Loading...
HomeMy WebLinkAbout2000-021 CCRits adoption: Member Debra Hilstrom introduced the following resolution and moved RESOLUTION NO. 00-9-L RESOLUTION APPROVING REDEVELOPMENT AGREEMENT WITH TALISMAN LLC WHEREAS, pursuant to the Minnesota Business Subsidy Act, the City Council conducted a public hearing on the 24th day of January, 2000, on a proposed grant of a business subsidy to Talisman LLC for the redevelopment of the Brookdale Mall; and WHEREAS, the proposed business subsidy was reviewed pursuant to the City of Brooklyn Center's Business Subsidy Policy and was determined to meet the mandatory criteria and was reviewed under the evaluative criteria as set forth in Exhibit B, which is attached hereto and incorporated herein by reference; and WHEREAS, attached hereto and incorporated herein by reference as Exhibit A is a proposed redevelopment agreement between the Economic Development Authority in and for the City of Brooklyn Center and Talisman LLC; and WHEREAS, the terms and conditions set forth in the proposed redevelopment agreement in Exhibit A appear to be reasonable and proper. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the redevelopment agreement and business subsidy of $2.9 million is pay as you go tax increment financing as set forth in Exhibit A be and hereby is recommended for approval by the Economic Development Authority in and for the City of Brooklyn Center. Januarv 24. 2000 Date Mayor ATTEST: LN~ City Clerk ~I The motion for the adoption of the foregoing resolution was duly seconded by member Kay Lasman and upon vote being taken thereon, the following voted in favor thereof: Myrna Kragness, Debra Hilstror and the following voted against the same: none; Kay Lasman, Ed Nelson, and whereupon said resolution was declared duly passed and adopted. Robert Peppe; DEVELOPMENT AGREEMENT BY AND BETWEEN BROOKLYN CEN'T'ER ECONOMIC DEVELOPMENT AUTHORITY AND TALISMAN BROOKDALE, LLC This document drafted by: BRIGGS AND MORGAN (MMD) Professional Association 2200 West First National Bank Building.. St. Paul, Minnesota, 55101 988288.6 RESOLUTION NO. 00-21 TABLE OF CO,g, Exhibit A La= RECITALS . . . . . . . . . . . . . . . . . . . . 1 '--ARTICLE I - DEFINITIONS . . . . . . . . . . . . . . . . . . 2 Section 1.1. Definitions . . . . . . . . . . . . . . 2 ARTICLE II - REPRE SENTATIONS AND WARRANTIES . . . . ~ 5 Section 2.1. the Representations and Warranties of Authority . • . . • . 5 Section 2.2. Representations and Warranties of the Developer . . . . . . . . . . . . . . . 5 ARTICLE III - CONSTRUCTION OF MINIMUM IMPROVEMENTS . . . . 8 Section 3.1.. ' Construction of Minimum Improvements 8 Section 3.2. Construction Plans . . . . . . . . . 8 Section- 3.3. Commencement and Completion of Construction . . • • • . . . • . . 9 Section 3.4. Certificate of Completion . . . . . . . . . 9 Section 3.5. Daytons Minimum Improvement . . . . 10 ARTICLE IV - ASSE SSMENT AGREEMENT . . . • . . . . . . . . . 11 Section 4.1. Execution of Assessment Agreement . . . . 11.. Section 4.2. Real Property Taxes . . . . . . . . . . . 11 ARTICLE V - DAMAGE, DESTRUCTION OR CONDEMNATION . . . . . . . 13 Section 5.1. Damage, Destruction or Condemnation 13 ARTICLE VI - TAX INCREMENT ASSISTANCE; PAYMENTS TO AUTHORITY 14 Section 6.1. Preconditions to Issuance of Tax Increment. Note . . . . . . . . . . . . . . . . 14 Section 6.2. Tax Increment Revenue Note . . . . . . . . 15 Section 6.3. Use of Tax increments . . . . . . . . . . 16 Section 6.4. Business Subsidy Act. . . . . . . . . . 16- Section 6.5. Payments to Authority . . . . . . . . . . 17 Section 6.6. Tax Deferrals or Abatements . . . . . . . 18 ARTICLE VII - PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER; INDEMNIFICATION . . . . . . . . . 19 Section 7.1. Status of Developer; Transfer of Substantially All Assets . . . . . . 19- Section 7.2. Prohibition Against Transfer of Property and Assignment of Agreement . . . . . 19 Section 7.3. Approvals . . . . . . . . . . . . . . 20 ARTICLE VIII - EVE; Section 8.1. Section 8.2. Section 8.3. Section 8.4.. 9TS OF DEFAULT . . . . . . . . . . 22 -Events of Default Defined 22 Remedies on Default . 23 No Remedy Exclusive . . . . . . . . . . 24 No Implied Waiver . . . . . . . . . . 24 988288.6 RESOLUTION NO. {}0-21 Exhibit A Section 8.5. Agreement.to Pay Attorney's Fees and Expenses . . . . . . . . . . . . . • . 24 Section B.Z. Indemnification of Authority and City . 24 ARTICLE IX - ADDITIONAL PROVISIONS . . . . . . . . . . . . . 26 Section 9.1. Restrictions on Use. . . . . . . . . . 26 Section 9.2. Conflicts of Interest . . . . . . . 26 Section 9.3. Titles of Articles and Sections . . . . . 26 Section 9.4. Notices and Demands . . . . . . . . . . 26 Section 9.5. Counterparts . . . . . . . . . . . . . . . 27 Section 9.6. Law Governing . . • . . . . . • . 27 Section'9.7. Expiration . . . . . . . • • • 27 Section 9.8. Provisions Surviving Rescission or Expiration . . . . . 27 EXHIBIT A - Legal-Description of Tax Increment Financing District No. 03 . . . . . . . . • . . . A-1 EXHIBIT B - Legal Description of Development Property B-1 EXHIBIT C - Description of Eligible Improvements . . C-1 EXHIBIT D - Description of Minimum Improvements . . D-1 EXHIBIT E - Description of Daytons Minimum Improvements . . . E-1'- EXHIBIT F - List of Eligible Tenants • . . . F-1 EXHIBIT G - Certificate of Completion . • . . . . . • . • G-1 EXHIBIT H - Assessment Agreement . . . . . . H-1 EXHIBIT I - Form of Tax Increment Note I-1 EXHIBIT J --Legal Description of Adjacent Development Property . . . . . . . . . . . . . . . . . J-1 EXHIBIT K - Daytons Lease . . . . . . . . . . . . . . . . K-1 988288.6 01/14/00 FRI 16:25 FAI 305 6629616 _ TALISMAN COMPANIES LLC RESOLUTION NO. 00-21 DEVELOPMENT AGREEMENT .THIS AGREEMENT, made as of the Center Economic Development 2000, by and between the Brooklyn Cents - Authority, Minnesota (the "Authority"), politic organized and existing under the Minnesota and Talisman Brookdale, LLC, liability company (the "Developer"), WITNESSETH: Exhibit A day of , a body corporate and laws of the State of a DEL AW&&'o, limited WHEREAS, pursuant to Minnesota Statutes, Sections 469.001 to 469.047, the Authority has formed Redevelopment Project No. 1 (the "Redevelopment Project") and has adopted a redevelopment plan therefor (the "Redevelopment Plan"); and WHEREAS, pursuant to the provisions of Minnesota Statutes, Section 469.174 through 469.179, as amended, (hereinafter the "Tax Increment Act"), the Authority has created Tax Increment Financing District No. 03 as a redevelopment district (the "Tax Increment District"), the legal description of which is attached hereto as Exhibit A, a'nd has adopted a tax increment financing plan therefor (the "Tax Increment Plan") which provides for the use of tax increment financing in connection with development within the Redevelopment Project; and WHEREAS, in order to achieve the objectives of the Redevelopment Plan and particularly to make the land in the Redevelopment Project available for development by private enterprise in conformance with the Redevelopment Plan, the Authority has determined to assist the Developer with the public cost of the Minimum Improvements (as hereinafter defined) to be constructed on certain property within the Tax Increment District- as more particularly set forth in this Agreement; and WHEREAS, the Authority believes that the Minimum Improvements, and fulfillment of this Agreement are in the best interests of the City of Brooklyn Center, and in accordance with the public purpose and provisions of the applicable state and local laws and requirements under which the Minimum Improvements have been undertaken. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 2002 ~ 3i 1 998288.6 Section 1.1. Definitions. All capitalized terms used and not otherwise defined herein shall have the following meanings --unless a different meaning clearly appears from the context: Agreement means this Agreement, as the same may be from time to time modified, amended or supplemented; Adjacent Development Propel means the land legally described on Exhibit J attached hereto; Anchor Tenant- means Daytons, Penny's, Mervyn's, Sears and Kohls; Assessment Agreement means the agreement substantially in the form attached hereto as Exhibit F and made a part of this Agreement, among the Developer, the City and the Assessor for the City, entered into pursuant to Article IV of this Agreement; AaspR"Ror'a Minimum Market value means the agreed minimum market value of the Development Property for calculation of real property taxes as determined by the assessor for the City pursuant to the Assessment Agreement; Authority means the Brooklyn Centex_Economic Development Authority; r ificatA of Completion means the certification. in substantially the form-attached hereto as Exhibit G and made a part of this Agreement to be provided by the Authority to the Developer pursuant to Section 3.4 of this Agreement; Laty means the City of Brooklyn Center, Minnesota; Construction Plans means the plans, specifications, drawings and related documents of the construction work to be performed by the Developer on the Development Property. The plans (a) shall be as detailed as the plans, specifications, drawings and related documents which are submitted to the building inspector of the City, and (b) shall include at least the following: (1) site - plan; (2)"site,grading and drainage plans; (3) foundation plan; (4) basement plans, if any; (5) floor plan for each floor; (6) cross sections of each (length and width); (7) elevations .(all sides) and (8) landscape plan; County means Hennepin County, Minnesota; j~vtons Minimum Improve s means the remodeling of the existing Dayton's located on the Adjacent Development Property as more particularly described on Exhibit E attached hereto; 988288.6 2 01/14/00 FRI 16:26 FAX 305 6629616 - TALISMAN COMPANIES LLC RESOLUTION NO. 00-21 - Exhibit A Developer means Talisman Brookdale, LLC,. a _Lo ve t D Pr limited liability company, its successors and assigns; DevelQWa_n.t Prg2erty means the land legally described on Exhibit B attached hereto; B-1-icfib P- Tmurove e~ nta means the acquisition of parcels containing buildings which are structurally substandard, and any adjacent parcels necessary to provide a site of sufficient size to permit development, relocation of utilities, construction of parking improvements, soil correction, demolition, and rehabilitation of structures, and site preparation undertaken on the Development Property in connection with the Minimum Improvements as further described on Exhibit C attached hereto, but only to the extent the Developer provides evidence satisfactory to the Authority that such activities satisfy the requirements of-Minnesota Statutes, Section 469.176, subd. 4; Eligible Tenant:l mean the retail businesses listed on Exhibit F attached hereto, or retail business of the same or similar quality acceptable to the Authority as evidenced by a written acceptance executed by the Authority; Event- of Default means any of the events described in Section 8.1; Final Pa=en Date, means the earlier of (a) the date all principal and accrued interest is paid on the Note, or (b) 45 days after the City receives from the County the second installment of property taxes for the taxes payable year 2007; 9003 Y Minimum Improve,z means the reconfiguration of the Brookdale Mall and the creation of open spaces and other improvements as more particularly described on Exhibit D attached hereto; Note gDt Dat:p, means 45 days after the City receives the property tax settlements from the County, commencing with the first property, tax settlement in the taxes payable year 2003, and continuing through the Final.Payment Date; $=Qject means the buildings and improvements located on the- Development Property, including the Minimum Improvements to be constructed thereon; ,State means the State of Minnesota; Tax T crement &gr. means Minnesota Statutes, Sections 469.174 through 469.179, as amended; T,px Tncr_ement District means Tax Increment Financing District No. 03 legally described in Exhibit A attached hereto RESOLUTION NO. 00-21 - Exhibit A and qualified as a redevelopment district under the Tax Increment Act; May Increment Financing Plan means the plan approved for the Tax-Increment District; TX Increment Note or 17ote means the tax increment note in substantially the form attached hereto as'Exhibit I; Tax Increments means any tax increments derived from the Development Property and Adjacent Development Property which have been received and retained by the Authority in accordance with the provisions of Minnesota,Statutes, Section 469.177, or otherwise pursuant to the Tax Increment Act; Termination Date means the Final Payment Date; 17navoidable Delays means delays, outside the control of the party claiming its occurrence, which are the direct result of strikes, other labor troubles, unusually severe or prolonged bad weather, acts of God, fire or other casualty to the Project, litigation commenced by third parties which, by injunction or other similar judicial action or by the exercise of reasonable discretion, directly results in delays, or acts of any federal, state or local governmental unit (other than the Authority or the._ City) which directly result in delays. 988288.6 01/14/00 FRI 16:26 FAX 305 6629616 TALISMAN COMPANIES LLC Q004 RESOLUTION NO. 00-21 - Exhibit A ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2.1. Representationg asad Warrant?eR of tha --Authorit:%. The Authority makes the following representations and warranties: (1) The Authority is a body corporate and politic of the State of Minnesota and has the power to enter into this Agreement and carry out its obligations hereunder. (2) The Tax increment District is a "redevelopment district" within the meaning of Minnesota Statutes, Section 469.174, Subdivision 10 and was created, adopted and approved in accordance with the terms of the Tax Increment Act. (3) The development contemplated by this Agreement is in conformance with the objectives set forth in the Redevelopment Plan. (4) To finance the costs of the activities to be undertaken on the Development Property, the Authority proposes-to, subject to the further provisions of this Agreement, apply Tax Increments, among other things, to reimburse the Developer for a portion of the costs of the Eligible Improvements. (5) The Authority has requested Hennepin County to certify the original tax capacity of the Tax Increment District. Section 2.2. Representations and WarrantieB of W Develop. The Developer makes the following representations and warranties: (1) The Developer is a limited liability company duly incorporated under the laws of the State of Al'.ooe/n.9 , is in good standing and duly authorized to conduct its business in the State of Minnesota and-all other states where its activities require such authorization, has the power to enter into this Agreement, and to use the Project for the purpose set forth in this Agreement and by proper'corporate action has authorized the execution and delivery of this Agreement. (2) The Developer will construct the Minimum*Improvements, and will operate and maintain the Project in accordance with 'the terms of this Agreement, the Development Program and all local, state and federal laws and regulations (including,-but not limited to, environmental, zoning, energy conservation, building code and public health laws and regulations), except for variances necessary to construction the Minimum improvement's contemplated in the Construction Plans approved by the City. RESOLUTION NO. 00-21 Exhibit A (3) The construction of the Minimum Improvements would not be undertaken by the Developer, and,in the opinion of the Developer would not be economically feasible within the reasonably foreseeable future, without the assistance and benefit to the Developer provided for in this Agreement. (4) The Developer will obtain, or cause to be obtained, in a timely manner, all required-permits, licenses and approvals, and will meet, in a timely manner, all requirements of all applicable local, state, and federal laws and regulations-which must be obtained or met before the Minimum Improvements may be lawfully constructed.. (5) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or'compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provision of any contractual restriction, evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under-any of the foregoing. (6) The Developer will provide and maintain or cause to be maintained at all times and, from time to time at the request of the Authority, furnish the Authority with proof of payment of premiums on insurance of amounts and coverages normally held by businesses engaged in activities similar, to those of the Developer. (7) The Developer has not received any notice from any local, state or federal official that the activities of the Developer, or that the Development Property may or will be in violation of any environmental law or regulation. The Developer is not aware of any state or federal claim filed or planned to be filed by any party relating to any violation of any local, state or federal environmental law, regulation or review procedure, and the Developer is not aware of any violation of any local, state or federal law, regulation or review procedure which would give any person a valid claim under the Minnesota Environmental Rights Act or other state or federal environmental statute. (8) The Developer will cooperate fully with the City and the Authority with respect to any litigation commenced with- respect to the Project. (9) The financing commitments which the Developer has obtained to finance construction of the Minimum Improvements, together with financing provided by_the Authority-pursuant to this Agreement, will be sufficient to enable the Developer to successfully complete the Minimum Improvements in conformance with the Construction Plans. 988288.6 6 RESOLUTION NO. 00-21 Exhibit A (10) 'The Developer will cooperate fully with the City and the Authority in resolution of any traffic, parking, public nuisance, or public safety problems which may arise in connection with the construction and operation of the Project. .(11) The Developer will expend at least $50,000,000 on the __capital costs of construction of the Minimum Improvements, payments to the owners of the Anchor Tenafits for remodeling costs, acquisition of the Penny's store, and demolition costs of Development Property or Adjacent Property, which costs are exclusive of equipment or other personal property and any "soft costs" such as architectural, engineering, management, administrative overhead, financing and legal costs. (12) The construction of the Minimum Improvements will commence on or before March 1, 2000, and barring Unavoidable Delays, the Minimum improvements will be substantially completed by March 15, 2002. Notwithstanding the foregoing, the Developer represents that the Development Property will have a market value of at least $45,000,000 as of January 2, 2002. (13) The Developer has received assurances from the owner of the Daytons store located on the Adjacent Development Property that the construction of the Daytons Minimum Improvements will commence on or before December 1, 2000, and barring Unavoidable Delays, the Daytons Minimum Improvements will be substantially completed by June 30, 2002. Notwithstanding the foregoing, the Developer represents that the Adjacent.Development Property will have a market value of at least $30,000,000 as of January 2, 2002. (14) No part of the Development Property shall be leased or used as for an adults=only entertainment center, adults only bookstore, adults-only motion picture theater, massage parlor, rap parlor or sauna, and the Developer covenants and agrees that its objective in developing the Development Property include the preservation of a wholesome and first class, quality image for the Development Property and Developer shall not cause the _ Development Property to be used for any event or other purpose which is inconsistent with decency and good taste. 