Loading...
HomeMy WebLinkAbout8.0 BOCC Staff Report 10.11.2010• • BOCC 10/11/10 FJ PROJECT INFORMATION AND STAFF COMMENTS REQUEST: Approval for Strong Subdivision Final Plat and Subdivision Improvements Agreement (SIA) APPLICANT/ OWNER: Leslie and George Strong REPRESENTATIVE: Compass Mountain Land Use, LLC & Karp.Nue.Hanlan, PC LOCATION: 0070 County Road 300 - 5 Miles west of Parachute located in the SW 1/4 Section 27, Township 7 South, Range 96 West of the P.M. PROPERTY SIZE: 17.5 acres ACCESS: CR 300 EXISTING ZONING: PUD I. BACKGROUND On December 8th, 2008, the Board of County Commissioners approved a Preliminary Plan for the Strong Subdivision. The Board subsequently granted a 1 -year extension to file a Final Plat. The Applicant tendered a Final Plat Application which has been under review. During this review, the Applicant has been working with Garfield County to determine their "fair share" for improvements required at the intersection of CR 300 and SH 6 & 24. This amount was recently (and finally) determined to be $72,077.00 based on traffic studies. The Board agreed to this amount in September, 2010 and the Applicant is prepared to tender a check in that amount to be delivered to the County and applied to the improvements at this intersection. Now that the "fair share" matter has been properly addressed to the satisfaction of the County, the Final Plat and Subdivision Improvements Agreement (SIA) may be signed by the Chairman and this project may be completed. (Note, paragraph 4 in the SIA outlines the obligations of the Applicant regarding the "fair share" contribution.) Also note, the SIA also contains certain improvements still yet to be constructed. In support of those pending improvements, the SIA contains an engineer's cost estimate and Letter of Credit in the amount of $75,323.00 to securitize those improvements by Alpine Bank. Upon final review, the LOC has an expiration date of August 10, 2011. This is unacceptable as it need to have a life of at least 6 months beyond the expiration of the SIA which will likely be October 11, 2011. 1 • • Therefore, the expiration date of the LOC needs to be April 11, 2011. Staff recommends the BOCC direct the Clerk and recorded to hold the documents and not record until a revised LOC is tendered with a new expiration date of April 11, 2012. II. ACTION REQUESTED OF BOCC Staff has reviewed the Final Plat, SIA, Declarations of Protective Covenants (CC&Rs), and the various associated easements, etc. associated with this Final Plat and found them to be in a form to be presented to the BOCC for signature. As stated in the cover letter dated October 5, 2010 from Karl Hanlan representing the Applicant, there are several documents that have been signed but not recorded prior to being presented to the BOCC. Mr. Hanlan believes these documents can be recorded once the project is approved and the recording will be done in a particular order with the County Clerk and Recorder and Planning Director there to ensure their proper recording. The documents presented that require the Chairman's signature & recording are: 1) Final Plat 2) SIA Additional Documents presented for recording include: 1) Statement of Authority from Una Development, LLC 2) CC&Rs (Protective Covenants) 3) Special Warranty Deed from George & Leslie Strong to Una Development 4) Special Warranty Deed from Una Development to Garfield County for "Bud's Way" 5) Bargain and Sale Deed for Strong Well and Public water System 6) Easement for Strong Well, Pump House, and 15' Well and Waterline 7) Utilities easement 8) Fire Suppression Facilities Easement 9) Drainage Facilities Easement 10) Quit Claim Deed for Bud's Way 2 DECLARATION OF PROTECTIVE COVENANTS FOR STRONG SUBDIVISION PLANNED UNIT DEVELOPMENT THIS DECLARATION is made this day of , 2010, UNA DEVELOPMENT, LLC, a Colorado limited liability company ("Initial Owner"), RECITALS A. Initial Owner owns all of the real property interests legally described on Exhibit A attached hereto and by this reference incorporated herein (the "Property"). Initial Owner wishes to develop the Property as a high quality, aesthetically pleasing and harmoniously designed Planned Unit Development (the "Development"). The law which generally governs developments similar to the Development is the Colorado Common Interest Ownership Act (Article 33.3 of Title 38 of Colorado Revised Statutes) as the same may be amended from time to time (the "Act"). Under the Act, the Development would be considered a "common interest community" (as such term is defined in the Act) of the type known as a "planned community" (as such term is defined in the Act) because portions of the Property are designated for separate ownership by individuals or entities and the remainder of the Property is designated for ownership by the "Association" (as such term is defined in Section 1.03 hereof). B. Under the provisions of Section 38-33.3-116 of the Act, a planned community including only "units" (as such term is defined in the Act) which are restricted to nonresidential use and which are not subject to any "development rights" (as such term is defined in the Act) is subject only to the provisions of Sections 38-33.3-105,38-33.3-106 and 38-33.3-107 of the Act unless the "declaration" (as such term is defined in the Act) provides that the entire Act is applicable. Section 4.01 herein provides that the units are restricted to nonresidential units. Pursuant to Section 1.06, Initial Owner reserves no development rights in this instrument. Initial Owner further declares that the entire Act shall not apply to this instrument or the Development, although specific provisions of the Act may be incorporated into this instrument by express reference so as to apply to the Development ARTICLE I DECLARATIONS 1.01: General Purposes. Initial Owner desires to ensure the proper use and appropriate development of the Development by means of mutually beneficial covenants, conditions and restrictions imposed on the Development for the benefit of Initial Owner and all future owners of any portion of the Development. 3 EXHIBIT Page 1 of 30 1.02: Declaration. To further the purposes expressed in Section 1.01 hereof, Initial Owner, for itself and its successors and assigns, hereby declares that the Property shall, at all times, be owned, held, used and occupied subject to the provisions of this instrument, to the covenants, conditions and restrictions contained herein and to all amendments and supplements hereto. 1.03: Name of the Development and Name of the Association. Initial Owner declares that the name of the Development is Strong Subdivision Planned Unit Development and that the name of the "unit owners association" (as such term is defined in the Act) organized to govern and administer the Development is Strong Lot Owners Association, Inc., a Colorado for-profit corporation (the "Association"). 1.04: Location and Type of Development. Initial Owner declares that all of the Development is situated in unincorporated Garfield County, Colorado and that the Development is a planned community for the reasons set forth in the Recitals. 1.05: No Declarant. Initial Owner is entering into this instrument in its capacity as owner of the Property and shall not be considered a "declarant" (as such term is defined in the Act). Accordingly, Initial Owner shall not have either the rights or obligations of a declarant under the Act except the obligation to deliver a copy of this instrument as recorded to the Assessor of Garfield County, Colorado as set forth in Section 38-33.3-105 of the Act. This instrument does create certain rights and obligations of Initial Owner with respect to the Development which are similar to rights and obligation of a declarant under the Act, but the rights and obligations of Initial Owner are governed by the "Declaration" (as such term is defined in Section 2.07 hereof) and not by the Act. 1.06: No Development Rights. Initial Owner does not reserve any development rights, including, but not limited to: (a) adding real estate to the Development; (b) creating additional units, or "common elements" or "limited common elements" (as such terms are defined in the Act) within the Development; (c) subdividing or converting units into common elements; or (d) withdrawing real estate from the Development. ARTICLE 2 In addition to the definitions set forth above or below, the following terms shall have the following meanings when used herein. DEFINITIONS 2.01: Articles shall mean the articles of incorporation of the Association as the same may be amended from time to time. 2.02: Board of Directors shall mean the governing body of the Association which is the "executive board" of the Association (as such term is defined and used in the Act). Page 2 of 30 2.03: Budget shall mean the plan for each fiscal year of the Association for the payment of current Common Expenses, for the reservation of funds for the payment of future Common Expenses and for obtaining the funds required for such payments to be adopted by the Association in accordance with the provisions of Section 8.01 hereof. 2.04: Bylaws shall mean the bylaws of the Association in effect from time to time. 2.05: Common Area shall mean the real property identified as rights-of-way on the Plat which is intended for ownership by the Association. 2.06: Common Expenses shall mean expenditures made or liabilities incurred by or on behalf of the Association in the performance of its duties under the Declaration, the Articles, the Bylaws or the Rules, whether or not the same may be expressly declared to be Common Expenses. 2.07: Declaration shall mean this instrument, the Plat, and all amendments and supplements to this instrument and the Plat hereafter recorded in the real property records of Garfield County, Colorado. 2.08: Easement shall mean the easement created pursuant to the provisions of Section 3.02 hereto. 2.09: First Lienor shall mean: (a) a Lienholder holding a Security Interest encumbering any portion of the Development which is recorded after the date of recording of this instrument and (b) a Lienholder holding a Security Interest encumbering a Lot which is recorded after the date of recording of this instrument and which has priority over all other Security interests encumbering such Lot, 2.10: Guest shall mean any individual who is present at the Property at the express or implied invitation of an Owner including, without limitation, friends, relatives, agents, contractors, employees, tenants or business invitees of an Owner. 2.11: Improvements shall mean all buildings, structures, fences walls, parking areas and landscaped areas located on a Lot, including all utility facilities and equipment located on that Lot which serve only that Lot and all other improvements which are constructed on that Lot. 2.12: Lienholder shall mean: (a) the holder of a Security Interest encumbering any portion of the Property which is recorded on the date of this instrument and (b) the holder of a Security Interest encumbering a Lot which is recorded after the date of this instrument without regard to the priority of such Security Interest with respect to all Security Interests encumbering the same Lot. A First Lienor is also a Lienholder. 2.13: Lot shall mean any plot of land designated as a Lot on the Plat and which is intended for separate ownership by an Owner. Each Lot is identified by the number of Page 3 of 30 such Lot shown on the Plat. An individual Lot may be referred to in the Declaration by such Lot's number as shown on the Plat. A Lot constitutes a unit as such term is used in the Act. 2.14: Owner shall mean any individual or any corporation, nonprofit corporation, partnership, limited partnership, limited liability company, limited partnership association, joint venture, trust, nonprofit association, cooperative or other legal entity capable of holding title to real property in Colorado that is the record owner of a fee simple interest in one or more Lots according to the real property records of Garfield County, Colorado. Initial Owner is the initial owner of all of the Lots. 2.15: Plat shall mean the Final Plat of the Strong Subdivision Planned Unit Development, recorded , 2010, at Reception Number: , of the real estate records of Garfield County, Colorado, and all amendments and supplements thereto, thereafter recorded in the real estate records of Garfield County, Colorado. 2.16: Rules shall mean the rules and regulations in effect from time to time as adopted by the Board of Directors in the manner set forth in the Declaration or pursuant to the Articles and Bylaws. 2.17: Security Interest shall mean an interest in real estate or personal property created by contract or conveyance securing payment or performance of an obligation which encumbers any portion of the Property and is recorded on the date of this instrument or which encumbers a Lot and is recorded after the date of this instrument. A Security Interest includes a lien created by a mortgage, deed of trust, trust deed, security deed, contract for deed, land sales contract, lease intended as security, assignment of lease or rents intended as security, pledge of an ownership interest in an association, and any other consensual lien or title retention contract intended as security for an obligation. 2.18: Sharing Ratio shall mean the "allocated interests" (as such term is defined in the Act) of each Lot which is equal to the fraction of one-sixth (1/6). The Sharing Ratio is utilized, among other things, to determine the fractional interest of the total liability for assessments for Common Expenses allocated to a Lot pursuant to Section 8.05 hereof. The formula utilized to determine the Sharing Ratio of each Lot is to allocate the total liability for Common Expenses and the total votes in the Association equally to each of the Lots numbered 2 through 5, inclusive, with the remaining interests allocated to Lot 1. ARTICLE 3 PROPERTY RIGHTS 3.01: Lots and Common Area. Page 4 of 30 (a) The Plat divides the Property into five (5) Lots and the Common Area. Initial Owner has not reserved the right to add additional Lots to the Development, so the maximum number of Lots which may be made subject to the Declaration is five (5). (b) Initial Owner shall convey the Common Area to the Association after the recording of this instrument but in any event prior to the conveyance of all Lots to Owners other than Initial Owner. Such conveyance of the Common Area shall be made by a special warranty deed free and clear of all encumbrances except those matters set forth on Exhibit B and by this reference incorporated herein. (c) All Owners shall have a right of access as members of the Association to and in the Common Area for the purposes for which the Common Area were designed, which right and easement shall be appurtenant to and shall pass with the title to the Lots. Such use by an Owner shall be in common with all other Owners without hindering, impeding or imposing upon the rights of the other Owners and in accordance with the provisions of the Declaration and the Rules. Any Owner may delegate such Owner's right to use, benefit from and enjoy the Common Area to such Owner's Guests; provided, however, that such Owner shall be responsible for damages caused by any such Guest and for the violation by any such Guest of the provisions of the Declaration, the Articles, the Bylaws or the Rules in connection with his or her usage of the Common Area. 3.02: Easement. Initial Owner hereby makes, establishes, declares, grants and reserves a blanket easement in favor of each Owner and any governmental, quasi -governmental or private entity providing utility services to any Lot, over, under, across, upon, and through the Common Area for installing, replacing, repairing, maintaining and providing all utility services to the Improvements located on a Lot, including, without limitation, water, gas, electric, storm sewer, sanitary sewer, cable television, satellite communications and telephone services. By virtue of this grant of easement, it shall be expressly permissible for the providing entity to erect and maintain the necessary facilities and equipment in the Development. Any entity providing such utility services shall be responsible for any damage caused by such entity to the Development while utilizing the Easement created by this Section 3.02 and for any costs incurred by the Association as a result of such damage and shall be further required to promptly repair or restore any portion of the Development disturbed or damaged by such entity's utilization of the Easement created by this Section 3.02. The Easement created by this Section 3-02 shall be appurtenant to each Lot so that a transfer of title to any interest in such Lot shall automatically transfer a proportionate interest in such Easement. 