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HRA Agenda 02-25-1998 Special . . . AGENDA - SPEC L MEETING MONTICELLO HOUSING AND RE EVELOPMENT AUTHORITY Wednesday, February 2 ,1998 - 4:30 p.m. City H II MEMBERS: Chair Brad Barger, Vice Chair Steve Andrews, Darrin Lahr, Bob Murray, and Dan Frie. STAFF: Rick Wolfsteller, Jeff O'Neill, and 0 lie Koropchak. GUESTS: Bany Fluth, BBF, Inc. and Attorney Brad Larson. 1. CALL TO ORDER. 2. CONSIDERATION TO APPROVE ARE OLUTION TO AUTHORIZE ENTERING INTO AN AMENDMENT OF THE PRIV TE REDEVELOPMENT CONTRACT BETWEEN THE lIRA AND BBF, INC. 3 . CONSIDERATION TO APPROVE ARE OLUTION AUTHORIZING CONDEMNATION OF PROPERTY RIG TS. 4. ADJOURNMENT. . . . BRA AGENDA FEBRUARY 25, 1998 2. A. Reference and Backo:round: Barry Pluth, owner of the Monticello Mall, equest the BRA consider amending the Private Redevelopment Contract between t e BRA and BBF, Inc. The reason for amending the contract is to include the te s and conditions associated with the Condemnation of Property Rights. The Co demnation of Property Rights relates to the Mall and K-Mart sites. Terms and conditio s relate to costs associated with amending the contract and legal costs and obligations ass ciated now or in the future with the condemnation of property rights. All costs and legal obligations to be the sole responsibility of the redeveloper, Barry Flu h. Mr. Fluth will indemnify the BRA and is willing to escrow money for the said purpo e. Prior to Barry Fluth purchasing the Montie llo Mall, the mall was owned by the Lincoln Properties and the K-Mart building was de eloped and owned by Monticello KM. Limited Partnership. However, Lincoln an K.M. was one of the same. Since that time, K.M. Limited Partnership sold the K-Mart uilding and site to a third party of out-state. Certain property rights such as easements r crossing of utilities, parking, and traffic flow, landscaping and lighting, etc. are deft ed in Declaration of Reciprocal Easements. At the time the K-Mart building was const cted a Reciprocal Easement Agreement (REA) was agreed among between K.M. imited Partnership (the landlord), K-Mart Corporation (the tenant), and Lincoln Pro erties (mall owner). This REA included a provision stating no changes to the current structures or no new structures may be constructed on the said properties without consent of the parties. The agreement was a recordable document recorded against bot properties. It appears K-Mart Corporation has consented to the rights of the REA an the new landlord of the K-Mart building has not; therefore, the need to authorize cond nation of property rights and to amend the contract. B. Alternative Action: The first action required by the HRA is to onsider approval of a resolution to authorize entering into an amendment of the Private edevelopment Contract. 1. A motion to approve a resolution t authorize entering into an amendment of the Private Redevelopment Contract b ween the BRA and BBF, Inc. 1 . . . HRA AGENDA FEBRUARY 25,1998 2. A motion to deny approval of a res lution to authorize entering into an amendment of the Private Redevelo ment Contract between the HRA and BBF, Inc. 3. A motion to table any action. C. Recommendation: Recommendation is for alternative no. 1. D. Supporting Data: Copy of the resolution and amendments to he Private Redevelopment Contract if received from Kennedy & Graven. 