HRA 1985 04 04I;
AGENDA
— JOINT MEETING
CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY
AND CITY COUNCIL
THURSDAY, APRIL 4, 1985
CITY HALL COUNCIL CHAMBERS
7:30 p.m. 1. Call to Order
2. Consideration of Agreements for Sale of old
Instant Web Building
3. Adjournment
Y
PURCHASE AGREEMENT
THIS AGREEMENT, made this day of April, 1985,
by and between the Housing and Redevelopment Authority in and for
the City of Chanhassen, Minnesota, hereinafter called the "Seller ",
and Gary V. Kirt, hereinafter called the "Purchaser"
In consideration of the sum of Two Thousand ($2,000.00)
Dollars from Purchaser as earnest money and in part payment therefor,
the Seller does hereby
located in the City of
Minnesota and identifii
called "the Property ",
1. Purchase
agree to sell to Purchaser certain property
Chanhassen, County of Carver, State of
�d on the attached Exhibit "A ", hereinafter
upon the following terms and conditions:
Price. The purchase price for the Property
shall be $120,000, which the Purchaser agrees to pay in the following
manner: Earnest money herein paid of $2,000.00; and cash in the
amount of $118,000 on the date of closing
2. Conditions to Sale. The sale of the property according
to the within terms and conditions is wholly conditioned upon the
following:
A. Approval of a subdivision by the City of Chanhassen
according to standard subdivision rules, regulations
and procedures, of this purchased Property.
B. The closing of the sale of certain adjacent property
as described on attached Exhibit A to Dorek and Baden,
which is presently scheduled to close by May 1, 1985.
3. Encroachment - Cantilevered Room. Seller hereby
permits the use and encroachment by Purchaser, without any rental
charge therefore, of a cantilevised room situated over the building
r4/1/85 (5)
space being retained by the Seller, subject, however, to the Seller's
right to tear down and remove such cantilevered room at any time
after giving the Purchaser one year advance notice in writing.
4. Parking. Subject to approval of an Environmental
Assessment Worksheet, the Seller shall obtain the property described
in the attached Exhibit A for parking and transfer it to the
Purchaser. The Seller shall make every reasonable effort to acquire
the property and transfer it to the Purchaser by June 1, 1985.
If the Seller does not acquire the property by that date so as
to be able to convey it to the Purchaser, the Seller shall then
promptly commence condemnation and turn the property over to the
Purchaser as quickly as possible after title has been acquired
by the City. The Seller shall not be required to make any improvements
to the property.
5. Closing Date. The closing shall take place at the
— City Hall in the City of Chanhassen on May 1, 1985 at a time mutually
convenient to the parties.
6. Delivery of Deed. Subject to the terms and conditions
of the purchase of this Property as contained in this Agreement
and the full performance by the Purchaser thereof, the Seller agrees
to execute and deliver a Quit Claim Deed only, making no representa-
tions as to title, status, condition or use now or in the future
of the real or personal property sold hereunder.
7. Real Estate Taxes and Assessments. The Seller shall
pay any and all real estate taxes due and payable in 1985, together
with any installment of special assessments payable therewith.
Purchaser shall pay all real estate taxes due and payable in 1986,
-2-
together with any unpaid installments of special assessments payable
therewith and thereafter. Purchaser shall pay and assume any pending
assessments due or scheduled to be due on this Property.
8. Costs. Seller shall obtain and provide to Purchaser
a survey of the premises being sold hereunder after the subdivision
of such premises has been approved by the City of Chanhassen.
Seller shall also pay and be responsible for proceeding with all
procedures necessary and any costs involved therewith in the subdi-
vision of the premises being purchased hereunder. Purchase shall
pay for all recording costs in connection with any and all documents
related to and involved with the closing of this transaction.
9. Possession. Subject to the rights of current tenants,
Purchaser is entitled to possession of the premises no later than
the actual closing of the purchase transaction, provided that all
conditions of this Agreement have been complied with.
10. Risk of Loss. Seller assumes all risk of loss due
to fire or other casualty up to the time and date of the closing
of this purchase transaction. In the event any such loss occurs
prior to the date of closing, the Purchaser shall have the right
to terminate this Agreement, upon written notice to the Seller,
and this Agreement shall become null and void and all earnest money
paid hereunder shall be refunded to the Purchaser.
11. Title. As stated above, Seller shall deliver to
Purchaser a Quit Claim Deed only to the premises, subject to the
existing easements or restrictions of record. Nonetheless, Seller
shall, within a reasonable time after execution of this Agreement,
furnish an Abstract of Title for its examination which abstract
-3-
N
shall be promptly returned to the Seller after it has been examined.
