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HomeMy WebLinkAbout04-24-2017 Council Work Session PacketCity Council Work Session Monday, April 24, 2017 Council Chambers 5:00 p.m. AGENDA 1. Consider future sale of HRA owned land 2. Discussion on City Administrator Candidates (Sharon Klump) Annual: • Budget: Part of June, All of July, August and October. • City Administrator & Police Chief Update (3 times per year for 15 minutes) Additional topics: • Variance Training Previous Work Session Topics March 22, 2017 • CSAH 112 Phase 2 Update from Hennepin County • Orono Road Planning and Funding • Explanation of Council Memo Format — Planning Items • Consent Agenda • Minnetonka Beach Police Services Agreement Discussion February 27, 2017 • Park Commission -Council Annual Joint Session • 2017 Summary Priorities • Park Commission Oversite of Parks o Big Island o Golf Course • Park Commission Applicant Interviews February 13, 2017 • Interviews for Council Vacancy • Code Enforcement CITY OF ORONO MEMORANDUM DATE: April 24, 2017 TO: Orono City Council FROM: Jeremy Barnhart, Community Development Director RE: HRA Ground Lease 1. Purpose. The purpose of this work session item is gain an understanding of the Council's appetite to consider a proposal from a potential buyer that would involve the sale of the Orono Woods property. The proposal has not yet been developed. 2. Background. The City of Orono's HRA owns and leases the land under Orono Woods Senior Apartments to the owner of the building, Orono Senior Housing, LLC. Orono Woods Senior Apartments are at the northwest corner of Brown Road and Wayzata Boulevard. When built in 2001, the Council wanted to ensure that Orono Woods would remain a senior housing apartment building, and retained ownership of the land for that purpose. In 2006, the minimum age was lowered from 62 and above to 59 and above via an amendment to the lease. The lease is 99 years, expiring December 2100, and rent is $1.00 per year. The tenant may purchase the property at the conclusion of the lease for $1.00. The tenant may not assign its' interest in the lease without consent of the City. This project was financed in part via Tax Increment Financing (TIF) funds. The TIF district expires February, 2024. The development agreement stipulates that if the building remained as housing for residents 62 and over the park dedication and utility connection fees of $202,038 would be forgiven. Orono Senior Housing is considering selling the building; the financing for prospective buyers relies on owning the land. The proposed buyer is a for-profit metro wide operator of senior housing communities, recently purchasing a building from the City of Blaine. The buyer plans to operate the building as a senior housing apartment building, in effect remain generally consistent with the parameters of the already established agreements, though own the land. 3. Issue. The Buyer seeks support on two questions. 1. Assuming no changes to the lease, would the Council object to the Tenant assigning the land lease to the buyer? 2. Assuming an agreement can be written to the satisfaction of the City, would the Council consider reviewing a proposal from the buyer that allows for the sale of the land? The agreement would include discussion of the following city goals: a. Mechanism to ensure the building will remain senior housing b. Amendment to allow for a for-profit operator c. Tax Increment Financing impacts, if any. d. Any additional concerns noted by the Council. The city would require an escrow deposit of $5,000 to guarantee payment of legal and financial consultant bills necessary to negotiate an agreement. Attachments Buyer information Lease agreement. (unsigned final draft) LaNel Financial/Lang-Nelson Associates Senior Housing Summary Nel :UAL GROUP LaNel Financial/Lang-Nelson Associates All of the LaNel communities are located within the greater Minneapolis/St. Paul area and represent well constructed, fully developed properties in strategic, established neighborhoods. Lang Nelson Associates is one of the largest and most experienced providers of housing in the Twin Cities area. Currently, LaNel owns and operates market rate apartments, senior apartments and senior living and assisted living communities within the Metropolitan Minneapolis marketplace representing roughly 1,500 units. LaNel has been at the forefront of Minnesota seniors housing management since 1990 and has over 45 years of multifamily property management experience. Lang - Nelson is regarded as a leader in Minneapolis residential property management and is well versed in acquisition, development and disposition. Lang -Nelson has implemented its mission statement at each of its communities: 'Our mission is to go above and beyond our customer's expectations by providing quality living environments that enhance their lives physically, socially and spiritually. MADAC'S Our residents live with one of the most awarded providers of Rental Housing in Minnesota! With 45 years of experience in providing the finest in apartment home living, Lang Nelson takes its tradition of excellence to the MADACS awards competition every year. The results are impressive! Lang Nelson offers a wide variety of choices in award-winning housing. Options vary through an array of locations, amenities, conveniences and services. At a Lang Nelson Community you will find exciting and comfortable lifestyles designed to cater to the residents' needs and interests. Lang Nelson's exceptional choices for housing lifestyles are complimented by an outstanding list of amenities and services. Together, they comprise our Umbrella of Services. Examples of our services and amenities include: scheduled transportation, planned social activities and events, chapel & non -denominational church services, 24-hour maintenance, fee wellness clinics, beauty/barber salon, fine dining, weekly housekeeping, arts & crafts, blood pressure clinics & pet therapy. Meals at our Lang -Nelson communities are special. Come for the Food ... Stay for the Friendship. Taste the nutritious and delicious food. Feel the warmth of gracious hospitality. That's the Ida Marie experience. Lang -Nelson's Ida Marie Restaurants bring you the wonderful tradition of tasty food and cheerful cordiality created by Ida and Marie. We're proud to continue their legacy. Whether it's warm banana bread to start off your morning ... a bowl of homemade wild rice soup for lunch, fresh-baked ginger snap cookies at mid-day to keep you going or a pot roast dinner followed by scrumptious strawberry shortcake for dessert; the Ida Marie Restaurant can satisfy your wishes throughout the day! You'll find an atmosphere where friendship and congeniality Flourish! In addition to great food, cordial surroundings and expert nutritional services, the Ida Marie Restaurants offer catering services and planning for special events. Large or small, your birthday, anniversary or other party will be a huge success with help from the Ida Marie staff. The Ida Marie Restaurants, which are located in our Assisted Living communities, can cater special events on the premises and, in select restaurants, at other locations. The legacy created by Ida and Marie focuses on good food and friendship. We are enhancing this legacy in our Ida Marie Restaurants, and our goal is to provide our guests with delicious food that is nutritious, too. Our chefs understand the importance people place on healthy food as well as the beneficial effects a healthy diet has on life and longevity. Serving tasty food that is nutritious is the best way we can show our guests that we really care about them The Ida and Marie tradition of friendship and pleasant surroundings is equally important to us. At Ida Marie we