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HomeMy WebLinkAboutPlanning Commission Packet 12-16-2015PLANNING COMMISSION AGENDA WEDNESDAY, December 16, 2015 WHERE: CITY COUNCIL CHAMBERS Plymouth City Hall 3400 Plymouth Boulevard Plymouth, MN 55447 CONSENT AGENDA All items listed on the consent agenda are considered to be routine by the Planning Commission and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner, citizen or petitioner so requests, in which event the item will be removed from the consent agenda and considered in normal sequence on the agenda. 1. CALL TO ORDER - 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 111:3 A W2181"IJ,T,I 4. APPROVAL OF AGENDA 5. CONSENT AGENDA A. Approve the December 2, 2015 Planning Commission meeting minutes. 6. PUBLIC HEARINGS A. Carlson Real Estate Services, LLC. Conditional use permit to exceed 50 percent office in the 1-2 zoning district for property located at 161 Cheshire Lane. (2015104) 7. NEW BUSINESS 8. ADJOURNMENT 5.4 Draft Minutes City of Plymouth Planning Commission Meeting December 2, 2015 MEMBERS PRESENT: Chair James Davis, Commissioners Marc Anderson, Julie Witt, Bryan Oakley, Gary Goldetsky, Donovan Saba MEMBERS ABSENT: Jim Kovach STAFF PRESENT: Planning Manager Barbara Thomson, Senior Planner Marie Darling OTHERS PRESENT: Councilmember Ned Carroll 1. CALL TO ORDER - 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. PUBLIC FORUM 4. APPROVAL OF AGENDA MOTION by Commissioner Goldetsky, seconded by Commissioner Anderson, to approve the December 2, 2015 Planning Commission Agenda. Vote. 6 Ayes. MOTION approved. 5. CONSENT AGENDA A. APPROVAL OF THE NOVEMBER 4, 2015 PLANNING COMMISSION MEETING MINUTES B. JOHN MOHS. (2015091) Approve a variance to the side yard setback to allow a garage addition at 1240 County Road 101. C. BRAD AND DEB MIDDENDORF. (2015097) Approve variances for a detached garage over 700 square feet in area and exceeding 15 feet in height for property located at 3030 County Road 101. MOTION by Commissioner Oakley, seconded by Commissioner Saba, to approve the consent agenda. Vote. 6 Ayes. MOTION approved. 6. PUBLIC HEARINGS A. SOUTHSHORE, LLC. (2015098) Planning Commission Minutes December 2, 2015 Page 2 Chair Davis introduced the request by Southshore, LLC for a preliminary plat and impervious surface coverage variance for "Southshore Addition" located at 9905 13"' Avenue. Senior Planner Darling gave an overview of the staff report. Commissioner Anderson asked if the Minnesota Department of Natural Resources (DNR) had reviewed the impervious surface variance. Senior PIanner Darling responded that the ordinance and state rules require that the city forward such a request to the DNR for comment. She noted that the DNR does not have to comment and in this case, did not, Senior Planner Darling confirmed that no comment means the DNR does not have any concerns about the request. Chair Davis introduced Paul Gonyea, representing the applicant, who stated that he owns the two buildings on the site with his brother, Dave Gonyea. He stated financing and estate planning are the chief reasons for the plat. He also noted it would be easier to have each building on its own lot if someone wanted to buy one of the buildings in the future. He did state that he is a Iong term holder of industrial properties and emphasized his intent to hold this property over the long term. Chair Davis opened the public hearing and closed the public hearing as there was no one present to speak on the item. MOTION by Commissioner Anderson, seconded by Commissioner Goldetsky, to recommend approval of the request by Southshore, LLC for a preliminary plat and impervious surface coverage variance for "Southshore Addition" located at 9905 13`x' Avenue, Vote. 6 Ayes. MOTION approved. 7. NEW BUSINESS S. ADJOURNMENT MOTION by Chair Davis, with no objection, to adjourn the meeting at 7:14 P.M. Agenda Number File 2015104 • PLYMOUTH COMMUNITY DEVELOPMENT DEPARTMENT PLANNING AND ZONING STAFF REPORT TO: Plymouth Planning Commission FROM: Kip Berglund, Planner (504-5453) through Barbara Thomson, Manager MEETING DATE: December 16, 2015 APPLICANT: Carlson Real Estate Services, LLC PROPOSAL: Conditional use permit to exceed 50 percent office in the 1-2 zoning district LOCATION: 161 Cheshire Lane North GUIDING: IP (Planned Industrial) ZONING: I-2 (General Industrial) REVIEW DEADLINE: March 16, 2016 DESCRIPTION OF REQUEST: The applicant is requesting a conditional use permit to exceed 50 percent office use in the I-2 zoning district. A conditional use permit is required for buildings with more than 50 percent office space in the industrial districts. Under the plan, up to 60 percent of the building could be used for office space. Notice of the public hearing was published in the city's official newspaper and mailed to all property owners within 500 feet of the site. A copy of the notification area map is attached. Development signage has been placed on site. File 2015104 Page 2 CONTEXT: Surrounding Land Use and Zoning Previous Actions Affecting Site In 1996, the City Council approved a land use guide plan amendment, rezoning, preliminary plat, final plat and site plan to allow the construction of eight multi -tenant office/warehouse buildings consisting of 322,176 square feet. The subject property is an office/warehouse building consisting of 71,414 square feet. In 2013, the City Council approved a conditional use permit to allow up to 55 percent office. LEVEL OF CITY DISCRETION IN DECISION-MAKING: The city's discretion in approving or denying a conditional use permit is limited to whether or not the proposal meets the standards listed in the zoning ordinance. If it meets the specified standards, the city must approve the permit. However, the level of discretion is affected by the fact that some of these standards are open to interpretation. ANALYSIS: A