The Purchaser shall be allowed ten (10) days after receipt thereof
for examination of the title thereto and the making of any objections
thereto, said objections to be made in writing, delivered to Seller,
or deemed to be waived. If any objections are so made, then the
Seller shall be allowed one hundred twenty (120) days to make such
title marketable and pending the correction of title by Seller,
the payments hereunder required shall be postponed, but upon
correction of title and notice thereto to the Purchaser, the parties
shall perform this Agreement according to its terms. If the title
is not marketable is not made so within one hundred twenty (120)
days from the date written objections are received by Seller as
provided above, then this Agreement shall be null and void, at
the option of the Purchaser, and neither party hereto shall be
liable for damages hereunder to the other. All money previously
paid by the Purchaser on the purchase price shall be refunded to
Purchaser without interest. If the title to the property is found
to be marketable or be made so within the above provided time,
and the Purchaser shall default in any of the agreements or the
terms and conditions herein and shall continue in default for a
period of ten (10) days, then and in that case the Seller may at
its sole option terminate this Agreement and on such termination
all of the payments made upon this Agreement shall be retained
by the Seller as liquidated damages, time being of the essence
hereof. This provision, however, shall not deprive either party
of the right of enforcing the specific performance of this contract,
provided such contract shall not be terminated as aforesaid, or
-4-
making any claim against the other party for damages suffered by
the non - performance of the other party, provided any such action
shall be commenced within sixty (60) days after such right of action
shall arise. Specifically the parties acknowledge and agree that
this purchase shall be subject to the Declaration of Covenants,
Conditions, Restrictions, Easements and Party Wall Agreement to
be filed by Seller as to all property described on attached Exhibit
A.
12. Assignment. This Agreement may not be assigned
by the Purchaser.
13. Entire Agreement. This Agreement, together with
attached exhibits, sets forth the entire understanding of the part-
ies, and it may not be changed except by a written document signed
by both parties hereto.
14. Option. By Purchase Agreement dated day of
April, 1985, the Seller has sold certain property described in
Exhibit A to John H. Dorek and William N. Baden. That purchase
agreement provides that Dorek and Baden must have a 24 -lane bowling
center open for business on the property by January 1, 1987, or
the property reverts to the Seller. If that property reverts to
the Seller, the Seller grants the Purchaser herein an option to
purchase the property under the same terms and conditions offered
Dorek and Baden.
15. Binding Effect. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respec-
tive successors, heirs or in the case of the Seller alone, assigns,
and its terms shall survive the closing of this transaction.
-5-
This Agreement has been executed by the undersigned parties
hereto as of the day and year first above written.
STATE OF MINNESOTA)
(ss
COUNTY OF )
On this day
public within and for said
Kirt, who acknowledged that
as his free act and deed.
STATE OF MINNESOTA)
(ss
COUNTY OF CARVER )
PURCHASER:
Gary V. Kirt
5241 Viking Drive
Edina, MN 55435
SELLER:
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR
THE CITY OF CHANHASSEN
BY:
Clifford Whitehill, Chairman
BY:
James R. Bohn, Secretary
of April, 1985, before me a notary
County, personally appeared Gary V.
he signed the foregoing instrument
Notary Public
On this day of April, 1985, before me a notary
public within and for said county, personally appeared Clifford
Whitehill and James R. Bohn, to me personally known, who, being
each by me duly sworn, did say that they are respectively the Chairman
and Secretary of The Housing and Redevelopment Authority in and
for the City of Chanhassen, and the instrument was signed and sealed
in behalf of said corporation by authority of its Board of
Commissioners, and they acknowledged that said instrument was the
free act and deed of said corporation.
DRAFTED BY: Notary Public
Grannis, Campbell, Farrell 8 Knutson
403 Norwest Bank Bldg.
South St. Paul, MN 55075
455 -1661
PURCHASE AGREEMENT
Agreement made this day of April, 1985 between The
Housing and Redevelopment Authority in and for the City of Chanhassen,
hereinafter called the Seller, and John H. Dorek and William N.
Baden, hereinafter called Purchaser, upon the following terms and
conditions:
1. SALE OF PREMISES. Seller hereby sells to Purchaser
and the Purchaser hereby purchases from Seller certain real property,
38,000 square feet more or less as shown on and described in the
attached Exhibit "A ", subject to the following terms, conditions
and contingencies hereinafter provided.
2. PARKING. Subject to approval of an Environmental
Assessment Worksheet, the Seller shall obtain the property described
in the attached Exhibit "A" for parking and transfer it to the
Purchaser. The Seller shall make every reasonable effort to transfer
the property to the Buyer by June 1, 1985. If the Seller does not
acquire the property by that date so as to be able to convey it
to the Buyer, the Seller shall then promptly commence condemnation
and transfer the property over to the Buyer as quickly as possible
after title has been acquired by the City. The Seller shall not
be required to make any improvements to the property. The Purchaser
covenants and agrees to use the property exclusively for parking
purposes and to undertake all necessary improvements to be able
to use it for that purpose, including a satisfactory bituminous
surface. Purchaser shall also maintain at its sole cost such parking
space in a passable driving condition. Such parking space shall
be conveyed to Purchaser subject to a nonexclusive permanent easement
for parking and ingress and egress purposes for the benefit of all
r4/2/85 (16)
owners, their successors, heirs, assigns, and invitees of all the
properties described on attached Exhibit "A"
3. TERMS. Purchaser hereby agrees to pay the Seller.
One Dollar ($1.00) and other good and valuable consideration for
the above described property in cash at closing, such conveyance
to be made by Seller delivering a quit claim deed only with no warran-
ties whatsoever as to use, title or status of the premises being
sold hereunder.
