolition cost, debris removal, and collapse in an amount not less than 90 percent of the full replacement cost of the Improvements, but any such policy may have a deductible amount of not more than $25,000. No 19 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . policy of insurance shall be written so that the proceeds thereof will produce less than the minimum coverage required by the preceding sentence, by reason of co-insurance provisions or otherwise, without the prior consent thereto in writing by the HRA. The term "full insurable replacement value" shall mean the actual replacement cost of the Improvements (excluding foundation and excavation costs and other uninsurable items) and equipment. (ii) Comprehensive general public liability insurance, including personal injury liability for injuries to persons and/or property, including any" injuries resulting from the operation of automobiles or other motorized vehicles on or about the Development Property, in the minimum amount for each occurrence of $5,000,000. (iii) Worker's compensation insurance respecting all employees of Developer in amounts not less than the minimum required by statute. . (c) All insurance required in this Article VI shall be taken out and maintained in responsible insurance companies selected by"Developer which are authorized under the laws of the State to assume the risks covered thereby. At the first time that any insurance is required to be in effect hereunder, Developer will deposit with the HRA a certificate or certificates or binders of the respective insurers evidencing that such insurance is in force and effect. Unless otherwise provided in this Article VI, each policy shall contain a provision that the insurer shall not cancel or modify it without giving written notice to Developer and the HRA at least thirty (30) days before the cancellation or modification becomes effective. Upon the HRA's request, Developer shall furnish the HRA evidence satisfactory to the HRA that any policy required hereunder is in effect. In lieu of separate policies, Developer may maintain a single policy, or blanket or umbrella policies, or a combination thereof, which provide the total coverage required herein, in which event Developer shall deposit with the HRA a certificate or certificates of the respective insurers as"to the amount of coverage in force upon the Improvements. . (d) In the event the Improvements or any portion thereof is destroyed by fire or other casualty, then Developer shall within sixty (60) days after such damage or destruction ," commence to repair, reconstruct and restore the damaged Improvements to substantially the same or improved condition or utility value as they existed prior to the event causing such damage or destruction and, to the extent necessary to accomplish such repair, reconstruction and restoration, Developer shall, subject to the rights of the Holder of a First Mortgage, apply the Net Proceeds of any insurance relating to such damage or destruction to the 20 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . payment or reimbursement of the costs thereof. Developer shall complete the repair and reconstruction of the Improvements, whether or not the Net Proceeds of insurance received by Developer for such purposes are sufficient to pay for the same. Any Net Proceeds remaining after completion of construction shall be disbursed to Developer, subject to the rights of the Holder of the First Mortgage. The HRA agrees to subordinate its rights under this paragraph to the Holder of a First Mortgage, but only to the extent of amounts owing to the Holder under the First Mortgage. ARTICLE VII Undertakinqs of the HRA Section 7.1. Sale of Develooment Prooertv. As consideration for the purchase of the Development Property and construction of the Improvements by Developer, the HRA agrees to complete, subject to the provisions of Section 7.2 below, the following action~: (a) Sale of the Development Property to Developer pursuant to the Deed on the Closing Date. (b) Use reasonable efforts with the City, County, State (including administrative proceedings and/or hearings with regulatory agencies) and the Canadian Pacific Railroad for the construction of a new road and railroad crossing (the Canadian Pacific Railroad has indicated in a letter dated August 8, 1995 that it will agree to the crossing) to provide access to the Development Property from the south at no cost to Developer; provided that if all of such approvals c~nnot reasonably be obtained, as determined by the HRA in its sole discretion, access to the Development Property shall continue from existing Laurel Avenue. In such event, the HRA shall use reasonable efforts for construction of a street and c.~l-de-sac. from Colorado Avenue to provide access to the Development Property from the south at no cost to Developer. (c) Use its' best efforts with the City so that the Improvements may constitute a permitted use under the zoning ordinance of the City. (d) The HRA shall grant to Developer a permanent easement in the drainage pond area, at a location mutually agreeable to the Parties, to allow Developer to construct and maintain an entry monument sign for the Golden Hills Business Park at its cost. The design features of the monument shall be subject to prior approval by the HRA. . Section 7.2. Limitations on Financial Undertakinqs of the HRA. The provisions of Section 7.1 of this Agreement notwithstanding, the HRA shall have no obligation to Developer . 21 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 under this Agreement to take any action provided for in this Agreement except upon existence of the following conditions: (a) Developer has satisfied all conditions precedent under this Agreement; (b) No Event of Default has occurred and is then continuing beyond the cure period provided in Section J.0.2; (c) The HRA and Developer have received all necessary approvals from the City, the County Assessor and other authorities to implement this Agreement; (d) The HRA is not the subject of any court or administrative proceeding seeking to enjoin or otherwise prevent the HRA from taking any action under this Agreement; and (e) A title insurance company has agreed, at a reasonable cost, to insure over any easements or other adverse claims relating to the Development Property prior to completion of the registration proceeding described in Section 3.J.. The parties agree that the failure of the closing to occur due to any of the above reasons shall not constitute an event of default by the Hr~~. Section 7.3. HRA to Maintain Existence. The HRA covenants and agrees that it shall at all times do or cause to be done all things within its statutory powers necessary to preserve and keep in full force and effect its existence, or to assure the assumption of its obligations under this Agreement and the Development Agreement by any public body succeeding to its powers. ARTICLE VIII Mortqaqe Financinq Section 8.J..Aooroval of Mortqaqe. Any First Mortgage prior to issuance of the Certificate of Completion shall require the prior written approval of the HRA's Director. Developer may rely upon any approval granted hereunder by the HRA's Director without additional action by the HRA. Approval shall not be unreasonably withheld or delayed, and shall be given if: (a) the HRA's Director first receives a copy of all mortgage documents; and (b) the HRA's Director determines that the terms of the First Mortgage conform and are subject to the terms of this Agreement, except to the extent the HRA agrees to subordinate its interest to the terms of the First Mortgage. 