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4.7 SR 01-02-2018 EGty1� ,.,�� Request for Action River To Item Number Mayor and City Council 4.7 Agenda Section Meeting Date Prepared by ConsentJanuary 2, 2018 Amanda Othoudt,EDD Item Description Reviewed by Resolution for Acquisition and Conveyance of Cal Portner, City Administrator Certain Property Between City of Elk River and Reviewed by New Resources,LLC Action Requested Adopt,by motion, a resolution for the acquisition and conveyance of certain property between the City of Elk River and New Resources,LLC. Background/Discussion Staff has been working with Beaudry Oil Company in the development of a new truck shop facility along Proctor Avenue. On July 3, 2017, the city established Tax Increment Financing (Redevelopment) District No. 24 which includes the development property. As part of this project, the city purchased three properties to the north of the proposed project with the intention to convey a portion of this property at no cost to the developer in exchange for property owned by the developer to the south of the proposed project at no cost to the city. The exchange of property will be in the form of quit claim deeds. The properties are being exchanged for fair market value. As such, the transaction described in this agreement does not constitute a business subsidy within the meaning of Minnesota Statutes, Sections 116J.993 through 116J.995. The purchase and development agreement outlines the obligations of both the city and the developer through the duration of the TIF District. Financial Impact Both the developer and the city will each pay half of the closing fees charged by the title company to close the transaction contemplated by the purchase and development agreement. Attachments ■ Resolution ■ Purchase and Development Agreement ■ Exhibit G The Elk River Vision A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By service, and community engagement that encourages and inspires prosperity INAWRE1 City of Elk City of Elk River Wver City Council Resolution 17- A Resolution of the City Council of the City of Elk River Approving the Acquisition and Conveyance of Certain Property and the Execution of Documents in Connection Therewith BE IT RESOLVED by the City Council (the "Council") of the City of Elk River, Minnesota(the "City"), as follows: Section 1. Recitals. 1.01. The City has acquired certain property in the City (the "City's Property") and intends to convey the City's Property to New Resources, LLC, a Minnesota limited liability company ("Developer"), in connection with the construction by the Developer of a new light maintenance facility with related office and storage space, parking, and street access (the "Project"). 1.02. The City proposes to acquire from the Developer certain real property in the City (the "New Resources Property"), in connection with the construction of certain public improvements (the "Public Improvements"). 1.03. The City has caused to be prepared a Real Estate Exchange and Development Agreement between the City and the Developer (the "Development Agreement") setting forth the terms and conditions under which the parties will exchange the City's Property and the New Resources Property and undertake the Project and the Public Improvements. Section 2. Approval of Documents. 2.01. The City hereby approves the Development Agreement substantially in accordance with the terms set forth in the form presented to the City Council, together with any related documents necessary in connection therewith, including without limitation all deeds, documents, exhibits, certifications or consents referenced in or attached to the Development Agreement (collectively, the "Development Documents") and hereby authorizes the Mayor and City Clerk to negotiate the final terms thereof and, in their discretion and at such time as they may deem appropriate, to execute the Development Documents on behalf of the City, and to carry out, on behalf of the City, the City's obligations thereunder. 2.02. The approval hereby given to the Development Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary NATUREJ appropriate and approved by legal counsel to the City and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the City. The execution of any instrument by the appropriate officers of the City herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. In the event of absence or disability of the officers, any of the Development Documents authorized by this Resolution to be executed may be executed without further act or authorization of the City Council by any duly designated acting official, or by such other officer or officers of the City Council as, in the opinion of the City Attorney, may act in their behalf. Passed and adopted this 2nd day of January 2018. John J. Dietz,Mayor ATTEST: Tina Allard, City NATUREJ AGREEMENT 2018-01 REAL ESTATE EXCHANGE AND DEVELOPMENT AGREEMENT By and Between CITY OF ELK RIVER, MINNESOTA and NEW RESOURCES, LLC Dated as of: , 2018 This document was drafted by: KENNEDY& GRAVEN, Chartered 470 US Bank Plaza Minneapolis, Minnesota 55402 Telephone: 337-9300 512017v5 JSB EL185-52 TABLE OF CONTENTS Page ARTICLE I DEFINITIONS..................................................................................................................3 SectionI.I. Definitions........................................................................................................3 ARTICLE II REPRESENTATIONS AND WARRANTIES..............................................................6 Section 2.1. Representations by the City.............................................................................6 Section 2.2. Representations and Warranties by Developer................................................6 ARTICLE III EXCHANGE OF PROPERTY......................................................................................8 Section 3.1. Status of the Properties to be Exchanged.........................................................8 Section3.2. Purchase Price..................................................................................................8 Section3.3. Closing .............................................................................................................8 Section 3.4. Conditions of Conveyance of City's Property.................................................8 Section 3.5. Conditions of Conveyance of New Resources Property.................................9 Section 3.6. Place of Document Execution, Delivery and Recording.................................9 Section 3.7. Title to City's Property...................................................................................l l Section 3.8. Title to New Resources Property...................................................................11 Section 3.9. "As Is" Conveyance of New Resources Property. ........................................12 Section 3.10. As Is Conveyance of City's Property. ...........................................................13 Section 3.11. Representations and Warranties Regarding New Resources Property. ........14 Section 3.12. Representations and Warranties Regarding City's Property.........................15 Section 3.13. No Business Subsidy......................................................................................15 Section 3.14. Tax Increment Financing. ..............................................................................15 Section 3.15. Relocation Benefits;Indemnification. ...........................................................16 ARTICLE IV CONSTRUCTION OF MINIMUM IMPROVEMENTS AND PUBLIC IMPROVEMENTS.................................................................................................................17 Section 4.1. Construction of Minimum Improvements.....................................................17 Section 4.2. Construction Plans. ........................................................................................17 Section 4.3. Commencement and Completion of Construction. .......................................18 Section 4.4. Certificate of Completion...............................................................................18 Section 4.5. Construction of Public Improvements...........................................................19 ARTICLEV INSURANCE................................................................................................................21 Section5.1. Insurance........................................................................................................21 ARTICLE VI DELINQUENT TAXES AND REVIEW OF TAXES...............................................22 Section 6.1. Review of Taxes.............................................................................................22 ARTICLE VII FINANCING..............................................................................................................23 Section7.1. Financing........................................................................................................23 Section7.2. HRA Loan......................................................................................................23 ARTICLE VIII PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER; INDEMNIFICATION............................................................................................................24 Section 8.1. Representation as to Development. ...............................................................24 Section 8.2. Prohibition Against Transfer of Property and Assignment of Agreement......................................................................................................24 Section 8.3. Release and Indemnification Covenants........................................................25 ARTICLE IX EVENTS OF DEFAULT.............................................................................................27 512017v5 JSB BL185-52 i Section 9.1. Events of Default Defined .............................................................................27 Section 9.2. Remedies on Default......................................................................................27 Section 9.3. No Remedy Exclusive....................................................................................27 Section 9.4. No Additional Waiver Implied by One Waiver. ...........................................27 ARTICLE X ADDITIONAL PROVISIONS.....................................................................................28 Section 10.1. Conflict of Interests; City Representatives Not Individually Liable.............28 Section 10.2. Equal Employment Opportunity....................................................................28 Section 10.3. Restrictions on Use ........................................................................................28 Section 10.4. Provisions Not Merged With Deed................................................................28 Section 10.5. Titles of Articles and Sections.......................................................................28 Section 10.6. Notices and Demands ....................................................................................28 Section10.7. Counterparts...................................................................................................29 Section10.8. Recording. ......................................................................................................29 