988288.6 7 RESOLUTION NO. 00-21 - ARTICLE III CONSTRUCTION OF MINIMUM IMPROVEMENTS Exhibit A - Section 3.1. Construction of Minimum ImnroveT1Q s . The Developer agrees that it will construct the Minimum Improvements -.on the Development Property in conformance with the approved Construction Plans. The Developer agrees that the scope and scale .of the Minimum Improvements to be constructed shall not be significantly less than the scope and scale of the Minimum Improvements as detailed and outlined in the Construction Plans and Exhibit D hereof. Section 3.2. Construction Plans. The Developer shall provide the Authority with Construction Plans, which shall be subject to approval by the Authority as provided in this Section 3.2. The. Construction Plans shall provide for the Minimum Improvements to be constructed on the Development Property, and shall be in substantial conformity with the Redevelopment Plan, this Agreement, and all applicable state and local laws and regulations. The Authority shall approve the Construction Plans in writing if: (a) the Construction Plans conform to the terms and conditions of this Agreement; (b) the Construction Plans substantially conform to the terms and conditions of the Redevelopment Plan; (c) the Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (d) the Construction Plans are adequate for purposes of this Agreement to provide for the construction of the Minimum improvements; and (e) no Event of Default under the terms of this Agreement has occurred; provided, however, that any such approval -of the'Construction Plans pursuant to this Section 3.2 shall constitute approval for the purposes of this Agreement only and shall not be deemed to constitute approval or waiver by the Authority or the City with respect to any building, zoning or other ordinances or regulation of the City, and shall not be deemed to be sufficient plans to serve as the basis for the issuance of a building permit if the Construction Plans are not as detailed or complete as the plans otherwise required for the issuance of a building permit. Such Construction Plans must be rejected in writing by the Authority within fifteen (15) days of submission or shall be deemed to have been approved by the Authority. If the Authority rejects the Construction Plans in whole or in part, the Developer shall submit new or corrected Construction Plans within thirty (30) days after receipt by the Developer of written notification of the rejection, accompanied by a written statement of the Authority specifying the respects in which the Construction Plans submitted by the Developer fail to conform to the requirements of this Section 3.2. The provisions of this Section 3.2 relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the Authority; provided, however, that in any event the Developer shall submit Construction Plans which are approved by the 988288.6 8 RESOLUTION NO. 00-21 Exhibit A Authority prior to commencement of construction of the Minimum Improvements. Approval of the Construction Plans by the Authority shall not relieve the Developer of any obligation to comply with the terms and provisions of this Agreement, or the provision of applicable federal, state and local laws, ordinances and regulations, nor shall approval of the Construction Plans by the Authority be deemed to.constitute a waiver of any Event of ` Default. If the Developer desires to make any material change in the Construction Plans after their approval by the Authority, the Developer shall submit the proposed change to the Authority for its approval. If the Construction Plans, as modified by the .proposed change, conform to the approval criteria listed in this Section 3.2 with respect to the original Construction Plans and do not constitute-a material modification to the scope, size, materials or use of the Minimum Improvements or to the site plan therefor, the Authority shall approve the proposed change. Such change in the Construction Plans shall be deemed approved by the Authority unless rejected in writing within ten (10) days by the Authority with a statement of the Authority's reasons for such rejection. Section 3.3. Commencement and Completion_of_ Construction. Subject to Unavoidable Delays, the Developer shall commence construction of the Minimum Improvements by March 1, 2000, or on such other date as the parties shall mutually agree in writing. Subject to Unavoidable Delays, the Developer shall have substantially completed the construction of Minimum Improvements by March 15, 2002. Time lost as a result of Unavoidable Delays shall be added to extend this date beyond March 15, 2002, a number.of days equal to the number'of days lost as a result of Unavoidable Delays. All work with respect to the Minimum Improvements to be constructed or provided by the Developer on the Development Property shall be in conformity with the Construction Plans as submitted by the Developer and approved by the Authority. Section 3.4. Certificate of Comoletion. Promptly after.the Developer has demonstrated to the reasonable satisfaction of the Authority that the Minimum Improvements have been completed in accordance. with the provisions of this Agreement, including the Construction Plans approved by the Authority, the Authority will furnish the Developer with a Certificate of completion, in substantially the form set forth in Exhibit G attached hereto. Such Certificate of Completion shall be a conclusive determination of satisfaction of the agreements and covenants in this Agreement with respect to the obligations of the Developer to construct the Minimum Improvements. If the Authority shall refuse or fail to provide a Certificate of Completion in accordance with the provisions of this Section 3.4, the Authority shall, within ten (10) days after 988288.6 9 RESOLUTION NO. 00-21 Exhibit A written request by the Developer, provide the Developer with a written statement indicating in adequate detail in what respects the Developer has failed to complete the Minimum.Improvements in accordance with the provisions of this Agreement, or is otherwise in default under the terms of this Agreement, and what measures or acts it will be necessary, in the opinion of the Authority, -_for the Developer to take or perform in order to obtain such Certificate of Completion.' The Authority-shall have the right to inspect all of the books and records of the Developer to verify the accuracy of the representations made by the Developer in Section 2.2(11) and 6.1 hereof. Section 3.5. Dayt-ons Minimum I=nvP.M= . The Developer represents to the Authority that it has received assurances from the owner of the Daytons store located on the Adjacent Development Property that tie owner of the Dayton's store will construct the Daytons Minimum Improvements on the Adjacent Development Property by June 30, 2002, at a cost of at least $8,000,000, and that as a result thereof the combined market value of the Development Property and the Adjacent Development Property will be at least $75,000,000 as of January 2, 2002. The Developer understands that the Authority will not issue the Tax Increment Note unless and until the Authority receives evidence satisfactory to the Authority that the Daytons Minimum Improvements have been completed and that the Development Property and the Adjacent Development Property have a combined market value of at least $75,000,000. 988288.6 10 RESOLUTION NO. 00-21 ARTICLE IV ASSESSMENT AGREEMENT Exhibit A .Section 4.1. FXer..ution of Assessment Agreement. The Developer agrees to, and with the Authority shall execute an Assessment Agreement in substantially the form attached hereto as 'Exhibit H as authorized by Minnesota Statutes, Section 469.177, Subdivision 8, which specifies the Assessor's Minimum Market Value for the Development Property and the improvements located thereon and the Minimum Improvements for calculation of real property taxes. Specifically, the Developer shall agree to a market value for the Development Property which will result in an assessed value as of aanuary.2, 2002), of not less than $45,0001000 (the Assessor's Minimum Market Value). Nothing in the Assessment Agreement shall limit the discretion of the assessor to assign a market.value to the Development Property in excess,of such Assessor's Minimum Market. Value nor prohibit the Developer from seeking through the exercise of legal or administrative remedies a reduction in such market value for property tax purposes, provided however, that the Developer shall not seek a reduction of such market value below the Assessor's Minimum Market value in any year so long as the Assessment Agreement shall remain in effect. The Assessment Agreement shall remain in effect until December 31, 2007, for taxes payable through the year 2007 (the "Termination Date"). The Assessment Agreement shall be certified by the Assessor for the City as provided in Minnepot; ,Statutes, Section 469.177, Subdivision 8,' upon a finding by the Assessor that the Assessor's Minimum Market Value represents a reasonable estimate based upon the plans and specifications for the Minimum Improvements to be constructed on the Development Property and the market value previously assigned to the Development Property. Pursuant to Minn sntA 5tatute'l, Section 469.177, Subdivision 8, the Assessment Agreement shall be filed for record in the office of the county recorder or registrar of titles of Hennepin County, and such filing shall constitute notice to any subsequent encumbrancer or purchaser of the Development Property, whether voluntary or involuntary, and such Assessment Agreement shall be binding and enforceable in its entirety against any such subsequent purchaser or encumbrancer, including the holder of the any mortgage of the Development Property. Section 4.2. Beal Property Taxes. (1) The Developer acknowledges that it-is obligated under law to pay all real property taxes payable with respect to the Development Property and pursuant to the provisions of the Assessment Agreement and any other statutory or contractual duty that shall accrue subsequent to the--date of its acquisition of title to the Development Property and until the Developer's obligations have been assumed by any-other person with the 988288.6 11 1 RESOLUTION NO. 00-21 Exhibit A written consent of the Authority and pursuant to the provisions of this Agreement. (2) The Developer agrees that prior to the Termination Date (a) It will not seek administrative review or judicial review of the applicability of any tax statute relating to the taxation of real property constituting the Development Property determined by any tax official to be applicable to the Development Property or the Developer or raise the inapplicability of any'such tax statute as a.defense in any proceedings, including delinquent tax proceedings; provided, however, "tax statute" 'does not include any local ordinance or resolution levying a tax; (b) It will not seek administrative review or-judicial review of the constitutionality of any tax statute relating to the taxation of real property contained on the Development Property determined by any tax official to be applicable'to the Development Property or the Developer or raise the unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (c) it will'not seek any tax deferral or abatement, either presently or prospectively authorized under Minnesota Statutes, Section 273.86, or any other state or federal law, of the taxation of real property constituting the Development Property between the date of execution of this Agreement and the Termination Date. (3) The Developer agrees that the provisions set forth in paragraph (2) above shall be included in every lease or operating agreement covering any portion of the Development Property, which provisions will bind the tenant or operator with respect to such provisions. 988288.6 12 RESOLUTION NO. 00-21 ARTICLE V DAMAGE, DESTRUCTION OR CONDEMNATION Exhibit A . Section 5.1. Damage. Destruction or Condemnation. In the event that title to and possession of the Development Property or any material part thereof shall be taken in condemnation or by the exercise of the power of eminent domain by any governmental body or other person (except the'City) or in the event that the portion of the Project located in the Development Property is damaged or destroyed by fire or other"casualty, the Developer shall, with reasonable promptness after such taking or damage, notify the Authority as to the nature and extent of such taking or damage. Upon receipt of any condemnation award or insurance proceeds the Developer shall elect to either: (a) use the condemnation proceeds or insurance proceeds to reconstruct the improvements located on the Development Property to substantially the same condition as they existed prior to such damage, destruction or condemnation; or (b),pay to the Authority out-of such proceeds the present value of the sum of the real property taxes which would have been assessed upon the Development Property between the date of such condemnation or destruction and the Termination Date, such sum to be discounted to the date of payment to the Authority at a discount rate of 8.00k per annum.. i 988288.6 13 1 RESOLUTION NO. 00-21 Exhibit A ARTICLE VI TAX INCREMENT ASSISTANCE; PAYMENTS TO AUTHORITY Section 6.1. P_renonditions to Issuance of Tax Increment ).vote. The Developer will undertake and construct the Eligible _.Improvements on the Development Property at a cost of not less than $2,900,000. In order to assist with-the costs of the Eligible Improvements, the Authority agrees to provide tax increment assistance to the Developer as further set forth in this Agreement. The tax increment assistance shall be paid to the Developer on a pay-as-you-go basis and the principal amount shall be equal to the lesser of (a) $2,900,000, or (b) the capital costs of the Eligible Improvements. The tax increment assistance shall be paid on the terms and conditions set forth in Section 3.2 below; provided however, that the Authority shall be under no obligation to provide any•of the assistance contemplated in this Agreement or to issue the Tax Increment Note until satisfaction-of the following conditions precedent: (a) The Developer has prepared and provided a copy to the Authority of the Construction Plans for the Minimum Improvements; (b) The Developer has obtained all necessary permits, licenses, and authorizations necessary to commence and complete the construction of the Minimum Improvements; (c) The Authority has received evidence satisfactory to it that, upon substantial completion of the Minimum Improvements, the Development Property and the Adjacent Development Property will, upon substantial completion of the Daytons Minimum Improvements, have a total aggregate market value of at least $75,000,000; (d) The Developer has paid all of the Legal and Administrative Expenses; (e) The Developer shall be in material compliance with all the terms and provisions of this Agreement; (f) The construction of the Minimum Improvements-is completed, and the Authority has issued the Certificate of Completion pursuant to Section 3.4 hereof; (g) The Development Property_ is at least 75% leased to Eligible Tenants pursuant to leases having remaining terms at the time of issuance of the Note of not less than 3 years, and Dayton's, Penny's, Sear's and Kohl's have executed leases or operating agreements with respect to the Adjacent Property at the time of issuance of the Note for remaining terms of not less than 3 years; 988288.6 14 RESOLUTION NO. 00-21 Exhibit A (h) The Developer shall have spent at least $13,000,000 of its equity to pay the costs of the Minimum Improvements;. (i) The Assessment Agreement is recorded in the Hennepin County Recorder's office; (j), The City has approved a planned unit development for the Development Property and received evidence acceptable to it that provision has been made for adequate parking for the Project; and (k) The Authority has received an MAI appraisal from a nationally recognized expert in regional mall valuation showing the combined market value of the Development Property and the Adjacent Development Property at not less than $75,000,000; and (1) The Developer shall have closed on the financing outlined in the financing commitment attached hereto as Exhibit L. Section 6.2. 'ax fn[•rement Reveniif- WotP,,. (1) Upon satisfaction of the conditions in Section 6.1 hereof, the Authority will reimburse the Developer for the lesser of $2,900,000 or the costs of the Eligible Improvements through the issuance of the Authority's.-Tax Increment Revenue Note in substantially the form attached to this Agreement as Exhibit I. (2) The unpaid principal amount of the Note shall bear simple, non-compounded interest from the date of issuance of the Note at the rate of 8.00% per annum. Interest shall be computed on the basis of a 360 day year consisting of twelve (12) 30-day months. (3) The principal,of the Note and interest thereon shall be payable solely from Tax Increments. On each Note Payment Date, and subject to the provisions of the Note, the City shall pay, against the accrued and unpaid interest then due on the Note and then to reduce the principal -of the Note, the lesser of (a) 80% of any Tax Increments received by the Authority during the preceding 6 months; or (b) $650,000. (4) Notwithstanding anything herein in the Note to the contrary, the Authority shall be under-no obligation to apply or pay the Tax Increments to the payment of the Note any earlier than 30 days after it has received-the Developer's-statement required by paragraph (3) above. Any interest accruing on Tax Increments held by the Authority pending the Note Payment Dates or receipt of such statement from the Developer shall accrue to the benefit of the Authority. 988288.6 is 1 RESOLUTION NO. 00-21 Exhibit A (5) The Note shall be a special and limited obligation of the Authority and not a general obligation of the Authority, and only Tax Increments shall be used to pay the principal of and interest on the Note. If, on any Note Payment Date, the Tax Increments for the payment of the accrued and unpaid interest on the Note are insufficient for such purposes, the difference shall __be carried forward, without interest accruing thereon, and shall be paid if and to the extent that on a future Note Payment'Date there are Tax Increments in excess of the amounts needed to pay the accrued interest then due on the Note. (6) The Authority's obligation to make payments on the Note on any Note Payment Date or any date thereafter shall be conditioned upon the requirement that (A) there shall not at that time be an Event of Default that has occurred and is continuing under this Agreement and (B)' this Agreement shall not have been terminated pursuant to Section 8.2(b). (7) The Note shall be 'governed by and payable pursuant to the additional terms thereof, as set forth in Exhibit I. In the event of any conflict between the terms of the Note and the terms of this Section 6.2, the terms of the Note shall govern. The issuance of the Note pursuant and subject to the terms of this Agreement, and the taking by the Authority of such additional actions as bond-counsel for the Authority may require in connection therewith, are hereby authorized and approved by the Authority. Section 6.3. 112P of Tax Increme=. The Authority and the City shall be free to use the Tax Increments, other than those to which the Developer is entitled pursuant to the provisions of Section 6.2 hereof, for its administrative expenses and for any other purpose for which the Tax Increments may lawfully be used pursuant to applicable provisions of the Minnesota law.