HomeMy WebLinkAboutItem 06.iJune 2, 2011
JUNE 6, 2011 CITY COUNCIL MEETING
SITE IMPROVEMENT PERFORMANCE AGREEMENT
Item No.
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Site
Improvement Performance Agreement (SIPA) between the City of Lakeville and
Stonehenge USA.
Adoption of this motion will approve the SIPA associated with the administrative
subdivision, site plan, parking deferment and easement vacation for a proposed Goodwill
retail store located on Kenrick Avenue west of Kenwood Trail (CSAH 50).
Overview
The City Council approved the vacation of public drainage and utility easements at their
May 16, 2011 meeting. The administrative permit, site plan and parking deferment can be
approved administratively. The City Council was informed of the forthcoming SIPA
agreement at the time the City Council was asked to approve the vacation of easements at
their May 16, 2011 meeting.
Primary Issues to Consider
What is the purpose of the SIPA? The SIPA is a development contract that describes the
responsibilities and pen`ormance requirements of the developer including security and cash
payments related to the proposed development.
Supporting Information
• Signed Site Improvement Performance Agreement
• Site plan
Frank Dempsey, AI CP , Ass aci'
ate Planner
Financial Impact: $ None Budgeted: Y/N N/A Source:
Related Documents (CIP, ERP, etc.): Zoning Ordinance
Notes:
(reserved for recording information)
SITE IMPROVEMENT PERFORMANCE
AGREEMENT
STONEHENGE USA
(GooDWILL)
AGREEMENT dated , 2011, by and between the CITY OF
LAKEVILLE, a Minnesota municipal corporation ( "City"), MINNESOTA TILE - LAKEVILLE, LLC, a
Minnesota limited liability company ( "Developer ").
1. BACKGROUND.
A. The Developer owns property located at 17615 Kenrick Avenue in the City of
Lakeville, Minnesota, legally described as Lots 5 and 6, Block 1, ARGONNE PARK, Dakota County,
Minnesota (hereinafter referred to as "Subject Property ").
B. The Developer has submitted an application for administrative subdivision of the
Subject Property to relocate the common property line between Lots 5 and 6 approximately 34.31 feet
and to create two parcels as described and depicted on the attached Exhibit "A ", each to be assigned a
separate parcel identification number. Parcel A contains the existing building owned and operated by
the Developer. The Developer proposed to partner with Goodwill to construct a 20,600 square foot retail
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building on Parcel B. The building will include a designated drop -off lane along the west side of the
building, a loading dock at the rear of the building, and a parking lot along the front of the building.
C. The Developer has submitted a site plan application for construction of the
Goodwill retail store, a parking deferment application to defer four (4) of the required thirty -seven (37)
parking spaces on Parcel A, and an application for vacation of the existing drainage /utility easement
adjoining the existing property line common to Lots 5 and 6. The site plan includes the dedication of new
drainage /utility easements to the City.
2. CONDITIONS OF APPROVAL. Conditions of approval of the requested administrative
subdivision of the Subject Property require City approval of the site plan application, the parking
deferment application, the vacation application, and the new drainage /utility easement. This Agreement
is a condition of administrative subdivision and site plan approval and requires that each of the newly
created parcels be assigned a separate parcel identification number. This Agreement will be recorded
against both Parcel A and Parcel B.
3. RIGHT TO PROCEED. Within the administrative subdivision site, the Developer may not
grade or otherwise disturb the earth, remove trees, construct sewer lines, water lines, streets, utilities,
public or private improvements, or any buildings until all the following conditions have been satisfied: 1) this
agreement has been fully executed by both parties and filed with the City Clerk, 2) the necessary security
has been received by the City, and 3) the administrative subdivision and this Agreement have been filed
with the Dakota County Recorder's Office.
