HUBBARD COUNTY COMMON INTEREST COMMUNITY NO. 6 RIVERPARK VILLAS COMMON INTEREST COMMUNITY DISCLOSURE STATEMENT
This Disclosure Statement is made pursuant to Minnesota Statutes Section 515B.4-101 and 515B.4-102 with respect to the above described Common Interest Community. The Common Interest Community ("CIC") is a Planned Community consisting of twenty (20) units. 1. The name and principal address of the CIC Declarant and the address and the name, if any, and number, if available, of the Planned Community are as follows: Declarant: Echopoint Design & Development, LLC, a Limited Liability Company under the laws of the State of Minnesota. C/O Beth Zemek, 500 9th Avenue North, South St. Paul, MN 55075. CIC: Riverpark Villas, Hubbard County Common Interest Community Number Six, (6), Park Rapids, MN 56470. 2. A general description of the Planned Community, including without limitation the types and number of all buildings, units, and amenities and Declarants' schedule of commencement and completion of the buildings and improvements to be located within the various Units and the Common Elements and Limited Common Elements is attached hereto as Exhibit A and incorporated herein by reference. 3. No additional units may be included in the subject Planned Community and the Declarant does not intend to rent or market blocks of units to investors. 4. A copy of the Declaration, the CIC Plat, Bylaws, Articles of Incorporation, Rules and Regulations are attached hereto as Exhibit B and incorporated herein by reference. There are no existing contracts or leases to which the unit owners or Association will be subject, however, the Association may hereafter enter into such contracts. 5. The current balance sheet and a projected budget for the Association for the first full year or partial year during which a unit is conveyed to a unit owner other than Declarant and any projected budget for future years which the Association has adopted and a statement of who prepared the balance sheet, projected budget, or budget, are attached hereto, marked Exhibit C, and incorporated herein by reference. The budget or projected budget includes, without limitation: a. A statement of the amount included in the budget as a reserve for repairs and replacement; b. A statement of any other reserves; c. The projected common expense assessment by category of expenditures for the Association; d. The projected monthly common expense assessment for each unit. 6. Any expenses or services, not reflected in the budget, that the declarant pays or provides, which may become a common expense, including the projected common expense attributable to each of those expenses or services: NONE. 7. The Declarant's common expense liability is limited as follows: Any Unit owned by Declarant for initial sale shall be assessed at the rate of 25% of the assessment levied on other Units of the same type until the Unit or any building located in it is substantially completed. There are no assurances that this alternative assessment program will have no effect on the level of services for items set forth in the Association's budget. 8. Any initial or special fee due from a purchaser to the Declarant or the Association at closing together with a description of the purpose and method of calculating the fee: NONE. 9. Identification of any liens, defects, or encumbrances which will continue to affect the title to a Unit in the Planned Community or the title to any real property owned by the Association after the contemplated conveyance: The Riverpark Villas property is currently subject to a Mortgage and a Release for the Unit to be purchased will be provided at closing for the sale of that Unit. The Common Elements will remain subject to a Mortgage granted to Northwoods Bank of Minnesota, P. O. Box 112 Park Rapids, Minnesota 56470. 10. The Declarant may not offer financing for the purchase of a Planned Community Unit. 11. No application has been made for any project approvals for the common interest community from the Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban Development (HUD) or Department of Veterans Affairs (VA). 12. The terms of any warranties provided by the Declarant, including the warranties set forth in Minn. Stat. 327A and Minn. Stat. 515B.4-112 through 515B.4-115 and limitations imposed by the Declarant on the enforcement thereof are set forth in Exhibit D attached hereto and incorporated herein by reference. 