2006 CONDO REGISTRATION Community Development Department Receipt # �
City of Fridley
6431 University Ave. NE
Fridley, MN 55432
Condominium Conversion Registration Form
Property Information
Address: 161 Is an ar ri ve N e . Fri d le y . M r4 55432 -000 o
Property Identification Number: 2 2- 30- 24'- 12 -0664
Legal Description: Lot 2 Block —� Tract/Addition EA$T R.I1-E1Z E5TA-t15-5
Su61 To EA515 of PVC
Current Zoning: 4A- Rem Residers+ia.l Non-Hoy4ts+aad,4AHST-Ren-tal/Rcsi&k%iial Fbr�u-dad
Number of Dwelling units: 12 Bldg. Square Footage: log 104
Number of bldg. stories: Zy2 Height of Building: Approx. 30 I=t.
Utility Connection Information: L
Water: Hot ciPal Ceder 'Division . 'l�u6bc Works Pepd-ne-41, C�of Fr+dla",
Gas: i nfi n r
Electric: Xcc
Sewer: e Cqmii*A
Any pending special assessments: __/Y,,-yes (attach detail) no
Applicant Information
Name: Grano R%lo I d h 4r Islands o� 'Peace LL(_
Address 3o Ca-lml da Ave., Hill 16%N1 CA 94941
Contact person during conversion (if different):
Title/relationship of project: f9%Lndi✓/ 'D.cve toye�
Address: Same
Daytime Phone: 41S- 38'1- 943o Mobile Phone: 415- 3o2-4848
Applicant Signature:
Required Attachments:
• Floor plans pursuant to Minnesota Statutes
• Site plan drawn to scale showing: lot, buildings, off-street parking, & landscaping
• Disclosure statement (including declaration and by-laws)
• Letter of notification to tenants
Fees
2 units $500
3-7 units $750
8-12 units $1,000
Over 12 units $1,000 + $50/unit for every unit over 12
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Page 2 of 2
Tax Amounts for M1PR
Tax Year Description Amount
2006 Qualifying Tax Amount(Tax Bill Line 1) 361.54
2006 Prior Year Qualifying Tax Amount(Tax Bill Line 2) 349.63
2006 Total Tax Amounts-Before Payments 8,006.16
Oawm$P[2006 Special Assessments (Included in Total) 281.521
Payment History for Past Three Years
............................
Principal p�jll I
Date Paid Tax Year Interests, Penalties and Costs Amount Paid
-65—/03'—/20-0-6- 2006 4,003.081 0.00 4,003.08
10/11/2005 ----2005 3,909.671 0.00 3,909.67
05/07/2005 2005 3,909.661 0.00 3,909.66
11/24/2004 2004 2,709.481 0.00 2,709.48
05/15/2004 ----.-:12004 7,211.471 0.60 7,211.47
05/15/2003 12003 6 0.00 6,825.59
Installments Payable
Tax Year InstallmentliDue Date Principal Interest, Penalties and Costs Installment umulative Due seiect to Pay
2006 12 10/15/2006 4,003 08 000 4,003.08 4,003.08 i
.......... ............... ...................
Delinquent Tax Years
;it!-�Sj"i Installment Cumulative Due Select to Pay
Year Installment Principall Interest, Penalties and 0 nt Totall
...........
1�,S Yea
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No Records Found
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Developed by ASIX, Incorporated.
@2004 All rights reserved.
Version 1.0.2288.19614
https://prtinfo.co.anoka.mn.us/(zabu4r5 ssqlcjyygOetpjm)/parcelinfo.aspx 5/3/2006
Dear Tenant of 151 Island Park Drive
The purpose of this letter is to again notify you that we are purchasing this apartment
building and will be converting it into condominiums. We hope you will purchase your
unit and continue to live there, if you like. This is an incredible opportunity for you to
become a property owner, with monthly payments that may be near what you have been
paying for rent. However, if you choose not to purchase your unit,you may have to
move. I have nearly identical apartments in buildings 150 and 151 Island Park to
accommodate you at the same rent you are now paying.
We are planning to renovate each unit, including yours, and would like to show you our
plans. We think you will like the changes, and the many choices available for finishes.
You are already seeing the changes to the outside of the building, and the new carpets,
lights, and railings in the halls. The second and third floor storage closets off the
common halls are becoming an exercise room and an internet computer room. The new
owner's association will have a large community house for parties, and we hope to
renovate the buried pool on Charles Street. It will take a few more months to get permits,
but we will build a garage with a private stall for each dwelling behind the building.
Over the next two weeks, all electrical service panels will be rewired for 60AMP service.
We will replace your wall air-conditioner with a new central air conditioner and new
furnace, starting with units 2, 6, and 10 this week and units 1,5, and 9 next week. If you
would like to avoid the inconvenience of workmen in your space and going without AC
while they work, you can move next door right away. Our workmen will even give you a
hand. We have units now ready and available for you at
190 Island Park,#2 and 9.
191 Island Park#1, 9, 11, and 12.
Other units will be ready soon in these buildings.
We have attached a proposed purchase agreement that gives the base purchase price and
other terms on which we would sell your unit to you,without the extensive upgrades we
have put into unit#2 at 151 Island Park. This price includes your new electrical, furnace,
air conditioner, and a larger window in your living room if you are on the 2nd or 3rd floor.
You can add the garage now for financing purposes or buy it when completed for about
$10,000.
You can also visit the website www.islandparkmn.com to learn more about our vision.
Many people believe your dwelling is in the path of development and will rise in value
strongly over the next year, as the entire neighborhood is also lifted by the pride of
individual home ownership. Buying now may be the smartest financial decision you ever
made.
Please contact a loan broker to figure out the details of your payments,based on your
individual financial picture. We sincerely hope you will buy your unit, and want to make
it easy for you. Getting qualified with a loan broker is the first step. Please call a loan
broker to get started. A couple of people who have been recommended to us are:
Shawn Regan at 612-382-2262 and Andriy Karkos 612 232-5425
Here is some required legal notice:
You will have an option to purchase your unit for 60 days from the date notice was delivered or mailed to
you. This means we cannot sell the unit to anyone else during this period. After the 60-day period we can
try to sell the unit to someone else,you but can still decide to buy it anytime until we have sold the unit. If
you would prefer to buy another unit,you can do so if the tenant of that unit does not buy it within the same
60-day period.
If you decide not to buy your unit,you will have to vacate the unit within 120 days after the delivery or
mailing of the first notice to you,which is September 30,2006. If any of the current occupants of your unit
is 62 years of age or older,less than 18 years old or has a disability as defined in Minnesota Statutes
268A.01,you may ask to have an additional 60 days(180 total days)in which to move by giving us a
written request within 30 days of the delivery or mailing of this notice to you,and including reasonable
proof that you qualify for this extra time. Mail this notice to Islands of Peace LLC, 151 Island Park#2,
Fridley,MN 55432 or put it in the slot of our new mailboxes.
During this time period,you must continue to pay your rent and abide by all other terms and conditions of
your lease. If you do not,we can require you to vacate the unit as provided by your lease.
Good communication will make your transition easier. Please keep us posted about your
schedule to purchase your unit, escape the construction and move next door, stay as long
as you can, or move out of the neighborhood. If you have further questions, our team is
working hard to get you answers:
Full time on-site sales and management: Dan Scully 763 244-7001
Listing Realtor Dave Suhadolnik 651628-5552
Management oversight Bryan Jones 612 990-5678
Again, some unaffiliated
Mortgage Bankers Shawn Regan 382-2262
Andriy Karkos 612 232-5425
Sincerely,
Grant Rudolph, President
Islands of Peace LLC
ISLANDS OF PEACE INTENTIONAL COMMUNITY
DISCLOSURE CERTIFICATE
This Disclosure is required by Minnesota Statutes Section 515B.4-102.
1. Name of common interest community ("CIC"): Common Interest Community
No. 245, Islands of Peace Intentional Community.
2. Name and principal address of the Declarant: Islands of Peace LLC, 30 Catalpa
Ave., Mill Valley, CA 94941.
3. Name of Association: Islands of Peace Intentional Community Association, Inc.
4. There are 12 dwelling units in this CIC,which is a condominium.
5. Islands of Peace Intentional Community is comprised of 1 building located at 151
Island Park Drive, which contains 12 dwelling units. The building is constructed
with a wood frame, vinyl siding and concrete slab and was built in 160. This
building was operated and occupied as rental apartments, and is being converted
into a condominium in 2006. The Association will be required to maintain the
parking lot on the property and all common areas and utility pipes and wires
located on the common areas.
6. The Declarant has owned the property since May 2006, and has performed routine
maintenance and repairs, remodeling, landscaping and construction of the garage
units. No additional construction is contemplated for this condominium.
However, additional real estate may be added to the condominium in the future,
and construction may be done on that property.
7. There are no expenses or services that the Declarant now provides, that are not
reflected in the Association budget and may become a common expense.
8. All purchasers will be required to pay a sum equal to two months Association
dues or$180.00 to the Declarant at closing to assist the Association in building its
reserves. All purchasers will also be required to pay at closing a pro-rated share
of the Association dues, from the date of closing to the end of that month.
Association dues of $90.00 will be due on the first day of each month,
commencing with the first month after closing.
9. There will be no liens, defects or encumbrances that will affect the title of a unit
or the common areas after the closing other than easements disclosed in the
Declaration.
10. Declarant has not offered or arranged any financing for purchaser of these units.
Coldwell Banker Burnet Realty has some financing arrangements that it can offer
to any purchaser who is interested.
11. The CIC meets the criteria for mortgage approval from Federal Home Loan
Mortgage Corporation (FHLMC); however, no formal application has been made
or approval granted. In addition, no application for project approval has been
made to Federal National Mortgage Association(FNMA), Department of Housing
and Urban Development(HUD) or Department of Veterans Affairs (VA).
12. Purchasers may be entitled to certain warranty rights pursuant to Minnesota
Statutes Chapter 327A and Sections 51513.4-112 through 51513.40115, copies of
which are attached. Declarant also makes certain warranties in the Purchase
Agreement.
13. Within ten days after the receipt of this Disclosure Statement, a purchaser may
cancel the purchase agreement for the purchase of any unit from the Declarant;
provided that this right to cancel terminates upon the voluntary acceptance of a
conveyance of the unit from the Declarant (closing). If the purchaser receives the
Disclosure Statement more than ten days before signing a purchase agreement, the
purchaser cannot cancel the purchaser agreement. If a Declarant who is obligated
to deliver a Disclosure Statement fails to deliver a Disclosure Statement which
complies with Minnesota Statutes to a purchaser, the Declarant shall be liable to
the purchaser as provided in Section 515B.4-106(d).
14. Declarant, after reasonable inquiry, has no knowledge of any unsatisfied
judgments or lawsuits to which the Association is a party.
15. Earnest money paid pursuant to a purchase agreement will be held in an escrow
account controlled by Coldwell Banker Burnet Realty, 1781 W. County Road B,
Roseville, MN 55113, in an institution whose deposits are insured by a
governmental agency or instrumentality. The earnest money will be held until it
is (i) delivered to the Declarant at closing, (ii) delivered to the Declarant because
the purchaser defaulted under the terms of the purchase agreement; or (iii)
delivered to the purchaser who has cancelled the purchaser agreement pursuant to
Section 51513.5-106.
16. The Association maintains insurance coverage on the structure of the building and
the common areas, liability insurance, and bond coverage on the Association
board members, as described in Section I I of the Declaration. The Association
does not maintain insurance on the units themselves or on any of the following:
ceiling or wall finishing materials, floor coverings, cabinetry, finished millwork,
electrical or plumbing fixtures serving a single unit, built-in appliances,
improvements and betterments as originally constructed, or additional
improvements and betterments installed by unit owners.
17. The Association does not currently charge, and does not expect to charge in the
future, any fees or other charges to unit owners for the use of the common
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Islands of Peace Intentional Community Association
Condo Association Fees
2006 Annual Budget
Per Building Yearly total Per Unit Per Month
Management $600.00 $50.00 $4.17
Property Insurance $2,762.20 $230.18 $19.18
Gas $1,659.00 $138.25 $11.52
Electric $483.00 $40.25 $3.35
Water/Sewer $1,654.80 $137.90 $11.49
Snow Removal $550.00 $45.83 $3.82
Trash $759.501 $63.291 $5.27
Landscaping and repair $3,291 $274.251 $22.85
Contingency 1 $1,200 $100.00 $8.33
Total $12,959.50 $1,079.96 $90.00
Balance July 1, 2006 0
Balance after sale of
all 12 units x$180 $2,160
COMMON INTEREST COMMUNITY N0. 245
A CONDOMINIUM
ISLANDS OF PEACE INTENTIONAL COMMUNITY
DECLARATION
This Declaration ("Declaration") is made in the County of Anoka, State of Minnesota, on
the day of , 2006 by Islands of Peace LLC ("Declarant"), for the purpose of creating
ISLANDS OF PEACE INTENTIONAL COMMUNITY, as a condominium pursuant to the
provisions of the Minnesota Common Interest Ownership Act, Minnesota Statutes Chapter 515B
("the Act").
WHEREAS, Declarant is the owner of certain real property located in Anoka County,
Minnesota, legally described in Exhibit A attached hereto, and Declarant desires to establish said
real property and all improvements thereon(collectively the"Property") as a condominium under
the Act; and
WHEREAS,this Declaration and any subsequent amendments shal l from hereinafter govern
the Property,
NOW,THEREFORE,Declarant makes this Declaration and submits the Property to the Act
as a condominium under the name "ISLANDS OF PEACE INTENTIONAL COMMUNITY"
consisting of the Units described in Section 2, declaring that this Declaration shall constitute
covenants to run with the Property,and the Property shall hereafter be owned,used,conveyed,and
occupied subject to the covenants,restrictions,easements, charges and liens set forth herein,all of
which shall be binding upon all persons owning or acquiring any right,title or interest therein,and
their heirs, personal representatives, successors and assigns.
SECTION 1
DEFINITIONS
The following words when used in the Governing Documents shall have the following
meanings (unless the context indicates otherwise):
1.1 "Act" shall mean the Minnesota Common Interest Ownership Act, Minnesota
Statutes Chapter 51513, as amended.
1.2 "Additional Real Estate"shall mean the real property legally described in Exhibit
C attached hereto, including all improvements located thereon now or in the future, and all
easements and rights appurtenant thereto, which property Declarant has the right to add to the
common interest community.
1.3 "Assessments" shall mean and refer to all assessments levied by the Association
pursuant to Section 6 of this Declaration, including annual, special and limited allocation
assessments.
1.4 "Association shall mean the Islands of Peace Intentional Community Association,
Inc., a nonprofit corporation incorporated and governed pursuant to Minnesota Statutes Chapter
317A and Section 515B.3-101, whose members consist of all the Owners as defined herein.
1.5 "Board"shall mean the Board of Directors of the Association as provided for in the
By-laws.
1.6 "By-laws" shall mean the By-laws governing the operation of the Association, as
amended from time to time.