are fostering an atmosphere of friendship and cordiality not only for the immediate dining experience, but also because of the well- recognized value of social interaction among seniors. Simply stated, people who are socially active live longer! These goals shape everything we do at the Ida Marie Restaurant: good food, good friendship, good feeling... where body and soul are nourished. It's all at Ida Marie. just for you! Ever get tired of driving? Maybe even decided not to drive anymore? Getting around these days can be difficult without a car, but not at a Lang -Nelson community? We offer professional transportation services to all Lang -Nelson residents. That's right. Door-to-door transportation to shopping, church, medical appointments, social events and any other special destinations you wish to travel to. Expertly coordinated and staffed with professional drivers, Lang -Nelson Transportation enables residents to get around easily and on time. Our service includes personalized concierge van service as well as specially and regularly scheduled bus service. In addition to special events, our fleet of busses makes regular trips to Target, Cub, Wal-Mart, Churches and afternoon drives to scenic areas. Those are just a few. Enjoying a complementary ride to your destination is yet another outstanding advantage under Lang -Nelson's Umbrella of Services. We put real meaning into "Leave the driving to us." ' r ^;G . - — � F L7 �1L�7L11.,7.� ii C��U �J �1Y L7�� G� �.•�M a , -Blaine Courts COMMUNITY NEWSLETTER MARCIAL 2.01 7 and minds healthy. WELLNESS AT BLAINE COURTS Blaine Courts is having a lot of fun with our new exercise programs, Simple Stretch and Move to the Music! In addition, Brain Fitness has also been a great success! These programs are hereto help with agility, strength, hand & eye coordination, concentration, focus, and mental stimulation. It is ' our hope that all these activities will keep our bodies Please come and check them out! AARP Tax -Aide Coming to Blaine Courts! AARP Foundation Tax -Aide offers free tax preparation. This program has helped nearly 50 million low- to moderate -income taxpayers since 1968. AARP Foundation Tax -Aide has more than 5,000 locations in neighborhood libraries, malls, banks, community centers and senior centers. There's no fee and no sales pitch for other services and AARP membership is not required. Dates that AARP will be at Blaine Courts: Thursday, March 2nd A -F, and Thursday, March 9th Tax -Aide'- Sign up NOW in the Activity Book! NEW! COFFEE WITH A COP PROGRAM Periodically, we will be having police officers, fire fighters, EMT's, etc. come and participate in the "Coffee with a Cop" program. This is an opportunity for residents to sit down with an officer and ask questions or talk over a cup of coffee in the community room. There is no agenda, just conversation. Our first "Coffee with a Cop" meeting is on Thursday, March 2nd! Come and join us! MONTHLY HEALTH AWARENESS CLINIC + Our monthly Health Awareness Clinic and Blood Pressure Check will be on Thursday, rw March 16th at 10:30 a.m. Sign up now to get your Blood Pressure checked! Lang Nelson Mission Statement. "To go above and beyond our resident's expectations. We are dedicated to providing quality living environments that enhance our resident's lives physically, socially, and spiritually." Blaine Campus Manager - Amanda No matter how long the winter, spring is sure to follow. i when we shake off our winter layers and Springs y treat ourselves to some vitamin D. Soon the flowers a - will start to blossom, the trees will start showing off their buds and the crisp air will turn into warm breezes. I trust spring will invigorate us all to continue with our wellness programs as we move some of the wellness programs outside! Move to the music and simple stretch sessions may move outside as the sun warms up the earth! Watch your calendars for location alerts on our wellness programs! Keep moving! Stay positive! Have fun! Amanda NEW! BAG -IT LUNCH We are starting a new PIP V, J, program at lunchtime in nllt, 1 3�1. the community room. Note: - - Vii you need to bring your own' lunch with you. Instead ofy. _ I� eating in your apartment, come to the Community - — Room with your lunch and let's eat together! We'will be having a Bag -It Lunch on Monday, March 6th and Thursday, March 23rd. Come join us! CHAPLAIN CORNER Our Words The teacher had a tube of toothpaste on her table. She asked a student to come and help her by " squeezing all the toothpaste out of the tube. That sounded okay, the student agreed to do that. Then the teacher gave the next instruction: "Now put all the toothpaste back in the tube!" "That's not possible!"the student incredulously replied. "You're right," said the teacher. "And that is true of our words also. Once we speak them we cannot take them back.' When I have caught myself saying something unkind that later caused regret, I have said a prayer asking God to show me the reason behind my saying those words. He can help us understand the heart of what's bothering us and then change is possible. Remember, words can injure or they can encourage. Continuing our Bible Study on "Revealing the Mysteries of Heaven" DVD and discussion. Pastor Sherree Lane RESIDENT SPOTLIGHT Meet Bob! Bob was born in Minneapolis and A = lived there until his family moved to Fairbanks = ' Alaska. After his father retired, the family moved back to Minnesota and Bob attended a vocational school for auto mechanics. He then joined the Navy. Bob worked in electronics throughout his life and enjoyed the work. He met his wife, Caryl, while at work and the couple married and had three daughters, Tammy, Teresa, and Kelly, all of whom live in Minnesota. The couple was married for 50 years! After retirement, he worked at a local college teaching gunsmithing. Bob enjoys collecting coins, guns, hunting, fishing, skeet shooting, wood working, drawing, and is an avid reader. Stop by and say hello to Bob! CLOVERLEAF COURTS CHOIR SPRING CONCERT We are blessed to have very talented residents. A Blaine Courts resident and some Cloverleaf Courts residents formed a choir led by our In-house Chaplain, Pastor Sherree. The majority of the choir lives at Cloverleaf Courts and they practice at Cloverleaf Courts, so they are called the Cloverleaf Choir. However, they would welcome more residents from Blaine Courts. If you are interested in joining the choir, please see Pastor Sherree or Pam. The choir will be performing spring selections at the Spring Concert on Thursday, March 23rd at 4:00 p.m. in the Cloverleaf Courts Community Room. All are invited to attend! Trent's Tool Box: Maintenance tips: 1) Every household should have their own toilet plunger. 2) Never put aluminum or metal inside your microwave. 3) Bleach tabs inside the toilet tank will help keep your tank fresh. 4) Leaving your thermostat at a comfortable /4=b� temperature is best. Drastic adjustment of your thermostat, up or down, is not recommended. Our after-hours Emergency Maintenance number is: 612-325-2780 ACTIVITIES AT A GLANCE March 1 — Book Club7T= ; 4'' J -� March 2 — AARP Tax Preparation Assistance March 2 — Activities Meeting — help us plan F.