2 . . . HOUSING AND REDEVE OPMl:NT AUmORlTY IN AND FOR mE C OF MONTICELLO APPROVING AN AMENDMENT T mE CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN TH AUTHORITY AND BBF~ INC. WHEREAS. the Housing and Redevelo ent Authority in and for the City of Monticello (the "Authority") currently administers its Cen Monticello Redevelopment Project No.1 (the "Project Area") pursuant to Minnesota Statutes. Sections 469.001 to 469.047: and WHEREAS. among the activities pro sed to he assisted by the Authority in the project area is redevelopment of the existing Monticell Matt (the "Mall Project") located on property described as Lot 1. Block t and Outlot A. Matt 'cello Malt according to the plat of record and on file in thc Register of Deeds Office in and for Wright County. Minnesota (the "Property"); and WHEREAS, to facilitate the Mall P 'ect. the Authority ha.l:; entered into a certain Contract for Private Redevelopment (the "e ntract") with B.B.F.. Tnc. (the "Developer") providing for certain assistance by the Authori : and WHtREAS. the Property is subject to ertain encumbrances described in a Declaration of Reciprocal Easements between Lincoln Man 'cello Partners Limited Partnership ("Lincoln") and Monticello KM Limited Partnership ("KM '). dated January 23. 1990 (the "Oeclaration"). which declaration is filed of record against the roperty and certain adjacent property described as Lot 2. Block 1 and Outlot C. Kirkman Addi 'on, according to the plat of record and on file in the Register of Deeds Office in and for Wrig t County Minnesota (the "KaMart Parcel")~ and WIJEREAS~ certain provisions of the eelaration described below (the "Condemned Interests") may restrict the ability of the Devel er to cany out the Mall Project: and WHEREAS. the Developer. who is succ ssor 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 rc ch agreement with the successor in interest to KM;and WHEREAS~ the Developer has reques that the Authority acquire the Condemned Interests through the power of eminent domain d through to "quick take" procedure so that the Developer may proceed to construct the Mall P ~cct in a timely manner~ and WHEREAS. the Authority is prepared to proceed with such acquisition. provided that the Developer enter into an amendJ:nent to the Contr ct under which the Developer agrees to pay all the costs of the acquisition. SJB13 81! 51 MN190-6"1 ~ E9B-~ BO/ZO"d SSl-! o IEBlEEZ 19 N3^V~~ , Aa3NN3~-WOJ~ WdES: 10 BB-SZ-q'~ . . . NOW, THEREFORE, BE IT RESOL D by the Monticello Housing and Redevelop- ment Authority as follows: 1. Authority staff and legal counsel authorized to prepare. and the proper Authority officials are authorized to execute, an amendme t to the Contract providing for acquisition of the Condemned Interests by the Authority. sub tia1ty confonning to the terms described in this resolution. 2. The Contract must provide that. b fore the Authority commences acquisition. the Developer will deposit with the Authority in e rowan estimate of the total cost of acquisition of the Condemned Interests. including without limitation attorney fees, commissioner fees. and any damage award. The Developer must also a, e to bold hannless. defend and indemnify the Authority for all claims in connection with acq i5ition of the Condemned Interests. 3. The Condemned Interests to be a quircd consist of the rightc; of KM under the following sections of the Declaration: Secti n 3; and the second sentence of the second paragraph of Section 6; all as further described in Exhibit A attached hereto. Adopted by the Housing and Redevelop ent Authority in and for the City of Monticello this 25th day of February, 1998. ATTEST: Executive Director SJ1HJ$llU Mlf:l.~".n E96.~ 60/EO"d SS,.! OIE6,EEZI9 Chair 2 N3^Y~~ , A03NN3~.WOJ ~ WdES: l 0 B6.SZ.q'~ . EXH!B T A 2. . · %f, once constructed. the exteriQr incl\1di.nq t:he roaf. eavoe!a. drains and down spou~s, of ~e X-Ha Buildi"~ is loeated eas~ of the bounda~ line between the Mall P reel and the K-Mart Parcel, as showll on !;~lbit c, then Deelaraft hereby reserve, create Bl"'d qrant a permanent, appurtenant easelll nt over the po7;'tion of the Mall Parc::el lying- bet:ween t.he arteria ad"e of the east vall cf the X-Mart B~ildin9 and ~he VQst bound a line of the Mall Pareel: Vhieh ea!:e'lllen~ is to facil1t:l\te th const.ruction, aaintenance. .:., _._.".repair, Gl.;ppor~ and loeation of e vall, its foundat1o!,s, _. . :... .r'..;..!