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HomeMy WebLinkAboutCity Clerk ChecklistCITY CLERK FILE CHECKLIST Project Name: Medical Millennium Condominum Contact Name: Van Elg File No. Phone: 939-4041 S H P 08-002 Date Received from Planning and Zoning Department: January 24, 2008 Planning and Zoning Level: Hearing Date: ❑ Transmittals to agencies and others: ❑ Notice to newspaper with publish dates: and ❑ Certifieds to property owners: ❑ Planning and Zoning Commission Recommendation: ❑ Approve ❑ Deny Notes: City Council Level: Hearing Date ❑ Transmittals to agencies and others: ❑ Notice to newspaper with publish dates: 02/1 1 /08 and ❑ Certifieds to property owners: ❑ City Council Action: ❑ Approve ❑ Findings / Conclusions / Order received from attorney on: Notes: Deny March 4, 2008 January 29, 2008 02/25/08 Findings / Conclusions / Order: R.°Igg°^• ❑ Approved by Council Original Res/Copy Cert Minuteb°ek opyRes/ ppycerr C"Clerk Ciy Engineer Copies Disbursed: ❑ Ciy Planner Ciy Anorney 9ledng Coi Project Fil,[e Findings Recorded oePuy Co °oP Res/Q iginal Cerl AC Coun" (CPAs) Development Agreement: AAUllcant(non-CPAs) 11—r dOrdr»n.°. Criginal: Minulebook ❑ Sent for signatures: C°Pies Ci"Clerk Stale Nc mn, Co T State Treasurer, Audtor, Assegor Signed by all parties: ❑ Sterling Codtieis Cly Ab°rosy Ciy Engineer ❑ Approved by Council: Ciy Planner lic"t if' n�plinanair aPPu El Recorded: Clerk Fl^dng d^o°/o,a =: Criginar. MZplIo°k Copies Disbursed: ❑ COPIes ro: AAPIICanr In ay E; Cly Engineer Ordinance No. Resolution No. Ciy Planner DiyArco,,1 Depuy Clerk " Rec°rC Vacation Findnys " ❑ Approved by Council: R"°r''d "�' U-I'°' p-fA°r'°" Cnginal.FireUroof File Copies to Ayph_nl ❑ Recorded: Deadline: 10 days CPfOIEngZ"1e ElDepCiy Published in newspaper: ity ineer Planner °iyA°°rney uty aen ❑ Copies Disbursed: `' Mayor Tammy de Weerd (I �E IDIAN- TRANSMITTALS TO AGENCIES FOR COMMENTS ON DEVELOPMENT PROJECTS WITH THE CITY OF MERIDIAN City Council Members: Keith Bird Joe Borton Charles Rountree David Zaremba To insure that your comments and recommendations will be considered by the Meridian City Council please submit your comments and recommendations to Meridian City Hall Attn: Will Berg, City Clerk, by: February 26, 2008 Transmittal Date: January 29, 2008 File No.: SHP 08-002 Hearing Date: March 4, 2008 Request: Public Hearing - Short Plat approval for 4 commercial units in an existing building in an L-O zone for Medical Millennium Condominium By: The Land Group, LLC Location of Property or Project: 1828 S. Millennium Way Joe Marshall (No FP) David Moe (no FP) Wendy Newton-Huckabay (No FP) Michael Rohm (No FP) Tom O'Brien (No FP) Tammy de Weerd, Mayor Charlie Rountree, C/C Joe Borton, C/C Keith Bird, C/C David Zaremba C/C Water Department Sewer Department Sanitary Services(No VAR, VAC, FP) Building Department / Rich Greene Fire Department Police Department City Attorney City Engineer City Planner Parks Department Economic Dev. (CUP only) Your Concise Remarks: Meridian School District (No FP) Meridian Post Office (FP/PP/SHP only) Ada County Highway District Ada County Development Services Central District Health Nampa Meridian Irrig. District Settlers Irrig. District Idaho Power Co. (FP,PP,CUP/SHP only) Qwest (FP/PP/SHP only) Intermountain Gas (FP/PP/SHP only) Bureau of Reclamation (FP/PP/SHP only) Idaho Transportation Dept. (No FP) Ada County Ass. Land Records Downtown Projects: Meridian Development Corp. Historical Preservation Comm. South of RR / SW Meridian: NW Pipeline New York Irrigation District Boise-Kuna Irrigation District City Clerk's Office • 33 E. Idaho Avenue, Meridian, ID 83642 Phone 208-888-4433 • Fax 208-888-4218 • www.meridi2ncity.org M -id Planning Department ADMINISTRATIVE REVIEW APPLICATION Gtiy. o •_AQ` A / i • A _ A _ I of Review ® Accessory Use Alternative Compliance E] Certificate of Zoning Compliance Conditional Use Permit Minor Modification Design Review Private Street Property Boundary Adjustment Short Plat Temporary Use Certificate of Zoning Compliance Time Extension (Director) Vacation El Other A 1. t Inf ti STAFF USE ONLY: File number(s): ^s t P— 09- 0Q 2- � Project name: tkott'i t+� -a✓1/: u Date filed: 0 Date complete:t 1-D Assigned Planner: 6 I Related files: 6 2 `d o - ooy . VP- vD oab pp can o—a on Applicant name: Millenium Group, LLC/ Gary Millward Phone: Applicant address: 1400 W. Bannock, Boise, Idaho Zip: 83702 Applicant's interest in property: El Own ORent FlOptioned ❑Other Owner name: Same as above Owner address: Phone: Zip: Agent name (e.g., architect, engineer, developer, representative): Van Elg, Senior Planner Firm name: The Land Group, Inc. Phone: 939.4041 Address: 462 E. Shore Dr. Suite 100, Eagle Idaho Zip: 83616 Primary contact is: ElApplicant ElOwner DAgent ElOther Contact name: Same as above E-mail: van@thelandgroupinc.com Subject Property Information Location/street address: 1828 S. Millenium Way, Meridian Idaho Assessor's parcel number(s): R7406020030 Township, range, section: Sec.20, T. 3N, R. 1 E Current land use: Commercial Total acreage- 1.259 +/- Current zoning district: L_0 Phone: 939-4041 Fax: 939-4445 660 E. Watertower Lane, Suite 202 • Meridian, Idaho 83642 Phone: (208) 884-5533 • Facsimile: (208) 888-6854 • Website: www.meridiancity.org 1 (Rev. 9121106) M Project Description Project/subdivision name: Medical Millenium Condominiums (on Lot 3 Blk 1 Resolution Sub) General description of proposed project/request: Existing building to be platted into four condominium plus limited/common space areas. Uses will remain the same as originally approved. Proposed zoning district(s). No change from existing L-0 Zone Acres of each zone proposed: NA Type of use proposed (check all that apply): El Residential ElCommercial 00ffice [Industrial DOther Medical/Office as originally approved. Amenities provided with this development (if applicable) -NA Who will own & maintain the pressurized irrigation system in this development? Existing system is by NMID Which irrigation district does this property lie within? Nampa -Meridian Irrigation District Primary irrigation source: Existing