� new and fun activities! March 2 — Coffee with a Cop March 3 — NEW! King's in the Corner— new activity —come play with us! March 4 — Shopping Outing to Walmart March 6 — NEW! Bag -It Lunch — Bring your lunch to the Community Room and eat with us! March 8 — Resident Meeting — come see what is new at Blaine Courts! March 9 — AARP Tax Preparation Assistance March 10 — NEW! Dominoes — come play with us! March 13 — NEW! Gardeneers —help plan out what our Blaine Courts Gardens will look like! March 14 — Social Hour March 15 — $5 Meal March 15 — Mystic Lake Casino Outing March 16 — Blood Pressure Clinic March 17 — Lunch Outing to RJ Riches March 17 — Kings in a Corner March 18 — Shopping Outing to Hy -Vee March 21— Favorite Recipe Club March 23 — Bag -It Lunch March 24 — Dominoes March 28 — Wellness Lunch — come enjoy a light salad lunch. Free to participants of 5 wellness activities, small fee for anyone else. March 28 — Brain Fitness —enjoy fun games that 'exercise' your brain! March 29 — NEW! "Guess Who?" — Celebrity -Edition —match names to faces of classic movie stars from the 30's, 40's, 50's and 60's! March 30 — Birthday Party — all residents are welcome to attend! March 31— Kings in a Corner Welcome Delores! Please introduce yourself to your new neighbors! Please join us at our activities and gatherings! Invite your friends, family, co-workers, to any of the scheduled in- house activities. Blaine Courts welcomes you H° SlNeffHoo and all of your friends to our warm community! Pam's Corner Hello March! One of the things I love about March is that it means spring is right around the corner! I am noticing that extra three minutes of daylight r t every day and it sure adds up in a week. Even though March can be a snowy month I feel that ,^ + ,`�•. winter is losing its grip. I love looking through the seed catalogs that come to my home and imagine digging in the dirt with the end result of a beautiful vegetable garden and flower bed. We all know they never look as good in real life as they do in the catalog pictures but it's still fun to dream! Come and dream with me as we reminisce, imagine and plan what beautiful plants we can add to the gardens at Blaine Courts! Our first Gardeneers Club will be on Monday, March 13th! I can almost smell the flowers! MONTHLY BIRTHDAY PARTY ,� v Join us on Thursday, March 30th J�. joy, in the Community Room to celebrate those residents who have birthdays this month! Carol W. Patt G. Bob L. Jerry S. Pat R. Our Continuum of Care Program continues to evolve! Your wellbeing is important to us and we are committed to keeping you healthy and safe in your home giving you the highest quality of life possible. Our continuum of care program is growing and we thank you for your trust. As you know, the program provides i. you support options in your current home or it helps guide - - - you if you are looking for a community with more services available. Last year, we proudly helped over 40 residents within the Lang Nelson family receive additional in home support. We have also helped transition over 15 residents to communities with additional health care and meal services. Our Continuum of care nurse is available to meet with you and your family, at your convenience, to discuss "I had concerns regarding any health related changes my Insurance changing you may be experiencing. from state to state; and We specialize in meal, knew 1 would need a knee homemaking and house- - replacement. Within a day keeping support. Our _ - or two, I had a Therapy Team working with me to partners also provide in - strengthen me prior to surgery; l cannot say home care services that � enough good words about the care I received include nursing, home health support, therapies through Lang Nelson's Continuum of Care and medication and pain program. Thank you!" Dennis management. For information regarding this great service available only to Lang Nelson residents, Please see your community manager or email Info@lanel.com. ON1 tG S. N N 3 ? m n — - N F• -L W N F+ N O V O (� UT9 Lj O W o CDn V 0 o o ID T� n 0 O (D N O t0 (D 3 (n r- c p � A c D. 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Our caretaking and maintenance teams do a wonderful job of keeping the grounds safe for you and your guests. However, there are those spots that may re -freeze overnight. Also, feel free to utilize our transportation whenever possible... It's the safest way to get around town. Just a quick reminder: Daylight Saving Time begins March 12th so remember to "spring" ahead one hour! Thank you for making Calibre Chase your home — You are appreciated! riUPY ST. PATRICX'S DAY C,ACi-BARE CHASE! Sherri Peppi, Community Manager We appreciate you! Calibre's very own Dancing Queens! Treasured Friends Kiss Cam! Love Birds Happy Birthday, Jo! Mission Statement: Our mission is to go above and beyond our residents' expectations. We are dedicated to providing living environments that enhance our residents'lives physically, socially, and spiritually. a� RESIDENT SPOTLIGHT Cliff Leider has been a resident here at the Calibre Chase since 2010. Cliff worked for John Deere for over 30 years. When he started with them he was responsible for taking care of the grounds at the state fair building. He gradually worked his way up to District Sales. After 30 1/z years he retired. If you ever visit his apartment you can tell that the green and yellow colors are near and Deere to his heart. Cliff loves spending time with his 2 children Duane and Pam, there spouses, and 3 granddaughters. If you ask Cliff what he loves about living at the Calibre Chase he states the closeness to shopping, location and how friendly and personable the people are here. Thank you for sharing a part of your journey with us, Cliff and being a Calibre Chase resident — We appreciate you! DID YOU KNOW: Every month Quality Foot Care is on site to provide specialized foot care / pedicures in the privacy of your own home — Sign up 1 is in the lobby / Cost is $33.00 MAINTENANCE CORNER: Maintaining Apartment Safety • Do not allow people to tailgate / piggyback you when entering the building. Know who you are letting in your community. • Always keep your apartment door locked. We ask you to check your door whenever you leave your apartment. • Do not prop, unlock, or leave open any exterior building door. This jeopardizes the safety of all members of the apartment community. • Immediately report any missing keys to the office. We reserve the right to change locks and bill residents if keys are lost or misused. Do not loan your key to anyone. • No person shall duplicate keys to the building's exterior doors. This is the key that has "DO NOT DUPLICATE" stamped on it. • When someone calls from the intercom make sure it is your guest you are letting in. If you do not know the person please don't buzz them in. • If you encounter an unauthorized person in the building, contact a staff member or Public Safety immediately. • Remember, Calibre chase is a controlled access building and is as secure as you make it. Do not allow anyone access to the building or garage unless they are here to see you! If someone is in the vestibule while you are entering or leaving, and they are not a fellow resident, they will have to wait and use the entry system to contact the person they are here to see. Please be diligent in your personal safety. Thank you for your continued cooperation! Thank you for your continued co-operation! Dan Stevens, Maintenance Lead Emergency Maintenance Number: 612-812-1001 Sharon B 6th Ernie G 7th Denise J 13th Phyllis J 13th Louise B 14th Darlien J 20th Gene J 27th Jim P 27th Mary Lou W 27th Ellen A 28th MARCH AT A GLANCE 3/2 Give Away Table @ 10:00 /Community Room 3/8 Resident Meeting @ 2:30 3/8 & 3/22 Schwan's / Community Room 3/12 Daylight Saving Time Begins—Spring Ahead one hour! 3/13 & 3/20 Mystic Lake — Bus Departs @ 9:00 3/14 BP Clinic @ 9:30 / Community Room 3/15 Resident Birthday Celebration @ 2:30 3/15 Continuum of Care Presentation @ 3:00 / Community Room 3/16 Bible Study @ 11:00 / Community Room 3/16 Lunch Out at Pub 42 — Bus Departs @ 11:00 3/16 Travel & Adventure — Bus Departs @ 2:30 3/17 St. Patrick's Day Happy Hour @ 4:00 TUESDAYS — Grocery Runs - Bus departs @ 1:00 TUESDAYS — Crazy Crafters — / Community Room @ 7pm WEDNESDAYS — Poker @ 1:00 / Library MONDAYS & THURSDAYS — Adult Coloring @ 1:30 / Library FRIDAYS — Wii Bowling @ 10:00 / Community Room SATURDAYS — Dominoes @ 12:00 / Library March 12th Ill . v O� . 