~.'~"-fbotin9.';" supi'ort:.1iE .and the rOc1f-, eav. C;-.:CS~a"l1s~-ahd ...,t!oVJ'!.'...~po.~!-S :..... "'0,-.:. ~ "':: - ... . . 3. "~t.. WAIX""Y.. Build! nq and the Sbopp1nq / ceneer will be connecteel for peele..t len aCee.. via an ~nclosed V w.lkwaY/~al1. the plans for which s all be 8ubjec~ to the prior written approval by ~he construe 10h depaTteent of k-Hart. Declaran'ts hereby reserve, qrant a crdate over and upon the portions ot the k-Kart parcel and th Shoppinq eanter parcel upon which such walkway/II.11 ia now at' herearter conetnac:ted and located, a permanent, non-*xelualv, appUft.nant aal.m8~t ~t in;r..s An4 -gr... tor pedestrians t r the sutyal b.~.tlt or the Mall Parcel and the X-"a~ Parcel to prov!do p.d..trla~ aceos. to and from ~h. Mall 'arcel and the K-Ma t Parcol ro~ tho Doc13r3"ts. their tenants, subtenant., ..plo a81, a~Dnt.. eontractQ~s, custOtllers and inviteell. KM ohal1 e r-esponsiblla !.e eAUAD aU maintenanc@ ana repair~ of ~ha portio of the walkway/mall loceted . on 'thA X-Hart Parc~l: and Lincoln shall be re.ponslblo ~o cause all ~aintenene@ and re~air8 of the portio ot the walkway/mall loeated on ~he Mall Parcel. . ". MUTUA!. ACCESS !:ASP.'MF.NT!!:. Deelarants hQrehy resC!rie. qran~ and c:rl!ate over ,and upon t.tU! roadways, parkinq areas and sidewalks "to be located on the K-KartParcel a permanent, nol'1- exclu~ive, appurtenant Aasement of lnqrets and egress. bo~h pedestrian af'ld vehicular, fDr 'the b nefitot the KallPareel to provias a~c~.s to an4 fro~ the ~a]l areel to end from all a~eess point.. and public roach. for all ell ers, te"lants, subtenants. employe.., avents, contractors, eusto ers and invitees of the Hall Parcel. Notwithst.anding the fot"eqo Onq, the easement er"'ated 1n t.his subt'cragzoaph sball not inclurie any portion of th.e X-Hart Parcel on which the X-Hart Buil~inq s constructed. Not.w1thstandinq the foreqoil'l9, not:hinq contained in this fe~t1on 4 _hell in any vay alter, cb nge or modify th@ riqhts and obligatio"s between X-Kart and XM pu suant to sections 10 and 16 af the Lease. - 2 - we" . use the! parkJ.ftg areas to be constnct:. on the ll"'Mart Parcel for normal aft4 cust.omary par~'.bCJ purposes. Declannts aeJcnovladq.. and undArst:and that. pursuant:. ~o the I!,. al'ld subject t:.o the= candi~iuns specified ti\@reitl, lC-Hart y, at its ovn expense, e1-t:. or consuuct adclit.io:.,al bUild.1n9S 0 strUctures on the !(-Mat't parcel. Dealarants hereby further reserv , grant &nd crea~e tor ~he benefit. of the X-Kart P2\rcel, ita ers, tenants, quli!.sts antl cust02lltll~d the non-exclusive, peZ'SlaJ\ent appurteftan~ easement to US!! '_-::.:':-. ."the',' pai~iJi~'. area. locatee! 01'I"...tb.~-. H',~P.arc.l" for",1J9~.'.~ '.-a._~. cust.omary Parldn9 purposes. Daclar ta .. hereby acJcnovlodg8 that "7=' _..~: - [lursu&l1t. to the Lease, Lincoln ba8 a ed that sa long al tbe Le8se .1n in ..ffect., no buildinqs or other at ctures shall bC!l ccnstruct.ed Up01'l the Mall ~.rc.l other thaft thoBe urrentlY constructed and/or eon1:emplated l'sy the La.se ane! atl s; own on E~hibi t C attacbed hereto. No~vith.t.anc!ing ~h. foregaing, nothing contained in t.his section 6 shall in any way alter, cha '8 or modify the r19ht8 and obliq&tions between X-Hart and KK pu uant to Sections 10 and 16 of the LeasC!l. . . 7. R2A1t. ESTATE TAXES.. . Al real estat.:! taxes and installllents ;If special ass.ssment. . all be paiel. vhen due, by t:hl! owners or (if 80 required purluant to the terms of a val1d lease) tenants of the respe~~iYe Pa~~.l., an4.nathin9 berein shall operate or b~ cons~tueQ to impose any obliq t10ns to pay such ta~QS and i~stallments of assessments on any 0 . er ~arty. No~with9tandir\C; tha forego.ing, not.hinq contained in this Sec~icn 9 shall in any way al~er, eh ;. or modify the riqhts and obligations between x-Kart and KK P rsuant to section 5 of the lAaa- . a. INStntAHCI. 