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2007-12-11 Development Agreement DEVELOPER'S AGREEMENT Field Plaza 2nd Addition THIS AGREEMENT, entered into this --'Ii;:{ day of ~M' 2007 by and between BLAINE RENTALS, LLC, a Limited Liability Company under the laws of the State of Minnesota, referred to herein as "Developer"; and the CITY OF ALBERTVILLE, County of Wright, State of Minnesota, hereinafter referred to as "City" all of which are collectively referred to herein as "the Parties"; WITNESSETH: WHEREAS, Developer is the fee owner and developer of a parcel or parcels of land described in Exhibit A, attached hereto and incorporated herein by reference, which parcel(s) of land are proposed to be platted for development, and, is intended to bear the name "Field Plaza 2nd Addition" and is graphically depicted on Exhibit B. The real property described in Exhibit A shall hereinafter be referred to as the "Subject Property" or "Said Plat"; and WHEREAS, the Developer does not have current plans to develop the subdivided property; and WHEREAS, the City requires that certain on- and off-site improvements be installed by the Developer within the Subject Property when development occurs, which improvements consist of boulevards, top soil and sod, grading control per lot, bituminous or concrete driveways, storm water ponding, sanitary sewers, storm sewers, drainage swales, street cleanup during project development, erosion control, and other site-related items; and WHEREAS, this Agreement is entered into for the purpose of setting forth and memorializing for the parties and subsequent owners, the understandings and agreements of the parties concerning the development of the Subject Property; 1 NOW, THEREFORE, IT IS HEREBY AND HEREIN MUTUALLY AGREED, in consideration of each party's promises and considerations herein set forth, as follows: 1. Construction of Municipal Improvements. A. The Developer, at its expense, shall construct those Municipal Improvements located on and off Said Plat, said improvements to include the reconstruction of 60th street to a 7 -ton roadway with a minimum pavement width of 28 feet, said improvement to run from the east end of the plat to the western edge of the proposed plat and be consistent with the design criteria set out in the "City Standard Detail Plates." All such improvements shall be constructed according to the standards adopted by the City, along with all items required by the City Engineer. Unless the City Engineer specifies a later date, said improvements shall be installed by October 31, 2007, with the wear course of bituminous pavement on City streets to be installed during the construction season following the installation of the base course. B. The Developer warrants to the City for a period of two years from the date the City accepts the finished Municipal Improvements that all such improvements have been constructed to City. standards and shall suffer no significant impairments, either to the structure or to the surface or other usable areas due to improper construction, said warranty to apply both to poor materials and faulty workmanship. C. Developer shall provide the City with lien waivers from all contractors and subcontractors engaged to construct said improvements on Said Plat. Should Developer fail to provide the City with all applicable lien waivers, the City reserves the right to draw upon Developer's surety and pay any contractors who performed work on any Municipal Improvements and whom Developer has failed to fully pay for the performance of said work. D. The City shall, at its option, have the City Engineer present on Said Plat for inspection purposes at all times (or such times as the City may deem necessary) during the construction and installation of said Municipal Improvements. Developer agrees to pay for all costs incurred by the City during said inspections. 2. Construction of On- and Off-Site Improvements. A. At the time of development of said plat, developer shall construct all on- and off-site improvements ("Improvements") including installation of boulevards, yard top soil, sod and seed in all lots, grading control per lot, bituminous or concrete driveways, storm water ponding, storm sewers, drainage swales, 2 berming, and like items as necessary, street cleanup during project development, and erosion control, all as required by City. All such grading, storm water ponding and storm sewers shall be installed prior to the issuance of a building permit on Said Plat. B. All said Improvements shall be installed at Developer's expense. If the City determines that it is necessary to have the City Engineer or other inspector on site for any portion of the installation of said Improvements, Developer shall reimburse the City for all inspection costs incurred by the City. C. Prior to the issuance of a certificate of occupancy for a building on any given lot in Said Plat, Developer shall have installed to the City's satisfaction all of said on- and off-site Improvements on the lot. 3. Use ofPropertv. Developer's use of Said Plat shall be consistent with the following restrictions, which shall be effective until further modified or amended by rezoning or other amendment of the planned unit development by the City Council: A. Said Plat is located within the B-3 zoning district and all provisions of the City's B-3 zoning district (as amended from time to time) apply to Said Plat, except as may be modified by this Agreement or future zoning amendment or zoning district change. B. Upon any construction on said plat, the Developer shall be required to submit site and building plans for review. All site and building plans for all commercial construction shall be subject to review by the planning commission and approval by the city council. A grading plan will also be required upon development of the site. C. Developer shall execute a cross access and cross parking easement between the two lots of said plat as shown in the attached Exhibit C. D. No person or entity may modify or obstruct the storm sewer improvements shown on the attached Exhibit D without the express written consent of the City Council. E. The sanitary sewer main located within the drainage and utility easement on Said Plat shall be maintained by the City. In the event it becomes necessary to excavate any portion of said sewer main for maintenance or replacement, the City shall restore such excavation to grade with a gravel or turf surface, but the City shall not be responsible for replacement of pavement or above-ground improvements within the easement area. 3 F. The City shall not be responsible for the maintenance of the storm sewer or pond located on Lot 1, Block 1 of Said Plat. The owners of Lot 1, Block 1 shall maintain such storm sewer. Developer shall record an easement document acceptable to the City Attorney which provides for drainage easements between the lots and provides for maintenance of the storm sewer and storm water pond by the owners of said Lots 1 and 2. G. The municipal water main located within the drainage and utility easement on Said Plat shall be maintained by the City. In the event it becomes necessary to excavate any portion of said water main for maintenance or replacement, the City shall restore such excavation to grade with a gravel or turf surface, but the City shall not be responsible for replacement of pavement or above-ground improvements within the easement area. 4. Access. The City shall have the right to enter upon all easement areas at any time for inspection and maintenance purposes. 