HRA Resolution 1998-2RESOLUTION NO. 98 -2
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
AUTHORIZING EMINENT DOMAIN PROCEEDINGS
TO ACQUIRE CERTAIN REAL PROPERTY INTERESTS
WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello
(the "Authority ") is a housing and redevelopment development authority duly constituted and
organized under law, with all of the powers enumerated in Minnesota Statutes, Sections 469.001
to 469.047 (the "Act "); and
WHEREAS, the Authority is authorized to develop and carry out redevelopment plans
and redevelopment projects, as those terms are respectively defined in Minnesota Statutes, Section
469.002, subdivisions 16 and 14; and
WHEREAS, the Authority adopted a redevelopment plan (the "Redevelopment Plan") in
an area in the City of Monticello identified as Central Monticello Redevelopment Project No. 1
(the "Project Area ") in November, 1982; and
WHEREAS, changes in the public and private improvements proposed to be constructed
within the Project Area occurred and necessitated adopting subsequent modifications to the
Redevelopment Plan which were approved by the Authority and adopted by the City Council of
the City of Monticello in the respective years of 1983, 1984, 1985, 1987, 1988, 1989, 1990,
19911, 1992, 1993, 1994, 1995 and 1996 and 1997; and
WHEREAS, the Plan, as modified, contemplates the acquisition of certain real property
interests located in the Project Area; and
WHEREAS, among the activities proposed to be assisted by the Authority in the project
area is redevelopment of the existing Monticello Mall (the "Mall Project ") located on property
described as Lot I. Block 1 and Outlot A, Monticello Mall, according to the plat of record and
on file in the Register of Deeds Office in and for Wright County, Minnesota (the "Property "); and
WHEREAS, to facilitate the Mall Project, the Authority has entered into a certain
Contract for Private Redevelopment with B.B.F., Inc. (the "Developer ") providing for certain
assistance by the Authority; and
WHEREAS, the Property is subject to certain encumbrances described in a Declaration
of Reciprocal Easements between Lincoln Monticello Partners Limited Partnership ( "Lincoln ")
and Monticello KM Limited Partnership ( "KM "), dated January 23, 1990 (the "Declaration "),
which declaration is filed of record against the Property and certain adjacent property described
as Lot 2, Block 1 and Outlot C, Kirkman Addition, according to the plat of record and on file
in the Register of Deeds Office in and for Wright County Minnesota (the "K -Mart Parcel "); and
SJB138833
MN190 -69
WHEREAS, certain provisions of the Declaration described below (the "Condemned
Interests ") may restrict the ability of the Developer to carry out the Mall Project; and
WHEREAS, the Developer, who is successor in interest to Lincoln under the Declaration,
has advised the Authority that it has made reasonable efforts to acquire or remove the
Condemned Interests but has been unable to reach agreement with the successor in interest to
KM; and
WHEREAS, the Developer has requested that the Authority acquire the Condemned
Interests through the power of eminent domain and through the so- called "quick take" procedure
so that the Developer may proceed to construct the Mall Project in a timely manner.
NOW, THEREFORE, BE IT RESOLVED by the Monticello Housing and Redevelop-
ment Authority as follows:
1. It is necessary to acquire the Condemned Interests that encumber the Property as
described below in this resolution in order for the Authority to carry out the purposes of the Plan,
as modified, and the Act.
2. Acquisition of the Property by eminent domain, in the manner provided by
Minnesota Statutes, Chapter 117, is deemed to be necessary and for a public purpose and is
hereby authorized.
3. The Authority's attorney and staff are authorized and directed to acquire fee simple
absolute title to the Property, by negotiation and purchase or by commencing eminent domain
proceedings pursuant to Minnesota Statutes, Chapter 117, including without limitation by quick
take under Section 117.042.
4. The Condemned Interests to be acquired consist of the rights of KM and any
mortgagee under the following sections of the Declaration: Section 3; the second sentence of the
second paragraph of Section 6 and Section 20; all as further described in Exhibit A attached
hereto.