22 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 The Holder of the First Mortgage (or any nominee or agent controlled by the Holder) shall not be obligated to undertake or continue construction or completion of the Improvements while in possession of the Development Property pursuant to the foreclosure, or conveyance by Developer to the Holder in lieu of foreclosure, except upon express assumption of such obligation as provided in Section 8.3, provided that nothing in this Section or in any other section of this Agreement shall be deemed or construed to permit any Holder to devote the Development Property or any portion thereof to any use, or to construct any improvement, other than those uses or improvements permitted by this Agreement. Further, any party who obtains any interest in all or any portion of the Development Property from or through any Holder, except for any nominee or agent controlled by the Holder, whether through foreclosure sale or otherwise, shall be strictly subject to the terms and conditions of this Agreement, as such are binding on Developer, and such party shall not be entitled to any additional rights or privileges granted a Holder hereunder. Section 8.2. Notice of Default: COpy to Mortqaqee. Whenever the HRA shall deliver any notice or demand to Developer with respect to any breach or default by Developer in its obligations or covenants under this Agreement, the HRA shall at the same time forward a copy of such notice or demand to each known Holder of any First Mortgage at the last address of such Holder shown in the records of the HRA. Section 8.3. Mortqaqee's Ootion to Cure Defaults. After any breach or default referred to in Section 8.2 hereof, each such Holder shall (insofar as the rights of the HRA are concerned and subject to any rights of the Mortgagor under such Mortgage) have the right, at its option, for a period of 90 days after notice of such default pursuant to Section 8.2 hereof, to cure or remedy such breach or default and to add the cost thereof to the Mortgage debt and the lien of its Mortgage. If a default is not susceptible of cure within such 90-day period, the Holder shall have such period of time as is necessary to cure such default provided the Holder promptly commences the cure and thereafter proceeds to cure such default as soon as reasonably possible and provided such failure to cure within 90 days does not jeopardize the purposes of the Agreement or the Plan. However, if the breach or default is with respect to construction of the Improvements, nothing contained in this Section or any other Section of this Agreement shall be deemed to permit or authorize such Holder, either before or after foreclosure or action in lieu thereof, to undertake or continue the construction or completion of the Improvements (beyond the extent necessary to conserve or protect Improvements or construction already made) for more than 90 days after the Holder has received notice of such default pursuant to Section 8.2 hereof, without first having expressly assumed the obligation to the HRA, by written agreement reasonably satisfactory to the HRA, to complete, in the manner provided in this Agreement and in conformance with the Development Plans, the Improvements on the Development Property. 23 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 If the Holder enters ~nto an agreement assuming the obligations of Developer under the Agreement, such agreement shall provide that all obligations of the Holder thereunder shall terminate at such time as the Agreement is assigned by the Holder in accordance with the provisions of Section 9.1 of the Agreement or in accordance with the following paragraph. Any Holder who shall properly complete the Improvements relating to the Development Property' shall be entitled, upon written request made to the HRA, to a certification by the HRA to such effect in the manner provided in Section 4.3 of this Agreement. In addition to the assignments permitted pursuant to Section 9.1 of the Agreement, if the Holder of a First Mortgage acquires the interest of Developer under the terms of the Agreement, the Holder shall be permitted to assign its interest in the Agreement with the consent of HRA, which consent shall not be unreasonably withheld or delayed. In exercising its judgment as to whether or not to grant such consent, the HRA shall take into account only the financial condition and experience of the . proposed assignee and its capacity to perform the obligations remaining to be performed under the Agreement at the time of such assignment; provided that, after the Certificate of Completion has been issued, the experience of the proposed assignee shall no longer be a factor considered by the HRA as to whether or not grant such consent. In addition, the Holder may assign its interest at any time without the consent of the HRA to a person with a verifiable net worth in excess of $5,000,000. Any such assignee shall agree in writing with the HRA, for itself and its successors and assigns, to be bound by the terms and conditions of the Agreement, the Deed, the Assessment Agreement, the Easement Agreement and the Plan, and not to transfer, mortgage or otherwise convey any portion of the Development Property except as permitted in the Agreement. Section 8.4. HRA's Ootion to Cure Default on Mortqaqe. Any Mortgage executed by Developer with respect to the Development Property, or any improvements thereon, shall provide that, in the event that Developer is in default under any Mortgage authorized pursuant to this Article VIII, the mortgagee, within ten (10) days after it has declared or given notice to Developer of a default, shall notify the HRA in writing of: (a) the fact of the default; (b) the elements of the default; and (c) the actions required to cure the default. The HRA shall have the right to cure any such default which occurs prior to issuance of the Certificate of Completion. The HRA shall have a period of 35 days after notice from a Holder to effect a cure, provided that the HRA gives Developer advance written notice of its intent to cure. In the event of such cure prior to the issuance of the Certificate of Completion, the HRA shall thereupon be entitled, in addition to and without 24 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 limitation upon any other rights or remedies to which it may be entitled, to reimbursement from Developer or any successor or assignee of any costs and expenses incurred by the BRA in curing such default. Interest shall accrue on any amounts due the BRA under this paragraph at the reference rate of interest then in effect at First Bank Minneapolis until such amounts are paid, and such amounts shall result in the creation of a lien on the Development Property in favor of the BRA, subordinate to the lien of any First Mortgage. Section 8.5. Subordinate Liens. Until the Certificate of Completion has been issued, Developer agrees that it will not create, incur, assume or suffer any security interest, mortgage, pledge, lien, charge, or encumbrance upon the Development Property except for a First Mortgage permitted under this Article. Developer may, at its own expense, in its own name and in good faith, contest any involuntary lien, charge or encumbrance and not be in default hereunder provided Developer first posts a bond or provides other security to the BRA or to the