5. Surety Requirements. A. Developer will provide the City with an irrevocable letter of credit (or other surety as approved by the City Attorney) as security that the obligations of the Developer under this contract shall be performed. Said letter of credit or surety shall be in the amount of$I,470.00 representing 10% of the estimated cost of the Municipal Improvements (which have already been installed). Said letter of credit or surety must meet the approval of the City attorney as to form and issuing bank. B. The City may draw on said letter of credit or surety to complete work not performed by Developer (including but not limited to on- and off-site Improvements, erosion control, and other such measures), to pay liens on property to be dedicated to the City, to reimburse itself for costs incurred in the drafting, execution, administration or enforcement of this Agreement, to repair or correct deficiencies or other problems which occur to the Municipal Improvements during the warranty period, or to otherwise fulfill the obligations of Developer under this agreement. C. In the event that any cash, irrevocable letter of credit, or other surety referred to herein is ever utilized or found to be deficient in amount to payor reimburse the City in total as required herein, the Developer agrees that upon being billed by the City, Developer will pay within thirty (30) days of the 4 mailing of said billing, the said deficient amount. If there should be an overage in the amount of utilized security, the City will, upon making said determination, refund to the Developer any monies which the City has in its possession which are in excess of the actual costs of the project as paid by the City. D. Developer hereby agrees to allow the City to specially assess Developer's property for any and all costs incurred by the City in enforcing any of the terms of this agreement should Developer's letter of credit or surety prove insufficient or should Developer fail to maintain said letter of credit or surety in the amount required above within 30 days of mailing of written request by the City. E. In the event a surety referred to herein is in the form of an irrevocable letter of credit, which by its terms may become null and void prior to the time at which all monetary or other obligations of the Developer are paid or satisfied, it is agreed that the Developer shall provide the City with a new letter of credit or other surety, acceptable to the City, at least forty-five (45) days prior to the expiration of the original letter of credit. If a new letter of credit is not received as required above, the City may without notice to Developer declare a default in the terms of this Agreement and thence draw in part or in total, at the City's discretion, upon the expiring letter of credit to avoid the loss of surety for the continued obligation. The form of any irrevocable letter of credit or other surety must be approved by the City Attorney prior to its issuance. Developer shall maintain said letter of credit in the amount required by the City at all times. F. In the event the Developer files bankruptcy or in the event a bankruptcy proceeding is filed against Developer by others and is not dismissed within 60 days, or in the event a court appoints a receiver for the Developer, the City may draw on said letter of credit or surety in its full amount to secure the City's surety position. The City shall then release the proceeds of said letter of credit or surety to the bankruptcy court or receiver in the same manner that it would be required to release the letter of credit under this Agreement. 6. Surety Release. A. The Developer may request of the City a reduction or release of any surety as follows: 1. When another acceptable letter of credit or surety is furnished to the City to replace a prior letter of credit or surety. 5 2. When all or a portion of the on- and off-site Improvements have been installed, the letter of credit or surety may be reduced by the dollar amount attributable to that portion of Municipal Improvements and Improvements so installed except that the City shall retain the letter of credit or surety in the amount of 10% of the estimated construction price of the Municipal Improvements during the first year of the warranty period and 5% of the estimated construction price of the Municipal Improvements during the second year of the warranty period. 3. As to all requests brought under this paragraph, the City Council shall have complete discretion whether to reduce or not to reduce said letter of credit or surety to the extent permitted by law. B. The costs incurred by the City in processing any reduction request shall be billed to the Developer and paid to the City within thirty (30) days of billing. 7. Abandonment of Proiect - Costs and Expenses. In the event Developer should abandon the proposed development of the said Plat, the City's costs and expenses related to attorney's fees, professional review, drafting of this Agreement, preparation of the feasibility report, plans and specifications, and any other expenses undertaken in reliance upon Developer's various assertions shall be paid by said Developer within thirty (30) days after receipt of a bill for such costs from the City. In addition, in the event the Developer abandons the project, in whole or in part, ceases substantial field work for more than nine (9) months, fails to provide sufficient ground-cover to prevent continuing soil erosion from the Development, or fails to leave the abandoned property in a condition which can be mowed using conventional lawn mowing equipment, Developer agrees to pay all costs the City may incur in taking whatever action is reasonably necessary to provide ground-cover and otherwise restore the Development to the point where undeveloped grounds are level and covered with permanent vegetation sufficient to prevent continuing soil erosion from the Development and to facilitate mowing of the Development. In the event that said costs are not paid, the City may withdraw funds from the above- mentioned surety for the purpose of paying the costs referred to in this paragraph. 8. Developer to Pay City's Costs and Expenses. It is understood and agreed that the Developer will reimburse the City for all reasonable administrative, legal, planning, engineering and other professional costs incurred in the creation, administration, enforcement or execution of this Agreement and the approval of Said Plat, as well as all reasonable engineering expenses incurred by the City in approving and inspecting 6 said Improvements and Municipal Improvements described above. Developer agrees to pay all such costs within 30 days of billing by the City. If Developer fails to pay said amounts, Developer agrees to allow the City to reimburse itself from said surety and/or assess the amount owed against any or all of the Development without objection. 9. Sanitary Sewer and Water Trunk Line Fees. Developer agrees that the City's Sanitary Sewer Trunk Line Fee Ordinance and Water Trunk Line Fee Ordinance currently requires the Developer to pay $1,825.00 per acre and $1,660.00 per acre respectively, upon development of said Plat. Amounts owed are calculated as follows: plat area of 2.6 acres in size less 1.90 acres of trunk fees paid with the plat of Field Plaza equals 0.7 acres of plat on which trunk charges apply. There are 1.90 acres in said Plat which received final plat approval. Therefore, the Sanitary Sewer and Water Trunk Line Fees for all property receiving final plat approval is $2,439.50 ($1,277.50 in sewer fees calculated as $1,825.00 x 0.7 acres and $1,162.00 in water fees calculated as $1,660.00 x 0.7 acres). 10. Erosion and Siltation Control. Before ~y grading is started on any site, all erosion control measures as agreed to by the City on an approved Grading, Drainage and Erosion Control Plan shall be strictly complied with, and as required by City ordinance. Developer shall also install all erosion control measures deemed necessary by the City Engineer should the erosion control plan prove inadequate in any respect. 11. Maintain Public Property Dama!!ed or Cluttered Durin!! Construction. Developer agrees to assume full fmandal responsibility for any damage which may occur to public property including but not limited to streets, street sub- base, base, bituminous surface, curb, utility system including but not limited to watermain, sanitary sewer or storm sewer when said damage occurs as a result of the activity which takes place during the development of the said plat. The Developer further agrees to pay all costs required to repair the streets, utility systems and other public property damaged or cluttered with debris when occurring as a direct or indirect result ofthe construction that takes place in the Development. Developer agrees to clean the streets on a daily basis if required by the City. Developer further agrees that any damage to public property occurring as a result of construction activity on the Development will be repaired immediately if deemed to be an emergency by the City. Developer further agrees that any damage to public property as a result of construction activity on the Development will be repaired within 14 days if not deemed to be an emergency by the City. 7 If Developer fails to so clean the streets or repair or maintain said public property, the City may immediately undertake making or causing it to be cleaned up, repaired or maintained. When the City undertakes such activity, the Developer shall reimburse the City for all of its expenses within thirty (30) days of its billing to the Developer. If the Developer fails to pay said bill within thirty (30) days, then the City may specially assess such costs against the lots within the Development and/or take necessary legal action to recover such costs and the Developer agrees that the City shall be entitled to attorney's fees incurred by the City as a result of such legal action. 