conditional use permit is required for buildings in the industrial districts that have more than 50 percent office space. In 2013, the subject property received a CUP approval to allow up to 55 percent office space. The applicant states the proposal would allow for tenant flexibility to increase or decrease their office space based on changing economic and market driven needs. The applicant is requesting approval of a conditional use permit to allow up to 60 percent of the building to be used as office space. The building contains 71,414 square feet comprised of office, warehouse, pro du ctionlmanufacturing, laboratory, training, fitness and mechanical/electrical rooms. Under the proposal, office space could increase to 42,848 square feet, or 60 percent of the building. The remaining area of the building would be used as is currently mentioned above. There are no physical changes proposed to the site plan. All changes to convert existing warehouse space to office space would happen internal to the building upon issuance of a building permit. Parking is generally the main item that needs to be reviewed for this type of application. Based on the size and proposed uses within the building, the ordinance would require 189 parking spaces. The required number is based on 42,848 square feet of office requiring 154 spaces, Adjacent Land-Ylse Guiding'. _ Zonin North, West and Industrial Uses PI I-2 Sso East/Northeast Industrial Uses/ Twin PI/LA-2 I- I /RSF-4 Horner Previous Actions Affecting Site In 1996, the City Council approved a land use guide plan amendment, rezoning, preliminary plat, final plat and site plan to allow the construction of eight multi -tenant office/warehouse buildings consisting of 322,176 square feet. The subject property is an office/warehouse building consisting of 71,414 square feet. In 2013, the City Council approved a conditional use permit to allow up to 55 percent office. LEVEL OF CITY DISCRETION IN DECISION-MAKING: The city's discretion in approving or denying a conditional use permit is limited to whether or not the proposal meets the standards listed in the zoning ordinance. If it meets the specified standards, the city must approve the permit. However, the level of discretion is affected by the fact that some of these standards are open to interpretation. ANALYSIS: A conditional use permit is required for buildings in the industrial districts that have more than 50 percent office space. In 2013, the subject property received a CUP approval to allow up to 55 percent office space. The applicant states the proposal would allow for tenant flexibility to increase or decrease their office space based on changing economic and market driven needs. The applicant is requesting approval of a conditional use permit to allow up to 60 percent of the building to be used as office space. The building contains 71,414 square feet comprised of office, warehouse, pro du ctionlmanufacturing, laboratory, training, fitness and mechanical/electrical rooms. Under the proposal, office space could increase to 42,848 square feet, or 60 percent of the building. The remaining area of the building would be used as is currently mentioned above. There are no physical changes proposed to the site plan. All changes to convert existing warehouse space to office space would happen internal to the building upon issuance of a building permit. Parking is generally the main item that needs to be reviewed for this type of application. Based on the size and proposed uses within the building, the ordinance would require 189 parking spaces. The required number is based on 42,848 square feet of office requiring 154 spaces, File 2015104 Page 3 14,756 square feet of warehouse requiring 7 spaces, 4,554 square feet of laboratory requiring 12 spaces and 6,187 square feet of production/manufacturing requiring 16 spaces. The subject property contains 171 parking spaces. The applicant has also provided a recorded perpetual easement for parking purposes with the property to the south at 141 Cheshire Lane for the use of an additional 52 parking stalls for a total of 223 parking stalls. Consequently, the proposal meets the zoning ordinance requirements for parking. The applicant has provided a breakdown of the uses within the building for the property to the south. The building consists of office and warehouse space and requires 82 stalls per the zoning ordinance requirements. There are 111 parking stalls on site in addition to the above mentioned 52 shared parking stalls. The Planning Commission must review the requested conditional use permit for compliance with the standards listed in the zoning ordinance. A copy of the standards is attached. Staff used these standards to review the request and finds it would meet the applicable standards. Specifically, the proposed use would conform to the comprehensive pian, would not have any affect on public improvements in the area, would not impede the orderly development of the district, nor would it be detrimental to the surrounding properties or the city as a whole. RECOMMENDATION: Community Development Department staff recommends approval of the conditional use permit to allow up to 60 percent office use for property located at 161 Cheshire Lane, subject to the conditions listed in the attached resolution. If new information is brought forward at the public hearing, staff may alter or reconsider its recommendation. ATTACHMENTS: I . Draft Resolution Approving Conditional Use Permit 2. Location Map 3. Aerial Photo 4. Notification Area Map 5. Conditional Use Permit Standards 6. Applicant's Narrative 7. Parking Easement 8. Site Graphics PAPlanning Applications1201512015104TC report (12-16-2015) CITY OF PLYMOUTH RESOLUTION N0. 