4. PLANS. The Subject Property shall be developed in accordance with the following plans.
The plans shall not be attached to this Agreement. If the plans vary from the written terms of this
Agreement, the written terms shall control. The plans are:
Plan A — Administrative Subdivision Site Plan
Plan B — Site Plan
Plan C — Grading Plan
Plan D — Erosion and Sediment Control Plan
Plan E — Utility Plan
Plan F — Lighting Plan
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Plan G — Landscape Plan
5. CONSTRUCTION ACCESS. Construction access and egress for grading, utility, street
and building construction is restricted to Kenrick Avenue via Kenwood Trail (CSAH -50).
6. GRADING. The grading specifications must indicate that all embankments meet
FHA/HUD 79G specifications. The Developer shall certify to the City that all buildings with footings
placed on fill material are appropriately constructed. Building permits shall not be issued until a building
pad certification survey has been submitted and approved by City staff. A final Certificate of Occupancy
shall not be issued until an as -built certified grading plan has been submitted and approved by City staff.
A National Pollution Discharge Elimination System General Stormwater Permit for construction
activity is required by the Minnesota Pollution Control Agency for areas exceeding one acre being
disturbed by grading. A copy of the Notice of Stormwater Permit Coverage must be submitted to the City
upon receipt from the MPCA.
7. EROSION CONTROL. An erosion control plan has been submitted and includes the
following:
• A single rock construction entrance.
• A seed and mulch specification that meets City requirements.
• Inlet protection on all storm sewer structures.
• Silt fence to protect offsite areas from sediment transport.
• All 3:1 slopes, including stormwater and filtration basin slopes, and swales that discharge off -
site must be seeded and stabilized with erosion control /fiber blankets or sod.
• A floating silt curtain must be installed during stormwater basin construction. Any dewatering
must be coordinated with the City's Environmental Resources staff.
• The site will be re- vegetated within 48 hours of rough and final grading.
• All streets must be maintained and cleared of debris at the end of each day during
construction to provide safe driving conditions. Street sweeping shall be done weekly or more
often (i.e. during the hauling process) as needed.
A concrete washout area must be identified in the field and constructed per the City's Standard
Specifications. Erosion control blankets must be installed on all stormwater /filtration basin slopes that
are disturbed during construction. Silt fence or sod (36" minimum width) must be installed behind the
curb following the installation of the private utilities. The Developer must install and maintain any
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additional erosion control measures deemed necessary during construction by City or Dakota County
Soil and Water District staff.
8. SANITARY SEWER AND WATERMAIN. The existing Minnesota Tile building on
Parcel A is connected to public sanitary sewer and water. 6 -inch sanitary sewer and 8 -inch watermain will
be extended from public sanitary sewer and watermain located within Kenrick Avenue to provide service to
the Goodwill building on Parcel B. The sanitary sewer and water service will be privately owned and
maintained by the owner of Parcel B. Due to the new lot configuration, an existing sanitary sewer and
water service will not be utilized and will be permanently abandoned in accordance with the City's
construction standards. Final locations and sizes of all sanitary sewer and watermain facilities must be
reviewed by City staff with the final building permit plans. In association with MnOPS requirements, utility
hook -ups for the Goodwill building are not permitted until the as -built electronic files have been submitted
and approved by City staff.
9. STORM SEWER. The administrative subdivision includes private storm sewer
construction. The existing and proposed storm sewer within Parcel A and the proposed storm sewer within
Parcel B will convey stormwater runoff generated from within the site through the stormwater management
systems. The storm sewer will be privately -owned and maintained by the respective owners of Parcel A
and Parcel B.
10. STORMWATER AND FILTRATION BASINS. The administrative subdivision includes
the reconstruction of the existing on -site stormwater basin. The basin will be reconstructed to provide
pretreatment, skimming and rate control for the additional impervious area created by the shared drive
aisle and parking area. The Developer is establishing and granting the City a permanent public drainage
and utility easement across the reconstructed stormwater basin, as shown on the plans. The stormwater
basin, including storm sewer facilities, will be privately -owned and maintained by the owner of Parcel A.