12. Temporary Easement Rie:hts. Developer shall provide access to the Subject Property at all reasonable times to the City or its representatives for purposes of inspection or to accomplish any necessary work pursuant to this Agreement or any future agreement to develop said plat. 13. Miscellaneous. A. Developer agrees that all construction items required under this Agreement are items for which Developer is responsible for completing and all work shall be done at Developer's expense. B. If any portion, section, subsection, sentence, clause, paragraph or phrase of this Contract is for any reason held invalid by a Court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Contract. C. Ifbuilding permits are issued prior to the completion and acceptance of public improvements, the Developer assumes all liability and the costs resulting in delays in completion of public improvements and damage to public improvements caused by the Developer, its contractors, subcontractors, materialmen, employees, agents, or third parties during construction of improvements on Said Plat. D. The action or inaction of the City shall not constitute a waiver or amendment to the provisions of this Contract. To be binding, amendments or waivers shall be in writing, signed by the parties and approved by written resolution of the City Council. The City's failure to promptly take legal action to enforce this Contract shall not be a waiver or release. E. This Contract shall run with the land and shall be recorded against the title to the property. 8 F. The Developer represents to the City that Said Plat complies with all City, county, state and federal laws and regulations, including but not limited to: subdivision ordinances, zoning ordinances, and environmental regulations. If the City determines that Said Plat does not comply, the City may, at its option, refuse to allow construction or development work in the plat until the Developer so complies. Upon the City's demand, the Developer shall cease work until there is compliance. G. Prior to the execution of this Agreement and prior to the start of any construction on the Subject Property, Developer shall provide the City with evidence of good and marketable title to all of Subject Property. Evidence of good and marketable title shall consist of a Title Insurance Policy or Commitment from a national title insurance company, or an abstract of title updated by an abstract company registered under the laws of the State of Minnesota. H. Developer shall comply with all water, ponding and wetland related restrictions, if any, required by the Wright County Soil and Water Conservation District and/or the City and any applicable provisions of State or Federal law or regulations. I. Developer shall guarantee any required new plantings requir~d as part of any landscape plan shall survive for two full years from the time the planting has been completed or will be replaced at the expense of the Developer. 1. Developer shall obtain all required driveway, utility and other permits as required by the City Engineer, Wright County and/or the State of Minnesota. K. Developer shall provide to the City "As-Builts" of all sewers, water mains, and roads. 14. Dedications to the City A. Municipal Improvement Dedications. The Developer, upon presentation to the City of evidence of good and marketable title to Subject Property, and upon completion of all construction work and certification of completion by the City Engineer, shall make the following dedications to the City: 1. Developer shall dedicate drainage and utility easements to the City over, under and across all drainage ponds located in Said Plat as the same are identified on the attached Exhibit D. 9 2. Developer shall dedicate all utility improvements located within the utility easements on Said Plat to the City. B. Park Dedication. The Developer is required to pay cash contribution of $5,740.00 in satisfaction of the City's park and trail dedication requirements. This charge is calculated as follows: 2.6 acres in size less 1.90 acres of park dedication paid with the plat of Field Plaza equals 0.7 acres of park dedication x $8,200 per acre = $5,740.00. Developer shall pay this amount prior to the release of the final plat by the City. 15. Administrative Fee. A fee for City administration of this project shall be paid prior to the City approving any future development plans on said plat. Said fee shall be 3.25% of the estimated construction costs of the Municipal Improvements within the Plat. Seventy-five percent of this fee shall be paid upon issuance of the final Plat with the remaining twenty-five percent of the fee to be paid upon substantial completion of the Municipal Improvements. 16. Indemnitv. Developer shall hold the City and its officers, employees and agents harmless from claims made by Developer and Third Parties for damages sustained or costs incurred resulting from Said Plat approval and development. The Developer shall indemnify the City and its officers, employees and agents for all costs, damages or expenses which the City may payor incur in consequence of such claims, including attorney's fees. Third parties shall have no recourse against the City under this contract. 17. Assi2:nment of Contract. The obligations of the Developer under this Contract can be assigned by the Developer. However, the Developer shall not be released from its obligations under this contract without the express written consent of the City Council through Council resolution. 18. A2:reement Effect. This agreement shall be binding upon and extend to the representatives, heirs, successor and assigns of the parties hereto. 19. Violation of A2:reement. A. In the case of default by the Developer, its successors or assigns, of any of the covenants and agreements herein contained, the City shall give Developer thirty (30) days mailed notice thereof (via certified mail), and if such default is not cured within said thirty (30) day period, the City is hereby granted the right and the privilege to declare any deficiencies governed by this Agreement due and payable to the City in full. The thirty (30) day notice period shall be 10 deemed to run from the date of deposit in the United States Mail. Upon failure to cure by Developer, the City may thence immediately and without notice or consent complete some or all of the Developer's obligations under this Agreement, and bring legal action against the Developer to collect any sums due to the City pursuant to this Agreement, plus all costs and attorney's fees incurred in enforcing this agreement. The City may also specially assess all said costs incurred upon default against the properties in Said Plat pursuant to the terms of this agreement. B. Notwithstanding the 30-day notice period provided for in paragraph 19(A) above, in the event that a default by Developer will reasonably result in irreparable harm to the environment or to public property, or result in an imminent and serious public safety hazard, the City may immediately exercise all remedies available to it under this agreement in an effort to prevent, reduce or otherwise mitigate such irreparable harm or safety hazard, provided that the City makes good-faith, reasonable efforts to notify the Developer as soon as is practicable of the default, the projected irreparable harm or safety hazard, and the intended actions of the City to remedy said harm. C. This paragraph of this Agreement shall not apply to any acts or rights of the City under paragraph 5E, and no notice need be given to the Developer as a condition precedent to the City drawing upon the expiring irrevocable letter of credit as therein authorized. The City may elect to give notice to Developer of the City's intent to draw upon the surety without waiving the City's right to draw upon the surety at a future time without notice to the Developer. D. Breach of any of the terms of this Contract by the Developer shall be grounds for denial of building permits and/or occupancy permits until said breach is remedied. 20. Limited Approval. Approval of this Agreement by the City Council in no way constitutes approval of anything other than that which is explicitly specified in this Agreement. 21. Professional Fees. The Developer will pay all reasonable professional fees incurred by the City as a result of City efforts to enforce the terms of this Agreement. Said fees include attorney's fees, engineer's fees, planner's fees, and any other professional fees incurred by the City in attempting to enforce the terms of this Agreement. The Developer will also pay all reasonable attorney's fees and 11 professional fees incurred by the City in the event an action is brought upon a letter of credit or other surety furnished by the Developer as provided herein. 