2015- A RESOLUTION APPROVING A CONDITIONAL USE PERMIT TO EXCEED 50 PERCENT OFFICE USE IN THE 1-2 (GENERAL INDUSTRIAL) ZONING DISTRICT FOR PROPERTY LOCATED AT 161 CHESHIRE LANE NORTH (2015104) WHEREAS, Carlson Real Estate Services, LLC has requested approval of a conditional use permit for the site located at 161 Cheshire Lane North, legally described as follows: Lot 2, Block 1, Carlson Business Center North, Hennepin County, Minnesota; and WHEREAS, the Planning Commission has reviewed said request at a duly called public hearing and recommends approval, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH, MINNESOTA, that it should and hereby does approve the request by Carlson Real Estate Services, LLC for a conditional use permit to exceed 50 percent office use in the existing office/warehouse building located at 161 Cheshire Lane North, subject to the following conditions: 1. The requested conditional use permit is approved to allow up to 60 percent of the building to be used for office use, in accordance with the application and plans received by the city on November 17, 2015 and additional information on November 20, 2015, except as amended by this resolution. 2. The requested conditional use permit is approved with the finding that the applicable conditional use permit standards would be met. 3. The parking easement for 52 spaces in favor of 161 Cheshire Lane from the property to the south at 3.41. Cheshire Lane shall remain in perpetuity as indicated on the recorded parking easement dated August 2, 2013. 4. Prior to construction of tenant improvements in the building, the applicant must obtain separate approval of a building permit. 5. Standard Conditions: a. All parking shall be off-street in designated areas which comply with the zoning ordinance. b. Any subsequent phases or expansions are subject to required reviews and approvals per ordinance provisions. c. The conditional use permit shall expire one year after the date of approval, unless the property owner or applicant has started the project, or unless the applicant, with the consent of the property owner, has received prior approval from the city to extend the expiration date for up to one additional year, as regulated under section 21015.07 of the zoning ordinance. Resolution 2015 - File 2015104 Page 2 ADOPTED by the City Council on *******. STATE OF MINNESOTA} COUNTY OF HENNEPIN) SS The undersigned, being the duly qualified and appointed City Clerk of the City of Plymouth, Minnesota, certifies that I compared the foregoing resolution adopted at a meeting of the Plymouth City Council on with the original thereof on file in my office, and the same is a correct transcription thereof. WITNESS my hand officially as such City Clerk and the Corporate seal of the City this day of City Clerk 2015104 Legend Carlson Real Estate Services, LLC ® C. IityCial L_LJ CC,.cCity Centor 767 Cheshire Lane Go, C.mmer.ia,Offi.e 1P, Planned Industrial Request for a Conditional Use Permit 0 LA -t, Living Area 1 LA -2, Living Area 2 LA -3, Living Area 3 LA 4, Living Area 4 250 125 0 250 500 LA-R1 LA-R2 Feet ] LA -R3 City of 0 LA -RT Plymouth, Minnesota V1/'j P -I, Publi./Semi-Publicllnstitutional 2015704 - Aerial Photograph 125 62.5 0 i25 250 Feet city of Plymouth, Minnesota Hennepin County Locate & Notify Map Provided By: Resident and Real Estate Services Department Date: 11/9/2015 Buffer Size: 500 feet 0 120 240 480 ft Map Comments: I r I I I I I I 3411822330010 For more information contact: Hennepin County GIS Division 300 6th Street South Minneapolis, NEN 55487 gis.info@hennepin.us ZONING ORDINANCE CONDITIONAL USE PERMIT STANDARDS 21015.02 PROCEDURE: Pursuant to Minnesota Statutes 15.99, an application for a conditional use permit shall be approved or denied within sixty(60) days from the date of its official and complete submission unless extended pursuant to Statute or a time waiver is granted by the applicant. If applicable, processing of the application through required state or federal agencies shall extend the review and decision-making period an additional sixty (60) days unless this limitation is waived by the applicant. Subd.5. The Planning Commission shall consider possible adverse effects of the proposed conditional use. Its judgment shall be based upon (but not limited to) the following factors: 1. Compliance with and effect upon the Comprehensive Plan, including public facilities and capital improvement plans. 2. The establishment, maintenance or operation of the conditional use will promote and enhance the general public welfare and will not be detrimental to or endanger the public health, safety, morals, or comfort. 3. The conditional use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purpose already permitted, nor substantially diminish and impair property values within the neighborhood. 4. The establishment of the conditional use will not impede the normal and orderly development and improvement of surrounding property for uses permitted in the district. 5. Adequate public facilities and services are available or can be reasonably provided to accommodate the use which is proposed. 6. The conditional use shall, in all other respects, conform to the applicable regulations of the district in which it is located. The conditional use complies with the general and speciCc performance standards as specified by this Section and this Chapter. Section 21015-PIymouth Zoning Ordinance forms/cupsta) MOV 1 7 CITY of Zor j10LI This Conditional Use Permit application for the property at 161 Cheshire Lane is a request for an increase in the allowable percentage of office use within an 1-2 General Industrial zoning district from 50% to 60%, as permitted in Zoning Code Section 21565.07, Subdivision 13. In 2013, we received a Conditional Use Permit (CUP) for this property to allow office use up to 55% to accommodate growth required by a tenant named SuperDimensions (also known as Medtronic). SuperDimensions did not proceed with their construction plans and the CUP has now expired. SuperDimensions is now