1.7 "Common Elements"shall mean all parts of the Property except the Units,including
all improvements thereon, owned by the Association for the common benefit of the Owners and
Occupants. The Common Elements are shown on the Plat.
1.8 "Common Expenses" shall mean and include all expenditures made or liabilities
incurred by or on behalf of the Association and incident to its operation,including without limitation
allocations to reserves and those items specifically identified as Common Expenses in the
Declaration or By-laws.
1.9 "Dwelling"shall mean a part of a building consisting of one or more floors,designed
and intended for occupancy as a single family residence,and located within the boundaries of a Unit.
1.10 "Eligible Mortgagee"shall mean any Person owning a mortgage on any Unit,which
mortgage is first in priority upon foreclosure to all other mortgages that may encumber such Unit,
and which has requested the Association, in writing, to notify it regarding any proposed action
which requires approval by a specified percentage of Eligible Mortgagees.
1.11 "Governing Documents" shall mean this Declaration, and the Articles of
Incorporation and By-laws of the Association, as amended from time to time, all of which shall
govern the use and operation of the Property.
1.12 "Limited Common Elements" shall mean a portion of the Common Elements
allocated by the Declaration or by operation of Section 515B.2-102(d) or (f) of the Act for the
Exclusive use of one or more but fewer than all of the Units.
1.13 "Member" shall mean all personal who are members of the Association by virtue
of being Owners as defined in the Declaration. The words "Owner" and "Member"may be used
interchangeably in the Governing Documents.
1.14 "Occupant"shall mean any person or persons, other than an Owner, in possession
of or residing in a Unit.
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1.15 "Owner" shall mean a Person who owns a Unit, but excluding contract for deed
vendors,mortgagees and other secured parties within the meaning of Section 515B.1-103(29)of the
Act. The term"Owner"includes,without limitation,contract for deed vendees and holders of a life
estate.
1.16 "Party Wall" shall mean a shared wall or floor/ceiling between two Dwellings.
1.17 "Person" shall mean a natural individual, corporation, limited liability company,
partnership,trustee, or other legal entity capable of holding title to real property.
1.18 "Plat" shall mean the recorded plat depicting the Property pursuant to the
requirements of Section 51513.2-110 of the Act, and satisfying the requirements of Minnesota
Statutes Chapter 505, 508 or 508A, as applicable, including any amended or supplemental Plat
recorded from time to time in accordance with the Act.
1.19 "Property" as previously set forth above, shall mean all of the real property
submitted to this Declaration, including the Dwellings and all other structures and improvements
located thereon now and in the future.
1.20 "Rules and Regulations"shall mean the Rules and Regulations of the Association
as approved from time to time pursuant to Section 5.6.
1.21 "Unit"shall mean any platted lot subject to this Declaration upon which a Dwelling
or a Garage is located or intended to be located,as described in Section 2.1 and shown on the Plat,
including all improvements thereon,but excluding the Common Elements.
Any terms used in the Governing Documents, and defined in the Act but not in this Section, shall
have the meanings set forth in the Act.
SECTION 2
DESCRIPTION OF CIC, UNITS AND APPURTENANCES
2.1 CIC. This Declaration establishes Common Interest Community No. 245 Anoka
County, Minnesota, under the name ISLANDS OF PEACE INTENTIONAL COMMUNITY, a
condominium.It is a condominium(and not a planned community or cooperative),and is not subject
to a master association.
2.2 Units. There are twelve (12) Units, subject to the right of the Declarant to add
additional Units in accordance with Section 18. Units are restricted exclusively to residential use.
Each Unit constitutes a separate parcel of real estate. No additional Units may be created by the
subdivision or conversion of Units pursuant to Section 51513.2-112 of the Act. The Unit identifiers
and locations of the Units are as shown on the Plat,which is incorporated herein by reference,and
a schedule of Units is set forth on Exhibit B. The Unit identifier for a Unit shall be its address and
a letter. An undivided 1/12 interest in the Common Elements and in the common expenses of the
3
Association shall be allocated to each Unit and each Unit shall be entitled to one vote in the
Association.
2.3 Unit Boundaries. The Unit boundaries shall be the walls,floors and ceilings of each
Unit as described in further detail in Section 51513.2-102(b) of the Act.
2.4 Access Easements. Each Unit shall be the beneficiary of an appurtenant easement
for access to a public street or highway on or across the Common Elements paved for use as streets,
as shown on the Plat, subject to any restrictions set forth in the Governing Documents or the Rules
and Regulations.
2.5 Use and Enjoyment Easements. Each Unit shall be the beneficiary of perpetual
appurtenant easements for use and enjoyment on and across the Common Elements,and for use and
enjoyment of any Limited Common Elements allocated to the Unit, subject to any restrictions
authorized by the Governing Documents.
2.6 Utility and Maintenance Easements. Each Unit shall be subject to and shall be the
beneficiary of perpetual appurtenant easements for all services and utilities servicing the Units and
the Common Elements, and for maintenance, repair and replacement as described in Section 13.
2.7 Encroachment Easements. Each Unit shall be subject to and shall be the
beneficiary of the perpetual appurtenant easements for encroachments as described in Section 13.
2.8 Declarant's Easements. Declarant shall have the be the beneficiary of easements
for construction and sales activities as described in Section 17.
2.9 Recorded Easements. The Property shall be subject to such other easements as may
be recorded against it or otherwise shown on the Plat.
2.10 Easements are Appurtenant. All easements and similar rights burdening or
benefitting a Unit or any other party of the Property shall be appurtenant thereto, and shall be
permanent,subject only to termination in accordance with the Act or the terms of the easement. Any
recorded easement benefitting or burdening the Property shall be construed in a manner consistent
with, and not in conflict with, the easements created by this Declaration.
2.11 Impairment Prohibited. No person shall materially restrict or impair any easement
benefitting or burdening the Property, subject to the Declaration and the right of the Association to
establish and enforce reasonable Rules and Regulations governing the use of the Property.
2.12 Benefit of Easements. All easements benefitting a Unit shall benefit the Owners and
Occupants of the Unit, and their families and guests. However, an Owner who has delegated the
right to occupy the Unit to an Occupant or Occupants, whether by a lease or otherwise, does not
have the use and other easement rights in the property during such delegated occupancy, except as
a guest of an Owner or Occupant or in connection with the inspection of the Unit or recovery of
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possession of the Unit from the Occupant pursuant to law.
SECTION 3
COMMON ELEMENTS AND LIMITED COMMON ELEMENTS
3.1 Common Elements. The Common Elements and their characteristics are as follows:
a. All portions of the Property not included within the Units constitute Common
Elements. The Common Elements include those parts of the Property designated as
Common Elements on the Plat or in the Act. The Common Elements are owned by
the Association for the benefit of the Owners and Occupants.
b. The Common Elements shall be subject to (i) certain easements as described in
Sections 2, 13, and 17; (ii) to the rights of Owners and Occupants in Limited
Common Elements appurtenant to their Units; and(iii)the right of the Association
to establish reasonable Rules and Regulations governing the use of the Property.
C. Except as otherwise expressly provided in the Governing Documents, all
maintenance, repair, replacement, management and operation of the Common
Elements shall be the responsibility of the Association.
d. Common Expenses for the maintenance, repair, replacement, management and
operation ofthe Common Elements shall be assessed and collected from the Owners
in accordance with Section 6.
3.2 Limited Common Elements. The Limited Common Elements are those parts of the
Common Elements reserved for the exclusive use of the Owners and Occupants of the Units to
which they are allocated. The rights to the use and enjoyment thereof are automatically conveyed
with the conveyance of such Units. The Limited Common Elements are described and allocated to
the Units as follows:
a. Those items or areas designated as Limited Common Elements on the Plat or by the
Act.
b. Chutes,flues,ducts,pipes,wires,conduit or other utility installations,bearing walls,
bearing columns,or any other components or fixtures lying partially within and any
partially outside the boundaries of a Unit, and serving only that Unit, are allocated
to the Unit they serve. Any portion of such installations serving or affecting the
function of more than one Unit or any portion of the Common Elements is a part of
the Common Elements,but is not a Limited Common Element.
C. Improvements, if any, such as decks, patios,porches, balconies, shutters, awnings,
window boxes, doorsteps, stoops, perimeter doors, windows and window frames,
garage doors,and driveways,constructed as part of the original construction to serve
5
a single Unit, and authorized replacements and modifications thereof authorized
pursuant to Section 8,if located outside the Unit's boundaries,are Limited Common
Elements allocated exclusively to that Unit.
d. Heating, ventilating or air conditioning equipment serving only a certain Unit or
Units, and located wholly or partially outside the Unit or Unit's boundaries, are
allocated to the Unit or Units served by such equipment.
SECTION 4
ASSOCIATION MEMBERSHIP: RIGHTS AND OBLIGATIONS
Membership in the Association and the allocation to each Unit of a portion of the votes in
the Association and a portion of the Common Expenses of the Association shall be governed by the
following provisions:
4.1 Membership. Each Owner Unit shall be a member of the Association by virtue of
Unit ownership, and the membership shall be transferred with the conveyance of the Owner's
interest in the Unit. An Owner's membership shall terminate when the Owner's ownership
terminates. When more than one Person is an Owner of a Unit, all such Persons shall be members
of the Association, but multiple ownership of a Unit shall not increase the voting rights allocated
to such Unit nor authorize the division of the voting rights.
4.2 Voting and Common Expenses. Voting rights and Common Expense obligations
shall be allocated equally among the Dwelling Units, subject to Section 6.4.
4.3 Appurtenant Rights and Obligations. The Ownership of a Unit shall include the
voting rights and Common Expense obligations described in Section 4.2. Said rights, obligations
and interests,and the title to the Units,shall not be separated or conveyed separately. The allocation
of the rights, obligations and interests described in this Section may not be changed, except in
accordance with the Governing Documents and the Act.
4.4 Authority to Vote. The Owner, or some natural person designated to act as proxy
on behalf of the Owner, and who need not be an Owner, may case the vote allocated to such Unit
at meetings of the Association;provided,that if there are multiple Owners of a Unit,only the Owner
or other Person designated pursuant to the provisions of the By-laws may case such vote. The
voting rights of Owners are more fully described in Section 3 of the By-laws.
SECTION 5
ADMINISTRATION
The administration and operation of the Association and the Property, including but not
limited to the acts required of the Association, shall be governed by the following provisions:
5.1 General. The operation and administration of the Association and the Property shall
6
be governed by the Governing Documents,the Rules and Regulations,and the Act. The Association
shall, subject to the rights of the Owners set forth in the Governing Documents and the Act, be
responsible for the operation,management and control of the Property. The Association shall have
all powers described in the Governing Documents, the Act and the statute under which it is
incorporated. All power and authority of the Association shall be vested in the Board,unless action
or approval by the individual owners is specifically required by the Governing Documents or the
Act. All references to the Association shall mean the Association acting through the Board unless
specifically stated to the contrary.
5.2 Operational Purposes. The Association shall operate and manage the Property for
the purposes of(i)administering and enforcing the covenants,restrictions,easements,charges and
liens set forth in the Governing Documents and the Rules and Regulations; (ii) maintaining,
repairing and replacing those portions of the Property for which it is responsible;and(iii)preserving
the value and architectural uniformity and character of the Property.
5.3 Binding Effect of Actions. All agreements and determinations made by the
Association in accordance with the powers and voting rights established by the Governing
Documents or the Act shall be binding upon all Owners and Occupants, and their lessees, guests,
heirs,personal representatives,successors and assigns,and all secured parties as defined in the Act.
5.4 By-laws. The Association shall have By-laws. The By-laws and any amendments
thereto shall govern the operation and administration of the Association,and shall be binding on all
Owners and Occupants.
5.5 Management. The Board may delegate to a manager or managing agent the
management duties imposed upon the Association's officers and directors by the Governing
Documents and the Act. However,such delegation shall not relieve the officers and directors of the
ultimate responsibility for the performance of their duties as prescribed by the Governing
Documents and by law.
5.6 Rules and Regulations. The Board shall have exclusive authority to approve and
implement such reasonable Rules and Regulations as it deems necessary from time to time for the
purpose of operating and administering the affairs of the Association and regulating the use of the
Property; provided that the Rules and Regulation shall not be inconsistent with the Governing
Documents or the Act. The inclusion in other parts of the Governing Documents of authority to
approve Rules and Regulations shall be deemed to be in furtherance, and not in limitation, of the
authority granted by this Section. New or amended Rules and Regulations shall be effective only
after reasonable notice thereof has been given to the Owners.
5.7 Association Assets; Surplus Funds. All funds and real or personal property
acquired by the Association shall be held and used for the benefit of the Owners for the purposes
stated in the Governing Documents. Surplus remaining after payment of or provision for Common
Expenses and reserves shall be credited against future assessments or added to reserves, as
determined by the Board.
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SECTION 6
ASSESSMENTS
6.1 General. Assessments shall be determined and assessed against the Units by the
Board in its discretion;subject to the requirements and procedures set forth in this Section 6 and the
requirements of the By-laws. Assessments for Common Expenses shall include Annual
Assessments under Section 6.2,and may include Special Assessments under Section 6.3 and Limited
Allocation Assessments under Section 6.4. Annual and Special Assessments shall be allocated
among the Units in accordance with the allocation formula set forth in Section 4.2. Limited
Allocation Assessments under Section 6.4 shall be allocated to Units as set forth in that Section.
6.2 Annual Assessments. Annual assessments shall be established and levied by the
Board, subject only to the limitations set forth hereafter. Each Annual Assessment shall cover all
of the anticipated Common Expenses of the Association for that year which are to be shared equally
by all Units in accordance with Section 4.2. Annual Assessments shall be payable in equal monthly
installments. Annual Assessments shall provide, among other things, for an adequate reserve
sufficient to cover the periodic cost of maintenance, repair and replacement of the Common
Elements and those parts of the Units for which the Association is responsible.
6.3 Special Assessments. In addition to Annual Assessments, and subject to the
limitations set forth hereafter, the Board may levy in any assessment year a Special Assessment
against all Units,in accordance with the allocation formula set forth in Section 4.2, for the purpose
of defraying in whole or in part the cost of any unforeseen or unbudgeted Common Expense.
6.4 Limited Allocation Assessments. In addition to Annual Assessments and Special
Assessments,the Board may at its discretion, levy and allocation Limited Allocation Assessments
among only certain Units in accordance with the following requirements and procedures:
a. Any Assessment associated with the maintenance, repair, or replacement of a
Limited Common Element shall be assessed exclusively against the Unit or Units to
which that Limited Common Element is assigned.
b. Any Assessment or portion thereof benefitting fewer than all of the Units shall be
assessed exclusively against the Units benefitted.
C. The costs of insurance may be assessed in proportion to the square footage or actual
cost per Unit, and the costs of utilities may be assessed in proportion to usage.
d. Reasonable attorneys'fees and other costs incurred by the Association in connection
with (i) the collection of Assessments and (ii) the enforcement of the Governing
Documents,the Act,or the Rules and Regulations,against an owner or Occupant or
their guests, may be assessed against the Owner's Unit.