4. DATE OF CLOSING. The date of closing of this transac-
tion shall be May 1, 1985.
5. CONTINGENCIES. The above sale of premises by the
Seller to the Purchaser is contingent and conditioned upon:
a. The City of Chanhassen approving the subdivision of
the subject property, together with the adjacent pro-
- perty to be purchased by Gary V. Kirt, with all expenses
of subdivision and its application to be paid by Seller.
b. The Seller agreeing to make a $200,000 construction
loan commitment to the Purchaser at the closing. Such
construction loan shall be for a 20 -year term providing
for 3% annual interest on the unpaid principal balance.
This loan shall be secured by Purchaser's personal
guaranty and a mortgage on the subject property. Such
loan agreement, promissory note and mortgage deed
_ are attached hereto as Exhibits "C ", "D ", and "E".
6. TITLE. Subject to the provisions of this agreement
wherein the Seller has agreed to execute and deliver only a quit
claim deed to the subject property at closing, the Seller shall
also, within a reasonable period after the execution of this agree-
ment, furnish an abstract of title or registered property abstract
certified to date to include proper searches covering bankruptcies,
- state and federal judgments and liens. The Purchaser shall be allowed
ten days after receipt thereof for examination of title and the
-2-
making of any objections thereto; however, such objections shall
be made only upon the basis of unmarketability of title. If such
objections are not made in writing to Seller within such 10 -day
period, they shall be deemed waived. If any objections are so made
— to the Seller, the Seller shall be permitted 120 days to make such
title marketable. Pending correction of title, all obligations
hereunder required of Purchaser shall be postponed, but upon correction
of title and within 10 days after written notice to the Purchaser,
the parties shall perform this agreement according to its terms.
If the title is not marketable and it is not made so within
120 days from the date of written objections as received by the
Seller as provided herein, then this agreement shall be null and
void, at the option of the Purchaser, and neither party shall be
liable for damages hereunder to the other party. All money heretofore
paid by the Purchaser shall be refunded by the Seller without in-
terest. If the title to the property is found to be marketable or
so made within said time, and the Purchaser shall default in any
of the agreement and continue in default for a period of 10 days
then, and in that case, the Seller may terminate this agreement
and on such termination all the payments made under this agreement
shall be retained by the Seller as liquidated damages, time being
of the essence hereof. This provision, however, shall not deprive
either party of the right of enforcing the specific performance
of this contract provided such contract shall not be terminated
as aforesaid, and provided action to enforce such specific performance
shall be commenced within 60 days after the right of action shall
-3-
arise. Specifically, the parties acknowledge and agree that this
purchase shall be subject to the Declaration of Covenants, Conditions,
Restrictions, Easements and Party Wall Agreement to be filed by
Seller as to all property described on attached Exhibit A.
7. TAXES AND SPECIAL ASSESSMENTS. The Seller shall pay
the real estate taxes and installment of special assessments therewith
due and payable in the year 1985. The Purchaser shall pay all real
estate taxes and any unpaid installments of special assessments
due thereafter.
8. DAMAGE TO PREMISES. In the event this property is
destroyed or substantially damaged by fire or any other cause prior
to the closing of this transaction, then this agreement shall become
null and void at Purchaser's option and all monies paid hereunder
shall be refunded to it.
9. REVERTER. The Purchaser shall construct a 24 -lane
bowling facility on the subject property. If the bowling facility
is not complete and open for business on or before January 1, 1987,
the ownership of the property and all improvements thereto shall
revert to the Seller's ownership and all right and title and interest
of the Purchaser shall be extinguished.
10. COMMUNITY /RECREATION ROOM. As an additional term
of this purchase, Purchaser agrees to set aside, enclose and provide
an area of approximately 2,900 square feet within the land being
purchased for a community /recreational room for a period of five
(5) years or until Purchaser sells this property, whichever occurs
first. Such room will be situated at a location within the purchased
-4-
land and building mutually agreeable to Seller and Purchaser. Purchaser
shall provide adequate electrical, sewer, water and heating services
to this room. Such room may be used by any citizen or nonprofit
organization, school, association or group within the City of
Chanhassen without any rental fee for meetings, dances, social events
or recreational events on a first come basis, and such user shall
be responsible only for the cost of clean -up, or damages they cause.
Purchaser may establish reasonable rules and regulations for the
use of such room, subject to Seller's approval. Such room shall
be fully insured for personal injury and property damage at Purchaser's
sole expense, with such policies of insurance to be in an amount
and written by such companies as are approved in advance by Seller.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF CHANHASSEN
BY
Clifford Whitehill, Chairman
BY
James R. Bohn, Secretary
John H. Dorek
William N. Baden
-5-
STATE OF MINNESOTA)
(ss
COUNTY OF CARVER )
On this day of 1985, before
me a notary public within and for said county, personally appeared
Clifford Whitehill and James R. Bohn, to me personally known, who,
being each by me duly sworn, did say that they are respectively
the Chairman and Secretary of The Housing and Redevelopment Authority
in and for the City of Chanhassen, and the instrument was signed
and sealed in behalf of said corporation by authority of its Board
of Commissioners, and they acknowledged that said instrument was
the free act and deed of said corporation.
