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HomeMy WebLinkAbout2000-005 EDAR1 1 1 Commissioner Kay Lasman moved its adoption: January 24, 2000 EDA RESOLUTION NO. 00_05 introduced the following resolution and 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 reviewed the proposed redevelopment agreement on the basis of the City's Business Subsidy Policy and determined that the proposed business subsidy met the mandatory criteria of that policy and was evaluated under the evaluative criteria of that policy; 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 Economic Development Authority in and for the City of Brooklyn Center, Minnesota, that the President and Executive Director be and hereby are authorized to execute the redevelopment agreement as set forth in Exhibit A, subject to such corrections or additions to the exhibits or agreement as may be necessary to finalize the document as are deemed appropriate and suitable by the City Manager and the law firm of Briggs and Morgan acting as bond counsel to the Economic Development Authority, provided such terms and conditions do not impact or affect the general terms and conditions but are merely corrections or additions to more clearly state the obligations and descriptions as set forth in the exhibits to the redevelopment agreement or minor, technical, or clerical changes to the redevelopment agreement itself. Date P sident The motion for the adoption of the foregoing resolution was duly seconded by commissioner Ed Nelson and upon vote being taken thereon, the following voted in favor thereof: Myrna Kragness, Debra Hilstrom, Kay Lasman, Ed Nelson.,: and Robert Peppe; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 00 -05 This document drafted by: BRIGGS AND MORGAN (MMD) Professional Association 2200 West First National Bank Building St. Paul, Minnesota 55101 988288.6 DEVELOPMENT AGREEMENT BY AND BETWEEN BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY AND TALISMAN BROOKDALE, LLC Exhibit A RESOLUTION NO. 00 -05 Page RECITALS 1 ARTICLE I DEFINITIONS ARTICLE II REPRESENTATIONS AND WARRANTIES 5 Section 2.1. Representations and Warranties of the Authority 5 Section 2.2. Representations and Warranties of the Developer 5 ARTICLE III Section Section Section 988288.6 Section 1.1. Definitions Section Section TABLE OF CONTENTS Exhibit A 2 2 CONSTRUCTION OF MINIMUM IMPROVEMENTS 8 3.1. Construction of Minimum Improvements 8 3.2. Construction Plans 8 3.3. Commencement and Completion of Construction 9 3 4 Certificate of Completion 9 3.5. Daytons Minimum Improvement 10 ARTICLE IV ASSESSMENT 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 EVENTS OF DEFAULT 22 Section 8.1. Events of Default Defined 22 Section 8.2. Remedies on Default 23 Section 8.3. No Remedy Exclusive 24 Section 8.4.. No Implied Waiver 24 1 1 RESOLUTION NO. 00 -05 Section 8.5. Agreement to Pay Attorney's Fees and Expenses 24 Section 8.6. 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 Legal Description of Tax Increment Financing EXHIBIT A EXHIBIT B EXHIBIT C EXHIBIT D EXHIBIT E EXHIBIT F EXHIBIT G EXHIBIT H EXHIBIT I EXHIBIT J EXHIBIT K 988288.6 District No. 03 A -1 Legal Description of Development Property'. B -1 Description of Eligible Improvements C -1 Description of Minimum Improvements D -1 Description of Daytons Minimum Improvements E -1 List of Eligible Tenants Certificate of Completion Assessment Agreement Form of Tax Increment Note Legal Description of Adjacent Development Property J -1 Daytons Lease K -1 Exhibit A F -1 G -1 H -1 01/14/00 FRI 16:25 FAX 305 6629616 TALISMAN COMPANIES LLC RESOLUTION NO. 00 -05 DEVELOPMENT AGREEMENT Exhibit A THIS AGREEMENT, made as of the day of 2000, by and between the Brooklyn Center Economic Development Authority, Minnesota (the "Authority a body corporate and politic organized and existing under the laws of the State of Minnesota and Talisman Brookdale, LLC, a "Dra,,2 .cJAzf limited liability company (the "Developer 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, and 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: 988209.6 WITNESSETH: la 002 1 RESOLUTION NO. 00=05 988288.6 ARTICLE I DEFINITIONS Exhibit A 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 Develop Pr 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; Assessor's Minimum Marke 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 Center Economic Development Authority; C'ert ficate of ComA etion 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; City 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; Daytons M'n;mum Improvements means the remodeling of the existing Dayton's located on the Adjacent Development Property as more particularly described on Exhibit E attached hereto; 01/14/00 FRI 16:26 PAX 305 6629616 TALISMAN COMPANIES LLC RESOLUTION NO. 00 -05 Developer, means Talisman Brookdale, LLC, a Flo rt i D Pr limited liability company, its successors and assigns; Development Property means the land legally described on Exhibit B attached hereto; Eligible Improvements 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; Bligible Tenants 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 e£ault means any of the events described in Section 8.1; Final Payment ate means the principal and accrued interest is days after the City receives from installment of property taxes for OAi17 AC C Exhibit A earlier of (a) the date all paid on the Note, or (b) 45 the County the second the taxes payable year 2007; Minimum Improvements 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 Paym pt Date 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; Project 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 Increment Act means Minnesota Statutes, Sections 469.174 through 469.179, as amended; Tax Increment_Distiat means Tax Increment Financing District No. 03 legally described in Exhibit A attached hereto R1003 1 1 1 RESOLUTION NO. 00 -05 988288.6 Exhibit A and qualified as a redevelopment district under the Tax Increment Act; ?'ax In _re*nent F n c; ng Plan means the plan approved for the Tax Increment District; Tax Increment Note or Note 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; Unavoidable 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. 01/14/00. FRI 16:26 FAX 305 6629616 RESOLUTION NO. 00 05 TALISMAN COMPANIES LLC ARTICLE II REPRESENTATIONS AND WARRANTIES Exhibit A Section 2.1. Representation and Warranties of the Authority. 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 Warranties of the Developer. 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 /�^tL.oieiv 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 Improvements contemplated in the Construction Plans approved by the City. R3004 1 1 1 RESOLUTION NO. 00 -05 988288.6 (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. RESOLUTION NO. 00 -05 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 costs of construction of the Minimum Improvements, payments to the owners of the Anchor Tenants 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 1 1 1 1 RESOLUTION NO. 00 -05 988288.6 ARTICLE III Exhibit A CONSTRUCTION OF MINIMUM IMPROVEMENTS Section 3.1. Construction of Minimum Improvements. 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 RESOLUTION NO. 00 -05 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 Completion. 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 1 1 1 1 1 RESOLUTION NO. 00 -05 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 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. Daytons Minimum Improvement. 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 the 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 Exhibit A RESOLUTION NO. 00 -05 Exhibit A ASSESSMENT AGREEMENT Section 4.1. Rxecution 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 $45,000,000 (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 Minnesota 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 Minnesota Statutes, 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. Real 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 ARTICLE IV 11 1 RESOLUTION NO. 00 -05 written consent of the Authority and pursuant to the provisions of this Agreement. Date: Exhibit A 988288.6 (2) The Developer agrees that prior to the Termination (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. 12 RESOLUTION NO. 00 -05 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 8.00% per annum. 988288.6 ARTICLE V DAMAGE, DESTRUCTION OR CONDEMNATION 13 RESOLUTION NO. 00 -05 ARTICLE VI TAX INCREMENT ASSISTANCE; PAYMENTS TO AUTHORITY Exhibit A Section 6.1. Preconditions to Issuance of Tax Increment Note. 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 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; 988288.6 (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, $ear'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; 14 RESOLUTION NO. 00 -05 988288.6 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. Tax Increment Revenue Note. (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 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. 15 1 1 RESOLUTION NO. 00 -05 (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. Use of Tax Increments. 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 6.4. Business Subsidy 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 305 6629616 RESOLUTION NO. 00 -05 TALISMAN COMPANIES LLC replace structurally substandard buildings. The Developer agrees that it will meet the following goals (the "Goals"): It will create at least .93full time jobs in connection with the development of the Development Property at an hourly wage of at least /,0V 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. kayments to Aut ority. 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 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 Zoos 1 1 1 1 1 RESOLUTION NO. 00 -05 or take any other action that would reduce the likelihood of such percentage rents being paid to the Developer. Section 6.6. Tax Deferrals or 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' Exhibit A RESOLUTION NO. 00 -05 988288.6 ARTICLE VII 19 Exhibit A PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER; INDEMNIFICATION 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. Prohibition 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: (i) 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. 1 1 RESOLUTION NO. 00 -05 (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. Approvals. 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 988288.6 (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. 20 RESOLUTION NO. 00 -05 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 of this Agreement, will be materially impaired by the action for which approval is sought. 988288.6 21 Exhibit A RESOLUTION NO. 00 -05 Section 8.1. events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean whenever it is used in this Agreement any one or more of the following events: (a) Failure by the Developer to timely pay any Ad valorem 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 agreementon 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 States 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 988288.6 ARTICLE VIII EVENTS OF DEFAULT 22 Exhibit A RESOLUTION NO. 00 -05 988288.6 (i) An Anchor Property and is not recognized retailer months; (j) More than leased or otherwise an Eligible Tenant; 23 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 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; Tenant vacates the Adjacent Development replaced by .another nationally acceptable to the Authority within 12 15% of the Development Property is occupied by any businesses which is not (k) any part of the Development Property is leased violation of the covenant in Section 2.2, clause (14) hereof; in Section 8.2. Remedies on Default. 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) 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. 1 1 RESOLUTION NO. 00 -05 Section 8.6. Indemnification of Authority and City. 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. No Implied 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. Agreement to Pay Attorney's Fees and Expenses. 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, 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. (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 purposes of 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 -05 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. 988288.6 25 Exhibit A 1 1 RESOLUTION NO. 00 -05 Exhibit A 988288.6 ARTICLE IX ADDITIONAL PROVISIONS 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 Interest. 