8
i
e. Fees,charges,late charges,fines and interest may be assessed as provided in Section
14.
f. Assessments levied under Section 515B.3-116 of the Act pay a judgment against the
Association may be levied only against the Units existing at the time the judgment
was entered, in proportion to their Common Expense liabilities.
g. If any damage to the Common Elements or another Unit is caused by the act or
omission of any Owner or Occupant,or their guests,the Association shall assess the
costs of repairing the damage exclusively against the Owner's Unit to the extent not
covered by insurance.
h. If any Assessment or installment of an Annual or other Assessment becomes more
than thirty(3 0)days past due,then the Association may,upon ten(10)days written
notice to the Owner, declare the entire amount of the Assessment immediately due
and payable in full.
i. If Common Expense liabilities are reallocated for any purpose authorized by the Act,
Assessments and any installments thereof not yet due shall be recalculated in
accordance with the reallocated Common Expense liabilities.
j. Assessments levied under Sections 6.4a. through g. shall be assessed in addition to
the Assessments levied under Sections 6.2 and 6.3.
6.5 Working Capital Fund. There shall be established a working capital fund to meet
unforeseen expenditures or to purchase additional equipment or services during the Association's
beginning years of operation. The Board shall include in each subsequent annual budget a
reasonable amount of working capital,based upon the anticipated needs of the Association for the
year in question. There shall be contributed on a one-time basis for each Unit sold an amount equal
to two(2)months installments of the Estimated Common Expenses Assessments for the Unit. The
contribution shall be paid at the earlier of the time of closing of sale of the Unit or the time of
termination of the period of Declarant control under Section 17.5. The contributions to this fund are
in addition to the regular monthly installments of Assessments. The funds shall be deposited into
a segregated Association account no later than the termination of the period of Declarant control.
Declarant may not use the funds to defray any of its expenses,reserve contributions or construction
costs, or to make up any budget deficit while Declarant is in control of the Association. However,
upon the closing of the sale of an unsold Unit,Declarant may reimburse itself from funds collected
form the purchaser at the closing for any contributions made by Declarant to the working capital
fund with respect to that Unit.
6.6 Liability of Owners for Assessments. The obligation of an Owner to pay
Assessments shall commence at the later of(i)the time at which the Owner acquires title to the Unit,
or (ii) the due date of the first Assessment levied by the Board. The Owner at the time an
Assessment is payable with respect to the Unit shall be personally liable for the share of the
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Common Expenses assessed against such Unit. Such liability shall be joint and several where there
are multiple Owners of the Unit. The liability is absolute and unconditional. No Owner is exempt
from liability for payment of Assessment by right of set-off,by waiver of use or enjoyment of any
part of the Property,by absence from or abandonment of the Unit,by the waiver of any other rights,
or by reason of any claim against the Association or its officers, directors or agents, or for their
failure to fulfill any duties under the Governing Documents or the Act. The Association may invoke
the charges, sanctions and remedies set forth in Section 14, in addition to any remedies provided
elsewhere in the Governing Documents, the Rules and Regulations, or by law, for the purpose of
enforcing its rights hereunder.
6.7 Assessment Lien. The Association has a lien on a Unit for any Assessment levied
against that Unit from the time the Assessment becomes due. If an Assessment is payable in
installments,the full amount of the Assessment is a lien from the time the first installment thereof
becomes due. Fees, charges, late charges, fines and interest charges imposed by the Association
pursuant to Section 515B.3-102(a)(10), (11) and (12) of the Act are liens, and are enforceable as
Assessments, under this Section 6. Recording of the Declaration constitutes record notice and
perfection of any lien under this Section,and no further recording of any notice of or claim for the
lien is required. The release of the lien shall not release the owner from personal liability unless
agreed to in writing by the Association.
6.8 Foreclosure of Lien,Remedies. A lien for Assessments may be foreclosed against
a Unit under the laws of the State of Minnesota (i) by action, or (ii) by advertisement in a like
manner as a lien under a mortgage containing a power of sale. The Association, or its authorized
representative, shall have the power to bid at the foreclosure sale and to acquire, hold, lease,
mortgage and convey any Unit so acquired. The Owner and any other Person claiming an interest
in the Unit, by the acceptance or assertion of any interest in the Unit, grants to the Association a
power of sale and full authority to accomplish the foreclosure. The Association shall, in addition
to its other remedies,have the right to pursue any other remedy at law or in equity against the Owner
who fails to pay any Assessment or charge against the Unit.
6.9 Lien Priority; Foreclosure. A lien for Assessments is prior to all other liens and
encumbrances on a Unit except(i)liens and encumbrances recorded before the Declaration,(ii)any
first mortgage on the Unit, and(iii) liens for real estate taxes and other governmental assessments
or charges against the Unit. Notwithstanding the foregoing, if(i) a first mortgage on a Unit is
foreclosed,(ii)the first mortgage was recorded on or after the date of recording of this Declaration,
and (iii) no Owner redeems during the Owner's period of redemption provided by Minnesota
Statutes Chapters 5801 581 or 582, then the holder of the sheriff's certificate of sale from the
foreclosure of the first mortgage shall take title to the Unit subject to unpaid Assessments for
Common Expenses levied pursuant to Sections 51513.3-115(a), (e)(1)to (3), (f) and (i) of the Act
which became due,without acceleration,during the six months immediately preceding the first day
following the end of the Owner's period of redemption.
6.10 Voluntary Conveyances; Statement of Assessments. In a voluntary conveyance
of a Unit, the buyer shall not be personally liable for any unpaid Assessments and other charges
10
made by the Association against the seller or the seller's Unit prior to the time of conveyance to the
buyer unless expressly assumed by the buyer. However,the lien of such Assessments shall remain
against the Unit until released. Any seller or buyer shall be entitled to a statement, in recordable
form, from the Association setting forth the amount of the unpaid Assessments against the Unit,
including all Assessments payable in the Associations'current fiscal year,which statement shall be
binding on the Association, seller and buyer.
SECTION 7
RESTRICTIONS ON USE OF PROPERTY
All Owners and Occupants, and all secured parties, by their acceptance or assertion of an
interest in the Property or by their occupancy of a Unit,covenant and agree that, in addition to any
other restrictions which may be imposed by the Act or the Governing Documents, the occupancy,
use, operation, alienation and conveyance of the property shall be subject to the following
restrictions:
7.1 General. The Property shall be owned, conveyed, encumbered, leased, used and
occupied subject to the Governing Document and the Act, as amended from time to time. All
covenants,restrictions and obligations set forth in the Governing Documents are in furtherance of
a plan for the Property, and shall run with the Property and be a burden and benefit to all Owners
and Occupants and to any other Person acquiring or owning an interest in the Property,their heirs,
personal representatives, successors and assigns.
7.2 Subdivision Prohibited. Except as permitted by the Act,no Unit nor any part of the
Common Elements may be subdivided or partitioned without the prior written approval of all owners
and all secured parties holding first mortgages on the Units.
7.3 Residential Use. The Units shall be used by Owners and Occupants and their guests
exclusively as private, single family residential swellings,and not for transient,hotel,commercial,
business or other non-residential purposes, except as provided in Section 7.4. The number of
occupants per Dwelling shall be restricted in accordance with the Building Officials and Code
Administration (BOCA) occupancy restrictions. Any lease of a Unit (except for occupancy by
guests with the consent of the Owner) for a period of less than seven (7) days, or any occupancy
which includes any services customarily furnished to hotel guests, shall be presumed to be for
transient purposes.
7.4 Business Use Restricted. No business,trade,occupation or profession of any kind
whether carried on for profit or otherwise, shall be conducted,maintained or permitted in any Unit
or the Common Elements, except:
a. An Owner or Occupant residing in a Unit may maintain a home business in such Unit
and handle matters relating to such business by telecommunications or
correspondence therefrom, provided that such uses are incidental to the residential
use, do not involve physical alteration of the Unit visible from the exterior, are in
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compliance with all governmental laws and regulations, and do not involve any
observable business activity such as signs, advertising displays, bulk mailings,
deliveries, frequent visitation or use of the Unit by customers or employees, or the
storage of business materials, inventory and the like in Garage Units.
b. The Association may maintain offices on the Property for management and related
purposes.
C. Declarant may maintain offices, sales facilities and other business facilities on the
Property in connection with the exercise of its special declarant rights.
7.5 Leasing. Leasing of Units shall be allowed,subject to reasonable regulation by the
Association,and subject to the following conditions:(i)no Unit shall be leased for transient or hotel
purposes,(ii)no Unit may be subleased,(iii)all leases shall be in writing with a minimum 6 month
term, (iv) all leases shall provide that they are subordinate and subject to the provisions of the
Governing Documents,the Rules and Regulations and the Act, and(v) any failure of the lessee to
comply with the terms of such documents shall be a default under the lease. The Association may
impose such reasonable Rules and Regulations as may be necessary to implement procedures for
the leasing of Units, consistent with this Section.
7.6 Delegation of Use. An Owner may delegate, in accordance with the Governing
Documents, the Owner's right of use and enjoyment of the Unit to persons living in the Unit
pursuant to a legal right of possession;provided,that such persons shall be subject to the Governing
Documents and the Rules and Regulation. If lessees, or other persons other than the Owner or the
Owner's family, have been given the legal right to possess the Owner's Unit, then those persons
shall have the right to use any common recreational facilities,parking,storage and other amenities
on the Property in lieu of the Owner and the Owner's family.
7.7 Parking. Garages and other parking area on the Property shall be used only for
parking of vehicles licensed for road use owned or leased by Owners and Occupants and their
guests,and such other incidental uses as may be authorized in writing by the Association. Garages
shall not be converted to other uses or used for storage or other purposes which would prevent the
parking of vehicles licensed for road use in a garage. The use of garages and other parking areas
on the Property,and the types of vehicles and personal property permitted thereon, shall be subject
to regulation by the Association, including without limitation the right of the Association to tow
illegally parked vehicles or to remove unauthorized personal property.
7.8 Animals. No animal may be bred, kept or maintained for business or commercial
purposes, anywhere on the Property. However, subject to the previous restriction,the Board shall
have the exclusive authority to prohibit, or to allow and regulate by Rules and Regulations, the
keeping of animals on the Property. This authority may be exercised so as to permit or prohibit
different types of animals,but those animals which are permitted(if any)shall be limited to common
domestic house pets such as dogs cats,fish,birds and the like. If pet regulations are changed by the
Board,existing pets owned by current Owners and Occupants shall be permitted to remain as long
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as the affected pet(s) live. The word "animal" shall be construed in its broadest sense and shall
include all living creatures except human beings.
7.9 Quiet Enjoyment;Interference Prohibited. All Owners and Occupants and their
guests shall have a right of quiet enjoyment in their respective Units, and shall use the Property in
such a manner as will not cause a nuisance,not unduly restrict, interfere with or impede the use of
the Property by other Owners and Occupants and their guests.
7.10 Compliance with Law. No use shall be made of the Property which would violate
any then existing municipal codes or ordinances,or state or federal laws,not shall any act or use be
permitted which could cause waste to the Property, cause a material increase in insurance rates on
the Property, or otherwise cause any unusual liability, health or safety risk, or expense, for the
Association or any Owner or Occupant.
7.11 Alterations. Except for those made by Declarant in consideration of its initial sale
of a Unit, no alterations (as defined in Section 8) shall be made, or caused or allowed to be made,
by any Owner or Occupant, or their guests, in any part of the Common Elements, or in any part of
the Unit which affects the Common Elements or another Unit or which is visible from the exterior
of the Unit,without the prior written authorization of the Board, or a committee appointed by it,as
provided in Section 8.
7.12 Vegetation and Ponds. Vegetation, trees, ponds, marshes and wetland areas,
whether located on the Units or the Common Elements,and whether natural or otherwise, shall be
maintained in substantially the same condition as originally established,subject only to(i)changes
authorized by the Association consistent with all statutes, requirements, rules and regulations
imposed on such areas and items by governmental authorities having jurisdiction and(ii)the prior
approval of any such governmental authorities,if required. No cutting,mowing,trimming,draining,
dredging or other alteration of such areas and items shall be permitted,except as authorized by this
Section 7.12, it being the intention that such areas and items remain and be maintained in
substantially their condition as of the date of recording of this Declaration, and subject to natural
changes.
7.13 Time Shares Prohibited. The time share form of ownership, or any comparable
form of lease, occupancy rights or ownership which has the effect of dividing the ownership or
occupancy of a Unit into separate time periods, is prohibited.
7.14 Access to Units. In case of emergency,all Units and Limited Common Elements are
subject to entry, without notice and at any time, by an officer or member of the Board of the
Association,by the Association's management or agents,or by any public safety personnel. Entry
is also authorized for maintenance purposes under Section 9 and for enforcement purposes under
Section 14.
7.15 Refuse and Recycling. The Association shall be authorized to establish rules and
regulations regarding refuse removal, recycling and storage of refuse and recycling containers.
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7.16 Garage Sales. The Association shall be authorized to establish rules and regulations
regarding garage sales and the like.
SECTION 8
ARCHITECTURAL CONTROL
8.1 Restrictions of Alterations. One of the purposes of this Declaration is to ensure that
those parts of the Units which are visible form the exterior be kept architecturally attractive and
uniform in appearance. Therefore, the following restrictions and requirements shall apply to
alterations on the Property:
a. Except as expressly provided in this Section 8,no structure,building,addition,deck,
patio,fence,wall,enclosure,window,exterior door,antenna or other type of sending
or receiving apparatus, sign, display, decoration, color change, shrubbery,material
topographical or landscaping change, nor any other exterior improvements to or
alteration of any Dwelling or any other part of a Unit which is visible from the
exterior of the Unit(collectively referred to as "alterations"), shall be commenced,
erected or maintained, unless and until the plans and specifications showing the
nature, kind, shape, height, color, materials and locations or the alternations shall
have been approved in writing by the Board or a committee appointed by it.
Declarant's written consent shall also be required for alterations until the expiration
of the Declarant control period described in Section 17.5.
b. The Board may appoint an architectural committee, and specifically delegate to it
part or all of the functions which the Board exercises under this Section 8, in which
case the references to the Board shall refer to the architectural committee where
appropriate. The architectural committee shall be subject to the supervision of the
Board.
C. The Board shall establish the criteria for approval of alterations,which shall include
and require, at a minimum:
(1) substantial uniformity of color, size, location,type and design in relation to
existing Dwellings and topography,
(2) comparable or better quality of materials as used in existing Dwellings,
(3) ease of maintenance and repair,
(4) adequate protection of the Property,the Association,Owners and Occupants
from liability and liens arising out of the proposed alterations,
(5) substantial preservation of other Owners' sight lines, if material, and
14
(6) compliance with governmental laws, codes and regulations.
