Loading...
HomeMy WebLinkAbout1.03 Declaration of Coventants, Conditions & Restrictions�v r DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS LACY PARK SUBDIVISION TABLE OF CONTENTS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF LACY PARK SUBDIVISION ARTICLE I - Recitals Section Section Section Section Section Section ARTICLE II - Section Section Section Section Section Section Section 1 1.1. The Declarant 1 1.2. The Property 1 1.3. The Plat 2 1.4. The Development 2 1.5. The Name 2 1.6. The Purpose 2 Definitions 2 2.1. Plat 2 2.2. Lot 2 2.3. Owner 3 2.4. Association 3 2.5. Mortgage 3 2.6. Mortgagee 3 2.7. Common Expenses 3 ARTICLE III - The Association 3 Section 3.1. The Name 3 Section 3.2. Membership 3 Section 3.3. Voting 3 Section 3.4. Two Classes of Voting Membership 3 Section 3.5. Borrowing 4 Section 3.6. Rules and Regulations 4 Section 3.7. Exercise of Powers 4 Section 3.8. Assessments 4 Section 3.9. Annual Assessments 5 Section 3.10. Special Assessments 5 Section 3.11. Establishment of Annual Assessment Period 5 Section 3.12. Equality of Assessment and Exceptions 5 i Section 3.13. Collection of Assessments Section 3.14. Assessment Liens Section 3.15. Non -User Exemption Section 3.16. Payment of Assessments Section 3.17. Budgets ARTICLE IV - Common Well and Water Distribution System Section 4.1. Section 4.2. Section 4.3. Section 4.4. Section 4.5. 6 6 6 7 7 7 Well 7 Allocation of Water 7 Water Meters 7 Maintenance 8 Individual Water Treatment Systems 8 ARTICLE V - Use Regulations Section 5.1. Loading and Unloading Section 5.2. Section 5.3. Section 5.4. Section 5.5. Section 5.6. Section 5.7. 8 8 Parking 8 Lighting 8 Resubdivision 9 Maintain Appearance 9 Waste Water Treatment 9 Drainage 9 ARTICLE VI - Insurance Section 6.1. Section 6.2. Section 6.3. Section 6.4. Section 6.5. Section 6.6. Section 6.7. Section 6.8. ARTICLE VII - Section 7 Section 7 ARTICLE VIII Section 8 Section 8 Section 8. Section 8. Section 8.5. Section 8.6. Association to Maintain Insurance Liability Coverage Non -Availability Fidelity Bonds and Insurance Officers and Directors Worker's Compensation and Employer's Liability Insurance Other Insurance Insurance Expense 9 9 9 10 10 10 10 10 10 Assessment Certificates and Notices 11 .1. Assessment Certificates 11 .2. Notice of Assessment Liens 11 - General Provisions 11 .1. Notices to Owners 11 .2. Covenants to Run with the Land 11 3. Termination or Amendment of Declaration 11 4. Enforcement 12 Duration 12 Severability 12 ii LACY PARK SUBDIVISION DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS (Commercial - Garfield County, Colorado) KNOW ALL MEN BY THESE PRESENTS that LACY PARK, LLC, a Colorado limited liability company does hereby declare and adopt the following Declaration of Covenants, Conditions and Restrictions (the "Declaration"), which shall run with the real property hereafter described, and which shall be binding upon all parties acquiring any interest therein or thereto. ARTICLE I - Recitals Section 1.1. The Declarant. Lacy Park, LLC (the "Declarant") is a limited liability company duly organized and existing under and by virtue of the laws of the State of Colorado. Section 1.2. The Property. The real property submitted to this Declaration is located in the County of Garfield, State of Colorado, and is more particularly described as follows: A PARCEL OF LAND BEING ALL THAT DESCRIBED IN THAT CORRECTION DEED FROM CATHEDRAL BLUFFS SHALE OIL COMPANY TO RIO GRANDE LAND COMPANY, AS RECORDED IN BOOK 672, PAGE 679, JULY 22, 1985 IN THE OFFICE OF THE CLERK AND RECORDER OF GARFIELD COUNTY, SAID PARCEL BEING ALL OF PARCEL "A" DESCRIBED IN THAT DEED FROM RIO GRANDE LAND CO. TO SOUTHERN PACIFIC TRANSPORTATION COMPANY, AS RECORDED IN BOOK 888, PAGE 25, DECEMBER 29, 1993 IN THE OFFICE OF SAID GARFIELD COUNTY CLERK AND RECORDER, SAID PARCEL SITUATED IN SECTIONS 13, 14 AND 24, TOWNSHIP 6 SOUTH, RANGE 94 WEST OF THE SIXTH PRINCIPAL MERIDIAN, COUNTY OF GARFIELD, STATE OF COLORADO, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE SOUTHERLY RIGHT OF WAY LINE OF U.S. INTERSTATE HIGHWAY NO. 70, WHENCE THE NORTHWEST CORNER OF SAID SECTION 23 BEARS S 87 DEGREES 47' 24" W, 3995.88 FEET; THENCE ALONG SAID SOUTHERLY RIGHT OF WAY LINE THE FOLLOWING EIGHT (8) COURSES: 1) N 67 DEGREES 34' 43" E, 373.33 FEET; 2) N 72 DEGREES 43' 30" E, 564.60 FEET; 3) S 82 DEGREES 13' 30" E, 405.90 FEET; 4) S 71 DEGREES 46' 00" E, 343.60 FEET; 5) ALONG A TANGENT CURVE TO THE LEFT, HAVING A CENTRAL ANGLE OF 32 DEGREES 00' 00", A RADIUS OF 627.50 FEET, AN ARC LENGTH OF 350.46 FEET AND OF WHICH THE CHORD BEARS S 87 DEGREES 46' 00" E, 345.90 FEET; 5) ALONG A TANGENT CURVE TO THE LEFT, HAVING A CENTRAL ANGLE OF 32 DEGREES 00' 00", A RADIUS OF 627.50 FEET, AN ARC LENGTH OF 350.46 FEET AND OF WHICH THE CHORD BEARS S 