Section10.9. Amendment....................................................................................................29 Section10.10.City Approvals.................................................................................................29 Section 10.11.Termination......................................................................................................29 Section 10.12.Choice of Law and Venue...............................................................................29 Section10.13.Good Faith .......................................................................................................29 Section10.14.Fee Schedule. ...................................................................................................29 SIGNATURES ..............................................................................................................S-1, S-2 EXHIBIT A Description of City's Property.......................................................................A-1 EXHIBIT B Description of New Resources Property........................................................B-1 EXHIBIT C Description of Public Improvement Property.................................................C-1 EXHIBIT D Description of Developer's Minimum Improvements Property......................D-1 EXHIBIT E Revised Drawings for the Project..................................................................E-1 EXHIBIT F Form of Quit Claim Deed.............................................................................. F-1 EXHIBIT G Plat of New Resources Addition.................................................................... F-1 512017v5 JSB BL185-52 11 REAL ESTATE EXCHANGE AND DEVELOPMENT AGREEMENT THIS REAL ESTATE EXCHANGE AND DEVELOPMENT AGREEMENT, made on or as of the day of , 2018, by and between CITY OF ELK RIVER, MINNESOTA, a municipal corporation under the Constitution and laws of the State of Minnesota (the "City"), and NEW RESOURCES, LLC, a Minnesota limited liability company ("Developer"). The City and the Developer are sometimes jointly referred to as the "Parties" or each individually as a"Party". WITNESSETH: WHEREAS, the City has undertaken a program to promote economic development and job opportunities and to promote the development of land which is underutilized within the City, and in this connection created a development project known as Development District No. 1 ("Development District") pursuant to Minnesota Statutes, Sections 469.124 to 469.134, as amended (the "Development District Act"); and WHEREAS, pursuant to the Development District Act, the City is authorized to acquire real property, or interests therein, and to undertake certain activities to facilitate the development of real property by private enterprise; and WHEREAS, the City has acquired certain property described in Exhibit A (collectively referred to as the "City's Property") within the Development District, and intends to convey the City's Property to Developer, which together with lots already owned by Developer (collectively, with the City's Property, the "Developer's Minimum Improvements Property" and legally described in Exhibit D attached hereto), will be developed by Developer as a new light maintenance facility with related office and storage space, parking, and street access (the "Project") as generally depicted on Sheets 2 through 6 from the Revised Layout Drawings dated November 16, 2017 By Oliver Survey and Engineering, Inc., consisting of 5 pages (collectively, the "Revised Drawings"). The Revised Drawings are attached to this Agreement as Exhibit E and incorporated in this Agreement by this reference; and WHEREAS, the City proposes to acquire, for redevelopment purposes, the real property in the City and legally described in Exhibit B hereto (the "New Resources Property") from the Developer for the construction of certain public improvements in accordance with the terms hereof, WHEREAS, the City proposes to construct certain public improvements as provided herein on certain property owned by the City and the New Resources Property legally described in Exhibit C hereto (collectively, the "Public Improvement Property"); and WHEREAS, the City believes that the development of the Project, the sale of the City Property to the Developer, and the purchase of the New Resources Property from the Developer, and fulfillment generally of this Agreement, are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and 1 512017v5 JSB BL185-52 provisions of the applicable State and local laws and requirements under which the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the Parties hereto, each of them does hereby covenant and agree with the other as follows: 2 512017v5 JSB BL185-52 ARTICLE I DEFINITIONS Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Act" means the Development District Act, Minnesota Statutes, Sections 469.124 to 469.134, as amended. "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented in writing, signed by the Parties. "Certificate of Completion" means the certification provided to Developer with respect to the Developer's Minimum Improvements Property, pursuant to Section 4.4 of this Agreement. "City" means the City of Elk River, Minnesota. "City Site Work" means demolition and removal of all buildings and all tree removal by the City on the City's Property; "City's Property" means the real property so described in Exhibit A attached hereto. "City Representative" means the City Administrator of the City, or any person designated by the City Administrator to act as the City Representative for the purposes of this Agreement. "Closing"has the meaning provided in Section 3.3. "Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed by Developer on the Developer's Minimum Improvements Property which (a) shall be as detailed as the plans, specifications, drawings and related documents which are submitted to the appropriate building officials of the City, and (b) shall include at least the following for each building: (1) site plan; (2) foundation plan; (3) basement plans; (4) floor plan for each floor; (5) cross sections of each (length and width); (6) elevations (all sides); (7) landscape plan; and (8) such other plans or supplements to the foregoing plans as the City may reasonably request . "County" means the County of Sherburne, Minnesota. "Developer" means New Resources, LLC, a Minnesota limited liability company, or its permitted successors and assigns. "Development District" means the City's Development District No. 1. "Developer's Minimum Improvements" means the demolition of all buildings on the New Resources Property, and the development and construction of the Project, but excluding the Public Improvements. 3 512017v5 JSB BL185-52 "Developer's Minimum Improvements Property" means the real property so described in Exhibit D attached hereto. "Development Program" means the Development Program for Development District No. 1, and as it may be amended. "Event of Default" means an action by Developer, or the City, as applicable, as set forth in Article IX of this Agreement. "Hazardous Materials" includes, without limitation, gasoline, petroleum products, explosives, radioactive materials, hazardous materials, hazardous wastes, hazardous or toxic substances, polychlorinated biphenyls or related or similar materials, asbestos or any material containing asbestos, or any other substance or material as may be defined as a hazardous or toxic substance by any federal, state or local environmental law, ordinance, rule, or regulation including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Section 9601, et seq.), the Hazardous Materials Transportation Act, as amended (42 U.S.C. Section 1801, et seq.), the Resource Conservation and Recovery Act, as amended (42 U.S. C. Section 1251, et seq.), the Clean Air Act, as amended (42 U.S.C. Section 7401, et seq.) and in the regulations adopted and publications promulgated pursuant thereto. "Holder" means the owner of a Mortgage. "Mortgage" means any mortgage made by Developer which is secured, in whole or in part, with the Developer's Minimum Improvements Property, and any modification, supplement, extension, renewal or amendment thereof. "New Resources Property" means the real property so described in Exhibit B attached hereto. ,,Project" means the construction by the Developer of a new light maintenance facility with related office and storage space, parking, and street access on the Developer's Minimum Improvements Property. "Public Improvements" means the construction by the City, as further provided herein, of the Retention Pond, as defined in Section 4.5(b), and of the New 61/2 Street, as defined in Section 4.5(c). "Public Improvement Property" means the real property so described in Exhibit C attached hereto. "Revised Drawings" means the Revised Layout Drawing dated November 16, 2017 by Oliver Survey and Engineering, Inc., consisting of 5 pages and attached hereto as Exhibit E. "State" means the State of Minnesota. 4 512017v5 JSB BL185-52 "Tax Official" means any County assessor; County auditor; County or State board of equalization, the commissioner of revenue of the State, or any State or federal district court, the tax court of the State, or the State Supreme Court. "Termination Date" means the earliest of(i) the date the City terminates this Agreement due to an Event of Default by the Developer under Article IX hereof, (ii) the date the City has repaid the Interfund Loan (as defined in Section 3.15), (iii) the date the TIF District (as defined in Section 3.15) is terminated or expires, or(iv) December 31, 2045. "Unavoidable Delays" means unexpected delays which are the direct result o£ (i) adverse weather conditions, (ii) shortages of materials, (iii) strikes, other labor troubles, (iv) fire or other casualty to the Minimum Improvements, (v) litigation commenced by third parties which, by injunction or other judicial action, directly results in delays, (vi) acts of any federal or state governmental unit, including legislative and administrative acts, (vii) approved changes to the Construction Plans that result in delays (viii) delays caused by the discovery of any adverse environmental condition on or within the Developer's Minimum Improvements Property or the Public Improvement Property to the extent reasonably necessary to comply with federal and state environmental laws, regulations, orders or agreements, (ix) delay in the issuance of any certificate, license, permit, or any other approval by the City or any other governmental entity, provided application therefor is timely made and diligently pursued by Developer and (x) any other cause or force majeure beyond the control of the affected Party which directly results in delays. 