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Home My WebLink About2014-12-17 PACKET 04.J. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 12/17/14 d � PREPARED BY: Community Development Jennifer Levitt ORIGINATING DEPARTMENT STAFF AUTHOR *************�********************************** COUNCIL ACTION REQUEST Consider approving variances to minimum landscaping requirements, architecture, and self- storage facility, and a conditional use permit and site plan review to allow construction of five storage condominium structures having approximately 237,778 square feet of cumulative floor area at 7552 West Point Douglas Road. STAFF RECOMMENDATION: Adopt the resolution approving the variances, conditional use permit, and site plan review. ADVISORY COMMISSION ACTION DATE � PLANNING 11/24/14 ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES/RIGHTS � ECONOMIC DEV. AUTHORITY 11/12/14 ❑ SUPPORTING DOCUMENTS REVIEWED ❑ ❑ ❑ ❑ ❑ � ❑ � MEMO/LETTER: Memo from John McCool dated 12/9/14 � RESOLUTION: Draft ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: � OTHER: Excerpt from unapproved minutes of 11/24/14 Exhibits and Plans ADMINISTRATOR'S COMMENTS APPROVED � ❑ ❑ ❑ ❑ ❑ ❑ DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ Planning Commission meeting , �` �}-�d 11 City Administrator Date *************��**********�**�*******�**�******** COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER Cottage � Grove � Pride ana PCOSPerity Meet TO: Mayor and Members of the City Council Ryan Schroeder, City Administrator FROM: John McCool, Senior Planner DATE: December 9, 2014 RE: Park Place Storage Condominium — Variance, Conditional Use Permit and Site Plan Applications Proposal Park Place Storage has applied for the following planning applications: A variance to Title 11-6-5, Landscaping Requirements, to reduce the required minimum num- ber of overstory deciduous trees from 131 to 17, reduce the required minimum number of coniferous trees from 122 to 13, and reduce the required minimum number of large and small shrubs from 564 to 527. 2. A variance to Title 11-6-13, Architecture, to reduce the amount of Class 1 exterior building ma- terials from the required minimum of 65 percent to approximately 17.7 percent and increasing the amount of Class 4 materials from a 10 percent maximum to approximately 82.3 percent. 3. A variance to Title 11-10D-7, Self-Storage Facilities, which requires self-storage facilities to be a minimum of 300 feet from any residential use and/or residential zoning district. The distance between the residential dwelling located southeast of the proposed developing site and the closest storage building is approximately 150 feet. � 4. A site plan and conditional use permit for the construction of five commercial structures with a cumulative gross floor area of approximately 237,778 square feet and ancillary site improve- ments to be located at 7552 West Point Douglas Road. The developer's proposal is to develop a 12.94-acre vacant commercial parcel located at 7552 West Point Douglas Road. The project consists of constructing five self-storage structures with a cumulative gross floor area of 237,778 square feet. Construction of the buildings will be phased, depending on sales for individual condominium storage units that range between 300 to 15,000 square feet. The units will be owned by individuals that will be part of an overall association that maintains all the common areas on the site and operations (e.g.; snow removal, lawn and land- scaping care, security cameras, etc.). The total number of units depends on the amount or size each individual owner purchases within the building. The property is located between West Point Douglas Road and the Soo Line Railroad track and southeast of the Metro Transit Park and Ride facility. A location map is shown below: Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium — Variance, CUP & Site Plan Applications December 9, 2014 Page 2 of 17 Location Map Review Process Application Received: October 29, 2014 Acceptance of Completed Application: October 29, 2014 Tentative City Council Date: December 17, 2014 60-Day Review Deadline: December 27, 2014 Planning Commission Recommendation The Planning Commission reviewed the applications for the variances and conditional use permit/ site plan review at the public hearing on November 24, 2014. The applicant attended the meeting and responded to questions asked by the Planning Commission. No public testimony or written comments were received at that the public hearing. The Planning Commission had general questions pertaining to heating units within the storage units, size of typical units, and covenant requirements relating to outdoor storage, living quarters, and individual business operations. The applicant reported that a declaration document will be prepared and recorded at Washington County whereby said document will set forth the allocation of common interest and common expense liability for each unit, the association's and owner's up- keep and maintenance responsibilities, noise, signs, outdoor storage, parking, and miscellaneous rules and regulations. Commission members generally supported the project with the opinion that this type of use at this location is appropriate and will add additional property tax value to the community. Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium — Variance, CUP & Site Plan Applications December 9, 2014 Page 3 of 17 The Commission made two recommendations for the City Council's consideration. The first rec- ommendation was approving the three variances described in the Proposal section of this memo- randum. This recommendation was unanimously (8-to-0 vote) approved and without any changes to the Findings of Facts. The second recommendation to approve the site plan and conditional use permit was also unan- imously (8-to-0 vote) approved as presented, but two additional conditions were added. The first added condition of approval required the submittal of an operating budget and reserve replace- ment study and a staging plan. The 28 conditions listed in the planning staff report and the two additional conditions were inserted in the draft resolution for your consideration. An excerpt from the Planning Commission's unapproved minutes is attached. Planning Considerations Ordinance Criteria The proposed condominium storage facility is zoned Retail Business (B-2). This zoning classifi- cation is consistent with the commercial land use designation shown on the Future Land Use Map of the City's Future Vision 2030 Comprehensive Plan, adopted on March 2, 2011. The proposed storage facility is permitted as a conditional use in the B-2 District. The City's Zoning Ordinance requires site plan approval for new structures and major additions to existing structures. The purpose of the site plan review is to ensure that new development con- forms to the City's development standards and ordinance regulations. All the minimum building setbacks and maximum building height regulations are met. Exterior building materials for commercial buildings are required to use three different Class 1 materials and composed of a least 65 percent of Class 1 materials and not more than 10 percent of Class 4 materials. Class I materiats include copper panels, fired clay face brick, natural stone, transparent glass, or other comparable or superior materials. Class 4 materials are ceramic, glass block, industrial grade concrete precast panels, smooth concrete block, smooth scored concrete block, steel or aluminum siding, and wood. Site Characteristics The 12.94-acre vacant commercial parcel was formerly the site of the Four Seasons Golf Dome and Par 3 Golf Course. The golf dome structure was removed many years ago and the majority of the trees that existed on the site were removed earlier this year. The site is relatively flat with ap- proximately 723 feet of frontage along West Point Douglas Road. The depth of the parcel is approximately 585 feet. A windrow of deciduous trees are aligned along the southeast property boundary line. The Soo Line Railroad Co. railroad tracks parallel the rear property line. The Metro Park and Ride facility abuts the northerly property boundary line of the subject site, and a residential acreage is south of the proposed development site. A 2013 aerial photo of the site is shown below. Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium — Variance, CUP & Site Plan Applications December 9, 2014 Page 4 of 17 r r - . --• ;., . t �� .. . `�,76�6�1c��r _7�` � .� .k `~ _ a� �'y��`�'F - �i .. � - ��. ...,� .._✓ �J y � .- � '. s .._ nA_t_�n__I. O. n:Ji. 2013 Aerial Photo Landscaping The total impervious surFace area for the proposed storage facility site is approximately 420,252 square feet (9.65 acres) or approximately 75 percent of the 12.94-acre site. The remaining green/ open space is approximately 3.3 acres (25 percent of the site). The north side yard and rear yard is ten feet wide. The majority of the open space is along the southerly boundary line where a stormwater basin and snow storage areas are proposed. The front yard setback averages ap- proximately 36 feet (minimum front yard setback is 30 feet). Because there is so much impervious surFace and a large stormwater basin in the southwest corner of the site, the amount of green space remaining for landscaping is significantly limited. Minimum landscaping regulations require more plant quantities than what the available green space can reasonably accommodate. For the City's consideration, an alternative compliance to the minimum landscaping standards for this type of commercial use is a cash payment to the City in lieu of planting all the trees and shrubs. This payment would be deposited into the City's landscaping initiative account for future public landscaping improvements in this vicinity of the community. If this idea is acceptable, a variance to ordinance regulations will not be necessary. City staff would not support a variance to substan- tially reduce plant quantities without cash payment to the City that is equivalent to the unit prices for those plant species that are not planted. A summary of the ordinance requirements for landscaping and the developer's proposal for land- scaping is compared in the table below: Required Plantings Required Minimum Quantities Proposed Quantities Overstor Deciduous Trees 131 17 Coniferous Trees 122 13 Large Shrubs 282 109 Small Shrubs 282 418 Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium — Variance, CUP & Site Plan Applications December 9, 2014 Page 5 of 17 Because the tree and shrub quantities are deficient from minimum ordinance regulations, it is recommended that the developer pay $61,629.00 to the City. This payment will be deposited into the City's landscaping initiative account for future public landscaping improvements in this vicinity. The developer is requesting that this payment in lieu of landscaping not be required. The table below is a breakdown of the estimated landscaping costs for the deficit number of plantings. Required Plantings Quantity Price Per Plant Payment to City Overstory Deciduous Trees (2.5 inch 114 $278 $31,692 trunk caliper) Coniferous Trees (6 foot) 109 $255 $27,795 Large and Small Shrubs (12-36 inch 37 $21 $777 height) Additional Landscape along Major 15 $278 $4,170 Collector (overstor deciduous trees) Additional Landscape along Major 15 $255 $3,825 Collector (coniferous trees) Sub-total $68,259 Quantity Credits (proposed 20-foot tall 26 $255 $6,630 coniferous trees) Total $61,629 There is a city watermain along the northerly property line that extends from West Point Douglas Road to the northwest corner of the proposed development site. The developer proposes to plant 109 spartan junipers along this boundary line to screen the storage condominium facility from the Park and Ride facility. The Public Works Department is agreeable to allow these conifer shrubs over the watermain with the understanding that if the watermain needed to be repaired, main- tained, or replaced, the Park Place Storage Condominium ownership will be responsible for re- placing the fence and plantings. Photographs of that area adjoining the Park and Ride facility are shown below. � r.: . n . - _ � � �� , s �� . �� - , :�: ��f �'""`: - '� ;� . _'��'��: .`, ;'. Boundary between proposed site and Park & Ride Facility Photograph from Park & Ride site looking s�uth Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium — Variance, CUP & Site Plan Applications December 9, 2014 Page 6 of 17 In the southeast corner of the proposed development site, the applicant proposes to grade a five- foot high earth berm and plant 13 conifer trees and a variety of shrubs with varying heights of 12 inches, 24 inches, and 36 inches. The combination of the earth berm, coniferous trees, and de- ciduous shrubs in this corner of the site is intended to mitigate views of the. storage facility from the adjoining residential dwelling. The photograph below shows the existing plant materials that will be south of the proposed Building A and five-foot tall earth berm. Tree Mitigation City ordinance allows new commercial development to remove up to 30 percent of existing trees without mitigation. For this 13-acre site, the property owner removed approximately 20 qualifying trees in the spring of this year. Tree removal was done without the preparation of a tree inventory, so city staff visited the site to document the number of trees that were removed. There are still qualifying trees that remain standing on the site, but will be removed with this development plan. A letter was sent last spring to the property owner informing them of City ordinance regulations concerning tree removal and tree mitigation requirements. Because the proposed project will require all the trees on the site to be removed, the property owner must mitigate the tree loss by either replanting or paying cash in lieu of replacement to the City. Since the developer is already not planting all the required quantities for landscaping, it is required that a cash payment is made to the City. The City is accepting the idea that the 20 tree removed from the site last summer was done to prepare the site for farming. The part of the property was tilled and agricultural uses are permit- ted uses in the commercial districts. For this reason, tree mitigation will not be required for the 20 trees. The table below summarizes the tree inventory and the estimated tree mitigation: -._. � :�.._ �.:� - --�. Photograph of existing trees north of neighboring residential dwelling Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium — Variance, CUP & Site Plan Applications December 9, 2014 Page 7 of 17 Estimated 30% No. of Net Removal Net Number Tree Total Number Qualifying Trees, No. of Tree No. of the Net of Trees Replacement of Trees Tree Including Trees Price Per Tree Mitigation Removed Trees Removed of No. of Requiring Ratio Required for Fee Already Trees Trees Mitigation (Category B) Replacement Removed Permitted Coniferous tree $255ltree $4,080 12'-24' 17 5 12 4 8 2 16 6-ft. height height Softwood Deciduous 53 15 38 11 27 2 54 $Z�s�tree 2.5-in. 12" — 24" trunk diameter �15,012 trunk dia. Total 70 20 50 15 35 70 $19,092 In addition to the payment to the City for the landscaping in lieu of planting all the required trees and shrubs, the developer is required to make payment to the City for tree mitigation since the developer has removed more than the 30 percent of the trees allowed by City ordinance. City staff is suggesting that these payments be made to the City on a per building square foot basis. Because the size and quantity of storage building that will be constructed with each phase is not known, the mitigation payment will be determined with each building permit application, which shows the total building square footage for that phase. The total building square footage for this project is 237,778. The deficit landscaping amount is $61,629 and tree mitigation is $19,092 for a total of $80,721. This equates to $0.34 per square foot. Fencing/Gate The developer is proposing to erect a security fence around the perimeter of the site. The fence will be either six or eight feet in height. The City is requiring that if a fence is constructed, its de- sign and materials must match the specifications of a Montage commercial Majestic 3/4 — rail fence. This type of fencing is used by other commercial properties within the Gateway Districts. An illustration of this type of fence is shown below. ' r �;! - . . - �'.�, - � � rJ, �n � - d` � I�°'3•r ,r•'• . _.. ,�.'a� Fencing material and design within the Gateway� District �,�' �� Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium — Variance, CUP & Site Plan Applications December 9, 2014 Page 8 of 17 This type of fence is typically constructed of aluminum or galvanized steel tubular materials that are held together by welding the metal pieces together. The fence materials are pre-treatment/ wash followed by an application of epoxy primer, which enhances corrosion protection. An acrylic black-colored paint to protect it from adverse weather effects is the final finish. The fencing might be installed as each building construction phase is completed. Only one access drive is proposed for this project. It is located in the same general vicinity as the existing driveway. The new driveway is proposed to be 30 feet wide with a 20-foot radius on each side of the drive as it ties in with the curbing along West Point Douglas Road. A security gate is proposed at the entrance of the property. This gated entrance will be approximately 34 feet from the West Point Douglas Road roadway edge. This spacing will only allow one vehicle to park in front of the gate before the gate can be opened to allow passage into the site. Details of the gate's construction materials has not yet been designed. A chain link fence with or without vinyl slats is prohibited. An illustration of the building's front wall and gated entrance is shown below. Architecture The five storage structures range from the smallest building (Building E) with 24,940 square feet to the largest (Building C) with 64,800 square feet. The table below summarizes the height, dimen- sions, and square footage for each building: Building Building Height Building Dimensions Gross Floor Area Building A 20 ft. (approx.) 50 ft. x 594 ft. 29,828 sq. ft. Building B 16 ft. —17.5 ft. 90 ft. x 605 ft. 56,610 sq. ft. Building C 16 ft. —17.5 ft. 90 ft. x 720 ft. 64,800 sq. ft. Building D 16 ft. — 17.5 ft. 80 ft. x 770 ft. 61,600 sq. ft. Building E 16 ft. — 17.5 ft. 30 ft. x 831 ft. 24,940 sq. ft. Total - - 237,778 sq. ft. All the buildings parallel West Point Douglas Road. Building A is closest to the frontage road and is the tallest building (20-foot height) of the five proposed structures. The other storage buildings will be 16 to 17.5 feet in height. The exterior materials facing West Point Douglas Road for this structure is precast concrete panels. Buildirg A is proposed to have a variety of panel te�ures, colors, and design to enhance its appearance from public roadways. This design includes four 1-foot by 30-foot wall extensions forward from the main structure to provide a change in the wall plane, texture, and Proposed Gated Entrance Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium — Variance, CUP & Site Plan Applications December 9, 2014 Page 9 of 17 masonry patterns that will divide the 594-foot wall length into scaled proportions. These extensions will also be approximately two feet above the main roof height to provide a varying roof-line. Win- dows are also proposed along the upper elevation of Building A's exterior wall with a horizontal metal panel canopy facing the public roadways. This design generally complies with the architecture requirements. The proposed concrete panels facing the public roadways for Building A could be considered a com- parable material with the Class 1 general design objectives. This would only be supported as long as the concrete panels are not a"raked" texture and the color �igments are impregnated throughout the entire concrete panel. The insulated structural metal panels for the west side of Building A and the other four buildings interior to the site are not compliant with the commercial architecture require- ment that a minimum of 65 percent of the building's exterior materials consist of Class 1 materials. The total square footage for the exterior wall areas on all five buildings is approximately 133,506 square feet. The front wall and the two end walls of Building A represents approximately 54 percent of Class 1 materials and approximately 10.4 percent for all of the 133,496 square foot total wall areas. If the end walls for the other four buildings are constructed with Class 1 materials, then the total wall area comprised of Class 1 materials is approximately 17.7 percent. Class 1 materials in- clude copper panels, fired clay face brick, natural stone, transparent glass, synthetic or cultured stone, opaque or mirror window panels, and other comparable or superior materials. The proposed insulated structural metal panels is a Class 4 material and accounts for approximately 82.3 percent of all the exterior wall areas for all five buildings. City ordinance stipulates that not more than 10 per- cent of a Class 4 material should be used for commercial buildings. City staff is also of the opinion that the exterior walls on the ends of the building's interior to the site should be constructed with the same type of concrete panels as proposed along the front of Building A. The ends of these other storage buildings face the Metro Transit Park and Ride on the north side of the site and the adjoining residential structure on the south side of the site. These end-caps and a portion of the wall facing east are visible from the public roadway. The developer is proposing to add an architectural feature on the end caps of each building that will be constructed of a Class 4 mate- rial. An illustration of their proposed architectural feature is shown below. . Proposed Class 4 Architectural Feature �. .{� : �::,— — � �� s ,:�. — — � �k � � �+� $ �, �a , .r r �.v�w�k�t-� ti . !r y � ,^ �, � . T�4 . ,+ . . .. . •'•~.�- � rr . �'�,� :.r �; �� _ 'il1� --� �.-� -- �r �z.r„_ - �r. . __ Proposed Class 4 Architectural Feature on Ends of Buildings The City is requesting that the final architectural plans and exterior construction materials and colors be reviewed and approved by the Planning Department prior to the issuance of a building permit. Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium — Variance, CUP & Site Plan Applications December 9, 2014 Page 10 of 17 An illustration showing the ends of the buildings is displayed below. . We�t PoinX �ouglas�c3acL-_ ....,�_ --°.-.-�—. _-.- ,,- �_ Class4 Material �� ' ' - ° „_R � -•-> : _ - . , a.�.... 1�-y �• ' Accents Proposed �-: - - ��_'�' ��,f:w,�:>-w;,; � 1. . . �� ` ' - <t �-4�•a• 7 - � ,-�..� b .": � ; or - .rz .`- ' ". � � --- �,,_,,�; ��.BUild� g �R `r,�. .. . BuildingA a. � - ; r, , : : �: i K.. . . ;LL , , ', � ! � � � I in'�`.. I � E L � a 0 C d G I =o�� . i ._ ,_f � .r . .r• . E . L1•'r �1�.'. MT ,,. , Building B '� .� i '4; . \ ' . �t.. . -� � • .. �,!\ a' �°� �ne�it�.��iA� r�.E�ti�•::, �� xT��_,�� BuiidingC .�... .....,...-.....�....u.. .. �.....�, ..�.�.��..�_...n�.m. ..�..... -.. �. ��. r.. �..-_ .. .r..,_ x�.._,.. T-.z t� ;;,:-� �r �,- - BuildingD �, m� � � Railroad Propeety/Tracks Class 4 Material Accents Propose� \ 'f °' . ani ,l\ ^ \ \. . �.�...._. , . S�'., . \ �\:, ;, a , . f ;� , i \' � '� `. � \ L ; ` \ � , :`<N:�;.-...., � � ..: � .,_. • i .�, .._: � " , .. .. � ... ------�. `'' '. '' ---------- Buildings B through E with Class 1 materials represents about 9,715 square feet or about 7.3 per- cent of the total wall area for all five storage buildings. The red colored lines on the illustration above represent approximately 10 percent of the wall space for the entire project. Additional information is needed to determine how these two types of materials can structurally be joined together. Connecting the concrete panel and an insulated structural metal panel probably can be achieved at the building's corners, but this detail must still be reviewed by the Building Official to determine that it will comply with building code requirements. This proposed storage facility will generally only be accessed by unit owners through a security gate. For this reason and because of its location ne� to the railroad tracks, the City needs to decide if the architecture requirements were intended for this type of commercial use and if the 65 percent Class 1 material requirement was intended for walls that are interior to a site that are generally not or indi- rectly seen from public roadways. Front Building Elevation Facing West Point Douglas Road Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium — Variance, CUP & Site Plan Applications December 9, 2014 Page 11 of 17 ,�.� F �� '"� �� - -- . _ - ,.- � _ �L- Y -i� _ - ' C" �� .•-' .� `:�-= �� t : - - -- - - i_ - . _, . � _. — - - - - , _ r _�� 'T�i� � . , L-'- .. ""_'�. . T' �.- - ' t �v. - ' . ' s� 4 � � '��t . ' �� _r_�— _ :. r i '_"'..`_s._��""�" . " � _ ._- -- '_ .. _ _ __- * . : _ . � Front Building Elevation Along West Point Douglas Road Below are photographs of privately-owned storage bays of similar condominium storage facilities: Front Building Elevation and Security Gate Along West Point Douglas Road Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium — Variance, CUP & Site Plan Applications December 9, 2014 Page 12 of 17 Self-Storage Facility Regulations Title 11-10D(7) of the Zoning Ordinance requires self-storage facilities to be a minimum of 300 feet from any residential use and/or residential zoning district. There is an existing residential dwelling on the abutting property to the southeast of the project site. The distance between the residential dwelling and the closest storage building is approximately 150 feet. The developer is proposing to grade a five-foot high earth berm and plant evergreen trees and a variety of shrubs on the berm to mitigate site lines from the dwelling into the storage facility property. An aerial photo of this area and the proposed landscaping plan are shown below. :�/� � ,.