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VII.1. Preliminary and Final Plat – 9 Seventh Avenue North; Lindahl (CR2016-013)February 2, 2016 � Council Report 2016-013 PRELIMINARY/FINAL PLAT — 9 Seventh Avenue South Proposed Action: The Planning Commission and staff recommend the following motions: • Move to ado�t Resolurion 2016-01, a�proving the �Yeliminar�r plat for Ho�kins Villa�e sub�ect to the condirions. • Move to ado�t Resolurion 2016-02, a�proving the final �lat for Ho�kins Village sub�ect to the conditions. Overview The applicant, Community Housing Development Corporarion (CHDC), requests preliminaryT and final plat approvals to subdivide the e�sring Hopkins Village apaYtment site located at 9 Seventh Avenue South. This Yequest also Yequires vacarion of an e�sring stoYm seweY easement which will be addressed by the CityT Council during a separate public hearing. According to the applicant, this Yequest is necessary to facilitate Yeftnancing and Yehabilitarion of the e�sting 161 unit apaYtment building and to set the stage foY future development of the adjacent undeYutilized suYface parking lot Should the City approve the subdivision Yequest, the applicant plans to come back to the City lateY this year to seek development approvals foY an addirional apaYtment building on the newly created paYcel. Staff finds the pYoposed pYelitziinary and final plats in confoYmance ��ith the Cit�'s CompYehensive Plan, Zoning Yegulations and Subdivision standaYds and Yecommends the Cityr appYove these requests. Primary Issues to Consider • Preliminar�r and Final Plat design • Land use and zoning standaYds • Street and access and standaYds • PaYk and open space standaYds • Engineering standaYds Su�porting Documents • Comments from residents • PYeliminary�Final Plats • Resolurion 2016-009 and 2016-010 • Applicant's Narrative • Access and PaYking Easement Jason Lindahl, AICP Cityr Planner Financial Impact: � N/A Budgeted: Y�N SouYce: Related Documents (CIP, ERP, etc.): Notes: CR 2016-013 Page 2 Background Planning Commission Action. During their JanuaryT 26`h regular meeting, the Planning Commission reviewed Planning Report 2016-01-SUBD, preliminaryT and final plats for Hopkins Village. AfteY hearing a summaryr presentarion fYom staff, the Commission held a public hearing that produced no comment Staff noted receiving two comments prior to the meeting by e-mail (see attached). The first was fYom Roz PeteYson with Cerron PYopeYties, owners of the retail poYrion of Marketplace Lofts, with concerns about paYking. The second comment was from Joe Hruska, President of the Sixth Avenue South Block Associarion, and also about parking. The applicant Yeached out to both paYries but was onlyr able to connect with Ms. PeteYson. 1�Zs. Peterson then sent a follow up e-mail to staff stating heY support foY the applicarion. The Commission had some general discussion of the plat, exisring paYking conditions and future development of Lot 2 before voring to recommend the City Council approve this Yequest. Present Conditions. AccoYding to the attached narrative from the applicant, the Hopkins Village ApaYtments site was originally developed in 1971. The 1.9 acYe site includes an 11 storyr apartment building and associated 151 stall surface parking lot The building totals 161 units made up of a miYture of one and two bedYoom affoYdable apartments foY senioYs. AccoYding to the applicant, they aYe in the pYocess of Yefinancing the e�sring building with the purpose of improving the aesthetics and opeYarion of the building while maintaining the pYoject as a desirable and affordable Yesidence foY senioYs. Scheduled improvements to the e�sring building include common aYea and apartment renovarions and mechanical and electrical syrstems updates. Outside the main entrance drive ��ill be upgYaded for accessibilit�r while the building itself will be repainted and windows refurbished. Inside the common areas, management office and resident resource aYea will all receive new fin�ishes. Individual apaYtment unit woYk will include kitchen and bathroom Yenovations, new finishes, accessibilit�r upgYades and lighring. Building improvements include new hearing, electrical, fire alaYm and an emeYgency backup geneYatoY. Future Development. According to the applicant, theyT have a preliminaryT vision for development of Lot 2 that includes a ne�u, mulri-storyr building containing 120-180 apartment units with common aYea ameniries and undergYound parking foY both the e�sring Hopkins Village Apartment building and proposed development. Future development would include impYovements to the aYeas between the e�sring building and the new development