5 512017v5 JSB BL185-52 ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2.1. Representations by the City. The City makes the following representations as the basis for the undertaking on its part herein contained: (a) The City is a municipal corporation and political subdivision duly organized and existing under the laws of the State. Under the provisions of the Act, the City has the power to enter into this Agreement and carry out its obligations hereunder. (b) The activities of the City are undertaken to foster the development of certain real property which for a variety of reasons is presently underutilized, to create increased tax base in the City, and to stimulate further development of the City as a whole. (c) The City will use its best efforts to facilitate development of the Developer's Minimum Improvements, including but not limited to cooperating with the Developer in obtaining necessary administrative and land use approvals and construction financing pursuant to Section 7.1 hereof. (d) No Councilmember of the City, or officer of the City, benefits financially from this Agreement within the meaning of Minnesota Statutes, Sections 412.311 and 471.87. Section 2.2. Representations and Warranties by Developer. Developer represents and warrants that: (a) The Developer is a Minnesota limited liability company duly organized and in good standing under the laws of the State of Minnesota, is not in violation of any provisions of its articles of organization, operating agreement or bylaws or, to the best of its knowledge, the laws of the State, is duly authorized to transact business within the State, has power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement by proper action of its members. (b) If Developer acquires the City's Property in accordance with this Agreement after the satisfaction of the conditions set forth in Section 3.4 hereof, Developer will construct, operate and maintain the Developer's Minimum Improvements, or cause the same to be constructed, operated and maintained, in accordance with the terms of this Agreement, and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). (c) The Developer has received no written notice or communication from any local, state or federal official that the activities of Developer or the City in the Project Area would be in violation of any environmental law or regulation. Developer is aware of no facts the existence of which would cause the Developer's Minimum Improvements Property to be in violation of or give any person a valid claim under any local, state or federal environmental law, regulation or review procedure. 6 512017v5 JSB BL185-52 (d) Developer will construct, or cause to be constructed, the Developer's Minimum Improvements in accordance with all local, county, state or federal energy-conservation laws or regulations. (e) For the Developer's Minimum Improvements, Developer will timely apply for and diligently pursue all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all applicable local, county, state and federal laws and regulations which must be obtained or met before the Developer's Minimum Improvements may be lawfully constructed. (f) To the best of Developer's knowledge and belief, neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any partnership or company restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. 7 512017v5 JSB BL185-52 ARTICLE III EXCHANGE OF PROPERTY Section 3.1. Status of the Properties to be Exchanged. As of the date of this Agreement, the City owns the City's Property and will convey title to and possession of the City's Property to the Developer, subject to all the terms and conditions of this Agreement. The Developer owns the New Resources Property and will convey title to and possession of the New Resources Property to the City, subject to the terms and conditions of this Agreement. Section 3.2. Purchase Price. In consideration of the agreements herein, the Developer agrees to sell and convey the New Resources Property to the City and the City agrees to purchase the same, and the City agrees to sell and convey the City's Property to the Developer and the Developer agrees to purchase the same, according to the terms of this Agreement. Consideration for purchase of the New Resources Property will be the conveyance of the City's Property. Consideration for the purchase of the City's Property will be the conveyance of the New Resources Property. Section 3.3. Closing. The closing on conveyance of the New Resources Property from the Developer to the City and the closing on the conveyance of the City's Property from the City to the Developer shall occur simultaneously upon satisfaction of the conditions specified in Sections 3.4 and 3.5 on a date mutually agreed to by the Parties, but no later than April 1, 2018 or at such other date as the Parties hereto agree in writing ("Closing"). If the Closing does not take place by April 1, 2018, and the closing date has not been extended by mutual agreement of the Parties, this Agreement shall terminate and neither Party shall have any further obligations hereunder. Section 3.4. Conditions of Conveyance of City's Property. The City shall convey title to and possession of the City's Property to the Developer at Closing by quit claim deed substantially in the form set forth on Exhibit F to this Agreement (the "Deed"). The City's obligation to convey the City's Property to the Developer, and Developer's obligation to purchase the City's Property, is subject to satisfaction of the following terms and conditions: (a) The Developer having secured financing for the construction of the Developer's Minimum Improvements, if applicable, and City having approved such financing in accordance with Article VII hereof, and the Developer having closed on such financing at or before Closing. (b) The City shall have approved a site plan for the Developer's Minimum Improvements and the Developer shall have obtained a building permit for construction of the Developer's Minimum Improvements. (c) There is no uncured Event of Default under this Agreement. (d) The Developer having reviewed and approved title to the City's Property as set forth in Section 3.7 hereof. 8 512017v5 JSB BL185-52 (e) The Developer having reviewed and approved soil and environmental conditions as set forth in Section 3.1O(d). (f) The City having obtained good and marketable title to the City's Property. (g) The City having completed the City Site Work to the reasonable satisfaction of the Developer's general contractor. Condition (c) is solely for the benefit of the City, and may be waived by the City. Conditions (d), (e), (f) and (g) are solely for the benefit of the Developer, and may be waived by the Developer. Conditions (a) and (b) are for the benefit of both the City and the Developer and may only be waived by both Parties. Section 3.5. Conditions of Conveyance of New Resources Property. The Developer shall convey title to and possession of the New Resources Property to the City at Closing by quit claim deed. The Developer's obligation to convey the New Resources Property to the City, and City's obligation to purchase the New Resources Property, is subject to satisfaction of the following terms and conditions: (a) There is no uncured Event of Default under this Agreement. (b) The City having reviewed and approved (or waived objections to) title to the New Resources Property as set forth in Section 3.8 hereof. (c) The Developer having completed the removal of all trees and the demolition and removal of all buildings on the New Resources Property to the reasonable satisfaction of the City engineer. (d) The City having reviewed and approved (or waived objections to) soil and environmental conditions as set forth in Section 3.9 hereof. Condition (a) is solely for the benefit of the Developer, and may be waived by the Developer. Conditions (b), (c), and(d) are solely for the benefit of the City, and may be waived by the City. Section 3.6. Place of Document Execution, Delivery and Recording. (a) Location. Unless otherwise mutually agreed by the City and Developer, the execution and delivery of all deeds and documents shall be made at the offices of the City. (b) Documents. The following documents shall be delivered in connection with the Closing: (1) A quit claim deed for the New Resources Property and a quit claim deed for the City's Property. Both deeds shall be in recordable form and shall be promptly recorded in the proper office for the recordation of deeds. (2) An affidavit of the Developer regarding liens, judgments, tax liens, bankruptcies, parties in possession, survey and mechanics' or materialmen's liens and 9 512017v5 JSB BL185-52 other matters affecting title to the New Resources Property and/or as may be reasonably required by the title company to delete the so-called "standard exceptions" from the title insurance policy. (3) An affidavit of the City regarding liens,judgments, tax liens, bankruptcies, parties in possession, survey and mechanics' or materialmen's liens and other matters affecting title to the City's Property and/or as may be reasonably required by the title company to delete the so-called "standard exceptions" from the title insurance policy. (4) Transferor's certifications from the City and the Developer stating that neither Developer nor the City, respectively, is a "foreign person", "foreign partnership", "foreign trust" or "foreign estate" as those terms are defined in Section 1445 of the Internal Revenue Code, and containing such additional information as may be required thereunder. (5) A settlement statement consistent with this Agreement. (6) Well disclosure certification, if required, or, if there is no well on the City's Property or the New Resources Property, the applicable deed given pursuant to paragraph 3.6(b)(1) above must include the following statement: "The Seller certifies that the Seller does not know of any wells on the described real property." (7) A "bring-down" certificate of the Developer, certifying that all of the warranties made by Developer in this Agreement remain true as of Closing. A "bring- down" certificate of the City, certifying that all of the warranties made by City in this Agreement remain true as of Closing. (8) Any other documents reasonably required by the title company to evidence that title to the New Resources Property and the City's Property is marketable and that the Developer and the City have complied with the terms of this Agreement. (9) Such other documents as shall be required to carry out the intent of this Agreement. (c) Closing Costs. In addition to any amounts payable pursuant to Section 3.13, at Closing, the Developer shall pay: all recording costs, including state deed tax, in connection with the conveyance of the New Resources Property and costs of recording any instruments used to clear title encumbrances and outstanding special assessments, if any, with respect to the New Resources Property; and title insurance commitment fees and premiums, if any, with respect to its title insurance policy on the City's Property. At Closing, the City shall pay: all recording costs, including state deed tax, in connection with the conveyance of the City's Property and costs of recording any instruments used to clear title encumbrances and outstanding special assessments, if any, with respect to the City's Property; and title insurance commitment fees and premiums, if any, with respect to its title insurance policy on the New Resources Property. The City and the Developer will each pay 1/2 of the closing fees charged by the title company to close the transaction contemplated by this Agreement. 