- The City and Authority shall have no other financial participation in the Project other than as specifically, set forth herein. Any utility relocation, street improvements or other improvements which are not included as Eligible Improvements, the costs of which may be reimbursed, in whole or in part, with Tax Increments, shall be solely at the expense of the Developer. Section G.A. Business Suba dy Act. (1) In order to satisfy the provisions of Minnesota Statutes, Sections 116J.994 (the "Business Subsidy Act"), the Developer acknowledges and agrees that the amount of the "Business Subsidy" granted to the Developer under this Agreement is $2,900,000 and that the Business Subsidy is needed because the Project is not sufficiently feasible for the Developer to undertake without the Business Subsidy. The Tax Increment District is a "redevelopment" district and the public purpose of the Business Subsidy is to encourage the construction of necessary public improvements and to redevelop blighted areas and 988288.6 16 01/14/00 FRI 16:27 FAX 905 6629616 - TALISMAN COMPANIES LLC RESOLUTION NO. 00-21 Exhibit A . Q006 replace structurally substandard buildings. The Developer agrees that it will meet the following goals (the "Goals"): It will create at least full time jobs in connection with the development of the Development Property at an hourly wage of at least $ *4 , 0 a per hour within two years from the "Benefit Date", which is the earlier of (a) the date on which the Eligible Improvements are completed, or (b) the date on which a business occupies the Development Property, as improved by the Minimum Improvements; (2) If the Goals are not met, the Developer agrees to repay all or a part of the Business Subsidy to the Authority, plus interest ("Interest") set at the implicit price deflator defined in Minnesota Statutes, Section 275.70, Subdivision 2k accruing from and after the Benefit Date, compounded•semiannually. if the Goals are met in part, the Developer will repay a portion of the Business Subsidy (plus Interest) determined by multiplying the Business Subsidy by a fraction, the numerator of which is the number of jobs in the Goals which were not created at the wage level set forth above and the denominator of which is 93 (i.e. number of jobs set forth in the Goals). The Developer agrees to continue its operations on the Development Property for at least five years after the Benefit Date. (3) The Developer agrees to (i) report its progress on achieving the Goals to the Authority until the Goals are met, or the Business Subsidy is repaid, whichever occurs earlier, (ii) include in the report the information required in Subdivision 7 of the Business Subsidy Act on forms developed by the Minnesota Department of Trade and Economic Development, and (iii) send -completed reports to the Commission of the Department of Trade and Economic Development and to the Authority. The Developer agrees to file these reports no later than March 1 of each year commencing March 1, 2000, and within 30 days after the deadline for meeting the Goals. The Authority agrees that if it does not receive the reports, it will mail the Developer a warning within one week of the required filing date. If within 14 days of the post marked date of the warning the reports are not made, the Developer agrees to pay to the Authority a penalty of $100 for each subsequent day until the report is filed up to a maximum of $1,000. Section 6.5. p3N3L9 to orit-,z. In consideration of the assistance given to the Developer pursuant to this Agreement, the Developer agrees to pay the Authority within 10 days of receipt, the first $50,000 plus one half of any amount over $50,000 of any percentage rents received by the Developer or any of its affiliates in each calendar-year pursuant to Section of the agreement attached hereto as-Exhibit K (the "Daytons Agreement"). The Developer further agrees that, without the prior written consent of the Authority, it will not amend the Daytons Agreement or take any other action which would reduce the amount of the percentage rent set forth in the Daytons Agreement "988288.6 17 RESOLUTION NO, 00-21 Exhibit A or take any other action that would reduce the likelihood of such percentage rents being paid to the Developer. Section 6.6. Tax Deferrals oX.Abatements• (1) The Developer agrees as follows: (a). It will not seek administrative review or judicial review of the applicability of any tax statute relating to the taxation of real property contained on the Development Property determined by any tax official to be applicable to the Development Property or the Developer or raise the inapplicability of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (b) It will.not seek administrative review or judicial review of the constitutionality of any tax statute relating to the taxation of the Development Property determined by any tax official to be applicable to the Development Property or the Developer,-or raise the unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; provided, however, "tax statute" does not include any local ordinance or resolution levying a tax; (c) It will not seek any tax-deferral or abatement, either presently or prospectively authorized under Minnesota Statutes, Section 469.181, or any other State or federal law, of the taxation of the Development Property between the date of execution of this Agreement and the Termination Date. (2) The Developer agrees that if any owner or tenant of the Adjacent Property takes any of the actions set forth in paragraph (1) above with respect to the Adjacent Property, the Authority may suspend its payment of Tax Increments to the Developer under the Note and escrow all or any part of the Tax Increments until such matters are finally resolved. Any suspension or escrow of the Tax Increments pursuant to this clause (2) will only occur if (a) the Authority determines that the proceedings could reduce the annual collection of Tax Increment to less than $650,000, or (b) it could require the Authority or the City to abate or refund amounts which, when deducted from the Tax Increment received during the year in question, would result in less than $650,000. The amount suspended or escrowed shall be only the amount necessary to preserve the annual collection of Tax Increments, after reduction by any amount in dispute, to $650,000. Any escrowed Tax Increments may be used to pay any amounts required to be abated and shall be deemed to be a payment of principal under the Note. 988288.6 18 RESOLUTION NO. 00-21 ARTICLE VII PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER; INDEMNIFICATION Exhibit A Section 7.1. Status of Developer: Transfer of Substantially _All Assets. As'security for the obligations of the Developer under this Agreement, the Developer represents and agrees that prior to the Termination Date, the Developer will maintain its existence as a Minnesota entity and shall not consolidate with or merge into another entity and shall not dissolve or otherwise dispose of all or substantially all of its assets; provided that the Developer may consolidate with or merge into another corporation or sell or otherwise transfer to a partnership or corporation organized under the laws of one of the United States, or an individual, all or substantially all of its assets as an entirety and thereafter dissolve and be discharged from liability hereunder if the transferee partnership, corporation or individual assumes in writing all of the obligations of the Developer under this Agreement and the Assessment Agreement. Section 7.2. Probjb i.t o-Against Transfer Of Property and Assignment of Agreement. For the foregoing reasons the Developer represents and agrees that prior to the Termination Date: (a) Except only by way of security for, and only for, the purpose of obtaining financing necessary to enable the Developer or any successor in interest to the Development Property, or any part thereof, to perform its obligations with respect to constructing the Minimum Improvements under this Agreement, and any other purpose authorized by this Agreement, the Developer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to the Agreement or the Development Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the Authority. (b) The Authority.shall be entitled to require, except as otherwise provided in the Agreement, as conditions to any such approval that: W Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Authority, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer. 988288.6 19 RESOLUTION NO. 00-21 Exhibit A (ii) Any proposed transferee, by instrument in writing satisfactory to the Authority, shall, for itself and its successors and assigns, and expressly for the benefit of the Authority, have expressly assumed all of the obligations of the Developer under this Agreement and agreed to be subject to all the conditions and restrictions to which the Developer is subject (unless the Developer agrees to continue to fulfill those obligations, in which case the preceding provisions of this Section 7.2(b)(ii) shall not apply); provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Development Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed•to in writing by the Authority) deprive the Authority of any rights or remedies or-controls with respect to the Development Property or the construction of the Project; it being the intent of the parties as expressed in this Agreement that (to,the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Development Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the Authority of or with respect to any rights or remedies or controls provided in or resulting from this Agreement with respect to the Project that the Authority would have had, had there been no such transfer or change. In the absence of specific written 'agreement by the Authority to the contrary, no such transfer or approval by the Authority thereof shall be deemed to relieve the Developer, or any other party bound in any way by this Agreement or otherwise with respect to the construction of the Project, from any of its obligations with respect thereto. (iii) There shall be submitted to the Authority for review and prior written approval all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Development Property governed by this Article IX. Section 7.3. Ap rovala. Any approval of a transfer of interest in the Developer, this Agreement, or the-Development -Property required to be given by the Authority under this Article VII may be denied only in the event that the Authority reasonably determines that the ability, of the Developer to perform its obligations under this Agreement, or the overall financial i 988288.6 20 RESOLUTION NO. 00-21 Exhibit A security provided to the Authority under the terms of this Agreement, or.the likelihood of the Minimum Improvements being successfully constructed and operated pursuant to the terms df this Agreement, will be materially impaired by the action for which approval is sought. 1 988288.6 21 RESOLUTION NO. 00-21 ARTICLE VIII EVENTS OF DEFAULT Exhibit A Section 8.1. Events of Defau?.t Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean whenever it is used in this -'Agreement any one or more of the following events: (a) Failure by the Developer to timely pay any ad Yam real property taxes assessed with respect to the Development Property or to reimburse the Authority for Legal and Administrative Expenses; (b) Failure by the Developer to commence and complete construction.of the Minimum Improvements pursuant to the terms, conditions and limitations of Article III; (c) Failure by the Developer to reconstruct the portion of the Project ',located on the Development Property when required pursuant to Section 5.1; (d) Transfer of any interest in the Developer or the portion of the Project located on the Development Property in violation of the provisions of Article VII; (e) Subject to Unavoidable Delays, failure of the Developer to observe or perform any other covenant, condition, obligation or agreement'-on its part to be observed or performed under this Agreement, including but not limited to the provisions of Section 6.4 hereof; or (f) If the Developer shall (A) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United Stfates Bankruptcy Act of 1978, as amended or under any similar federal or state law; or (B) make a general assignment for the benefit of its creditors; or (C) admit in writing its inability to pay its debts generally as they become due; or (D) be adjudicated as bankrupt or insolvent; or if a petition or answer proposing the adjudication of the Developer, as'a bankrupt or its reorganization under any present or future federal bankruptcy act or any similar federal or state law shall be filed in any court and such petition or answer shall not be discharged or denied within sixty (60) days after the 999289.6 22 RESOLUTION NO. 00-21 Exhibit A filing thereof; or a receiver, trustee or liquidator of the Developer, or of the Project, or part thereof, shall be appointed in any proceeding brought against the Developer, and shall not be discharged within sixty (60) days after such appointment, or if the Developer, shall consent to or acquiesce in such appointment. (g) The Holder of any mortgage-on the Development Property, or any improvements thereon, or any portion thereof, commences foreclosure proceedings or accepts a deed in lieu of foreclosure as a result of any default under the applicable mortgage documents. (h) on any date on or after January 2, 2002, the combined Market Value of the Development Property and Adjacent Development Property is less than $75,000,000; (i) An Anchor Tenant vacates the Adjacent Development Property and is not replaced by another nationally recognized retailer acceptable to the Authority within 12 months; (j) More than 15% of the Development Property is leased or otherwise occupied by any businesses which is not an Eligible Tenant; (k) any part of the Development Property is leased in violation of the covenant in Section.2.2, clause (14) hereof; Section 8.2. em-diPa on Def.a.l Whenever any Event of Default referred to in Section 8.1 occurs and is continuing, the Authority may take any one or more of the following actions after the giving of thirty (30)'days, written notice to the Developer, but only if the Event of Default has not been cured within said thirty (30) days, or, if said Event of Default cannot reasonably be cured within the time, the Developer fails to give assurances reasonably satisfactory to the Authority that the Event of Default will be cured within a period of time reasonably acceptable to the Authority, but in any event not to exceed 90 days; (a) The Authority may suspend its performance under this Agreement until it receives assurances from the Developer, deemed adequate by the Authority, that the Developer will cure its default and continue its performance under this Agreement. (°b) The Authority may cancel and terminate the Agreement. 988288.6 23 RESOLUTION NO. 00-21 Exhibit A (c) The Authority may take any action, which may appear necessary-or desirable to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. Section 8.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Authority'is intended to be -exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now.or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may-be'deemed expedient. Section 8.4. -Nn Implie- Waiver. In the event any agreement contained in this Agreement should-be breached by any party and thereafter waived by any other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 8.5. greeM=t to p, av AttorWv 1 s Fees aTId_Exnense$. Whenever any Event of Default occurs and the Authority or City shall employ attorneys or incur other expenses for the collection- of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of the Developer herein contained,'-the Developer agrees that it shall, on demand therefor, pay to the Authority or City the reasonable fees of such attorneys and such other expenses so incurred by the Authority or City. Section 8.6-. Tnd mni fi cati o~+ of Aim on y armed Citv_.- (1) The Developer releases from and covenants and agrees that the Authority and the'City, their governing body members, officers, agents, including the independent contractors, consultants and legal counsel, servants and employees thereof (hereinafter, for purposesjof this Section, collectively the "Indemnified Parties") shall not be liable for and agrees to indemnify and hold harmless the Indemnified Parties against any loss or damage to property'',or any injury to or death of any person occurring at or about or resulting from any defect in the Project to the extent not attributable to the negligence of the Indemnified Parties. (2) Except for any willful misrepresentation or any willful or wanton misconduct of the Indemnified Parties, the Developer agrees to protect and defend the Indemnified Parties, now and forever, and further agrees to hold the aforesaid harmless from. any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising 988288.6 24 RESOLUTION NO. 00-21 Exhibit A from the actions or inactions of the Developer (or if other persons acting on its behalf or under its direction or control) under this Agreement, or the transactions contemplated hereby or the_acquisition, construction, installation, ownership, and operation of the Project; provided, that this indemnification shall not apply to the warranties made or obligations undertaken by the City or Authority in this Agreement. (3) All covenants, stipulations, promises, agreements and obligations of the Authority contained herein shall be deemed to be the covenants,.stipulations, promises, agreements and obligations of the Authority and not of any governing body member, officer, agent, servant or employee of the Authority or the City, as.the case may be. 1 988288.6 2 5 RESOLUTION NO. 00-21 Exhibit A ARTICLE IX ADDITIONAL PROVISIONS 1 Section 9.1. Restrictions on Use. The Developer agrees for itself, its successors and assigns and every successor in .interest to the Development Property, or any part thereof, that -the Developer and such successors and assigns shall use the Development Property as a retail shopping mall. Section 9.2. Conflicts of_'Intereat. No member of the governing body or other official of the Authority or the City shall have any financial interest, direct or indirect, in this Agreement, the Development Property or the Project, or any contract, agreement or other transaction contemplated to occur or be undertaken thereunder or with respect thereto, nor shall any such member of the.governing body or other-official participate in any decision relating to the Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. No member, official or employee of the Authority or the City shall'be personally liable to the City in the event of any default orbreach by the Developer or successor or on any obligations under the terms of this Agreement. Section 9.3. Titles of Articles and Sections.. Any titles of the several parts, articles and sections of the Agreement are inserted for convenience of reference only-and shall be disregarded in construing or interpreting any of its provisions. Section 9.4. Notices and Demands. Except,as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by any party to any other shall be sufficiently given'or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and (a) in the case of the Developer is addressed to or delivered personally to: Talisman Brookdale, LLC 1500 San Reno.'Avenue Suite 135, Coral Gables,, Florida 33146 (b) in the case 'of the Authority is addressed to or delivered personally to the Authority at: Brooklyn Center Economic Development Authority 6301 Shingle Creek Parkway ' Brooklyn Center, Minnesota 55430 ATTN: Executive Director 988288.6 26 RESOLUTION NO. 00-21 Exhibit A or at such other address with respect to any such party as that party may, from time to time, designate in writing and forward to the other, as provided in this Section. Section 9.5. Counterparts! This Agreement may be executed in any number of counterparts, each of which shall constitute one _ and the same instrument. Section 9.6. 'Law Dove g. This Agreement will be governed and construed in accordance with the laws of the State. Section 9.7. E„ iration_. This Agreement shall expire on the Termination Date unless earlier terminated or rescinded in accordance with its terms. Section 9.8. Provisions SUrvivinq Rescission or F, ration. Sections 8.5 and 8-.6 shall survive any rescission, termination or expiration of this Agreement with respect to or arising out of any event, occurrence or circumstance existing prior to the date thereof. 1 988288.6 27 RESOLUTION NO. 00-21 Exhibit A IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and on its behalf and the Developer has caused this-Agreement to be duly executed in its name and on its behalf, on or as of the date first above written. BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director This is a signature page to the Development Agreement dated , 2000, by and between the Brooklyn Center Economic-Development Authority and Talisman Brookdale, LLC 988288.6 28 RESOLUTION NO. 00-21 Exhibit A TALISMAN BROOKDALE, LLC By Its general partner By Its This is a signature page to the Development Agreement dated 2000, by and between the Brooklyn-Center Economic Development Authority and 'talisman Brookdale, LLC 988288.6 29 1 RESOLUTION NO. 00-21 Exhibit A STATE OF MINNESOTA ) ) : ss COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of 2000, by - and the President and the Executive Director respectively, of the Brooklyn Center Economic Development Authority. Notary Public 1 988288.6 30 RESOLUTION NO. 00-21 Exhibit A STATE OF MINNESOTA ) ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2000, by ' . the. of the general partner of Talisman Brookdale,'"LLC, a limited liability company. Notary Public 1 988288.6 3 1 RESOLUTION NO. 00-21 Exhibit A (EXHIBIT A Legal Description of Tax !Increment Financing District No. 03 I 988288,6 A-1 RESOLUTION NO. 00-21 Exhibit A EXHIBIT B Legal Description of Development Property [Insert legal description of the Center Mall Property] I 988288.6 B-1 01/14/00 FRI 16:30 FAX 305 6629616 TALISMAN COMPANIES LLC RESOLUTION NO. 00-21 - Doc B26 1 T C DE$CRiIPYI<ON OF ELIGIBLE MROVEINENTS IM 019 Exhibit A The following are improvements scheduled to be included in the redevelopment of the Brookdale Center project that would not be normally be auticipated as pan of the renovation project. Acquisitions: Purchase of Tract C from Mervyns of Califottna for the additional land required to construct the west new addition. Purchase of Tract D from Mervyn of Ca!'ifornia for the additional land required to construct the 10,000 SF retail space on Center on Tract D. Purchase of the J.C.PENNY building to allow for the demolition of the TBA building and to control the building use for the future. Offske: Install a new traffic signal system at the 566 avenue entrance to the site. Site A Buming Demolition: The existing J.C PENNY automotive outer %Admg will be demolished. Thu existing west area retail building with of SEARS will be demolished so that the am can be redesigned to accommodate new retail, restaurant and food court areas. Demolition of existing building ceiling and structural systems to allow for the construction of new skylights. Demolition of ausb ag asphalt parlang lot pavement area to accommodate the new west end expansion along with the associated earthwarkto aeoonnmodate the new expansion grades. Removal of the asbestos containing materials from the tenant spaces and the common areas. VtMities Removal of the existing utilities around the west end and the new North side entrance to accommodate the center expansions and to replace older services m these areas. Intercept the pasting storm sewer lines that currently discbairge directly into shingle Creek and reroute the lines with new piping and structures to direct the North side storm water through edsting watershed onsite manhole to the new water purification systeno across Route 100. -Building Life Safety Systems Design and install a complete addressable Ste alarm system that will include the individual tenant spaces. Design and install a complete system for smoke evacmttion system for the mall common arras and provisions for the exhaust and supply are for the smart mtail tenant spaces. 