13. The Declarant makes the following statements: a. Within Five (5) days after the receipt of this Disclosure Statement, a purchaser may cancel any Purchase Agreement of a unit from a Declarant, provided, that the right to cancel terminates upon the purchaser's voluntary acceptance of a conveyance of the unit from the Declarant; b. If Declarant fails to provide a Disclosure Statement which substantially complies with Minn. Stat. 515B4.102 to a purchaser before conveying a unit, the Declarant shall be liable to the purchaser as provided in Minn. Stat. 515B.4-106(d); c. If a purchaser receives a Disclosure Statement more than Five (5) days before signing a Purchase Agreement, the purchaser cannot cancel the Purchase Agreement. 14. To the extent of the actual knowledge of the Declarant or an affiliate to the Declarant after reasonable inquiry, there are no judgments against the Association nor are there any pending suits to which the Association is a party or any pending suits material to the Common Interest Community. 15. Any earnest money paid in connection with the purchase of a unit will be held in an escrow account until closing and will be held and disbursed for the escrow account as set forth in Minn. Stat. 515B.4-109 and returned to the purchaser if the purchaser cancels the Purchase Agreement pursuant to Minnesota Statutes Section 515B.4-106. The escrow agent is: Coldwell Banker, Clack & Dennis Real Estate, P.O. Box 71, Park Rapids, MN 56470. 16. A description of the insurance coverage to be provided by the Association for the benefit of the CIC Common Elements is set forth on the insurance binder attached hereto as Exhibit E. None of the optional coverages set forth in Minn. Stat. 515B.3-113(b) are included in that insurance. The insurance coverage maintained by the Association DO NOT cover the Unit Owner's dwelling structure, personal property or real property improvements located on the Unit, or personal injuries or other losses that may occur within or around the Unit or the dwelling structure. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. The Unit Owners will need to obtain property damage and liability insurance coverage pertaining to their particular Unit as well as coverage for the contents of the Owner's unit in the form of a homeowner's type of policy. Unit Owners should consult with their individual insurance broker or agent for appropriate insurance coverage. 17. Any fees or charges to be paid by unit owners for the use of the common elements and other facilities related to the condominium will be determined by the Association and included in the monthly Association dues. Currently there are no such fees in place or expected. 18. Financial arrangements will be made from time to time for completion of all improvements set forth on the CIC Plat. Currently those financial arrangements are: A commitment for construction financing in the amount of $650,000 Dollars has been secured through Northwoods Bank, 1202 East First Street, Park Rapids, Minnesota. As of this date, these funds have been expended towards the continuing construction and completion of Units 5,6,7,8, & 9. 19. There are no prior delinquent taxes on the CIC Units being sold pursuant to this Disclosure or for the real property owned by the Association and included in the common elements or the limited elements and the real estate taxes and installments of special assessments due on the Unit and the real property owned by the Association and included in the common elements or the limited elements in the year hereof are paid in full. 20. All units will be complete at the time of conveyance to any purchaser. No major construction activity will take place during summer months. The period from May 15th through September 15th will be a construction “blackout” period, with exception for emergency repairs, or to correct any hazardous conditions, or light interior finishing work, such as painting, laying carpet, installation of light fixtures, and other work that is non-intrusive in nature to the use and enjoyment of the common areas and individual Unit owners. 21. Construction of the Units herein described will take place in four phases. All of the Units in Phase I and Phase II will be materially complete in their construction before commencement of construction of any Units in Phase III or Phase IV, not withstanding the projected schedule of completion. Upon substantial completion of the common areas and substantial completion of the construction of all of the Units in Phase I and Phase II, Declarant shall be under no obligation to commence or complete construction of any Units in either Phase III or Phase IV, and expressly reserves the right to commence construction of Phase III and Phase IV entirely at its convenience and determination that market conditions favor initiation of the additional Phases, not withstanding any other provision for the completion of Phase III and Phase IV, or an estimate, forecast, or projected schedule of completion. Exhibit A). However, once a Phase of construction is initiated, Declarant shall be obligated to complete construction in a timely manner consistent with the seasonal construction “blackout” period. 