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2015-08-10 Amendment to Covenentsw1c, Transfer Entered this fay of Doc. No. A1294924 OFFICE OF THE COUNTY RECORDER WRIGHT COUNTY, MINNESOTA Certified Filed and/or Recorded on August 10, 2015 3:40 PM Fee: $46.00 Ck# 5652 Code Check Barb Gabrelcik, County Recorder AMENDMENT TO DECLARATION OF COVENANTS, RESTRICTIONS, RESERVATIONS AND EASEMENTS FOR PRAIRIE RUN COTTAGE HOMES This Amendment to the Declaration is made in the County of Wright, State of Minnesota, on the 9th day of April, 2015 by Prairie Run Cottage Homes Association, a Minnesota non-profit corporation ("Association"). WHEREAS, the Association and its members are the fee owners of the real property located in Wright County, Minnesota, legally described in Exhibit "A" attached hereto, and the Association and fee owners desire to subject said real property and all improvements thereon (collectively the "Property") to the terms hereof;,and, WHEREAS, Common Interest Community No. 86 Planned Community Declaration of Covenants, Conditions, Restrictions, Reservations and Easements for Prairie Run Cottage Homes was filed on the property dated May 20, 2010, recorded July 9, 2010 as document number Ali S1512; and WHEREAS, it is the intent of the Declarants and the Association that the Minnesota Common Interest Ownership Act, Minn. Stat. 515B et seq. shall no longer apply to the Property, this Declaration and the Association (as hereinafter defined), pursuant to the provisions set forth in Stat. 515131.1-102(d); THEREFORE, Declarants and the Association hereby remove the subject property from Common Interest Community No. 06 and hereby amend the Declaration of Covenants, Conditions, Restrictions, Reservations and Easements filed as document number A1151512, and provide for other amendments to said Declaration of Covenants, Conditions, Restrictions, Reservations and Easements by amending the following terms: 1. The third "Whereas" clause is hereby deleted in its entirety. 2. Section 1.1. is hereby deleted in its entirety. 3. The last sentence in Section 1 is hereby deleted in its entirety. 4. Section 2,9 is hereby amended to read as follows: "Easements are Appurtenant, All easements and similar rights burdening or benefiting a Lot or any other part of the Property shall be appurtenant thereto, and shall be permanent, subject only to termination in accordance with the terms of the easement. Any recorded easement benefiting or burdening the Property shall be construed in a manner consistent with, and not in conflict with, the easements created by this Declaration." S. Section 5.1 is hereby amended to read as follows: "General. The operation and administration of the Association and the Property shall be governed by the Governing Documents. The Association shall, subject to the rights of the Owners set forth in the Governing Documents, be responsible for the operation, management and control of the Property. The Association shall have all powers described in the Governing Documents and the statue under which it is incorporated. All power and authority of the Association shall be vested in the Board, unless action or approval by the Owners is specifically required by the Governing Documents. All references to the Association shall mean the Association acting through the Board unless specifically stated to the contrary." 6. Section 5.3 is hereby amended to read as follows: "Binding Effect of Actions. All agreements and determinations made by the Association in accordance with the powers and voting rights established by the Governing Documents shall be binding upon all Owners and occupants, and their lessees, guests, heirs, personal representatives, successors and assigns, and all secured parties," 7. Section 5.5 is hereby amended to read as follows: "Management. The Board may delegate to a manager or managing agent the management duties imposed upon the Association's officers and directors by the Governing Documents, provided, however, that such delegation shall not relieve the officers and directors of the ultimate responsibility for the performance of their duties as prescribe by the Governing Documents and by law," 8. Section 6.4,c. is hereby amended to read as follows: "Reasonable attorneys' fees and other costs incurred by the Association in connection with (i) the collection of assessments and (ii) the enforcement of the Governing Documents, or the Rules and Regulations, against an Owner or Occupant or their guests, may be assessed against the Owner's lots. " 9. Section 6.4,h. is hereby amended to read as follows: "If Common Expense liabilities are reallocated for any purpose authorized by the Governing Documents, Assessments and any installment thereof not yet due shall be recalculated in accordance with the reallocated Common Expense liabilities." 10. Section 6.6 is hereby amended to read as follows: "Liability of Owners far 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 Lot, or (b) the due date of the first assessment levied by the Board, subject to the alternative assessment program described in Section 6.7, provided, however, that the City of Albertville shall not be considered an Owner for purposes of Section 6.6 in the event the City owns one or more Lots. Such lots owned by the City of Albertville shall not accrue an assessment while under City ownership. The Owner at the time an assessment is payable with respect to the Lot shall be personally liable for the share of the Common Expenses assessed against such Lot. Such liability shall be joint and several where there are multiple Owners of the Lot. The liability is absolute and unconditional. No Owner is exempt from liability for payment of Assessments by right of set-off, by