Loading...
HomeMy WebLinkAbout2006-06-26 DRAFT Condo DocumentsMPLS-Word 129293.2 (Above Space Reserved for Recording Data) COMMON INTEREST COMMUNITY Planned Commum „,. PINE GROVE GARDENS DECLARATION ingtState of Minfiesota, on this Development, LLC, a Minnesota Tovisions of Minnesota Statutes C ,.::/,, This Declaration is made in the County of day of ,20 ,byPineGr6vL limited liability company (the "Declarapr), pursuant to the Chapter 515B, known as the Minnesota'Syyp.pn Interest Oigke:sphip Act (the "Act"), for the purpose of creating Pine Grove Gardens a'*'1.5M0p.cl,.community takithe Act. WHEREAS, Declarant is the ownet::pf Oftai&. located in Washington County, Minnesota, lega4y-,.'.4091iibed in Exfft#'''A. attach0Vhereto, and Declarant desires to submit said real propel*nd aii (collectively the "Property") to the Act as a planned community, and ,,..., 4.. . '1.::,::LJO:>. ..::'';., , '-':: •■••■':::''' WHEREAS, Deci** owns „41i4,,...pr m0 acquire, and add to the Property, the real .,..., , . property legajly:003jked in Exhibit C afta6f1 (the "Additional Real Estate"), and ,WHEREAS, 1)66:14.pnt cfg04. to establish on the Property, and any Additional Real ,...„,, Estateadapd thereto, a p14 .-:'''or a pei*.nent residential community to be owned, occupied and -;, operated fiii: use, health,iifety and welfare of its resident owners and occupants, and for the purpose of preserving the value the quality and the character of the Property, and WHEREAS the Property (i) is not subject to an ordinance referred to in Section 515B.1-106 6t016'Act, governing conversions to common interest ownership; (ii) is not subject to a master asspeiation as defined in the Act; and (iii) does not include any shoreland, as defined in Minnesota Statutes Section 103F.205. THEREFORE, Declarant subjects the Property to this Declaration under the name "Pine Grove Gardens," initially consisting of the Units referred to in Section 2, declaring that this Declaration shall constitute covenants to run with the Property, and that the Property, and all Additional Real Estate added thereto, shall be owned, used, occupied and conveyed subject to the covenants, restrictions, easements, charges and liens set forth herein, all of which shall be binding upon all persons owning or acquiring any right, title or interest therein, and their heirs, personal representatives, successors and assigns. 1.5 MPLS-Word 129293.2 SECTION 1 DEFINITIONS The following words when used in the Governing Documen meanings (unless the context indicates otherwise): all have the following 4.'- 11 "Act" means the Minnesota Common :In Ownershi Act,l esota Statutes *.t. Chapter 515B, as amended now and .e futur6 ,`���,� . Sr r , i•_ 'l,�fr" I f • • r . ,,rrr, 11, 1.2 "Additional Real Estate" means the real i :-;. Y q t y legally described in Exhibit C Y attached hereto, including all improvements' be thereon now or in the future, and all easements and rights. ,appurtenant there�towhich property Declarant owns 1 rrrr or has the right to acquire and . ,:tp the common i terest community. .. - e 7'! •,. • '. r , . _ •r'.•r"r'a'c a .. r .. r - - -� !;� -+. r !i - e r r 1. , : � ' • a r Y. t 1, f � L r f' a r . r... r l' �. f ;, r - _. r e r ref t-a +� f -- o_aid" mean', the ; =Board o Di fectors of the Association as provided for in the Bylaws. , R l • I • i' ' } f i r ': faT lT /. ['r y ° Y Yfl� •l� }fir ;4� ••S"� "Bylaws" mans the }; Bylaws governing the operation of the Association, as '. amended fro � t to time. ^ - v. •.�•. -r. -y r-e 1.7 �`if" means ,„the City of Oak Park Heights, Minnesota. 1.8 "Com tron: lements" means all parts of the Property including private streets and other improvements thereto, except the Units, The Common Elements are legally described in Exhibit B attached hereto. 1.9 "Common Expenses" means all expenditures made or liabilities incurred by or on behalf of the Association and incident to its operation, including Assessments and items otherwise identified as Common Expenses in this Declaration or the Bylaws. 1.10 "Declarant Control Period" means the time period during which Declarant has the exclusive right to appoint the members of the Board, as described in Section 17.7. 1.11 "Dwelling" means a building or part thereof consisting of one or more floors, designed and intended for occupancy as a single family residence, and located within the boundaries of a Unit. The Dwelling includes any garage attached thereto or otherwise included within the boundaries of the Unit in which the Dwelling is located. 1.12 "Eligible Mortgagee" means an Person owning a ny4tYgage on any Unit, which g any r�.r,.Y, mortgage is first in priority upon foreclosure to all other mortgages that encumber such Unit, and which has requested the Asso'catons in writing, to notify it regarding any proposed action which re uires.`a' roval : specified percentage g g y p p � ; �p a speci '�� :.�. of Eligible Mortgagees. 1.13 "Govern Documents" means this Declaration, and the Artic of Incorporation Y � rr r'r �• '. te ] and Bylaws of the Association, ass ;a'ended from time to time, all of which shall Y �•r �: . � a Yi govern the use and operation of the Propey. r' r'1reY r ■ r�, � er. +444 r.� r 1.14 "Limited Common Elements" means a portio of the Common Elements allocated by this Declaration or by °'ope cation of Section' ■ 2- 102(d) or 0f) of the Act for 'iirrf r rr`r1 _Y + • 42Y ... , r , Y .. the exclusive use of one or m of but. fewer than al`l _o c.the= °Units, r e �. r �.r r r • r •, r+ r r r..rr rv%tty � , , :: Y: Y 1.15 "Member" 7 7 l Member means all Persons.'who a• +�e'ers of the Association by virtue of � . 1�Y r. Y ti;r. ,;.: YYe` „ yr r »r+r.`�:x -r r_ �,. q„... ' s: r�, ' being Ownes.,.,as'.a defined in thisDeclaratio. k�` k e words "Owner” and "Member" r r,r•+ , r. Y- f f Y: 1 _ Y r f, r, . t, n Y' i ' i r. 1 rrr S. may be used�kinterbhangeably in the Governing D .rl : ,, ry /rrYf yy�� r y r r ':. • r r'r "f r *. f ' Y 1.16 " Oceta: ar t " an ,means 'y Person or Persons, other than an Owner, in possession of ,., . or re s iding � in: Un t :,!;. r•r . •. 11r t 1 r . r R R C r•rr ,r r�•fr•,7 e. .. • r /�� i .y .. `�. a r • r �e �� r i �. . A r'T f. r T r. 4 : t nvr .f. . •, Ar 1 frY r . - r r 'r' » . ' 'ti• Y 1 rv'}rl.4.r , ' ^r 1,1 ;x; °:`` v ' "., n�.ean ;�; P ers on w o' owns a Unit, but excluding contract for deed s � • wlr • ... - * f r•f . r' � •.' r �Y - r vendormart s; " �� - �holders of reversionary or remainder interests in life estates ; rs: Y ''Y �tYY I Y r r 'IyT Y Y.. .. } Y � Y' }I 1 9 < < a; and other secured parties' :r within the meaning of the Act/ The term "Owner" includes, without limitation, contract for deed vendees and holders of a life estate. 1.18 .!•Person means a natural individual, corporation, limited liability company, Yryr.:v14�Y . pan trustee, or other legal entity capable of holding title to real property. "l`VYYrr, r r y1 . 1.19 "Plat" S L' e!ans the recorded plat depicting the Property pursuant to the requireiiients of Section 515B.2-110(d) of the Act, and satisfying the requirements of Minnesota Statutes Chapter 505, 508 or 508A, as applicable, including any amended or supplemental Plat recorded from time to time in accordance with the Act. 1.20 "Property" means all of the real property subjected to this Declaration, now or in the future, including the Dwellings and all other structures and improvements located thereon. The Property is legally described in Exhibit A attached hereto. MPLS -word 129293.2 3 1.21 "Rules and Regulations" means the Rules and Regulations of the Association as approved from time to time pursuant to Section 5.6. 1.22 "Unit" means any platted lot subject to this Declaration upon which a Dwelling is located or intended to be located, as described in Section 2.1 and shown on the Plat, including all improvements thereon, but excluding the Common Elements. Any terms used in the Governing Documents, and defined in the Act and not in this Section, shall have the meaning set forth in the Act. References to section numbers shall refer to sections Y S � , r: of this Declaration, unless otherwise indicated. References to the singular may refer to the plural, and conversely, depending on context. r . ; r DESCRIPTION OF UNITS, BOUNDARIES � 2.1 Units. There are twenty -six (26) ..U ts, subj eot, to the right of Alp,rant to add additional Units pursuant to Section 18. All Units 'Dare :stricted � to residential use � e Each Unit constitutes a separate parcel of real estate. additional Units may b6 created by the subdivision or conversion of Units pursuant to Section 5 5B.2 -112 of the Act. The Unit identifiers and locations of the Units are ;:Y �s shown on th P ,which is incorporated herein by r r r Ya Y. ` '1,Y, reference, The Unit identifier for a Unit is:!. ,_ YY :l .t�;and block numbu sand the subdivision name. ',, ' ;, r' 1.,• :, i , : i .. � w • 2,2 Unit Boundaries. The front,��ie r Trr ;. ar and d : rtundaties of each Unit shall be the .. r ._.rrYly vIT boundary lines of the platted . :T.s 1 lot upon which the IJ, dat welling' s.loed or intended to be located, as shown on the Plat. The Units1, have no u ', or lower bo =undaries. Subject to this Section 2 and Section 3, all spa es, walls; '.444 other improvements within the boundaries of a Unit are a part of the Unit. : ; x..x..Y ` rx kr, SECTION 2 ,k + }r 2.3 App urtenant s n'e is ` ite. T 1 is shall be subject to and benefited by the easements desc = e n�S :ect on , SECTION 3 ELATED' ' SEM ENTS :COMMON !; = MENTS, LIMITED COMMON ELEMENTS • AND OTHER PROPERTY 3,1 CothifiOn Elements. The Common Elements and their characteristics are as follows: 3.1.1 All of the Property not included within the Units constitutes Common Elements, The Common Elements include, but are not limited to, the private streets and other areas or items listed in this Section 3, and those parts of the Property described in Exhibit B attached hereto or designated as Common Elements in the Act. The Common Elements are owned by the Association for the benefit of the Owners and Occupants. 3.1.2 The Common Elements shall be subject to (i) easements as described in this Declaration and any other easements recorded against the Common Elements; (ii) the MPLS -ward 129293.2 4 rights of Owners and Occupants in Limited Common Elements allocated to their respective Units; and (iii) the right of the Association to establish reasonable Rules and Regulations governing the use of the Property. 3.2 Limited Common Elements. The Limited Common Elements are those parts of the Common Elements reserved for the exclusive use of the Owners and Occupants of the Units to which they are allocated. The rights to the use and enjoyment of the Limited Common Elements are automatically conveyed with the conveyance of such Units. The Limited Common Elements are described and allocated to the Units, as follows: 3.2, I Chutes, flues, ducts, pipes, wires, conduit, it other utility installations, bearing walls, bearing columns, or any other components r ,rixtures located wholly or partially outside the Unit boundaries, and serving y 'o ly a'ce 4in Unit or Units, are x ... I ll. s b s y r a Y. Y, allocated to the Unit or Units which they serve. Ay portion of 'such installation serving or affecting the function of the Common Elemen t 'is�Y'pi\art of the Co r`on Elements. R .v r. Y 5 .,, ..,y r 3.2.2 Improvements if any, such y':as t decks patios, porches, balco es, shutters, awnings, exterior doors and windows, win*„, b oxen; :�� chimneys, dri re`ways, walks, � -, x yr. doorsteps or stoops, constructed as part of the oil ha1Y'6onstruction to serve a single Unit or Units, and replacements and : modifications there ❑ ,authorized pursuant to Section 8, and located wholly or partially outside the Unit bourdaes, are allocated to the Unit or n� _ . Units which they serve. ';' SECTION 4 123 Heating, ventilating ir ca or,anditiarg. equipment serving only a certain Unit � ■ , S; ' r `rT� ; tin v r x s r Unit or Units, and located wholly or pat1 outsidet AJnit boundaries, are allocated to }. Y • \ r r _ the Unit or Units b such equi pmept. rY' •�=S r 1 r. i 3.3 Annexa`ory,of Oth � ! pro erty. In to the Additional Real Estate, other .; f.Rl �i i - . ''T' , ''- real property may be anne , ::to thYe m o mon interest community as Units or Common Elements, '. l., r „ :•� •�l Y�. r. . H, r.,.�1Y I.�a�Y .. !. i ■ f 7�f i S .� ■i�11��.�y F : � k r T =' I ■ . Y � ■ ■ with procedures and or any conlbinat an,tk ,ereof, rand;Y subjected:tos � s=.I)eclaration, in accordance wi ' T f ■ I .,Y`.,;t T . s�. �St��.4 a x =rR,, "_ ,1,F,•' requirements set foi t i MPLS-Word 129293.2 5 SOCIATIG T �NYEM BERSHIP: RIGHTS AND OBLIGATIONS Members pY n the association, and the allocation to each Unit of a portion of the votes in the Association att. d ` ' . po:i�tion of the Common Expenses of the Association, shall be governed by the following provisions: 4.1 Membership. Each Owner shall be a Member solely by reason of owning a Unit, and the membership shall be transferred with the conveyance of the Owner's interest in the Unit. An Owner's membership shall terminate when the Owner's ownership terminates. When more than one Person is an Owner of a Unit, all such Persons shall be Members, but multiple ownership of a Unit shall not increase the voting rights allocated to such Unit nor authorize the division of the voting rights. 4.2 Voting and Common Expenses. Each Unit is assigned one vote. Common Expense obligations (subject to Sections 6.4 and 6.7) are allocated equally among the Units. Said rights and obligations shall be automatically reallocated on the same basis among all Units as and if additional Units are added to the Property. 4.3 Appurtenant Rights and Obligations. The ownership of a Unit shall include the voting rights and Common Expense obligations described in Section 4.2. Said rights and obligations, and the title to the Units, shall not be separated or conveyed separately, and any conveyance, encumbrance, judicial sale or other transfer of any allocated interest in a Unit, separate from the title to the Unit shall be void. The allocation of th ;xnghts and obligations described in this Section shall not be changed, except in accQ;rdance with the Governing Documents and the Act. yr t� •` :.R V� ..f1: 4.4 Authority to Vote. The Owner, or some natural person designated to act as proxy on behalf of the Owner, and who need not be an owner YAfay'cast the vote allocated to such Unit at meetings of the Association. However, if there arerultiple Owners of a Unit only the Owner or other Person designated pursuant to the prow s o st : of the l3ylaws may , vote. The voting rights of Owners are more fully described in Sect o,n 3 ofthe •Bylaws{ yr +. SECTION 5 .t r'. •. + .Yt�. ' f r Y ' e AD INI .ATIO I ° yr;• ;r ;� -r . ♦ i,r l.. 1 a • r .. f'r Tc �. r R �. The administration and operation of �thc Ass'o lat o� . ,,the Property, including but not . ► , • ■ { -. i� Y + ; l�r. l rte.. J. • . ons : limited to the acts required Oft Association, *�shal. t13e governed-Yby the following provisions: • f`r f r.•r. rTx'r.[�rYraai '. +. •.±ir + ll r v } vyr t/. f . -, r 4 • T ; Y �. l�r..'.. : - . '•'e: >`r fir_ r r r .f+., 5.1 Qi4j The o , ezation. and administration of the Association and the Property shall be governed by overn Documents,' and Regulations and the Act. The . Yr - � Association shall, subject to :the rights, of the ownersy set forth in the Governing Documents and , rav' `=r.. y y `..+ y 'y r. r i. rvr.v _ .�..• r ,', y . T : .:,.�. the Act, be r s ansjble fog; ;fih ` optrati ? '} .�rnanagement and control of th e Property. The Association,:s : a1I�' have ,alt powers c escribed in the Governing Documents, the Act and the statute r under wh Lh the Assoc al- on is into +orated■ All power and authority of the Association shall be vested r> ::the Board, unless action or approval by the individual Owners is specifically required r s : x�r ■ Tr� rTf „v • ' rrr ■ by the Gove . mng Documentsy+ or ther- 'Act. All references to the Association shall mean the Associatio:`actmng through the YBoard, unless specifically stated to the contrary. ' • a T. ` e t xl.1 r v -sksr '+ r'e sty, T r •. i y rya ti 5.2 Qpeiationa] Purposes. The Association shall operate and manage the Property for the purposes of (i) ad�Y ; n 'istering and enforcing the covenants, restrictions, easements, charges and liens set forth in t i Governing Documents and the Rules and Regulations; (ii) maintaining, repairing and replacing those portions of the Property and other property for which it is responsible; and (iii) preserving the value and the architectural character of the Property. 5.3 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 or the Act shall be binding upon all Owners and Occupants, and their lessees, guests, heirs, personal representatives, successors and assigns, and all secured parties as defined in the Act. MPLS-Word 129293.2 6 5A Bylaws. The Association shall have Bylaws. The Bylaws shall govern the operation and administration of the Association, and shall be binding on all Owners and Occupants. 5.5 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 and the Act. However, such delegation shall not relieve the officers and directors of the ultimate responsibility for the performance of their duties as prescribed by the Governing Documents and by law. 5.6 Rules and Regulations. The Board shall have exclu�sve authority to approve and 4.' .4rz � 'v implement such reasonable Rules and Regulations as it deems }`e�cs } ,a.ry from time to time for the purpose of operating and administering the affairs of theY ssociat o r and regulating the use of the Property; provided, that the Rules and Re lations shall not b ;inconsistent with the o t e Prope y, p gu Governing Documents or the Act. The inclusion in 46' parts of the Governing Documents of authority approve a rove Rules and Regulations shall,.,rbe m. deeed to be in f wrt lrry.rryyr'r- 'ernnce, and not in sr . r r . � limitation, of the authority granted by this Section Y; {� •`e or am. Rules and eg l'ations shall be effective only after reasonable notice thereof has bee)* given 0he Owners. 5.7 Association_ Assets; Surplus Funds. All $ and real or personal property acquired by the Association shall be held . 'a d,,used for the bene r of the Owners for the purposes stated in the Governing Documents. Surp.~ .:fnds aft payment of or provision for Common Expenses and reserves shall be . cred`it d against futae Assessments or added to r L L r !. sYlrf�rtr y • reserves, as determined by the Board. r r4.,rR r y [ . r : r'1 , t i -• ; lit 1r 1 'V r} r 5.8 Resale Disc16s1te Certif sates■ Pursuant to Section 515B.4407 of the Act, in the event of a resale of r5 l.' . a' Y' rr`r`. r,r ,nit b y an; ;::�.'r�r� Owner other t :an Declarant, that Owner shall furnish to the + ri ; l'r purchaser a resale d solos` e certificate containing _ . e=` information required by Section 5158.4- l r , , r �,,.y r Y'v+'Yl .� o !,Y f rrt Y., S 5 of the Act, the Association shall, within 107(b) of the Act. Pursu�:ht,.t S � r r Y ,r. ri r ; r'rr�'r y , r;i e � r .�+ rr � r . • . . ten days after. a request by an.: ner ar' the :u er's authorized representative, furnish the resale � .�. �t r .r; .r s y ♦ r.r er t. y � r disclosux e ,Yee tif16a e Association may charge a reasonable fee for furnishing the resale v Y r rr .r . ■ r:1';:.' . "f't •s i Yr. •�Y i'yle rr °k r., disclose e certificate an k . y docurne is i r�lated thereto. `r }. 'r r ,., r.