Easement Rights

This document presents information about the Cottage Park Homeowners' Easement Rights. The Easement is part of Park A, a property owned by the City of White Bear Lake. It provides insight into why the Easement Rights belong to the Homeowners.

Ramsey County recognizes the Homeowners' Easement Rights and taxes their Parcels accordingly. These properties are designated by the County as water rights lots. The Easement Rights increase the value of their property resulting in increased property taxes.

The Cottage Park Homeowners' Association claims it owns the Easement. If it did, one would expect that they would own land, be paying property taxes, and by now would have re-written their Articles and Bylaws to recognize the Easement Rights.

Ramsey County Interactive Property Map

The Ramsey County website has the Interactive Property Map that provides a wide variety of information about Ramsey County, including property records such as tax parcels, classifications, valuations, owners, and other details. It can be used to search for property information and to determine the Easement owners.

Before searching, it helps to know the expectations for a perpetual Easement: (1) The Easement Rights are perpetual, so the Easement owner must be a land owner, (2) The Easement CANNOT provide a benefit that the potential Easement owner already has, (3) The perpetual Easement Rights increase the value of their property resulting in increased property taxes.

By using these parameters, one can conclude that any property that is not water front property is a potential perpetual Easement owner. Using the Ramsey County Interactive Property Map: (a) Select a Cottage Park property that is NOT on the lake, (b) After that select the "Link to Tax and Property Info...", (c) Then select the "Property Value" menu tab, (d) At the bottom of the page, in the Land section, it should say "WATERRIGHTS LOT".

Descr
From Interactive Property Map

To obtain more about the "WATERRIGHTS LOT" designation, email or call a contact on the upper right corner of the web page. Parcels with this designation own the Easement Rights. The Easement Rights add value to these properties resulting in additional property tax. It's also interpreted to mean that the easement owner is allowed to use the Easement Rights to launch a canoe or kayak onto White Bear Lake. It does not include any property tax related to boats and docks.

Actually, the only people paying property taxes are the property owners. The City is tax exempt and the Association is not paying any taxes.

Entities

The Cottage Park Association (1882): This corporation initially owned and platted the Cottage Park area. Sometimes confused with the Cottage Park Homeowners' Association.

South Shore Park Company (1888): Per Quit Claim Deed dated Oct. 10, 1888, and filed Nov 26, 1888 ("288" Deeds 141); The Cottage Park Association, by President and Secretary, transfers to The South Shore Park Company all their right, title and interest in all the lake fronts, parks, drives, streets, walks, alleys and other grounds in Cottage Park.

This all become subject to tax forfeiture in the early 1940's.

The Cottage Park Homeowners' Association (1981): The Cottage Park Homeowners' Association was formed on February 2, 1981. It is a nonprofit corporation. The goal of the Association is to own, buy, and sell property for its members. It is sometimes confused with The Cottage Park Association. A link to the Articles and Bylaws are below in the Reference section.

Articles of Incorporation are recorded as document 387672 at the Ramsey County Minnesota Recorders office. “The specific purposes for which the Association is formed are to provide for maintenance, preservation, and control of any Common Area owned by the Association for the benefit of the private owners of property in said Cottage Park Area who become members of the Association; … ”.

The Bylaws are presented in a notarized document. It has the laws relating to the board of directors, membership, and assessment issues. All the voting, membership, and dues requirements are based on using property owned by the Association.

Unlike most homeowners' associations, it operates like a sports club. Homeowners don't automatically become members when they buy property, but have to join the Association. The Association was established to own, buy, and sell land but has never acquired any land or Common Area.

Cottage Park Homeowners: All owners of residential property located in the area encompassed by the 1882 plat of Cottage Park. The Park A Easement Homeowners are a subset of the Cottage Park Homeowners. They are owners of water rights lots (WATERRIGHTS LOT) per the Ramsey County Recorder. See the list of water rights Homeowners in the Reference section below.