7 Time to Spring Ahead GET A $300 RENT CREDIT 1 Sharing The Experience with someone important to you. It is that easy and it earns you a $300 rent credit, upon their move in! We appreciate you telling everyone you know about the Calibre Chase community. Please invite them to come for a cup of coffee or join us in an activity. Our Community Room is also available for company meetings, book clubs, social activities, etc. It's your home, show it off! Good Samaritan Blood Pressure and Education TUESDAY MARCH 14th @ 9:30am Community Room —SPIRITUAL OFFERINGS— March 16th @ 11:00 am - Bible study with Pastor Dave in the Community Room (NOTE NEW LOCATION) St. Raphael's Church — CONI E,t„N0U9 Bus departs every Saturday @ 5:00pm B_E First Lutheran Church — Bus departs every Sunday @ t y 8:50am Our Continuum of Care Program continues to evolvei Your wellbeing is important to us and we are committed to keeping you healthy and safe in your home giving you the highest quality of life possible. Our continuum of care program is growing and we thank you for your trust. As you know, the program provides N you support options in your current home or it helps guide you if you are looking for a community with more services available. Last year, we proudly helped over 40 residents within the Lang Nelson family receive additional in home support. We have also helped transition over 15 residents to communities with additional health care and meal services. Our Continuum of care nurse is available to meet with you and your family, at your convenience, to discuss "I had concerns regarding any health related changes my Insurance changing you may be experiencing. from state to state; and We specialize in meal, knew I would need a knee homemaking and house - replacement. Within a day keeping support. Our or two, I had a Therapy partners also provide in - Team working with me to home care services that strengthen me prior to surgery, I cannotsay include nursing, home enough good words about the care I received health support, therapies through Lang Nelson's Continuum of Care and medication and pain program. Thankyou!" Dennis management. For information regarding this great service available only to Lang Nelson residents, Please see your community manager or email Info@lanel.com. 5 CALIBRE CHASE O F C R Y S T A L Sun 8:50 First Lutheran 2 O'clock Coffee �Liu�eSmoke Free C 1L.I S j E CHASE QF C ��,,YSTAL MA ,�r�.0 til 2 017 Office: 763-533-1012 After Hours Maintenance: 612-812-1001 Alarm Deactivation: 1-888-872-3640 .Lon D1r3_r r%AVC Sharon 1:3 lith Ernie G 7th Denise J 13th Phyllis J 13th Louise B 14th 6 8:30 Kaffee Klatch 10:15 TOPS 1:30 Adult Coloring 2 O'clock Coffee 6:45 "500" 12 DAYLIGHT SAVING TIME 13 8:30 Kaffee Klatch BEGINS 9:00 Mystic Lake 10:15 TOPS 8:50 First Lutheran 1:30 Adult Coloring 2 O'clock Coffee 2 O'clock Coffee 6:45 "500" MYs+<LAKE 19 20 8:30 Kaffee Klatch 8:50 First Lutheran 9:00 Mystic Lake 2 O'clock Coffee 10:15 TOPS 1:30 Adult Coloring 2 O'clock Coffee 6:45 "500" MYW, LAKE 26 27 8:50 First Lutheran 8:30 Kaffee Klatch 2 O'clock Coffee 10:15 TOPS 1:30 Adult Coloring 2 O'clock Coffee 6:45 "500" 7ue Wed Darlien J 20th 1 8:30 Kaffee Klatch Gene J 27th 1:00 Poker Jim P 27th 2 O'clock Coffee Mary Lou 27th 7:00 "31" Ellen A 28th 7:00 Cribbage 7 8:30 Kaffee Klatch 1:00 Cub Foods / Wal-Mart 2 O'clock Coffee 7:00 Crazy Crafters 14 8:30 Kaffee Klatch 9:30 BP Clinic 1:00 Errand Bus / Aldi's 2 O'clock Coffee 7:00 Card Bingo 21 8:30 Kaffee Klatch 1:00 Cub Food / Target 2 O'clock Coffee 7:00 Crazy Crafters 28 8:30 Kaffee Klatch 1:00 HyVee / Almsted's 2 O'clock Coffee 7:00 Crazy Crafters 8 8:30 Kaffee Klatch 1:00 Poker 2:30 Resident Mtg 3:15 SCHWAN'S 7:00 "31" 7:00 Cribbage 15 2:30 B'Day Celebration 3:00 Continuum of Care Pres- entation 7:00 "31 " ,gyp 7:00 Cribbage C 22 8:30 Kaffee Klatch 1:00 Poker 2 O'clock Coffee 3:15 SCHWAN'S 7:00 "31" 7:00 Cribbage 29 8:30 Kaffee Klatch 1:00 Poker 2 O'clock Coffee 7:00 "31 " 7:00 Cribbage Thu 2 8:30 Kaffee Klatch 3 10:00 GIVE AWAY TABLE 1:30 Adult Coloring 2 O'clock Coffee 7:00 POKENO 9 8:30 Kaffee Klatch 1:30 Adult Coloring 2 O'clock Coffee 6:30 Game Night 16 11:00 BIBLE STUDY 11:00 Lunch Out / Pub 42 1:30 Adult Coloring 2:30 Travel & Adventure / Osseo High School 7:00 POKENO 23 30 8:30 Kaffee Klatch 1:30 Adult Coloring 2 O'clock Coffee 6:30 Game Night 8:30 Kaffee Klatch 1:30 Adult Coloring 2 O'clock Coffee 6:30 Game Night 8:30 Kaffee Klatch 10:00 Wii Bowling 2:00 O'clock Coffee 4:00 Happy Hour 10 8:30 Kaffee Klatch 10:00 Wii Bowling 1:00 Movie Matinee 3 O'clock Coffee 17 8:30 Kaffee Klatch 10:00 Wii Bowling 4:00 St. Patrick's Day Happy Hour 24 8:30 Kaffee Klatch 10:00 Wii Bowling 12:00 Quality Foot Care 1:00 Movie Matinee 3 O'clock Coffee 31 8:30 Kaffee Klatch 10:00 Wii Bowling 2 O'clock Coffee 4:00 Happy Hour Sat 4 8:30 Kaffee Klatch 12:00 Dominos 2 O'clock Coffee 5:00 St. Raphael Church 11 8:30 Kaffee Klatch 12:00 Dominos 2 O'clock Coffee 5:00 St. Raphael Church 18 8:30 Kaffee Klatch 12:00 Dominos 2 O'clock Coffee 5:00 St. Raphael Church 25 8:30 Kaffee Klatch 12:00 Dominos 2 O'clock Coffee 5:00 St. Raphael Church EXHIBIT B GROUND LEASE between ORONO HOUSING AND REDEVELOPMENT AUTHORITY, as Landlord and ORONO SENIOR HOUSING, LLC, as Tenant Dated as of .2001 TABLE OF CONTENTS ARTICLE 1 DEFINITIONS........................................................... 1 1.1 Definitions................................................................... 1 1.2 Exhibits...................................................................... 2 ARTICLE 2 - LEASE AND TERM ...................................................... 3 2.1 Grant........................................................................ 3 2.2 Covenants.................................................................... 3 2.3 OuietEniovment.............................................................. 3 2.4 Term........................................................................ 3 2.5 Purchase of Development Property ................................................ 3 2.6 Title to Improvements.......................................................... 4 ARTICLE 3-RENT.................................................................. 4 3.1 Rent........................................................................ 4 3.2 Net Lease.................................................................... 4 3.3 Manner of Payment............................................................ 4 ARTICLE 4 - TENANT'S COVENANTS ................................................ 4 4.1 Tenant's Equipment............................................................ 4 4.2 Maintenance.................................................................. 5 4.3 Repairs ...................................................................... 5 4.4 Nondiscrimination; Restrictions on Use . ........................................... 5 ARTICLE5-FINANCING............................................................ 5 5.1 Mortgages.................................................................... 5 5.2 Notice....................................................................... 5 5.3 Performance.................................................................. 6 6.4 New Lease................................................................... 6 5.5 Further Assurances............................................................. 7 5.6 Termination of Lease........................................................... 7 ARTICLE 6 - ASSIGNMENT AND SUBLETTING ......................................... 