22. Plans Attached as Exhibits. All plans attached to this Agreement as Exhibits are incorporated into this Agreement by reference as they appear. Unless otherwise specified in this Agreement, Developer is bound by said plans and responsible for implementation of said plans as herein incorporated. 23. Inte2ration Clause. Modification bv Written A2reement Only. This Agreement represents the full and complete understanding of the parties and neither party is relying on any prior agreement or statement(s), whether oral or written, except that the Developer's Agreement between Developer and the City dated October 10,2005 and recorded as Document Number 983936 in the office of the Wright County Recorder shall remain binding upon the parties, except to the extent that this Agreement specifically conflicts with said Document Number 983936, in which case the terms of this Agreement shall control such conflict. Modification of this Agreement may occur only if in writing and signed by a duly authorized agent of both parties. ~4. Notification Information. Any notices to the parties herein shall be in writing, delivered by hand (to the City Clerk for the City) or registered mail addressed as follows to the following parties: City of Albertville c/o City Clerk P.O. Box 9 Albertville, MN 55301 Telephone: (763) 497-3384 Blaine Rentals, LLC PO Box 248 81. Cloud, MN 56302 12 CITY OF ALBERTVILLE, By 7~~~ Ron Klecker --... Its Mayor By ~~.~ ~Miller Its Clerk Blaine Rentals, LLC BY~ f! tJ~ Its: ~'t c- .{ i1-'\ e'l t<.. ( STATE OF MINNESOTA) ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this , Ci V) day of Oc.+o bex' , 2007, by Ron Klecker as Mayor of the City of Albertville, a Minnesota municipal corporation, on behalf of the city and pursuant to the authority of the City Council. jwl a. ~ .lli\\~ Notary Publi(f STATE OF MINNESOTA) ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this I q ~ day of 0<::.,,11) bex-- , 2007, by Bridget Miller, as Clerk of the City of Albertville, a Minnesota municipal corporation, on behalf of the city and pursuant to the authority of the City Council. ..1<<\ Q J.tIn. ~ Notary Pub. \ 13 STATE OF MINNESOTA) ) ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this ~ day of ~ ' 2007, by TkofT\UA O'~I'/U\.., as ~~-f lJ'ldu>.u41A of Blaine Rentals, LLC. --I. ~ ' ~t70~~AM Notary Public DRAFTED BY: Couri, MacArthur & Ruppe PLLP P.O. Box 369 705 Central Avenue East S1. Michael, MN 55376 (763) 497-1930 TiNA LOUISE LAN~JES 14 EXHIBIT A TO DEVELOPER'S AGREEMENT The legal description of the Plat to which this Developer's Agreement applies is as follows: Lots I and 2, Block I All said property is located in the plat of Field Plaza Second Addition, City of Albertville, County of Wright, Minnesota. 15 EXHIBIT B Final Plat EXHIBIT C Cross Easement Agreement EXHIBIT D Grading and Drainage Plan with sanitary sewer easements shown 16 ---,-- " EXHIBIT ~ j c CROSS EASEMENT AGREEMENT This declaration of Cross Easements Agreement, dated tfJc.-/. 'e.,.( ~S- ,2007, is made by Blaine Rentals, LLC ("Blaine") a Minnesota limited liability company. The following statements are a material part of this Cross Easement Agreement. RECITALS A. Blaine is the owner of Lots 1 and 2, Block One, Field Plaza Second Addition (collectively referred to as "Lots") located in the City of Albertville, Wright County, Minnesota with a legal description as follows: Lot 1 and Lot 2, Block One, Field Plaza Second Addition, according to the plot and survey on record in the office of the County Recorder, Wright County, Minnesota. B. Lots 1 and 2, Block One, Field Plaza Second Addition are adjoining parcels of real estate which are in the process of being developed and lor sold by Blaine. C. Blaine wishes to establish certain easement rights over, upon and across Lots I and 2, Block One, Field Plaza Second Addition, setting forth the rights and obligations of the owners of the lots with respect to these cross easements. THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of that are acknowledged, the following grants, agreements, covenants and restrictions are made: Blaine hereby declares that the following Lots shall be subject to perpetual, non-exclusive cross easements to and from Lots 1 and 2, Block One, Field Plaza Second Addition subject to the terms and conditions of this agreement. This agreement may be amended by a written amendment signed by the owners of the Lots and recorded in the office of the County Recorder for Wright County, Minnesota. 1. EASEMENT FOR PARKING AND INGRESS AND EGRESS Blaine grants and conveys to each Lot and its owner, their successors and assigns, a non-exclusive easement for vehicular and pedestrian ingress and egress to and from Lots 1 and 2, Block One, Field Plaza Second Addition over, upon and across the parking 1 areas and spaces, driveways and access ways, sidewalks and walkways, exists and entrances, and other common areas of Lots 1 and 2, Block One, Field Plaza Second Addition as these areas may, from time to time be constructed, altered or modified. However, at no time shall employees of establishments located on Lots I and 2, Block One, Field Plaza Second Addition park their vehicles, while they are working, on a lot not owned by the establishment that they work for without prior written consent from the property owner were they wish to park. Such consent can be withheld without cause. 2. EASEMENT FOR SURFACE DRAINAGE Blaine grants and conveys to each Lot, a non-exclusive easement, appurtenant to Lots I and 2, Block One, Field Plaza Second Addition for the purpose of surface draining any and all surface water runoff from Lots 1 and 2, Block One, Field Plaza Second Addition over, upon and across the parking areas and spaces, driveways and access ways, exits, entrances and holding ponds as they may exist from time to time upon the Lots. The owner of each Lot agrees that no change of grade elevation or excavation shall be made to the easement areas without the other Lot owners' consent, which consent shall not be unreasonably withheld. The owners of each Lot mutually promise to maintain the surface drainage areas located on their respective Lots in good condition and repair. 3. EASEMENT FOR UTILITIES Blaine grants and conveys to each Lot, a non-exclusive easement, appurtenant to Lots I and 2, Block One, Field Plaza Second Addition for the purpose of placing and maintaining utilities for the benefit of Lots 1 and 2, Block One, Field Plaza Second Addition as follows: Blaine grants and conveys to each Lot a Sanitary Sewer easement legally described in Exhibit A attached, for the purpose of placing and maintaining a sanitary sewer line. Blaine grants and conveys to each Lot a Storm Sewer easement legally described in Exhibit B attached, for the purpose of placing and maintaining a storm sewer line. The utility placement and maintenance shall not interfere with the enjoyment and use of the particular Lot over with such utility is placed. 4. MAINTENANCE The parties mutually covenant and agree to maintain in good condition and repair, or cause to be maintained and kept in repair, the parking, driveways, signs, sanitary sewer laterals and other common areas situated on their respective properties. The obligation of the parties to maintain, repair and keep in repair the parking, driveways, signs, common sanitary sewer, storm sewer and other common areas shall, without limiting the generality thereof, include the following: 2 .-- A. Maintaining the surfaces at such grades and levels that they may be used and enjoyed as contiguous and homogeneous common areas and maintaining the surfaces in a level, smooth and evenly-covered condition with the type of surfacing material originally installed or of similar quality, use and durability; and B. Removing all papers, debris, snow, ice, filth and refuse and thoroughly sweeping the areas to the extent reasonably necessary to keep these areas in a neat, clean and orderly condition; and C. Placing, keeping in repair, and replacing any necessary appropriate directional signs, stripping markers and lines; and operating, keeping in repair and replacing, when necessary, artificial lighting facilities as shall be reasonably required; and D. Maintaining any perimeter walls in good condition and state of repair; and E. Maintaining all landscaped areas, making such replacements of shrubs and other landscaping as is necessary, and keeping these areas at all times adequately weeded fertilized and watered. 5. BARRIERS Lots 1 and 2, Block One, Field Plaza Second Addition may erect curbs, fences and landscaping between their parcels in order to define Lots 1 and 2, Block One, Field Plaza Second Addition so long as said curbs, fences and landscaping do not detract from the mutual and common parking and access rights of the other Lots or prevent, hinder or interfere in any way with the drainage flow or with the free flow and passage of vehicular and pedestrian traffic and parking over, to, from and between Lots 1 and 2, Block One, Field Plaza Second Addition. 