+. • . - -.� �4 r� . � r�' �Yv 7 ♦. ; � `�� '�` J f �� ' �� '` �� , � ' � `-4 �~' � n � � �', �~ . ,� •; �1Uletro Park � # ` � ��. �.�'�� ``�., a�� f . . . � � ` ,ri t� • � � �r � �., �'+� `�; � •�tide ,�' � ,�, �; �. , �� , � ,��. ! � .', .�, .,,,,, ..; ;.,� ; ., „�' ♦ �; ` ��,.�t�,r r�._�',1 '�j �.�', '� '9,r,, , y,, � �' �, ``�.� �s ` �,�'i��_.yl ,I�'�:_•'��^ - . i , �Yi�i 9.� u' e +a L1 # y � ^' t � � .\�" ! � � �1 -. � • ��. •.. � �,� �,' . ' � vl� j a �y ` •� ►�� ' � �`►► ��s. �';., ;r � ; = Ui� � q ' �- \, " = : 3 �'`� � �`�i,� �� '�� ``'�, �lii U `9 � �" `'�� ;� �;'�►-'`` �f� �.� : . � � e i�. . . .r'�. ��} . �N• , . _ S 4 � ``� A. �`4� ♦ i �'�� Q � �e'i � v/ �9A � , . •. � �,,,� ,�� • � �±�.. e ��`..,� ��/� .. ��;� ��l� �� E��`• � . _ ':, ��: .,�.�.,. �i� :, � x��. ,� . r 1� �`� }� � ` �, �� I � � �� , �� E.`n� ,- �i� � \ -•� � , �i i '� c � � �C' 7 ��. 6�4��, '� ��' � �,�� ! ';.. , �`�,>�. •' • •' i.. ��`� � �.�.,�i�9 .;�,.. �� a � -.�� .'_t '�,•. ,. .� �1�. . � -� � . �+�� ,, ..�� • '."�� - / � � - � . �.� � f ^�, .r ,' �►'' - � , �' � + 4 �'�' �' � t ^,�., �, ' y»�s.l � t�1 ' a � ,� j �`, .� y �' `� '� � � � . � 1 '� � , � . � " ' r ,.� �, A, � �� ``. . � � k � �.ti :� f . . - t ��A � , 1j �� ',�j '��\' `� � .� � � �:* � � � a � M ± �{�'� - � .'�� .. ` '. • � • h� � i% _ _ :\ �ti - . - +4 .� �!�, � •� ' �� ,y { . . M . r , .. � . r 0`-� , . . • •' . . . � , _; \ 1 � 't �, , •♦ p 75 1 SO 30{l 450 � , t� • r �� 5� - s-- �- �� - •! '`� , �, �� , � Aerial Photo dated 2009 Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium - Variance, CUP & Site Plan Applications December 9, 2014 Page 13 of 17 �. --, � , � � � � � . . . . . -�. __._.__,. .„ .. . . -- -•,}• - � �� n.. •� ..x.�iar..y:'r� -.^----"._ �' .i.:� -.:.�- _ — - �..,,r.; 1 . / �I i�*� _.�� .�� •_ :�'`_�,..� _ C��3) ( �-- Building A '..' " . ` °- ' �� ,. ,._...._...,..�.. ..�...,...a........e...,,��._ �...om.,.,�.w � _ __------------- --- — � B uilding B �,°.(stw�e+�:: q u.��: s � EVERGREENTREES � SHRUBS RESIDENTIAL DWELLING SHRUBS �. , :� i ----___________�_��_� _. _ ____ .___�_.�.. ' `,,\ `� Building C „ .�.��_. �... ._ `,;,� ,rT � I_.�.--- -- _ __----__... �. ._ 9 2 '�l . ........ . _.. ...... .._.... . . .. _._.,._.....,.. .,........_Y. ... _.. f { f`�9��9 Building 0„ .s � �..: �, ., .�..,,, � = d �,r ( � . , ; __ .._.. ._.. _. ._.�._. __. . .._ ..._._ ._. �; _ _ . . . _ _ Builclin E �� - - .. �, , -- .$.- � - - The question is whether or not a variance should be granted to allow the 300-foot minimum separa- tion requirement between the self-storage facility and a residential dwelling to be reduced to approx- imately 150 feet. The proposed storage facility will not have any outdoor storage and will not create much daily traffic or outdoor parking. A security fence is proposed around the perimeter of the prop- erty boundaries. The fence design is required to appear like a wrought iron fence that is similar to other fences in the Gateway District. Utilities The subject property is within the Metropolitan Urban Service Area (MUSA). Previous to the abandonment of the former Four Seasons Golf Dome and par-three golf course, a private well and septic system provided water and sewer services on the site. The private well has been capped and sealed and the sanitary septic system has been removed. City sanitary sewer and water service stubs were extended to the front property boundary line and will be extended onto the site by the applicant's contractor. A wash bay and RV dump station is proposed at the northerly end of Building B. Fire suppression service lines will be installed in all the buildings. The Fire Department is requiring that a"storz" fire department connector be installed on all exterior fire connection valves. All city utilities in this vicinity provide the necessary capacities to serve this proposed commercial project. Development fees and area charges for redeveloping this site will be added to the build- ing permit. An eight-inch diameter watermain system will loop around the site and provide fire suppression service to all the buildings. Four fire hydrants will be installed, two along the north property line and two along the north side of the stormwater basin and earth-berm. The property owner is re- quired to prepare the legal description and sketch of a utility easement covering the private watermain system interior to the site and permit city access to the water system to flush water Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium — Variance, CUP & Site Plan Applications December 9, 2014 Page 14 of 17 through the system. The property owner is responsible to maintain their private watermains, hydrants, and fire suppression systems. Park Fee City ordinance requires land to be dedicated if the City deems it in the public interest to require a park amenity. For this project site, no land is needed to develop or expand any park system in this vicinity, but the ordinance does require an equivalent cash payment in lieu of land dedication not to exceed four percent of the fair market value of the land before any improvements are made to the property. For this project, the fair market value of the site is $2.12 per square foot. The site is 12.94 gross acres. Credit will be given for the stormwater basin that is below the high water elevation (0.12 acres). The net land area above the high water elevation is then 12.82 acres. The total park fee in lieu of land dedication is $47,355.64 based on net acres. City staff is recommending that the park fee in lieu of land dedication be paid with the building permit for each phase of development. The total square footage for all the buildings is 237,778 square feet. Based on the four percent park fee in lieu of land dedication, the park fee equates to $0.20 per square foot of building. Based on the building square footage at the time a building permit is issued for each phase, the park fee in lieu of land dedication will be collected at the time the building permit is issued. Not all the park fee in lieu of land dedication will be collected if not all the 237,778 square feet of buildings are constructed. For this reason, staff is recommending that the balance owed for the park fee in lieu of land dedication must be paid in full on or before January 1, 2019. Public Sidewalk The site plan shows a five-foot wide concrete sidewalk paralleling West Point Douglas Road. Be- cause this segment of West Point Douglas Road is designated as a major collector roadway in the Transpiration Section of the City's Future Vision 2030 Comprehensive Plan, a six-foot wide concrete sidewalk is required. City staff recognizes that the north and south ends of the sidewalk do not connect to any existing sidewalk, but it has been the City's requirement that new development along this roadway corri- dor construct their section of the sidewalk at the time development occurs. Stormwater Management Plan A stormwater basin is proposed to be graded in the southwest corner of the site. All the surface water runoff from the buildings and impervious surfaces will drain into this basin. The 100-year high water elevation is at 803.5 feet above mean sea level. The normal stormwater elevation is 799.0 feet above mean sea level. A stormwater outlet pipe will be constructed at the southeast end of the basin and connect into an existing city storm sewer pipe in West Point Douglas Road. The basin and stormwater sewer pipe between the basin and West Point Douglas Road will re- main in the Park Place Storage Condominium Association ownership. The Association will be responsible for the maintenance of this basin and common areas within the site. Mowing the front lawn includes the boulevard area all the way to the West Point Douglas Road curb. The City has reviewed the applicant's Stormwater Management Plan (dated 10/29/14; revised 11/12/14). Based on this revised plan, the City believes this project's stormwater design satisfies Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium — Variance, CUP & Site Plan Applications December 9, 2014 Page 15 of 17 the requirements set forth in the City's Storm Water Management Plan and Municipal Separate Storm Sewer Systems (MS4) Permit. Condominium Association The developer's proposal is to develop the 12.94-acre vacant commercial parcel and construct five self-storage condominium structures having a cumulative gross floor area of 237,778 square feet. Construction of the buildings will be phased depending on sales for individual condominium storage units. Phase 1 will likely be Building A and a portion of Building B and all the ancillary site improvements (security gate, landscaping, perimeter fencing, access drives, sanitary sewer and water utilities, electricity, etc.). Individual storage units will typically range between 300 to 15,000 square feet. The units will be owned by individuals that will be part of an overall association. The Association will maintain all the common areas on the site and site operations (e.g. snow remov- al, lawn and landscaping care, security cameras, etc.). On occasion, a small area might be rented for a short period of time until that space is sold. There will not be any outdoor storage. The total number of units depends on the amount of space each individual owner purchases within the building. A Common Interest Community declaration document will be prepared and recorded at the Washington County Recorder's Offi�e. This document will describe the owners association's re- sponsibilities, use of units, city access, property taxes and assessments, owner's maintenance responsibilities interior to their unit, prohibition of outdoor storage, parking regulations, and other miscellaneous details. City Department Review and EDA Comments Representatives from various City Departments reviewed the applicant's variance and conditional use permit applications. The Public Safety Department requested that they be given the oppor- tunity to review the applicant's intrusion alarm system and that the applicant provide the name(s) and contact information of the key holder(s) for the main gate security system. The Fire Division is requiring that a"storz" fire department connection fitting be installed on all the exterior fire de- partment valve connectors for the fire suppression system. The Building Division has reviewed the conceptual development plans and is unable to provide comments regarding building code regulations until such time that all detailed construction plans are submitted to their office. The Cottage Grove Economic Development Authority (EDA) reviewed this project at their meeting on November 12, 2014. An excerpt from their unapproved minutes is attached. In response to one of their questions related to the project's taxable value, it is estimated that once the project is completely developed, the property is estimated to have at least a$2 per square foot value on the land (similar to the Cottage Grove Business Park) plus a value attributable to the building con- struction/sale. The building values are estimated as follows: Buildin A, plus land $3 million Building A and B, plus land $6.5 million Building A, B, and C, plus land $10.5 million Building A, B, C, and D, plus land $14 million Building A, B, C, D, and E, plus land $15 million Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium — Variance, CUP & Site Plan Applications December 9, 2014 Page 16 of 17 At full build out, this project should have about 3.5 times the value per square foot of land as compared to Renewal by Andersen. The total tax bill in 2014 dollars for the entire project will be about $590,000 with about $80,000 of that amount coming to the City. An average unit size of 1,000 square feet would have about a$2,500 total property tax bill. The Public Works Department is aware of the applicant's proposal to plant 109 spartan juniper coniferous shrubs over the existing watermain along the north boundary line of the self-storage site. If the City watermain along the north property boundary line must be repaired, maintained, or replaced, they are requiring the Park Place Storage Condominium ownership to be responsible for replacing that portion of the fence and/or plantings that had to be removed. No comments or recommendations were received from other advisory commissions. Public Hearing Notices Public hearing notices were mailed to 29 property owners who are within 500 feet of the site on November 13, 2014. In addition, the public hearing notice was published in the South Washington County Bulletin on November 12, 2014. Recommendation That the City Council accept the Planning Commission's recommendations granting a variance to the following ordinance requirements: 1. A variance to Title 11-6-5, Landscaping Requirements, to reduce the required minimum number of overstory deciduous trees from 131 to 17, reduce the required minimum number of coniferous trees from 122 to 13, and reduce the required minimum number of large and small shrubs from 564 to 527. 2. A variance to Title 11-6-13, Architecture, to reduce the amount of Class 1 exterior building materials from the required minimum of 65 percent to approximately 17.7 percent and in- creasing the amount of Class 4 materials from a 10 percent maximum to approximately 82.3 percent. 3. A variance to Title 11-10D-7, Self-Storage Facilities, which requires self-storage facilities to be a minimum of 300 feet from any residential use and/or residential zoning district. The distance between the residential dwelling located southeast of the proposed developing site and the closest storage building is approximately 150 feet. The City Council is also recommended to accept the Planning Commission's recommendation ap- proving Park Place Storage Condominium's site plan and conditional use permit applications to con- struct five commercial structures with a cumulative gross floor area of approximately 237,778 square feet and ancillary site improvements as shown on the development plans prepared by Joseph T. Radach with Carlson McCain Environmental, Engineering and Surveying and dated October 29, 2014 and the revised architectural plans prepared by Mohagen, Hansen Architectural Group dated received November 24, 2014. A resolution was prepared for City Council's action. l°his resolution grants approval for all three vari- ances as described above and the site plan and conditional use permit for the Park Grove Storage Honorable Mayor, City Council Members and Ryan Schroeder Park Place Storage Condominium — Variance, CUP & Site Plan Applications December 9, 2014 Page 17 of 17 Condominium project. The findings of facts or conditions of approval cited in the draft resolution can be modified according to the motion(s) made by the City Council. The City Council could take sepa- rate action on each variance application if the City Council determines that a particular variance must be modified. The final action requested of the City Council is to adopt a resolution granting three variances to the landscaping requirements, architecture, and self-storage facilities as described above and approving the site plan and conditional use permit applications proposed by Park Grove Storage Condo- minium. ATTACHMENTS: Site Plan Building Elevation Plan Landscaping Plan Photos of Interior Storage Spaces (examples) Excerpt from Economic Development Authorities' Minutes for 11/12/2014 Excerpt from the Planning Commission unapproved Minutes for 11/24/2014 Letter from Paul Jorgensen dated 10/29/14 Responses to the Variance Criterial from Paul Jorgensen dated 10/29/14 Responses to the Conditional Use Permit Criteria from Paul Jorgensen dated 10/29/14 Aerial Photo and Addresses for other Park Place Storage Projects Declaration of Covenants (Example) Operating Budget and Reserve Replacement Assumptions Staging Plan — Email message dated 12/08/14 Draft Resolution Approving Variances, Site Plan, and Conditional Use Permit 1:7�Ys7�l��C�7�i�C� � . . - - A RESOLUTION GRANTING VARIANCES TO CITY ORDINANCE REGULATIONS THAT PERTAIN TO MINIMUM LANDSCAPING REQUIREMENTS, ARCHITECTURE, AND SELF-STORAGE FACILITY AND CONDITIONAL USE PERMIT AND SITE PLAN REVIEW TO ALLOW CONSTRUCTION OF FIVE STORAGE CONDOMINIUM STRUCTURES HAVING APPROXIMATELY 237,778 SQUARE FEET OF CUMULATIVE FLOOR AREA AT 7552 WEST POINT DOUGLAS ROAD WHEREAS, Park Place Storage applied for variances to the landscaping, architecture, and storage facility regulations for their storage condominium proposal, described below 1. A variance to Title 11-6-5, Landscaping Requirements, to reduce the required mini- mum number of overstory deciduous trees from 131 to 17, reduce the required minimum number of coniferous trees from 122 to 13, and reduce the required min- imum number of large and small shrubs from 564 to 527. 2. A variance to Title 11-6-13, Architecture, to reduce the amount of Class 1 exterior building materials from the required minimum of 65 percent to approximately 17.7 per- cent and increasing the amount of Class 4 materials from a 10 percent maximum to approximately 82.3 percent. 3. A variance to Title 11-10D-7, Self-Storage Facilities, which requires self-storage facil- ities to be a minimum of 300 feet from any residential use and/or residential zoning district. The distance between the residential dwelling located southeast of the pro- posed developing site and the closest storage building is approximately 150 feet. WHEREAS, Park Place Storage also applied for a site plan and conditional use permit for the development of a storage condominium facility consisting of five self-storage facilities with a cumulative gross floor area of 237,778 square feet and other ancillary site improvements on 12.94 acres of land located on property legally described below: PT W1/2-E1/2 & PT NE1/4-SW1/4 SD SEC 17 BEING A TRCT OF LAND DESC FOLL:ALL THAT PT OF W1/2-E1/2 OF SAID SECTION 17 DESCRIBED AS FOLLOWS: THE WEST 48 RODS THEREOF LYING NORTHEASTERLY OF THE NORTHEASTERLY RIGHT OF WAY LINE OF THE CHICAGO MILWAUKEE AND ST PAUL RAILROAD AND SOUTHWESTERLY FROM THE SOUTHWESTERLY RIGHT OF WAY LINE OF US HIGHWAYS NUMBERS 10 AND 61 AND: THAT PART OF NE1/4 SW1/4 OF SAID SECTION 17 LYING NORTHEASTERLY OF THE NORTHEASTERLY RIGHT OF WAY LINE OF SAID RAILROAD EXCEPT THAT PORTION OF THE ABOVE DESCRIBED TRACT LYING NORTHWESTERLY FROM THE FOLLOWING DESCRIBED LINE: COMMENCING AT THE INTERSECTION OF THE EAST AND WEST QUARTER SECTION LINE OF SAID SECTION 17 AND THE NORTHEASTERLY RIGHT OF WAY LINE OF SAID RAILROAD THENCE ON AN ASSUME BEARING OF THE EAST ALONG SAID EAST AND WEST QUARTER SECTION LINE A DISTANCE OF 631 FEET THENCE NORTH 40 DEGREES 15 MINUTES EAST A DISTANCE OF 213.09 FEET TO AN INTERSECTION WITH THE SOUTHWESTERLY RIGHT OF WAY LINE OF US HIGHWAYS NUMBER 10 AND 61 Resolution No. 2014-XXX Page 2 of 6 THENCE SOUTH 56 DEGREES 24 MtNUTES 30 SECONDS EAST ALONG SAID RIGHT OF WAY LINE A DISTANCE OF 361 FEET TO THE BEGINNING OF A TANGENTIAL CURVE TO THE RIGHT WITH RADIUS OF 7416.30 FEET THENCE ALONG SAID CURVE AN ARC DISTANCE OF 186.50 FEET TO THE ACTUAL POINT OF BEGINNING OF THE LINE TO BE DESCRIBED THENCE SOUTH 37 DEGREES 22 MINUTES WEST A DISTANCE OF 645.81 FEET TO AN INTERSECTION WITH THE NORTHEASTERLY RIGHT OF WAY LINE OF SAID RAILROAD AND THERE TERMINATING- FURTHER EXCEPTING THEREFROM THAT 60 FOOT STRIP ACQUIRED BY THE CITY OF COTTAGE GROVE FOR ROADWAY PURPOSES SUBJ TO EASE SECTION 17 TOWNSHIP 027 RANGE 021 Commonly known as 7552 West Point Douglas Road South, Cottage Grove, Washington County, State of Minnesota. WHEREAS, public hearing notices were mailed to property owners within 500 feet of the property and a public hearing notice was published in the South Washington County Bulletin; and WHEREAS, the City Council held a public hearing on November 24, 2014; and WHEREAS, a planning staff report, which detailed specific information on the property and the application request was prepared and presented; and WHEREAS, the public hearing was open for public testimony. The applicant attended the public hearing and answered questions by the Planning Commission. No oral testimony or writ- ten comments were received. NOW, THEREFORE BE IT RESOLVED, the City Council of the City of Cottage Grove, Washington County, Minnesota, hereby grants variances to the following City ordinance regu- lations 1. A variance to Title 11-6-5, Landscaping Requirements, to reduce the required min- imum number of overstory deciduous trees from 131 to 17, reduce the required minimum number of coniferous trees from 122 to 13, and reduce the required mini- mum number of large and small shrubs from 564 to 527. 2. A variance to Title 11-6-13, Architecture, to reduce the amount of Class 1 exterior building materials from the required minimum of 65 percent to approximately 17.7 per- cent and increasing the amount of Class 4 materials from a 10 percent maximum to approximately 82.3 percent. 3. A variance to Title 11-10D-7, Self-Storage Facilities, which requires self-storage facil- ities to be a minimum of 300 feet from any residential use and/or residential zoning district. The distance between the residential dwelling located southeast of the pro- posed developing site and the closest storage building is approximately 150 feet. BE IT FURTHER RESOLVED, granting the variances described above are based on the following findings of facts: Resolution No. 2014-XXX Page 3 of 6 A. The proposed self-storage condominium units are privately owned. Occasionally, a vacant portion of the building might be temporarily rented until the unit sold. The over- all objective is not to have more than five percent of the facility as rental units. Acces- sibility into the site is limited to unit owners and not open to the general public. B. City ordinance regulations offer alternative methods of compliance for landscaping and tree mitigation. Based on the proposed type of commercial use that limits public access onto the site, the applicant is required to pay to the City an equivalent amount of cash in lieu of planting all the landscaping and tree mitigation required by City regulations. C. Public view of the exterior walls for the west side of Building A and the east and west sides of Buildings B through E is limited. D. A stand of deciduous trees exist along the northerly boundary line of the non-conform- ing residential parcel and dwelling. The continued existence of these trees and the proposed five-foot earth berm height with the planting of conifer trees and a variety of shrubs on the self-storage property will aid in mitigating visual impacts from the resi- dential parcel. BE IT FURTHER RESOLVED, , the City Council of the City of Cottage Grove, Washington County, Minnesota, hereby approves the conditional use permit and site plan review applications filed by Park Place Storage for the development of a storage condominium facility consisting of five self-storage facilities with a cumulative gross floor area of 237,778 square feet and other ancillary site improvements as shown on the development plans prepared by Joseph T. Radach with Carlson McCain Environmental, Engineering and Surveying and dated October 29, 2014 and the revised architectural plans prepared by Mohagen, Hansen Architectural Group dated received November 24, 2014 on 12.94 acres of land as legally described above and subject to the following conditions of approval: All applicable permits (i.e., building, electrical, mechanical) and a commercial plan review packet must be completed, submitted, and approved by the Building Official, Fire Marshal, and Public Works Director prior to the commencement of any con- struction activities. 2. The applicant submits as-built drawings to the City upon completion of the storm- water basin, storm sewer piping, and water and sanitary sewer systems. 3. Outdoor storage is prohibited. 4. If the City watermain along the north property boundary line must be repaired, main- tained, or replaced, the Park Place Storage Condominium ownership will be respon- sible to replace the fence and plantings. 5. The design and materials of any fencing on the subject property must match the specifications of the Montage Commercial Majestic 3/4 - Rail Fence. If a fence is proposed, it must be black in color and not exceed eight feet in height. Barbed-wire strands are prohibited. Resolution No. 2014-XXX Page 4 of 6 6. Chain link fencing with or without vinyl slats is prohibited on the perimeter of the prop- erty or used as a security gate. 7. A storz Fire Department connection fitting must be installed on all exterior Fire Department connections. 8. The applicant submits to the Public Safety Department a copy of their intrusion alarm system and provide the name(s) and contact information of persons possessing a key or security code for the main gate entry system. 9. The applicant receives building permits from the City of Cottage Grove prior to construction. 10. Irrigation shall be provided for all sodded and landscaped areas. The irrigation system shall consist of an underground sprinkling system that is designed by a pro- fessional irrigation installer to meet the water requirements of the site's specific vegetation. The system shall be detailed on the landscape plan. 11. The concrete apron for the private access drive shall be constructed per City require- ments if replaced. 