8 6.1 Assignments.................................................................. 8 6.2 Subleases.................................................................... 8 6.3 Other Agreements.............................................................. 8 -i- ARTICLE 8 - NOTICES AND ESTOPPELS .............................................. 9 8.1 Notices...................................................................... 9 8.2 Estoppels .................................................................... 9 ARTICLE 9-DEFAULT............................................................. 10 9.1 Events of Default............................................................. 10 9.2 Termination................................................................. 10 9.3 Payment ................................................................... 11 9.4 Iniunctive Relief.............................................................. 11 9.5 Forbearance................................................................. 11 9.6 Costs....................................................................... 12 9.7 Waiver of Default............................................................. 12 9.8 Tenant's Liability............................................................ 12 ARTICLE 10 -MISCELLANEOUS .................................................... 12 10.1 Relationship................................................................ 12 10.2 Number and Gender.......................................................... 12 10.3 Ca tions................................................................... 12 10.4 Time...................................................................... 12 10.5 Construction................................................................ 12 11.6 Law....................................................................... 13 10.7 Binding.................................................................... 13 10.8 Short Form................................................................. 13 10.9 Severabilitv................................................................. 13 10.10 Counterparts ................................................................ 13 10.11 Interest Rate................................................................ 13 EXHIBIT A Legal Description of the Development Property ............................... A-1 EXHIBIT B Permitted Encumbrances ................................................. B-1 THIS GROUND LEASE, made on or as of the _ day of November, 2001, by and between ORONO HOUSING AND REDEVELOPMENT AUTHORITY, a public body corporate and politic and a governmental subdivision under Minnesota law, and ORONO SENIORHOUSING, LLC ("ORONO SENIORHOUSING, LLC'), aMinnesota limited liability company. The Authority and Orono Senior Housing, LLC, in consideration of the covenants herein contained, hereby agree as follows: ARTICLE 1 DEFINITIONS 1.1 Definitions. In this Lease: "City" means the City of Orono, Minnesota. "Commencement Date" means that date upon which all of the parties hereto have executed this Lease. "Development" means the Development Property and the Improvements to be constructed pursuant to the Development Agreement. "Development Agreement" means the Development Agreement dated as of November 2001 between the City, the Landlord and the Tenant. "Development Property" means the real property that is the subject of the Development Agreement, which is legally described in Exhibit A. 'Event of Default' means any one or more of the events listed under Section 10.2 of this Lease. "Financing Documents" means any of the following documents to be executed and delivered in connection with the issuance and sale of the Housing Bonds and the Subordinate Housing Note: "Holder" means the holder of any Mortgage. "Improvements" means the 62 -unit senior housing apartment building to be constructed by Tenant upon and within the Development Property pursuant to the Development Agreement. "Landlord" means the Authority, its successors and assigns. -1- "Lease" means this lease agreement for the Development Property entered into pursuant to the Development Agreement. "Mortgage" means any mortgage or deed of trust on Tenant's interest in this Lease, the Development Property and the Improvements permitted under Article 5 of this Lease. "Permitted Encumbrances" means the matters described in Exhibit C. "Rent" means any amounts due from Tenant to Landlord under the terms of this Lease. "Tenant" means Orono Senior Housing, LLC and its permitted successors and assigns. "Tenant's Equipment" means all movable equipment, furniture and other trade fixtures installed or placed in the Development by or for the account of Tenant or any occupant of the Development. "Term" means the period of time set out in Section 2.4 of this Lease. "Termination Date" means 12100. "Unrelated Third Party" means an individual or entity that is not (i) an individual ("Related Individual") who is an owner or officer of Tenant or a Related Company, (ii) any subsidiary or parent of Tenant (each of which is a "Related Company"), or (iii) a general partnership, limited partnership or limited liability partnership ("Related Partnership") in which a Related Individual or Related Company is a partner, or (iv) a corporation or limited liability corporation in which a Related Individual, Related Company or Related Partnership is an owner, shareholder, officer, member or manager. 1.2 Exhibits. The following exhibits are attached to and by this reference made a part of this Lease: (1) "Exhibit A" - Legal Description of the Development Property (2) "Exhibit B" - Permitted Encumbrances y0a ARTICLE 2 LEASE AND TERM 2.1 Grant. Upon the terms and conditions of this Lease, Landlord demises and leases the Development Property to Tenant and Tenant leases and accepts the Development Property from Landlord subject to the Permitted Encumbrances. 2.2 Covenants. Landlord covenants to observe and perform all of the covenants and conditions to be observed and performed by Landlord under this Lease. Tenant covenants to pay the Rent when due under this Lease and to observe and perform all of the terms and conditions and covenants to be observed and performed by Tenant under this Lease. 2.3 Quiet Enjoyment. Landlord covenants that Tenant, on paying the Rent, shall peacefully have, hold and enjoy the Development Property subject to the terms of this Lease, subject only to the Permitted Encumbrances. 2.4 Term. The term of this Lease commences on the Commencement Date and expires at 11:59 p.m. on the Termination Date, unless terminated earlier as provided in this Lease. 2.5 Purchase of Development Property. On the Termination Date, if there is no uncured Event of Default by Tenant under this Lease at the time of exercise, Tenant may purchase the Landlord's entire interest in the Development Property on the following conditions: (1) Tenant shall give Landlord not less than thirty (30) days prior written notice exercising its right to purchase the Development Property, (2) the closing shall take place on a mutually convenient date at the principal office of Landlord or such other location as the parties agree, (3) the purchase price for the Landlord's entire interest in the Development Property shall be One Dollar ($1.00), (4) at closing, Landlord shall convey fee title in the Development Property to Tenant by quit claim deed, assignments and other appropriate instruments of conveyance, such conveyance to be subject only to (i) the Permitted Encumbrances, (ii) at Landlord's option, a restriction running with the land for such period as the Landlord may specify to the effect that the Development may be used only for residential housing purposes available for occupancy by persons 62 years of age and older, and (iii) any liens and encumbrances created 511 or consented to by Tenant or arising from the failure of Tenant to perform or observe by its agreements under this Lease, (5) this Lease shall automatically terminate on closing, (6) Tenant shall reimburse Landlord for all reasonable out of pocket costs and expenses incurred by Landlord in connection with the conveyance. 