Adopted by the Housing and Redevelopment Authority in and for the City of Monticello
this 25th day of February, 1998.
C air
ATTEST:
rzz�92 a `<N
SJB138833
MN190 -69 2
EXHIBIT A
2 . . ENCROACHMENT EASF..MSffS FOR MALL. If, once constructed,
the exterior edge of the east wall, including the roof, eaves,
drains and down spouts, of the K -Mart Building is located east of
the boundary line between the Mall Parcel and the K -Mart Parcel,
as shown on Exhibit C, then Declarants hereby reserve, create and
grant a permanent, appurtenant easement over the portion of the
Mall Parcel lying between the exterior edge of the east wall of the
K -Mart Building and the west boundary line of the Mall Parcel;
which easement is to facilitate the construction, maintenance,
,,._repair, s��pport and location of the wall, its foundations,
wfooti.ncs:.,,r, supports: and. the roof, eaves- ,-dsii�s-an�dovn:..spoot�
3. MALL WALKRAX . The K -Hart Building and the Shopping
Center will be connected for pedestrian access via an enclosed
walkway /mall, the plans for which shall be subject to the prior
written approval by the construction department of K -Hart.
Declarants hereby reserve, grant and create over and upon the
portions of the K -Mart parcel and the Shopping Center Parcel upon
which such walkway /mall is now or hereafter constructed and
located, a permanent, non- dxelusive, appurtenant casement of
ingress and egress for-pedestrians for the mutual benefit of the
Mall Parcel and the K -Mart Parcel to provido pedestrian access to
and from the Mall Parcel and the K -Mart Parcel fog% the Declarants,
their tenants, subtenants, employees, agents, contractors,
customers and invitees. KM shall be responsible to cause all
maintenance and repairs of tho portion of the walkway /mall located
on the K- Mart Parcel ; and Lincoln shall be responsible to cause all
maintenance and repairs of the portion of the walkway /mall located
on the Mall Parcel. -
4. MUTUAL ACCESS EASEMENTS. Declarants hereby reserve,
grant and create over and upon the roadways, parking areas and
sidewalks to be located on the K -Mart Parcel a permanent, non -
exclu.;ive, appurtenant easement of ingress and egress, both
pedestrian and vehicular, for the benefit of the Mall Parcel to
provide access to and from the :Sall Parcel to and from all access
points and public roads for all owners,` tenants, subtenants,
employees, agents, contractors, customers and invitees of the Mall
Parcel. Notwithstanding the foregoing, the easement crr >ated in
tio e
this subparagraph shall not include any porn of the- K -Mart
Parcel on which the K -Mart Building is constructed.
Notwithstanding the foregoing, nothing contained in this
Section 4 shall in any way alter, change or modify the rights and
obligations between K -Mart and KM pursuant to Sections 10 and 16
of the Lease.
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WCR
use the parking areas to be constructed on the K -Mart Parcel for
normal and customary par:..`.ng purposes. Declarants acknowledge and
understand that pursuant to the Lease, and subject to the
conditions specified therein, K-Ma -rt zaY, at its ovn expense, ei t
or construct additional buildings or structures on the K --Mart
Parcel.
Declarants hereby further reserve, grant and create for the
benefit of the K -kart Parcel, its owners, tenants, guests and
customers the non - exclusive, perzanent, Appurtenant easement to use
areas .' located . o�c w-th�� �l�i?rtl ^P,arcel - for ---normal:
customary parking purposes. Declarants hereby acknowledge that
pursuant to the Lease, Lincoln has agreed that so long as the Lease
in in effect, no buildings or other structures shall be constructed
upon the Mall Parcel other than those currently constructed and /or
contemplated by the Lease and as shown on Exhibit C attached
hereto.
Notwithstanding the foregoing, nothing contained in this
Section 6 shall in any way alter, change or modify the rights and
obligations between K -Mart and KM pursuant to Sections 10 and 16
of the Lease.