12. An outdoor lighting plan must be submitted to the City for review and approval. All lighting must meet City Code requirements. All outdoor light fixtures must be down- ward directed with cut-offs. The specifications of all light fixtures must be provided with the application for a building permit. 13. The exterior wall materials on the north and south ends for all structures must be constructed with quality architectural materials and design. The final architectural plans and exterior construction materials and colors must be reviewed and approved by the Planning Department prior to the issuance of a building permit. 14. The grading and erosion control plan for the site must comply with NPDES II Permit requirements. Erosion control devices must be installed prior to commencement of any grading activity. Erosion control must be perFormed in accordance with the rec- ommended practices of the "Minnesota Construction Site Erosion and Sediment Control Planning Handbook" and the conditions stipulated in Title 10-5-8, Erosion Control During Construction, of the City's Subdivision Ordinance. 15. The applicant must provide the City with an as-built survey of all private utilities prior to issuance of certificate of occupancy. 16. All mechanical equipment screening and trash enclosures must be constructed of materials that are consistent with the principal building's exterior materials. 17. Construct a six-foot wide concrete sidewalk along West Point Douglas Road. Pedes- trian ramps must be constructed on each side of the site's access drive. 18. Storm sewer pipe must be reinforced concrete pipe (RCP). Resolution No. 2014-XXX Page 5 of 6 19. The applicant is responsible for removing debris from West Point Douglas Road during their grading and construction process. This street shall be swept clean daily or as needed. Parking along West Point Douglas Road is prohibited. 20. The property owner is responsible for maintaining the stormwater basin. A document outlining the scope and frequency to maintain this basin must be submitted with the building permit application. 21. A"STOP" sign shall be installed at exit drive. The sign shall be ten feet from the roadway edge and two feet from the driveway edge. The bottom of the sign shall be six feet from the ground. The "STOP" sign shall be a 30-inch sized sign having a high intensity face. Said sign shall be mounted on a 6-foot — No. 3 and 8-foot — No. 2 steel post. 22. Installation of landscaping shall occur in a timely fashion and be consistent with an approved plan. A letter of credit in the amount of 150 percent of the landscape esti- mate shall be submitted to the City as required by City ordinance (Section 28-41(I)). The financial guarantee shall be in effect for one year from the date of installation to ensure the installation, survival, and replacement of the landscaping improvements. 23. The exterior color of the overhead doors shall be a color that is similar and comple- mentary to the color scheme for the exterior walls of the buildings. 24. The area charges, connection charges, and related development fees and charges will be added to the building permit fee. 25. Payment in lieu of landscaping and a portion of the tree mitigation fee amounts to $0.34 per building square foot will be collected with the building permit application for each phase. All the landscaping shown on the landscaping plan prepared by Carlson McCain and dated October 29, 2014 must be planted with the first phase of develop- ment. 26. Payment for the park fee in lieu of land dedication amount of $0.20 per building square foot will be collected with the building permit application for each phase. 27. The property owner must prepare the legal description and sketch for a utility ease- ment over all the watermain looping through the site. The property owner will own and be responsible to maintain the private watermain system looping through their site and servicing their fire suppression systems to the buildings. The property owner must permit the City to access the fire hydrants on the site to flush the water system. Maintenance of the fire hydrants is the responsibility of the property owner. 28. A copy of the operating budget and reserve replacement study be submitted to the City. 29. A staging plan is submitted to the City. 30. Not all the park fee in lieu of land dedication will be collected if not all the 237,778 square feet of buildings are constructed. For this reason, staff is recommending that Resolution No. 2014-XXX Page 6 of 6 the balance owed for the park fee in lieu of land dedication must be paid in full on or before January 1, 2019. The total park fee in lieu of land dedication is $47,355.64. 31. Except for Building A, signage on the end-caps of Buildings B through E is prohibited. Passed this 17th day of December, 2014. Myron Bailey, Mayor Attest: Caron M. Stransky, City Clerk . . . � � . . . � � � ,• � ' 1 � ' � • • 6.1 Park Place Storage — Case SP2014-039, CUP2014-040, V2014-041 Park Place Storage has applied for variances to City Code Title 11-6-5, Landscaping Requirements, Title 11-6-13, Architecture; and Title 11-10D-7, Self-Storage Facilities; and a site plan review and conditional use permit to allow approximately 237,778 square feet of storage condominiums to be located at 7552 West Point Douglas Road South. McCool summarized the staff report and recommended approval based on the findings of fact and subject to the conditions stipulated in the staff report. Graff asked for further clarification on the tax base table and if this would be a continuing tax base or an initial tax payment to the City. McCool responded continuous. Johnson asked if there are any examples of a similar project in other areas of the Twin Cities. Applicants Paul Jorgensen, Park Place Storage, 6415 County Road 19, Corcoran, and John Rausch, Cushman Wakefield North America, 3500 American Boulevard West, Bloomington, introduced themselves. Jorgensen stated that they have seven locations around the Twin Cities with 650 to 700 units. They are adding buildings to their locations in New Hope, Shakopee, and Minnetrista. He ex- plained that these are different than mini-storage facilities; the units are larger and heated. Rausch stated that the people buying these condominiums use them to store nice cars or boats and they tend to finish the units. He highlighted that the proposed steel panels are not typical steel panels and showed photos of buildings that utilize that material. He stated that Building 1 would look nicer than United Properties or Opus industrial buildings with the punch outs and the accents on the front. That will be on three sides of Building 1. They are proposing to put the steel panels on the ends of the other building which would wrap the corners. They are also proposing to use soffit materials on the end caps of Buildings 2, 3, and 4. Johnson asked if the heating would be in each unit or centralized for the building. Rausch stated that each unit would have its own natural gas heater. Johnson asked where they would be vented. Rausch responded through the side of the building. He explained that they are concerned about water penetration so they don't want to go through the roof. Rostad asked once somebody decides to build a unit, does the association prohibit them from subdividing a unit to sell. Jorgenson explained that they cannot divide existing units. Rostad asked if sleeping units would be allowed. Jorgenson stated no residences are allowed in the condos and that is very clear in the bylaws. He explained that the condo owners police the rules themselves and there is no outside storage allowed. Rostad asked if they have seen anyone trying to operate a business out of a unit. Jorgenson responded that is prohibited by the bylaws, noting that the condos are priced higher than office space. Rostad asked if Park Place Storage would have an ongoing stake in the project after all the units are sold. Jorgenson stated that he does manage the associations and that there is a board. Excerpt from Unapproved Planning Commission Minutes Park Place Storage — Case SP2014-039, CUP2014-040, V2014-041 November 24, 2014 Page 2 of 3 Brittain asked if they build the entire building at one time or as the units are sold. Jorgenson responded that they would build Building A first and a part of another at the same time. Based on the length of the beams, they would probably build to the halfway mark. They typically start construction when they get 50 percent of a building sold. Brittain asked based on past experi- ence, how long it takes to complete the entire project. Jorgenson stated that they would like to be sold out in three years but it is typically four to five years. Graf asked about the governing documents, sample budget, sample disclosure, reserve study, long-term planning and operating, and maintenance the facility. He would like to see what the interior corridors look like. He also would recommend that there be some sort of formal staging in place. He asked if they accept presales, are they working on marketing, the length of their management agreement term, and how long they retain control of the operation of the prop- erty. Jorgensen stated that the Corcoran facility has been there for 16 years and he has managed it since the beginning. Each facility has a board who provides direction for him. If the board does decide that they don't want him managing the property any longer, he would step down. Graf asked if there is a formal agreement and what is the term of that agreement. Jorgensen stated that it is up to each board; a couple are year to year and others don't have an agreement. Rausch noted that staff has the declaration, bylaws, and rules and regulations. McCool explained that the interior corridors are paved driveway accesses with garage doors and service doors. Jorgenson stated that the sample operating budget and reserve study can be provided to staff prior to the City Council meeting. He then stated that they do take pre- sales but they do not know the cost structure yet. Rediske asked if they have done research into the market in this area. Jorgensen responded that they have received interest from several Cottage Grove residents, and they also look at their current owner list and where they reside to see if they would like to move closer to their homes. Rediske asked when they plan to break ground. Jorgenson responded as quickly as they can. Rediske asked where the next closest one is to Cottage Grove. Jorgenson re- sponded that there are facilities in Holton, Wisconsin, a small site in Hastings, Shakopee, Corcoran, and Minnetrista. He noted that they will be spending more on this site than the others he owns. Rostad opened the public hearing. No one spoke. Rostad closed the public hearing. Rausch stated that he has been involved in other projects in Cottage Grove, including the White Pine senior housing development, and some of the other alternatives they looked at for this particular site would have involved a small building with a large parking lot, which would mean the tax base would be a third to a fifth of what this project will bring in. Imdieke thanked the applicants for looking at the City of Cottage Grove and for taking into consideration the visibility of the site and investing in the aesthetics of the buildings. She be- lieves this is a great use for that property. Brittain made a motiorr to recomrr►end approval of the variances for landscaping, archi- tecture, and se/f-storage facilities, based on the findings of fact and subject to the conditions listed in the staff repori: Gratf seconded. Excerpt from Unapproved Planning Commission Minutes Park Place Storage — Case SP2014-039, CUP2014-040, V2014-041 November 24, 2014 Page 3 of 3 Motion passed unanimously (8-to-0 vote). Graf recommended approval of the conditional use permit and site plan review subject to the conditions listed in the stafif report, with the addition that the operating budget, reserve replacement study, and staging plan be included. Wehrle seconded. Motion passed unanimously (8-to-0 vote). \ � i._F.GSN� IXISTING REMOVAI, O1 � vnorum uac ------------ usucutuu[- _____ _.____ __ __ __ _ _ __ _._ wnouu[ "..'.""'.. ....�.�.... i � � n Z B(NNINOYS PNVQI[M � � C ----- -- � ------ -�_; �_� e�� , \ SNIIT�RYSEWW --_-y_ ___�_ � m ^ U.S.HIGHWAYS N0. 10 & 61 � W _____'_ � -�-____--'_'_____________'_'___`_'___- _= ---'- \ . �uxxmc o � o x , . . . . . . 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' ._ _`. ._ .. _ . <.. �. wx. . . .. . " __.�� ._"_ � _ � _ _ _ _ _ _ _� _�_ �_ _� ____ _ �__. ��_ — 4 CHICAGO, MILWAUKEE, ST. PAUL & PACIFIC RAILROAD <<9Cp�u'y`"" � �� ---------- w:�u� i _ _ _ _ _ _ � _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _� _ _ , �NJ.O&91�Tauqa \ � 5 , ��/ � na�'v��_W�=Qii: j G � �n:�,_!,� � BENCHMARKS � ' — ' KnowwhaCs beIOW. �, Nur or Hroxnu �ocn�co xoox rccT � C�LII I70f0I0 y04 (II9. SOViNEP�Y OF TIE CNiRANtE tp 1HE zs . so i o Cq, � PARKINC LOT, CLEV-81�.5] R(q1y pANN). oP (w�r) 7 ■ LANDSGAPE NoTES �. \ • IRFIGAtION SHALL 6E PFOVIDED POR ALL BOD WIFING FftOM THE TOP AND 91DE9 OF ROOTBALL AN� LAND6CAPE AREAS. FoR ALL 9ALLED AND pI1RL4PPED PLANiB. � m � � SOD AND IFRIGATE ALL DISTIIF6ED qRE49 • REMOYE GONTAINERS ANG Gl1T GIRCUNG ROOT9 N � 11NLEB5 OTHERWISE NOTED. : Z � IF pLANTB ARE GONTAINEft GFOWN, �- T� — — — — — ' — — — — — — — — — — — — . • HEAVT GOMMERGIAL GRADE PoLY EDGER BHALL ALL PL4NTINGS SHALL REGEIVE FERtILZER AS • � rc ' � -- DE U6ED qRO�ND THE PEFIMETER OF • FOLLOW9� � M � LAND9cqpE BEDS NoTED ON PLAN. 8 GRANIILAR FERTIZER APPLIED AT THE �� • FEPEF TO OEfAIL eHEET L2 poF 6ENEFAL NOTE9, TIME oF pLqNiiNG Ai A RATE OP 1] OL PER Z.5 m� g U.S.HIGHWAYS N0. 10 & 61 � PL4NTING SPEGFIGqTIONS, PLANTING NOtES, cqLIPER INCHES oF TREE qND v OL PER �� W�� IRRIGqTION NoTES, AND PLANTING DEiA1L9. 9HRIlB. — — — — — —•—•— — — — � � REFER to GR4DING PLAN FOR GRADES AND � o ._. _�'__________._ _ ____ _ rt _ _. _ ___._. __ _ ___ �__ '_ � . 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PAUL & PACIFIC RAILROAD � =o�+ T cw.eaa�muoa --.------------------- _ _ � _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ _ _ - _ _ - _ _ - _ _ _�\_ � _ ..i ° v k � ` o� � � •��;��WV $ Know wnaPs below. — Cd�� beforeyou dig. �o �l 0 c�x�> 2 F - / �--' '� � -._ : . __ _ _ .. . . _ _�_...... �� - . . .. �.. . ._.- _ , � .... . ' _ _.. � , .. -. _ _ __ �. , _ � <- -- --� ' ' ' ` � _ �. �' - --- � - _ . I�i; ,'" : ii.._ --- ' , l -"-- ' � ,- � . � �. ' .. - ' ' . '^ . �� ' ` ' , . ' ....._..' . ..�., . ' _ ��-� . _ ' - :#` . . i . . ' ,v .�� . � ,� �Y J - - � '._ __ ' ar"`�" _ za,� �.: �'� - �;� � ; , '. . . . �* . - r � - _, ... . . . �. ... , �., r . _ _- _ ' �� ,,;`?o w ;. �� - - . _ f .,_ v � ,; ... �*.� , _. , ♦ _ _._ �.. , �. �➢ae Big �oy-52' Se�R�ey (�nd little ba � 24x90 drive through unit-$150K , �,,,� in a 53x60 unit � ^-�+ .- - � - ---_ ___ _ _— Tricice� ou9 BOx4'S 4'on• �S�g� �� , _ s _ � "'","°'°- ---_ -(' � _ -_ � _�- �1 '�'-�'--=T"^" " ', ""�� —�� °' I e I , � \ � � I � g _ � f �� , � -- �.�\� ' ✓ ' �-m�n � 1 - .�. � � � ; '� �� _ ,:: _ � � -- - , — ,; : � � � � I --- — � � , , a E� � � � — � . � � i• '.. ti �i f d - -_ , v _ ��'d � i `�z„ - ar �':,,'�- A. v — 7 — . .. . ;, ,..? . . -- � � _ �.... .., .,, �� .. ' � — - .. s;.._ ..1 � �: - : � � --- .. "' __ ,...r� , � . -a_-� „"�s� - r? , �t_�.',i', . . , . . . .. - .:� - ... . ,.J. - ' � .` ;? 20x45-$63,000 plus naezzanine �'Iopar VVorlc� 24x45-$75K �'Ilna�ee �ette �ecIlIl ooarn - - ': ;,1 +` - I „�-;,�„o,s;;.„�'.,......,��.- � .'.-�.. ;. �� i , rr r.�,w.r. �\.. .�'�:r.+rwr..�.r.r��' .r.. , . _. ..—_.F�"�'� —. ' ,\ - - - � , j i r' ��,.�� ,..r..� , � + i : t . � � �'�`� � 'I �l�s� _ T^( . �� :J � � - �T; i V � � ' �:�,� � — _ _ _ � -- � ... ' �" f -- , , , a � , - , ; _ ; ;� ,� -, . — . �.,,, ... . . _ _ __ ---- — _ _ _ _ _ _ � , -� — � Two units side ➢�y side � �'- �-_ , 53x60-$220I� 24x90 Empty Nesters w/ LARGE RV " �� " 29x60 with 39' Boat ��rk �1�� t�r�g� C�r�d+��isli��s Council and City Staff: The intent of the following application is to work with the City to ultimately approve and build 237,000 square feet of storage condominiums. The individua) units wili vary in size but typically range from 2,000 square feet up to 15,000 square feet. The units are ovvne� by individuals who take great pride in their units and typically own them for several years. An association will be created to handle snaw removal, lawn care, security cameras, etc. and acts very similar to a residential HOA. The overall development will consist of fve separate buildings and be built in phases. A great deal of planning has gone into the design of the projecfi, We feel strongly that the image, development plan and use of the property will greatly benefit the community in a number of ways. We have been working with our engineers, architects, contractors and the City of Cottage Grove for over eight months and believe this development will add a tremendous amenity to the residents af Cottage Grove, The development will also add significant tax base and help set a high standard for other development alang Highway 61. Similar projects Park Place Storage have developed are valued at $80 per square foot. The exterior of the building fronting Highway 61 will consist of Class 1 materials as defined by the City code. Precast concrete with bump outs and windows will provide for an exceptional image. The Northwest property line will include an evergreen hedge while lhe Southeast property line will include a berm, trees and ponding which will separate the project from neighboring properties. The site will also include wrought iron fencing which will further advance the practicality and visual appeal of the site. In addition to screening the development, the first building will be three to four feet higher in elevation to enhance screening to the interior of the site, We thank you for your consideration of the enclosed application and look forward to working towards a successful developmen�. Please feel free to call with any questions. Sincerely, � c� --�- Paul Jorgensen 612-670-3077 Owner — Park Place Storage ��/�� OCT � 9 Zu"��. CfTY OF COl GROVE Park Place Storage Condominiums PO B�X 326, Corcoran, MN 55357 Park Place Storage Condominiums � ->��,��,� �, � n�� Variance Application OCT 1 9 20�4 At this point we are uncertain on whether we need the following variances � r ��o�� identify/explore the following and welcome feedback from the City: a. Landscape. The overall site will be compliant with the 25% green space requirement but the internal site will not have traditional parking and therefore will not meet the 8% landscape requirement as indicated in the City code. We believe we will also need a variance for the number of trees/shrubs needed for the site. According to our calculations, the City code requires 115 overstory trees, 107 evergreens, 247 large shrubs and 247 small shrubs. Our plan calls for significant landscaping but will ultimately fall short of the requirement. We strongly believe that complying with the code will negatively impact the overall design of the project, especially the appeal of the building along Hwy 61. b. Internal Parking. Since the use of the properly will generate very little traffic and have few parking needs, we feel that we have more than enough paved surface area for short-term parking. The owners/users of the site will park outside the units for short periods of time and not be allowed to park vehicles outside of the units overnight. Variance Application Response To Ordinance Criteria 1. Yes. We feel we have more than enough area to park the few vehicles that will be on site at any given time. We also believe that we have adequate landscaping to portray a very high quality image from Hwy 61 as well as buffer our neighbors on either side of the proposed development. 2. Yes. The variances are consistent with the comprehensive plan and will allow the project to best suit the City, neighbors and overall site plan. 3. If the above variances are allowed, the use of the site will be best utilized while also ensuring the community and neighboring properties benefit from a high quality project. Careful landscape planning has taken place to help shield the neighbors. 4. The property has a naturally tree buffer from the neighboring residential property and is also located ne� to the Metro Transit Park N Ride. 5. The development is unique in that we will have a significant amount of square footage under building but will need very little permanent parking. It is also unique in the fact that the entire property is buffered with fencing, landscape, building and railroad. 6. Yes. The purpose of the variances is not based on financial hardship but based on functionality with the best interest of the neighbors and City in mind. Park Place Storage Condominiums PO BOX 326, Corcoran, MN 55357 Park Ptace Storage Condominiums � ,�t .:"f'•'r'°�:�.,_.� �:L ��•�, � �," �;; �! 7. Yes ocr 2 s 20�4 8. The site will have minimal lighting and most owners of the units will only visi Tr ';;�+ <<'+== �r�� --e� periodically resulting in little efFect on traffic. We anticipate no fire or public safety concerns. Park Place Storage Condominiums PO BOX 326, Corcoran, MN 55357 Park Place Storage CQndorniniums Conditional Use Permit R�sQonse to Ordinance Criteria A. We feel the development will comply with the comprehensive plan and zoning ordinances. The developmenfi will fall under the warehause classification as defir�ed by the City. B. The development will include ciass 1 building materials, have significant screening for neighboring properties and provide a high quality image to Nighway 61. The development will set a standard for additional development within the immediate area. C. We feel the use will add value to the neighboring properties. The development, when complete, will be valued at approximately $20,000,000 and ultimately drive values for surrounding parcels. We have gone to great lengths to protect the neighboring properties, To the Northwest is Metro Transit which we have shielded with an evergreen hedge (approximately 12 feet high) as well as wrought iron fencing. There is a residential home to the Southeast and the development complies with the setback requirements associated with single family neighbors. In additian to meeting the setback requirement, we have added a berm, a significant number of trees, ponding and wrought iron fencing, The neighbor also has a heavily wooded area between the development and the home which will add to the separation of the uses. We feel we have gone "above and beyond" when considering our neighbors on both sides of the property. It should be noted that the development backs up to the railroad as well. D. We do not believe the development will negatively impact the surrounding property owners in any way. The use of the site has little impact due to the low volumes of trafFic generated. Owners of the storage units typically use their units for dropping off or picking up their RV's, boats, etc. This results in very limited activity on site. E. The use of the property wili not create traffic congestion or any unsafe practices associated with the use. No parking will be allowed on the streets or impact neighboring properties. F. The development will comply with all standards and be easily accessed for fire, poli�e, etc. The site will also have "looped" water with hydrants to add extra fire protection. G. The development is not asking for any funding or e�raordinary requirements of the public. The development will add to the economic welfare of the City. H. Yes. The site is fairly flat with and minimally treed thus preserving the natural setting. As indicated above, the development plan protects the neighboring properties and their abili to develop in the future. C�o�� I. No adverse environmental effects known. OCT292014 cirror- co�r�ac� cRC��= J. No potential development problems for neighboring properties are known. We are adding a sidewalk along the frontage road which may encourage additional development. Park Place Storage Condo�niniums PO BOX 326, Corcoran, MN 55357 i i � ss4'—a" 102�-6 32 87'-0" 32'-0" 87'-0" 32�-0" 67'-0" 32'-0" 702'-6" 0 o i a WALL• PRECAST PANEL �" WALL: PRECAST PANEL WALL• ME7AL PANELS � FLC}OR PLAN azoo ,,, =40� I PARK PLACE STORAGE: BUILDING #1 Mohagen 'T� Hansen � O OTOBEROV20 4 I Archftodural Qmup � � � " , �= - . , — - ��' _ .�-- �-�-; �� -_ - �1 `.'. ., L:,; � ,.r -. �. �!',�'� C,�.-_� I �.,�`; :,� � '- ti � - - . -.• _ i - - � _ ' _ — �,,.� . _ .r ° _ -_ - _ s�, �_ . r — ; - . � . ., _ �AY - . i� � .�,� . . n .. � � aMl � r � _ ^ Vr.- .- ..� - . . i ^ +�,� ... -.l��J�� ' � . '_ . s . . . 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' �,•� . -��' 3�.. --r .�-"' ..� .�'' � � � ' � � r� 1 �` �� '1 �, .�. � c � �'1 ��} � A ��,��, - �,.r , � . h h �' �" � :� e` ' �` �' � ��ri, v i l�, v ' m� ` f, '' W � lY�• . r � .'9 ti � ��#ifi��Ga � ��"`_�,,� `� ' � ,_.�� `-�' +'� :, �.�:�' �} "� � �' �c :+4 � + 'a- ,j' y " �� . -' . . . . . ` C.�1wr�� Jry� �` � Y �9��7� _'.li.,''C � "F� n ; , t ,j� � . �Y �-F' �ii�, r r � �� - ��N+� ",� �., •+.��'• 1 � i .aY. .'�. . r . . ~� � •V�'�. ' � , . - . !'. ..._ . . - � �! � � Y �Y. �+ . �.� _. _ �� , , ^�s ) . �.,. '�•'a:: PARK PLACE STORACE - COTTAGE GROVE Mohagen � PARK PLACE STORACE Hansen COTfAGE CROVE, MN ,w�nrta�m� � Group s� t _ -Y �� 2 -a•�;. �, . � � ��.'�,- =�' u: `�� " � �� .� ., ��!` - .:- _ _. _�. — . - � _� � _ - �'- � � - - �... .. ; , .. . .. . - '. r: . ` +� � _ _ _ ..��....w ,..,�^^-.r.. ... 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"!� '�. �:.." ��, a.:� y,, "� { . . , ;' � � `� .:- � �,- . �� -. d: M � cs . . �3' 1 ,�;� ;�(�.�,lJ� i.S.�,,. • - - �"_' '��a- � - �.� � .� �' � i � ..N' . �V�•" � ,�.� - � } �lY� .+'.1ty�4MN�.l T _ .� ��i� �v'�'xy�%�.'�'$+'. 