Holder, or to an agent of the Holder, including, without limitation, a title insurance company, which the HRA reasonably determines is adequate to protect the interest of the BRA. ARTICLE IX Restrictions on Transfer: Indemnification Section 9.1. Restrictions on Transfer. Until the Certificate of Completion has been issued by the HRA, this Agreement and Developer's interest in the Development Property (or any part thereof) may not be sold, transferred or assigned by Developer without the prior written consent of the HRA, which consent may be granted or withheld by the HRA in its sole discret;ion. After the Certificate of Completion has been issued by the HRA, but prior to December 31, 2008, this Agreement and Developer's inte~est in the Development Property (or any part thereof) may be sold, transferred or assigned by Developer, provided that the purchaser, as of the date of such transfer, is reasonably determined by the HRA to be of sufficient financial condition, experience, and reputation to perform fully under this Agreement and the Assessment Agreement, and the purchaser first agrees in writing with the HRA, for himself, his heirs, representatives, successors and assigns, to be bound by the terms and conditions of this Agreement, the Deed, the Assessment Agreement, the Easement and Option Agreement and the Plan, and not to sell, transfer, mortgage or otherwise assign any portion of the Development Property except as permitted herein. After the Certificate of Completion has been issued by the HRA, but prior to December 31, 2008, this Agreement and Developer's interest in the Development Property (or any part thereof) also may be assigned without the consent of the HRA to a person with a verifiable net worth in excess of $5,000,000. In either event, Developer shall be released from any obligation or liability 25 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 hereunder to the extent of the interest purchased~ After the Certificate of Completion has been issued by the HRA, but prior to December 31, 2008,this Agreement and Developer'S interest in the Development Property (or any part thereof) may be sold, transferred or ccnveyed by Developer free of the foregoing conditions, but, in such event, Developer shall remain primarily liable for performance of the terms and conditions of this Agreement, the Easement and Option Agreement and the Assessment Agreement. The Parties agree that the terms and conditions hereof run with the land and shall be binding upon their successors and assigns. The Parties also agree that nothing contained in this Section 9.1 shall prohibit the leasing of the Improvements to CyberOptics Corporation or another lessee, and nothing contained in this Section 9.1 shall prohibit the sale, transfer or assignment by Developer of the Development Property (or any part thereof) to a general partnership, limited partnership or limited liability partnership in which Developer has at least a 50 percent interest as a general partner. Section 9.2. Indemnification. Developer hereby agrees to indemnify, defend and hold harmless the HRA, and its officials, employees and agents, against any and all claims, demands, lawsuits, judgments, damages, penalties, costs and expenses, including reasonable attorneys' fees, arising out of actions or omissions by Dev~loper, its employees and agents, in connection with the Project, except to the extent of any bad faith or intentional misconduct by the HRA or other person seeking indemnification. This provision shall continue indefinitely after the termination of this Agreement. ARTICLE X Events of Default Section 10.1. Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement, anyone or more of the following events: (a) Failure by Developer to pay the Purchase Price and otherwise perform on the Closing Date. (b) After the Closing Date and until December 31, 2008, failure by Developer to timely pay all real property taxes, assessments or other charges assessed with respect to the Development Property. (c) Subject to Unavoidable Delays, and extensions agreed to by the Parties, failure by Developer to commence and complete construction of the Improvements pursuant to the terms, conditions and limitations of Article IV of this Agreement. 26 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . (d) Until December 31, 2008, failure by Developer to observe or perform any material covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement. (e) Until the Certificate of Completion has been issued, filing by Developer in any court, pursuant to any federal or State statute, of a petition in bankruptcy or insolvency, or for reorganization, or for the appointment of a receiver or trustee of all or a portion of Developer'S property, or an assignment by Developer for the benefit of creditors. (f) Until the Certificate of Completion has been issued, filing against Developer in any court, pursuant to any federal or State statute, of a petition in bankruptcy or insolvency, or for reorganization, or for appointment of a receiver or trustee of all or a portion of Developer'S properties, if such proceeding is not dismissed within 9P days after commencement thereof. (g) Until the Certificate of Completion has been issued, commencement by the Holder of any First Mortgage of foreclosure in the event of a default in any of the terms or conditions of the First Mortgage. . (h) Until the Certificate of Completion has been issued, any merger, consolidation, liquidation, reorganization or transfer of all or substantially all of Developer's assets. Section 10.2. Remedies on Default. Whenever any Event of Default occurs, the HRA, subject to any rights of the Holder of a First Mortgage which has been approved by the HRA pursuant to Section 8.1 of this Agreement, may take anyone or more of the following actions (but only if the HRA is not then in default and only after provision of 60 days' written notice which sets forth the nature of the default to Developer in the case of an Event of Default under Se~tion 10.1{a), (b), (c), or (d), and then only if such an Event of Default has not been cured within said 60 days or, if such an Event of Default cannot be cured within 60 days, Developer does not provide assurances to the HRA reasonably satisfactory to the HRA that such an Event of Default will be cured as soon as reasonably possible and that it will not jeopardize the purposes of this Agreement and of the Plan) : (a) The HRA may suspend its performance under the Agreement until it receives assurances from Developer, deemed adequate by the HRA, that Developer will cure its default and continue its performance under the Agreement. . (b) If the Event of Default occurs prior to the Closing Date, the HRA may cancel and rescind the Agreement. 