87 DEGREES 46' 00" E, 345.90 FEET; 6) ALONG A NON -TANGENT CURVE TO THE LEFT, HAVING A CENTRAL ANGLE OF 57 DEGREES 37' 50", A RADIUS OF 325.00 FEET, AN ARC LENGTH OF 326.90 FEET AND OF WHICH THE CHORD BEARS N 47 DEGREES 19' 00" E, 313.20 FEET; 7) N 86 DEGREES 20' 00" E, 767.70 FEET; 8) S 89 DEGREES 35' 00" E, 301.50 FEET TO A POINT ON THE NORTHERLY RIGHT OF WAY LINE OF THE DENVER AND RIO GRANDE WESTERN RAILROAD; THENCE LEAVING SAID SOUTHERLY HIGHWAY R.O.W. LINE, S 51 DEGREES 44' 50" W, 519.14 FEET ALONG SAID NORTHERLY RAILROAD R.O.W. LINE; THENCE CONTINUING ALONG SAID RAILROAD R.O.W. LINE, ALONG A CURVE TO THE RIGHT, HAVING A CENTRAL ANGLE OF 08 DEGREES 38' 47", A RADIUS OF 2815.00 FEET, AN ARC LENGTH OF 424.81 FEET AND OF WHICH THE CHORD BEARS S 56 DEGREES 04' 14" W, 424.41 FEET; THENCE N 86 DEGREES 13' 14" W, 2501.87 FEET TO THE POINT OF BEGINNING. Section 1.3. The Plat. The Property is subdivided into five (5) lots by virtue of the Final Plat of Lacy Park Subdivision, Recorded as Reception No. of the Garfield County, Colorado records. Section 1.4. The Development. The Property is to be developed for such uses as may be permitted by the applicable zoning. Section 1.5. The Name. The Development shall be known as "LACY PARK." Section 1.6. The Purpose. The purpose of this Declaration is to protect the public health and welfare, to enhance property values and to otherwise further the interests of the development. Declarant intends to define the character, rights and obligations of lot ownership within the Development, and for this purpose executes this Declaration. ARTICLE II - Definitions The terms set forth below shall have the following meanings when used herein unless the context requires otherwise: Section 2.1. Plat. Plat shall mean the Final Plat of Lacy Park Subdivision identified in ARTICLE I, Section 3. Section 2.2. Lot. A Lot means and shall refer to any of the numbered lots within Lacy Park shown on the Plat. 2 Section 2.3. Owner. Owner (sometimes referred to as lot owner) means and refers to any person or entity (including the Declarant) at any time owning a lot. Section 2.4. Association. Association means and refers to LACY PARK OWNERS ASSOCIATION, a Colorado corporation, not for profit. Section 2.5. Mortgage. Mortgage means and refers to any Mortgage, Deed of Trust or other security instrument by which a Lot or any part thereof is encumbered. Section 2.6. Mortgagee. Mortgagee means and refers to any person or entity named as a mortgagee or beneficiary under any Deed of Trust or Mortgage encumbering any lot. Section 2.7. Common Expenses. Common expenses means and refers to expenditures made or liabilities incurred by or on behalf of the Association, together with any allocations to reserves. ARTICLE III - The Association Section 3.1. The Name. The name of the Association is LACY PARK OWNERS ASSOCIATION. Section 3.2. Membership. Every owner shall be entitled and required to be a member of the Association. An owner shall be entitled to one (1) membership for each lot owned. Each such membership shall be appurtenant to and inseparable from the lot upon which it is based, and shall be transferred automatically by the transfer, in whatsoever form, of that lot. Ownership of a lot shall be the sole qualification for membership. No person or entity other than an owner may be a member of the Association. Section 3.3. Voting. Each lot shall be entitled to one (1) vote. Owners of more than one (1) lot shall have the right to cast the aggregate number of votes that the lots which they own represent. If any lot is owned by multiple parties, all such parties shall be members; provided, however, that the vote to which such lot is entitled shall be exercised as the several owners among themselves shall determine, but in no event shall more than one (1) vote be cast with respect to any one (1) lot. Cumulative voting shall not be permitted in the election of the Executive Board or for any other purpose. Section 3.4. Two Classes of Voting Membership. The Association shall have two classes of voting membership. Class A members shall be all the owners of lots other than the Declarant. The Declarant and any successor to Declarant's interests under the provisions of this Section by virtue of express assignment of Declarant's voting rights, shall be the Class B member. The Class B member shall be entitled to appoint and elect all members of the Executive Board of the Association and to otherwise control the Association until such time as Declarant has transferred 3 eighty percent (80 %) of the lots to owners other than the Class B member, whereupon the Class B membership shall cease to exist and shall be automatically converted to a Class A membership. Section 3.5. Borrowing. The Association shall have the right to borrow money