Notary Public
STATE OF MINNESOTA)
(ss
COUNTY OF )
On this day of , 1985, before
me a notary public within and for said county, personally appeared
John H. Dorek and William N. Baden, who acknowledged that they signed
the foregoing instrument as their free act and deed.
Notary Public
DRAFTED BY:
Grannis, Campbell, Farrell & Knutson
403 Norwest Bank Bldg.
South St. Paul, MN 55075
455 -1661
S:M
M .... saw rhea Form No. 42 -M rpH,�r -D.,;, Co.. nuaaa.paH.
Indoidual to corpa.anoa Mfanewrtn units.. Co-,,. o, eLnk, (H,,,,-d 1976
Xbio30enture, Made this ............ ........ ..........day of _ ... .... . _....._... .... _ , 19 85...,
between Wi LL am M. Haden and ... Geraldxne D _Baden, his _wife and _John,H. Dorek__....____.
of the County of _7777_ _and State of. ..M, _.. os „
neo tee....._..........., dlortgagor s _.,
¢nd......._The Housing and Redeye lopment. Authority_. in and, for_the City_ cif Chanhassen..........
..... man. cira l__.__._. ...._._ .._7777 ._.. ....... - _ ...... _
a corporation under the laws of the State of.. Minnesota _ .................. . , .1fortgagee.....
101MC500b, That the said mortgagors in consideration of the sum of Two, Hundred ...............
Thousand an d _no /100 ($200,000 00) - -- - - - -- - _- DOLLHRS,
to...... them _ in hand paid by the said Mortgagee, the receipt whereof 1.9 hereby acknowledged,
dose @..hereby Grant, Bargain, Sell, and Convey unto the said Mortgagee, its ,successors and assigns,
Forever, all the tract.... or parcel__ of land lying and being in the County of
and State of Minnesota, described as follows, to -wit:
'QCo Jb8be aRb t0 34001it Iht *amt, Together with the hereditaments and appurtenances thereto belonging to the
said mortgagee, its succeswrs and assigns, forever. And the said mortgagor s_,
heirs, administrators, executors and assigns, do, ____._._... covenant with the said mortgages, its successors and assigns, as follows:
ThaL... they_ are _ _ _ _ [axially seized of said promises and ha Ye_.._.._amid right to sell and convoy the same: that the same are
free from all mcambrances,. whatsoever. ., _ _ -- - - - - --- --- -- -.-_
7777..
that the mortgagee, its successors and assigns, shall quietly enjoy and possess the same; end that the mortgagor s will Warrant and
Defend the title to the same against all lawful claims not herelnbefore specifically excepted.
{vroblbeb Qebrrthtttss, That if the said mortgago their executors or assigns
5.. heirs, d a st tors
shrll� es0t$5 �13 Toupees, its successors or assigns, the sum of_ Two Hundred Thousand and ,no /100
_ __ _ ....... .....Dollar,
according to the terms of one (� .. __ principal promissory note .... of even date hm.with due and payable,
and loan agreement of even date herewith providing for interest at the rate of
3% per annum. _
KdkaMnx& Akucamae. QllhFiPMkjPkxxxxxxxxzmx12727fR9E�Rk R•X'kkt,. - -_ _ - -__ -- ___77_7_7__ ...............
_..__._
executed by the said mortgagor -s -. and payable to said mortgagor, at its office ag aLtity Ball.,._R..D. Box 147,. .....
690. Coulter Orive,Chanhassen ,._HiAne.SO Gee 5,5.3.1.77..... __77.77_ ..____. .7 ...... 71___7
and shell repay to said mortgagee, its successors or assigns, at the times sad with interest on hereinafter specified, all sums advanced in
protecting the lien of this mortgage, in payment of taxes on said premises, insurance premiums covrneg buildings thereon, principal nr
interest on any prior liens, expense. and attorneys' fe. herein provided for and su a advnneed for any other purpose am horized hemin,
and shall keep and perform ell the covenants and agreements herein contained then this ,Iced to be null and void, and to be released at
the mortgagor's expense.
AND THE MORTGAGOR___.., far_ themselves, their. _heirs, administrators and executors, do 7771._. hereby
covenant and agree with the mortgages, its successors and assigns, to pay the principal earn of money and interest a above specified;
to pay all rases and asxxsments now due or that may hereafter become liens against said premises at least ten days before penalty attaches
I heretu; to keep any buildings on said premises insured by companies approved by the mortgagee against loss by fire for et lees, the
sector the full insurable value of the premises - -- - -- - - -- _ - - - - - -_
__...... _ ..._._._ _. ....._.. _ 7717... _._...... ..___..__.
- -- - -- ------------------ - _ GC-.7 Ml M and against loss by windstorm for at least the .sum of
7777.. 7777_ 7777__ 1. "-
the furl insurable value of the premises -. -- DOnms, and to deliver to said moot KaKrr
the policies for such insurance with mortgage clause attached in favor of said mortgagee or its assgns, to pay, when due, hot It principal
and interest of all prior lien. or iaeumbraner., if say, above mentioned and to keep said premises free and clear of it .,he, prior liens
or incumbranom to commit or permit no waste on said premises and to keep them in good repair; to complete forthwith any improve-
ments which may hereafter be under course of construction timee m, and to pay any other expenses and attorney's fees incurred by said
mortgagee, its successors or assigns, by mason of litigation with any third party for the protection of the lien of this mortgage.