7. REAL ESTATE TAXES. . All real estate taxes and
installments of special assessments shall be paid, when due, by the
owners or (if so required pursuant to the terms of-a valid lease)
tenants of the respective Parcels, and nothing herein shall operate
or be construed to impose any obligations to pay such taxes and
installments of assessments on any other party.
Notwithstanding the foregoing, nothing contained in this
Section 9 shall in any way alter, change or modify the rights and
obligations between K -Mart and KM pursuant to Section 5 of the
Lease.
a. INSURANCE. The Declarants shall keep and maintain in
effect the following insurance:
A. Fire and extended
and "extended coverage" perils,
with said Declarant's'Parcel on
(100$) of replacement cost.
coverage insurance, covering fire
insuring the building(s) located
the basis of one hundred percent
B. During any period of construction, the Declarant
causing such construction shall maintain or cause its contractors
to maintain policies of Builders' Risk insurance, insuring against
any of such Frisks as may be insured under the aforesaid extended
coverage policy during the period of such construction.
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02/24/98 TUE 07:31 FAX 1 612 '295 3132 METUALY, LAK5UA & MUTH
respons ibiliry whatsoever for the care and maintenance of the other
party's parcel in ragard to the areas of ingress and egress and
parking.
18. EXTERIOR LIGHTING. Declarants acknowledge that the
exterior lighting for the portion of the parking facilities located
on the K -Mart Parcel is connected to and metered through the
electrical system to be located in the K-Mart Building on the K-
Mart Parcel; and that the exterior lighting for the portion of the
parking facilities located on the Mall Parcel is connected to and
metered through the electrical system :.located in the ..-Shopping.
center.' If , at any time prior to-'•the =dxpira.. n or
the Lease, K -Mart should request that the exterior lighting with
respect to the parking areas on the Mall Parcel be lit for periods
beyond the customary business hours for the Mall Parcel, Lincoln,
or the then owner of the Mall Parcel, will comply with K +Mart's
request for such extended lighting provided that K -Mart agrees in
writing and in advance that it will pay and reimburse the owner of
the Mall Parcel for all costs and expenses, including utility
costs, incurred for such extended lighting. Conversely, if
L'.ncoln, or the then owner of the Mall Parcel should request that
the exterior lighting with respect to the parking areas on the K-
Mart Parcel be lit for periods beyond the customary business hours
for the K -Mart Parcel, the owner of the K -Mart Parcel and /or K -Mart
will comply with such request for such extended lighting provided
that Lincoln, or the then owner of the Mall Parcel agrees in
writing and in advance that it will pay and reimburse the owner of
the K -Mart Parcel for all costs and expenses, including utility
costs, incurred for such extended lighting.
19. PYLON SIGN. Subject to K- Mart's obtaining appropriate
governmental approvals, licenses and permits, and subject to all
yaws, statutes, ordinances, requlations and restrictions applying
thereto, Declarants acknowledge and agree that pursuant to the
Lease, and during the term thereof, K -Mart shall have the right to
construct, install and maintain a pylon sign on the Mall Parcel as
shown on Exhibit B to the Lease. Other than the two pylon signs
currently located on the Mall Parcel, and the pylon sign to be
erected pursuant to the foregoing by K -Mart, Declarants. agree that
while the Lease is in effect, no additional pylon signs will be
erected on the Mall Parcel.
20. MORTGAGEE'S CONSENT. Declarants acknowledge and agrg
that this Declaration may not be amended or modified without the V
prior written consent of all mortgagees then holding a mortgage
lien upon either or both of the Parcels.