} SECTION 6 ASSESSMENTS MPLS -Word 129293.2 7 te r; fTi tY' { I 6.1 GenealF,.�.:Assessments shall be determined and assessed against the Units by the Board, in its discretioi M bject to the requirements and procedures set forth in this Section 6 and the requirements of '''the Bylaws. Assessments shall include annual Assessments under Section 6.2, and may include special Assessments under Section 6.3 and limited Assessments under Section 6.4. Annual and special Assessments shall be allocated among the Units in accordance with the allocation formula set forth in Section 4.2. Limited Assessments under Section 6.4 shall be allocated to Units as set forth in that Section. 6.2 Annual Assessments. Annual Assessments shall be established and levied by the Board, subject to the limitations set forth hereafter. Each annual Assessment shall cover all of the anticipated Common Expenses of the Association for that year which are to be shared by all Units in accordance with the allocation formula set forth in Section 4,2. Annual Assessments shall be payable in equal monthly or quarterly installments, as established by the Board. Annual Assessments shall provide, among other things, for an adequate reserve fund for the replacement of the Common Elements and those parts of the Units for which the Association is responsible, except to the extent that the replacement is funded by limited Assessments pursuant to Section 6.4. 6.3 Special Assessments. In addition to annual Assessments, and subject to the limitations set forth hereafter, the Board may levy in any Assessment year a special Assessment against all Units in accordance with the allocation formula set � things, forth �ji ��Section 4.2, and for the purpo purposes described in this Declaration. Among other thin s eci�Tl shall be used ses rrrr'r'4Yryy'>' for the purpose of defraying in whole or in part the cost of ny •='.' oreseen and unbudgeted Common Expense ■ 6.4 Limited Assessments. In addition, }=to annual Asse .ts and special Assessments the Board has the authority to levy and, ,allocate in .ited Assessr�.}rts one or 1 authority � � � . • � Y e ■ ■ ■ R r [. 4 i r [ T• "1 r,w i ' /.. e. r T a'.. more, but not all, Units in accordance with the fo1'a.:_g requirements and procedes 6.4.1 Any Common Expense associate`di ;��_with the maintenance, repair, or -�s.r[T�r�r.�r replacement of a Limited Common Element shall betiassessed exclusively against the Unit rTYf •i }� 1 �.'t'r:ir r : tiYT�rYY~T • or Units to which that Limited Co�r tr ;7 coon Element is allocated S equally, by actual cost per .ie Y :ee * _ r Unit or by such other reasonable ailo ,eato4:as may be approYe the Board. k T. ., f 1 T � • •e 6.4.2 Any Common Expen r e. bene - t g fe err_.Tthan all of the Units but not . ■ l ■ ',. e x r ' e rl� � .Sr ? against the Unit or falling within Section; 6 ; 1 may, at the'rrBo i d s discretion, be assessed agai Units benefited e ealf' ,= b ,Tactual cost •� , Unit or by ,. r `such other reasonable allocation as may be approved by the Boyd. MPLS-Word 129293.2 8 6.4.3 TheTcosts of=itsurance may b assessed equally or by actual cost per Unit, and th costs of corOriutiliti , es ' assessed equally, in to usage or by ' yp .rre; r. +' s•v•r' �. . + t.Y r ' ".,.f e.'G. "��, — t.� Ar!!'rr � Y proportion suck + "� � r '.6t reasonable aiiacation as may be approved by the Board. - *ry .,fT; rYy$:7i -Y ryr r Yyl f r i • 6.4.4 Reas`oable attorneys' fees and other professional fees and costs incurred he Association'*- :connection with (i0 the collection of Assessments, and (ii) the enforce ent of the (o reining Documents, the Act, or the Rules and Regulations against an Owner occupant •for their guests, may be assessed against the Owner's Unit. 6,4,e=charges, fines and interest may be assessed as provided in Section 14■ } Y 6.4.6 Assessments levied under Section 515B.3- 116(a) of the Act to pay a judgment against the Association may be levied only against the Units existing at the time the judgment was entered, in proportion to their Common Expense liabilities. 6.4.7 If any damage to the Common Elements or another Unit or any portion of the Owner's Unit that the Association is obligated to maintain hereunder is caused by the act or omission of an Owner or Occupant, or their guests, the Association may assess the costs of repairing the damage exclusively against the owner's Unit to the extent not covered by insurance. 6.4.8 If Common Expense liabilities are reallocated for any purpose authorized by the Act, Assessments and any installment thereof not yet due shall be recalculated in accordance with the reallocated Common Expense liabilities. Assessments levied under Sections 6.4.1 through 6.4.7 may, at the Board's discretion, be assessed as a part of or in addition to, other Assessments levied under Section 6.1 or 6.2. 6.5 Working Capital Fund. There shall be established a working capital fund to meet unforeseen expenditures or to purchase additional equipment or sere pes for the Association. The Board may include in each subsequent annual budget a reado `' ible amount of working capital, based upon the anticipated needs of the Association for tla year in question. There shall be contributed, on a one -time basis for each Unit sold by D,ee1444t, an amount equal to two months installments of the estimated annual Assessments for .*e Un t he contribution shall be paid by the purchasers of the Units at the time of clos.n _ o YfY•. :.y s' Units by p y p g .the �n�t�ai t sales of the Uni Declarant. The contributions to this fund are in addition 4 o \the regular nslallments of annual Assessments. The funds shall be deposited into a segre ated Association ac'co .t no later than p ,.�.� g r.c+rry.. no, later termination of the Declarant Control PerioVf `xt ds deposited in said accou ;t sl all not be , �'v r'x''r}rr =�. ■ f�rYV `y rr r •. r used to defray any of Declarant's expenses, reserve contrnbutions +or constructioh� costs, nor to make up any budget deficits during the Declarant Contr61 ribd. However, upon the closing of P Y g g P�x� � p g t riY �� f the initial sale of a Unit` Declarant ma k`,eimburse itself from fads collected from the purchaser at the closing for any prior contributiorsT ade by Declaranf'to =the working capital fund with respect to that Unit. Y + t Y�M1 6.6 Liability of Owners for Ass wer of the Unit at the time an Assessment is payable w t iespct to the U ; iall be pc onally liable for the share of the Common Expenses assessed - ga: st such Unit: liability shall be joint and several where there are multiple Q#49,Fs of the c =t , , `Unmt. Subjeto Section 6.7, the liability is absolute and 04'pyy e}. unconditional and no is ex from Iiabilit::fa' payment of Assessments by right of set- . of use or en r r Yo � � .Y '!'•� , 1t�� off, by waiver b .; ,` e tr= ya part of Pe „ Property, by absence from or abandonment � � , , �•rti�ti r ?r ti r'ti . S r r f . .1 • - f x_�ry:,, rr.f Yx -.. ' • ■ . • nn {, n ■s�vr+d,r_ r��l,n�+ �+Y'rir r#c,.4_: -r'.r .[r reason rw r F any claim ri against the Association .�r�fi o f the Unit, by::�the,Yti ? ' ve or its of c ers , direc'to s,.�or agents ,y;:or for their failure to fulfill any duties under the Governing Docuxnerts or the Act. 6.7 =; x= ;S.Declarant's for Assessments. Pursuant to Section 515B.3- 115(a) of the Act, Declarant'sr liability for a► "ssessments shall be subject to the following limitations. i 6 ■7 "1Lr.f,yY Notwithstanding anything to the contrary in the Governing Documents, if an Assessme assheen levied, Declarant may elect to have any unsold Unit owned by it assessed at the,rrate of twenty -five percent of the Assessments (exclusive of replacement reserves) levied on that Unit and other similarly situated Units until a certificate of occupancy or comparable City approval has been issued with respect to the Dwelling located within such Unit. 6.7.2 The provisions of Section 6.7.1 shall not affect the share of replacement reserves for Units owned by Declarant, which reserves must be funded by Declarant as required by Section 515B.3 -115 of the Act. However, there are no assurances that Declarant's reduced Assessment obligation will not affect the level of services for other MPLS -Word 129293.2 9 items set forth in the Association's budget. In the event that Declarant pays a reduced Assessment in accordance with Section 6.7.1, Declarant shall be obligated, within sixty days following the termination of the Declarant Control Period, to make up any operating deficit incurred by the Association during the Declarant Control Period. 6.73 Declarant's reduced Assessment obligation shall apply to each Unit owned by Declarant at the time that any Assessment is levied against the Unit, and shall terminate with respect to each such Unit upon the issuance of a certificate of occupancy or comparable City approval with respect to the Dwelling located,within such Unit. 6.8 Assessment Lien. The Association has a hen on a [ for any Assessment levied against that Unit from the time the Assessment becomes due ;a ; Assessment is payable in installments, the full amount of the Assessment is a lien from t me the first installment thereof becomes due. Fees, charges, late charges, fine.sVAkand nterest - 'eh :ages imposed by the Association pursuant to Section 515B.3-102(a)(10), (1 -1') R alid.:.(12) of the ` Apct =,,are hens, and are enforceable as Assessments, under this Section 6.�.::�= Recording of this Declaration constitutes record notice and perfection. of any lien under t is;T$' 'tion 6, '444 no further reeo d t on of any notice of or claim for the lien is required. The releas'k ,o f 4 ' � e�Y. the.;�l'i`e'n: shall not release the Owner from personal liability unless agreed to in writin.g by the . v l l,s i s 6.9 Foreclosure of Lien; Remedies A lien forl=,` may be foreclosed against a Unit under the laws of the State 6' Minn esota (i) by action; 01 (1i) by advertisement in a like manner as a mortgage containing apower`'afy ale. The Association, or its authorized representative, shall have the power to bid in} at the: f o . Uo'su e : t t sale and to acquire, hold, lease, rr rr r` rf ' rr' any other Person claiming an r',� ' q ■ ' �ThL owner; ;and mortgage and convey any,, ac u�red. •,� =� � {. , • ■ ■ I fib am ■ tY ■ ■ I interest in the Unit, by ,t acceptance or assertion of any interest in the Unit, grants to the Association a powe , ancl01 l authority to a.ecomplish the foreclosure. The Association shall, in addition to its`''`o:ther remedies, have the right to pursue any other remedy at law or in equity against the Owner who: =fail i" o ay ,; Assessment or charge against the Unit. 6.1.E T ° "` Lien' Print • Foreclosure. A lien for Assessments is prior to all other liens and encumbrances on a Oil ' ce p t `- ty }Jy` �`i =ens. encumbrances recorded before this Declaration; arYx•Tr, � f , ; #. S' ti., ..+ ( ii) ad' + [ st mortgage on' �t e U nit; an Y(in) liens for real estate taxes and other governmental assessmef&:Or charges sin t the 1 Jrnt■ Notwithstanding the foregoing, if (i) a first mortgage on a Unit is fore6,p (i.i) the ;rst mortgage was recorded on or after the date of recording of this Declaration; an' no own'e'r redeems during the Owner's period of redemption provided by Minnesota Statutes Ater 5 80, 581, or 582, then the holder of the sheriff's certificate of sale from the foreclosure ` h first mortgage shall take title to the Unit subject to a lien in favor of MPLS-Word 129293.2 10 the Association for V'unpaid Assessments or installments thereof levied pursuant to Sections 515B.3-115(a), (e)(1) to (3), (f} and (i) of the Act which became due, without acceleration, during the six months immediately preceding the first day following the end of the Owner's period of redemption. 6.11 Real Estate Taxes and Assessments. Real estate taxes, special assessments, and other charges and fees which may be levied against the Common Elements by governmental authorities, shall be allocated equally among and levied against the Units, and shall be a lien against each Unit in the same manner as a lien for real estate taxes and special assessments levied against the Unit alone. 6.12 Voluntar Conve ances • Statement of Assessments. In a voluntary conveyance of a Unit, the buyer shall not be personally liable for any unpaid Assessments and other charges made by the Association against the seller or the seller's Unit prior to the time of conveyance to the buyer, unless expressly assumed by the buyer. However, the lien of such Assessments shall remain against the Unit until released. Any seller or buyer shall be entitled to a statement, in recordable form, from the Association setting forth the amount of .the unpaid Assessments against the Unit, including all Assessments payable in the Assoc a iore s current fiscal year, i j which statement shall be binding on the Association, seller and buyer RESTRICTIONS ON USE OF :PROPERTY YY , All Owners and Occupants, and all securedarties, by their acceptance io:r s §ortion of an interest in the Property, or by their occupancy of a tillicovei4nt,and agree thatAn addition to any other restrictions which may be imposed by the't;or the Governing Documents, the occupancy, use, operation, alienation arid conveyance o t e., Property shall be subject to the : Y L I ' k f l_ following restrictions: ,4 • R Y i• : •.�y r. Y t -Y 1+Y t, �f�s };Y Yy 06bmbered, 7,1 General. The Property shall be 'own d .; conveyed, leased, used and occupied subject to the Governing Documents yy t uls . -and :Regulations and the Act, as r r ' 1� Y f J . .I.:Yr • - r 1} Y 1 XR4 }•'.� Ad r amended from time to time } �Y All covenants, i restrict `ores obligations set forth in the 7 r Governing Documents ,ate 4 ` ftiitherance of a; ;;plan for thYe• Property, and shall run with the Property and be a buiden and benefit to all Owners and Occupants and to any other Person acquiring or owning a & merest in ; he Property, the r. heirs, personal representatives, successors and assigns. S r ry _ ; � • , .. y I vy... .r r +.,. rr.' y r r -. • - f r } . }.}�: !`�:�,•sr'� ' - k .a X 7.2 ;.:r:I� s Certain ' ubdivisio ns and Conveyances Prohibited, Except as permitted by this Declaration, no Unit ii6 °'n pa ' , ; :the common Elements may be subdivided or partitioned witho�t 'x v ' h , p ' 'appi oval of �a l Owners and all secured parties holding first mortgages • - 'f *sf ttl�e � r�or written .- .� .Y•`Y, Yr!y on the UM MPLS-Word 129293.2 SECTION 7 7.3 `esidential Use.; The Units shall be used by Owners and Occupants and their guests exclusively ya r F i private,:' single family residential dwellings, and not for transient, hotel, as commercial, business4or non - residential purposes, except as provided in Section 7 ■4. Any lease of a Unit (excepf�r occupancy by guests with the consent of the Owner) for a period of less than ninety days,' or any occupancy which includes services customarily furnished to hotel guests, shall be presumed to be for transient purposes. The number of occupants per Unit may be restricted in accordance with any applicable municipal ordinances and standards acceptable under applicable federal and state law. 7.4 Business Use Restricted. No business, trade, occupation or profession of any kind, whether carried on for profit or otherwise, shall be conducted, maintained or permitted in any Unit or the Common Elements, except: 11 r r -wed, subject to reasonallzOulation by 7.5 Leasing. Leasing of Units shall b,� r� •yr t.. the Association and subject to the followin Condit ons f , no:: Jh t shall be leased transient or hotel purposes; (ii) no Unit may be subleased; (iii) a (Jit be leased in its entirety (not by l room) unless simultaneously occupied by the Owner; (iv) the � ease shall be in writing; (v) unless q t.� .ranr.+.� g g ��,,�,. otherwise required in connection with the 1 cin , uaranteef'Y r:� ,r curing of a Unit mortgage, no r T1 e y �Opts; Y lease shall be for a period less than thi'eeo 1 r or than 12 except for extenuating �'11 � f'r r rs , �� � it i situations approved by the Board; and (vi) the °` -' �e s .y; hall pro that t s subject to the Governing rs i l 4lf,ra'. t''r l�r" n Documents, the Rules and Regulatons a d' he t,,and that any failure of the lessee to comply with the terms of =such documents shall te a defatipinder the lease. The Association may impose such reaso .'a `='u es and Rcgul= tions as may be necessary to implement non- discriminatory proced es for the T ` iasing of Units, consistent with this Section and applicable law. 7,4.1 An Owner or Occupant may maintain a home occupation in such Owner or Occupant's Dwelling; provided, that such use (i) is incidental to the residential use; (ii) does not involve physical alteration of the Dwelling or Unit visible from the exterior; (iii) is in compliance with all governmental laws, ordinances and regulations; (iv) does not involve observable business activity such as signs, advertising displays, unusual numbers of deliveries, or unusual levels of pedestrian or vehicular traffic to and from the Unit; (v) does not involve employees; and (vi) does not otherwise involve activity which disturbs the quiet enjoyment of the Property by other Owners or Occupants. 7.4.2 The Association may maintain offices on the .1Pr for management and related purposes. *pies 7.4.3 Declarant may maintain offices, mode1s� salesr and other business . r .facilities on the Pro ert in connection with the elercise of its r cleelarant rights reserved herein. '1•, - :i •'. �'r. t - S+ �i v.l- 1 T f . t. r + r Y.•. ! � e. r . . . YY . . �! r • Y lfYY I ■ . 7 ■ 6 : r S:totage and Faking. Pcrsonal:,p operty may not be stored, displayed or otherwise • I. r i: � y l r. T .�� left outs�e the ri .tsY;c as` by the Board. The streets, walkways, driveways and portionga the Commciii::,. Thrnents* f9r access to and from the Units, may not be obstructed, or us8M, stora0'.,,i', any purpose other than access and authorized parking. Garages N '41024rking areas **le Pr4erty shall be used only for parking of vehicles owned or leased by OWii and OcctiOnts an.d their guests, and such other incidental uses as may be authorized by tiii0,eclaratip*br in writing by the Board. The use of garages and driveways on the Property, andfli*;;Upe vehicles and personal property permifted thereon, shall be subject to regulation by the N*61'ation, including without limitation the right of the Association to tow illegally parked vehictO or to remove unauthorized personal property. 7.7 Pets. Only dogs, cats, small birds and fish, and other animals generally recognized as domestic household pets (collectively referred to as "pets") may be kept on the Property, subject to the conditions set forth in this Section. 7.7.1 Rules and Regulations may be adopted by the Association to regulate pets on the Property, including, but not limited to the type and number of pets allowed to be kept in a Dwelling. MPLS -Word 129293.2 12 MPLS-Word 129293.2 7.7.2 Pets shall be kept solely as domestic household pets and/or as statutorily authorized "service animals" used by handicapped persons, and not for any other purpose. No animal of any kind shall be raised or bred, or kept for business or commercial purposes by any Person upon any part of the Property. 7.7.3 Pets shall not be allowed to make an unreasonable amount of noise, nor to become a nuisance or a threat to the safety of others. 