V-- ra
In case of failure to par said taxes and assessments, prior liens or incumbrances, expenses and attornev's fees as above specified,
or to insure said buildings and deliver the policies as aforesaid, the martgaRet, its successors or assigns, mar pay such taws, sswssteents,
prior liens, expenses and nttnnnv's fee, and interest thereon, or effect such it and the soars in Paid shall bear interest at the
highest rate Permitted by law tram the date of such payment, shall be impressedsas a. additional lien upon said prerriae., and he immedi-
ately due andpuyable from the mwn tgagor.. s. ... .. their heirs or assSrs, tosold mnrtgagec, its sorccssor, m wsigns, and t his mortgage
shall Gam date thereof secure the mpavment of surh advances with inusest.
In the event any prior or superior mortgage or lien is in default, then the mortgagee
shall have the right to accelerate and declare this Mortgage immediately due and
payable without notice.
Upon request to mortgagee, the mortgagee shall subordinate this Mortgage to any
mortgage given by the mortgagor to an independent financial lending institution if
the mortgage is used exclusively to secure financing for improvements to the premises.
If the property herein described should be sold or otherwise transferred, at voluntary)
or judicial sale or otherwise, or if any part thereof should be so transferred,
mortgagee reserves the right, at its option, to declare the entire indebtedness
secured hereby due and payable without notice.
In case of default in anv of the foregoing covenant., the mnrtgagors___m nice _._...upon the mortgagee the union of declaring the
mtpaid balance of said principal into and the interest accrued there.., together with all sums advanced hereunder, immediately due
and ur ahlo without nmir.e, and hereby authorize and empower said mortgages, its successors and assigns, to foreclose that mortgage
by judicial proceedings or ,, .ail aid Pnan sc,i at public auction and convey the same to the purchaser in fee simple in accordance with
i he of crh foreclosure t, nd ....t I the n anima n atng from suelr isle to retain all sums seen red herebv, within terest and all legal costs and.charges
an o'
unrneY c fee permitted by law, which costs, charges and fees the mertRape.,._._herein agree___
to Fee,
III ftest11I Mijecf:of, The said dlortgagors.. have hereunto at _.......th,e„i,r.._.. ......... hand_ s_
the day and year firet above written. _
John H. Dorek_ .
William M. Baden
Geraldine D. Baden
Otate of Minnesota,
Countyof _._..__ ................._........... ......... .....................
The foregoing in.strut ent it as acknou ledled before ore by William M. Baden and Gerai dine D.
Baden, his wife and John H.Dorek 85
this .._.. _..._ day of. __....... __.._.,1y ._......,
NOTARIAL STAMP On SEAL (OR O rHER TITU OR RANK,
by
IN,.am. or or..o, ....n.we car E.1
_
eOoN 11a .e or 1 Is 1111 111111. 11 1.1 ...mute
THIS INSTRUMENT WAS DRAFTED BY (111'r ox a..asl
Grannis, Campbell, Farrell & Knutson
403 Norwest Bank Bldg. tM,mal
So. St. Paul, MN 55075 IAdde-
�
T O e
G e
gym` c� °
, � ''a
❑, '
/%�a11
o
,�
v
al
<.
I
°
., tie Z � n rC II
� .
{
PROMISSORY NOTE
Dated this day of , 1985 $200,000.00
FOR VALUE RECEIVED, the undersigned promise to pay to
the Order of The Housing and Redevelopment Authority in and for
the City of Chanhassen at P.O. Box 147, 690 Coulter Drive, Chanhassen,
Minnesota 55317, or at such other place as may be designated by
the holder hereof, the principal sum of $200,000.00 or so much thereof
as may hereafter be advanced with interest on the unpaid balance
at the rate of 3% per annum until paid in lawful money of the United
States of America in the following manner:
Equal annual payments of $13,150.00 of principal and in-
terest, with all payments first being made on interest
and the balance of such payments to be applied against
principal. Such annual payments shall commence one year
from the date hereof and continue for 20 years until May
1, 2005, when the entire unpaid principal, together with
all accrued interest shall be due and payable in full.
If any default is made in the payment of any of these installments
of principal and interest, the holder of this note may elect to
declare the unpaid balance of this note, including interest thereon
immediately due and payable without notice.
The undersigned has the option to prepay all or any part
of this loan at any time or from time to time.
Each maker, endorser, guarantor and surety hereof hereby
waives payment, presentment for payment, notice of payment, protest
and notice of protest and notice of default hereon and agrees to
pay in the event of a default hereunder the cost of collection in-
cluding a reasonable attorney's fee.