10 512017v5 JSB BL185-52 Section 3.7. Title to City's Property. (a) As soon as reasonably practical after the date of this Agreement, the Developer shall obtain a commitment for the issuance of a policy of title insurance for the City's Property. The Developer shall have 20 days from the date of its receipt of such commitment and a current survey of the City's Property to review the state of title (including survey matters) to the City's Property and to provide the City with a list of written objections to such title (including survey matters). Upon receipt of the Developer's list of written objections, the City shall proceed in good faith and with all due diligence to attempt to cure the objections made by the Developer. Promptly after expiration of the Developer's 20-day review period, or after the date that any title or survey objections have been cured to the reasonable satisfaction of the Developer, the City and Developer shall proceed with the conveyance of the City's Property pursuant to Section 3.6 of this Agreement. In the event that the City has failed to cure objections within 60 days after its receipt of the Developer's list of such objections, the Developer may (i) by the giving of written notice to the City terminate this Agreement, upon the receipt of which this Agreement shall be null and void and neither Party shall have any liability hereunder, except for any obligations under Section 3.13, or (ii) waive any title objections and proceed to closing. The City shall have no obligation to take any action to clear defects in the title to the City's Property, other than the good faith efforts described above. (b) The City shall take no actions to encumber title to the City's Property between the date of this Agreement and the time the deed is delivered to the Developer. The City expressly agrees that it will not cause or permit the attachment of any mechanics, attorneys, or other liens to the City's Property prior to Closing. Upon Closing, the City is obligated to pay all costs to discharge any encumbrances to the City's Property attributable to actions of the City, its employees, officers, agents or consultants, including without limitation any architect, contractor and or engineer. (c) The Developer shall take no actions to encumber title to the City's Property between the date of this Agreement and the time the deed is delivered to the Developer. The Developer expressly agrees that it will not cause or permit the attachment of any mechanics, attorneys, or other liens to the City's Property prior to Closing. Notwithstanding termination of this Agreement prior to Closing, Developer is obligated to pay all costs to discharge any encumbrances to the City's Property attributable to actions of Developer, its employees, officers, agents or consultants, including without limitation any architect, contractor and or engineer. Section 3.8. Title to New Resources Property. (a) As soon as reasonably practical after the date of this Agreement, the City will obtain a commitment for the issuance of a policy of title insurance for the New Resources Property. The City shall have 20 days from the date of its receipt of such commitment and a current survey of the New Resources Property to review the state of title (including survey matters) to the New Resources Property and to provide the Developer with a list of written objections to such title (including survey matters). Upon receipt of the City's list of written objections, the Developer shall proceed in good faith and with all due diligence to attempt to cure the objections made by the City. Promptly after expiration of the City's 20-day review period, or after the date that any title or survey objections have been cured to the reasonable 11 512017v5 JSB BL185-52 satisfaction of the City, the City and Developer shall proceed with the conveyance of the New Resources Property pursuant to Section 3.6 of this Agreement. In the event that the Developer has failed to cure objections within 60 days after its receipt of the City's list of such objections, the City may (i) by the giving of written notice to the Developer terminate this Agreement, upon the receipt of which this Agreement shall be null and void and neither Party shall have any liability hereunder, except for any obligations under Section 3.13, or (ii) waive any title objections and proceed to closing. The Developer shall have no obligation to take any action to clear defects in the title to the New Resources Property, other than the good faith efforts described above. (b) The Developer shall take no actions to encumber title to the New Resources Property between the date of this Agreement and the time the deed is delivered to the City. The Developer expressly agrees that it will not cause or permit the attachment of any mechanics, attorneys, or other liens to the New Resources Property prior to Closing. Upon Closing, the Developer is obligated to pay all costs to discharge any encumbrances to the New Resources Property attributable to actions of the Developer, its employees, officers, agents or consultants, including without limitation any architect, contractor and or engineer. (c) The City shall take no actions to encumber title to the New Resources Property between the date of this Agreement and the time the deed is delivered to the City. The City expressly agrees that it will not cause or permit the attachment of any mechanics, attorneys, or other liens to the New Resources Property prior to Closing. Notwithstanding termination of this Agreement prior to Closing, City is obligated to pay all costs to discharge any encumbrances to the New Resources Property attributable to actions of City, its employees, officers, agents or consultants, including without limitation any architect, contractor and or engineer. Section 3.9. "As Is" Conveyance of New Resources Property. The City will take the conveyance of the New Resources Property on an "AS IS" "WHERE IS" basis, with all faults and defects, without any warranties, express or implied, except such representations and warranties as specifically set forth in this Agreement. (a) The Developer makes no representations concerning nor shall have any responsibility or obligation to undertake any cleanup or remediation on the New Resources Property. (b) The City is hereby granted the right to enter upon and inspect, analyze and test the New Resources Property for all reasonable purposes, including conducting soil and environmental tests or studies upon 24 hours notice to the Developer. The City shall pay for the cost of all investigations of the New Resources Property which are ordered by the City for purposes of conducting its own investigations of the New Resources Property. If, at least, 10 days before the Closing, the City determines that Hazardous Materials or other pollutants as defined under federal and state law exist on the property, or that the soils are otherwise unsuitable for construction of the Minimum Improvements, the City may at its option terminate this Agreement by giving notice to the Developer, upon receipt of which this Agreement shall be null and void and neither Party shall have any liability thereunder. The City hereby agrees to indemnify and hold the Developer harmless from any claims, damages, costs and liability, including without limitation reasonable attorneys' fees, resulting from entering upon the New 12 512017v5 JSB BL185-52 Resources Property or the performing of the analysis, tests or inspections referred to in this section. (c) The City acknowledges that the Developer makes no representations or warranties as to the condition of the soils on the New Resources Property or its fitness for construction of the Public Improvements or any other purpose for which the City may make use of such property. The City further agrees that it will indemnify, defend, and hold harmless the Developer, and its officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the New Resources Property after the date of Closing. (d) To the actual knowledge of the undersigned representatives of the Developer, there are no legal actions, suits or other legal or administrative proceedings, pending or threatened, that affect the New Resources Property or any portion thereof, and the undersigned representatives of the Developer have no actual knowledge that any such action is presently contemplated. Section 3.10. As Is Conveyance of City's Property. (a) The Developer shall take the conveyance of City's Property on an "AS IS" "WHERE IS" basis, with all faults and defects, without any warranties, express or implied, except such representations and warranties as specifically set forth in this Agreement, and the Developer waives any claims against the City and its governing bodies' members, officers, agents, including the independent contractors, consultants and legal counsel, servants and employees thereof (for purposes of this Section, collectively the "Indemnified Parties"), for indemnification, contribution, reimbursement or other payments arising under federal and state law and the common law relating to environmental or any other condition of City's Property. (b) The City makes no representations concerning nor shall have any responsibility or obligation to undertake any cleanup or remediation on the City's Property. Following delivery of the Deed, the Developer agrees to remediate any environmental contamination or pollution on the City's Property that may be required by law. (c) The Developer is hereby granted the right to enter upon and inspect, analyze and test the City's Property for all reasonable purposes, including conducting soil and environmental tests or studies upon 24 hours notice to the City Administrator. The Developer shall pay for the cost of all investigations of the City's Property which are ordered by Developer for purposes of conducting its own investigations of the City's Property. If, at least, 10 days before the Closing, the Developer determines that Hazardous Materials or other pollutants as defined under federal and state law exist on the property, or that the soils are otherwise unsuitable for construction of the Minimum Improvements, the Developer may at its option terminate this Agreement by giving notice to the City, upon receipt of which this Agreement shall be null and void and neither Party shall have any liability thereunder. Developer hereby agrees to indemnify and hold the City harmless from any claims, damages, costs and liability, including without limitation reasonable attorneys' fees, resulting from entering upon the City's Property or the performing of the analysis, tests or inspections referred to in this section. 