expanding into an additional 6,514 5F at the building and is hoping to start construction to accommodate their growth. This submittal package includes plans to show the existing building conditions and the proposed build -out. The existing uses within this facility conform to the permitted uses under Section 21565.03 of the Zoning Code, and no new types of uses are requested as part of this Conditional Use Permit. Section 21015 of the Zoning Code requires a Conditional Use Permit to conform to the following standard below. For each standard, we have indicated how this proposed Conditional Use Permit conforms to these standards: a) Compliance with and effect upon the Comprehensive Plan The types of uses of the 161 Cheshire Lane facility will remain unchanged, only the relative mix of those uses will be altered. The current zoning is General Industrial 1-2 and the Comprehensive Plan indicates this as Planned Industrial IP. The Comprehensive Plan recognizes the ongoing shift in industrial uses towards more office use, and indicates that parking needs must be balanced accordingly. As part of the previously approved conditional use permit, a parking easement was created with the adjoining property 141 Cheshire to ensure adequate parking will be provided on the 161 Cheshire site commensurate with the increased amount of office space. That easement is attached to this submittal for your reference. b) The establishment, maintenance or operation of the conditional use will promote and enhance the general public welfare and will not be detrimental to or endanger the public health, safety, morals or comfort. The proposed uses of the 161 Cheshire building will not change, and are consistent with the permitted uses intended under the 1-2 zoning district. The Conditional Use Permit request is only to allow an increase in the percentage of office use from 50% to 60%. The 10% increase in office use represents 7,107 sf. of the 71,070 s.f. facility and represents a need for 29 additional parking spaces to provide parking stalls at the rate of 1 stall per 250 sf. of office space. The parking easement added an additional 52 stalls that will be dedicated to the 161 Cheshire site. c) The conditional use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values within the neighborhood. No new uses will be introduced to the 161 Cheshire property as part of this Conditional Use Permit. The change in the mix of existing uses as described in Item (b) above will have negligible impact, and therefore will not be injurious to the use and enjoyment of the neighboring property nor affect property values. d) The establishment of the conditional use will not impede the normal and orderly development and improvement of surrounding property for uses permitted in the district. The surrounding property has already been developed, and the uses of the 161 Cheshire site are consistent with the permitted uses under the Zoning Code and consistent with the uses of the surrounding properties. e) Adequate measures have been, or will be, taken to provide ingress, egress, and parking so designed as to minimize traffic congestion in public streets. As noted in Item (b) above, we have already recorded a parking easement to ensure adequate parking will be provided for the proposed additional office space. f) The conditional use shall, in all other respects, conform to the applicable regulations of the district in which it is located. The conditional use conforms to the other applicable regulations of the 1-2 Zoning District. As noted above, no new uses will be introduced to the site. The existing uses conform to the permitted uses under the Zoning Ordinance. g) The conditional use complies with the general and specific performance standards as specified by this Section and this Chapter. The conditional use complies with the procedural requirements of Section 21015 as well as other applicable provisions of the Plymouth Zoning Ordinance. 2 0 rl,; C'iTl QF PLYt itl Cp +1FAff CURRENT PLAN (including Village EXISTING PLAN (2013) Chevrolet Warehouse space) Office 16,010 Office 21,494 Break room 641 Break room 1,396 Training 3,210 Training 1,889 Fitness 1,121 Lab 4,315 Lab 4,554 Production 6,187 Production 6,187 Warehouse 11,855 Warehouse 11,282 Storage 199 Storage 504 Toilets 743 Toilets 1,142 Mechanical Room 440 Mechanical Room 440 Exterior walls 628 Exterior walls 733 Total 44,228 Total 50,742 OFFICE 36.20% OFFICE 42.36% Village Chev Warehouse 6,514 AECOM AECOM Office 17,198 Office 17,198 Warehouse 3,474 Warehouse 3,474 Total Building Area 71,414 Total Building Area 71,414 Total Office Area 33,208 Total Office Area 38,692 OFFICE OF BUILDING 46.50% OFFICE OF BUILDING 54.18% Zvi ed, to Ll Parking Analysis --141 Cheshire Lane and 161 Cheshire Lane A cross parking easement was recorded when the 2013 CUP was approved which includes 52 parking stalls and is in place with the adjacent property 141 Cheshire. 141 Cheshire is also owned by CBC North South, LLC. The 141 Cheshire building is 100% leased and has abundant parking since the building is over 80% warehouse, The 161 Cheshire building is 100% leased at the date of this application, although AECOM's lease terminates on 12/31/16. Below is the breakdown of the 141 and 161 Cheshire properties breakdown of the usage splits: Building 141 Cheshire Office 13,710 RSF (17%) Warehouse 65,981 RSF (83%) Manufacturing 0 RSF {O%) 79,691 rentable square feet Stalls needed at 141 Cheshire based on (250 office/2000 warehouse): 82 stalls Stalls at 141 Cheshire (excluding Easement area): 111 stalls (see aerial on next page) Building 161 Cheshire (Assumes 60% Office to match CUP request) Requirements for 60% Office, 17% Lab/Mfg, 23% Whse Space SF Spaces Req'd Parking Rate Building SF 71,414 Net Building SF (90% of Building) 64,273 Net SF Off ice@60% 38,564 154.26 @250 Net SF Warehouse @ 23% 14,783 7.39 @2000 Net SF