to bolster aestherics, pYomote pedestrian and vehiculaY circularion, and cYeate vibrant common aYeas, all in accoYdance ��ith Hopkins' zoning code and downtown development regulations. The applicant anricipates the ne�� development would include apartment units that aYe affoYdable and geaYed toward woYking individuals and families, fill�ing a much needed gap in the housing affoYdabilityr spectrum of the aYea. CHDC acknowledges that any future development of Lot 2 will YequiYe full development review and zoning appYoval fYom the Cityr of Hopkins, including Yezoning of Lot 2. CHDC also Yecognizes that Lot 2 occupies a prominent locarion on Mainstreet and plans to take the rime to finalize a high quality, thoughtful development concept. As such, development applicarions foY Lot 2 will be forthcoming. Legal Authority. Subdivision appYovals are consideYed quasi-judicial acrions. As such cases, the City is acring as a judge to deteYmine if the regularions within the Comprehensive Plan, CR 2016-013 Page 3 Zoning OYdinance and Subdivision OYdinance aYe being followed. Generally; if the applicarion meets these requiYements it must be approved. The applicable standaYds foY this applicarion, along with staf�s findings for each, are provided in the "Primary Issues to Consider" section below. Primary Issues to Consider Preliminary and Final Plat Design. Standards for revie`ving subdivision requests are outlined in Secrion 500 of the Cityr Code. This secrion of the Code details a t�vo-step preliminaryr and final plat pYocess foY land subdivision. In this case the applicant Yequests the Cityr review pYeliminaryr and final plats concurYently. The pYoposed pYelitninaryr plat would subdivide the e�sring 1.97 acYe paYcel into two sepaYate paYcels. Lot 1 would be 0.9 acYes (39,329 squaYe feet) in size and contain the exisring apaYtment building while Lot 2 would be 1.07 acYes (46,792 squaYe feet) in size and contain the e�sring suYface paYking lot The design of the final plat is consistent with that of the pYelitninary plat and must confoYm to all teYms and conditions of the pYelit�iinary plat The Yesult of this subdivision is that Lot 2 would be eligible foY future development, subject to specific City approvals foY that site. Land Use and Zoning Standards. The land use and zoning designarions aYe consistent with the existing multifamily use and proposed subdivision. The subject propertyT is guided HDR — High Densit�T Residential by the Comprehensive Plan and zoned B-3, General Business. According to the Comprehensive Plan, High Densit�T Residenrial includes mulri-unit and mulri- building developments. The high densit�r categor�r accommodates more intense housing, such as apartments and condominium developments. The densit�r range foY this categor�r establishes a minimum threshold of 17+ units per acre, ulrimatelyT resulring in multi-storied structures. By comparison, the B-3, GeneYal Business district allows Yesidenrial uses as a condirional use subject to the densit�r standaYds of the R-3 district The subject pYopeYty was approved byr the Cit�r in 1971 thYough a condirional use peYmit and side yaYd setback variance. The site also Yeceived a condirional use permit to allo�u a da�rcaYe facilityr in 1993 and paYking variance to allow construcrion of an outdooY pario oveY 5 paYking stalls in 2007. While the subject pYopeYtyr does not meet all the current development standards of the B-3 district (most notablyr commeYcial on the first flooY) it is consideYed legal non-conforming. AccoYding to Minnesota Statute 462.357, Subdivision 1e., legal nonconfoYmities geneYallyr have a statutoryr right to continue thYough Yepair, Yeplacement, restoYation, maintenance, oY impYovement but not through expansion. These rights Yun with the land and are not limited to a parricular landowner. If the benefited pYopeYtyr is sold, the new owner will have the same rights as the previous owneY. However, the burden is on the landowner to establish their pYopeYtyr qualifies foY nonconfoYming rights. It should be noted that the state statute does not define expansion. TheYefore the City mayr choose to define expansion in the city zoning ordinance which could include eitheY physical expansion or even intensifying the use. In this case, staff finds the pYoposed subdivision is not consideYed expansion because it will not cYeate addirional non-confoYming chaYacterisrics. Streets and Access Standards. CurrentlyT, the subject properttr has access through the main entrance drive along Seventh Avenue South, a public alleyr to the south and an access to its 151 CR 2016-013 Page 4 stall surface paYking lot along siYth Avenue South. TheYe are also