13 512017v5 JSB BL185-52 (d) The Developer acknowledges that the City makes no representations or warranties as to the condition of the soils on the City's Property or its fitness for construction of the Minimum Improvements or any other purpose for which the Developer may make use of such property. The Developer further agrees that it will indemnify, defend, and hold harmless the City, and its governing body members, officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the City's Property after the date of Closing. (e) To the actual knowledge of the undersigned representatives of the City, there are no legal actions, suits or other legal or administrative proceedings, pending or threatened, that affect the City's Property or any portion thereof, and the undersigned representatives of the City have no actual knowledge that any such action is presently contemplated. Section 3.11. Representations and Warranties Regarding New Resources Property. (a) Prior to the Closing, the Developer shall pay in full all amounts due for labor, materials, machinery, fixtures or tools furnished within the 120 days immediately preceding the Closing in connection with construction, alteration or repair of any structure upon or improvement to the New Resources Property. (b) To the best of the Developers' knowledge, no hazardous substances are located on or have been stored, generated, used, processed or disposed of on or released or discharged from (including ground water contamination) the New Resources Property and no above or underground storage tanks exist on, or have been removed from, the New Resources Property. (c) There are no legal actions, suits or other legal or administrative proceedings, pending or threatened, that affect the New Resources Property or any portion thereof, and the Developer has no knowledge that any such action is presently contemplated. (d) The Developer has good, indefeasible and marketable fee simple title to the New Resources Property, subject to the permitted encumbrances. The Developer has no knowledge of any unrecorded agreements, undertakings or restrictions which affect the New Resources Property. (e) The Developer has not filed, voluntarily or involuntarily, for bankruptcy relief within the last year under the United States Bankruptcy Code, nor has any petition for bankruptcy or receivership been filed against the Developer within the last year (f) To the best of the Developer's knowledge, there are no wells on the New Resources Property within the meaning of Minnesota Statutes, Section 103L235. There is no sewage generated at the New Resources Property to be managed, and there is no individual sewage treatment system located on or serving the New Resources Property. (g) The Developer has not relied on the City, its governing bodies' members, officers, agents, including the independent contractors, consultants and legal counsel, servants and employees thereof regarding any tax consequences to the Developer regarding the land exchange contemplated by this Agreement and other amounts which may be paid by the City under this Agreement. 14 512017v5 JSB BL185-52 All representations and warranties made herein shall be deemed remade as of Closing and shall be true and correct as of Closing and shall be deemed to be material and to have been relied upon by the Parties, notwithstanding any investigation or other act of Developer heretofore or hereafter made, and shall survive Closing and execution and delivery of the deed. Section 3.12. Representations and Warranties Regarding City's Property. (a) Prior to the Closing, the City shall pay in full all amounts due for labor, materials, machinery, fixtures or tools furnished within the 120 days immediately preceding the Closing in connection with construction, alteration or repair of any structure upon or improvement to the City's Property. (b) To the City's actual knowledge, without investigation, there are no legal actions, suits or other legal or administrative proceedings, pending or threatened, that affect the City's Property or any portion thereof, and the City has no actual knowledge that any such action is presently contemplated. (c) The City has good, indefeasible and marketable fee simple title to the City's Property, subject to the permitted encumbrances. The City has no actual knowledge of any unrecorded agreements, undertakings or restrictions which affect the City's Property. (d) To the City's actual knowledge, without investigation, there are no wells on the City's Property within the meaning of Minnesota Statutes, Section 103L235. To the City's actual knowledge, without investigation, there is no sewage generated at the New Resources Property to be managed, and there is no individual sewage treatment system located on or serving the New Resources Property. (e) The City has not relied on the Developer, its officers, agents, including the independent contractors, consultants and legal counsel, servants and employees thereof regarding any tax consequences to the City regarding the land exchange contemplated by this Agreement and other amounts which may be paid by the City under this Agreement. All representations and warranties made herein shall be deemed remade as of Closing and shall be true and correct as of Closing and shall be deemed to be material and to have been relied upon by the Parties, notwithstanding any investigation or other act of City heretofore or hereafter made, and shall survive Closing and execution and delivery of the deeds. Section 3.13. No Business Subsidy. The City's Property and the New Resources Property are being exchanged for fair value as set forth in this Agreement. As such, this exchange transaction does not constitute a business subsidy within the meaning of Minnesota Statutes, Sections 116J.993 through 116J.995. Section 3.14. Tax Increment Financing. The City has established Tax Increment Financing (Redevelopment) District No. 24 (the Truck Shop Project) (the "TIF District") which includes the Developer's Minimum Improvements Property and the Public Improvement Property. Tax increments generated from the TIF District (the "Tax Increments"), including the Developer's Minimum Improvements Property, will be used by the City for administrative costs 15 512017v5 JSB BL185-52 of creating and maintaining the TIF District and to finance certain administrative costs, the City Site Work and the Public Improvements within the TIF District pursuant to an interfund loan as authorized by a resolution adopted by the City on May 15, 2017 (the "Interfund Loan"). The Developer understands that the Tax Increments are pledged to the payment of administrative costs and the repayment of the Interfund Loan and no payment of Tax Increments will be provided to the Developer. The City shall use the Tax Increments for any purpose it determines for which the Tax Increments may lawfully be used pursuant to the applicable provisions of the Minnesota law. Section 3.15. Relocation Benefits; Indemnification. The Developer acknowledges that the Developer is not being displaced from the New Resources Property as a result of the transaction contemplated by this Agreement and that the Developer is not eligible for relocation assistance and benefits and that the land exchange contemplated by this Agreement includes compensation for any and all relocation assistance and benefits for which the Developer may be eligible. The provisions of this paragraph shall survive closing of the transaction contemplated by this Agreement. 16 512017v5 JSB BL185-52 ARTICLE IV CONSTRUCTION OF MINIMUM IMPROVEMENTS AND PUBLIC IMPROVEMENTS Section 4.1. Construction of Minimum Improvements. Subject to all other terms and conditions of this Agreement, the Developer agrees that it will construct, or cause to be constructed, the Developer's Minimum Improvements in accordance with the terms of this Agreement and the approved Construction Plans. At all times prior to the Termination Date the Developer will operate and maintain, preserve and keep the Developer's Minimum Improvements or cause the Minimum Improvements to be operated, maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. Section 4.2. Construction Plans. (a) Before commencement of construction of the Developer's Minimum Improvements and subject to the necessary completion of the City Site Work, Developer shall submit to the City Construction Plans. The City will approve such Construction Plans in writing if. (i) such Construction Plans conform to the terms and conditions of this Agreement; (ii) such Construction Plans conform to the goals and objectives of the Development Program; (iii) such Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iv) such Construction Plans are adequate to provide for construction of the Minimum Improvements; (v) the Construction Plans do not provide for expenditures in excess of the funds available to Developer for construction of the Minimum Improvements; and (vi) no Event of Default by either of the Parties has occurred. No approval by the City shall relieve Developer of the obligation to comply with the terms of this Agreement or of the Development Program, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Developer's Minimum Improvements in accordance therewith. No approval by the City shall constitute a waiver of an Event of Default, except as may be agreed to in writing signed by the Parties. If approval of the Construction Plans is requested by Developer in writing at the time of submission by the Developer, such Construction Plans shall be deemed approved unless rejected in writing by the City, in whole or in part within 30 days of such submission. Such rejections shall set forth in detail the reasons therefore, and shall be made within 30 days after the date of their receipt by the City. If the City rejects any Construction Plans in whole or in part, Developer shall submit new or corrected Construction Plans within 30 days after written notification to Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the City. The City's approval shall not be unreasonably withheld. Said approval shall constitute a conclusive determination that the Construction Plans (and the Developer's Minimum Improvements and the City's Minimum Improvements, constructed in accordance with said plans) comply to the City's satisfaction with the provisions of this Agreement relating thereto. The Developer hereby waives any and all claims and causes of action whatsoever resulting from the review of the Construction Plans by the City and/or any changes in the Construction Plans requested by the City. Neither the City nor any employee or official of the City shall be responsible in any manner whatsoever for any defect in the Construction Plans or in any work done pursuant to the Construction Plans, including changes requested by the City. 17 512017v5 JSB BL185-52 (b) If Developer desires to make any material change in the Construction Plans after their approval by the City, Developer shall submit the proposed change to the City for its approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved Construction Plans, the City shall approve the proposed change and notify Developer in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed approved by the City unless rejected, in whole or in part, by written notice by the City to Developer, given to the Developer within 10 days after the date of submission of such proposed change, setting forth in detail the reasons therefor. The City's approval of any such change in the Construction Plans will not be unreasonably withheld. Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable Delays and subject to the completion of the City Site Work, the Developer must commence construction of the Developer's Minimum Improvements by September 1, 2018. The Developer must substantially complete construction of Developer's Minimum Improvements by December 31, 2018. All work with respect to the Developer's Minimum Improvements to be constructed on the Developer's Minimum Improvements Property shall substantially conform to the Construction Plans as submitted by Developer and approved by the City. Developer agrees for itself, its successors and assigns, and every successor in interest to the Developer's Minimum Improvements Property, or any part thereof, that Developer, and such successors and assigns, shall promptly begin and diligently prosecute, to completion, the development of the Developer's Minimum Improvements Property through the construction of the Developer's Minimum Improvements thereon, and that such construction shall in any event be commenced within the period specified in this Section 4.3 of this Agreement. Subsequent to conveyance of the City's Property, or any part thereof, to Developer, and until construction of the Minimum Improvements has been completed, Developer shall make reports, in such detail and at such times as may reasonably be requested by the City, as to the actual progress of Developer with respect to such construction. Section 4.4. Certificate of Completion. (a) Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of Developer to construct the Minimum Improvements (including the dates for commencement and completion thereof), the City will furnish Developer with an appropriate instrument so certifying. Such certifications by the City shall be (and it shall be so provided in the deed and in the certifications themselves) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in the quit claim deed for the City's Property with respect to the obligations of Developer, and its successors and assigns, to construct the Minimum Improvements and the date for the completion thereof. Such certifications and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of Developer to any Holder of a Mortgage, or any insurer of a Mortgage, securing money loaned to finance the Minimum Improvements, or any part thereof. 18 512017v5 JSB BL185-52 (b) The certificates provided for in this Section 4.4 of this Agreement shall be in such form as will enable them to be recorded in the proper office for the recordation of deeds and other instruments pertaining to the Developer's Minimum Improvements Property. If the City shall refuse or fail to provide any certification in accordance with the provisions of this Section 4.4 of this Agreement, the City shall, within 30 days after written request by Developer, provide Developer with a written statement, indicating in adequate detail in what respects Developer has failed to complete the Developer's Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the City, for Developer to take or perform in order to obtain such certification. (c) The construction of the Developer's Minimum Improvements shall be deemed to be commenced when foundation work has commenced (as reasonably determined by the City Representative), and shall be deemed to be substantially completed when Developer has received a certificate of occupancy issued by the City for the Developer's Minimum Improvements. Section 4.5. Construction of Public Improvements. (a) In order to induce the Developer to undertake the Developer's Improvements, subject to the terms and conditions set forth herein, the City agrees to undertake the construction of the Public Improvements, in accordance with the plans and specifications prepared by the City engineer. The City agrees that, subject to the terms and conditions set forth herein, it shall promptly begin and diligently prosecute, to completion, the construction of the Public Improvements. (b) Subject to (i) Unavoidable Delays, (ii) the satisfaction of all conditions to the conveyance of the City's Property and New Resources Property, (iii) approval by the City Council of the final plans, specifications and costs, (iv) City having obtained satisfactory bids in accordance with approved such plans and specifications and having awarded and entered into a contract for the construction thereof, and (v) satisfaction of the requirements of all applicable laws, City ordinances, requirements and procedures and the City Code, the City shall, at its own expense, commence construction of a drainage and stormwater retention pond on the Public Improvement Property on Outlot A as depicted on the plat to be recorded following Closing for the New Resources Addition attached hereto as Exhibit G, subject to and in accordance with the plans and specifications prepared by the City engineer, (the "Retention Pond") by September 1, 2018 and substantially complete such construction of the Retention Pond by December 31, 2018. The City will operate and maintain the Retention Pond at its own expense, in accordance with the City Code and City ordinances, requirements and procedures. However, the City retains the ability, in accordance with the City Code and the City's ordinances, to levy future special assessments or charges for clean-up of restricted discharges made by the Developer into the Retention Pond. (c) Subject to (i) Unavoidable Delays, (ii) the satisfaction of all conditions to the conveyance of the City's Property and New Resources Property, (iii) approval by the City Council of the final plans, specifications and costs, (iv) City having obtained satisfactory bids in accordance with approved such plans and specifications and having awarded and entered into a contract for the construction thereof, and (v) satisfaction of the requirements of all applicable laws, City ordinances, requirements and procedures and the City Code, the City shall, at its own 19 512017v5 JSB BL185-52 expense, commence construction of a new public street referred to in this Agreement as "6 �/2 Street," from Quinn Avenue to Proctor Avenue on the Public Improvement Property at the location shown as 6 �/2 Street on the plat to be recorded following Closing for the New Resources Addition attached hereto as Exhibit G subject to and in accordance with the plans and specifications prepared by the City engineer (the "New 6 1/2 Street") by September 1, 2018 and substantially complete such construction of the New 6 �/2 Street by December 31, 2018. Until the New 6 1/2 Street is completed, the City agrees keep the existing 6th Street (south of the Project and just north of Highway 10) and Quinn Avenue (along the west edge of the Project) open as public roadways to allow access to the Developer's Minimum Improvements Property. The Developer shall not use the 6 1/2 Street right-of-way for storage and staging during the construction of the Developer's Minimum Improvements. 20 512017v5 JSB BL185-52 ARTICLE V INSURANCE Section 5.1. Insurance. Developer will provide and maintain at all times during the process of constructing the Developer's Minimum Improvements an All Risk Broad Form Basis Insurance Policy and, from time to time during that period, at the request of the City, furnish the City with proof of payment of premiums on policies covering the following: (a) Builder's risk insurance, written on the so-called "Builder's Risk — Completed Value Basis," in an amount equal to 100% of the insurable value of the Developer's Minimum Improvements at the date of completion, and with coverage available in nonreporting form on the so-called "all risk" form of policy. (b) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner's Contractor's Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and (c) Workers' compensation insurance, with statutory coverage. 21 512017v5 JSB BL185-52 ARTICLE VI DELINQUENT TAXES AND REVIEW OF TAXES Section 6.1. Review of Taxes. Developer agrees that, prior to the Termination Date, it will not apply for a deferral of property tax on the Developer's Minimum Improvements Property pursuant to any law, or transfer or permit transfer of the Developer's Minimum Improvements Property to any entity whose ownership or operation of the property would result in the Developer's Minimum Improvements Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to City in accordance with this Agreement). 22 512017v5 JSB BL185-52 ARTICLE VII FINANCING Section 7.1. Financing. (a) Before conveyance of the City's Property, the Developer shall submit to the City evidence of one or more commitments for mortgage financing which will close on or before the date of the Closing on the real property exchange pursuant to this Agreement or a certificate of internal financing in an amount sufficient for the construction of the Developer's Minimum Improvements. Such commitments may be submitted as short term financing, long term mortgage financing, a bridge loan with a long-term take-out financing commitment, or any combination of the foregoing. Such commitment or commitments for short term or long term mortgage financing shall be subject only to such conditions as are normal and customary in the mortgage banking industry. (b) If the City finds that the mortgage financing is sufficiently committed and adequate in amount to provide for the Developer's Minimum Improvements, then the City shall notify the Developer in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within 15 days from the date when the City is provided the evidence of financing. A failure by the City to respond to such evidence of financing shall be deemed to constitute an approval hereunder. If the City rejects the evidence of financing as inadequate, it shall do so in writing specifying the basis for the rejection. In any event the Developer shall submit adequate evidence of financing within 30 days after such rejection. Section 7.2. HRA Loan. The Developer acknowledges that pursuant to a Loan Agreement (Blighted Properties Forgivable Commercial/Industrial Loan) between the Housing and Redevelopment Authority in and for the City of Elk River (the "HRA") and the Developer, the HRA has authorized a loan in the amount of $75,000 in connection with the Developer's Minimum Improvements (the "HRA Loan") which HRA Loan is conditioned, among other things, upon the Developer providing a Mortgage and Assignment of Rents and Security Agreement and Fixture Financing Statement for the Developer's Minimum Improvements Property to the HRA and therefore, Closing under this Agreement is a condition to closing on the HRA Loan. The Developer further acknowledges that the Developer will be required to repay the HRA Loan, among other things, if the Developer fails to complete the Developer's Minimum Improvements as evidenced by a Certificate of Completion as provided in Section 4.4 hereof. 