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07-08-91 agenda SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY MEETING JULY $, 1991 6:15 P.M. COUNCIL CHAMBERS AGENDA CALL TO ORDER 1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT. ON THE AGENDA 2. CONSIDERATION OF AGREEMENTS REGARDING ESTABLISHMENT AND PRESERVATION OF PARKING AND ACCESS RIGHTS FOR HUB EAST, HUB WEST AND KFC HRA LETTER NO. 20 3. CONSIDERATION OF RESOLUTION AUTHORIZING ACQUISITION OF PROPERTY BY EMINENT DOMAIN, HUB WEST HRA LETTER N0. 21 ADJOURNMENT Housing and Redevelopment Authority HRA Letter No. 21 Agenda July 8, 1991 Issue Statement• Adoption of a resolution authorizing the acquisition of land by eminent domain, Hub West. Background• Adoption of the attached resolution is necessary to assure that the HRA is capable of conveying to Bradley (the Hub West redeveloper) all the land the HRA intended to convey and all the land Bradley has planned to utilize as part of the Hub West redevelopment. On November 19, 1990, the HRA adopted Resolution No. 405. That resolution authorized the acquisition of all property in Hub West by eminent domain. However, subsequent title work by a surveyor and attorneys for Bradley and their lenders as well as HRA legal counsel concluded that, over the years, errors of omission were made in the legal description of the properties. Four areas of land have apparently inadvertently been excluded from the legal descriptions. For the purpose of this letter, the parcels have collectively been labeled as "gaps". Attached to the resolution is Exhibit A which contains a legal description of the gaps. Following the legals is a map which indicates the location of the gaps. Recommended Motion: Adopt the attached resolution authorizing the acquisition of the gap parcels by eminent domain. Basis of Recommendation: 1. It was the intent of the HRA in Resolution No. 405 to include these parcels in the eminent domain proceeding. 2. This action will not increase the purchase price to the HRA on the sale prior to Bradley. 3. The redevelopment cannot proceed without adoption of this resolution. Alternative Recommendation: 1. Not approve the resolution. 2. Delay action on the resolution. Discussion/Decision Mode: The HRA is scheduled to take title and possession to Hub West property (except KFC) on July 10, 1991. This resolution must be adopted prior to July 10, 1991 to assure that title and possession of all the appropriate property passes to the HRA. (The special meeting of the HRA scheduled for July 22 at 6:15 p.m. will include a public hearing requesting authorization to convey the gap parcels to Bradley.) Respectfu y submitted, James D Prosser Execu 've Director JDP:cak HRA RESOLUTION NO. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING THE ACQUISITION OF LAND BY EMINENT DOMAIN AND AUTHORIZING THE OBTAINING OF TITLE AND POSSESSION IN ACCORDANCE WITH MINNESOTA STATUTES SECTION 117.042 WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota ("HRA") approved a redevelopment plan for an urban renewal project for the "Lyndale/Hub/Nicollet Commercial Improvement Program" (the "Plan") on October 15, 1975; and WHEREAS, the City Council of Richfield, Minnesota approved the Plan on November 24, 1975; and WHEREAS, the Plan has subsequently been amended from time to time; and WHEREAS, the Plan designated certain properties for acquisition by the HRA; and WHEREAS, gaps in certain legal descriptions have recently been discovered; and WHEREAS, it has been determined that the acquisition of the properties legally described on Exhibit A hereto ("Subject Properties") is necessary to implement the Plan and to carry out the purposes of the Plan; and WHEREAS, the Subject Properties have been designated for acquisition by a Modification to the City of Richfield's Tax Increment Financing Plan; WHEREAS, the acquisition and subsequent sale or lease of the Subject Properties to a private developer for development is consistent with the stated objectives of the Plan; NOW, THEREFORE, be it resolved by the Richfield Housing and Redevelopment Authority that: 1. In furtherance of the objectives of Minn. Stat., Ch. 469 and the Plan, the HRA hereby finds that the acquisition of fee simple absolute title to the Subject Properties through and by the exercise of the power of eminent domain is necessary and appropriate in the public interest, and for the public purpose of redevelopment and as such is authorized pursuant to Minn. Stat., Ch. 469. 2. The officers and employees of the HRA are hereby authorized to commence and to do all things and take such actions as are necessary, prosecute to completion, on behalf and in the name of the HRA, an action in eminent domain for the purpose of acquiring fee simple absolute title to the Subject Properties. 3. The HRA further finds that it is necessary in order to carry out the above-stated purposes and objectives to proceed without delay to obtain title to and possession of the Subject Properties of the earliest possible date and prior to the award of the court appointed commissioners in condemnation, all in the manner provided in Minn. Stat., Section 117.042. 4. The HRA hereby authorizes the officers .and employees of the HRA to undertake and do all things necessary to secure fee simple title to and possession of the Subject Properties in accordance with the procedures and requirements contained in Minn. Stat., Section 117.042 at the earliest date therein provided. Passed and adopted by the Housing and Redevelopment Authority in and for the City of Richfield this 8th day of July, 1991. Thomas E. Harms, Chairperson ATTEST: Joan Helmberger, Secretary EXHIBIT A Parcel Identification: Parcel Aii Legal Description: All that part of Lot 3, Block 1, Richfield Hub Superblock, as platted and of record in the office of the County Recorder, Hennepin County, Minnesota, lying Easterly of the following described line: Commencing at the Southwest corner of the Southeast Quarter of the Northwest Quarter of Section 27, Township 28 North, Range 24 West; thence East 25 feet along the South line of said Southeast Quarter of the Northwest Quarter; thence North parallel with the West line of the said Southeast Quarter of the Northwest Quarter 660 feet; thence East along a line drawn parallel with the North line of the South 53-1/3 rods of the said Southeast Quarter of the Northwest Quarter as measured perpendicular to the said North line a distance of 303.7 feet to the point of beginning of the line to be described; thence South 660 feet to a point in the South line of the said Southeast Quarter of the Northwest Quarter which is 327.90 feet East of the point of commencement and there terminating. Parcel Identification: Parcel D Legal Description: That part of the Southeast Quarter of the Northwest Quarter of Section 27, Township 28, Range 24, Hennepin County, described as follows: Commencing at the intersection of the Southerly extension of the Westerly line of Lot 3, Block 1, Richfield Hub Superblock, as platted and of record in the office of the County Recorder and the Southerly line of said Southeast Quarter of the Northwest Quarter; thence North 00 degrees 20 minutes 18 seconds East along said Southerly extension, a distance of 183.00 feet to the most Westerly-Southwest corner of said Lot 3; thence North 89 degrees 59 minutes 52 seconds East along the Southerly line of said Lot 3, a distance of 37.24 feet to the intersection with a line drawn parallel with and 72.90 feet Easterly of as measured perpendicular to the Westerly line of said Southeast Quarter of the Northwest Quarter said intersection being the actual point of beginning; thence continue North 89 degrees 59 minutes 52 seconds East, a distance of 10.89 feet to a Westerly line of said Lot 3; thence South 00 degrees ~ 25 minutes 38 seconds West along said Westerly line 33 feet to the Southerly line of said Lot 3; thence Westerly along the extension Westerly o Lot 3 to its intersectio and 72.90 feet Easterly Southeast Quarter of the along said parallel line Parcel Identification: Parcel E Legal Description: f the said Southerly line of n with said line drawn parallel with of said Westerly line of said Northwest Quarter; thence Northerly to the point of beginning. The Westerly 15 feet of the following described property: All that part of the Southeast Quarter of the Northwest Quarter of Section 27, Township 28, Range 24, Hennepin County, described as follows: Beginning at the most Easterly Southwest corner of Lot 3, Block 1, Richfield Hub Superblock, according to the recorded plat thereof; thence North 89 degrees 59 minutes 52 seconds East along the Southerly line of said Lot 3 to the intersection with a line drawn parallel with and 282.00 feet Easterly of, as measured perpendicular to the Southerly extension of the most Westerly line of said Lot 3; thence South 0 degrees 20 minutes 18 seconds West along said parallel line to the North line of the South 141.58 feet of said Southeast quarter of the Northwest Quarter; thence South 89 degrees 59 minutes 52 seconds West along