9 . h ti a . y'.3 1 s . _' , � / �_. y�� ,,, � y r y .r � � �� 1�p ..,,� 4 t e �hr y� _ . ��`' , � i -�,_. ��l � '^ ��1_� � y '' l•' A � ' �+ Y � p y� �. , � 4 �'�� f - " �`_ ` �,�, r .�F�� . ..�:,�,,, _ '_ -- F a �; , �t�a� X �� . � ��_.i ��:+J"'- .. � - � � ;.y PARK PLACE STORAGE - COTTAGE GRO\/� Mohagen -� PARK PLACE STORAGE Hansen r .�n�to�n,� �� COTTAGE GROVE, MN Gmup i i � 1 � ALUMINUM OR METAL PANEL ALUMINUM PRECAST PANEL PRECAST PANEL WROUGHT IRON CANOPY WINDOW, - 20' TALL - 22' T,4LL i FENCE - 8' TALL SPANDREL GLASS i __ -- ---. . _ � _. ;� : Y �� .__. - ' i _- ---.. _ - . . - - -_ _ '� �., m I I ................ ...-___ -..__.._. .. _ _� . __ ____. "" " . ... _......_.-_._. _ ._... ' j ..... ...... . . . _... . . . ....._..._. _.. . . _. . "."'_.-__- "_ . . . . . _ ... _..... I I � PARK PLACE STORAGE - COTTAGE CROO/E � Mohagen � PARK PLACE STORACE Hansen .a�nuG� p � COTTACE GROVE, MN i � r ��- 1`� i��x ��; A. Park Place Storage Project Community Development Director/City Engineer Levitt presented the packet materials related to Park Place. EDA Member Patterson stated that he didn't think the building materials along the rear ends of the buildings needed to be as high as the front of the building (Class 1). EDA Member Westerberg agreed. EDA Member Thiede rose concerns about having a storage facility on W Point Douglas. EDA Member Thiede stated the need for an aesthetically pleasing exterior of the building, not having storage in the name of the facility, tax revenue his concern for the site being x t'J used as a storage facility. EDA Member Thiede -�� concerns regarding the developer's incentive for maintaining the condomi�n�i,,��ssociation property after the units are all sold. EDA Executive Director Schroeder d�s:��ssed the increase in taxes if the sifie ��` �'��. . is developed into the concept of condominium sto�r-�ge that�will be purchased by individual owners and owners will have a higher incent'i.��o maintain theirproperty. ED Director Parr explained that the exterior and common �r�e:as would be mai��ined by the condominium associafiion. �� ,. EDA President Bailey discussed the appeal`e with the fencing in the corridor3��s well as e; s"`��. ��. also spoke of the importance�of;�`�au�ng the pleasing then the south and rea o� bui,Idir �� „: but will be used in a different'� ��a or�� landscaping limitations due to ti�e� tower. EDA Pres�'` �s ��y also � is �usse stating the exte�'ior�of the b�ding is ae;stheti area and did noi� > ok like a��itional s�`�oragE Park Place buildinci;�:upe wo ��fit with the�fe�'E L bec�use she did n�`o ��ni ED� �: � F4 �� ;;,e � ber Poncin�i industr a��ir� spaces, � affordable fi.o__r�those that EDA President materials at their� picture of the end �having rro�:ght iron fen��ic��to keep in theme :r� :o fhse sidewalk. ED`'` ��resident Bailey iort> e; d of the building more aesthetically �, and�t e tree mitigation will go into that fund �st Poin ��.ouglas Corridor because of the ji' the �w��r main and eventual water P a��Place'�s�'ster facility in Eden Prairie, �Ily' p`le�sing. and is a unique addition to that Facility. E�D"`A� President Bailey stated that the of the light manufacturing theme of the area. ;ke"�d,��f�� there`�.=�i�vould be traffic issues ineer`��e�`ui ��co�mmented that traffic would �� rush at any�;�articular time of day. and Community not be an issue :d��irat he sees numerous opportunities for possible light ble wo'rk spaces to small business owners, and the units are like to own their workspace. d he would like the EDA to review Park Place's marketing lities to see who they are marketing fo, in order to get a better From: Luke Appert <luke.appert@cushwakenm.com> Sent: Monday, December 08, 2014 1:53 PM To: John McCool; 'paulj@parkplacestorage.net' Cc: Jon Rausch; Jennifer Levitt Subject: RE: Park Place Storage Condominium � Attachments: Bylaws Draft Cottage Grove SAMPLE NOT FINAL.DOC; Declaration Cottage Grove SAMPLE, NOT FINAL.DOC; Reserve assumptions Cottage Grove.xls; Cottage Grove Association Budget 2015, 235,480SF.XLS; Park Place Storage Condominiums Other Locations 2014-11-25.doc; SKMBT_C554e14120813520.pdf John, Please see the attached information regarding your below requests. We have included a draft of the declaration for the association, The association bylaws, The reserve assumptions and association budget. You will notice the budget and reserves are based on a final development totaling 235,480sf (the wash bay will malce up the remainder of the square footage). In addition to annual money being placed in reserve, the association documents allow for various improvements/repairs to be assessed to the condo owners as work tal<es place. We are happy to elaborate on this topic as sometimes it is difficult to communicate via email. The Proposed Staging Plan for the Development is as follows (timing will be dependent on unit sale velocity) 1) Building A and % of Building B(side closest to Park n Ride) 2) Completion of Building B and all of Building C 3) Building D 4) Building E Lastly, I have included our signed Letter of Intent we have with Parl< Place regarding the fair marl<et value. We feel strongly, as does Paul, that this is the fair market value and it certainly is an "arms length" transaction. We have the Purchase Agreement as well if needed. Please let me know if any additional information is needed. Thanl< you again for all your hard work. Luke P/ease Visit Our New Team Website www.landmnwi.com Luke Appert Land Brokerage Services 3500 American Blvd W - #200 Minneapolis, MN 55431 P 952-893-8238 C 651-315-6641 F 952-835-8849 E luke.appert@cushwakenm.com www.cushwakenm.com �ll� �t��tlr9�At�11� �la�I+vt�.� '�,�,�`��1��'�� Reserve Assumptions Park Place Condominium Cottage Grove, MN December 08, 2014 Reserve Assumptions Estimated Estimated Roofing Bldg. sf Roof sf Roof Asphalt Width Length incl. soffitt Total Replacement Repair Building 1 50 594 29700 29700 $891.00 $2,108.70 2 90 605 54450 54450 $1,633.50 $3,865.95 3 90 720 64800 64800 $1,944.00 $4,600.80 4 80 770 61600 61600 $1,848.00 $4,373.60 5 30 831 24930 24930 $747.90 $1,770.03 Total 235480 235480 $7,064.40 $16,719.08 Replacement cost per sf. $1.50 Roof Square footage 235,480 Total roof replacement $353,220.00 50 year $7,064 Replacement cost per sf. $2.00 Asphalt Square footage 167,000 Total asphalt replacement cost $334,000.00 20 year $16,719 u . ._ --, _ .=J 9 � . r D EC 0 8 1ui4 � C': i �' - ' ; � �r.v •r� Cottage Grove Association Budget 2015 235,480 SF December 8, 2014 TOTAL Jan 15 Feb 15 Mar 75 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan-Dec 15 Ordinary Income/Expense Income 4010 • Association Fees 96,546.80 96,546.80 193,093.60 4015 - Gas Income 16,000.00 13,000.00 29,000.00 4025 Finance Charge 4035 Wash Bay Income 125.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00 1,500.00 Totallncome 96,671,80 125.00 125.00 16,125.00 125.00 125.00 96,671.80 125.00 125.00 125.00 125.00 13,125.00 223,593.60 Expense 6190 • Liability Insurance 3,558.00 3,558.00 3,558.00 3,558.00 3,558.00 3,558.00 3,558.00 3,558.00 3,558.00 3,558.00 3,558.00 3,558.00 42,696.00 6192 • Director & Officers Ins. 0.00 6245 • O�ce Supplies 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 35.00 420.00 6250 • Postage and Delivery 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 600.00 6270 • Professional Fees 360.00 360.00 360.00 360.00 360.00 360.00 360.00 360.00 360.00 360.00 360.00 360.00 4,320.00 6300 � Repaire and Maintenance 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 15,000.00 6335 • Septic Tank Trucking 173.00 173.00 173.00 173.00 173.00 173.00 173.00 173.00 173.00 173.00 173.00 173.00 2,076.00 6340 Telephone 167.00 167.00 167.00 167.00 167.00 167.00 167.00 167.00 167.00 167.00 167.00 167.00 2,004.00 6440 • Gas 5,709.50 4,709.50 4,709.50 822.00 433.00 300.00 256.00 205.00 227.00 2,209.50 4,709.50 4,709.50 29,000.00 6442 • Electric 2,583.00 2,583.00 2,583.00 2,583.00 2,563.00 2,583.00 2,583.00 2,583.00 2,583.00 2,583.00 2,583.00 2,583.00 30,996.00 6395 Wash Bay expense 115.00 115.00 115.00 115.00 115.00 115.00 115.00 115.00 115.00 115.00 115.00 115.00 1,380.00 6450 • Snow Removal/Lawn Care 5,000.00 5,000.00 5,000.00 330.00 330.00 330.00 330.00 330.00 330.00 330.00 5,000.00 5,000.00 27,310.00 6550 � Management Fees 2,993.00 2,993.00 2,993.00 2,993.00 2,993.00 2,993.00 2,993.00 2,993.00 2,993.00 2,993.00 2,993.00 2,993.00 35,916.00 Total Expense 21,993.50 20,993.50 20,993.50 12,436.00 12,047.00 11,914.00 11,870.00 11,819.00 11,841.00 13,823.50 20,993.50 20,993.50 191,718.00 NetOrdinarylncome 60,62720 -17,275.00 -17,275.00 5,995.00 -10,005.00 -10,005.00 69,715.20 -10,005.00 -10,005.00 -12,505.00 -17,275.00 -4,275.00 31,875.60 Other Income/Expenses Other Income 70101nterest $12.00 $12.00 $12.00 $12.00 512.00 $12.00 512.00 $12.00 $12.00 $12.00 �12.00 $12.00 $144.00 7050 To Rese -$11,891.74 -$11,891.74 -�23,783.48 TotalOtherincome -$11,679.74 $12.00 $12.00 $12.00 $12.00 $12.00 -$11,879.74 512.00 $12.00 $12.00 $12.00 $12.00 -�23,639.48 Net Otherincome -$11,879.74 $12.00 �12.00 $12.00 $12.00 512.00 -$11,879.74 $12.00 $12.00 $12.00 $12.00 $12.00 -$23,639.48 Net Income 48,747.46 -17,263.00 -17,263.00 6,007.00 -9,993.00 -9,993.00 � 57,835.46 -9,993.00 -9,993.00 -72,493.00 -77,263.00 -4,263.00 4,072.92 �,. i' h`'u �'e:.i� lu- L.,� , v 'I t , __ . � � § � DE 81 � C 0 a14 C� `�'��/� - J'* �}� �Lfl,tl I 1..oY ��1 d7'�V.;�Lii�YF I Park Place Storage Condominiums Minnesota Locations t i� ._ �., .: ...' �. . � �� ,�, , � � ; s'Y ^� .--,__' 9300 Nike Road, Minnetrista, MN Land Area = 35 acres Number of Units = 197 Total Building Sq. Footage = 260,000 - ��:�-�, �,�. � r; i � ; �, r � . �A . ", .. ":. � �. i ' s,,,, �, , � .�„ , �a 6415 County Rd 19, Loretto, MN Land Area = 21 acres Number of Units = 189 Total Building Sq. Footage = 178,000 y _ _. .. - � ' _ - `j 4 � .. _ , _ -- � .� � DEC 0 8 201� ,,,��:�;; ,,, �.--�,� r � , — ---._.� 1441 7th Street, Houlton, WI Land Area = 12 acres Number of Units = 121 Total Building Sq. Footage = 135,000 1465 Commerce Drive, Hastings, MN Land Area = 2.2 acres Number of Units = 37 Total Building Sq. Footage = 35,000 COMMON 1NTEREST COMMUNITY NUMBER A CONDOMINIUM PARK PLACE STORAGE CONDOMINIUMS of COTTAGE GROVE, MNINC. BYLAWS "" � _ b`�.4�''`r� o-�., � � �� SECTION 1 D E C 0 8 2U 14 ciTV ar- co � r,�,�� ov� GENERAL The following are the Bylaws (the `Bylaws") of Parlc Place Storage Condominiuins of Cottage Grove., a Minnesota non-profit corporation (the "Association"). The Association is organized pursuant to Section S15B.3-101 of the Minnesota Common Interest Ownership Act (the "Act") for the puipose of operating and managing the Parlc Place Storage Condominiums of Cottage Grove. The terms used in these Bylaws shall have the same meaning as they have in the Declai�ation of the Parlc Place Storage Condominiums of Cottage Grove (the "Declaration") and the Act. SECTION 2 MEMBERSHIP 2.1 Owners Defined All Persons described as Owners in Section 1.11 of the Declaration shall be members of the Association. No Person shall be a member solely by virtue of holding a security interest in a Unit. A Person shall cease to be a member at such time as that Person is no longer an Owner. 2.2 Registration of Owners and Occupants. Each Owner shall register with the Secretary of the Association in writing within thirty (30) days after talcing title to a Unit (i) the name and address of the Owner(s) and any Occupant(s) of the Unit; (ii) the nature of such Owner's interest or estate in each Unit owned; (iii) the address at which the Owner desires to receive notice of any meeting of the Owners, if other than the Unit address; (iv) the name and address of the secured party holding the first rnortgage on the Unit, if any; and (v) the name of the Owner, if there are multiple Owners of the Unit, who shall be authorized to cast the vote with respect to the Unit. The Owner shall have a continuing obligation to advise the Association in writing of any changes in the foregoing information. 2.3 Transfers. The interests, rights and obligations of an Owner of the Association may be assigned, pledged, encumbered or transferred, but only along with and as a part of the title to the Owner's Unit oi• as otherwise specifically authorized by the Governing Documents or by law. `, i , VOTING 3.1 Entitlement. Equal Votes shall be allocated to each Unit as shown on Exhibit A to the Declaration. No vote shall be exercised as to a Unit while the Unit is owned by the Association. 3.2 Authority to Cast Vote. At any meeting of the Owners, an Owner included on the voting register presented by the Secretary in accordance with Section 4.6 hereof, or the holder of such Owner's proxy, shall be entitled to cast the vote which is allocated to the Unit owned by the Owner. If there is more than one Owner of a Unit, only one of the Owners may cast the vote. If the Owners of a Unit fail to agree as to who shall cast the vote, or fail to register pursuant to Section 2.2 hereof, the vote shall not be cast. 3.3 Voting b Owner may cast the vote which is allocated to the Owner's Unit and be counted as present at any meeting of the Owners by executing a written proxy naming another Person entitled to act on that Owner's behalf, and delivering the same to the Secretary before the commencement of any such meeting. All proxies granted by an Owner shall remain in effect until the earliest of the following events (i) revocation by the granting Owner by written notice or by personally attending and voting at the meeting for which the proxy is effective; (ii) eleven (11) months after the date of the proxy, unless otherwise pz•ovided in the proxy; and (iii) the time at which the granting Owner is no longer an Owner. 3.4 Voting by Mail/Email Ballot. Notices of regular or special meetings and the entire vote on any issue, except the removal of directors, may be determined by mailed or ernailed ballots and proxies, subject to the following requirements: a. The notice of the vote shall (i) clearly state the proposed action; (ii) indicate the number of responses needed to meet the quorum requirements; (iii) state the percentage of approvals necessary to approve each matter other than election of directors; and (iv) specify the time by which the ballot must be received by the Association in order to be counted. b. The ballot shall (i) set forth each proposed action; and (ii) provide an oppoi�tunity to vote for or against each proposed action. c. The Board of Directors shall set the time for the return of ballots, which shall not be less than fifteen (15) nor more than thirty (30) days after the date of mailing of the ballots to the Owners. The Board of Directors shall provide notice of the results of the vote to the Owners within ten (10) days after the expiration of the voting period. Approval by written ballot under this Section is valid only if the number of votes cast by ballot equals or exceeds the quorum required to be present at a meeting authorizing the action, and the number of approvals equals or exceeds the number of votes that would be required to approve the matter at a meeting at which the total number of votes cast was the same as the number of votes cast by ballot. 3.5 Vote Required. A majority of the votes cast at any properly constituted meeting of the Owners, or cast by mail or email in accordance with Section 3.4, shall decide all matters properly brought before the Owners, except where a different vote is specifically required by the Governing Documents or the Act. The term "majority" as used herein shall mean in excess of fifty percent (50%) of the votes cast at a meeting, in person or by proxy, or voting by mail, in accordance with the allocation of voting power set forth in the Declaration. Cumulative voting shall not be permitted. SECTION 4 MEETING OF OWNERS 4.1 Place. All meetings of the Owners shall be held at the office of the Association or at such other place in the State of Minnesota reasonably accessible to the Owners as may be designated by the Board of Directors in any notice of a meeting of the Owners. 4.2 Annual Meetin�s. An annual meeting of the Owners shall be held in each fiscal year on a date, and at a reasonable time and place, designated by the Board of Directors. At each annual meeting of the Owners (i) the Persons who are to constitute the Board of Directors shall be elected by the Owners pursuant to Section 6 hereof; (ii) a report shall be made to the Owners on the activities and financial condition of the Association; and (iii) any other matter which is included in the notice of the annual meeting, and is a proper subject for discussion or decision by the Owners, shall be considered and acted upon at the meeting. 4.3 Special Meetings. Special meetings of the Owners may be called by the President as a matter of discretion. Special meetings of the Owners shall be called by the President or Secretary within thirty (30) days following receipt of the written request of a majority of the members of the Board of Directors or of Owners entitled to cast at least twenty-five percent (25%) of all the votes in the Association. The meeting shall be held within ninety (90) days following receipt of the request. The request shall state the puipose of the meeting, and the business transacted at the special meeting shall be confined to the purposes stated in the notice. The puipose for which the meeting is requested and held must be lawful and consistent with the Association's purposes and authority under the Governing Documents. 4.4 Notice of Meetin�s. At least twenty-one (21), but no more than thirty (30), days in advance of any annual meeting of the Owners and at least seven (7), but no more than thirty (30), days in advance of any special meeting of the Owners, except as noted in Section 6.3 of the Declaration, the Secretary shall send to all persons who are Owners as of the date of sending the notice, notice of the time, place and agenda of the meeting, by United States mail, or by hand delivery or email as may be determined appropriate by the Board, at the Owner's Unit address or to such other address as the Owner may have designated in writing to the Secretary. The notice shall also be sent to the Eligible Mortgagee, upon request, at the address provided by the Eligible Mortgagee. Any Eligible Mortgagee shall, upon request, be entitled to designate a representative to be present at any meeting. Notice of ineetings to vote upon amendments to the Articles of Incoi�poration shall also be given separately to each officer and director of the Association. 4.5 Quorum/Adjournment. The presence of Owners in person or by proxy, who have the authority to cast in excess of twenty-five percent (25%) of all the votes in the Association shall be necessary to constitute a quorum at all meetings of the Owner•s for the transaction of any business, except that of adjourning the meeting to reconvene at a subsequent time. If a quorum is not reached for a meeting of the Owners, such meeting may be postponed up to sixty days, at which time the quorum requirement shall be reduced to twelve percent (12%) of all votes in the Association. If a quorum is present at the reconvened meeting, any business may be transacted which might have been transacted at the meeting as initially called had a quoium then been present. The quorum, having once been established at a meeting or a r•econvened meeting, shall continue to exist for that meeting notwithstanding the departure of any Owner previously in attendance in person or by proxy. The Association may not be counted in determining a quorum as to any Unit owned by the Association. 4.6 Voting Register. The Secretary shall have available at the meeting a list of the Unit numbers, the names of Owners, the vote attributable to each Unit and the name of the Person (in case of multiple Owners) authoz•ized to cast the vote. 4.7 A�da. The agenda for meetings of the Owners shall be established by the Board of Directors, consistent with the Governing Documents, and shall be sent to all Owners along with the notice of the meeting. SECTION 5 ANNUAL REPORT The Board of Directors shall prepare an annual report on behalf of the Association to be mailed or delivered to each Owner together with the notice of the annual meeting. The repoi�t shall contain at a minimum: A statement of any capital expenditures in excess of two percent (2%) of the current budget or $5,000.00, whichever is greater, approved by the Association for the current year or succeeding two fiscal years. b. A statement of the balance in any reserve or replacement fund and any portion of the fund designated for any specified project by the Board of Directois. c. A copy of the statement of revenues and expenses for the Association's last fiscal year, and a balance sheet as of the end of said fiscal year. d. A statement of the status of any pending litigation or judgments to which the Association is a party. e. A detailed description of the insurance coverage provided by the Association, including a statement as to which, if any, of the items refei7ed to in Section S 15B.3-113, subsection (b) of the Act, are insured by the Association. f. A statement of the total past due assessments on all Units, current as of not more than sixty (60) days prior to the date of the meeting. SECTION 6 BOARD OF DIRECTORS 6.1 Number and Qualification. The Board of Directors of this Association shall consist of three (3) to five (5) persons, who shall be Owners; provided that the number of Directors shall always be an odd number. No Member may be elected to the Board or vote as a Board Member if such Member is more than thirty (30) days past due with respect to assessments on the Member's Unit at the time the election is held. 6.2 Term of Office The terms of office of the members of the Board of Directors shall be one, two or three years beginning on the first election held after expiration of Declarant control. Following this first vote and the first term of each Board member, the terms of office of the Board of Directors shall be two years and shall expire at the appropriate annual meeting of the Owners; provided that a director shall continue in office until a successor is elected and the terms shall be staggered to the extent possible. A number of nominees equal to the number of vacancies, and receiving the greatest number of votes, shall be elected, notwithstanding that one or more of them does not receive a majority of the votes cast. A director appointed or elected to fi11 an uncompleted term shall serve until the natural termination of that term, unless removed in accordance with these Bylaws. There shall be no cumulative voting for directors. 6.3 Nomination. Nomination for election to the Board of Directors shall be made by a Nominating Committee if appointed by the Board of Directors, from the Board of Directors or from the floor at the annual meeting or by "write-in" if authorized by the Board. 6.4 Powers. The Board of Directors shall have all powers necessary for the administration of the affairs of the Association, and may exercise for the Association all powers and authority vested in or delegated to the Association (and not expressly prohibited or reserved to the owners) by law or by the Governing Documents. The powers of the Board of Directors shall include, without limitation, the power to: a. adopt, amend and revolce Rules and Regulations not inconsistent with the Governing Documents, as follows (i) regulating the use of Common Elements; (ii) regulating the use of the Units and the conduct of the Owners and Occupants that may jeopardize the health, safety, or welfare of other Owners and Occupants, which involves noise or other disturbing activity or which may damage the Cominon Elements or other Units; (iii) regulating or prohibiting animals; (iv) regulating changes in appearance of the Common Elements and conduct which may damage the Property; (v) regulating the exterior appearance of the Property, including for example, window treatments, and signs and other displays, regardless of whether inside a Unit; (vi) implementing the Governing Documents, and exercising the powers granted by this Section; and (vii) otherwise facilitating the operation of the Propei b. adopt and amend budgets for revenues, expenditures and reserves, and levy and collect assessments for Common Expenses from Ownei•s; c. hire and discharge managing agents and other employees, agents and independent contractors; d. institute, defend, or intervene in litigation or administrative proceedings (i) in its own name on behalf of itself or two or more Owners on matters affecting the Common Elements or other matters affecting the Property or the Association; or (ii) with the consent of the Owners of the affected Units on matters affecting only those Units; e. make contracts and incur liabilities on behalf of the Association; f. regulate the use, maintenance, repair, replacement and modification of the Common Elements and the Units; g. cause improvements to be made as a part of the Common Elements; h. acquire, hold, encumber, and convey in the name of the Association any right, title, or interest to z•eal estate or personal property, subject to the requirements of the Act for the conveyance or encumbrance of the Common Elements; i. grant public utility easements through, over or under the Common Elements, and subject to approval by resolution of the Owners at a meeting duly called, grant other public or private easements, leases and licenses through, over or under the Common Elements; j. impose and review any payments, fees, or charges for the use, rental or operation of Common Elements, other than Limited Common Elements;. lc. impose charges for late payment of assessments and, after notice and an opportunity to be heard, levy reasonable fines for violations of the Governing Documents and the Rules and Regulations; 1. impose reasonable charges for the review, preparation and recordation of amendments to the Declaration or these Bylaws, resale disclosure certificates required by Section S15B.4-107 of the Act, statements of unpaid assessments, or furnishing copies of Association records; m. provide for the indemnification of its officers and directois, and maintain directors' and officers' liability insurance; n. provide for reasonable procedures governing the conduct of ineetings and the election of directors; o. appoint, regulate and dissolve committees; and p. exercise any other powers conferred by law or the Governing Documents, or which are necessary and proper for the governance of the Association. 