2.6 Title to Improvements. Title to the Improvements hereafter erected or located on the Development Property by or on behalf of the Tenant shall remain the property of Tenant, except that if (1) Tenant does not purchase the Development Property pursuant to Section 2.5 of this Lease, all Improvements located on the Development Property on the Termination Date shall become the property of Landlord, or (2) Landlord terminates this Lease pursuant to Section 9.2(1) hereof, then Landlord may repossess the Development, as provided in said Section 9.2(1). ARTICLE 3 199aNI 3.1 Rent. Tenant shall pay Rent to Landlord on of each calendar year until the Termination Date in the amount of $1. 3.2 Net Lease. It is the intention and purpose of Landlord and Tenant that this Lease shall be a "Net Lease" to Landlord. All costs and expenses of whatever character or kind, general and special, ordinary and extraordinary, foreseeable or unforeseeable, and of every kind and nature whatsoever that may be necessary in or about the operation of the Improvements shall be the responsibility of Tenant. 3.3 Manner of Payment. Rent payable to Landlord shall be paid to Landlord in immediately available funds of the United States of America at the office of Landlord set out in Section 9.1 or at such place and to such party as Landlord may from time to time designate. Except as otherwise provided, Rent that has accrued prior to the expiration or earlier termination of this Lease shall be absolutely net to Landlord throughout the Term without offset or deduction. Tenant's obligation to pay Rent that has accrued prior to the expiration or earlier termination of this Lease shall survive the expiration or earlier termination of this Lease. ie ARTICLE 4 TENANT'S COVENANTS 4.1 Tenant's Equipment. All Tenant's Equipment shall be the property of Tenant, Tenant's tenants or any lessor of such equipment. Landlord shall have no interest in Tenant's Equipment. Landlord shall not be responsible for any loss or damage to Tenant's Equipment except to the extent caused by Landlord's wrongful act or negligence. 4.2 Maintenance. Tenant shall at Tenant's expense maintain the Improvements and, to the extent imposed by law on adjacent property owners, the adjacent sidewalks and curbs in good order and condition, ordinary wear excepted, and in compliance with legal requirements. 4.3 Repairs. Tenant shall make all necessary or appropriate capital and operating repairs and replacements and renewals to the Improvements, interior and exterior, structural and non-structural, ordinary and extraordinary, and foreseen and unforeseen sufficient for proper operation thereof using materials of good quality. The need for or appropriateness of such repairs, replacements and renewals and the quality of the materials used in accomplishing the same shall be in accordance with the reasonable standards of prudent operators of similar facilities. 4.4 Nondiscrimination: Restrictions on Use. Tenant covenants that during the Term, ff it shall permit the Development to be used only for residential rental housing and may rent units in the Development only to persons who are 62 years of age or older (the "Senior Housing Restriction"). In addition; the Developer shall to the extent permitted by law give preference in the rental of units in the following order of priority: (i)to persons who are residents or former residents of the City, (ii)persons who have a child who is a resident of the City -and, (iii) persons who have at any time been full time employees of the City or an agency or department of the City and (iv) persons who are residents or former residents of the City of Long Lake (the "Orono Preference Requirement"). The Senior Housing Restriction shall apply to all units. The Orono Preference Requirement shall apply only if there is a waiting list for available units. Except for the Senior Housing Restriction and the Orono Preference Requirement it shall not discriminate upon the basis of race, color, creed, religion, ancestry, national origin or sex, affectional preference, disability, marital status or status with regard to public assistance, in the sale, lease, or rental or in the use or occupancy of the Development Property or any improvements erected or to be erected thereon, or any part thereof. POW ,Aa- -5- ARTICLE 5 FINANCING 5.1 Mortgages. Tenant's interest in this Lease, the Development Property, the Improvements, or any combination thereof may be encumbered only as provided by the Financing Documents and the Development Agreement. 5.2 Notice. If any Holder registers with Landlord its name and address in writing by registered or certified mail, Landlord shall by registered or certified mail, return receipt requested, addressed as registered with Landlord, give such Holder a copy of any notice or other communication with respect to any claim that a default exists or is about to exist under this Lease and a copy of any notice changing Landlord's address. Any notice given to a Holder shall be deemed duly served when personally delivered to an officer of Holder or mailed in accordance with Section 8.1 of this Lease. 5.3 Performance. If Tenant fails to make any payment or perform any act required of Tenant under this Lease, then any Holder may (but shall not be obligated to), to the extent permitted under its Mortgage, make such payment or perform such act with the same effect as if made or performed by Tenant. Entry by a Holder upon the Development for such purpose or partial performance of the Mortgage shall not waive or release Tenant from any obligation or default under this Lease except for an obligation or default fully performed or cured by Holder. 5.4 New Lease. (a) If (i) this Lease is rejected or disaffirmed pursuant to bankruptcy law or other law affecting creditor's rights, (ii) Holder gives written request to Landlord not later than thirty (30) days after the effective date of such rejection or disaffirmance, (iii) Holder pays to Landlord all of Landlord's expenses (including reasonable attorneys' fees) incidental thereto, and (iv) Holder pays all Rent accrued as of the date of rejection or disaffirmance, then Landlord shall execute and deliver a new lease with Holder or its nominee, purchaser, assignee or transferee, as the case may be, for the remainder of the Term with the same terms as are contained herein except for charges and encumbrances caused or suffered by Tenant. (b) Any new lease entered into pursuant to this Section 5.4 shall be superior to all rights, liens and interest intervening between the date of this Lease and the date of such new lease. Upon the request of the new tenant, Landlord shall execute and deliver a memorandum of the new lease in recordable form so that notice of the new lease may be placed of record by the new tenant. 