Pressure -No Change Secondary: City of Meridian Square footage of landscaped areas to be irrigated (if primary or secondary point of connection is City water): NA Residential Project Summary (if applicable) Number of residential units. N/A Number of building lots: Number of common and/or other lots: Proposed number of dwelling units (for multi -family developments only): 1 Bedroom: Minimum square footage of structure(s) (excl. garage): Minimum property size (s.f): Gross density (DU/acre-total land): Percentage of open space provided: 2 or more Bedrooms: Proposed building height: Average property size (s.f.): Net density (DU/acre-excluding roads & alleys): Acreage of open space: Percentage of useable open space: (See Chapter 3, Article G, for qualified open space) Type of open space provided in acres (i.e., landscaping, public, common, etc): Type of dwelling(s) proposed: O Single-family E]Townhomes E]Duplexes Q Multi -family Non-residential Project Summary (if applicable) Number of building lots: 4 Condo Units Other lots: Limited/Common Area Gross floor area proposed: 13400.28 sq ft Existing (if applicable): Hours of operation (days and hours):unknown Building height: 23 feet Percentage of site/project devoted to the following: Landscaping: no change Building: 18.5 % Paving: no change Total number of employees: unknown Maximum number of employees at any one time: unknown Number and ages of students/children (if applicable): n/a Seating capacity: n/a Total number of parking spaces provided: 54 Number of compact spaces provided: Authorization Print applicant name: 'r-i _ [j1G t�r.�y� Grrz�7p Jr\l Applicant signature: Phone: Date: 1`'—� I t ItX59 E. Wa � er Lane, Sui 02 • Meridian, Idaho 83642 5533_ • _ Fac_' 'le: (208) 888-6854 • Website: www.meridiancity.org 2 'AN r/ WWAram. OW ~4 TTIF LANT? GROUP, INC. January 9, 2008 Sonya Watters City of Meridian 660 E. Watertower, Suite 200 Meridian, Idaho 83642 Re: Medical Millenium Condominiums (on Lot 3 Blk 1 of Resolution Sub) Dear Sonya, Thank you for setting up the pre -application meeting to discuss this project with us. As you will recall, the project simply involves the platting of 4 condominium units in the already approved structure at 1828 S. Millenium Way. The existing medical office will not be altered structurally, nor will the site be altered to accommodate the platting of the condominium project. As we understand from our meeting, we can proceed with this short plat for the project and there are few, if any additional zoning or engineering issues as this is strictly a platting issue that is required to accommodate the condominium ownership of building. Irrigation, sewer/water and utility approvals were all previous approved with the subdivision plat and CZC-06-167. The proposed Medical Millenium Condominium project will: 1. Conform with all of the requirements and provisions of the Meridian UDC. 2. Conform with acceptable engineering, architectural and survey practices and local standards. 3. We have also reviewed the approved DA Modification as it relates to this lot (see DA Mod #MI 06-009 and as approved instrument #1077005524) and believe that this project will remain in complete compliance with these approvals. Please give us a call if you have any additional questions or comments. Sincerely, The nd Group, Va Ig / Senior Planner EA Site Planning • Landscape Architecture • Civil Engineering • Golf Course Irrigation & Engineering . Graphic Communication *Surveying 462 E. Shore Drive, Ste. 100, Eagle, Idaho 83616 • P 208.939.4041 F 208.939.4445 0 www.thelandgroupinc.com Medical Millennium Condominiums F-- Q Co /% i U J � n I n 1 .-. A. 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V O CCI O O (D 7 `G O Z O CD CD C Q 0 "Mm Q t s 8 O v a Kv Y g� $ 4 o < so o < g '00 Ngce�g No��<� ci O o a1 gs o A SU 92<m" m CD D Q. 00 �� w gg SD S17i��^ 90 z (7 5��y cTy 0 ? o C 0 CDi� oopK`G x PRO K = K�(a N m� Fl Z f0 sA n�n� CD p m'° Cr 20AN- �a s sy CD a dox9 i.33 z70 0 ID Z a ? >�> c4 —T� .0 o�^R E!.A im CD KK Z K oymm f K rm D �� myN l�l KK CD !� 0 (� yy Z�ZK Z T Am0 N �Lpy CD pig is CD N D� >e'=� N S Q 7 pa D. 0) �sK� zNvo CD o O>`K� p O Cc: p,z� �G �o `G 47 f�SJ1i• `G 25m 0 ASS>p C joQ A O �AO CD .< o OAm (n YES ; 8 9 4 FS2 mg Qi z '''- z �92 m A R4 A �Ty yy 00 0 ;C; 0 0 C)CD 2 CD a: 3 O 0 CD 00 con � 0 wFa C) o M CD CD 0' CD M o po V 0 CD \ L cn 0 CD CDCDD .-► • O 3 �Qr 0<� o Q O C CA) H Cn o� OD cn 0 0 J CD Q ^ W ' ^ CD W O -.k -u O N 0 N O rF 3 W O O CD err Z _ O O �5� h CD CD O -h Hearing Date: March 4, 2008 File No.: SHP-08-002 Project Name: Medical Millennium Condominium Short Plat Request: Short Plat approval for 4 commercial condominium units in an existing building in an L-O zone by The Land Group, LLC. Location: 1828 S. Millennium Way in the NW '/4 of Section 20, T.3N., R.1 E. :i ro i THE LAND GROUP, INC. January 9, 2008 Project No. 07008 Lot 3, Block 1, Resolution Subdivision Legal Description 1.26 acres Lot 3, Block 1, of Resolution Subdivision No.I (a recorded subdivision on file in Book 82 of Plats at page 9,041, records of Ada County, Idaho), situated in a portion of the Northeast One Quarter of the Northwest One Quarter of Section 20, Township 3 North, Range 1 East, Boise Meridian, City of Meridian, Ada County, Idaho, described as follows: Commencing at a found Brass Cap monumenting the North One Quarter Corner of said Section 20, which bears South 89052' 19" East a distance of 2,656.36 feet from a found Brass Cap monumenting the Northwest corner of said Section 20, thence South 00°24' 16" West a distance of 443.00 feet to a point on the southerly right-of-way line of East Gala Street; Thence following said southerly right-of-way line, North 89'52' 19" West a distance of 561.62 feet to a found 5/8-inch steel pin monumenting the Northwest corner of Valencia Plaza Subdivision (a recorded subdivision on file in Book 91 of Plats at page 10,764, records of Ada County, Idaho); Thence leaving said southerly right-of-way line following the westerly line of said Valencia Plaza Subdivision, South 00°07'41" West a distance 204.14 feet to a set 5/8-inch steel