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 or breach 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 26 RESOLUTION NO. 00 -05 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 Governing. This Agreement will be governed and construed in accordance with the laws of the State. Section 9.7. Expiration. This Agreement shall expire on the Termination Date unless earlier terminated or rescinded in accordance with its terms. Section 9.8. Provisions Surviving Rescission or Expiration. 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. 988288.6 27 1 1 RESOLUTION NO. 00 -05 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. 988288.6 BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY By By Its President 28 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 RESOLUTION NO. 00 -05 988288.6 TALISMAN BROOKDALE, LLC By Its general partner By Its 29 Exhibit A This is a signature page to the Development Agreement dated 2000, by and between the Brooklyn Center Economic Development Authority and Talisman Brookdale, LLC 1 RESOLUTION NO. 00 -05 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. 988288.6 Notary Public 30 RESOLUTION NO 00 -05 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. 988288.6 Notary Public 31 RESOLUTION NO. 00 -05 Exhibit A EXHIBIT A Legal Description of Tax Increment Financing District No. 03 988288.6 A -1 RESOLUTION NO. 00 -05 988288.6 EXHIBIT B Legal Description of Development Property [Insert legal description of the Center Mall Property] B -1 Exhibit A 01/14/00 PRI 16:30 FAX 305 6620616 TALISMAN COMPANIES LLC RESOLUTION NO. 00 -05 EXHIBIT C DESCRIPTION OF ELIGIBLE IMPROVEMENTS Offsite: Install a new traffic signal system at the 56ei avenue entrance to the site. Site Building Demolition: The existing J.0 PENNY automotive center building will be demolished. The existing west area retail building north of SEARS will be demolished so that the area 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 skYli8hts. Demolition of existing asphah parldng lot pavetnerd area to accommodate the new west end expansion along with the associated earthwork to accommodate the new expansion grades. Removal of the asbestos containing materials from the tenant spaces and the common areas. Exhibit A Doc B26 The following are improvements scheduled to be included in the redevelopment of the Brookdale Center project that would not be normally be anticipated as part of the renovation project. Acquisitions: Purchase of Tract C from Mervyns of California for the additional land required to construct the west new addition. Purchase of Tract D from Mervyn of California for the additional land required to construct the 10,000 SF retail space on Center on Tract D. Purchase of the J.C.PENNY budding to allow for the demolition of the TBAbuilding and to control the building use for the future. Utilities Removal of the existing utilities around the west end and the new North side entrance to accommodate the center expansion and to replace older services in these areas. Intercept the existing stony sewer lines that currently discharge directly into Shingle Creek and reroute the lines with new piping and structures to direct the North side storm water through existing watershed onsite manhole to the new water purification system across Route 100. Building Life Safety Systems Design and install a complete addressable fire ahem system that will include the individual tenant spaces. Design and install a complete system for smoke evacuation system for the mail common areas and provisions for the exhaust and supply are for the small retail tenant spaces. J 019 RESOLUTION NO. 00 -05 988288.6 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: D -1 Exhibit A 01/14/00 FRI 16:31 PAX 305 6629616 USOLUTION NO. 00 -05 Doc.B26 TALISMAN COMPANIES LLC MINT D DESCRIPTION OF MINThIUM IlKPROVEMENTS Exhibit A 021 outparceltapproved througlrthe PUD proces7 Existing Center Common Mall Arias: East Mall: Demolition of the existing ceiling system Install new skylight system. Install new bard ceiling and Lighting system Install new column enclosures and tile finishes. Install new tenant demising piers. Install new bard floor tile and base Fmish paint or install wall covering new drywall surfaces. Revise existing heating and cooling system to new ce'il'ing configuration. Install new designed kiosks Install fountain feature Install interior landscaping Arcade Mervyn Pennys) Mal: Demolition of the existing ceiling system Install new skylight system. install new hard ceiling and lighting system Instal new column enclosures and tile finishes. Install new tenant demising piers. Install new hard floor tile and base Finish paint or install wall covering new drywall surfaces. Revise existing heating and cooling system to new ceiling configuration. Install new designed kiosks Install fountain feature Install interior landscaping Central Mall: Demolition of the existing ceiling system Install new skylight system. Install new hard ceiling and lighting system Install new cohu enclosures and tile finishes. Install new tenant demising piers. Install new hard floor tile and base Finish paint or install wall covering new drywall surfaces. Revise existing heating and cooling system to new ceiling configuration. New Construction: North Side Entrance (adjacent to Daytons) Demolition of existing mall entrance Install new structural steel framing for addition. Install new metal roof deck. Install new roofing system Install new entrance facade feature materials. 01/14/00 FRI 16:31 FAX 305 6629616 TALISMAN COMPANIES LLC ,RESOLUTION NO. 00 -05 Install new entrance doors. Install new Brookdale exterior sigoage. Install new common area hard and acoustical ceiling systems Install new lighting and cove lighting systems. install new HVAC systems for the added areas. Install new wall finishes of drywall and finish paint. Install new tenant neutral piers. Install new hard tile flooring and base. Install interior landscaping South Side Entrance (adjacem to Dayton) Demolition of existing mall entrance Install new structural steel framing for add ltion. Install new metal roof deck Install new roofing system Install new entrance facade feature materials. Install new entrance doors. Install new Brookdale exterior signage. Install new common area bard and acoustical ceiling systems Install new lighting and cove lighting systems. Install new HVAC systems for the added areas. Install new wall finishes of drywall and finish paint. Install new tenant neutral piers. Install new hard tile flooring and base. Lutall interior landscaping West End Addition North of SEARS) Demolition of existing mail entrance Install new structural steel framing for addition. Install new metal roof deck. Install new roofing system Install new entrance facade feature materials. Install new entrance doors. Install new Brookdale exterior signage. Install new common area hard and acoustical ceiling systems Install new lighting and cove lighting systems. Install new IIVAC systems for the added areas. Install new wall finishes of drywall and finish paint. Install new tenant neutral piers. Install new hard tile flooring and base. Install new designed kiosks Install fountain feature Install interior landscaping Construct food court tenant spaces Constrict a food court with interior special finishes Furnish the food court with necessary tables and chairs. li 022 RESOLUTION NO. 00 -05 EXHIBIT E Exhibit A Description of Daytons Minimum Improvements Remodeling of the Existing Daytona 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 6629616 RESOLUTION NO. 00 -05 TALISMAN COMPANIES LLC 01024 Exhibit A EXHIBIT E DESCRIPTION OF DAYTONS MINIMUM IIVIPROVEMENTS Doc.826 The following are the minimum improvements that are expected to be performed by Daytona in their remodeling of the store. The Daytons intent is to redesign the entire store for the re- merchandising and reconfiguration of their store in order to update the store to the Dayton current standards. New ceiling layouts and materials New ceiling lighting layout. New or refurbished light fixtures to conform to the new ceiling design. New drywall partitions and ceilings to the new design. New acoustical ceiling systems and the to the new design. Painting and wall covering of walls and columns 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. Install new cabinets and factures to the new store design. Revise the HVAC system to suit the new ceiling and wall configuration. Revise the building to comply with the current code requirements as applied to the work required by the re- modeling of the store. 1 RESOLUTION NO. 00 -05 Exhibit A AMENDED EXHIBIT F Marmaxx TJMax Marshall's Designer Shoe Warehouse). 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 pad sites (not eligible within the mall itself: 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 8.1(j) from 85 to 80% as the requirement for occupancy by eligible tenants. r rau r r 1'I4.0..•.••• vsvw w• RESOLUTION NO. 00 -05 Company /Operadna Names A. Snike Company trd. (Division *Madame Group) Sena Abercrombie Pitch, Ina. Abut:amnia rads sbcsasosnbia Ate: thoughts (Division cf VuatocGrasp, be.) Alfred Dunhill (Division of Dmddtl Holdings) Ars Perm Toys American Eagle Outfitters crsvisaa ot$cbouaa<tin Snores Cap.) Ameritech Cellular Services Anderson* Formal Wear Andre Boudin Bakeries, Ira. AnnTaylor, Inc.. A nTavlor Applebeets International, inc. Apptebad's Neighborhood Cal aar Rio Savo Cantina Aropi, Inc. (Division anima Real Holding Inc.) Ro1Gaa Pia Doha Enmorium Ashley Stewart Limited (Division of Udum Bande,kc.) Ashby Sanwa Woman Body A Sou Sands Associated Hosts, Inc. (Division of TIM (USA),Int) Bombay Bicycle dub Mists Mace &flyleaf inn Wild Ca Hawing Company Athletic Shoe Marlon Au Bon Pain Corporation An Boa Pais Claiees Amelio'sPiva, Inc. Austad's Autheadc Fitness Speedo X Will locate is a residual melt. RETAIL TENANT SELECTION LIST Regional MaU X X X X X X X X X X X X X X X X X Y X X X X X X X X X X X X X X X X X X X X id'sapparol, vroms*'s sppaul, moth append X X Accoaodaloamaa jawaby Arc aodercoaemJawalry ,matsappad fa� ,siewehylwa a. loadadhu Tara Toys lads app nd.namesapparel Conga phone services BalaWanutwear Bilo itabaldtlefldxls Wawa'sappasl Reassantslass Womeds apparel Page l Rosaasrastssa Raul Classification Exhibit A Adayiblebenwsro, lausev nwanall voltam Shoes. snoodslafidelis wear 8aionies/Ingssrproaeir, fast 64 aratt aaeslbars lostaunnanters Dolt Swam appervi rrWPt 1 rw• 1 1 1 RESOLUTION NO 00 -05 Exhibit A Aveda Corporation X CaaaetlealbodY c The /Veda 1:avian Lltanyles Stage X Babbages, Etc. X Conautirdsollwae, sloeaonie s Babbages X Game Stop X Pleats X X Software, Etc. X Baby News Children's Department Store X Au1dSs spores. tUrniummibetimoystamestvidoo pram Bachman's X FIowa` Bachrach Clothing, Inc. X Mec's apparel Back Bay Restaurant Grasp X Basananalbas Abo Lades X Cbvby't Eating Uniting Saloon X Famous Atlantic Fish X LC. liuiay's X Ws American Bar &tmU X Papa Real X Bally Retail, Inc. X i (Division ctaslly. Inc.) x Barami Enterprises X Aceessones► e1 y, ms's apparel Batumi X Barceltno Continental Corporation X 1 Cn tiw01pea 's 'PP Barnes Noble, Inc. X Book awes B. Dalton X Boma &Noble X ink X Baskin Robbins USA, Co. X Candy/ ice arantiyogurt (Division ofA1ned Domed Raveling USA) X Bath Body Works X cosinededbodireueNowanees (Division ofIntimam Bands, Inc.) X BC Clothing Co. X wommiasppard Cotton bland X Sbarkys X Bed Bath Beyond, Inc. X Bed bash lamas. borne dowrflampc/drapes, enderjAcitehonware Boa Bads Beyond X Chef Central X Ben Terry's homemade, Inc. X Candolnee c Benohwarmer Bob's Xa`'a" Benetton Services Coip. X Childs a/mm'r1wa sera's apparel (Division otBenotton envoi%S.I.A) X Unkod Colours ofRamon X Benihana, Inc. X Resostastwans Benham X Sushi Dorsky X X Bentleys Luggage Corp. X Ladsedlaggege Besnly's Luggage Gib X Brandy's Luggage Outlet X Boa Vo c Lug Agc &Gifts X R[pling X Bernini, Inc. X AevessoTheroestume women's/men's apparel, shoos 8cmini X laernini Sports X Burton's X ric -atuo 1A1 ter RESOLUTION NO. 00 -05 Moracnti X Machin. X Shaun Stria X Busby Kntthers X Meds appuat Bigsb dt Kntther$ X X Fast food X X Blockbuster Entertainment Group X video renalisalae (Division ofVtaoom Iran X Blockbuster Video X Nickelodeon X X Fast food X "Win locate in a regional mall. Biootnutgdale"s X stow (Division ofFedastod Department Stores, 6w.) X Bobby Rubino's Place for Ribs X Restatuantsibant Bobby Rubino'a BBQ F*pres* X Bobby ttabiao's Plea for Ribs X Books A- Million, Inc. X Booklaad X Books Co. X' Books I. Minion X Joe Mums Nowstand X Borders Group, Inc. X coma baripwcs baec, book stores. edennuWape$ Borders X Waldenbooks X BoRics Haircarc X Beauty sdadbarbas BoRtas Hiatrcats- X Cats Ddvxo X Braude Jewelry Corp. X Fos Joalry/wateltes Ammons Diamond Cantos X Page Jewelers X Braun's Fashions Corporation X Wcmea's apparel Brans X C>ciaopker X Brinker