0,-2- RESOLUTION NO. 00-21 Exhibit A EXHIBIT D Description of Minimum Improvements Reconfiguration of the existing space and improvements. in the Brookdale Mall, including the creation of open space and other improvements as described and depicted below: 988288.6 D-1 01/14/00 FRI 16:31 FAX 305 6629616 RESOLUTION NO. 00-21 TALISMAN COMPANIES LLC Exhibit A EKMPr D DESCYMMON OF BUM M IMp'RO'VFSRh' M Doc.1326 r Existing Center Coaamon MaU Areas: East Mall: Demolition of the existing cegcng system Install new skylight system. Install new bard ceiling and:fi*wg system Install new column endosim and tile finishes. Install new tenant demising piers. Install new bard floor tUe and base Finish paint or MW wall covering new &yvinD surbcss, Revise existing heating and cooling system to new caft configuration. insmll new designed %osks Install fountain feature Install interior landwapi ng Arcade (Mervyds-pamys) M&. Demolition of the existing ceiling system Install new skylight system. install new hard ceding and lighting system Insta new column enclosures and tat finishes. Install new tenant demising piers. install new bard floor the and bass finish paint or install wall covering new drywall =Am Revise casting heating and cooling system m new Ceiling configmtion. Instd new designed Idosks bstd fountain feature Install interior landscaping Central Mall: Demolition of the a fisting cuing system install new skylight system. Install new hard ceding and lighting system IwW new column enclosures and the finishes. ' Install new terwit demising piers. Install new hard floor the and base Finish paint or install wall covering new drywall surfaces. Revise existing heating and rooting system to new ceiling connfigwat on. New Construction: North We Entrance Maeeent to Daytona) Demolition of existing mail entratrce - Install new struct ual steel framing for addition. Install new metal roof deck Install new roofing system Install new entrance fagade feature materials. . z 021 s` D- Z. 01/14/00 FRI 16:31 FAX 305 6629616 VSOLUTION NO. 00-21 f TALISMAN COMPANIES LLC 1022 Exhibit . k Install new entrance doors. Install new Brookdale exterior sigaagG. Install new common area bard and acoustical ceding systems Irwa new lighting and cove CgWmg systeans. metal new HVAC systems for the added areas. Install near wail fmishes of drywall and finish paint. Install new tenant neutral pies. Install new hard Me Booting and base. Install ntelior landscaping South Side Entrance (adacem to Dayton) Denok4on of existing man entrance Install new structural steel ft mag for addition. Install new metal roof deck, Install new roofing system Install new entrance fiodle feature materials. InstaU new entrance doors. Install new Broakdale exterior signage. Install new common area bard and acousiical ceiling systems Install new lighting and cove lighting Systems. Install new HVAC systems for the added areas. Install new wall finishes of drywaU and frnM paint. Install new tenant neutral piers. Istan new had the flooring and base. Install interior landscaping West"Addition (North of SEARS) Demolition of eastmg maU entrance lava new stmewral steel fiamm for adds im Install new metal roof deck install new roofing system Install new entrance hide feature materials. Install now entrance doors. InstaU new Brookdale exterior ~gnage. Install new common area bard and acoustical ceiling systems Install new Ughting and cove lighting systems. Install new H VAC systems for the added areas. IM A new wall firashes of drywall and finish paint. InstaU new tenant neutral pers. Install new hard tUe flooring and base. Instal new designed ldodm land fountain feature LutaU interior landscaping Construct food cows tenant spaces Construct a food court with interior special finishes Furnish the food court with necessary tables and chairs. - 1 e 1 D.13 RESOLUTION NO. 00-21 - Exhibit A - ' EXHIBIT E Description of Daytons Minimum Improvements Remodeling of the Existing Daytons Store located in the Brookdale Mall, such remodeling to include at a minimum the following components: 988288.6 E-1 01/14/00 FRI 16:31 FAX 305 8629616 TALISMAN COMPANIES LLC 0024 RESOLUTION NO. 00-21 Exhibit A DoaB26 DESCREMON OF DAYTONS B04D UM EVtP'ROVFYMM The following are the minimum improvements that are expected to be performed by Daytons in their remodeling of the store. The Daytons intent is to redesign the =fire store for the wmerchandising WA reconfiguration of their store in order to update the store to the Dayton current standards. New ceiling layouts and materials New ce&g Iightiag layout. New or rO ished light fixmnw to conform to the new ceiling design. New drywall partitions and cefiiags to the new design. New aco fiW ceiling systems and the to the new design. Painting and wall coveting of walls and cohunas as required by the new store design. Remove and replace the existing flooring materials and install new to the new store design. Re-wire the store to the new construction requirements. Instd new cabinets and fixtures to the new store design. Revise the HVAC system to suit the new ceiling and wall configuration. Revise the binding to comply with the current code reguireanants as applied to the work required by the re- modeling of the store. 1 RESOLUTION NO. 00-21 Exhibit A AMENDED EXHIBIT F EXHIBIT F LIST OF ELIGIBLE TENANTS The listing of eligible tenants set forth in this exhibit are only those listed stores specifically set forth. Where a parent corporation is listed with a sub-listing of store names, only the stores specifically named in the sub-listing will be deemed eligible tenants. Those tenants identified as (pad site only) are eligible tenants on the pad sites, but are not eligible tenants within the mall itself. Redeveloper will be allowed up to 10,000 square feet of fast food actual tenant space to be located in the food court area without being counted for purposes of the limit on the percentage of space occupied by eligible tenants. (The following will be added to the list of eligible tenants as paid sites (not eligible within the mall itself. Marmaxx - TJ Max - Marshall's Designer Shoe Warehouse). Eligible tenants, including those on the list as eligible, for the 2 spaces of approximately 24,750 and 25,430 currently planned for Old Navy and Barnes & Nobles will include, for those spaces only, Borders, Walden Books, Bretano, Galyan's Dick's, ProBass, Best Buy, Circuit City, JoAnn Fabrics, Bed Bath & Beyond. For that specialty category space, the City will not unreasonably withhold consent for a specialty retailer/category dominant store of a quality equal to or better than those listed in this paragraph as eligible tenants for those 2 spaces. The Redevelopment Agreement would be changed on page 22, Section 8.10) from 85 to 80% as the requirement for occupancy by eligible tenants. . _ ~ w. Exhibit A. RESOLUTION NO. 00-21 _ VA Comte Sam CZMPOY so rdaap) X .c . .Aloe ~,~'~ub X .bad . pmericanEsB~~uees X ,rp~►a~a"`oa` - ..y A gosaw war X w - AMU) I r AMU" R ~ . ~N.iE1+eoAK►ed ~ X _ sye~ - X Pad" - twoea~a • - X 1 Sift su of *6 X vow wslrm son" VIPACM j As,'BonPaia Cotpan X ~ . Oct Cb*O 1 i, Wtlttoatt0 m►ir ' par X .RESOLUTION NO. 00-21 Exhibit A Ave& Corporadoa X 6odp M**&Pum rw Rw b Lavkmn w l.ifan& stove X Babbages, F. X COMMA ridso WW4, sWeaonka Babbagds X Game slop X Pkwx X Sotlwa>G 11G X Baby News auldmds Ikpattnaem Smra X t7b,mm%*OWL imawwuk wAv= vww lm Bachntan's X Fknwac Bachrach Clothing, Inc. X Maws appaael BA* Bay ROM OM Gm up X AWA Lonida X tarley's Fulna k Deialdng Sataaa X Famous AWntkr" X Jr. Hisssy+c X 306Amaioan Sara tAn11 X i'apaR=d X Bally Reall, to. X L lanspe. dioa (Division~8db►.Ige.) X BacamiBnterprisa X Aoee:roriesloost W360mb7,vroe Wh Word 8uaai X Bsc+cellno Condamw Corpomdon X meafdwomo*apmd. Bacnes & Noble, Ino. X Booksma B.D O,m X Samaaw" X ' ink X Bask3crRob6ins USA, Co. X CaadY = WMA"gnet (Divisim of Athad Dom" RewlinS USA) X Bath do Body Works X Cot Wwfbody a maas (Dividoaofir~msc8ands,ine.) X . BC Clothing Co. X Womm'sappacd cocoaishad X sbarkYt X Bed Bath & Beyond, ]ac. X ped & bsdb liam~ home dooarnampddtapa, adrxYachd~wa<s Bod suh a soyoaet X Cbefcen w X Ben & knYs Homa nde, Inc. X CAM44 w aeamlFotpat Benohwacmer Bob's X Rahn nafta Benson saviees Coip. X t (1NvkionofBsnanascroup.S.t.A.) X • ltnitodcobmsofBoneaon X BenihanA, Inc. X Raanat>nAan~ 9adbma X sum Daalm X X Bead" ~ Corp. X LW6KPAWP BcatiAtugipigedzm X Bes"Lunwouft X Boa Voyage LapSago & Gft X Ttiptin6 X Bontini, Ittc. X Aooegories►oouuma je.,etry, womea's/nwa,'a appasd. oboes Banini X Banuni$peRa X Burton's X X -Win lacm is angional mail. RESOLUTION NO. 00-21 - Exhibit A t~oma>u X Masr~ . X - st+ste~t► X Busby dt: IS=*w X t Bi~ld►•Kn~~ • - X • X tbod X X Blockbasttx Bn~ ~P X - Two team (pivkioaoTVieoeaalaea - X . S>o~ X X X Fast food X - X X X x"10'0` BloominSdaie's ~ ' • . X (Dtvidoa ot'Pcdaatod Depieuaa+t im.) . Bobby Rnbiao'sPlug farPJ X 8obbySabino'z88Qlxpeaa~ 20%Y lava* hm f PAU X X Books-A-hill ON Iac- X . Sookinnd X' Books&Co. X SoolaAMigio4 X _ X CotMbe~ukabbouaa.~ Bold= Group. L= X Borders X wsld"bools X y ba,1 BoRics Haitcarc X BoRioslia'usua- X , CatsDck X FJ~ Slande rt:W*Y Corp. X An w" DWwW CeMeea X PsgeJeweies+c X Wearcdsa Braun's P"Nom Corporalm - X arm* X Ada Sank' gkec tntamsdonal X B~ X Chili's COM do BK X CosYeaek X vMzft lJi,~teao'esiaktafl► X _ • opteatrcxfe X i WUdfise X Britches of Georgetoww Broadway Stasioatt► Restaurants lac. Btoedw►sy Piro Stoadway Sudon F'aia7ewdrylwateb~ - Brodkcy 3owdars Xno. X . ' X~ Witt foeate is a re~ip++i eap. - . Pace 3 . FROM : McComb Group, Ltd. Pty NO. 6123 Boo rc Jan. 19 2000 09: 42AM PS • RESOLUTION NO. 00-21 Exhibit A Brooks Bo%ccs X CM'idt'sawM=ww=W`s *Wd (Divw= ofMarks & Spot w Pk) X Books Bwthu; X ' Btnwds-Shot Fit Co., inc. X sb= _ Brueggas Corporation X. Sa3 srioa1 s0 ts~ X 13uea di Beppo, inc. RogmatIftm $utter5elds Developm~xtt, irtc. X Caahe,Inc. X wosaedsapptaot Cuba X LZIo Robin X Cadgao X Llwk Cd& Cimico Foods X Bakp4sslba=eh taaobc Gehrt► Cimioo X California Cafe Res<anrant Corp. X Rafbom AlnuuBmwving X Biaddwwk Orale X ca&DdRoy X . CaJifotrua Cafe B.rdc GrAt X• ' Napa Vapry GhUG X ' California Pizza Xitehen X (Division of &ndutw►% P4)$M SUM N do Co., tae X . CPK ASAP X Caltfw" r =a Kkdt= X Camelot Music Holdings Inc. X cwmddb" (DIVwMarkn taarp) X c m utot Mnsio _ X Spwe Music X wallMosie X candieman corp. X C30whM Candy $xpfcss•FmnAising Inc. X QA4&OMwowv~vvd ' Can'bou coffee Compw, Ina. • X CaM b rsWos bats ' Carmike Cinemas X uov of nvws Cxmlks X HOWN"d CGnaeod" X w>na~n,c x Carson Pirie Scow C0. X ruaitadbo& depataasmt stares (Divietoa of sab Iaooepaatod) X ' Bb's X eo"SwreParniwo odlay X Boaoo stow X C~honFatuitnrGGalkry X _ cum idn soar X _ Cartoon Cats, r.,P. X Besvh►;ssloodbaborS Cashmere Houso X CWWosWmcdVwomcds tip swL homo dwwA mpstdtapa TSB X Casual Comex Group, Ina. X W=n%mppwd X= WM lom In a r 0wAt stall. . FROM a McComb Group. Lt-de P} 1~. i b1~5 rd i an. ly omw w; 4,stn rb RESOLUTION NO. 00-21 Exhibit A (Divi:iafotL+t teoawtdo Fib Stt.) X AvQwd Max Woa~a X c wl cmw X cow corner won" X X Central SouthMudc Sales, hoc. X ieia 41.aa X seaadsb" X t~0"na tbasta<s Ceatrsl SL' w Theater Corp. X. ~ Champps Entexm umot. be. (pividonottJai"CmdRsa=M) Chdcy's steokery X (Divl+cia►oiGocb X Chevy's Macicaa Restatuatus X (DivWm of J W. CMM$ftdty P 9MM) X Navy'=Fr+ach Mex X Fazio X wrepwor>~ X Chioo's FAS, Inc. X Aoaesea;W*"w ae jewatgr. w0a» appow Chocolate Soup, Ina X ms's appud guts m Bernard Stores Corp. - X Fine lawatrylrrsad~a Church'sEnglislb Shoes,Ltd. X OWN C'wana drill, X ImimWafaim movkd►atq,-i X Y Claire's Accessories, Itte. Xaiortoosaaaaio+r Aecessay Pkft X Chieo's Aooeaoria X Des Mkcbolla X Ths h4 X Topbspd X X Aooasaor',atooetnmajawe(ry.~ea Comb stons Coffee people, lnc. Catlxbas~ebsrs coirae hvlg CotFea plaau" . tilariahu►'s Cole Vuion Corp. X ~ivisioo of ColaNatiorwt Caporsdar+) X Colonel Drys X wa~sa►'en'capparoi Colooal D.0 X sapbruA X Corrtads,Inc. X wo `sappaad ' CotaadlRadanotealla - X - >r>ua+so X T'•taa~a'.baa Cooper D. Co, X . coopa~s W~ X coape~s Wascbwoeid X Country Visions X CWWe kiteba WW, bane deoodbuapsldap.s, oftprk8bWA gyre4 coo" Cbmoa X tuP) Ssnta's Cb►u»t X County seat storm. bit. X . Wa'w"s ward 1 t X -wilt bate is srsgioael aasil. FRom : McComb Group, Ltd. Pt- M E -M0.. ~ 612 Jars. 19 2000 09: 43AM P7 RESOLUTION NO. 00-21 = Exhibit A copy S" X The Old Farmers Almusc owmat Stare X C tsbtroo & Bvclya, Ltd. X C raw sad Baird X qdas/gtamwsre, erttery*lwheaware, Mow doow&mWdnw ~ivisioa of Faro Madcat Destgna, X Crown Books Corp. X 13oatcsmres X crow books X sgwCrown Books X CxC, I= X Fast Wod YaYa's Pinae Broiled C X C1rt TrAu uies,Iao. X Fr«srlde X X Nadse X D.O.C. Opilcs Corp. X op* a D"Amioo & Ps t crs, Inc. ~'rs Campielb 1y'Amioo &Soas . VAmiooC=ft i^mtoo Cod= - Darda► Rcstturrants X . Bahama Bieeu X Oliva CW490 X - ` Red Lolueer X David's Bridal. SriaaVfbm+alweu Davlin's - X NomaDooor DB Dahlstrom X Womea's AP*W Deck The Walls X . Ardeonoa~terJftmai« Ashley Avayt COQoaihlao X Dock Too WAS X The owl Fame up X D=America Carp. X Rssi Rood. . • Btaelo-t3ycd Pa X aeanys X os ond's Facmal Wcar X Mwsappuel,beldaUfonrA war D Drllard's be. X - Discovery Rentil X I:dvcadosd►~ (pt Mm ofDhxov y Cowasooea ons, tae.) X D(aeovorythw►ad SWIG X The Nature Comm X Discovery Zone, Inc. X Mm Ytw eardoduaitioa Dtaeowayzone Fua AMM X Domain, Ina X aaim. gaatnudecds Dr. Tavel Opdcal Group X op"gvww Dr Tavd 0wHoarop" X shaaa X virioavah n X• X = Will locate is a regional mdL . FROM McComb Group, • Ltd. PHONE-NO. 61233600 re- Jan. 1y ;Mb M: 44HIM! ed - RESOLUTION NO. 00-21 Exhibit A nos r• se corp. x Fkld o« X AWCONV ~bla/freaW4 aw&WtWW, eelebdiyla m manoabQ'a Dunham's A*Ici m Corp. X sponft tdkwcw TrAStCr4 1'bin, $pOrt3 _ _ Spo~iag ~ . (DlvbW ofAmaian Reng (hoop, ju-) Hatbie 104 x Rosanaaotc%= tiff" t akn Reams X . Cwfidit RSUWM piPub X Peppaoai cmlt iulian 8ieuo x Eby+'s 3po&g Goods x spocft 1w0w Pme Barren, Inc, x *.ddw=e* sp PMA home dooodlamps/d"" (D,ruka of 30%4 be.) x A.KA.Bdd~oBavcr . EddiesawBan x Bdd•ICBfIfC~ ~Ott4Wq! x Edison, BZO&US Stom Inc. x umw mmaa% do" 5-74 SMps x Balaerr/tm& X CODA x J. Ri~iass x ]1N/JaoS West x Oak= X REMU&w$ &TaA x SLifty`a x Wildww x Egghead X~ Eilm Frslmr, Ins X womeo's apparel. w J"ft Elocwonics Boutique Holdings Corp. X t;ampaaxdmttwala• nx x Stop'N Save 34ware x T"Eft aoaiaBWA40 x Walden Sottwaa x x X X Empodum Luggage Co. X ate, wKdng &+p Uw8e X ftcmava 8undde x w "Po wxelom x Bndieott Johnsson Corp. X -shoes Faaha dt Son Stws X - Bourtsiument Manga "M $erv ok Inc. X Allay cwteald& oa,d dualka Cbalw" X awpi x Esprit de carp x Woaiai't eppmt X a wM bane is a resi w nQL e . wn RESOLUTION NO. 00-21 - CabWAdGWY ' atcom X paaia~dbads :sw Sb an R a ~ Ed= W1aa lntarion'la~c• wama►Y ' iw , Ethyl M. ChOC4lates+ fie' X y,t,Kac Evans' Lu' X E,n~:Bridaldc'Fashi~s ~aan~i~wdgr~a - X . cad SWIM. Evea~tt wonia►'s aQp!~ E got Wsior' bp' X X UPS g,lyPoasatts X • 1y Fann~ec X , T*4peoFte X . X . . X SO~~a ice' gAO. Sohwatt X . ~p~,~onot>i~ I yna+tOwn X. Famous-$arc Cowrw X lp~onotMsy~~ X Fxa~~ X. • (piviSian pt~iboild Cutid7 Cam) X , FaaayPa~ X rat'Nes~Y X Fat7'aa~Y X FiestaI3aiicSalons.Inc. - ~reo S m-1a ' 660 ;I Ficst nC°~- X Inc. X Mo X Fio~sl~tia+~10°Rha`ya`Da°N"'t X rtmusai~s MAW of Am dw,Yt~c. paoat$4 X eya * TorBy¢s 4pticai.Iac. X Foramen 8c Cbs1c o£Mint►easota ~L I w..4 v2. Ttfmd tKIA"1 nCLom uroups 4•ca rnu ras. Exhibit A RESOLUTION NO: 00-21 Fox noto..lec.. - • X ~ x - FtcdMayctJaa►clets,Iaa. X p~etawo> r (DivbtoaoEplrodtvtoiw.laa X Bavetajr ~swdws X Eoac~a~rdeac X ZedMoyakwcum X skmalmum X dell" Frederick's of Hollywood Stara. I= X ms's Fjedm,$ tna . X F'slawet«ic X • Ag Reiy X PrawdCaf bc- X ~t Fuddruekers.ino. X Fun Faatoty, Ins. X t~ntowd Yat'lt X . Faoeory X 7uaCle Fm Yo 4&0 s Franco lw- E Fundction Junction, br- X X X (3&0 sbopc, Im X 1e appal 0&0 X X pot.vdoo to+my"Ia G.W. gramub ment X X J C ra4cs 1.C.Tsftvww X Gabba m pmimm & Daisy 5adlo X Gadzoolcs, InC' cu•,pyl,aon's/woana~a sppaial► eutloi~ sty Galyaa's Trading C U't"d'6 Ca l wea (piv~ioaot"EaeLtmitod,b►e~ • X w~st°osa"°'j°"rdry Gaatos,'bno. • X t3aamt - - R . Oaaboe X - aP, ho. X Ctw'1+►'s'~'"r0" arc. IMMR A& X Gap 9* X . 'mat' X - GapKidefSaby Oap OWNavy X cm4cslb* Coeur"" (3ardcaBotanika ° ~,t~ahdat~► Gardea cf Edg1 X tiwo is tooddabTodo weu out sporm COMO" X X c tspods cwt X xRw~utoaa~as,~n. • - w FRW McComb Groupp Ltd. RESOLUTION NO. 00-21 Jan. 19 20M t~:a5w~► r11 P pip, 612MSZ72 Exhibit A GayN~ (t ivWwofTabowlwalaxetsluu n4oa~+law) Cmaal Am"Mut Ina' . >`1'ielxledooa . Rey . •tGonese~o . cj,.,Ajgovelty CoNUa' camel C'u a l4 urition Comp" Inc. Awpbm M CLWGWCR Haft&DWCOM lisan8sl~ral► . 7unw► . JoYto~os do Mutpbl► ' ~oueaoYs ' Gaorooa Rml Storrs Gimaui Vccsa~ca . Gi]moroBrorhacs,'~ Cci.~tc~►Piny+~. Redwood t~R~ TVA ADM G'u~slafl»~- . oivw aoft Colm8 ) Godiva tloooladm Iac. pv~cCC o ASoapCoaTw* GolfUSA,Ino. Goodrich Q*%y Theatcts, bC' (p v6 o of Gooddeb Rada dtmwuws, W Gnat crvls bo. cummawl m=4 Lac. ~eabec='s 3r~1as ' ~ldRound Rataaraots . (pivls;OaofBastonVoatonsGtouP) Gold Fodlc: Castisl Food ~ C mA Ra Md Cmxi Amsncs, b0- . Vvistoa of Gnool S.P.A.) • Y.. wtu locus iaa tezionat amU. X X Am~yab~darat~+on.na~s~ias . X X . cmmm*wy X X ' x X ~~~e,ausittoa►s~Pesc X ' X X X'' • X . X X . X x , 'oeiacleon►nky+a'xai X ' Mud MWWWWWs X X' X ~y~idait[aeooal~' X lphowiainp►eah'8t X X . X ~yfKS ~ - X ' 1+brie dia~tas . X _ X ~oof►bs+sfiviosbG~stSood.r~ X x ' x - x . X l X rs X :>wa I, - X ~ooswa~3~~ ~4+tiwonteu'sspp~l.lcztbafl MUM r10.= ut••aap, L=. rt7u4r, fa.t. ost.~aaa~rc Jeri. izo tawo wv-4.m•i r].4 RESOLUTION NO. 00-21 Exhibit A Ones? Remit, lna.' X camdtmvf o=' n'* mud OWN of Cow, Ift) X GuetachotfTbeatttx, ittc. . Ouitar Center . X mow Gymbottsa Coon . X tatitdroa's spparel, r toss►waaaalvi~o s - - - X I M P ram= ~-Uh urkGoldCm"Stores - X PvW=of llalbaak Cw* b4 X HAS Of Ctatio & books, Ift X ~►~b0°k:aros Cud&&v* kcm*wol X X Readers W►odd X -mu X = X X X awdycom fm Ud Had Rock Cafe X &etmautaatsrt~a . (pvuioa of Reek Group X X' Faalbod , X Hu i$ Ocigia* Ina. X i + ~ewcMs X Heel QuW, ka. X shoo ropair H)Cd QWM X . Heasm Qm'k) X Hello Shop X Hel*aes Diamond Shops, Ina X pu*lewoky/wateba - (1)ivl:io= olBedtsbire Hatbaway~ 1oe.) X - Herbnees X ' t ofS*stnooiporatod) X Henslof Opficim X OpualieYewear Metc Spotdog Goods X Hib mspordq•Goods X Spam ac CMPIGY X Sports Additions X . Hitshfiekl's,'Ina • Fabr#eb llooreoveiiat%b aNawkws bwovanrs t. weal eovea=adpairrt Hotgaac~t X p W&bnwuo, housowaresh=taA appl Aram bed Jk bath limas HomePtace (pad site oar) RawxaWbws X Cotfaobartljnicobsrs,dattbod X X ROOT * X ! 'sfwonkaiapptad.aaasoiteshoaasaela' Y Houlann's Rcstautant Qroup X RaamatsMrs 8ta~aou's soa6ood t';;iti X ' Brisbl Sta 1r Gau X Hne=aVtaaCafa X t~asteafsplrao X Qiegnoes X DattYl's X - Hoob'bon's . X _ L OMat's Wood rrrad Stmarr X "i=mu X X CNWY40 aam"Pm eoffa b=dula bait:, fast food X= Wdi kiaae is areg~alaw~q. . 