6. COMPLIANCE WITH LAWS AND REGULATIONS - INDEMNIFICATION Lots 1 and 2, Block One, Field Plaza Second Addition covenant and agree, with respect to their own properties, to comply with all laws, rules, regulations and requirements of all public authorities, and to indemnify, defend and hold each other harmless against all claims, demands, losses, damages, liabilities and expenses and all suits, actions and judgments (including, but not limited to, costs and reasonable attorney's fees) arising out of, or in any way related to, each Lot's failure to maintain their respective properties in a safe condition. Lots 1 and 2, Block One, Field Plaza Second Addition shall give prompt and timely notice of any claim made, or suit or action commenced, against the other party which would in any way result in indemnification under this Cross Easement Agreement. 7. MAINTENANCE EXPENSES Lots 1 and 2, Block One, Field Plaza Second Addition further covenant and agree 3 to pay the expense of maintaining and repairing the parking, ingress, egress and other common areas situated on their respective parcels, including the payment of all real estate taxes and assessments, subject only to the right to defer payment in a manner provided by law and/or in connection with a bonafide contest of such taxes or assessments, so long as the rights of the other party shall not be jeopardized by the deferring of payment. Lots 1 and 2, Block One, Field Plaza Second Addition further covenant and agree to mutually pay each one half of the expense of maintaining and repairing the common sanitary laterals, water mains, water hydrants and storm sewer laterals. The parties agree that if upon maintaining or repairing the lines or equipment, it is found one of the party was responsible for the damage or clogging of the line or equipment because of the type of its discharge into the line, or any other reason, the party responsible for the damage or clogging shall then pay 100% of the costs for such repair or maintenance. Lots 1 and 2, Block One, Field Plaza Second Addition covenant and agree to each pay one-half of the cost to repair the water retainage pond located on Lot 1. However Lot 1 shall be responsible to pay all the costs of regular maintenance of the pond i.e., mowing grass, and picking up garbage. 8. DEFAULT If there is a failure by the parties to perform, fulfill or observe any agreement contained within this Cross Easement Agreement, to be performed, fulfilled or observed by it, continuing for thirty (30) days, or in situations involving potential danger to the health or safety of persons in, on or about or substantial deterioration of Lots 1 or 2, Block One, Field Plaza Second Addition or any portion or any part thereof, in each case after written notice, the other party may, at its election, cure such failure or breach on behalf of the defaulting party. Any amount which the party so electing shall expend for such purpose, or which shall otherwise be due by either party to the other, shall be paid to the party to whom due, on demand, without contest, upon delivery of its invoice, together with interest at the lower of (1) the rate of twelve percent (12%) per annum, or (2) the maximum rate permissible from time to time under applicable law, from the date of the expenditure or the date when it shall have become due to the date of payment in full. The provisions of this paragraph shall be in all respects subject and subordinate to the lien of any mortgages or deeds of trust at any time or from time to time on the land of the defaulting party and the rights of the holder or holders of any mortgages or deeds of trust. 9. COVENANTS RUNNING WITH LAND The rights contained within this Cross Easement and Purchase Agreement shall run with the land and inure to, and be for the benefit of, Blaine, Lots 1 and 2, Block One, Field Plaza Second Addition their successors and assigns, and the tenants, sub-tenants, licensees, concessionaires, mortgagees in possession, customers and business invitees of such parties. 10. CONSTRUCTION The rule of strict construction does not apply to this grant. This grant shall be 4 given a reasonable construction so that the intention of the parties to convey a commercially usable right of enjoyment to the parties is carried out. 11. COVENANTS OF TITLE AND QUIET ENJOYMENT Blaine warrants that it has good and indefeasible fee simple title to the easement premises; that it has the full right and lawful authority to grant these easements and that the Lots shall and may peaceably have, hold, and enjoy the easements. 12. NOTICE Blaine's address IS Blaine Rentals, LLC, 2511 County Road 74, St. Cloud, Minnesota 56301. Any party may provide written notice of a change of address. All notices shall be sent by certified mail, return receipt requested, to the addresses provided for in this paragraph and shall be deemed given when placed in the mail. To indicate their consent to this Cross Easement Agreement, Blaine, or its' authorized representatives or officers, have signed this document on the date first above written. BLAINE RENTALS, LLC: B;:d::-;: Op 1__ Its: Chief Manager STATE OF MINNESOTA COUNTY OF Stearns On this ~ day orl7?b,fDb.cV'"', 2007, before me a Notary Public within andfor said County, personally appeared Thomas O'Brien to me known, who being by me duly sworn, did say that he/she is the Chief Manager of BLAINE RENTALS, LLC., the limited liability company named in the foregoing Cross Easement and Purchase Agreement instrument, and that said instrument was signed on behalf of said company by authority of its Board of Governors and said Thomas O'Brien acknowledged said instrument to be the free act and deed of said company. SALLY ANN KLEIN NOTARY PU:JLlC. MINNESOTA My Commission ExpIresJan. 31.. This instrument drafted by; Thomas O'Brien, Chief Manager Box 284, St Cloud MN 56302 5 . f " . EXHIBIT "A" LEGAL DESCRIPTIONS: EASEMENT A (SANITARY SEWER): A easement for utility purposes over, under and across the following described property: That part of Lots 1 and 2, Block One, FIELD PLAZA SECOND ADDITION, according to the recorded plot and survey on record in the Office of the County Recorder, Wright County, Minnesota. The center line of said easement is described as follows: Commencing at the most southeasterly comer of said Lot 2; thence North 61 degrees 34 minutes 57 seconds West, recorded bearing, along the South Line of said Lot 2, a distance of 124.49 feet, to the point of beginning of a line hereinafter described as "Line A"; thence North 28 degrees 25 minutes 03 seconds East, along said "Line A", a distance of 15.44 feet to the beginning of the center line to be described; thence North 61 degrees 01 minutes 44 seconds West, a distance of 241.46 feet; thence North 38 degrees 21 minutes 26 seconds West, a distance of 24.45 feet, to a line hereinafter described as "Line B", and said center line there terminating. The side lines of said easement are to be prolonged or shortened to terminate at said. "Line A" and said "Line B". . "Line A" is described as commencing at the most southeasterly comer of Lot 2, Block One, FIELD PLAZA SECOND ADDITION, according to the recorded plot and survey on record in the Office of the County Recorder, Wright County, Minnesota; thence North 61 degrees 34 minutes 57 seconds West, recorded bearing, along the South Line of said Lot 2, a distance of 124.49 feet, to the beginning of said "Line A"; thence North 28 degrees 25 minutes 03 seconds East, a distance of 20.44 feet, and said Line A" there terminating. "Line B" is described as commencing at the most southeasterly comer of Lot 2, Block One, FIELD PLAZA SECOND ADDITION, according to the recorded plot and survey on record in the Office of the County Recorder, Wright County, Minnesota: thence North 61 degrees 34 minutes 57 seconds West, recorded bearing, along the South Line of said Lot Two, a distance of 388.40 feet, to the beginning of said "Line B"; thence North 28 degrees 25 minutes 03 seconds East, a distance of 32.86 feet, and said "Line B" there terminating. 