3.03: Title to Lots. Title to a Lot may be held individually or by any entity or in any form of concurrent ownership recognized in Colorado. In case of any such concurrent ownership, each co-owner shall be jointly and severally liable for performance and observance of all the duties and responsibilities of an Owner with respect to the Lot in which such Owner owns an interest. 3.04: Legal Description. Any contract of sale, deed, lease, deed of trust, mortgage, will or other instrument affecting a Lot shall legally describe it substantially as follows: Page 5 of 30 "Lot Strong Subdivision Planned Unit Development, according to the Plat for Strong Subdivision Planned Unit Development recorded , 2010, at Reception Number of the real estate records of Garfield County, Colorado and subject to the Declaration for Strong Subdivision P.U.D recorded , 2010 at Reception No. of the real estate records of Garfield County, Colorado." Every such description shall be good and sufficient for all purposes to sell, convey, transfer, encumber, lease or otherwise affect not only the Lot, but also the interest in the Easement made appurtenant to such Lot by the Declaration. The interest in the Easement made appurtenant to any Lot shall be deemed conveyed or encumbered with that Lot, even though the legal description in the instrument conveying or encumbering such Lot may only refer to that Lot. The reference to the Declaration in any instrument shall be deemed to include any supplements or amendments to the Declaration, without specific reference thereto. 3.05: Separate Assessment. Initial Owner shall give written notice to the Assessor of Garfield County, Colorado requesting that the Lots be separately assessed and taxed and that the total value of the Common Area be assessed and taxed proportionately with each Lot in accordance with such Lot's Sharing Ratio as provided in Section 38-33.3-105 of the Act. After this instrument has been recorded in the real estate records of Garfield County, Colorado, Initial Owner shall deliver a copy of this instrument as recorded to the Assessor of Garfield County. 3.06: Use Compliance. The use of the Lots shall comply with: (a) the terms, conditions and obligations set forth in the Declaration; (b) the matters set forth on the Plat; (c); and (d) all present and future laws, rules, requirements, orders, directions, ordinances and regulations (including zoning regulations) affecting the Lots of any governmental authority having jurisdiction over the Lots and of their departments, bureaus or officials. 3.07: No Partition of Lots. No Owner may assert any right of partition with respect to such Owner's Lot. By becoming an Owner, each Owner waives any and all rights of partition such Owner may hold with respect to such Owner's Lot. This Section 3.07 shall not, however, limit or restrict the right of the Owners of a Lot to bring a partition action pursuant to Article 28 of Title 38 of Colorado Revised Statutes requesting the sale of the Lot and the division or the proceeds among such Owners; provided that no physical division of the Lot shall be permitted as a part of such action and no such action shall affect any other Lot or the Common Area. 3.08: Encroachments. If any part of any Improvement intended to be constructed entirely on a particular Lot now or hereafter encroaches upon any portion of another Lot or the Common Area as a result of construction of such Improvement or as a result of the settling or shifting of such Improvement, a valid easement for the encroachment and for the maintenance of the same shall exist so long as such Improvement stands. In the event any Improvement shall be partially or totally destroyed as a result of fire or other casualty Page 6 of 30 or as a result of condemnation or eminent domain proceedings, and then rebuilt, encroachments of parts of such Improvement intended to be constructed entirely on a particular Lot upon any portion of another Lot or the Common Area due to such rebuilding, shall be permitted, and valid easements for such encroachments and the maintenance thereof shall exist so long as such Improvement shall stand. 3.09: No Mechanic's Liens. (a) If any Owner shall cause any material to be furnished to such Owner's Lot or any labor to be performed therein or thereon, no Owner of any other Lot shall under any circumstances be liable for the payment of any expense incurred or for the value of any work done or material furnished. All such work shall be at the expense of the Owner causing it to be done, and such Owner shall be solely responsible to contractors, laborers, materialman's and other persons furnishing labor or materials to such Owner's Lot. Nothing herein contained shall authorize any Owner or any person dealing through, with or under any Owner to charge the Common Area or any Lot other than that of such Owner with any mechanic's or materialman's lien or other lien or encumbrance whatever. On the contrary (and notice is hereby given) the right and power to charge any lien or encumbrance of any kind against the Common Area or against any Owner or any Owner's Lot for work done or materials furnished to any other Owner's Lot is hereby expressly denied. (b) If, because of any act or omission of any Owner, any mechanic's or materialman's lien or other lien or order for the payment of money shall be filed against the Common Area or against any other Owner's Lot or against any other Owner or the Association (whether or not such lien or order is valid or enforceable as such), the Owner whose or which act or omission forms the basis for such lien or order shall at such Owner's own cost and expense cause the same to be canceled and discharged of record or bonded in an amount and by a surety company reasonably acceptable to the party or parties affected by such lien or order within 20 days after the filing thereof, and further shall indemnify and save all such parties harmless from and against any and all costs, expenses, claims, Bosses or damages, including reasonable attorneys' fees resulting therefrom. 3.10: No Dedication. Nothing contained in the Declaration (which includes the Plat) shall be deemed a grant or dedication of any portion of the Development to the public or for public use unless such grant or dedication is expressly provided for in the Declaration. ARTICLE 4 RESTRICTIONS 4.01: Use Restrictions. (a) The use of all Lots shall be restricted to nonresidential uses and shall be governed by the Planned Unit Development Guide for Strong Subdivision which was recorded February 3, 2009, at Reception Number 762609 of the real estate records of Garfield County, Colorado, as the same may be amended from time to time. Without limiting the generality of the foregoing, the following uses shall be permitted, as Uses -By -Right on all Lots: (1) Business Offices associated with any categorized use; (2) Page 7 of 30 Contractor Yard; (3) Fabrication; (4) General Storage; (5) Storage of Heavy Equipment; (6) Storage of Oil and Gas Drilling Equipment and Supplies; (7) Communication Facility; (8) Solar Power Generating System; (9) Materials Lab and Testing; (11) Material Handling; with the following uses allowed by Special Review (12) Processing; (13) Warehouse and Distribution Center; and (14) Concrete and Asphalt Batch Plant(s). (b) An Owner shall have the right to lease such Owner's Lot upon such terms and conditions as such Owner may deem advisable; provided, however, that: (i) any such lease shall be in writing and shall provide that the lease is subject to the terms of this Declaration; (ii) a Lot may be leased only for the uses and occupancies described in this Section 4.01 hereof; and (iii) any failure of a lessee to comply with the terms of the Declaration, the Articles, the Bylaws, or the Rules shall constitute a default by such Owner under the applicable document(s). 4.02: Signs. (a) An Owner shall have the right to place no more than one monument sign per Lot and one wall sign per business on a building identifying the business within that building on such Owner's Lot. No signs of any kind or nature shall be placed on any portion of the Development by any Owner without the prior written approval of the Board of Directors of the design of any proposed sign in accordance with the provisions of Article 5 hereof, which approval may be granted or withheld by the Board of Directors based upon the standard that all signs must be compatible with the architecture of the Development. (b) Initial Owner shall be entitled to place a monument sign which identifies the Development on the Common Area at Initial Owner's expense, but such sign shall be maintained by the Association and the costs of maintenance of such sign shall be a Common Expense. The Association shall have the right to cause no trespassing signs, signs concerning traffic and parking regulations, signs which identify the Development or other signs concerning the administration and management of the Development to be placed 011 the Common Area and such signs shall be a Common Expense. 4.03: Fuel Storage. On lot fuel storage shall be limited to a single storage tank of up to one thousand (1,000) gallons per developable lot. Adequate spill containment structures shall be designed and constructed for any parcel on which fuel is stored. The containment structure shall be capable of holding 110 percent of the maximum volume of the fuel storage tank and shall comply with federal, state, and local regulations. Plans for fuel storage in excess of 1,000 gallons per developable lot shall be subject to review and approval by the Board of Directors. No fuel storage shall be permitted in the Common Area. 4.04: Trash. No trash shall be stored outside on a Lot unless it is placed in a covered trash container which is located within an enclosed service yard. No refuse may be dumped or buried underground on any Lot. No items of any kind shall be dumped on any portion of the Common Area. Page 8 of 30 4.05: Vehicles. No parking shall be permitted on any portion of the Common Area and no vehicles shall be parked on any portion of a Lot, except within a building located on the Lot or the area of the Lot designed for parking. No inoperable vehicles will be allowed to be stored, long-term, on any Lot. 4.06: Animals. No animals shall be raised, bred, kept or regularly brought to the Development except for dogs or other animals which are trained to and are in fact assisting persons with disabilities and except for dogs which may be brought to the Development by an Owner if the conditions set forth in this Section 4.06 concerning dogs are met. The keeping of livestock, poultry, goats and other farm animals shall not be allowed. If an Owner desires to bring a dog to the Development, such Owner may do so only if there are adequate facilities, such as a fenced yard, dog run or kennel, to contain the dog. All dogs must be in direct control of the person bringing the dog to the Development or kept within a fenced yard, dog run or kennel and no dogs will be allowed to run at large in the Development. No contractor or subcontractor shall be allowed to bring dogs to the Development during the course of construction of the Improvements on a Lot, with the exception of bird feeders, the feeding baiting, salting or other means of attracting wildlife is not permitted in the Development. 4.07: No Noxious Offensive Hazardous or Annoying Activities. No noxious or offensive activity shall be carried on upon any part of the Development nor shall anything be done or placed on any part of the Development which is or may become a nuisance or cause any unreasonable disturbance or annoyance to others. No activities shall be conducted on any part of the Development which are or might be unsafe or hazardous to any person or property. No glaring light, loud or annoying sound or vibration, smoke or unpleasant odor arising from the use of a Lot shall be permitted. 4.08: No Imperiling of Insurance. No Owner, no Owner's Guests, nor any lessee shall do anything or cause anything to be kept in or on the Development that might result in an increase in the premiums of insurance obtained by the Association or which might cause cancellation of such insurance, without the prior written consent of the Board of Directors first having been obtained. 4.09: No Violation of Law. No Owner, no Owner's Guests, nor any lessee shall do anything or keep anything in or on the Development which would be in violation of any statute, rule, ordinance, regulation, permit or other validly imposed requirement of any governmental body. 4.10: No Resubdivision. No Lot shall be resubdivided into smaller parcels or lots. 4.11: Mining and Drilling. No Lot shall be used for the purpose of mining, quarrying, drilling, boring or exploring for or removing oil, gas or other hydrocarbons, minerals, rocks, stones, gravel or earth; provided, however, that Initial Owner acknowledges that the mineral rights associated with the Development have been partially or wholly severed and are not fully intact or transferred with the surface rights. Thus, the potential exists Page 9 of 30 for the owner or mineral rights lessee of those rights to extract those resources after negotiating a surface use agreement with the Association and any impacted Lot Owners. 4.12: Solar Applications. The installation or use of either active or passive solar equipment shall not be prohibited or restricted solely on the basis of aesthetic considerations, unless such considerations are reasonable and do not significantly increase the cost of such installation or use. 4.13: Temporary Structures, Occupancy and Incomplete Structures. No temporary structures or office trailers shall be allowed on any Lot other than in connection with and during the period of construction, alteration or demolition of the Improvements on a Lot. No space or area of any improvement on a Lot shall be occupied in any manner prior to completion of construction and the issuance of a temporary or permanent certificate of occupancy by the appropriate governmental authority with respect to such space or area. No partially completed structure shall be allowed to remain on a Lot, except during the period of construction, alteration or demolition of such structure and providing that the completion of such construction, alteration or demolition is being pursued with reasonable diligence. 4.14: Variances. The Board of Directors shall be entitled to grant reasonable variances to the restrictions contained in this Article 4 in order to prevent undue hardship to any Owner or for any other good cause shown to exist by an Owner. Any such variance may be granted upon any such conditions as the Board of Directors shall determine. However, no variances shall be granted that would be inconsistent with the PUD Guide, as approved by Resolution No. 2009-09, unless the PUD guide is first amended by the Garfield County Board of Commissioners. 4.15: Weeds. Weeds shall not be allowed to thrive anywhere in the development. The Lot Owner's Association shall be authorized to ensure strict compliance with this section. Individual lot owners or their lessees shall be required to remove or eradicate weeds growing on its lot(s). The owners association shall be responsible for weed control and eradication on all common areas. 4.16: Drainage Easements. Drainage easements shall be under the control of the Lot Owner's Association. No lot owner or lessee shall obstruct any drainage area or improvement that would affect the proper functioning of the drainage easement or structure. 