public sidewalks that abut the site on the north along Mainstreet, the east along SiYth Avenue South and the west along Seventh Avenue South. Given the surrounding aYea is fullyr developed, no addirional streets oY sidewalks aYe required to be dedicated at this time. The proposed subdivision will sepaYate the e�sring apaYtment site fYom the associated suYface parking lot and the accesses from both the alleyr and SiYth Avenue South. This parking and access design was Yequired under the original development approvals and is essenrial to the funcrionalityr of the site. In this case, the Zoning OYdinance requiYes Elderlyr Housing provide 0.5 spaces peY unit oY 81 off-street paYking stalls (161 units X 0.5=81). The subject pYopertyr has 151 stalls oY 70 more than requiYed. As a Yesult, staff Yecommends a condition of appYoval Yequire the applicant to receive approval from the City and Yecord a parking and access easement oveY both Lots 1 and 2 to preserve the e�sting paYking and access condirions in peYpetuityr oY until such rime as the applicant Yeceives appYoval fYom the Cityr foY a development on Lot 2 that includes sufficient parking foY both Lots 1 and 2. The applicant has agYeed to this condirion and the easement is attached to this Yeport. The City AttoYneyr has reviewed this easement and found it acceptable. Park and Open Space Standards. Currently-, the City's subdivision regulations require subdivision applicarions to pay a park dedicarion fee foY mulrifamily developments equal to $1,500 per unit The curYent subdivision applicarion proposes to create one additional lot for futuYe development of an apartment building. At this rime the applicant has not determined a final design or number of units. Therefore, staff recommends that a condirion of appYoval Yequire the applicant to pay a park dedicarion fee equal to said fee at the time of issuance of a building peYmit. Engineering Standards. The Cit�r EngineeY has reviewed the pYelitninaryr and itnal plats and offers the follo�uing comments: 1. The stoYm sewer easement contains storm seweY pipe. The pipe has been disconnected at its upstream end, S�th Avenue, and no longer conveyrs public drainage. 2. Any future development of Lot 2 will be requiYed to accommodate conrinued access to the public alley to the south. The gYades at the south end of Lot 2 may impact this design. 3. The applicant shall payr all development fees applicable to the final design for any future development of Lot 2. Alternatives 1. Approve the prelitninaryr/final plat. By appYoving the pYelirninary/final plat, Lot 2 will be eligible for future development subject to specific City approvals for that site. 2. Deny the pYeliminaryr/final plat. By denying the pYelitninary /final plat, the subject pYopeYty will remain one parcel. If the City Council considers this alteYnative, findings will have to be idenrified that support this alteYnarive. 3. Continue for further informarion. If the CityT Council indicates that further informarion is needed, the item should be continued. rom: Roz Peterson <RazP@cerron.com> Sent: Wednesday, January 20, 2016 3:56 PM To: Jason Lindahl Subject: 9 Seventh Street Dearlason Thank yau for sending the letter regarding the Hopkins Village Apartments possible subdivision. I own the retail portion of Hopkins Marketplace Lofts next door. I ha�e concerns about parking because already at our cen#er, Hopkins Marketplace Lofts, customers and businesses complain about the lack of parking. The condo residents that have underground parking normally take at least half of the parking that is a�ailable lea�ing practically nowhere for employees let alon� customers to park. That beirag said, residential units need lots of parking. While I agree that Hopkins is a nice walkable town, the bottom line it is still a suburb with cold weather. People dri�e here to get araund including going to work. Dual intome families require ample parking for at least two cars. INe bougt�t the center with the understanding that the adjacent lot where Little Bfind Spot is {ocated would ha�e parking avaiiaf�le to the public. That is not �he tase. They charge our tenants sa the businesses' employees can park there. With all the multi hausing that has gone up recently along with low parking !ot requirements, pressure on available public parking is at a pr�mium. I'm just thankful there is a pubfic lot acros5 frorn Chipotle, but that doesn't help Aji when the building next door puts more pressure on free public parking spots. Hopkir�s Village Apartrr�ents has LOTS of parking and I would hate to lose that nice luxury. Perhaps a parking agr�ement �ttached to the property would accommodate their request. Hopefully ! ca� make the hearing. Thanks for your consideration. 