23 512017v5 JSB BL185-52 ARTICLE VIII PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER; INDEMNIFICATION Section 8.1. Representation as to Development. Developer represents and agrees that its purchase of the City's Property or portions thereof, and its other undertakings pursuant to the Agreement, are, and will be used, for the purpose of development of the Project and not for speculation in land holding. Section 8.2. Prohibition Against Transfer of Property and Assignment of Agreement. Developer represents and agrees that until issuance of the final Certificate of Completion for the Minimum Improvements: (a) Other than a lease or other agreement with Truck Shop, Inc. to which the City hereby consents, Developer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Developer's Minimum Improvements Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a "Transfer"), without the prior written approval of the City's board of commissioners unless Developer remains liable and bound by this Agreement, in which event, notwithstanding anything in this Agreement to the contrary, the City's approval is not required. The term "Transfer" does not include (i) encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable Developer or any successor in interest to the Developer's Minimum Improvements Property, or any part thereof, to construct the Developer's Minimum Improvements, or (ii) any lease, license, easement or similar arrangement entered into in the ordinary course of business related to operation of the Developer's Minimum Improvements. Prior approval by the City is not required for any Transfer: (1) to an affiliate or the transfer of a member's interest in Developer to an affiliate of the member so long as the proposed transferee expressly assumes the obligations of Developer or the original member; (2) that is involuntary resulting from the death or disability or parties in control of the members of Developer. (b) If Developer seeks to effect a Transfer which requires the approval of the City prior to issuance of the final Certificate of Completion for the Developer's Minimum Improvements, the City shall be entitled to require as conditions to such Transfer that: (1) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the City, necessary and adequate to fulfill the obligations undertaken in this Agreement by Developer as to the portion of the Developer's Minimum Improvements Property to be transferred. (2) Any proposed transferee, by instrument in writing satisfactory to the City and in form recordable among the land records, shall, for itself and its successors and assigns, and expressly for the benefit of the City, have expressly assumed all of the obligations of Developer under this Agreement as to the portion of the Developer's Minimum Improvements Property to be transferred and agreed to be subject to all the 24 512017v5 JSB BL185-52 conditions and restrictions to which Developer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Developer's Minimum Improvements Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the City) deprive the City of any rights or remedies or controls with respect to the Developer's Minimum Improvements Property or any part thereof or the construction of the Developer's Minimum Improvements; it being the intent of the Parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Developer's Minimum Improvements Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the City of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Developer's Minimum Improvements that the City would have had, had there been no such transfer or change. In the absence of specific written agreement by the City to the contrary, no such transfer or approval by the City thereof shall be deemed to relieve Developer, or any other party bound in any way by this Agreement or otherwise with respect to the construction of the Developer's Minimum Improvements, from any of its obligations with respect thereto. (3) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Developer's Minimum Improvements Property governed by this Article VIII, shall be in a form reasonably satisfactory to the City. (c) If the conditions described in paragraph (b) are satisfied with regard to any Transfer requiring the approval of the City then the Transfer will be approved and Developer shall be released from its obligations under this Agreement, as to the portion of the Developer's Minimum Improvements Property that is transferred, assigned, or otherwise conveyed. The provisions of this Section 8.2 apply to all subsequent transferors, assuming compliance with the terms of this Article. (d) Upon issuance of the final Certificate of Completion for the Minimum Improvements, Developer may transfer or assign the Developer's Minimum Improvements Property, the Minimum Improvements and/or Developer's rights and obligations under this Agreement with respect to such property without the prior written consent of the City. Section 8.3. Release and Indemnification Covenants. (a) Developer releases from and covenants and agrees that the City and the governing body members, officers, agents, servants and employees thereof shall not be liable for and agrees to indemnify and hold harmless the City and the governing body members, officers, agents, servants and employees thereof against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Developer's Minimum Improvements. 25 512017v5 JSB BL185-52 (b) Except for any willful misconduct of the following named parties and any claim as to the legal authority of the City to perform as required by this Agreement, Developer agrees (if timely tendered by the City to Developer) to protect and defend the City and the governing body members, officers, agents, servants and employees thereof, now or forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever to the extent caused by the construction, installation, and operation of the Developer's Minimum Improvements. (c) The City and the governing body members, officers, agents, servants and employees thereof shall not be liable for any damage or injury to the persons or property of Developer or its officers, agents, servants or employees or any other person who may be about the Developer's Minimum Improvements Property or the Developer's Minimum Improvements. (d) All covenants, stipulations, promises, agreements and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City and not of any governing body member, officer, agent, servant or employee of the City in the individual capacity thereof. (e) Nothing in this Agreement will be construed to limit or affect any limitations on liability of the City under State or federal law, including without limitation Minnesota Statutes Sections 466.04 and 604.02. 26 512017v5 JSB BL185-52 ARTICLE IX EVENTS OF DEFAULT Section 9.1. Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any failure by any Party, following notice and cure periods described in Section 9.2 hereof, to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement or under any other agreement entered into between Developer and the City in connection with development of the Project. Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section 9.1 of this Agreement occurs, the non-defaulting Party may exercise its rights under this Section 9.2 after providing 30 days written notice to the defaulting Party of the Event of Default, but only if the Event of Default has not been cured within said thirty days or, if the Event of Default is by its nature incurable within 30 days, the defaulting Party does not provide assurances reasonably satisfactory to the non-defaulting Party that the Event of Default will be cured and will be cured as soon as reasonably possible: (a) Suspend its performance under the Agreement until it receives assurances that the defaulting Party will cure its default and continue its performance under the Agreement. (b) Cancel and rescind or terminate the Agreement. (c) Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to enforce specific performance and observance of any obligation, agreement, or covenant of either of the Parties under this Agreement. Nothing in this Agreement shall entitle either Party to make any claim against a defaulting Party for any damages whatsoever and the Parties' remedies are strictly limited to the foregoing. Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the City or Developer is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the City or Developer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article IX. Section 9.4. No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by either Party and thereafter waived by the other Party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent,previous or subsequent breach hereunder. 27 512017v5 JSB BL185-52 ARTICLE X ADDITIONAL PROVISIONS Section 10.1. Conflict of Interests; City Representatives Not Individually Liable. The City and Developer, to the best of their respective knowledge, represent and agree that no member, official, or employee of the City shall have any personal interest, direct or indirect, in the Agreement, nor shall any such member, official, or employee participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly, interested. No member, official, or employee of the City shall be personally liable to Developer, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to Developer or successor or on any obligations under the terms of the Agreement. Section 10.2. Equal Employment Opportunity. Developer, for itself and its successors and assigns, agrees that during the construction of the Developer's Minimum Improvements provided for in the Agreement it will comply with all applicable federal, state and local equal employment and non-discrimination laws and regulations. Section 10.3. Restrictions on Use. Developer agrees that until the Termination Date, Developer, and such successors and assigns, shall devote the Developer's Minimum Improvements Property to the operation of the Developer's Minimum Improvements for uses described in the definition of such term in this Agreement, and shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Developer's Minimum Improvements Property or any improvements erected or to be erected thereon, or any part thereof. Section 10.4. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the Developer's Minimum Improvements Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 10.6. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement by either Party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and (a) in the case of Developer, is addressed to or delivered personally to Developer at Minnesota ; and (b) in the case of the City, is addressed to or delivered personally to the City at Elk River City Hall, 13065 Orono Parkway, Elk River, MN 55330-5600, Attn: Director of Economic Development. 28 512017v5 JSB BL185-52 Section 10.7. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 10.8. Recording. This Agreement shall not be recorded, except as may be agreed to in writing signed by the Parties. Section 10.9. Amendment. This Agreement may be amended only by written agreement approved and executed by the City and Developer. Section 10.10. City Approvals. Unless otherwise specified, any approval required by the City under this Agreement may be given by the City Representative. Section 10.11. Termination. This Agreement shall terminate on the Termination Date. Section 10.12. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all Parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. Section 10.13. Good Faith. Each Party shall act in good faith and in a commercially reasonable manner with respect to any matter contemplated by this Agreement, including, without limitation, approving or disapproving any request, including any request for approval of plans. Section 10.14. Fee Schedule. Any fees charged by the City to the Developer under the City Code and applicable ordinances and procedures in connection with the construction Developer's Minimum Improvements including, but not limited to, Surface Water Management Impact Fee, Sewer Access Charge, and Water Access Charge, if any, shall be based on the fee schedule in place at the time of the Developer's application for a building permit. 