International X Res Big Bowl X Chits GM &Ba X Oars Too X Coma Bakay X Cozyraels X a►tZis X Manisa 's Little way X Oa The Border Cafe X RonanOs Macaroni GM X Wildfire X Britches of Georgetown X _Apia Broadway Stadons Restaurants Inc. Restaurant/bars Broadway Piste Broadway Samoa Brodkey Jewelers Inc. X rata Jewaleylwatchas Exhibit A FROM McComb Group, Ltd. RESOLUTION NO. 00 -05 1 Brooks Brothers (Division of Marks Spencer plc) Brooks Brother Brown's Shoe Fit Co., Inc. Brueggeis Corporation Brown Basal Brkery Sues di Beppo, Inc. B nterfietds Development, Inc. Cache, Inc. Cache Lillie Rubin Cacique Caffe Classico Foods Cat& Classico Gelato Classico California Cafe Restaurant Corp. Alcamo Brewing Biaokhawk Grille Care Del Rey California Cafe Bar Grip Napa Vatky Grate California Pizza Kitchen (Division otBtackma na, Rosser. Sharps Co., Inc.) CPK ASAP California Pima Kitchen Camelot Music Holdings Inc. (Division of laveuoorp) Camelot Maio Spa's Masse Wall Music Candleman Corp. Candy &press Franchising Inc. Caribou Coffee Company, Inc. Cannike Cinemas tannins Hollywood connection Wynnsone Carson Pine Scott Co. (Division of Saks Inoorpoeatod Serpa s Boston Store Purniwre Gallery Boston Stores Carson Furniture Galley Carson Mc Scott Cartoon CM, L.P. Cashmere Houso TSE Casual Corner Group, Inc. X Will locate in a regional mall. 1 NE NO. 6123385572 X Cta'idreedmanctwoman'c apparel X X X X. X Shoes Bakaknibageb/prornela Rastauranothant R X Walnuts X x X X Bakeriaibaselsipt+etsels x X X Restatuantsibors x X X X X X Resnmantabas X X X X CDchnraiettapes X X X X X Candles X Candy/Inaaeaw/yogurt X CAN bars/pies bars X Movie theaters X X x X Plunituraboar. depantnent atom X X Jan. 19 2000 9: 42A M PS Exhibit A X x X x X Beauty salonslbarba$ X Cbiktrentfineristvtamen's apparel. home deorAsmprldapes X X Wanes WPM FROM McComb Group, Ltd. RESOLUTION NO. 00 -05 (Division of La Loons do Finanzisds Auk Mu Woman Casual Corner Casual career woman Petite Sophisticate Central South Music Sales, Inc. Music 4 tea Sound Shop Central States Theater Corp. Cbampps Entertainment, Inc. (Division of tJmique Casual Restaurants) Champs Antedcans Charley's Steakery (Division of Gosh Enternisa Inc.) Chevy's Mexican Restaurants (Division of7 W. Childs Equity Partners) Chevy's Fresh Men Faun WrepWorks Chico's FAS, Inc. Chocolate Soup, Inc. Christian Bernard Stores Corp. Church's English Shoes, Ltd. Cinema Grill Claire's Accessories, Inc. Accessory place Claire's Accessories Den Michelle The Icing Toplupi Coach Stores Coffee People, Inc. Coffee People Coffee Planation Gloria team's Cole Vision Corp. (Division of Cole National Corporation) Paada Vision Saes Optical Colonel Days Colonel Day's Conrads, Inc. Conrad Medanoiselle Xihte's Mademoiselle Cooper Co., Inc. Coopers Watahwoda Coopers Wachs/odd Country Visions Coomry Clutter Santa's Causer County Seat Stores, Inc. X- Will Iona In aregional mall 110. 61 5 rd Jan. iJ eatna t re: 4.31119 rb COshnusieftspes Movie tAeatess Restatnardfbets Itcsausantsibus Rostausansibars Aooaoories/oasaume jewehy, WOMan app. taaaapparel Fins Jswdry/wardres S Reseioas e, mevi°thsatms X X Aecesidaakocncaeiowehr x X X X X X Acocscc ics/oostunwiwwlry. leather luggage Coffee bardjuicebars Exhibit A X OpucaVeyewear X X X X Wonwr hnen"sapparel X X X women's apparel X X X Finajcvnblarhes X X X C,gleryAtitebenwara, hems decodlamps/drap s, off priedoudst stores, X seasonal (temp lease) X X Womeridaterfs apparel 1 FROM McComb Group, Ltd. RESOLUTION NO. 00 -05 1 1 County San The Old Faneus's Alumnae Genotal Sam Crabtree Evelyn, Ltd. X Cosmodesibody earelbaranees Crate and Barrel X Chlaatlasseere. aua[ ayndacheawatG home deemilmmeldapa (Division of Euro Market Designs, bre.) X Crown Books Corp. X Book (Division ofRiehfood Holdings, ]ac.) X Crown Books X Super Clown Books X CSC, Inc. X la tbod Ya Ya's Fume Broiled Chick= X CurooIndustries, inc. X Beauty adonsibarbera Freestyle X GreatExpeaadaa X HiaraaAas X Natiae X DA.C. Optics Corp. X D'Amico Partners, Inc. S ara Campkno D'Atelea &Seas Meek°Causing DDAmioo Cobb Linguini &Bob Darden Restaurants X Ressamansitas Bahama Breeze X Olive Garden X Red Lobster X David's Bridal. ,.__Brtdsvrormaiwear Davlin'a X Home Decor DB Dahlstrom X Womsi sAptaue] Deck The Walls X MdeolleedblesKeamca Ashley Averes Colieedbles X DcekThe Walls X The Great Frame Up X DeaAmerica Coup. X i Fast food, Werautanwilnes Black-Eyed Pea X Deeays X Desmond's Formal Wear X Mods apparel, b rem t wear DEIardsIna X mores Discovery Retail X Educational/environmental (Division of Discovery Cometuakatimm he.) X Discovery Channel Stem X The Nature Coro X Discovery Zone, Inc. X Amasemenupky eeatadlahiid caretodueatan Diaovay Zone FuaCentas X Domain, Inc. X ewer behmenum raralturdbeds Dr. Tavel Optical Group X OPtivaliorwcar Dr. Tavel One Roar Optical X Shades X Vision Values X. X te Will locate is mead onat anan. PHi ENO. 6123385572 Jan. 19 2000 09:43RM P7 Exhibit A FROM McComb Group, Ltd. RESOLUTION NO. 00 05 Dreams Franchise Corp. Field of Dreams Durham's Athleisure Corp. Eastern Mormsein Sports Spordng goodsfarldetio wear (Division °Mordent Retail Group, me.) Eateries, Inc. X Ramuusatsibers Garela's Modem Restaurant X Garfield's Raganmt Pub X Pepperoni GM Indian Bistro X Eby's Spotting Goods X Spec wear Eddie Bauer, Inc. X Medal roin&s upparel, home doomflamps/dnpes_ (Division of Spiegel, Inc.) X A.K.A. Eddto Bauer X Eddie saner X Eddie Bauer Homo X EddicBauor Spotuwear X Edison Brothers Stores, Tue. X Adentftvomeres apparel, shoos 5.7.P Shops X X CODA X J. X 3W/Je nt West X Oakum X REPP Ltd. Big Tall X shim X Wild Pair X Egghead X comp,teretonwm Eileen Fisher, Inc. X womeers apparel, acomsorieskosumtojoemby Electronics Boutique Holdings Corp. X Computers/sofwarc ear X Stop'N Save Software X This Pleeuonies Boutique X Walden Software X Bmpodum Luggage Co. X Leatherfingpse, writing Empomam t ugage X Execadve Emendsh Emends X Iris Luggage Warehouse X Endicott Johnson Corp. X Shoes Father Son Shoes X Entertainment Meagerness Servicis, Trice X Ame+enerd/play eentendehild an/education Challenge X Champions X Esprit de Corp X woman's apparel X= Will locate in a regional PHA N0. 61572 X X Ankallectibles/ftemes, eanisfmationcry, cetebrhyfsports memorabilia X $poring pock/athletic wca r Jan. 1 :44H l- Exhibit A =RUM lccomb croup, Lta. RESOLUTION NO. 00 -05 1 1 1 Esprit de Corp Estes Card Shops, Ina Ethan Allan Interiors Inc. Ethel M. Chocolates, Inc. Evans, Inc. Eva's Bridal Fashions Evanson Card Shops Everything But Water, Ino. Express (Division °C MG Ins.) Expressly Portraits Expressly Portraits Pomo Poem TheAobate People F.A.O. Schwarz (Division of USA) Famous Barr Company (Division of May Department Stores Contr y) Famova -Bart ,fonts Store LS. Ayers Fannie May Candies/Fanny Farmer Candies (Division or Archibald Candy Corp.) Ramie May Panay Passer Fat Tuesday Pat Tuesday Ne wOdsms Original Daiquiris Fiesta Bally Salons, Inc. First Trading Corp. Group USA Elorsheim Group, Inc. (Division of Apollo Management) Fbabam Sloe/Thayer McNeil McNeil Flowcrama of Mncrica, Inc. Footstar, Inc. Pootaeties USA For Eyes Optical, Inc. Foreman Clark of IvEnneasota Xa WM locate is a regional mall. X X Cocdslstuionery X Fursitatelbods X Candylioo eroanr/y°gwt X women's apparel furs X WM/fornml war X Amemorieskosteme jewelry, swArwear X Wometts spud X X MaseEmshinciportait X X X X X X X X TaYtiSamedvideo t X. X X X X X Cotdy/iee mars/yogurt seasonal (temp. lase) X X X X X X X X X Rememenotbas X X X Deasysalons/barba X ACCtssorkoceolme jewelry, wem 's apparel, shoes Pletiolmsseries X Shoes, aprint%poddaddetie weer X X OlnielVcywrw' X Mews apparel Page E Exhibit A h ttlJtrl nct,omu croup, LTA. RESOLUTION NO. 00 05 Fox Photo,.lnc. Frcd Moyer Jewelers, Inc. (Division of Prod Moyer, bre. BanolayJewelees FoaCJswelers Fwd Meyer kwelas Lltmsm Jewelers Maki meckweles Fredericies of Hollywood Stara, Inc. Friedmods Inc. Fiiedmm'sJewelers Reteaey Jewelers PruLIati Cafe, Inc. Fuddrucicers,Ino. givuioa of King Camwn) Fun Factory, Inc. Ca:rood Fuk Fun Factory Angle Fun Funco Inc. Funeoland Function Junction, Inc MG Shops, Inc. GRO Rave G.W. Entertainment LC. Flick' 1,G Flicks Video Gabberts Furniture Design Studio Gadzoolts, Inc. Galyan's Trading Company (pad sic oily) (Division otThe Limited, Inc.) Gantos, Inc. G Cantos Bookie Gap, Baum Republic asp Body GspKidalBaby Gap Old Navy Garden Botenila Garden of Eden Gart Sports Company Cart Sports Cart Sportscast's Sponmatt X w Will locate in a regional mall. 7 rnuric nu. DiGJ.nld.0 1 •w Raelowchylwatebaa tylestslwomea' =tea Fine jewehyhwteheC Bakerieribagslilpiersels Restatemissbars /lwmaaaryplay contcts/o3u'Id carets ducatiwt Toystamesivideo panel Childerestwortlea'e apparel C>WmariNnpee, video reran lraics Exhibit A Cotnaetiecflbody ears fragrance Fnagranees. bath is body Cluldrertstmen•shvomerts tCl,sporting goods/athletic wear Fu rstbcds Me aWwomafa apparel Ciu'>dren'shac n'r/woaran's apparel, eutigylkitchenwate. sheer. spercing gooddathldie wear WanesP% apparel, aeeaawriesk osbuner jewrtry Adidrea'Aracn 'Omen's apparel, shoes, a ibodyemtditagiceee FROM McComb Group, Ltd. RESOLUTION NO. 00-05. 1 1 1 Gateway Newstands (Division of Tobmar Investments lntcreat•►onat, Inc.) General Amusement Inc. Nickelodeon RaPlaY Suhaa's Castle Time Square General Novelty Co., Ltd. Coach Home Gifts It's a Small Wodd Roneestions General Nutrition Companies, Inc. Amphora GNC Live Wedt Geaaal Nutdilta► Caney (GNC) Health d; Diet Ccnuo Nature's Fresh Jarman Johnston Murphy Journeys Undaaround Stsdon Georgiou Retail Stores Gianni Versa= Gilmore Brothers, Inc. C.G. a Company, ltd. Redwood doRoss The Room Gingiss Iai'1, Ino. Glamour Shots (Division of Candid Color Systems) Godiva Ch000latier, Inc. (Division of Campbell Soup Company) Golf USA, Inc. Goodrich Quality Theaters, Inc. (Division of Goodrich Radio sit Theaters, Inc.) Great Clips, Inc. Green Management, Inc. Gteatbesg s Jowelersers Ground Round Restaurants (Division of Boston venture Group) Goad Forks Casual Food do Spirit Ground Round Gucci America, Inc. (Division of Gaud S.Y.A.) X Witt tome in a regional mall. PHONE NQ. 6123385572 Jan. 19 2000 09:45HM i'11 Exhibit A X Newmands Xc X ATMISCSIZItl play eentemichildtraedoeation .noncetheaters X X X gsdNSndonery, hone decOdWmpddtaPa. paper/patty goods X X X X Cosmetioirbody ardkagranocq, nutrition dhops/diet centers X X X X X X orialoosturnalewd% women' sknen 's apparel, oafprim/outletstores, X Shoa X X X X X X X X X X X X Idea's apparel,bddatlfoemalwear X PlwwGnidbing/portt"t X X bars X Candyrce oraaIgoSnrt X X Sporting goodefathletio War X Movie theaters X X' .X CwdyikeeramhroS bars/juice bars. fngfueda csrsurarslbsrs X X X X X X Accessotiedemmme jcwchy, woman's apparel Mea'a/woment apparel Mcns/w«nsa's apparel, amessorieskostume jewelry Bautysalonsibarbem X Fine Jewehj1wstchcs X X —Restaumntsilma X X X X lestherAugpgc. shoes X Aeeeseoria/oostutne jewelry. ttxa ditvoma►'a apparel. rJI rlc* otnn uroup, t a c t RESOLUTION NO. 00 -05 Guess? Retail, Inc. (Division of Gue s?, lac.) GuetschotThearres, inc. Guitar Center Gymborco Corporation .Hallmark Gold Cmain Stores (Division of &limark Cards bar..) Halls of Cards Books, Inc. Cards &Book Carousel Maletek'OblI and: Readers World Hard Rock Cafe (Division of Rank Croup PLC) Harris Originals, Ina chair kwass Heel Quad, Inc. fled Qupct Heeusew Quill Hello Shop Belzberg 's Diamond Shops, Inc. (Division of Bedoike Hathaway, lne.) Herbage's (Division of Saks Inoo posted) Herslof Opticians Iiibben Sporting Goods Hibbcn Sporting-Goods SPolls CesuPany Sports Additions Hirshficld's,•tnc. Illesb6cId's Hoigaartrs Homan= (pad sikcnby) Hot Topic Houliihaa's Restaurant Group Brarnon's Seafood Grill Bristol Bar Cri1i Buena Vita Cafe amber Place Chequers >'s Houbban's J. Gilberts wood Find Steaks Minus 1 r tu. o1GJ.7oJJ t Cbildren's/aaen'dwomen'a apparel Musks! insunmentesapplies t ildran'a appal, shoes. Ioys/San sivideo games Re ere m Catdt/stauonny Cordslnadones►, book 110101 Resnmicaranba s Candy's= nrcamifyc stn fast food Resamantrlbms Past trod Fhw je+ahyhvatcbes Sboerepair Cadt/dadanery Pine jewdlyAwsxbes Dcpanntens sores Optical/eye/tear Sporting goodshrbletio wear J011. L7 Gcx j t ..4. rwi Plc bintstwwandi apparel. aceestaiesteosaaae jeweky Resaman duns Exhibit A Bakei+albagels/pretnbt Candy/ice cream/yogurt, coffee barsduice bars. t n food Fabrics, tooreoveriods, hardwara/bom a Improvement, wail coveaogc/pshn Sporlimt Pods Chiaa/Fhoware, bonsowaradm+ali appliances, bed barb linens ReslaurawWbrrs Coffee basijnioo bars, fast tbod htd.lC1 McComb Liroup, Ltd. RESOLUTION NO. 00 -05 1 (Division of Berkshire Hathaway, tae.) IndcxNotioi Co., Inc. TM Wooden Key L Crew Group (Division ofTexas Pacific Croup J. Crew J.C. Penney Stores (Division ofJ.C. Penney Co Catalog Storos/Sales Centers JC Penney JC Penney Homo Store Jack Locks Theater Jacobson Stores, inc. Jaeger Sportswear Ltd (Division of Coats ViyeflsPlc.) Jay Jacobs Jay barbs For Mar lay bobs For Mon dt Women iay Jacobs For Woman Jennifer Convertibles, Inc. &Unita Convertibles Jenaihr Leather Jennifer Living Room Jessica McClintock, Inc. Joan David Halpern, Inc. hum David Joe Senset's Johnny Rockets International, inc. Jos. A. Banks Clothiers, Inc. X Witt locate in a regional mall. t'YaAVf= b14••O.0.