Lab/Mfg @ 17% 10,926 21.85 @500 Net SF of Spaces 63,964 Total req'd parking for site based on usage 183.5 Current Parking with Easement 226 See attached aerial for depiction of stalls at 161 Cheshire. In conclusion, the amount of parking stalls currently at 141 Cheshire and 161 Cheshire exceed the number of parking stalls required. r 16 _ 161 Cheshire ln ' 1 r r 6-__ r Mania fiechnologya superDimensiono } r IS r, 1$ - s#red - r; after - image l 147 flfll,I 28 nnnio i i Sol- Doc No T05102835 Certified, filed and/or recorded on Aug 2, 2013 4.14 PM Office of the Registrar of Titles Hennepin County, Minnesota Martin McCormick, Registrar of Titles Mark V. Chapin, County Auditor and Treasurer Deputy 45 Pkg ID 1011685C Doc Name: Easement Document Recording Fee $46.00 I Attested Copy or Duplicate $2.00 Original Document Total $48.00 Existing Certs New Certs 1358653 This cover sheet is now a permanent part of the recorded document. DECLARATION OF EASEMENTS TM ECLARATION OF EASEMENTS (the "Declaration") is made this clay of - 5 2013, by CBC North-South, LLC, a Delaware limited liabilty company (` eclarant"). RECITALS: WHEREAS, Declarant is the fee owner of that certain real property located in the City of Plymouth, Minnesota, commonly known as 161 Cheshire Lane North and legally described as Lot 2, Block 1, Carlson Business Center North according to the recorded plat thereof, and situate in Hennepin County, Minnesota (the "161 Parcel"); and WHEREAS, Declarant is the fee owner of that certain real property located in the City of Plymouth, Minnesota, commonly known as 141 Cheshire Lane North and legally described as Lot 3, BIock 1, Carlson Business Center North according to the recorded plat thereof, and situate in Hennepin County, Minnesota (the "141 Parcel"), and WHEREAS, as used herein, the terni "Owner" or "Owners" shall refer to Declarant or the party hereafter holding a fee simple ownership interest in one or more Parcels. WHEREAS, Declarant desires to provide for reciprocal parking easennents to benefit the 161 Parcel and the 141 Parcel (collectively referred to herein as the Parcels"). NOW, THEREFORE, in consideration of One Dollar and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Declarant hereby declares that the easements as hereinafter set forth shall be established with respect to the Parcels. AGREEMENT: 1. Parking Easement Burdening the 161. Parcel. For the benefit of the 141 Parcel and all present and future owners and occupants thereof, a non-exclusive easement (the 161 Parcel Easement") is hereby granted for the purpose of providing a right of vehicle esu C t:wmefdo Pamm Yids„ LW 200 South s31 Wnd IS(* UNUS", MN 0" L parking and access to such parking over and across those portions of the 161 Parcel shown on the attached Exhibit A (the "161 Parcel Parking Area"). i 2. Parking Easement Burdening the 141 Parcel. For the benefit of the 161 Parcel and all present and future owners and occupants thereof, a non-exclusive easement (the 141 Parcel Easement") is hereby granted for the purpose of providing a right of vehicle parking and access to such parking over and across those portions of the 141 Parcel shown on the attached Exhibit B (the "141 Parcel Parking Area"). 3. Parkin. The 161 Parcel Parking Area and the 141 Parcel parking Area are hereinafter collectively referred to as the "Parking Areas." 4. Maintenance and Operation. The Owner of each Parcel shall be responsible for maintenance and repair of that portion of the Parking Areas located on such Owner's Parcel, including but not limited to (a) maintenance, repair and replacement of the paving and curbing located within the Parking Areas sufficient to maintain same in good and serviceable condition in compliance with the laws and ordinances of all applicable governmental jurisdictions, and (b) removal of snow and ice from the Parking Areas. 3. Damage or Destruction. In the event any of the Parking Area is damaged or destroyed by any cause other than normal wear and tear, whether insured or uninsured, the Owner upon whose Parcel such Parking Area is located shall repair or restore such Parking Area at its sole cost and expense with all due diligence to substantially the same condition as it was in prior to the date of the damage or destruction. In the event such damage or destruction of a Parking Area is caused in whole or in part by another Owner or third party, the Owner obligated to make such repair or restoration reserves and retains the right to proceed against such other Owner or third party for indemnity, contribution or damages. 4. Liens. Each Owner agrees to defend, indemnify and hold the other hannless from and against any mechanics', matezialmens' and/or laborers' liens, and all costs, expenses and liabilities in connection therewith, including reasonable attorneys' fees, arising out of the respective maintenance by such Owner of the Parking Area, and in the event that a Parcel shall become subject to any such lien, such Owner responsible for the sante shall upon request promptly cause such lien to be released and discharged of record, either by paying the indebtedness which gave rise to such lien or by posting such bond or other security as shall be required by law to obtain such release and discharge. In the alternative, an Owner may place in escrow a sum of money equal to the amount in dispute until the matter is resolved_ Insurance, Indemnitv. a) 161 Owner Indemni • Insurance . The Owner of the 161 Parcel (the "161 Owner") shall indemnify, defend and hold harmless the Owner of the 141 Parcel (the "141 Owner") from and against any and all claims, demands, actions, liability, damages, losses, costs and expenses (including without 2 limitation reasonable attorneys' fees) suffered or incurred by the 141 Owner resulting from or arising out of the use of the 141 Parcel Parking Area by the 161 Owner or its agents. The 161 Owner