to temporarily cover current operating expenses and for other purposes related to the exercise of its powers and duties or the performance of its functions. Section 3.6. Rules and Regulations. The Association may, but is not required, to promulgate, supplement and amend, from time to time, reasonable rules and regulations governing the use of the lots, which rules and regulations shall be consistent with the rights and duties established in this Declaration and the applicable zoning. Section 3.7. Exercise of Powers. The Association shall have the responsibilities assigned to it by this Declaration and the Bylaws. The Association may also undertake the performance of such functions in the nature of community services that the Executive Board deems to be in the interest or for the benefit of the owners and occupants of the Property or calculated to protect or enhance property values or advance the interests of the owners. The Association shall have every right, privilege or power given, permitted or reasonably to be implied from this Declaration, the Bylaws and as otherwise permitted by law. Section 3.8. Assessments. The Association shall have the right to levy and make assessments, in accordance with its By -Laws and this Declaration, for the following purposes: (a) To promote the health, safety, and welfare of the owners, tenants and occupants of the Property; (b) To preserve or enhance property values; (c) To pay taxes and special assessments levied against any of the property of the Association, whether real or personal; (d) To pay all costs and charges associated with the maintenance, operation and administration of the common water well, pump house, storage tank, water distribution system, trunk lines and related facilities, including operational and maintenance costs and capital improvements associated with the same; (e) To pay all costs and charges associated with periodically monitoring, inspecting and testing the individual reverse osmosis water treatment systems required for each lot; (f) To pay all costs and charges associated with the maintenance and operation of the common water retention pond required for fire flows and the fire hydrants, trunk lines, and related facilities, including operational and maintenance costs and capital improvements associated with the same; 4 (g) To pay all water allotment fees, contract fees and other charges of the West Divide Water Conservancy District, in respect to the Water Allotment Contract for the well and as otherwise related to the water supply for the Property; (h) To pay all costs of supervising, inspecting and otherwise monitoring (a) water allocations and water usage; and (b) the maintenance and upkeep of the individual reverse osmosis water treatment systems required to be maintained for each lot by the owner of that lot; (i) To perform or provide other proper functions in the nature of community services for the benefit of the Property; (j) To pay wages for Association employees, Association management expenses, legal and accounting fees; (k) To pay any deficit remaining from any previous assessment period; (1) To create a reasonable contingency reserve, surplus and/or sinking fund; (m) To pay any other expenses or liabilities which may be incurred by the Association for the benefit of the owners under or by reason of this Declaration, its Articles of Incorporation or Bylaws, or as otherwise permitted by law. Section 3.9. Annual Assessments. Commencing with the year following the year in which the Declaration is recorded, an Annual Assessment shall be made against each lot shown on the Plat. Annual assessments shall be based upon the annual budget approved by the Executive Board for the purpose of paying common expenses, including, reserves for any costs or expenditures reasonably determined by the Executive Board to be properly the subject of an Annual Assessment. Section 3.10. Special Assessments In addition to the Annual Assessment, the Association may levy Special Assessments from time to time as and when the need arises. Section 3.11. Establishment of Annual Assessment Period. After the initial Annual Assessment has been made by the Association, Annual Assessments shall thereafter be based on a budget adopted no less frequently than annually. The period for which the Annual Assessment is to be levied (the "Assessment Period") shall be the calendar year, until and unless a more suitable twelve (12) month fiscal period should be determined and adopted as the Assessment Period by the Executive Board. The Executive Board shall fix the amount of the annual Assessment against each lot at least sixty (60) days in advance of the end of the prior assessment period. Section 3.12. Equality of Assessment and Exceptions. Each lot shall bear an equal proportionate share