said North line of the South 141.56 feet to its intersection with a line drawn parallel with and 72.90 feet Easterly of as measured perpendicular to the Westerly line of said Southeast Quarter of the Northwest Quarter; thence Northerly along said parallel line to its intersection with the extension Westerly of the Southerly line of said Lot 3; thence Easterly along the extension Westerly of the said Southerly line to the point of beginning. Parcel Identification: Parcel H Legal Description: All except the South 43.00 feet of the Southeast Quarter of the Northwest Quarter of Section 27, Township 28, Range 24, Hennepin County, lying Southerly of the South line of Lot 3, Block 1, Richfield Hub Superblock, as platted and of record in the office of the County Recorder, lying Westerly of the West line of said Lot 2, said Block 1 and lying Easterly of the following described line: Commencing at the Southwest corner of said Southeast Quarter of the Northwest Quarter; thence Easterly along the Southerly line of said Southeast Quarter of the Northwest Quarter, a distance of 25.00 feet; thence Northerly, parallel with the Westerly line of said Southeast Quarter of the Northwest Quarter, a distance of 660.00 feet; thence Easterly, parallel with the North line "- of the South 53-1/3 rods of said Southeast Quarter of the Northwest Quarter, a distance of 303.70 feet to the point of beginning of the line to be described; thence Southerly to a point on said Southerly line, distant 327.90 feet Easterly of the point of commencement and there terminating. L E C E N D Pfr Allal with thf North Ima of IM $oulh Parcels To Be Condemned: y ~0 303.7 " m m s s W 65TH STREET :. ..~yr ~~~~o~';'~~°.'~ - , N84 58 52E 298.00(PLAT) 299.45(MEAS.) ~ ..- ` E ~ ~ . • 3a.oo ` ~. . , +~ !; i~ yy `bF f N s y ~ ' ~' r L, - J' QP - -~ o 4r / ,~ , A^ y ~o n+' ry: f ?a . ~ ~.. ' • h B9 21 as~E 15A.31 ~-- - - ~ ' $ff Df A il ~ 1^ ~ _._ ~ ~~ ti ?s r ~•~~ OYth lint ihd 113 f[If fI SIOh + f r "~ $B9 29 t9 E ? 1 Block J. RICMfIELD PLAZ iNQ'S ~ 1 U B S I J •~ ?6-F 'y` ~ '` e / 11 - a ^• r ~ I'`J ~.~ ~. ?! eyfd Propfrty lint W ~ N /~ N e A N a - .~ ~ ~ ~' ,yi .. . t O m .Q' O. 1 . ~i _ .a ~~ . Sri , - n b < _ r' ~ rxr-' - , .... a < 2 0Q ,. ., - :: , Qa _ , o ,. - .• :. ,. , a YL OI I , 0 ~ ~ , ~ f N f! _ . LLA t _ ' • ~ _ i ~ • O 3 _ ~ ryfd ProPfrry hnf ~ N p : / ~ 2 , o ~ %` ~ ,~ ~ , A . : ~ ~N ~ a ', ' t 1 j l ~ _ F oa th hnf of Lot 3. B $o • ~ ~ • • = , _ : ~ ~ `N89p59'S2"E„ 282.0 • N ~ ~ , + •~ . a +'ST000O 2 I~BTORT• -^ ~ ° 1: F ' K C ._~-, ~ ~ ~I~a " ~.~ ~w~p~ 'j ' 6 ~ ;~\ s ~ . . . .: f. tea ~I fifes J , a-Q ~.J "N ° ~ - C O ~GA e t- ~ - m p ~f' ,~~ .~' _. `y~o <. - N~ 20' rs-E _ . A. ~ -;• .[ I of ;°'~~. • ~ ~ a ~ N 89°59'52' E e ,~R 'O ,, ~ ~ ~ _ e ••• _ •• '~~ ` . _ t ._ - - _ _ Housing and Redevelopment Authority HRA Letter No. 20 Agenda July 8, 1991 Issue Statement• Approval of agreements regarding the establishment and preservation of parking and access rights for Hub East, Hub West and KFC. Background• The HRA has recently approved a Contract for Private Development with Bradley Real Estate Trust. Bradley is to be the owner of Hub West (with the exception of KFC). They currently own Hub East. A provision in the Contract calls for the HRA to approve recordable agreements which establish and preserve reciprocal parking and access rights within Hub West, Hub East and KFC. Prior to approval by the HRA, the City Council was provided an opportunity to comment on the agreements which were prepared by Bradley's legal counsel. Following the review by the City Council and staff, the documents were revised. One of the revisions provides a stronger review role for the HRA, should the owners propose revisions to the agreements in the future. The two proposed final agreements are attached for your review; reciprocal easement agreement, and, the declaration of covenants and restrictions and grant of easements. The Reciprocal Easement Agreement The agreement governs the relationship between KFC and Bradley with respect to their property. Attached to the agreement is the legal description for the three sites; Exhibit A is a description of Hub East and Hub West, Exhibit B is a description of the KFC parcel, Exhibit C is a description of Hub West, and Exhibit D is a map showing the common area to which the easements apply. The major points of the agreement follow: ® Within the common area, the tenants, business vendors, customers and employees have free movement. They may enter as pedestrians or in vehicles. Vehicles may be parked by these people anywhere within the common area designated for parking. • These easements are enforceable by the property owners and the HRA. Substantial proposed modifications must be approved by the HRA. • Utilities needed to operate businesses may be located and maintained herein. Acceptable procedural rules are described for installation and maintenance. • Only temporary barriers may be constructed and only after agreement in writing amongst the parties. o Bradley is responsible for providing maintenance services including striping of the parking area as shown on the Exhibit C. Both parties pay a pro rated share of the maintenance cost based on building square footage. (When snow exceeds 1.5 inches in depth, it must be plowed within two hours). • KFC is solely responsible for the maintenance of its property outside the common area. s KFC and Bradley are responsible for claims due to injury and death on property they own and to hold the other party harmless from claims. • If one party fails to perform their obligation, the other party may perform that obligation and charge the cost to the defaulting party. • A portion of the parking designated on Exhibit C will be 30 minute parking only (note location between KFC and Rainbow). s The agreement continues regardless of the tenancies and ownership of the property. Declaration of Covenants The Declaration is to be signed by Bradley. It encompasses all property owned or to be owned by Bradley (excludes KFC) and binds not only Bradley to the agreement but any other parties who may take title to any portion of the property in the future. There are three parcels; (Exhibit A is a description of Hub East and West), US Swim is Exhibit A-1, Rainbow is Exhibit A-2 and Hub East is Exhibit A-3. • An easement is created across the area of the three parcels without buildings for parking, pedestrian and vehicular traffic. • Ingress and egress is guaranteed for passenger vehicles and delivery trucks. s These easements are enforceable by property owners and the HRA. Significant proposed modifications must be approved by the HRA. • Restrictions are placed on the installation of barriers which would impede movement of vehicles and pedestrians. Changes in the parking layout must be approved by the HRA. • Certain types of uses are prohibited on the three parcels so long as Rainbow is a tenant. These uses include a bowling alley, theater, and night club for example. Other grocery and food stores are also prohibited. o-The use and maintenance of a pylon sign is provided for. • Exterior site maintenance is the responsibility of the owner of each property, the majority of whom select a maintenance operator. Payment is based on building area. • Enforcement of the restrictions is provided for as well as insurance requirements. • Under certain conditions rebuilding is required if a building is damaged. • Other sections address a variety of legal issues. .Recommended Motion: The HRA adopt a motion approving the two agreements. Basis for Recommendation: 1. The Contract for Private Development approved by the HRA requires the agreements to be submitted to the City Council for review and comment. Comments were made at the June 24 meeting. 2. Staff finds the agreements to be acceptable following modifications. 3. The recording of the agreements will prevent future parking disagreements amongst the adjoining property owners. Alternative Recommendation: 1. Deny action. 