+ a X Cudshs+daaary X X ls X X X X Bgard=sPoagds/p s. =VW atiamlyogar, ha food X X X X X X X Waa'slwonsee's apparel. off stores X X X Depua ters stoves X X X X Movie themes Children'shneis omen's apparel. fine jewelry/watches, le therfh+ggage, X sham home d000tbmps/drspes X Womee's X X Men's/womea's appeal X X X X Futoh rtbode X X X X Fut food, resututantsdran X X aildreatiwosaets appard,bridayforn*lwear X Wean* apparel, dross X X Restaurants/bats X Re stauaaam/bats X Men's apparel X Fad food X Fast Food x x x X X x x x •.,GI,. i✓ I..V~ V✓ ••w Exhibit A r tcu•t rimoma uroup, RESOLUTION NO. 00 05 hustPor Feet, Inc. Mhtede Aide Athletic Lady bnPoslal SP* Ant For Peet Just For Elm, Inc. ...Kay-Bee Toy Stores (Divides oteanaoiidated Stares Carporadoa) Kay Bee Toy Works Kay Boo Toys Keeasotes Theatres Key's Restaurant Kiddie XXoncepts, Inc. Kinney Shoe Corp. rarldaad's, Inc. Kirlin's Hallmark, Inc. Kohl's Corporation Kohl's Deparm entStores ICs Merchandise Mart, Inc. Eldridge Fine Jewelry K's Merchandise Mart K ppenhcimcrManufacturers Inc. Landivark Theatre Corp. (Division eaves Cinemas, Inc.) Lane Bryant (Division *Me Limited. Ise.) Laser One (Division of Amusement Investment Co.) Laura Ashley, Inc. (Division of Laura Ashley Holdings PLC) Learning Express, Inc. X v Will locate in a regional mall. rramo ru. 01GJJ077 rG Aratuanotulphi oemsrdckUd cardeductaion T'oysi>i .Moviadrahraa X Rettaurantsibms X Fast food X X X X AnnaaaeAdpiny ambastehtld ardoducs ion X ante= X X 1Wooilaa3tes/ftames, home deredhmhpddrspes X X Dopartmaustores X X Faatood.rcanwaatsPous X X X X •X X X X X X X X X X X X X x x x x Mats apparel Fast food Movie thaws Jan. 17 4W WV 107.'4O -a't r14 Exhibit A Fine jewehyfwaxha. cemputecrisaftware, elemionies, home deeedlsmps/drapes, housewares/small apps. Women's apparel /GpnsaaaxWplay eeafem/ehtnd atdoduatioa Wemea %appame>, bed tit bath fir as, home deeor/iamps/drapes EdmeasioaaVtnvironmentai, loys/gamedvideo games rta.a't rtct..omD uroup RESOLUTION NO. 00 -05 1 1 i Lccbtccs, Inc. Legs Beatttifal el ia%MContcs Croup Ltd) Lemstone, Inc. Lenscrafters (Division ofLaoouia Grow S.p.A.) LeasCta s OPactlis Suncrafas Lerner New York, Inc. (Division oflbe Limited. Inc.) Levi's Only Stores (Divis 'nod Strauss do Co) Docket Shop Original Levis Storm Life Uniform (Division of Angelica Corp.) Lifetouch Portrait Studios, Inc. (Division of Lifebuch.Inc.) Lillie Rubin Affiliates, Inc. Linens' N Things Little Professor Book Centers LLC Uule Professor Book Canter Link Professor Book Company Liz Claiborne Inc. Elisabeth Liz Claiborne Liz Claiborne Pedta Cu Express Aiepon Storm Lows Cineplex Entertainment Corp. pDiviskn of Sony Corp) Coop's* Odeon StAX Lows Theatres Magid Johnson Thames Sew Theatre SarThexacs Lord Taylor (Div;eloe otll ay Department Soros Company) Love From Minncasota Hello Chicago Love From Chicago Lova Front Minnesota Mitt -ilu )(masers Mamma Scarlet Lester Siganuue X+ Will locate is a region* malt rnu rar. 01GJdOJJ r G J sal I. 17 CWN 177 .14•11 1 1 1.0 Chineiglasavism, wdayncitelu wue. housewarcrls nan appliances Roasunv s Aoeasortoadaostemele soy C ardr/snuonery, boots stars. cdr/mosirhspos, religious flans Women's apparel Childna lhoofs womens apparel MoisAvoroofs apparel, uniforms Photofinishing/portrait Women's apparel Sod dobub limos, Mole deoornampeldrapes Fast food Festtbed Beek area %ma tSeam' Movie Meet= Fast food Department stores Horns doserilanoddrepes. seavonits Fast food Exhibit A r mum i rtct.•onw urcup, LTA. RESOLUTION NO. 00 05 Macy's West (Division of?ederatod Department Stores, Inc.) MAIO Macys Hans store Mark Shale (Division cal Baskin any) Martin Newman Shoe co. 4abaalisaShoe Store Newman's Shoes Mary Kay's Bridal Masters Tuxedo Maurice Rothschild Co. Matrices, Ina (Division of American Acne Group. Inc.) Juxtapose Matrices Max Bata's Restaurants, Inc. Ironwood Cate Max Banes MC Sporting Goods MC Sports Merle Norman Cosmetics Mervyn Cali(orn a (Division ofDaytoa Fludsoa Corp.) Steak Ale Michaels Stores, Inc. Aaron Brothers An Mint X= Will locate is a regional mail. rramr: tw. O1GJJO:7J 14 X X Fast food x x X X X Department se x x X X Fast food X X X X X X X X X X Fast mod X Fast lbod X Fast food Bake rialba alclprefteis. resteurantstems X Ma kfuomakapparel X X Shots X X X Bridal X Bridallformalumar X Mats/wontars tipped X Mea's/womeas apparel X X Jeri. J. ClatIO t77.'t r1119 r.to Exhibit A X X RataurantWats X X X Sporting goedd/atbkde wear X X Fast hod X Cosmetics/body cardfcagrance X Newsmen moms X X Resteuraredbars X X X X X X At /colleetibteeltames, art supplies/crafts/hobbies X M UM McComb laroup, Ltd. RESOLUTION NO. 00 -05 1 1 Michaels Michelson Jewelers Mlkasa, Inc. Mike Crivcllo's Camera Centers, Inc. Minuteman Press (Division of Minuteman Preu buemadoasq iaamationat Minute Press Mumma Press Speedy Sign A Rama U.S.A Modern Woman Mondi of America, Inc. Mond Morton's Restaurant Group, Inc. Senoras Moewn'sofChicago Mothers Work, Inc. APea to Ms Pod/Mind Maternity Maternity Works Moihmhood Matanity Moto Photo, Inc. One Han MotaPhoto On Now MotoPhoto Sc Portrait Studio Mr. Rags (Division *talkers Storm, Inc. Musioland Stores Corp. Media Play On Cue Sam Goody Rumour Motion Pientn Company Myron's Cards Gifts, Inc. N. Landau Hyman Jewels Namco Cybcr Entertainment Inc. (Division ofNan Ltd.) Time Out Naom rs Hallmark Shops National Amusements, Inc. Mtddplex inner showcases Cinemas National Record Mart, Inc. Maids Oaids Mode X NRM Music Nstioml Record Matt X P. Will tows is a rcgionsl man. 1- ICJ. r Finn joaciry/waaebes C adayikitehcnwaro Cameras/video:ame ns Pitotocopieslprinting, ism/postal senka Wornerts spiced Woolen's spparot Pan food, ttaanantvbats Res*au ann!bars Wemon'$ apparel Plawfinishindawriraii, camensivideommems Men's apparel Bakeriesl6ageldpremels BakerimlbagelArdmis Bekerierlbascwpr6 fast food, tcnm ra rts/6sts CDshousicttapes. video !tssallmles Cardrht+tioaery Jewchy star AmementlpLy ancemiehild exrdednamion CankIstadonap fast food Movie theaters CDsimorkkapes. video ta►talisales Jean 1. J.J GGIUPJ r.JJ ••furN I C. Exhibit A FROM McComb Group, Ltd. PFD_ NO. 6123385572 Jan. 19 2000 09 :49AM P3 RESOLUTION NO 00 -05 Exhibit A Vibes X Waves Mode X Wave Music ds Gifts X Natural Wonders, Inc. X Naturalizer Shoe Store Group X Shoos (Division of Drown Croup, toe.) X Nam:Aiza X Neiman Marcus X (Division of Neiman Marcus GroupfHaecoe,t General) X Cto'i d romon'z apparel'. department corer, fate jowafylwaxches BcritaorfOoodman X WlledesofNeiman Marcus X Neiman Marcus X X Fast food X is Will loom in a regional mull. EduatiotaVemvironocond X Ncklow's X Restaurants/bars Nine West Group, Inc. X Shoat 9lk Ca Danister Shoe Studio X Calvin Klein Shoes as Daps X Easy Spirit X Essy Spirit Ouncs X Enzo Aarpoliai X Saws Oudot X Nine Wan X Noodle Kidoodle, Ino. X F.dtteationaVenvironmeoal Nordstrom, Inc. X Shoes, department stores, otf dorioutlotstorea Calloway Golf Appasd by Nordstrom X FacoanablcBonaque X Hawaii Shoes X c... CL..«.. Ct.�. X Nordstrom X T. aols- X North Beach Leather X Mea's/women'ssppami X Raema X Norther Group X hientAvomears apparel (Division alienator Group, Ito.) X Northern tenons X Northern Getaway X Northern Retieetiau X Northam Tradidoes X Northwestern Book Store X Dook sloes Amity Book Store X Codar Book Stows X Northwestern Dock Store X °Ian Mills, Inc. X Phaotini hinglpornaf Olan Mips Kids X Olen Mitts Pattern Studio X X xesnataannaas X 011y's Retail USA, Ino. X _CIndrerts apparel Origins X Ccs aeeaPoody oszotfragrancos (Division *Mu Lauder Companies) X X Fast food 4 l- NUM MCLomb broup, Ltd. RESOLUTION NO. 00 -05 OSF International, Inc. Old Spsgbcul Ram) OshKosh B'Oosb, Inc. Oshkosh B'Oosb ShoweasaStore Oshman's Sporting Goods, Inc. Oshman's Sporting Goods Ochmm's SuperSporu USA Pacific Sunwcar of California, Inc. Pacltm Sunwearof California d.aat.a Papyrus Franchise Corp. Paul Barris Stores, Inc. Pacts' Pad Hams Paul Hanis Direct Pearl Mist Craft Supply Corp. had Arch aCIA Pad Paint Pedro's Luggage Pendleton Woolen Mills, Inc. Pennsylvania Fashions, Inc. Caws Rtc21 Stockroom Pepper's Bedroom City Performance Bicycle Performance Stayck Express Performance Bicycle Shop rti-At NJ. b1LJJti77 (4 z X Reetsupaurbirs Child's apparel Sporting goodShtbletiowear Mentlwomea'o apparel Fag food. resaurmaf burs Fast Pond O drhutdonery Rtntsursnutbsts X X X X X X X X X x x X X x X x. X X X x x X X X X X X X X x x x X X x. X .X X X c'hitdtaislraeds afs apparel X X X X F X Sporting goodsfaddaiawear. bicycles X X X Itenaunossibus X Restauru stsbars womatsapparel.a most Ier/aaumoieweky J an. 17 gamic Era:47Hrt r4 Exhibit A an suppiimieratWbobbi &disoougt/eetiay;toteg Mai;/wanen'sapparel Fag food X x X X Part food FROM McComb Group, Ltd. RESOLUTION NO. 00 05 Planet Hollywood International, inc. Cool Planet Cafe Official All -Star Cnfc Plana Hollywood To To Tango Wild Jacks Steak dt BBQ Polo/Ralph Lauren Corporation Power Play, Inc. Power Play Yesterdays Premium Restaurant Company Maui's luau itaeaatant Primages Kiddl& Rids Moak% Prints Plus (Division of CPI Corp) Proffitt's, Inc. (Division if Saks Inooporatod) Quality Candy Shoppes, Inc. Rack Room Shoes Inc. Rainbow Apparel Companies Oren Chula Emphasis Pomace tit Rainbow Ups de Downs Rainforest Cafe, Inc. Rampage Retail Rand McNally Map Travel Stotts Rangoni U.S. Corp. Lupo! ofPia'caoo Shoat Raagoal/flaggaos Shoes Ray's Shorn Inc. RCC Western Stores, Inc. Red Wing Shoe Co. Rod Vag Shot Rad Wing Shoo &Repair Reeds Jewelers, Inc. Regal Cinemas, Inc. (Di visionofHicks, Mum, dc FurNKKCR Co) FunSoapu Family Fun Canter Regal Cinemas Regis Corporation MastarCutt X .r Win locate in a regional mail. PHONE NO. 6123385572 X X X Kasi Reed, resraurantelbers X Rateaanslbars X X Fast Rood X Restaurants/bars ChildrenWmcnislwomafs apparel X Amusancat/piay ccatotrichild ardoduadoa X X X Pamela X caodyrxo aoadyoprt x X Amnscracarfpky oauadchild eur►odu adoa X X Ardcoliemibles/framas X X Deparnacm X X Candy/ice «tiymfyoffort X Shoes X Childrat"sfwontea'a apparel X X X X• X X X Restaurant/ban Past food Wands apparel Book slam s.maps Shoes Jan. 19 2080 09:501 P5 Exhibit A Fast hex, ,esl wanWb+ra Shoos ChadmetimealAvommes apparel.sho.r wes mwear Shoes X Fire jewckyrwsahcs X Amtoanatt/play cealers/chfld cam/education. movie theaters X X X X Beauty alcalbarber X FRCI1 McComb Group, Ltd. RESOLUTION NO. 00 -05 1 1 Regis Haintylnas Supawa Tnde Sooret Remington Products. Co. LLC The Remington Sono Rhodes, Inc. Risley's Blecttonics, Ina Rislaft Audio a Video Ritz Camera Centers, Inc. Iddays Elacaon cs cachou Camera and Video XiaConan 1 Hour Photo Ritz Comeau One Hour Photo Roche Bobois USA Ltd. (Division of Roche Bobois Intanaticaay Rocky Mountain Chocolaty Factory Rodier Paris Rogan's Shoes, Inc. Rogers Enterprises Inc. Rogers de Honands Jewelers Rogers Ltd., Inc. Andrews koalas Diamonds Uninnkad Rogers Jawekrs Roosevelt Bootery, Inc. Davison Shoes Lather Shoes RooecvckBootay verso Sporting Gooch Ruby Tuesday Group, Inc. American Cafe Ruby Tuesdays This Tot -Mat Grill Runza Restaurants, Inc: Ryan's Family Steak Houses, Inc. (Division of Ityani em4 Saint Louis Bread•Company, Inc. (Division et An Bon Pain Co, Inc.) Saks Fifth Avenue (Division of Saks Inemporated) Maio Strad Ott Stb Oudai Resort Saks Mb Avenue Salvatore Scallopini, Inc. Santo, Inc. (Division of Santo Co, Ltd.) Santo Sandon Gift Gate Sanrio Surprise Sasttak Management Inc. Carlos O'Kelty's X a WM 10aate in a regional man. PI- NO. 6123385572 X Cmiaylkitehenware. off-price/outlet stares, pigswill ears pathos X Fast food X Fat food X X Deplanes Safe X Elaaunia X X 'Pbotofa►ishing/portrail. ricaiooics. crmaass/vidoocamaas X X X X X Fatnitunabeds x X CaldYflos exam/Mutt X Woman's apparel X Shoes X Fun jewdry/«ratebes X X >InejcwdryAvalhoes X X X X Fat food X Shoes. spading goad Fathkdewcsr X X X Jan. 19 2000 09:5eRM P6 Exhibit A X X Ramos bars X x X X Rai X Ramanutbars X X Bakeries lbspk /prerals.ratauaaddbns X X Department stores X X X X X X Resimirano/bars X Caldron's apparel. aaeessoriestoocnane patchy., cads/sodomy, papa/party X _Zook toYsillamcsivido Pact X X X X Resaurandbesa X FROM McComb Group, Ltd. RESOLUTION NO. 00 05 Scandia Down Corporation gchmitt Music Company 7crddas Homo Munk Musks Centers Wells Music Company Schuler Shoes New Balance Twin Cidc Sohula Shoes Schwenker