of any assessment for common expenses other than expenses associated with 5 the maintenance of the separate access roads which serve less than all the Property. Lot 1 is served by a separate access road and shall bear all costs and expenses associated therewith, without any involvement on the part of the Association. Lots 2 and 3 are served by a separate access road, and Lots 4 and 5 are served by yet another separate access road, all as shown on the Plat. All costs and expenses associated with each such access road shall be borne exclusively and shared equally by the lots served thereby. The maintenance of such access roads may be handled by the owners served thereby without any involvement of the Association; however, should such owners fail to properly maintain any such access road or fail to agree as to the nature or extent of the maintenance required or as to the sharing of costs, the Association may perform such maintenance as it deems proper and assess the costs to the lots serviced thereby, equally. Section 3.13. Collection of Assessments. Assessments shall be due and payable after the date the same are levied within such reasonable time period as the Association may specify. If not paid within that time, the same shall be considered delinquent. All delinquent assessments shall bear interest at the rate established by the Association from time to time, but in no event less than twelve percent (12%) per annum. The Association may further assess a late charge for each month the delinquency continues. The Association shall have the right to bring an action at law against the owner personally obligated to pay any delinquent assessment. In addition, the Association may record in the office of the Clerk and Recorder of Garfield County, Colorado, a Statement of Lien setting forth the name of the owner, the legal description of the lot, the name of the Association, and the amount of the delinquent assessment, which Statement shall be signed and acknowledged by an executive officer of the Association, and served upon the owner of the lot by ordinary mail, mailed to the address of the lot, or to such other address the Association may have in its records for the owner of the lot. Upon the expiration of not less than ten (10) days after the mailing of such notice, the Association may proceed to foreclose the Statement of Lien in the same manner as provided for the foreclosure of mortgages on real property. The Association shall be entitled to recover as a part of any action (whether a foreclosure action or a personal action) the full amount of all delinquent assessments, together with interest, late charges, costs and expenses of suit, including without limitation, its reasonable attorneys' fees incurred. Section 3.14. Assessment Liens. All sums assessed to any lot by the Association shall be secured by a lien on such lot in favor of the Association. Such lien shall be subordinate to any valid tax and special assessment lien on the lot in favor of any governmental assessing authority, but shall be superior to all other liens and encumbrances on such lot. No owner may exempt himself or his lot from liability for any assessment or assessment lien by waiving any benefits or by abandonment of his lot. A transfer (by whatever method) of any lot shall not affect the assessment lien. The sale or transfer of a lot shall not relieve any former owner of personal liability therefore, and the party acquiring such lot, i.e., the new owner, shall be deemed to have personally assumed such liability. Section 3.15. Non -User Exemption. Notwithstanding anything herein contained to the contrary, no lot shall be subject to assessment until such time as the lot is improved with: (a) a building or other structure; or (b) facilities which permit the use of water from the common well 6 and water distribution system. Until either such event should occur, unimproved lots shall be exempt from assessment and all common expenses shall be shared equally among the improved lots only. Section 3.16. Payment of Assessments. Each owner shall pay to the Association, in accordance with its Bylaws, such assessments as may be periodically made by the Association, without counterclaim, deduction or set off. Section 3.17. Budgets. It shall be the duty of the Executive Board to formulate and propose a budget of expenses, not less frequently than annually. Within thirty (30) days after adoption of any proposed budget for the Property, the Executive Board shall mail, by ordinary first- class mail, or otherwise deliver a summary of the budget to all the members and shall set a date for a meeting of the members to consider ratification of the budget not less than fourteen (14) nor more than sixty (60) days after mailing or other delivery of the summary. Unless