pin being the POINT OF BEGINNING. Thence following said westerly line and the easterly line of said Lot 3, Block 1, South 00°07'41" West a distance of 202.00 feet to a found 5/8-inch steel pin; Thence leaving said westerly line and said easterly line, and following the southerly line of said Lot 3, Block 1, North 89'52' 19" West a distance of 238.69 feet to a set 5/8-inch steel pin; Thence leaving said southerly line following the westerly line of said Lot 3, Block 1, North 00°07'41" East a distance of 136.08 feet to a set 5/8-inch steel pin; Thence leaving said westerly line and following the southwesterly line of said Lot 3, Block 1, North 53°00'00" West a distance of 179.09 feet to a set 5/8-inch steel pin on the easterly right-of-way line of South Millenium Way; or Landreape Architecture • Site Planning • Civil Engineering • Goff Course Irrigation & Engineering • Graphic Communication 462 E. Shore Drive, Ste. 100, Eagle, Idaho 83616 • P 208.939.4041 F 208.939.4445 • Aaw the] and grouoinc corn G:\2007\07008\Admin\Legais\l-071220-07008-Lot3.doc i %/ ;:i THE LAND GROUP, INC. Thence leaving said southwesterly line following said easterly right-of-way line, 38.50 feet following the arc of a circular curve to the left, said curve having a radius of 539.00 feet, a central angle of 04°05'34", a chord bearing of North 34'47' 11" East, and a chord distance of 38.49 feet to a set 5/8-inch steel pin monumenting the Southwest Corner of Gaudry Seegmiller Subdivision (a recorded subdivision on file in Book 88 of Plats at page 10,149, records of Ada County, Idaho); Thence leaving said easterly right-of-way line following the southerly line of said Gaudry Seegmiller Subdivision and the northwesterly line of said Lot 3, Block 1, South 53°00'00" East a distance of 122.00 feet to a found 5/8-inch steel pin; Thence leaving said northwesterly line and following said southerly line and the northerly line of said Lot 3, Block 1, South 89'52' 19" East a distance of 262.47 feet to the POINT OF BEGINNING. The above -described tract of land contains 1.26 acres, more or less, subject to all existing easements and rights -of -way. Prepared By: THE LAND GROUP, INC. ��ti CsI S T,E 462 E. SHORE DRIVE, SUITE 100 EAGLE, IDAHO 83616 a 12 9 0 208-939-4041 208-939-4445 (FAX) If OF SON L . BA�tiA 1• 10 -ag or Landscape Architecture Site Planning Civil Engineering - Golf Course Irrigation & Engineering # Graphic Communication 462 E. Shore Drive, Ste. 100, Eagle, Idaho 83616 • P 208,939.4041 F 208.939.4445 • wwtiv.thclandgrorroinc com G:\2007\07008\Admin\Legals\l_071220-07008—Lot3.doc IDSOS Viewing Business Entitv Page 1 of 1 , IDAHO SECRETARY OF STATE 01, Viewing Business Entry Ben Ysursa, Secretary of State [ New Search ] [ Back to Summary ] [ Get a_ certificate of existence for MILLENIUM GROUP LLC ] MILLENIUM GROUP LLC 1400 W BANNOCK ST BOISE, ID 83702 Type of Business: LIMITED LIABILITY COMPANY Status: EXISTING, ANREPT SENT 02 Jan 2007 State of Origin: IDAHO Date of 07 Mar 2006 Origination/Authorization: Current Registered Agent: GARY J MILLWARD 1400 W BANNOCK ST BOISE, ID 83702 File Number: W48261 Date of Last Annual Report: 18 Jan 2007 Amendments: [ Hem Me Print View TIFF ] Amendment filed 07 Mar 2006 ARTICLES OF View Image (TIFF ORGANIZATION forma "w � ire [ Help Me Print/View TIFF ] Report for year 2007 ANNUAL REPORT View _Ima e TIFF__ format Idaho Secretary of State's Main Page State of Idaho Home Page Comments, questions or suggestions can be emailed to: sosinfo sos.idaho.gov http://www.accessidaho.org/public/sos/corp/search.html?ScriptForm.startstep=viewentity... 12/21 /2007 P 00 1002 MRR-07-2006(TUE) 14:12 — ARTICLES OF ORGANIZATION ZaQb BAR LIMITED LIABILITY COMPANY 7 Pf 4; 38 (Instructions on back ofapplicatlon) S iA iF 1. The name of the limited liability company Is: Millenium Group LLC 2. The street address of the initial registered office is: 1400 West Bannock Street, Boise, Idaho, 83702 and the name of the initial registered agent at the above address is: Gary J. Millward 3. The mailing address for future correspondence is: 1400 West Bannock Street, Boise, Idaho, 83702 4. Management of the limited liability company will be vested in: Manager(s) 0 or Member(s) a (plane check the appropdate box) 5. If management is to be vested in one or more manager(s), list the name(s) and address(es) r(s), (es) of at list thleast one e name(s) ainitial manager. if management ndddress(es) of at least ones to be vested in the initial member, membe Nam* Addn:ea Gary J. Millward 1400 West Bannock Street, Boise, ID, 83702 6. Signature of at least one person responsible for forming the limited liability company: Signature: Secretory of Sloto uae only Typed Name: Erik • olinder Capacity: Organizer Signature � Typed Name: O3/07/206r, @OF STATE 80 1C.188NE CT:181085 M.- 941765 8 Capacity: :•::�, : ,.. 188 88 ORGAN LLC N 2 U-) 4- a( f Ilk o -p A m O- p m o 7� o0 3 • � In g as .. ►� - _ x m TO dD a v � m � D _ m -n 00 z D o a S. -C 3 A Ct c �. °Q F ^� m v a z wZ�G1 7 d y N c� o ° 0°�ar 0 ' CL -� P � �-- 0 ra CA m -, Q V ho I 09 m�~< a � NC7 �7C C D O [v (4 C4 N ji ts, O ADA COUNTY RECORDER( AVID NAVARRO AMOUNT 30.00 100 /UCS • 2sSb33 This instrument prepared by and after recording return to: Mark D. Munroe U.S. Bank, PD-ID-3669 I0I S. Capitol, Suite 100 Boise, ID 83702 BOISE IDAHO 04125/07 11:21 AM DEPUTY VicW Allen RECORDED -REQUEST OF �IIIII�I���l����III��1111���I�[III First American 107058450 5824105232 IDAHO DEED OF TRUST, SECURITY AGREEMENT b11� AND ASSIGNMENT OF RENTS AND LEASES (INCLUDING FIXTORE FILING UNDER UNIFORM COMMERCIAL CODE) This Idaho Deed of Trust, Security Agreement and Assignment of Rents and Leases (Including Fixture Filing Under Uniform Commercial Code) ("Deed -of Trust ") is -made and entered Into by the undersigned borrower(s), guarantor(s) and/or other obligor(s)/pledgor(s) (collectively the "Grantor") in favor of v..s . BANK TRUST COMPANY N A , having a mailing addre§&.g sq U. 97o4 (the "Trusted'), for the benefit of U.S. BANK N.A. (the "Beneficiary'), as of the date set forth below. ARTICLE I. CONVEYANCE/MORTGAGED PROPERTY 1.1 Grant