City of White Bear Lake: Title owner of the underlying Easement land. See Certificate of Title below in the Reference section below.

Agreements

In 1983, Cottage Park area Homeowners acquired Easement Rights to a portion of City property in the area referred to as Park A. This portion is designated as the Cottage Park Homeowners' Easement. The Easement Rights also allow Homeowners to have boats and docks along a portion of the Easement shoreline.

The following three agreements are related to the Easement. The agreements can be obtained from the Ramsey County Minnesota Recorder. Links to these agreements are in the Reference section at the end of this document.

2219607 (abstract) 1983: Declaration of Easements, Uses and Limitations. This agreement establishes the Cottage Park Homeowners' Easement, Nature Preserve Easement, and Walkway Easement.

2863748 (abstract) 1995: Amendment Agreement. Amendment to agreement 2219607.

1118663 (Torrens) 1996: Order and Decree of Registration in the matter of the application to register title to certain land, of City of White Bear Lake, a Minnesota municipal Corporation. This is the settlement of Ramsey County District Court Case, File No. 11953. Essentially this directs the Registrar of Titles to implement the court results and agreements per Minnesota law. The Certificate of Title has the latest outside boundary description for the easement.

Easement History

The process started in the 1970's when the City of White Bear Lake claimed they owned the land known as Park A and adjoining property strips. Some Homeowners claimed the land belonged to the Cottage Park Area Homeowners. The Homeowners tried to get a quitclaim deed approved by the City Council but didn't succeed. Then the City went to Court to gain title to the property. As a result, summons were issued to Homeowners in the Cottage Park Area.

The purpose of the court case was for the City to gain title to the Park A property. Also the Association claimed they owned the property but failed in their effort. An out-of-court settlement was negotiated where the City owned the property and Easement Rights for a portion of the property belonged to the Homeowners.

There were two Homeowner factions. One wanted the Homeowners to own the property and the other wanted a Homeowners' Association to own the property. In 1981 the Cottage Park Homeowners' Association was formed with Articles of Incorporation and Bylaws written to own the property.

The Homeowners and the Association retained an attorney. After researching and reviewing the issue, the attorney concluded that the Homeowners and the Association did not own the property. A compromise was suggested where the City would get title to the property and the Homeowners would get Easement Rights. Finally, an out-of-court settlement was negotiated where the City owned the property and Homeowners owned Easement Rights for a portion of the property.

Easement Ownership Issue

Of course, that didn't completely solve the problem. The Homeowners understanding was that they owned the easement, but later the Association decided it owned the easement.

A perpetual easement is usually a legal situation in which the title to a specific piece of land remains with the landowner, but another landowner is given the right to use that land for a justified and necessary distinct purpose.

The following statement is probably the best description of what was supposed to happen and what ultimately did happen. The Ramsey County Deputy Examiner of Titles stated and later wrote: "Any restrictions on easements should not run in favor of a temporary homeowner's association. Since such an association is not the owner of the parcels benefited, it should not be the recipient of the rights. The rights should be retained by or granted to the lots or parcels of land which are to be benefited." This same Deputy Examiner, an attorney, was appointed by the district court judge to perform the judicial, administrative and legal adviser duties for the court.

The initial agreement, 2219607, was made in 1983. The title is Declaration of Easements, Uses and Limitations. This agreement establishes the Cottage Park Homeowners' Easement, Nature Preserve Easement, and Walkway Easement.

Quote 1: From the beginning of agreement 2219607: "This Declaration is entered into the 18th day of October, 1983, by and between the City of White Bear Lake ("City"), a municipal corporation, and the Cottage Park Homeowners' Association ("Association"), a Minnesota non-profit corporation acting on behalf of all owners of residential property within the area encompassed by the plat of Cottage Park."

The highlighted portion of the statement indicates that the Association is acting as an agent for the Homeowners; similar to stating that: "The guardian signed the contract on behalf of the child." or "The lawyer spoke to the media on behalf of his client."