5incerely Roz Peterson, CCIM Cerron Comrrtiercial Properties 21476 Grenada A�enue, Lake�ille, MN 55044 952-459-9444 * CeIL f12-708-5281*Fax: 952-469-2�73 Email: rozp@cerron.com * www.cer�-an.com ��__ =_=� "+CERRON,� � �! � � � Creating Property Sofutions, For You...With Yau! Subscribe to our Comp6ementary Monthly Newsletter HERE Shannon Smith From; joe <joehruska@msn.com> Sent: Wednesday, January 20, 2D16 5:19 P1vi To: Jason Lindahl Subject: Nopkins Village Subdivision Hi lason, my narne is Joe Mruska and I'm the presiden� of our block association which is located on 6th Ave. sauth of Main Street. I don't know if I can make the planning & zoning, so I`m emaifing you on this subject. In talking with some of the neighbors, the biggest issue woulcE be parking. Right now, Hopkins Village s�ems to have enough parking in the lot they want to subdi+ride. However, when they move ail the cars onto 6th Ave. for their snaw removal, (we understand that�, some of their tenants will take days before t#�ey will move them back to their parking spaces. If they de�elap the parking lot, I would hop� parking will be considered, maybe underground parkir�g? 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I " I I � � �-` -� � I_ O �> � C� F- C� �� C� F'_ '� ---- — � `� � avrzz 3os,sac»N " � � � __ ._ � I i� c ��� h--a-� Z tlm � I I �e $Q �x� I I p I U I �m� I - -----1�1 ��_ � '� � � � � � � OZ'8BZ 3 Z0,8S,ZON � ��� „�� OD'lZl �.OS,S0.FON � b-�— _ — °`�� �� °v� � y I � ��c��_�� �� ��, — �. �C�„1���`.�... u " c ' Y b 8 � ; c Z � 41 ` U T W v � C � . w a CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO: 2016-009 RESOLUTION MAHING FINDINGS OF FACT AND APPROVING THE PRELIMINARY PLAT FOR HOPKINS VILLAGE WHEREAS, an application for a preliminary plat has been submitted by Community Housing Development Corporation (CHDC); and WHEREAS, the procedural history of the application is as follows: 1. That an application for preliminary plat was submitted by Community Housing Development Corporation (CHDC), on December 23, 2015; and 2. That the Hopkins Zoning and Planning Commission, pursuant to mailed and published notice, held a public hearing on the application and reviewed such application on January 26, 2016: all persons present were given an opportunity to be heard; and 3. That the written comments and analysis of City staff were considered; and 4. The legal description of the parcel is as follows: Lots 1— 10, 40, 41, & 42, Block 2, West Minneapolis, according to the recorded plat thereof, Hennepin County, Minneapolis, Minnesota Together with all that part of the vacated alley lying adj acent to said Lots 1— 6, inclusive; and together with the vacated alley lying adjacent to Lots 7, 8, 41 and 42, which lies North of the North line of the South Twenty-One (21) feet of said Lots 8& 41 and the same line as extended Easterly and Westerly. NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins hereby approves the preliminary plat for Hopkins Village based on the following Findings of Fact: 1. That the preliminary plat conforms to the requirements of the City's Comprehensive Plan, zoning regulations and subdivision standards. BE IT FURTHER RESOLVED, that the City Council of the City of Hopkins hereby approves the preliminary plat for Hopkins Village based on the following conditions: 1. Conformance with all requirements of the City's Comprehensive Plan, zoning regulations, and subdivision standards. 2. Payment of all applicable development fees including, but not limited to, park dedication prior to issuance of a building permit for Lot 2. 3. Record with Hennepin County a parking and access easement over both Lots 1 and 2, Block l, Hopkins Village in a form acceptable to the City Attorney. This easement shall remain in place until such time as the applicant receives approval from the City for a development on Lot 2 that includes sufficient parking for both Lots 1 and 2. 4. Development of Lot 2 shall require separate approvals from the City applicable to the proposed development. 