27 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . (c) If th& Event of Default occurs after Closing Date but prior to issuance of the Certificate of Completion, the HRA may reenter and take possession of the Development Property, revest title to the Development Property in the HRA, and exclude Developer from possession of the Development Property. The HRA shall thereupon use its best efforts and act in good faith to sell the Project at the best price obtainable {provided such sale is permitted by applicable law) and as soon as reasonably possible, such sale to be on such terms and conditions as the HRA deems reasonable and appropriate to satisfy the provisions of the Plan. The HRA shall apply the proceeds of such sale first to reimburse the HRA for all costs and expenses incurred,by the HRA (less any amount received by the HRA from any security provided by Developer) including but not limited to taxes, assessments, utility charges, payments made to discharge any encumbrances or liens, reasonable attorneys' fees and expenses; second to the Holder of a First Mortgage to the extent of the unpaid mortgage; third to reimburse Developer in an amount equal to the Purchase Price plus other reasonable acquisition and construction costs incurred by Developer in connection with the Project including architects' and engineers' expenses; and the balance to be retained by the HRA. (d) The HRA may initiate such action, including legal or administrative action, as is necessary for the HRA to secure perfJLmance of any provision of this Agreement or recover any amounts due under this Agreement from Developer or under any security provided by Developer. . (e) Sue for damages, including delinquent taxes levied against the Development Property, provided that any damages shall be reduced to the extent of any amount recovered by the HRA under any security provided by Developer. Section 10.3. No Remedv Exclusive. No remedy herein conferred upon or reserved to the HRA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section 10.4. No Additional Waiver Imolied bv One Waiver. In the event any agreement contained in this Agreement should be breached by any ~arty and thereafter waived by any other Party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. . 28 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . ARTICLE XI Additional Provisions Section 11.1. Eaual Emolovrnent Oooortunitv. Developer agrees that during the construction of the Project neither it nor any of the contractors will unlawfully discriminate against any employee or applicant for emploYment because of race, color, religion, sex, age, national origin, or political affiliation. Section 11.2. Not for Soeculation. Developer's purchase of the Development Property, and its undertakings pursuant to this Agreement, are and will be used for the sole and express purpose of redevelopment of the Development Property and not for speculation in land holdings. Section 11.3. Titles of Articles and Sections. Any titles of the several parts, Articles and Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 11.4. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is in writing dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and, . (a) in the case of MEPC, is addressed to or delivered personally to MEPC at 1550 Utica Avenue South, Suite 120, Minneapolis, Minnesota 55416, Attention: Regional Vice President, Development, with copies to David C. Sellergren, Doherty, Rumble & Butler, 3500 Fifth Street Towers, 150 ?outh Fifth Street, Minneapolis, Minnesota 55402; and (b) in the case of the HRA, is addressed to or delivered personally to the HRA to Housing and Redevelopment Authority In and For the City of Golden Valley, 7800 Golden Valley Road. Golden Valley, Minnesota 55428, Attention: Director, with copies to Allen D. Barnard, Best & Flanagan, 4000 First Bank Place, 601 Second Avenue South, Minneapolis, Minnesota 55402-43~1. or at such other address with respect to either such Party as that Party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 11.5. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. '. Section 11.6. Holder of a First prospective First or to subordinate Modification. If the HRA is requested by the Mortgage or by a prospective Holder of a Mortgage to amend or supplement this Agreement, its interest therein, the HRA will, in good 29 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . faith, consider the request with a view to granting the same, provided that such request is consistent with the terms and conditions of the Plan. Section 11.7. Interoretation and Amendment. This Agreement shall be governed by and construed in accordance with the laws of the State of MiIli~esota. This Agreement constitutes the entire agreement_of the Parties on the subject matter hereof, superseding any prior oral or written agreements. This Agreement can be modified only by a writing signed by both Parties. Section 11.8. Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provisions hereof. Section 11.9. Duration. This Agreement shall be effective as of the date hereof and shall continue in full force and effect until December 31, 2008. This Agreement shall survive the Closing Date and the HRA's delivery of any Deed to Developer. Section 11.10. of Article IX, this the benefit of, the Parties. Bindinq Effect. Subject to the provisions Agreement is binding upon, and shall inure to successors and permitted assigns of the . Section 11.11. Consents. Any consent or approval required of a Party under this Agreement shall not be unreasonably withheld or delayed. Section 11.12. Certificates. Upon reasonable request from time to time, the HRA shall execute and deliver written certificates to parties designated by Developer concerning whether the Agreement is in effect, whether any defaults exist under the Agreement and other similar matters. ARTICLE XII Termination of Aqreement Section 12.1. Develooer's Ootions to Terminate. This Agreement may be terminated by Developer by written notice to the HRA if Developer is in compliance with all material terms of this Agreement and no Event of Default by Developer is then existing; and . (a) Subject to Section 7.2, the HRA fails to comply with any material term of this Agreement, and, after written notice by Developer of such failure, the HRA has failed to cure such non-compliance within 60 days of receipt of such notice, or, if such non-compliance cannot reasonably be cured by the HRA within 60 days, the HRA has not, within 60 days of receipt of such notice, provided assurances, reasonably satisfactory to Developer, that such non-compliance will be cured as soon as reasonably possible; 30 . . . Resolution 95-7 - Continued EXHIBIT B September 12,.1995 (b) Closing has not occurred by October 10, 1995, unless extended by the Parties; (c) If Developer's title objections are not waived by Developer or cured by the HRA pursuant to Section 3.1; (d Subject to Section 3.2, if Developer reasonably determines by October 10, 1995 that construction of the Improvements is not practicable without material additional cost due to existing soil or groundwater conditions, or due to the presence of hazardous or toxic waste on the Development Property; or (e) Subject to Section 2.2(g), if Developer does not receive prior to the Closing Date all approvals and consents from governmental authorities which are reasonably required for construction and use of the Improvements. In the event of a default by the HRA prior to the Closing Date which is caused by the HRA's failure to pay any amount which it is required to pay under this Agreement, Developer, in lieu of terminating this Agreement, may pay such amount on behalf of the HRA and reduce the Purchase Price. Section 12.2. Effect of Termination. Except as provided in Sections 4.4 and 9.2, if this Agreement is terminated pursuant to this Article XII, this Agreement shall be from such date forward null and void and of no further effect; provided, however, that termination of this Agreement pursuant to this Article XII shall not affect the rights of Developer to.institute any action, claim or demand for damages suffered as a result of breach or default of the terms of this Agreement by the HRA. IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and MEPC has caused this Agreement to be duly executed in its name and behalf, on or as of the date first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY BY~ t<). ~~ Its ~ 31 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 MEPC AMERICAN PROPERTIES, INC. By ~t:?