of Deed of Trust/Security Interest. For valuable consideration, in hand paid by the Trustee to the Grantor, and the financial accommodations from the Beneficiary to the Grantor as described below, the Grantor has bargained, sold, conveyed and confirmed, and hereby bargains, sells, conveys and confirms, unto Trustee, its successors and assigns, for the benefit of the Beneficiary, the Mortgaged Property (defined below) to secure all of the Grantor's Obligations (defined below) to the Beneficiary. The intent of the parties hereto is that the Mortgaged Property secures all Obligations of the Grantor to the Beneficiary, whether now or hereafter existing, between the Grantor and the Beneficiary or In favor of the Beneficiary, including, without limitation, any note, any loan or security agreement, any lease, any other mortgage, deed of trust or other pledge of an interest in real or personal property, any guaranty, any letter of credit or reimbursement agreement or banker's acceptance, any agreement for any other services or credit extended by the Beneficiary to the Grantor even though not specifically enumerated herein and any other agreement with the Beneficiary (together and individually, the "Loan Documents'). The parties further intend that this Deed of Trust shall operate as a security agreement with respect to those portions of the Mortgaged Property which are subject to Article 9 of the Uniform Commercial Code. 1.2 "Mortgaged Property'means all of the following, whether now owned or existing or hereafter acquired by the Grantor, wherever located. all the real estate described below or in EXhIbItA attached hereto (the "Land°), together with all buildings, structures, standing timber, timber to. be cut, fixtures, equipment,- inventory and furnishings used in connection with the Land and improvements; all materials, contracts, drawings and personal property relating to any construction on the Land; and all other improvements now or hereafter constructed, affixed or located thereon (the "Improvements') (the Land and the Improvements collectively the "Premises'); TOGETHERwith any and all easements, rights -of -way, licenses, privileges, and appurtenances thereto, and any and all leases or other agreements for the use or occupancy of the Premises, all the rents, Issues, profits or any proceeds therefrom and all security deposits and any guaranty of a tenant's obligations thereunder (collectively the "Rents"); all awards as a result of condemnation, eminent domain or other decrease in value of the Premises and all insurance and other proceeds of the Premises. M41DID ®us bancorp toot B1 Page 1 or 9 6/03 The Land is described as follows (or in Exhibit A hereto if the description does not appear below): Real property commonly known as 2828 South Millennium Way, Meridian, ID being more particularly described as follows: Lot 3 in Block 1 of RESOLUTION SUBDIVISION NUMBER 1, according to the plat thereof, filed in Book 82 of Plats at page 9041 and 9042, records of Ada County, Idaho. Together with all and singular the passages, waters, water rights (whether tributary or non -tributary), water courses, riparian rights, wells, well permits, water stock, other rights, liberties and privileges thereof or in any way now or here- after appertaining to the Property. 1.3 "Obligationd' means all loans by the Beneficiaryto.Millenium Group LLC including those loans evidenced by a note or notes dated _04/20/07 in the Initial principal amount(S) of $ 2.266, Zoo . 00 , and any extensions, renewals, restatements and modifications thereof and all principal, Interest, fees and expenses relating thereto (the `Note"); and also means all the Grantor's debts, liabilities, obligations, covenants, warranties, and duties to the Beneficiary (plus its affiliates including any credit card debt, but specifically excluding any type of consumer credit), whether now or hereafter existing or incurred, whether liquidated or unliquidated, whether absolute or contingent, whether arlsing out of the Loan Documents or otherwise, and regardless of whether such Obligations arise out of existing or future credit granted by the Beneficiary to any Grantor, to any Grantor and others, to others guaranteed, endorsed or otherwise secured by any Grantor or to any debtor -in -possession/successo r-in-interest of any Grantor, and principal, interest, fees, expenses and charges relating to any of the foregoing, Including, without limitation, costs and expenses of collection and enforcement of this Deed of Trust, attorneys' fees of both inside and outside counsel and environmental assessment or remediation costs. The interest rate and maturity of sQch Obligations are as described in the documents creating the indebtedness secured hereby. 1.4 Homestead. The Premises are not the homestead of the Grantor. If so, the Grantor releases and (are)(are not) waives all rights under and by virtue of the homestead exemption laws of the State of Idaho. 1.5 Future Advances. This Deed of Trust secures future advances made pursuant to Idaho Code Section 45-108 and shall secure the payment of all loan advances included within the term "Obligations", regardless of the time such advances- are made: This Deed of Trust shall also secure unpaid balances of advances made with respect to the Mortgaged Property for the payment of taxes, assessments; Insurance premiums or costs incurred for the protection of the Mortgaged Property and other costs which the Bank is authorized by this Deed of Trust to pay on Grantor's behalf, plus Interest thereon, regardless of the time when such advances are made. ARTICLE 11. WARRANTIES AND COVENANTS In addition to all other warranties and covenants of the Grantor under the Loan Documents which are expressly incorporated herein as part of this Deed of Trust, including the covenants to pay and perform all Obligations, and while any part of the credit granted the Grantor under the Loan Documents is available or any Obligations of the Grantor to the Beneficiary are unpaid or outstanding, the Grantor continuously warrants to the Beneficiary and the Trustee and agrees as follows: 2.1 Warrantyof Title/Possession. The Grantor warrants that it has sole and exclusive title to and possession of the Premises, excepting only the.following "Permitted Encumbrances'; restrictions and easements of record, and zoning ordinances (the terms of which are and will be complied with, and in the case of easements, are and will be kept free of encroachments), taxes and assessments not yet due and payable and those Permitted Encumbrances set forth on ExhibitB attached hereto (except that if no ExhibitB Is attached, there will be no additional Permitted Encumbrances). The lien of this Deed of Trust, subject only to Permitted Encumbrances, is and will continue to be a valid first and only lien upon all of the Mortgaged Property. 