29 512017v5 JSB BL185-52 IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and Developer has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. CITY OF ELK RIVER, MINNESOTA By Its Mayor By Its City Clerk STATE OF MINNESOTA ) SS. COUNTY OF SHERBURNE) The foregoing instrument was acknowledged before me this day of 2018, by and , the Mayor and City Clerk of the City of Elle River, Minnesota, a municipal corporation under the Constitution and laws of the State of Minnesota, on behalf of the City. Notary Public 512017v5 JSB BL185-52 S_1 NEW RESOURCES, LLC By Its STATE OF MINNESOTA ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2018 by , the of New Resources, LLC, a Minnesota limited liability company, on behalf of the limited liability company. Notary Public 512017v5 JSB BL185-52 S_2 EXHIBIT A CITY'S PROPERTY Lot 3, AUDITORS SUBDIVISION OF LOT 6 OF AUDITORS SUBDIVISION NO. 3 OF ELK RIVER, Sherburne County, Minnesota. Lot 7 and that part of Lot 8, Block 7, W.H. HOULTON'S ADDITION TO THE VILLAGE OF ELK RIVER, Sherburne County, Minnesota which lies South of a line extended West from a point on the East line of said Lot 8 distant 12.20 feet North of the Southeast corner of said Lot 8 to a point on the West line of said Lot 8 distant 14.53 feet North of the Southwest corner of said Lot 8. 512017v5 JSB BL185-52 A_I EXHIBIT B NEW RESOURCES PROPERTY The South 60.00 feet of Lot 4, Block 7, W.H. HOULTON'S ADDITION TO THE VILLAGE OF ELK RIVER, Sherburne County, Minnesota. AND the South 60.00 feet of Lot 1, AUTITORS SUBDIVISION OF LOT 6 OF AUDITORS SUBDIVISION NO. 3 OF THE VILLAGE OF ELK RIVER, Sherburne County, Minnesota. 512017v5 JSB BL185-52 B_1 EXHIBIT C PUBLIC IMPROVEMENT PROPERTY Outlot A, New Resources Addition, Sherburne County, Minnesota, according to the plat attached hereto as Exhibit G to be recorded following Closing. 6 1/2 Street, as dedicated by the plat for the New Resources Addition, Sherburne County, Minnesota, according to the plat attached hereto as Exhibit G to be recorded following Closing. C-1 512017v5 JSB BL185-52 EXHIBIT D DEVELOPER'S MINIMUM IMPROVEMENTS PROPERTY Lot 1, Block 1, New Resources Addition, Sherburne County, Minnesota, according to the plat attached hereto as Exhibit G to be recorded following Closing. D-1 512017v5 JSB BL185-52 EXHIBIT E REVISED DRAWINGS FOR THE PROJECT 512017v5 JSB BL185-52 E-1 EXHIBIT F FORM OF QUIT CLAIM DEED (Top 3 inches reserved for recording data) QUIT CLAIM DEED DEED TAX DUE: $ DATE: January 2018 ECRV: (month/day/year) FOR VALUABLE CONSIDERATION, City of Elk River, Minnesota (insert name of Grantor) a municipal corporation under the laws of Minnesota ("Grantor"), hereby conveys and quitclaims to New Resources, LLC (insert name of Grantee) a Minnesota limited liability company under the laws of Minnesota, ("Grantee"), real property in Sherburne County, Minnesota, legally described as follows: Lot 3, AUDITORS SUBDIVISION OF LOT 6 OF AUDITORS SUBDIVISION NO. 3 OF ELK RIVER, Sherburne County, Minnesota. Lot 7 and that part of Lot 8, Block 7, W.H. HOULTON'S ADDITION TO THE VILLAGE OF ELK RIVER, Sherburne County, Minnesota which lies South of a line extended West from a point on the East line of said Lot 8 distant 12.20 feet North of the Southeast corner of said Lot 8 to a point on the West line of said Lot 8 distant 14.53 feet North of the Southwest corner of said Lot 8. Subject to easements, restrictions, or reservations of record, if any. Check here if all or part of the described real property is Registered(Torrens) ❑ Check applicable box: City of Elk River, Minnesota ❑ The Seller certifies that the Seller does not know of any wells on the described property. By: ❑ A well disclosure certificate accompanies this John J. Dietz document(If electronically filed, insert WDC number: ). Its: Mayor ❑ 1 am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property By: have not changed since the last previously filed Tina Allard well disclosure certificate. Its: City Clerk State of Minnesota, County of SHERBURNE This instrument was acknowledged before me on 20_ by John J. Dietz, as Mayor and by Tina Allard, as City Clerk of the City of Elk River, Minnesota, a municipal corporation organized and existing 512017v5 JSB BL185-52 F-1 under the laws of the State of Minnesota under the laws of the State of Minnesota, on behalf of the body corporate and politic. Notary Public THIS INSTRUMENT WAS DRAFTED BY: TAX STATEMENTS FOR THE REAL PROPERTY (insert name and address) DESCRIBED IN THIS INSTRUMENT SHOULD BE SENT TO: Kennedy&Graven, Chartered (JSB) (insert name and address of Grantee to whom tax 470 U.S. Bank Plaza statements should be sent) 200 South 6th Street Minneapolis, MN 55402 New Resources, LLC Attn: 512017v5 JSB BL185-52 F-1 EXHIBIT G PLAT OF NEW RESOURCES ADDITION 512017v5 JSB BL185-52 G-1 O z $ a Minnesota � proprietor of the following described property situated in the County of Sherburne, State of Minnesota, to wit: w z O Q � Q U W o \ NO. 3 OF THE VILLAGE OF ELK RIVER. Has caused the same to be surveyed and platted as NEW RESOURCES ADDITION U ~ U this plat. W 1 utility purposes only. _ M W U U5 ry z O z C N GRAPHIC SCALE 50 0 25 50 100 SCALE: 1 INCH = 50 FEET NEW RESOURCES ADDITI01M Drainage and Utility Easements are shown thus: �- 5 —110 — 5—►1 L___-- 10 Being 10 feet in width and adjoining right–of–way lines, also being 5 feet in width and adjoining lot lines, unless otherwise indicated, as shown on plat. For the purposes of this plat, the North line of the N.E. 1/4, Sec. 33, T. 33, R. 26, is assumed to bear North 89°13'18" East. • Denotes iron monument found. o Denotes a 1/2 inch x 14 inch iron monument with a plastic plug stamped R.L.S. 13057. Q Denotes a Sherburne County Cast Iron Monument. of 0 � 5 6 N 66 r,-89-1 1'52"W 184 78 MEAS. F ----------------Waw \ 9 N g J \\-- DRAINAGE AND UTILITY EASEMENT 12 j� W rnOVER ALL OF OUTLOT A - 4 �°'o---------- - -- o ICO\\ rn N 180.0 PLAT ��00 N89"51'54"E 180.25 MEAS. 8 ��\ LJJ 66 I o DRAINAGE AND o �� N89'51'54"E 171.99 W N N UTILITY EASEMENT > — — — — — — — — — — — — 7i m 0 �------------- 0 O 3 (/) I j F a Q w 1 Q I �� I I Q LLJ 000 J Q I _ QQ_ �01 I (n r � 7� M o0 01 2 Q I Z �� w 06 O 7.0 FT.r­ A&IIIIIIIII& -= W zNSTREET I'A _I J N � EASEMENT I W 17 >z C�LdI I = I z o) o I . I 351.68 j O) L------------------+----�---------- 12 cn I OU I o 6 1 /2 1 STREET 4 I � I _4 S89°32'51 "W I 363.50 MEAS. FOUND 3/8TH) I I I 362.5 PLAT IINCH STEEL ROD. I I I I 3 I I 1 I I I I ------ ------------ W. H. HOULTON' ADDITION 12 1 11 1 10 j 2 I j j I I I I I 66 I I I I 1 I 66 I j I 1 CITY OF ELK RIVER SHERBURNE COUNTY, MN KNOW ALL $ a Minnesota m proprietor of the following described property situated in the County of Sherburne, State of Minnesota, to wit: Lots 4, 5, 6, 7, 8 and 9, Block 7, W.H. HOULTON'S ADDITION TO THE VILLAGE OF ELK RIVER, D 1, 2 and 3, AUDITORS SUBDIVISION OF LOT 6 OF AUDITORS SUBDIVISION NO. 3 OF THE VILLAGE OF ELK RIVER. Has caused the same to be surveyed and platted as NEW RESOURCES ADDITION Q of Elk River, for public use forever, the public way as shown on this plat. C N GRAPHIC SCALE 50 0 25 50 100 SCALE: 1 INCH = 50 FEET NEW RESOURCES ADDITI01M Drainage and Utility Easements are shown thus: �- 5 —110 — 5—►1 L___-- 10 Being 10 feet in width and adjoining right–of–way lines, also being 5 feet in width and adjoining lot lines, unless otherwise indicated, as shown on plat. For the purposes of this plat, the North line of the N.E. 1/4, Sec. 33, T. 33, R. 26, is assumed to bear North 89°13'18" East. • Denotes iron monument found. o Denotes a 1/2 inch x 14 inch iron monument with a plastic plug stamped R.L.S. 13057. Q Denotes a Sherburne County Cast Iron Monument. of 0 � 5 6 N 66 r,-89-1 1'52"W 184 78 MEAS. F ----------------Waw \ 9 N g J \\-- DRAINAGE AND UTILITY EASEMENT 12 j� W rnOVER ALL OF OUTLOT A - 4 �°'o---------- - -- o ICO\\ rn N 180.0 PLAT ��00 N89"51'54"E 180.25 MEAS. 8 ��\ LJJ 66 I o DRAINAGE AND o �� N89'51'54"E 171.99 W N N UTILITY EASEMENT > — — — — — — — — — — — — 7i m 0 �------------- 0 O 3 (/) I j F a Q w 1 Q I �� I I Q LLJ 000 J Q I _ QQ_ �01 I (n r � 7� M o0 01 2 Q I Z �� w 06 O 7.0 FT.r­ A&IIIIIIIII& -= W zNSTREET I'A _I J N � EASEMENT I W 17 >z C�LdI I = I z o) o I . I 351.68 j O) L------------------+----�---------- 12 cn I OU I o 6 1 /2 1 STREET 4 I � I _4 S89°32'51 "W I 363.50 MEAS. FOUND 3/8TH) I I I 362.5 PLAT IINCH STEEL ROD. I I I I 3 I I 1 I I I I ------ ------------ W. H. HOULTON' ADDITION 12 1 11 1 10 j 2 I j j I I I I I 66 I I I I 1 I 66 I j I 1 CITY OF ELK RIVER SHERBURNE COUNTY, MN KNOW ALL PERSONS BY THESE PRESENTS: That New Resources, LLC, a Minnesota Limited Liability Company, owner and proprietor of the following described property situated in the County of Sherburne, State of Minnesota, to wit: Lots 4, 5, 6, 7, 8 and 9, Block 7, W.H. HOULTON'S ADDITION TO THE VILLAGE OF ELK RIVER, AND Lots 1, 2 and 3, AUDITORS SUBDIVISION OF LOT 6 OF AUDITORS SUBDIVISION NO. 3 OF THE VILLAGE OF ELK RIVER. Has caused the same to be surveyed and platted as NEW RESOURCES ADDITION and does hereby dedicate to the City of Elk River, for public use forever, the public way as shown on this plat. Also dedicating to the public for public use forever the easements as shown on this plat for drainage and utility purposes only. In witness whereof said Ken Beaudry, LLC has caused these presents to be signed by its proper officer this ______ day of NEW RESOURCES, LLC State of Minnesota, County of ___________________ The foregoing instrument was acknowledged before me this Limited Liability Company, on behalf of the Company. Kenneth Beaudry, Chief Manager day of Signed Printed Notary Public, My Commission expires: 20 , 20 by Kenneth Beaudry, Chief Manager of New Resources, LLC, a Minnesota County, Minnesota I hereby certify that I have surveyed and platted the land, or directly supervised the surveying and platting of the land described on the plat as NEW RESOURCES ADDITION; that this plat is a correct representation of the boundary survey; that all mathematical data and labels are correctly designated on the plat; that all monuments depicted on this plat have been, or will be correctly set within 1 year; as of the date of this certification, all wet lands and water boundaries and all public ways are shown and labeled as defined in Minnesota Statutes 505.01, Subd. 3. ------------------------ Lynn P. Caswell, Land Surveyor Minnesota License No. 13057 State of Minnesota, County of Sherburne The foregoing Surveyor's Certificate was acknowledged before me this ------ day of ------------------, 20___ Signed ---------------------------------------- Printed Notary Public, My Commission expires:_______________________ by Lynn P. Caswell, Land Surveyor, Minnesota License No. 13057. County, Minnesota Approved and accepted by the City Council of the City of Elk River, Sherburne, County, Minnesota, at a meeting held on the ______ day of 20 Mayor City Clerk I hereby certify that proper evidence of title has been presented to and examined by me, and I hereby approve this plat as to form and execution this ------ day of ----------------- 20----• Elk River City Attorney Pursuant to Sherburne County Ordinance Number 006, I hereby certify that this plat has been checked and approved as to compliance with Chapter 505, Minnesota Statutes this ______ day of 20____. _______________________________________, Sherburne County Surveyor I hereby certify taxes payable in the year _______ on lands herein described are paid in full, and there are no delinquent taxes, and that transfer was entered this ______ day of 20____. , Sherburne County Auditor/Treasurer I hereby certify that this instrument was filed in the Office of the County Recorder for record on this ------ day of o'clock .M., and was duly recorded as Document No. ( 6TH STREET) , Sherburne County Recorder U.S. HIGHWAY N0. 10 20----, at Oliver Surveying & Engineering, Inc.