~ Its V':c.e. ~~.f;~ C- By A~? / ri2J44L_-/ , Its ~.J~;..-r.){ ~V And STATE OF MINNESOTA SS. COUNTY OF HENNEPIN The foregoing day of C~ AUTHORITY IN AND organization. instrument was acknowledged before me this /2- , 1995, by ~ A.~ ,'i%-_ of THE HOUSING AND REDE OPMENT FOR THE CITY OF GOLDEN VALLEY, on behalf of the ~lf!-~~ I)' r;N"VvW,^,\N\I'II\IV'lMI~. '8M ARINUS W. VANPUTTEN. JR.I NOTARY PUBLIC....NNESOTA HENNEPIN COUNTY .., CGMIIIlolI....... 11.2000 . tf STATE OF MINNESOTA SS. COUNTY OF HENNEPIN The~or rgo:!Bg j,.nstrument d,~ o~ ~~, 199~ /';:I~~ and by , a of MEPC AMERICAN PROPERTIES, INC., a Delaware corporation, on behalf of the corporation. ~d~ Notary P lic / DRAFTED BY: 6) NANCv J. GileS . i HOTM__ PUIl.IC-uINNl!SOTA ... &no CO*8IION EXPIRES 1-31.00 Best & Flanagan 4000 First Bank Building 601 Second AvenuF. South Minneapolis, Minnesota 55402-4331 32 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 EXHIBIT A LEGAL DESCRIPTION Lot 2, Block 1, Golden Hills West Second Addition, Hennepin County, Minnesot~, according to the recorded plat thereof. Subject to the following which are reserved to the BRA: An easement for storm sewer purposes over, under and across the East 30 feet of that part of Lot 1, Block 1, GOLDEN . HILLS WEST ADDITION lying Northerly of the following described line: Commencing at the Northwest corner of Government Lot 3, thence on an assumed bearing of North 87 degrees 50 minutes 03 seconds East along the North line of said Government Lot 3 a distance of 932.00 feet; thence South 0 degrees 01 minute 36 seconds East a distance of 592.97 feet to the beginning of the line to be described; thence North 87 degrees 50 minutes 03 seconds East a distance of 488.00 feet to the Easterly line of Lot 1, Block 1, GOLDEN HILLS WEST ADDITION and there said line terminates. Together with an easement for storm and sewer purposes over, under and across the following described property: Beginning at ~he intersection of the North lien of Lot 1, Block 1, GOLDEN HILLS WEST ADDITION and the Westerly line of the Easterly 30 feet of said Lot 1; thence Southerly along said Westerly line a distance of 43.90 feet; thence Northwesterly to a point on the North line of said Lot 1 distant 92.90 feet West of the Northeast corner of said Lot 1; thence Easterly to the point of beginning. A-l Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . EXHIBIT B ASSESSMENT AGREEMENT . FOR VALUABLE CONSIDERATION, The Housing and Redevelopment Authority in and for the City of Golden Valley, Minnesota, a public body corporate established pursuant to Minnesota Statutes, Section 469.001 et seq. (the "HRA") , and MEPC American Properties, Inc. (the "Developer"), hereby covenant and agree that the property described in Exhibit B-1 hereto (the "Development Property") and the improvements to be made thereto pursuant to the Second MEPC Private Development Agreement between the parties dated as of , 1995, excluding the southerly ____ feet of the Development Property (the "Improved Parcel"), with respect to which any real estate taxes, or taxes in lieu thereof which are levied or assessed and payable by the Developer, shall be assessed to be of a market value of no less than $2,700,000 on January 2, 1997, and January 2 of every year, thereafter that ~his'Assessment Agreement is in effect (for taxes payable in 1998 and subsequent years), increased in 1997 and subsequent years by the amount of $30.00 for each square foot of building improvements in excess of 90,000 square feet, and decreased in 1997 and subsequent years by the fair market value of any portion of the improvements taken in condemnation or by the power of eminent domain for which reconstruction is impracticable as provided in Section 3.8 of the Private Development Agreement, and by the Developer's cost for any portion of the unimproved Improved Parcel taken in condemnation or by the power of eminent domain (the "Assessor's Minimum Market Value") . Commencing with taxes payable in the year 1998 and thereafter during the term of this Restated Assessment Agreement, the Developer shall not seek a reduction of the market value of the Improved Parcel for property tax purposes below the Assessor's Minimum Market Value stated above, regardless of actual market values which may result from incomplete construction of improvements to the Improved Parcel, or from destruction or diminution thereof by any cause, insured or uninsured, except in the case of acquisition or reacquisition of any portion of the Improved Parcel ty a public entity. Upon execution by the parties, this Assessment Agreement shall be presented to the Hennepin County Assessor, or to the Golden Valley City Assessor having the powers of the County Assessor, if any, pursuant to Minnesota Statutes, Section 469.177, Subd. 8, as hereafter amended. If this Assessment Agreement is approved and certified by such Assessor in the form of attached Exhibit B-2, this Assessment Agreement shall be filed in the office of the Hennepin County Recorder or in the office of the Hennepin County Registrar of Titles upon transfer of title of the Development Property from the HRA to the Developer. . B-1 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 The parties hereby covenant and agree that the obligations imposed hereunder shall be the personal obligations of the parties and shall also be deemed with respect to the Development Property to be covenants and restrictions running with the land, and shall constitute burdens and benefits to the HRA and the Developer, their successors, assigns, grantees and all other parties hereafter owning or holding any interest in the Development Property or any portions thereof. This Assessment Agreement is effective as of the date hereof and shall remain in force and effect until December 31, 2008. IN WITNESS WHEREOF, the parties have caused the execution .of this Assessment Agreement as of this day of 1995. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By Its By Its MEPC AMERICAN PROPERTIES, INC. By Its STATE OF MINNESOTA SSe COUNTY OF HENNEPIN The foregoing day of instrument was acknowledged before me this , 1995, by , the of THE HOUSING AND REDEVELOPMENT FOR THE CITY OF GOLDEN VALLEY, on behalf of the and and AUTHORITY IN AND organization. Notary Public B-2 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 STATE OF MINNESOTA ) . ) 55. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of , 1995, by , a of MEPC American Properties, Inc., a Delaware corporation, on behalf of the corporation. Notary Public DRAFTED BY: Best & Flanagan 4000 First Bank Building 601 Second Avenue South Minneapolis, Minnesota 55402-4331 B-3 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . EXHIBIT B-1 LEGAL DESCRIPTION Lot 2, Block 1, Golden Hills West Second Addition, Hennepin County, Minnesota, according to the recorded plat thereof. . . B-4 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 EXHIBIT B-2 ASSESSOR'S CERTIFICATION The undersigned, being the duly qualified and acting Director of Property Taxation of Hennepin County, Minnesota, hereby certifies that: 1.~ He is the assessor responsible for the assessment of the Development Property described in the foregoing Exhibit B-1. 