at that meeting members representing a majority of all lots reject the budget, the budget is ratified, whether or not a quorum is present. In the event that the proposed budget is rejected, the periodic budget last ratified by the members shall be continued and deemed effective for the ensuing period until such time as the members ratify a subsequent budget proposed by the Board. ARTICLE IV - Common Well and Water Distribution System Section 4.1. Well. Declarant hereby dedicates the water well existing on Lot 2, together with the pump, pump house, storage tank and water distribution system to the Association for the use and benefit of the owners. Section 4.2. Allocation of Water. The annual water allotment for the well permitted under the West Divide Conservancy District Water Allotment Contract shall be allocated among the lots as follows: Lot 1 Lot 2 Lot 3 Lot 4 Lot 5 1.6 acre feet, annually 1 acre foot, annually 1 acre foot, annually 1 acre foot, annually 1 acre foot, annually No more than five thousand (5,000) square feet of lawn and landscape shall be irrigated on Lot 1 from the common water supply. No more than two hundred fifty (250) square feet of landscape shall be irrigated on Lot 2 from the common water supply. No irrigation from the common water supply shall be permitted on Lots 3, 4 or 5. Section 4.3. Water Meters. The owner of each lot shall be responsible to install and maintain a water meter approved by the Association upon connection to the common water supply. The Association shall monitor the water usage to insure compliance with the allocation of water set 7 forth above. The Association may promulgate such rules and regulations as deemed appropriate to administer the water system and the allocation of water among the lots. Section 4.4. Maintenance. The Association shall pay all fees and annual charges of the West Divide Water Conservancy District in connection with the Water Allotment Contract and maintain the well, storage tank and common water distribution system, including the trunk lines, but not branch lines extending from the trunk lines to serve the improvements on any individual lot. All such costs shall be assessed to the lots on an equal basis. Section 4.5. Individual Water Treatment Systems. The Property is located within an area in which the groundwater is presumed to be contaminated or susceptible to contamination by the UMPTRA Milling activities, and a reverse osmosis water treatment/filtration system is therefore required for all potable, sanitary and irrigation water usage upon the Property as a precautionary measure for the health, safety and welfare of occupants of the Property. So long as the water supply is provided by groundwater, each owner shall be required to install and maintains: (a) an individual reverse osmosis water treatment/filtration system for all potable water and sanitary water needs, which meets published EPA standards; and (b) an individual storage tank with a minimum storage capacity of 300 gallons. Each such individual treatment system shall be maintained and kept in good condition and repair at all times by the owner. The Association shall periodically monitor, inspect and test such individual water treatment systems to insure compliance with the provisions of this Section and may employ a qualified independent contractor for such purpose. ARTICLE V - Use Regulations Section 5.1. Loading and Unloading. All loading and unloading of vehicles shall be conducted on private property. No loading or unloading of vehicles shall be conducted in a manner to interfere with the use of any public or private access road. Section 5.2. Parking. At the time of the erection of a new structure on any lot, off-street parking adequate to serve the use intended shall be provided off-street and off any common access easement. All parking requirements for a particular lot shall be satisfied by providing parking on that lot or alternatively off -lot parking on neighboring lot(s) or other adjacent property through the use of parking easements, reciprocal parking easements, leased parking spaces or otherwise. Parking spaces shall be located in such a manner that their use will require no backing movements or other maneuvering with any public street or common access right-of-way. Section 5.3. Lighting. Artificial lighting provided in connection with any parking area or otherwise shall be deflected so as, in the opinion of the Garfield County Building Department, not to shine or create a glare on any public street or road. All lighting shall be designed in a manner so that no offensive glare shall be projected onto Interstate 70 or any other public road or in a manner which would otherwise result in the projection of offensive glare beyond the lot itself. 