22. The Declarant is a licensed Real Estate Broker in the State of Minnesota. Dated this ___ day of ____________, 20___. Echopoint Design & Development, LLC I (We), , Purchaser(s), do hereby acknowledge receipt of the above Disclosure Statements and all attachments and Exhibits relating thereto as of this ____ day of _______________, 20__. _________________________________ _________________________________ TO CIC DISCLOSURE STATEMENT GENERAL DESCRIPTION OF PLANNED COMMUNITY AND Declarant has substantially completed construction as of the date of this disclosure 2 dwelling structure(s) located within the boundaries of Unit(s) numbered 5,6,7,8,9,14, &15 . The Planned Community will include 6 new dwelling buildings, never before occupied, containing Units 1, 2, 3, 4, 16, 17, 18, 19 and 20. The remaining Units will be located in 4 rehabilitated dwelling structures. Units 5, 6, 7, 8 and 9 are located in a single rehabilitated structure. Units 10, 11, 12, 13, 14 and 15 are located in three separate rehabilitated structures. Units 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 and 15 were previously occupied as seasonal rentals prior to being rehabilitated and included in this Common Interest Community. All roadways, trails and utility easements within the Common Interest Community are shown on the CIC Plat as part of the Common Elements. The owners of each Unit are required to be members of an owners association known as Riverpark Villas Owners Association, Inc. This association is responsible for maintenance of the Common Elements, Limited Common Elements and the Unit exteriors as set forth in Section 9 of the Declarations. Each dwelling building is of frame construction, with T111 siding, lap siding, or equivalent, with a cedar tone stain. Full log and half log accent and exterior trim will be milled Western Cedar logs. All windows will be Marvin Green Clad, low E-glass, with matching screens and hardware, or equivalent. Roofing material will consist of 15lb felt with Certainteed Landmark 30 shingles in Midnight Green Blend, or equivalent, with green metal style D roof edge with metal soffit and facia. Interior walls will be finished with ½ inch sheet rock, ceilings in 5/8 inch sheet rock. Common party walls will be insulated with a minimum 2 hour fire rated partition. Each unit shall have separately metered utility services for water, sewer, electricity, gas, cable, and telephone service. Each unit shall have a central heating and air conditioning and air exchange system, and 200 amp electric panel. Declarants schedule of commencement and completion of the buildings and improvements to be located within the various Units and the Common Elements and Limited Common Elements is: Common Elements: Limited Common Elements: Construction Schedule: Unit 1: New construction to commence prior to 7/07, complete by 7/08 EXHIBIT B TO CIC DISCLOSURE STATEMENT COPY OF DECLARATION, CIC PLAT, COPIES OF THE ARTICLES OF INCORPORATION AND BY-LAWS OF THE RIVERPARK VILLAS OWNERS ASSOCIATION INC. WHICH HAVE BEEN FILED WITH THE MINNESOTA SECRETARY OF STATE, COPIES OF THE ASSOCIATION RULES AND REGULATIONS. EXHIBIT C TO CIC DISCLOSURE STATEMENT 1) CURRENT BALANCE SHEET FOR THE ASSOCIATION: a) Assets: b) Current Liabilities: 2) PROJECTED BUDGET FOR THE ASSOCIATION FOR THE FIRST FULL YEAR: a) Income: b) Projected Common Expenses: General & Administrative: TOTAL: $ Maintenance: TOTAL: $ c) There is $3,000.00 included in the budget as a reserve for repairs and replacement; d) The projected monthly common expense assessment for each unit is $125.00. 3) This balance sheet and projected budget were prepared by Declarant Echopoint Design & Development, LLC.
EXHIBIT D TO CIC DISCLOSURE STATEMENT The Declarant does not make or provide any express or implied warranties regarding Hubbard County Common Interest Community Number 6, Riverpark Villas or any of the improvements located on any of the Units or any of the Common Elements or Limited Common Elements except those express warranties which specifically arise pursuant to Minn. Stat. 327A, Minn. Stat. 515B.4-112 and Minn. Stat. 515B.4-113, copies of each are attached hereto. The Declarant does not intend to disclaim any of the implied warranties provided by Minn. Stat. 515B.4-113. The Declarant may agree with any prospective purchaser to reduce the applicable statute of limitations for a warranty claim under Minn. Stat. 515B.4-115 (b). EXHIBIT E TO CIC DISCLOSURE STATEMENT INSURANCE BINDER (Insurance coverage provided for the benefit of the Association)
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