4.17: Storm Water Management Plans. Development of all lots are subject to State of Colorado regulations requiring the creation and submittal of a site-specific Storm Water Management Plan in the format prepared by Zao Engineering and on file with the Board of Directors whenever site disturbance will exceed one (1) acre. ARTICLE 5 ARCHITECTURAL CONTROL Page 10 of 30 5.01: Design Approval. Initial Owner shall not be required to obtain the approval of the Association for the design of any Improvements to be constructed on any Lot owned by Initial Owner, but such design shall conform to the Design Guidelines. Except for such construction by Initial Owner, no Improvements may be constructed on a lot and no modifications to the exterior of any Improvements already constructed on a lot (including without limitation an addition to the structure or the painting of a structure a different color than previously) may be undertaken without in each case obtaining the prior written approval of the Board of Directors of the design of the proposed construction or modification. The Board of Directors shall not be required to grant approval of the design of any construction or modification which would violate the use and occupancy restrictions of Section 4.01 hereof or any other restrictions contained in Article 4 hereof. In considering each request for design approval, the Board of Directors shall be guided by the Design Guidelines and shall attempt to assure that all Improvements within the Development are architecturally compatible and in a compatible color scheme while allowing reasonable and tasteful deviations from the architectural design and style of the Development. 5.02: Approval Procedures. Whenever any Owner requests design approval from the Board of Directors, the Board of Directors may request that such Owner provide the Board of Directors with such items as the Board may reasonably request in order to inform the Board of Directors about the matter requiring approval. The Board of Directors shall not be required to take any action with respect to a requested design approval unless and until the Board of Directors receives all items reasonably requested by the Board of Directors. Once all of such items have been furnished to the Board of Directors, the Board of Directors shall have 30 days to approve the request as submitted, to approve the request with such reasonable conditions as the Board of Directors may require or to reject the request and, if the Board of Directors does not so act within such 30 day period, the request shall be deemed approved as submitted. If the request is approved, the matter approved shall be undertaken by the Owner in accordance with the items submitted to the Board of Directors and any conditions placed upon such approval by the Board of Directors. 5.03: No Liability. The Board of Directors shall not be responsible nor liable for damages because of any failure to act, disapproval nor failure to approve or disapprove any request for design approval or because of any defects in any items submitted to the Board of Directors in connection with any request for design approval. Any Owner requesting design approval by the Board of Directors by so doing agrees and covenants not to bring any action or suit to recover damages against the Board of Directors, its members as individuals, or its advisors, employees or agents or the Association and its officers and members. 5.04: Design of Property. It is the specific intent of the Declarant to assure that all development and improvement of the Lots is accomplished within the bounds of this Declaration. The design standards set forth herein or as may be adopted hereafter shall be interpreted and applied to serve such intent. Page 11 of 30 5.05: Adoption of Standards. The Association may, but is not required to, promulgate, adopt, and amend design standards or guidelines consistent with these covenants and additional to those set forth below. A current copy of the adopted, written design standards or guidelines, if any, shall be furnished to each Lot Owner upon written request. 5.06: Obligations with Respect to Zoning and Subdivision. All improvements and uses of a Lot shall fully comply with all zoning, land use, and subdivision statutes and regulations and conditions applicable to such Lot. 5.07: Architectural Control. No Improvement on any Lot shall be commenced, erected or maintained, nor shall any exterior addition to or change or alteration therein be made until the plans and specifications showing the nature, kind, shape, height, materials, and location of the same shall have been submitted to in writing and approved as to harmony of external design and location in relation to surrounding structures and topography by the Board of Directors of the Board. 5.08: Enforcement. Any violation of these covenants for architectural and design review shall constitute a violation of this Declaration and all Association Documents, subject to enforcement by the Association. The Association is specifically authorized to impose appropriate fines, penalties or other sanctions against a Lot Owner for violation of the architectural and design review covenants, standards and guidelines, and any such monetary fine or penalty shall constitute a default assessment under Article 8 and may be collected as such. 5.09: Construction and Design Standards. (a) Construction Standards. Construction or alteration of any Improvement(s) shall meet the standards set forth in these covenants and shall promptly and diligently be completed. For the purposes of these covenants, when a construction material is specified herein, another material may be used in lieu thereof, provided such material is equivalent or superior to the specified material. (b) Finishes. All buildings shall have exterior walls of face brick, stone, metal, steel, concrete, marble, anodized aluminum, glass, stucco or equivalent permanently finished materials. (c) Landscaping. Any portion of a Lot upon which improvements are not constructed may be landscaped in accordance with available legal and physical water supply for the Lot. (d) Screening. All trash areas (and dumpsters) shall be maintained in permanently screened and fenced enclosures. Page 12 of 30 (e) Illuminations. Overnight security type lighting, and parking, truck service/receiving areas and outdoor storage areas will require fixtures that are of a sharp cut-off design which allow minimal light spill or glare onto adjacent property. (f) Utilities. All pipes, conduits, cables, or lines for water, gas, sewage, steam, electricity, telephone or any other energy or service serving any individual Lot from any main trunk line or easement shall be installed and maintained below ground, unless otherwise approved in writing by the Association. (g) Signs. All signs shall conform with the written sign standards contained within the PUD Guide. (h) Drainage Plan. Lot Owners shall not alter the grades established for drainage purposes. No fences, landscaping materials, or other obstructions shall be constructed in a manner that would prevent the flow of water or inhibit the function of the drainage plan as shown on the construction drawings submitted with the final plat approval. Drainage easements in the Development as shown on the Plat have been conveyed to the Association by easement deed. (i) Fencing. The use of barbed wire fencing is prohibited on the Property, including privately owned lots. ARTICLE 6 THE ASSOCIATION 6.01: Membership. (a) Initial Owner shall be a member of the Association for so long as Initial Owner is the Owner of any Lot. Each individual and each corporation, nonprofit corporation, partnership, limited partnership, limited liability company, limited partnership association, joint venture, trust, nonprofit association, cooperative or other legal entity capable of holding title to real property in Colorado shall automatically become a member of the Association upon becoming an Owner of a Lot. Membership shall be continuous throughout the period that such ownership continues and shall be appurtenant to and inseparable from ownership of a Lot. Membership shall terminate automatically without any Association action whenever any Initial Owner or any other Owner ceases to own any Lot. Termination of membership shall not relieve or release any former member from any liability or obligation incurred by virtue of or in any way connected with ownership of a lot or impair any rights or remedies which the Association or others may have against such former member arising out of or in any way connected with such ownership or membership. (b) The total number of votes in the Association shall be six (6). The votes are hereby allocated equally to Lots 2 through 5, inclusive, with Lot 1 being allocated 2 votes. If there is only one Owner of a lot, such Owner shall be entitled to cast the vote allocated to such lot at any meeting of the members. If there are multiple Owners of a lot and only Page 13 of 30 one of such multiple Owners is present at a meeting of the members, such Owner shall be entitled to cast the vote allocated to such lot. If there are multiple Owners of a lot and more than one of the multiple Owners of such lot are present at a meeting of the members, the vote allocated to such lot may be cast only in accordance with the agreement of a majority in interest of such Owners as such agreement may be reasonably evidenced to the person presiding over such meeting. It is reasonable evidence of the agreement of a majority in interest of multiple Owners of a lot if any one of such Owners casts the vote allocated to such lot without protest being made promptly to the person presiding over the meeting of the members by any of the other Owners of such lot. Each member which is a corporation, nonprofit corporation, partnership, limited partnership, limited liability company, limited partnership association, joint venture, trust, nonprofit association, cooperative or other legal entity capable of holding title to real property in Colorado shall from time to time designate in writing to the Association one or more individuals who may represent it at a meeting and vote on its behalf. Until the Association is notified in writing to the contrary, any action taken by any person(s) designated in writing to represent such member shall be binding upon such member. (c) The rights and obligations of members of the Association are further delineated in the Articles, the Bylaws and the Rules and each Owner is advised to obtain copies of the then current Articles, Bylaws and Rules upon becoming an Owner. (d) Each member shall comply strictly with the provisions of the Declaration, the Articles, the Bylaws and the Rules. The failure of a member to comply strictly with such provisions shall permit the Association to take the actions outlined in the Declaration, the Articles, the Bylaws and the Rules to enforce any such provisions. 6.02: Powers of the Association. (a) The Development shall be administered and managed by the Association pursuant to this Declaration, the Articles, the Bylaws and the Rules. The Association shall have all of the powers expressed in, or implied from, the provisions of Section 38-33.3-302(1) of the Act and the provisions of the Declaration, the Articles, the Bylaws or the Rules subject, however, to the following limitations; (i) except for the power to grant easements, licenses and concessions through or over the Common Area set forth in Section 38-33.3-302(1 )(i) of the Act, the Association shall not convey or encumber the Common Area unless all Owners and all First Lienors have given their approval thereof; ' (ii) no part of the net earnings of the Association shall inure to the benefit of any member of the Association. (b) Without limiting the generality of the foregoing, the Association shall have the power from time to time as it deems necessary and appropriate to adopt, amend and enforce the Rules in order to implement the provisions of the Declaration, including without limitation, Rules intended to promote the general health, safety and welfare of persons within the Development, to protect and preserve property and to regulate the use of the Common Area. Page 14 of 30 (c) All of the Rules adopted by the Association shall be reasonable and shall be uniformly applied. The Association may provide for enforcement of the Rules through reasonable and uniformly applied fines and penalties, which shall be collectable by the Association as a charge pursuant to the provisions of Article 8 hereof. Each Owner, and such Owner's Guest, shall be obligated to and shall comply with and abide by the Rules and pay such fines or penalties upon failure to comply with or abide by the Rules. The Association shall not be responsible to any Owner or Guest for the non -observance by any other Owner or Guest of the Rules. (d) The Association shall own the water system and all components thereof. At all times, the Association shall keep in full force and effect the West Divide Water Conservancy District Lease #070322SL(a), which shall be renewed annually, with costs allocated to the Subdivision Lot owners. (e) The Association shall at all times comply with fire protection requirements of the Grand Valley Fire Protection District, including, but not limited to, the installation of a 10,000 gallon water tank in the easement location shown on the Plat. 6.03: Board of Directors. The Board of Directors is hereby designated to act on behalf of the Association and shall be responsible for the control and management of the Association and the disposition of its funds and property; provided, however, that the Board of Directors may not act on behalf of the Association to: (a) amend the Declaration except in the instances set forth in the Declaration; (b) terminate the Development; or (c) elect directors or determine the qualifications, powers and duties, or terms of office of directors, but the Board of Directors may fill vacancies in the Board of Directors for the unexpired portion of any term. The number of directors, their terms of office and their qualifications shall be determined according to the laws. The members of the Association shall elect and may remove all directors. 6.04: Officers. The officers of the Association shall be a president, a secretary, a treasurer and such other officers as may from time to time be prescribed by the Bylaws. The terms of office of the officers of me Association and their qualifications shall also be determined according to the Bylaws. The Board of Directors shall elect and may remove the officers of the Association. ARTICLE 7 MAINTENANCE AND INSURANCE 7.01: Maintenance by Owners. Each Owner shall be responsible for maintaining in a clean, safe, attractive condition and in good order and repair all portions of such Owner's Lot and Improvements. In performing such maintenance, no Owner shall do any act or work which impairs or otherwise affects the Common Area. If, in the reasonable judgment of the Association, an Owner has failed to maintain such Owner's lot and Page 15 of 30 improvements in a clean, safe and attractive condition and in good order and repair, the Association may, after 10 day's notice to such Owner, perform all work deemed necessary by the Association to place such lot and Improvements in conformity with the foregoing standards and shall have access to such lot and Improvements for such purposes. The Association shall be reimbursed by the Owner who or which failed to adequately maintain such Owner's Lot and Improvements for all costs of the work performed by the Association pursuant to the authorization contained in the preceding sentence in the manner set forth in Section 8.04 hereof. 