agrees to keep in full force and effect a policy of commercial general liability insurance with respect to the use of the 141 Parcel Easement with limits of liability not less than $1,000,000, combined single limit, naming the 141 Owner as an additional insured. Upon request by the 141 Owner, the 161 Owner shall provide to the 141 Owner a certificate of insurance evidencing such insurance. b) 141 Owner Indemnity; Insurance. The 141 Owner shall indemnify, defend and hold harmless the 161 Owner from and against any and all claims, demands, actions, liability, damages, losses, costs and expenses (including without limitation reasonable attorneys' fees) suffered or incurred by the 161 Owner resulting from or arising out of the use of the 161 Parcel Parking Area by the 141 Owner or its agents. The 161 Owner agrees to Iceep in full force and effect a policy of commercial general liability insurance with respect to the use of the 161 Parcel Easement with limits of liability not less than $1,000,000, combined single limit, naming the 141 Owner as an additional insured. Upon request by the 161 Owner, the 141 Owner shall provide to the 161 Owner a certificate of insurance evidencing such insurance. c) Waiver of Claims. Each Owner (the "Releasing Party") hereby releases and waives for itself and on behalf of its insurer, any other such Ovaier the "Released Party") from any liability for any loss or damage to all property of such Releasing Party located upon any portion of the Parcels, which loss or damage is of the type generally covered by property insurance provided under the Comprehensive Replacement Cost form, irrespective either of any negligence on. the part of the Released Party which may have contributed to or caused such loss, or of the amount of such insurance required or actually carried. Each such Owner agrees to use its best efforts to obtain, if needed, appropriate endorsements to its policies of insurance with respect to the foregoing release; provided, however, that failure to obtain such endorsements shall not affect the release hereinabove given. 6. Default; Remedies. a) If any Owner fails to comply with any provision herein ("Defaulting Party"), then any other Owner ("Non -Defaulting Party") may, upon thirty 30) days prior written notice to the Defaulting Party, proceed to cure the default (and shall have a license to do so) by the payment of money or performance of some other action for the account of the Defaulting Party. b) Within thirty (30) days of written demand (including providing copies of invoices reflecting costs) the Defaulting Party shall reimburse the Non -Defaulting Party for any sum reasonably expended by the Non -Defaulting Party to cure the default. The Non -Defaulting Party shall have a lien upon the Defaulting Party's right, title, and interest in and to any portion of the Parcels to secure payment of all amounts due to the Non -Defaulting Party hereunder. The Non -Defaulting Party shall have the right, but not the obligation, to record its lien, but at all times its lien pursuant to this Section 5 shall be subject and subordinate to (i) the lien of any mortgage or deed of trust now or hereafter held by any institutional lender or any trust for the benefit of the holders of interests in such loan any such lender or trust, a "Mortgagee") or any extension, renewal, modification or refinancing thereof, in an amount now or hereafter placed on the Defaulting Party's interest in any portion of the Parcels; (ii) the leasehold estate created by any lease of all or any part of the Parcels -. owned by the Defaulting Party; and (iii) any other lien of record against the Defaulting Parry's property as of the date that the Non -Defaulting Party's lien is recorded. The Defaulting Party shall execute such instruments and documents as the Non -Defaulting Party may reasonably request to permit the recordation of such lien. c) All remedies are cumulative and shall be deemed additional to any and all other remedies to which any Owner may be entitled at law or in equity. Each Owner shall also have the right to restrain by injunction any violation or threatened violation by any other party of any of the terms, covenants, or conditions of this Declaration, or to obtain a decree to compel performance of any such terms, covenants, or conditions, it being agreed that the remedy at law for a breach of any such term, covenant, or condition (except those, if any, requiring the payment of a liquidated sum) is not adequate. d) Interest. Wherever and as often as one Defaulting Party shall not have paid any sum payable hereunder to a Non -Defaulting Party within ten (10) days of the due date, such Defaulting Party shall pay interest on such amount from the date such funds were expended by the Non -Defaulting Party to and including the date such payment is received by the Non - Defaulting Parry entitled thereto at a rate of twelve (12%) per annum (it being acknowledged and agreed however that (a) no Mortgagee, in its capacity as a rnoitgagee, shall have any liability to pay such interest or any other amounts due hereunder and (b) in the event a Mortgagee holding a mortgage or deed of trust of record shall succeed to the interests of either Owner hereunder, such Mortgagee shall not be responsible for the payment of any interest charged under this clause (d) unless and to the extent that such Mortgagee was provided with notice of the past due amounts and a period of at least ten (10) days to cure the same prior to the accrual of such interest (and in such instance Mortgagee shall only be 4 responsible for interest accrued following the expiration of the tenth (10 h) day following Mortgagee's receipt of such notice). 