The administrative subdivision also includes the construction of two stormwater basins and a
filtration basin. The basins will be will be located along the west and north property lines of Parcel B and
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will provide pretreatment, skimming and rate control of the stormwater runoff generated within the
Goodwill site (Parcel B). The Developer is establishing and granting to the City permanent public
drainage and utility easements across the stormwater and filtration basins, as shown on the plans. The
stormwater and filtration basins, including storm sewer facilities, will be privately -owned and maintained
by the owner of Parcel B.
11. RETAINING WALLS. The administrative subdivision includes the construction of a
retaining wall. The grading plan indicates the retaining wall will be located at the northwest corner of the
Goodwill building, near the drop -off area canopy, and a proposed maximum height of 2.5 feet. All
modular block walls constructed must meet Mn /DOT requirements. Any modular block walls greater
than four feet in height must be designed by a registered engineer and require a separate building permit
from the City's Building Inspection Department. The retaining wall will be privately -owned and
maintained by the owner of Parcel B.
12. LANDSCAPING. Landscaping shall be installed in accordance with the approved
landscape plan. Before the City approves the administrative subdivision, the Developer must post a
$12,000.00 security to guarantee installation of the approved landscaping.
13. WETLANDS. The delineation for the site was conducted on March 25, 2011 and April
12, 2011 by MFRA, Inc. and field verified by City staff on April 27, 2011. Two areas were delineated
within the project site.
MFRA, Inc. submitted a replacement plan on April 18, 2011. The replacement plan indicates
0.076 acres of wetland impact. The plan provides detailed information of the site alternatives and
options to avoid wetland impacts. The plan proposes to purchase 2:1 replacement (0.149 acres) via the
Bachman wetland bank located in the same watershed. The delineation and wetland replacement plan
were approved on May 23, 2011.
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No wetland impacts shall occur and no building permits shall be issued until all Wetland
Conservation Act requirements have been completed and the City has received confirmation from BWSR
that the required credits have been officially withdrawn from the wetland bank.
14. SPECIAL CONDITIONS. Approval of the administrative subdivision and site plan is
subject to the following conditions:
• The Developer shall provide the City with a permanent drainage and utility easement, in
recordable form, dedicating a new easement along the shared side lot line between
Parcels A and B as required by City subdivision ordinance, additional boundary
easements, and over the stormwater and filtration basin areas.
• The Developer shall enter into a parking deferment agreement with the City for
deferment of four (4) of the required thirty -seven (37) parking spaces on Parcel A.
• The Developer shall establish and record a shared access easement between Parcel
A and Parcel B.
• The City's Subdivision Ordinance and the City's Parks, Trails and Open Space Plan
require 8 -foot wide concrete sidewalks along streets within or adjacent to commercial
areas. The Developer must grade the boulevard within the Kenrick Avenue right -of-
way and provide the City a cash escrow of $6,480.00 for the future construction of the
concrete sidewalk between the Minneapolis Northfield & Southern Railroad and
Juniper Path. The concrete sidewalk will be installed when extension of Kenrick
Avenue between 181 Street and the Minneapolis Northfield & Southern Railroad is
constructed.
• The site must be developed in accordance with the plans approved by the City.
• The Developer must obtain a sign permit from the City prior to installation of any
signage in the development.
• Prior to approval of the administrative subdivision, the Developer shall furnish a
boundary survey of the property being administratively subdivided with all property
corner monumentation in place and marked with lath and a flag. Any encroachments on
or adjacent to the property shall be noted on the survey. The Developer shall post a
$200.00 security for the final placement of interior subdivision iron monuments at
property corners. The security was calculated as follows: 2 lots or parcels at $100.00
per lot/parcel. The security will be held by the City until the Developer's land surveyor
certifies that all irons have been set following site grading and utility and street
construction. In addition, the certificate of survey must also include a certification that all
irons for a specific lot or parcel have either been found or set prior to the issuance of a
building permit for that lot or parcel.