waiver of use or enjoyment of any part of the Property, by absence from or abandonment of the Lot, by the waiver of any other rights, or by reason of any claim against the Association or its officers, directors or agents, or for their failure to fulfill any duties under the Governing Documents. The Association may invoke the charges, sarictions and remedies set forth in Section 14, in addition to any remedies provided elsewhere in the Governing Documents, the Rules and Regulations, or by law, for the purpose of enforcing its rights hereunder. " 11. Section 6.7 is hereby amended to read as follows: "Declarant's Alternative Assessment Program. The following alternative assessment program is established. Notwithstanding anything to the contrary in this Section 6, if a Common Expense assessment has been levied, any unsold Lot owned by Declarant shall be assessed at the rate of twenty-five percent (25%) of the Assessments levied on other Lots of the same type until a certificate of occupancy has been issued with respect to such Lot by the municipality in which the Lot is located. This reduced Assessment shall apply to each Lot owned by Declarant at the time that the Lot is created, and shall terminate with respect to each such Lot upon the issuance of the certificate of occupancy, or comparable occupancy approval, for the Lot. The provisions of Section 6.7 shall not apply to any lots owned by the City of Albertville for which a certificate of occupancy has not been issued. This alternative assessment program will not affect the allocated share of replacement reserves required for Lots owned by Declarant; however, there are no assurances that the program will not affect the level of services for items set forth in the Association's budget." 11 The first unnumbered paragraph in Section 7 is amended to read as follows: "All Owners and Occupants, and all secured parties, by their acceptance or assertion of an interest in the Property, or by their occupancy of a Lot, covenant and agree that in addition to any other restrictions which may be imposed by the Governing Documents, the occupancy, use, operation, alienation and conveyance of the Property shall be subject to the following restrictions:" 13. Section 7.1 is amended to read as follows: "General. The Property shall be owned, conveyed, encumbered, leased, used and occupied subject to the Governing Documents, 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 Occupants and to any other Person acquiring or owning an interest in the Property, their heirs, personal representatives, successors and assigns." 14. Section 7.2 is amended to read as follows: "Subdivision Prohibited. No Lot nor any part of the Common Elements may be subdivided or partitioned without the prior written approval of all Owners and all secured parties holding first mortgages on the Lots." 1S. Section 7.5 is amended to read as follows: "Leasing. Leasing of Lots shall be allowed, subject to reasonable regulation by the Association, and subject to the following conditions: (i) that no Lot shall be leased for transient or hotel purposes, (ii) that no Lot may be subleased, (iii) that all leases shall be in writing, and (iv) that all leases shall provide that they are subordinate and subject to the provisions of the Governing Documents, the Rules and Regulations, and the Act, and that any failure of the lessee to comply with the terms of such documents shall be a default under the lease. The Association may impose such reasonable Rules and Regulations as may be necessary to implement procedures for the leasing of Lots, consistent with this Section." 16. Section 9.1 is hereby amended to read as follows: "Maintenance by Association. The Association shall provide for all maintenance, repair or replacement (collectively referred to as "maintenance") of the Common Elements, including but not limited to maintenance, repair, seal coating and replacement of, and snow removal from any private streets located thereon. The Association shall have easements as described in Section 13 to perform its obligations cinder this Section 9." 17, Section 10.1 is amended to read as follows: "Driveway Easements. The following lots (each a `Burdened Lot'), and the rights of the Owners and Occupants therein, shall be subject to a non-exclusive driveway easement for pedestrian and vehicular access to the garage upon the adjoining Lot in favor of the designated adjoining Lot (each a "Benefited Lot"), which easement shall be eight (8) feet in width (measured at right angles to the boundary line between the two Lots), and which shall extend from the front of the Burdened Lot to a point on said boundary line which is ten (10) feet beyond a line drawn from the rear of the Dwelling on the Burdened Lot to the rear of the Benefited Lot: Burdened Lot: Benefited Lot: Lot 1, Block 2, PRAIRIE RUN Lot 2, Block 2, PRAIRIE RUN Lot 2, Bloch 2, PRAIRIE RUN Lot 1, Block 2, PRAIRIE RUN For the above Lots within Block 2, PRAIRIE RUN, the front shall be deemed to be the b oundary line adjacent to Outlot A, PRAIRIE RUN." 18. Section 13.1 is amended to read as follows: "Easement for Encroachments. Lot 1, Block 2 and Lot 2, Block 2, and the rights of the Owners and Occupants therein, shall 4 be subject to an exclusive easement for encroachments in favor of the adjoining Lots for fireplaces, walls, roof overhangs, air conditioning systems, decks, balconies, patios, utility installations and other appurtenances (i) which are part of the original construction on the adjoining Lot or the Property or (ii) which are added pursuant to Section 8. If there is an encroachment by a Dwelling, or other building or improvement located in a Lot, upon another Lot or Dwelling as a result of the construction, reconstruction, repair, shifting, settlement or movement of any part of the Property, an appurtenant easement for the encroachment, for the use, enjoyment and habitation of any encroaching Dwelling, building or improvement, and for the maintenance thereof, shall exist; provided that with respect to improvements or alterations added pursuant to Section 8, no easement shall exist unless the same have 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." 