2. He has read the foregoing Assessment Agreement; 3. He has received and read a copy of the Private Development Agreement; 4. He has received and reviewed the architectural and engineering plans and specifications for the improvements agreed to be constructed on the Development Property by MEPC American Properties, Inc. pursuant to the Private Development Agreement: 5. He has reviewed the market value previously assigned to the Development Property upon which such improvements are to be constructed: and 6. The undersigned assessor, being legally responsible for the assessment of the above described Development Property upon completion of the improvements to be constructed thereon, hereby certifies that the market value assigned to the Improved Parcel (as defined in the Assessment Agreement) and the improvements thereto upon completion shall not be less than $2,700,000 on January 2, 1997, and January 2 of every year thereafter (for taxes payable in 1998 and subsequent years), increased in 1997 and subsequent years by $30.00 for each square foot of building improvements in excess of 90,000 square feet, and decreased in 1997 and subsequent years by the fair market value of any portioD of the improvements taken in condemnation or by the power of eminent domain for which reconstruction is impracticable, and by the cost for any unimproved portion of the Improved Parcel taken in condemnation or by the power of eminent domain. Dated , 1995. Director of Property Taxation Hennepin County, Minnesota B-5 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 EXHIBIT C CERTIFICATE OF COMPLETION THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY, a public body corporate (the "HRA"), and MEPC AMERICAN PROPERTIES, INC., a Delaware corporation ("Developer"), previously enter~d into the Second MEPC Private Development Agreement. (the II Agreement"), recorded in the Of f ice of the County Recorder in and for the County of Hennepin and State of Minnesota, as Document Number , for the following described property: Lot 2, Block 1, Golden Hills West Second Addition, according to the recorded plat thereof. The Agreement contains certain covenants which, if not performed by Developer, or its successors and assigns, would result in a forfeiture and right of re-entry by the HRA, its successors and assigns. As of the date hereof, Developer has performed all of such covenants contained in the Agreement to the satisfaction of the HRA, including the covenants in Article IV of the Agreement requiring completion of the construction of the improvements. NOW, THEREFORE, it is hereby certified that all of the covenants in the Agreement, including the covenants in Article IV requiring completion of the construction of the improvements, have been duly and fully performed by Developer as of the date hereof and that Lhe provisions for forfeiture of title and right to re-entry by the HRA for breach of such covenants, and the escrow agreement securing performance thereof, are hereby released absolutely and forever insofar as they apply to the property described above. The County Recorder in and for the County of Hennepin and State of Minnesota is hereby authorized to accept for recording and to record the filing of this instrument. This instrument shall be conclusive determination of the satisfactory termination of the covenants of Article IV of the Agreement'requiring completion of the construction of the improvements. Notwithstanding the foregoing, the remaining covenants contained in the Agreement remain in full force and effect. C-l . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By Its And Its STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing _ day of and and in and for the City instrument was acknowledged before me this , 19_, by , respectively the of The Housing and Redevelopment Authority of Golden Valley, on behalf of the Authority. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Best & Flanagan 4000 First Bank Building 601 Second Avenue South Minneapolis, Minnesota 55402-4331 C-2 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . EXHIBIT D DEVELOPMENT PLANS (to be supplied) . . 0-1 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 EXHIBIT E DEMOLITION SPECIFICATIONS The professional wrecking by a licensed contractor of any buildings, structures, tanks or manmade objects. It consists of the removal of all hazardous/toxic waste materials from site (other than materials in the soil or groundwater) to a licensed landfill area (licensed in the disposal of toxic waste materials) prior to demolition work. All work shall be complete and include the capping or removal of existing utilities, except those to be relocated, and the wrecking and removal of all footings, foundations, floor slabs, subsurface tanks, buried utility lines sized in excess of 6" in diameter, steps, stoops, private sidewalks, site lighting poles, driveways and provide for a clean compacted (95% Proctor Density) granular type fill in all excavations resulting from demolition. All piping, heating plants, fuel storage tanks, appliances and other debris shall be removed from site to a licensed landfill area. All work shall be performed in conjunction with State, City and/or local ordinances and reasonable restrictions. E-1 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 . EXHIBIT F LIMITED WARRANTY DEED FOR VALUABLE CONSIDERATION, THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY, a public body corporate created pursuant to Minnesota Statutes, Section 469.001 et seq. ("Grantor"), hereby grants, bargains and conveys to MEPC American Properties, Inc. a Delaware corporation, a ("Grantee"), real property in Hennepin County, Minnesota, descri.bed as follows (the "Property"): Lot 2, Block 1, Golden Hills West Second Addition, according to the recorded plat thereof. . together with all hereditaments and appurtenances belonging thereto. Grantor, for itself and its successors and assigns, reserves access, drainage and utility easements over the easterly 30 feet of the Property. Grantor, for itself and its successors' and assigns, hereby covenants with Grantee and its successors and assigns, that it has not made, done, executed, or suffered any act or thing whatsoever whereby the Property, or any part thereof, now or at any time hereafter, shall or may be imperiled, charged or encumbered in any manner whatsoever, except for any covenants, conditions, or restrictions contained in the Golden Hills Redevelopment Plan adopted by Grantor in 1984, as amended (the "Plan"), and any covenants, conditions, or restrictions contained in the Second MEPC Private Development Agreement dated , 1995, between Grantor and Grantee or Grantee's assignor (the "Agreement"). Provided: 1. It is understood and agreed that this Deed is subject to the restrictions, reservations and encumbrances of record, if any, access, drainage and utility easements over the easterly 30 feet of the Property, all building and zoning laws and ordinances, all other local, state and federal laws and regulations, and the covenants, conditions, restrictions and provisions of the Agreement. It is also understood and agreed that, prior to December '31, 2008, Grantee shall not sell, transfer, mortgage or otherwise convey the Property, or any part thereof or interest therein, except as permitted by the Agreement. . Grantee hereby covenants and agrees to begin and diligently prosecute to completion the development of the Property at such times and as otherwise provided in the Agreement. Promptly after completion of the Improvements (as defined in the Agreement) in accordance with the Agreement, Grantor will furnish Grantee with a Certificate of Completion, as provided in the Agreement, which shall be the conclusive determination of satisfaction and termination of the agreements and covenants in and pursuant to the Agreement with respect to the obligations of Grantee to F-1 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 construct the Im~~Qvements, and the dates for the commencement and completion thereof. 