73.4 Pets shall be housed only within the Dwellings,,, No structure, fence or enclosure for the care, housing or confinement of any pie shall be constructed or maintained on any part of the Property, except as approved, Section S• .1. x Y k�R7r r'ti yS�k_ 7.7.5 Pets shall be under control at all times :v hen outside the Dwelling. r'l i �r rrr� � ■4 •' } r r_ . 7.7.6 owners and occupants keeping '• pets within `" ei Dwellings are responsible for the pet's behavior and for coplying with municipal pet; =claws o rdinances and regulations. v � Y r ulations. An owner or Occupant j,s1:),We to the r, r . ': . r g . Association for of repair ti •, �..7e5 ;•s' of any damage to the Property, or the expenses, assootated with any personal injury, caused by an animal kept within that owner or 6604 a is Dwelling■ 7 7.8 Quiet_ Enjoyment. All Odes and occupants ' d their guests shall have a right of quiet enjoyment in their respective Unit = _ubje.et to the rights o' other owners and Occupants .• ". y. . and the owners and occupants of adjacent piopei tr , reasonable use4of their respective property and the normal and customary sights, sounds, and a ti it ;s,.genei,ated thereby given the existing and contemplated :future usc. property. ,0 i F ropertYVali be occupied and used in such a manner as will not cause.Viiiii•ce, nor undi4 restrict, i :terfere with or impede the use and quiet enjoyment of thOroperty '13;' id Occupants and their guests. 7.9 Prohibited =onduc: 1r o wner or Oupant shall 0i} cause or permit any physical ... .. r•iY y r YyY Y S '• fr: Y. Y /.• ^•'x r�_y. `r'�'�`�l':� changes to thehi;rDwel ling t :at;;c`ould` YJ eap :ald ,7e,y315r impair the weather -tight soundness or safety of the Dwe11 n g-'or ='ot •im rover .ents located on the Properly; (ii) interfere with any easement; or (iii),c au or permit` .r'. _:y physical changes to their Dwelling which could affect or damage the y Y Yr. � - � *en � ` r ers installed be the '', ellings within the ceilings, Boors or walls of the Unit. No improv dent shall be erected or maintained, no excavation, grading or reshaping shall be undertaken, ' a :ci no refuse, f ,l:l or other material shall be placed, on the Property, which may fr:. .er;. impede access r or through the Property, cause damage to the Property or interfere with the installation, use:; 0 maintenance of the improvements to the Property, or which may change or impede the flow of water through any natural, designed, improved or graded drainage area y r r ryr . ]yYyy f . 7.10 Compliance with Law. No use shall be made of the Property which would violate any then existing municipal codes or ordinances, or state or federal laws, nor shall any act or use be permitted which could cause waste to the Property, cause a material increase in insurance rates on the Property, or otherwise cause any unusual liability, health or safety risk, or expense, for the Association or any Owner or Occupant. 7.11 Alterations. Except for those made by Declarant in connection with the exercise of its declarant rights, no alterations (as defined in Section 8) shall be made, or caused or allowed to be made, in any part of the Common Elements, or in any part of the Unit or Dwelling which 13 `•lSti�,.: affects the Common Elements or another Unit or which is visible from the exterior of a Dwelling, without the prior written authorization of the Board, or a committee appointed by it, as provided in Section 8. 7.12 Time Shares Prohibited. The time share form of ownership, or any comparable form of lease, occupancy rights, ownership, or right - to-use plans, which has the effect of dividing the ownership or occupancy of a Unit into separate time periods, is prohibited. 7.13 Access to Units. In case of emergency, the Units are ,.subject to entry, without notice and at any time, by an officer or member of the Board, by the :0Qeiation's management agents or by any public safety personnel. Entry is also author* for Maintenance purposes under Sections 9 and 13, and for enforcement purposes under Section Y 1:4. 7.14 Developer's Agreement. The Property is * subject to tha Ayeloper's Agreement by and between the City and Oak Park Heights ; Develop'ment, L � .(the "Developer's Agreement ") which imposes certain conditions andy relating to the ;development, use Y• 4. and maintenance of the Property. `1 o the extent ;':4 ay ; provision in the GoveM ng.,Y:Docum.ents conflicts with any provision of the Developer's Agreement, te p of the Developer's Agreement shall control. MPLS -Word 129293.2 ARCHITE NDARD r 8.1 Restrictions oil Alterations. One tfie pui{p ses H of this Declaration is to ensure D that those parts of the vr'elirmy sand other parts,` :of the Units' which are visible from the exterior rx be kept architecturally `att ractive` d substantially uniform in appearance. Therefore, except as set forth in Section : r S p :5 Yy the following restrictions 'and,, requirements shall apply to alterations on s y - I r I f the Property: Y t? ■ Yti, �r cept ' :s expressly prrovided in this Section 8, no structure, building, addition, deck, :a tIo fence ; rall, enclosure, window, exterior door, antenna or other type Yp e f: , sending or receiving apparatus, sign, display, decoration, color change, shrubbery, .:: a;; p g p `Y� ,,_. p� g g any p n�ater�al to o ra hic�� lan�sca �n change, nor an other exterior improvements to or alteration of any Do ling or any other part of a Unit which affects the Common ■ �'�{ [� ..,.., ^[_, Y p Elements rr " or another; ;;Unit, or which is visible from the exterior of the Dwelling ( Co I1 ec ti v Iy 1 : e C erre d : t o as "alterations"), shall be commenced, erected or maintained, unless and tMi1th& . plans and specifications showing the nature, kind, shape, height, color, materialard locations of the alterations shall have been approved in writing by the Board or a' committee appointed by it. In addition, Declarant's written consent shall also be required for alterations until such time as Declarant no longer owns any Unit for initial sale and no longer has the right to add Additional Real Estate to the Property. 8.1 The Board may appoint, supervise and disestablish an architectural committee, and specifically delegate to it part or all of the functions which the Board exercises under this Section 8, in which case the references to the Board shall refer to the architectural committee where appropriate. The architectural committee shall be subject to the supervision of the Board. 14 �'r 8.1.3 The Board shall establish the criteria for approval of alterations, which shall include and require, at a minimum: 8.1.3.1 substantial uniformity of color, location, type and design in relation to existing Dwellings and other improvements to the Property; 8.13.2 comparable or better quality of materials as used in existing improvements on the Property; MPLS-Word 129293.2 8.1.3.4 adequate protection of the Propertt e Association, Owners and r Occupants from liability and hens arising out o the prproposed alterations; f i ?i i 7' Y 7 Y ! ' ' ' l r and 8.1.3.6 compliance with 6vern tal la ?v , codes and regulat ons ■ art rr�r r t'. ,�;: Yy t' � = r � 1 ` x [, I., �. � r r r � f. + . . Y,�Y Y The Board, or the appointed architectural mmittee if so authorized by the f r • Board, in its sole discret9n, may impose stadards for design, appearance or construction which are great : ::;ors more stringent t a ::n, standards prescribed by the { ! y t■ %Yf •''.. ■ Y rf '1' � 1r1,'r . �7r Governing Documents, or ,bu lid g-, , zoning, or al er:'governmental laws, codes, or regulations; provided that such � standards shall be consistent with the •, [ rY VY "'xyr �f'R yr rrrYrY" !ti .. •y architectural character and u ; o retie Prflp :' �i ty ras planned and developed by Declarant • Y :ho "; 3oard � or the a ,ri. ointed archit etural committee authorized by the Board 3 • Asole p c �" Y � +.Y " rsall be't judge ''a whether such criteria are satisfied, and its deter-'rfnat,an shall'.. i ie binding upor_ft, „owners, occupants and any other Person holding rr ir1tcrest in the��Unit. . r7r r Yl rY•rir 4 f. I ! • j k`v 1'. ;'1Yi s .. .� Yry 1 ,�: �Y Y ° .. Yf � . x r r r- ` - '1 - �! r r.!'Y - /�,. Y - [ . • I�l. i [.: f�� l S =I alteratiai 'which cause a minor encroachment upon the ipp rova Y I p •tr • ! y; r [,T nlmon Eleraens . or aothcr Unit shall create an appurtenant easement for such r •err, ■ �Y�" R =y”. ii4;itpli + + r ons are approved, twroachment mn r `fa ar of with respect to which the alterations � ... . '` r Y. y .' �: e; •' � IY• Y ■ • • notwithstanding any eYquirement in the Governing Documents or the Act. A file r � • l Y i'ri of r t :'e, r`Board resolutions approving or denying all requests for alterations shall be maintane ._[permanent as a part of the Association's records. :•� 1 [rrY 8.2 Revf '' :Prcicedures. The following procedures shall govern requests for . alterations under this Setion: �} r' 8.2.1 Detailed plans, specifications and related information regarding any proposed alteration, in form and content acceptable to the Board, shall be submitted to the Board and to Declarant (if applicable) at least sixty days prior to the projected commencement of construction. No alterations shall be commenced prior to approval. •�ti i 8.1.3.3 ease of maintenance and repair; 8,1.15 substantial preservation 15 ther Owners' r's`r if material; 8.2.2 The Board and Declarant (if applicable) shall give the Owner written notice of approval or disapproval. The Board shall have the right and authority to approve, conditionally approve or deny requests for alterations in its sole absolute discretion. If the Board and Declarant (if applicable) fail to approve or disapprove within sixty days after receipt of said plans and specifications and all other information requested by the Board and Declarant (if applicable), then approval shall be deemed to be denied. denied. 8.2.3 If no request for approval is submitted, approval shall be deemed to be 8.3 Remedies for Violations. The Association may undertake any measure, legal, equitable or administrative, to enforce compliance with this Sectioi" �anc1 shall be entitled to • recover from the owner causing or permitting the violation Ar attorneys' fees and other 'I fy .�aY- professional fees and costs of evaluation, investigation and �`er forcement incurred by the Association, whether or not a legal action is started. Such fees and eosyts shall be a hen against the Owner's Unit and a personal obligation of the own rY Y : In 'addition '�u:� . y reasonable notice, r po,n . . . _r ,.,,. .X 1 -. ,, ,;' fie t. i-� :, the Association shall have the right to enter the o� �'s Unit and to re store any part of the Dwelling or Unit to its prior condition if the alterat o ns were ,made in violationY,,of thus Section, :rrr 4 r. r .. and the cost of such restoration shall be a pet shg OtOle �;;: g �� ati owner and �: ' a ainst the Owner's 1 ner's Unit1 f ' r. Yrlr ` i 1 � Tyi • Y Y . ! 8.4 Owner Responsibility /Indemnity. The O Heel rwho causes an alteration to be Y Y. r B . Yrf rs r ` ,' r ' Y 4Y made, regardless of whether the alteration ,i',7approved by the '(Yoard, shall be responsible for the construction work and any claims, damn es ' ' k s roi liabilities arising - : ,rout of the alterations, and to ensure that the work approved by it s:tsfics`y- a;:alap �. ''r . .p �,. livable r�unlci al requirements. The Owner shall hold harmless, indemnify and dcifend Association and its officers, directors and committee members, fromax against any e'pex ses, claims �darnages, losses or other liabilities, . . . �. - • : r .'r' . + r. r r.� ! y T including without limitation. attorneys' fees and�r=:other professional fees and costs, arising out of • (i) a n alteration wh c `violates ai ' ` government al aws, codes, ordinances or regulations; (ii) the any ' adequacy of the specifications or, 'standards for eQn:stru.ction of the alterations; and (iii) the construction of the alterat6'ri: x •r`; 8.5 E e'm= tons. uirements set forth in this Section 8 (except Section 8.4) shall not+.pply to the folIong. -; ve 8.5.1 Cons ;t =u Lion undertaken or authorized by Declarant in connection with its com 1ef i:on of the Col mon Element improvements and the completion and sale of the Dwellinsvand Units. � Yf r Sri 8.5.2=' '; in types of antennae and satellite dishes may be installed, following application to ;tie Board, to the extent permitted by federal law and the Rules and ply Regulations consistent therewith, 8.5.3 Storm doors installed and maintained in accordance with the Rules and Regulations. MPLS-Word 129293.2 SECTION 9 MAINTENANCE AND REPAIR 16 9■ 1 Maintenance by Association. The Association shall provide for all maintenance, repair and replacement (collectively referred to as "maintenance ") as follows: 9.1.1 The Association shall provide for all maintenance of the Common Elements including but not limited to the private streets, driveways and other improvements thereon. 9.1.2 The Association shall provide for all maintenance of the storm water pond and any associated storm sewer components benefiting the Property as provided in the Storm water Pond Basement and Maintenance Agreement rcfezrerced in Section 13.5 of this Declaration. 9 ,1 ■ 3 For the purpose of preserving the arch ehpr�acter, quality, and high \zx } y standards for appearance of the Property, the Association sh14R,provide for exterior maintenance upon the Dwellings and/or Units, subJekt;to the follovvi rr, MPLS-Word 129293.2 913,1 The Association sha rarnaintairi repair and r eplade .joofs, gutters, downspouts, siding r exterior sidin and other bu ldxng surfac � Y es, drivewa s a d sidewalks, i `Y A.Y r Y ' r ' i V ' . r,l. ! In addition, the Association shall provide•�' shrub and tree maintenance on the yard areas of the Units, and for the waterin of lawns • 9.1.3.2 The Assoc at o J -shall maintain, 'r pair and replace garage doors and exterior entry doors and'frame' exce t hardwa=c and mechanical equipment � ,. x ,5 'y;t....t. ,rl and storm doors installed by'ar at t heT d;eeton,. af' owners pursuant to Section 8.5.3), exteriox- ;window frames ` r,. o 'ch`es atio; r decks and chimney exteriors. r : } : C� r l .r i Y r YY !. r jrti. r I• `' e, r ' y .3.3 1 he Association rry, upon thirty days' prior notice to the Owner, i ! also ..u:d'e� take anyYx,xterior maintenance for which an Owner is obligated under Section 9.3 'r d which ,the Owner fails to perform to standards established by the Assocjation, ry . vrt. Y � Z +• v and 'ass e�t ssY e', O - er's Unit for the cost thereof Such cost shall be ' .r . .' r. r. ■ �i Y . •r . r `. r • `a -pe so al: obligation of the Ownci and a hen against the owner's Unit. 9.1' A r The As ociation may, upon reasonable notice, elect to maintain, repair or replace mechanical, structural or other components within the Unit and ::assess the costs: ,against the Unit, if the failure or impairment of the component e u ld result io.if damage to the Common Elements or other Units, impair the function of any operating system, or create a health or safety hazard. 9.1.4 le Association's obligations for maintenance shall exclude any items not specifically required to be maintained by the Association under this Section 9.1, including but not limited to foundations and foundation walls, Dwelling walls, floors and ceilings, structural components, interior parts of the Dwellings, door and window hardware, mechanical, electrical, heating, air conditioning and plumbing systems, private fences, screens and glass, unless such items are expressly approved under Section 9.2. 9.1.5 The Association shall maintain, repair and replace the Property in accordance with the requirements of the applicable City zoning approvals and permits and other applicable regulations. 17 9.1.6 The costs associated with the Association's maintenance obligations under this Section 9.1 shall be funded by Assessments determined and levied in accordance with Section 6. 9.2 optional Maintenance by Association. In addition to the maintenance described in Section 9.1, the Association may, with the approval of the Board and a majority of the total Owners' votes in the Association, undertake to provide additional exterior maintenance to the Units or Dwellings. + L 1yY i L — , 9,3 Maintenance by owner. Except for the exterior :ain enance required to be provided by the Association under Section 9.1 or 9.2, all maintenari P Y e of the and Units r r . .. ,`` 6` :A;Subject to Section 9.1 and shall be the sole responsibility and expense of the Owners thereo :� -R f Section 9.2, the Limited Common Elements allocated to a Um* shbe all r .+ .r . zrtaintaxned by the Owner r�;�. K' of that Unit. The Association may require that any exterior. ; m'a ntenancex tos performed by the r Owner be accomplished pursuant to specific uniform cr to Ta'6stablished by ; Association. The Owners and occupants shall have a duty to promptly notify. the Association o f defects in or damage to those parts of the Property which the Asso` is'Obligated to mainta °' g p p Y �:... . . ,���;r s`x • r. 9.4 Dama e paused b owner. Notwithstanding my provision to the contrary in this Declaration, if, in the judgment of the Association, the need; ,o,F maintenance of any part of the Property is caused by the act or omission of :aii owner or ocCiip or his or her guests, or by a condition in a Unit which the owner or ',_ _; cc;urpant has causecreii4.0red to exist after notice from the Association, the Association mayscauseYx =L damage or :'condition to be repaired or 'Y�e r�Y;S'iY rrY r corrected (and enter the yard area of upon'; any Vfiit '�to do: and the cost thereof may be �r . . '`� Y ' - i b l c e. Such cost shall - for the damage. charged and assessed agalns of the �:l�ei` respans�. � g 1 f f Y r T. �< f. T�il - 1 . . ,:•! r . fih �.� � t■ In the case of party be a personal obligatioi,Yof the ' er and a lien:against the Owner's Unit. Y T i J. i.. �.h� ' r 1. l walls between Dwellings the Ow ers of the aff cted Dwellings shall be liable as provided in �� i r +i �` Section 10. MPLS -Word 129293.2 } 18 RTY WALLS 1 Ty : General Rule's: of Law to Apply. Each wall built as part of the original construction' ,Dwellings an'i;located or intended to be located on the boundary line between Units shall constitute a pa gall, the Units shall be subject to easements for any encroachments resulting from or r atty butableY to such walls pursuant to Section 13.4 hereof, and, to the extent not inconsistent with the' pro visions of this Section, the general rules of law regarding party walls and liability for properr`'damage due to negligent or willful acts or omissions shall apply thereto. r,. 