1` FtLArI McUmM croup, Ltd. t~t°ttAVt -rvu. pJ°GJJCJ~ 1 G V w w L.1 6-%~W yr • » . . . v RESOLUTION NO. 00-21 Exhibit A , (Division of Bolkshiro Hathaway, bw.) X X X - X. W= Notion Co., Ina X o Thawoodaticgy X ' - X ~k X X ° X X BAww, 9&q0 wW14 paw amn6vom ha few X X X X X X J Crew Group X ►a'th+omra'ssppWd d4liodouaat oe ~lioAorrexatPaeirxGeovp X Lcrow X J.C. PMCy Stores X aoros ° {DividoeofJC Pameyco.,Iaea X CuologStorodSalaCeMUes X Jcramy X . JC Pamw HoroeSim X Jack Locks Theaters Jacobson Stores, Inc. Cldldeea"t<numVwmc* mod. fine jewehyHratel►os, lmtkw%4M X alom,t►omedoeodeapes - . Jaeger_sportsweearLtd. X womeaYa x.a o otC0wV"ftPk) X Jay Jacobs X Mq wwommles appewl 38yh ow far Men X hiyJ>coia Forl~toa Jcwatten X Jay Jacobe For Women X , Jennifer Convordbies, bo. X ptaldlueatbode Jai fkcoavaeft X Jeaailb~rTmd~a X } lamtEaLivigR~m X X 6aa£ood,~ X Jessim meaintook bA. X Joan & David Helpetn, Inc, X wommes apparol, shoos lam & David X Joe $easees X Redmunwbaw Johnny Rockets TntwwdofW, inc. X townt0bm - Jos. A. Blab and lcas, be. X mesa aim X Van food X baud X X X X X X • I X =Win locate b a Infoaal "A rtan rtt:UM croup, L.Ta. rrsavt: m. ose,~aa~ra Jan. to GCW-W 1=-44C "*l r1'4 RESOLUTION NO. 00-21 Exhibit A )m Per Peet, ]nc. X Sfioea. X Atb ft Lady X hww P ~r X. ju$tForPuA,4hC. X AaaaaemawplajroaeA~adddWaaekdeeadon _ CAy co Toy Stores X - Tgft mnkidoo games pvWmofCowoudatoatslom<cAepo ion) X Key BwToy We& . X l:ay Boo Tags X Kaeesores Theatees Movfe tAaan Key's Res wrm t X X Frataod X • X . X ICitldie Kotlcepts, Inc. X pidpby aeaxs/aApd aetolon X Caadyw-"Mnlyog+uc " Is,Ino. X . ~WooAoaiDtcr/t~a+a.uomadeood~/drapa Kir1Lu's IXalimarlr, Inc. X ' Kohrs Corporation X 1CaAhDep mamSi*m X X~ X X - X .X X X n X X X X - X X X X X X ICs Mcrelmadi~ Matt, Iao. X jeuvekytwateAar, aomwan►alemiaaies, Rams E1d<up "a kweky X deeoMampaddrspar, Aou:etivarestsmari appL Vs MaeAaadlw Mart X Kuppenhckw Iw =dRoturcrs I= X Maher X Faatnod X Landtin& Tlxattc Cotp. X z a ' (DivisioaoES~7vorCjaaase, b►aJ X Lsae Bryant , X W=Ws appod Niraia►otTAelimhOd. X Laser Ona X A PI+►Y o=wd*M eudodaa: (DM"*fAm{ t Co.) X Laura AsWey, Ino. X Womco%appuA bad k bath Bruns, homo d ara~/da as (Divudoa o(Lwra AaAlay Iiol&V PLC) X Laming Express, Inc. X Edu +opauenvlroefiaaai, Iays/gamadvideognmes X = Witt loeate lr a veg6W mldL - raw .i i~ Exhibit A ti m uroup~ Lux. OQ 21 RESOLUTION NO..__• - • $e,,a~aylk,Rl~aawue.la~e+snmu iPP~' • X ~{~p;~o(CorarsCcayP~ X ' Le~msmne. its X i X *fojm*&VA4 • . x x x WoaawY Ltrr►trNr►►Yotk.tnc. X . oxvwmdT& ua.me~ X Ixvrg 097 SWM - X • (Cgvwm ftsd saau& Ca) X ~,evfisStoaat x IMx3£~Y3 x ~po~ofaa►► ,,;oaotn,~acx~•) x Ufa=,& i Cmh Smd»,' X w OWNofuf) x Lime Rubin _ x g~ttbod Lim" N Things X F~►. y~taPcof~~Boo1cC+~nutsT~ X • Y. waan►'s Liz CWbom lno. X I, X ~,ist~aib x yb,maYetites X ' . - Lis Y. LoweplacEntiCorp' x ~otS~YCaep-1 X Aux x • 'r!►an:a X . SwcTba= 1.~ ~ Ts~ ssaa C7►) X Ybna~1.°°dlamP~de'p~+`' i { Low ~ x - L~t+r~ X LoveF~+ X • X x ~ettbod sib r KUPI F•ICWtiw W"Mp s L'M. F'F A. N= NU- osCJJO~S C e Jan. l7 4-0M t77 •'i rrn9 F IC RESOLUTION NO. 00-21 Exhibit A X X Fat food X X ; X . X - Ways West X ~ivietoaofpedaacods.T X X Mao Home sane X X Fag @~od X X - X X' - X X • x X X ' Fast ibod ' X Faufiood . - ~ gaiopnm/beHeidpr~cels•~ MarkShale X ~iYideaofAl ft*m Compaah X Martin Newman Shoe co. X Shm Na=VwStweStae X l~r~rnar►'s Sboa X Mary hay's Brldat X Rd" Magen Tuxedo X Ddd*TW=W' r Maurice Rothschild dt Co. X (Diviatou ocAd►aiaaRaal tiroup, tnaa X . t X > X Max & &=Is Restauzu%Im X iroffmid Cdc X mu & zrnm% X MC Sp%tlag Goods X s"ftPodowdodow"r w[c spo+cs X X Fast~oa Merle Notman C medcs X C body p'~0e Mervp-s Calib an X PWSIon ofDayta Hudson Cap.) X X • X X III X X ' Saa;k& A1. X Michaek Stores, Inc. X nrUsoUoau'bterlfr+sms.aRa>cpPttwecallsntiobbias ' !►arasBcodtrre AttMut X Xs w(U aOCYii ~a 1 Tea~01L1) ma1L . FFn.I"I McComb Uroup, Ltd. F jjft -NU. b1CJJ~~ to .+eat w eue+ci v~• RESOLUTION NO.. 00-21 = Exhibit A y • iwtiehael: X Miahclson Jawalors X Faa jevrelryJr atd~es Mlkaw Inc. X ~ Mika Ckivollo's Camcm Centem lao. Mlautxntair Press X Photooopialpintin~, strt+ostst.aviee (Dtv6aoa oEMtauteraaa i'rese Luaaarfoaat) X ' tl Mhwk Prsat X MuettetaaaFcoa X Spe* Stsa ARnus U.S.A X . Madom woman X wetrxai's oppord wwa of America, inc. X wometh app d Mond'i X X Fare Good. reeaaas Morton'sRc ouawGroup, bo. X ReswMat bas Benows X Maul's otChieaQo X Modters work, Iao. X waaen"s apparel A pea to tbs PodIMuni Maternity X ' hraleenityworks X Moths~hoodDaatanity X Moto Photo, Inc. X pbawfidW ►t~ti. amerasNideoanlaas OoeHaui+taol~loto X Oas fiq►ul~foto7l►oro k AorgaitStudio X • Mr. Rags X Mm's apparoi (DivisionofCl+ira'aSrocns,iae.) X X Dataeriesl6agtWprehodr X X X X X X Satxrtafbatetsiptazais X X Bslc«iarbaselctpromelbSst~ood,tat: X Musialand Stores Corp. X C hlrausieAapes. VW* MWWW Media Play X on Cue X Samoa* X Sweat Motion fiawa Compnoy X Myroa's WS do Oft Ian. X CaA twomy N. Landau Hyman Jewels Je+rsLy note Nampo Cybor went Tm X Aonsrmwa/play om udliW ' (Divslos oEidaatoo lad.) X - Thou out X Naomi-$ Hallmark Shops X Cardt/smttaaory X Fast food Nadonsl Amusements, Inc. X Monk tha~oas Muldplax Cinemas .X ShwAcs" chwass X - National Record Matt, Ina. X video teataVaatlee Masie oars X Mwk X X NRM Mucie X XWwal Roootd Matt X X~ Will beats in a repianl rat FROM : McComb Group, Ltd. PHME* N0. 612338oo rd Jan. 19 2000 09: 49AM P3 RESOLUTION NO. 00721 Exhibit A rm X • wa"s Muck X. waver Muao a Gigs X Natural Woodem inc. X Nammilm Shoe Sun Oroup X staa (DiVWm oraro" Geoap, lw-) . X Nam um X Neiman Marcus X. - (DNridoaotNeinlOnMarcwcGroup/ttatoowtGateesq X Phildtett'draaa'a/wamoa'ssppu Ld%wa wmww !'mojowivylwatet+ar > X GagaierofNeimaa Ms+eat X NAM Maeur ° X X Fsrt Sood . X Ntok)aw's X N'me West Group, Iqc. X shoat Saco. .X BaninaShoe Swdio X t~ivinicwashoeramp X Gary Spilt X Buy spint *Ad X EoasAtoliai X roaGudet X Nme wet X Noodle Kidoodle, Ina. X Nordsram,Inc. X shoed,dcetoro.m~l-pticerotutoc«ne C. iloWWGolfAppatdb Wwddm X _ hoonowe atigao X Hawaii Shoe: X - elp, one X Nocdertum X. dfiadewaaR•Iin1t- X • North Beseh Leather X ldCA%,% ,Asppwd X X . Northern Group X moawwomat gperd (Dtv'm of Vaaw oamp,laea X No►du>nt tom X Nwtlt m Getaway X NortlKna 1teH~otiotbt X Northan7rditioss X Notthwestm Book Store X eoolc tastes Amity DookSmft X WaDoottStoro X Nonhwertam DookStaw X - Ohut Mils, Inc. X photo6o; W. Olas kiitlt Kids • X Obat Milk Yoraait Studio X X X ° OUy's)tegil USA, Ina. X 1~wud Origins X 6etttWa/b*=m2avwAw (Divistoa ofEseee LatalaCaatpanias) X X Fan food x X X= Wt1i loeax is a reslot►al tttaq. ' jan. Ili 4V410 M:t4'JHI rku~t : s~r~:omb laroup: Ltd. M.Lm _ Nu. Exhibit A RESOLUTION NO. 00-21 w X X - X r X X X X X OSFIntoti+ SPOOA Ficwy X Cbndmbqvud OsMeA B'dosb. Imo. X p, skwAvm$w ft X Shdbtat~o.+r.+r 0,ft ►'s sporur4 Goods, To X YSpWasGoods X O~naen'stP~tISJ► X . }~ea'~Jwoa►a►'= . pacifti sunwcar of Califonois. b~. X pie Swiwauof caU~a~aia X . danw• Emc~od.~ _ X X X PaPri~ Ytaacbisc Corp. X ' X . X ~ ' X wo~,y°oes+c°r'ogoonumaja~7► X Yawl Hm* stems, X Pam* X pans Hams X a~plieekr,~dkobbrm/di:ao► i~+~+ pmi Artist (daft supplY CM- X ~deotieM Nsd Ai to cma X . iewri P" • Lasgg~a Po&$$ Ln8Pv X iMtas'r~oaim'f ?036tm WoolaaMilk, b= X Facfood X X gdWKaalma►~'~P'~ pmnmr Avsa►t►F*~►ioas. b X Cape= X e=t X smaacoon~ • X ~ ?Crformm a $icyola X ea ?asoHicy~la X X - • X X X X • X Y a Wi111etltClA ilCS'~o~ P5 _ 19 200 09:5''1 San. p N0. 612338. FRO : McComb Group, LUL Exhibit A RESOLUTION NO. 00=21 -Pum r Rauywaw WAIg!", lnc. • (balPhaotCato Offidd 04MCAte PtanUPAYWOa Yi►7oti's~o ' wpa~rss~xa~saQ pawrtao IAanM Cazp=tion 4owex Ylay.1~. • paweePb~y _ Yaoa:dri~a Ptewum Remifant C=PMy cxaNScuNliiaaR~a~t ' X X X X X X x 'X X X X X. X x ~~y aauda~aa X R~ a X ~,ndrtixaa✓7~ann, X . ~,~,,~aauraroa X x' . X X p,aau~cora X X caadyAw aou*v= X X Sham y ga'ic~Ca'aamltapp X _ X X X X X X- pie f0a X wag* . X SbW$ X ' X 1CddisRidsY.tmka Nuts Plus (pins oaofcrt c4vp PraffitYs. ~ - • ~,,;~;otSalaLnaacp tZnality Coady ShOPP hr- RaokRoom Sho4a Ina Raicbaw AFpattl C=Pniis cuac bww amPWa Foxa+aW "YMOO& Qak6cw Rai eReta~ g=a McMy Map & TM"lSWIa Raagoni U.S. CAP. ofiRorm~eo Stan - RurwAmiss ago Rays sum hr. RCO westcrn Scam Inc. w Wing DO Co. Roawn~s~ . Rad'fYfatS~►astcR~ . &gg& Jewalcts, bc, P,00 c4uts" {t> hioaotHw o, Muo.t Pu~dc Ca) T=Soapa EaeailYFw Cause Regis CWPOTA iOA X j wiA foaee fn •,arctomi nwu. 1 X ftA tbo% Shoes X Cy~aeds~woaem'a~'~'aAwear . s~ X _au X ~Ieuldu'id aseleda~~• ~no~ie s X• X - alm/Padw X scam X p} N0. b12336~~r~ Jan. 19 2000 09:50M Pb FROM t4cComb Group, Ltd. Exhibit A RESOLUTION NO. 00-21 - - super X TrAft Secret Rmfto n Pro&" Co. LC X X CatlaYAdtefrea`►~aee.~f-ioda~eta~,~eaoa~{anFrah~ou X FARE &W X ylaRwd X Rhodes, Ina. X uoro PUSIOY'sEleotcoaios,Ina. X RWVA An& ltvidoo X Ritz Careers Centers„ I" X Gnisina~lpoarall. . glX ca~„ndvtaso X chcanon t Hwxpbm X Airzt;amoea~oosHo~ut+l►oro X Roche Bolwis USA 1A X Ftnntrarelbed~ Q)WwioaofROAD Babak ut=Atdm) X Rocky Mouwtak Chocchlo Faobaty X Carikol o ifewyaort RadiccPak X WonMbapperd Rogan's Shoes, ho. X DOOR - Users Enterprises Ine- X iroopwairy wakha Rop~at~laaas~de~ • - ' . X Rogersitd., Iae. X riuejew~ AS&M Tea~okn X Aiamoa~tid'nnirea • X Rog~xs Jawdas X X pea ftd . RoosevelcBootery.inc. X taUrarSboes X . RooaavdtBooary X vawsGooas X , Ruby Tuesday Gcoup, Iee. X ~a+eaa, X Lerida X . VANT09ACKGda X RrlnzaRemonts,Inc. X Ryan's FamBy SteakHouies, Ieo. X (Z?ivisioao[Rr+nsCArp•) X Saint Louis Broad'Compar% inc. X {Di~sior►otAoBmt~auaco,.3nc.) X srara Saks Fifth Aveeue X . (D1*1 a ofSdmhcorpotaftO X 1+tsG►saea X otm Dow X Ream X ` sdcg p hvcm3e X Sslwtor+e Scallopini. Inc. X RowituNrOw ea, Wdom idaocnnneJwfflky.pcedmuonery,p Y X qwla~tir, ~a Satuio, Ina. - X e~+• ~'~''~'",es~'iaa'sa~` - (DjVW=dSMd* Co, i t4 X - saado X sandy Gift oato X sanrio Siup+~es X Reamu~bm SascA Maeagement b3c, X Carlos O%dV$ X a WiA loeata is Ategioaal mall. - - FROM McComb Group, Ltd. RESOLUTION NO. 00-21 PHlNI= M. b1L~~fL JGI M i./ G.cRR.. v~• vv. . Exhibit A X Finarood.~ ' X X Sandia Dowa Corporation X Down pmdvm - Faa foal Iohmitt music Company X Musiai iraaraaaeatsdaipplies Jaddas> X. Ma k mu:ia ceatas X Wens Manic Corarptaq► X • - X ~ ' Schuler shoes X shoes NewBdamT01iaCities X Sehul« shat X Schwenker do Mougin, tam. X Slims HoUaa Fbasbdm X Haines shot X X Faaxfood Sus Full-Line Stores Division X Dquft a slam (Division ot5avs, Roebuoic sad Ca} X Sears Specialty Stores Division ' X Ffudwats/ume imptovarxte no sapphadFw sac 0XVWat of Seaac. R04wk and Cm) X couladoas X 3101scura seta X N781Vat1oaW'firs dt autear X " _ O[chand tiaadrvvacso da Gatdoa X OaehaadSq* aadwara X 3aarsAaoCw4ws X Sears Hudwaw X - X Fast tiood,~ X X Select Comfort Rd4 Corporation X F aaialle6aas sh kr/s Inc. X• Redwaottus sbaws X Staskoft Care X Sharper 101390- Corp. X ~daaoaies,apsadegib9s shmmkow X . . sRa~iba> X Shoe Show, Inc. X Aw=0ldalVGw1wcky. shot Aloof X BuriinQaoasm X sboe uaw X ' sa~tooa ' X - Signatpre salon Group X sw* =bndbabw Andaa Duval X basstCws X HArCme Hmmapr X Xomaatpubloa X Siilati EaSiBeneam ' X C7u'IdamWmaadsiwoma>"sapparei United Colons of cn :taaa X - SUvers:tone Per Ina. X Bet.Iaaimal sappliea Pmret X Simply Fashion Stotxs, Ltd. X Waaaat4 appatd. 3h7. boa Sir Knight Formal Wear X Faatad wru % X X a Win hxine in a rsglOaat asap. . 1 FROM : McUomb Group, Ltd. Pi-fi~ E M. 61 5 4d - Zan. 19 2000 09: SIAM PS RESOLUTION NO. 00-21 Exhibit A X Reslaur+tasfbar Smoothe King Franchises, Inc. X caned baWlt is bos X FwA food ' - X X hKfood X ' soxAppeaf Freruhising X ~►eoeaorir~o►wiarrno,~e+Mehy,>'~IhotiCe~r ' Spaghetti Warehouse, Inc. X ' Ra oM (Dlv "*fcM*Hd W Raw= Pcopwsax,] o X Old Speshetti Peas" ' sp o Warcbovse X %M&m Wetehottse Win GtM X PC,- m Spencer Gibs, Int:. X ksioaca,nelo+ey.,nfoolloh,auR, a,ao„e~,~ (Division of uAwww Smdioe, taca • X sosmaat (urop imseJ DAPY X' GLOWt X 8peaoorOtlts X Stage Stores, Iao. X Belt Dqwunm Stan rst.t: Royal X Saga • X Staadard Theatres X idovie tbaaxri Sterling Vision, lm X Opd=Vcymm Bcom Opttat X Dutlo&Optical X t?dwadC Opaeet X ww opacdl X MdYOp" X = htmmod Opdeat X sia~ec Op~ieat X Site for$= Byes X Somhaa Optiad X ' SwftOpdul X sRalcrop" X vwmopdcd X* Steve's Shoes, Inc. X shoat Oveclsad7taeGns X Soto outdoor X Stands shoes X Snide Rito Childrmis GroW, Jac. X* Shoes (Dividon of the Saida Rho Coo X Groarpoa X Stride Rik X X Fastfood.raseaatuaslbaa _ X X Stcuctust: X Mace'sappKel - (Divirion of 71te Lhdted, igca X = . Stuart Andmum Ramurmtt, Tue. X INUU M&O (Divi:taofAatarkReaatGroup,Ino.) X StnarAndaYOt►`s X - BlaattMSae~smtuanr X - Snarl Mdan".$ Code Comm X X Bakaieslbagels/p+• asdrJs<aitotury. wnvetuenea :teat X Fast Rod X X- Wql bate is a nriotal mall. I rn~a r n%AAA w ur wpr Lw. rraa~c iwJ. vi --for- u 1. 17 4txm vv•J.Lrwi r7 RESOLUTION NO. 00-21 Exhibit A X Fast hw ' x. Sacs essorla , x ArUoeoeetibta/fratras, ea" Wsarionery, aeasoat CM" 6") Sweet Factory x calwaa efeww op Sweet ideas i.F x Cat#fos ece+udYn= Mr. isaw Ttoan doGib x x Fag bod x x x x x x Faatfood x x Fast 604 WWWA094" X Fsttaod x Fasetow . x Past Good Talbo% Inc. X C iidnen'shroakak appewet, shoes Talbott X Talbws Aemudea A Shoes x . TaMmKi6fratboa8abiee x Talbott woman x Tanbek); I= X Aaesroti i0ft to jewoky X P&Ube Fuiey x Two Plus Two • X Fassibod x x x The Athlec Foot Groap, Inc. x .Shoes (Dwisionamaiiyo) x Ladies Foot & Kids x The Addetes Foot x . MOT ROM x The Berbers Hai*Uug for Meer & Woman x sien W aboharbw C y L006 saga x Can Caaea Fundy Ha oft x Fuaily HaeiauStora x - TAe Babas x MIG H*ret6ofmou x . We Cuo Hair x - The Bombay Company . X Home doeosr[an"MMM The Book Rack Franchising Corporation X Bookstom . The Hackle, Inc. x „pp,L stag x a=wYw" ' no Chart House, Inc. x The Cheesecake Factory incorporated X BakaiabaeeWpnasels, ►~r/bsK 'l4eCksFaa«,, x 7ka awwoake Factory Sa wy Cu% x 7M Chxsoeako FwtwY EwM x The Cbildrea's Place Rash stores, Inc. X ChUdma't vppat i The Gdldrat's P>aoe x X -will koala is sretto d mall. t•tQJI rtCWB7D croup, LT-d. rrumC mi. t71GJ~7J-~fe earl. 1V crJYJr, vv-4erri riv RESOLUTION NO. 00-21 Y Exhibit A The Clerks Companics, N.A. ' X Shorn, (DiviaioaorCdci Ciarb,tAd) X Boswaiaa - X Clarks X Hanauer sheen, X ' The Connok wr X awowkA'w• sit sib The Custom Sl" ShMmakers inc. - X tyted wwa . ` (i3ioe oP ta+ati+igloo Clothiers) X The Cutlery X genres The Department Storer Division of Mgtoa X D (Di+rhioao(Dgl=Hv404CQw) X Daytoa'$ X Hadmis X mu" F** X The Disney Store, Inc. X poldrours/mai rJwo ,tea's WN4 acYoolkcd6ledora1r► ftwo aawideo (pividoagMwvkDwftYC X Pr The Elder-$eerman Stows Corp. X sea«. fianitntr/bods. deparanonc atom elder tieamaa nepartmens scoter X 'Fleet aeeaiwa Ptuaitwe X Shoobiloel x sbaadtTl~oasas X The Finish Line, Ina, ' X spottiat'~°~' The Forgotten, Woman, Inc, X top $W way's qv= The Franklin bunt X ANeoitoodbla~tnaia, oardsrsatioaery, d iaa 4w wsrro (Division orpAl law nadwA Corp j` X . The Great Train Stott Company X Art snppHa/asaltsNobbia. aoyat~n>ca/vIdoa IIames, aasorat Dem UU4 aeeaaettos The Heir Cuttery X - TheHwgVp Shopper, Int. X btdsssppard = MA Ativo X The Jones Store Co. X DOPKIMMUM The Limited Stotts X WMM%gvwd (Division atTho L'udwA TOO X cmMm ft appod X Thc•Limitcd Too ~ivisionof7lteLimited,]na) X The Louie's coma units, inc. X wd+ %=0lww LwwATmtshop X The Mcaregor Co. X Trlooroaarn+ts. deoosNaraps/dtapa Kempaed lbm X s X The Mole Hole X Ghta fihe Muswm Company X AWv*U*9N :asoaat t ) The North Fern, he. X spocsas gsoedrlatidala war - - vwa" we" Tit Owls Cc, Inc. X Spa+ias - - X Fat rood X X The Might Stott, Imo. X Cttiidxu'r apparel.says/¢omawO Psnes. d3ldlis~+nt pooduar The SanFrame'ssco Music Dox Co. [ orvcaasor Grasp, tea.) X - X _ Past food, tesauaaa&M - X - X Past food ztc►bK X - X X X - Will laaw 14 a r4ail mA Ltd. Ltd -FROM McComb Group, h NU. ottaao~-arc. _ RESOLUTION NO. 00-21 Exhibit A . X x mmw* jeweby.womdsWad 'thawetstsl X Mla►13_ aads i c s coa=V X - 'katScal X wanw►~>wp d The white House X D1adc>ds~ _ X . TnwbifEbtise X, Atdcollogiblcr~6sar~. ~IIbvsarara . Thugs Remerrtbered, Inc (MvWm ofColc 1VW wst Cotpmt 4 X X furniten This End UP Furniture Co. X Aw°063► Tic Raolc (U.S) inc. X (Nvwm dTw auk r-q , X MOM SIC X TMKrMSWV t X • ro tok - ' utteo~eot~lasllFames.obira/~latswate Xo~ Tiffany dt Co. „,wa,►ts Tmaber Lodge Steal hmm Inc. ~dowkwwo" X TindarBox intert►ational - b 'rtppin's Rte. Tnc. ars X Remwat►w b i' X s ua Gaaa r~►~xoaa»~r+tkric~r X X ~ •ywon►er►'s spparal Tornzny Ht1Sgar• RctA Inc. ' (D Vw" otT*mwmi C.swc*' l x X Gift Tomorrow's Mrraories X Wosv atmwd TOtMotxow'S Mothac X Bookssrres,~v~deoeauailsates TQwar RccordsMdmSocla p ora S, &4 X . T X -rowat,'oda X Tewce)lOM* X Tanrea Vmw Xpur«fvidoo Erna hr. Toys R Us, X Sabie$1 tUs-TmBaby sgwstore MOM X t7c Tcrys X SbW Trac l Trail, Luc. X NM X pverlsrdltsdi~Coa~+aa3► X Tracit'aTMI Tdar Shore storGt, Inc. x s>► c"Veawwmm X Tom World EntetahmumtCorp. X ' E.Y.Ic. - ForYour EnlMsinenart X _ • )AMUPW X i Ylsnatbdusia X aecad7owa w X _ - m ssaudsybt s1mwbad" A* X X Waxie lade ttavd scoeesotia X Travel 2000 Travoigcar • X Fast food ' X 1 X=Neil jMw is steg'smal VwL FROM McComb Group, Ltd. rrpjm j'w. • OSGJdWJ~c rwN rr . RESOLUTION NO. 00-21 Exhibit A X r X U111cmatua-0004 X v United Artists Theater Cimu1; lne. X t.to~bs thaaots -Uno Recto nt Corp. X YlzsaiatJao X Pinata um am & BftwYay X X • •Faatihod - X Vanity Shops Of Grand Forks X Womat's appatet X ~>dpremelc.tauulr>ms X X vim des Secret Stotts X wt tt's oppatd (Division ofladmue etattdr tat.) X Vietoria't Seaetfth &Furn" X , Va Kk'sSeerotHosiay X Vteooua's Soda Styes . X Video Update, Inc. vmeo eatavsales X F&A W X Virgin Entertainment Group, inc. X 6oolat. video raxavstes v (DivtxiovotvirpinEnteeainma►t(iroup,Ud.) X vwn cittatset X virenMesaporo X - Vista Ey=ft Inc. X optiWtEyse+ear BY" Novo h X FwiAyt yewees X - t?naoo a-Loac X Ewop" X ldi&MYisat( aft X vine op" X Vitamin World, Inc. X lyshopifdktoenxte (DividatofN=te"s BwW. key X Yon Maur, Inc. X Department nary X Yatt food Warner Bros. Studio Story X aidtea'S►mm'sfwomm'S Mud ° (D'wirtoa of?ia~a Woa~ar~Coagauq~) X Waterford Wodgawood USA, Inc. X ANootkeaNede+a►es. ehiaa/alasswaro wax works, Ino.. X CDs/tnuoiohspea,video antaViaies Diskkdcoy X wlet caU.etiorts X Wehraabag Theaters, Ina. X - X W.hxtttTheataa X Wckom Home, Inc. X PaWadboda HOme nzsba X = Weloavo Have X X - sa>; "FoRQehip vcW1s. fist &od - X X westStar Cinemas, Inc. X idorie theaters Fostirai'theatert • X . Mana Theatas X X-MI loam is a tesiatal.mA FROM McComb Group, Ltd. MX-L-- NU. RESOLUTION NO. 00-21 Exhibit A White Wolf Whitehall jewelers, inc. X >;oakwdgha hw kwot Hoz X Ltuai3uomlo+Meiort X Mvw Di"jowdM X Wbbebq Co.7aw40V X -wicks 'N Sdcks X 1~aanadooorlWapydrares (nww" orwN% lw4 X Wad Wings, Ina X Att►oou.albla~6a>ges Wdliams-Sonuma, Inc. X &d bt bath ft"64 #vnw lsuw+te. auleiyAdtcke"wG' bme BDUsr q& tj X a net+i Fancy BM X ws~llana sonowa X wilsons Suede & ~[.ead►a X - ms's 6PPw "d me nor;" Wilsons The Leather Expel X womm's appaset, mm%-sppsso6 k4&w%wv Do==Ltather X Iowa Luba c~tsa X rywoa X Wallet Works X woes - X Winona ri its Inc. _ X Qrldrm%aptarel, woraws aWWA mm~s gPvw Wolf Camas Inc. X rbototleiebins/palM cptrboto _ X Fac"M X waccta, = X wolfCw=M&vtdoo X Woodrow Systems Ina _ X Csedymoundyapiteod'cabauslA=base,fistbod X . X X X X X X Sakamtlba~bi, eatatyfior oofibo barst~vioebaes, bst X food _ X X . Z Gallssio X ANeolloatiblo~Lrama,bad & bath liwK ebinelg)savare, 1~►odeoo~lat>y~deapes.~rylldt~w~+ ue Corp. X Pico jow*jhM% ha Sailoy,BaefiCdtBiddlo X ffoc"s lewd": X - ztaa lowolas X Zany Brainy X Edae.~onttt Zarw Luggage & Gift Coup. X Laubw&wp • X- Wdi iocut: is a regiottalttalb . RESOLUTION NO. 00-21 Exhibit A EXHIBIT G Certificate of Completion- -This is to certify that.the Brooklyn'Center Economic Development Authority, Minnesota (the "Authority"), a public body --corporate and politic, has determined that all construction and other physical improvements specified to be done as the Minimum Improvements by Talisman Brookdale, LLC (the "Developer") pursuant to that certain Development Agreement dated as of 2000, have been completed. BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY By Its Executive Director RESOLUTION NO. 00-21 EXHIBIT H Exhibit A Assessment Agreement THIS AGREEMENT, dated as of this day of 2000,'by and among the Brooklyn Center -Economic Development Authority (the "Authority"), Talisman Brookdale, LLC, a limited liability company (the "Developer"), and the Assessor for the City of- Brooklyn Center (the "Assessor"). WITNESSETH WHEREAS, on or before the date hereof the Authority and Developer have entered into a Development Agreement dated , 2000 (the "Agreement") regarding certain real property located in the City (the "Development Property") which property is legally described as follows: WHEREAS, it is contemplated that pursuant to said Agreement,- the Developer will undertake the renovation of an approximately square foot retail/shopping center ("Project") on the Development Property. WHEREAS., the Authority and Developer desire to establish a minimum market value for the Development Property and the improvements to be constructed thereon, pursuant to Minnesota Statutes, Section 273.76, Subdivision 8; and WHEREAS, the Authority and'the Assessor have.reviewed the preliminary plans and specifications for the improvements which it is contemplated will be erected; NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1. Upon substantial completion of construction of the above- referenced improvements by the Developer, the minimum market value which shall be assessed for the Development Property described above, with the retail/shopping complex constructed thereon, shall be Forty-Five Million Dollars ($45,000,000). 