6 " , ., ., .. ' EXHIBIT "B" LEGAL DESCRIPTIONS: EASEMENT B (STORM SEWER): A 10.00 foot easement for utility purposes over, under and across the following described property: That part of Lot 1, Block One, FIELD PLAZA SECOND ADDITION, according to the recorded plot and survey on record in the Office of the County Recorder, Wright County, Minnesota. The center line of said easement is described as follows: Commencing at the most southeasterly comer of Lot 2 Block One, FIELD PLAZA SECOND ADDITION, according to the recorded plot and survey on record in the Office of the County Recorder, Wright County, Minnesota; thence North 61 degrees 34 minutes 57 seconds West, recorded bearing, along the South Line of said Lot 2, a distance of 456.87 feet; thence North 28 degrees 25 minutes 03 seconds East, a distance of 10.00 feet to the beginning of the center line to be described; thence North 43 degrees 49 minutes 17 seconds West, a distance of 109.80 feet; thence North 69 degrees 06 minutes 01 seconds West, a distance of 8.05 feet, to a line hereinafter described as "Line C", and said center line there terminating. The side lines of said easement are to be prolonged or shortened to terminate at said "Line C" and at a line which lies 1 0.00 feet northeasterly of, as measured at a right angle to, parallel with and contiguous to, the South Line of said Lot 1. "Line C" is described as commencing at the most southeasterly comer of Lot 2, Block One, FIELD PLAZA SECOND ADDITION, according to the recorded plot and survey on record in the Office of the County Recorder, Wright County, Minnesota; thence North 61 degrees 34 minutes 57 seconds West, recorded bearing, along the South Line of said Lot 2, a distance of 559.81 feet, to the beginning of said "Line C'; thence North 15 degrees 39 minutes .37 seconds East, a distance of 48.54 feet, and said "Line C there terminating. 7 {Him ;i~~ii~ mH!I -"~o;nft&.Q. ~lia~~~~ ~:;~ [~[ inii~l ~ ~,~t~~ :;~H~ ;I~~ 3 ~~~ ~~;~ ;il~ i;~~ [~i! Hi~ ;:~~~ t;:g,g - '" (..o~ ~ ~~~i Q ''& a~~a- ~!~~ ~,~~~ i~n g a~~ ~~%. R~i[ ;~~~ ~il~ [ ~~~~ [ t:~ 8 ~ j~~i lX1 ~;:.g .!t -"0 ! HHHH r ~;iai~~~ ~ gHHit ~. 0 <).. Q::' CL Q. , il!ii!i1 f~:~:i~~ J~~~H~ I I I I I I I I , I , I Ss I / I , , / , , / '00 I I .. / r--- / I 5// W /;: / / ~ / / ./' \ / ;~~2'\ / / / iii / iI.\ , ~ / / }//~:i i I I ~ ,,/ / //;~,<;: g / I !+\::", 11 / ~/,r / I y;~ ~ 11/ l'/ -~ ~ / l~~' 1/ /1 / ;~/' \. //j z~~ /1 I / ;1 I' ~ ;1 / - t / I /// ~... I I .'< / / / ~ / ~. / ,,~'j t I~ ~ / / ~ ~y/ / /~" / I ~ I > If/;I /~. I' I . I ~ ~ / /~. l / ~ / /;/l ,/ / I ~ / / ;1 ~~~ ~/ / ro----- / I \ v.' " '~: t{/ ,=::-==~~:=L) / 5~ (; / .,~ ! i / 7 , k'/ ~ ~ ! I ! / I i~tl!ll' :f!! ! / ~ / "" ,;.. ~ ! ! I ~ "" " r~J ! / I /" "-.... '....... / ~ " "" " L2._:::/ ! I 0/ ~ ~~ "" :.> i I ~....... '" , ~ ~c,."", il .~ "'..' . '~...~ "~'~" ! ;' ';./,J~1-?;.. \.', i "'\'" ,\,1 ~ \'IS/ '~ \ v '^:,. ~"" \.1 \ ./\\~.~ ! c~_~ \ ~~ \\'~'~ ~\)' \ , \ \,,\ ~V ~ '\,,-:.;sr U~F GOVERNMENT LOT 7, .' WEST LINE Of GOVERNMENT ~ 8, I I / I / / > ~ ~ ~ I / / "V-- "1 ~ () U) ::tJ CD ill r- s: )> ~ ill I I I fIl 2: I I I ::tJ --\ fIl 2: s; CJ r- VJ :tJ :l> I r- I I r- ~ I I C) I --- I 2: I I I I G) I I I I I I I I I I I I I I I I I I I I I I .{~~ / I / / I I / / I / / I ::::; ~/ ....1 ::.l:' ....1 g , " ;f .0 I"J \ /1\ :{ "- "- "- "- "- I \ '- / \r, pi ~ ~ "'i ~ .. / / / / / / I i/ 4~~1 / fJ '" {II 11 / I 55 I / / I / 1- s~ 35, T12'N. R24W SECTION 36, T121N, R24W . . ---r -;ST -;E Of THE TO~TE -; HAMBURO \ I . . L.h.f.~~;:-' :::i;:T ,:\VF CROSS EASEMENT AGREEMENT This declaration of Cross Easements Agreement, dated tflc.-/. 'e.,( J..5" , 2007, is made by Blaine Rentals, LLC ("Blaine") a Minnesota limited liability company. The following statements are a material part of this Cross Easement Agreement. RECITALS A. Blaine is the owner of Lots 1 and 2, Block One, Field Plaza Second Addition (collectively referred to as "Lots") located in the City of Albertville, Wright County, Minnesota with a legal description as follows: Lot 1 and Lot 2, Block One, Field Plaza Second Addition, according to the plot and survey on record in the office of the County Recorder, Wright County, Minnesota. B. Lots 1 and 2, Block One, Field Plaza Second Addition are adjoining parcels of real estate which are in the process of being developed and lor sold by Blaine. C. Blaine wishes to establish certain easement rights over, upon and across Lots 1 and 2, Block One, Field Plaza Second Addition, setting forth the rights and obligations of the owners of the lots with respect to these cross easements. THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of that are acknowledged, the following grants, agreements, covenants and restrictions are made: Blaine hereby declares that the following Lots shall be subject to perpetual, non-exclusive cross easements to and from Lots 1 and 2, Block One, Field Plaza Second Addition subject to the terms and conditions of this agreement. This agreement may be amended by a written amendment signed by the owners of the Lots and recorded in the office of the County Recorder for Wright County, Minnesota. 1. EASEMENT FOR PARKING AND INGRESS AND EGRESS Blaine grants and conveys to each Lot and its owner, their successors and assigns, a non-exclusive easement for vehicular and pedestrian ingress and egress to and from Lots 1 and 2, Block One, Field Plaza Second Addition over, upon and across the parking 1 areas and spaces, driveways and access ways, sidewalks and walkways, exists and entrances, and other common areas of Lots 1 and 2, Block One, Field Plaza Second Addition as these areas may, from time to time be constructed, altered or modified. However, at no time shall employees of establishments located on Lots 1 and 2, Block One, Field Plaza Second Addition park their vehicles, while they are working, on a lot not owned by the establishment that they work for without prior written consent from the property owner were they wish to park. Such consent can be withheld without cause. 2. EASEMENT FOR SURFACE DRAINAGE Blaine grants and conveys to each Lot, a non-exclusive easement, appurtenant to Lots 1 and 2, Block One, Field Plaza Second Addition for the purpose of surface draining any and all surface water runoff from Lots 1 and 2, Block One, Field Plaza Second Addition over, upon and across the parking areas and spaces, driveways and access ways, exits, entrances and holding ponds as they may exist from time to time upon the Lots. The owner of each Lot agrees that no change of grade elevation or excavation shall be made to the easement areas without the other Lot owners' consent, which consent shall not be unreasonably withheld. The owners of each Lot mutually promise to maintain the surface drainage areas located on their respective Lots in good condition and repair. 3. EASEMENT FOR UTILITIES Blaine grants and conveys to each Lot, a non-exclusive easement, appurtenant to Lots 1 and 2, Block One, Field Plaza Second Addition for the purpose of placing and maintaining utilities for the benefit of Lots 1 and 2, Block One, Field Plaza Second Addition as follows: Blaine grants and conveys to each Lot a Sanitary Sewer easement legally described in Exhibit A attached, for the purpose of placing and maintaining a sanitary sewer line. Blaine grants and conveys to each Lot a Storm Sewer easement legally described in Exhibit B attached, for the purpose of placing and maintaining a storm sewer line. The utility placement and maintenance shall not interfere with the enjoyment and use of the particular Lot over with such utility is placed. 4. MAINTENANCE The parties mutually covenant and agree to maintain in good condition and repair, or cause to be maintained and kept in repair, the parking, driveways, signs, sanitary sewer laterals and other common areas situated on their respective properties. The obligation of the parties to maintain, repair and keep in repair the parking, driveways, signs, common sanitary sewer, storm sewer and other common areas shall, without limiting the generality thereof, include the following: 2 A. Maintaining the surfaces at such grades and levels that they may be used and enjoyed as contiguous and homogeneous common areas and maintaining the surfaces in a level, smooth and evenly-covered condition with the type of surfacing material originally installed or of similar quality, use and durability; and B. Removing all papers, debris, snow, ice, filth and refuse and thoroughly sweeping the areas to the extent reasonably necessary to keep these areas in a neat, clean and orderly condition; and C. Placing, keeping in repair, and replacing any necessary appropriate directional signs, stripping markers and lines; and operating, keeping in repair and replacing, when necessary, artificial lighting facilities as shall be reasonably required; and D. Maintaining any perimeter walls in good condition and state of repair; and E. Maintaining all landscaped areas, making such replacements of shrubs and other landscaping as is necessary, and keeping these areas at all times adequately weeded fertilized and watered. 