10.2 Re.pair and Maintenance. The Owners of the Units which share a party wall shall be responsible for the maintenance, repair and replacement of the party wall in equal proportions; provided, (i) that any maintenance, repair or replacement necessary due to the acts or omissions of a certain Owner or Occupant sharing such party wall shall be paid for by such Owner, and (ii) that the Association may contract for and supervise the repair of damage caused by an Owner or Occupant and assess the Owners for the cost thereof to the extent not covered by insurance. Such cost shall be a personal obligation of the Owner and a lien against the Owner's Unit(s) • 10,3 Destruction by Fire or Other Casualty. If a party wall is destroyed or damaged by fire or other casualty, any Owner who has use of the party wall may, with the consent of the Association, restore it, and the other Owner shall promptly reimburse the Owner who restored the wall for his or her share of the cost of restoration thereof; provided, however, that the cost of restoration resulting from destruction or other casualty caused by the acts or omissions of an Owner shall be the financial responsibility of such Owner, and the Association may assess the responsible Owner for their share of the costs, without prejudice to the light of an Owner to ry', recover a larger contribution from the other owner. Insurance claims shall be made promptly following any casualty. • Y 5 ryxY 10.4 Weatherproofing. Notwithstanding any ,,: g-i6i .provision : =of this Section, any Owner who, by his or her negligent or willful act, party Y e exposed to the elements shall bear the whole cost of the repairs necessary for protection against= such elements, 10.5 Right to Contribution Runs With Land 17. he rig .t=,.of any Owner, for contribution S = ` Y Y r ! from any other Owner under this Section shall be appura•:t the Unit and shall pass to such Owner's assigns and successors in arbitration. MPLS-Word 129293.2 10.6 Arbitration, In the event o dis�,Jute arising oncernin a party wall, and if the Owners of the affected x� ��r- xrr: • k,=._ g rYi)�I1 +y• g p y .�trrr re rr�r � > Units do not resolve= 4 �th ryT � e rspu •; ry l '!�!� �fTT tc� a wri • tten y ry e ' Y' Y dagreement within thirty days of the event causing the T T r: r x . ir, a -Y R dispute, the matter rY:s hall eY: subt i teal :td :"' binding arbitration under the rules of the American Ar,ltr:aion Associations . oa under y'sueh y other rules as the parties may unanimously agree), •.�I,iY,�1yYy .�4 t T r 4,;the •yr. . ��tew.xen demand Association or any Owner whose Dwelling shares the party wall ."A, single r aibYtrator shall b`e; unless multiple arbitrators are agreed to b the arties. The l �. r •' Iry ' ! � o Iation s all, upon its re q uest, be made a party to the arbitration, but it ".. '.' y. - r �>. �s "•x" cannot be compelled to be a�.ar par '��c�ir..ty agr��s that the decision of the arbitrators shall be . ti r r y �•r ._ r r r,r,•r: r� 'r�r r: :. r'.. ry�r 1 ■ A i �y i.` rr�Rr r. T final and conc1 .sI e,,o f the quest I ons nvo ed ;,.;die fees of the arbitrators shall be shared equally . 'Yr:' Y ryYy +'y � i v. 'i y •'...� i by the parties, but ` eac p arty rsha , pay its own attorneys' fees or other costs incurred in the SECTION 11 INSURANCE 11.1 Requ ed, -= 6 erage. The Association shall obtain and maintain, at a minimum, a f r, r, r S master policy or polio , sY`rof insurance in accordance with the insurance requirements set forth in the Act and the additional requirements set forth herein, issued by a reputable insurance company or companies authorized to do business in the state of Minnesota, as follows: 11.1.1 Property insurance in broad form covering risks of physical loss in an amount equal to one hundred percent of the insurable "replacement cost" of the Property, less deductibles, exclusive of land, footings, excavation and other items normally excluded from coverage (but including all building service equipment and machinery). The Association may or may not, as determined by the Board, insure the improvements and betterments referred to in Section 5 15 B . 3 - 113 (b) (i) through (vii) of the Act, but must 19 do so if required by the FNMA, FHLMC, FHA or VA, as referred to hereafter. 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 Federal Housing Administration ( "FHA "), the U.S. Department of Veterans' Affairs ( "VA "), the Federal National Mortgage Association ( "FNMA ") or the Federal Home Loan Mortgage Corporation ( "FHLMC ") as a precondition to their insuring, purchasing or financing a mortgage on a Unit. The Board may also, on behalf of the Association, enter into binding"ti�'•wriften agreements with a mortgagee, insurer or servicer, including without limitation the FHA, VA, FNMA or '','f x � FHLMC, obligating the Association to keep certain spei'fie4 or endorsements in effect.`° r 11.1.2 Commercial general liability insurance covering the 5 operation and maintenance of the Common Elements 04' the activities of the Association, with minimum limits of one million dollars pe'o'c;currence; ,against claims forf;death, bodily injury and damage, and such other . `i - s s, as are'�=�customarily covered by such � rY property er t P y g policies for projects similar in construction, locator and use to the Property. The policy shall contain a "severability of T ;nterest" endorsemeiikyyhich shall preclude the insurer from denying the claim of an ; x� oi occupant .. '64 .se . of negligent acts of the Association or other Owners or ]: cu : is , The policy' shall include such additional endorsements, coverages and limits . 'w re`s ith ety such ha aids as may be required by f insuring, the regulations of the FHA, VA, FNMA or:= 11 MC s a' precondition to their purchasing or a�:m finan r g t on a; Unit. ‹, ,,. i Y y - 11.1,3.' Fidelity bord insurance . against dishonest acts on the part of d irectors o ficc ■ s = 7 rna ei s, trustees, em or persons respons for handl � 7 1 � Y Y ! 7 . 1.Y� � 1 f funds belonging to •`o :ac lus eled if deemed to be advisable by the ' .. et:. ' .+ , c f TY �,1 fr . f 1 f , ■ . Boai:d ore • mired b the �iegulations�'of :a y financing - related institution as a precondition p to tl�e uic as;�, f , '' ��lsurrn g � -±rig arantee, or financing of a mortgage on a Unit. The fidelity , h� 1 .. , .•. nd or insurance ; ;s name, ;:th: Association as the named insured, and shall comply :y 4 r 1 ti ; . with,. the regulations Y :o ,,v-- f the FNMA, FHA, VA or FHLMC, respectively, if required by such agency as a pre.conditiori to its purchase, financing, insuring, or guaranteeing of a mortgage on a Unit. An appropriate endorsement to the policy to cover any persons who serve without coin 1? f ce, ssation shall be added if the policy would not otherwise cover volunteers, `0 a :waiv of defense based upon the exclusion of persons serving without compensation shall be added. MPLS-Word 129293.2 20 11.1.4 Workers' Compensation insurance as applicable and required by law. 11.1.5 Directors and officers liability insurance with such reasonable limits and coverages as the Board shall determine from time to time. 11.1.6 Such other insurance as the Board may determine from time to time to be in the best interests of the Association and the Owners. 11.2 Premiums Lim •rovements■ Deductibles. Except as provided in Section 6.4 and this Section, all insurance premiums shall be assessed and paid as an annual Assessment. Policy deductibles amounts shall be determined by the Board. If improvements and betterments to the Units are covered, any increased cost may be assessed against the Units affected. The Association may, in the case of a claim for damage to a Unit or Units, (i) pay the deductible amount as a Common Expense; (ii) assess the deductible amount against the Unit or Units affected in any reasonable manner; or (iii) require the Owner of any Unit affected to pay the deductible amount directly. The Association's decision as to who shall be charged with paying the deductible amount may, but need not, be based on fault. MPLS-Word 129293.2 11.3 Loss Pa ee• Insurance Trustee. All insurance.7:coerage maintained by the rr.� t�. t v�,• Association shall be written in the name of, and the proceed eih eo shall be payable to, the Association or a ualified insurance trustee selected by Was as trusty f or the benefit of the Owners and secured parties which suffer loss. The Associat on ,or any r i _tirance trustee selected ■ • • a �r�i, a }, �7� • by it, shall have exclusive authority to negotiate, settle` and" collect upon a : R claims or losses under any insurance policy maintained by the Association. vY `x "•r`*�v'r `f x�`ti r"r YY •" tik: r -t s� .�c x n r. i.'. *y4rrb..f -+ ■ -y •; 11.4 Required Policy Provisions. Ali poli •::,:.:: ; of,pr 'c'operty insurance.. .rried by the Association shall provide that: ;;,.:. 11.4■ 1 Each Owner and secured party is an insured Person under the policy with �•A R . Y'T .. `: f�t r • Y • • rk I '6.):,. f 2 � • y respect to liability arising out of�r th<<fI caner s interests a „the Common Elements or i• • membership in the Association. 21 .7r 11.4.2 The 44surcr waives its rightly'to subrog' tton under the policy against any Owner or memb.er::ofther;O:wner's househ old and aganst the Association and members of � rr"r air the Board. •f 11.4.3 The ° Verag shall not be w ded by or conditioned upon (i} any act or v " Y r S . e . .. •. .- f 1, ti 'l; , . Sf... . .. � •y. . . omission:.of art Ownci o:r n ee u lies acting within the scope of authority on behalf .;,; `,�`,, Y'. *a ,� ( 1): any failure 6f the Association to comply with any warranty or of ,tle� A'ssacta:��a o�• ���� r f r� _ r x ,Y • • rs 7 ' . r fir 061',t,lon •y'■ ■ . - on has no Ohdition regar'dmg .,any of the Property over which the Association ��'� r v �7 Yrf..r -. •�I`l JY Y, f.� c4�f'r.f .'�;rFr /. �'• LJ nt• `' = r , ' rr ' „„ r r.r r'i'•'.Yy; 1.4.4 If at theume of a loss under the policy there is other insurance in the name of an Owner coverin rrthe same property covered by the policy, the Association's policy is primary::'(''' rimary” "`,.. • • f f r r l S, r. 11.5 Cancellation Notice of Loss. Property insurance and comprehensive liability p y insurance policies maintained by the Association shall provide that the policies shall not be canceled or substantially modified, for any reason, without at least thirty days prior written notice to the Association and to all secured parties holding first mortgages on Units. 11.6 Restoration in Lieu of Cash Settlement. All policies of property insurance maintained by the Association shall provide that, despite any provisions giving the insurer the right to elect to restore damage in lieu of a cash settlement, such option shall not be exercisable (i) without the prior written approval of the Association (or any insurance trustee), or (ii) when in conflict with provisions of any insurance trust agreement to which the Association may be a party, or any requirement of law. 113 Owner's Personal Insurance. Each Owner shall obtain additional personal insurance coverage (commonly known as "gap coverage" or an "H06" policy) at his or her own expense covering fire and other casualty to the interior of the Unit, personal property and the Owner's personal liability. Insurance policies maintained by Owners are without contribution as against the insurance purchased by the Association, except as to deductible amounts or other items not covered under the Association's policies, 12.1 Reconstruction. The obligations and proeedtires` for the repair, Y reconstruction or disposition of the Property following damage or desttruetion thereof shall be governed by the Act- Y Any repair or reconstruction shall be commenced�`�as:� soon as practicable after�`�tlh:r ;±casualty and . r..• r a r ' r r , ■ �� ■��� • rT' -• shall be substantially in accordance with the plans, 'speaficatics,�,and design of *_he Property as s •\+ r Y • r.. initially constructed and subsequently improved. Notieo=:substantial damage or destruction shall be given as provided in Section 16 10. 122 Condemnation and Eminen Domain, In the eve p. a.. taking of any part of the •.:a',�y.'.'.'�'.'�`• r f e r r y -.r. Property by condemnation or eminent doma.n,� theypoyisions of the .A shall govern; provided, (i) that notice shall be given as provided in '*ction_F:y, i that the Association shall be the attorney-m- act to re resentr the, owners in any related roce din s■ ne otiations settlements or agreements; and (iii) t1 : `: 1Y;.!la cards or proceeds shall be: =payable to the Association for the benefit of the owners the moitg,ees of thexr g x 'Units. Mortgagees shall be entitled to priority a .r� °ti for condemnation .a•ward.s�, .in aecoordance with tl ; established by the Act and the . ,r Governing Documents, a ]i r intexests�xay appea�+ `'• L r.x• .'� t;r _tt`r'r r`ff -. . ti •` •e�j .' f ` Y_L rri, .`T i r • f i r r• r,, 1 •r.•e a ,`.'xfY. .. • r�x r Yre.; r °r':` ` ?4'. � rr Y r i . . S• f r [r '`., Yy'S eii nation a ;r:rLiquidation:`'` The termination of the common interest comrnun i , and the d notion at 40y proceeds therefrom, shall be governed by the Act. Any distribiltibn of funds :.based`W6:if the value of the Units as determined by their relative � r:j l•y r. value for'property insuranceYpY iposes - and shall be made to Owners and their mortgage holders, as their interests;may appear, provided in the Act, max. �i ., srti r � 12.4 Notice, T0' Association shall give written notice of any condemnation proceedings or substantial of the Property to the Eligible Mortgagees entitled to notice under Section i iti. 12.5 Association's Authority. In all cases involving reconstruction, condemnation, eminent domain, termination or liquidation of the common interest community, the Association shall have authority to act on behalf of the Owners in all proceedings, negotiations and settlement of claims. All proceeds shall be payable to the Association to hold and distribute for the benefit of the Owners and their mortgage holders, as their interests may appear, in accordance with the Act. MPLS-Word 129293.2 SECTION 12 RECONSTRUCTION, CONDEMNATION AND EM N DOMAIN 22 Each Unit and the Common Elements, and the rights of the Owners and Occupants therein, shall be subject to the appurtenant easements and rights granted and reserved in this Section 13. 13.1 Access. Each Unit shall be the beneficiary of a non- exclusive easement for access R . to and from a public roadway on and across those portions of the Comm n Elements designated for use as roadways or walkways, as originally constructed, sho: . on the Plat or otherwise designated by the Association, subject to any restriction t prized by the Governing rr • Documents or the Rules and Regulations. MPLS -Word 129293.2 EASEMENTS SECTION 13 23 Y f 13/2 Use and Enjoyment. Bach Unit shall< <`�'be,.� e benef i of nonexclusive :the r +Y easements for use and enjoyment on and across :the Common Elements ,:and for use and enjoyment of any Limited Common Elements all :sated to the Unit, subject to` ,any authorized by the Governing Documents. rrrr.r rr�r=r. it rr a r. °r• 13.3 Structural Su ort. Each Unit and the Comm Elements shall be subject to and the beneficiary of nonexclusive easements .. ` for structural support in all walls, columns, joists, girders and other structural components 164: e ,or passing thioti ; or;=.shared with another Unit or the Common Elements. ` _. a _, i r - r ri Y.`•4a•Y . Yrr•,'. 13.4 Encroachments ■" Each Unit and e'r Common lements, and the rights of the k • ..: r •: r Lr�[V f '�[, yr' ' V� r ; '' • T • "e• �� ��� ••y , / ■ n favor of the Owners and Occupants , } t .�erel •' r•..7. i'ct to none elusive easements i shall be sub��e ■ • ■ / *or v e .y r`yYYY rY ■ / add oining Units for encraaL1aments eau*. by the construction, reconstruction, repair, shifting, settlement of ovement''of any part of the and for improvements which are part of the original construction o `t e, erty or Which are added in compliance with Section 8. r, Y r r Y c ., r. y'r'. r .� r. i r Y rr .4'�r'.'r• . ar Common Elements as a result of any of the . . If there is an eoachment uponi`a_ note "r; rrr�th " Y [ r > J `iY Y I y Y Y .rr i j .•� r y ■ Y Y�ncr r.� %. •�'�.. ] r. " i.: YY�i • lk�Y. �S! �fr � irr�r�YV exist for the encroachment, for the use, aforementioned eaussfy an appurtenant easement shall exi r[r y r.'f �!~ Rf !'. r " Y Y•L : Y- a ��•:. enjoyment r and habitation o_f any�x' •zeroaching improvement, and for the maintenance thereof fioweveif;;ith respect to'iproverrierit�s or alterations added pursuant to Section 8, no easement Shall exlst° r.si , resultin '=,encroaL ment is minor and the proposed improvements have been � � �} ess the ..r.�,:,.,;;. approved and constructed as'required by this Declaration. Such easements shall continue for as long as the enemas irnent exist and shall not affect the marketability of title, ye Mfr• •■/ T Y r Y�r'4' Vyi } 13.5 Storr 7 ate Y Pond and Draina e Easements. The Property is benefited by a y . rYF nonexclusive easementpursuant to a Storm Water Pond Easement and Maintenance Agreement for the drainage, ponding and storage of surface water and storm water from the Property over and on Lot 1, Block 6, Pine Grove Gardens ■ The Storm Water Pond Easement requires the Association to maintain, repair and replace the pond, any and all pipes, conduits, mains and related equipment as shall be necessary in connection with the easement. In addition, the Common Elements and the yard areas of the Units shall be subject to and benefited by nonexclusive easements for storm water drainage over those parts of the Property which are designed, improved or graded for such purposes as part of the development of the Property. 13,6 Maintenance, Repair, Replacement and Reconstruction. Bach Unit, and the rights of the Owners and Occupants thereof, and the Common Elements shall be subject to and benefited by nonexclusive easements in favor of the Association for the maintenance, repair, replacement and reconstruction of the Common Elements, the Dwellings and other improvements located within the Units, and utilities serving the Units, to the extent necessary to fulfill the Association's obligations under the Governing Documents, Each Owner shall afford to the Association and its management agents and employees, access at reasonable times and upon reasonable notice, to and through the Unit and its Limited Common Elements for maintenance, repair and replacement; provided that access may be had..yvdthout notice and at any time in case of emergency. 13.7 Utilities, Services and Operating Systems. The,,, 'on Elements and the Units shall be subject to and benefited by nonexclusive easements fiii,favor'Kgw , 'ty . � C� the Association and all utility companies and other service providers forte. use, maintenance, repair and replacement of all utilities, services and common systemsg as natural gas, electricity, telephone, cable TV, internet and otherY'olectronic communications ;Y water, sewer, ot� !''' a :. w � � . Y, ,� septic systems, wells, and similar services, irrigat,,systems-�'y fire control syster i-s• and other common operating systems, and metering and cotr_o1 r devices, which exist, which are ,*� '���!`" ,he+Additional Real Estate, which are pp constructed as part of the development of the Property a`r 11 •.. approved by the City, which are a roved by the Associati�or'��:under authority contained in the Y : J Governing Documents or the Act, or h h. are describeek referred to in the Plat, this Declaration or other recorded instrume Unit, and t c Y yi i ghts of the Owners and . i„l, r }x; xJY Occupants thereof shall also be subject to acid bene fted. by a nonexclusive easement in favor of the other Units, the Common Elements and the Msoca foi all such utilities, services and systems installed in accord, ce ith the fore o tmr rovisio i� o this Section, Utilities and related r "r.:r �.yr- r.