6.5 Meetin�and Notices. An annual meeting of the Board of Directors shall be held proinptly following each annual meeting of the Owneis. At each annual meeting the officers of the Association (President, Vice-President, Secretary and Treasurer) shall be elected. The Board of Directors shall also meet at the following times: a. Regular meetings of the Board of Directors shall be held at least on a quarterly basis, at such times as may be fixed from time to time by a majority of the members of the Boai•d of Directors. A schedule, or any amended schedule, of the regular meetings shall be provided to the directors. b. Special meetings of the Board of Directors shall be held when called (i) by the President of the Association; or (ii) by the Secretary within ten (10) days following the written request of any two (2) directors. Notice of any special meeting shall be given to each director not less than three (3) days in advance thereof. Notice to each director shall be deemed to be given when deposited in the United States mail postage prepaid to the Unit address of such director, or when personally delivered, orally or in writing, by a representative of the Board of Directors. c. Any director may at any time waive notice of any meeting of the Board of Directors orally, in writing or by attendance at the meeting, and such waiver shall be deemed equivalent to the giving of such notice. If all the directors are present at any meeting of the Board, no notice sha11 be required and any business may be transacted at such meeting. 6.6 Quorum and Voting. A majority of the members of the Board of Directors shall constitute a quorum for the transaction of business at any meeting thereof. This means if the Board consists of five persons, three must be present to constitute a quorum. A quorum, once established, shall continue to exist, regardless of the subsequent departure of any directors. Each director shall have one vote. The vote of a majority of the directors present at any meeting at which a quorum is present shall be sufficient to adopt any action. Proxies shall not be permitted. 6.7 Action Talcen Without a Meetin�. The Board of Directors shall have the right to talce any action in the absence of a meeting which they could take at a meeting when authorized in a writing by all the directors. 6.8 Vacancies. Except for vacancies created pursuant to Sections 6.2 and 6.9 of this Section, a vacancy in the Board of Directors shall be filled by a person elected within thirty (30) days following the occurrence of the vacancy by a majority vote of remaining directors regardless of the number. Each person so elected shall serve out the term vacated. 6.9 Removal. A director may be removed fiom the Board of Directors, with or without cause, by a majority vote at any annual or special meeting of the Owners provided (i) that the notice of the meeting at which removal is to be considered states such purpose; (ii) that the director to be removed has a right to be heard at the meeting; and (iii) that a new director• is elected at the meeting by the owners to fill the vacant position caused by the removal. A director may also be removed by the Board of Directors if such director (i) has more than two (2) unexcused absences from Board meetings and/or Owners meetings during any twelve (12) month period; or (ii) is more than sixty (60) days past due with respect to assessments on the director's Unit. Such vacancies shall be filled by the vote of the Owners as previously provided in this Section. 6.10 Compensation. The directors of the Association shall receive no compensation for their services in such capacity. Directors may be reimbursed for out-of-pocket expenses incurred in the performance of their duties. A director, Owner or Occupant may upon approval by the Board of Directors be retained by the Association and reasonably compensated for goods and services furnished to the Association in an individual capacity. 6.11 Fidelitv Bond. Fidelity bonds or insurance coverage for unlawful talcing of Association funds shall be obtained and maintained as provided in the Declaration on all directors and officers authorized to handle the Association's funds and other monetary assets. SECTION 7 OFFICERS 7.1 Principal Officers. The principal officers of the Association shall be the President, a Vice President, a Secretary and a Treasurer, all of whom shall be elected by the Board of Director•s. The Board of Directors may from time to time elect such officers and designate their duties as in their judgment may be necessary to manage the affairs of the Association. A person may hold more than one office simultaneously, except those of President and Vice President. Only the President and Vice President must be members of the Board of Directors. 7.2 Election. The officers of the Association shall be elected annually by the Board of Directors at its first annual meeting and shall hold office at the pleasure of the Board. 7.3 Removal. Upon an affirmative vote of a majority of the members of the Board, any officer may be removed, with or without cause, and a successor elected, at any regular meeting of the Board of Directors, or at any special meeting of the Board of Directors called for that purpose. 7.4 President The President sha11 be the chief executive officer of the Association and shall preside at all meetings of the Board of Directors and the Association. The President shall have all of the powers and duties which are customarily vested in the office of president of a corporation, including without limitation the duty to supervise all other officers and to execute all contracts and similar obligations on behalf of the Association. The President shall have such other duties as may from time to time be prescribed by the Board of Directors. 7.5 Vice President. The Vice President shall take the place of the Pz•esident and perform the duties of the office whenever the President is absent or unable to act. The Vice President shall also perform other duties as shall from time to time be prescribed by the Board of Directors. 7.6 Secretarv. The Secretary shall be responsible for recording the minutes of all meetings of the Board of Directors and the Association. The Secretary shall be responsible for lceeping boolcs and records of the Association, and shall give all notices required by the Governing Documents or the Act unless directed otherwise by the Board of Directors. The Board of Directors may delegate the Secretary's administi•ative functions to a managing agent; provided that such delegation shall not relieve the Secretary of the ultimate responsibility for the Secretary's duties. 7.7 Treasurer. The Treasurer shall have the responsibility for all financial assets of the Association and shall be covered by a bond or insurance in such sum and with such companies as the Board of Directors may require. The Treasurer shall be responsible for keeping the Association's financial boolcs, assessment rolls and accounts. The Treasurer shall cause the books of the Association to be kept in accordance with customary and accepted accounting practices and shall submit them to the Board of Directors for its examination upon request. The Treasurer shall cause all monies and other monetary assets of the Association to be deposited in the name of or to the credit of the Association in depositories designated by the Board of Directors, sha11 cause the funds of the Association to be disbursed as ordered by the Board of Directors and sha11 perform all other duties incident to the office of the Treasurer. The Board of Directors may delegate the Treasut•er's administrative functions to a managing agent; provided that such delegation shall not relieve the Treasurer of the ultimate responsibility for the Treasurer's duties. 7.8 Compensation. Officers of the Association shall receive no compensation for their services in such capacity. Officers may be reimbursed for out-of-pocicet expenses incuired in the perforinance of theit• duties. An officer may upon approval by the Board of Directors be reasonably compensated for goods and services furnished to the Association in an individual capacity. SECTION 8 OPERATION OF THE PROPERTY 8.0 Prohibited Uses. Any and a11 commercial, industrial or residential us other than storage is prohibited within the self storage facility. Storage of any hazardous materials, chemicals, gasoline or flammable liquids is prohibited in any storage space, except normal househould quantities. Any storage of propane tanlcs or flammable gases is prohibited. No inoi�e than four vehicle tires may be stored in any rental space. Any and all commercial, industrial or residential use other than storage is prohibited within the facility. 8.1 Assessment Procedures. The Board of Directors shall annually prepare a budget of Common Expenses for the Association and assess such Common Expenses against the Units according to their respective Common Expense liability as set forth in the Declaration. a. The Board of Directors shall fix the amount of the annual assessment against each Unit, levy the assessment and advise the Owners in writing of the assessment at least thirty (30) days prior to the beginning of the Association's fiscal year when the first assessment installment shall be due. The limits on the Board's power to fix the annual assessment shall be as set forth in the Declaration. The failure of the Board of Directors to timely levy an annual assessment shall not relieve the Owners of their obligation to continue paying assessment installments in the amount currently levied, as well as any increases subsequently levied. b. Subject to the terms of the Declaration, if an annual assessment proves to be insufficient, the Board of Directors may amend the budget and levy an additional assessment, at any time. The levy shall occur upon the date specified in the resolution which fixes the assessment. c. The annual budget shall include a general operating reserve, and an adequate reserve fund for maintenance, repair and replacement of those Common Elements and parts of the Units that must be maintained, repaired or replaced by the Association on a periodic basis. d. The Association shall furnish copies of each budget on which the assessment is based to an Owner oi• to any Eligible Mortgagee, upon request of such persons. 8.2 Payment of Assessments. Annual assessments shall be due and payable in monthly installments in advance on the first day of each month of the year or other period for which the assessments are made, and special assessments shall be due when designated by the Board of Directors. All Owners shall be absolutely and unconditionally obligated to pay the assessments. No Owner or Occupant shall have any right of withholding, offset or deduction against the Association with respect to any assessments, or related late charges or costs of collection, regardless of any claims alleged against the Association or its officers or directors. Any rights or claims alleged by an Owner may be pursued only by separate action. 8.3 Default in Pavment of Assessments. If any Owner does not make payment on or before the date when any assessment or installment thereof is due, subject to such grace periods as may be established, the Board of Directors may assess, and such Owner shall be obligated to pay, a late charge as provided in the Declaration for each such unpaid assessment or installment thereof, together with all expenses, including reasonable attorneys' fees, incurred by the Board in collecting any such unpaid assessment. If there is a default of more than thirty (30) days in payment of any assessrnent, the Board of Directors may accelerate any remaining installments of the assessment upon prior written notice thereof to the Owner, and the entire unpaid balance of the assessment and late charges shall become due and payable upon the date stated in the notice unless all past due amounts, including late charges, costs of collection and fines, are paid prior to said date. b. The Board of Directors shall have the right and duty to attempt to recover all assessments for Common Expenses, together with any charges, attorneys' fees or expenses relating to the collection thereof. Upon written request of an Owner or an Eligible Mortgagee of such Unit, notice of a default of inore than thii (30) days in payment of any assessment or installment of any assessment for Common E�penses or any other default in the performance of obligations by the Owner shall be given in writing to such Eligible Mortgagee. d. The i�ights and remedies referred to herein shall in no way limit the remedies available to the Association under the Declaration or by law. 8.4 Foreclosure of Liens for Unpaid Assessments. The Association has the right to foreclose its assessment lien against a Unit for assessments imposed by the Association, as more fully described in the Declaration and the Act. 8.5 Records. The Board of Directors shall cause to be kept at the registered office of the Association, and at such other place as the Board of Directors may determine, records of the actions of the Board of Directors, minutes of the meetings of the Board of Directors, minutes of the meetings of the Owners of the Association, names of the Owners and Eligible Mortgagees, and detailed and accurate records of the receipts and expenditures of the Association. All Association records, including receipts and expenditures and any vouchers authorizing payments, shall be available for examination by the Owners and the Eligible Mortgagees upon reasonable notice and during normal business hours. Separate accounts shall be maintained for each Unit setting forth the amount of the assessments against the Unit, the date when due, the amount paid thereon and the balance remaining unpaid. 8.6 Enforcement of Obli ations. All Owners and Occupants and their guests are obligated and bound to observe the provisions of the Governing Documents, the Rules and Regulations and the Act. The Association may impose any or all of the charges, sanctions and r•emedies authorized by the Governing Documents, the Rules and Regulations or by law to enforce and implement its rights and to otherwise enable it to manage and operate the Association. SECTION 9 AMENDMENTS These Bylaws may be amended, and the amendment shall be effective, upon the satisfaction of the following conditions; 9.1 Approval. The amendment must be approved by Owners who have authority to cast a majority [in excess of fifty percent (50%)] of the total votes in the Association, in writing or at a duly held meeting of the Owners, subject to any approval rights of Eligible Mortgagees as provided in the Declaration; and 9.2 Notice. A copy of the proposed amendment, and if a meeting is to be held, notice of such meeting, shall be mailed by United States mail, or hand delivered, to all Owners authorized to cast votes; and 9.3 Effective Date of Amendment The amendment shall be effective on the date of approval by the required vote of the Owners. If recorded, the amendment shall be recorded in the office of the recording officer for the county in which the Property is located. SECTION 10 INDEMNIFICATION The Association shall, to the extent the alleged liability is not covered by insurance, indemnify each individual acting in any official capacity on behalf of the Association, pursuant to the provisions of Minnesota Statutes 317A.521. SECTION 11 MISCELLANEOUS MATTERS 11.1 Notices. Unless specifically provided otherwise in the Act, the Declaration or these Bylaws, a11 notices required to be given by or to the Association, the Board of Directors, the Association officers or the Owners or Occupants shall be in writing and shall be effective upon hand delivery, or mailing if properly addressed with postage prepaid and deposited in the United States mail; except that registrations pursuant to Section 2.2 shall be effective upon receipt by the Association. 11.2 Severabilitv. The invalidity or unenforceability of any part of these Bylaws shall not impair or affect in any manner the validity, enforceability or effect of the balance of these Bylaws. 11.3 Captions. The captions herein are inserted only as a matter of convenience and for reference and in no way limit or define the scope of these Bylaws or the intent of any provision hereof. 11.4 Conflicts in Documents. In the event of any conflict among the provisions of the Act, the Declaration, these Bylaws or the Rules and Regulations, the Act shall control unless it permits the documents to control. As among the Declaration, these Bylaws and Rules and Regulations, the Declaration shall control, and as between these Bylaws and the Rules and Regulations, these Bylaws shall control. 11.5 Waiver. No restriction, condition, obligation or provision contained in these Bylaws shall be deemed to have been abrogated or waived by reason or any failure to enforce the same, irrespective of the number of violations or breaches thereof which may occur. 11.6 No Corporate Seal. The Association has no corporate seal. 11.7 Fiscal Year. The fiscal year of the Coiporation shall be determined by the Board of Directors. Park Place Storage Condominiums of Cottage Grove Association, Inc. By: Its: President Parlc Place Storage Condominiums of Cottage Grove,MN , CIC NO. TBD A Condominium DECLARATION � "� ` '` -� ' �� `�, .. � �� ` Q�" 0 r,� �,� r- _ n '� V:-�t%. COMMON INTEREST COMMUNITY NO. TBD, A Condominium PARK PLACE STORAGE CONDOMINIUMS OF COTTAGE GROVE DECLARATION This Declaration (the "Declaration") is made in the County of , State of Minnesota, on this _ day of , 2015 by Parlc Place Storage LLC, a Minnesota limited liability company (the "Declarant"), pursuant to the provisions of Minnesota Statutes Chapter S15B, known as the Minnesota Common Interest Ownership Act (the "Act"), for the puipose of creating Park Place Storage Condominiums of Cottage Grove as a condominium under the Act. WHEREAS, Declarant is the owner of cer real property located in Hennepin County, Minnesota, legally described in Exhibit A attached hereto, and Declarant desires to submit said real property and all improvements thereon (collectively the "Property") to the Act as a condominium, and WHEREAS, Declarant desires to establish on the Property, a plan for a non- residential garage condominiums, to be owned, occupied and operated for the use, health, safety and welfaz•e of the Owners and Tenants of the Property, and for the puipose of preserving the value, quality and character of the Property, and WHEREAS, the Property (i) is not subject to an ordinance referred to in Section S15B.1-106 of the Act, governing conversions to common interest ownership, and (ii) is not subject to a master association as defined in the Act; and THEREFORE, Declarant subjects the Property to this Declaration under the name "Parlc Place Storage Condominiums of Cottage Grove", consisting of the Units refei to in Section 2, and declaring that this Declaration shall constitute covenants to run with the Property, and that the Propei and any real estate added thereto shall be owned, used, occupied and conveyed subject to the covenants, t•estrictions, easements, charges and liens set forth herein, all of which shall be binding upon all Persons owning or acquiring any right, title or inter•est therein, and their heirs, personal representatives, successors and assigns. SECTION 1 DEFINITIONS The following words when used in the Govei Documents shall have the following meanings (unless the context indicates otherwise): 1.1 "Act" means the Minnesota Common Interest Ownership Act, Minnesota 2 Statutes Chapter S 15B, as amended. 1.2 "Assessments" means and refers to all assessments levied by the Association pursuant to Section 6 of this Declaration. 1.3 "Association" means Parlc Place Storage Cottage Grove Condominium Association, Inc., a nonprofit corporation created pursuant to Minnesota Statutes Chapter 317A and Section S15B.3-101 of the Act, whose members consist of all Owners. 1.4 "Board" means the Board of Directors of the Association, as provided for in the Bylaws. 1.5 "B 1� means the Bylaws governing the operation of the Association, as amended from time to time. 1.6 "Common Area" shall have the same meaning as Common Elements. 1.7 "Common Elements" means all parts of the Property including any improvement thereon, except the Units. 1.8 "Common Ex�enses" means all expenditures made or liabilities incurred by or on behalf of the Association and incident to its operation, including Assessments and items otherwise identified as Common Expenses in the Declaration or Bylaws. 1.9 "Declarant Control Period" means the time period during which Declarant has the exclusive right to appoint the members of the Board, as described in Section 14.7 of this Declaration. 1.10 "Eligible Mortga�ee shall mean any Person owning a mortgage on any Unit, which mortgage is first in priority upon foreclosure to all other mortgages that encumber such Unit, and which has requested the Association, in writing, to notify it regarding any proposed action which requires approval by a specified percentage of Eligible Mortgagees. 1.11 "Governing Documents" means this Declaration, and the Articles of Incorporation and Bylaws of the Association, as amended from time to time, all of which shall govern the use and operation of the Property. 1.12 "Limited Common Elements" means a portion of the Common Elements allocated by the Declaration or by operation of Section S 15B.2-109(c) or (d) of the Act for the exclusive use of one or more but fewer than all of the Units. 1.13 "Member" means all persons who are members of the Association by reason of being Owners as defined in this Declaration. The words "Owner" and "Member" may be used interchangeably in the Governing Documents. 3 1.14 "Owner" means a Person who owns a Unit, but excluding contract for deed vendors, mortgagees, holders of remainder or reversionary interests and other secured parties within the meaning of the Act. 1.15 "Person" means a natural individual, corporation, limited liability company, partnership, limited liability pai trustee, or other legal entity capable of holding title to real property. 1.16 "Plat" means the recorded plat depicting the Property pursuant to the requirements of Section S15B.2-1101 ofthe Act, including any amended or supplemental Plat recorded from time to time in accordance with the Act. 1.17 "Pro�ertv" means all of the real property subjected to this Declaration, now or in the future, including a11 structures and any other improvement located thereon. The Property is legally described in Exhibit A attached hereto. L 18 "Rules and Regulations" means the Rules and Regulations of the Association as approved from time to time pursuant to Section 5.6. 1.19 "Tenant" means any Person or Persons, other than an Owner, occupying or using a Unit. 1.20 "Unit" means a part of the Property, other than the Common Elements, including one or more r•ooms or enclosed spaces, occupying all or part of one or more floors of a building, designed and intended for separate ownership and use, as described in Section 2 and shown on the Plat. Any terms used in the Governing Documents, and defined in the Act and not in this Section, shall have the meaning set forth in the Act. References to Section numbers refer to the Sections of this Declaration unless otherwise indicated. References to the singular may refer to the plural, and conversely, depending upon context. SECTION 2 DESCRIPTION OF UNITS, BOUNDARIES AND RELATED EASEMENTS 2.1 Units. Declarant will build 300 Units, subject to the right of Declarant to add additional Units, or subdivide, combine or convert Units, as provided in Section 15. All Units shall be used exclusively for non-residential purposes, including vehicle, motor-sport equipment and other business storage. 2.2 Unit Boundaries. The boundaries shall be the interior, unfinished surfaces of the perimeter walls, floors, ceilings, doors, windows, and door and window frames of the unit, all paneling, tiles, wallpaper, paint, floor covering, and any other finishing materials applied to the interior surfaces of the perimeter walls, floors or ceilings, are a part of the unit, and all other portions of the perimeter walls, floors, ceilings, doors, windows, and door and window fi•ames, are a part of the common elements. All spaces, interior partitions, and interior � fixtures and any improvement located within the boundaries of a Unit are a part of the Unit. 2.3 The Common Interest Community does not include shoreland, as defined in Minnesota Statutes Section 103F.205. SECTION 3 COMMON ELEMENTS, LIMITED COMMON ELEMENTS AND OTHER PROPERTY 3.1 Common Elements. The Common Elements and their characteristics are as follows: (a) All of the Property not included within the Unit boundaries and any load bearing portions of any interior or perimeter walls, columns, ceilings or floors; and any common utility lines or other common facilities located in or passing tlu•ough a Unit shall be Common Elements. The Common Elements include, but are not limited to all areas and items listed in this Section 3, and those parts of the Property designated as Common Elements on the Plat or in the Act. (b) The Common Elements sha11 be subject to (i) the easements described in this Declaration and any other easements recorded against the Common Elements; (ii) the rights of Owners and Tenants in any Limited Common Elements allocated to their respective Units; and (iii) the right of the Association to establish reasonable Rules and Regulations governing the use of the Property. 