Mougin, Inc. Holmes Floabeim Holmes Shoes Sears Frill -Line Stores Division (Division of Sears. Roebuck and Co.) Sears Specialty Stores Division (Division oilcan. Roebuck and Co.) Great Indoors HomeLife Stores NTB National Tire Battery orebard Hardware at Garden Orchard Supply Hardware Sean Auto Centers Sans Hardware Select Comfort Retail Corporation Shakey's Inc. Shekels Shakeys Cafe Sharper Image Corp. Shaw w Shama Image Design Shoe Show, Inc. AWor Minton Shoes Shoe Snow Swim* Signature Salon Group Andre Duval Dam Cum Hair Care Harmony Home of Fashion Siikari EastBenetton United Colois ofBenetton Silverstone Pet Inc. Pass Pet Simply Fashion Stores, Ltd. Sr Knight Formal Wear M NU. Fast food. ecaattra udbara Down products Fast food Musical insuwncntahwpplies fast tbo&mlbars does Fast food Department Stores Hardwarelhome improvement. auto appliesfarearo Fast foodaustataantsines Fnrniaur/bods Restau antst ns eleenonia. upscale gins Acoessoriesleosnmsejeweky, shoes Restaurant Rawly s domdbarbcs Cbldrentimaisiwomen's apparel Pets/anima senile* JGI Is id C.GRJH ...um 1, Exhibit A women's apparel. aecessorieskcstume jewelry. shoes Formal war Roassuaaa/bscs 1 1 1 FROM McComb Group, Ltd. RESOLUTION NO. 00 -05 X Itestausantsituas Smooths King Franchises, Inc. X coffee barsljuiet bars X Fast food X— Will loam in aregional mall. Pu-1 ■NO. 6124S1:= td X X Past food X X Sox Appeal Franchising X Ateessoriashosnonejeweby, soelalhosiety Spaghetti Warehouse, Inc. X Raradroatrrbars (Division of Consolidated Reams* Properdes,Inc.) X Old Spaghetti Factory X Spaghetti Warehouse X Spaghetti Warehouse Italian Grill X Spencer Gifts, Inc. X Aeoaaatalooaauao jowclty, ardeotloctible:fttames, eae aaonery. (Division of Unlvaesal Stadia, Inc.) X manna (wrap lease) DAPY X GLOWI X Spencer Gifts X Stage Stores, Ina X Bealls Deparnaem Store X Palatf Royal X Sage X Standard Theatres X Mevie tbeatas Sterling Vision, Inc. X Optiedkrwear Beruoa Optical X Dining Optical X Edwards Opted X IPCO Optical X ICindYOpdcal X Mentded Opdal X Sieger Optical X Site For Sae Eye X Southern Optical X Sterling Optical X Superior Optical X Vision Optical X Steve's Shoes, Inc. X Overland Trading X Solo Outdoors X Stevens Shoes X Stride Rite Children's Group, Inc. X (Division of The Saida Rita Cap) X Gnat Pea X Snide Rite X X Pan food. resan c X X Sttuotura X Man's apparel (Division *flits Limited, Inc) X Stuart Anderson Restaurant, Inc. X lestawanu/bas (Division of American liestaurant Group, Ina) X Stuart Anderson's X Black Anne Restauant X Stuart Aadnsoe'$ Cade Company X X Bakaierlbagelvprazels. eatddsationcry. amvenial= stores X fad lbod X Jan. 19 2630 09:51AM P8 Exhibit A rnu '1 1'tt.1.t.71tw i tWIJ, L VA. RESOLUTION NO. 00 -05 Succcssories Sweet Factory Sweet Ideas i.? M' Balky Treats &GiM Talbott, Inc. Talbots Talbott Accessories des Shoes Talbott Kida/Tatbaa Babies Talbot' Petite, Talbot: Woman Tanbark, Inc. Bejeweled Passing Panty Two Plus Two X— Wfli locate is a regional mall. The Athlete's Foot Group, Inc• (Division otRaflye) Ladies Foot Kids The Athlete's Foot The Locket Roma The Barbers Haistyling for Men 8c Women City Looks Salons Cosm Q ttas Family Hair Cue Family Haricot Store The Barbers The IfairPormcuueu We Cue Hair The Bombay Company The Book Rack Franchising Corporation The Buckle, Inc. Tha Cbatt House, Inc. The Cheesecake Factory Incorporated The CheaeaknFactory The Cheesecake Factory Bakery Cato The °teacake Factory Express The Children's Place Retail Stores, Inc. The childrat's Place rrtta' rs va.GJJDd.+ a. ha food oaths/ ta doltoly, seaaonal (tents' Candyfiaterearafyogurt cream/yogurt Fut food Foot food Fast food, taaatuante/bant Fast tbod Fast food Futfood CLfldren's/wonteak apporot, sires Aecemosiedcoss m e jewelry Fast lbod Shod Beaoty Wow/bather Children's sppael Boma a npJdrapes Book storm apple!. shoes cream/yogurt Ratalranuthass Bake4adbadetrfpretrets, rsaUwUiuslbars OM I. i7 crJWJV r$ J.Lr i r7 Exhibit A 1 1 1 marl rifx,omo croup L. RESOLUTION NO. 00 -05 The Clarks Companies, N.A. (Division of C& I ClArki Ltd.) Boaoaha Clarlti Hanover shoes The Connoisseur The Custom Shop Shirtmakers Tna (Division of Kensington Clothiers) The Cutlery The Department Stores Division of Dayton (Division of Dayton Hudson Corp) Dayton's Hudson's Matsball The Disney Store, Inc. (Division of The Walt Disney Company) The Elder Beaman Stores Corp. Elder BeamaaDerma* Stores 'Elder- Boeanan Furniture Shoebiloel Sane d: Thomas The Finish Lino, Ina The Forgotten Woman, Inc. The Franklin Mint (Division of Roll lntemudcnal Grip.)' The Great Train Store Company The Hair Cuttery The Hang Up Shoppcs, Inc. Man Alive The Jones Store Co. The Limited Stores (Division ofTho Limited, Inc.) Thc•Linaited Too (Division ofThe Limited, Inc.) The Louie's Companies, Inc. Loma'. Tux Shop The MctOregor Co. Kenwood ]louse McOregoes The Mole Hole The Museum Company The North Roc, Inc. The North Fans The Orvis Co., Ina. The Right Start, Inc. The San Francisco Music Box Co. (Division of Vendor Croup, Ina) X Wi11 loath In a regional mall. 1.11LJN NU. 014.3.)00J4 4 40n. 17 =VW U7• 44M1 riri r Bealwinoil(guor. gourmet riiWehampagne Malt apparel Knives Depadment stores A►ildeon'emen's/women's apparel, wUaollectibiea/6ames, ny l srnalvidco Itamgo Shoes. ranianetbods, &penman sores Sparing goods/athleticwcar Large size women's apprise Ardwiloodblerfhara, acdsistationery, ehinefglatnvaae Atr applies/craft/hebbles.toya/pme$Mvidoo serves, seasonal (ramp lease/ isins/etain accessories Busty dons /barber Mat's appercl Dcputment stow Womea'a apparel Children's apparel Thidavfomuawear Floorooverings, home daoorilamps/dmpes Citts Mleolleetiblesl&arnes. seasonal (temp lease) Sporting goodsfatblcdo wear Sporting goodrladdede wear Fast food Children's apparel, wys/games/vidco per• eldidlinfant products An,cc11eedbtes/frames. music bones Fast food, rcat$uranis/bers Fast food, aestaurantrtbars Resturamstbars Exhibit A McComb Group, Ltd. RESOLUTION NO. 00 -05 The Wet Seat Arden D. Contempt; Gaols Limbo Lounge ge Vva The White House Bladtb4arkd no White House Things Remembered, Inc. (Division of Cole National This End Up Furniture Co. Tie Rack (U.S.) Inc. (Division ofTic Reels PLC) Art of Silk The Knot Shop Tie tack Tiffany CO. Timber Lodge Steakhouse, Inc. Tinder Box International Tippin's Restaurants, Inc. Cambuwt's Tippin'$ RcuautantSsPie Pantry Tommy Hlfiger Retail, Inc. (Division ofTommy HilfigerCorp.) Tomorrow's Memories Tomorrow's Mother Tower Rccords/Vi dco/Books (Division ofMtS. Inc.) Tower Soaks Tortes Canaries Tower Accords Tower Video Toys R Us, Inc. Babies The Baby Superstate Kids'RUs Toys 'R Us Track'n Trail, Inc. Eagles Nest Overland "Audine Company Track 'nTrail Tradehome Shore Stores, Inc. Trans World Entertainment Corp. Coconuts Musk &Movies E.Y.E. For Your Entertainment Movies Plus ?beet Music Record Town Ssaruday Medan Sowbellies Muscle Waste Maxie Travel 2000 T ravolgcar X= Wall locate is a regional mall. 14U. b1GJJt7�J t c Womaaa's apparel Furniture Aooessotiesfoosturno3► Toysi games Shoes Commie= stores W AttleoiloedblcsXrames, eldna/glasswarc pine)eardryhratcher,attleoaectbte sitrunet, obit Res uranrslbars Fine jedry/wato6a. premium ddarshooasodcs Rausnrmuslbaars chfdtentIna n shVornen's apparel Gltts WomedsAppard Book spores, oSinsusidapes, video rental/sates CDsltausichapss, video tenalhaks Leathafluggsgo. travel accessories Fast food Exhibit A FROM McComb Group, Lttt. RESOLUTION NO. 00 -05 1 1 Uhiem United Artists Theater Circuit, Inc. Uno Restaurant Corp. Pizzeria Uno Pined* Uno Grid Bawc y Vanity Shops of Grand Forks Victoria's Secret Stores (Division oflatimaro Brat. Inc.) Victoria's Soma Bath do fragrance Victoria's Sant Hosiery Victoira's Seam Stone. Video Update, Inc. Virgin Entertainment Group, Inc. (Division of Virgin Entertainment Group, Ltd•) Virgin Onaaas Virgin Megnstore Vista Eyecare Inc. Eyes Have h Family Eyewwf Framo•a -Lens Loo Optical Midwest Vision Center Visa Optical Vitamin World, Inc. (Division of Natures Bounty. Inc.) Von Maur, Inc. Warner Bros. Studio Store (Division ofTtma Warner Enter aInment Company) Waterford Wodgawood USA, Inc. Waxworks, Ina Disk War/ Reel Col ecttons Wehrenberg Theaters, Inc. Ronnies Entc pdsa Wombats Mamas Welcome Home, Inc. Home Again Vietnam Home WestStar Cinemas, Inc. Festival Theaters Mann Theaters X+. Will locate in a regional mat rnuire ,rsu• oieaawa Put mod Woraces spud Dakeria ogristprazek. rata antsdae candyrteecanneyogurt Optioalkyormar Movie thwtas Recta analbars Women's apparel Video renaVsates fast food CDshnusiclapcs. books. video rood /sacs Optrmd/Eyswetr Nutrition MopddimDamns Movie theatas Norman aeca Pao food Chilisn'shncr dwoments apparel AWcouam'bicd8ames, china/gasman CDrimusichapos, video notallsates Movie theaters Pumkurdbeds Bakeriesroasdoprazels. fast food ••wr.r•r 4.110 =omo Exhibit A FROM McComb Group, Ltd. RESOLUTION NO. 00 -05 Whitt Wolf Whitehall Jewelers, Inc. Jewel Box Lwidstrom 7awelars Marks Bios.Jowclera Whitehall Co. Jewelers -Wicks 'N Sucks (Division of WNS. be.) Wild Wings, Inc. Williams Sonoma, Inc. Hold Everything Poway Barn Win'wen4oaonnt Wilson Suede Leather Wilsons The Leather Experts Dumas Leather cicorgetowa Leacher Design Tammy West Walks Wo Wilson Winona Knits Inc. Wolf Camara Inc. CPI Photo Pox Photo Wolfcsmcrs Wolf Camera do Video Woodroast Systems Inc. Z Galled* Zalo Corp. Ba cy,Banks&Biddle Cordon's Jewelers Ulu Jewelers Zany Brainy Zarfas Luggage Olits Corp. X Will loot in a region al awl{. &MingPods X Fine Jewelrylvettehas X X x X X Homo d000dlonpskkapes X X A%onectibles&araa, odocado a lhaviroatatwtal X Bed dt bath linens. obiaatinsware. endetylki ehaaware, hone X d000sliamplantpos x X X ms's apparel and aeoessOdes X Women's apparc],nun's*PPawI,maple X X X X X X Chilthc nsap,avd, woreen's apparel. mots apparel X Pbototiaisbinpp/pon ai4 eanutostvideocameras X X X X Exhibit A Restautaststats X Csndyria eeam/S'oguri. coffee batsfjuiae bars. fast food X X X X X X X X Balcaia bagels/pro zcis, mad** main/yam mans bassrprice bees. bat X food X X X Ankoiloaiblesr&aaka, bed der bath linos, eards/emiomxi eldaalgluaware, home dre amp d s, todatyikkokinwsro X Fino jewel:ylwateltea X X X X Edneadonalienviroinnetnal X LcarbcdluUaP RESOLUTION NO. 00 -05 EXHIBIT G Exhibit A 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. 988288.6 BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY By Its Executive Director G -1 RESOLUTION NO. 00 -05 Exhibit A EXHIBIT H 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 1 1 RESOLUTION NO. 00 -05 Exhibit A 3. This Agreement shall be promptly recorded by the Developer along with an attached copy of Minnesota Statutes, 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. This Instrument Drafted by: Briggs and Morgan P.A. 2200 First National Bank Bldg. St.• Paul, Minnesota 55101 988288.6 BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY By Its Chair By H -2 Its Executive Director TALISMAN BROOKDALE, LLC By Its General Partner By Its RESOLUTION NO. 00 -05 STATE OF MINNESOTA COUNTY OF STATE OF MINNESOTA COUNTY OF SS SS Notary Public Exhibit A 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. 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 RESOLUTION NO. 00 -05 STATE OF MINNESOTA ss. COUNTY OF HENNEPIN 988288.6 CERTIFICATION BY ASSESSOR The undersigned Assessor, being legally responsible for the assessment of the property described in Exhibit A 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: The foregoing instrument was acknowledged before me this day of 2000, by the Assessor for the City of Brooklyn Center. H -4 Brooklyn Center Assessor Notary Public Exhibit A $45,000,000 RESOLUTION NO. 00 -05 Exhibit A EXHIBIT I FORM OF TAX INCREMENT NOTE 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 1 1 1 RESOLUTION NO. 00 -05 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 (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 under Section 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 obligations 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 I -2 RESOLUTION NO. 00 -05 and laws of the State of Minnesota, including the Tax Increment Act. This Note May 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. 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 I -3 Exhibit A 1 RESOLUTION NO. 00 -05 Exhibit A NAME AND ADDRESS OF REGISTERED OWNER 988288.6 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. DATE OF REGTSTRATION Talisman Brookdale LLC 2000 I -4 SIGNATURE OF EXECUTIVE DIRECTOR RESOLUTION NO. 00 -05 988288.6 EXHIBIT J LEGAL DESCRIPTION OF ADJACENT DEVELOPMENT PROPERTY Exhibit A [Insert legal description of 5 anchor store properties] J -1 RESOLUTION NO. 00 -05 Exhibit A 988288.6 EXHIBIT K DAYTONS AGREEMENT K -1 01/14/00 FRI 16:39 FAX 305 6629616 TALISMAN COMPANIES LLC RESOLUTION NO. 00 -05 erookdalc J BROOKDALE CENTER BROOKLYN CENTER, MINNESOTA DAYTON'S SECOND SEPARATE AGREEMENT TO OPERATING AGREEMENT Exhibit A 082011999 rats SEPARATE AGREEMENT is made as of U f 315 1999, by and between TALISMAN B1.00KDALE, LLC, a Delaware limited liability company "Developer and DAYTON HUDSON CORPORATION, d/b /a/ Dayton's, a Minnesota corporation "Dayton's'). 