A similar statement appears at the beginning of the second agreement, 2863748: "... acting on behalf of all owners of residential property encompassed by the plat of Cottage Park.

The final agreement, 1118663, refers back to the two above agreements.

There does not seem to be any written and notarized agreement between the Homeowners and the Association authorizing the Association to act on behalf of the Homeowners. Also, at the time, there was a concern that the agreement was made without the approval of the City Council.

Quote 2: From the beginning of Section 1, Agreement 2219607: "... the City hereby conveys and grants a perpetual easement in favor of the Cottage Park Homeowners' Association over, under, and across the Subject Property. This easement shall be for the benefit and enjoyment of all owners of residential property located in the area encompassed by the 1882 plat of Cottage Park and this easement includes the right to construct docks on the Subject Property; ..."

Now it seems that the Association is claiming ownership of the Easement or is the Association still "acting on behalf of all owners of residential property"?

The highlighted portion of the statement is very specific about who benefits from the Easement Rights.

The Association and some Homeowners interpret the clause "the right to construct docks" to justify installing docks off the Easement. The City cannot grant that right. Only the DNR and the WBLCD can do that. Note that the DNR general permit only applies to a shoreline landowner.

Quote 3: The agreement continues: "... provided, however, that these rights shall be subject to and in accordance with membership requirements, rules and regulations as may be established from time to time by the Cottage Park Homeowners' Association, or by law. ..."

This seems contradictory. Initially the Association claims to be acting on behalf of the Homeowners and then proceeds to claim the Easement for itself. It further states the easement is for the benefit of all Homeowners and the Association will require membership and establish rules and regulations. How is this going to work? How is the Association going to make rules and regulations? How are they going to be enforced?

Why include the phrase "or by law"? Were the writers aware there were problems? Did they know there was a conflict with the Association both representing the Homeowners and also claiming ownership of the Easement? Were they aware that the Association could not own a perpetual Easement because they did not own land?

As of this date, the Association does not have any written legal agreement with Easement Homeowners regarding membership requirements, voting, rules, and regulations related to the Easement. In fact, the Association Articles of Incorporation and Bylaws, with rules related to director selection and voting, still only apply to land they own and don't even acknowledge the existence of the Homeowners' Easement Rights.

Quote 4: The agreement continues: "This easement shall run with the land."

The only land owners are the Homeowners and the City. The Association does not own any land. This seems to indicate Homeowners that legally qualify own the Easement.

Quote 5: The agreement continues: "... it is specifically intended that this easement shall be exclusive, and is not for the benefit of the public, the City, or other persons or entities other than owners of residential property encompassed by Cottage Park, and their successors in interest.".

Again, the highlighted portion of the statement is very specific about who benefits from the Easement Rights.

The remainder of the agreement presents details related to the Pedestrian Walkway, the Nature Preserve, and the property survey.

Conclusions

Conclusion 1: Qualifying Cottage Park Homeowners own the Easement Rights. Any action related to the Easement area, other than normal maintenance of the grounds, requires notarized unanimous written approval by ALL Easement owners.

Conclusion 2: Ramsey County recognizes the Homeowners' Easement Rights and taxes their Parcels accordingly. The Easement Rights increases the value of their property resulting in increased taxes.

Conclusion 3: The Cottage Park Homeowners' Association Articles of Incorporation and Bylaws only define their rights for the land that they own. The Association does NOT own any land.

Conclusion 4: The Association does NOT own the Easement Rights and is not organized to represent the Cottage Park Area Homeowners Easement Rights. Therefore, the meetings, votes, and any other actions by the Association related to the Cottage Park Homeowners' Easement issues are not legitimate.

Conclusion 5: The Association, a group of Homeowners, or another Homeowner can't keep a Homeowner off the Easement or demand any form of fee, assessment, or fine.

Remark: Some homeowners are fans of squatter rights, that is, claiming that they have been doing it this way for a long time so we now have the right to keep doing it. Under Minnesota law, a squatter can claim possession of a property after 15 years of continuous residence and five years of property tax payment.