2. Modify the agreement. Discussion/Decision Mode: To facilitate closing on July 10, approval of the agreements July 8 would be desirable. Respectfully submitted, Jam s Prosser Exe ive Director JDP:cak DRAFT 7/2/91 RECIPROCAL EASEMENT AGREEMENT THIS RECIPROCAL EASEMENT AGREEMENT ("AGREEMENT") is made as of July _, 1991, by and between the BRADLEY REAL ESTATE TRUST, a Massachusetts business trust (hereinafter referred to as "Bradley"), and KFC NATIONAL MANAGEMENT COMPANY, a Delaware corporation (hereinafter referred to as "KFC"), WITNESSETH: WHEREAS, Bradley is the fee owner of real property located in the City of Richfield, County of Hennepin, State of Minnesota, legally described on Exhibit A attached hereto (hereinafter referred to as "Parcel A"); and WHEREAS, KFC is the fee owner of real property located in the City of Richfield, County of Hennepin, State of Minnesota, legally described on Exhibit B attached hereto (hereinafter referred to as "Parcel B") (Parcels A and B being collectively referred to below as the "Parcels"); and WHEREAS, Bradley and KFC anticipate that Parcels A and B will be redeveloped, and in connection with such redevelopment Bradley has entered into a redevelopment. agreement' with the Housing and Redevelopment Authority of -the City of Richfield ("HRA"); and WHEREAS, Exhibit C hereto sets out the legal description of the portion of Parcel A referred to in this Agreement as "Parcel C"; and• WHEREAS, Bradley and KFC desire to address the flow of traffic between Parcels A and. B and set out reciprocal parking rights between Parcels A and B, all as set forth below in this Agreement; and WHEREAS, Exhibit D hereto sets out the current site plan of Parcels A and B, and the crosshatched area on such Exhibit D is hereinafter referred to as the "Common Area"; and WHEREAS, Bradley and KFC are desirous of setting forth their agreement with respect to the maintenance of the Common Area; NOW, THEREFORE, in consideration of the mutual agreements, covenants, and undertakings herein contained, the parties covenant and agree for themselves, their successors, and assigns, as follows: 1. Reciprocal Easement. Bradley and KFC grant to each other perpetual, nonexclusive easements over, upon and across their respective interests in the Common Area for the following purposes: (a) The parking of passenger vehicles and pedestrian and passenger vehicular traffic of the owners of all or part of Parcels A and B and their respective tenants and the tenants, employees, customers, licensees and invitees of any of such owners and their respective tenants. (b) The ingress and egress of any of the parties identified in subsection 1(a) above and their passenger vehicles to any and from any portion of Parcels A and B from and to any public streets adjacent thereto. -2- "~ (c) The ingress and egress of delivery and service trucks and vehicles to and from the buildings on Parcels A and B from and to the public streets adjacent to Parcels A and B for the delivery of goods, wares, merchandise and the rendition of services to the owners and/or occupants of such buildings. The easements contained in this Section run with the land, benefit and burden Parcels A and B and are enforceable by any owner of a Parcel or the HRA. Neither KFC nor Bradley will make any modification to this Section that materially modifies the scope or nature of the above easements without first obtaining the written consent of the HRA, which consent will not be unreasonably withheld, such obligations to run with the Parcels for the sole benefit of the 1-II2A and to be enforceable solely by the HRA. 2. Utility Easements. Bradley and KFC each shall have the right to install, maintain, repair, augment and/or modify utility lines, including but not limited to, sanitary sewers, storm sewers, water lines, gas lines, electric lines, and telephone lines on and under the Common Area; provided, however, that any party undertaking any such work on the Common Area which will interfere with the operation of the other party's Parcel shall (a) notify the other party in writing at least 10 days in advance, (b) perform the work as expeditiously as practicable and with the least practicable interference with traffic, (c) repair the portion of the Common Area and any other property of the other party disturbed by the work to a condition at least as good as that existing prior to performance of the work, and (d) hold the other party harmless for damages to persons or property caused by the execution of the -3- work. The easements contained in this Section run with the land, benefit and burden Parcels A and B and are enforceable by any owner of either Parcel. 3. Barriers, Obstructions, Etc. No fences, barriers, or other obstructions shall be erected upon the Common Area, except as shown on Exhibit D or as otherwise permitted under this Agreement, so as to prevent the passage of vehicles or pedestrians or prevent the parking of vehicles except as may be agreed to in writing by the parties or such temporary barriers as may be erected from time to time for promotional activities or to prevent the accruing of public rights in the Common Area. The provisions of this Section run with the land, benefit and burden Parcels A and B and are enforceable by any owner of either Parcel. 4. Maintenance and Operation of Common Area. After the parking facilities on the Common Area are completed in connection with the redevelopment of Parcels A and B, the Common Area (including all parking areas and landscaping) shall be maintained, replaced, snowplowed, lit, secured, insured and cleaned ("Common Area Maintenance") by an operator ("Operator") selected by Bradley (which Operator may be Bradley); provided, however, that the Operator will not be responsible for clean-up or repair of the Common Area resulting from promotional activities or the construction, maintenance or replacement of buildings, which in each such case will be the responsibility of the owner of the Parcel to which such activities relate. The minimum standard for the Common Area, Maintenance will be the standard followed in other first class retail developments of comparable size in the Minneapolis/St. Paul metropolitan area -4- and in any event in compliance with all applicable laws, ordinances and regulations. With respect to snow removal, the Operator shall assure that any time the amount of snow exceeds 1 1 /2 inches that the Common Area is plowed within two hours and failure to so plow shall allow KFC to perform the snow plowing and charge the same to Bradley. The Operator will, on or before December 1 of each calendar year, submit to KFC a written estimated budget for the costs of Common Area Maintenance ("Common Area Maintenance Costs") for the following calendar year, along with computations of KFC's share of such estimated Common Area Operating Costs calculated in accordance with the provisions set forth in this .Section below. KFC will pay the Operator a share of such estimated Common Area Maintenance Costs equal to a fraction, the numerator of which is the total first floor leasable area (rounded to the nearest square foot) contained in the buildings on Parcel B and the denominator of which is the total first floor leasable area (rounded to the nearest square foot) contained in the buildings on both Parcels B and D. One twelfth of such share will be payable by KFC to the Operator on the first day of each month during the applicable calendar year. The Operator will determine the actual Common Area Operating Costs for such calendar year not later than 45 days following the end of such calendar year and the Operator will reimburse KFC, or KFC will reimburse the Operator, for KFC's share of the difference between the actual Common Area Operating Costs and the estimated Common Area Maintenance Costs. Within 30 days after receiving the written request of any party, the other party will certify to the Operator and such requesting party the amount of first floor area in each building -5- ~~ on its Parcel. If a party causes an as-built survey to be prepared regarding all or any portion of its Parcel, such party will promptly furnish a copy of such survey to the Operator for informational purposes only. The payment obligations of KFC under this Section run with the land, burden Parcel B and benefit Parcel C and are enforceable by any owner of Parcel Cand/or the Operator. The Operator or such owner of the Parcel C is granted a lien against Parcel B for the enforcement of KFC's payment obligations under this Section, which lien may be filed and foreclosed in the same manner as a mechanic's lien. KFC may not change or improve the portion of the Common Area included in Parcel B without the written consent of Bradley; provided, however, that KFC may make changes in the portion of the Common Area included in Parcel B that do not materially interfere with the easements granted in this Agreement or reduce the number of parking spaces in the portion of the Common Area included in Parcel B. Except as may be necessary in connection with the Common Area Maintenance, Bradley may not change or improve the portion of the Common Area included in Parcel C without the written consent of KFC (but such restriction shall not apply with respect to changes in the remaining portion of the Common Area included in Parcel A, as to which KFC's consent will not be required); provided, however, that Bradley may make changes in the portion of the Common Area included in Parcel C that do not materially interfere with the easements granted in this Agreement or reduce the number of parking spaces in the portion of the Common Area included in Parcel C. Neither KFC nor Bradley will make- any substantial change in the parking configurations -6- ~- contained in the Common Area, as shown on attached Exhibit D, without first obtaining the written consent of the HRA, which consent will not be unreasonably withheld, such obligations to run with the Property for the sole benefit of the H1aA and to be enforceable solely by the HRA. 5. Liability and IndemnitX. Bradley shall defend, indemnify, and save harmless KFC from all claims demands and actions for injury, death, or damaged property, including attorney's fees, occurring or resulting from occurrences upon Parcel A, and KFC shall so defend, indemnify, and save harmless Bradley with respect to Parcel B. Bradley and KFC shall each maintain at all times during the term of this Agreement comprehensive general liability insurance with respect to its own Parcel in amounts adequate to cover its obligations under this Agreement but in no event less than $1 million combined single limit coverage. 