8 Section 5.4. Resubdivision. No lot shall be further subdivided without the prior written approval of the Association and the Declarant (so long as Declarant remains an owner of any lot). Any such resubdivision of a lot shall further require the appropriate governmental approvals. Section 5.5. Maintain Appearance. On-site storage of all materials, vehicles and equipment shall be done in an orderly manner, no junk, refuge, inoperable vehicles/equipment, or debris shall be allowed to accumulate. All noxious weeds shall be eradicated and controlled on each lot. The only materials allowed to be stored on site are those that are to be actively used in the day-to-day operation of any business or businesses located upon the Property. Section 5.6. Waste Water Treatment. Waste water shall be treated on each lot by individual sewage disposal systems, provided always, that any regional sewer system that should become available in the future may be used. Individual sewage disposal systems shall meet all requirements and specifications of applicable state and local regulations. No individual sewage disposal system shall be located within feet of the common well. Section 5.7. Drainage. Drainage demands resulting from roofs, roads, parking areas, hardscape and otherwise resulting from the improvements made to any lot shall be retained on that lot. At the time of building permit application, the owner of each lot shall be required to provide an engineered drainage study acceptable to the Garfield County Building Department to determine and provide for required detention volumes. ARTICLE VI - Insurance Section 6.1. Association to Maintain Insurance. Commencing not later than the time of the first conveyance of a lot to a person other than the Declarant, the Association shall maintain, to the extent reasonably available, the kinds and types of insurance specified in this Article. Section 6.2. Liability Coverage. Commercial general liability insurance against claims and liabilities arising in connection with the operation and management of the business and affairs of the Association, as deemed sufficient in the judgment of the Executive Board, but in no event, less than one million dollars per occurrence and two million dollars aggregate, insuring the Executive Board, the Association, the management agent, if any, and their respective employees, agents, and all persons acting as agents. Declarant shall be included as an additional insured in Declarant's capacity as an owner. The owners shall be included as additional insureds only for claims and liabilities arising in connection with the operation and management of the business and affairs of the Association. The insurance shall cover claims of one (1) or more insured parties against other insured parties. The policy carried pursuant to this Section shall provide that: (a) Each owner is an insured person under the policy with respect to liability arising out of such owner's membership in the Association; 9 (b) The insurer waives its rights to subrogation under the policy against any owner or member of his household; (c) No act or omission by the owner, unless acting within the scope of such owner's authority on behalf of the Association, will void the policy or be a condition to recovery under the policy; (d) If, at the time of a loss under the policy, there is other insurance in the name of an owner covering the same risk covered by the policy, the Association's policy provides primary insurance. Section 6.3. Non -Availability. If the insurance described in Section 6.2 of this Article is not reasonably available, or if any policy of such insurance is canceled or not renewed, without a replacement policy therefore having been obtained, the Association promptly shall cause notice of that fact to be hand delivered, or sent prepaid, U.S. mail, to all owners. Section 6.4. Fidelity Bonds and Insurance. The Association may require all Executive Board members, officers, employees and managers of the Association handling or responsible for Association funds, to furnish (at the expense of the Association) adequate fidelity bonds or insurance to protect against dishonest acts, with such coverage limits as the Association deems appropriate. Section 6.5. Officers and Directors. The Association shall keep and maintain Officers and Directors errors and omissions and personal liability coverage, with limits not less than $1,000,000 per occurrence and $2,000,000 aggregate, to protect the officers and directors from personal liability in relation to or arising out of their duties on behalf of the Association. Section 6.6. Worker's Compensation and Employer's Liability Insurance. The Association shall obtain worker's compensation and employer's liability insurance and all other similar insurance with respect to its employees in such amounts and form as may now or hereafter be required by law. Section 6.7. Other Insurance. The Association may also obtain insurance coverage against any such other risks of a similar or dissimilar nature, as deemed appropriate. Section 6.8. Insurance Expense. The cost of all insurance which the Association is required or permitted to maintain, shall be assessed to the lot owners as a common expense. 