2.2 Maintenance; Waste; Alteration. The Grantor will maintain the Premises in good and tenantable condition and will restore or replace damaged or destroyed improvements with'items of at least equal utility and value. The Grantor will not commit or permit waste to be committed on the Premises. The Grantor will not remove, demolish or materially alter 1714DID Pege 2 0( 9 any part of the Premises without the Beneficiary's prior written consent, except the Grantor may remove a fixture, provided the fixture Is promptly replaced with another fixture of at least equal utility. The replacement fixture will be subject to the priority lien and security of this Deed of Trust. 2.3 Transfer and Liens. The Grantor will not, without the prior written consent of the Beneficiary, which may be Withheld in the Beneficiary's sole and absolute discretion, either voluntarily or Involuntarily (a) sell, assign, lease or transfer, or permit to be sold, assigned, leased or transferred, any part of the Premises, or any interest therein; or (b) pledge or otherwise encumber, create or permit to exist any mortgage, pledge, lien or claim for lien or encumbrance upon any part of the Premises or interest therein, except for the Permitted Encumbrances. Beneficiary has not consented and will not consent to any contract or to any work or to the furnishing of any materials which might be deemed to create a lien or liens superior to the lien of this Deed of Trust or otherwise. 2.4 Escrow. After written request from the Beneficiary, the Grantor will pay to the Beneficiary sufficient funds at such time as the Beneficiary designates, to pay (a) the estimated annual real estate taxes and assessments on the Premises; and (b) all property or hazard insurance premiums when due. Interest will not be paid by the Beneficiary on any escrowed funds. Escrowed funds may be commingled with other funds of the Beneficiary. All escrowed funds are hereby pledged as additional security for the Obligations. 2.5 Taxes, Assessments and Charges. To the extent not paid to the Beneficiary under 2.4 above, the Grantor will pay before they become delinquent all taxes, assessments and other charges now or hereafterlevied or assessed against the Premises, against the Beneficiary based upon this Deed'of Trust or the Obligations secured by this Deed of Trust, or upon the Beneficiary's interest in the Premises, and deliver to the Beneficiary receipts showing timely payment. 2.6 Insurance. The Grantor will continually insure the Premises against such perils or hazards as the Beneficiary may require, in amounts, with acceptable co-insurance provisions, not less than the unpaid balance of the Obligations or the full replacement value of the Improvements, whichever is less. The policies will contain an agreement by each insurer that the policy will not be terminated or modified without at least thirty (30) days' prior written notice to the Beneficiary and will contain a mortgage clause acceptable to the Beneficiary; and the Grantor will take such other action as the Beneficiary may reasonably request to ensure that the Beneficiary will receive (subject to no other interests) the Insurance proceeds from the Improvements. The Grantor hereby assigns all insurance proceeds to and irrevocably directs, while any Obligations remain unpaid, any insurer to pay to the Beneficiarythe proceeds of all such insurance and any premium refund; and authorizes the Beneficiaryto endorse the Grantor's name to effect the same, to make, adjust or settle, in the Grantor's name, any claim on any insurance policy relating to the Premises. The proceeds and refunds will be applied in such manner as the Beneficiary, in Its sole and absolute discretion, determines to rebuilding of the Premises or to payment of the Obligations, whether or not then due and payable. 2.7. Condemnation. Any compensation received for the taking of the Premises, or any part thereof, by a condemnation proceeding (including payments in compromise of condemnation proceedings), and all compensation received as damages for injuryto the Premises, or any part thereof, shall be applied in such manner as the Beneficiary, in its sole and d absolute discretion, determines to rebuilding of the Premises or to payment of the Obligations, whether or not then due and payable. 2.8 Environmental Matters. Except as specifically disclosed by Grantor to Beneficiary in writing prior to the execution of this Deed of Trust, Grantor represents and warrants as follows. There exists no uncorrected violation by the Grantor of any federal, state or local laws (including statutes, regulations, ordinances or other governmental restrictions and requirements) relating to the discharge of air pollutants, water pollutants or process waste water or otherwise relating to the environment or Hazardous Substances as hereinafter defined, whether such laws currently exist or are enacted in the future (collectively "Environmental Laws"). The term "Hazardous Substance' will mean any hazardous or toxic wastes, chemicals or other substances, the generation, possession or existence of which is prohibited or governed by any Environmental Laws. The Grantor is not subject to any judgment, decree, order or citation, or a party to (or threat- ened with) any litigation or administrative proceeding, which asserts that the Grantor (a) has violated any Environmental