�kl ! } r r Y Y yr � r,�•` � 1 services or systems sh �`he ins a cd, used, malnitained and repaired so as not to interfere with the use and quiet enjoyment of t* nits by the Owners and Occupants, nor affect the structural or architectural integrit) of`the Dwellings or Comp o :'Element improvements, 13, ,Em of Abbess to n case of emergency, all Units and Limited � Conmony Iements arc::, subj ect to:t :an easement, without notice and at any time, in favor of the Association for access byr the Assoc�aton's management agents, and in favor of fire, police or other pub$1c':safety personn MPLs -ward 129293.2 13.9 : 'roject Signs. Declarant and the Association shall have a non - exclusive easement and right to erect and maintain temporary and permanent signs and related monuments identifying the common ipt_e est community on the Common Elements and on Units owned by Declarant. Those pis''' of the Property on which permanent monument signs or related improvements are located shall be subject to non-exclusive easements in favor of the Association for the continuing use, maintenance, repair and replacement of said signs and improvements. 13.10 Maneuvering and Driveway Easements. If any Unit shares a driveway, or a portion thereof, with another Unit, each such Unit shall be subject to and the beneficiary of a non- exclusive easement for reasonable vehicular maneuvering and access on and across the shared driveway, subject to any restrictions authorized by the Governing Documents or the Rules and Regulations. 24 13.11 Declarant's Easements. The Units and Common Elements are subject to exclusive easements in favor of Declarant for the exercise of its declarant rights as described in the Governing Documents. 13,12 Other Easements. The Property shall be subject to such other easements as may be authorized by the Association under authority contained in the Governing Documents or the Act or recorded against the Property by reason of the City's requirements in connection with the development of the Property or Additional Real Estate. 13.13 Continuation Sco . e and Conflict of Easements. TherAsements set forth in this Section i shall rum with the land and shall be appurtenant to the Rb %nefited Property; X11} shall supplement and not limit any easements described elsewhere ti jf ifils+,Declaration, or otherwise � e• recorded, (iii) shall be permanent, subject only to termination 7 yn accor Ace with the terms of the easement; and (iv) shall include reasonable access to the.easernent areas: ;Yrver and through the Property for purposes of construction, maintenance, repair, replacement acid re:e 13.14 Non Interference; Impairment Proh b" ted. All Pe�r,sons exercising .easement rights shall do so in a reasonable manner so as not to maternally interfere with the operation of the Property or cause damage to the Property, and shall be riii*ially liable for all costs of repair of any p Property ed art of the Pro ert which is damn by the Person' s=y excise of the easement rights. No Person shall impair, obstruct or cause t' ; ::sage to any easement area, or improvements or equipment installed therein. 7 ,, , hin in this 6.:,s,,,, ecl .ration to the contrary, no �, g , r r. Owner or Occupant shall be denied reasonable ' acee s Y 10 his or herYYUnit or the right to utility services thereto. , , tyi rrrT . ' 1 : ,,, :- r,r •'sl R ^ , 7� ti r. 13.15 Benefit of Easeme its ■ All easements benefiting a Unit shall benefit the Owners and Occupants of the 'tat, and the T families and" ■}/guests. However, an Owner who has delegated p r r Y r y , S S r i 0.6'. V r g py ,•: e r Y Y' cupant or Oc6�pants, whether by a lease or otherwise, does the r ht to o c cu the ` t to an -, rY t .rti•.r %, S-` • not have the use and other easeme ts- ;;lights in the Property during such delegated occupancy, ' i . F ' r r _ Y r ti . .dat'r . '" ■ ■ • • a • ■ except (0) as ]a:- ; =gu '�,of an ownr or o or (11) in connection with the inspection of. the r „x , �. K.�r Unit Oils i . .l..t. .. y_ ,x'r.r r • 1 j A Unit or recovery o 'poss:es ; sion oft I. e Unit pursuant to law. MPLS-Word 129293.2 .•,e •, r; fY rrar,�Y ,. 25 i • k r�rSE CTION 14 , OMPLIANCE AND REMEDIES .r rl Each Ownet:and Occ' ant, and any other Person owning or acquiring any interest in the Property, shall be governed by and comply with the provisions of the Act, the Governing Documents, the Rules Regulations, and such amendments thereto as may be made from time ] to time, and the decisions of the Association. A failure to comply shall entitle the Association to the relief set forth in this Section, in addition to the rights and remedies authorized elsewhere by the Governing Documents or the Act. 14.1 Entitlement to Relief. Legal relief may be sought by the Association, at its discretion, against any Owner, or by an Owner against the Association or another Owner, to enforce compliance with the Governing Documents, the Rules and Regulations, the Act or the decisions of the Association. However, no Owner may withhold any Assessments payable to the Association, nor take or omit other action in violation of the Governing Documents, the Rules and Regulations or the Act, as a measure to enforce such Owner's position, or for any other reason. 14.2 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, the Rules and Regulations or the Act: 14.2.1 Commence legal action for damages or equitable relief in any court of competent jurisdiction. r ,r l x ` w , 14.2 ,2 Impose late charges of up to the greater - :o�rSt e 1 l . r r'ti Y r my dollars, or fifteen percent of the amount past due, for each past due Assessmen't ott}anstallment thereof', and impose interest at the highest permitted rate p i ermitted b � law�,accru� � i in be } ``ring on the first day of impose .r r - y rYr = d' 'Y T rl the month after the Assessment or installment was �y: 'rk 4 y�y S'• "s • Y y Y . r�cf i YL •1 . f... r 1 14.2,3 In the event of default of ;:na xe. than thitty days in thepayment of any r r y .. .T,. :. :�r�+ 'r � • ■y` r�. Assessment or installment thereof, all renairl g instalY ments of Assess ents assessed against the Unit owned by the defaulting Owners .x aay be accelerated and shall then be payable in full if all delinquent, Assessments or instAallments thereof, together with all attorneys' fees and other profes*Opat fees, costs and? ate charges, are not paid in full p prior to the effective date of the dc"(4k ration• Not less�'Y'than" days advance written �,.: . r. � , Irlr ::.. r�r _. notice of the effective date of the ac eeterati`o•shall be given to defaulting Owner. r-r - f''r'r.• : 14.2.4 Impose•�,x.easonable fines = ;penalties of c yarges for each violation of the Act, " Y r k a Y r�lr;l• L f. Y 4:4 the Governing D9cuerts; l'�rxor r the Rules Regulations. r y _ y' rrti l • "ly Y�1�f - 5 14,2.5' �` the4ghts of any Owner or Occupant and their guests to use any airy:. .i < :. y ., r' , r • ghts shall not apply to Common ElenentYa emit es Tp ovided, that, the suspension of use rights s f w _ � 1 1 . .- r l _ •i,: Limited; y omrnon EI`emcn.ts� rlall�ro , :te d,� ; to�x the Unit, and those portions of the Common Y 'r • 'ti /'�'• a`.'�r.x. +r '4'r�z'r�•rr'. ' • r a'��Y'��y' Y ■ Elem ent s ��pro id ng utll 'l es ; service a access to the Unit. Such suspensions shall be l cited to per io'ds ;of,defaultt y. such Owners and Occupants in their obligations under the :Go verning Docume ts , and f8t,''io :p six months thereafter, for each violation. : r r r �Ylrr r r�} '!r!` e r l r 1 '. 1 • r . �y. f V Y. y' • - 1 1 + 1 r rr r •1 rY•, : Restore any portions of the Common Elements, Unit, or Limited Common Eleinen.ts�� d .maged or f altered, or allowed to be damaged or altered, by any Owner or Occupant`�orsth guOeir ts in violation of the Governing Documents, and to assess the cost A • r'r'r7Y'r`Jr Al r of such restorato.;Sgainst the responsible Owners and their Units. r { r Y r•eyY�Y r r r r Y 14.2.7 `inter any Limited Common Element or yard area of a Unit in which, or as to which, a violation or breach of the Governing Documents or Rules and Regulation exists which materially affects, or is likely to materially affect, 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, remove or demolish, at the expense of the offending Owner or Occupant, any structure, thing or condition which is causing the violation; provided, that any improvements which are a part of a Dwelling may be altered, removed or demolished only pursuant to a court order or with the agreement of the Owner. MPLS-Word 129293.2 26 MPLS-Word 129293.2 14.2.8 Foreclose any lien arising under the provisions of the Governing Documents or under law, in the manner provided by the Governing Documents. 14.3 Rights to Hearing. Before the imposition of any of the remedies authorized by Section 14.2.4, 14.2.5, 14.2.6 or 14.2.7, the Board shall, upon written request of the offender, grant to the offender an opportunity for a fair and equitable hearing as contemplated by the Act. The offender shall be given notice of the nature of the violation and the right to a hearing, and ten days within which to request a hearing. The hearing shall be scheduled by the Board and held within thirty days of receipt of the hearing request by the Board, a�:,nd with at least ten days' prior written notice to the offender. If the offender fails to timely reguek4 hearing or to appear at the hearing, then the right to a hearing shall be deemed waivedrid the Board may take such action as it deems appropriate. The decision of the Board,. and'''the;,rrules for the conduct of hearings established by the Board shall be final and binding on all part eis The Board's decision shall be delivered in writing to the offender within te= ; folio #' . the hearing, if not delivered to the offender at the hearing. f • - _ _ Y. ti rr.rr•. ' • Y.a 'f f f TYY�,I 14.4 Lien for charges,. Penalties, Btc.:, 11 barges, n s, expenses, penalties, interest r', ti L �. f r. 1 ' I 1. or other impositions under this Section shall be a lien against the�IJnit of the owner or occupant against whom the same are imposed and the personar Wi.j of such Owner in the same manner and with the same priority and... as Assessments Section 6. The hen shall attach as of the date of imposition of the ipcly, but shall not be final as to violations for which ■ ■ • 1 �'�TTY�lj�. ■ • 'r ?� i. � ■ a hearing is held until the Board makes °aa:' t 9A,. decision at '0f:9 yfol`Vowing the hearing. All remedies shall be cumulative, and the exercise 44,0j:1,14Te to exp n se, any remedy shall not be , deemed a waiver of the Association's right t u rs y =any oth r f. of rY !'I rr.'y_Y�Yr eS- ik "' r t�Yti�i t S: = .r YY x�' ;'IfY S a yrF Y ej ` , 1 ` ,j y i Y ,rr l; ,, Y r Y T 14.5 Costs and ; 'ees:Y''th respect to n y collection measures, or any other measure or action, legal, administ native or othclwise, which the Association takes pursuant to the provisions of the Act, Governing tounent Rules and Reg:lations, whether or not finally determined • fY f`rf�� .5. � ♦ �rr.,� " . '; A .. • by a court or arbitrator, t e �Asso:c ation,,Inay assess the Unit owned by the violator with any expenses incurred r,,.connectii yx .,vvith sicli including without limitation fines or t r . . _ r • r, r Y.�• •xR .'S�r�S /_ eyr� itig:,'Msociation, charges piLviously impose by reasonable attorneys' fees and other professional is ]' i! tR:�Af i�` fees, costs and interest higher t , *rate , allowed by law) on the delinquent amounts owed to Y R v •r , >yrve c�tso • i i the Assoc aion. Such expenses shale include any collection or contingency fees or costs •'r ix7 r s charged 1&* Associatiori :by a collection agency or other Person acting on behalf of the Association + n collecting any delinquent amounts owed to the Association by an Owner or Occupant. The r f'o e fees: =and costs shall be the personal obligation of the Owner of the Unit and shall be a lien agamst Owner's Unit. -y •Y x • Y •' Y '•rrlY jr r* 14.6 Liabilit `'for Acts of Owners and Occupants. 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 Unit, 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 Unit. 27 14.7 Enforcement by owners. The provisions of this Section shall not limit or impair the independent rights of other Owners to enforce the provisions of the Governing Documents, the Rules and Regulations, and the Act as provided therein. MPLS-Word 129293.2 15A.1 The Board. SECTION 15 AMENDMENTS 15.1 Approval Requirements. Except for amendments by Declarant pursuant to Section 17, this Declaration may be amended only by the approval ,rr 15.1.2 Owners of Units to which are allocated least `six ty -seven percent of the total votes in the Association, except as otherwise ..provided by the r _ r ; •ir r'n iY,y'Y �'� •r ' 15.1.3 The ercenta e of Eligible,: =:Mort a ees;, (based upon oreY= -o per Unit p g g g r te p /l f i'iy ;Y p financed) as and if required by Section 1& 15A .4 Declarant as to certain amendments asT provided in Section 17.8. 15.1.5 The City as to S ;1,2. : f . i } fir 15.2 Procedures, Approval of the`=,Ow :,;m a: , be obtaine d in writing or at a meeting of the Association duly held in accordance w t th rti yla rs =i Consents of Eligible Mortgagees or m f r 5 ..• fY'i } Vr'r Declarant, if required, s is , y in writing. A-n� amendment shall be subject to any greater requirements imposed .,A�Ltr 'he amendrnent shall be effective when recorded as provided xx� Y Y r Y • r e •Y ' r�r �'f�y in the Act. An affidavit b the Sectary of the Association as to the outcome of the vote, or the } 't r. f , !. ce ! Y . ,l execution of the foregong�,� : agree ~<.•:;nts or consents, :sYshall be adequate evidence thereof for all �•V rr r r y .r 'l r Y f 'f ' - i'i • v Ra !'t �� + purposes, including without Y_ Vaitat1oi ■■:bthe�;'reeoid of the amendment. 'l• -!. f: r:'1.' rJ r ^. .. f . Y ti•f •. ,, ,'•. ,, Y r'Y . . , ti,,,, . . ti r- .r L fr } y • • r - '. r , 4 r r f •, - e � Y ��,••1�,.�f.� ! . �• . , y = •R! ' ' ,�.. r., T • r. SECTION 16 TS o :YELIGIBLE MORTGAGEES Notwithstanding anything to the contrary in the Governing Documents, but subject to the Act or other laY 'igible Mortgagees shall have the following rights and protections: �rti :,. r • r 16.1. Conseht4Oi.Oertain Amendments. Subject to Declarant's rights under Section 17, the written consent of Eligible Mortgagees representing at least fifty -one percent of the Units that are subject to first mortgages held by Eligible Mortgagees (based upon one vote per Unit financed) shall be required for any amendment to the Governing Documents which causes any change in provisions including the following: 0i) voting rights; (ii) increases in Assessments over twenty -five percent; (iii) Assessment liens, or priority of Assessment liens; (iv) reductions in reserves for maintenance, repair and replacement of Common Elements; (v) responsibility for maintenance and repairs; (vi) reallocation of interests in the Common Elements or Limited Common Elements, or rights to their use; (vii) redefinition of any Unit boundaries; (viii) convertibility of Units into Common Elements or vice versa; (ix) expansion or contraction 28 of the Property or the addition, annexation or withdrawal of property to or from the Property; (x) hazard or fidelity insurance requirements; (xi) imposition of restrictions on the leasing of Units; (xii) imposition of any restrictions on an Owner's right to sell or transfer his or her Unit; (xiii) a decision by the Association (if the common interest community involves fifty or more Units) to establish self management when professional management is in effect as required previously by the Governing Documents or an Eligible Mortgagee; (xiv) restoration or repair of the Property (after a hazard damage or partial condemnation) in a manner other than that specified in the Governing Documents; (xv) any action to terminate the legal status of the common interest community after substantial destruction or condemnation occurs; or (xvi) any Y 4f ■ provisions that expressly benefit Eligible Mortgagees, or insurers or of mortgages. 162 Consent to Certain Actions. Subject to Decla i 's y rj;g is under Section 17, the written consent of Eligible Mortgagees re representing at least silty ve "ercent of the Units that g p g � - se rr are subject to first mortgages held by Eligible Mortga e'� i z : one vote per Unit financed) shall be required to (i) abandon or terminate ,e— the commonTIrtest community; ( ii) chars � e the allocations of votin \ � � ri hts � Como. Expense obligations `o ' nterests in the • ., • te r' ' . i s Y . Common Elements; (iii) partition or subdivi d6 = a Y :,.Unit except as permitt yi , s:`by statute; (iv) abandon, partition, subdivide, encumber or sell any ;Corn uri 'h.,Eiements; or, (v) use hazard �f:r insurance proceeds for other than the repair, replacen`6405r reconstruction of the Property, except as otherwise provided by law. j r= fTTSSY+CCti t TYr�Y.�f.!!rs 1. . S • I�T * T r [ rYr rTf tif ; ' ` 16.3 Consent to Subdivision. E cept ha authorized by this : eclaration, no Unit may be partitioned or subdivided without the prior r itten ' ;pi oval of the ::Owner, the mortgagee of the applicable Unit and the Association. 16 ■4 No Right: '_:o `F rst' efusal. The " of an Owner to sell, transfer or otherwise convey his or her Units all not bg;sub ■ ect to any l r,i. " ht of first refusal or similar restrictions. :'! y f, TA f. 1 • • .f ... r�!'r rlY• 16.5 Priority of LI& . yr e3rson who c.o'ines into possession of a Unit by foreclosure of the first Tort gage a Jnit or by' deed ',oi assignment in lieu of foreclosure of the first , . r i mortgage. ,or Y a hi take the' r :ut free of any claims for unpaid Assessments or any other f fr f' +. '•� i r1'ti� r`x Frfr k + �1 T., I ■ } I.� f' l • �1 fY', • • ■ against such charges -,far liens impose= ;_.against the.° Unit�r by the Association which have accrued agai Unit-''�Y i to the ac uisitio ;of possession of the Unit by said Person; (i) except as provided in v '• Y� Y'+l• f ; 1, "" 'r,lY. ...Section the Act, and r (ii) except that any unreimbursed Assessments or charges may be reallocated air o g all Units in accordance with their interests in the Common Elements. .,,,! f r .y rya 16.6 Prioiliy,of TaRes and Other Charges. All taxes, assessments and charges which may become liens pi or :to the first rortgage under state law shall relate only to the individual �l' Units and not to the Property as a whole. 16,7 Priority for Condemnation Awards. No provision of the Governing Documents shall give an Owner, or any other party, priority over any rights of the mortgagee of the Unit pursuant to its mortgage in the case of a distribution to such Owner of insurance proceeds or condemnation awards for losses to or a taking of the Unit andlor the Common Elements. The Association shall give written notice to all Eligible Mortgagees of any condemnation or eminent domain proceeding affecting the Property promptly upon receipt of notice from the condemning authority. MPLS-Word 129293.2 29 16.8 Requirements for Management Agreements. The term of any agreement for professional management of the Property shall not exceed two years. Any such agreement shall provide for termination without penalty or termination fee by either party as follows: (i) with cause, upon a minimum of thirty days prior written notice, and (ii) without cause, upon ninety days prior written notice. 16.9 Access to Books and Records /Audit. Eligible Mortgagees shall have the right to examine the books and records of the Association upon reasonable notice and during normal business hours, and to receive free of charge, upon written request, copies of the Association's annual reports and other financial statements. Financial statements, ncluding those which are audited, shall be available within one hundred twenty days after Ttie end of the Association's fiscal year. If the common interest community consists of fewer i14 iffy Units, FNMA, or any r + r institutional guarantor or insurer of a mortgage loan against raYYlJnit, .moray ; require that, at its own expense, an audit of the Association's financial statements for ;the preceding year, in which case the Association shall cooperate in having ran audit made and `acopy given to the requesting party, If the common interest corm. unity consists of fifty :nits, the • a Y : Association shall provide the requested audit at its= r 16.10 Notice Requirements. Eligible Mortgagees and, upon written request to the Association, any institutional guarantor,„or insurer of a x °otT gag against a e loan a aiil.St a Unit shall be entitled to timely written notice of: i•LS • R r i i .'f/i, il r r L t ! ti i [ MPLS-Word 129293.2 .