5. BARRIERS Lots 1 and 2, Block One, Field Plaza Second Addition may erect curbs, fences and landscaping between their parcels in order to define Lots 1 and 2, Block One, Field Plaza Second Addition so long as said curbs, fences and landscaping do not detract from the mutual and common parking and access rights of the other Lots or prevent, hinder or interfere in any way with the drainage flow or with the free flow and passage of vehicular and pedestrian traffic and parking over, to, from and between Lots 1 and 2, Block One, Field Plaza Second Addition. 6. COMPLIANCE WITH LAWS AND REGULATIONS - INDEMNIFICATION Lots 1 and 2, Block One, Field Plaza Second Addition covenant and agree, with respect to their own properties, to comply with all laws, rules, regulations and requirements of all public authorities, and to indemnify, defend and hold each other harmless against all claims, demands, losses, damages, liabilities and expenses and all suits, actions and judgments (including, but not limited to, costs and reasonable attorney's fees) arising out of, or in any way related to, each Lot's failure to maintain their respective properties in a safe condition. Lots 1 and 2, Block One, Field Plaza Second Addition shall give prompt and timely notice of any claim made, or suit or action commenced, against the other party which would in any way result in indemnification under this Cross Easement Agreement. 7. MAINTENANCE EXPENSES Lots 1 and 2, Block One, Field Plaza Second Addition further covenant and agree 3 to pay the expense of maintaining and repairing the parking, ingress, egress and other common areas situated on their respective parcels, including the payment of all real estate taxes and assessments, subject only to the right to defer payment in a manner provided by law and/or in connection with a bonafide contest of such taxes or assessments, so long as the rights of the other party shall not be jeopardized by the deferring of payment. Lots 1 and 2, Block One, Field Plaza Second Addition further covenant and agree to mutually pay each one half of the expense of maintaining and repairing the common sanitary laterals, water mains, water hydrants and storm sewer laterals. The parties agree that if upon maintaining or repairing the lines or equipment, it is found one of the party was responsible for the damage or clogging of the line or equipment because of the type of its discharge into the line, or any other reason, the party responsible for the damage or clogging shall then pay 100% of the costs for such repair or maintenance. Lots 1 and 2, Block One, Field Plaza Second Addition covenant and agree to each pay one-half of the cost to repair the water retainage pond located on Lot 1. However Lot 1 shall be responsible to pay all the costs of regular maintenance of the pond i.e., mowing grass, and picking up garbage. 8. DEFAULT If there is a failure by the parties to perform, fulfill or observe any agreement contained within this Cross Easement Agreement, to be performed, fulfilled or observed by it, continuing for thirty (30) days, or in situations involving potential danger to the health or safety of persons in, on or about or substantial deterioration of Lots 1 or 2, Block One, Field Plaza Second Addition or any portion or any part thereof, in each case after written notice, the other party may, at its election, cure such failure or breach on behalf of the defaulting party. Any amount which the party so electing shall expend for such purpose, or which shall otherwise be due by either party to the other, shall be paid to the party to whom due, on demand, without contest, upon delivery of its invoice, together with interest at the lower of (1) the rate of twelve percent (12%) per annum, or (2) the maximum rate permissible from time to time under applicable law, from the date of the expenditure or the date when it shall have become due to the date of payment in full. The provisions of this paragraph shall be in all respects subject and subordinate to the lien of any mortgages or deeds of trust at any time or from time to time on the land of the defaulting party and the rights of the holder or holders of any mortgages or deeds of trust. 9. COVENANTS RUNNING WITH LAND The rights contained within this Cross Easement and Purchase Agreement shall run with the land and inure to, and be for the benefit of, Blaine, Lots 1 and 2, Block One, Field Plaza Second Addition their successors and assigns, and the tenants, sub-tenants, licensees, concessionaires, mortgagees in possession, customers and business invitees of such parties. 10. CONSTRUCTION The rule of strict construction does not apply to this grant. This grant shall be 4 given a reasonable construction so that the intention of the parties to convey a commercially usable right of enjoyment to the parties is carried out. 11. COVENANTS OF TITLE AND QUIET ENJOYMENT Blaine warrants that it has good and indefeasible fee simple title to the easement premises; that it has the full right and lawful authority to grant these easements and that the Lots shall and may peaceably have, hold, and enjoy the easements. 12. NOTICE Blaine's address IS Blaine Rentals, LLC, 2511 County Road 74, St. Cloud, Minnesota 56301. Any party may provide written notice of a change of address. All notices shall be sent by certified mail, return receipt requested, to the addresses provided for in this paragraph and shall be deemed given when placed in the mail. To indicate their consent to this Cross Easement Agreement, Blaine, or its' authorized representatives or officers, have signed this document on the date first above written. BLAINE RENTALS, LLC: ~I?o~'~ By Its: Chief Manager STATE OF MINNESOTA COUNTY OF Stearns On this ~ day orC!?1.+ob.(I/'", 2007, before me a Notary Public within and for said County, personally appeared Thomas O'Brien to me known, who being by me duly sworn, did say that he/she is the Chief Manager of BLAINE RENTALS, LLC., the limited liability company named in the foregoing Cross Easement and Purchase Agreement instrument, and that said instrument was signed on behalf of said company by authority of its Board of Governors and said Thomas O'Brien acknowledged said instrument to be the free act and deed of said company. SALLY ANN KLEIN NOTARY PU::JLIC. MINNESOTA My Commission ExpfresJan. 31,_ This instrument drafted by; Thomas O'Brien, Chief Manager Box 284, St Cloud MN 56302 5 " , EXHIBIT "A" LEGAL DESCRIPTIONS: EASEMENT A (SANITARY SEWER): A easement for utility purposes over, under and across the following described property: That part of Lots 1 and 2, Block One, FIELD PLAZA SECOND ADDITION, according to the recorded plot and survey on record in the Office of the County Recorder, Wright County, Minnesota. The center line of said easement is described as follows: Commencing at the most southeasterly comer of said Lot 2; thence North 61 degrees 34 minutes 57 seconds West, recorded bearing, along the South Line of said Lot 2, a distance of 124.49 feet, to the point of beginning of a line hereinafter described as "Line A"; thence North 28 degrees 25 minutes 03 seconds East, along said "Line A", a distance of 15.44 feet to the beginning of the center line to be described; thence North 61 degrees 01 minutes 44 seconds West, a distance of 241.46 feet; thence North 38 degrees 21 minutes 26 seconds West, a distance of 24.45 feet, to a line hereinafter described as "Line B", and said center line there terminating. The side lines of said easement are to be prolonged or shortened to terminate at said "Line A" and said "Line B". . "Line A" is described as commencing at the most southeasterly comer of Lot 2, Block One, FIELD PLAZA SECOND ADDITION, according to the recorded plot and survey on record in the Office of the County Recorder, Wright County, Minnesota; thence North 61 degrees 34 minutes 57 seconds West, recorded bearing, along the South Line of said Lot 2, a distance of 124.49 feet, to the beginning of said "Line A"; thence North 28 degrees 25 minutes 03 seconds East, a distance of 20.44 feet, and said Line A" there terminating. "Line B" is described as commencing at the most southeasterly comer of Lot 2, Block One, FIELD PLAZA SECOND ADDITION, according to the recorded plot and survey on record in the Office of the County Recorder, Wright County, Minnesota: thence North 61 degrees 34 minutes 57 seconds West, recorded bearing, along the South Line of said Lot Two, a distance of 388.40 feet, to the beginning of said "Line B"; thence North 28 degrees 25 minutes 03 seconds East, a distance of 32.86 feet, and said "Line B" there terminating. 