Agenda - Council - 10/22/2013 - Laserfiche WebLink

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mortgages, had no obligation to complete Oakwood's work and the new agreement replaced the old development agreements. The Bank now owns 18 lots that are not under purchase agreement. The Bank also owns the land being sold to Capstone, and two other undeveloped parcels to the west. D. Efforts to Revive the HOA After researching applicable law on the subject, 21st Century Bank did prepare and record Amended Declarations for the three Brookfield plats. These were recorded March 24, 2010 as Document Number 2014022.001. The amended Declarations included the following: 1. Referenced the Corporate Bylaws and recognized the HOA as a Minnesota Non -Profit Corporation. (The corporation was actually administratively dissolved in 2009 for failure to file annual renewals — a fact not known to me until I looked up the SOS records today. It can be revived on-line for under $50). 2. Added maintenance of the median and roundabout maintenance, and the pumping apparatus for Brookfield Lake to the HOA duties. 3. Set up a voluntary dues system. We did not feel that we could legally set up an enforceable, mandatory dues system after -the -fact. However, the HOA is allowed to deny usage of Outlot B to lot owners who are delinquent in their dues. That would prohibit access to the pond. 4. Set $50 per year as per lot annual dues, subject to change. 5. Made the Bank the successor declarant with sole right to amend the Declarations. The Bank's attorney met with a group of about a dozen property owners and John Peterson, president of Oakwood, shortly thereafter, and explained what we had done. Several of those in attendance were openly hostile to the Bank, blaming the Bank for the Developer's work, and insisting that the Bank should pay for everything. The group was informed that the Bank would agree to turn over management of the HOA to them, subject to the right of the Bank to amend or eliminate the Declarations, and the Bank did in fact turn the HOA management over to this group. We have no idea if they elected a board, officers, or anything else. In August of 2010, the Bank sent the HOA a check for $3,900.00 in response to an invoice in this amount, representing $50 per lot owned by the bank. This check was accompanied by the attached letter, in which the Bank advised the HOA that it would monitor the dealings of the HOA and would base its future participation on that monitoring. Verbally, the HOA was advised that the Bank would contribute in the same ratio as the other lot owners contributed. The Bank received no response to this letter. The Bank received an invoice about a year later for the full dues, but with no documentation of payment of dues by other lot owners and no accounting for the previous years' expenditures. The Bank has no idea of how their $3,900.00 contribution was used. Absent this documentation, the Bank has assumed that other property owners are not contributing to the HOA.