6. Performance of Obligations of Other Party If Bradley or KFC shall fail to perform any of its respective obligations under this Agreement after written notice and demand from the other and the lapse of a reasonable period of time after said notice for performance of said obligations, the demanding party, in addition to any other remedy permitted by law, shall have the right to perform the obligations of the other party in default, at the expense of the defaulting party. 7. Pam. The parking spaces in the portion of the Common Area designated on attached Exhibit D as "30-min. parking" shall be used only for cars parking for 30 minutes or less. Such spaces shall be designated by appropriate signs installed in such area by Bradley. -7- 8.Enforcement. a. Injunctive Relief. In the event of any violation or threatened violation of any of the terms, restrictions, or covenants provided herein, any person entitled to enforce this Agreement will have, in addition to the right to collect damages, the right to enjoin such violation or threatened violation in a court of competent jurisdiction. b. Attorneys' Fees. In the event that any suit is brought for the enforcement of any provision of this Agreement or is the result of any alleged breach thereof or is for the declaration of rights and duties hereunder, the successful party or parties to such suit shall be entitled to collect reasonable attorneys' fees from the losing party or parties, and any judgment or decree rendered shall include an award thereof. c. Breach Will Not Permit Termination. It is expressly agreed that no breach or violation of this Agreement will terminate this Agreement, but this limitation will not affect, in any manner, any other rights or remedies for any breach of this Declaration. d. Breach Will Not Defeat Mortgage. A breach or violation of any of the terms, covenants, and restrictions of this Agreement will not defeat or render invalid the lien of any first mortgage made in good faith and for value, but such terms, covenant or restriction will be binding on and effective against anyone whose title to the property or any portion of such is acquired by foreclosure or otherwise, but only from and after the date of such acquisition. -8- e. Remedies Cumulative. The specified remedies to which any person entitled to enforce this Agreement may resort under the terms of this Agreement are cumulative and are not intended to be exclusive of any other remedies or means of redress to which any person entitled to enforce this Agreement may be lawfully entitled in case of any breach or threatened breach of any provision of this Agreement. Failure to insist in any one or more cases upon the strict performance of any of the covenants of this Agreement or to exercise any remedy herein contained shall not be construed as a waiver or a relinquishment in the future of such covenant or remedy. 9. Duration. Except as otherwise expressly stated in this Agreement, each easement, covenant, and restriction contained herein will continue in full force and effect in perpetuity. 10. Not a Public Dedication. Nothing contained in this Agreement will be deemed to be a gift or dedication of any portion of the Property to the general public or for the general public or for any public purpose whatsoever, it being the intention that this Agreement will be strictly limited to and for the purposes expressed herein. 11. Severability. If any clause, sentence, or other portion of the terms, covenants, and restrictions of this Agreement becomes illegal, null, or void for any reason or be held so by any court of competent jurisdiction, the remaining portions will remain in full force and effect. 12. Mechanics Liens. It is expressly understood and agreed that no party will permit any mechanic's, materialman's, or other similar liens tb stand against -9- the Common Area in connection with any work performed by or at its request. Such party may bond against and contest the validity and the amount of such lien, but such party will immediately pay any judgment rendered with all proper costs and charges and will have the lien released at such party's expense. 13. Covenants Run With the Land. The terms of this Agreement and all easements granted hereunder run with the land and shall inure to the benefit of and be binding upon Parcels A and B to the extent set forth in this Agreement. 14. Dischar eg of Rights and Duties Upon Transfer. In the event of an assignment, transfer, or conveyance of the whole interest of any person or entity in and to any Parcel in which such person or entity has an interest, without retaining any beneficial interest other than under the terms of a mortgage without simultaneously acquiring a new interest on such Parcel by way of leasehold, life estate, or other possessory interest, then the powers, rights, and interest conferred on such person will be deemed assigned, transferred or conveyed to such transferee, assignee, or grantee; the obligations will be deemed assumed by such transferee, assignee, or grantee with interest so acquired; and the duties, obligations, and rights of the person so transferring the interest shall be discharged. Notwithstanding the foregoing, any mortgagee who takes title to a burdened property by foreclosure or deed in lieu of foreclosure shall be liable only for its acts from and after the date it acquires title. 16. Condemnation. In the event of condemnation by any duly constituted authority for a public or quasi public use of all or any part of a Parcel, that portion of -1a the award attributable to the value of any land within the Common Area so taken shall be payable only to the owner in fee thereof, and no claim thereon shall be made by the other party to this Agreement; provided, however, that this provision shall in no way affect any disposition of condemnation awards made in a lease between such owner and its tenants or in a mortgage between such owner and such owner's mortgagee; provided further, however, that such other party may file collateral claims with the condemning authority over and above the value of the land of the area so taken. The owner of the fee of each portion of the area so condemned shall promptly repair and restore the remaining portion of the area so owned by such owner as near as practicable to the condition of the same immediately prior to such condemnation and without contribution from any other owner, except to the extent that the proceeds of such award are insufficient to pay the cost of such restoration and repair. 16. Headings. The caption headings of the various sections of this Agreement are for convenience and identification only and shall not be deemed to limit or define the contents of their respective section. 17. Exhibits. Exhibits A, B and C attached hereto and referred to herein are a part of this Agreement. 18. Trustee Limitation. It is agreed that no trustee, shareholder, officer or agent of Bradley Real Estate Trust shall be personally liable under any of the agreements expressed herein or implied hereunder, or otherwise because of anything arising from or connected with this Agreement or the property to which it -11- relates, and all such claims shall be enforced and satisfied only against the property to which it relates and not in any case against the trustees, shareholders, officers or agents of Bradley Real Estate Trust or any of them or their successors individually. The provisions of this Section are applicable equally to any successor to the interest of Bradley Real Estate Trust that is a business trust or association. 19. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. IN WITNESS WHEREOF, the parties have hereunto set their hands on the day and year first above written. BRADLEY REAL ESTATE TRUST By: Its: KFC NATIONAL MANAGEMENT COMPANY By: Its: -12- ~' - STATE OF ) ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of ,1991, by the of Bradley Real Estate Trust, a Massachusetts business trust, on behalf of such business trust. Notary Public STATE OF COUNTY OF ss The foregoing instrument was acknowledged before me this day of 1991, by ,the Management Company, a Delaware corporation, on behalf of such corporation. Notary Public THIS INSTRUMENT DRAFTED BY AND WHEN RECORDED RETURN TO: Kenneth T. Tyra Dorsey & Whitney 2200 First Bank Place East Minneapolis, Minnesota 55402 -13- of KFC National EXHIBIT A PARCEL A Lot 3, Block 1, Richfield Hub Superblock according to the recorded plat thereof. Together with all that part of the SE 1/4 of the NW 1/4 of Section 27, Township 28, Range 24, Hennepin County described as follows: Beginning at the most northerly northwest corner of Lot 3, Block 1, Richfield Hub Superblock as platted and of record in the office of the County Recorder; thence South 00°-20'-18" West, assumed bearing, along the westerly line of said Lot 3, a distance of 142.11 feet; thence South 89°-56'-52" West, a distance of 30.00 feet, to the most westerly line of said Lot 3; thence North 00°-20'-18" East along the northerly extension of said most westerly line, a distance of 142.11 feet, to the westerly extension of the most northerly line of said Lot 3; thence along said westerly extension 30.00 feet to the point of beginning. Together with all that part of said SE 1/4 of the NW 1/4 described as follows: Commencing at the intersection of the southerly extension of the westerly line of said Lot 3, Block 1 and the southerly line of said SE 1/4 of the NW 1/4; thence North 0°-20' 18" East along said southerly extension a distance of 141.56 feet to the point of beginning; thence North 89°-59'-52" East parallel with said southerly line a distance of 282.00 feet; thence South 0°-20'18" West parallel with said southerly extension a distance of 71.56 feet; thence South 89°-59'-52" West parallel with said southerly line a distance of 15.00 feet; thence South 0°-20'-18" West parallel with said southerly extension a distance of 27.00 feet; thence North 89°-59'-52" East parallel with said southerly line a distance of 34.89 feet to the southerly extension of the westerly line of Lot 2 said- Block 1; thence North 0°-25'-38" East along said westerly line of Lot 2 and its southerly extension a distance of 107.00 feet to the southeast corner of said Lot 3;; thence South 89°-59'-52" West along the southerly line of said Lot 3 a distance of 253.99 feet to the most southerly southwest corner of said Lot 3; thence North 0°-25'-38" East a distance of 33.00 feet to the next southerly line~of said Lot 3; thence North 89°-59'-52" East a distance of 48.13 feet to the most westerly southwest corner of said Lot 3; thence South 0°-20'-18" West along said southerly extension of the westerly line of Lot 3 a distance of 41.44 feet to the point of beginning. AND: Tl~e North 254.85 feet of the most easterly 250 feet of Lot 2, Block 1, Richfield I-Iub Superblock, according to the plat thereof on file or of record in the office of the :Registrar of Titles in and for said County. Lot 2, Block 1; Richfield Iiub Superblock, according to tl~e plat thereof on file or of record in the office of the Registrar of Titles in and for said County, except the North 254.85 feet of'the most easterly 250 feet thereof. Together with tlu appurtenant easement filed July 2, 1974, as Document No. 1112596. EXHIBIT B PARCEL B That part of the Southeast Quarter of the Northwest Quarter of Section 27, Township 28, Range 24, described as follows: Cortmencing at the intersection of the centerline of the Minneapolis, Northfield and Southern Railway and the Southerly line of said Southeast Quarter of the Northwest Quarter; thence North 89°59'52" East, along said Southerly line, a distance of 25.00 feet; thence North 0°20'18" East, parallel with said centerline a distance of 43.00 feet to the point of beginning of the land to be described; thence continue North 0°20'18" East, along said parallel line a distance of 98.56 feet; thence North 89°59'52" East, parallel with said Southerly line, a distance of 282.00 feet; thence South 0°20'18" West, parallel with said centerline, a distance of 71.56 feet; thence South 89°59'52" West, parallel with said Southerly line, a distance of 15.000 feet; thence South 0°20'18" West parallel with said cen- terline, a distance of 27.00 feet; thence South 89°59'52" West, parallel with said Southerly line, a distance of 267.00 feet to the point of beginning. EXHIBIT C PARCEL C Lot 3, Block 1, RichSeld. Hub Superblock according to the recorded plat thereof. Together with all that part of the SE 1/4 of the NW 1/4 of Section 27, Township 28, Range 24, Hennepin County described as follows: Beginning at the most northerly northwest corner of Lot 3, Block 1, Richfield Hub Superblock as platted and of record in the office of the County Recorder; thence South 00°-20'-18" West, assumed bearing, along the westerly line of said Lot 3, a distance of 142.11 feet; thence South 89°-~6'-52" West, a distance of 30.00 feet, to the most westerly line of said Lot 3; thence North 00°-20'-18" East along the northerly extension of said most westerly line, a distance 'of 142.11 feet, to the westerly extension of the most northerly line of said Lot 3; thence along said westerly extension 30.00 feet to the point of beginning. Together with all that part of said SE 1/4 of the NW 1/4 described as follows: Commencing at the intersection of the southerly extension of the westerly line of said Lot 3, Block 1 and the southerly line of said SE 1/4 of the NW 1/4; thence North 0°-20'18" East along said southerly extension a distance of 141.56 feet to the point of beginning; thence North 89°-59'-52" East parallel with said southerly line a distance of 282.00 feet; thence South 0°-20'18" West parallel with said southerly extension a distance of 71.56 feet; thence South 89°-59'-52" West parallel with said southerly line a distance of 15.00 feet; thence South 0°-20'-18" West parallel with said southerly extension a distance of 27.00 feet; thence North 89°-59'-52" East parallel with said southerly line a distance of 34.89 feet to the southerly extension of the westerly line of Lot 2 said Block 1; thence North 0°-25'-38" East along said westerly line of Lot 2 and its southerly extension a distance of 107.00 feet to the southeast corner of said Lot 3;; thence South 89°-59'-52" West along the southerly line of said Lot 3 a distance of 253.99 feet to the most southerly southwest corner of said Lot 3; thence North 0°-25'-38" East a distance of 33.00 feet to the next southerly line of said Lot 3; thence North 89°•59'-52" East a distance of 48.13 feet to the most westerly southwest corner of said Lot 3; thence South 0°-20'-18" West along said southerly extension of, the westerly line of Lot 3 a distance of 41.44 feet to the point of beginning. I ~~ >~ ~~ • ~~~ ~~ F ~~ ~ i Mlmeapoils NonhAeld Southern Raltroad ' • ~ ~ .r . , ~. . •. . ~ . ~~ • . - N ~ N X m~={ ~.. EXHIBIT D COMMON AREA N -i g N DRAFT 7/2/91 DECLARATION. OF COVENANTS, RESTRICTIONS AND EASEMENTS This Declaration of Covenants, Restrictions and Easements ("Declaration") is made as of July ~ 1991, by BRADLEY REAL ESTATE TRUST, a Massachusetts business trust (hereinafter referred to as "Bradley"). BACKGROUND: A. Bradley is or will become the owner in fee of that certain real property in the City of Richfield, County of Hennepin, State of Minnesota, legally described on the attached Exhibit A (hereinafter referred to as the "Property"). B. The Property consists of three parcels, legally described on attached Exhibit A-1 (the "Fitness Center Parcel"), Exhibit A-2 (the "Hub West Parcel") and Exhibit A-3 (the "Hub East Parcel"). C. Certain improvements, including shopping center buildings, now exist on the Property. Bradley intends to redevelop the Hub West Parcel and the improvements on the Hub West Parcel as shown on the site plan attached to this Declaration as Exhibit B ("Site Plan"). In connection with such redevelopment, Bradley has entered into a redevelopment agreement with the Housing and Redevelopment Authority of the City of Richfield ("HRA"). D. A portion of the new building to be constructed by Bradley upon the Hub West Parcel has been leased by Bradley to Gateway Foods, Inc. pursuant to a - Shopping Center Lease dated as of July 2,1991 between Bradley, as Lessor, and Gateway Foods, as Lessee ("Gateway Lease"). E. Bradley desires to subject the Property to this Declaration in connection with such rehabilitation, certain financings of the Property and the leasing of certain of the improvements on the Fitness Center Parcel and the Hub West Parcel. DECLARATION: For valuable consideration, Bradley declares as follows: 1. Other Definitions. The following other definitions are used in this Declaration: a. Building Area. The total floor area, rounded to the nearest square foot, from time to time of the building(s) located on each Parcel, including any mezzanine or basement space used either for retail sales or for the storage of merchandise, as measured from the exterior faces of the exterior walls or store fronts and/or the center line of any common walls, but excluding any space used for building utilities or mechanical equipment. Within 30 days after receiving the written. request of the Operator, a Parcel Owner will certify to the Operator the amount of floor area applicable to each building on its Parcel. If any owner of a Parcel causes an as-built survey to be prepared regarding all or any portion of such Parcel, such owner will promptly furnish a copy of such survey to the Operator for informational purposes only. During any period of rebuilding, repairing, replacing -2- or reconstructing of a building, the floor area of that building will be deemed to be the same as existed prior to that period and upon completion thereof the Parcel Owner of the Parcel on which such building is located will cause a new determination of its floor area to be made in the manner described above and will promptly deliver written notice of such determination to the Operator. b. Common Area. "Common Area" means all areas of the Property, exclusive of the buildings on the Property. c. Operator. "Operator" means the operator of the Common Area selected pursuant to Section 7 of this Declaration. d. Parcel. "Parcel" means the Fitness Center Parcel, the Hub West Parcel or the Hub East Parcel. e. Parcel Owner. "Parcel Owner" means fee owner of a Parcel or, if there is more than one owner of all or parts of such Parcel, then the one party last designated to represent such owners in a written instrument delivered to the other Parcel Owners and signed by the owners of all or parts of the Parcel who or which collectively own the majority of the Building Area within the Parcel. 