Laws; (b) is required to clean up, remove or take remedial or other action with respect to any Hazardous Substances (collectively "Remedial Action"); or (c) is required to pay all or a portion of the cost of any Remedial Action, as a poten- tially responsible party. Except as disclosed on the Borrower's environmental questionnaire provided to the Beneficiary, there are not now, nor to the Grantor's knowledge after reasonable investigation have there ever been, any Hazardous Substances (or tanks or other facilities for the storage of Hazardous Substances) stored, deposited, recycled or disposed of on, under or at any real estate owned or occupied by the Grantor during the periods that the Grantor owned or occupied such real estate, which if present on the real estate or in soils or ground water, could require Remedial Action. To the Grantor's knowledge, there are no proposed or pending changes in Environmental Laws which would adversely affect the Grantor or its business, and there are no conditions existing currently or likely to exist while the Loan Docu- ments are In effect which would subject the Grantor to Remedial Action or other liability. The Grantor currently complies with and will continue to timely comply with all applicable Environmental Laws; and will provide the Beneficiary, immediately upon receipt, copies of any correspondence, notice, complaint, order or other document from .any source asserting or alleging any circumstance or condition which requires or may require a financial contribution by the Grantor 1714DID Page 3 of 9 or Remedial Action or other response by or on the part of the Grantor under Environmental Laws, or which seeks damages or civil, criminal or punitive penalties from the Grantor for an alleged violation of Environmental Laws. In the event of any such circumstance or condition, the Grantor agrees, at its expense and at the request of the Beneficiary, to permit an environmental audit solely for the benefit of the Beneficiary, to be conducted by the Beneficiary or an independent agent selected by the Beneficiary and which may not be relied on by the Grantor for any purpose. This provision shall not relieve the Grantor from conducting its own environmental audits or taking any other steps necessary to comply with Environmental Laws. 2.9 Assignments. The Grantor will not assign, in whole or in part, without the Beneficiary's prior written consent, the rents, issues or profits arising from the Premises. 2.10 Rightof Inspection. The Beneficiary may at all reasonable times enter and inspect the Premises. 2.11 Waivers by Grantor. To the greatest extent that such rights may then be lawfully waived, the Grantor hereby agrees for Itself and any persons claiming under the Deed of Trust that it will waive and will not, at any time, insist upon or plead or in any manner whatsoever claim or take any benefit or advantage of (a) any exemption, stay, extension or moratorium law now or at any time hereafter in force; (b) any law now or hereafter in force providing for the valuation or appraisement of the Premises or any part thereof prior to any sale or sales thereof to be made pursuant to any provision herein contained or pursuant to the decree, judgment or order of any'court of competent jurisdiction; (c) to the extent permitted by law, any law now or at any time hereafter made or enacted granting a right to redeem from foreclosure or any other rights of redemption in connection with foreclosure -of, or exercise of any power of sale under, this Deed of Trust; (d) any statute of limitations now or at any time hereafterin force; or (e) any right to require marshalling of -assets by the Seneficiary. 2.12 Assignmentof Rents and Leases. The Grantor assigns and transfers to the Beneficiary, as additional security for the Obligations, all right, title and interest of the Grantor in and to all leases which now exist or hereafter may be executed by or on behalf of the Grantor covering the Premises and any extensions or renewals thereof, together with all Rents, it being intended that this is an absolute and present assignment of the Rents. Notwithstanding that this assignment constitutes a present assignment of leases and rents, the Grantor may collect the Rents and manage the Premises, but only if and so long as a default has not occurred. If a default occurs, the right of Grantor to collect the Rents and to manage the Premises shall thereupon automatically terminate and such right, together with other rights, powers and authorizations contained herein, shall belong exclusively to the Beneficiary. This assignment confers upon the Beneficiary a power coupled with an interest and cannot be revoked by the Grantor. Upon the occurrence of a default, the Beneficiary, at Its option without notice and without seeking or obtaining the appointment of a receiver or taking actual possession of the Premises may (a) give notice' to any tenants) that the tenant(s) should begin making payments under their lease agreement(s) directly to the Beneficiary or its designee; (b) commence a foreclosure action and file a motion for appointment of a receiver; or (c) give notice to the Grantor that the Grantor should collect all Rents arising from the Premises and remit them to the Beneficiary upon collection and that the Grantor should enforce the terms of the lease(s) to ensure prompt payment by tenant(s) under the lease(s). All Rents received by the Grantor shall be held In trust by the Grantor for the Beneficiary. All such payments received by the Beneficiary may be applied in any manner as the Beneficiary determines to payments required under this Deed of Trust, the Loan Documents and the Obligations. The Grantor agrees to hold each tenant harmless from actions relating to tenant's payment of Rents to the Beneficiary. 