3.2 Limited Common Elements. The Limited Common Elements are those parts of the Common Elements reserved for the exclusive use of the Owners and Tenants of the Units to which they are allocated. The rights to the use and enjoyment of the Limited Common Elements are automatically conveyed with the conveyance of such Units. The Limited Common Elements are described and allocated to the Units, as follows: (a) Those items or areas designated as Limited Common Elements on the Plat are allocated to the Units indicated thereon. (b) Improvements, if any, such as loading dock platforms, built-in vehicle lifts, decks, balconies, awnings, exterior windows and doors, driveways, walks, wallcways or entryways constructed as part of the original consttuction to serve a single Unit or Units, and replacements and modifications thereof authorized pursuant to Section 8, located wholly or partially outside the Unit boundaries, are allocated to the Unit or Units which they serve. (c) Chutes, flues, ducts, drains, pipes, wires, conduit or other utility installations, bearing walls, bearing columns, or any other components or fixtures located wholly or partially outside the Unit boundaries, and � serving only that Unit or Units, are allocated to the Unit or Units they serve. Any portion of such installations serving or affecting the function of the Common Elements is a part of the Common Elements. (d) Heating, ventilating, air conditioning, plumbing, electrical or mechanical equipment serving only a certain Unit or Units, and located wholly or partially outside the Unit boundaries is allocated to the Unit or Units served by such equipment. 3.3 Anne�ation of Other Pr�ert� In addition to the Additional Real Estate, which may be unilaterally annexed only by the Declarant, other real property may be annexed to the common interest community as Common Elements and subjected to this Declaration, in accor•dance with Section S15B.2-125 of the Act. SECTION 4 ASSOCIATION MEMBERSHIP AND GUEST PRIVILEGES: RIGHTS, INTERESTS AND OBLIGATIONS Membership in the Association, and the allocation to each Unit of a portion of the votes in the Association and a portion of the Common Expenses of the Association and undivided interests in the Common Elements, shall he goveined by the following provisions: 4.1 Membership. Each Owner shall be a member of the Association solely by reason of owning a Unit, and the membership shall be transfei7ed with the conveyance of the Owner's interest in the Unit. An Owner's membership shall terminate when the Owner's ownership terminates. When more than one Person is an Ownei• of a Unit, a11 such Persons shall be members of the Association, but multiple ownership of a Unit shall not alter the voting rights allocated to such Unit nor authorize the division of the voting rights. 4.2 Allocation of Voting_ Rights, Undivided Interests and Common Expense Obli at� ions• Voting rights are equally divided among the existing units and any future units that may be created; undivided interests in the Common Elements and Common Expense obligations (subject to Sections 6.4 and 6.7) are allocated in accordance with percentages per unit shown on Exhibit B hereto. The Common Expense obligations and undivided inter•ests referred to in this Section 4.2 shall be reallocated among all Units based upon the above formula in the event additional Units are created. 4.3 Appurtenant Rights and Obli at� ions• The ownership of a Unit shall include the voting rights, Common Expense obligations and undivided interests described in Section 4.2. Said rights, interests and obligations, and the title to the Units, shall not be separated or conveyed separately, and any conveyance, encumbrance, judicial sale or other transfer of any allocated interest in a Unit, separate from the title to the Unit shall be void. The allocation of the rights, interests and obligations described in this Section may not be changed, 0 except in accordance with the Governing Documents and the Act. 4.4 Authority to Vote. The Owner, or some natural person designated to act as proxy on behalf of the Owner, and who need not be an Owner, may cast the vote allocated to such Unit at meetings of the Association. However, if there are multiple Owners of a Unit, only the Owner or other person designated pursuant to the provisions of the Bylaws may cast such vote. The voting rights of Owners are more fully described in the Bylaws. SECTION 5 ADMINISTRATION The administration and operation of the Association and the Property, including but not limited to the acts required of the Association, shail be governed by the following provisions: 5.1 General. The operation and administration of the Association and the Property shall be governed by the Governing Documents, the Rules and Regulations, and the Act. The Association shall, subject to the rights of the Owners set fo��th in the Governing Documents and the Act, be responsible for the operation, management and control of the Property. The Association shall have all powers described in the Governing Documents, the Act and the statute under which the Association is incorporated. All power and authority exercisable by the Association shall be vested in the Board, unless action or approval by the individual Owners is specifically required by the Governing Documents or the Act. All references to the Association shall mean the Association acting through the Board, unless specifically stated to the contrary. 5.2 Operational Purposes. The Association shall operate and manage the Property for the purposes of (i) administering and enforcing the covenants, restrictions, easements, charges and liens set forth in the Governing Documents and the Rules and Regulations, (ii) maintaining, repairing and replacing those portions of the Property for which it is responsible, and (iii) preserving the value and architectural character of the Property. 5.3 Bindin� Effect of Actions. All agreements and determinations made by the Association in accordance with the powers and voting rights established by the Governing Documents or the Act shall be binding upon all Owners and Tenants, and their lessees, guests, heirs, personal representatives, successors and assigns, and all secured parties as defined in the Act. 5.4 Bvlaws. The Association shall have Bylaws. The Bylaws shall govern the operation and administration of the Association, and shall be binding on all Owners and Tenants. The Bylaws need not be recorded. 5.5 Mana e�ment. The Board may delegate to a manager or managing agent the management of any or all Units, including any management duties imposed upon the Association's officers and directors by the Governing 7 Documents and the Act. However, such delegation shall not relieve the officers and directors of the ultimate responsibility for the performance of their duties as prescribed by the Governing Documents and by law. The Declarant and/or an affiliate of the Declarant may be employed as the manager of the Association and/or the Property pursuant to a separate, written agreement, subject to termination as provided by the Act or the management agreement. 5.6 Rules and Re�ulations. The Property and the conduct of Persons thereon are subject to regulation, as follows: (a) The Board has the exclusive author•ity to approve and implement such reasonable Rules and Regulations as it deems necessary from time to time for the purpose of operating and administering the affairs of the Association and regulating the use of the Propei provided that the Rules and Regulations shall not be inconsistent with the Governing Documents or the Act. The inclusion in other parts of the Governing Documents of authority to approve Rules and Regulations shall be deemed to be in furtherance, and not in limitation, of the authority granted by this Section. New or amended Rules and Regulations shall be effective only after reasonable notice thereof has been given to the Owners. (b) An Owner may establish reasonable rules relating to the internal use of such Owner's Unit and the conduct of Persons using or visiting the Unit; provided, that the iules shall be consistent with and subject to the Goveining Documents, the Rules and Regulations, this Declaration and applicable law. 5.7 Association Assets; Surplus Funds. All funds and real or personal property acquired by the Association shall be held and used for the benefit of the Owners for the puiposes stated in the Governing Documents. Suiplus funds remaining after payment of or provision for Common Expenses and reserves shall be credited against future Assessments or added to reserves, as detei�rnined by the Board. SECTION 6 ASSESSMENTS 6.1 General. Assessments shall be determined and assessed against the Units by the Board, in its discretion, subject to the requirements and procedures set forth in this Section 6 and the Bylaws. Assessments shall include annual Assessments under Section 6.2, and may include special Assessments under Section 6.3 and limited Assessments under Section 6.4. Annual and special Assessments shall be allocated among the Units in accordance with the allocation formula set foi in Section 4.2 and Exhibit B. Limited Assessments under Section 6.4 shall be allocated to Units as set forth in that Section. : 6.2 Annual Assessments. Annual Assessments shall be established and levied by the Board. Each annual Assessment shall cover all of the anticipated Common � Expenses of the Association for that year which are to be shared by all Units in accordance with the allocation formula described in Section 4.2. Annual Assessments shall be payable annually or in equal monthly or quarterly installments, as established by the Board. Annual Assessments may provide, among other things, for an adequate reserve fund for the replacement of the Common Elements and those parts of the Units for which the Association is responsible and which are not funded by limited Assessments, puisuant to Section 6.4. 6.3 Special Assessments. In addition to annual Assessments, the Board may levy in any Assessment year a special Assessment against all Units in accordance with the allocation formula set forth in Section 4.2. Among other things, special Assessments may be used for the puipose of defraying in whole or in part the cost of any unforeseen or unbudgeted Common Expense. 6.4 Limited Assessments. In addition to annual Assessments and special Assessments, the Board may, at its discretion, levy and allocate limited Assessments among one or more, but not all, Units, in accordance with the following requirements and procedures: (a) Any Common Expense associated with the maintenance, repair, or replacement of a Limited Common Element shall be assessed exclusively against the Unit or Units to which that Limited Common Element is allocated, as determined by the Board. (b) Any Common Expense benefiting fewer than all of the Units but not falling within Section 6.4(a) may be assessed against the Unit or Units benefited, as determined by the Board. (c) The costs of insurance may be assessed equally or by actual cost per Unit, and the costs of common utilities may be assessed equally, in proportion to usage, or such other reasonable allocation as may be approved by the Board. (d) Reasonable attorneys' fees and other professional fees and costs incurred by the Association in connection with (i) the collection of Assessments and (ii) the enforcement of the Governing Documents, the Act, or the Rules and Regulations, against an Owner or Tenant or their guests, may be assessed against the Owner's Unit. (e) Late charges, fines and interest may be assessed as provided in Section 13. (� If any damage to the Common Elements, Limited Common Elements or another Unit or any portion of the Owner's Unit that the � Association is obligated to maintain is caused by the act or omission of any Owner or Tenant, or their guests, the Association may assess the costs of repairing the damage exclusively against the offending Owner's Unit to the extent not covered by insurance. (g) If a Unit is owned by multiple individuals or an entity and the Common Elements or any other improvements or facilities related to the common interest community are used by more than one individual and his or her immediate family, the Board is authorized to assess an Owner of the Unit for excess use of the Common Elements or such other improvements or facilities in an amount deteimined by the Board. (h) If Common Expense liabilities are reallocated for any puipose authorized by the Act, Assessments and any installment thereof not yet due shall be recalculated in accordance with the reallocated Common Expense liabilities. Assessments levied under Sections 6.4(a) through 6.4(g) may, at the Board's discretion, be assessed as a part of, or in addition to, the other Assessments levied under Section 6.1 or 6.2. 6.5 Worlcin� Capital Fund. There shall be established a worlcing capital fund to meet unforeseen or unbudgeted expenditures or to purchase additional equipment or services during the Association's beginning years of operation. There shall be contributed, on a one-time basis upon the initial sale of each Unit by Declarant, an amount equal to $200.00 per Unit. The contribution shall be paid by the Unit purchasers at the ear•lier of the time of closing of sale of the Unit or by the Declarant at the time of termination of the Declarant Control Period as to then unsold Units. The conh7butions to this fund are in addition to the regular installments of annual Assessments. The Board may include in each subsequent annual budget a reasonable amount of working capital, based upon the anticipated needs of the Association for the year in question. The funds shall be deposited into an account of the Association (which need not be a segregated account) no later than the termination of the Declarant Control Period. Funds deposited in said account may be used to fund replacement reserves or for operations of the Property or the Association. Upon the closing of the initial sale of a Unit, Declarant may reimburse itself from funds collected from the purchaser at the closing for any prior contributions made by Declarant to any reserve fund with respect to that Unit. 6.6 Liabilitv of Owners for Assessments. The obligation of an Owner to pay Assessments shall commence at the later of (i) the time at which the Owner acquires title to the Unit, or (ii) the due date of the first Assessment levied by the Board. The Owner at the time an Assessment is payable with respect to the Unit shall be personally liable for the share of the Common EXpenses assessed against such Unit. Such liability shall be joint and several where there are 10 multiple Owners of the Unit. Subject to Section 6.7, the liability is absolute and unconditional and no Owner is exempt from liability for payment of Assessments by right of setoff, by waiver of use or enjoyment of any pai of the Property, by absence from or abandonment of the Unit, by the waiver of any other rights, or by reason of any claim against the Declarant, the Association or its officers, directors or agents, of fot• their failure to fulfill any duties under the Governing Documents or the Act. 6.7 Declarant's Liability for Assessments. The Declarant intends to utilize the alternate common expense plan provided for in Minn. Stat. section S 15B.3- 1151 beginning upon recordation of this Declaration. Pursuant to Section S15B.3-1151(a) of the Act, the Declarant's liability for Assessments shall be subject to the following limitations: (a) If a common expense assessment has not been levied by the association, the Declarant shall pay a11 common expenses of the common interest community, including the payment of the replacement reserve component of the common expenses for all units. (b) If a common expense assessment has been levied by the association, all unit owners, including the Declarant, shall pay the assessments levied against their units, except as follows: (c) The Declarant's common expense liability, and the corresponding assessment lien against the units owned by the Declarant, is limited to: (A) paying when due, in compliance with subsection Minn. Stat. Section S15B.3-1151 (b), an amount equal to the full share of the replacement reseives allocated to units owned by the Declarant, as set forth in the association's annual budget; and (B) paying when due all accrued expenses of the common interest community in excess of the aggregate assessments payable with respect to units owned by persons other than a Declarant provided, that the alternate common expense plan shall not affect the Declarant's obligation to make up any operating deficit pursuant to the Act, and sha11 tei�ninate upon the termination of the period of Declarant control unless terminated earlier pursuant to the Act. The alternate common expense plan will have no effect on the level of services or amenities anticipated by the association's budget contained in the disclosure statement. 6.8 Assessment Lien. The Association has a lien on a Unit for any Assessment levied against that Unit from the time the Assessment becomes due. If an Assessment is payable in installments, the full amount of the Assessment is a lien from the time the first installment thereof becomes due. Fees, charges, late charges, fines and interest charges imposed by the Association pursuant to Section S15B.3-102(a)(10), (11) and (12) of the Act are liens, and are enforceable as Assessments, under this Section 6. Recording of the 11 Declaration constitutes record notice and perfection of any lien under this Section 6, and no further recordation of any notice of or claim for the lien is required. The release of the lien shall not release the Owner from personal liability unless agreed to in writing by the Association. 6.9 Foreclosure of Lien: Remedies. A lien for Assessments may be foreclosed against a Unit under the laws of the state of Minnesota (i) by action, or (ii) by advertisement in a like manner as a mortgage containing a power of sale. The Association, or its authorized representative, shall have the power to bid in at the foreclosure sale and to acquire, hold, lease, mortgage and convey any Unit so acquired. The Owner and any other Person claiming an interest in the Unit, by the acceptance or assertion of any interest in the Unit, grants to the Association a power of sale and full authority to accomplish the foreclosure. The Association shall, in addition to its other remedies, have the right to pursue any other remedy at law or in equity against the Owner who fails to pay any Assessment or charge against the Unit. 6.10 Lien Priority; Foreclosure. A lien for Assessments is prior to all other liens and encumbrances on a Unit except (i) liens and encumbrances recorded before the Declaration, (ii) any first mortgage on the Unit, and (iii) liens for real estate taxes and other governmental assessments or charges against the Unit. Notwithstanding the foregoing, if (1) a first mortgage on a Unit is foreclosed, (2) the first mortgage was recorded on or after the date of recording of this Declaration, and (3) no Owner r•edeems during the Owner's period of redemption provided by Minnesota Statutes Chapters 580, 581, or 582; then the holder of the sheriffs certificate of sale from the foreclosure of the first mortgage shall take title to the Unit subject to a lien in favor of the Association for unpaid Assessments or installments thereof levied pursuant to Sections S15B.3-1151(a), (e)(1) to (3), (�, and (i) of the Act which became due, without acceleration, during the six months immediately preceding the first day following the end of the Owner's period of redemption. 6.11 Real Estate Taxes and Assessments. Real estate taxes, special assessments, and other charges and fees which may be levied against the Common Elements by governmental authorities, shall be allocated among and levied against the Units based upon their respective percentage interests in the Common Elements as set forth in Exhibit B, and shall be a lien against each Unit in the same manner as a lien for real estate taxes and special assessments levied against the Unit alone. 6.12 Voluntarv Conveyances; Statement of Assessments. In a voluntary conveyance of a Unit the buyer sha11 not be personally liable for any unpaid Assessments and other charges made by the Association against the seller or the seller's Unit prior to the time of conveyance to the buyer, unless expressly assumed by the buyer. However, the lien of such Assessments shall remain against the Unit until released. Any seller or buyer shall be entitled to a 12 statement, in recordable form, from the Association setting forth the amount of the unpaid Assessments against the Unit, including all Assessments payable in the Association's current fiscal year, which statement shall be binding on the Association, seller and buyer. SECTION 7 RESTRICTIONS ON USE OF PROPERTY All Owners and Tenants, and all Mortgagees and other secured parties, by their acceptance or assertion of an interest in the Propei or by their occupancy of part or all of a Unit, covenant and agree that, in addition to any other restrictions which may be imposed by the Act, the Governing Documents, or the Rules and Regulations, the occupancy, use, operation, alienation and conveyance of the Property shall be subject to the following restrictions: 7.1 General. The Property shall be owned, conveyed, encumbered, leased, used and occupied subject to the Governing Documents and the Act, as amended from time to time. All covenants, restrictions and obligations set forth in the Governing Documents are in furtherance of a plan for the Property, and shall run with the Property and be a burden and benefit to all Owners and Tenants and to any other Person acquiring or owning an interest in the Property, their heirs, personal representatives, successors and assigns. The Property shall be used for private uses, except as otherwise approved by the Board. Except as provided herein and in the Act, there shall be no restrictions on the use, occupancy, alienation or sale of units. 7.2 Subdivision or Conversion. (i) a unit or units that are not owned exclusively by a declarant or the association may not be subdivided into two or more units or combined into a lesser number of units, or (ii) a unit or units owned exclusively by a declarant or the association may be subdivided, combined, or converted into one or more units, limited common elements, common elements, or a combination of units, limited common elements or common elements. Except as permitted by this Declaration, no Unit, nor any part of the Common Elements, may be subdivided, partitioned or converted without the prior v�n•itten approval of all Owners and all Mortgagees. 7.3 Permitted Uses and Restrictions. The Property shall be used for (i) vehicle storage, including but not limited to the storage of automobiles, motorcycles, recreational vehicles, all terrain vehicles and snowmobiles, (ii) business-related storage and related office uses permitted by City ordinances or by agreement with the City, and approved by the Board, and (iii) other non- residential uses permitted by City ordinances or by agreement with the City, and approved by the Board. 13 7.4 Le asin� . Leases of Units shall be permitted, subject to the following conditions: (i) the Tenant's use shall comply with Section 7.3, (ii) no Unit may be subleased, (iii) a Unit must be leased in its entirety (not in part or by room), (iv) all leases shall be in writing, and (v) all leases shall provide that they are subject to the Governing Documents, the Rules and Regulations and the Act, and that any failuz•e of the Tenant to comply with the terms of such documents shall be a default under the lease. The Owner of the leased Unit shall, upon request of the Board, provide a copy of the signed lease to the Association. 7.5 Parlcin . Subject to the provisions of this Section, surface parlcing areas located on the Common Elements shall be available for parlcing by all Owners and Tenants, and their guests; provided however that no overnight parking on the Common Elements shall be allowed. The Board may establish reasonable Rules and Regulations governing the use of the surface parking areas, including but not limited to the assignment of a limited number of parlcing spaces for the use of handicapped persons, or for the use of the Owners or Tenants of a particular Unit or owneis or employees of businesses located within a Unit; provided, (i) that if parking spaces are assigned, they shall be assigned in a uniform, fair and equitable manner, and (ii) that handicapped spaces shall be reseived in accordance with law. Storage or prolonged parking of vehicles, trailers or other transportation devices in surface parking areas, or the exterior storage of personal property of any type, is prohibited unless (i) authorized by the Board and (ii) in compliance with City ordinances. 