The Board, or the appointed committee if so authorized by the Board, shall be the
sole judge of whether the criteria are satisfied.
d. Approval of alterations which encroach upon another Unit or the Common Elements
shall create an appurtenant easement for such encroachment in favor of the Unit as
to which the alternations are approved,notwithstanding any contrary requirement in
the Governing Documents or the Act. A file of resolutions approving all alterations
shall be maintained permanently as a part of the Association's records.
e. The Board shall establish rules and regulations regarding satellite dishes and
antennas and any other devices requiring exterior mounting.
8.2 Review Procedures. The following procedures shall govern requests for alterations
under this section:
a. Detailed plans, specification and related information regarding any proposed
alteration, in form and content acceptable to the Board (or committee), shall be
submitted to the Board(or committee)at least sixty(60)days prior to the projected
commencement of construction. No alterations shall be commenced prior to
approval.
b. The Board (or committee) shall give the Owner written notice of approval or
disapproval. If the Board(or committee)fails to approve or disapprove within sixty
(60) days after receipt of said plans and specifications and all other information
requested by the Board(or committee),then approval shall be deemed to be granted;
provided that the alterations are done in accordance with the plans,specifications and
related information which were submitted.
C. If no request for approval is submitted approval is denied unless(i)the alternations
are reasonable visible and(ii)no written notice of the violation has been given to the
Owner in whose Unit the alterations are made,by the Association or another Owner,
within nine (9) months following the date of completion of the alterations. Notice
may be direct written notice or the commencement of legal action by the Association
or an Owner. The Owner of the Unit in which the alterations are made shall have the
burden of proof, by clear and convincing evidence, that the alterations were
completed and reasonable visible for at least nine(9)months following completion
and that the notice was not given.
8.3 Remedies for Violations. The Association may undertake any measures, legal or
administrative, to enforce compliance with this Section and shall be entitled to recover from the
Owner causing or permitting the violation all attorneys' fees and costs of enforcement incurred by
the Association, whether or not a legal action is started. Such attorneys' fees and costs shall be a
15
lien against the Owner's Unit and a personal obligation of the Owner. In addition,the Association
shall have the right to enter the Owner's Unit and to restore any part of the Dwelling or Unit to its
prior condition if any alterations were made in violation of this Section, and the cost of such
restoration shall be a personal obligation of the Owner and a lien against the Owner's Unit as further
described in the Act.
8.4 Hold Harmless. The Owner who causes an alteration to be made, regardless of
whether the alteration is approved by the Board, shall be solely responsible for the construction
standards and specifications relating to the alteration, and the construction work. The Owner, and
not the Association, is responsible for determining whether any alteration is in violation of any
restrictions imposed by any governmental authority having jurisdiction over the Property. The
Owner shall hold the Association harmless and indemnify the Association, and its officers and
directors, from and against any expenses, claims, damages, losses or other liabilities, including
without limitation attorneys' fees and costs of litigation, arising out of(i) any alteration which
violates any governmental laws or regulations, (ii) the adequacy of the specifications for
construction of the alterations, and(iii)the construction of the alterations.
SECTION 9
MAINTENANCE
9.1 Maintenance by Association. The Association shall provide for all maintenance,
repair or replacement (collectively referred to as "maintenance") of the Common Elements,
including all improvements thereon. In addition, for the purpose of preserving the architectural
character, quality, uniformity and high standards for appearance of the Property, the Association
shall provide for exterior maintenance upon the Dwelling and/or Units as follows:
a. paint,repair and replace roofs,gutters,downspouts,decks,perimeter doors,
garage doors (except hardware), windows and window frames, exterior
siding and other building surfaces,sidewalks,driveways patios,foundations
and foundation walls and structural members.
b. provide for lawn,shrub and tree maintenance and watering on the yard areas
of all Units.
C. provide for snow and ice removal and related maintenance.
The Association's obligation to maintain exterior building surfaces shall exclude door hardware,air
conditioning equipment and any other items not specifically referred to in this Section, unless
otherwise approved under Section 9.2. The Association shall have easements as described in
Section 13 to perform its obligations under this Section 9.
9.2 Optional Maintenance by Association. In addition to the maintenance described
in Section 9.1, the Association may, with the approval of a majority of votes cast in person or by
proxy at a meeting called for such purposes,undertake to provide additional exterior maintenance
16
to the Units or Dwellings, or maintenance of water and sewer systems within the Units.
9.3 Maintenance by Owner. Except for the exterior maintenance required to be
provided by the Association under Section 9.1 or 9.2,all maintenance of the Dwellings and Units,
including Limited Common Elements allocated to a particular Unit,shall be the sole responsibility
and expense of the Owners thereof. However, the Owners and Occupants shall have a duty to
promptly notify the Association of defects in or damage to those parts of the Property which the
Association is obligated to maintain. The Association may require that any exterior maintenance
to be performed by the Owner be accomplished pursuant to specific uniform criteria established by
the Association. The Association may also undertake any exterior maintenance which the
responsible Owner fails to or improperly performs and assess the Unit and the Owner for the cost
thereof. Such cost shall be a personal obligation of the Owner and a lien against the Owner's Unit.
9.4 Damage Caused by Owner. Notwithstanding any provision to the contrary in this
Section,if,in the judgment of the Association,the need for maintenance of any part of the Property
is caused by the willful or negligent act or omission of an Owner or Occupant,or their guests,or by
a condition in a Unit which the Owner or Occupant has willfully or negligently allowed to exist,the
Association may cause such damage or condition to be repaired or corrected (and enter upon any
Unit to do so)and the cost thereof may be assessed against the Owner responsible for the damage.
Such cost shall be a personal obligation of the Owner and a lien against the Owner's Unit. In the
case of party walls between Dwellings, the Owners of the affected Dwellings shall be liable as
provided in Section 10.
SECTION 10
PARTY WALLS
10.1 General Rules of Law to Apply. Each wall or floor/ceiling built as part of the
original construction of the Dwelling and located on the boundary line between Units shall constitute
a party wall,and,to the extent not inconsistent with the provisions of this Section,the general rules
of law regarding party walls and liability for property damage due to negligent or willful acts or
omissions shall apply thereto.
10.2 Repair and Maintenance. The Owners of the Units which share the party wall shall
be responsible for the maintenance,repair and replacement of the party wall in equal proportions;
provided(i)that any maintenance,repair or replacement necessary due to the acts or omissions of
a certain Owner or Occupant sharing such party wall shall be paid for by such Owner or Occupant,
and (ii) that the Association may contract for and supervise the repair of damage caused by an
Owner or Occupant and assess the Owners for their respective shares of the cost to the extent not
covered by insurance. Such cost shall be a personal obligation of the Owner and a lien against the
Owner's Unit.
10.3 Destruction by Fire or Other Casualty. If a party wall is destroyed or damaged
by fire or other casualty, any Owner who has use of the wall may, with the consent of the
Association,restore it, and the other Owner shall promptly reimburse the Owner who restored the
17
wall for his or her share of the cost of restoration thereof, provided, however, that the cost of
restoration resulting form destruction o r other casualty resulting from the acts or omissions of any
Owner shall be the financial responsibility of such Owner, and the Association may assess the
responsible Owners for their share of the costs,without prejudice to the right of an Owner to recover
a larger contribution form the other Owner. Insurance claims shall be made promptly following any
casualty.
10.4 Weatherproofing. Notwithstanding any other provision ofthis Section,any Owner
who, by his or her negligent or willful act, causes a party wall to be exposes to the elements shall
bear the whole cost of the repairs necessary for protection against such elements.
10.5 Right to Contribution Runs with Land. The right of any Owner to contribution
from any other Owner under this Section shall be appurtenant to the Unit and shall pass to such
Owner's assigns and successors in title.
10.6 Arbitration. If any dispute concerning a party wall is not resolved within thirty(3 0)
days of the event causing the dispute,the matter shall be submitted to binding arbitration under the
rules of the American Arbitration Association, upon the written demand of the association or any
Owner whose Dwelling shares the party wall. Each party agrees that the decision of the arbitrators
shall be final and conclusive of the questions involved. The fees of the arbitrators shall be shared
equally by the parties,but each party shall pay its own attorneys' fees or other costs incurred in the
arbitration.
SECTION 11
INSURANCE
11.1 Required Coverage. The Association shall obtain and maintain, at a minimum, a
master policy or policies of insurance in accordance with the insurance requirements set forth in the
Act and the additional requirements set forth herein, issued by a reputable insurance company or
companies authorized to do business in the State of Minnesota, as follows:
a. Property insurance covering all risks of physical loss (if available) in an amount
equal to one hundred percent (100%) of the insurable "replacement cost" of the
Property, less deductibles, exclusive of land, footings, excavation and other items
normally excluded from coverage(but including all building service equipment and
machinery). The policy shall cover personal property owned by the Association.
The policy shall also contain"Inflation Guard"and"Agreed Amount"endorsements,
if reasonably available. Such policy shall include additional endorsements,
coverages and limits with respect to the foregoing and other hazards as may be
required form time to time by the regulations of the Federal National Mortgage
Association ("FNMA") or the Federal Home Loan Mortgage Corporation
("FHLMC")as a precondition to their insuring,purchasing or financing a mortgage
on a Unit. The Association may also enter into binding written agreements with a
mortgagee,insurer or servicer, including without limitation the FNMA or FHLMC,
18
obligating the Association to keep certain specified coverages or endorsements in
effect.
b. Comprehensive public liability insurance covering the use, operation and
maintenance of the Common Elements, with minimum limits of$1,000,000 per
occurrence, against claims for death, bodily injury and property damage, and such
other risks as are customarily covered by such policies for projects similar in
construction, location and use to the Property. The policy shall contain a
"severability of interest"endorsement which shall preclude the insurer from denying
the claim of an Owner or Occupant because of negligent acts of the Association or
other Owners or Occupants. The policy shall include such additional endorsements,
coverages and limits with respect to such hazards an may be required by the
regulations of the FNMA or FHLMC as a precondition to their insuring,purchasing
or financing a mortgage on a Unit.
C. Fidelity bond or insurance coverage against dishonest acts on the part of directors,
officers, managers, trustees, employees or persons responsible for handling funds
belonging to or administered by the Association if deemed to be advisable by the
Board or required by the regulations of the FNMA or FHLMC as a precondition to
the purchase or financing of a mortgage on a Unit. The fidelity bond or insurance
shall name the Association as the named insured and shall, if required by the
regulations of the FNMA or FHLMC as a precondition to their insuring,purchasing
or financing of a mortgage on a Unit,be written in an amount equal to the greater of
(i)the estimated maximum of Association funds, including reserves, in the custody
of the Association or management agent at any given time while the bond is in force,
or (ii) a sum equal to three months aggregate assessments on all Units. An
appropriate endorsement to the policy to cover any persons who serve without
compensation shall be added(if available) if the policy would not otherwise cover
volunteers.
d. Workers' Compensation insurance as required by law.
e. Directors and officers liability insurance with such reasonable limits and coverages
as the Board shall determine from time to time.
f. Such other insurance as the Board may determine from time to time to be in the best
interests of the Association and the Owners.
11.2 Premiums;Improvements;Deductibles. All insurance premiums shall be assessed
and paid as part of the Annual Assessment, and allocated among the Units as determined by the
Board consistent with the Governing Documents. The insurance need not cover improvements to
the Units installed by Owners,but if improvements are covered,any increased cost may be assessed
against the Units affected. The Association may,in the case of a claim for damage to a Unit,(i)pay
the deductible amount as a Common Expense, (ii) assess the deductible amount against the Units
19
affected in any reasonable manner, or (iii) require the Owners of the Units affected to pay the
deductible amount directly.
11.3 Loss Payee; Insurance Trustee. All insurance coverage maintained by the
Association shall be written in the name of, and the proceeds thereof shall be payable to, the
Association(or a qualified insurance trustee selected by it)as trustee for the benefit of the Owners
and secured parties, including Eligible Mortgagees, which suffer loss. The Association, or any
insurance trustee selected by it, shall have exclusive authority to negotiate, settle and collect upon
any claims or losses under any policy maintained by the Association.
11.4 Waivers of Subrogation. All policies or insurance shall contain waivers of
subrogation by the insurer against any Owner or member of the Owner's household and against the
Association and member of the Board,officers or directors,and,if available,waivers of any defense
based on coinsurance or of invalidity from any acts or the insured.
11.5 Cancellation;Notice of Loss. All policies ofproperty insurance and comprehensive
liability insurance maintained by the Association shall provide that the policies shall not be canceled
or substantially modified,for any reason,without at least sixty(60)days prior written notice to the
Association, to the FNMA or FHLMC (if applicable), all of the insureds and all Eligible
Mortgagees.
11.6 Restoration in Lieu of Cash Settlement. All policies of property insurance
maintained by the Association shall provide that,despite any provisions giving the insurer the right
to elect to restore damage in lieu of a cash settlement, such option shall not be exercisable (i)
without the prior written approval of the Association (or any Insurance Trustee) or (ii) when in
conflict with provisions of any insurance trust agreement to which the Association may be a party,
or any requirement by law.
11.7 No Contribution. All policies of insurance maintained by the Association shall be
the primary insurance where there is other insurance in the name of the Owner covering the same
property,and may not be brought into contribution with any insurance purchased by Owners or their
Eligible Mortgagees.
11.8 Effect of Acts Not Within Association's Control. All policies of insurance
maintained by the Association shall provide that the coverage shall not be voided by or conditioned
upon(i) any act or omission of an Owner or Eligible Mortgagee,unless acting within the scope of
authority on behalf of the Association, or (ii) any failure of the Association to comply with any
warrant or condition regarding any portion of the Property over which the Association has no
control.
11.9 Owner's Personal Insurance. Each Owner may, and is strongly encouraged to,
obtain additional personal insurance coverage at his or her own expense covering fire and other
casualty to the Unit,personal property and personal liability. All insurance policies maintained by
owners shall provide that they are without contribution as against the insurance purchased by the
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Association.
SECTION 12
RECONSTRUCTION, CONDEMNATION AND TERMINATION
12.1 Reconstruction. The obligations and procedures for the repair, reconstruction or
disposition of the Property following damage or destruction thereof shall be governed by the Act.
Any repair or reconstruction shall be substantially in accordance with the plans and specifications
of the Property as initially constructed and subsequently improved. The Association shall have all
authority necessary to cause the Property to be reconstructed, including without limitation the
authority(i)to require the Owners to enter into reconstruction contracts on their respective Units,
or(ii)to contract for the reconstruction of the Units on behalf of the Owners.
12.2 Condemnation.In the event of a taking of any part of the Property by condemnation,
the provisions of the Act shall govern.
12.3 Termination and Liquidation. The termination ofthe common interest community,
and the distribution of any proceeds therefrom, shall be governed by the Act. Unless otherwise
provided by the Act,such termination must be approved by Owners of Units to which are allocated
at least 80% of the total votes in the Association and 80% of the first mortgagees of Units (each
mortgagee having one vote per unit financed). Any distribution of funds shall be based upon the
value of the Units as determined by their relative value for property insurance purposes, and shall
be made to Owners and their mortgage holders,as their interests may appear,as provided in the Act.