•IC ! ]. rri •Tr rry�r. ,t !� r Y �r rf + r r. rx]]r 1r, •Yl.y]}y •Srr .r !r• r'r r''`yTrr `i r lY. . ; +ry[ • r .] r[rrfr R r . . i r`r`r rrxxFr •,'� 1 6.10.1 a condemnation loss` or any' o; .sua]ty loss w R i6h affects a material portion of the Property or the Unit securing the ; ,mor t ga g e ';:.:_<<,:,,�, Y , y :Y 1 6.10.E a sty day:-delinquency in the payment of Assessments or charges owed by the Ownei w ., a r it Unit on hich it holds a Y , -:mortgage r ee ei 9 ' ' i �_ r[yrrrj• ♦]rrSl I x y r r Y -Y'Tyr r . ! _ �r±rT: �'i, 'l r4r,' r . r 9 / �f A r'1 h�.� •. � r. . _ se ca :ee1 tiara or ri aterial modification �ication o any insurance policy s oci an d'[L.,'f 4'r� r•x;ry •. ryr •' inaintaine the d::lay, 16.10. L :° oposed-aetion which requires the consent of a specified percentage of �•rL :Y. : r.•, \, s'. Y'•� .i ble Mortgagee =' SECTION 17 DECLARANT RIGHTS Declarant here1yreserves exclusive and unconditional authority to exercise the following special declarant rights within the meaning of Section 515B.1-103(32) of the Act, and other development rights specified herein, for as long as it owns a Unit, or for such shorter period as may be specifically indicated: 17.1 Complete Improvements. To complete all the Dwellings, Units and other improvements indicated on the Plat, or otherwise included in Declarant's development plans or authorized by the City or by this Declaration, and to make alterations in the Units owned by Declarant and the Common Elements to accommodate the exercise of any declarant rights reserved herein. 30 17.2 Add Additional Real Estate. To add Additional Real Estate to the Property as described in Section 18. 17.3 Relocate Boundaries and Alter Units. To relocate boundaries between Units and to otherwise alter Units owned by it, to the extent permitted by the Act. 17,4 Sales Facilities. To construct, operate and maintain a sales office, management office, model Dwellings, and other development, sales and rental facilities within the Common Elements, and within any Units owned or leased by Declarant from time to time, located anywhere on the Property or the Additional Real Estate. 17.5 Signs. To erect and maintain signs and other say` splays offering the Units for sale or lease, in or on any Unit owned by Declarant and ox Y t he C ommon Elements or on the r T . fl ➢.. Additional Real Estate. MPLS-Word 129293.2 SECTION 18 31 Consent in Ames dments. Until such time as Declarant no longer owns any Unit for initial sale and . zoo longez Alas the right to add Additional Real Estate to the Property, ��' r Y Declarant's B itten consent shall be required for any amendment to the Governing Documents or Rules and Regulations. �r • yY . 17.7 Control of Association. control the o 0:4,. ion and administration of the r . r YY: Association, including without limitations.t z : ,e pp �. �'�4i �� ower to appoint �and� r members the ernbers of the Y S 4 Board pursuant to Section 515B.3-103 of t . Act,.: until the earliest o:f + (i) voluntary surrender of Declarant; control by (ii) an Association rrietting r rrw `c sh all he held within sixty days after , � * rx`< i+fif6ent r ;,,,,Yrr conveyance to Owners other.: Y ; r T ;than Declarant of se enty -live of the total number of Units i• v �` ipperty; lY• • . r• authorized to be decix 111 the ? or ( date Jive''years following the date of the first conveyance of a a r r r rrt`y Y it: '��} O Y ' an Owner ; other than De,c l Notwithstanding the foregoing, the Owners other than fec1Ya a 7 - i x'Y irY':�1 ave the right t�: nt shah} Znominate and elect not less than thirty -three and one-third percent of tfh . �VTrY dir recr to1s atr meeting _ eetin elk Owners which shall be held within sixty days . . r K,. f . conveya .,r �h;yeey: :Yr ec] I 'a l ry . . ant r of - r .., by � � y fifty percent of the total number of Units . r . r -r rs; 1 e;Cl•tin the Property, • . k 17.6 Basements. To have and use easew .r its, for itself, its ernplo: e s, contractors, .s � •Y rr ra n. representatives, agents, prospective purchasers or:, of ier invitees through and ova the Common n �. , , tir r Y +• Elements and the yard areas of the Units for ther'°Tprpose '' exercising its declarant rights reserved herein. I TGHTS TO ADD ADDITIONAL REAL ESTATE Declarant hereby expressly reserves the exclusive right to add the Additional Real Estate to the Property, following its acquisition of title to the parcel being added, by unilaterally executing and recording a Supplemental Declaration pursuant to Section 515B.2- 111 of the Act, subject to the following conditions. No additional Units may be created by the subdivision or conversion of Units pursuant to Section 515B.2-112 of the Act. 18.1 Time Limitations. The right of Declarant to add the Additional Real Estate to the common interest community shall terminate ten years after the date of recording of this Declaration or upon earlier express written withdrawal of such right by Declarant or a successor Declarant, unless extended by a vote of the Owners pursuant to Section 515E.2- 106(2) of the Act. There are no other limitations on Declarant's rights hereunder, except as may be imposed by law, 18.2 Sequence to Add. The Additional Real Estate is described in Exhibit C attached hereto. The Additional Real Estate may be added to the Property in parcels consisting of one or more platted or unplatted lots, or portions thereof, and in any sequene'" rr,• � ! r! �Y f� K � 18.3 No Assurances of Addition. Declarant has no.:ab1 `at .on to add the Additional Real Estate to the Property. There are no assurances that an ,part o tl e'YAdditional Real Estate will be added to the Property, the order in which it will bp,,,,add;ed, the t :. e; t will be added, the number of parcels per phase nor the size of the par9e1•s The r Additional <<Rea1 Estate may be r.Y developed by Declarant or its successors in interest : ;;lor other purposes, subject r'only to approval by the appropriate governmental authorities. ..} fl "11fy__ =Y I ti r�' t. • F ar :!! } .. i. Ytrfi fi ?f rYa .r,r. r:r.f. f er} J ?}�C'rT ' 18.4 Maximum Number of Units • The maximum : number of Units that may be created within the Additional Real Estate described as such on the date,of this Declaration is twenty (20)■ All Units created on the Additional RealEstate shall be restricted;; exclusively to residential use .}:•. •., 1. ..,. "�1�t „�`�.,, �'ryr rYri YJ_� re � i 1.�.�1. r � Y. . T Y�r i • Y K Y Y ry Y 1 S +� . � f Y T+'. }!!r r•f r YxRY •YyVI•�r I� Mfellings [Q■ �j^,�] 18.5 Architectural Style and Coin •at� b �t ■ ts YA;� 1.Jn� and other structures r ..r . - created upon the Additional Real Estate shall the cornpatib e with�the other Units, Dwellings and Yxr,' •y.; rf; r -1,•: Y ..Y. l r f''S�r• other structures which are;:paxt of the PropertyY� terms + f architectural style, quality of construction, principal r r iat'erialss employed in `6'onstruction and size; subject (i) to any changes rr required by governm tai author* or lenders, r d (ii) to any interior or exterior changes made by Declarant to meet cha ff • es in the,,�xnarket. y r • ,Y I"K r. Ar R', Y i•!'i1, cryY rrlrir•r r .`r�f R r. I: ft.�•y'.? r.�r..- i r�' r • • ■ . Y1 ? F/ S "ry: R r: _. ..' - - �! f ''r • ■ 18.6 .:A y��'�J}_lrcab lrty ` 01 ,; overia Z s � A 11 covenants and restrictions contained in this ■ y•r:.�` f r �. r r. -.�'►r'. • Y f , r . } Units created Declaration l tectin the ,use, o'64. ancy and alienation of Units shall apply to all Uni ' on the Additional Real estate e r Y • Y r R r .. r` r�l�'. 1 : rY.f. "'' •' f. ' + f Tl e statements in ade * this ; Section 18 shall not apply to any Additional Real Estate which is no t4 ded to the Property. MPLS -word 129293.2 SECTION 19 MISCELLANEOUS 19.1 Severability. If any term, covenant, or provision of this instrument or any exhibit attached hereto is held to be invalid or unenforceable for any reason whatsoever, such determination shall not be deemed to alter, affect or impair in any manner whatsoever any other portion of this Declaration or exhibits attached hereto. 19.2 Construction. Where applicable, the masculine gender of any word used herein shall mean the feminine or neutral gender, or vice versa, and the singular of any word used herein shall mean the plural, or vice versa. References to the Act, or any section thereof, shall be 32 deemed to include any statutes amending or replacing the Act, and the comparable sections thereof. Any amendment to the Act shall retroactively apply to the Association and the Property, except as expressly prohibited or qualified by the Governing Documents. 19.3 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 pursuant to the g Act, the Association shall promptly tender the defense of the action to its insurance carrier, and give Declarant (i) written notice of such tender; (ii) written notice of the specific nature of the action; and (iii) an opportunity to defend against the action. k rtis�.r '[ i 5 19.4 Notices. Unless specifically provided otherwise i e Governing Documents or the Act, all notices required to be given by or to the Assoc a i o A q g y `the Board, the Association officers, or the Owners or Occupants shall be in RR ;end slia1 L Yte effective upon hand delivery, or mailing if properly addressed with postage prepaid and deposited in the United States mail; except that registrations pursuant to Sect or` `2 2 of the ByldN's'<;shall be effective upon receipt by the Association. 19.5 Conflicts Among Documents. In the J Bylaws even� ■ 'i e •It, of any , conflict between the provisions Yee r''. i y4 `'� f of this Declaration, the B laws and the Rules and Re uTat ons ='the Declaration shall control. The , Bylaws shall control as against the Rules „and Regulations. 19.6 Duration of Covenants. The .enants condition frictions, easements, liens and charges contained in this Declaration sha I =be p rpetual, subject only to termination as provided in this Declaration and the Act. , . -._Y - • IN WITNESS V! year first set forth abp4 STATER, OF MINNESO �yr�+ +. COUNTY MPLS -Word 129293,2 SS, , the undef ned has e ecuted this instrument the day and The forego ng instru :e nt was acknowledged before me this day of : ' �y •Y� + r` . the t y Y ti y '� b Y .'4F�`y �'� . `tr=y , of Pine Grove Develo�� LLC, a Minnesota limited liability company, on behalf of said p, entity. THIS INSTRUMENT WAS DRAFTED BY: J. Patrick Brinkman Esq. FELHABER, LARSON, FENLON & VOGT, P.A. Attorneys at Law 220 South Sixth Street, Suite 2200 Minneapolis, Minnesota 55402 (612) 373 -8420 33 f l , . y hE GROVE DEVELOPMENT, LLC By : Title: Notary Public f LOTS 1 THROUGH 7 INCLUSIVE, BLOCK 1; LOTS , ; I C UG LUSIVE, BLOCK 2; LOTS 1 THROUGH 6 INCLUSIVE, BLOCK 3; LOS 1 THROUGH 3 INCL .JSIVE a BLOCK 4, LOTS 1 THROUGH 7 INCLUSIVE, B : -�` CK. 5; A TD OUTLOT R N I Y• -, a �. I �� � �?TE.�ROVI� GARDENS, WASHINGTON COUNTY, MINNESOTA MPLS -Word 129293.2 COMMON INTEREST COMMUNITY NO. PINE GROVE GARDENS EXHIBIT A TO DECLARATION LEGAL DESCRIPTION OF PROPERTY NOTE: ALL OF THE ABOVE DESCRIBED LOTS, EXCEPT OUTLOT A, CONSTITUTE UNITS. OUTLOT A, PINE GROVE GARDENS, WASHINGT MPLS-Word 129293.2 COMMON INTEREST COMMUNITY NO. PINE GROVE GARDENS EXHIBIT B TO DECLARATION LEGAL DESCRIPTION OF COMMON ELEMENTS MPLS-Word 129293.2 COMMON INTEREST COMMUNITY NO. PINE GROVE GARDENS EXHIBIT C TO DECLARATION DESCRIPTION OF ADDITIONAL REAL ESTATE STATE OF MINNESOTA COMMON INTEREST COMMUNITY NO. PINE GROVE GARDENS CONSENT AND JOINDER BY MORTGAGEE The undersigned (the "Mortgagee ") is a mortgagee of portions of real property described in the Declaration of Pine Grove Gardens (the "Declaration "). The Mortgagee hereby consents to and joins in this Declaration; provided, that by consenting to and ja in this Declaration, ,R. (i) the Mortgagee does not in any manner constitute itself or oil 'gate itself as a Declarant as defined in the Declaration, and (ii) such mortgage shall rein a 7 ias a hen on the property described therein, prior to any Assessment hens or other liens`` + r imposed under the Declaration, until released or satisfied. • `''.' . IN WITNESS WHEREOF, the Mortgagee 1348 caused this Consent .land. Joinder to be executed on the day of r., COUNTY OF THIS I STRUMENT WAS DRAFTED BY: J. Patrick Brinkman Esq. FELHABER, LARSON, FENLON & VOGT, P.A. Attorneys at Law 220 South Sixth Street, Suite 2200 Minneapolis, Minnesota 55402 ( 373 -8420 MPLS-Word 129293.2 fTl • f�•� • ± Y om. � e x The ,foregoing�iinstru ernt =:was acknowl before me this day of , r r'+ + + Y •�•Y r' s yby ;,�:r,ry,,,., g the x . : r behalf of said entity r;*:;�; � ''� �l i Notary Public on ARTICLES OF INCORPORATION OF PINE GROVE GARDENS ASSOCIATION The undersigned, for the purpose of forming a corporation pursuant to the provisions of the Minnesota Nonprofit Corporation Act, Minnesota Statutes, Chapter 317A, and statutes amendatory thereof, hereby adopts the following Articles of Incorporation: ARTICLE I NAME The name of this corporation shall be "Pine Grove Gardens Association" (the "Association "). ARTICLE II PURPOSES AND POWERS The purposes for which the Association is formed, and its powers, are as follows: 1. To act as the Association which is referred to in the Declaration of Pine Grove Gardens (the "Declaration"), a planned community located in Washington County, Minnesota (the "Community"), and subject to Minnesota Statutes Chapter 515B, the Minnesota Common Interest Ownership Act, and 2. To act as a homeowners association under Section 528 of the Internal Revenue Code, as amended, to provide for the operation and management of the Community for the health, safety and welfare of the Owners thereof, and to preserve the value, and the architectural and physical character, of the Community; and 3. To exercise the powers granted by law or described in the Association's Bylaws or the Declaration, as amended andlor restated, and to do such other lawful acts or things reasonably necessary for carrying out the Association's purposes; provided, that no actions shall be authorized or undertaken which violate any state or federal laws applicable to nonprofit corporations or which would cause the Association to violate its nonprofit status under the laws of the State of Minnesota, or the Internal Revenue Code, as amended, and the Regulations related thereto. MPLS -Word 129289.1 1 ARTICLE III REGISTERED OFFICE The address of the registered office of this Association is 12415 — 55 Street North, Lake Elmo, Minnesota 55042. ARTICLE IV INCORPORATOR The name and address of the incorporator of this Association are as follows: J. Patrick Brinkman, 220 South Sixth Street, Suite 2200, Minneapolis, Minnesota 55402. ARTICLE V MEMBERSHIP/VOTING The members of this Association (the "Members ") are those persons described as Members in the Bylaws of the Association. Membership in the Association shall be transferable, but only as an appurtenance to and together with the Member's title to the Unit (as defined in the Declaration) to which the membership is allocated. One membership is allocated to each Unit. The Members shall have the voting rights allocated to their respective Units as described in the Declaration. Cumulative voting by Members is not permitted. ARTICLE VI BYLAWS The first Board of Directors shall, at its first meeting, adopt Bylaws for the regulation of the business of the Association Thereafter, the Bylaws may be amended or revoked only by the Members, as provided in the Bylaws. ARTICLE MY DIRECTORS The business of this Association shall be managed by the Board of Directors consisting of at least three persons, or such greater number as provided in the Bylaws. The directors shall be elected as provided in the Bylaws. ARTICLE VIII LIMITED LIABILITY The Members shall not be subject to any personal liability for corporate obligations. In addition, no person who serves without compensation as a director, officer, Member or agent of the Association shall be held civilly liable for an act or omission by that person if the act or omission was in good faith, was within the scope of the person's responsibilities as director, officer, Member or agent of the Association, and did not constitute willful or reckless misconduct, except as follows: a. an action or proceeding brought by the attorney general for a breach of a fiduciary duty as a director; b. a cause of action to the extent it is based on federal law; c. a cause of action based on the person's express contractual obligation; or d. an act or proceeding based on a breach of public pension plan fiduciary responsibility. MPLS-Word 129289.1 2 Nothing in this Article limits an individual's liability for physical injury to another person or for wrongful death which is personally and directly caused by that individual. ARTICLE IX NO PECUNIARY GAIN The Association shall not afford pecuniary gain, incidentally or otherwise, to its Members; provided, that (i) Members may be reimbursed for out-of-pocket expenses incurred in carrying out duties on behalf of the Association, and (ii) Members may be reasonably compensated for goods and services furnished to the Association as vendors in arrns- length transactions, as provided in the Bylaws. ARTICLE X DURATION The duration of the Association shall be perpetual, subject to dissolution in accordance with Article XII. ARTICLE XI AMENDMENTS Amendment of these Articles shall require the prior approval, at a meeting duly held for such purposes, of Members who hold at least sixty -seven percent of the voting power of all Members; except that the registered office may be changed by the filing of a Certificate of Change of Registered Office in accordance with law. ARTICLE XII DISSOLUTION The Association may be dissolved only in accordance with law. Upon dissolution of the Association and termination of the Community, and after payment of all costs of dissolution, and the debts and obligations of the Association, all remaining corporate assets shall be distributed to the Mernbers and secured parties, as their interests may appear, in accordance with Section 515B.2 --119 of the Minnesota Common Interest Ownership Act, or laws amendatory thereof IN WITNESS WHEREOF, I have subscribed my name on this day of , 2006. MPLS -Word 129289.1 3 J. Patrick Brinkman COMMON INTEREST COMMUNITY NO, Planned Community PINE GROVE GARDENS ASSOCIATION BYLAWS SECTION 1 GENERAL The following are the Bylaws of Pine Grove Gardens Association, a Minnesota nonprofit corporation (the "Association"). The Association is organized pursuant to Minnesota Statutes Chapter 317A, and Section 515B3-101. of the Minnesota Common Interest Ownership Act (the "Act "), for the purpose of operating and managing Pine Grove Gardens, a planned community created pursuant to the Act. The terms used in these Bylaws shall have the same meaning as they have in the Declaration of Pine Grove Gardens (the "Declaration ") and the Act. References to Section numbers shall refer to sections of these Bylaws, unless expressly otherwise indicated. SECTION 2 MEMBERSHIP 2.1 Owners Defined. All Persons described as Owners in Section 4 of the Declaration shall be Members. No Person shall be a Member solely by reason of holding a security interest in a Unit. A Person shall cease to be a Member at such time as that Person is no longer an Owner. 