6 .I _, ". ' EXHIBIT "B" LEGAL DESCRIPTIONS: EASEMENT B (STORM SEWER): A 10.00 foot easement for utility purposes over, under and across the following described property: That part of Lot 1, Block One, FIELD PLAZA SECOND ADDITION, according to the recorded plot and survey on record in the Office of the County Recorder, Wright County, Minnesota. The center line of said easement is described as follows: Commencing at the most southeasterly comer of Lot 2 Block One, FIELD PLAZA SECOND ADDITION, according to the recorded plot and survey on record in the Office of the County Recorder, Wright County, Minnesota; thence North 61 degrees 34 minutes 57 seconds West, recorded bearing, along the South Line of said Lot 2, a distance of 456.87 feet; thence North 28 degrees 25 minutes 03 seconds East, a distance of 10.00 feet to the beginning of the center line to be described; thence North 43 degrees 49 minutes 17 seconds West, a distance of 109.80 feet; thence North 69 degrees 06 minutes 01 seconds West, a distance of 8.05 feet, to a line hereinafter described as "Line C", and said center line there terminating. The side lines of said easement are to be prolonged or shortened to terminate at said "Line C" and at a line which lies 1 0.00 feet northeasterly of, as measured at a right angle to, parallel with and contiguous to, the South Line of said Lot 1. "Line C" is described as commencing at the most southeasterly comer of Lot 2, Block One, FIELD PLAZA SECOND ADDITION, according to the recorded plot and survey on record in the Office of the County Recorder, Wright County, Minnesota; thence North 61 degrees 34 minutes 57 seconds West, recorded bearing, along the South Line of said Lot 2, a distance of 559.81 feet, to the beginning of said "Line C'; thence North 15 degrees 39 minutes .37 seconds East, a distance of 48.54 feet, and said "Line C there terminating. 7 Tri-County Abstract and. Title Guaranty, Inc. representing Chicago Title Insurance Company Commitment Number: 87639C REV.1 SCHEDULE A 1. Commitment Date: March 30, 2007 at 08:00 AM 2. Policy (or Policies) to be issued: (a) Owner's Policy (AL TA Own. Policy (10/17/92) Proposed Insured: Amount (b) Loan Policy Proposed Insured: (AL TA Loan Policy (10/17/92) (c) Proposed Insured: 3. Fee Simple interest in the land described in this Commitment is owned, at the Commitment Date, by: Blaine Rentals, LLC, a Minnesota limited liability company 4. The land referred to in this Commitment is described as follows: State of Minnesota Wright County Lots One (1) and Two (2), Block One (1), FIELD PLAZA SECOND ADDITION, according to the plat and survey thereof on file and of record in the Office of the County Recorder in and for Wright County, Minnesota. TO BE PLATTED OUT OF: Lot One (1), Block One (1), FIELD PLAZA, according to the plat and survey thereof on file and of record in the Office of the County Recorder in and for Wright County, Minnesota. (Abstract Property) AL T A Commitment Schedule A (10/17/92) Valid Only if Schedule 8 is Attached (87639C.PFD/87639C/11 ) Chicago Title Insurance Company Commitment Number: 87639C REV.1 SCHEDULE B - SECTION I REQUIREMENTS The following requirements must be met: a. Documents satisfactory to us creating the interest in the land and/or the mortgage to be insured must be signed, delivered and recorded. b. You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements and exceptions. c. We require that standard form of affidavit, or affidavits, be furnished to us at closing. d. NOTE: The following is not part of Schedule S, and is shown for information only. This will not be included on the final policy. Please be advised that the Tax Reform Act of 1986 requires the following information be provided at closing: A. Tax Identification Number or Social Security Number; S. Full address after the closing. e. Matters between the effective date of the commitment and the date of recording (known as gap coverage) and mechanic's lien issues are not covered by any policy to be issued, unless closed by Tri-County Abstract & Title Guaranty, Inc. Please contact Tri-County Abstract & Title Guaranty, Inc. for further instructions to ensure proper coverage is given if Tri-County Abstract & Title Guaranty, Inc. is not the closing agent. f. In the event that there is to be a construction loan, please notify Tri-County Abstract & Title Guaranty, Inc., to ensure the proper requirements are met. g. NOTE: The following is not part of Schedule S, and is shown for information only. This will not be included on the final policy. The property is commonly known as: xxx Albertville MN 55301. h. This commitment is for platting purposes only and should only be used for obtaining plat approval from Wright County. i. Obtain and file of record a confinement of Declaration of Restrictions and Covenants for Site Specific Wetland Replacement dated 08/25/2005, filed of record 11/03/2005, as document number 984968, by and between State of Minnesota and Hunters Development, LLC, a Minnesota limited liability company. The above document was filed on the whole of Section 36, Township 121, Range 24, Wright County, Minnesota. j. Obtain original copies of the Easements for Sanitary Sewer and Storm Sewer and record with the County. k. Obtain and file of record the Plat of FIELD PLAZA SECOND ADDITION. Taxes due and payable in the year of recording must be paid in full prior to recording said plat. AL T A Commitment Schedule B - Section I (10/17/92) (87639C.PFD/87639C/11 ) Chicago Title Insurance Company Commitment Number: 87639C REV.1 SCHEDULE B - SECTION II EXCEPTIONS Any policy we issue will have the following exceptions unless they are taken care of to our satisfaction. a. If an owner's policy is to be issued, the mortgage encumbrance, if any, created as part of the purchase transaction. b. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this commitment. c. Rights or claims of parties in possession not shown by the public records. d. Encroachments, overlaps, boundary line disputes, and any other matters which would be disclosed by an accurate survey and inspection of the premises. e. Easements or claims of easements not shown by the public records. f. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. g. Taxes or special assessments which are not shown as existing liens by the public records. h. Any charges for municipal services (Le., water, sewer, correction of nuisance conditions, etc.) are the responsibility of the parties to this transaction. For information regarding the existence of any such bills, contact the appropriate municipal office. L General and special taxes and assessments as hereafter listed, if any (all amounts shown being exclusive of interest, penalties and costs): Real estate taxes payable in 2007 in the amount of $ 71,140.00, are unpaid. Parcel No.(s): 101.108.001010. Non-Homestead. j. Levied assessments as follows: Street/Uti I ity Street/Utility $50,574.37 with $21,241.24 certified to 2007. $50,574.37 with $21,241.24 certified to 2007. There are no pending assessments. k. Reservation of all minerals and mineral rights by the State of Minnesota. I. Public right of way as shown in Wright County Highway Right of Way Plat No. 30 and document numbers 643687 and 632226. m. Drainage and Utility easements as shown on the recorded plat of FIELD PLAZA AND FIELD PLAZA SECOND ADDITION. n. Any documents filed in connection with the Plat of FIELD PLAZA SECOND ADDITION. AL T A Commitment Schedule B - Section II (10/17/92) (87639C.PFD/87639C/11 ) SCHEDULE B - SECTION II EXCEPTIONS (Continued) Commitment Number: 87639C REV.1 o. Terms and conditions of Minnesota Wetland Conservation Act, Declaration of Restrictions and Covenants for Site Specific Wetland Replacement, dated 08/25/2005, filed of record 11/03/2005, as document number 984968. The above document was filed on the whole of Section 36, Township 121, Range 24, Wright County, Minnesota. p. Terms and conditions of Development Agreement, dated 10/10/2005, filed of record 10/27/2005, as document number 983936. q. Mortgage dated 06/17/2005, filed of record 06/28/2005, as document number 965205, executed by Blaine Rentals, LLC, in favor of BankVista, in the original principal amount of $1 ,386,500.00. There is a subordination agreement dated 09/30/2005, filed 10/27/2005 as document number 983937, in which the above mortgage is subordinated to that certain Developers Agreement recorded as document number 983936. r. Mortgage dated 06/17/2005, filed of record 06/28/2005, as document number 965206, executed by Blaine Rentals, LLC, in favor of BankVista, in the original principal amount of $761 ,500.00. There is a subordination agreement dated 09/30/2005, filed 10/27/2005 as document number 983937, in which the above mortgage is subordinated to that certain Developers Agreement recorded as document number 983936. s. A UCC Fixture Financing Statement has been filed in the office of the County Recorder in and for Wright County, State of Minnesota, on the 28th day of June, 2005, as Document Number 965207, under the provisions of the U.C.C. Debtor name is Blaine Rentals, LLC, and the Secured Party is BankVista. AL T A Commitment Schedule 8 - Section II (10/17/92) (87639C.PFD/87639C/11 )