2. The minimum market value herein established shall be in effect for-the taxes payable year 2003 through and including the taxes payable year 2007, and that thereafter this Agreement shall be of no further force and effect. 988288.6 H-1 RESOLUTION NO. 00-21 Exhibit A 3. This Agreement shall be promptly recorded by the Developer along with an attached copy of Psot-s, Btat'lit'C Section 469.177, Subdivision'8. The Developer shall pay all costs of recording. 4. The Assessor represents that he has reviewed the plans and specifications for the improvements and that the "minimum market value" as set forth above is reasonable. 5. Neither the preambles nor provisions of this Agreement are intended to, or shall they be construed as,-modifying the terms of the Agreement between the Authority and the Developer. 6. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. IN WITNESS WHEREOF, the City, the Developer and the Assessor have caused this-Agreement to be executed in their names and on their behalf all as of the date set forth above. BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY By Its Chair By Its Executive Director TALISMAN BROOKDALE, LLC BY Its General Partner By Its This Instrument Drafted by: Briggs and Morgan P.A. 2200 First National Bank Bldg. St.. Paul, Minnesota 55101 988288.6 H-2 RESOLUTION NO. 00-21 Exhibit A STATE OF MINNESOTA ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2000, by and the Chair and Executive Director, respectively, of the Brooklyn.Center Economic Development Authority. Notary Public STATE OF MINNESOTA SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2000, by the , of , the general partner of Talisman Brookdale, LLC, a limited liability company, on behalf of the Company. Notary-Public 988288.6 H-3 1 RESOLUTION NO. 00-21 CERTIFICATION BY ASSESSOR Exhibit A The undersigned Assessor, being legally responsible for the assessment of the property described in ExhibitA attached '-hereto, certifies that the market values assigned to the land and improvements as follows are'reasonable: January 2, 2002 and subsequent assessments through the January 2,',2006 assessment for taxes payable 2003'through 2007: $45,000,000 STATE OF MINNESOTA ) ss. COMM OF HENNEPIN ) Brooklyn Center Assessor The foregoing instrument was acknowledged before me'this day of 2000, by the Assessor for the City of Brooklyn Center. Notary Public 988288.6 H-4 RESOLUTION NO. 00-21 EXHIBIT I FORM OF TAX INCRT NOTFj Exhibit A UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY TAX INCREMENT REVENUE NOTE OF 2000 (TALISMAN BROOKDALE, LLC PROJECT) The Brooklyn Center Economic Development Authority, Minnesota (the "Authority"), hereby acknowledges itself to be indebted and, for value received, hereby promises to pay the amounts hereinafter described (the "Payment Amounts") to Talisman Brookdale, LLC, a Minnesota limited liability company, or its registered assigns (the "Registered Owner"), but only in the manner, at the times, from the sources of revenue, and to the extent hereinafter provided. The principal amount of this Note shall equal from time to time the principal amount stated above,-as reduced to the extent that such principal shall have been paid in whole or in part pursuant to the terms hereof; provided that the principal amount listed above shall in no event exceed $2,900,000 as provided in that certain Development Agreement, dated as of 2000, as the same may be amended from time to time (the "Development Agreement"), by and between the Brooklyn Center Economic Development Authority, Minnesota (the "Authority"), and Talisman Brookdale, LLC, a Minnesota limited liability company (the "Company"). The unpaid principal amount hereof shall bear interest from the date of this Note-at the simple, non-compounded rate of eight percent (8.00)% per annum. Interest shall be computed on the basis of a 360-day year of twelve (12) 30--day months. The amounts due under this Note shall be payable 45 days after the City•receives the property tax settlements from the County, commencing with the first property tax settlement in the year 2003 to and including the Final Payment Date (as defined in the Development Agreement) (the "Payment Dates"). On each Payment Date the Authority shall pay by check or draft mailed to the person that was the Registered Owner of this Note at the close of the last business day of the City preceding such Payment Date an amount equal to the lesser of (a) 80% of the Tax Increments (hereinafter defined) received by the Authority during 988288.6 I-1 RESOLUTION NO. 00-21 Exhibit A the six month period preceding such Payment Date, or (b) $650,000. The Payment Amounts due hereon shall be payable solely from tax-increments (the "Tax Increments") from'the Development Property and the Adjacent Property (as defined in the Development Agreement) which are paid to the Authority and which the Authority is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.179, as the same may be amended or supplemented from time to time (the "Tax Increment Act"). This Note shall terminate and be of no further force and effect following the Final Payment Date defined above, on any date upon which the Authority shall have terminated the Development Agreement underSection 8.2(b) thereof, or on the date that all principal and interest payable hereunder shall have been paid in full, whichever occurs earliest. The Authority makes no representation or covenant, express or implied, that the Tax Increments will be sufficient to pay, in whole or in part, the amounts which are or may become due and payable hereunder. The Authority's payment obligations hereunder shall be further conditioned on the fact that no Event of Default under the Development Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder, but such unpaid amounts shall become payable, without interest accruing thereon in the meantime, if said Event of Default shall thereafter have been cured; and, further, if pursuant to the occurrence of an Event of Default under the Development Agreement the Authority elects to cancel and rescind the Development Agreement, the Authority shall have no further debt or obligation under this Note whatsoever. Reference is hereby made to all of the provisions of the Development Agreement, including without limitation Section 8.2 thereof, for a fuller statement of the rights and obligations of the Authority to pay the principal of this Note and the interest thereon, and said provisions are hereby incorporated into this Note as though set out in full herein. This Note is a special,.limited revenue obligation and not a general obligation of the Authority and is payable by the City only from the sources and subject to the qualifications stated or_ referenced herein. This Note is not a general obligation of the City of Brooklyn Center, Minnesota, and neither the full faith and credit nor the taxing powers of the Authority are pledged to the payment of the principal of or interest on this Note and no property or other asset of the Authority, save and except the above-referenced Tax Increments, is-or shall be a source of payment of the Authority's''obligati6ns hereunder. This Note is issued by the Authority in aid of financing a project pursuant to and in'full conformity with the Constitution 988288.6 1 -2 RESOLUTION NO. 00-21 Exhibit A and laws of the State of Minnesota, including the Tax Increment Act. - This Note may be assigned only with the prior written. consent of the Authority. In order to assign the Note, the assignee shall surrender the same to the Authority either in '.exchange for a new fully registered note or for transfer of this Note on the registration records for the Note maintained by the City. Each permitted assignee shall take this Note subject to the foregoing conditions and subject to all provisions stated or referenced herein. IT IS HEREBY CERTIFIED AND RECITED that all acts, condi- tions, and things required by the constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the Authority outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the Authority to exceed any constitutional statutory limitation thereon. 11 IN WITNESS WHEREOF, the Brooklyn Center Economic Development Authority has caused this Note to be executed by the manual signatures of its Chair and Executive Director and has caused this Note to be issued on and dated _ 2000. Chair Executive Director ' 988288.6 1 -3 RESOLUTION NO. 00-21 Exhibit A CERTIFICATION OF REGISTRATION It is hereby certified that the foregoing Note, as originally issued on , 2000, was on said date _registered in the name of Talisman Brookdale; LLC, a Minnesota corporation, and that, at the request of the Registered Owner of this Note, the undersigned has this day registered the Note in the name of such Registered Owner, as indicated in the registration blank below, on the books kept by the undersigned for such purposes. NAME AND ADDRESS OF DATE OF SIGNATURE OF REGISTERED OWNER REGISTRATION CITTIVE DIRECTOR Talisman Brookdale, LLC 2000 1 988288.6 1-4 RESOLUTION NO. 00-21 Exhibit A EXHIBIT J LEGAL DFSCRIBTION OF ADOICENT D LOP NT UOPERTX [Insert legal description of 5 anchor store properties] 1 988288.6 J-1 RESOLUTION NO. 00-2I Exhibit A 1 988288.6 K- Z 01/14/00 FRI 16:39 FAX-305 6629616 RESOLUTION NO. 00-21 TALISMAN COMPANIES LLC e,akddc J BROOKDALE CENTER BROOKLYN CENTER, MINNESOTA DAYTON'S SECOND SEPARATE AGREEMENT TO OPERATING AGREEMENT Exhibit A 08'20/1999 9042 THIS SEPARATE AGREEMENT is made as of AV~ U-C f `31 1999, by and between TALISMAN BROOKDA.LE, LLC, a Delaware limited liability company ("Developer'), and DAY "0 HUDSON CORPORATION, dPo/a/ Dayton's, a Minnesota t corporation C Dayton's'l. WITNESSETH: WHEREAS, Dayton's and Developer's predecessor have previously entered into an Operating Agreement dated May 18, 1978 and recorded May 18, 1978 as Document No. 1273419 in the office of the Registrar of Titles in and for Hennepin County (the "Operating - Agreemenfj by and among, inter alia, Developer and Dayton's; and WHEREAS, Dayton's and Developer's predecessor have also entered into a Supplemental Agreement dated May 18, 1978 (the "Supplemental"); and WHEREAS, Dayton's and Developer are the sole holder of their predecessor's rights under the Operating Agreement and Supplemental; and WHEREAS, Dayton's has agreed to remodel the DDC Building and Developer has agreed to remodel the Shopping Center; and WI3EREAS, Developer has agreed to contribute to Dayton's $8,160,000 as a Section 118 Non Shareholdcr Contribution to Capital, payable as set forth in Section 2 below; and DHC: 28467 v8 1 01/14/00 FRI 16:39 FAX 305 6629616 TALISMAN COMPANIES LLC =~,~iu=rMN NU. 00-21 Exhibit A WHEREAS, Developer and Dayton's have agreed to amend the operating Agreement and Developer has agreed to seek the other required consents to amend the Operating Agreement as provided in Section 14 below; and WHEREAS, the parties to this went want to set forth further agreements with respect to one another regarding the Operating Agreement and the Supplemental with the understanding that this Second, Separate Agreement will not be filed of record. NOW, THEREFORE, in consideration of the mutual covenants, terns and conditions provided herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Capitalized Terms. Capitalized terns used but not defined herein shall have the meanings set forth in the Operating Agreement. 2. Mall Renovation. Developer agrees to remodel the interior common areas of the mall and the external common areas as well as make all associated off-site improvements (the "Mall Renovation") consistent. with the site plan attached as Exhibit X to this Separate Agreement; and (ii) the Mall Renovation Plans (as defined below); provided such renovation is at least equal to the quality in design and finishes of the Rosedale, Southdale and Ridgedale Malls. Developer agrees to spend at least Fifty-Five Million Dollars ($35,000,000) in so-called hard and soft costs in constructing the Mall Renovation. Developer shall complete the Mall Renovation within the Dayton's wing of the Enclosed Mall and the center court of the Enclosed Mall as labeled on the Site Platt, subject to force majeure, no later than November 1, 2000. The Mall Renovation shall be constructed in compliance with all applicable zoning, fire and building codes and in a good and workmanlike fashion. No Mall Renovation work or other construction work of any kind shall be conducted within the area marked on the Site Plan as "No Construction Area" during the months of November, December, and during Dayton's_ Jubilee and Anniversary Sales without Dayton's written consent, such consent to be granted, withheld or conditioned in 9 043 Dayton's sole discretion. 01/14/00 FRI 16:99 FAX 905 6629616 _ TALISMAN COMPANIES LLC IM 044 RESOLUTION NO. 00-21 - Exhibit A Developer shall submit to Dayton's within ninety (90) days of the date of this Agreement, proposed design development drawings and plans for the Mall Renovation. The parties acknowledge approval of the Mall Renovation does not include the right of approval of individual tenant store interiors or store fronts. Dayton's shall then have thirty (30) days in which to provide its comments or approval of the plans, such approval not to be unreasonably withheld. Developer and Dayton's agree to cooperate on approval of such plans and upon such approval such plans shall be referred to as the "Mall Renovation Plans". To permit full exercise of Dayton's rights under Section 12 of this Agreement, the Mall Renovation Plans shall include detailed information about the Dayton's Court as defined in that Section. 3. Capital Contribution; Letter of Credit. (A) Developer shall contribute to Dayton's $8,160,000 to be used by Dayton's to remodel the DDC Building (as provided in Section 4) (the "Capital Contribution") as a Section 118 Non-Shareholder Contribution to Capital, payable in installments until the Capital Contribution has been paid in full. The first installment shall be in the amount of $500,000 and shall be due within ten (10) days of the execution and delivery of this Agreement. All subsequent installments shall be in the amount of $957,500. The second installment shall be due within ten (10) days of (a) Dayton's commencement of construction of the remodel of the DDC Building; and (b) written notice by Dayton's to Developer of the commencement. Each subsequent installment payment of the Capital Contribution shall be made on the first day of the next seven (7) months thereafter until the Capital Contribution has been paid in frill; provided that Dayton's is. then proceeding diligently to construct the remodel of the DDC Building or has completed the remodel. (B) To assure Dayton's that sufficient funds shall be available from Developer to pay the - Capital Contribution Developer shall, prior to December 1, 1999, either (i) pay the balance of the Capital Contribution to Dayton's in immediately available funds; or (fi) deliver to Dayton's an irrevocable letter of credit, drawn upon a financial institution reasonably acceptable to Dayton's, in an amount equal to $7,660,000. The letter of credit shall designate Dayton's as the sole beneficiary, DHC: 22467 v2 3 01/14/00 FRI 16:40 FAX 305 6629616 TALISMAN COMPANIES LLC 045 00-271 Exhibit A have a term of 14 months and provide that it may be drawn upon by presentment, accompanied by an affidavit signed by an officer of Dayton's stating one of the following: (i) The Capital Contribution is not yet fully paid and Developer has failed to renew this letter of credit at least 20 days prior to its expiration datc, or (ii) Developer has failed to pay when due all or a part of the Capital Contribution, or (iii) Developer or a general partner or affiliate of Developer has filed, or had filed against it, a bankruptcy petition, or (iv) A receiver or trustee has taken possession or control of a substantial portion of Developer's assets or the assets of a general partner or affiliate of Developer. If Dayton's draws on the letter of credit, the proceeds shall be retained by Dayton's and used to fund the Capital Contribution. Amer Dayton's has obtained the fiuaal payment for the Capital Contn'bution, any portion of the proceeds thcn held by Dayton's shall be forthwith delivered to Developer, it being fully understood and agreed that no interest shall accrue to Developer on the funds held by Dayton's, and further that if the funds held by Dayton's are insufficient to cover the Capital Contribution, Developer shall immediately pay such deficiency. Dayton's agrees to pay, in the form of a reduction in the Capital Contribution, the fee incurred by Developer in Obtaining the Letter of Credit, not to exceed $81,600. 4. Remodel of ADC Building. Provided that Developer completes in the manner required hereunder the Mall Renovation, Dayton's shall spend at least as much of the Capital . Contribution as it actually receives from Developer to remodel the DDC Building according to plans and specifications to be developed by Dayton's in its sole discretion (the "DDC Building Renovation'). The Capital Contribution may be used for all planning, design and ,soft costs, including the cost of internal staff time, as well as the cost of construction material and labor ("Project Costs'), Dayton's shall exercise reasonable efforts to complete the DDC Building DHC: 28467 v8 4 01/14/00 FRI 16:40 FAX 305 6629616 RESOLUTION NO. 00-21 TALISMAN COMPANIES LLC Exhibit A Renovation, subject to force majeure, within 24 months of the date of this Agreement. Prior to commencement of the DDC Building Renovation, Dayton's shall provide to Developer, as a courtesy copy only; a written description of the scope and design of the DDC Building Renovation. To evidence completion of the DDC Building Renovation, Dayton's shall provide a written certification (the "Certificate") from an officer that the DDC Building Renovation is, complete and that Dayton's has incurred Project Costs at least in the amount of the Capital Contribution actually received by Dayton's: Upon giving written notice to Dayton's within six months of the date of the Certificate, Developer shall have a one-tune right to review Dayton's invoices and payments evidencing Project Costs. The review shall occur at Dayton's central property administration offices on a date and at 'a time reasonably acceptable to the parties. I1046 5. CAM Contribution. Effective as of January 1, 2000 and notwithstanding anything to the contrary in Articles M X, and XVM and ,all other provisions of the Operating Agreement, Dayton's agrees to contribute $183,600 annually toward the cost and expense of operating and maintaining the Enclosed Mall and the Shopping Center, including both Exterior Common Area and Interior Common Area Maintenance and Expense, as well as all contributions to any merchants' association, promotional fund or any other Enclosed Mall or Shopping Center fees or costs ("Mall Costs'). This amount shall be payable in annual installments in advance. Dayton's obligation to contribute to Mall Costs shall continue only for so.long as both of the following occur. (a) a retail store on the DDC Site (i) is required to be operated pursuant to the Operating Agreement; or (ii) is tieing' operated; and (b) the Enclosed Mall W continues'to be open and operating in accordance with the terms of the Operating Agreement and this Separate Agreement,'(ii) continues to - abut and the retail store on the ADC Site is permitted to have an opening into the Enclosed Mall, and ('iii) oxtends at lust 500 feet from the retail store on the DDC Site. t DHC: 23467 v8 5 1 4000* 01/14/00 FRI 16:0 FgAl 0 6628616 TALISMAN COMPANIES LLC Z047 E~IU. 0 Exhibit A i Should the Enclosed Mall be closed for any reason for more than thirty (30) consecutive days in any one year, Dayton's annual contribution shall lie prorated on the basis of 360 days, and payment shall be. made only for the - days it its oRen. Dayton's annual contribution to the _ operation and maintenance of the Mall shall bq increased every three (3) years by five percent (5%) of the then amount of the annual contribution commencing on January 1, 2002 and thereafter on the third (3rd) anniversary of each sdeh adjustment date during the term of the Operating Agreement. 