7.6 Animals. The Board shall have the exclusive authority to prohibit, or to allow and regulate, the bringing of animals on the Property, or to require and enforce removal of animals that exhibit behavioral problems whose owners fail or refuse to comply with pet restrictions. This authority may be exercised so as to permit or prohibit different types or breeds of animals, but those animals which are permitted (if any) shall be limited to common domestic dogs and cats. However, no animal may be bred, or kept or maintained for business or commercial purposes, anywhere on the Property. The word "animal" shall be interpreted in its broadest sense and shall include all living creatures except humans. Notwithstanding the foregoing, no provision of the Governing Documents, nor any Rule or Regulation, may prohibit the lceeping of a qualified service dog or similar animal by a person who is handicapped within the meaning of the Fair Housing Amendments Act of 1988 or comparable state law. 7.7 Signs. Signs or other displays of any type may be erected (i) only at locations established by the Declarant or subsequently approved by the Board, (ii) in compliance with City sign ordinances and the design standards established for the Property by the Declarant, and (iii) approved pursuant to Section 8. All signs or other displays shall be subject to prior approval by the Declarant so long as Declarant owns a Unit for sale or has the right to add Additional Real Estate to the Property. 14 7.8 Exterior Lightin� The location, size, color and design of all lighting fixtures or similar equipment used or shown outside of a building must be (i) in compliance with City lighting requirements, (ii) consistent with the design standards established for the Property by the Declarant and (iii) approved pursuant to Section 8. 7.9 Outdoor Activities. Outdoor activities on the Property, such as promotional events, gatherings, demonstrations, displays or other activities which have the potential to materially affect any easement or use rights, cause a nuisance or inaterial disturbance, create a safety or health hazard, or create material liability for the Association or any Member, shall be subj ect to approval by the Board. In determining whether to authorize an activity, the Board shall, at minimum, talce into consideration the security of the Property, the potential for disturbance or damage to the Property, the potential liability for the Association or any Member, the health and safety of Persons occupying or using the Property, and whether the activity urueasonably impairs any easement or other authorized use of the Property. 7.10 Quiet Enjovment: Interference Prohibited. All Owners and Tenants and their guests shall have a right of quiet enjoyment in their respective Units, subject to the usual and customary sounds, odors or activities commonly associated with occupants such as those located in the Units. Subject to the foregoing, the Property shall be occupied and used in such a mannez• as will not cause a nuisance, nor unduly restrict, interfere with oi• impede the reasonable use and quiet enjoyment of the Property by other Owners and Tenants and their guests. 7.11 Compliance with Law. No use shall be made of the Property which would violate any then existing municipal codes or ordinances, or state or federal laws, nor shall any act or use be permitted which could cause waste to the Property, cause a material increase in insurance r•ates on the Property, or otherwise cause any unusual liability, health or safety risk, or expense, for the Association or any Owner• or Tenant. 7.12 Ponds, Wetlands and Trees. Marshes, wetland areas, vegetation and trees, whether natural or otherwise, shall be maintained in substantially the same condition as originally existing or established by the Declarant, subject only to (i) changes authorized or made by the Association consistent with all statutes, requirements, rules and regulations imposed on such areas and items by governmental authorities having jurisdiction and (ii) the prior approval by the City or any other governmental authorities, if required. 7.13 Time Shares Prohibited. The time share form of ownership, or any comparable form of lease, occupancy rights, ownership, or right-to-use plans, which has the effect of dividing the ownership or occupancy of a Unit into separate time periods, is prohibited. 7.14 Access to Units. In case of emergency, all Units and Limited Common 15 Elements are subject to entiy, without notice and at any time, by an officer or member of the Board, by the Association's management agents. Entz•y is also authorized for maintenance pui�poses under Section 9, and for enforcement purposes under Section 13. SECTION 8 ARCHITECTURAL STANDARDS 8.1 Restrictions on Improvements. One of the purposes of this Declaration is to ensure that the Property is lcept architecturally attractive and substantially uniform in appearance. Therefoi�e, except as set forth in Section 8.5, the following restrictions and requirements shall apply to improvements to the Property: (a) Subject to applicable state and federal law and this Section 8, no modifications, alterations, improvements, repairs or replacements of any type, temporary or permanent, structural, aesthetic or otherwise (collectively referred to as "improvements"), including but not limited to, any structure, building, addition, deck, patio, fence, wall, enclosure, window, exterior door, antenna or other type of sending or receiving apparatus, sign, display, decoration, color change, sluubbery, material topographical or landscaping change, shall be made, or caused or allowed to be made, by any Owner or Tenant, or their invitees, in any part of the Common Elements, or in any part of the Unit which affects the Common Elements or another Unit, or which is visible from the exterior of the Unit, without the pz•ior written authorization of the Board, or an architectural committee appointed by it, and in compliance with the requirements of this Section. Declaz•ant's written consent shall also be required for improvements until such time as Declarant no longer owns any Unit for initial sale or has the right to add Additional Real Estate to the Property. (b) The Board may appoint, supervise and disestablish an architectural committee, and specifically delegate to it part or all of the functions which the Board exercises under this Section 8, in which case the references to the Board shall refer to the architectural committee where appropriate. The architectural committee shall be subject to the supervision of the Board. (c) The Board shall establish the criteria for approval of improvements, which shall include and require, at a minimum: (i) substantial uniformity of color, location, type and design in relation to existing buildings and topography, (ii) comparable or better quality of materials as used in any existing improvement on the Property, 16 (iii) ease of maintenance and repair, (iv) adequate protection of the Property, the Association, Owners and Tenants fiom liability and liens arising out of the proposed improvements, and (v) compliance with governmental laws, codes and regulations. The Board, or the appointed architectural committee if so authorized by the Board, has the right to establish such additional criteria, architectural or otherwise, as it deems appropriate, and shall be the sole judge of whether such criteria are satisfied. (d) Approval of improvements which immaterially encroach upon another Unit or the Common Elements shall create an appurtenant easement for such encroachment in favor of the Unit with respect to which the improvements are approved, notwithstanding any contrary requirement in the Governing Documents or the Act. A file of the Board resolutions approving or denying all applications for improvements shall be maintained permanently as a part of the Association's records. (e) Improveinents made within the boundaries of a Unit, as defined in Section 2.2, or to its Limited Common Elements may be made without approval by the Board, provided that such improvements do not impair the structural or weather-tight integrity of the Common Elements, interfere with utilities or building operating systems or violate applicable governmental laws, codes or regulations. The Board shall have the authority to approve and implement such reasonable Rules and Regulations as it deems necessary fiom time to time for the purpose of resh7cting interior improvelnents to a Unit or its Limited Common Elements which may impair the structural or weather-tight integrity of the Common Elements, interfere with utilities or building operating systems or violate applicable goverrunental laws, codes or regulations. To the extent interior improvements to a Unit or its Limited Common Elements involve electrical work, such elecnical worlc must be perfoi7ned by a licensed elech•ician. 8.2 Review Procedures. The following procedures shall govern requests for improvements under this Section: (a) Detailed plans, specifications and related information regarding any proposed improvement, in form and content acceptable to the Board, shall be submitted to the Board and to Declarant (if applicable) at least sixty days prior to the projected commencement of construction. No improvements shall be commenced prior to approvaL (b) The Board and Declarant (if applicable) shall give the Owner 17 written notice of approval or disapproval. If the Board and Declarant (if applicable) fail to give notice of approval oi• disapproval within sixty days after receipt of said plans and specifications and all other information requested by the Board and Declarant (if applicable), then approval shall be deemed to be granted; provided, that the improvements are done in accordance with the plans, specifications and related information which were submitted. (c) If no request for approval is submitted, approval shall be deemed to be denied. 8.3 Remedies for Violations. The Association may undertalce any measures, legal, equitable or administrative, to enforce compliance with this Section and shall be entitled to recover from the Owner causing or permitting the violation all attorneys' and other professional fees and costs of enforcement incui7ed by the Association, regardless of the type of action taken (if any). Such attorneys' fees and costs shall be a lien against the Owner's Unit and a personal obligation of the Owner. In addition, the Association shall have the right to enter the Owner's Unit and to restore any part of a building or Unit to its prior condition if any improvements were made in violation of this Section, and the cost of such restoration shall be a personal obligation of the Owner and a lien against the Owner's Unit. 8.4 Owner Res�onsibility/Indemnity_ The Owner who causes an improvement to be made, regardless of whether the improvement is appi�oved by the Board, shall be responsible for the construction work and any claims, damages, losses or liabilities arising out of the improvements. The Owner shall hold harmless, indemnify and defend the Association, and its officers, directors and committee members, from and against any expenses, claims, damages, losses or other liabilities, including without limitation attorneys' fees and costs of litigation, arising out of (i) any improvement which violates any governmental laws, codes, ordinances or regulations, (ii) the adequacy of the specifications or standards for construction of the improvements and (iii) the construction of the improvements. 8.5 Exemptions. The requirements set forth in this Section 8 shall not apply to original construction by Declarant or its affiliates in connection with its completion and sale of the Units. SECTION 9 MAINTENANCE AND REPAIR 9.1 Association Obli atg ions. Subject to Section 9.2, the Association shall provide for all maintenance, repair or replacement (collectively referred to as "maintenance") of the Common Elements, and Limited Common Elements, including any improvement ther•eto, subject to the following qualifications or additions: 18 (a) The Association shall maintain garage doors, excluding garage door hardware, openers, and weather-stripping. (b) The cost of maintenance, repair or replacement of part or all of a Limited Common Element shall be assessed against the Unit or Units to which the Limited Common Element is allocated in accordance with Section 6.4(a). (c) The cost of maintenance, repair or replacement of a part of the Common Elements which benefits only a certain Unit or Units, may be assessed against the Unit or Units benefited in accordance with Section 6.4(b). (d) The Association may assign to an Owner the obligation for maintenance of a Limited Common Eleinent allocated to the Owner's Unit and iinpose standards for the maintenance. However, if the Owner fails to perforin the maintenance to the standards established by the Association, the Association may enter the Limited Common Element, perform the maintenance and assess the Owner's Unit for the costs. (e) The Association may elect to maintain, repair or replace mechanical, structural or other components within the Units and assess the costs against the Unit, if the failure or impairment of the component could result in damage to the Common Elements or other Units, impair the function of any common building system, or create a health or safety hazard. (� The Association shall be responsible for incidental damage caused to a Unit or its Limited Common Elements by worlc undertalcen by the Association pursuant to this Section. (g) If damage is caused to the Common Elements, Limited Common Elements or other Units by an Owner or Tenant, or their guests, or by any condition in the Unit or Limited Common Elements which the Owner or Tenant has caused or allowed to exist, then the Association may repaii• the damage or coirect the condition and assess the cost thereof against the responsible Owner's Unit. 9.2 Owner Obli atg ions. Each Owner shall, at its expense, undertalce the following obligations for maintenance, repair and replacement: (a) To maintain, repair, and replace (i) the Owner's Unit; and (ii) any Limited Common Elements allocated to the Unit except to the extent maintained by the Association. The Units and Limited Coinmon Elements shall be kept in good, clean and sanitary condition and repair. 19 (b) The Owner or Owners of adjacent Units that are separated by a Common Element space within which a wall is not constructed shall maintain that Common Element space and lceep that Common Element space in good, clean, and sanitary condition. Damage to that Common Element space may be repaired by the Association under Section 9.1(g). The obligations under this Section 9.2(b) shall he joint and several if the adjacent Units are not owned by the same Person. (c) To perform its maintenance obligations promptly and in such manner as not to damage the Property, nor unreasonably disturb or cause a hazard to peisons occupying or otherwise using the Property. The Board may require that the Owners perform their maintenance obligations in accordance with reasonable standards established by the Board and in a manner consistent with the Declarant's design plan for the common interest community. (d) To promptly pay or reimbuz•se the Association for any costs incurred by the Association for the repair of any damage to the Common Elements, Limited Common Elements or other Units, caused by an Owner or Tenant, or their guests, or caused by any condition in the Unit or Limited Common Elements which the Owner or Tenant has allowed to exist. (e) If an Owner fails or refuses to perform the Owner's duty to maintain, repair or replace, the Association shall have authority to undertake the necessary work and assess the Owner's Unit for the cost thereof; provided that reasonable notice and an opportunity to cure the violation shall first be given to the Owner. 9.3 Optional Maintenance by Association. In addition to the maintenance described in Section 9.1, the Association may, with approval of the Board, undertalce to provide additional maintenance to the Units. SECTION 10 INSURANCE 10.1 Association Insurance. The Association shall obtain and maintain the following insurance relating to the Property: (a) The Association shall, at a minimum, maintain property insurance in broad form, and bare wa11 coverage or all in coverage, covering all risks of physical loss in an arnount equal to one hundred percent of the insurabie "replacement cost" of the Property, less deductibles; but excluding (i) land, footings, excavation and other items normally excluded from coverage, and (ii) items such as ceiling or wall 20 finishing materials, floor coverings, plumbing, lighting and other interior fixtures, built-in equipment, business equipment, or any other improvement or bettez•ment installed within the Units. The policy or policies shall also cover personal pr•operty owned by the Association. The policy or policies shall also contain "Inflation Guard" and "Agreed Amount" endorsements, if reasonably available. The Association may enter into an agreement with a Mortgagee or a guarantor, insurer or servicer of a mortgage, obligating the Association to lceep other coverages or endorsements in effect. The Association may also enter into agreements among all Owners as to the allocation of insurance proceeds among their Units. (b) Comrnercial general liability insurance covering the use, operation and maintenance of the Cominon Elements, with minimum limits of one million dollars per occurrence, against claims for death, bodily injury and property damage, and such other rislcs as are customarily covered by such policies for projects similar in construction, location and use to the Property. The policy shall contain a "severability of interest" endorsement which shall preclude the insurer from denying the claim of an Owner or Tenant because of negligent acts of the Association or other Owners or Tenants. (c) Such other types and amounts of insm�ance as may be deterinined by the Board to be necessary or desirable, including but not limited to officers and diz•ectors' liability insurance, workers' compensation insurance, and insurance or fidelity bonds covering dishonest acts by those Persons having control or custody of the Association's funds. 10.2 Cancellation• Notice of Loss.All policies of property insurance and Cornprehensive liability insurance maintained by the Association shall provide that the policies shall not be canceled or substantially modified, for any reason, without at least thii days' prior written notice to the Association, the insureds and all Eligible Mortgagees. 10.3 Conflicts with Act. In the event of a conflict between this Section 10 and the Act, this Section 10 shall control, it being the intention of Declarant that the Association and the Owners shall have authority and discretion to deal with the unique insurance needs associated with the uses of the Units and the requirements of Mortgagees. 10.4 Owners' Insurance/Indemnitv. Each Owner shall obtain and maintain the following insurance and provide the described indemnities: (a) Property insurance insuring any insurable improvement within the Owner's Unit for the full insurable replacement value of such 21 improvement. (b) Commei�cial general liability insurance covering the Owner's Unit, and the activities of the Owner, and its officers, directors, employees and agents in connection with the Owner's occupancy, operation, management and use of the Unit, including any additional coverages customarily carried for unique or hazardous activities arising out of a business or activities conducted on the Unit. Said liability insurance shall be in the minimum amounts of (i) $1,000,000 for an accident affecting more than one person in or resulting from one occurrence and (ii) $1,000,000 property damage for each occurrence. Each Owner shall, upon request of the Association or any other Owner, furnish a certificate or certificates of such insurance. (c) Each Owner shall hold harmless, indemnify and defend the Declarant, other Owners and the Association, and their respective officers, directors and employees, from and against all claims, actions, damages and other liabilities, including attorneys' fees and costs, arising out of incidents occurring within such Owner's Unit or arising out of the conduct of the Owner or Tenants of the Unit or their employees, agents, contractors and guests, unless caused by the intentional or negligent act or omission of the party to be indemnified. (d) The Owner's insurance shall be primary as against the Association's insurance for damages to any interior improvement to the Units, and there shall be no right of contribution against the Association's insurance. SECTION 11 RECONSTRUCTION, EMINENT DOMAIN AND TERNIINATION 11.1 Reconstruction. The obligations and procedures for the repair, reconstruction or disposition of the Property following damage or destruction thereof shall be governed by the Act. Any repair or reconstruction shall be commenced as soon as practicable after the casualty and shall be substantially in accordance with the plans, specifications and design of the Property as initially constructed and subsequently improved. 11.2 Eminent Domain. In the event of a talcing of any part of the Property by condemnation or eminent domain, the provisions of the Act shall govern; provided, (i) that notice shall be given as provided in Section 11.4 and 17.4, (ii) that the Association shall be the attorney-in-fact to represent the Owner•s in any related proceedings, negotiations, settlements or agreements and (iii) that any awards or proceeds shall be payable to the 22 Association for the benefit of the Owners and the Mortgagees of their Units, as their interests may appear. 11.3 Termination and Liquidation. The termination of the common interest community, and the distribution of any proceeds therefrom, shall be governed by the Act, except that any distributions shall be allocated based upon the value of the Units as unanimously agreed upon by the Owners, or by appraisers agreed upon in writing by a majority of the Owners and Mortgagees, and shall be made to Owners and their Mortgagees as their interests may appear. 11.4 Notice. The Association shall give written notice of any condemnation proceedings or substantial destruction of the Property to the Mortgagees within ten business days after the casualty or first legal notice of condemnation. 11.5 Association's Authoritv. In all cases involving reconstruction, condemnation, eminent domain, terinination or liquidation of the common interest community, the Association may (i) act on behalf of the Owners in all proceedings, negotiations and settlement of claims, or (ii) delegate the authority to act to an Owner or Owners of the affected Units if the casualty affects fewer than all Units. If such authority is retained and exercised by the Association, then all proceeds shall be payable to the Association to hold and distribute for the benefit of the Owners and their Mortgagees. Mortgagees are entitled to priority for awards and distributions in accordance with the priorities established by the Act and their mortgage loan documents, as their interests may appear. SECTION 12 EASEMENTS The following appurtenant easements and rights are hereby granted, conveyed, dedicated and reserved on, over, under and across the Property, as applicable. 12.1 Access. Each Unit shall be the beneficiary of a nonexclusive easement for• access to and fi•om public roadways and wallcways on and across those portions of the Common Elements designated for use as roadways, driveways or wallcways, as originally constructed, shown on the Plat or otherwise designated by the Association, subject to any restrictions authorized by (i) the Governing Docutnents or the Rules and Regulations, or (ii) any governmental authority. 12.2 Use and Enioyment. Each Unit shall be the beneficiary of nonexclusive easements for use and enjoyment on and across the Common Elements and any Limited Common Element allocated to the Units, subject to any restrictions authorized or imposed by the Governing 23 Documents. 12.3 Structural Su�port. Each Unit and the Common Elements shall be subject to and the beneficiary of nonexclusive easements for structural suppoi�t in all walls, columns, joists, girders and other structural components located in or passing through another Unit or other parts of the buildings, or shared with an adjoining Unit or the Common Elements. 12.4 Encroachments. Each Unit and the Common Elements, and the rights of the Owners and Tenants therein, shall be subject to a nonexclusive easement in favor of the adjoining Units for encz•oachments caused by the construction, reconstruction, repair, shifting, settlement or movement of any part of the Pi•operty, and for any improvement which is added in compliance with Section 8. If there is an encroachment upon another Unit or the Common Elements, as a result of any of the aforementioned causes, an easement shall exist for the encroachment, for the use, enjoyment and habitation of any encroaching Unit or improvement, and for the maintenance thereof. Any improvement added pursuant to Section 8 shall be limited to minor encroachments, and no easeinent sha11 exist unless the proposed improvement has been approved and constructed as required by this Declaration. Such easements shall continue for as long as the encroachment exists and shall not affect the marketability of title. 12.5 Maintenance, Repair, Re�lacement and Reconstruction. Each Unit, and the rights of the Owners and Tenants thereof, and the Common Elements and Limited Common Element, shall be subject and benefited by a nonexclusive easement in favor of the Association for the maintenance, repair, replacement and reconstruction of the Common Elements, Units and any improvements related thereto, and utilities seiving the Units, to the extent necessary to fulfill the Association's obligations under the Governing Documents. Each Owner shall afford to the Association and its management agents and employees, access at reasonable times and upon reasonable notice, to and through the Unit and its Limited Common Elements for maintenance, repair and replacement; provided that access may be had without notice and at any time in case of emergency. 