5. Conformance with all requirements of the City Engineer. Adopted by the Ciry Council of the City of Hopkins this 2nd day of February 2016. Molly Cummings, Mayor ATTEST: Amy Domeier, City Clerk CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO: 2016-010 RESOLUTION MAHING FINDINGS OF FACT AND APPROVING THE FINAL PLAT FOR HOPKINS VILLAGE WHEREAS, an application for a final plat has been submitted by Community Housing Development Corporation (CHDC); and WHEREAS, the procedural history of the application is as follows: That an application for final plat was submitted by Community Housing Development Corporation (CHDC), on December 23, 2015; and 2. That the Hopkins Zoning and Planning Commission, pursuant to mailed and published notice, held a public hearing on the application and reviewed such application on January 26, 2016: all persons present were given an opportunity to be heard; and That the written comments and analysis of City staff were considered; and 4. The legal description of the parcel is as follows: Lots 1— 10, 40, 41, & 42, Block 2, West Minneapolis, according to the recorded plat thereof, Hennepin County, Minneapolis, Minnesota Together with all that part of the vacated alley lying adjacent to said Lots 1— 6, inclusive; and together with the vacated alley lying adjacent to Lots 7, 8, 41 and 42, which lies North of the North line of the South Twenty-One (21) feet of said Lots 8& 41 and the same line as extended Easterly and Westerly. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hopkins hereby approves the final plat for Hopkins Village based on the following Findings of Fact: The final plat is consistent with the design of the preliminary plat. BE IT FURTHER RESOLVED, that the City Council of the City of Hopkins hereby approves the final plat for Hopkins Village based on the following condition: 1. Conformance with all terms and conditions of the preliminary plat. Adopted by the City Council of the Ciry of Hopkins this 2nd day of February 2016. ATTEST: Amy Domeier, City Clerk Molly Cummings, Mayor MEMORANDUM REGARDING SLIBDIVISI�N APPLICATrON December 23, 2015 To: City of Hopkins Kristin Elverum, Directox of Econozx�ic Development amd Planning Jason Lindahl, City PIanner From: Community Housing Deve�opment Corporation Re: Hopkins Village, 9 7''' Avenue So�th, Hopkins Back�round CoFnmunity Housing Development Cnrporation ("C�DG") is a nonprofit developer and owner and manager of more than 4,30� higi� qua�ity, af�'ardable housing units in Minnesata. CHDC is a partner in CHDC Hoplcins Lirnited Partnership {the "Owner"}, the owner of the Hopkzns Village Apartments, an 11 �stary, i 61 unit apartment complex (the "Ex�sring Building"} Iocated on Main Str�et, between 6`h Avenue South and 7�' Aver�ue South, in Hopkins. Constructe� in 1971, the �xisting Building contains a mix of affordable one and two bedraoz�n apartmen�s for seniors. The Existin� Building is lacated an a 1.977 acre parcel (ihe "Property"}, with the building itself accupying the wesi half of the Property, closest to 7`�' Avenue, and a iarge, surface parking area �ncompassing tl�e east half of the Property, abutting 7t�' Avenue. The existing surface parking lot includes 1 S 1 parking spaces and is currentty underutilized %y t�e Existing Bui�ding. Reimance and Renovation of ExistinQ Buildin�� CHDC is in the process of ref�nancing the Existin� Building with the purpose of improving the aesthetics and opera�ion of the building while maintaining the projec# as a desirable, aifardable residence for seniors. CHDC is on track to close on new finat�cing in the first quarter of 2qi�. �cheduled improvern�nts to the Exisring Building include cammon area and apartrnent unit renovations, and mechanical and electricaI system updates. The rrr�ain �ntrance drive will be upgraded for accessibility, while the building itself will be repainted and windows refurbished. Comrnon areas will receive new finishes, a renovated leasing and management office, and a new resident resource area. Apartment �nit work wili �nclade kitchen and bathroam renovations, new finishes, accessibility upgrades, and new l�ghting. The building's heating system will �e upg�raded witli new �igh effciency bailers and punnps while the building electrical system will get a complete eleetrical panel replacement, fire atarm panel, az�d a new emergency bacicap generatar. Subdivision Request CI�DC believes that the underutilized parking area represents an opportunity for �uture, hagh quality residential development. As a resuit, CHDC now reyuests approval to subdivide the Praperty into two new iots in accordance with the attached Preliminary and Final Plats o� Hopkins Village. Lc�t 1 vvill inelude the Existing Building and surroun€ling area. �.ot 2 will becott�e a site for future development. In the immediate fi�ture, the existing parking on Lot 2 will rernain and will b� availab�e to the Existing Building by easement. With ihe develapment of Lot �, parking needs of the Existing Building and the new devela�rr�ent will be accommodatec� in a siaarec� Underground paricing structuxe. Approval of the preliminary and final plats for Hopkins Village will faci�itate the refinance af th� Existing Building and allovv rehabiiitatian ta