12.4 Notice. The Association shall give written notice of any condemnation proceedings
or substantial destruction of the Property to the Eligible Mortgagees entitled to notice under Section
16.10.
12.5 Association's Authority. In all cases involving reconstruction, condemnation,
termination or liquidation of the common interest community,the Association shall have authority
to act on behalf of the Owners in all proceedings, negotiations and settlement of claims. All
proceeds shall be payable to the Association to hold and distribute for the benefit of the Owners and
their mortgage holders, as their interests may appear, in accordance with the Act.
SECTION 13
EASEMENTS
13.1 Easement for Encroachments. Each Unit and the Common Elements, and the
rights of the Owners and Occupants therein, shall be subject to an exclusive easement for
encroachments in favor of the adjoining Units for fireplaces,walls,roof overhangs,air conditioning
systems,decks,balconies,porches,patios,utility installations and other appurtenances(i)which are
part of the original construction of the adjoining Unit or the Property or (ii) which are added
pursuant to Section 8. If there is an encroachment by a Dwelling,or other building or improvement
located in a Unit, upon another Unit or Dwelling as a result of the construction, reconstruction,
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repair,shifting,settlement or movement of any part of the Property,an appurtenant easement for the
encroachment, for the use, enjoyment and habitation of any encroaching Dwelling, building or
improvement, and for the maintenance thereof, shall exist; provided that with respect to
improvements or alterations added pursuant to Section 8, no easement shall exist unless the same
have been approved, and the proposed improvements constructed, as required by this Declaration.
Such easements shall continue for as long as the encroachment exists and shall not affect the
marketability of title.
13.2 Easement for Maintenance, Repair, Replacement and Reconstruction. Each
Unit, and the rights of the Owners and Occupants thereof, shall be subject to the rights of the
Association to an exclusive, appurtenant easement on and over the Units for the purposes of
maintenance, repair, replacement and reconstruction of the dwellings and other improvements
located within the Units, and utilities serving the Units, to the extent necessary to fulfill the
Associations' obligations under the Governing Documents.
13.3 Utilities Easements. The Property shall be subject to non-exclusive, appurtenant
easements in favor of all utility providers for the installation, use, maintenance, repair and
replacement of all utilities which exist,are constructed as part of the development of the Property,
or are referred to in the plat or otherwise described in this Declaration or any other duly recorded
instrument. Each Unit, and the rights of the Owners and Occupants thereof, shall be subject to a
non-exclusive easement in favor of the other Units for all such utilities; provided that the utilities
shall be installed used maintained and repaired so as not to interfere with the use and quiet
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enjoyment of the Units by the Owners and Occupants, nor affect the structural or architectural
integrity of the Units.
13.4 Emergency access to Units. In case of emergency,all Units and Limited Common
Elements are subject to an easement for access, without notice and at any time, by an officer or
member of the Board,by the Association's management agents or by any public safety personnel.
13.5 Project Sign Easements. Declarant and the Association shall have the right to erect
and maintain monument signs identifying the common interest community and related decorative
improvements on the Common Elements. Those parts of the Property on which monument signs
or related decorative improvements are located shall be subject to appurtenant,exclusive easements
in favor of the association for the continuing use,maintenance,repair and replacement of said signs
and improvements. In exercising its rights under said easements, the Association shall take
reasonable care to avoid damaging the improvements to the Property.
13.6 Continuation and Scope of Easements. Nothwithstanding anything in this
Declaration to the contrary, in no event shall an Owner or Occupant be denied reasonable access to
his or her Unit or the right to utility services thereto. The easements set forth in this Section shall
supplement and not limit any easements described elsewhere in this Declaration or recorded, and
shall include reasonable access to the easement areas through the Units and the Common Elements
for purposes of maintenance, repair, replacement and reconstruction. All easement rights shall
include a right of reasonable access to maintain, repair and replace the utility lines and related
22
equipment.
SECTION 14
COMPLIANCE AND REMEDIES
Each Owner and Occupant, and any other Person owning or acquiring any interest in the
Property, shall be governed by and comply with the provisions of the Act, the Governing
Documents,the Rules and Regulations, and such amendments thereto as may be made from time
to time,and the decisions of the Association. A failure to comply shall entitle the Association to the
relief set forth in this Section, in addition to the rights and remedies authorized elsewhere by the
Governing Documents and the Act.
14.1 Entitlement to Relief. The Association may commence legal action to recover sums
due,for damages,for injunctive relief or to foreclose a lien owned by it,or any combination thereof,
or an action for any other relief authorized by the Governing Documents or available at law or in
equity. Legal relief may be sought by the Association against any Owner, to enforce compliance
with the Governing Documents, the Rules and Regulations, the Act or the decisions of the
Association. However,no Owner may withhold any assessments payable to the Association,to take
or omit other action in violation of the Governing Documents,the Rules and Regulations or the Act,
as a measure to enforce such Owner's position, or for any other reason.
14.2 Sanctions and Remedies. In addition to any other remedies or sanctions,expressed
or implied, administrative or legal, the Association shall have the right, but not the obligation, to
implement any one or more of the following actions against Owners and Occupants and/or their
family or guests,who violate the provisions ofthe Governing Documents,the Rules and Regulations
or the Act:
a. Commence legal action for damages or equitable relief in any court of competent
jurisdiction.
b. Impose late charges in any reasonable amount as determined by the Board of
Directors in its discretion from time to time, and interest at up to the highest rate
permitted by law,for each past due Assessment or installment thereof and any other
amounts lawfully assessed against an Owner or a Unit.
C. In the event of default of more than thirty (30) days in the payments of any
Assessment or installment thereof, all remaining installments of Assessments
assessed against the Unit owned by the defaulting Owner may be accelerated and
shall then be payable in full if all delinquent Assessments,together with all costs of
collection and late charges, are not paid in full prior to the effective date of the
acceleration. Reasonable advance written notice of the effective date of the
acceleration shall be given to the defaulting owner.
d. Impose reasonable fines, penalties or charges for each violation of the Act, the
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r
Governing Documents or the Rules and Regulations of the Association.
e. Suspend the rights of any Owner to vote when the assessments due with respect to
the Owner's Unit are past due and suspend the rights of any Owner or Occupant and
their family or guests to use any Common Element amenities; provided that this
limitation shall not apply to Limited Common Elements or deck,balcony,porch or
patio easements, appurtenant to the Unit, and those portions of the Common
Elements providing utility service and access to the Unit. Such suspensions shall be
limited to periods of default by such Owners and Occupants in their obligations
under the Governing Documents, and for up to thirty(30) days thereafter, for each
violation.
f. Restore any portions of the Common Elements or Limited Common Elements
damaged or altered,or allowed to be damaged or altered,by any owner or Occupant
or their family or guests in violation of the Governing Documents,and to assess the
cost of such restoration against the responsible Owners and their Units.
g. Enter any Unit of Limited Common Element in which,or as to which,a violation or
breach of the Governing Documents exists which materially affects or is likely to
materially affect in the near future, the health or safety of the other Owners or
Occupants or their guests, or the safety or soundness of any Dwelling or other part
of the Property or the property of the Owners or Occupants,and to abate and remove,
at the expense of the offending Owner or Occupant,any structure,thing or condition
in the Unit or Limited Common Elements which is causing the violation;provided,
that any improvements which are a part of a Unit may be altered or demolished only
pursuant to a court order or with the agreement of the Owner.
h. Foreclose any lien arising under the provisions of the Governing Documents or under
law, in the manner provided by the Act.
14.3 Rights to Hearing. In the case of imposition of any of the remedies authorized by
Section 14.2 d.,e.,f.or g.of this Section,the Board shall,upon written request of the offender,grant
to the offender a fair and equitable hearing as contemplated by the Act. The offender shall be given
notice of the nature of the violation and the right to a hearing,and at least ten(10)days within which
to request a hearing. The hearing shall be scheduled by the Board and held within thirty(30)days
of receipt of the hearing request by the Board, and with at least then(10)days prior written notice
of the offender. If the offending Owner fails to timely request a hearing or to appear at the hearing,
then the right to a hearing shall be deemed waived and the Board may take such action as it deems
appropriate. The decision of the Board and the rules for the conduct of hearings established by the
Board shall be final and binding on all parties. The Board's decision shall be delivered in writing
to the offender within ten (10) days following the hearing, if not delivered to the offender at the
hearing.
14.4 Lien for Charges, Penalties, etc. Any Assessments, charges, fines, penalties or
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15.2 Procedures. Approval of the Owners may be obtained in writing or at a meeting of
the Association duly held in accordance with the By-laws. Consent of Eligible Mortgagees, the
FHA, the VA and Declarant shall be in writing. Any amendment shall be subject to any greater
requirements imposed by the Act. The amendment shall be effective when recorded as provided in
the Act. An affidavit by the Secretary of the Association as to the outcome of the vote, or the
execution of the foregoing agreements or consents, shall be adequate evidence thereof for all
purposes, including without limitation, the recording of the amendment.
SECTION 16
RIGHTS OF ELIGIBLE MORTGAGEES
Notwithstanding anything to the contrary in the Governing Documents, and subject to any
greater requirements of the Act or other laws, Eligible Mortgagees shall have the following rights
and protections:
16.1 Consent to Certain Amendments. The written consent of Eligible Mortgagees
representing at least fifty-one percent(51%)of the Units that are subject to first mortgages held by
Eligible Mortgagees(based on one vote per Unit financed)shall be required for any amendment to
the Governing Documents which causes any change in provisions including the following:(i)voting
rights; (ii) increases in Assessments over twenty-five percent(25%),Assessment liens, or priority
of Assessment liens;(iii)reductions in reserves for maintenance,repair and replacement of Common
Elements; (iv) responsibility for maintenance and repairs; (v) reallocation of interests in the
Common Elements or Limited Common Elements,or rights to their use;(vi)redefinition of any Unit
boundaries; (vii) convertibility of Units into Common Elements or vice versa; (viii) expansion or
contraction of the Property or the addition, annexation or withdrawal of property to or from the
Property;(ix)hazard or fidelity insurance requirements;(x)imposition or restrictions on the leasing
of Units; (xi) imposition of any restrictions on an Owner's right to sell or transfer his or her Unit;
(xii)a decision by the Association(if the project involves fifty(50)of more Units)to establish self
management when professional management is in effect as required previously by the Governing
Documents or an Eligible Mortgagee; (xiii) restoration or repair of the Property (after a hazard
damage or partial condemnation)in a manner other than that specified in the Governing Documents;
(xiv) any action to terminate the legal status of the common interest community after substantial
destruction or condemnation occurs; or (xv) any provision that expressly benefit Eligible
Mortgagees, or insurers or guarantors of mortgages.
16.2 Consent to Certain Actions. The written consent of Eligible Mortgagees
representing at least sixty-seven percent(67%)of the Units that are subject to first mortgages held
by Eligible Mortgagees(based upon one vote per Unit financed)shall be required to(i)change the
allocations of voting rights,Common Expense obligations or interest in the Common Elements;(ii)
partition or subdivide a Unit except as permitted by statute; (iii) abandon, partition, subdivide,
encumber or sell the Common Elements; or(iv) use hazard insurance proceeds for other than the
repair, replacement or reconstruction of the property except as otherwise provided by law.
16.3 Consent to Subdivision. No Unit may be partitioned or subdivided without the prior
26
written approval of the Owner and Eligible Mortgagee thereof, and the Association.
16.4 No Right to First Refusal. The right of an Owner to sell, transfer or otherwise
convey is or her Unit shall not be subject to any right of first refusal or similar restrictions.
16.5 Priority of Lien. Any holder of a first mortgage on a Unit or any purchaser of a first
mortgage at a foreclosure sale, that comes into possession of a Unit by foreclosure of the first
mortgage or by deed or assignment in lieu of foreclosure takes the Unit free of any claims for unpaid
Assessments or any other charges or liens imposed against the Unit by the Association which have
accrued against such Unit prior to the acquisition of possession of the Unit by said first mortgage
holder or purchaser; (i) except as provided in Section 6.10 and the Act and (ii) except that any
unreimbursed Assessments or charges may be reallocated among all Units in accordance with their
interests in the Common Elements.
16.6 Priority of Taxes and Other Charges. All taxes,Assessments and charges which
may become liens prior to the first mortgage under state law shall relate only to the individual Units
and not to the Property as a whole.
16.7 Priority for Condemnation Awards. No provision of the Governing Documents
shall give an Owner or any other party priority over any rights of the Eligible Mortgagee of the Unit
pursuant to its mortgage in the case of a distribution to such Owner of insurance proceeds or
condemnation awards for losses to or a taking of the Unit and/or the Common Elements. The
Association shall give written notice to all Eligible Mortgagees of any condemnation or eminent
domain proceeding affecting the Property promptly upon receipt of notice form the condemning
authority.
16.8 Requirements for Management Agreements. The term of any agreement for
professional management of the Property may not exceed two years. Any such agreement must
provide at a minimum for termination without penalty or termination fee by either party (i) with
cause upon thirty(30) days prior written notice and(ii)without cause upon ninety(90) days prior
written notice.
16.9 Access to Books and Records/Audit. Eligible Mortgagees shall have the right to
examine the books and records of the Association upon reasonable notice during normal business
hours,and to receive free of charge,upon written request,copies of the Association's annual reports
and other financial statements. Financial statements, including those which are audited, shall be
available within one hundred twenty(120) days of the end of the Association's fiscal year. If the
common interest community consists of fewer than fifty (50) Units, FNMA, FHLMC or any
institutional guarantor or insurer of a mortgage loan against a Unit, may require that, at its own
expense,an audit of the Association's financial statements be made for the preceding year,in which
case the Association shall cooperate in having an audit made and a copy given to the requesting
party. If the common interest community consists of fifty(50)or more Units,the Association shall
provide the requested audit at its expense.
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16.10 Notice Requirements. Upon written request to the Association,identifying the name
and address of the holder, insurer or guarantor of a mortgage on a Unit, and the Unit number or
address,the older, insurer or guarantor shall be entitled to timely written notice of-
a.
£a. a condemnation loss or any casualty loss which affects a material portion of the
Property or the Unit securing the mortgage;
b. a sixty(60)day delinquency in the payment of Assessments or charges owed by the
Owner of a Unit on which it holds a mortgage;
C. a lapse,cancellation or material modification of any insurance policy maintained by
the Association;
d. a proposed action which requires the consent of a specified percentage of Eligible
Mortgagees.
SECTION 17
SPECIAL DECLARANT RIGHTS
Declarant hereby reserves exclusive and unconditional authority to exercise the following
special declarant rights within the meaning of section 515B.1-103(32) of the Act for as long as it
owns a Unit, or for such shorter period as may be specifically indicated:
17.1 Complete Improvements. To complete all the Units and other improvements
indicated on the Plat, or otherwise included in Declarant's development plans or allowed by the
Declaration, and to make alterations in the Units and Common Elements to accommodate the
exercise of any special declarant rights. Declarant may,but is not obligated to,build one or more
garages on the property.