22 Registration of Owners and occupants. An Owner shall register with the Secretary of the Association, in writing, (i) the name and address of the Owners and any occupants of the Unit; (ii) the nature of such Owner's interest or estate in each Unit owned; (iii) the address at which the Owner desires to receive notice of any meeting of the owners, if other than the Unii address; (iv) the name and address of the secured party holding the first mortgage on the Unit, if any; and (v) the name of the Owner entitled to cast the vote allocated to the Owner's Unit. Each Owner shall have a continuing obligation to advise the Association in writing of any changes in the foregoing information. 2.3 Transfers. The interests, rights and obligations of an Owner in the Association may be assigned, pledged, encumbered or transferred, but only along with and as a part of the title to the Owner's Unit or as otherwise specifically authorized by the Governing Documents or by law. SECTION 3 VOTING 3,1 Entitlement. Votes shall be allocated to each Unit as provided in the Declaration. However, no vote shall be exercised as to a Unit while the Unit is owned by the Association. MPLS -Word 129290.1 1 32 Authority to Cast Vote. At any meeting of the Owners, an Owner included on the voting register presented by the Secretary in accordance with Section 4.6, or the holder of such Owner's proxy, shall be entitled to cast the vote which is allocated to the Unit owned by the Owner. If there is more than one Owner of a Unit, only one of the Owners may cast the vote. If the Owners of a Unit fail to agree as to who shall cast the vote, or fail to register pursuant to Section 2.2, the vote shall not be cast. 33 Voting by Proxy. An Owner may cast the vote which is allocated to the Owner's Unit and be counted as present at any meeting of the Owners by executing a written proxy naming another person entitled to act on that Owner's behalf, and delivering the same to the Secretary before the commencement of any such meeting. All proxies granted by an Owner shall be effective until the earliest of the following events: (i) revocation by the granting Owner by written notice or by personally attending and voting at the meeting for which the proxy is effective; (ii) the date specified in the proxy, if any; or (iii) the time at which the granting Owner is no longer an Owner, 3.4 Voting by Written Ballot. The entire vote on any issue, except the election or removal of directors, may be determined by written ballots mailed to the Owners along with a notice of the vote, subject to the following requirements. a. The notice of the vote shall: (i) clearly state the proposed action; (ii) indicate the number of responses needed to meet the quorum requirements; (iii) state the percentage of approvals necessary to approve each matter other than election of directors; and (iv) specify the time by which a ballot must be received by the Association in order to be counted. b. The ballot shall: (i) set forth each proposed action, and (ii) provide an opportunity to vote for or against each proposed action. c. The Board shall set the time for the return of ballots, which shall not be less than fifteen nor more than forty-five days after the date of mailing of the ballots to the Owners. The Board shall provide notice of the results of the vote to the Owners within ten days after the expiration of the voting period. d. Approval by written ballot under this Section is valid only if (i) the number of votes cast by ballot equals or exceeds the quorum required to be present at a meeting authorizing the action, and (ii) the number of approval votes equals or exceeds the number of votes that would be required to approve the matter at a meeting at which the total number of votes cast was the same as the number of votes cast by ballot. 3.5 Vote Required. A majority of the votes cast at any properly constituted meeting of the Owners, or cast by written ballot in accordance with Section 3.4, shall decide all matters properly brought before the Owners, except where a different vote or voting procedure is required by the Governing Documents or the Act. Unless otherwise expressly indicated, the term "majority" as used herein shall mean in excess of fifty percent of the votes cast by the Owners I PLS -Word 129290.1 2 voting in accordance with the voting procedures set forth in Section 3 and the allocation of voting power set forth in the Declaration. Cumulative voting shall not be permitted. SECTION 4 MEETINGS OF OWNERS 4.1 Place. All meetings of the Owners shall be held at the office of the Association or at such other place in the state of Minnesota reasonably accessible to the Owners as may be designated by the Board in any notice of a meeting of the Owners. 4.2 Annual Meetings. An annual meeting of the Owners shall be held in each fiscal year on a date, and at a reasonable time and place, designated by the Board. At each annual meeting of the Owners, (i) the persons who are to constitute the Board shall be elected pursuant to Section 6; (ii) a report shall be made to the Owners on the activities and financial condition of the Association; and (iii) any other matter which is included in the notice of the annual meeting, and is a proper subject for decision by the Owners, shall be considered and acted upon at the meeting. 43 Special Meetings. Special meetings of the Owners may be called by the President as a matter of discretion. Special meetings of the Owners shall be called by the President or Secretary within thirty days following receipt of the written request of a majority of the members of the Board or of Owners entitled to cast at least twenty -five percent of all the votes in the Association. The meeting shall be held within sixty days following receipt of the request. The request shall state the purpose of the meeting, and the business transacted at the meeting shall be confined to the purposes stated in the notice. The purpose for which the meeting is requested and held must be lawful, and consistent with the Association's purposes and authority under the Governing Documents. 4.4 Notice of Meetings. Not less than twenty --one nor more than thirty days in advance of any annual meeting of the Owners, and at least seven, but no more than thirty, days in advance of any special meeting of the Owners, the Secretary shall send, to all Persons who are Owners as of the date of sending the notice, notice of the time, place and agenda of the meeting. The notice shall be sent by United States mail, or by hand delivery, at the Owner's Unit address or to such other address as the Owner may have designated in writing to the Secretary. The notice shall also be sent to the Eligible Mortgagee with respect to a Unit, upon request, at the address provided by the Eligible Mortgagee. Any Eligible Mortgagee shall, upon request, be entitled to designate a representative to be present at any meeting. 4.5 Quorum/Adjournment The presence of Owners in person or by proxy, who have the authority to cast in excess of forty percent of all the votes in the Association shall be necessary to constitute a quorum at all meetings of the Owners for the transaction of any business, except that of adjourning the meeting to reconvene at a subsequent time. The Association may not be counted in determining a quorum as to any Unit owned by the Association. Any meeting may be adjourned from time to time, but until no longer than fifteen days later, without notice other than announcement at the meeting as initially called. If a quorum is present at the reconvened meeting, any business may be transacted which might have been MPLS-Word 129290.1 3 transacted at the meeting as initially called had a quorum then been present. A quorum, having once been established at a meeting or a reconvened meeting, shall continue to exist for that meeting notwithstanding the departure of any Owner who was present when the quorum was established. 4.6 Voting Register. The Secretary shall have available at the meeting a list of the Unit numbers, the names of the Owners, the vote attributable to each Unit and the name of the person (in the case of multiple Owners) authorized to cast the vote. 4.7 Agenda. The agenda for meetings of the Owners shall be established by the Board, consistent with the Governing Documents, and shall be sent to all Owners along with the notice of the meeting. SECTION 5 ANNUAL REPORT The Board shall prepare an annual report, a copy of which shall be provided to each Owner at or prior to the annual meeting. The report shall contain, at a minirnwn: 5.1 Capital Expenditures. A statement of any capital expenditures in excess of two percent of the Association's current budget or five thousand dollars, whichever is greater, approved by the Association for the current year or succeeding two fiscal years. 5.2 Reserve Funds. A statement of the balance in any reserve or replacement fund. 5.3 Financial Statements. A copy of the statement of revenues and expenses for the Association's last fiscal year, and a balance sheet as of the end of said fiscal year. 5.4 Liti ation and ,lud inents. A statement of the status of any pending litigation or judgments to which the Association is a party. 5.5 Insurance. A detailed description of the insurance coverage provided by the Association, including a statement as to which, if any, of the items referred to in Section 515B.3- 113(b) of the Act are covered. 5.6 Status of Assessments. A statement of the total past due Assessments on all Units, current as of not more than sixty days prior to the date of the meeting. SECTION 6 BOARD OF DIRECTORS 6.1 Number and Qualification. The affairs of the Association shall be governed by a Board of Directors. MPLS-Word 129290.1 4 a. During the Declarant Control Period, the Board shall consist of three persons designated by Declarant from time to time, subject to the rights of Owners to elect directors as set forth in Section 6.2.a. b. Following the termination of the Declarant Control Period, the Board shall be composed of five directors, a majority of which shall be Owners. The number of directors may thereafter be changed by a vote of the Owners for a future year or years. No two directors may be Owners of the same Unit. 6.2 Election and Term of Office. The election and terms of office of the members of the Board shall be as follows: a. The Owners other than Declarant shall have the right to nominate and elect not less than one -third of the directors at a meeting of the Owners which shall be held within sixty days following the conveyance by Declarant of fifty percent of the total number of Units authorized to be included in the common interest community. The term of office of any director elected pursuant to this Subsection shall terminate at the same time as the directors appointed by Declarant, as provided in Section 6.2.b. b. The terms of all directors appointed during the Declarant Control Period shall terminate upon the earliest of 0i) voluntary surrender of control by Declarant; (ii) an Association meeting which shall be held within sixty days after conveyance to Owners other than Declarant of seventy -five percent of the total number of Units authorized to be included in the corrunon interest community; or (iii) the date five years following the date of the first conveyance of a Unit to an Owner other than Declarant. 0. The first terns of office of the directors elected by the Owners immediately following the termination of the Declarant Control Period shall be one year for two of the directors and two years for three of the directors. Each term of office thereafter shall be two years and shall expire upon the election of a successor director at the appropriate annual meeting of the Owners; provided, that a director shall continue in office until a successor is elected. A number of nominees equal to the number of vacancies, and receiving the greatest numbers of votes, shall be elected, notwithstanding that one or more of them does not receive a majority of the votes cast. At the first election, the nominee or nominees receiving the greatest numbers of votes shall fill the longer terms. A director appointed or elected to fill an uncompleted term shall serve until the natural termination of that term, unless removed in accordance with these Bylaws. There is no cumulative voting for directors. 6.3 Nominations. Except for directors appointed by Declarant, and upon termination of the Declarant Control Period, nominations for election to the Board at each subsequent annual meeting may be made by the Board, a nominating committee appointed by . the Board or an Owner. If appointed, the nominating committee shall consist of at least one Board member, and other Owners who are representative of the general membership of the Association, and shall MPLS-Word 129290.1 Jr establish fair and reasonable procedures for the submission of nominations. All nominations shall be consistent with the requirements of this Section 6, and shall be made only with the consent of the nominee. 6.4 Powers. The Board shall have all powers necessary for the administration of the affairs of the Association, and shall exercise for the Association all powers and authority vested in or delegated to the Association (and not expressly prohibited or reserved to the Owners) by law or by the Governing Documents. The powers of the Board shall include, without limitation, the power to: a. adopt, amend and revoke Rules and Regulations not inconsistent with the Governing Documents, as follows: (i) regulating the use of the Common Elements; (ii) regulating the use of the Units, and the conduct of Owners and Occupants, which may jeopardize the health, safety or welfare of other Owners and Occupants, which involves noise or other disturbing activity, or which may damage the Common Elements or other Units; (iii) regulating or prohibiting animals; (iv) regulating changes in the appearance of the Common Elements and conduct which may damage the Property; (v) regulating the exterior appearance of the Property, including, for example, decks, patios and signs and other displays visible from outside the Unit; (vi) implementing the Governing Documents, and exercising the powers granted by this Section; and (vii) otherwise facilitating the operation of the Property; b. adopt and amend budgets for revenues, expenditures and reserves, levy and collect Assessments (subject to Section 6 of the Declaration), and foreclose Assessment liens incidental to its collection efforts; c. hire and discharge managing agents and other employees, agents and independent contractors; d. institute, defend or intervene in litigation or administrative proceedings (i) in its own name on behalf of itself or two or more Owners on matters affecting the Common Elements or other matters affecting the Property or the Association, or (ii) with the consent of the Owners of the affected Units, on matters affecting only those Units; e. make contracts and incur liabilities; f. regulate the use, maintenance, repair, replacement and modification of the Common Elements and the Units; g. cause improvements to be made as a part of the Common Elements; h. acquire, hold, encumber and convey in its own name any right, title or interest to real estate or personal property, subject to the requirements of the Act for the conveyance or encumbrance of the Common Elements; MPLS-Word 129290.1 6 grant easements, leases and licenses through, over and under the Common Elements, for public and private roadways, utilities and other public purposes, and for public and private cable, internet, satellite and other electronic communications systems, and to grant other easements, leases and licenses through, over or under the Common Elements as authorized by the Act or with approval by a majority vote of the Owners other than Declarant; impose and receive any payments, fees or charges for services provided to Owners; k. impose charges for late payment of Assessments and, after notice and an opportunity to be heard, levy reasonable fines for violations of the Governing Documents, the Rules and Regulations or the Act; borrow money, and encumber or pledge the assets of the Association as security therefor; provided, that any borrowings in any twelve month period which exceed, in aggregate, twenty percent of the Association's then current annual budget, shall require approval by a vote of the Owners other than Declarant; m. impose reasonable charges for the review, preparation and recording of amendments to the Governing Documents, resale disclosure certificates required by Section 51513.4-107 of the Act, statements of unpaid Assessments, or furnishing copies of Association records; n. provide for the indemnification of its officers, directors and committee members, and maintain directors' and officers' liability insurance; 0. provide for reasonable procedures governing the conduct of meetings and the election of directors; P. appoint, regulate and dissolve committees; and q. exercise any other powers conferred by law or the Governing Documents, or which are necessary and proper for the governance of the Association. 6.5 Meetings and Notices. An annual meeting of the Board shall be held promptly following each annual meeting of the Owners. At each annual meeting of the Board, the officers of the Association shall be elected. a. Regular meetings of the Board shall be held at least on a quarterly basis, at such times as may be fixed from time to time by a majority of the directors. A schedule, or any amended schedule, of the regular meetings shall be provided to the directors, and posted or published for the information of Owners, to the extent required by Section 6.5.e. b. Special meetings of the Board shall be held when called (i) by the President, or (ii) by the Secretary within ten days following the written request of a majority of the directors. Notice of any special meeting shall be given to each director not MPLS-Word 129290.1 7 less than three days in advance thereof, subject to Section 6.5.c. Notice to a director shall be deemed to be given when deposited in the United States mail postage prepaid to the Unit address of such director, or when personally delivered, orally or in writing, by a representative of the Board. 