19. Section 13.4 is deleted in its entirety. 20. Section 11.1 is amended to read as follows, "Required Coverage. The Association shall obtain and maintain, at a minimum, a master policy or policies of insurance in accordance with the insurance requirements set forth herein, issued by a reputable insurance company or companies authorized to do business in the State of Minnesota, as follows: a. Property insurance in broad form covering all risks of physical loss in an amount equal to one hundred percent (100%) of the insurable "replacement cost" of improvements (if any) within or upon the Common Elements, less deductibles, exclusive of land, footings, excavation and other items normally excluded from coverage. The policy or policies shall not cover any improvements located within or upon the Lots. The policy or policies shall cover personal property owned by the Association. The policy or policies shall also contain "Inflation Guard" and "Agreed Amount" endorsements, if reasonably available. Such policy or policies shall include such additional endorsements, coverages and limits with respect to the foregoing and other hazards as may be required from time to time by the regulations of the FHA or Federal National Mortgage Association ("FNMA") as a precondition to their insuring, purchasing or financing a mortgage on a Lot. The Board may also, on behalf of the Association, enter into binding written agreements with a mortgagee, insurer or servicer, including without limitation the FHA or FNMA, obligating the Association to keep certain specified coverages or endorsements in effect. b. Comprehensive public liability insurance covering the use, operation and maintenance of the Common Elements, with minimum limits of $1,000,000 per occurrence, against claims for death, bodily injury and property damage, and such other risks 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 Occupant because of negligent acts of the Association or other Owners or Occupants. The policy shall include such additional endorsements, coverages and limits with respect to such hazards as may be required by the regulations of the FHA or FNMA as a precondition to their insuring, purchasing or financing a mortgage on a Lot. c. Fidelity bond or insurance coverage against dishonest acts on the part of directors, officers, managers, trustees, employees or persons responsible for handling funds belonging to or administered by the Association if deemed to be advisable by the Board or required by the regulations of the FHA or FNMA as a precondition to the purchase or financing of a mortgage on a Lot. The fidelity bond or insurance shall name the Association as the named insured and shall, if required by the regulations of the FHA or FNMA as a precondition to their insuring, purchasing or financing of a mortgage on a Lot, be written in an amount equal to the greater of (i) the estimated maximum of Association funds, including reserves, in the custody of the Association or management agent at any given time while the bond is in force, or (ii) a sum equal to three months aggregate assessments on all Lots plus reserves. An appropriate endorsement to the policy to cover any persons who serve without compensation shall be added if the policy would not otherwise cover volunteers, or a waiver of defense based upon the exclusion of persons serving without compensation shall be added. d. Workers' Compensation insurance as required bylaw, e. Directors and officers' liability insurance with such reasonable limits and coverages as the Board shall determine from time to time. f. Such other insurance as the Board may determine from time to time to be in the best interests of this Association and the Owners. The Board may, from time to time, increase the amount of the minimum limits of insurance as set out in this Section 11." 21, Section 12.1 is amended to read as follows: "Reconstruction. Any repair or reconstruction shall be substantially in accordance with the plans and specifications of the Dwelling as initially constructed and subsequently improved upon, and shall first be approved by the Board as provided in Section 8. " 22. Section 12.3 is amended to read as follows: " Termination and Liquidation. The termination of the common interest community, and the distribution of any proceeds therefrom, shall be governed as set forth herein. Any distribution of funds shall be based upon the value of the Lots as determined by their relative value for interest may appear. Termination may not occur without the written approval of the City Council of the City of Albertville." 2 23. Section 14 is amended to read as follows: "COMPLIANCE AND REMEDIES" Each Owner and Occupant, and any other Person owning or acquiring any interest in the Property, shall be governed by and comply with the provisions of the Governing Documents, the Rules and Regulations, the decisions of the Association, and such amendments thereto as may be made from time to time. 