17.2 Sales Facilities. To construct, operate and maintain a sales office, management
office,model Units and other developments,sales and rental facilities within the Common Elements,
and within any Units owned by Declarant from time to time, located anywhere on the Property.
17.3 Signs. To erect and maintain signs and other sales displays offering the Units for sale
or lease, in or on any Unit owned by Declarant and on the Common Elements.
17.4 Easements. To have and use easements, for itself, its employees, contractors,
representatives,agents and prospective purchasers through and over the Common Elements and the
yard areas of the Units for the purpose of exercising its special declarant rights.
17.5 Control of Association. To control the operation and administration of the
Association, including without limitation the power to appoint and remove the members of the
Board pursuant to Section515B.3-103 of the Act, until the earliest of(i) voluntary surrender of
control by Declarant, (ii) an Association meeting which shall be held within sixty (60) days after
28
conveyance to owners other than a Declarant of seventy-five percent(75%) of the total number of
Units authorized to be included in the Property, or(iii)the date three (3)years following the date
of the first conveyance of Unit to an Owner other than a Declarant. Notwithstanding the foregoing,
the Owners other than a Declarant shall have the right to nominate and elect not less than one-third
(1/3)of the directors at a meeting of the Owners which shall be held within sixty(60)days following
the conveyance by Declarant of fifty percent (50%) of the total number of Units authorized to be
included in the Property.
17.6 Consent to Certain Amendments. Until such time as Declarant no longer owns any
Unit for initial sale, Declarant's written consent shall be required for any amendment to the
Governing Documents or Rules and Regulations which directly or indirectly affects Declarant's
rights under the Governing Documents of the Act.
SECTION 18
RIGHTS TO ADD ADDITIONAL REAL ESTATE
Declarant hereby expressly reserves the right to add the Additional Real Estate to the
Property, by unilateral action under Section 515B.2-111 of the Act, subject to the following
conditions:
18.1 Time Limit. The right of Declarant to add the Additional Real Estate to the common
interest community shall terminate ten(10)years after the date of recording of this Declaration or
upon earlier express written withdrawal of such right by Declarant or a successor Declarant,unless
extended by a vote of the Owners pursuant to Section 515B.2-106(2)of the Act. There are no other
limitations on Declarant's rights hereunder except as may be imposed by law.
18.2 Description. The Additional Real Estate is described in Exhibit C. The Additional
Real estate may be added to the Property in parcels consisting of one (1) or more platted lots, or
portions thereof.
18.3 Limits on Obligation to Add. There are no assurances as to the times at which any
part of the Additional Real Estate will be added to the Property,the order in which it will be added,
the number of parcels per phase nor the size of the parcels. Declarant has no obligation to add the
Additional Real Estate to the Property. The Additional Real Estate may be developed by Declarant
or its successors in interest for other purposes, subject only to approval by the appropriate
governmental authorities.
18.4 Maximum Units. Based on Declarant's good faith estimate,the maximum number
of Units that may be created within the Additional Real Estate described as such on the date of this
Declaration is two hundred(200). All Dwelling Units created on the Additional Real Estate shall
be restricted exclusively to residential use and all Garage Units created on the Additional Real Estate
shall be restricted exclusively to vehicle parking and associated use.
18.5 Architectural Compatibility. No assurances are made as to whether any Units,
29
Dwellings and other structures, erected upon the Additional Real Estate shall be compatible with
the other Units, Dwellings and other structures which are part of the Property in terms of
architectural style, quality of construction,principal materials employed in construction and size.
Decisions will be made based on (i) requirements of governmental authorities or lenders, (ii)
financial and market conditions, and(iii)the condition of exiting structures on the property.
18.6 Application of Covenants. All covenants and restrictions contained in this
Declaration affecting the use, occupancy and alienation of Units shall apply to all Units created on
the Additional Real Estate.
18.7 Effect on Excluded Property. The statements made in Subsections 18.1 through
18.6 shall not apply to any Additional Real Estate which is not added to the Property.
SECTION 19
MISCELLANEOUS
19.1 Severability. If any term, covenant or provision of this instrument or any exhibit
attached hereto is held to be invalid or unenforceable for any reason whatsoever,such determination
shall not be deemed to alter, affect or impair in any manner whatsoever any other portion of this
instrument or exhibits.
19.2 Construction. Where applicable the masculine gender of any word used herein shall
mean the feminine or neutral gender, or vice versa, and the singular of any work used herein shall
mean the plural, or vice versa. References to the Act, or any section thereof, shall be deemed to
include any statutes amending or replacing the Act, and the comparable sections thereof.
19.3 Tender of Claims. If any incident occurs which could reasonable give rise to a
demand by the Association against Declarant for indemnification pursuant to the Act, the
Association shall promptly tender the defense of the action to its insurance carrier, and give
Declarant written notice of such tender,the specific nature of the action and an opportunity to defend
against the action.
19.4 Notices. Unless specifically provided otherwise in the Governing Documents or the
Act,all notices requires to be given by or to the Association,the Board of Directors,the Association
officers or the Owners or Occupants shall be in writing and shall be effective upon hand delivery,
or mailing ifproperly addressed with postage prepaid and deposited in the United States mail;except
that registrations pursuant to Section 2.2 of the By-laws shall be effective upon receipt by the
Association. Notices to Owners or Occupants shall be delivered or mailed to the address of the Unit,
or if the Owner or Occupant has given written notice of another address to the Association or other
Owner, to that address.
19.5 Conflicts Among Documents. In the event of any conflict among the provisions of
the Act,the Declaration,the By-laws or any Rules or Regulations approved by the Association,the
Act shall control. As among the Declaration,By-laws and Rules and Regulations,the Declaration
30
shall control,and as between the By-laws and the Rules and Regulations,the By-laws shall control.
19.6 Duration of Covenants. The covenants,condition,restrictions,easements,liens and
charges contained in this Declaration shall be perpetual, subject only to termination a provided in
this Declaration and the Act.
IN WITNESS WHEREOF,the undersigned has executed this instrument the day and year
first set forth in accordance with the requirements of the Act.
Islands of Peace LLC
Grant Rudolph, Chief Manager
STATE OF CALIFORNIA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of ,
2006, by Grant Rudolph, Chief Manager of Islands of Peace LLC, a Minnesota limited liability
company.
Notary Public
This instrument was drafted by:
CATHERINE R. THATCHER PA
6201 Creek Valley Road
Edina, MN 55439
(952) 270-8801
31
EXHIBIT A
LEGAL DESCRIPTION
Lot 2, Block 1, East River Estates, subject to easements of record
Address: 151 Island Park Drive NE,Fridley, MN
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EXHIBIT C
ADDITIONAL REAL ESTATE
190 Island Park Drive, Lot 3, Block 2, East River Estates
191 Island Park Drive, Lot 3, Block 1, East River Estates
150 Island Park Drive, Lot 2, Block 2, East River Estates
5940 E. River Road, Lot 1, Block 2, East River Estates
5950 E. River Road, Lots I and 1B, Block 1, East River Estates
100 Charles St. NE, The East 100 feet, as measured along the north line, of Lot 1, Block 2,Hayes
River Lots
140 Charles St.NE,The West 100 feet of East 200 feet, as measured along the north line, of Lot 1,
Block 2,Hayes River Lots
180 Charles St. NE, Lot 1, Block 2, Robyns River Manor
101 Charles St.NE, Lot 1, Block 1, Robyns River Manor
179 Charles St.NE, Lot 2, Block 1,Robyns River Manor
5900 Anna Ave. NE, Lot 3, Block 1,Hayes River Lots
6000 E. River Rd , Lot 1, Block 1, Hayes River Lots
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COMMON INTEREST COMMUNITY NO. 245
ISLANDS OF PEACE INTENTIONAL COMMUNITY
A Common Interest Community
BY-LAWS of the
ISLANDS OF PEACE INTENTIONAL COMMUNITY ASSOCIATION,INC.
ARTICLE 1
GENERAL
The following are the By-laws of the Islands of Peace Intentional Community Association,
Inc.a Minnesota non-profit corporation(the"Association"). The Association is organized pursuant
to Section 51513.3-101 of the Minnesota Common Interest Ownership Act (the "Act") for the
purposes of operating and managing the Association as a condominium created pursuant to the Act.
The terms used in these By-laws shall have the same meanings as they have in the Declaration of
Islands of Peace Intentional Community(the"Declaration") and the Act.
ARTICLE 2
MEMBERSHIP
2.1 Owners Defined. All persons described as Owners of Dwelling Units in Section
1.15 of the Declaration shall be members of the Association. No person shall be a member solely
by virtue of holding a security interest in a Unit. A person shall cease to be a member at such time
as that person is no longer an Owner of a Dwelling Unit.
2.2 Registration of Owners and Occupants. Each Owner shall register with the
Secretary of the Association, in writing, within thirty (30) days after taking title to a Unit (i) the
name and address of the Owners and any Occupants of the Unit, (ii) the nature of such Owner's
interest in each Unit owned; (iii) the address at which the Owner desires to receive notice of any
meeting of the Owners, if other than the Unit address; (iv) the name and address of any Eligible
Mortgagee,as defined in Section 1.9 of the Declaration;and(v)if there are multiple Owners of the
Unit,the name of the Owner who shall be authorized to cast the vote with respect to the Unit. The
Owner shall have a continuing obligation to advise the Association in writing of any changes in the
foregoing information.
2.3 Transfers. The interests,rights and obligations of an Owner in the Association may
be assigned,pledged,encumbered or transferred,but only along with and as a part of the title to the
Owner's Unit or as otherwise specifically authorized by the Governing Documents or by law.
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ARTICLE 3
VOTING
3.1 Entitlement. Votes shall be allocated to each Unit as provided in the Declaration.
However,no vote shall be exercised as to a Unit while the Unit is owned by the Association.
3.2 Authority to Cast Vote. At any meeting of the Owners,an Owner included on the
voting register presented by the Secretary in accordance with Section 4.6, or the holder of such
Owner's proxy,shall be entitled to case the vote which is allocated to the Unit owned by the Owner.
If there is more than one Owner of a Unit,only one of the Owners may cast the vote. If the Owners
of a Unit fail to agree as to who shall cast the vote,or fail to register pursuant to Section 2.2,the vote
shall not be cast.
3.3 Voting by Proxy. An Owner may cast the vote which is allocated to the Owner's
Unit and be counted as present at any meeting of the Owners by executing a written proxy naming
another Owner entitled to act on that Owner's behalf,and delivering the same to the Secretary before
the commencement of any such meeting. All proxies granted by an Owner shall remain in effect
until the earliest of the following events: (i)revocation by the granting Owner by written notice or
by personally attending and voting at the meeting for which the proxy is effective, (ii)eleven(11)
months after the date of the proxy,unless otherwise provided in the proxy, (iii)the time at which
is granting Owner is no longer an Owner.
3.4 Voting by Mail Ballot. The entire vote on any issue,except the removal of directors,
may be determined by mailed ballots, subject to the following requirements:
a. The notice of the vote shall (i) clearly state the proposed action, (ii) indicate the
number of responses needed to meet the quorum requirements, (iii) state the
percentage of approvals necessary to approve each matter other than election of
directors, and (iv) specify the time by which a ballot must be received by the
Association in order to be counted.
b. The ballot shall (i) set forth each proposed action separately and (ii) provide an
opportunity to vote for or against each proposed action.
C. The Board of Directors shall set the time for the return of ballots,which shall not be
less than fifteen(15)days nor more than thirty(30)days after the date of mailing of
the ballots to the Owners. The Board of Directors shall provide notice of the results
of the vote to the Owners within ten (10) days after the expiration of the voting
period.
d. Approval by written ballot under this Section is valid only if the number of votes cast
by ballot equals or exceeds the quorum required to be present at a meeting
authorizing the action, and the number of approvals equals or exceeds the number
of votes that would be required to approve the matter at a meeting at which the total
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number of votes cast was the same as the number of votes cast by ballot.
3.5 Vote Required. A majority of the votes cast at any properly constituted meeting of
the Owners,or cast by mail in accordance with Section 3.4,shall decide all matters properly brought
before the Owners, except where a different vote is specifically required by the Governing
Documents or the Act. The term "majority" as used herein shall mean in excess of fifty percent
(50%) of the votes cast at a meeting, in person or by proxy, or voting by mail, in accordance with
the allocation of voting power set forth in the Declaration. Cumulative voting shall not be permitted.
ARTICLE 4
MEETINGS OF OWNERS
4.1 Place. All meetings of the Owners shall be held at the office of the Association or
at such other place in the State of Minnesota reasonably accessible to the Owners as may be
designated by the Board of Directors in any notice of a meeting of the Owners.
4.2 Annual Meetings. An annual meeting ofthe Owners shall be held in each fiscal year
on a date,and at a reasonable time and place,designated by the Board of Directors. At each annual
meeting of the Owners,(i)the Board of Directors shall be elected pursuant to Section 6,(ii)a report
shall be made to the Owners on the activities and financial condition of the Association,and(iii)any
other matter, which is included in the notice of the annual meeting, and is a proper subject for
discussion or decision by the Owners, shall be considered and acted upon at the meeting.
4.3 Special Meetings. Special meetings of the Owners may be called by the President
as a matter of discretion. Special meetings of the Owners shall be called by the President or
Secretary within thirty (30) days following receipt of the written request of a majority of the
members of the Board of Directors or of Owners entitled to cast at least twenty-five(25%)percent
of all the votes in the Association. The meeting shall be held within ninety (90) days following
receipt of the request. The request shall state the purpose of the meeting,and the business transacted
at the special meeting shall be confined to the purposes stated in the notice. The purpose for which
the meeting is requested and held must be lawful and consistent with the Association's purposes and
authority under the Governing Documents
4.4 Notice of Meetings. At least twenty-one (21) days, but no more than thirty (30)
days,in advance of any annual meeting of the Owners,and at least seven(7)days,but no more than
thirty (30) days, in advance of any special meeting of the Owners, the Secretary shall send, to all
persons who are Owners as of the date of sending the notice,notice of the time, place and agenda
of the meeting, by United States mail, or by had delivery, at the Owner's Unit address or to such
other address as the Owner may have designated in writing to the Secretary. Notice shall also be
sent to all Eligible Mortgagees if required by Section 17 of the Declaration. Notice of meetings to
vote upon amendments to the Articles of Incorporation shall also be given separately to each officer
and director of the Association.