get underway quickly. Future DeveYopment CHDC and its joint venture partner have a pre�iminary vision for the development of Lot 2 that includes a new, muiti-story building containing 120-180 apartrnent units r�vith cozx�mon area amenities and underground parking to accommodate the new developxnent an� the Existz�g Building. Future developrnent wauld include improvements to the areas l�etween the Existing Building and the new developtnent to bolster aesthetics, pronnoie pedestria.n and vehiGular circulation, and create vibrant coinzr�on areas, aI1 zn accardance with Hopkins' zoning code and dawntown development reguiatians. CHDC anticipates that t�e n�w developrneni would include apartment units that are affordabte and geared toward working individuals azid families, filling a much needed gap in the houszng affordability spectrurn of the area. CHDG acknowledges that any future develapment af Lot 2 will require full develapment review and zoning approval frotn ihe City of Hopkins, including rezoning of Lot 2. �HDC alsa recognizes that Lot 2 oceupies a pronnine�t l�cation on Main Street and �laris to take the time to finaIize a high quality, thoughtful development concept. As such, developrnent applications #'or Lot � wiIl be farthcoming. Vacatian af Starm Sewer Easement The attach�d City of Hopkins �rdinance No. 343 was adopted by the Hopkins City Council �n Apr�l, 1971, to vacate a pub�ic al�ey, but maintain public storm sewer on the property. We understand that there has been no pubiic use of the easement and that the City's public wor�Cs depart�x�ent has confirmed that it ean be vacated. As such, CHDC requests that the easement cantained in the attached Document No. 3883588, evidenced �y the Iegal description contained in the document, be vacated concurrent with the approval of the prelirninary and final plat of Hopkins Village. CHDC looks farward to playing an angoir�g rale in the deve�opment of Hopkin.s' already thnving downtovvn through the renovatian and impravement of the Hopkins Village Apartments and the future development of the adjacent property. Thank you in advance for yo�r consideration af our subdivision and vacations requests. 11301155v1 DECLARATION OF PARHING AND ACCESS EASEMENTS THIS DECLARATION OF PARKING AND ACCESS EASEMENTS (this "Declaration") is made as of the day of , 2016 (the "Effective Date"), by CHDC Hopkins Limited Partnership, a Minnesota limited partnership ("Declarant"). RECITALS: A. Declarant is the fee owner of two adjacent parcels of real property located in the City of Hopkins, Hennepin County, Minnesota, legally described as Lot 1, Block l, Hopkins Village ("Lot 1") and Lot 2, Block 1, Hopkins Village ("Lot 2"). B. There exists upon Lot 1 a 161 unit apartment complex (the "Existing Building") owned by the Declarant. C. A paved parking lot and improvements (the "Parking Lot") have been constructed on Lot 2. D. Declarant, as the fee owner of Lot 2(the "Lot 2 Owner"), desires to create and declare for the benefit of itself, as the fee owner of Lot l, its successors and assigns (the "Lot 1 Owner"), its tenants employees, agents, licensees, guests and invitees and its successors' and assigns' tenants, employees, agents, licensees, guests and invitees (collectively with the Lot 1 Owner, the "Lot 1 Parties"), a non-exclusive easement for the purposes of parking, access and maintenance across and upon Lot 2. NOW, THEREFORE, Declarant hereby declares as follows: l. Declaration of Parking and Access Easements. The Declarant, for the benefit of Lot 1 and the Lot 1 Parties, and subject to the terms of this Declaration, grants, conveys and establishes the following easements (collectively, the "Easements"), upon, over, across and through the following described portions of Lot 2(the "Easement Areas"): (i) a perpetual, non- exclusive easement for reasonable vehicular parking by the Lot 1 Parties on and over those portions of Lot 2 designed and intended for use as parking areas, (ii) a perpetual, non-exclusive easement for reasonable pedestrian and vehicular access, ingress and egress to and from Lot 1 to and from the public streets and sidewalks abutting Lot 2, over and across those portions of Lot 2 designed and intended for use as walkways or driveways, and (iii) a perpetual, non-exclusive easement for repair, maintenance, plowing, repaving and restriping of the Easement Areas. The Easement is subject to termination as provided elsewhere in this Agreement. 