0 (c) The rights hereunder of Holders shall be exercisable by such Holders in the order of the priority of lien or other security interest of their respective Mortgages. (d) At Tenant's expense, upon written request of Tenant, any Holder, or any prospective Holder, Landlord shall deliver to them or any of them a separate written instrument signed and acknowledged by Landlord setting forth and confirming the provisions of this Section 5.4, and acknowledging to them or any of them in writing the receipt by Landlord of any notice or instrument given, sent or delivered to Landlord pursuant to the provisions of this Section 5.4. (e) When a new lease is entered into such Holder or (if reasonably approved by Landlord pursuant to the Development Agreement) its designee (such holder or designee the "Acquiring Holder," and the Mortgage of such Acquiring Holder the "Acquiring Holder's Leasehold Mortgage"), the liens on and estates and other interests in the Development Property or this Lease of all persons holding directly or indirectly under or through Tenant (including the Acquiring Holder's Leasehold Mortgage), other than liens, estates and interests which are subordinate to the Acquiring Holder's Leasehold Mortgage, shall immediately and without documentation continue in effect, attach to the new lease and be reinstated as to each other to the same extent, and in the same manner, order and priority, as if (i) the new lease were this Lease, (ii) this Lease had not been terminated, and (iii) the Acquiring Holder had acquired the leasehold estate under this Lease by assignment on the date the term of the new lease commences. Each lien, estate or interest which could have been extinguished by the foreclosure of the Acquiring Holder's Leasehold Mortgage shall be deemed to be subordinate to the Acquiring Holder's Leasehold Mortgage. (f) Notwithstanding any provision of this Section 5.4 apparently to the contrary, Landlord shall not be required to provide any notice to any Holder under this Section 5.4 unless such Holder has provided Landlord written notice of its existence in accordance with Section 5.2 hereof. (g) Upon request of a Holder, Landlord will enter into an agreement with such Holder confirming the provisions of this Section 5.4 for the benefit of such Holder and acknowledging the Holder's Mortgage and the assignments made therein. -7- 5.5 Further Assurances. Landlord agrees to execute such amendments to this Lease and further agreements as may reasonably be requested by any Holder, provided such amendments and further agreements do not impose any material obligations or liabilities upon Landlord, or affect the rights of Landlord hereunder in any material respect. 5.6 Termination of Lease. No cancellation, surrender, abandonment, acceptance of surrender or modification or amendment of this Lease shall be binding upon any Holder or affect the lien of any Mortgage if done without the prior written consent of said Holder (provided (x) that no consent shall be required to a surrender on the Termination Date or earlier termination hereof, and (y) consents to any modification or amendment to this Lease shall not be unreasonably withheld or delayed by such Holder). ARTICLE 6 ASSIGNMENT AND SUBLETTING 6.1 Assiximents. Tenant and its successors and assigns shall not assign or sublet all or substantially all of Tenant's interest in this Lease or the Development without the prior written consent of Landlord, except as otherwise provided in (a) the Development Agreement, (b) Article 5 hereof, or (c) Section 6.2 hereof. 6.2 Subleases. (a) Tenant may enter into subleases of the housing in the Improvements as provided in the Development Agreement without the need for Landlord consent. (b) Units in the Development may be subleased only for purposes of residential housing and no unit may be subleased to a person under 62 years of age. 6.3 Other Agreements. Tenant may enter into the Financing Documents and such other agreements affecting the Development Property as are contemplated by the Development Agreement. ARTICLE 7 END OF TERM 7.1 Surrender. Upon termination of this Lease or of Tenant's right of possession of the Development Property, Tenant shall immediately quit and surrender possession of the Development to Landlord in its then condition. 9.3 7.2 Vesting. Upon termination of this Lease, if Tenant does not exercise Tenant's option to purchase under Section 2.5 of this Lease, all right, title and interest of Tenant in the Development shall automatically vest in Landlord without the necessity of confirmation by any other document. However, upon the request of Landlord, such vesting shall be confirmed in separate recordable instruments in form and substance acceptable to Landlord. 7.3 Tenant's Equipment. Any of Tenant's Equipment remaining in the Development after termination of this Lease or of Tenant's right of possession of the Development Property shall be deemed conclusively to have been abandoned by Tenant and, after notice to Tenant and Tenant's failure to respond within twenty (20) business days after service thereof, may be appropriated, sold, destroyed, or disposed of by Landlord without further notice or obligation to compensate Tenant or account therefor. 7.4 Acceptance. No modification, termination or surrender of this Lease or surrender of the Development Property or any part thereof or any interest therein by Tenant shall be valid or effective unless agreed to and accepted in writing by Landlord and any Holders, and no act by any representative or agent of Landlord or any Holder other than such written agreement and acceptance shall constitute acceptance thereof. 7.5 Merger. There shall be no merger of the leasehold estate created by this Lease with the fee estate in the Development Property by reason of the same party owning or holding any interest in such leasehold estate and any interest in such fee estate. No merger of the leasehold estate and fee estate shall occur unless and until all parties (including any Holder) having any interest in the leasehold estate created by this Lease and the fee estate in the Development Property shall join in and duly record a written instrument effecting such merger. ARTICLE 8 NOTICES AND ESTOPPELS 8.1 Notices. All notices and other communications from Landlord to Tenant or from Tenant to Landlord under this Lease shall be in writing and shall be deemed duly served if delivered personally to an officer of the party being served or if mailed by registered or certified mail, postage prepaid, addressed if to Landlord: in if to Tenant: or such other address or addresses as Landlord or Tenant shall have designated in writing to the other. Notices which are mailed shall be deemed to have been given on the date received as evidenced by the customary registered or certified mail receipt. 8.2 EstoWels. Landlord or Tenant shall at any time and from time to time upon not less than thirty (30) days prior notice from the other execute, acknowledge and deliver a written statement certifying (1) that this Lease is in full force and effect, subject only to such modification (if any) as may be set out therein, (2) the dates (if any) to which Rent is paid in advance, (3) that there are not, to such party's knowledge, any uncured defaults on the part of the other party, or specifying such defaults if any are claimed, and (4) such other matters as may be reasonably required by the requesting ply. Any such statement may be relied upon by any prospective transferee or encumbrancer of all or any portion of the Development or any interest therein or any assignee of any such persons. If any party fails to timely deliver such statement, such party shall be deemed to have acknowledged that this Lease is in full force and effect, without modification except as may be represented by the other, and that there are no uncured defaults in the other's performance. ARTICLE 9 DEFAULT 9.1 Events of Default. Any one or more of the following events constitutes an Event of Default: (1) If Tenant shall have failed to pay when due Rent or any other amount payable by Tenant pursuant to this Lease within ten (10) days following -10- Tenant's receipt of written notice from Landlord stating that such payment was not made; or (2) If Tenant shall have failed to perform any of the other