3/29/85 (16)
This note is secured by a real estate mortgage of even
date executed by the undersigned.
John H. Dorek
William N. Baden
r
-2-
i
LOAN AGREEMENT
Agreement made this day of 1985,
between The Housing and Redevelopment Authority in and for the City
of Chanhassen, hereinafter referred to as Lender and John H. Dorek
and William N. Baden, hereinafter referred to as Borrower.
WHEREAS, Lender has this day sold to Borrower certain
real property located in the County of Carver and State of Minnesota
as described on the attached Exhibit "A"; and
WHEREAS, in connection with the sale of such real estate
the Lender has agreed to lend such sums to Borrower up to the amount
of $200,000.00 to be used as needed in the construction of building
improvements necessary to construct a bowling center in the subject
property. The money may not be used for the purchase of bowling
equipment or fixtures;
WHEREAS, the Borrower shall sign a mortgage deed and a
mortgage note of even date in favor of the Lender to evidence and
secure said construction loan from Lender;
NOW THEREFORE, in consideration of the mutual covenants
and agreements of the parties herein contained, and as a part of
the mortgage note and mortgage deed to be signed by the parties
concurrently herewith, the parties agree as follows:
1. Lender shall make available to the Borrower sums up
® to a maximum of $200,000.00 to be used solely in connection with
the construction of certain building improvements described above
on the real property described in the mortgage deed. Such sum shall
be advanced by the Lender only upon completion of the building improve-
ments and issuance of a certificate of occupancy.
r3/29/85 (16)
2. As indicated in the corresponding mortgage note, in-
terest will be figured at 3% per annum by the Lender from the date
such sum is advanced.
3. This agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors
and assigns. However, the Borrower herein shall have no right to
assign its interest without the prior written consent of Lender.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF CHANHASSEN
BY
Clifford Whitehill, Chairman
BY
James R. Bohn, Secretary
John H. Dorek
William N. Baden
-2-
r
CONSENT TO ALTERATIONS AND CONSTRUCTION OF IMPROVEMENTS
This consent is made this day of , 1985,
by Gary V. Kirt, ( "Kirt "), John H. Dorek and William N. Baden,
( "Dorek and Baden "), and the Housing and Redevelopment Authority
in and for the City of Chanhassen, ( "HRA "), who are the owners
of the property described in the attached Exhibit "A ".
WHEREAS, Kirt and Dorek and Baden now the fee owners of
the property described on attached Exhibit "A" having purchased
the same from the HRA on May , 1985; and
WHEREAS, the HRA also retained the ownership of certain
property also described on attached Exhibit "A "; and
WHEREAS, Kirt, Dorek and Baden and the HRA all contemplate
certain alterations and construction of major improvements to
each of their individual properties as described on attached
Exhibit "B "; and
WHEREAS, prior to the HRA's sale to Kirt and to Dorek and
Baden, it executed and recorded a Declaration of Covenants,
Conditions, Restrictions, Easements and Party Wall Agreement,
(hereinafter referred to as "Declaration "), which requires all
adjoining party wall owners to give their prior consent to any
alteration of adjoining building premises;
NOW THEREFORE, the undersigned parties do hereby give their
consents as owners of property subject to such Declaration to
each other for the alterations and construction of improvements
r3/29/85 (EE1)
as described on attached Exhibit "B ", suject only to the follow-
ing conditions:
1. That the HRA gives its consent in general to the idea
of such improvements as required by said Declaration, but does
not hereby give its consent or approval to any specific improve-
ments, plans, specifications it must approve pursuant to Purchase
Agreements, deeds or other agreements between the HRA and the
other parties hereto;
2. That the plans and specifications for such alterations
and construction of improvements will not be substantially
changed or amended from those such plans and specifications
that are presently in existence and have been made available
for inspection by any of the parties hereto;
3. That any construction equipment or vehicles traveling
over the driveways contained on the undersigned property, if
damaged by such equipment or vehicles during the construction
period, shall be repaired and restored to its now existing con-
dition at the sole cost of the party causing such damage, which
repair and reconstruction shall be completed within 30 days
of the completion of the construction, weather permitting. At
no time shall such equipment or the construction vehicles' use
of the driveways so damage such driveways so as to render them
dangerous or impassable for those parties or persons with the
right to travel over the same. In such event, the party or
parties causing such conditions or damages shall immediately
repair or reconstruct the same at their sole cost.
-2-
i
i
This Consent dated this day of
by the undersigned parties who consent thereto to all of its
terms and conditions.
ry V. Kirt
John H. Dorek
William N. Baden
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF CHANHASSEN
, 1985,
BY:
Clifford Whitehill, Chairman
BY:
James R. Bohn, Secretary
-3-
I
DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND
EASEMENTS AND PARTY WALL AGREEMENT
This Declaration, made as of this day of April,
1985, by The Housing and Redevelopment Authority in and for the
City of Chanhassen, (hereinafter "the HRA "),
W I T N E S S E T H
WHEREAS, Declarant is the owner of certain property situated
in the County of Carver, State of Minnesota, legally described on
the attached Exhibit "A"
WHEREAS, Declarant intends to sell and convey portions
of the property with the division lines extending within the building
now situated on the property;
NOW THEREFORE, Declarant hereby declares that all of the
above described property shall be held, sold and conveyed subject
to the following covenants, conditions, restrictions and easements,
which are for the purpose of protecting the value and desirability
of such property and which shall run with the real property and
be binding on all of the parties having any right, title or interest
in the described properties or any part thereof, their heirs,
successors and assigns, and shall inure to the benefit of each such
owner or person of interest thereof.