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 Agreement") by and among, inter alia, Developer and Dayton's; and WHEREAS, Dayton's and Developer's predecessor have also entered into 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 WHEREAS, Developer has agreed to contribute to Dayton's $8,160,000 as a Section 118 Non Shareholder Contribution to Capital, payable as set forth in Section 2 below; and DHC: 28467 v8 WITNES SETH: i X1042 01/14/00 FRI 16:39 FAX 305 6629616 TALISMAN COMPANIES LLC RESOLUTION NO. 00 -05 1 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 Agreement 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, terms 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 terms used but not defined herein sball 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 (i) 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 ($55,000,000) 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 Plan, 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 Mali 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 Dayton's sole discretion. tj043 01/14/00 FRI 16:39 FAX 305 6629616 TALISMAN COMPANIES LLC RESOLUTION NO. 00 -05 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 aclatowledge 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 full; 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 (ii) 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: 28467 v8 Exhibit A Ij044 1 1 1 01/14/00 FRI 16:40 FAX 305 6629616 RESOLUTION NO. 00 -05 1 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 date, or (n) 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. After Dayton's has obtained the Final payment for the Capital Contribution, any portion of the proceeds then 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 DDC 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 vS TALISMAN COMPANIES LLC 4 (it 045 Exhibit A 01/14/00 FRI 16:40 FAX 305 6629616 TALISMAN COMPANIES LLC Q1046 RESOLUTION NO. 00 -05 occur: (b) DHC: 28467 v8 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 -time 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. 1 5. CAM Contribution. Effective as of January 1, 2000 and notwithstanding anything to the contrary in Articles IX, X, and XV'III 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 ("Mali Costs This amount shall be payable in annual installments in advance. Dayton's obligation to contribute to Mall Costs shall continue only for so Jong as both of the following (a) a retail store on the DDC Site (i) is required to be operated pursuant to the Operating Agreement; or (ii) is being operated; and the Enclosed Mall (i) continuesto 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 DDC Site is permitted to have an opening into the Enclosed Mall, and (iii) extends; at least 500 feet from the retail store on the DDC Site. 1 1 01/14/00 FRI 16:40 FAX 305 6629616 TALISMAN COMPANIES LLC E'SOLUTION NO. 0075 1 Operating Agreement. 6. Percentage Fee. "Payment Year"). DHC: 25467 v8 .1 6 10047 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 13e prorated on the basis of 360 days, and payment shall be. made only for the days it is open. Dayton's annual contribution to the operation and maintenance of the Mall shall be 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 siich adjustment date during the term of the 6.1. Imposition of Fee. Effdotivei 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 Mali 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 Thirty-five Million Dollars ($35,000,000) and up to Forty-five Million Dollars ($45,000,000); and one -half of -one percent (1/2 for Dayton's annual Gross Sales in excess of Forty-five Million Dollars ($45,000,000). Such percentage payment shall be paid on an annual basis with 12q days after the end of each calendar year (the 'i 6.2. Disclaimer. Notwithstanding 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 Dayton's makes no representation or warranty, express or implied, that any Gross Sales will be generated at the DDC Building. Except as to be provided in the Amendment as contemplated by Section 14.2 of this Agreement, but otherwise notwithstanding anything to the contrary cond in this agreement, neither Dayton's nor any successor, assignee or tenant of Dayton's, shall have any obligation, express or implied, to open any business at the DDC Site, to remain open 'fix business in the event a business is opened at the DDC Site, to reopen for business in the event a business is opened at the DDC Site and then i i closes, or otherwise to conduct any business at the DDC Site. 01/14/00 FRI 16:41 FAX 305 6629616 RESOLUTION NO. 00-05 DHC: 28467 v8 TALISMAN COMPANIES LLC or upon the DDC Bonding. 1 7 6.3. Records. Dayton's shall 1 and make available to Developer complete and accurate records of its Gross Sales, including; all pertinent original sales records. Dayton's statements of Gross Sales and all information obbt"dmed from examination of Dayton's books and records shall be deemed strictly confidential 4d shall not be disclosed to any third parties. Within 120 days following the end of each Paypient Year, Dayton's shall furnish to Developer a statement of Gross Sales made during such Pay 1nent Year. If the annual statement shows that a percentage payment is due, the annual statement hall be accompanied by payment of the amount due. Dayton's records relating to Gross Sales on or for the DDC Building shall be open for inspection by Developer orits duly authorized representatives during regular business hours for a period of one year after each annual statement Of Gross Sales is submitted. At any time within such period, Developer may audit Dayton's records of Gross Sales for the preceding Payment Year. If any such audit discloses an inaccuracy! in Dayton's statement of Gross Sales, Dayton's shall make prompt payment of any deficiency. Developer shall pay the cost of such audit unless such audit discloses that Dayton's under-reported Gross Sales by more than 3%, in which event Dayton's shall pay the reasonable cost of such audit. 6.4. Definition of Gross Sales. For purposes of this Agreement, the term "Gross Sales" means the entire amount of the :actual sales price of all merchandise sold in the ordinary course of business to retail customers :at the DDC Building by Dayton's, or any tenant of Dayton's. All of the following sball be exalt= from "Gross Sales (a) Any sums collected and'paid out for; sales or excise taxes based on the sale of merchandise and H by law' whether now or hereafter in force, to Y be paid by Dayton's or .fts tenant or collected from its customers, to the extent that such taxes ba'e been included in the gross sales price. (b) The eXrt,ange or transfer of merchandise between the stores of Dayton's or its tenant, provided excbainges or transfers of merchandise are made solely for the convenient operation of the business of Dayton's or its tenant and not for the p of eunsummating a sale made at, in, from, I Exhibit A 0048 01/14/00 FRI 18:41 FAX 305 6629616 TALISMAN COMPANIES LLC RESOLUTION NO. 00 -05 DIM: 28467 vS •,i Exhibit A (c) The amount of returns to 'shippers or manufacturers. (d) The amount of any promtftional allowances. (e) The amount of any cash or credit refund made upon any sale where the merchandise sold, or Sob a part thereof, is returned by the purchaser. (f) Sales of fixtures. tj (g) Sales from vending machnes• (h) Sales of postage stamps (i) Rental fees or sales of s i ces. G) Sales of tickets (iincl>>iliing airline, lottery tickets and all ticket master sales). 'I (k) Sales of money orders. (1) Tips and gratuities paid o employees of Dayton's or its tenant (whether in cash, by credit card or big diarge account). t (m) Bad checks and uncolle credit and charge accounts. (n) Any sums and credits received in settlement of claims for loss or damage to merchandise in stoc4r rtransit to Dayton's or its tenant. (o) Any sale in bulk of all Or substanitially all of Dayton's or its tenant's inventory in connection; with the sale or transfer of Dayton's or its tenants business or the cessaiio of 'soh business. (p) Any rent and other occipancy charge paid by any tenant, concessionaire, licensee, Or other third provided the gross sales of any such party have been included in gross Sales (q) Any deposits, recei tsj fees and other amounts relating to any banking facility or :business, regardless of whether said banking facility or business is operated by Dayton' t oir by any tenant, concessionaire, licensee or other third party. H (r) Gift certificates. (s) Sales of materials for r1cycling. (t) Sales to employees': o i' qualified annuitants of Dayton's, its affiliates or subsidiaries. `i 11 1 1 it S @J 049 01/14/00 FRI 16:41 FAX 305 6629616 TALISMAN COMPANIES LLC k I. 'ill' RESOLUTION NO. 00 -05 MC: 28467 v8 Sales transacted through, lint a einet, e-mail or electronic means which are fulfilled from stock lock 14 at the DDC Building. Any reimbursement for and/or handling fee paid in connection with, coupons (whether Y coupons or store coupons). I 7. Real Estate Taxes and S cial contrary in Article XII or any other provisi effective as of July 1, 1999, be obligated assessments assessed against the DDC Site, D that in no event shall the DDC Parking Area obligation to contribute to the real estate 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 Renov: for such assessments or charges. The land co shall not become subject to a minimum asse public financing which supports either directly have the exclusive right to protest real estate; Parking Area. 8. Utilities. Notwithstanding obligations under that Article shall not in any (105 of the amount paid under that Artiel be liable under the Operating Agreement for air conditioning and ventilating system that accepted accounting principles. M sments. Notwithstanding anything to the of the Operating Agreement, Dayton's shall, pay only those real estate taxes and special 6 Building and the DDC Parking Area; provided 390,000 square feet. Dayton's shall have no and special assessments assessed against the pping Center. Developer shall cooperate with to constitute a separate tax parcel: If any assessed against the DDC Site, Building or p, Developer shall promptly reimburse Dayton's toting the DDC Site and the DDC Parking Area ent for reat estate tax purposes as a result of any r judirectly the Mall Renovation. Dayton's shall fix and special assessments assessed to the DDC i s k cle XL of the Operating Agreement, Dayton's ne; calendar year exceed one hundred five percent ;the preceding year. At no time chail Dayton's y costs of replacing or maintaining the heating, d be categorized as capital costs under generally Exhibit A !j050 41 1 1 1 01/14/00 FRI 16:42 FAX 305 6629616 TALISMAN COMPANIES LLC 1 1' 1 i ;I h :i il; RESOLUTION NO. 00 -05 9.1 Grant of Option. repurchase under Section XLIKE) of the sting Agreement in consideration of the right to repurchase provided in this Section. Arco c ngly, no tending Article XLII(E) of the Operating Agreement, but subject to Section a o this Agreement, if (a) Dayton's discontinues operation of the DDC Building for a single Retail purpose for a period of one hundred eighty (180) consecutive days; Da n's transf its ownership and operation of the DDC Building except to an affiliated or related entity or iii' i y entity (b) y� inection 'th a financing or sale/leaseback type transaction; or (c) Dayton's otherwise desires.t implement the procedures of this Section 9 after the period of Dayton's operating covenant co! tinplated by Section 152, Dayton's shall provide Developer with prior written notice thereof; .1Fo r ninety (90) day period after the date of the written notice or action (the "Option Period' j 1?eyeloper ?all have the option (the "Option to require Dayton's to convey to Developer tlik IDC Site and the improvements located thereon (exclusive of trade fixtures and merchandis ayton's operty for a purchase price equal to the Fair Market Value as defined in Section 912. Developer may exercise the Option by providing written notice to Dayton's of its .e for to p a together with an earnest money deposit of $1,500,000 by wire or certifiedch �Ckimade payable to Dayton's during the Option Period, time being of the essence. The 41' t'inoney deposit shall be non- refundable, but shall be lied to the purchase rice. If Develo'� 'does not p vide written notice within the Option applied P P 1� Period, then Developer shall have no right tiyr der th A ement to purchase Dayton's Property on that or any other occasion and all of Del.; fieri,s rights der this Section shall terminate. 