6. Percentage Fee. 1 i 6.1. Imposition of Fee. Effie tdve as of the completion of the DDC Building Renovation, as evidenced by the Certificate; Dayton's shall pay to Developer, in lieu of additional contributions for special assessments and Mall Costs beyond those provided for in this Separate Agreement, a percentage fee equal to (i) one percent (1%) of Dayton's annual Gross Sales, if any, (as defined below) exceeding Tarty-five Million Dollars ($35,000,000) and up to Forty-five Million Dollars ($45,000,000); and ono-half *of -one percent (1/2%) for Dayton's annual Gross Sales in excess of Forty-five "on Dollars ($45,000,000). Such percentage payment shall be paid on an annual basis widA 124 days after the end of each calendar year (the "Payment Ycaz"). ; 61. Disclaimer. Notwitbs*ding anything to the contrary contained herein, Dayton's shall have no obligation, express or implied, to pay any percentage fee if Dayton's annual Gross Sales for any Payment Year are, for :any reason whatsoever, less than the breakpoints specified in this Agreement Daj►on e 's makes no representation or Warranty, express or implied, that any Gross Sales will be gnerated at the DDC Building- Except as to be provided in the Amendment as contemplated=;by Sectio)i 14.2 of this Agreement, but Otherwise notwithstanding anything to the contrary con`ftained in this agreement, neither Dayton's nor any successor, assignee or tenant of Dayton's, sW1 have any obligation, express or implied, to open any business at the DDC Site, to remain open for business in the event a business is opened at the DDC Site, to reopen for business in the eve a Jusiness is opened at the DDC Site and then closes, or otherwise to conduct any business a the DDG Site. i ; DHC, 794 67 v8 01/14/00 FRI 16:41 FAR 305 6629616 TALISMAN COMPANIES LLC RESOLUTION NO. 00-21 Exhibit A 6.3. Records. Dayton's shall and matte available to Developer complete and accurate records of its Gross Sales, incluftt all pertinent original sales records. Dayton's statements of Gross Sales and all information obWned from examination of Dayton's books and records shall be deemed strictly confidential shall not be disclosed to any third parties. Within 120 days following the end of each Payment Year, Dayton's shall furnish to Developer a statement of Gross Sales made during such Payment Year. If the annual statement shows that a percentage payment is due, the annual statement due. Dayton's records relating to Gross Sales inspection by Developer or-its duly authorized r be accompanied by payment of the amount on or for the DDC Building shall be open for during regular business hours for a X1048 period of one year after each annual statement'' Grow Sales is submitted. At any time within such period, Developer may audit Dayton's rei?ords of G=ross Sales for the preceding Payment Year. If any such audit discloses an inaccurmp► in Dayton's statement of Gross Sales, Dayton's shall make prompt paym=ent of any deficiency. such audit discloses that Dayton's under-repoi shall pay the cost of such audit unless Gross Sales by more than 3%, in which event 1 Dayton's shall pay the reasonable cost of such s 6.4. Definition of Gross SAM. "Gross Sales" means the entire amount of the ordinary course of business to retail of Dayton's. All of the following shall be For purposes of this Agreement, the term atal salei price of all merchandise sold in the the DDG Building by Dayton's, or any tenant d from "Gross Sales": (a) Any sums collected and Maid out fog; sales or excise taxes based on the sale of merchandise and n wed by law; whether now or hereafter in force, to be paid by Dayton's or : is tenant or collected from its customers, to the extent that such taxes been included in the gross sales price. (b) The exchange or traasfe' j of merchandise between the stores of Dayton's or its tenant, provided= such exchanges or transfers of merchandise are made solely for the convenient operation of the business of Dayton's or its tenant and not for the pt.rpose of consummating a sale made at, in, from, or upomthe DDC Build i DHC: 28467 v8 ; ; 7 _ 01/14/00 FRI 16:41 PAX 305 6629616 TALISMAN COMPANIES LLC 9049 RESOLUTION NO. 00-21 - i Exhibit A kj 1= (c) The amount of returbs tv,*ppers or manufacturers. (d) The amount of any promotional allowances. k (e) The amount of any cashi or credit refund made upon any sale where the _ merchandise sold, or tome part thereof, is returned by the purchaser. (f) Sales of fixtures.t (g) Sales from vending mectnies. (h) Sales of postage A l W Rental fees or sales of j fees. (j) Sales of tickets (mclu jt'ag airline, lottery tickets and all ticket master sales). (k) Sales of money orders. (1) Tips and gratuities paid o ~znployees of Dayton's or its tenant (whether in cash, by credit card or charge account). (m) Bad cheeke and unroll credit and charge accounts. (n) Any sums and credits ' zFlved in settlement of claims for loss or damage . to merchandise in stockrrrtransit to Dayton's or its tenant. (o) Any sale in bulk of R~ .9'r substantially all of Dayton's or its tenant's inventory in connection;'~wtth the sale or trander of Dayton's or its tenant's business or the cessaii of such business. (p) Any tent and 6046cy charge paid by any tenant, concessionaire, licensee, dr other third~rly; provided the gross sales of any such party have been included in `gross Sales". , (c) Any deposits, recei*i fees and other amounts relating to any banking egdless of whether said banking facility or business facility or,business,r I a; is operated by Dayton's or by any tenant, concessionaire, licensee or other , third party. t (r) Gift certificates. (s) Sales of materials fdr ;cliuag. (t) Sales to employees' o j 'qualified annuitants of Dayton's, its affiliates or subsidiaries. _ t 1 a3 tl t Dxc, 28467 va j ti~ yt, 01/14/00 FRI 16:41 FAX 305 6629616 TALISMAN COMPANIES LLC 9050 RESOLUTION NO. 00-21 1 Exhibit A (u) Sales transacted through, internet, e-mail or electronic means which are fulfilled from stock toCOA at the DDC Building. (v) Any reimbursement fo'r' and/or handling fee paid in connection with, ' coupons or store coupons). coupons (whether :a;l 7. Real Estate Taxes and Special ,Assessments. Notwithstanding anything to the contrary in Article X11 or any other prorma' of the Operating Agreement, Dayton's shall, effective as of July 1, 1999, be obligated pay only those real estate taxes and special assessments assessed against the DDC Site, FD ~C Building and the DDC Parking Area, provided that in no event shall the DDC Parking Area.o obligation to contribute to the real estate a Equitable Site or any other portion of the S, Dayton's in reconfiguring the• DDC Parking special assessments or other similar charges Parking Area as a result of the Mall Remvat for such assessments or charges. The land shall aot becomc subject to a na~inimuin public financing which supports either direct] have the exclusive right to protest real estate ,id 390,000 square feet. Dayton's shall have no and special assessments assessed against the ping Center. Developer shall cooperate with ;a to constitute a separate tax parcel. If any assessed against the DDC Site, Building or peveloper shall promptly reimburse Dayton's uting the DDC Site and the DDC Parking Area it for rest estate tax purposes as a result of any Wdirectly the Mall Renovation. Dayton's shall and special assessments assessed to the DDC Parking Area. 8. Utilities. Notwithstanding E 'c1e ,XL of the Operating Agreement, Dayton's obligations under that Article shall not in any 'ne calendar year exceed one hundred five percent (105%) of the amount paid under that Artrlj : die preceding year. At no time shall Dayton's be liable under the Operating Agreement Or' y; costs of replacing or maintaining the heating, air conditioning and ventilating system t1W pct, d be categorized as capital costs under generally . accepted accounting principles. DHC: 23467 v8 j ' ' 01/14/00 FRI 16:42 FAIL 305 6629616 TALISMAN COMPANIES LLC RESOLUTION NO. 00-21 - ; E; 9. R_pe urchase Right. } 1 Exhibit A 0 051 9.1 Grant of Option. open irrevbcably agrees to waive the right to t repurchase under Section XLII(E) of the ' g Agre bent in consideration of the right to s : repurchase provided in this Section. AY, no 'thstanding Article XLII(1) of the Operating Agreement, but subject to Seetiom `of this Agreement, if (a) Dayton's discontinues operation of the DDC Building for a single • , ! tis D purpose for a period of one hundred eighty i. ~ _II (180) consecutive days; (b) Dayton's transf ' its ownership and operation of the DDC Building !M' except to an affiliated or related entity or W nnection 'th a financing or sale/leaseback type Ey transaction; or (c) Dayton's. otherwise desire j Agplemeni the procedures of this Section 9 after . the period of Dayton's operating covenant coat 'm* lated b,, Section 15.2, Dayton's shall provide Developer with prior written notice thereof; ° j • a ninety (90) day period after the date of the written notice or action (the "Option Period; veloper have the option (the "Option') to require Dayton's to convey to Developer I6DC Site and the improvements located thereon (exclusive of trade fixtures and merchandise tayton's operty'~ for a purchase price equal to the Fair Market Value as defined in S ' 9! 2. D . eloper may exercise the Option by ; Providing written notice to Dayton's of its glio'n to p together with an earnest money deposit of $1,500,000 by wire or certified r hc~ k ~xnade p gable to Dayton's during the Option Period, time being of the essence. The eney deposit shall be non-reftmdable, but shall be applied to the purchase price. if Develo ldos not :Pvlde written notice within the Option Period, then Developer shall have no right ` this A ement to purchase Dayton's Property on that or any other occasion and all of Devi o'. :s rights under this Section shall terminate. 9.2 Determination of Fai fair market value of the Dayton's Propet excluding any contribution to that value of 1 this Agreement, multiplied by any increat between the date of this Agreement and Period. Developer and Dayton's shall the Dayton's Property at the time of the " cannot mutually agree upon that Fair Marla r; it et Value. "Fair market Value" shall mean the ~he of the execution of this Agreement ;,,remodel f the DDC Building contemplated by 1 - the Cost of Living Index as hereafter defined late of receipt of notice commencing the Option 1. ; itoimutually agree upon the Fair Market Value of !fin of this; eement. If Developer and Dayton's ~alue within sixty (60) days af ter the date of this 14 01/14/00 FRI 16:42 FAX 305 6628616 RESOLUTION NO. 00-21 TALISUN COMPANIES LLC - 1 4 ` 1 1 :'1i, Agreement, Developer and Dayton's shall,~l' period, each select a person to act as an promptly mutually select a third appraiser. If third appraiser, the third appraiser shall sE Institute of Real Estate Appraisers or a su . i..l ` person designated as an appraiser shall be iics regional shopping centers and be members d tl No appraiser shall be in the employment of agent, except in connection with the appi otherwise confer as deemed necessary to det of value of any two or all of the appraisers deemed to be the Fair Market Value. If 14 F amount, the two closest in appraised value s disregarded and the result of such averaginj decision of the appraisers shall be in writing designation of the last additional appraiser,' date of the designation of the last additional; shall be borne equally by Developer and D any part of the other's attorneys' fees or app The Fair Market Value at by multiplying the initial Fair Market V numerator of which is the Current Index Number. The "Base Index Number" shall,. this Agreement is dated; the "Current Index in which the Option is exercised; the "Inds Consumers, U.S. City Average, All items States Depa tinent of Labor (base year hereinafter provided. If publication of the ; Index is materially changed, then the pantie computed by an agency of the United DHC: 28467 v8 p, , Exhibit A in fift4a (15) days after the sixty (60) day ser and the two (2) selected appraisers shall initial two (2) appraisers cannot agree upon a rated by, the then President of the American F A procei line the F. ' 1` be ide rminatic 1 be aver4 usll be dee m exercising similar functions. Any and experienced in the appraisal of L Institute of Real Estate Appraisers, ayton's, directly, indirectly, or as an ag. The appraisers shall meet or Market Value. If the determination in amount, that amount shall be of all appraisers shall be different in l and the remaining appraisal shall be to be the Fair Market Value. The , shall be 'made as promptly as possible after the in no- event later than thirty (30) days from the raiser. Ili costs and expenses of the appraisers n's; however, no party. shall be responsible for 1 procest costs with respect to the proceeding. F ~ t of the ekercise of the Option shall be calculated FI i . 1 ~ 311l~ ~ ender this Agreement by a fraction, the and the. denominator of which is the Base Index i level o the Index for the month during which (i " shat: be the level of the Index for, the month _ S ball ~i be the Consumer Price Index for All Urban shedd by the Bureau. of Labor Statistics of United ~ -$4=10d , or any successor index thereto as ii I dUco~i~thmed, or if the basis of calculating the substitute for the Index comparable statistics as IM 05 2 1 s Government or, if none, by a substantial and. ti 01/14/00 FRI 16:43 PAX 305 6629616 TALISMAN C(MPANIES LLC ~j053 RESOLUTION NO. 00-21 Exhibit A t responsible periodical. or publication of recog6 d authori .y most closely approximating the result y which would have been achieved by the 9.3 Terms of Purchase. the detelrmination of the Fair Market Value of the Dayton's property, the provisions of :this lion 9 shall be deemed to be a purchase and sate agreement (the "Purchase Agreement") based n the fo; lowing terms and conditions: f ' • i (a) Purchase Price. The ,price shal: be the greater of (i) Dayton's Book Value of the Dayton's Pro = I ; or (u) Fair Market Value of the Dayton's Property as determined under 'on 9.2. (b) Manner of Payment. The purq.se price sl-all be paid by wire transfer. i (c) As Is Condition. The Daytor '4 perry be sold in an "as is" condition as of the closing date without any ' sentati or warranty, express or implied, by Dayton's. ' - iA (d) Title. Upon close of escro, Developer or Developer's n Dayton's acts only, subject easements of record, (ii) n 's shall convey the Dayton's Property to e by spacial warranty deed warranting against to (1) c ovenants, *conditions, restrictions, and, real property taxes and assessments prorated to the date of close Developer in writing within option to purchase arises, mortgages, deeds of trusts ; Property by Dayton's, for v As to items (i) and (n- DHC. 28467 v8 P Property any use restrictio date hereof that restrict' the Property. Developer may, policy of title insurance's wins, I and (iii) matters disclosed by Dayton's to (30) dayls after Developer's right to exercise the r than : iens and security interests (such as to like) i oluntarily placed against the Dayton's Dayton'.: shall obtain a recordable satisfaction. Ws shat : also remove from title to Dayton's tced agar the Property by Dayton's after the is of- retail use that can be made of Dayton's expense, obtain upon close of escrow an ALTA. :ended coverage issued by a title, company with I _ 01/14/00 FRI 16:43 PAX 305 6629616 TALISMAN COMPANIES LLC 0 054 11-1 Exhibit A RESOLUTION NO. 00-21 .j e of the Dayton's Property and insuring fee pric liability equal to the full it. simple title vested in Deveor Developer's nominee, subject only to the matters specified in (i), (i) an~ 1 1;u) above. (e) Deed Upon opening of esc Dayton's shall deposit with Escrow Holder (as S. } hereinafter defined) a deed ig, a form specified in (d) above to convey to the I.! Developer Dayton's Property l d bill of sale and other documents reasonably c, owledged necessary, duly executed and ,i u{ sta ' (f) Assumption. Upon opening==., escrow, Developer shall deposit with Escrow Holder all instruments, and ~i dence of completion of all acts, necessary to ;J release Dayton's as of the close : f escrow to the fullest extent from its obligations under the Operating Agrz% and.containing an assumption by Developer of all duties, obligations and cq' Operating Agreement, togetho* is 1 defend and hold Dayton's ha I: occurring after the sale of the 0, 1 ants imposed upon Dayton's pursuant to the ;th Developer's covenant to indemnify, protect, ss from and against any claim, loss or damage ton's Property to Developer. (g) Closing Costs. Developer ata, Dayton's shall each pay one-half (1/2) of any escrow fee for the sale and p ► 5 a of the Dayton's Property. All otbar costs and closing expenses shall be (h) Taxes. Developer and of special assessments aide Developer. ' i " tons shall prorate the real estate taxes and installments assume payment of any i thereafter. Within thirty (30) days after the exercise escrow (the "Escrow') with an escrow coi and deposit a signed copy of this scheduled to close no later than thirty :}pyable in the year of closing and Developer shall eats of special assessments due and payable 1t; + €option, Developer and Dayton's shall open an Ind ("Escrow Holder") mutually acceptable to them with Escrow Holder. The Escrow shall be )s ys after the opening thereof. Developer and r• DHC: 28467 v8 ~Y 01/14//000SO 116:4 NA 0052§629616 TALISMAN COMPANIES LLC Exhibit A Q055 Dayton's shall promptly sign standard form d - escrow instructions supplied by Escrow Holder; provided, however, in the event of a confl!i in the escrow instructions and the Purchase Agreement, the terms of the Purchase Agtee~ierrt shall control. 9.4 Developer's Rids Pending Exercise. No rights granted to Developer pursuant to this Section 9 shall create any J1 hts in Developer to participate in any award or proceedings of any taking by eminent domak or deed in lieu thereof or to participate in any insurance claim, or to otherwise make any c of right or ownership of the Dayton's Property, and this option shall automatically terminate to any portions of the Dayton's Property so taken or conveyed. , 10. Extended Dark 'Period. Nod 'tbstanding the provisions of Section 9, no repurchase right will be created if Dayton S d~eonemues operation of the DDC Building for a period of up to eighteen (IS) months as a ;esll : of a conversion of the DDC Building to another retail format and attendant remodel or recou ruction of the DDC Building (the "Conversion Remodel."). In order to exercise this right, Ii ~tou'ls shall provide Developer written notice at least thirty (30) days prior to the cessation of orations and Dayton's shall have commenced the Conversion Remodel within nine (9) months of the cessation of operations. In connection with any Conversion Remodel, Developer shall, ui n written request from Dayton's, convey to Dayton's such additional land as is necessary ' order to expand the DDC Site to include all of the Permissible Building Area shown on the Plan at a purchase price of Ten Dollars ($10.00) and otherwise on the applicable terms of ` 'on 9.3. In connection with such conveyance, Developer shall cooperate with Dayton's to ; end the Operating Agreement to define the DDC Parking Area to include only so much of I existing DDC Parking Area as is required to maintain the required parking ratio for the I II ber of square feet within the remodeled or reconstructed DDC Building. Developer steal td, Aso cooperate with Dayton's in reconfiguring as a separate tau parcel, the DDC Site, Building' newly reconfigured DDC Parking Area. From the date of the conveyance of the additionaDayton's shall only be responsible for real estate taxes and special assessments, to the! lxtent required under Sect ion 7, on this newly 1 - reconfigured tax parcel. i DHC: 29467 A 40 01/14/00 FRI 16:44 FAX 905 6629616 TALISMAN COMPANIES LLC RESOLUTION NO. 00-21 Exhibit A 11. Kiosks. No kiosks, retail erchandasing units or push carts (collectively "Kiosks') shall be placed within one him& Enclosed Mall, except for the existing Kiosks such consent to be granted or withheld in (100) feet of the Dayton's entrance .onto the awn on the Site Plan, without Dayton's consent, s sole discretion. 12. Dayton's Court. Dayton's shall have the right to review and approve the design of the area within the Enclosed Mall within three hundred (300) feet any opening to the DDC Building (the "Dayton's Court') at all tim I during the term of the Operating Agreement, including the decor, the amenities, the layout- the color, the materials, the decorative elements and the furnishings as they are changed from e to time, excluding tenant entrances, facades or interiors. Dayton's shall also have the right to approve any restaurant within the area designated on the Site Plan as the Dayton's Restaurant Area, including the format of the restaurant, the operator of the restaurant, the design and layout of th'a I restaurant and the operating procedures of the restaurant with respect to deliveries, trash oval and other procedures that will impact Dayton's. 13. Take Over Right Dayton's to take over from Developer and assume the < the common utility facilities) on the DDC R Dayton's sole discretion, materially impairs exercise this right by written notice to Dev have the right at any time and from time to time, igadon to maintain the Common Area (excluding if Developer's conduct of the maintenance, in conduct of Dayton's business. Dayton's may designaiing a date (which date shall be no fewer than thirty (30) days thereafter), as of which it shall perform, for the portion of the Common Area located on the DDC Site, thereto under Article IX of the Operating A notice, Dayton's shall `(a)'be deemed to have relieved of) such obligations and any other the maintenance and operation on that portio relieved of all liability to pay ninety. percent this Separate Agreement for any period of DHC: 29467 v8 2056 1 obligations assumed by Developer with respect ll eement Upon the effective date provided in the sumed (and accordingly, Developer to have been higations of Developer under this Agreement for of Common Area on the DDC Site and (b) be L L of its payment required under Section 5 of e thereafter while such take-over continues. 