7.02: Maintenance by the Association. (a) The Association shall be responsible for maintaining all portions of the Common Area. The costs of such maintenance shall be a Common Expense. If, however, the need to perform such maintenance results from the negligence or intentional act of an Owner or such Owner's Guests, such Owner shall reimburse the Association for all costs of such maintenance in the manner set forth in Section 8.04 hereof. (b) The Association shall at all times maintain the Sediment Basin and shall remove accumulated sediments when they reach a level of 4,987.00 feet. (c) The Association shall at all times comply with requirements of the Colorado Department of Public Health and Environment in the operation and maintenance of the Subdivision public water supply. 7.03: Maintenance of Individual Sewage Disposal Systems (ISDS). If a Lot is developed with permanent buildings, at least one building on each lot shall contain a minimum of one (1) bathroom containing a toilet and sink. All sewage disposal therefrom shall be disposed of by means of an engineered individual sewage disposal system designed by a Colorado registered professional engineer. Each ISDS shall be constructed in a manner to facilitate ready access for servicing the system. The Association shall contract with an individual qualified and experienced in inspection and maintenance of ISDS to conduct inspections on an annual basis or such more frequent basis as the Association may deem necessary to determine each Lot's system maintenance requirements. The Association shall have the right to take any action necessary to enforce compliance with the operation and maintenance required for a properly functioning system. Any such action shall be at the individual Lot owner's expense. The basic management plan for the operation and maintenance of the ISDS is as follows: (a) Only wastewater from toilets, lavatories, showers and janitorial sinks used for restroom cleaning may be introduced into the individual sewage disposal systems. Other wastes, including grease, must be disposed of separately. Page 16 of 30 (b) Each septic tank should be inspected annually by the Lot Owner and pumped, if necessary, notwithstanding the Association's cleaning contract with a septic tank system cleaner. (c) The septic tank should be pumped by a professional septic tank system cleaner with proper disposal of waste materials. (d) Leach fields and septic tanks shall be located or isolated away from areas where vehicular traffic or other activities that could result in damage to the system components or compaction of soils will occur. (e) The individual sewage disposal systems shall be protected from excess water from roof drains, surface drainage, irrigation water, leaky faucets, or leaky toilets. Industrial and/or commercial wastewater discharges shall not be permitted through on- site wastewater disposal systems, including wastewater produced through manufacturing processes and vehicle washing activities. Only domestic wastewater shall be disposed of through the individual sewage disposal systems. At no time shall any hazardous or toxic materials used in or generated from a commercial or industrial activity or process be allowed to drain into an ISDS serving a facility. All such commercial or industrial waste shall be disposed of to an on-site, non -discharging system designed by a Registered Professional Engineer. Hazardous or toxic wastes collected in said non -discharging systems must be properly managed and disposed of in accordance with all applicable Federal, State and local laws and regulations. All non -discharging systems shall be included in the inspection schedule identified above. 7.03: Insurance. (a) The Association shall provide and keep in force the following insurance: (i) Property damage insurance on any improvements that may be constructed on the Common Area insuring against loss by fire, lightning and the risks covered by the "all risks" endorsement of the insurer (which risks shall include at least vandalism, malicious mischief and those risks covered by a standard broad form coverage endorsement) in an amount not less than the full replacement cost of the insured property (without deduction for depreciation but less applicable deductibles and exclusive of the costs of land, excavation, foundations, paving and other items normally excluded from property policies) in an agreed endorsement amount. Such insurance may be carried in blanket policy form naming the Association as the insured. Any loss covered by such insurance must be adjusted with the Association whether or not the insurance proceeds with respect to that loss are payable to the Association. Such insurance proceeds shall be payable to the Association unless the Association shall have previously designated in writing an insurance trustee for that purpose, but in no event shall such insurance proceeds be payable to any Lienholder. The Association or the insurance trustee receiving such insurance proceeds shall hold such insurance proceeds in trust for the Association, the Owners and the Lienholders as their interests may appear. Such insurance proceeds shall be disbursed in accordance with the provisions of Section 9.02 hereof and the Page 17 of 30 Association, the Owners and the Lienholders are not entitled to receive payment of any portion of such insurance proceeds unless there is a surplus of such insurance proceeds after such disbursements have been made. (ii) Commercial general liability insurance against claims and liability arising in connection with the ownership, existence, use, or management of the Common Area (including liability for death, personal injury and property damage) in the amount deemed sufficient by the Board of Directors insuring the Board of Directors, the Association, the managing agent (if any) and their respective employees, agents and all persons acting as agents, and the Owners (including Initial Owner). The policy of such insurance shall provide that it will also cover claims of one or more insured parties against other insured parties. (iii) Such other insurance in such amounts as the Association may consider necessary or advisable against such other insurable hazards as the Association may from time to time wish to insure against. (b) All insurance which is carried by the Association pursuant to the provisions of Section 7.03(a) hereof shall be issued by responsible insurance companies authorized to do business in the State of Colorado. Each policy of insurance described in Sections 7.03 (a)(i) and (ii) hereof shall contain the following provisions: (i) such policy shall not be materially modified or canceled without at least 30 days prior written notice to the Association and to each Owner and Lienholder whose or which address has been made known to the insurer; (ii) the insurer waives its rights of subrogation under such policy as to any claim against the Association, its officers, directors and employees, any Owner and members of such Owner's household and any Lienholder; (iii) each Owner is an insured person under such policy with respect to liability arising out of such Owner's membership in the Association; (iv) no act or omission by an Owner, unless acting within the scope of such Owner's authority on behalf of the Association, shall void such policy or operate as a condition to recovery under such policy; and (v) if, at the time of loss under such policy, there is other insurance in the name of an Owner covering the risk covered by such policy, the Association's policy shall provide primary insurance. If the insurance described in Sections 7.03 (a)(i) and (ii) hereof is not reasonably available, or if any policy of such insurance is canceled or not renewed without a replacement policy therefor having been obtained, the Association promptly shall cause notice of such fact to be hand delivered or sent prepaid by United States mail to all Owners and to all Lienholders whose or which address has been made known to the Association. (c) Each Owner shall be solely responsible for obtaining and maintaining any insurance covering loss or damage to any Improvements located on such Owner's lot and to any personal property on such Owner's lot and covering liability for injury, death or damage occurring on such Owner's lot. Any policy of such insurance shall contain waivers of subrogation as to any claim against the Association, its officers, directors and employees, any Owner and such Owner's Guests and any Lienholder and shall be so written that the liability of the insurers issuing insurance obtained by the Association shall not be affected or diminished thereby. Page 18 of 30 (d) The costs of obtaining and maintaining all insurance which is carried by the Association pursuant to the provisions of Section 7.03(a) hereof shall be a Common Expense to be prorated among all Owners as set forth in the Declaration, notwithstanding the fact that the Owners may have disproportionate risk. To the extent that the Association settles claims under the insurance described in Section 7.03 hereof for damages to real property, any Owner whose or which negligence caused such loss shall reimburse the Association for the amount of all deductibles paid by the Association with respect to such claims in the manner set forth in Section 8.04 hereof. ARTICLE 8 ASSESSMENTS AND CHARGES 8.01: Annual Assessments. (a) Until the Association establishes an annual assessment for Common Expenses for the initial fiscal year of the Association, Initial Owner shall pay all Common Expenses. The Association shall establish an annual assessment with respect to the initial fiscal year of the Association for the purpose of paying or creating a reserve for Common Expenses. The amount of the annual assessment for the initial fiscal year of the Association and for each fiscal year thereafter shall be based upon the Budget to be adopted by the Association. The Budget shall be based upon a good faith estimate of the Common Expenses to be paid or reserved for the fiscal year covered by the Budget including, without limitation, an estimate of the costs of the maintenance required to be performed by the Association pursuant to the provisions of Section 7.02 hereof during such fiscal year, an estimate of the costs of the insurance described in Section 7.03 hereof to be obtained by the Association during such fiscal year and an estimate of the amount of funds to be reserved during such year for the costs of the periodic refurbishing and replacement of those items which are to be maintained and repaired by the Association pursuant to the provisions of Section 7.02 hereof as such items wear out or become obsolete so that the costs of such periodic refurbishing or replacement may be paid through the annual assessments instead of special assessments. The annual assessment for each fiscal year shall be established only after a Budget is adopted in accordance with the provisions of Section 8.01(b) hereof. The Board of Directors may adjust the amount of an annual assessment during the fiscal year covered by such annual assessment from time to time as the Board of Directors may in its discretion deem necessary or advisable, but any such adjustment shall be based upon a revised Budget adopted by the Association in accordance with the provisions of Section 8.0 (b) hereof. (b) Beginning with the first fiscal year of the Association or in the event the Association desires to make an adjustment to an annual assessment previously established with respect to any such fiscal year, the Board of Directors shall adopt a proposed Budget to serve as the basis for the establishment of the annual assessment or the adjustment to the annual assessment (as the case may be). Within 30 days after the adoption of such proposed Budget, the Board of Directors shall mail, by ordinary first-class mail, or otherwise deliver a summary of such proposed Budget to all Owners and shall set a date Page 19 of 30 for a meeting of Owners to consider ratification of such proposed Budget not less than 14 nor more than 60 days after mailing or other delivery of the summary. Unless at that meeting Owners holding 80 percent or more of the total votes in the Association reject such proposed Budget, such proposed Budget shall be considered ratified, whether or not a quorum is present. In the event such proposed Budget is rejected, the Budget last adopted by the Association shall be continued until such time as the Owners ratify a subsequent Budget proposed by the Board of Directors and the proposed annual assessment or adjustment to the annual assessment shall be based upon such continued Budget. 8.02: Special Assessments. In addition to the annual assessments authorized in Section 8.01 hereof, the Association may establish at any time a special assessment for the purpose of paying or creating a reserve for, in whole or in part, the cost of any expense which the Association is entitled to incur pursuant to the provisions of this Declaration, the Articles or the Bylaws and which is not scheduled to be paid in a Budget adopted by the Association. No special assessment may be levied by the Association unless such special assessment has been approved by tile Board of Directors and by the majority vote of the Owners present in person or proxy at a meeting called for such purpose at which a quorum was present. 8.03: Payments of Assessments. All annual assessments shall be payable in equal monthly installments or, at the option of the Association, in equal quarterly installments. Each installment of the annual assessments shall be due on the first day of the period to which it relates in the amount specified in the most recent written notice from the Association until the Association notifies an Owner in writing of a different amount. At the option of the Association, special assessments may be payable in a lump sum or in quarterly or monthly installments. Each special assessment shall be due 10 days after the Association gives an Owner notice of the amount of such Owner's assessment The Association may charge and collect a late charge in the amount of $25 (or in such other amount as may be established by the Board of Directors in the Rules) for any annual or special assessment which is not paid when due. In addition, the Association may charge and collect interest at an annual rate of 21 percent on any annual or special assessment which is not paid within 30 days after the due date thereof, which interest shall run from such due date until the date of payment If the Association engages an attorney to collect any annual or special assessment not paid when due, the Owner responsible for the payment of such annual or special assessment shall reimburse the Association for all costs of collection of such annual or special assessment including, without limitation, reasonable attorneys' fees. 8.04: Charges. Each Owner shall be liable for all charges with respect to such Owner or such Owner's Lot as set forth in the Declaration which include, but are not limited to, the costs to be reimbursed to the Association by an Owner pursuant to the provisions of Sections 7.01, 7.02 and 7.03(d) hereof, fines and penalties for violations of the Rules as described in Section 6.02(b) hereof and the late charge described in Section 8.03 hereof. Any charge shall be payable within 10 days after notice of the amount of such charge is delivered to an Owner and, if not paid when due, shall thereafter bear interest at an Page 20 of 30 annual rate of 21 percent. If the Association engages an attorney to collect any such charge not paid when due, the Owner responsible for the payment of such charge shall reimburse the Association for all costs of collection of such charge including, without limitation, reasonable attorneys' fees. Any charge collected by the Association shall be used by the Association in furtherance of its duties hereunder or to defray Common Expenses. 