2. Use of Easements. The use of the Easement Areas shall be expressly limited to the purposes specified in this Declaration and no other use shall be permitted which impairs the use of such areas for their intended purposes. During the term of this Declaration, the Lot 1 Owner shall be responsible to cause the Easement Areas to contain parking for the Existing Building in compliance with all applicable laws, ordinance and regulations. 3. Maintenance of Parking Improvements. During the term of this Declaration, the Lot 1 Owner shall be responsible for the maintenance, repair and replacement of the Parking Lot in a good and workmanlike manner to a condition suitable for its intended use, as determined by Lot 1 Owner, and in accordance with all applicable laws, ordinances and regulations. Without limiting the generaliry of the foregoing, the Lot 1 Owner shall be responsible, at its sole cost and expense, for plowing, repaving, restriping and repairing the Parking Lot at such time(s) as are commercially reasonable. 4. Default. If the Lot 1 Owner or the Lot 2 Owner shall default in compliance with this Agreement or shall fail to fulfill any of their respective obligations under this Agreement, the non-defaulting party shall provide written notice of such default to the defaulting party. If the defaulting party fails to cure such default within thirty (30) days of receipt of such notice, then the non-defaulting party may, but shall not be obligated to, perform the obligations of the defaulting parry and seek damages accordingly, including recovery of reasonable attorney's fees and costs. 5. No Fee for Use of Easement. Except for any charges expressly outlined herein, including, but not limited to the costs of maintenance of the Easement Areas, the Lot 2 Owner shall not charge the Lot 1 Owner a fee for the use of any or all of the Easement Areas. 6. Term. The term of this Declaration shall commence on the Effective Date and shall be perpetual. The Lot 1 Owner and the Lot 2 Owner, or their respective successors or assigns, may terminate this Declaration at any time by mutual agreement, so long as parking in an amount required by the City of Hopkins for Lot 1 is provided on Lot 2. Notwithstanding the foregoing, the parties acknowledge that a new structure may be constructed on Lot 2 necessitating the temporary relocation of parking for Lot 1, which shall not violate the terms of this Section 6, so long as any temporary parking arrangement is acceptable to the Lot 1 Owner, meets the requirements of the City of Hopkins, and permanent parking for Lot 1 is restored on Lot 2 not less than eighteen (18) months following the termination of this Declaration. 7. Estoppel Certificates. If Lot 1 Owner and the Lot 2 Owner are not the same party, each shall, from time to time, within ten (10) days after written request from the other parry, execute, acknowledge and deliver to the other, a certificate stating (i) that the terms and provisions of this Declaration are unmodified and are in full force and effect or, if modified, identifying the modification agreements; (ii) whether there is known to be any existing default hereunder by the other party and, if so, specifying the nature and extent thereof; (iii) whether the party executing such certificate is performing work for which that party expects reimbursement under the provisions hereof; (iv) the nature and extent of any setoffs, claims or defenses then being asserted or otherwise known by such party related to the obligations under the Agreement; (v) the nature and extent of any notice given or demand which has not been satisfied; and (vi) such other matters as may be reasonably requested. Each party shall deliver a written request for 2 such estoppel certificate to the other party at least ten (10) days prior to the closing of any sale or refinancing of the requesting party's parcel. 8. Indemnification. The Lot 1 Owner shall indemnify and hold the Lot 2 Owner and its successors and assigns harmless from and against all loss, costs, damage, actions, suits, judgments and expense, including reasonable attorneys' fees, arising out of or due to, the use of the Easement Areas by the Lot 1 Parties, except to the extent that such damage or loss is caused by, or the result of, the negligence or willful misconduct of the Lot 2 Parties. The Lot 2 Owner shall indemnify and hold the Lot 1 Owner and its successors and assigns harmless from and against all loss, costs, damage, actions, suits, judgments and expense, including reasonable attorneys' fees, arising out of or due to the negligence or willful misconduct of the Lot 2 Owner, its employees, agents or contractors. 9. No Right in General Public. Nothing contained in this Declaration shall be deemed to be a gift or dedication of any portion of Lot l, Lot 2, or the Easement Areas to the general public, or for any public purposes whatsoever, it being the intention of Declarant that this Declaration shall be strictly limited to and for the purposes herein expressed. 