10 ARTICLE VII - Assessment Certificates and Notices Section 7.1. Assessment Certificates. Upon request, the Association shall provide any owner, prospective purchaser, mortgagee or prospective mortgagee, of any lot in the Community a certificate in writing signed by an officer of the Association setting forth the amount of any assessments, interest or late charges due in connection with any specified lot. A reasonable charge may be made by the Association for the issuance of such certificates. Section 7.2. Notice of Assessment Liens. The Association shall furnish to a lot owner or his designee, or to a holder of any security interest, mortgage or deed of trust or its designees, upon written request delivered personally or by certified mail, first-class postage prepaid, return receipt requested, to the Association's registered agent, a written statement setting forth the amount of unpaid assessments currently levied against such owner's lot. This statement shall be furnished within fourteen (14) days after receipt of the request and is binding on the Association, the Executive Board and every owner. Any such statement provided by the Association shall be deemed delivered upon (a) mailing, ordinary mail, postage prepaid; or (b) sending by fax; or (c) personal delivery. If no statement is furnished to the inquiring party within said fourteen (14) day period, then the Association shall have no right to assert a lien upon the lot for unpaid assessments which were due as of the date of the request. ARTICLE VIII - General Provisions Section 8.1. Notices to Owners. Notice to an owner of matters effecting the Property by the Association or by another owner, shall be sufficiently given if such notice is in writing and is delivered personally, by courier or private service delivery, or by deposit in the U.S. mail, postage prepaid, addressed to such owner at the registered mailing address furnished by the owner to the Association in accordance with the Bylaws. Such mailing shall be deemed adequate, whether mailed ordinary mail, certified mail or registered mail. Section 8.2. Covenants to Run with the Land. This Declaration shall run with the land and be a burden on and benefit to the lots within Lacy Park Subdivision. Section 8.3. Termination or Amendment of Declaration. This Declaration shall not be terminated or amended except upon the written agreement of owners representing a majority of the lots located within Lacy Park Subdivision, acknowledged in the same manner as a deed. Any such agreement shall be recorded in the records of the Clerk and Recorder of Garfield County, Colorado, and shall be effective only upon recordation. Notwithstanding the provisions hereof, this Declaration shall not be terminated or amended without the prior written consent of the Garfield County Board of County Commissioners. Further, so long as Declarant retains any ownership interest in any lot, this Declaration shall not be amended without prior written consent of the Declarant. 11 Section 8.4. Enforcement. The failure of any owner to comply with the provisions of this Declaration or with the Articles of Incorporation or Bylaws of the Association, shall give rise to a cause of action in the Association, as well as any aggrieved lot owner for the recovery of damages or injunctive relief, or both. The failure of the Association or any owner to enforce any such rights, shall in no event be deemed a waiver of the right to do so in the future. Section 8.5. Duration. This Declaration shall continue in effect until revoked or terminated in the manner provided above. Section 8.6. Severability. If any clause or provision of this Declaration is determined to be illegal, invalid or unenforceable under present or future laws, all other terms and provisions hereof shall nevertheless remain in full force and effect. IN WITNESS WHEREOF, this Declaration of Covenants, Conditions and Restrictions has been executed this day of , 1998. STATE OF COLORADO ) COUNTY OF GARFIELD ) ss. DECLARANT: LACY PARK, LLC, a limited liability company By: Johnson Construction, Inc. (Manager) By: President The foregoing instrument was acknowledged before me this day of , 1998, by DAVID M. JOHNSON, as President of Johnson Construction, Inc., the Manager of LACY PARK, LLC, a Colorado limited liability company. Witness my hand and official seal. My commission expires: 12 Notary Public