'rhe Deal.rants .hall Je..., anc1 maintain 1n .ffRet the following insurance: A.. Fire and .xt:.endecl cove a;e Insuraftce. covlu:ing fire and "extendad coverage" perils, insu in; t.he build.ing(s) located with said Declarant's Parcel on th~ . as!. of one h~~dred percent (100') of replacRm8nt cast. a. Durinq any period of construction, the oeela:-ant causing such construction shall main a1n or cause its contractors to maintain polic1es of B~ilde~s' Ria InsuranCQ. insuring against any gf such risks as may be insured under the aforesaid extended eoveraqe policy durinq the period of such con~true~ion. - 4 - WCR '... __..'."_ . ."11 "" II II _ II.. .. ... ............ .. t _.. . ... ....- .:.a ,,- . *' . . . HRA AGENDA FEBRUARY 25,1998 3. A. Reference and Background: An lIRA has the power of condemnation of roperty rights for a public purpose. The public purpose being to allow elimination an redevelopment of a blighted site or project area. As mentioned earlier, the new landlord and -Mart have the right of consent and K-Mart Corporation has consented the rights of the A as no economic damages are slated to occur. The redevelopment project is a pot . tial benefit to K-Mart through increase of sales. K-Mart has a Triple Net Lease with r nt to increase once K-Mart reaches a certain gross sales per year. K-Mart Corporation elcomes the potential of increased sales. It is unclear as to why the new landlord would n t consent to the rights as rent payments would increase resulting in an economic gai .. No economic damages are slated to occur with redevelopment project: No less parkin, no less egress/ingress, increase of lighting and landscaping, increased visibility from H" hway 25, and increase of truck-delivery flow. Again, Mr. Fluth will indemnify the BRA a pay for all costs associated with amending the contract and the condemnation of prop y rights. B. Alternative Action: 1. A motion to approve a resolution au horizing condemnation of property rights. 2. A motion to deny approval of a reso ution authorizing condemnation of property rights. 3. A motion to table any action. C. Recommendation: Recommendation is alternative no. 1 D. Supporting Data: Copy ofthe resolution for adoption. 1 . . . HOUSING AND REDEvE OPMENT AUTHORJTV tN AND FOR THE C OF MONTICELLO AUTHORIZING EMINENT DOMAIN PROCEEDINGS TO ACQUIRE CERTAIN RE PROPERTY INTERESTS WItEREAS. the Housing and Redevelo ent Authority in and for the City of Monticello (the "Authority") is a housing and redevelopm nt development authority duly constituted and organized under law. with aU of the powers en erated 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 re pcctively defined in Minnesota Statutes. Section 469.002. subdivisions 16 and 14: and WHEREAS, the Authority adopted a red velopment plan (the "Redevelopment Plan") in an area in the City of Monticello identified as C ntral Monticello Redevelopment Project No. 1 (the "Project Area") in November, 1982; and WHEREAS, changes in the public and .vate improvements proposed to be constructed within the Project Area occurred and necessi ed adopting subsequent modifications to the Redevelopment Plan which were approved by th Authority and adopted by the City COW1cil of the City of MonticelJo in the respective years f t 983. 1984, 1985, 1987, 1988. 1989. 1990, 1991. 1992. 1993, 1994. 1995 and 1996 and 19 7; and WHEREAS, the Plan. as modified. cont plates the acquisition of certain real property interests located in the Project Area; and WHEREAS. among the activities propo 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. Monti eIlo Mall. according to the plat of record and on file in the Register of Deeds Office in and for right County. MintleSQta (the "Property"): and WHEREAS, to fadlitate the Mall Proj ct. 