7. Notices. All notices, demands, statements and requests required or permitted to be given or served under this Declaration shall be in writing and shall be deemed to be effective and to have been properly given or served, whether received or not, on the third 3rd) business day after depositing the same in the United States mails, addressed to the Owners, postage prepaid, registered or certified mail, return receipt requested, at the addresses maintained by the Owners on file with the office of the Hennepin County Assessor for delivery of real estate tax statements relating to the Parcels which they own. Rejection or other refusal to accept, or the inability to deliver because of a changed address of which no notice was given, shall be deemed to be receipt of the notice, demand, statement or request. At such time as any Owner transfers its respective Parcel, or any portion thereof, so as to create a new Owner, each such new Owner shall send notice to the other Owners of the name and address to which notice to that new Owner shall be sent. Until such time as a new Owner sends such notice, the prior Owner who made such transfer shall be deemed to be the agent for such new Owrrer for purposes of giving or service of notices. S. Severability. Invalidation of any one of the provisions contained herein by judgment or court order shall in no way affect any of the other provisions hereof, which shall remain in full force and effect. 9_ Binding Effect. The terms of this Declaration and all easements granted hereunder shall be perpetual and shall constitute covenants running with the land and shall inure to the benefit of and be binding upon the signatories hereto and their respective successors and assigns who become Owners hereunder. 10. Negation of Partnership. None of the terms or provisions of this Declaration shall be deemed to create a partnership between or among the Owners in their respective businesses or otherwise, not shall such terns or provisions cause them to be considered joint venturers or members of any joint enterprise. No Owner sball have the right to act as an agent for another Owner unless expressly authorized to do so herein or by separate written instrument signed by the Owner to be charged. U. Not a Public Dedication. Nothing herein contained shall be deemed to be a gift or dedication of any portion of the Parcels or any portion thereof to the general public, or for any public use or purpose whatsoever. Except as herein specifically provided, no right, privileges or immunities of any Owner hereto shall inure to the benefit of any third party, nor shall any third party be deemed to be a beneficiary of any of the provisions contained herein. 12. Declaration Shall Continue Notwithstanding Breach. It is expressly agreed that no breach of this Declaration shall (a) entitle any Owner to cancel, rescind or otherwise terminate this Declaration, or (b) defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value as to any part of the Parcels. However, such limitation shall not affect in any manner any other rights or remedies which an Owner may have hereunder by reason of any such breach. 13. Runninz- of Benefits and Burdens. The easements, conditions, covenants and restrictions hereby granted, declared and created, and the provisions hereof, shall be peipetual and shall run with the land, without regard to technical classification or designation, legal or otherwise, shall be binding upon, to the fullest extent permitted by law and equity, and shall inure to the benefit of, and be enforceable as provided herein by, the parties and their respective heirs, administrators, successors and assigns, and all present and future Owners of the Parcels. 14. Real Estate Takes. Each Owner shall pay or cause to be paid prior to delinquency all real estate taxes and assessments which may be levied, assessed or charged by any public authority against such Owner's Parcel and improvements thereon. 15. Recitals, Exhibits. The recitals above and the exhibits attached hereto are true and correct and are incorporated herein as a substantive part of this Declaration. Signature page follows] 6 IN WITNESS WHEREOF, the Declarant has caused this Declaration of Easements to be executed effective as of the date first above written. CBC North-South, LLC, a Delaware limited liabilty company By. a Name: Mark G. flerreid Its: Senior Vice President and CFO STATE OF MINNESOTA } COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this:'f day of 2013 by Mark G. Henreid, the Senior Vice President and CFO of CBC North- outh, LLC, a Delaware limited liabilty company, on behalf of the limite liabiilty company. ERIN 'MMCF -AR AND. No ry Public Notary Public r1 i(1n@sa18 r -y ComiR. f ka mp,RS_ THIS. INKRUMENT WAS DRAFTED BY -.," a i1v f narne and address) 7 Exhibit A 161 Parcel Parldng Area P.LD. 34-118-22-33-0010 A perpetuat easement for parking purposes over the following described property: That part of Lot 2, Block 1, Carlson Business Center North, according to the recorded. plat thereof, described as follows: Commencing at the southeast corner. of said Lot 2; thence North 88 degrees 32 minutes 01 seconds West along south line of said Lot 2 a distance of 49.50 feet; thence South 68 degrees 03 minutes 02 seconds West along said south line a distance of 82.20 feet; thence North 88 degrees 32 minutes 01 seconds West along said south line a distance of 36.0.8 feet; thence North 01 degrees 27 minutes 59 seconds East a distance of 14.00 feet to the point of beginning; thence continuing North 01 degrees 27 minutes 59 seconds East a distance of 20.00 feet; thence South 88 degrees 32 minutes 01 seconds East a distance of 36.08 feet; thence South 01 degrees 27 minutes 59 seconds West a distance of 20.00 feet; thence North 88 degrees 32 minutes 01 seconds West a distance of 36.08 to the point of beginning. E EASEMENT EXHIBIT P.I.D. 34-118-22-33-0010 :. LEGAL DESCRIPTION: LOT 2, BLOCK 1, CARLSON BUSINESS CENTER NORTH PERMANENT EASEMENT AREA; 722 Sq. Ft. H1,SHTRE LANE SOUTHEAST Cn )NM FJ LEGEND: I PEPMANENT EASEMENT AREA z—— NOT TO SCALE RTIFICATI O N ; reby certify that this survey, plan, or report prepared by me or under my direct rvlslcn and th 1 am a duly Licensed Land 7eyar rl0der Bvy,St to of - lesota, // s Reg. No, 13637 Date; May 2, 2013 Engineering . Surveying 0 Landscape Architecture 1 1 HANBEN THORP PFI -LINEN OLSON, Inc, 7610 Wrke Mm W— Even PTW1 . MN 55314 952-624-0700. 