2. If an "Event of Default" by Grantee, as defined in Section 10.1 of the Agreement, which is not cured within the period provided in Section 10.2 of the Agreement, exists prior to the recording of the Certificate of Completion, then Grantor shall have the right to re-enter and take possession of the Property and to terminate and revest in Grantor the estate conveyed by this Deed to Grantee, as specified in the Agreement. 3. Grantee hereby agrees to do the following: (a) Maintain insurance of such types and amounts as specified in Article VI of the Agreement; (b) Pay all real estate taxes and special assessments on the Property when due and not seek or cause a reduction in such taxes, except as permitted under the Agreement; . (c) Devote the Property to only such uses as are permitted under the Agreement. The parties agree that the covenants contained in this Section shall terminate on December 31, 2008. 4. There shall be no discrimination in the use of the Property by Grantee on account of race, color, religion, sex, age, national origin, or political affiliation during the period that the Plan remains in effect. The parties agree that all of the covenants and restrictions contained in this Deed shall be binding upon Grantee, its successors and assigns, for the maximum benefit of Grantor, its successors and assigns, and shall also be deemed to run with the land. IN WITNESS WHEREOF, Grantor has caused this Deed to be duly executed on its behalf by its duly authorized representatives this ____ day of , 1995. F-2 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By David A. Thompson Its Chair By William S. Joynes Its Director STATE OF MINNESOTA SS. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this ____ day of , 1995, by David A. Thompson and William S. Joynes, respectively the Chair and Director of The Housing and Redevelopment Authority in and for the City of Golden Valley, on behalf of the Authority. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Best &. Flanagan 4000 First Bank Building 601 Second Avenue South Minneapolis, Minnesota 55402-4331 F-3 . . . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 EXHIBIT G EASEMENT AND OPTION AGREEMENT 1. In consideration of the payment by the Housing and Redevelopment Authority in and for the City of Golden Valley ("HRA") to MEPC American Properties Inc., a Delaware corporation ("MEPC") of the sum of One Dollar and Other Good and Valuable Consideration, MEPC hereby grants to the HRA the following: a. An exclusive option to acquire, on or before September 1,' 1998 (" Expiration Date ") the fee title to the premises described on Exhibit II A" (" the Premises") attached hereto and made a part hereof, for the price of One Dollar ($1.00). MEPC, its successors and assigns, shall deliver to HRA, its successors or assigns, within ten (10) days of HRA's exercise of the option, a limited warranty deed for the Premises; and b. Easements for public road, utilities and drainage, including the right to construct and maintain said easements over, under and across the Premises. 2. MEPC, its successors and assigns, is required to construct, as part of the Second MEPC Private Development Agreement, dated September _, 1995, a storm water drainage and ponding system over a portion of the Premises. In consideration of MEPC's agreement to construct said system, HRA, its successors and assigns, agree to maintain the system and MEPC hereby grants an easement to HRA to maintain the system. HRA hereby agrees to indemnify and hold MEPC harmless against any and all claims, demands, damages, liabilities, costs or expenses relating to the drainage and ponding system, except to the extent such item pertains to any action or omission by MEPC during construction of the system or thereafter. 3. If HRA elects to exercise this Option it shall do so by delivering to MEPC on or before the Expiration Date the purchase price of One Dollar ($1.00). Upon receipt thereof, MEPC shall promptly execute and return a limited warranty deed to HRA for the Premises. If HRA fails to exercise this Option by the Expiration Date, it shall nevertheless be deemed exercised on the Expiration Date and MEPC shall deliver a limited warranty deed to HRA for the Premises dated as of the Expiration Date, and the HRA shall accept the same. MEPC shall reserve in the deed a permanent drainage easement for an underground drainage pipe, and a nonexclusive easement to use the drainage pond for stormwater runoff. 4. If the Expiration Date occurs on a Saturday, Sunday or legal holiday, then the Expiration date shall be the next succeeding business day following such Saturday, Sunday or holiday. . . . Resolution 95-7 - Continued EXHIBIT B September 12,1995 5. Any notification, election, or payment herein required or permitted to be given or served by either party upon the other (including exercise of this Option) shall be deemed given and served in accordance with the provisions of this Option if delivered personally to the receiving party, or if deposited in the United States mail in a sealed wrapper, registered or certified, postage and fees prepaid, properly addressed as follows: To HRA: Mr. William S. Joynes Housing and Redevelopment Authority 7800 Golden Valley Road Golden Valley, MN 55427 To MEPC: Mr. David M. Jellison Regional Vice President MEPC American Properties Inc. 1550 Utica Avenue South, Suite 120 Minneapolis, MN 55416 Each such delivered notice, payment or communication shall be deemed to have been given to, or served upon, the party to whom delivered upon delivery thereof in the manner above provided. Each such mailed notice, payment or communication shall be deemed to have been given to or served upon the party to which addressed on the date the same was so deposited in the mails in the manner above provided. 6. assigns. This Agreement shall be binding on the parties hereto, their successors and 7. During the Option period and any extension thereof, MEPC shall cooperate and join with HRA in any and all actions, petitions, and documents which are usual and necessary to accomplish the transfer of the Premises to the HRA, including the right of access to the Premises, which right shall not interfere with MEPC's use of its property to the North. MEPC AMERICAN PROPERTIES INC., a Delaware Corporation By Richard A. Weiblen Its Vice President And William P. Dressen Its Regional Vice President G-2 . 1 . . . Resolution 95~ 7 ~ Continued EXHIBIT B September 12, 1995 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY By Its By Its STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN) The foregoing was acknowledged before me this day of September, 1995, by Richard A. Weiblen and William P. Dressen, the Vice President and Regional Vice President, respectively, of MEPC American Properties Inc., a corporation under the laws of Delaware, on behalf of the corporation. Notary Public STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this _ day of 1995, by and ,the and , respectively, of the Housing and Redevelopment Authority in and for the City of Golden Valley, a public body corporate and politic, under the laws of Minnesota, on behalf of the Authority. Notary Public RBP 94693 G-3 . . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 EXHIBIT H ESCROW AGREEMENT THIS ESCROW AGREEMENT (this "Agreement") is made and entered into this day of , 1995, by and among First Trust National Association (the "Bank"), MEPC American Properties Inc., a Delaware corporation (the "Developer") and The Housing and Redevelopment Authority in and for the City of Golden Valley (the "HRA"). The Developer and the HRA have agreed to enter into the Second MEPC Private Development Agreement (the "Development Agreement"), a copy of which is attached hereto. Section 4.5 of the Development Agreement requires the Developer to provide security for the performance of its obligations under the Development Agreement. The Developer is providing such security pursuant to this Agreement. NOW, THEREFORE, in consideration of the foregoing and in consideration of the mutual covenants and promises contained herein, the parties agree as follows: 1. In compliance with Section 4.5 of the Development Agreement, the Developer hereby deposits with the Bank $350,000 in cash or cashier's or certified check (the "Escrow Account"), which shall be held and administered by the Bank as an escrow security deposit in accordance with this Agreement. 2. The purpose of this Agreement is to secure performance by the Developer of its obligations under the Development Agreement. Upon delivery to the Bank by the Director of the HRA of a signed and acknowledged statement in compliance with this paragraph, the Bank shall forthwith deliver to the HRA, in cash or by cashier's or certified check, an amount qual to the full value of the Escrow Account, less accrued net income payable to the Developer pursuant.to paragraph 6, as of the date of the Bank's receipt of the notice. The acknowledged statement from the HRA shall recite each of the following applicable elements: (a) One or more of the following Events of Default described in Section 10.1 of the Development Agreement has occurred and the specific Event of Default is identified: (i) After the Closing Date and until the Certificate of Completion has been issued (as defined in the Development Agreement), failure by the Developer to timely pay all real property taxes, assessments or other charges assessed with respect to the Development Property; (ii) Subject to Unavoidable Delays (as defined in the Development Agreement), and any extensions of time agreed to by the Developer and the HRA, failure by the Developer to commence and complete construction of the Improvements (as defined in the Development Agreement) pursuant to the terms, conditions and limitations of the Development Agreement; . . Resolution 95-7 - Continued EXHIBIT B September 12, 1995 Copy to: David C. Sellergren Doherty, Rumble & Butler 3500 Fifth Street Towers 150 South Fifth Street 'Minneapolis, MN 55402 17, This Agreement shall be interpreted in accordance with Minnesota law. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. . RBP 9467() FIRST TRUST NATIONAL ASSOCIATION By Its MEPC AMERICAN PROPERTIES INC. By Its And Its THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN V ALLEY By Its H-5 Resolution 95-7 - Continued EXHIBIT B September 12, 1995 WAIVER OF CONFLICT OF INTEREST . Date: 1/IL f , 1995. We, the undersigned, hereby acknowledge that Best & Flanagan, P.L.L.P., is registering title to Lot 2, Block 1, Golden Hills West 2nd Addition and that they are the attorneys for the Housing and Redevelopment Authority in and for the City of Golden Valley ("Seller"). Seller also acknowledges that Best & Flanagan, P.L.L.P. ("Best"), will be representing MEPC AMERICAN PROPERTIES, INC., a Delaware corporation ("Purchaser") in its Cross-Application to complete the registration of said Lot 2. Therefore, Seller and Purchaser hereby waive any questions of Best's conflict of interest and request Best to proceed with the registration on behalf of both parties. Dated: crt i z-I q.S- Dated: 9' / /2 /c;~- I , SELLER PURCHASER . By ~~~ct /}. (--~~~~ Its C~J~"L By ~~ /-1ce &..kd-:: ?7 Its d,/0~~ /2/ t/~ /~tf- . G:\DOCS\PUBL\MVP\41267 _l.LTR ~ . " Resolution 95-7 - Contiwmd. DISC~BRnFICATE September 12, 1995 PLEASE TYPE OR PRINT ALL INFORMATION erson filing deed must attach $10 fee payable to county recorder. PROPERTY DESCRIPTION s. '- 0+ z. J BIb (k ,) c;, lde,", ~; It..8 , , W~d- 021)4. RdcM-iQiy r ' Attach a legal description of property If the property does not have a lot number, block number and addition name. COUNTY LOT NUMBER BLOCK NUMBER ADDITION NAME . Henn-epl r'\ 2... a.r tde",- "-1 Us . 1 ' j STREET ADDRESS Ut\a.S5'\ ned CITY STATE ZIP CODE COo \def\ V Cl , \ ~~ f'l\. ~ B. PROPERTY BUYER MAILING ADDRESS AFTER CLOSING FIRST NAME MIDDLE INITIAL LAST NAME COMPANY NAME (IF APPLICABLE) SSD U~\ ( ADDRESS Au e... 1=f:: f 2.. 0 CITY flY, n ne~ \ ~) C. CERTIFI ATION BY SELLER I certify that the Information provi d on thi STATE ~ ZIP CODE Sse-{ lk. TELEPHONE NUMBER (Q l:t - 5'{ (; -8000 certificate Is accurate and complete to the best of my knowledge. q//zlc;~ , Date D. CERTIFICATION BY BUYER The buyer or person authorized to act on behalf of the buyer, must sign a Well Disclosure Certificate for all deeds given In fulfillment of a contract for deed If there is a well on the property. In the absence of a seller's signature, the buyer, or person authorized to act on behalf of the buyer may sign this well certificate no signature is required by the buyer If the seller has signed above. Based on disclosure Information provided to me by the seller or other available information, I certify that the Information on this certifi- cate is accurate and complete to the best of my knowledge. gnature of Buyer or Designated Representative of Buyer Date (over) ORT Form 3781 .. Resolution 95-7 - ContinuecfWELL ~AftM*TIPN' . . PLEASE TYPE OR PRlfJrAlL INFORMATION September 12, 1995 Fill outs separate well Information page if more than three wells are located on the property. L LOCATION-M ~ v UNTY ~UARTER SECTION NUMBER TOWNSHIP NUMBER Henn~p',t\ ~tlN?3h:~+ L/ /17 RANGE NUMBER ~/ WELL STATUS YEAR WELL WAS SEALED (IF KNOWN) WEU IS: 0 IN USE (1) 0 NOT IN USE (2) 0 SEALED BY LICENSED WELL CONTRACTOR (3) WELL LOCATION ft COUNTY ~nn~~tf'\ M.tu QUARTER &auYJ + -I---V SECTION NUMBER TOWNSHIP NUMBER RANGE NUMBER 1/7 -< WELL STATUS YEAR WELL WAS SEALED (IF KNOWN) WELL IS: 0 IN USE (1) 0 NOT IN USE (2) 0 SEALED BY LICENSED WELL CONTRACTOR (3) WELL LOCATION COUNTY SECTION NUMBER TOWNSHIP NUMBER RANGE NUMBER <f II c:Jj WELL STATUS eL IS: 0 IN USE (1) YEAR WELL WAS SEALED (IF KNOWN) o NOT IN USE (2) o SEALED BY LICENSED WELL CONTRACTOR (3) SKETCH MAP - Sketch the location of the welllsl and include estimated distances from roads. streets and buildings. IF MORE THAN ONE WELL ON PROPERTY, USE THE WELL LOCATION NUMBER ABOVE TO IDENTIFY EACH WELL 5 ~'C ~J 4(tt ~ 'f'd " . '~" ' . Information provided on this form is classified as public information under Minnesota Statutes, Chapter 13. G.. :. Resolution 95-7 - Continued EXHIBITi . 9/IJ 9S" September 12, 1995 :/ -. ,Ji .: . t ~ j ., ;;1 I; i {!(f<( ~ ~".iJ d,.J~q'1 I 1:; 1'1 , , .! :1 I I ~ I '! ~1! -e ! .1 : ., 1.1 : :j , . ,j ~ \ ~ : . .1 . , I , '. 'I " .' '. I i . " . . :. : 1:1 ; ! " I ;., iii -. Iii ! ~ : ~ I ! I; , . , f!; Iii I i ~