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 ce in encumbrances described in a Declaration of Reciprocal Easements between Lincoln Monti eHo Partners Limited Partnership ("Lincoln") and Monticello T<M Limited Partnership ("KM" . dated January 23. t 990 (the "Declaration"). which declaration is filed of record against the p. pertyand certain adjacent property described as Lot 2. Block 1 and Outlot C. Kirkman Additi n. 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 SUB13B9JJ ~1!Ia-67 Ege-~eO/90'd SSl-,L 0lE8lEEZI9 1 N3^YH' , ^a3NN3~-WOJ~ Wd~S: 10 8e-SZ-q'~ . . . WHEREAS, certain provisions of the Deelaration described below (the "Condemned Interests") may restrict the ability of the Devc1 per to carty out the Mall Project; and WHEREAS, the Developer. who is SUtt 550r 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 r ach agree111.ent with the successor in interest to KM: and WHEREAS, the Developer has rcque eel that the Authority acquire the Condemned Interests through the power of eminent domain d through the so~calted "quick take" procedure SO that the Developer may proceed to construct the Mall Project in a timely manner. NOW, ntEREFORE, BE IT RESOL D by the Monticello Housing and Redevelop~ ment Authority as follows: 1. It is necessary to acquire the Co emned Interests that encumber the Property as described below in this resolution in order for th 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 fot a public purpose and ;s hereby a.uthorized. 3. The Authority's attorney and staff are authorized and directed to acquire fee simple absolute title to the Property. by negotiation a.n purchase or by commendng eminent domain proceedings pursuant to Minnesota Statutes. C pter 117, including without limitation by quick take under Section 117.042. 4. The Condctnrlcd Intcrc:rts to be cquired consist of the rights of KM under the following sections of the Deda1'8tion: Seeti 3~ and the second sentence of the second paragraph of Section 6; all as further described n Exhibit A attached hereto. Adopted by the Housing and Redevelop ent Authority in and for the City of Monticello this 25th day of February. 199ft ATTEST: Executive Director !':,m138833 rn;uo -67 E9B-~ BO/lO'd 55l~1 OlEBlEEZl9 Chair 2 N3^V~~ , Aa3NN3~-WOJ~ Wd55: 10 BB-9Z-q'~ 2 _ N "A L. :t t, once constructed. the ext.l!riot" I!dqe of the east:. 1Iall.. inc:luc:Unq the rocf, eaV"i!S. drains and down spoutS, of the k-Ma Buildinq is located eas~ of the boundary line between the Mall P reel and the X-Mart parc.l, as shaWl1 on Exhihit. c.. then Declaraft s bs:I:'@y reserve. create EU'\d grant a pl!rmanent, appurtenant ea.- .n~ oyer ~. po~ion of ~h. Hall Parcel lying between thl! arteria edge Clf the east yall cf the k-Kart suilclinq a.nd tbe vest bound a line of the Hall Pareel: Which easement is to faci11t:E\te t.h construction, mainteJ1ance. .._. _._ .repair, s'~ppor~ and location of ~e V..l1. it.s fou~d~t.1o!,s.~_. _ A. ~.... .......o:~":'..: -ftlotinqs;" supports:' and the roof., oa" 'lli:;:1:l~II'i11fii~-ana--aown'.,sl?~.u~-$ ~~.'. :....-,.,.... ;.""~" - ."" . . v' lXHIBIT . . :). MALL WAt.1("tlAY _ The K-Ma auilt!i"9 and t.he Shoppi nq Center will be conneeted fo~ pedestrlah aCC.la via an enclosed walkwaY/~311, the plans for vhi~h 8,a11 be Bubj8C~ to the prior written approval by ~e construe 1o~ d.pa~tment of X-Mart. Declarantc hereby S'..ervA, qrant a d cr.Jste over and upon the portions of the K-Mart parcel and th ShoPp1n9 ~Qnt8r PArcel upon 1rIhich such walkway/mall is no" 0 herearte~ co,,~truc:tod ond located, a permanent, non-exclu.l~, appur~.n.nt a..ement ~r in9ress an4 egrels for pede.trians f r thO autuel benefit of the Mall Parcel and the X~Mllrt 'aroel to providl pedestrian .ceo.. to and from the Mall parcel and the K-Ma t Parcel fo~ the Docl~rAnts. their tenants, subtenants, emplo e.., a~.ftt., contractors, customers atlc! invit.eD'- K!4 shall .. reeponsiblll 'to CAUle all ~alnteftane. and r8~.irs of tho portion of the wal~vaY/mall lceated on the K-Mart. Parcel: and Lincoln aha 1 bl roapofteib1e to cause all maintenance and repairs of the portia ot the walkway/mall lDe~ted on the Mall Parcel. 