ARTICLE I.
For the purpose of this Declaration, the following terms
shall have the following meanings.
A. "Building Unit" shall mean and refer to any portion
of an existing building situated upon the above described property
r3/29/8S (16)
I
designed and intended for use and occupancy for commercial and /or
business purpoes and not for residential purposes.
B. "Lot" shall mean and refer to any portion of the land
in the properties upon which a building unit is situated, whether
or not the same is a platted lot.
C. "Owner" shall mean and refer to the record title owner,
_ whether one or more persons or entities, of a fee simple title to
any lot which is a part of the property, including contract sellers
and vendees, but excluding those having such interest merely as
a security for the performance of an obligation, and excluding those
having a lien upon the property by provision or operation of law.
D. "The Property" or "Property" shall mean and refer
to the real property hereinbefore described.
ARTICLE II.
Section 1. Commercial and /or Business Use. No lot or build-
ing unit shall be used for residential purposes.
Section 2. Garbage and Refuse Removal. No lot shall be
used or maintained as a dumping ground for rubbish. Trash, garbage
or other waste products shall not be kept except in sanitary con-
tainers regularly collected and removed from the lot.
ARTICLE III.
Party Walls
Section 1. General Rules of Law to Apply. Each wall
which is built as part of the original construction of any building
unit upon the property which is placed or exists on the dividing
line between two building units shall constitute a party wall and
to the extent not inconsistent with the provisions of this article,
-2-
J
the general rules of law regarding party walls and of liability
for property damage due to negligent or willful acts or omissions
shall apply thereto.
Section 2. Share of Repair and Maintenance. The cost
of reasonable repair and maintenance of each party wall shall be
shared by the owners who make use of the wall in proportion to that
use.
Section 3. Destruction by Fire or Other Casualty. If
a party wall is destroyed or damaged by fire or other casualty or
by physical deterioration, any owner who has used the wall may restore
it, and shall have an easement over the adjoining building unit
for purposes of making such restoration, and if other owners thereafter
make use of the wall, they shall contribute to the cost of restoration
thereof in proportion to such use without prejudice, however, to
the right of any owner to call for a larger contribution from other
owners under any rule of law regarding liability for negligent or
willful acts or omissions which may have caused or contributed to
such destruction or damage.
Section 4. Weatherproofing. Notwithstanding any other
provision of this Article, any owner who by his negligent or willful
act causes any party wall to be exposed to the elements or excessive
heat or cold shall bear the whole cost of furnishing the necessary
protection against such elements or heat or cold, and of repairing
the party wall from damage caused by such exposure.
Section 5. Right to Contribution Runs with Land. The
right of any owner to contribution from any other owner under this
Article shall be appurtenant to the lot and shall pass to such owners,
successors in title.
-3-
Section 6. Arbitration. In the event of any dispute arising
from or concerning a party wall, or under the provisions of this
article, each party shall choose one arbitrator and such arbitrator
shall choose one additional arbitrator, and the decision of a majority'
of all the arbitrators shall be final and conclusive of the question
involved. If either party refuses or fails to promptly appoint an
— arbitrator, the same may be appointed by any district judge in and
for Carver County, Minnesota. Arbitration shall be conducted in
accordance with the rules of the American Arbitration Association.
Section 7. Encroachment. If any portions of a building
unit or any lot shall actually encroach upon any other lot, or if
any such encroachment shall hereafter arise because of settling
or shifting of the building or for any other cause, there shall
be deemed to be easements in favor of the owner of the encroaching
building unit to the extent of such encroachments so long as the
same shall exist.
Section 8. Mechanic's Liens. Each owner of a building
unit responsible for or making repairs or replacements to such a
party wall agrees to indemnify and hold harmless the owner or owners
of an adjoining building unit to that party wall for any mechanic's
liens or claims arising from work done or materials supplied to
make such repairs or replacements to the party wall for which the
first above stated owner of a building unit is responsible.
-4-
ARTICLE IV.
Section 1. Insurance - Replacement. Each owner shall
maintain fire and extended coverage on his building unit in the
full replacement cost thereof, and shall, in the event of damage
to or destruction of his building unit, restore it to the condition
in which it was prior to the damage or destruction.
Section 2. Maintenance. Each owner of a building unit
shall maintain his slot and the exterior of his building unit in
good condition, repair and in a neat and clean condition.