8
C_ U U I
WG13
RESOLUTION NO. 98 -2e
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
AUTHORIZING EMINENT DOMAIN PROCEEDINGS
TO ACQUIRE CERTAIN REAL PROPERTY INTERESTS
WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello
(the "Authority ") is a housing and redevelopment development authority duly constituted and
organized under law, with all of the powers enumerated in Minnesota Statutes, Sections 469.001
to 469.047 (the "Act "); and
WHEREAS, the Authority is authorized to develop and carry out redevelopment plans
and redevelopment projects, as those terms are respectively defined in Minnesota Statutes, Section
469.002, subdivisions 16 and 14; and
WHEREAS, the Authority adopted a redevelopment plan (the "Redevelopment Plan ") in
an area in the City of Monticello identified as Central Monticello Redevelopment Project No. 1
(the "Project Area ") in November, 1982; and
WHEREAS, changes in the public and private improvements proposed to be constructed
within the Project Area occurred and necessitated adopting subsequent modifications to the
Redevelopment Plan which were approved by the Authority and adopted by the City Council of
the City of Monticello in the respective years of 1983, 1984, 1985, 1987, 1988, 1989, 1990,
1991, 1992, 1993, 1994, 1995 and 1996 and 1997; and
WHEREAS, the Plan, as modified, contemplates the acquisition of certain real property
interests located in the Project Area; and
WHEREAS, among the activities proposed to be assisted by the Authority in the project
area is redevelopment of the existing Monticello Mall (the "Mall Project ") located on property
described as Lot 1, Block 1 and. Outlot A, Monticello Mall; according to the plat of record and
on file in the Register of Deeds Office in and for Wright County, Minnesota (the "Property "); and
WHEREAS, to facilitate the Mall Project, the Authority has entered into a certain
Contract for Private Redevelopment with B.B.F., Inc. (the "Developer ") providing for certain
assistance by the Authority; and
WHEREAS, the Property is subject to certain encumbrances described in a Declaration
of Reciprocal Easements between Lincoln Monticello Partners Limited Partnership ( "Lincoln ")
and Monticello KM Limited Partnership ( "KM "), dated January 23, 1990 (the "Declaration "),
which declaration is filed of record against the Property and certain adjacent property described
as Lot 2, Block 1 and Outlot C, Kirkman Addition, according to the plat of record and on file
in the Register of Deeds Office in and for Wright County Minnesota (the "K -Mart Parcel "); and
SJB138833
MN190 -69 1
WHEREAS, certain provisions of the Declaration described below (the "Condemned
Interests ") may restrict the ability of the Developer to carry out the Mall Project; and
WHEREAS, the Developer, who is successor in interest to Lincoln under the Declaration,
has advised the Authority that it has made reasonable efforts to acquire or remove the
Condemned Interests but has been unable to reach agreement with the successor in interest to
KM; and
WHEREAS, the Developer has requested that the Authority acquire the Condemned
Interests through the power of eminent domain and through the so- called "quick take" procedure
so that the Developer may proceed to construct the Mall Project in a timely manner.
NOW, THEREFORE, BE IT RESOLVED by the Monticello Housing and Redevelop-
ment Authority as follows:
1. It is necessary to acquire the Condemned Interests that encumber the Property as
described below in this resolution in order for the Authority to carry out the purposes of the Plan,
as modified, and the Act.
2. Acquisition of /ri <Ib eminent domain, in the manner provided
... Y p
by Minnesota Statutes, Chapter 117, is deemed to be necessary and for a public purpose and is
hereby authorized.
3. The Authority's attorney and staff are authorized and directed to acquire fee simple
absolute title to the /here, by negotiation and purchase or commencing
.. ....... ............................... g p Y g
eminent domain proceedings pursuant to Minnesota Statutes, Chapter 117, including without
limitation by quick take under Section 117.042.
4. The Condemned Interests to be acquired consist of the rights of KM and any
mortgagee under the following sections of the Declaration: Section 3; the second sentence of the
second paragraph of Section 6 and Section 20; all as further described in Exhibit A attached
hereto.
Adopted by the Housing and Redevelopment Authority in and for the City of Monticello
this 25th day of February, 1998.