2. Parking and Common Area Easements. Nonexclusive easements are hereby created over, upon and across the Common Area for the following purposes: (a) The parking of passenger vehicles and pedestrian and passenger vehicular traffic of the owners of all or part of each Parcel and their -3- -- respective tenants and the tenants, employees, customers, licensees and invitees of any of such owners and their respective tenants. (b) The ingress and egress of any of the parties identified in subsection 2(a) above and their passenger vehicles to any and from any portion of the Property from and to public streets adjacent thereto. (c) The ingress and egress of delivery and service trucks and vehicles to and from the buildings on the Property from and to the public streets adjacent to the Property for the delivery of goods, wares, merchandise and the rendition of services to the owners and/or occupants of such buildings. The easements contained in this Section burden the Property, are for the benefit of all Parcels and are enforceable by any Parcel Owner or the HRA. Bradley will not make any modification to this Section that materially modifies the scope or nature of the above easements without first obtaining the written consent of the HRA, which consent will not be unreasonably withheld, such obligation to run with the Property for the sole benefit of the HRA and to be enforceable solely by the HRA. 3. No Barrier. No additional raised curbing, fence, division, rail, hedge, walls, or permanent obstructions of any type or kind shall ever be placed, kept, permitted, or maintained in the Common Area without the written approval of all of the Parcel Owners, except as is shown on the Site Plan and except for such temporary barriers as may be erected from time to time for promotional activities or . to prevent the accruing of public rights in the Common Area. A Parcel Owner may, -4- however, make changes in the Common Area in such Parcel Owner's Parcel, provided that such changes do not materially interfere with the easements granted in this Declaration or reduce the number of parking spaces in the portion of the Common Area contained in such Parcel Owner's Parcel. The above provisions of this Section 3 burden the Property, benefit all Parcels and are enforceable by any Parcel Owner and by the Operator. Furthermore, no owner of all or part of the Property may make changes in the parking configurations contained in the Common Area, as shown on the Site Plan, without the prior written consent of the HRA, which consent will not be unreasonably withheld, such obligation to run with the Property for the sole benefit of the HRA and to be enforceable solely by the HRA. 4. Restricted Uses. For so long as the Gateway Lease remains in effect (or 35 years after the date of this Declaration, whichever occurs earlier), no portion of the Property shall (a) be used for a bowling alley, theater, billiard parlor, nightclub, or any operation selling alcohol for on-site consumption, video arcade, or other place of recreation or amusement (other than the existing U.S. Swim and Fitness operation), or auto service station without the written consent of the tenant under the Gateway Lease or (b) be leased so as to permit a tenant under such lease to sell or offer for sale groceries, health foods, meats, poultry, seafood, dairy products, fruits, vegetables, or baked goods, except that such restrictions shall not apply to any uses by tenants in the Property permitted under leases in effect on June 28, 1991 (provided that no such lease shall be amended to allow any of the above-mentioned uses) and shall riot apply to the "incidental" sale of the foregoing items. For the purposes of -5- the foregoing sentence, "incidental sale" means that less than eight percent (8%) of floor space of a tenant's demised premises is used to display and store the restricted items. The restrictions contained in this Section 4 burden the Property, benefit only the Hub West Parcel and are enforceable only by the Parcel Owner of the Hub West Parcel and by the tenant under the Gateway Lease. 5. Cross-Maintenance Easement. The buildings located on the Fitness Center Parcel and the Hub West Parcel, although not having a party wall, are immediately adjacent to one another. The Parcel Owners of .such Parcels are hereby granted the nonexclusive right to enter upon each other's Parcels for the purposes of making repairs and maintaining their respective buildings. Such entrance shall be done without disturbing the business of the other party in any material respect and each such party will repair all damage caused to the other party's property by such entry. The provisions of Section 5 burden and benefit such Parcels and are enforceable only by the Parcel Owners of such Parcels. 6. Simon. The Parcel Owner of the Hub West Parcel will construct and maintain on the Hub West Parcel the pylon sign identified on the "New US Swim, Great Clips Pylon Sign" on the Site Plan, at the location shown on the Site Plan. The Parcel Owner of the Fitness Center Parcel will have the right to require the Parcel Owner of the Hub West Parcel to include the name of one of the tenants of the Parcel Owner of the Fitness Center Parcel on such sign, provided that the Parcel Owner of the Fitness Center reimburses the owner of the Hub West Parcel for a fraction of the reasonable costs of maintaining such sign, the numerator of which is -6- one and the denominator of which is the number of tenants capable of being identified on such sign. The Parcel Owner of the Hub West Parcel will provide a written statement to the Parcel Owner of the Fitness Center Parcel annually for such costs (which statement will contain reasonable supporting evidence of such costs) and the Parcel Owner of the Fitness Center Parcel will pay each such statement within 30 days after receiving it. The provisions of this Section 6 burden and benefit the Hub West Parcel and the Fitness Center Parcel and are enforceable only by the Parcel Owners thereof. 7. Maintenance of Common Areas. The Common Area (including all parking areas and landscaping therein) shall be maintained, replaced, snowplowed, lit, secured, insured and cleaned ("Common Area Maintenance") by an operator ("Operator") selected by a majority of the Parcel Owners and all Parcel Owners shall enter into the contract with the Operator approved in writing by such majority; provided, .however, that the Operator will not be responsible for clean-up or repair of the Common Area resulting from promotional activities or the construction, maintenance or replacement of buildings, which in each such case will be the responsibility of the Parcel Owner of the Parcel to which such activities relate. The minimum standard for the Common Area Maintenance will be the standard followed. in other first class retail developments of comparable size in the Minneapolis/St. Paul metropolitan area and in any event in compliance with all applicable laws, ordinances and regulations. The Operator will, at least 90 days prior to the beginning of each calendar year, submit to the Parcel Owners a written -7- estimated budget for the costs of Common Area Maintenance ("Common Area Maintenance Costs") for the following calendar year. If written notice of disapproval of such budget by a majority of the Parcel Owners is not given to the Operator on or before December 1 of such calendar year, such budget will be deemed approved and copies of such budget will be delivered by the Operator to all Parcel Owners, along with computations of the shares of such estimated Common Area Operating Costs of such Parcel Owners calculated in accordance with the provisions set forth in this Section below. Each Parcel Owner will pay the Operator a share of such estimated Common Area Maintenance Costs equal to a fraction, the numerator of which is the Building Area of the buildings on such Parcel Owner's Parcel and the denominator of which is the total of all Building Areas of the buildings on the Property. One twelfth of such