8.05: Liability of Owners. The liability for annual and special assessments of the Common Expenses is hereby allocated equally to each lot so that the Owners of each lot are liable for a portion of the total amount of the annual and special assessments for the Common Expenses equal to such total amount multiplied by such Lots Sharing Ratio; provided, however, that the Association may allocate on a reasonable basis the liability for annual and special assessments for those Common Expenses which benefit some but not all of the lots to the Owners of each lot so benefited. The amount of any annual and special assessment and charges payable with respect to an Owner or such Owner's lot shall be a personal obligation of the Owner of such lot and such Owner's heirs, devisees, personal representatives, successors and assigns and, if there are multiple Owners of one lot, such obligation shall be a joint and several obligation of each Owner of such lot. Except as set forth in Section 8.06 hereof, a party acquiring fee simple title to a lot shall be jointly and severally liable with the former Owner of the lot for all such amounts which had accrued and were payable at the time of the acquisition of fee simple title to the lot by such party without prejudice to such party's right to recover any of such amounts paid by such party from the former Owner. No Owner shall be exempt from liability for payment of such Owner's share of the Common Expenses either by waiver of the use or enjoyment of the Common Area or Easement or by abandonment of such Owner's lot. 8.06: Liability of Lienholders. The transfer of title to a lot pursuant to a foreclosure of a Security Interest or pursuant to any procedure in lieu thereof shall extinguish the lien for annual and special assessments and charges against such lot described in Section 8.07 hereof as to payments which become due prior to such transfer but only to the extent such Security Interest has priority over the Association's lien as specified in Section 38-33.3- 316(2)(b) of the Act. A Lienholder shall not be personally liable for any assessment or charge payable by the Owner of the lot encumbered by the Security Interest held by such Lienholder, but the Association agrees to accept any payment of such assessment or charge made voluntarily on behalf of such Owner by such Lienholder. 8.07: The Association's Lien. The Association shall have, from the date of recording of this instrument, a lien against each lot to secure payment to the Association of all annual and special assessments with respect to such lot and all charges with respect to each Owner of such lot together with interest thereon at the annual rate of 21 percent from the due date thereof and together with all costs and expenses of collecting such assessments and charges including reasonable attorneys' fees. The Association's lien shall be prior and superior to all other liens and encumbrances on a lot except: (a) liens and encumbrances recorded prior to the recordation of this instrument; (b) the Security Interest of a First Lienor with respect to such lot except to the extent specified in Section 38-33.3-316(2)(b) Page 21 of 30 of the Act; (c) liens for real estate taxes and other governmental charges against such lot and (d) mechanic's and materialman's liens which by law may be prior to the Association's lien. The Association's lien shall attach from the date of recording of this instrument and shall be considered perfected without the necessity of recording a notice of default and claim of lien. Nevertheless, the Association may, as evidence of the Association's lien but not as a condition to enforcement of the Association's lien, record a notice of default and claim of lien executed by an officer or director of the Association and containing substantially the following information: (i) the legal description of the lot against which the lien is claimed; (ii) the name of the defaulting Owner(s) of such lot(s) indicated by the Association's records; (iii) the total unpaid amount together with interest thereon and the costs of collection as of the date of such notice; (iv) a statement that the notice of default and claim of lien is made by the Association pursuant to the Declaration; and (v) a statement that a lien is claimed and will be foreclosed against such lot in an amount equal to the amount stated as then due and any additional amounts thereafter becoming due. If the Association elects to file such notice of default and claim of lien, the Association shall send a copy of such notice of default and claim of lien to all Owners and all Lienholders whose or which name and address were made known to the Association of the lot against which such lien is claimed at their addresses last known to the Association within 10 days after the recording of such notice of default and claim of lien. The Association's lien may be foreclosed in the manner provided by Colorado for the foreclosure of mortgages encumbering real property. At its option, the Association may recover any amounts claimed to be due in a notice of default and claim of lien by an action for a money judgment. In any such foreclosure or action, the Owner(s) of the lot subject to such foreclosure or action shall be required to pay the costs and expenses of such proceedings, including reasonable attorneys' fees. The Association shall be entitled to purchase the lot at any foreclosure sale, and to acquire, hold, lease, mortgage or convey the same. In any such foreclosure or action, the Court may appoint a receiver to collect all sums alleged to be due from the Owner(s) prior to or during the pendency of such foreclosure or action. The Court may order the receiver so appointed to pay any sums held by such receiver to the Association during the pendency of such foreclosure or action to the extent of the unpaid annual and special assessments and charges. 8.08: Statement of Unpaid Assessments and Charges. The Association shall furnish to an Owner of a lot, a designee of such Owner, a Lienholder with respect to a lot or a designee of such Lienholder, upon receipt by the Association of a written request accompanied by the payment of a fee in the amount of $25 (or in such other amount as may be established by the Board of Directors in the Rules), a written statement setting forth the amount of the unpaid annual and special assessments and changes, if any, with respect to such lot. Such statement shall be furnished within 14 calendar days after receipt of such request and fee and is binding upon the Association, the Board of Directors and every Owner. If no statement is famished to the requesting party within such 14 calendar day period, then the Association shall have no right to assert a lien upon the lot for unpaid annual and special assessments and charges which were due as of the date of the request. 8.09: Surplus Funds. Upon the determination by the Board of Directors that surplus funds of the Association remain after payment or provision for Common Expenses and any Page 22 of 30 prepayment or provision for reserves, the Board of Directors may decide either to distribute such surplus funds to the Owners in accordance with the respective Sharing Ratios of their lots or to credit such surplus funds to the Owners in accordance with the respective Sharing Ratios of their lots against their respective liabilities for future Common Expenses. ARTICLE 9 SHARED WELL FACILITIES 9.01: Strong Well Facilities. (a) The Strong Well structure and related facilities, including the pump, pipelines, well equipment, and well permit, shall be owned by the Association. Each Owner's respective interest in the Strong Well shall be appurtenant to the benefited Lot, and such interests may not be conveyed separately from the respective Lots. The water rights for the well, as augmented, are owned by the Association for the benefit of all Owners. The Association holds all necessary easements for supplying water to all Lots in the development, and for the operation, maintenance, repair and replacement of the Strong Well, its pump, pipelines, and well equipment. (b) Each Owner shall be entitled to its proportionate share of the water produced from the Strong Well, subject to the terms and conditions of Well Permit #67484-F. No Owner shall use more that its proportionate share of the water physically available from the well. Well water shall be used only for those uses itemized in the Planned Unit Development Guide for the Development recorded at Reception Number 762609 in the records of the Garfield County Clerk and Recorder. (c) In the event the Strong Well should ever run dry or fail for any reason, the Owners may decide either to redrill the well or drill a new well. Should the individual Owners fail to reach agreement on the proper remedy, the Association shall determine the appropriate course of action, which decision shall be binding on the Owners. 9.02: Association and Lot Costs. All costs incurred for the operation, repair, maintenance and replacement of the Strong Well, together with its pump, common pipelines, and well equipment which are deemed to commonly benefit the Owners, shall be paid according to the following formula: Lot 1 Lots 2 through 5 1/3 of total costs 1/6 of total costs to each Lot Costs shared by the Association in shall include, but are not limited to, pump electric charges. Such charges shall be assessed as part of the Association's monthly dues to Owners in the proportions described above. Each Owner shall bear the cost of operation, repair, maintenance and replacement of pipelines or other components which are not used in common, but which are used solely to provide water service to that Owner's Lot. It is the intent of the parties that each Owner will be solely responsible for the operation, repair, maintenance and replacement of that part of the water delivery system which is solely used to provide water service from the well to that Owner's Lot. Page 23 of 30 9.03: Maintenance Authorization. In the event that any Owner determines that repair, maintenance, improvements, or replacements are necessary for the well structure, pipelines or appurtenant common facilities, such Owner shall so notify the other Owners in writing. The Owners agree to cooperate for the purpose of entering into mutual agreements for completion and payment of such repairs, maintenance, improvement or replacement costs. Should the parties fail to reach mutual agreement on payment or shared costs and expenses, the Association shall be authorized to hear and settle such a dispute after review of all facts, which decision shall be binding on all Owners. Any Owner shall be entitled to make any and all reasonable improvements in an emergency which are essential for the proper functioning of the well, pump, pipeline or appurtenant facilities and to seek reimbursement from the other Owners. 9.04. No Waste. No Owner may waste water, and each Owner shall exercise prudence and conservation in water use to allow for efficient and beneficial operation of the well and to avoid burdening the aquifer and well pump unnecessarily. 9.05. Future Regulation. In the event that any quasi -government, government or judicial authority imposes future requirements or restrictions on the use of the Strong Well, the Association shall inform the Owners of their duty to comply with such requirements to ensure a continuing water supply for each Lot. ARTICLE 10 DAMAGE OR DESTRUCTION 10.01: Requirement of Repair and Restoration. In the event of any damage or destruction to any portion of the improvements located on the Common Area for which insurance is required to be maintained by the Association under the provisions of Section 7.03(a)(i) hereof, the Association shall cause such damaged or destroyed portion of the Development to be fully repaired or restored promptly after the occurrence of such damage or destruction unless such repair or restoration would be illegal under any state or local statute or ordinance governing health or safety. 10.02: Insurance Proceeds. The insurance proceeds paid to the Association as a result of the damage or destruction of any portion of the improvements located on the Common Area shall be disbursed by the Association first to the expenses of the repair or restoration of the damaged or destroyed portion of such improvements and the remainder shall be disbursed to the Owner of each lot or the Lienholder with respect to such lot, as their interests may appear, in accordance with the Sharing Ratio of such lot. If the costs of the repair or restoration of the damaged or destroyed portion of the improvements located on the Common Area required by Section 10.01 hereof are in excess of the insurance proceeds paid to the Association as a result of such damage or destruction, the Page 24 of 30 excess amount shall be a Common Expense payable by the Owners in accordance with the respective Sharing Ratios of their lots. 10.03: Notice to Lienholders. Promptly after the occurrence of any fire or other casualty which causes damage or destruction of any portion of the improvements located on the Common Area for which insurance is required to be maintained by the Association under the provisions of Section 7.03 hereof and which the Association estimates will cost $10,000.00 or more to repair, the Association shall deliver written notice thereof to all Lienholders whose or which address has been made known to the Association. The delivery of such written notice shall not be construed as imposing any liability whatever on any Lienholder to pay all or any part of the costs of repair or restoration. ARTICLE 11 CONDEMNATION If all or any portion of the Common Area is taken under any statute, by right of eminent domain, or by purchase in lieu thereof, then the Association (as attorney-in-fact for the Owners) shall collect the award made in such taking, shall promptly cause the portion of the Common Area not so taken to be restored. The costs of such restoration in excess of the amount of the award for such taking shall be a Common Expense payable by the Owners in accordance with the respective Sharing Ratio of their lots. The amount of the award paid to the Association as a result of any such taking which is not used for such restoration shall be disbursed by the Association to the Owner of each lot or the Lienholder with respect to such lot, as their interests may appear, in accordance with the Sharing Ratio of such lot. ARTICLE 12 MISCELLANEOUS PROVISIONS 12.01: Enforcement and Remedies. The provisions of the Declaration which create certain rights in Initial Owner shall be enforceable by Initial Owner and the other provisions of the Declaration shall be enforceable by the Association. In enforcing the Declaration, the Association shall be entitled to utilize any of the remedies set forth in Article 8 hereof and both Initial Owner and the Association and any other party entitled to enforce the Declaration shall be entitled to any remedy at law or in equity including without limitations, an action seeking a prohibitive or mandatory injunction or damages or both. In any action for the enforcement of the Declaration, the party or parties against which or whom enforcement is sought shall pay the reasonable attorney's fees and costs, including the reasonable attorney's fees for any appeal, incurred by the party enforcing the Declaration in the amount determined by the Court if the party enforcing the Declaration is the prevailing party in such action. The issuance of a building permit or certificate of occupancy which may be in contravention of the Declaration shall no Page 25 of 30 prevent enforcement of the Declaration. All cost incurred by the Association in the enforcement of the Declaration shall be a Common Expense. 12.02: Duration. The Declaration shall continue and remain in full force and effect in perpetuity, as the same may be amended from time to time in accordance with the provisions of Section 11.03 hereof, unless the Declaration is sooner terminated by an amendment made in accordance with the provisions of Section 12.03 hereof. 