• The Developer shall pay a cash fee for the preparation of record construction drawings
and City base map updating at the time of administrative subdivision approval. This fee
is calculated as follows: 2 lots /parcels x $75.00/lot or parcel = $150.00.
• The Developer shall be responsible for the cost of street light installation consistent with
a street lighting plan approved by the City. Before the City approves the administrative
subdivision, the Developer shall post a security for street light installation consistent with
the approved plan. The estimated amount of this security is $1,200.00 and consists of
one mast -arm streetlight.
• The on -site signage and pavement markings associated with this administrative
subdivision will be privately owned and maintained by the Developer. Before the City
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approves the administrative subdivision, the Developer must post a $2,500.00 security
to ensure that all signs and pavement markings are installed. A final certificate of
occupancy will not be issued until the signs and pavement markings are installed.
• The Developer is required to submit the administrative subdivision in an electronic
format. The electronic format shall be either a .dwg file (AutoCAD) or a .dxf. All
construction record plans (e.g., grading, utilities, streets) shall be in electronic format in
accordance with standard City specifications. The Developer shall also submit one
complete set of reproducible construction record plans on Mylar.
15. SUMMARY OF SECURITY REQUIREMENTS. To guarantee compliance with the
terms of this agreement, payment of real estate taxes including interest and penalties, payment of special
assessments, payment of the costs of all public and private improvements, and construction of all public
and private improvements, the Developer shall furnish the City with a letter of credit, in the form attached
hereto, from a bank ( "security ") for $65,457.25, plus a cash fee of $1,219.50 for City engineering
administration. The amount of the security was calculated as follows:
CONSTRUCTION COSTS:
Sanitary Sewer Connection $ 1,000.00
Watermain Connection 3,500.00
Work Within Kenrick Avenue Right -of -way 5,100.00
Site Grading /Erosion Control /Restoration/
Stormwater Basins /Grading Certification 31,050.00
CONSTRUCTION SUB -TOTAL $ 40,650.00
OTHER COSTS:
Developer's Design (6.0 %) $ 2,439.00
Developer's Construction Survey (2.5 %) 1,016.25
City Legal Expenses (Est. 0.5 %) 203.25
City Construction Observation (Est. 7.0 %) 2,845.50
Developer's Record Drawings (0.5 %) 203.25
Retaining Walls 2,200.00
On -site Private Signs & Pavement Markings 2,500.00
Landscaping 12,000.00
Street Lights 1,200.00
Lot Corners /Iron Monuments 200.00
OTHER COSTS SUB -TOTAL $ 24,807.25
TOTAL PROJECT SECURITIES: $ 65,457.25
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This breakdown is for historical reference; it is not a restriction on the use of the security. The bank shall be
subject to the approval of the City Administrator. The City may draw down the security, without notice, for
any violation of the terms of this Agreement or if the security is allowed to lapse prior to the end of the
required term. If the required public improvements are not completed at least thirty (30) days prior to the
expiration of the security, the City may also draw it down. If the security is drawn down, the proceeds shall
be used to cure the default. Upon receipt of proof satisfactory to the City that work has been completed and
financial obligations to the City have been satisfied, with City approval the security may be reduced from
time to time by ninety percent (90 %) of the financial obligations that have been satisfied. Ten percent
(10 %) of the amounts certified by the Developer's engineer shall be retained as security until all
improvements have been completed, all financial obligations to the City satisfied, the required "as
constructed" plans have been received by the City, a warranty security is provided, and the public
improvements are accepted by the City Council. The City's standard specifications for utility and street
construction outline procedures for security reductions.
16. SUMMARY OF CASH REQUIREMENTS. The following is a summary of the cash
requirements under this Agreement which must be furnished to the City at the time of administrative
subdivision approval:
Future Sidewalk Along Kenrick Avenue
City Base Map Updating
City Engineering Administration (3 %)
$ 6,480.00
150.00
1,219.50
TOTAL CASH REQUIREMENTS $ 7,849.50
17. LICENSE. The Developer hereby grants the City, its agents, employees, officers and
contractors a license to enter the Subject Property to perform all work and inspections deemed appropriate
by the City in conjunction with site development.