9.2 Determination of Fai1i Valuvi. "Fair Market Value" shall mean the is fair market value of the Dayton's Propeitjtl f.he of the execution of this Agreement Elsa; excluding any contribution to that value of ':remodel f the DDC Building contemplated by :I this Agreement, multiplied by any lucre" 4 the Cost of Living Index as hereafter defined between the date of this Agreement and lg. ate of receipt of notice commencing the Option Period. Developer and Dayton's shall o mutually agree upon the Fair Market Value of the Dayton's Property at the time of the exe t .On of this;.greement. If Developer and Dayton's t 60 days cannot mutually agree upon that Fair Mark value within sixty (60) after the date of this y :t i ,yI DHC: 28467 v8 ii'd „oppr irrevocably agrees to waive the right to Exhibit A 0051 01/14/00 FRI 16:42 FAX 305 6629616 RESOLUTION NO. 00 05 TALISMAN COMPANIES LLC sH r 1 1 I ,i .1 A Agreement, Developer and Dayton's shall, 'thin fiftegn (15) days after the sixty (60) day il period, each select a person to act as an raiser and the two (2) selected appraisers shall promptly mutually select a third appraiser. ¶rthe initial tivo (2) appraisers cannot agree upon a third appraiser, the third appraiser shall b ected byl the then President of the American Institute of Real Estate Appraisers or a succeigor organization exercising similar functions. Any person designated as an appraiser shall be l and experienced in the appraisal of regional shopping centers and be members a tie American Institute of Real Estate Appraisers. No appraiser shall be in the employment of e Loper or ;Dayton's, directly, indirectly, or as an Iii agent, except in connection with the ap proceeding. The appraisers shall .meet or otherwise confer as deemed necessary to de�� ne the Fa' Market Value. If the determination of value of any two any all of the appraisers; 1' be ide i tical in amount, that amount shall be deemed to be the Fair Market Value. If the rmination of all appraisers shall be different in amount, the two closest in appraised value sl averaged and the remaining appraisal shall be Exhibit A be dee ed to be the Fair Market Value. The shall be made as promptly as possible after the designation of the last additional appraiser,;tl .in no event later than thirty (30) days from the date of the designation of the last additionalt'a er. The costs and expenses of the appraisers shall be borne equally by Developer and 1 n's; however, no party shall be responsible for any part of the other's attorneys' fees or proces$ costs with respect to the proceeding. III :I i disregarded and the result of such averaging decision of the appraisers shall be in writing, The Fair Market Value at the by multiplying the initial Fair Market Value numerator of which is the Current Index Nu!` Number. The "Base Index Number" shall hr, this Agreement is dated; the "Current Index t in which the Option is exercised; tsed; the "laid, Consumers, U.S. City Average, All items P r States Department of Labor (base year 3 hereinafter provided. If publication of the Index is materially changed, then the parties computed by an agency of the United DHC: 28467 v8 11052 1 1 of the exercise of the Option shall be calculated i under this Agreement by a fraction, the I and the: denominator of which is the Base Index e level o the Index for the month during which er" shall be the level of the Index for the month i11 be the Consumer Price Index for All Urban by the Bureau of Labor Statistics of United i $4 =106 or any successor index thereto as nti is discontinued, or if basis of calculating the substitute for the Index comparable statistics as i1 or, if none, by a substantial and 1 1 01/14/00 FRI 16:43 FAX 305 6629616 RESOLUTION NO. 00 -05 responsible periodical or publication of reco which would have been achieved by the 9.3 Terms of Purchase. the Dayton's property, the provisions of this agreement (the "Purchase Agreement base (a) Purchase Price ,i (b) Manner of Payment. The pur (c) DHC: 28467 v8 As Is Condition. The Daytona' the closing date without any Dayton's. The pure- Value of the Dayton's Property as determined under Developer in writing within TALISMAN COMPANIES LLC 1 :1 Exhibit A authority most closely approximating the result oh the determination of the Fair Market Value of ton 9 shall be deemed to be a purchase and sale Pon the following terms and conditions: price shall be the greater of (i) Dayton's Book or (ii) Fair Market Value of the Dayton's E 1 shall the Dayton's Pro (d) Title. Upon close of escrow, conve y yt 's pertY to fayton's ee by special warranty deed warranting against Developer or Developer's n y spe ty g g Dayton's acts only, subject I1 y to (i) ovenants, .conditions, restrictions, and, easements of r ecord_ (ii' nor' I1 elinquen real property taxes and assessments prorated to the date of close t :I crow. an (iii) matters disclosed by Dayton's to (30) days after Developer's right to exercise the option to purchase arises, .I than liens and security interests (such as mortgages, deeds of trusts `:e like) I oluntarily placed against the Dayton's Property by Dayton's, for Dayton's shall obtain a recordable satisfaction. As to items (i) and (iii), n's shall also remove from title to Dayton's Property any use rest ictio s p ced against the Property by Dayton's after the date hereof that restrict the 1 ds of_ retail it use that can be made of Dayton's Property. Developer may, I I expense, obtain upon close of escrow an ALTA policy lic of title insurance w'thi,etended coverage issued by a title, company with i. Otion 9.2. e price shall be paid by wire transfer. roperty v i11 be sold in an "as is" condition as of sentation or warranty, express or implied, by 2 tJ053 01/14/00 FRI 16:43 FAX 305 6629616 TALISMAN COMPANIES LLC a054 RESOLUTION NO. 00 -05 (g) DHC: 22467 v8 Closing Costs. Developer liability equal to the full pure simple title vested in Develd matters specified in (i), (ii) anIA ij (e) Deed. Upon opening of escr E hereinafter defined) a deed in; Developer er Da p yton s Propertyr., 1. necessary, duly executed and de ti `i w .(1 Assumption. Upon opening1 Holder all instruments, and release Dayton's as of the close under the Operating Agreeme all duties, obligations and c Operating Agreement, togethj ,4 1 defend and hold Dayton's had occurring after the sale of the ;i escrow fee for the sale and p closing g expenses shall be paid4 (h) Taxes. Developer and Dayton; of special assessments due an4j assume payment of any inst t:r y thereafter. It Within thirty (30) days after the exercise of escrow the "Escrow") with an escrow compiin. and deposit a signed copy of this Agreent scheduled to close no later than thirty (30) Exhibit A price of the Dayton's Property and insuring fee or Developer's nominee, subject only to the ii) above. 1 Dayton's shall deposit with Escrow Holder (as e form specified in (d) above to convey to the d bill of sale and other documents reasonably owledged. escrow, Developer shall deposit with Escrow deuce of completion of all acts, necessary to f escrow to the fullest extent from its obligations and .containing an assumption by Developer of is imposed upon Dayton's pursuant to the ith Developer's covenant to indemnify, protect, ss from and against any claim, loss or damage n's Property to Developer. Dayton's shall each pay one -half (1/2) of any e of the Dayton's Property. All other costs and Developer. 1 prorate the real estate taxes and installments yable in the year of closing and Developer shall eats of special assessments due and payable option, Developer and Dayton's shall open an "Escrow Holder mutually acceptable to them with Escrow Holder. The Escrow shall be ays after the opening thereof. Developer and 1 1 1 0 FRI 16:43 FAX 305 6629616 RESOLUTION NO, 00 -05 DM: 28467 v8 TALISMAN COMPANIES LLC Dayton's shall promptly sign standard form of escrow instructions supplied by Escrow Holder; provided, however, in the event of a coal in the escrow instructions and the Purchase Agreement, the terms of the Purchase Agreement shall control. 9.4 Developer's Rights Pending Exercise. No rights granted to Developer pursuant to this Section 9 shall create any hts in Developer to participate in any award or proceedings of any taking by eminent domain or deed in lieu thereof, or to participate in any insurance claim, or to otherwise make any cla of right or ownership of the Dayton's Property, and this option shall automatically terminate is to any portions of the Dayton's Property so taken or conveyed. 4 Exhibit A 10. Extended Dark 'Period. No 'thstanding the provisions of Section 9, no repurchase right will be created if Dayton's' scontinues operation of the DDC Building for a period of up to eighteen (18) months as a result of a conversion of the DDC Building to another retail format and attendant remodel or reconstruction of the DDC Building (the "Conversion Remodel In order to exercise this right, Dayton's shall provide Developer written notice at least thirty (30) days prior to the cessation of erations and Dayton's shall have commenced the Conversion Remodel within nine (9) months Io the cessation of operations. In connection with any Conversion Remodel, Developer shall, i Jpon written request from Dayton's, convey to Dayton's such additional land as is necessaryi in order to expand the DDC Site to include all of the Permissible Building Area shown on the Site Plan at a purchase price of Ten Dollars ($10.00) and otherwise on the applicable terms of Sec�a'on 9.3. In connection with such conveyance, Developer shall cooperate with Dayton's to nd the Operating Agreement to define the DDC Parking Area to include only so much of to existing DDC Parking Area as is required to maintain the required parking ratio for the j timber of square feet within the remodeled or reconstructed DDC Building. Developer shall silso cooperate with Dayton's in reconfiguring as a separate tax parcel, the DDC Site, Building newly reconfigured DDC Parking Area From the date of the conveyance of the additional d, Dayton's shall only be responsible for real estate taxes and special assessments, to the extent required under Section 7, on this newly reconfigured tax parcel. 055 01/14/00 FRI 16:44 FAX 305 6628616 RESOLUTION NO. 00 -05 11. Kiosks. No kiosks, retail merchandising units or push carts (collectively "Kiosks shall be placed within one hundred (100) feet of the Dayton's entrance onto the Enclosed Mall, except for the existing Kiosks kown on the Site Plan, without Dayton's consent, such consent to be granted or withheld in Dayton's sole discretion. DHC: 28467 v8 TALISMAN COMPANIES LLC 12. Dayton's Court. Dayton's shal have the right to review and approve the design of the area within the Enclosed Mall within Jute (300) feet any opening to the DDC Building (the "Dayton's Court") at all tim during the term of the Operating Agreement, including the decor, the amenities, the layo the color, the materials, the decorative elements and the furnishings as they are changed from time 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, ncluding the format of the restaurant, the operator of the restaurant, the design and layout of the restaurant and the operating procedures of the restaurant with respect to deliveries, trash removal and other procedures that will impact Dayton's. 13. Take Over Right. Dayton's shail have the right at any time and from time to time, to take over from Developer and assume the obligation to maintain the Common Area (excluding the common utility facilities) on the DDC Parcel if Developer's conduct of the maintenance, in Dayton's sole discretion, materially impairs tile conduct of Dayton's business. Dayton's may exercise this right by written notice to Developer designating a date (which date shall be no fewer than thirty (3.0) days thereafter), as of which it shall perform, for the portion of the Common Area located on the DDC Site, obligations assumed by Developer with respect thereto under Article IX of the Operating A ement. Upon the effective date provided in the notice, Dayton's shall '(a) be deemed to have assumed (and accordingly, Developer to have been relieved of) such obligations and any other ollligations of Developer under this Agreement for the maintenance and operation on that portion of Common Area on the DDC Site and (b) be relieved of all liability to pay ninety. percent 0 of its payment required under Section 5 of this Separate Agreement for any period of mne thereafter while such take-over continues. Y pe h tak o r ntuiu s. 1'5 Exhibit A I1056 1 1 1 TALISMAN COMPANIES LLC Dayton's may at any time