0. Any director may at any time waive notice of any meeting of the Board orally, in writing, or by attendance at the meeting. If all the directors are present at a meeting of the Board, no notice shall be required, and any business may be transacted at such meeting. d. A conference among directors by a means of communication through which all directors can simultaneously hear each other during the conference is a Board meeting, if (i) the same notice is given for the conference as would be required for a meeting, and (ii) the number of directors participating in the conference is a quorum, Participation in a meeting by this means is personal presence at the meeting, 0. Except as otherwise provided in this Section or by law, meetings of the Board must be open to the Owners. To the extent practicable, the Board shall give reasonable notice to the Owners of the date, time, and place of a Board meeting. If the date, time and place of meetings are provided for in the Governing Documents, announced at a previous meeting of the Board, posted in a location accessible to the Owners and designated by the Board from time to time, or if an emergency requires immediate consideration of a matter by the Board, notice is not required. "Notice" has the meaning given in Section 11.1. Notwithstanding the foregoing, meetings may be closed at the discretion of the Board to discuss the following: (1) personnel matters (2) pending or potential litigation, arbitration or other potentially adversarial proceedings between Owners, between the Board or Association and Owners, or other matters in which any Owner may have an adversarial interest, if the Board determines that closing the meeting is necessary to discuss strategy or to otherwise protect the position of the Board or Association or the privacy of an Owner or Occupant; or criminal activity arising within the common interest community if the Board determines that closing the meeting is necessary to protect the privacy of the victim or that opening the meeting would jeopardize investigation of the activity. (3) MPLS -Word 129290,1 8 The minutes of and the documentation discussed or submitted at such closed meeting may be kept confidential and need not be made available for review or copying pursuant to Section 8.5. Nothing in this Section imposes a duty on the Board to provide special facilities for meetings. The failure to give notice as required by this Section shall not invalidate the Board meeting or any action taken at the meeting, but shall not impair the Owners' rights to exercise other remedies against the directors. 6.6 Quorum and Voting. A majority of the directors constitutes a quorum for the transaction of business at any meeting of the Board. A quorum, once established, continues to exist, regardless of the subsequent departure of any director. Bach director has one vote. The vote of a majority of the directors present at any meeting at which a quorum is present is sufficient to adopt any action. Proxies are not permitted. 6.7 Action Taken Without a Meeting. The Board shall have the right to take any action in the absence of a meeting which it could take at a meeting when authorized in a writing signed by all the directors; provided, that a copy of the proposed written action is given to all directors for review prior to its signing, 6.8 Vacancies. A vacancy on the Board due to resignation, or death or some other involuntary event which renders a director physically or mentally unable to serve, shall be filled by a person elected within thirty days following the occurrence of the vacancy by a majority vote of the remaining directors, regardless of their number. Each person so elected shall serve out the term vacated. 6.9 Removal, A director may be removed from the Board, with or without cause, by a majority vote at any annual or special meeting of the Owners; provided, (i) that the notice of the meeting at which removal is to be considered states such purpose; (ii) that the director to be removed has a right to be heard at the meeting; and (iii) that a new director is elected at the meeting by the Owners to fill the vacant position caused by the removal. A director may also be removed by the Board if such director (i) has more than two unexcused absences from Board meetings and/or Owners meetings during any twelve month period, or (ii) is more than sixty days past due with respect to the payment of Assessments levied against the director's Unit. Vacancies created by removal under this Section shall be filled by the vote of the Owners as previously provided in this Section. 6.10 Compensation. Except as authorized by a vote of the Owners at a meeting thereof, the directors shall receive no compensation for their services in such capacity. Directors may be reimbursed for out -of- pocket expenses incurred in the performance of their duties. A director or an entity in which the director has an interest may, upon approval by the Board, be reasonably compensated under a contract for goods and services furnished to the Association in a capacity other than as a director; provided (i) that the contract is approved by a majority vote of the Board, excluding the interested director, and (ii) that the director's interest is disclosed to the Board prior to approval. MPLS -Word 129290.1 9 6.11 Fidelity Bond. Fidelity bonds or insurance coverage for unlawful taking of Association funds shall be obtained and maintained as provided in the Declaration on all directors and officers authorized to handle the Association's funds or other monetary assets. MPLS -Word 129290.1 SECTION 7 OFFICERS 7.1 Principal Officers. The principal officers of the Association shall be a President, a Vice President, a Secretary and a Treasurer, all of whom shall be elected by the directors. The Board may from time to time elect such other officers and designate their duties as in their judgment may be necessary to manage the affairs of the Association. A person may hold more than one office simultaneously, except those of President and Vice President. Only the President and Vice President must be members of the Board. Owners of the same Unit may not simultaneously serve as officers of the Association, unless unanimously elected by the Board. 7.2 Election. The officers of the Association shall be elected annually by the Board at its annual meeting and shall hold office at the pleasure of the Board. 7.3 Removal. Upon an affirmative vote of a majority of the members of the Board, any officer may be removed, with or without cause, and a successor elected, at any regular meeting of the Board, or at any special meeting of the Board called for that purpose. 7.4 President. The President shall be the chief executive officer of the Association, and shall preside at all meetings of the Board and the Association. The President shall have all of the powers and duties which are customarily vested in the office of president of a corporation, including without limitation the duty to supervise all other officers and to execute all contracts and similar obligations on behalf of the Association. The President shall have such other duties as may fxorn time to time be prescribed by the Board. 7.5 Vice President. The Vice President shall take the place of the President and perform the duties of the office whenever the President shall be absent or unable to act. The Vice President shall also perform such other duties as shall from time to time be prescribed by the Board. 7.6 Secretary. The Secretary is responsible for recording the minutes of all meetings of the Board and the Association. The Secretary shall be responsible for keeping the books and records of the Association, and shall give all notices required by the Governing Documents or the Act unless directed otherwise by the Board. The Board may delegate the Secretary's administrative functions to a managing agent; provided, that such delegation shall not relieve the Secretary of the ultimate responsibility for the Secretary's duties, 7,7 Treasurer. The Treasurer is responsible for all financial assets of the Association, and shall be covered by a bond or insurance in such sum and with such companies as the Board may require. The Treasurer shall 0i) be responsible for keeping the Association's financial books, Assessment rolls and accounts; (ii) cause an annual financial report to be prepared, subject to review by the Association's accountants; (iii) cause the books of the Association to be 10 kept in accordance with generally accepted accounting practices and shall submit them to the Board for its examination upon request; (iv) cause all moneys and other monetary assets of the Association to be deposited in the name of or to the credit of the Association in depositories designated by the Board; (v) cause the proper obligations of the Association to be paid when due; and (vi) perform all other duties incident to the office of Treasurer. The Board may delegate the Treasurer's administrative functions to a managing agent; provided, that such delegation shall not relieve the Treasurer of the ultimate responsibility for the Treasurer's duties. 7.8 Compensation. Except as authorized by a vote of the Owners at a meeting thereof, officers shall receive no compensation for their services in such capacity. Officers may be reimbursed for out-of-pocket expenses incurred in the performance of their duties. An officer or an entity in which the officer has an interest may be reasonably compensated under a contract for goods and services furnished to the Association in a capacity other than as an officer; provided (i) that the contract is approved by a majority vote of the Board, excluding the interested party, and (ii) that the officer's interest is disclosed to the Board prior to approval. MPLS -Word 129290.1 SECTION 8 OPERATION OF TIIE PROPERTY 8.1 Assessment Procedures. The Board appointed by the Declarant shall annually prepare a budget of Common Expenses for the Association, but may elect to defer the levying of the first Assessment, in which case Declarant shall pay all operating expenses of the common interest community and shall fund the replacement reserve component of the Common Expenses as required by Section 515B.3 -115 (b) of the Act, until the first Assessment is levied. Following the termination of the Declarant Control Period, the Board shall annually prepare a budget of Common Expenses for the Association and assess such Common Expenses against the Units according to their respective Common Expense obligations as set forth in the Declaration. a. Subject to any limitations contained in Section 6 of the Declaration, the Board shall fix the amount of the annual Assessment against each Unit, levy the Assessment and advise the Owners in writing of the Assessment at least thirty days prior to the beginning of the Association's fiscal year when the first Assessment installment shall be due. The failure of the Board to timely levy an annual Assessment shall not relieve the Owners of their obligation to continue paying Assessment installments in the amount currently levied, as well as any increases subsequently levied. b. Subject to any limitations contained in Section 6 of the Declaration, the Board may amend the budget and Assessments, or levy a special Assessment, at any time. The levy shall be deemed to occur upon the date specified in the resolution which fixes the Assessment. 0. The Board may (or must in certain cases) levy limited Assessments against only certain Units under Section 6.4 of the Declaration. Such Assessments may be included in the annual Assessments levied against the affected Units or may be levied separately during the year. Such Assessments are not annual or special 11 d. The annual budget shall include a general operating reserve, and an adequate reserve fund for replacement of the Common Elements and any parts of the Units that must be replaced by the Association on a periodic basis. e. The Association shall furnish copies of each budget on which the Assessment is based to an Owner or to any Eligible Mortgagee, upon request of such Person. 8.2 Payment of Assessments. Annual Assessments shall be due and payable in monthly or quarterly installments, as established by the Board, in advance on the first day of each month of the year or other period for which the Assessments are made, and special Assessments or limited Assessments shall be due when designated by the Board. Except as provided in the Declaration, all Owners shall be absolutely and unconditionally obligated to pay the Assessments and no Owner or Occupant shall have any right of withholding, offset or deduction against the Association with respect to any Assessments, late charges, interest or costs, regardless of any claims alleged against the Association or its officers or directors. Any rights or claims alleged by an Owner may be pursued only by separate action. 8.3 Default in Pa anent of Assessments. If any Owner does not make payment on or before the date when any Assessment or installment thereof is due, subject to such grace periods as may be established, the Board may assess, and the Owner shall be obligated to pay, a late charge as provided in the Declaration for each such unpaid Assessment or installment thereof, together with all expenses, including reasonable attorneys' fees and other professional fees and costs, incurred by the Board in collecting any such unpaid Assessment. a. If there is a default of more than thirty days in payment of any Assessment, the Board may accelerate any remaining installments of the Assessment upon prior written notice thereof to the Owner, as provided in the Declaration, and the entire unpaid balance of the Assessment and late charges shall become due and payable upon the date stated in the notice unless all past due amounts, late charges, fines, reasonable attorneys' and other professional fees and costs incurred by the Board, are paid prior to said date. b. The Board shall use its best efforts to collect all Assessments, together with any charges, attorneys' fees and other professional fees and costs or expenses relating to the collection thereof. In addition, the Board shall use its best efforts to recover any and all collection or contingency fees or costs charged to the Association by a collection agency or other Person acting on behalf of the Association in collecting any unpaid Assessments. c. Upon written request of an Owner or an Eligible Mortgagee of such Unit, notice of a default of more than thirty days in payment of any Assessment or installment thereof or any other default in the performance of obligations by the Owner shall be given in writing to such Owner or Eligible Mortgagee. MPLS-Word 129290.1 Assessments within the meaning of the Declaration or of these Bylaws, and are not subject to any limitations on those Assessments. 12 MPLS-Word 129290.1 d. The rights and remedies referred to herein shall not limit the remedies available to the Association under the Declaration or by law. 8.4 Foreclosure of Liens for Unpaid Assessments. The Association has the right to foreclose a lien against a Unit for Assessments imposed by the Association, as more fully described in the Declaration and the Act. 8.5 Records. The Board shall cause to be kept at the registered office of the Association, and at such other place as the Board may determine, records of the actions of the Board, minutes of the meetings of the Board, minutes of the meetings of the Owners, names of the Owners and Eligible Mortgagees, and detailed and accurate records of the receipts and expenditures of the Association. With the exception of records that may be privileged information, all Association records, including receipts and expenditures and any vouchers authorizing payments, shall be available for examination by the Owners and the Eligible Mortgagees upon reasonable notice and during normal business hours. Separate accounts shall be maintained for each Unit setting forth the amount of the Assessments against the Unit, the date when due, the amount paid thereon and the balance remaining unpaid. 8.6 Financial Review. The Board shall cause the financial records of the Association to be "reviewed" by an independent certified public accountant on an annual basis, pursuant to the requirements of Section 515B.3-121 of the Act. The review requirement may be waived, on an annual basis, by the vote of Owners holding at least thirty percent of the total votes in the Association; however, the Board may require the review or an audit notwithstanding a waiver vote. The waiver must be approved prior to sixty days after the end of the Association's fiscal year. A copy of the Association's financial statements shall be delivered to all Members within one hundred eighty days after the end of the Association's fiscal year, as required by the Act, 8.7 Enforcement of obligations. All Owners and Occupants and their guests are obligated and bound to observe the provisions of the Governing Documents, the Rules and Regulations and the Act. The Association may impose any or all of the charges, sanctions and remedies authorized by the Governing Documents, the Rules and Regulations or by law to enforce and implement its rights and to otherwise enable it to manage and operate the Association. SECTION 9 AMENDMENTS These Bylaws may be amended, and the amendment shall be effective, upon the satisfaction of the following conditions: 9.1 Approval. The amendment must be approved by Owners who have authority to cast in excess of fifty percent of the total votes in the Association, in writing or at a duly held meeting of the Owners; subject to any approval rights of (i) Eligible Mortgagees, or (ii) Declarant, as and if provided in the Declaration. 13 9.2 Notice. A copy of the proposed amendment and, if a meeting is to be held, notice of such meeting, shall be mailed by U.S. mail, or hand delivered, to all Owners authorized to cast votes. 9.3 Effective Date. The amendment shall be effective on the date of approval by the required parties and need not be recorded. Board. MPLS -word 129290.1 SECTION 10 INDEMNIFICATION The Association shall, to the extent the alleged liability is not covered by insurance, indemnify every individual acting in any official capacity on behalf of the Association, pursuant to the provisions of Minnesota Statutes Section 317A.521. SECTION 11 MISCELLANEOUS 11.1 Notices. Unless specifically provided otherwise in the Act, the Declaration or these Bylaws, all notices required to be given by or to the Association, the Board, the Association officers or the Owners or Occupants shall be in writing and shall be effective upon hand delivery, or upon mailing if properly addressed with postage prepaid and deposited in the United States mail; except that registrations pursuant to Section 2.2 shall be effective upon receipt by the Association. 11.2 Severability. The invalidity or unenforceability of any part of these Bylaws shall not impair or affect in any manner the validity, enforceability or effect of the balance of these Bylaws. 11.3 Captions. The captions herein are inserted only as a matter of convenience and for reference and in no way limit or proscribe the scope of these Bylaws or the intent of any provision hereof. 11.4 Conflicts in Documents. In the event of any conflict among the provisions of the Act, the Declaration, these Bylaws or the Rules and Regulations, the Act shall control unless it permits the documents to control. As among the Declaration, these Bylaws and Rules and Regulations, the Declaration shall control, and as between these Bylaws and the Rules and Regulations, these Bylaws shall control. 11.5 Waiver. No restriction, condition, obligation or provision contained in these Bylaws shall be deemed to have been abrogated or waived by reason of any failure to enforce the same, irrespective of the number of violations or breaches thereof which may occur. 11.6 No Corporate Seal. The Association shall have no corporate seal. 11.7 Fiscal Year. The fiscal year of the Association shall be as determined by the 14 The undersigned certifies that these Bylaws were adopted by the first Board of Directors of Pine Grove Gardens Association, a Minnesota nonprofit corporation, effective as of the date hereof. Dated: MPLS -Word 129290.1 Secretary Pine Grove Gardens Association 15