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 and by law. 14A Entitlement to Relief. The Association may commence legal action to recover sums due, for damages, for injunctive relief or to foreclose a lien owned by it, or any combination thereof, or an action for any other relief authorized by the Governing Documents or available at law or in equity. Legal relief may be sought by the Association against any Owner, or by an Owner against the Association or another Owner, to enforce compliance with the Governing Documents, the Rules and Regulations, 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, or the Rules and Regulations, as a measure to enforce such Owner's position, or for any other reason. 14.2 Sanctions and Remedies. In addition to any other remedies or sanctions, expressed or implied, administrative or legal, the Association shall have the right, but not the obligation, to implement any one or more of the following actions against Owners and Occupants and/or their guests, who violate the provisions of the Governing Documents, or the Rules and Regulations, as a measure to enforce such Owner's position, or for any other reason. Commence legal action for damages or equitable relief in any court of competent jurisdiction. b. Impose late charges of up to fifteen percent (15%) of each late payment of an assessment or installment thereof. C. In the event of default of more than thirty (30) days in the payment of any assessment or installment thereof, all remaining installments of assessments assessed against the Lot owned by the defaulting Owner may be accelerated and shall then be payable in full if all delinquent assessments, together with all costs of collection and late charges, are not paid in fuII prior to the effective date of the acceleration. Reasonable advance written notice of the effective date of the acceleration shall be given to the defaulting Owner. Impose reasonable fines, penalties or charges for each violation of the Governing Documents or the Rules and Regulations of the Association. 7 e. Suspend the rights of any Owner or occupant and their guests to use any Common Element amenities; provided, that this limitation shall not apply to Limited Common Elements or deck, balcony or patio easements, appurtenant to the Lot, and those portions of the Common Elements providing utilities service and access to the Lot. Such suspensions shall be limited to periods of default by such Owners and Occupants in their obligations under the Governing Documents, and for up to thirty (30) days thereafter, for each violation. Restore any portions of the Common Elements or Limited Common Elements damaged or altered, or allowed to be damaged or altered, by any Owner or Occupant or their guests in violation of the Governing Documents, and to assess the cost of such restoration against the responsible Owners and their Lots. g. Enter any Lot or Limited Common Element in which, or as to which, a violation or breach of the Governing Documents exists which materially affects, or is likely to materially affect in the near future, the health or safety of the other Owners or Occupants, or their guests, or the safety or soundness of any Dwelling or other part of the Property or the property of the Owners or Occupants, and to summarily abate and remove, at the expense of the offending Owner or Occupant any structure, thing or condition in the Lot or Limited Common Elements which is causing the violation; provided, that any improvements which are a part of a Lot may be altered or demolished only pursuant to a court order or with the agreement of the Owner. h. Foreclose any lien arising under the provisions of the Governing Documents or under law, in the manner provided for the foreclosure of mortgages by action or under a power of sale in the state where the Property is located. 14.3. Rights to Hearing. In the case of imposition of any of the remedies authorized by Section 14.2Cd), (e) or (f) of this Section, the Board shall, upon written request of the offender, grant to the offender a fair and equitable hearing. The offender shall be given notice of the nature of the violation and the right to a hearing, and at least ten (10) days within which to request a hearing. The hearing shall be scheduled by the Board and held within thirty (30) days of receipt of the hearing request by the Board, and with at least ten (10) days prior written notice to the offender. If the offending Owner fails 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 rules 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 (10) days following the hearing, if not delivered to the offender at the hearing. 14.4. Lien for Charges, Penalties Etc. Any assessments, charges, fines, penalties or interest imposed under this Section shall be a lien against the Lot of the Owner or Occupant 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 gives written notice 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 right to pursue any others. 14.5. Costs of Proceeding and Attorney's Fees. With respect to any collection measures, or any measures or action, legal, administrative, or otherwise, which the Association takes to enforce the provisions of the Governing Documents or Rules and Regulations, whether or not finally determined by a court or arbitrator, the Association may assess the violator and his or her Lot with any expenses incurred in connection with such enforcement, including without limitation fines or charges previously imposed by the Association, reasonable attorney's fees and interest (at the highest rate allowed by law) on the delinquent amounts owed to the Association. 14.6. Liability for Owners' and Occupants' Acts. 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 Occupants or guests in the Owner's Lot, to the extent that such expense is not covered by the proceeds of insurance carried by the Association or such Owner or Occupant. However, any insurance deductible amount and/or increase in insurance rates, resulting from the Owner's acts or omissions may be assessed against the Owner responsible for the condition and against his or her Lot. 14.7. Enforcement by Owners. The provisions of this Section shall not limit or impair the independent rights of other Owners to enforce the provision of the Governing Documents, or the Rules and Regulations, as provided therein." 