Documents of Interest

Here are some of the views related to the Easement ownership. It also demonstrates why there so much confusion.

DOI 1: The following list are documents for Torrens Case 11953, "In the Matter of the Application of the City of White Bear Lake, Plaintiff, v. Town of White Bear, Defendant", located at the Ramsey County Second Judicial District Court Records in St. Paul, Minnesota.

Abstracts (4)
Surveys/Maps (2)
Correspondence (8)
Affidavits of Service (15)
Various Pleadings (17)
Notes of Issue (3)
Petition/Summons (11)
Reports of Examiner (8)
Orders/Registration (4)

Number in parentheses is quantity of documents. The maps are copies of surveys made in 1976 by Paul R. McLagen & Sons.

DOI 2: Instructions from Deputy Examiner Of Titles for Torrens Case 11953.
June 7, 1983: Letter from Deputy Examiner to Homeowners' Attorney.

DOI 3: Claim from the Association that it does not acknowledge the Deputy Examiner Of Titles claim that the Association is temporary. Does not explain how the Association can own an perpetual easement, approved by the City, without owning land. The only justification Indicates that the easement would be in total chaos if Homeowners owned it. Writing "on behalf" of her Attorney.
April 3, 1987: Letter from Association Councilman/Homeowner.

DOI 4: Reasons why the easement rights should belong to the Homeowners plus other issues; essentially a response to the previous letter. Acknowledges instructions from Deputy Examiner of Titles still valid.
April 30, 1987: Letter from Homeowners' Attorney to Councilman/Homeowner.

DOI 5: Homeowners' Attorney discusses possible options and problems related to the Association ownership of the easement.
May 12, 1987: Letter from Homeowners' Attorney to Association.

DOI 6: This proposed court document rewrites agreement 2219607 to remove the contradictions and removes any implications that the Association owns the Easement. Matches closely to what was actually implemented by the County.
1987: Proposed Court File 11953 Revision

DOI 7: This is from the Attorney that initially claimed that the Association owned Park A. He founded the Association to own it. Now he states that the Association owns the Easement even though Ramsey County recognizes the Homeowners' Easement Rights and taxes their Parcels accordingly. These properties are designated by the County as water rights lots. The Easement Rights increase the value of their property resulting in increased property taxes.

First he states "that nothing needs to be done to "vest" the easement rights in the Association". Then suggest two methods to update a homeowner's title. One is to include text starting with "Together with any and all rights, title, and interest appurtenant to said property over, under and across part of Block A, Cottage Park, which may be available from Cottage Park Homeowners Association ..."

Even in the end the Association uses the very vague word "may". Why not be more specific? So if the Homeowners already own the Easement the word "may" means nothing.
May 10, 1996: Proposed text for Homeowners' Deeds from Association Attorney to Association.

DOI 8: This is a handout from the City of White Bear Lake. Note that in the description for Yellow: "An easement including all land marked yellow will be granted exclusively to the residents of Cottage Park through the Cottage Park Association."

How, legally, is this supposed to work? This seems to imply that the easement is given to the homeowners and that somehow the Association is involved.
City Cottage Park Handout..

DOI 9: A check on the status of the Cottage Park Homeowners' Association on the Minnesota Secretary of State's website shows that the Association was NOT even "Active" when the Certificate of Title was recorded on April 19, 1996. In fact, it seems it was not "Active" from a year after February 2, 1981 up to September 18, 1998.
Minnesota Secretary of State.

DOI 10: From Document 2863748 Section 1: "By quitclaim deed, executed and filed immediately after this Amendment Agreement, the Association shall transfer and convey to the City any and all other interests it may have in Subject Property, accruing by deed, easement, operation of law, or otherwise, reserving its rights under the Easement Declaration and this Amendment Agreement.". As of May 18, 2023, a quitclaim deed has not been recorded.