1!5 40 67 01/14/00 FRI 16:44 FAX 305 6629616 _ TALIS CompANIES LLC RESOLUTION NO. 00-21 Dayton's may at any time thereafter, at its days written notice to Developer, provided, take-over as specified above. No cancellatio Area on the DDC Site shall, at such time s approximately as good a condition as when Exhibit A X1057 )lion, rescind its take-over, by at least thirty (30) ather, that Dayton's may again serve a notice of of take-over shall be effective unless the Common the cancellation is intended to be effective, be in maintained by Developer, reasonable wear and tear excepted. During such period of time Dayton's may have taken over and be performing the Common Area maintenance obligations the DDC Site pursuant to this Section, Dayton's at its own cost and expense, shall provide the conforming to the requirements of the 01 "additional insureds", which insurance o self-insurance; and Developer shall be reliev liability insurance for the DDC Site during st Area liability insurance on the DDC Site, Agreement, naming all other _parties as may be satisfied by its program of of the obligation to provide such common Area period of time. 14. Remodel Space. Developer that Dayton's is conducting its remodel of the this Separate Agreement, one mall shop spay to 5,000 useable square feet to be used by D and inventory displaced by the remodel. Da; and shall operate the space during the mall's at its expense, up to two times during the not be subject to any rent, tax, common area, 1 provide to Dayton's diming the period of time x Building, as contemplated under Section 4 of fully served-by- utilities, of approximately 2,000 en's to merchandise' and sell clearance inventory ,'s shall finish the space to its own specifications rating hours. Developer may relocate the space, of Dayton's use. Dayton's use of the space shall 'ity or other occupancy expense of any kind. 1.5. Amendment of Onerafm Agreement. The Operating Agreement shall be considered amended as follows and Dayton's and Developer agree to execute deliver and Developer agrees to exercise its best effort, to obtain execution and delivery from all other required parties of an amendment (the "Amendment! to the Operating Agreement that will provide for the following items: 15.1. Site Plan. The Site Plat attached as Exhibit X to this Separate Agreement shall be substituted for the Site Plan attachedhto the Operating Agreement- DHC: 28467 A 16 01/14/00 FRI 16:44 FAX 305 6629616 _ TALISMAN COMPANIES LLC RESOLUTION NO. 00-21 - Exhibit A 15.2. Dayton's Operating Cbeenant. " Provided that Sears and J.C. Penny have given similar operating covenants, Articles (B) and XLI of the Operating Agreement will be amended so that Dayton's will provide a e year operating covenant under the following language: Dayton's covenants and agree, with and for the benefit of [Developer] and its successors and assigns, which covenants and agreements are expressly conditioned upon the performance by [Developer], its successors and assigns of its obligations under Article [reference to Amendment' m 1Son' contemplated by Section 15.3]. (A) . that for a perio [DDC Building Remodel, as establW earlier to occur of (i) , January 31, 2( Period"), Dayton's shall continuously (the "Dayton Department Store"}, su majeure; (b) damage by fire or other the DDC Building, each of which ped reasonably possible in accordance will commencing. on the date of completion of the 3 under the Certificate] and terminating on the 1; or (ii) three years thereafter (the "Operating Aerate on the DDC Site a retail department store act only to interruptions by reason of (a) force ,salty; (c) condemnation; and (d) the remodel of is of interruption shall be minimized to the extent he terms of this agreement; (B) that the Dayton Department Store shall at all times during the Operating Period be a retail departme4 store as operatedby Dayton's on the DDC Site at the date of this agwcment, as such ' lion may. be modified from time to time by Dayton's, in its sole discretion, to such retail department store competitive with other department stores of similar type character and nature; (C) that at all ties during the Operating • Period the Dayton name "Dayton's", "Dayton" or under such the Department Store shall be operated un t~DM other name or names as Dayton's may m time to time use for a majority of its 'similar retail department stores in the State of esota; (D) that the Dayton Department Store shall at all tunes during the Operating Period and thereafter for so long as Dayton's or its successor(s) operates a retail store on the DDC Site have a Abross Floor Area of at least 200,992 square feet, subject to the effects of any taking in 1ondemnation and shall have at least two levels at and above ground level; , (E) that. the Dayton: Department Store shall at all times during the Operating Period have at least one (1) entrance onto the Enclosed Mall open during the business hours.of Dayton's and the Ma 1; (F) ` that during the Operafing Period Dayton's shall operate one hundred percent (1006/6) of the Dayton Department Store as a retail department store of the type, character and nature provided for in this Article, in a high class and reputable manner and in accordance with the pi el visions of this Article, which store shall be open DHC: 29467 v8 9 058 I 1111100 ?&1W 05116629616 TALISMAN COMPANIES LLC Exhibit A ~I 059 for business during the regular and customary hours on all business days observed by at least one other Dayton's Store operating in the Minneapolis/St. Paul, Minnesota metropolitan area, subject to interruption of the nature described in paragraph (A) above, and in connection with such. operation Dayton's shall not violate any of the other provisions of the operating Agreement which are applicable to the operation of the DDC Site. It is understood that at the date of this agreement Dayton's operates two basic types of department stores, "Dayton's", "Hudson's" and "Marshall Field's" department. stores, which are its higher quality retail operations, and "Target" department stores, which are its discount operation. It is agreed that the Dayton Department Store is now and will continue during the Operating Period to be operated as one of Dayton's higher quality retail operations, and not as one of its discount operations. The pmvisiigns of this Article XLI shall be binding upon Dayton's and its successors and assigns, and- shall inure to the benefit of (Developer) and its successors and assigns. 15.3. Developer's Opeerati= Covenant. Article VI(B) of the Operating Agreement shall be amended so that Developer shall provide an operating covenant under the following language: So long as DDC and Dayton's perform their respective obligations under Article VI(B) and Article X L1 hereof (as amended), [Developer] shall, for a period comineac. 9 on the Effective Date and ending on the date Dayton's no longer operates a department store as described in Section XL 1 (as amended) W continuously operate or cause to be operated the Enclosed Mall pursuant to the terms of this agreement under the name "Brookdale Center"; (it) keep. seventy-five percent (75%) of all Gross Floor Area in the Enclosed Mall exclusive of the department store and theatre or cinema space leased to tenants comparable in quality to those occupying space in major regional shopping centers of similar size in the Minneapolis-St. Paul metropolitan area in which a Dayton's store is located so as to provide a wide range of retail and related consumer services except during the Mall Renovation; and (iii) furnish or cause to be famished to the MC Facilities adequate steam, chilled wata, domestic water, water for fire protection and electricity, in accordance with and subject to the terms and conditions of Article XL hereof- In the event of condemnation and/or damage or destruction from fire or any casualty as provided in Articles XVI and XV1I of this agreement, wherein restoration is required, (Developer] agrees that such restoration shall be done in a manner (in the event of condemnation, to the extent reasonably feasible) to provide tenant spaces equally distributed throughout the restored Shopping Center so as to avoid "clustering" of rentable Gross Floor Area in a single section of the restored Shopping Center. DHC: 28467 v8 18 01/14/00 FRI 16:45 FAX 505 6629616 - TALISMAN COMPANIES LLC Q060 RESOLUTION NO. 00-21 - Exhibit A 15.4. parking Ratio. Section VII (C) of Operating Agreement sh211 provide for parldng ratio of 4.5 throughout the Entire Premises (including all outparcels). 15.5. )Uvht to Take Over, Dayton's and the operator of the parcel of land currently occupied by Mervyn's shall be granted a right of take-over as is provided for in Section 12 of this Separate Agreement. 15.6 Conversian Rights. Dayton's shall be afforded the right to convert its retail format after the Operating period, expand the DDC building to the Permissible Building Area shown on the Site Plan and remodel or reconstruct the DDC Building to accommodate such conversion and to reconfigure the DDC Parking Area as contemplated by Section 10. 16. A rma fioiof Qpera in memen an Surmler~enta_l. Except as provided herein, the terms and provisions of the Operating Agreement and the Supplemental shall remain in full force and effect. 17. 13gdces. Any notice required or permitted to be given with respect to this Agreement shall be given in the manner provided in the Operating Agreement and sent to the addresses of Developer and Dayton's as set forth therein or-as provided by written notice sent by the parties. 18. Assignment. This Agreement is not assignable by either party other than incident to an assignment of either party's interests under the Operating A.greement. This Agreement inures to the benefit of Developer and Dayton's acid their respective successors as the owners of the Developer parcel and the DDC Site, respectively. 19. ov i aw_. This Agreement shall be governed by and construed in accordance with the laws ofy or applicable to, the State of Minnesota. 19.1: jnda Excul an tion. If Developer's first mortgage lender succeeds to Developer's interest in the Shopping Center, Dayton's agrees to look solely-to the interest in the Shopping Center of such lender for recovery of damages for the breach of Developer's obligations under Section 2 to spend $55,004,000 as Mall Renovation. vHC: 28467 v9 19 01114 ~ T ~8j 9 5N C"-L 16629616 TALI SMAN COMPANIES LLC Exhibit A X 061 20. Cross-Default and Contemporaneous Signatures. Dayton's shall not execute and deliver this Agreement unless Developer executes and delivers to Dayton's a Separate Agreement relating to the Mervyn's store and land located within the Shopping Center. So long as Mervyn's and the DDC Site are owned by, related or the same entities, any default by Developer under the Mervyn's Separate Agreement to Operating Agreement dated on the date hereof between the parties hereto skull be a default of Developer under this Agreement. IN WITNESS WHEREOF, the parties have executed this Separate Agreement to be effective as of the day and year first above written. TALISMAN BROOKDALE, LLC, a Delaware limited liability company 1 DAYTON J#JDSON CORPORATION, d/b/a Dayton's By: _ ~d J. Blenr~an J400dted Signatory neap. eQeea..s nn 01/14/00 FRI 16:46 FAX 305 6629616 - TALISMAN COMPANIES LLC Q062 _ RESOLUTION NO. 00-21 - Exhibit A Srwkdale FIRST AMENDMENT TO DAYTON'S SECOND SEPARATE AGREEMENT TO OPERATING AGREEMENT BROOKDALE CENTER 01AM000 THIS FIRST AMENDMENT is made as f January , 2000 between TALISMAN BROOKDALE, LLC, a Delaware limited liability company ("Developer"), and DAYTON HUDSON CORPORATION, d/b/a Dayton's, a Minnesota corporation ("Dayton's"). RECrf:-I.S: A. Developer and Dayton's entered into Dayton's Second Separate Agreement to Operating Agreement dated-August 31, 1999 (the `Agreement'). B. Under the terms of the Agreem~nt, Developer was to have provided design development drawings and plans for the Mall Renovation by November 29, 1999; the parties were to have reached mutual agreement on the Fair Market Value of the DDC Building by October 30, 1999; and Developer was to have submitted a letter of credit or cash for the balance of the Contribution by December 1, 1999. C. None of these events have taken place and the- parties have agreed to certain extensions as provided herein: NOW, THEREFORE, in consideration o' the mutual covenants, terms and conditions contained herein and for other good and valuably~ consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby, agree as follows: 1. Capitalized Terms. Capitalized terms used but not defined herein shall have the meanings set forth in the Agreement. 2. Extension for Submission of Mall Renovation Plans and Mall Renovation. Notwithstanding Section 2 of the Agreement, (i i Developer shall have until May 1, 2000, to submit to Dayton's the proposed design dev -lopment drawings and plans for the Mall Renovation; and (ii) Developer shall have un I November 1, 2001 to complete the Mall Renovation within the Dayton's wing and the ce er court of the Enclosed Mall, subject to force majeure. In confirmation of the Agreement, if Developer fails to timely complete the Mall Renovation by this required date, Dayton's shall have no further obligations under Section 15.2 of this Agreement. 3. Extension for Pavment of Contrioution. Notwithstanding- Section 3(B) of the Agreement, Developer shall have until March 1, 2000, to comply with its obligations under Section 3(B) of the Agreement. In confrrination of the Agreement, the parties acknowledge that if Developer fails to comply with its obligations o or before March 1, 2000, Dayton's may, at its option, terminate the Agreement and thereafter n tither party shall have any liability to the other 1 DHC: 36.313-v2 01/1W90RftfM1q8kX060J16629616 - TALISMAN COMPANIES LLC ExhibitA under the terms of the Agreement. Notwithstanding such termination, all of the payments made and concessions accrued as of the date of termination shall not be refundable. _.4. Extension for Remodel. Notwithstanding Section 4 of the Agreement,-Dayton's shall exercise reasonable efforts to t;omplete the DDC Building Renovation subject to force majeure, on or before June 1, 2002. 5. Definition of FMV. For purposes of Section 9, the parties agree that the "Fair Market Value" of the Dayton's Property at the-time of execution of the Agreement excluding any contribution by the remodel of the DDC Building is Dollars (S 1. 1 5. Confidentialitv. The parties agree not to disclose the financial terms of this Agreement except as agreed to by the parties or when required by any law or any governmental regulation or order. 0063 7. Affirmation. of Ae reement Except as modified herein, the terms and conditions of the Agreement shall remain in full force and effect. Dated the day and year first stated above: TALISMAN BROOKI)ALE, LLC, a;Delaware limited liability company Its: _ DAYTON HUDSON CORPORATION, dth/ki Dayton's By. Its: 1 nur•,%on i i ,n f . 1 . ' i 4 RESOLUTION NO. 00-21 Exhibit B EVALUATION OF PROPOSED BROOKDALE BUSINESS SUBSIDY A. MANJ)ATORY CRITERIA All Projects must comply with the following criteria: 1. But For Test. There is a substantial likelihood that the Project would not go forward without the Business Subsidy. This criterion may be met based solely on representations of the recipient of the Business Subsidy. The Recipient has represented that the project cannot go forward without the proposed use of tax increment financing on a pay as you go basis. 2. Wage Policv. If the Project results in an obligation to create new jobs pursuant to a subsidy agreement, the wage for each part-time and full-time job required to be created pursuant to the subsidy agreement shall, within two years of the benefit date, pay at least $7.00 per hour. The Redevelopment Agreement requires the creation of at least 93 jobs paying at least $7.00 per hour. 3. Feasibility. The recipient must demonstrate to the satisfaction of the City that the Project has been adequately financed and either has been or will be completed in a timely fashion. Recipient has provided a loan commitment and the Redevelopment Agreement requires completion of the project in a timely fashion. Also, no payments will be made unless the recipient has performed under the terms of the Redevelopment Agreement. 4. Comnlaance with Act. The Business Subsidy must satisfy all requirements of the Act. The Redevelopment Agreement requires full compliance with the requirements of the Business Subsidy Act. B. EVALUATIVE CRITERIA The following criteria recognize that the award of a Business Subsidy may serve a variety of public purposes of varying importance depending upon the specific Project facilitated by the Business Subsidy. The degree of importance to be attached to various public purposes which may be served by a particular Project must therefore involve the exercise of sound judgment after weighing all relevant criteria. Not all evaluative criteria will be applicable to all projects. In any event, the City may disregard any evaluative criterion it determines to be either irrelevant or unimportant in the case of the particular project, as permitted by the Act. RESOLUTION NO. 00-21 The evaluative criteria are as follows: the first full year of operation. Exhibit B 1. Jobs. The number of full-time equivalent jobs to be created or retained by the proposed Project for a period of at least two years from the estimated benefit date. The project will create at least 93 new jobs and will retain a significant number of jobs. 2. Tax Base. The net increase in property taxes estimated to be generated by the Project in The captured tax increment is anticipated to be $1,071, 000 in the first full year of valuation. 1 3. Services to the Comm. Whether the Project will provide services or facilities needed in the community. For example, the Project may provide needed health care services, commercial facilities, or other services or facilities needed in the community. Brookdale serves as the retail center of Brooklyn Center and its vitality is crucial to the economic vitality of the commercial areas around Brookdale. 4. Bighted Pronertv. Whether the Project is located on property which is, or is likely to become blighted, and is not likely to be developed or redeveloped because of the blight or other adverse conditions. If the property is not redeveloped it has the strong potential to become blighted, with a drastic negative impact on the City's tax base. 5. Design and/or Other Amenitv Concessions. Whether, as a result of the Business Subsidy, the Project will include design and/or amenity features not otherwise required by law. This criteria is not applicable to this project. 6. Comnatibilitv. Whether the Project is compatible with the comprehensive plan. The project is compatible with the Comprehensive Plan. RESOLUTION NO. 00-21 Exhibit B 7. Utilization of Existing Infrastructure Investment. Whether and to what extent the Project will utilize existing public infrastructure capacity or will require additional publicly funded infrastructure. The project will use existing infrastructure capacity. The City, with a grant from the State Legislature, previously constructed storm water system improvements to treat the storm water run-off from the project. 8. Leveraued Public Funds. The ratio of private funds which will be applied towards the capital cost of the project compared to the Business Subsidy. $2.9 Million Tax Increment Financing Note will be leveraged in a Redevelopment Project which includes in the recipient's redevelopment budget. $11.7 Million Department Store Contributions, $7 Million tenant improvements, and at least $21 Million in mall improvements). 1 9. Other Factors. Depending on the nature of the Project, such other factors as the City may deem relevant in evaluating the Project and the Business Subsidy proposed for it. The redevelopment of Brookdale has been a community priority for a number of years. The redevelopment of Brookdale is essential for the maintenance of the City's tax base and regional commercial base.