HRA Agenda 02-25-1998 Special
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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.
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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.
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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.
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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
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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
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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.
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". 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.
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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.
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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.
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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.
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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
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Ege-~eO/90'd SSl-,L
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N3^YH' , ^a3NN3~-WOJ~ Wd~S: 10 8e-SZ-q'~
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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~-$ ~~.'. :....-,.,.... ;.""~" - ."" . .
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lXHIBIT
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:). 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.
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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.
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_ .' 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
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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
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