4.5 Quorum/Adjournment. The presence of Owners in person or by proxy,who have
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the authority to cast in excess of forty (40%) percent of all the votes in the Association shall be
necessary to constitute a quorum at all meetings of the Owners for the transaction of any business,
except that of adjourning the meeting to reconvene at a subsequent time. Any meeting may be
adjourned from time to time, but until no longer than fifteen (15) days later, without notice other
than announcement at the meeting as initially called. If a quorum is present at the reconvened
meeting, any business may be transacted which might have been transacted at the meeting as
initially called had a quorum then been present. The quorum, having once been established at a
meeting or a reconvened meeting, shall continue to exist for that meeting notwithstanding the
departure of any Owner previously in attendance in person or by proxy. The Association may not
be counted in determining a quorum as to any Unit owned by the Association.
4.6 Voting Register. The Secretary shall have available at the meeting a list of the Unit
numbers,the names of the Owners,the vote attributable to each Unit and the name of the Person(in
the case of multiple Owners) authorized to cast the vote.
4.7 Agenda. The agenda for meetings of the Owners shall be established by the Board
of Directors, consistent with the Governing documents, and shall be sent to all Owners along with
the notice of the meeting.
ARTICLE 5
ANNUAL REPORT
The Board of Directors shall prepare an annual report on behalf of the Association to be
mailed or delivered to each Owner together with the notice of the annual meeting. The report shall
contain at a minimum:
a. A statement of any capital expenditures in excess of two(2%)percent of the current
budget or Five Thousand($5,000.00)Dollars,whichever is greater,approved by the
Association for the current year or succeeding two (2) fiscal years.
b. A statement of the balance in any reserve or replacement fund and any portion of the
fund designated for any specified project by the Board of Directors.
C. A copy of the statement of revenues and expenses for the Association's last fiscal
year, and a balance sheet as of the end of said fiscal year.
d. A statement of the status of any pending litigation or judgments to which the
Association is a party.
e. A statement of the insurance coverage provided by the Association.
f. A statement of the total past due assessments on all Units,current as of not more than
sixty(60) days prior to the date of the meeting.
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ARTICLE 6
BOARD OF DIRECTORS
6.1 Number and Qualification. The affairs of the Association shall be governed by a
Board of Directors,which shall be composed of five(5)directors. Directors shall be elected by the
Owners at the Annual Meeting and shall be either an Owner of a Dwelling Unit or the authorized
representative of an Owner that is a corporation,partnership,limited liability company,trust or other
entity which has the capacity to hold title to real estate.
6.2 Term of Office. The terms of office of the members of the Board of Directors shall
be three years,provided that a Director shall remain in office until a successor has been elected.To
provide staggered terms, the original Board of Directors shall be elected to one, two or three year
terms.
6.3 Nominations. Nominations for election to the Board of Director shall be made by
a nominating committee appointed by the Board of Directors,or from the floor at the annual meeting
or by"write-in" if authorized by the Board.
6.4 Powers. The Board of Directors shall have all powers necessary for the
administration of the affairs of the Association,and may exercise for the Association all powers and
authority vested in or delegated to the Association(and not expressly prohibited or reserved to the
Owners) by law or by the Governing Documents. The powers of the Board of Directors shall
include, without limitation, the power to:
a. adopt,amend and revoke Rules and Regulations not inconsistent with the Governing
Documents, as follows: (i) regulating the use of the Common Elements; (ii)
regulating the use of the Units, and the conduct of Owners and Occupants, which
may jeopardize the health, safety or welfare of other Owners and Occupants,which
involves noise or other disturbing activity, or which may damage the Common
Elements or other Units; (iii) regulating or prohibiting animals; (iv) regulating
changes in the appearance of the Common Elements; (v) regulating the exterior
appearance of the Property, including for example, balconies and patios, window
treatments, and signs and other displays, regardless of whether inside a Unit; (vi)
implementing the Governing Documents,and exercising the powers granted by this
Section; and(vii) otherwise facilitating the operation of the Property;
b. adopt and amend budgets for revenues, expenditures and reserves, and levy and
collect assessments for Common Expenses from Owners;
C. hire and discharge managing agents and other employees, agents, and independent
contractors;
d. institute,defend,or intervene in litigation or administrative proceedings(i)in its own
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name on behalf of itself or two(2)of more Owners on matters affecting the Common
Elements or other matters affecting the Property of the Association,or,(ii)with the
consent of the Owners of the affected Units on matters affecting only those Units;
e. make contracts and incur liabilities;
f. regulate the use,maintenance,repair,replacement and modification of the Common
Elements and the Units;
g. cause improvements to be made as a part of the Common Elements;
h. acquire, hold, encumber and convey in its own name any right, title, or interest to
real estate or personal property, subject to the requirements of the Act for the
conveyance or encumbrance of the Common Elements;
i. grant public utility easements through, over or under the Common Elements and,
subject to approval by resolution of the Owners other than a declarant or its affiliates
at a meeting duly called,grant other public or private easements,leases and licenses
through, over or under the Common Elements;
j. impose and receive any payment, fees or charges for the use, rental or operation of
the Common Elements and for services provided to Owners;
k. impose charges for late payment of assessments and,after notice and an opportunity
to be heard,levy reasonable fines for violations of the Governing Documents and the
Rules and Regulations;
1. impose reasonable charges for the review,preparation and recordation of amendment
to the Declaration or By-laws,resale certificates required by Section 515B.4-107 of
the Act, statements of unpaid assessments, or furnishing copies of Association
records;
in. provide for the indemnification of its officers and directors, and maintain directors'
and officers' liability insurance;
n. provide for reasonable procedures governing the conduct of meetings and the
election of directors, such as those contained in Robert's Rules of Order;
o. appoint, regulate and dissolve committees;
p. exercise any other powers conferred by law or the Governing Documents,or which
are necessary and proper for the governance of the Association.
6.5 Meetings and Notices. Ann annual meeting of the Board of Directors shall be held
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promptly following each annual meeting of the Owners. At each annual meeting the officers of the
Association shall be elected.
a. Regular meetings of the Board of Directors shall be held at least on a monthly basis,
at such times as may be fixed from time to time by a majority of the members of the
Board of Directors. A schedule, or any amended schedule, of the regular meetings
shall be provided to the directors.
b. Special meetings of the Board of Directors shall be held when called (i) by the
President of the Association, or(ii)by the Secretary within ten(10)days following
the written request of any two directors. Notice of any special meeting shall be given
to each director not less than three(3)days in advance thereof. Notice to a director
shall be deemed to be given when deposited in the United States mail, postage
prepaid to the Unit address of such director,or when personally delivered,orally or
in writing, by a representative of the Board of Directors.
C. Any director may at any time waive notice of any meeting of the Board of Directors
orally, in writing, or by attendance at the meeting. If all the directors are present at
a meeting of the Board of Directors, no notice shall be required, and any business
may be transacted at such meeting.
d. Meetings of the Board of Directors shall be open to the Owners. To the extent
practicable,the Board of Directors shall give reasonable notice to the Owners of the
date,time and place of Board meetings. If the date, time and place of meetings are
announced at a previous meeting of the Board,posted in a location accessible to the
Owners or designated by the Board from time to time, of if an emergency requires
immediate consideration of a matter by the Board, such notice is not required.
Meetings may be closed (and all non-Board member Owners excluded) to discuss
any of the following:
(i) personnel matters;
(ii) pending or potential litigation, arbitration or other potentially adversarial
proceedings, between owners, between the Board or Association and
Owners, or other matters in which any Owner may have an adversarial
interest, if the Board determines that closing the meeting is necessary to
discuss strategy or to otherwise protect the position of the Board or
Association or the privacy of an Owner or Occupant of a Unit; or
(iii) criminal activity arising within the common interest community if the Board
of Directors determines that closing the meeting is necessary to protect the
privacy of the victim or that opening the meeting would jeopardize
investigation of the activity.
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Nothing in this article shall be deemed to impose a duty of the Board of Directors or the Association
to provide special facilities for meetings. The failure to give notice as required y this article shall
not invalidate any Board meeting or any action taken at any such meeting.
6.6 Quorum and Voting. A majority of the members of the Board of Directors shall
constitute a quorum for the transaction of business at any meeting thereof. A quorum, once
established, shall continue to exist, regardless of the subsequent departure of any directors. Each
director shall have one (1) vote. The vote of a majority of the directors present at any meeting at
which a quorum is present shall be sufficient to adopt any action. Proxies shall not be permitted.
6.7 Action Taken Without a Meeting. The Board of Directors shall have the right to
take any action in the absence of a meeting which it could take at a meeting when authorized in a
writing signed by all the directors.
6.8 Vacancies. A vacancy in the Board of Directors shall be filled by a person elected
within thirty(3 0)days following the occurrence of the vacancy by a majority vote of the remaining
directors,regardless of their number;except for vacancies created pursuant to Paragraph 6.10 of this
Section. Each person so elected shall serve out the term vacated.
6.9 Removal. A director may be removed from the Board of Directors,with or without
cause,by a majority vote at any annual or special meeting of the Owners;provided(i)that the notice
of the meeting at which removal is to be considered states such purpose, (ii)that the director to be
removed has a right to be heard at the meeting and(iii)that a new director is elected at the meeting
by the owners to fill the vacant position caused by the removal. A director may also be removed by
the Board of Directors if such director (i) has more than two unexcused absences from Board
meetings and/or Owners meetings during any twelve month period or(ii) is more than sixty (60)
days past due with respect to assessments on the director's Unit. Such vacancies shall be filled by
the vote of the Owners as previously provided in this Section.
6.10 Compensation. Except as authorized by a vote of the Owners at a meeting thereof,
the directors of the Association shall receive no compensation for their services in such capacity.
A director or other Owner or Occupant may,upon approval by the Board of Directors,be retained
by the Association and reasonably compensated for goods and services furnished to the Association
in an individual capacity. Directors may be reimbursed for out-of-pocket expenses incurred in the
performance of their duties.
6.11 Fidelity Bond. Fidelity bonds or insurance coverage for unlawful taking of
Association funds may be obtained and maintained as provided in the Declaration on all directors
and officers authorized to handle the Association's funds and other monetary assets.
6.12 Indemnification of Directors and Officers. Each director and officer whether or
not they are then in office, shall be indemnified by the Association against all costs and expenses
reasonably incurred by or imposed upon him in connection with or arising out of any action,suit or
8
proceeding in which he may be involved by reason of his being or having been a director or officer
of the Association. Such expenses include the cost of reasonable settlement (other than amounts
paid to the Association itself) made with a view to curtailment of the costs of litigation. The
Association shall not,however,indemnify any director or officer with respect to matters as to which
he shall finally be adjudged in any such action, suit or proceeding, to have been derelict in the
performance of his duties as such director of officer not in respect to any matter in which any
settlement or compromise is affected, if the total expense, including the cost of settlement, shall
substantially exceed the expenses which might reasonable be incurred by such director or officer in
conducting such litigation to a final conclusion. The foregoing right of indemnification shall not
preclude any other rights to which any director of officer may be entitled as a matter of law.
6.13 Executive Committee and Special Committees. The Directors may,by resolution,
appoint members of the Board as an Executive Committee to manage the business of the Association
during the interim period between Board meetings. Further, the Directors may, by resolution,
appoint members of the Board to special committees,to manage the business of the Association and
to transact such business as may be required concerning any special area of responsibility.
ARTICLE 7
OFFICERS
7.1 Officers. The principal officers of the Association shall be President, Vice-President,
Secretary, and Treasurer, all of whom shall be elected by the Board of Directors. The Board of
Directors may from time to time elect such other officers and designate their duties as in their
judgment may be necessary to manage the affairs of the Association. A person may hold more than
one office simultaneously, except those of President and Vice President.
7.2 Election. The officers of the Association shall be elected annually by the Board of
Directors at its annual meeting for a one-year term. Any one person may not hold the same office
for more than three consecutive terms,unless unanimously agreed to by the Board.
7.3 Removal. Upon an affirmative vote of a majority of the members of the Board,any
officer may be removed,with or without cause, and a successor elected, at any regular meeting of
the Board of Directors,or at any special meeting of the Board of Directors called for that purpose.
7.4 President. The President shall be the chief executive officer of the Association,and
shall preside at all meetings of the Board f Directors and the Association. The President shall have
all of the powers and duties which are customarily vested in the office of the president of a
corporation, including without limitation the duty to supervise all other officers and to execute all
contracts and similar obligations on behalf of the Association.
7.5 Vice-President. The Vice-President shall take the place of the President and perform
the duties of the office whenever the President shall be absent or unable to act. The Vice President
shall also perform such other duties as shall from time to time be prescribed by the Board of
Directors.
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7.6 Secretary. The Secretary shall be responsible for recording the minutes of all
meetings of the Board of Directors and the Association, keeping the books and records of the
Association,and giving all notices required by the Governing Documents or the Act. The Board of
Directors may delegate the Secretary's administrative functions to a managing agent,provided that
such delegation shall not relieve the Secretary of the ultimate responsibility for the Secretary's
duties.
7.7 Treasurer. The Treasurer shall be responsible for all financial assets of the
Association,and shall be covered by a bond or insurance in such sum and with such companies as
the Board of Directors may require. The Treasurer shall be responsible for keeping the
Association's financial books, assessment rolls and accounts in accordance with customary and
accepted accounting practices and shall submit them to the Board of Directors for its examination
upon request. The Treasurer shall deposit all moneys and other monetary assets of the Association
in the name of the Association in depositories designated by the Board of Directors and shall
disburse funds of the Association as ordered by the Board of Directors. The Board of Directors may
delegate the Treasurer's administrative functions to a managing agent;provided that such delegation
shall not relieve the Treasurer of the ultimate responsibility for the Treasurer's duties.
7.8 Compensation. Except as authorized by a vote of the Owners at a meeting thereof,
officers of the Association shall receive no compensation for their services in such capacity. An
officer may, upon approval by the Board of Directors, be reasonably compensated for goods and
services furnished to the Association in an individual capacity. Officers may be reimbursed for out-
of-pocket expenses incurred in the performance of their duties.
7.9 Vacancies. If there is a vacancy among the officers of the corporation by reason of
death,resignation or otherwise,such vacancy shall be filled for the unexpired term by the Board of
Directors.
ARTICLE 8
ASSESSMENTS
8.1 Assessment Procedures. The Board of Directors shall annually prepare a budget
of Common Expenses for the Association and assess such Common Expenses against the Units
according to their respective Common Expense liability as set forth in the Declaration.
a. The Board of Directors shall fix the amount of the Annual Assessment against each
Unit, levy the Assessment and advise the Owners in writing of the Assessment at
least thirty(3 0)days prior to the beginning of the Association's fiscal year when the
first Assessment installment shall be due. The failure of the Board of Directors to
timely levy an Annual Assessment shall not relieve the Owners of their obligation
to continue paying Assessment installments in the amount currently levied, as well
as any increases subsequently levied.
b. If an Annual Assessment proves to be insufficient, the Board of Directors may
10
amend the budget and levy an additional Assessment, at any time. The levy shall
occur upon the date specified in the resolution which fixed the Assessment.
C. The annual budget shall include a general operating reserve,and an adequate reserve
fund for maintenance repair and replacement of those Common Elements and parts
of the Units that must be maintained or repaired replaced b the Association on a
p p Y
periodic basis.
d. The Association shall furnish copies of each budget on which the Assessment is
based to an Owner or to any Eligible Mortgagee, upon request of such persons.