12.03: Amendment. The provisions of the Declaration which create certain rights in Initial Owner may be amended only with the prior written consent of Initial Owner. Any amendment to the Declaration which proposes to terminate the Declaration or which proposes to amend the provisions of the Declaration pertaining to the Sharing Ratio of each lot, the allocation of the liability for Common Expenses and voting rights to each lot and the rights of Lienholders under the Declaration must be signed by all Owners and consented to in writing by all of the Lienholders whose or which name and address have been made known to the Association. The Association shall be entitled to amend the Declaration in those circumstances set forth in Section 38-33.3-107of the Act Except for the foregoing amendments, the provisions of this Declaration may be amended only by the recording of a written instrument or instruments specifying the amendment signed by the Owners who or which are entitled to vote at least 80 percent of the total votes in the Association. No amendment to the PUD zoning guidelines approved by Garfield County Board of County Commissioners Resolution No. 2009-08 and recorded as Reception No. 762609 in the Office of the Garfield County Clerk and Recorder, or the Preliminary Plan approved by Garfield County Board of County Commissioners Resolution No. 2009-09 and recorded as Reception No. 762610 in the Office of the Garfield County Clerk and Recorder shall be effective without Board of County Commissioners approval... 12.04: Covenants Running with the Land. Each provision of the Declaration, and any agreement, promise, covenant and undertaking to comply with each provision of the Declaration shall be deemed a covenant running with the land as a burden with and upon the title to each lot of real property within the Development for the benefit of any other real property within the Development. 12.05: Limited Liability. A director or an officer of the Association shall not be liable for actions taken or omissions made in the performance of his or her duties except for wanton and willful acts or omissions. The liability of directors and officers shall be further limited by the provisions of Parts 4 and 5 of Article 128 of Title 7 of Colorado Revised Statutes and the provisions of the Articles and the Bylaws. Neither Initial Owner nor any member, manager, agent or employee of Initial Owner shall be liable to any party for any action or for any failure to act with respect to any matter arising in connection with the Declaration if the action taken or failure to act was in good faith and without malice. 12.06: Successors and Assigns. Except as otherwise provided herein, the Declaration shall be binding upon and shall inure to the benefit of Initial Owner and each subsequent Owner and their respective heirs, devisees, personal representatives, successors and Page 26 of 30 assigns. Initial Owner and each subsequent Owner shall be fully discharged and relieved of liability with respect to the obligations of such party under the Declaration upon ceasing to own an interest in a lot and upon the payment of all sums and the performance of all other obligations of such party under the Declaration up to the time such party ceased to own an interest in a lot. 12.07: Successors to Initial Owner. The following shall be successors to Initial Owner: (a) any party to whom or which Initial Owner conveys all lots then owned by Initial Owner and assigns all rights of Initial Owner under the Declaration and who or which assumes all of Initial Owner's obligations under the Declaration; and (b) any Lienholder who or which obtains title to all lots owned by Initial Owner through foreclosure of the Security Interest held by such Lienholder or through any proceeding in lieu of such foreclosure and who or which assumes all of Initial Owner's obligations under the Declaration. 12.08: Notices to Owners and Association. Each Owner shall register such Owner's mailing address with the Association, and except for statements for the assessments, notices of Association meetings, other routine notices and notices which may be sent in another manner in accordance with the provisions of the Declaration, all notices or demands intended to be served upon an Owner shall be sent by either registered or certified mail, postage prepaid, addressed in the name of the Owner at such registered mailing address. If an Owner fails to register such Owner's mailing address with the Association, such Owner's mailing address shall be deemed to be the address of such Owner's lot. All notices, demands or other notices intended to be served upon the Association shall be sent certified mail, postage prepaid, to the address of the Association as designated in the Bylaws. 12.09: Severability. Invalidity or unenforceability of any provision of the Declaration in whole or in part shall not affect the validity or enforceability of any other provision or any valid and enforceable part of a provision of the Declaration. 12.10: Captions. The captions and headings in the Declaration are for convenience only and shall not be considered in construing any provisions of this Declaration. 12.11: Construction. When necessary for proper construction, the masculine of any word used in the Declaration shall include the feminine or neutered gender, and the singular the plural and vice versa. 12.12: Governing Law. The Declaration shall be governed by and construed under Colorado law. IN WITNESS WHEREOF, the parties have executed this Declaration on the day and year set forth next to their signatures. Page 27 of 30 UNA DEVELOPMENT, LLC By: Date STATE OF COLORADO ) ) ss. COUNTY OF GARFIELD ) Acknowledged and sworn before me this day of 2010, by , Manager of Una Development, LLC. WITNESS my hand and official seal. My commission expires: {SEAL} Notary Pubic Page 28 of 30 EXHIBIT A Attached to and forming a part of the Declaration for Strong Subdivision and Planned Unit Development. LEGAL DESCRIPTION OF THE PROPERTY Lots 1 through 5, inclusive, of the Strong Subdivision and Planned Unit Development, according to the plat for Strong Subdivision and Planned Unit Development recorded , 2010, at Reception # of the real estate records of Garfield County, CO. Page 29 of 30 EXHIBIT B Attached to and forming a part of the Declaration for Strong Subdivision and Planned Unit Development. MATTERS TO WHICH TITLE TO THE COMMON AREA MAY BE SUBJECT 1] Real property taxes and assessments for the year of conveyance, due and payable the subsequent year. 2] All matters set forth on the Final Plat of the Strong Subdivision and Planned Unit Development, recorded , 2010, at Reception Number of the real estate records of Garfield County, CO, and all amendments and supplements thereto thereafter recorded in the real estate records of Garfield County, CO 3] The provisions of the Planned Unit Development Guide for Strong Subdivision and PUD, which was recorded February 3, 2009, at Reception Number 762609 of the real estate records of Garfield County, CO. Page 30 of 30 STATEMENT OF AUTHORITY 1) This Statement of Authority relates to an entity named Una Development, LLC and is executed on behalf of the entity pursuant to the provisions of Section 38-30-172 C.R.S. 2) The type of entity is: limited liability company. 3) The mailing address for the entity is: 0195 Panoramic Drive, P.O, Box 809, Silt, CO 81652. 4) The entity is formed under the laws of Colorado. 5) The name of the person(s) authorized to execute instruments conveying, encumbering or otherwise affecting title to real property on behalf of the entity is: George Strong, Manager. 6) The authority of the foregoing person(s) to bind the entity is x not limited or limited as follows: 7) Other matters concerning the manner in which the entity deals with interests in real property: STATE OF COLORADO ) ss. COUNTY OF GARFIELD By UNA DEVELOPMENT, LLC George Strong, Manager Acknowledged before me this day of , 2010, by George Strong, as Manager of Una Development, LLC, a Colorado limited liability company. WITNESS my hand and official seal. My Commission expires: [SEAL] Notary Public EXHIBIT BARGAIN AND SALE DEED THIS BARGAIN AND SALE DEED made this day of , 2010, by and between UNA DEVELOPMENT, LLC, a Colorado corporation, whose address is 0195 Panoramic Drive, P.O, Box 809, Silt, CO 81652 (hereinafter "Grantor"), and STRONG LOT OWNERS ASSOCIATION, INC., a Colorado nonprofit corporation, whose address is 0070 County Road 300, P.O. Box 809, Silt, CO 81652 (hereinafter "Grantee"). WITNESSETH: That the Grantor, for and in consideration of Ten Dollars and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, hereby sells and conveys unto the Grantee, its successors and assigns, forever, all the right, title, interest, claim and demand which the Grantor has in and to the following described water right and well facilities, together with improvements, situate, lying and being in the County of Garfield, State of Colorado, described as follows: Water system including well, pump, service lines, tanks, meters, and pumphouse serving Strong Subdivision and P.U.D., as described on Exhibit A attached hereto and incorporated herein by this reference. Fire protection system facilities including water storage tanks, distribution lines, and hydrants. TO HAVE AND TO HOLD the same, together with all and singular the appurtenances and privileges thereunto belonging or in anywise thereunto appertaining, and all the estate, right, title, interest and claim whatsoever, of the Grantor, either in law or equity, to the only proper use, benefit and behoof of the Grantee, its successors and assigns forever. IN WITNESS WHEREOF, the Grantor has executed this deed on the date set forth above. By: STATE OF COLORADO ) ) ss. COUNTY OF GARFIELD ) UNA DEVELOPMENT, LLC A Colorado limited liability company George Strong, Manager Acknowledged before me this day of , 2010, by George Strong, as Manager of Una Development, LLC, a Colorado limited liability company. WITNESS my hand and official seal. My Commission expires: [SEAL] Notary Public D a EXHIBIT EASEMENT DEED THIS EASEMENT DEED made this day of , 2010, by and between UNA DEVELOPMENT, LLC, a Colorado limited liability company, whose address is 0195 Panoramic Drive, P.O, Box 809, Silt, CO 81652 (hereinafter "Grantor"), and STRONG LOT OWNERS ASSOCIATION, INC., a Colorado nonprofit corporation, whose address is 0070 County Road 300, P.O. Box 809, Silt, CO 81652 (hereinafter "Grantee"). WITNESSETH: That the Grantor, for and in consideration of Ten Dollars and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, has remised, released, sold, conveyed and quit claimed, and by these presents does remise, release, sell, convey and quit claim unto the Grantee, its successors and assigns, forever, all the right, title, interest, claim and demand which the Grantor has in and to the real property, together with improvements, if any, situate, lying and being in the County of Garfield, State of Colorado, described as follows: One hundred foot (100') radius shared well easement and fifteen foot (15') wide well and waterline easement over, under, and across Lots 2 and 3, Strong Subdivision and P.U.D., as described on Exhibit A attached hereto and incorporated herein by this reference. TO HAVE AND TO HOLD the same, together with all and singular the appurtenances and privileges thereunto belonging or in anywise thereunto appertaining, and all the estate, right, title, interest and claim whatsoever, of the Grantor, either in law or equity, to the only proper use, benefit and behoof of the Grantee, its successors and assigns forever. IN WITNESS WHEREOF, the Grantor has executed this deed on the date set forth above. STATE OF COLORADO ) ss. COUNTY OF GARFIELD By: UNA DEVELOPMENT, LLC A Colorado limited liability company George Strong, Manager Acknowledged before me this day of , 2010, by George Strong, as Manager of Una Development, LLC, a Colorado limited liability company. WITNESS my hand and official seal. My Commission expires: [SEAL] Notary Public EXHII3IT �7 EASEMENT DEED THIS EASEMENT DEED made this day of , 2010, by and between UNA DEVELOPMENT, LLC, a Colorado corporation, whose address is 0195 Panoramic Drive, P.O, Box 809, Silt, CO 81652 (hereinafter "Grantor"), and STRONG LOT OWNERS ASSOCIATION, INC., a Colorado nonprofit corporation, whose address is 0070 County Road 300, P.O. Box 809, Silt, CO 81652 (hereinafter "Grantee"). WITNESSETH: That the Grantor, for and in consideration of Ten Dollars and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, has remised, released, sold, conveyed and quit claimed, and by these presents does remise, release, sell, convey and quit claim unto the Grantee, its successors and assigns, forever, all the right, title, interest, claim and demand which the Grantor has in and to the real property, together with improvements, if any, situate, lying and being in the County of Garfield, State of Colorado, described as follows: All utility easements over, under, and across Strong Subdivision and P.U.D., as described on Exhibit A attached hereto and incorporated herein by this reference. TO HAVE AND TO HOLD the same, together with all and singular the appurtenances and privileges thereunto belonging or in anywise thereunto appertaining, and all the estate, right, title, interest and claim whatsoever, of the Grantor, either in law or equity, to the only proper use, benefit and behoof of the Grantee, its successors and assigns forever. IN WITNESS WHEREOF, the Grantor has executed this deed on the date set forth above. By: STATE OF COLORADO ) ) ss. COUNTY OF GARFIELD ) UNA DEVELOPMENT, LLC A Colorado limited liability company George Strong, Manager Acknowledged before me this day of , 2010, by George Strong, as Manager of Una Development, LLC, a Colorado limited liability company. WITNESS my hand and official seal. My Commission expires: [SEAL] Notary Public EXHIBIT EASEMENT DEED THIS EASEMENT DEED made this day of , 2010, by and between UNA DEVELOPMENT, LLC, a Colorado corporation, whose address is 0195 Panoramic Drive, P.O, Box 809, Silt, CO 81652 (hereinafter "Grantor"), and STRONG LOT OWNERS ASSOCIATION, INC., a Colorado nonprofit corporation, whose address is 0070 County Road 300, P.O. Box 809, Silt, CO 81652 (hereinafter "Grantee"). WITNESSETH: That the Grantor, for and in consideration of Ten Dollars and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, has remised, released, sold, conveyed and quit claimed, and by these presents does remise, release, sell, convey and quit claim unto the Grantee, its successors and assigns, forever, all the right, title, interest, claim and demand which the Grantor has in and to the real property, together with improvements, if any, situate, lying and being in the County of Garfield, State of Colorado, described as follows: Fire suppression tank easement and access easement over, under, and across Strong Subdivision and P.U.D., as described on Exhibit A attached hereto and incorporated herein by this reference. TO HAVE AND TO HOLD the same, together with all and singular the appurtenances and privileges thereunto belonging or in anywise thereunto appertaining, and all the estate, right, title, interest and claim whatsoever, of the Grantor, either in law or equity, to the only proper use, benefit and behoof of the Grantee, its successors and assigns forever. IN WITNESS WHEREOF, the Grantor has executed this deed on the date set forth above. STATE OF COLORADO ) ss. COUNTY OF GARFIELD By: UNA DEVELOPMENT, LLC A Colorado limited liability company George Strong, Manager Acknowledged before me this day of , 2010, by George Strong, as Manager of Una Development, LLC, a Colorado limited liability company. WITNESS my hand and official seal. My Commission expires: [ SEAL] Notary Public EXHIBIT EASEMENT DEED THIS EASEMENT DEED made this day of , 2010, by and between UNA DEVELOPMENT, LLC, a Colorado corporation, whose address is 0195 Panoramic Drive, P.O, Box 809, Silt, CO 81652 (hereinafter "Grantor"), and STRONG LOT OWNERS ASSOCIATION, INC., a Colorado nonprofit corporation, whose address is 0070 County Road 300, P.O. Box 809, Silt, CO 81652 (hereinafter "Grantee"). WITNESSETH: That the Grantor, for and in consideration of Ten Dollars and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, has remised, released, sold, conveyed and quit claimed, and by these presents does remise, release, sell, convey and quit claim unto the Grantee, its successors and assigns, forever, all the right, title, interest, claim and demand which the Grantor has in and to the real property, together with improvements, if any, situate, lying and being in the County of Garfield, State of Colorado, described as follows: Drainage and sediment pond access easement varying in width from five feet (5') to sixty feet (60') over, under, and across portions of Lots 1, 2, and 3, Strong Subdivision and P.U.D., as described on Exhibit A attached hereto and incorporated herein by this reference, for the benefit of Grantee and individual lot owners in the Strong Subdivision. TO HAVE AND TO HOLD the same, together with all and singular the appurtenances and privileges thereunto belonging or in anywise thereunto appertaining, and all the estate, right, title, interest and claim whatsoever, of the Grantor, either in law or equity, to the only proper use, benefit and behoof of the Grantee, its successors and assigns forever. IN WITNESS WHEREOF, the Grantor has executed this deed on the date set forth above. By: STATE OF COLORADO ) ss. COUNTY OF GARFIELD ) UNA DEVELOPMENT, LLC A Colorado limited liability company George Strong, Manager Acknowledged before me this day of , 2010, by George Strong, as Manager of Una Development, LLC, a Colorado limited liability company. WITNESS my hand and official seal. My Commission expires: [SEAL] Notary Public b a D 5 EXHIBIT STRONG SUBDIVISION IMPROVEMENTS AGREEMENT THIS STRONG SUBDIVISION IMPROVEMENTS AGREEMENT ("SIA") is made and entered into this day of , 2010, by and between UNA DEVELOPMENT, LLC ("Owner") and the BOARD OF COUNTY COMMISSIONERS OF GARFIELD COUNTY, COLORADO, acting for the County of Garfield, State of Colorado, as a body politic and corporate, directly or through its authorized representatives and agents ("BOCC"). RECITALS 1. Owner is the owner and developer of the Strong Subdivision (the "Subdivision"), which property is depicted on the Final Plat of Strong Subdivision ("Final Plat" or "Final Plat of the Subdivision"). The real property subject to this SIA is described in that Final Plat recorded at Reception Number of the real estate records of Garfield County, Colorado and incorporated by this reference. 