18. RESPONSIBILITY FOR COSTS.
A. The Developer shall pay all costs incurred by it or the City in conjunction with the
development of the site, including but not limited to legal, planning, engineering and inspection expenses
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incurred in connection with approval of the site plan, the preparation of this Agreement, review of any other
plans and documents.
B. The Developer shall hold the City and its officers, employees, and agents harmless
from claims made by itself and third parties for damages sustained or costs incurred resulting from site
approval and development. The Developer shall indemnify the City and its officers, employees, and agents
for all costs, damages, or expenses which the City may pay or incur in consequence of such claims,
including attorneys' fees.
C. The Developer shall reimburse the City for costs incurred in the enforcement of this
Agreement, including engineering and attorneys' fees.
D. The Developer shall pay in full all bills submitted to it by the City for obligations
incurred under this Agreement within thirty (30) days after receipt. Bills not paid within thirty (30) days shall
accrue interest at the rate of eight percent (8 %) per year.
19. MISCELLANEOUS.
A. Third parties shall have no recourse against the City under this Agreement.
B. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this
Agreement is for any reason held invalid, such decision shall not affect the validity of the remaining portion
of this Agreement.
C. The action or inaction of the City shall not constitute a waiver or amendment to the
provisions of this Agreement. To be binding, amendments or waivers shall be in writing, signed by the
parties and approved by written resolution of the City Council. The City's failure to promptly take legal
action to enforce this Agreement shall not be a waiver or release.
D. This Agreement shall run with the land and may be recorded against the title to the
Subject Property. The Developer covenants with the City, its successors and assigns, that the Developer
has fee title to the Subject Property and /or has obtained consents to this Agreement, in the form attached
hereto, from all parties who have an interest in the property; that there are no unrecorded interests in the
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property; and that the Developer will indemnify and hold the City harmless for any breach of the foregoing
covenants.
E. Each right, power or remedy herein conferred upon the City is cumulative and in
addition to every other right, power or remedy, express or implied, now or hereafter arising, available to
City, at law or in equity, or under any other agreement, and each and every right, power and remedy herein
set forth or otherwise so existing may be exercised from time to time as often and in such order as may be
deemed expedient by the City and shall not be a waiver of the right to exercise at any time thereafter any
other right, power or remedy.
F. Breach of the terms of this Agreement by the Developer, including nonpayment of
billings from the City, shall be grounds for denial of building permits and certificates of occupancy, and the
halting of all work on the property.
G. The Developer represents to the City that the development complies with all city,
county, metropolitan, state, and federal laws and regulations, including but not limited to: subdivision
ordinances, zoning ordinances, and environmental regulations. If the City determines that the development
does not comply, the City may, at its option, refuse to allow construction or development work in the
development until the Developer does comply. Upon the City's demand, the Developer shall cease work
until there is compliance.
H. The Developer may assign its rights and obligations under this Agreement to DPS-
Lakeville GW, LLC ( "Successor Developer") if the Successor Developer becomes the fee owner of the
Subject Property. The Developer must provide the City prompt written notice of the assignment.
I. Upon satisfactory completion of all the Developer's obligations under this
Agreement, the City will, upon request, release the Developer and the Subject Property from the
obligations of this Agreement.
20. DEVELOPER'S DEFAULT. In the event of default by the Developer as to any of the
work to be performed by it hereunder, the City may, at its option, perform the work and the Developer shall
promptly reimburse the City for any expense incurred by the City, provided the Developer, except in an
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emergency as determined by the City, is first given notice of the work in default, not less than forty -eight
(48) hours in advance. This Agreement is a license for the City to act, and it shall not be necessary for the
City to seek a Court order for permission to enter the land. When the City does any such work, the City
may, in addition to its other remedies, assess the cost in whole or in part.