share will be payable by each such Parcel Owner on the first day of each month during the applicable calendar year. The Operator will determine the actual Common Area Operating Costs for such calendar year not later than 45 days following the end of such calendar year and the Operator will reimburse each Parcel Owner, or each Parcel Owner will reimburse the Operator, for such Parcel Owner's share of the difference between the actual Common Area Operating Costs and the estimated Common Area Maintenance Costs. The provisions of this Section burden the Property and are enforceable only by the Operator or another party designated in writing by a majority of the Parcel Owners. The Operator'or such designated other party is granted a lien against each Parcel for the enforcement of each Parcel Owner's -8- obligations under this Section, which lien may be filed and foreclosed in the same manner as a mechanic's lien. 8. Enforcement. a. Injunctive Relief. In the event of any violation or threatened violation of any of the terms, restrictions, or covenants provided herein, any person entitled to enforce this Declaration will have, in addition to the right to collect damages, the right to enjoin such violation or threatened violation in a court of competent jurisdiction. b. Attorneys' Fees. In the event that any suit is brought for the enforcement of any provision of this Declaration or is the result of any alleged breach thereof or is for the declaration of rights and duties hereunder, the successful party or parties to such suit shall be entitled to collect reasonable attorneys' fees from the losing party or parties, and any judgment or decree rendered shall include an award thereof. c. Breach Will Not Permit Termination. It is expressly agreed that no breach or violation of this Declaration will terminate this Declaration, but this limitation will not affect, in any manner, any other rights or remedies for any breach of this Declaration. d. Breach Will Not Defeat Mortgage. A breach or violation of any of the terms, covenants, and restrictions of this Declaration will not defeat or render invalid the lien of any first mortgage made in good faith and for value, but such terms, covenant or restriction will be binding on and effective against anyone whose -9- title to the property or any portion of such is acquired by foreclosure or otherwise, but only from and after the date of such acquisition. e. Remedies Cumulative. The specified remedies to which any person entitled to enforce this Declaration may resort under the terms of this Declaration are cumulative and are not intended to be exclusive of any other remedies or means of redress to which any person entitled to enforce this Declaration may be lawfully entitled in case of any breach or threatened breach of any provision of this Declaration. Failure to insist in any one or more cases upon the strict performance of any of the covenants of this Declaration or to exercise any remedy herein contained shall not be construed as a waiver or a relinquishment in the future of such covenant or remedy. 9. Duration. Except as otherwise expressly stated in this Declaration, each easement, covenant, and restriction contained herein will continue in full force and effect in perpetuity. 10. Not a Public Dedication. Nothing contained in this Declaration will be deemed to be a gift or dedication of any portion of the Property to the general public or for the general public or for any public purpose whatsoever, it being the intention that this Declaration will be strictly limited to and for the purposes expressed herein. 11. Severability. If any clause, sentence, or other portion of the terms, covenants, and restrictions of this Declaration becomes illegal, null, or void for any reason or be held so by any court of competent jurisdiction, the remaining portions will remain in full force and effect. -10- 12. Mechanics Liens. It is expressly understood and agreed that no owner of all or any part of the Property will permit any mechanic's, materialman's, or other similar liens to stand against the Common Area in connection with any work performed by or at its request. Such owner may bond against and contest the validity and the amount of such lien, but such owner will immediately pay any judgment rendered with all proper costs and charges and will have the lien released at such owner's expense. 13. Dominant and Servient Estates. Each and all of the easements and rights granted or created hereunder are appurtenances to the applicable portions of the Property (or to all of the Property if no particular portion thereof is expressly designated as the property benefitted thereby), and none of the easements and rights may be transferred, assigned, or encumbered except as an appurtenance to such portions of the Property. For the purpose of the easements and rights, the part of the Property that is benefited will constitute the dominant estate and the part of the Property that is burdened by such easement and right will constitute the servient estate. 14. Covenants Run With the Land. The terms of this Declaration and all easements granted hereunder run with the land and shall inure to the benefit of and be binding upon the Parcels to the extent set forth in this Declaration. 15. Discharge of Rights and Duties Upon Transfer. In the event of an assignment, transfer, or conveyance of the whole interest of any person or entity in and to any Parcel_ in which such person or entity has an interest, without retaining -11- _ - any beneficial interest other than under the terms of a mortgage without simultaneously acquiring a new interest on such Parcel by way of leasehold, life estate, or other possessory interest, then the powers, rights, and interest conferred on such person will be deemed assigned, transferred or conveyed to such transferee, assignee, or grantee; the obligations will be deemed assumed by such transferee, assignee, or grantee with interest so acquired; and the duties, obligations, and rights of the person so transferring the interest shall be discharged. Notwithstanding the foregoing, any mortgagee who takes title to a burdened property by foreclosure or deed in lieu of foreclosure shall be liable only for its acts from and after the date it acquires title. 16. Condemnation. In the event of condemnation by any duly constituted authority for a public or quasi public use of all or any part of the Property, that portion of the award attributable to the value of any land within the Common Area so taken shall be payable only to the owner in fee thereof, and no claim thereon shall be made by other owners of any other portions of the Property; provided, however, that this provision shall in no way affect any disposition of condemnation awards made in a lease between such owner and its tenants or in a mortgage between such owner and such owner's mortgagee; provided further, however, all other owners of the Property may file collateral claims with the condemning authority over and above the value of the land of the area so taken. The owner of the fee of each portion of .the area so condemned shall promptly repair and restore the remaining portion of the area so owned by such owner as near as practicable to -12- the condition of the same immediately prior to such condemnation and without contribution from any other owner, except to the extent that the proceeds of such award are insufficient to pay the cost of such restoration and repair. 17. Headi~s. The caption headings of the various sections of this Declaration are for convenience and identification only and shall not be deemed to limit or define the contents of their respective section. 18. Exhibits. Exhibits A, A-1, A-2, A-3 and B attached hereto and referred to herein are a part of this Declaration. 19. Trustee Limitation. It is agreed that no trustee, shareholder, officer or agent of Bradley Real Estate Trust shall be personally liable under any of the agreements expressed herein or implied hereunder, or otherwise because of anything arising from or connected with this Declaration or the Property, and all such claims shall be enforced and satisfied only against the Property and not in any case against the trustees, shareholders, officers or agents of Bradley Real Estate Trust or any of them or their successors individually. The provisions of this Section are applicable equally to any successor to the interest of Bradley Real Estate Trust that is a business trust or association. 