24. The first paragraph of Section 15 is amended to read as follows: "Declarant hereby reserves exclusive and unconditional authority to exercise the following special declarant rights for as long as it has an interest in any Lot, or for such shorter period as may be specifically indicated:" 25. Section 15.6 is hereby amended to read as follows: "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, until the earliest of: (i) voluntary surrender of control by Declarant, or (ii) an Association meeting which shall be held within sixty (60) days after conveyance to Owners other than Declarant of seventy-five percent (75%) of the total number of Lots authorized to be included in the Property, or (iii) the date five (5) years following the date of the first conveyance of a Lot to an Owner other than Declarant. " 26, Section 16.1.d. is hereby amended to read as follows: "Requirements. The alteration, relocation of boundaries or other modification of Lots or the Dwellings or other structures located therein (collectively referred to herein as "alteration" or "alterations") pursuant to this Section and Section S may be accomplished only in accordance with the following conditions: (1) No Lot may be altered if, thereafter, the Dwelling located therein, or any other Dwelling affected by the alteration, would no longer be habitable or practicably usable for its intended purpose or would violate any law, code or ordinance of any governmental authority having jurisdiction over the Property. (2) No alteration may be made which adversely affects the structural or functional integrity of any building system or the structural support or weathertight integrity of any portion of any building or other structure. (3) The prior written consent of the Association shall be required for any alteration, except alterations by Declarant. Where required, such consent shall be requested in writing by each Owner whose Lot is proposed to be altered, accompanied by such explanation, drawings and specifications relating to the proposed alterations as may be reasonably required by the Association or the first mortgagee of the Lot. The Association shall give such Owner(s) notice in an expeditious manner, granting, denying or qualifying its consent. (4) As a precondition to consenting to alterations, the Association may require, among other things, the following: (i) that all alterations will be done in a workmanlike manner and without impairing the structural, mechanical or weathertight integrity of the building; (ii) that the Common Elements and altered Lots will be repaired and/or restored in the future as required by the Association; (iii) that the construction of the alterations will not create dangerous conditions for any Owners or Occupants; (iv) that the Property, the first mortgagees and the Owners and occupants will be protected from liens and other liability arising from the alterations; and (v) that the alterations will be done in compliance with the applicable laws, regulations and ordinances of the governmental authorities having jurisdiction over the Property. (5) The Association may require that the Owners of the Lots to be altered pay all costs of processing and documentation for the request and the preparation and recording of any necessary amendment to the Governing Documents, including without limitation such costs as filing, architects and attorney's fees, incurred by the Association in connection with the alterations." 10 27. The first paragraph of Section 17 is amended to read as follows: "This Declaration may be amended or terminated only by the approval of:" 28. Section 18.2 is hereby amended to read as follows: "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." 29. Section 18.3 is hereby amended to read as follows: "Tender of Claims. In the event that any incident occurs which could reasonably give rise to a demand by the Association against Declarant for indemnification, the Association shall promptly tender the defense of the action to its insurance carrier, and give Declarant written notice of such tender, the specific nature of the action and an opportunity to defend against the action." 30. Section 18.5 is hereby amended to read as follows: "Conflicts Among Documents. In the event of any conflict among the provisions of the Declaration, the By-laws, or the Rules and Regulations approved by the Association, the Declaration shall control. As among the By -Laws and the Rules and Regulations, the By -Laws shall control." 31. Section 19 is hereby deleted in its entirety. 32. All other covenants, conditions, restrictions, reservations and easements set forth in document number A1151512 recorded at the Wright County Recorder's Office, Wright County, Minnesota, shall remain in full force and effect, and bind all owners, their heirs and assigns. These Amendments have been formally approved by the owners of more than 67% of the Lots that belong to the Association this 9th day of April, 2015. Secretary 11 STATE OF MINNESOTA JESSICA ME WOUR C UNYY OF -Dales-t� This lutrument was acknowledged before me an �J t Tale My Commission E*res: OAQ - Q Drafted by: I--- Mike Couri Couri & Ruppe P.O. Box 369 St. Michael, M 55376 763-497-1930 t� ]EXHIBIT ,A LEGAL DESCRIPTION OF PROPERTIES Lots 1, 2, 3, 4, 5, 6, 8, 9,10,11, 12, and 13, Block 2, Prairie Run according to the plat of record in the Wright County Recorder's Office, Wright County, Minnesota. 12