21. NOTICES. Required notices to the Developer shall be in writing, and shall be either hand
delivered to the Developer, its employees or agents, or mailed to the Developer by certified mail at the
following address: 18258 Minnetonka Boulevard, Suite 100, Deephaven, Minnesota 55391. Notices to the
City shall be in writing and shall be either hand delivered to the City Administrator, or mailed to the City by
certified mail in care of the City Administrator at the following address: Lakeville City Hall, 20195 Holyoke
Avenue, Lakeville, Minnesota 55044.
(SEAL)
STATE OF MINNESOTA )
( ss.
COUNTY OF DAKOTA )
CITY OF LAKEVILLE
BY:
AND
Mark Bellows, Mayor
Charlene Friedges, City Clerk
The foregoing instrument was acknowledged before me this day of ,
2011, by Mark Bellows and by Charlene Friedges, respectively the Mayor and City Clerk of the City of
Lakeville, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority
granted by its City Council.
NOTARY PUBLIC
157763v03 11 LKVL:STONEHENGE USA (Goodwill)
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STATE OF MINNESOTA
COUNTY OF //e1/40
( s s.
The fore instrument was acknowledged
2011, by / cf/z T iA /c. the
Tile- Lakeville, LL , a Minnesota limited liability com
DRAFTED BY:
CAMPBELL, KNUTSON
Professional Association
1380 Corporate Center Curve, Suite #317
Eagan, MN 55121
Telephone: (651) 452 -5000
SRN:ms
DEVELOPER:
MINNESOTA TILE - LAKEVILLE, LLC
BY:
Its
before m this a /i day of
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NOTARY 'IBC`
1 JAMES R OTTENSTEIN
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MINNESOTA
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157763v03 12 LKVL: STONEHENGE USA (Goodwill)
SRN:r05 /31/2011
Admin.Subd — 17615 Kenrick Avenue
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EXHIBIT A
VENTURE BANK, which holds a mortgage on all or part of the property subject to the foregoing
Site Improvement Performance Agreement, agrees that the Agreement shall remain in full force and effect
even if it forecloses on its mortgage.
Dated this day of , 2011.
STATE OF MINNESOTA
COUNTY OF
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, Minnesota 55121
(651) 452 -5000
SRN:ms
MORTGAGE CONSENT
TO
SITE IMPROVEMENT PERFORMANCE AGREEMENT
( ss.
VENTURE BANK
BY:
Its
The foregoing instrument was acknowledged before me this day of
2011, by the
of Venture Bank, on behalf of the bank.
NOTARY PUBLIC
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SRN:r05 /31/2011 Admin.Subd —17615 Kenrick Avenue
MORTGAGE CONSENT
TO
SITE IMPROVEMENT PERFORMANCE AGREEMENT
ALAN J. DALE, an individual, who holds a mortgage on all or part of the property subject to the
foregoing Site Improvement Performance Agreement, agrees that the Agreement shall remain in full force
and effect even if he forecloses on his mortgage.
Dated this day of , 2011.
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
2011, by ALAN J. DALE, an individual, as Mortgagee.
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, Minnesota 55121
(651) 452 -5000
SRN:ms
BY:
ALAN J. DALE, an individual
NOTARY PUBLIC
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Dated this day of , 2011.
WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, which holds
a mortgage on all or part of the property subject to the foregoing Site Improvement Performance
Agreement, agrees that the Agreement shall remain in full force and effect even if it forecloses on its
mortgage.
MORTGAGE CONSENT
TO
SITE IMPROVEMENT PERFORMANCE AGREEMENT
STATE OF MINNESOTA )
( ss.
COUNTY OF
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, Minnesota 55121
(651) 452-5000
SRN:ms
WELLS FARGO BANK,
NATIONAL ASSOCIATION
BY:
Its
The foregoing instrument was acknowledged before me this day of
2011, by the
of Wells Fargo Bank, National Association, a national banking association, on behalf of the bank.
NOTARY PUBLIC
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