20. Governing Law. This Declaration shall be governed by and construed in accordance with the laws of the State of Minnesota. -13- EXECUTION: This Declaration has been executed by Bradley as of the date first above stated. BRADLEY REAL ESTATE TRUST By: Its: STATE OF ) ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of ,1991, by the of Bradley Real Estate Trust, a Massachussetts business trust, on behalf of such business trust. Notary Public THIS INSTRUMENT DRAFTED BY AND WHEN RECORDED RETURN TO: Kenneth T. Tyra Dorsey & Whitney 2200 First Bank Place East Minneapolis, Minnesota 55402 -14- EXHIBIT A PROPERTY Lot 3, Block 1, Richfield Hub Superblock according to the recorded plat thereof. Together with all that part of the SE 1/4 of the NW 1/4 of Section 27, Township 28, Range 24, Hennepin County described as follows: Beginning at the most northerly northwest corner of Lot 3, Block 1, Richfield Hub Superblock as platted and of record in the office of the County Recorder; thence South 00°-20'-18" West, assumed bearing, along the westerly line of said Lot 3, a distance of 142.11 feet; thence South 89°-56'-52" West, a distance of 30.00 feet, to the most westerly line of said Lot 3; thence North 00°-20'-18" East along the northerly extension of said most westerly line, a distance of 142.11 feet, to the westerly extension of the most northerly line of said Lot 3; thence along said westerly extension 30.00 feet to the point of beginning. Together with all that part of said SE 1/4 of the NW 1/4 described as follows: Commencing at the intersection of the southerly extension of the westerly line of said Lot 3, Block 1 and the southerly line of said SE 1/4 of the NW 1/4; thence North 0°-20'18" East along said southerly extension a distance of 141.56 feet to the point of beginning; thence North 89°-59'-52" East parallel with said southerly line a distance of 282.00 feet; thence South 0°-20'18" West parallel with said southerly extension a distance of 71.56 feet; thence South 89°-59'-52" West parallel with said southerly line a distance of 15.00 feet; thence South 0°-20'-18" West parallel with said southerly extension a distance of 27.00 feet; thence North 89°-59'-52" East parallel with said southerly line a distance of 34.89 feet to the southerly extension of the westerly line of Lot 2 said Block 1; thence North 0°-25'-38" East along said westerly line of Lot 2 and its southerly extension a distance of 107.00 feet to the southeast corner of said Lot 3;; thence South 89°-59'-52" West along the southerly line of said Lot 3 a distance of 253.99 feet to the most southerly southwest corner of said Lot 3; thence North 0°-25'-38" East a distance of 33.00 feet to the next southerly line of said Lot 3; thence North 89°-59'-52" East a distance of 48.13 feet to the most westerly southwest corner of said Lot 3; thence South 0°-20'-18" West along said southerly extension of the westerly line of Lot 3 a distance of 41.44 feet to the point of beginning. Arm Tlie North 254.85 feet of the most easterly 250 feet of Lot 2, Block. 1, Richfield Ilub Superblock, according to the plat thereof on file or of record in the office of the Registrar of Titles in and for said County. Lot 2, Block 1, Richfield 1-Iub Superblock, according to the plat thereof on file or of record in the office of the Registrar of Titles in and for said County, except ttie North 254.85 feet of tl~e most easterly 250 feet thereof. Together with tl~e appurtenant easement filed July 2, 1974, as Document No. 1112596. EXHIBIT A-1 FITNESS CENTER PARCEL All that part of Lot 3, Block 1, Richfield Hub Superblock as platted and of record in the office of the County Recorder, Hennepin County, Minnesota, lying northerly of the following described line: Commencing at the most westerly northwest corner of said Lot 3; thence South 0°-20'-18" West along the westerly line of said Lot 3 a distance of 14.89 feet to the point of beginning; thence South 89°-29'-19" East a distance of 118.51 feet; thence North 45°-32'-2b" East a distance of 28.11 feet; thence South 89°-21'-44" East a distance of 18.31 feet to the east line of said Lot 3 and there terminating. Together with all that part of vacated Pleasant Avenue described as follows: All that part of the SE 1/4 of the NW 1/4 of Section 2?, Township 28, Range 24, Hennepin County described as follows: Beginning at the most northerly northwest comer of I.ot 3, Block 1, Richfield Hub Superblock as platted and of record in the office of the County Recorder; thence South 00°-20'-18" West, assumed bearing, along the westerly line of said Lot 3, -a distance of 142.11 feet; thence South 89°-56'-52" West, a distance of 30.00 feet, to the most westerly line of said Lot 3; thence North 00°-20'-18" East along the northerly extension of said most westerly line, a distance of 142.11 feet, to the westerly extension of the most northerly line of said Lot 3; thence along said westerly . extension 30.00 feet to the point of beginning. EXHIBIT A-2 HUB WEST PARCEL Lot 3, Block 1, Richfield. Hub Superblock according to the recorded plat thereof. Together with all that part of the SE 1/4 of the NW 1/4 of Section 27, Township 28, Range 24, Hennepin County described as follows: Beginning at the most northerly northwest corner of Lot 3, Block 1, Richfield Hub Superblock as platted and of record in the office of the County Recorder; thence South 00°-20'-18" West, assumed bearing, along the westerly Iine of said Lot 3, a distance of 142.11 feet; thence South 89°-~6'-52" West, a distance of 30.00 feet, to the most westerly line of said Lot 3; thence North 00°-20'-18" East along the northerly extension of said most westerly Iine, a distance of 142.11 feet, to the westerly extension of the most northerly line of said Lot 3; thence along said westerly extension 30.00 feet to the point of beginning. Together with all that part of said SE 1/4 of the NW 1/4 described as follows: Commencing at the intersection of the southerly extension of the westerly line of said Lot 3, Block 1 and the southerly line of said SE 1/4 of the NW 1/4; thence North 0°-20' 18" East along said southerly extension a distance of 141.56 feet to the point of beginning; thence North 89°-59'-52" East parallel with said southerly line a distance of 282.00 feet; thence South 0°-20'18" West parallel with said southerly extension a distance of 71.56 feet; thence South 89°-59'-52" West parallel with said southerly line a distance of 15.00 feet; thence South 0°-20'-18" West parallel with said southerly extension a distance of 27.00 feet; thence North 89°-59'-52" East parallel with said southerly line a distance of 34.89 feet to the southerly extension of the westerly line of Lot 2 said Block 1; thence North 0°-25'-38" East along said westerly line of Lot 2 and its southerly extension a distance of 107.00 feet to the southeast corner of said Lot 3;; thence South 89°-59'-52" West along the southerly line of said Lot 3 a distance of 253.99 feet to the most southerly southwest corner of said Lot 3; thence North 0°-25'-38" East a distance of 33.00 feet to the next southerly line of said Lot 3; thence North 89°-59'-52" East a distance of 48.13 feet to the most westerly southwest corner of said Lot 3; thence South 0°-20'-18" West along said southerly extension of the westerly. line of Lot 3 a distance of 41.44 feet to the point of beginning. EXCEPT THAT PART OF LOT 3, BLOCK 1, RICHFIELD HUB SUPERBLOCK DESCRIBED AS FOLLOWS: EXHIBIT A-2 cont. All that part of Lot 3, Block 1, Richfield Hub Superblock as platted and of record in the office of the County Recorder, Hennepin County, Minnesota, lying northerly of the following described line: Commencing at the most westerly northwest comer of said Lot 3; thence South 0°-20'-18" West along the westerly line of said Lot 3 a distance of 14.89 feet to the point of beginning; thence South 89°-29'-19" East a distance of 118.51 feet; thence North 45°-32'-26" East a distance of 28.11 feet; thence South 89°-21'-44" East a distance of 158.31 feet to the east line of said Lot 3 and there terminating. Together with all that part of vacated Pleasant Avenue described as follows: All that part of the SE 1/4 of the NW 1/4 of Section 27, Township 28, Range 24, Hennepin County described as follows: Beginning at the most northerly northwest corner of Lot 3, Block 1, Richfield Hub Superblock as platted and of record in the office of the County. Recorder; thence South 00°-20'-18" West, assumed bearing, along the westerly line of said Lot 3, a . distance of 142.11 feet; thence South 89°-56'-52" West, a distance of 30.00 feet, to the most westerly line of said Lot 3; thence North 00°-20'-18" East along the northerly extension of said most westerly line, a distance of 142.11 feet, to the westerly extension of the most northerly line of said Lot 3; thence along said westerly extension 30.00 feet to the point of beginning. EXHIBIT A-3 HUB EAST PARCEL Tl~e North 254.85 feet of the most easterly 250 feet of Lot 2, Block 1, Richfield Ilub Superblock, according to the plat thereof on file or of record in the office of the Registrar of Titles in and for said County. Lot 2, Block 1, Richfield Hub Superblock, according to the plat thereof nn file or of record in the office of the. Registrar of Titles in and for said County, except tl~e North 254.85 feet of the most easterly 250 feet thereof. Together with the appurtenant easement filed July 2, 1974, as Document No. 1112596. .24~' ' 1 G F~/4J • (U y Q~ ~ . T . • ~~ '.• ,. . q h ~~ ~~ ~ S _ ~• \ ~~ •~ 1 d VI 1 m ~~ L .~ .~Xl Mimeapolls Northfield Soutl~ern Railroad EXHIBIT B SITE PLAN c cn rn '^ x_ V v ~~~~~~~~~~~~~ ~~ g N r~i rn -~ ' /~ +-9