10. Notices. To be effective, any notice, consent, or other communication required or permitted under this Declaration must be in writing. A notice or other communication shall be deemed to have been given to a party, and shall be effective, (i) if delivered by hand, when physically received by such party, (ii) if delivered by an overnight delivery service, on the second business day following the date such notice or other communication is timely delivered to the overnight service, (iii) if delivered by telecopier or electronic mail, on the first business day following the date such notice or communication is transmitted electronically or by facsimile, or (iv) if delivered by mail, on the third business day following the date such notice or other communication is deposited in the U.S. mail by certified mail, postage prepaid, addressed to the other party, whichever occurs earlier. Any notice to be given hereunder shall be addressed as follows: If to Declarant: CHDC Hopkins Limited Partnership c/o Community Housing Development Corporation 614 North First Street, Suite 100 Minneapolis, Minnesota 55401 If to any other party: to an address for such party provided by notice pursuant to this Section 10. 11. No Waiver. No waiver of any of the covenants, agreements or representations contained in this Declaration or any breach thereof shall be taken to constitute a waiver of any other or subsequent breach of such covenants, agreements or representations or to justify or authorize the non-observance at any other time of the same or of any other covenants, agreement or representations. 3 12. Covenants to Run with Land. The easements, restrictions and reservations set forth herein shall run with the property burdened and shall be binding on all parties having any right, title or interest in the same, their heirs, successors and assigns. 13. Severability. If any clause, provision or portion of this Declaration is deemed to be illegal, invalid, or unenforceable under present or future laws, then the remainder of the Declaration shall remain unaffected but the illegal, invalid or unenforceable provision shall be modified in such a way that effectuates the intention of this Declaration but complies with all applicable laws. 14. Amendment or Modification. This Declaration and any of the rights, licenses and easements created hereby may not be modified or terminated except by a written instrument executed by the Lot 1 Owner and the Lot 2 Owner, or their respective successors and assigns. Notwithstanding the foregoing, this Declaration may not be modified to reduce the number of parking spaces in the Easement Areas available to Lot 1 below the lesser of the number of parking spaces in the Easement Areas as of the Effective Date of this Declaration or the number of parking spaces required by the City of Hopkins. 15. Governing Law. This Declaration shall be governed by and construed in accordance with the laws of the State of Minnesota. 16. Merger Not Intended. Common ownership of Lot 1 and Lot 2, or any portions thereof, shall not cause this Declaration to be extinguished by operation of inerger. 17. Miscellaneous. The Declarant represents that it has the full authority necessary to enter into this Declaration and comply with the terms and conditions hereo£ The terms of this Declaration shall be binding upon the parties hereto, their heirs, successors, representatives and permitted assigns. The parties hereto hereby submit to the exclusive jurisdiction of the federal and state courts located in Hennepin County, Minnesota in connection with any matters arising out of this Declaration and hereby waive any objection to the propriety or convenience of venue in such courts. � IN WITNESS WHEREOF, the Declarant has executed this Declaration of Parking and Access Easements effective as of the Effective Date set forth above. DECLARANT: CHDC HOPKINS LIMITED PARTNERSHIl', a Minnesota limited parmership By: Community Housing Development Corporation Its: General Partner : STATE OF MINNESOTA ) ) ss. COUNTY OF ) Elizabeth Flannery Its President The foregoing instrument was acknowledged before me this day of , 2016, by Elizabeth Flannery, the President of Community Housing Development Corporation, a Minnesota nonprofit corporation, the general partner of CHDC Hopkins Limited Partnership, a Minnesota limited parmership, on behalf of the parmership. Notary Public THIS INSTRUMENT WAS DRAFTED BY: WINTHROP & WEINSTINE, P.A. Suite 3500 225 South Sixth Street Minneapolis, MN 55402 (612) 604-6400 11337366v2