4. MUTUAt. At;C:ESS !:AS!:M~NTS _ Declarants hereby re!;C!r\o'e · qrant and erl!8te over and upon t.be roadways, parkinq areas and sidewalk.s to be loc:ated. on the It-I! rt Parcel a pet'l'Danant, non- exclu~1ve, appur~enant easement 0 In;re~s and egress, both pedest~ian and vahicular, for the b nefit of the Mall Parcel to provide access to and from the ~a]l areel to and ftOD all access points and public roaels for all ",".~s.' te.,ants. subt.enants. employees. agents, contractors, cust. a.ts and invitees of the Mall Parcel. NotwitbstancSin9 the fo.,,-ec;o"nq. the aasellent c:r:""at.ed 1n this subparagraph shall not inelut! any portion of the X-Kart Parcel on which thQ X-Mart BUildinq .s ccn$trueted. NottJithst.andinq the forego in; , nothinq contained in this ~eetio" 4 shall in any way alter, ch nqe or modify the rights and cbliqatichS het.ween X-Mart and XM p rsuant to Sections 10 and 16 of the Le.ase. - 2 - . WCR 'II .. _ use the park:1ftq areas to be ccms~1'\1 nomal ec! custamary par~',nq pU%pOs" understan4 that p~.UAft~ to the condi'tiuns specified 'therein, k-Hart or construct. 2.dditi~,al huildiftqs parce.l. Declarants hereby further res a, gran't and erea~e for the benefit of the K-I!art:. P~roel, it:a ArA, teant.s, gulll.Sts and custD1llers the nDn-exclusive, pezsuaen . appurtenan~ easeaant to US9 . '''7" - '. - :the',' parking:. areas lout.ed cnr~-1:b,.,'" ~'...:.P.arc.l" ,for. ~~rI!~..l:.~ a_no customary parking purpo.... Declar nts b.r~y actnovlo~q. that aursuan1: 'to the tease. Lincoln b.. a ed that. 5-0 10nq an tbe ~ase in in effect, no bul1cUnqa or othe!'.t aturel ehb11 be COl\structed upon the Hall l'arcel other than those cun-entlY constt'\lcted anc3/or cont.emplated by t.ha Lease anet.s own on ~xhibi t. ~ attached h@re.to. I Notvithst.and1ng the fore90ing, I nothing contaif1el'1 in this section 6 shall in any way alter, ch ft'8 or modify the ri9bta and obliga~ion. betv.en K-Ka~ and JK pu Duant to Sections 10 end 16 of th~ Lease. . . . _ .' 0lil _ .. ... _ ....... _ .. .__ _ _..... _...,; .. _ _ _ ,. CD the K.Mart Pateel for Declarant.s actnO\lllldqe and . anc1 su!:ljeC't: to tht:s y, at iu ovn erpense. e1-4: r stnctures Oft the !C.-Mart 7 1. REAL ESTAT~ '1'A'XES. ' 1 real ellltat~ taxes and installm.ents ~f special assessmentd 8 all be 'Paid, '"'hen due, by t.he own.~s or (if 80 required pu~.ulnt t the t.rms of a valid lease) tenants of the tesp.=tive PareAla, and nothi~9 herein shall opetate or ba construed to iftpo.. any obliq tions to pay SUch taxes and i~stallment. of a.sess~."t~ an any 0 er ~arty. No~wiM1stal'ldil\~ thl!! foregoinq, no'thinq contained in this Section 9 sholl in any way alter, ch ge or ~odify tha rights and obligations bet'leen X-Hart and KK p rsuant to Sect.ion S of the Lease. 8, INIURANCE. The Declarants shall kekp and. =aint.aln in effect the following insurancB: . A. Fire and extct"ded cove Aqe insuranee, cover j"q fire and "extl!!ndad eovera~e" perils, insu 1n9 the bui.ldinq(s) located with said Declarant's Parcel en the asig Of one h~~Qred pe~ceht (100\) of replacement C09t. 8. Dur1nq any period of const.!:'Uction, the Declarant causinq such construction shall =a1nt in or cauce its contractors to maintain policies of Builders' R1~ In$uranc&, insuring Against any of such risks as =ay be insured der ~e aforesaid extended coveraqe policy durin; the period of uch eonseruction. - 4 - WCR ~. ........... _. . '... .. - . .. .-- " #1-- '" ... ..... '.. . .... IijI .. "" ......