2.13 Fixture Filing. From the date of its recording, this Deed of Trust shall be effective as a financing statement filed as a fixture filing under the Uniform Commercial Code with respect to the Improvements and for this purpose the name and address of the debtor is the name and address of the Grantor as set forth in this Deed of Trust and the name and address of the secured party is the name and address of the Beneficiary as set forth In this Deed of Trust. The Mortgaged Property includes goods which are or may become so affixed to real property as to become fixtures. If any of the Mortgaged Property Is of a nature such that a security interest therein can be perfected under the Uniform Commercial Code, this Deed of Trust shall also constitute the grant of a security interest to the Beneficiary and serve as a Security Agreement, and Grantor authorizes the filing of any financing statements and agrees to execute other instru- ments that may be required for the further specification, perfection or renewal of such security Interest. ARTICLE Ill. RIGHTS AND DUTIES OF THE BENEFICIARY In addition to all other rights (including setoff) and duties of the Beneficiary under the Loan Documents which are expressly incorporated herein as a part of this Deed of Trust, the following provisions will also apply: 3.1 Beneficiary Authorized to Perform for Grantor. If the Grantor fails to perform any of the Grantor's duties or covenants set forth in this Deed of Trust, the Beneficiary may perform the duties or cause them to be performed, including, without limitation, signing the Grantor's name or paying any amount so required, and the cost, with interest at the default rate set forth in the Loan Documents, will immediately be due from the Grantor to the Beneficiary from the date of expenditure by the Beneficiary to date of payment by the Grantor, and will be one of the Obligations secured by 1714DID Page 4 of 9 this Deed of Trust. All acts by the Beneficiary are hereby ratified and approved, and the Beneficiary will not be liable for any acts of commission or omission, nor for any errors of judgment or mistakes of fact or law. ARTICLE IV. DEFAULTS AND REMEDIES The Beneficiary may enforce its rights and remedies under this Deed of Trust upon default. A default will occur if the Grantor fails to comply with the terms of any Loan Documents (including this Deed of Trust or any guaranty by the Grantor) or a demand for payment is made under a demand loan, or the Grantor defaults on any other mortgage affecting the Land, or if any other obligor fails to comply with the terms of any Loan Documents for which the Grantor has given the Beneficiary -a guaranty or pledge. Upon the occurrence of a default, the Beneficiary may declare the Obligations to be immediately due and payable. 4.1 Remedies. In addition to the remedies for default set forth below and in the other Loan Documents, including acceleration, the Beneficiary upon default will have all other rights and remedies for default available by law or equity. Upon a default, Beneficiary may exercise the following remedies: (a) Enforcementof Assignmentof Rentsand Leases. Beneficiary may: (i) terminate the license granted to Grantor to collect the Rents (regardless of whether Beneficiary or Trusteeshall have entered into possession of the Mortgaged Property), collect and sue for the Rents in Beneficiary's.own name, give receipts and releases therefor, and after deducting all expenses of collection, including reasonable attorneys' fees, apply the net proceeds thereof to any Obligations as Beneficiary may elect; (ii) make, modify, enforce, cancel or accept surrender of any leases, evict tenants, adjust Rents, maintain, deco- rate, refurbish, repair, clean, and make space ready for renting, and otherwise do anything Beneficiary reasonably deems advisable in connection with the Mortgaged Property; (iii) apply the Rents so collected to the operation and management of the Mortgaged Property, Including the payment of reasonable management, brokerage and attorneys' fees, or to the Obligations; and (iv) require Grantor to transfer and deliver possession of all security deposits and records thereof to Beneficiary. (b) Power of Sale. Beneficiary may require the Trustee, and the Trustee is hereby authorized and empowered, to enter and take possession of the Premises and to sell all or part of the Mortgaged Property, at public auction, to the highest bidder for cash, free from equity of redemption, and any statutory or common law right of redemption, homestead, marital share, and all other exemptions, after giving notice of the time, place and terms of such sale and of the Mortgaged Property to be sold, in accordance with applicable law, The Trusteeshall execute a conveyance to the purchaser in fee simple and deliver possession to the purchaser, which the Grantor warrants shall be given with- out obstruction, hindrance or delay. The Trustee may sell all or any portion of the Mortgaged Property, together or in lots or parcels, and may execute and deliver to the purchaser or purchasers of such property a conveyance In fee simple. The Trustee shall receive the proceeds thereof and shall apply the same as follows: (a) first, the payment of the expenses of making, maintaining and executing this trust, protection of the Mortgaged Property, including the expense of any litigation and reasonable attorneys' fees, and reasonable compensation to the Trustee; (b) second, to any advancements made by the Trustee or the Beneficiary pursuant hereto, with interest thereon; (c) third, to the payment of the Obligations herein secured or intended so to be, in such order as Beneficiary shall elect, and any balance of said Obligations may be the subject of immediate suit; (d) and, fourth, should there by any surplus, Trustee will pay it to the Grantor, or to such person as may be legally entitled thereto. The sale or sales by Trusteeof less than the whole of the Mortgaged Property shall not exhaust the power of sale herein granted, and the Trustee is specifically empowered to make successive sale or sales under such power until the whole of the Mortgaged Property shall be sold; and if the proceeds of such sale or sales of less than the whole of the Premises shall be less than the aggregate of the Obligations and the expenses thereof, this Deed of Trust and the lien, security interest and assignment hereof shall remain in full force and