thereafter, at its tion, rescind its take -over, by at least thirty (30) days written notice to Developer, provided, er, that Dayton's may again serve a notice of take -over as specified above. No cancellatio of take -over shall be effective unless the Common Area on the DDC Site shall, at such time asI the cancellation is intended to be effective, be in approximately as good a condition as when lLst 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 f Common Area liability insurance on the DDC Site, conforming to the requirements of the Operating Agreement, naming all other parties as "additional insureds which insurance o ligation may be satisfied by its program of self insurance; and Developer shall be reliev of the obligation to provide such Common Area liability insurance for the DDC Site during such period of time. 14. Remodel Space. Developer st all provide to Dayton's during the period of time that Dayton's is conducting its remodel of the6DC Building, as contemplated under Section 4 of this Separate Agreement, one mall shop space, fully served: by_ utilities, of approximately 2,000 t to 5,000 useable square feet to be used by Dayton's to merchandise' and sell clearance inventory and inventory displaced by the remodel. Dayton's shall finish the space to its own specifications and shall operate the space during the mall's Operating hours. Developer may relocate the space, at its expense, up to two times during the period of Dayton's use. Dayton's use of the space shall not be subject to any rent, tax, common area, utility or other occupancy expense of any kind. 1 1 15. Amendment of Operating 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 effo to obtain execution and delivery from all other required parties of an amendment (the ;endment to the Operating Agreement that will provide for the following items: 01/14/00 FRI 16:44 FAX 305 6629616 RESOLUTION NO. 00 -05 DH C: 28467 v8 Exhibit A 15.1. Site Plan. The Site Plai attached as Exhibit X to this Separate Agreement shall be substituted for the Site Plan attachedto the Operating Agreement. 1 1 057 01/14/00 FRI 16:44 FAX 305 6629616 RESOLUTION NO. 00 -05 DHC: 28467 v8 TALISMAN COMPANIES LLC 15.2. Da on's 0 ra C'. errant. 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 ee 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], itsjsuccessors and assigns of its obligations under Article [reference to Amendment provisions contemplated by Section 15.3]. (A) that for a periol commencing on the date of completion o p £th e [DDC Building Remodel, as establi ed under the Certificate] and terminating on the earlier to occur of (i) January 31, 3; or (ii) three years thereafter (the "Operating Period"), Dayton's shall continuously perate on the DDC Site a retail department store (the "Dayton Department Store s 'ect only to interruptions by reason of (a) force majeure; (b) damage by fire or other ty; (c) condemnation; and (d) the remodel of the DDC Building, each of which periods of interruption shall be minimized to the extent reasonably possible in accordance wits the terms of this agreement; (B) that the Dayton! Department Store shall at all tunes during the Operating Period be a retail department store as operatedby Dayton's on the DDC Site at the date of this agreement, as such eration 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 es during the Operating Period the Dayton Department Store shall be operated under the name "Dayton's "Dayton" or under such other name or names as Dayton's may from time to time use for a majority of its 'similar retail department stores in the State of esota; (D) that the Dayto• Department Store shall at all times during the Operating Period and thereafter for se long as Dayton's or its successor(s) operates a retail store on the DDC Site have a :4ross Floor Area of at least 200,992 square feet, subject to the effects of any taking in Condemnation and shall have at least two levels at and above ground level; (E) that the Dayto t 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 Exhibit A (F) that during the Operafing Period Dayton's shall operate one hundred percent (100 of the Dayto Department Store as a retail department store of the type, character and nature provide. for in this Article, in a high class and reputable manner and in accordance with the provisions of this Article, which store shall be open Z058 1 1 1 1 01/14/00 FRI 16:45 FAX 305 6629616 TALISMAN COMPANIES LLC RESOLUTION NO. 00 -05 Exhibit A 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 provisions 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 Operating Covenant. Article VI(B) of the Operating Agreement shall be amended so that Developer shall provide an operating covenant under the following language: DHC: 28467 v8 18 So long as DDC and Dayton's perform their respective obligations under Article VI(B) and Article XLI hereof (as amended), [Developer] shall, for a period commencing on the Effective Date and ending on the date Dayton's no longer operates a department store as described in Section XLI (as amended) (i) continuously operate or cause to be operated the Enclosed Mall pursuant to the terns of this agreement under the name "Brookdale Center (ii) 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 Marmeapolis -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 furnished to the DDC Facilities adequate steam, chilled water, domestic water, water for fire protection and electricity, in accordance with and subject to the terms and conditions of Article XI, hereof. In the event of condemnation and/or damage or destruction from fire or any casualty as provided in Articles XVI and XVII 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. X1059 01/14/00 FRI 16:45 FAX 305 6629616 TALISMAN COMPANIES LLC Qt1060 RESOLUTION NO. 00 -05 Exhibit A DHC: 28467 v9 15.4. Parking Ratio. Section VII (C) of Operating Agreement shall provide for parking ratio of 4.5 throughout the Entire Premi4es (including all outparcels). 15.5. Might 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 Conversion 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. SA ;Jo a ;s■ •of 16. Except as provided herein, the terms and provisions of the Operating Agreement and the Supplemental shall remain in full force and effect. 17. Notices. 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 Agreement. This Agreement inures to the benefit of Developer and Dayton's and their respective successors as the owners of the Developer parcel and the DDC Site, respectively. 19. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of or applicable to,' the State of Minnesota. 19.1. Lender Bxculpatisva. 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 $55,000,000 as Mall Renovation. 19 1 1 1 01/14/00 FRI 16:45 FAX 305 6629616 RESOLUTION NO. 00 -05 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 shall 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. DHC: 28467 v8 TALISMAN COMPANIES LLC iD061 Exhibit A TALISMAN BROOKDALE, LLC, a Delaware limited liability company B DAYTON HUDSON CORPORATION, d/b /a Dayton's Bv: Edward J. Mannar, Authorized Signatory 01/14/00 FRI 16:46 FAX 305 6629616 RESOLUTION NO. 00 -05 Brookdale FIRST AMENDMENT TO DAYTON'S SECOND SEPARATE AGREEMENT TO OPERATING A BROOKDALL CENTER THIS FIRST AMENDMENT is made as f January 2000 between TALISMAN BR00 KDA.LE, LLC, a Delaware limited liabity company "Developer and DAYTON HUDSON CORPORATION, d/b /a Dayton's, a Minnesota corporation "Dayton's RECITALS: A. Developer and Dayton's entered into Dayton's Second Separate Agreement to Operating Agreement dated 31, 1999 (the `Agreement B. Under the terms of the Agreement, 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 su mitted 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 valuabl consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereb agree as follows: 1. Capitalized Terms. Capitalized terms used but not defined herein shall have the meanings set forth in the Agreement. 2. Extension fo Su Notwithstanding Section 2 of the Agreement, (i submit to Dayton's the proposed design dev Renovation; and (ii) Developer shall have un Renovation within the Dayton's wing and the ce majeure. In confirmation of the Agreement, i Renovation by this required date, Dayton's shall of this Agreement. 3. Extension for Payment of Contribution. Notwithstanding Section 3(B) of the Agreement, Developer shall have until March 11 to comply with its obligations under Section 3(B) of the Agreement. In confirmation �bf 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 ither party shall have any liability to the other TALISMAN COMPANIES LLC 'ssion of Mall R Exhibit A ovation Plans and Mall enovation. Developer shall have until May 1, 2000, to lopment drawings and plans for the Mall it November 1, 2001 to complete the Mall er court of the Enclosed Mall, subject to force Developer fails to timely complete the Mall ave no further obligations under Section 15.2 IJ062 1 1 wo 01/14/00. FRI 16:46 FAX 305 6629616 TALISMAN COMPANIES LLC RESOLUTION NO 00-05 Exhibit A 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 Complete the DDC Building Renovation subject to force majeure, on or before June 1, 2002. 1 5. Definition of FMV. For purposes of Section 9, the parties agree that the "Fair Market Value" of the Dayton's Property at thelime of execution of the Agreement excluding any contribution by the remodel of the DDC Building is Dollars 6. Confidentiality. 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. 7. Affirmation of Agreement. 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 BROOKDALE, LLC, a ;Delaware limited liability company DHC: 36313 By: DAYTON HUDSON CORPORATION, cl/b/a. Dayton's By: Its: 2 Its: ra 063 01/14/00 FRI 16:46 FAX 3056629616 RESOLUTION NO. 00 -05 TALISMAN COMPANIES LLC replace structurally substandar bui ings. The Developer agrees that it will meet the followi goal (the "Goals It will create at least co full time :lobs i connection with the development of the Development �Propelty at an hourly wage of at least 7'Ocj per hour within tip years from the "Benefit Date which is'the earlier of•;(a) t date on which the Eligible Improvements are completed, oil(b) t1ie date on which a business occupies the Development Property, a improved by the Minimum Improvements; i (2) If. the Goals are not imet, a Developer agrees to repay all or a part of the Business:Subsid to the Authority,.plus interest "Interest set at the imp icit price deflator defined in Minnesota Statutes, Section ;275.7 Subdivision 2k accruing from and after the Benefit Date, com unded semiannually. If the Goals are met in part, the Developer; ill repay a portion of the Business Subsidy (plus Interesti) det rmined by multiplying the Business Subsidy by a fraction, the merator of which is the number of jobs. in the Goals whiich we not created at the wage level set forth above and the :denomi for of which is (43 (i.e. number of j obs set forth (in th Goals) The Developer agrees to continue its operations on;the Development Property for at least five years after. the; ienef i Date. .i (3) The Developer agreesito(i0! report its progress on achieving the Goals to the Autiority until the Goals are met, or the Business Subsidy is repaid, whic ever occurs earlier, (ii) include in the report the informatiotk required in Subdivision 7 of the Business Subsidy Act'oniforms; developed by the Minnesota Department of Trade and Economic Dev lopment, and (iii) send completed reports to the Commission 'f the Department of Trade and Economic Development and t the uthority. The Developer agrees to file these reports no late,' than March 1 of each year commencing March 1, 2000, and within'30 days after the deadline for meeting the Goals. The Audhorit. agrees that if it does not receive the reports, it will mail t Developer a warning within one week of the required filing date! If within 14 days of the post marked date of the warning the eports are not made, the Developer agrees to pay to the;Auth ity a penalty of $100 for each subsequent day until the` *eport°is filed up to a maximum of $1,000. Section 6.5. In consideration of the assistance given to the Dewelope pursuant to this Agreement, the Developer agrees to pay the Aut'.rity within 10 days of receipt, the first $50,000 pine one alf of any amount over $50,000 of any percentage rents rece ved by the Developer or any of its affiliates in each cale #dar y ar pursuant to Section of the agreement attached he as ibit K (the "Daytons Agreement The Developer thither 11.grees that, without the prior written consent of the1Authori y, it will not amend the Daytons Agreement or take any„ other; ction which would reduce the amount of the percentage rent set fd th in the Daytons Agreement i 988288.G 1 I 17 1 1