A �,r
air 1/7
ATTEST:
Executive Director
SJB138833
MN190 -69 2
RESOLUTION NO. 98 -2 (Corrected)
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
AUTHORIZING EMINENT DOMAIN PROCEEDINGS
TO ACQUIRE CERTAIN REAL PROPERTY INTERESTS
WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello
(the "Authority ") is a housing and redevelopment development authority duly constituted and
organized under law, with all of the powers enumerated in Minnesota Statutes, Sections 469.001
to 469.047 (the "Act "); and
WHEREAS, the Authority is authorized to develop and carry out redevelopment plans
and redevelopment projects, as those terms are respectively defined in Minnesota Statutes, Section
469.002, subdivisions 16 and 14; and
WHEREAS, the Authority adopted a redevelopment plan (the "Redevelopment Plan ") in
an area in the City of Monticello identified as Central Monticello Redevelopment Project No. 1
(the "Project Area ") in November, 1982; and
WHEREAS, changes in the public and private improvements proposed to be constructed
within the Project Area occurred and necessitated adopting subsequent modifications to the
Redevelopment Plan which were approved by the Authority and adopted by the City Council of
the City of Monticello in the respective years of 1983, 1984, 1985, 1987, 1988, 1989, 1990,
1991, 1992, 1993, 1994, 1995 and 1996 and 1997; and
WHEREAS, the Plan, as modified, contemplates the acquisition of certain real property
interests located in the Project Area; and
WHEREAS, among the activities proposed to be assisted by the Authority in the project
area is redevelopment of the existing Monticello Mall (the "Mall Project ") located on property
described as Lot 1, Block 1 and Outlot A, Monticello Mall, according to the plat of record and
on file in the Register of Deeds Office in and for Wright County, Minnesota (the "Property "); and
WHEREAS, to facilitate the Mall Proj ect, the Authority has entered into a certain
Contract for Private Redevelopment with B.B.F., Inc. (the "Developer ") providing for certain
assistance by the Authority; and
WHEREAS, the Property is subject to certain encumbrances described in a Declaration
of Reciprocal Easements between Lincoln Monticello Partners Limited Partnership ( "Lincoln ")
and Monticello KM Limited Partnership ( "KM "), dated January 23, 1990 (the "Declaration "),
which declaration is filed of record against the Property and certain adjacent property described
as Lot 2, Block 1 and Outlot C. Kirkman Addition, according to the plat of record and on file
in the Register of Deeds Office in and for Wright County Minnesota (the "K -Mart Parcel "); and
SJB138833
MN190 -69 1
WHEREAS, certain provisions of the Declaration described below (the "Condemned
Interests ") may restrict the ability of the Developer to carry out the Mall Project; and
WHEREAS, the Developer, who is successor in interest to Lincoln under the Declaration,
has advised the Authority that it has made reasonable efforts to acquire or remove the
Condemned Interests but has been unable to reach agreement with the successor in interest to
KM; and
WHEREAS, the Developer has requested that the Authority acquire the Condemned
Interests through the power of eminent domain and through the so- called "quick take" procedure
so that the Developer may proceed to construct the Mall Project in a timely manner.
NOW, THEREFORE, BE IT RESOLVED by the Monticello Housing and Redevelop-
ment Authority as follows:
1. It is necessary to acquire the Condemned Interests that encumber the Property as
described below in this resolution in order for the Authority to carry out the purposes of the Plan,
as modified, and the Act.
2. Acquisition of Condemned Interests by eminent domain, in the manner provided
by Minnesota Statutes, Chapter 117, is deemed to be necessary and for a public purpose and is
hereby authorized.
3. The Authority's attorney and staff are authorized and directed to acquire fee simple
absolute title to the Condemned Interests, by negotiation and purchase or by commencing eminent
domain proceedings pursuant to Minnesota Statutes, Chapter 117, including without limitation
by quick take under Section 117.042.
4. The Condemned Interests to be acquired consist of the rights of KM and any
mortgagee under the following sections of the Declaration: Section 3; the second sentence of the
second paragraph of Section 6 and Section 20; all as further described in Exhibit A attached
hereto.
Adopted by the Housing and Redevelopment Authority in and for the City of Monticello
this 25th day of February, 1998.
Chdir
ATTEST:
Executive Director
SJB138833
MN190 -69 2
,f