2. On December 8, 2008, the BOCC, by Resolution No. 2009-08, recorded at Reception Number 762609 of the real estate records of Garfield County, Colorado and incorporated by this reference, approved a Planned Unit Development Rezoning Application for the Strong Subdivision Planned Unit Development ("PUD Approval"). 3. On December 8, 2008, the BOCC, by Resolution No. 2009-09, recorded at Reception Number 762610 of the real estate records of Garfield County, Colorado and incorporated by this reference, approved a preliminary plan for the Subdivision which, among other things, would create five commercial lots ("Preliminary Plan Approval"). 4. As a condition precedent to the approval of the Final Plat submitted to the BOCC as required by the laws of the State of Colorado and by the Garfield County Unified Land Use Resolution of 2008, Owner wishes to enter into this SIA with the BOCC. 5. Owner has agreed to execute and deliver a letter of credit or other security in a form satisfactory to the BOCC to secure and guarantee Owner's performance under this Agreement and under the Preliminary Plan Approval and has agreed to certain restrictions and conditions regarding the sale of properties and issuance of building permits and certificates of occupancy within the subdivision, all as more fully set forth below; and 6. Owner represents that at the time of recording this SIA all taxes and assessments upon all parcels of real estate described in this SIA are paid in full. NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and promises contained herein, the BOCC and Owner ("Parties") agree as follows: 1 EXHIBIT d D • • AGREEMENT 1. FINAL PLAT APPROVAL. The BOCC hereby accepts and approves the Final Plat of the Subdivision, on the date set forth above, subject to the terms and conditions of this SIA, the Preliminary Plan Approval, the PUD Approval, and the requirements of the Garfield County Unified Land Use Resolution of 2008 and any other governmental or quasi -governmental regulations applicable to the Subdivision ("Final Plat Approval"). Recording of the Final Plat in the records of the Garfield County Clerk and Recorder shall be in accordance with this SIA and at the time prescribed herein. 2. OWNER'S PERFORMANCE. a. Completion Date/Substantial Compliance Owner has constructed and installed certain and shall cause to be constructed and installed other subdivision improvements identified in Exhibit A attached hereto ("Subdivision Improvements") at Owner's expense, including payment of fees required by Garfield County and/or other governmental and quasi -governmental entities with regulatory jurisdiction over the Subdivision. The remaining uncompleted Subdivision Improvements shall be completed on or before the end of the first full year following execution of this SIA ("Completion Date"), in substantial compliance with the following: All plat documents submitted prior to or at the time of Final Plat approval, as well as all terms and conditions set forth on the Final Plat for Strong Subdivision, all of which are incorporated herein by this reference; ii. All requirements of the Preliminary Plan Approval, including all Zone District Regulations approved by Garfield County for the Strong Subdivision PUD in the PUD Approval, and all Garfield County zoning and subdivision regulations applicable to this project; iii. All laws, regulations, orders and resolutions of the State of Colorado Garfield, and all special districts within which the Strong Subdivision PUD may be located; iv. All designs, specifications, drawings, maps, sketches, and other materials submitted by Owner and its engineers in furtherance of the application for the approval of Strong Subdivision PUD, as heretofore approved by the County. v. All Subdivision Improvements shown on the Strong Subdivision PUD Construction Drawings prepared by ZAO Engineers dated , under File No. 00000000 and submitted to Garfield 2 County on or about ("Final Plat Plans") and Colorado River Engineering dated , under File No. 00000000 and submitted to Garfield County on or about ("Final Plat Plans"). All Subdivision Improvements are shown on the Engineers Estimate attached to and made part of this Agreement by reference as Exhibit A, including but not limited to: (A). Potable and raw water supply and distribution systems for Strong Subdivision PUD; (B) Internal road Bud's Way as described in the construction drawings; (C) Drainage features; (D) Individual sewer disposal systems and storm water management systems; and (E) Utility structures, including electric, telephone, cable television and gas lines. vi. Payment of all fees required by the County and/or other governmental authority(ies) or special district(s) with jurisdiction, as may be required for installation of the Subdivision Improvements. vii. All remaining Subdivision Improvements not yet completed and secured by this Agreement shall be completed no later than one (1) year after the date of recording of this Agreement in the Office of the Garfield County Clerk and Recorder, which period may be extended by the Board for good cause shown. b. Satisfaction of Subdivision Improvements Provisions The County agrees that if all required Subdivision Improvements are installed in accordance with this Agreement; the requirements of the Preliminary Plan Approval; the Final Plat documents; the as -built drawings to be submitted upon completion of the Improvements as required by Paragraph 3 (C) below; the requirements of the Garfield County zoning and subdivision regulations; and all other requirements of this Agreement, then the Owner shall be deemed to have satisfied all terms and conditions of the Strong Subdivision PUD Approval documents, the Garfield County Unified Land Use Resolution of 2008 with respect to the installation of Subdivision Improvements. 3 3. SECURITY FOR SUBDIVISION IMPROVEMENTS. a. Subdivision Improvements Letter of Credit and Substitute Collateral. As security for Owner's obligation to complete the Subdivision Improvements, Owner shall deliver to the BOCC, on or before the date of recording of the Final Plat of the Subdivision, a Letter of Credit in the form agreed to be acceptable to the BOCC, attached to and incorporated in this SIA by reference as Exhibit "C" ("LOC") or in a form consistent with the Uniform Commercial Code, C.R.S. § 4-1-101, et seq. and approved by the BOCC. The LOC shall be in the amount of $ representing the full estimated cost of completing the Subdivision Improvements not already constructed, with a sufficient contingency to cover cost changes, unforeseen costs and other variables (not less than 10% of the estimated cost and as approved by the BOCC). - 4 •_• :: • • . 11 .- .-. bedew: The cost of Subdivision Improvements already completed as of the date of execution of this SIA is $ as set forth and certified by Owner's Engineer on Exhibit "" and is not included in the amount of the LOC. The LOC shall be valid for a minimum of six (6) months beyond the Completion Date for the Subdivision Improvements set forth in Paragraph 2.a., above. The BOCC, at its sole option, may permit the Owner to substitute collateral other than a Letter of Credit, in a form acceptable to the BOCC, for the purpose of securing the completion of the Subdivision Improvements subject of this Paragraph 3.a. b. LOC Requirements and Plat Recording. The LOC required by this SIA shall be issued by a state or national banking institution acceptable to the BOCC. If the institution issuing the LOC is not licensed in the State of Colorado and transacting business within the State of Colorado, the LOC shall be "confirmed" within the meaning of the Uniform Commercial Code, Letters of Credit, §4-5-101, et seq., C.R.S., as amended, by a bank that is licensed to do business in the State of Colorado, doing business in Colorado, and acceptable to the BOCC. The LOC shall state that presentation of drafts drawn under the LOC shall be at an office of the issuer or confirmer located in the State of Colorado. The Final Plat of the Subdivision shall not be recorded until the security described in this Paragraph 3 has been received and approved by the BOCC. c. Extension of LOC Expiration Date. If the Completion Date, identified in Paragraph 2.a., above, is extended by a written amendment to this SIA, the time period for the validity of the LOC shall be similarly extended by the Owner. For each six (6) month extension, at the sole option of the BOCC, the face amount of the LOC shall be subject to re -certification by Owner's Engineer of the cost of completion and review by the BOCC. d. Unenforceable LOC. Should the LOC expire or become void or unenforceable for any reason, including bankruptcy of the Owner or the fmancial institution issuing or confirming the LOC, prior to the BOCC's approval of Owner's Engineer's certification of completion of the Subdivision Improvements, this SIA shall become void and of no force and effect and the Final Plat shall be vacated pursuant to the terms of this SIA. e. Partial Releases of Security. Owner may request partial releases of the LOC, and shall do so by means of submission to the Building and Planning Department of a "Written Request for Partial Release of LOC", in the form attached to and incorporated by this reference as 4 Exhibit D, accompanied by the Owner's Engineer's stamped certificate of partial completion of improvements. The Owner's Engineer's seal shall certify that the Subdivision Improvements have been constructed in accordance with the requirements of this SIA, including all Final Plat Documents and the Preliminary Plan Approval. Owner may also request release for a portion of the security upon proof that 1) Owner has a valid contract with a public utility company regulated by the Colorado Public Utilities Commission obligating such company to install certain utility lines; and 2) Owner has paid to the utility company the cost of installation as required by the contract. The BOCC shall authorize successive releases of portions of the face amount of the LOC as portions of the Subdivision Improvements, dealt with in this Paragraph 3, are certified as complete to the BOCC by the Owner's Engineer, requirements of the Preliminary Plan Approval have been met, and both the certification and satisfaction of the Preliminary Plan Approval requirements have been approved by the BOCC. f. BOCC's Investigation. Notwithstanding the foregoing, upon submission of the Owner's Written Request for Partial Release of LOC, along with Owner's Engineer's certificate of partial completion of improvements, the BOCC may review the certification and the Preliminary Plan Approval, and may inspect and review the Subdivision Improvements certified as complete to determine whether or not they have been constructed in compliance with relevant specifications, as follows: If no letter of potential deficiency is furnished to Owner by the BOCC within fifteen (15) business days of submission of Owner's Written Request for Partial Release of LOC, accompanied by Owner's Engineer's certificate of partial completion of improvements, all Subdivision Improvements certified as complete shall be deemed approved by the BOCC, and the BOCC shall authorize release of the appropriate amount of security, provided that all requirements of the Preliminary Plan Approval have been satisfied. ii. If the BOCC chooses to inspect and determines that all or aportion of the Subdivision Improvements certified as complete are not in compliance with the relevant specifications or that requirements of the Preliminary Plan Approval have not been met, the BOCC shall furnish a letter of potential deficiency to the Owner, within fifteen (15) business days of submission of Owner's Written Request for Partial Release of LOC. iii. If a letter of potential deficiency is issued identifying a portion of the certified Subdivision Improvements as potentially deficient and there are no outstanding requirements of the Preliminary Plan Approval, then all Subdivision Improvements not identified as potentially deficient shall be deemed approved by the BOCC, and the BOCC shall authorize release of the amount of security related to the Subdivision Improvements certified as complete and not identified as potentially deficient. 