8.2 Payment of Assessments. Annual Assessments shall be due and payable in
monthly installments in advance on the first day of each month of the year or other period for which
the Assessments are made, and Special Assessments shall be due when designated by the Board
of Directors. All Owners shall be absolutely and unconditionally obligated to pay the Assessments.
No Owner or Occupant shall have any right of withholding, offset or deduction against the
Association with respect to any Assessments, or related late charges or costs of collection,
regardless of any claims alleged against the Association or its officers or directors. Any rights or
claims alleged by an Owner may be pursued only by separate action.
8.3 Default in Payment of Assessments. If any Owner does not make payment on or
before the date when any Assessment or installment thereof is due, subject to such grace periods
as may be established, the Board of Directors may assess, and such Owner shall be obligated to
pay, a late charge as provided in the Declaration for each such unpaid Assessment or installment
thereof,together with all expenses,including reasonable attorneys fees,incurred by the Board in
collecting any such unpaid Assessment.
a. If there is a default of more than thirty(30)days in payment of any Assessment,the
Board of Directors may accelerate any remaining installments of the Assessment
upon prior written notice thereof to the Owner,and the entire unpaid balance of the
Assessment and late charges shall be come due and payable upon the date stated in
the notice unless all past due amounts, including late charges, costs of collection
and fines, are paid prior to said date.
b. The Board of Directors shall have the right and duty to attempt to recover all
Assessments for Common Expenses,together with any charges, attorneys' fees or
expenses relating to the collection thereof.
C. Upon written request of an Owner or an Eligible Mortgagee of such Unit,notice of
a default of more than sixty(60)days in payment of any Assessment or installment
of an Assessment for Common Expenses or any other default in the performance of
obligations by the Owner shall be given in writing to such Eligible Mortgagee.
d. The rights and remedies referred to herein shall in no way limit the remedies
11
I� -
available to the Association under the Declaration or by law.
8.4 Foreclosure of Liens for Unpaid Assessments. The Association has the right to
foreclose its assessment lien against a Unit for Assessments imposed by the Association, as more
fully described in the Declaration and the Act.
8.5 Records. The Board of Directors shall cause to be kept at the registered office of
the Association, and at such other place as the Board of Directors may determine, records of the
actions of the Board of Directors,minutes of the meetings of the Board of Directors,minutes of the
meetings of the Owners of the Association, names of the Owners and Eligible Mortgagees, and
detailed and accurate records of the receipts and expenditures of the Association. All Association
records, including receipts and expenditures and any vouchers authorizing payments, shall be
available for examination by the Owners and the Eligible Mortgagees upon reasonable notice and
during normal business ours. Separate accounts shall be maintained for each Unit setting forth the
amount of the Assessments against the Unit, the date when due, the amount paid thereon and the
balance remaining unpaid.
8.6 Enforcement of Obligations. All Owners and Occupants and their guests are
obligated and bound to observe the provisions of the Governing Documents, the Rules and
Regulations and the Act. The Association may impose any or all of the charges, sanctions and
remedies authorized by the Governing Documents,the Rules and Regulations or by law to enforce
and implement its rights and to otherwise enable it to manage and operate the Association.
ARTICLE 9
AMENDMENTS
These By-laws may be amended, and the amendment shall be effective, upon the
satisfaction of the following conditions:
9.1 Approval. The amendment must be approved by Owners who have authority to cast
in excess of sixty-seven percent(67%)of the total votes in the Association, in writing or at a duly
held meeting of the Owners; and
9.2 Notice. A copy of the proposed amendment and, if a meeting is to be held,notice
of such meeting,shall be mailed by United States Mail,or hand delivered,to all Owners authorized
to cast votes; and
9.3 Effective Date; Recording. The amendment shall be effective on the date of
approval by the required vote of the Owners and need not be recorded. If recorded,the amendment
shall be recorded in the office of the recording officer for the county in which the Property is
located.
ARTICLE 10
INDEMNIFICATION
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In addition to any other indemnification provisions,the Association shall,to the extent any
alleged liability is not covered by insurance, indemnify every individual acting in any official
capacity on behalf of the Association,pursuant to the provisions of Minnesota Statutes 317A.521.
ARTICLE 11
MISCELLANEOUS
11.1. Notices. Unless specifically provided otherwise in the Act,the Declaration or these
By-laws, all notices required to be given by or to the Association, the Board of Directors, the
Association officers or the Owners or Occupants shall be in writing and shall be effective upon
hand delivery, or mailing if properly addressed with postage prepaid and deposited in the United
States mail; except that registrations pursuant to Section 2.2 shall be effective upon receipt by the
Association.
11.2 Severability. The invalidity or unenforceability of any part of these By-laws shall
not impair or affect in any manner the validity,enforceability or effect of the balance of these By-
laws.
11.3 Captions. The Captions herein are inserted only as a matter of convenience and for
reference and in no way limit or proscribe the scope of these By-laws or the intent of any provision
hereof.
11.4 Conflicts in Documents. In the event of any conflict among the provisions of the
Act, the Declaration, the By-laws or the Rules and Regulations, the Act shall control unless it
permits the documents to control. As among the Declaration,By-laws and Rules and Regulations,
the Declaration shall control, and as between the By-laws and the Rules and Regulations,the By-
laws shall control.
11.5 Waiver. No restriction, condition, obligation or provision contained in these By-
laws shall be deemed to have been abrogated or waived by reason of any failure to enforce the
same, irrespective of the number of violations or breaches thereof which may occur.
11.6 No Corporate Seal. The Association shall have no corporate seal.
11.7 Fiscal Year. The fiscal year of the Association shall be determined by the Board
of Directors.
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a
The undersigned hereby executes these By-laws and certifies that they were adopted by
Islands of Peace Intentional Community Association, Inc., a non-profit corporation incorporated
under the laws of the State of Minnesota, effective as of the date hereof.
Dated: Islands of Peace LLC
Grant Rudolph, President
Declarant
STATE OF CALIFORNIA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of ,2006,
by Grant Rudolph,President of Islands of Peace LLC, a Minnesota limited liability company, on
behalf of the limited liability company.
Notary Public
This instrument was drafted by:
Catherine R. Thatcher PA
6201 Creek Valley Road
Edina, MN 55439
(952) 270-8801
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ISLANDS OF PEACE INTENTIONAL COMMUNITY
RULES AND REGULATIONS
Goals of the Rules and Regulations
The following Rules and Regulations have been established to provide reasonable
guidelines for the residents of Islands of Peace Intentional Community in order to provide
the highest possible quality of residential condominium living. These Rules ad
Regulations have been adopted with the residents' comfort and convenience as top
priority. Your cooperation is essential if this goal is to be attained. Each resident is
responsible for compliance by his or her family, guests,visitors and tenants.
Parkin
1. Parking lots are reserved for use by residents and their guests. Only the
Owner, or other person designated by the Owner, may use a Garage Unit. No
vehicle shall be parked in such a manner as to impede access to any Garage
Unit.
2. Vehicles may not be stored in the parking lot. Any vehicle that has not been
moved within any 96-hour period may be towed at the owners expense. If
you are unable to comply with this policy, due to vacation or other reason,
please make arrangements with someone to move your car for you, or contact
the management company regarding a waiver.
3. All vehicles are required to have current license tags and insurance.
Inoperable vehicles are not allowed to be parked or stored in the parking lots.
4. Trailers, boats, tents, moving vans, mobile homes, motor homes and utility
vehicles are not to be parked in the parking lot for more than 48 hours without
prior approval of the Association.
5. Repair or maintenance of vehicles is not permitted in the parking lot, but may
be undertaken in a Garage Unit if not dangerous or a disturbance to other
residents.
6. Motorized vehicles shall be allowed only on designated driveways, parking
spaces and Garage Units. Parking or driving on common areas, grass, patios,
etc. is prohibited. Snowmobiling on the property is prohibited.
7. Residents are required to keep doors to Garage Units closed and locked except
when entering or leaving garages, or when the resident is in the garage.
8. We will have the parking lot plowed following snowfalls of two inches or
more. Please move your vehicle(s) out of the parking lot prior to the plow's
arrival. We cannot plow any parking stall where a vehicle is parked. Vehicles
may be towed from the parking lot or the owner of such vehicle may be
charged for any plowing needed.
9. We will shovel sidewalks within 24 hours of each snowfall or two inches of
more. Ice on walkways can occur at any time, particularly after a melt and
refreeze. Residents need to walk with caution and, when necessary, clean and
salt their own walk and driveways.
10. Please observe the 10 mph speed limit in the parking lot, and refrain from
honking horns except as necessary for safety.
11. Vehicles in violation of any of the above parking policies may be towed at the
owner's expense.
Pets
12. The only pets allowed at Islands of Peace are dogs, cats, birds and fish. No
more than three pets are allowed per unit of which no more than two can be
dogs. Rottweilers, mastiffs, pitbulls, Doberman pinchers, and greyhounds,
and mixed breed dogs containing any of those breeds are prohibited.
13. Pets must be on a leash or in a cage and under control of their owners at all
times when outside the unit.
14. Pet waste must be immediately removed from the common areas and limited
common areas (patio)by the pet owner.
15. Pet owners shall be responsible for any damage done by their pet, including
the repair and/or replacement of grass, other vegetation or buildings.
16. Dog owners must control their dog's barking both in the units and while
outside.
17. All pet owners must see that their pets do not create a disturbance or threat to
other residents.
Patios
18. Charcoal or gas grills must be a minimum of 15 feet from all buildings for fire
safety.
19. Holiday decorations may be placed on units, including patios, but must be
removed within 15 days following the holiday.
20. Seasonal furniture, accessories and planters are permitted on patios. Wind
chimes, bells and other items that create a noise, and general storage of other
items are prohibited.
21. Clotheslines and clothes racks are not permitted on patios or common areas.
Noise and Disturbance
22. All residents shall refrain from disruptive behavior such as running,jumping,
slamming doors,pounding on walls or ceilings, shouting, etc.
23. All residents are requested to be considerate of their neighbors when
entertaining,using stereo equipment,playing musical instruments, etc.
Sale or Lease of Unit
24. The Association will provide a Resale Disclosure Certificate and copies of
Islands of Peace documents to a prospective buyer upon written request. A
reasonable charge will be made for issuance of such information.
25. Within thirty (30) days after the purchase of a unit, the new owner shall
register in writing with the Association and provide the following:
a. Name of new owner and address of unit.
b. Names of all occupants.
C. Business and home telephone numbers.
d. Name and address of mortgage holder, if any.
e. Copy of recorded deed for the unit.
f. Any other information deemed necessary by the Board that relates to
the Association.
26. Unit owners must inform the Association in writing of any lease of their units,
and must provide a copy of the lease, name or tenants and all occupants, and
term of the lease. The Association must be informed if any of this
information changes.
27. Unit owners are responsible for handling any maintenance and repair of the
units, and must inform all tenants to contact the owner and not the Association
or management company regarding maintenance of units.
28. Unit owners shall supply all tenants with a copy of the Rules and Regulations,
and ensure that the tenants comply with them.
29. Unit owners shall be responsible for the actions of their tenants and for any
fines levied against such tenants.
R .
General Rules
30. Residents may hold a garage sale no more often than once a year, and any
garage sale may not last longer than 2 days. Residents must register all garage
sales with the Association or management company 14 days prior to the sale.
All signs must be approved by the Association.
31. All signs, including "for Sale" or "for Rent" must be approved by the
Association. No "For Sale" signs will be allowed until the Declarant, Islands
of Peace LLC, has sold at least 90% of the units or until June 30, 2007,
whichever comes first.
32. Only normal household trash and garbage shall be put out for trash service.
Residents shall arrange for a special pickup of items such as furniture, tires,
mattresses and appliances. Residents shall follow City of Fridley rules for
recycling pickup. All garbage cans and recycling containers shall be stored
behind screens so that they are not visible from the street.
33. No satellite dishes, antennas or other devises which require exterior mounting
are allowed.
34. Parents are totally responsible for their children's behavior, welfare and safety
while in or on the Property. The Association, its members and the
management company shall not be liable for any action occurring on the
condominium property.
35. Bicycles shall be ridden on paved areas only.
36. Payments of Association fees are due on the 0 day of each month. A late
payment penalty of$15.00 will be assessed for any payment received after the
15th day of the month. All payment received will be applied first towards late
fees and then to Association fees.
37. Unit owners are responsible for maintenance of all Limited Common
Elements that affect their own unit, such as patios, windows and garage doors.
See Section 3 of the Declaration for the definition of Limited Common
Elements.
Violations
38. Complaints regarding violations of these Rules and Regulations must be
submitted in writing to the Association. Anonymous complaints will not be
accepted. The complainant should have already discussed the complaint with
the offending party and indicate what response was received.
39. The Board of Directors of the Association shall review the complaint and
recommend action at its next regularly scheduled meeting.
40. The penalties for violation of the Rules and Regulations which will be
assessed to the unit owner and enforced by the Board, are as follows:
a. First offense: Warning
b. Second offense: $25.00 fine
C. Third offense: $50.00 fine
d. Fourth and subsequent offenses: $100.00 fine
41. A unit owner will have 10 days from the date of notification of a fine to either
pay the fine or submit a written request for a hearing before the Grievance
Committee of the Board of Directors. The Grievance Committee will hold a
hearing within 7 days after the request to review the circumstances, and will
allow the unit owner to present any mitigating circumstances that could
reduce or eliminate the fine. The Committee will make a recommendation at
the next Board meeting. If the Board decides not to withdraw the fine, the
owner must pay the fine within 10 days of the Board decision.
42. If a unit owner does not pay a fine within the required 10-day period, the fine
will be assessed against the unit.
Amendments to Rules and Regulations
43. The Board of Directors of the Association may amend these Rules and
Regulations at any Board meeting; provided that written notice of any
proposed amendments has been given to all owners at least 14 days prior to
the meeting.
44. Written notice of all amendment s approved by the Board shall be given to all
owners promptly after such approval, and the effective date of such
amendments shall be no sooner than 30 days after the date of such approval.
45. If unit owners object to an amendment approved by the Board, a Petition to
Appeal signed by at least 3 owners may be presented to the Board. The Board
shall then conduct a vote of Members of the Association on the amendment
according to the Procedures set forth in the Association By-laws.
46. If any changes are made to the rules regarding pets, owners may keep any
existing pets for the life of that pet.
06/21/2006 15:36 9528290626 CATHERINE R THATCHER PAGE 02102
Attachment to City of Fridley, Condominium Conversion Registration Form
Islands of Peace Intentional Communily
List of Existing Rents
Unit 1 $850
Unit 2 $850
Unit 3 $750
Unit 4 $575
Unit 5 $700
Unit 6 $850
Unit 7 $850
Unit 8 $575
Unit 9 $700
Unit 10 $850
Unit 11. $600
Unit 1.2 $600
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