7.2 Joint Powers Agreement with Breezy Point

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Subdivision 1. Pequot Lakes owns a fire station and land upon which it sits located at 4638 Main Street, Pequot Lakes, Minnesota 56472 (the "Pequot Lakes Fire Station" a/k/a Fire Station #1), which prior to the establishment of the District was used by the City of Pequot Lakes Fire Department. Subdivision 2. Breezy Point owns a fire station and land upon which it sits located at 8361 County Road 11, Breezy Point, Minnesota 56472 (the "Breezy Point Fire Station" a/k/a Fire Station#2),which prior to the establishment of the District was used by the City of Pequot Lakes Fire Department. Subdivision 3. Pequot Lakes shall execute a Fire Station Lease Agreement (the "Pequot Lakes Lease"), with an effective dating being the Fire Services Commencement Date, with the District leasing the above-referenced land and building to the District for the use thereof by the District for amounts to be paid by the District(the"rent" of$1.00 annually) as contained in the Pequot Lakes Lease and in accordance with those other terms and conditions contained in the Pequot Lakes Lease. Pequot Lakes shall remain the owner of the Pequot Lakes Fire Station and the real property upon which it is located at all times during the term of the Pequot Lakes Lease. Subject to the Pequot Lakes Lease, any maintenance, alterations or improvements to the Pequot Lakes Fire Station shall be the financial responsibility of'the District, and the District shall be responsible for managing and overseeing such maintenance, alterations or improvements. Subdivision 4. Breezy Point shall execute a Fire Station Lease Agreement (the "Breezy Point Lease"), with an effective dating being the Fire Services Commencement Date, with the District leasing the above-referenced land and building to the District for the use thereof by the District for amounts/to be paid by the District (the"rent" of$1.00 annually) as contained in the Breezy Point Lease and in accordance with those other terms and conditions contained in the Breezy Point Lease. Breezy Point shall remain the owner of the Breezy Point Fire Station and the real property upon which it is loomed at all times during the term of the Breezy Point Lease.Subject to the Breezy Point Lease, any maintenance,alterations or improvements to the Breezy Point Fire Station shall be the financial responsibility of the District,and the District shall be responsible for managing and overseeing such maintenance, alterations or improvements. Subdivision 5. All new joint buildings and land may be owned and to the extent permitted by law, financedby the District, unless the Parties determine otherwise. The cost of new or upgraded facilities must be approved by all the Parties to this Agreement. The District shall be responsible for managing and overseeing the construction of any new joint buildings, including compliance with the requirements of the Uniform Municipal Contracting Law for competitive bidding, as applicable. ARTICLE XIV USE OF EQUIPMENT Subdivision 1. District equipment shall be used as follows: a. Within the jurisdictions of the Parties. b. In areas adjacent to the jurisdictions of the Parties where a fire may spread into them. Joint Powers Agreement to Provide Fire Services Page 12 of 26