12.6 Utilities and Services. The Common Elements and the Units shall be subject to and benefited by nonexclusive easements in favor of the Association, the City and all utility companies and other service providers for the installation, use, maintenance, repair and replacement of all utilities, services and common operating systems, such as natural gas, electricity, cable TV and other electronic communications, water, sewei�, septic systems, wells, and similar services, fire conti•ol systems and other common operating systems, and metering and control devices, which exist, which are constructed as part of the development of the Property which are approved by the City, which are approved by the Association under 24 authority contained in the Governing Documents or the Act, or which are described or referred to in the Plat, this Declaration or other recorded instruments. Each Unit, and the rights of the Owners and Tenants thereof, shall also be subject to and benefited by a non-exclusive, easement in favor of the other Units, the Coinmon Elements and the Association for all such utilities, services, fire control systems and other common operating systems. Utilities and related services or systems shall be installed, used, maintained and repaired so as not to interfere with the use and quiet enj oyment of the Units by the Owners and Tenants, nor affect the str•uctural or architectur•al integrity of the buildings, Units or any Common Element improvement. 12.7 Emergency Access to Units. In case of emergency, all Units and Limited Common Elements are subject to an easement, without notice and at any time, in favor of the Association for access by the Association's management agents, and in favor of fire, police or other public safety personnel. 12.8 Proiect Si� Declarant and the Association shall have a non-exclusive easement and right to erect and maintain temporary and permanent signs and related monuments identifying the common interest community on the Common Elements and on Units owned by the Declarant. Those parts of the Property on which monument signs or any related decorative improvement is located shall be subject to non-exclusive easements in favor of the Association for the continuing use, maintenance, repair and replacement of said signs and any improvements. 12.9 Declarant's Easements. The Units and Common Elements are subject to exclusive easements in favor of the Declarant for the exercise of its Declarant rights as described in the Governing Documents. 12.11 Other Easements. The Property shall be subject to such easements as may be recorded against the Property by reason of the City's requirements in connection with the development of the Property. 12.12 Conservation Easement. The City and other applicable governmental authorities or agencies that have jurisdiction over the Property may have a non-exclusive easement on and across the Common Elements for reasonable access to and maintenance of any ponds and wetlands located on the Property. 12.13 Continuation. Scope and Conflict of Easements. The easements set forth in this Section (i) shall run with the land and shall be appurtenant to the benefited Property, (ii) shall supplement and not limit any easements described elsewhere in this Declaration, or otherwise recorded, (iii) shall be permanent, subject only to termination in accordance with the terms of the easement, and (iv) shall include reasonable access to the easement areas 25 over and through the Property for purposes of construction, maintenance, repair, i•eplacement and reconstruction. 12.14 Non Interference; Im�ail�nent Prohibited. All Persons exercising easement rights shall do so in a reasonable manner so as not to materially interfere with the operation of the Property or damage to the Property, and shall be financially liable for all costs of repair of any part of the Property which is dainaged by the Person's exercise of the easement rights. No Person shall impair, obstruct or cause damage to any easement area, or any improvement or equipment installed therein. Notwithstanding anything in this Declaration to the contrary, no Owner or Tenant shall be denied t•easonable access to his or her Unit or the right to utility services thereto. 12.15 Benefit of Easements. All easements benefiting a Unit shall benefit the Owners and Tenants of the Unit, and their guests. Howevei•, an Owner who has delegated the right to occupy the Unit to an Tenant or Tenants, whether by a lease or otherwise, does not have the use and other easements rights in the Property during such delegated occupancy, except (i) as a guest of an Owner or Tenant or (ii) in connection with the inspection of the Unit or recovei•y of possession of the Unit pursuant to law. SECTION 13 COMPLIANCE AND REMEDIES Each Owner and Tenant, and any other Person owning or acquiring any interest in the Property, shall be governed by and comply with the provisions of the Act, the Governing Documents, the Rules and Regulations, and such amendments thereto as may be made from time to time, and the decisions of the Association. A failure to comply shall entitle the Association to the relief set forth in this Section, in addition to the rights and remedies authorized elsewhere by the Governing Documents or the Act. 13.1 Entitlement to Relief. Legal relief may be sought by the Association, at its discretion, against any Owner, or by an Owner against the Association or another Owner, to enforce compliance with the Governing Documents, the Rules and Regulations, the Act or the decisions of the Association. However, no Owner may withhold any Assessments payable to the Association, or take or omit other action in violation of the Governing Documents, the Rules and Regulations or the Act, as a measure to enforce such Owner's position, or for any other reason. 13.2 Remedies. In addition to any other remedies or sanctions, expressed or implied, administrative or legal, the Association shall ha�e the right (or the obligation if so indicated) to implement any one or more of the following actions against Owners and Tenants and/or their guests, who violate the provisions of the Governing Documents, the Rules and Regulations or the Act: � (a) Commence legal action for damages or equitable relief in any court of competent jurisdiction. (b) Impose late charges, in an amount set by the Board from time to time, for each Assessment or installment thereof past due more than thirty days, and impose interest at the highest rate pei•mitted by law accruing beginning on the first day of the month after the Assessment or installment was due. In the absence of a Board resolution establishing a late charge, the late charge shall be one hundred dollars for each late payment and shall be automatically imposed. (c) In the event of default of rnore than thirty days in the payment of any Assessment or installment thereof, all reinaining installments of Assessments levied against the Unit owned by the defaulting Owner, together with any late payment charges, interest, attorneys' and other professional fees and costs of collection, may be accelerated by the Board and shall then be payable in full if not paid within ten days after receipt of notice from the Association. (d) Impose reasonable fines, penalties or charges for each violation of the Act, the Governing Documents or the Rules and Regulations. (e) Restore any portions of any Common Elements, Unit, or Limited Common Eleinents damaged or altered, or allowed to be damaged or altered, by any Owner or Tenant or their guests in violation of the Governing Documents, and to assess the cost of such restoration against the responsible Owners and their Units. (f) Enter any Unit or Limited Common Element in which a violation or breach of the Governing Documents or the Rules and Regulations exists which materially affects, or is likely to materially affect in the near future, the health or safety of the other Owners or Tenants, or their guests, or the safety or soundness of any other part of the Property or the property of the Owners or Tenants, and to summarily abate and remove, at the expense of the offending Owner or Tenant, any structure, thing or condition in the Unit or Limited Common Elements which is causing the violation; provided, that any improvement which is a part of a Unit may he altered oi• removed only pursuant to a court order or with the agreement of the Owner. (g) Foreclose any lien arising under the provisions of the Governing Documents or under law, in the manner provided by the Act and Section 6. 13.3 Ri�hts to Hearing. Before the imposition of any of the remedies 27 authorized by Section 13.2(d), 13.2(e) or 13.2(�, the Board shall, upon written request of the offender, grant to the offender• an opportunity for a fair and equitable hearing as contemplated by the Governing Documents and the Act. The offender shall be given notice of the nature of the violation and the right to a hearing, and at least ten days within which to request a hearing. The hearing shall be scheduled by the Board and held within thirty days of receipt of the hearing request by the Board, and with at least ten days prior written notice to the offender. If the offender fails to timely request a hearing or to appear at the hearing, then the right to a hearing shall be waived and the Board may take such action as it deems appropriate. The decision of the Board and the i•ules for the conduct of hearings established by the Board shall be final and binding on all parties. The Board's decision shall be delivered in writing to the offender within ten days following the hearing, if not delivered to the offender at the hearing. If the Board delegates the hearing duties described in this Section to a committee, then references in this Section to the Board's hearing duties shall refer to the committee. 13.4 Lien for Charges, Penalties Etc. Any charges, fines, expenses, penalties, interest or other impositions under this Section shall be a lien against the Unit of the Owner or Tenant against whom the same are imposed and the personal obligation of such Owner in the same manner and with the same priority and effect as Assessments under Section 6. The lien shall attach as of the date of imposition of the remedy, but shall not be final as to violations for which a hearing is held until the Board makes a written decision at or following the hearing. All remedies shall be cumulative, and the exercise of, or failure to exercise, any remedy shall not be deemed a waiver of the Association's right to pursue any others. 13.5 Costs of Proceedin� and Attorneys' Fees. With respect to any collection measures, or any measures or action, legai, administrative, or otherwise, which the Association takes pursuant to the provisions of the Act, Governing Documents or Rules and Regulations, whether or not finally determined by a court or arbitrator, the Association may assess the Unit owned by the violator with any expenses incurred in connection with such enforcement, including without limitation fines or charges previously imposed by the Association, reasonable attorneys' fees and other professional fees, and interest (at the highest rate allowed by law) on the delinquent amounts owed to the Association. Such expenses shall also include any collection or contingency fees or costs charged to the Association by a collection agency or othez• Person acting on behalf of the Association in collecting any delinquent amounts owed to the Association by an Owner or Tenant. Such collection or contingency fees or costs shall be the personal obligation of the Owner of the Unit and shall be a lien against such Owner's Unit. 28 13.6 Liabilitv for Acts of Owners and Tenants. An Owner shall be liable for the expense of any maintenance, repair or replacement of the Property rendered necessary by such Owner's acts or omissions, or by that of Tenants or guests in the Owner's Unit, to the extent that such expense is not covered by the proceeds of insurance carried by the Association or such Owner or Tenant. However, any insurance deductible ainount and/or increase in insurance rates, resulting froin the Owner's acts or omissions may be assessed against the Owner responsible for the condition and against his or her Unit. 13.7 Enforcement bv Owneis. The provisions of this Section shall not limit or impair the independent rights of Owners to enforce the provisions of the Governing Documents, the Rules and Regulations, and the Act as provided therein. SECTION 14 SPECIAL DECLARANT RIGHTS Declarant hereby reseives exclusive and unconditional authority to exercise the foilowing Declarant rights within the meaning of Section S15B.1-103(33b) of the Act, and other rights described in this statutory section, for as long as it owns a Unit, or for such shorter period as may be specifically indicated: 14.1 Complete Improvements. To complete all the buildings, Units and any other improvement indicated on the Plat, or othei�wise included in Declarant's development plans, or authorized by the City or the Declaration, and to make improvements in the Units owned by the Declarant and Common Elements to accommodate the exercise of any Declarant rights. 14.2 Add Additional Reai Estate. To add Additional Real Estate to the Property as described in Section 15. 14.3 Relocate Boundaries Subdivide Coinbine Convert and Alter Units. To relocate boundaries between Units, subdivide, combine and convert Units and to otherwise alter Units owned by it, to the extent pennitted by the Act and in accordance with Section 15, as applicable. 14.4 Marlcetin� Facilities. To construct, operate and maintain a sales office, management office, models, and other development, sales and rental facilities within the Common Elements, and within any Units owned or leased by Declarant from time to time located anywhere on the Property or the Additional Real Estate. 14.5 Signs. To erect and maintain signs and other sales displays offering the Units for sale or lease, in or on any Unit owned by Declaz•ant and on the Common Elements or on the Additional Real Estate. 14.6 Easements. To have and use easements, for itself, its employees, contractors, � representatives, agents, prospective purchasers or other invitees through and over the Common Elements and Limited Common Elements for the puipose of exercising its Declarant rights. 14.7 Control of Association. To control the operation and administration of the Association, including without limitation the power to appoint and remove the members of the Board pursuant to Section S15B.3-103 of the Act, until the earliest of: (i) voluntaiy sui7ender of control by Declarant, (ii) conveyance to Owners other than Declarant of seventy-five percent of the total number of Units authorized to be included in the Property or (iii) the date five years following the date of the first conveyance of a Unit to an Owner other than Declarant. Notwithstanding the foregoing, the Owners other than Declarant shall have the right to nominate and elect not less than thirty-three and one-third percent of the directors at a meeting of the Owners which shall be held within sixty days following the conveyance by Declarant of fifty percent of the total number of Units authorized to be included in the Properry. 14.8 Consent to Certain Amendments. Declarant's written consent shall be required for any amendment to the Governing Documents or Rules and Regulations so long as Declarant owns any Unit for initial sale or has the right to add Additional Real Estate to the Properry. SECTION 15 RIGHTS TO ADD ADDITIONAL REAL ESTATE AND SUBDIVIDE, COMBINE AND CONVERT UNITS 15.1 Additional Real Estate. Declarant hereby expressly reserves the right to add the Additional Real Estate to the Property, by unilaterally executing and recording a supplemental declaration pursuant to Section S 15B.2- 111 of the Act, subject to the following conditions: (a) The right of Declarant to add the Additional Real Estate to the common interest community shall terminate ten years after the date of recording of this Declaration or upon earlier express written withdrawal of such right by Declarant or a successor Declarant, unless extended by a vote of the Owners pursuant to Section S 15B.2- 106(a)(2) of the Act. There are no other limitations on Declarant's rights hereunder, except as may be imposed by law. (b) The Additional Real Estate is described in Exhibit C attached hereto. The Additional Real Estate may be added to the Property in parcels consisting of one or more platted or unplatted parcels, or portions thereof, and in any sequence. (c) Declarant has no obligation to add the Additional Real Estate or any part of it to the Property. If Declarant decides to add the Additional Real Estate to the Property, there are no assurances as to 30 the times at which any part of the Additional Real Estate will be added, the order in which it will be added, the number of Units per phase or the size of the Units. The Additional Real Estate may be developed by Declarant or its successors in interest for any purpose, subject only to approval by the appropriate governmental authorities. (d) Declarant's good faith estimate of the number of the total units that may be created within any additional real estate is or cr•eated by subdivision or conversion of Units owned by the Declarant is 300. All Units created on the Additional Real Estate shall be restricted exclusively to non-residential use. (e) The Units, buildings and any other improvement created upon the Additional Real Estate will be compatible with the Units, buildings and any other improvement which is initially a part of the Property, in terms of general architectural style, quality of construction, principal materials employed in construction; subject to marlcet conditions and governmental and lender requirements. (f j All covenants and restrictions contained in this Declaration affecting the use, occupancy and alienation of Units shall apply to all Units created on the Additional Real Estate. The statements made in this Section 15.1 shall not apply to any Additional Real Estate which is not added to the Property. 15.2 Rights to Relocate Boundaries, or Subdivide, Combine or Convert Units. Declarant shall have the following rights and authority pursuant to Section S15B.2-112 of the Act with respect to Units owned by it: (i) to relocate the boundaries of any Units; and (ii) to combine Units, or to subdivide or convert Units and create additional Units, Common Elements or Limited Common Elements therefrom. Other Owners shall have the right to create additional Units by the subdivision of any Unit owned by them in accordance with Section S15B.2-112 of the Act. The exercise of the foregoing rights by Declarant shall be subject to the prior written consent of the mortgagee identified on the Consent of Mortgagee attached to this Declaration during the time that said mortgagee's mortgage is a lien against any part of the Property; and provided further, that said consent shall not be unreasonably withheld. SECTION 16 AMENDMENTS 16.1 A�roval Requirements. Except as otherwise provided herein, this Declaration may be amended only by the approval of: 31 (a) The Board. (b) Owners of Units to which are allocated at least sixty-seven percent of the total votes in the Association. (c) Declarant pursuant to Section 14.8. 16.2 Procedures. Appr•oval of the Owners may be obtained in writing or at a meeting of the Association duly held in accordance with the Bylaws. Consent of the Declarant shall be in writing. Any aniendment shall be subject to any greater requirements imposed by the Act. The amendment shall be effective when recorded as provided in the Act. An affidavit by the Secretary of the Association as to the outcome of the vote, or the execution of the foregoing agreements or consents, shall be adequate evidence thereof for all purposes, including without limitation, the recording of the amendment. SECTION 17 MISCELLANEOUS 17.1 Severabilitv. If any term, covenant, or provision of this instrument or any exhibit attached hereto is held to be invalid or unenforceable for any reason whatsoever, such determination shall not be deemed to alter, affect or impair in any manner whatsoever any other portion of this Declaration or exhibits attached hereto. 17.2 Construction. Where applicable, the masculine gender of any word used herein shall mean the feminine or neutral gender, or vice versa, and the singular of any word used herein shall mean the plural, or vice versa. References to the Act, or any section thereof, shall be deemed to include any statutes amending or replacing the Act, and the comparable sections thereo£ Any ainendment to the Act shall retroactively apply to the Association and the Property, except as expressly prohibited or qualified by the Governing Documents. 17.3 Tender of Claims. In the event that any incident occros which could reasonably give rise to a demand by the Association against Declarant for indemnification pursuant to the Act, the Association shall promptly tender the defense of the action to its insurance carrier, and give Declarant (i) wr•itten notice of such tender, (ii) written notice of the specific nature of the action, and (iii) an opportunity to defend against the action. 17.4 Notices. Unless specifically provided otherwise in the Governing Documents or the Act, all notices required to be given by or to the Association, the Board, the Association officers, or the Owners or Tenants shall be in writing and shall be effective upon hand delivery, or mailing if properly addressed with postage prepaid and deposited in the United States mail; except that registrations pursuant to the Bylaws shall be effective upon 32 receipt by the Association. 17.5 Conflicts Amon� Documents. In the event of any conflict among the provisions of the Act, the Declaration, the Bylaws and any Rules or Regulations, the Act shall control unless it permits one or more of the Governing Documents to control. As among the Declaration, the Bylaws and any Rules and Regulations, the Declaration shall control, and as between the Bylaws and any Rules and Regulations, the Bylaws shall control. 17.6 Duration of Covenants. The covenants, conditions, restrictions, easements, liens and charges contained in this Declaration shall be perpetual, subject only to termination as provided in this Declaration and the Act. IN WITNESS WHEREOF, the undersigned has executed this instrument the day and year first set forth in accordance with the requirements of the Act. Park Place Storage Condominiums Inc. C Its: President STATE OF MINNESOTA ) ) ss. COLTNTY OF Washington ) The foregoing instrument was acicnowledged before me this day of February, 2014, by Paul Jorgensen, the President of Park Place Storage Condominiums Inc., a Minnesota company, on behalf of said entity. Notary Public 33 THIS INSTRUMENT WAS DRAFTED BY: BERNICK LIFSON, P.A. 5500 Wayzata Boulevard, Suite 1200 Minneapolis, MN 55416-1270 (763)546-1200 34 COMMON INTEREST COMMUNITY NO. 1199, A Condominium PARK PLACE STORAGE CONDOMINIiJMS OF �I��' EXHIBIT A TO DECLARATION That part of Lot locic l, MINNESOTA RIVER VALLEY INI�STRIAL PARK PLAT 2, according to the recoi plat thereof, Scott County, Mii�es t desci•ibed as follows: Commencing at the mos s�erly corner of said�;e��l; thence South 52 degrees 33 minutes �., 15 seconds West, assumed bea��along tl� southeasterly line of said Lot 1, a distance of 465.36 feet to the point of beginning; C�Lce North 37 degrees 26 minutes 45 seconds West, a distance of 195.00 feet; t$ence Soiitlr�.2 degrees 33 ininutes 15 seconds West, a distance of 331.00 fee� South 37 degrees � nutes 45 seconds East, a distance of 195.00 feet to sai utheasterly line; thence North 52 de ees 33 minutes 15 seconds East, along said s_ easterly line a distance of 331.00 feet to the point of beginning. �r�ec Q �su�f �v� . I n�r'-� c� l 35 COMMON INTEREST COMMUNITY NO. 1199, A Condominium PARK PLACE STORAGE CONDOMINIIJMS OF COTTAGE GROVE EXHIBIT B TO DECLARATION Units: 1-23, inclusive, as shown on the plat hereof on file and of record; Voting rights are allocated equally among the Units. All parts of the property except the Units are Common Elements. Undivided inter•ests in the Common Elements and Common Expense obligations (subject to Sections 6.4 and 6.7) are allocated as follows: Unit Number Square Feet Percentage 1 1,200 0.0418 2 900 0.0314 3 1,450 0.0506 4 1,200 0.0418 5 1,450 0.0506 6 960 0.0335 7 1,450 0.0506 8 1,440 0.0502 9 1,450 0.0506 10 1,392 0.0485 11 1,380 0.0481 12 920 0.0321 13 1,008 0.0351 14 1,450 0.0506 15 960 0.0335 16 1,450 0.0506 17 1,440 0.0502 18 1,450 0.0506 19 1,200 o.o41s 20 1,450 0.0506 21 900 0.0314 22 1,200 0.0418 23 984 0.0343 36 ��y_ ►� � � COMMON INTEREST COMMITNITY NO. , A Condominium PARK PLACE STORAGE CONDOMINIUMS OF COTTAGE GROVE EXHIBIT C TO DECLARATION DESCRIPTION OF ADDITIONAL REAL ESTATE That part of Lot l, Blocic 1, MINNESOTA RIVER VALLEY INDUSTRIAL PARK PLAT 2, according to the recorded plat thereof, Scott County, Minnesota, EXCEPT that part described as follows: Commencing at the most easterly corner of said Lot 1; thence South 52 degrees 33 minutes 15 seconds West, assumed bearing along the southeasterly line of said Lot 1, a distance of 465.36 feet to the point of beginning; thence North 37 degrees 26 minutes 45 seconds West, a distance of 195.00 feet; thence South 52 degrees 33 minutes 15 seconds West, a distance of 331.00 feet; thence South 37 degrees 26 minutes 45 seconds East, a distance of 195.00 feet to said southeasterly line; thence North 52 degrees 33 minutes 15 seconds East, along said southeasterly line a distance of 331.00 feet to the point of beginning; and Lot 1, Blocic 1, and Outlot B, MINNESOTA RIVER VALLEY INDUSTRIAL PARK PLAT l, according to the recorded plat thereof, Scott County, Minnesota. 37