5 iv. With respect to Subdivision Improvements identified as potentially deficient in a letter of potential deficiency or requirements of the Preliminary Plan Approval that have not been met, the BOCC shall have thirty (30) days from the date of the letter to complete the initial investigation, begun under Paragraph 3.f.ii., above, and provide written confirmation of the deficiency(ies) to the Owner. v. If the BOCC finds that the Subdivision Improvements are complete, in compliance with the relevant specifications and that all requirements of the Preliminary Plan Approval have been met, then the appropriate amount of security shall be authorized for release within ten (10) business days after completion of such investigation. g. BOCC Completion of Improvements and Other Remedies. If the BOCC finds, within the thirty (30) day period of time, defined in Paragraph 3.f.iv. above, that the Subdivision Improvements are not complete, or if the BOCC determines that the Owner will not or cannot construct any or all of the Subdivision Improvements, whether or not Owner has submitted a written request for release of LOC, or that requirements of the Preliminary Plan Approval have not been met, the BOCC may withdraw and employ from the LOC such funds as may be necessary to construct the Subdivision Improvements in accordance with the specifications or to satisfy the Preliminary Plan Approval requirements, up to the face amount or remaining face amount of the LOC. In such event, the BOCC shall make a written finding regarding Owner's failure to comply with this SIA or requirements of the Preliminary Plan Approval prior to requesting payment from the LOC, in accordance with the provisions of Article XIII of the Garfield County Unified Land Use Resolution of 2008. In lieu of or in addition to drawing on the LOC, the BOCC may bring an action for injunctive relief or damages for the Owner's failure to adhere to the provisions of this SIA regarding Subdivision Improvements and satisfaction of requirements of the Preliminary Plan Approval. The BOCC shall provide the Owner a reasonable time to cure any identified deficiency(ies) prior to requesting payment from the LOC or filing a civil action. h. Final Release of Security. Upon completion of all Subdivision Improvements and Preliminary Plan Approval requirements, Owner shall submit to the BOCC, through the Building and Planning Department: 1) record drawings bearing the stamp of Owner's Engineer certifying that all Subdivision Improvements have been constructed in accordance with the requirements of this SIA, including all Final Plat Documents and the Preliminary Plan Approval, in hard copy and digital format acceptable to the BOCC; 2) copies of instruments conveying real property and other interests which Owner is obligated to convey to the Property Owner's Association of the Subdivision or any statutory special district or other entity at the time of Final Plat Approval; and 3) a Written Request for Final Release of LOC, in the form attached to and incorporated herein as Exhibit E, along with Owner's Engineer's stamp and certificate of final completion of improvements. i. The BOCC shall authorize a final release of the LOC after the Subdivision Improvements secured by the LOC are certified as final to the BOCC by the Owner's Engineer and said final certification is 6 approved by the BOCC. If the BOCC finds that the Subdivision Improvements are complete, in accordance with the relevant specifications, and that all requirements of the Preliminary Plan Approval have been met, the BOCC shall authorize release of the final amount of security, within ten (10) business days following submission of the Owner's Written Request for Final Release of LOC accompanied by the other documents required by this Paragraph 3.h. ii. Notwithstanding the foregoing, upon Owner's Written Request for Final Release of LOC, accompanied by Owner's Engineer's certificate of final completion of improvements, the BOCC may inspect and review the Subdivision Improvements certified as complete. If the BOCC does so review and inspect, the process contained in Paragraph 3.f., above, shall be followed. iii. If the BOCC finds that the Subdivision Improvements are complete, in accordance with the relevant specifications, and that all requirements of the Preliminary Plan Approval have been satisfied, the BOCC shall authorize final release of security within ten (10) days after completion of such investigation. iv. If the BOCC finds that the Subdivision Improvements are not complete, in accordance with the relevant specifications, and/or that requirements of the Preliminary Plan Approval have not been satisfied, the BOCC may complete remaining Subdivision Improvements and satisfy requirements of the Preliminary Plan Approval, or institute court action in accordance with the process outlined in Paragraph 3.g., above. COUNTY ROAD 300 INTERSECTION WITH U.S. HIGHWAY The Subdivi on is required to provide its "fair share" monetary contribution to the improv- ent of the County Rt ad 300 intersection with U.S. Highway 6. Garfield County ' g the intersection by conducting an engineering assessment of the intersection. Based on calculations made by I - ►` ..• - • - • • •• estimates that the fair share contribution for the improvements to the intersection is $ 0 T calcu . " . • • 0 : - - . ': _ The BOCC agrees this number is valid and will allow the subdivision to proceed with its Final Plat application and will not require the improvements to be completed prior to granting approval to the Subdivision Final Plat. However, 5. WATER SUPPLY. As stated in Paragraph 13, below, prior to issuance by the BOCC of any certificates of occupancy for any structures constructed within the Subdivision, Owner shall install, connect and make operable a water supply and distribution system for potable water in accordance with approved plans and specifications. All easements and rights-of-way necessary for installation, operation, service and maintenance of such water supply and distribution system shall be 7 as shown on the Final Plat. Owner shall deposit with the Garfield County Clerk and Recorder executed originals of the instruments of conveyance for easements appurtenant to the system for recordation following recording of the Final Plat and this SIA. Immediately following the recordation of the Final Plat and this SIA, all facilities and equipment contained within the water supply system shall be transferred by Owner to the Property Owner's Association of the Subdivision by bill of sale. 6. PUBLIC ROADS. All roads within the Subdivision to be dedicated by the Owner to the public as public rights-of-way shall be dedicated to and accepted by the BOCC, on behalf of the public, on the face of the Final Plat, and shall be separately deeded to the Property Owner's Association ("POA"). The Property Owner's Association of the Subdivision shall be solely responsible for the maintenance, repair and upkeep of said rights-of-way, including the traveled surface of the roadways and portions of the rights-of-way outside of the traveled surface. The BOCC shall not be obligated to maintain any road rights-of-way within the Subdivision. 7. PUBLIC UTILITY RIGHTS-OF-WAY. Whether or not utility easements exist elsewhere in the Subdivision, all road rights-of-way within the Subdivision shall contain easements for installation and maintenance of utilities. Public utility easements shall be depicted on the face of the Final Plat and deeded by recorded instrument to the HOA for the benefit of public utility providers. The Property Owner's Association of the Subdivision shall be solely responsible for the maintenance, repair and upkeep of said public utility easements, unless otherwise agreed to with the public utility companies. The BOCC shall not be obligated for the maintenance, repair and upkeep of any utility easement within the Subdivision. In the event a utility company, whether publicly or privately owned, requires conveyance of the easements depicted on the Final Plat by separate document, Owner shall execute and record the required conveyance documents. 8. INDEMNITY. The Owner shall indemnify and hold the BOCC harmless and defend the BOCC from all claims which may arise as a result of the Owner's installation of the Subdivision Improvements and any other agreement or obligation of Owner, related to development of the Subdivision, required pursuant to this SIA. The Owner, however, does not indemnify the BOCC for claims made asserting that the standards imposed by the BOCC are improper or are the cause of the injury asserted, or from claims which may arise from the negligent acts or omissions of the BOCC or its employees. The BOCC shall notify the Owner of receipt by the BOCC of a notice of claim or a notice of intent to sue, and the BOCC shall afford the Owner the option of defending any such claim or action. Failure to notify and provide such written option to the Owner shall extinguish the BOCC's rights under this Paragraph. Nothing in this Paragraph shall be construed to constitute a waiver of governmental immunity granted to the BOCC by Colorado statutes and case law. 9. SALE OF LOTS. No lots, tracts, or parcels within the Subdivision may be separately conveyed prior to recording of the Final Plat in the records of the Garfield County Clerk and Recorder. 10. BUILDING PERMITS AND CERTIFICATES OF OCCUPANCY. As one remedy for breach of this SIA, including failure to satisfy requirements of the Preliminary Plan Approval, the BOCC may withhold issuance of building permits for any structure to be constructed 8 within the Subdivision. Further, no building permit shall be issued unless the Owner demonstrates to the satisfaction of the Grand Valley Fire Protection District ("District"), if the Fire District has so required, that there is adequate water available to the construction site for the District's purposes, no certificates of occupancy shall issue for any structure within the Subdivision until all Subdivision Improvements have been completed and are operational and all requirements of the Preliminary Plan Approval have been satisfied as required by this SIA. 11. CONSENT TO VACATE PLAT. In the event the Owner fails to comply with the terms of this SIA, the BOCC shall have the ability to vacate the Final Plat as it pertains to any lots for which building permits have not been issued. As to lots for which building permits have been issued, the Plat shall not be vacated and shall remain valid. In such event, the Owner shall provide the BOCC a plat, suitable for recording, showing the location by surveyed legal description of any portion of the Final Plat so vacated by action of the BOCC. If such a Plat is not signed by the BOCC and recorded, or if such Plat is not provided by the Owner, the BOCC may vacate the Final Plat, or portions thereof, by resolution. 12. ENFORCEMENT. In addition to any rights provided by Colorado statute, the withholding of building permits and certificates of occupancy, provided for in Paragraph 10, above, the provisions for release of security, detailed in Paragraph 3, above, and the provisions for plat vacation, detailed in Paragraph 11, above, it is mutually agreed by the BOCC and the Owner, that the BOCC, without making an election of remedies, and any purchaser of any lot within the Subdivision shall have the authority to bring an action in the Garfield County District Court to compel enforcement of this SIA. Nothing in this SIA, however, shall be interpreted to require the BOCC to bring an action for enforcement or to withhold permits or certificates or to withdraw unused security or to vacate the Final Plat or a portion thereof, nor shall this Paragraph or any other provision of this SIA be interpreted to permit the purchaser of a lot to file an action against the BOCC. In addition, the BOCC may, but shall not be required to, pursue any of its enforcement remedies as applicable, pursuant to Article XII of the Unified Land Use Resolution of 2008, as amended. 13. NOTICE BY RECORDATION. This SIA shall be recorded in the Office of the Garfield County Clerk and Recorder and shall be a covenant running with title to all lots, tracts and parcels within the Subdivision. Such recording shall constitute notice to prospective purchasers and other interested persons as to the terms and provisions of this SIA. 14. SUCCESSORS AND ASSIGNS. The obligations and rights contained herein shall be binding upon and inure to the benefit of the successors and assigns of the Owner and the BOCC. 15. CONTRACT ADMINISTRATION AND NOTICE PROVISIONS. The representatives of the Owner and the BOCC, identified below, are authorized as contract administrators and notice recipients. Notices required or permitted by this SIA shall be in writing and shall be effective upon the date of delivery, or attempted delivery if delivery is refused. Delivery shall be made in person, by certified return receipt requested U.S. Mail, receipted delivery service, or facsimile transmission, addressed to the authorized representatives of the BOCC and the Owner at the address or facsimile number set forth below: 9 Owner: Copy to: BOCC: Una Development, LLC Post Office Box 809 Silt, CO 81652 Telephone: (970) 379-3265 Karl J. Hanlon, Esq. Karp Neu Hanlon, P.C. 201 14th Street, Suite 200 P. O. Drawer 2030 Glenwood Springs, Colorado 81602 Telephone: (970) 945-2261 Board of County Commissioners Garfield County Building & Planning Director 108 8th Street, Suite 401 Glenwood Springs, Colorado 81601 Telephone: (970) 945-8212 Facsimile: (970) 384-3470 16. AMENDMENT AND SUBSTITUTION OF SECURITY. This SIA may be modified, but only in writing signed by the parties hereto, as their interests then appear. Any such amendment, including, by way of example, extension of the Completion Date, substitution of the form of security, or approval of a change in the identity of the security provider/issuer, shall be considered by the BOCC at a scheduled public meeting. Before any extension of Completion Date is considered, Owner shall certify that all taxes and assessments on the real property subject to the SIA are paid in full. If such an amendment includes a change in the identity of the provider/issuer of security, due to a conveyance of the Subdivision by the Owner to a successor in interest, Owner shall provide a copy of the recorded assignment document(s) to the BOCC, along with the original security instrument. Notwithstanding the foregoing, the parties may change the identification of notice recipients and contract administrators and the contact information provided in Paragraph 15, above, in accordance with the provisions of that Paragraph and without formal amendment of this SIA and without consideration at a BOCC meeting. 17. COUNTERPARTS. This SIA may be executed in counterparts, each of which shall be deemed an original, and all of which, when taken together, shall be deemed one and the same instrument. 18. VENUE AND JURISDICTION. Venue and jurisdiction for any cause arising out of or related to this SIA shall lie with the District Court of Garfield County, Colorado, and this SIA shall be construed according to the laws of the State of Colorado. IN WITNESS WHEREOF, the parties have signed this SIA to be effective upon the date of Final Plat Approval for the Subdivision. 10 BOARD OF COUNTY COMMISSIONERS ATTEST: OF GARFIELD COUNTY, COLORADO Clerk to the Board STATE OF COLORADO ) ) ss. COUNTY OF GARFIELD ) By: Chairman Date: UNA DEVELOPMENT, LLC By: George Strong Date: Subscribed and sworn to before me this day of , 2010 by George Strong, Manager and authorized representative of Una Development, LLC, Owner of the Subdivision. WITNESS my hand and official seal. My commission expires: [SEAL] 11 Notary Public EXHIBIT A Plans marked "Approved for Construction" prepared by Colorado River Engineering, Inc., and ZAO Engineers, LTD, submitted to the Board of County Commissioners on even date herewith, consisting of the following list of drawings: 1] Water Plan - ZAO Engineering, LTD 2] Strong PUD Potable Water Plan - Colorado River Engineering, Inc. 3] Erosion Control Plan - ZAO Engineering, LTD 4] Bud's Way As -Built Detail - ZAO Engineering, LTD 12 Engineers/Su rveyors Boulder Colorado Springs Denver Grand Junction Greeley Steamboat Springs 1350 17th Street, Suite 210 Denver, CO 80202 720.214.0955 720.214.0959 Fax Drexel, Barrell & co. July 20, 2010 Mr. George Strong Strong Lumber and Specialty Log Products, Inc. PO Box 808 Sawmill 7190 Hwy 13 Silt, CO 81652 (970) 625-0777 strong@sopris.net Subject: Strong Subdivision — Calculated percentage of site traffic at the intersection of Highway 6&24 / County Road 300 Dear George, Per your request, Drexel, Barrell & Co. has reviewed the information you provided us regarding the intersection improvement costs and the calculation of "fair shares". Based on the methodology outlined in Resource Engineering's letter to Fred Jarman and utilizing a percentage of traffic to determine the costs per party, we believe that your fair share percentage is actually 6% and not 9%. The 9% number in Resource Engineering's letter does not accurately reflect the total traffic through the intersection. That number was derived by only counting the traffic volume that exited or entered CR 300. Because the entire intersection is being improved, the percentages should be based on all of the traffic traveling through the intersection. Our 6% calculation is based on the following data that is included in the Traffic Study: The Total Volume of Traffic projected in the intersection in Year 2030 is: AM Peak Hour: PM Peak Hour: 555 vehicles 445 vehicles The amount of traffic from the Strong Subdivision projected to enter the intersection is: AM Peak Hour: PM Peak Hour: 30 vehicles OR 5.41 % of the total AM traffic 30 vehicles OR 6.74% of the total PM traffic. If we average the percentages of AM and PM Peak Hours, your average percent impact is 6.075%. EXHIBIT George Strong — Strong Subdivision — Intersection Improvements July 20, 2010 Page 2 Please let me know if you have any questions regarding this letter and/or analysis. Sincerely, Drexel, Barrell & Co. Ann T. Bowers, P.E., PTOE Transportation Department Head