952-029-7ROR rax Exhibit B 1.41 Parcel Parking Area P -LD. 34-118-22-33-0011 A perpetual easement for parking purposes over the following described property: That part of Lot 3, Block 1, Carlson Business Center North, according to the recorded plat thereof, described as follows: Commencing at the northeast corner of said Lot 3; thence North 88 degrees 32 minutes 01 seconds West along north line of said Lot 3 a distance of 49.50 feet; thence South 68 degrees 03 minutes 02 seconds West along said north line a distance of 82.20 feet; thence North 88 degrees 32 minutes 01 seconds West along said north line a distance of 36.08 feet; thence North 01 degrees 27 minutes 59 seconds East a distance of 14.00 feet to the point of beginning; thence North 88 degrees 32 minutes 01 seconds West a distance of 216.50 feet; thence North 01 degrees 27 minutes 59 seconds East a distance of 20.00 to its intersection with said north line; thence South 88 degrees 32 minutes 01 seconds East along said north line a distance of 216,50 feet; thence South 01 degrees 27 minutes 59 seconds East a distance of 20.00 to the point of beginning. Also: That part of Lot 3, Block 1, Carlson Business Center North, according to the recorded plat thereof, described as follows: Commencing at the northeast coiner of said Lot 3; thence North 88 degrees 32 minutes 01 seconds West along north line of said Lot 3 a distance of 49.50 feet; thence South 68 . degrees 03 minutes 02 seconds West along said north line a distance of 82.20 feet; thence South 00 degrees 17 minutes 17 seconds East a distance of 14,00 feet to the point of beginning; thence North 88 degrees 32 minutes 01 seconds West a distance of 253.00 feet; thence South 01 degrees 27 minutes 59 seconds Fast a distance of 20.00 feet; thence South 88 degrees 32 minutes 01 seconds East a distance of 253.00 feet to the point of beginning. 10 EASEMENT EXHIBIT P.I.D. 34-118-22-33-0011 LEGAL DESCRIPTION: LOT 3, BLOCK 1, CARLSON BUSINESS CENTER NORTH PERMANENT EASEMENT AREA: 9,390 Sq. Ft. CHS SH.IRE LANE NGRLoi}lEIF GORIER . ep ra mr i Oo LJ z LEGEND: 1JKOanl LnE ' 7 PERMANENTO -OF LOT .3 .. .•: . N L;' J EASEMENT AREAS, n M r 7.0.0 SOI'27'59"E 20..0— I M1. Ojj f i _ w NOT TO SCALE N a LU f7 L, a LU Lj _J CERTIFICATIDN: L•• 4 h I hereby certify that this survey, plan, or report was prepared by me or under my direct A supervision and th 1 am ad uly Licensed Land - surveyor under a of tiye Agate of FORTH lIYE( Or LOT 3- 1 ` Reg• No. 13637 Date: May 2, 2013 El Engineering. Surveying 1 ! Landscape Archltecture 7, X0.9 ° 1 NOi'2T59'C ,0'.'2'Tse"E HANSEN THORP PELLINEN OLSON, Inc. 7510 MacMel plat. prNe-ERcn piahle. MN55S4A X52-9'1}0%00 • 95P 29-ecsra t LENDER CQNSENT" THIS CONSENT TO DECLARATION OF EASEMENTS is made as of the& day of muss , 2013, by TEACIBRS INSURANCE AND ANNUITY ASSOCIATION OF A7V PJ A ("Lender"), and shall be attached to and deemed a part of that certain Declaration of Easements dated 2- , 2013 (the "Aeclaration") made by CBC North-South, LLC, a Delaware limited liability company, WITNESSETH: WHEREAS, Lender is the owner and holder of that certain Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Financing Statement and Assignment of Leases and Rents as contained in that certain Consolidation, Amendment and Restatement of Prior Notes, Mortgage and Assignments dated November -23, 2004, filed December 2, 2004, as Document No. 4049063, executed by Carlson Real Estate Company, a Minnesota Limited Partnership, as mortgagor, to Teachers Insurance and Annuity Association of America, a New York corporation, as mortgagee, in the original principal amount of $29;500,000.00 (the Mortgage"), which Mortgage was amended by that certain Loan Assumption and Modification Agreement dated November 1, 2012, filed November 6, 2012, as Document No, 75010825, by and among CBC North-South,. LLC, a Delaware limited liability company, Carlson Rcal Estate Company, LLLP, a Minnesota limited liability limited partnership and Lcnder. WHEREAS, Lender desires to consent to the terms of, and subordinate its rights under the Mortgage to, the easements, covenants, restrictions and conditions set forth in the Declaration. NOW, TEEREFOU, Lender, for itself and all future holders of Lender's'interest under the Mortgage, does hereby consent to the. terms of, and does hereby subordinate its rights under the Mortgage to, the easements, covenants, restrictions and conditions set forth in the Declaration it -being acknowledged and agreed that such consent and subordination shall not adversely affect any rights of Lender in its capacity as a Mortgagee under the Declaration). REMAINDER OF PAGE LEFT INTENTIONALLY 13LANKI IN WITNESS WHEREOF, Lender has caused this Lender Consent to be executed as of the day and year first above written, TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA, a Now York corporation y DIE0RE M:. DW'S4 DIRECTOR- Its- STATE IRECSOR- Its• STATE OF L,-',-,4, pet 11 UA ss. COUNTY OF The foregoing instrurnmt was acknowledged before me this day of 2013, by 1 e:. d` - cl a. Dv `.s , the _ . 6 '-Z of Teachers Insurance and Annuity Association of America, for and on behalf of said association, THIS INSTRUMENT WAS DRAFTED BY; Fredrikson & Byron, P,A, (KNB) 200 South Sixth Street, Suite 4000 Minneapolis, MN 55402 7 Notary Public ORRAINE M, PATTERSON NOTARY PUBLIC MECKLENBURG COUNTY,, NO MYCOMMISSION EXPIRES OCT. 14,20D Cj o L FN w wz2 ' W J [J7 ¢ T4s -`s 6 g ¢ a O =Iz LJ z NOI,LDnx,LSMOD xo3 IOK C LUv os wzs NOI.LDRUISKOO NO -4 ION