covenants, terms, conditions or provisions of this Lease or any of its obligations under the Development Agreement within sixty (60) days after Tenant's receipt of written notice specifying such failure; provided, however, with respect to those failures which cannot with due diligence be cured within said 60 -day period, Tenant shall not be deemed to be in default hereunder if Tenant commences to cure such default within such 60 -day period and thereafter continues the curing of such default with all due diligence; 9.2 Termination. If an uncured Event of Default exists under this Lease, then Landlord may, subject to Section 9.5 hereof, exercise one or more of the following remedies in addition to any other rights and remedies provided at law or in equity: (1) Landlord may terminate this Lease by written notice to Tenant and may forthwith repossess the Development and recover as damages the amounts provided in Section 9.3 hereof, or (2) Landlord may terminate Tenant's right of possession and repossess the Development without demand or notice of any kind and without terminating this Lease, in which event Landlord may (but will not be obligated to) relet all or any part of the Development or any part thereof for the account of Tenant for such rent and upon such terms as Landlord deems advisable and may make any changes, additions, improvements, redecorations and repairs to the Development as Landlord deems advisable without affecting Tenant's liability under this Lease. 9.3 Payments. If pursuant to Section 9.2 this Lease is terminated or Landlord terminates Tenant's right of possession and repossesses the Development, Tenant shall pay to Landlord on demand the sum of (1) all unpaid Rent owing at the time of termination or repossession, as the case may be, (2) all expenses (together with interest thereon at a rate of twelve percent (12%) per annum from the date paid by Landlord) incurred by Landlord in terminating, repossessing and reletting including but not limited to costs of changes, additions, improvements, redecorations and repairs, brokerage and legal fees, and the collection of Rent, and -11- (3) any deficiency between the Rent, when due in accordance with this Lease, for the remainder of the Term and the payments, if any, received by Landlord from any reletting of the Development or portions thereof. 9.4 Injunctive Relief. If an uncured Event of Default exists under this Lease, Landlord shall have the right, in addition to any remedy available to Landlord under Section 9.2 of this Lease, to institute from time to time an action or actions for injunctive and/or other equitable relief. 9.5 Forbearance. If there is a Mortgage on Tenant's interest in this Lease or the Development Property, Landlord will not terminate this Lease or Tenant's right of possession of the Development Property pursuant to Section 9.2 of this Lease, if Holder or any purchaser or transferee of Tenant's interest in this Lease or the Development by reason of foreclosure or other proceedings or by deed or assignment in lieu of such proceedings (or an assignee of Holder or such purchaser or transferee) shall, within one hundred eighty (180) days after acquiring Tenant's interest in this Lease or the Development, cure all defaults susceptible of being cured by such entity (or, if such cure would reasonably require more than one hundred eighty (180) days and thereafter promptly, effectively and continuously proceed to cure such default). Nothing in this Section shall affect Landlord's right to enforce any remedy under this Lease for an Event of Default except, so long as Holder is in the process of curing such Event of Default or foreclosing its Mortgage under this Section, the right to terminate this Lease or Tenant's right of possession of the Development. 9.6 Costs. Tenant shall indemnify Landlord against all costs and charges (including reasonable legal fees) lawfully and reasonably incurred in enforcing payment of Rent, and in obtaining possession of the Development after an Event of Default of Tenant or upon expiration or earlier termination of this Lease, or in enforcing any covenant, proviso or agreement of Tenant contained in this Lease. Landlord shall indemnify Tenant against all costs and charges (including legal fees) lawfully and reasonably incurred in enforcing any covenant, proviso or agreement of Landlord contained in this Lease. 9.7 Waiver of Default. No failure or delay by Landlord or Tenant to insist on strict performance of any term of this Lease or to exercise any right, power, or remedy upon a breach of this Lease shall constitute a waiver of such term or such breach. 9.8 Tenant's Liability. Notwithstanding anything to the contrary provided in this Lease, it is specifically understood and agreed, such agreement being a primary consideration for the execution of this Lease by Tenant, that (i) there shall be absolutely no personal liability on the part of Tenant, or its officers, directors, members, employees and agents, to Landlord with respect to any of the terms, covenants and conditions of this Lease, and (ii) Landlord shall look solely to recovering possession of the Development Property in the event of any breach by Tenant of any of the terms, covenants and conditions of this Lease to be performed by Tenant. -12- ARTICLE 10 MISCELLANEOUS 10.1 Relationship. Nothing contained in this Lease shall create any relationship between the parties hereto other than that of lessor and lessee. Landlord and Tenant disclaim any intention to create ajoint venture, partnership or agency relationship. 10.2 Number and Gender. The words "Landlord" and "Tenant" as used herein includes the plural as well as the singular. The use of specific gender includes any other gender as applicable. 10.3 Captions. The captions in this Lease are for convenience only and shall have no effect on the construction or interpretation of this Lease. 10.4 Time. Time is of the essence of this Lease and each of its provisions. 10.5 Construction. The provisions of this Lease shall be construed as a whole according to their common meaning, and not strictly for or against Landlord or Tenant. 10.6 Law. This Lease shall be governed by and construed under the laws of Minnesota. 10.7 Bindine. This Lease is binding upon and inures to the benefit of Landlord and Tenant and their respective successors and assigns and shall not be for the benefit of any third parties other than such successors and assigns. 10.8 Short Form. Landlord and Tenant agree upon request of the other to execute a Short Form of this Lease suitable for recording. 10.9 Severability. If any term of this Lease or application of it to any person or circumstance is invalid or unenforceable, the remainder of this Lease or the application of it to other persons or circumstances shall not be affected, and each provision of this Lease shall be valid and enforceable to the extent permitted by law. 10.10 Counterparts. This Lease may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 10.11 Interest Rate. Any interest due from one party to another hereunder shall be at the interest rate specified herein or the maximum rate permitted by applicable law, if less. -13- IN WITNESS OF THIS LEASE, Landlord and Tenant have properly executed it as of the date set out at its head. LANDLORD ORONO HOUSING AND REDEVELOPMENT AUTHORITY Its: Executive Director [SIGNATURE PAGE TO LEASE (DEVELOPMENT PROPERTY)] -14- TENANT ORONO SENIOR HOUSING, LLC, a Minnesota limited liability company By: Wedum Foundation, its Manager Member By:_ Name: Its: [SIGNATURE PAGE TO LEASE (DEVELOPMENT PROPERTY)] -15- EXHIBIT A LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY MI: 49628&9}796288.04 w Ml: ""�3-796288.04 PERMITTED ENCUMBRANCES A-1 Draft: 10/17/01