Section 3. Architectural Control. The owner of a building
unit may replace exterior components of his building unit with similar
components of the same design and color, and may paint or replace
the exterior of his building unit with paint or materials of the
same existing color or materials of the exterior, but he may not,
either in the course of ordinary replacement, remodeling or restora-
tion after damage or destruction, employ different painting, siding,
materials, or roofing materials of a different color scheme or style,
without the consent of the owner of the adjoining building unit.
In the event of a dispute arising concerning a change in siding,
roofing material or color or material usage, each party shall choose
one arbitrator and each arbitrator shall choose one additional arbitra-
tor, and the decision of a majority of all the arbitrators shall
be final and conclusive of the question involved. The arbitrator's
decision shall be based on their decision of whether the proposed
siding or roofing material or color or material is in harmony with
the design of the adjoining building unit. If either party refuses
or fails to promptly appoint an arbitrator, the same may be appointed
-5-
by a district judge in and for Carver County, Minnesota. Arbitration
shall be in accordance with the rules of the American Arbitration
Association.
ARTICLE V.
Easements
Section 1. Ingress and Egress. All owners and their
successors, heirs, assigns, invitees and employees shall have a
nonexclusive permanent easement for ingress and egress purposes
over and across all driveways and portions of the property described
on attached Exhibit A presently used for driveway or roadway purposes,
and for access to public roadways. The right to ingress and egress
by nonowners over the property described in Exhibit B, however,
shall expire if and when the City of Chanhassen constructs a road
abutting the westerly side of the subject property.
Section 2. Parking. All owners, their successors, heirs,
assigns, invitees and employees shall have a nonexclusive permanent
easement for parking areas presently existing or to be added to
the property described on attached Exhibit A and the land to be
obtained by the HRA for additional parking area as described on
attached Exhibit C.
Section 3. Maintenance. The owner of each separate parcel
of land within the lands described on attached Exhibits A and B
shall maintain and keep in good repair and passable condition all
portions of the driveways, lands for ingress and egress purposes
and parking areas referred to in Sections 1 and'2 of this Article
at such owner's sole expense and responsibility.
Section 4. Utilities. All owners, their successors,
heirs and assigns shall have nonexclusive permanent easements across
such portions of their properties as are presently encumbered with
existing utility wires, pipes, conduits and necessary related equipment
used by other owner or owners of property within the land described
-6-
on attached Exhibit A. Such easements shall extend to any other
adjacent property to that now presently encumbered with such utilities
for purposes of routine and extraordinary maintenance and repair,
and the replacement by utility system of similar type and size.
All such costs of maintenance, repair and replacement shall be borne
by the party responsible for any damage thereto, or the party receiving
the utility services in question and they shall indemnify and hold
harmless the owner(s) of the property subject to such encumbering
utility systems from all claims for labor, materials, property damage
or personal in connection therewith, unless caused by said owners
of the subject property.
Section 5. Roof. All owners, their successors, heirs
and assigns shall have nonexclusive permanent easements across the
portions of roofs and ceilings of the buildings situated on land
described on Exhibit A for purposes only of routine and extraordinary
repair and maintenance. If such roof or ceiling requires repair
to only a section thereof wholly located within a particular owner's
premises and can be repaired or replaced without repairing or replacing
the entire roof of the building, then such particular owner shall
be wholly responsible for the cost of such repairs, maintenance
or replacement. If such repair, replacement or maintenance is required
over the roof or ceiling portions situated in more than one owner's
premises, all owners then shall share in the cost of such work on
a proportionate basis to the amount of their ceiling or roof needing
repair to the total repaired area.
-7-
ARTICLE VI.
Section 1. Enforcement. Any owner shall have the right
to enforce, by any proceedings at law or in equity, or both, all
of the terms and provisions of this Declaration against any persons
or owner violating or attempting to violate any provision of this
Declaration either to restrain the violation or to recover monetary
damages therefor.
Section 2. Amendments. These covenants are to run with
the land and shall be binding on all parties and all persons claiming
under them for a period of 30 years from the date these covenants
are recorded, after which time said covenants will be automatically
extended for successive periods of ten years unless an instrument
signed by a majority of the then owners of the lots contained in
the above described property has been recorded, agreeing to change
the covenants in whole or in part.
IN WITNESS WHEREOF, the undersigned, being the Declarant
herein, has caused this Declaration to be executed in its name by
its Chairman and its Secretary and its seal affixed hereto this
day of , 1985.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF CHANHASSEN
BY
Clifford Whitehill, Chairman
BY
James R. Bohn, Secretary
STATE OF MINNESOTA)
(ss
COUNTY OF CARVER )
On this day of 1985, before me
a notary public within and for said County, personally appeared
Clifford Whitehill and James R. Bohn, to me personally known, who,
being each by me duly sworn, did say that they are respectively
_ the Chairman and Secretary of The Housing and Redevelopment Authority
in and for the city of Chanhassen, and the instrument was signed
and sealed in behalf of said corporation by authority of its Board
of Commissioners, and they acknowledged that said instrument was
the free act and deed of said corporation.
DRAFTED BY:
Grannis, Campbell, Farrell
& Knutson
'-' 403 Norwest Bank Bldg.
South St. Paul, MN 55075
(612) 455 -1661
I
Notary
ffils;'n