effect as to the unsold portion of the Mortgaged Property; provided, however, that Grantor shall never have any right to require the sale or sales of less than the whole of the Mortgaged Property, but Beneficiary shall have the right at its sole election, to request the Trustee to sell less than the whole of the Mortgaged Property. Beneficiary may bid and become the purchaser of all or any part of the Mortgaged Property at any such sale, and the amount of Beneficiary's successful bid may be credited on the Obligations. In the event of a foreclosure of this Deed Trust, whether pursuant to the power of sale granted herein or pursuant to court decree, the Grantor shall remain liable for any deficiency. (c) Judicial and Other Relief. Beneficiary or Trustee may proceed by a suit or suits in equity or at law, whether for the specific performance of any covenant or agreement herein contained or in aid of the execution of any power herein granted, or for any foreclosure hereunder or for the sale of the Mortgaged Property under the judgment or decree of any court or courts of competent jurisdiction. (d) Entry on Premises; Tenancy at Will. (ij-Beneficiary may enter tnta-and-uporrand-take-possessionef-all-or-any-part-of-the_Mortgaged_P_r-opaq,-and_my exclude Grantor, and all persons claiming under Grantor, and its agents or servants, wholly or partly therefrom; and, 1714DID Page 5 of 9 holding the same, Beneficiary may use, administer, manage, operate, and control the Mortgaged Property and may exercise all rights and powers of Grantor in the name, place and stead of Grantor, or otherwise, as the Beneficiary shall deem best; and in the exercise of any of the foregoing rights and powers Beneficiary shall not be liable to Grantor for any loss or damage thereby sustained unless due solely to the willful misconduct or gross negligence of Beneficiary. (ii) In the event of a trustee's or other foreclosure sale hereunder and if at the time of such sale Grantor or any other party (other than a tenant under a lease as to which the Beneficiary shall have expressly subordinated the lien of this Deed of Trust as hereinabove set out) occupies the portion of the Mortgaged Property so sold or any part thereof, such occupant shall immediately become the tenant of the purchaser at such sale, which tenancy shall be a tenancy from day to day, terminable at the will of such purchaser, at a reasonable rental per day based upon the value of the portion of the Premises so occupied (but not less than any rental theretofore paid by such tenant, com- puted on a daily basis). An action of forcible detainer shall lie if any such tenant holds over a demand in writing for possession of such portion of the Premises. (a) Receiver. Beneficiary may make application to a court of competent jurisdiction, as a matter of strict right and without notice to Grantor or regard to the adequacy of the Mortgaged Property for the repayment of the Obligations, for appointment of a receiver of the Mortgaged Property, and Grantor does hereby irrevocably consent to such appointment. Any such receiver shall have all necessary and proper powers and duties of receivers in similar cases, including the full power to rent, maintain and otherwise operate the Mortgaged Property upon such terms as may be approved by the court. (f) Remedies Cumulatfve, Concurrent and Nonexclusive. If the Obligations are now or hereafter further secured by chattel mortgages, other deeds of trust, security agreements, pledges, contracts of guaranty, assignments of leases, or other security, Beneficiary may, at its option, exhaust its remedies under any one or more of said instru- ments and this Deed of Trust, either concurrently or independently, and In such order as Beneficiary may determine. Beneficiary shall have all rights, remedies and recourses granted In the Loan Documents and available to it at law or equity (including, without limitation, those granted by the Uniform Commercial Code), and same (a) shall be cumula- tive, concurrent, and nonexclusive, (b) may be pursued separately, successively or concurrently against Grantor or others obligated for the Obligations, or any part thereof or against any one or more of them, or against the Mortgaged Property, at the sole discretion of Beneficiary, and (c) may be exercised as often as occasion therefor shall arise, it being agreed by Grantor that the exercise of or failure to exercise any of same shall in no event be construed as a waiver or release thereof or of any other right, remedy or recourse, (g) Waiver by the Beneficiary. The Beneficiary may permit the Grantor to attempt to remedy any default without waiving its rights and remedies hereunder, and the Beneficiary may waive any default without waiving any other sub- sequent or prior default by the Grantor. Furthermore, delay on the part of the Beneficiary in exercising any right, power or privilege hereunder or at law will not operate as a waiver thereof, nor will any single or partial exercise of such right, power or privilege preclude other exercisethereof or the exercise of any other right, power or privilege. No waiver or suspension will be deemed to have occurred unless the Beneficiary has expressly agreed in writing specify- ing such waiveror suspension. (h) Attorneys'.Fees and Other Costs. Attorneys' fees and other costs incurred in connection with this Deed of Trust may be recovered by the Beneficiary and included in any sale made hereunder or by judgment of foreclosure. ARTICLE V. TRUSTEE 5.1 Action by Trustee. The Trustee named herein shall be clothed with full power to act when action hereunder shall be required, and to execute any conveyance of the Mortgaged Property. In the event that the substitution of the Trustee shall become necessary for any reason, the substitution of a trustee In the place of that named herein shall be sufficient. The term "Trustee" shall be construed to mean "Trustees"whenever the sense requires. The necessity of the Trustee herein named, or any successor in trust, making oath or giving bond, is expressly waived. 5.2 Employment of Agents. The Trustee, or any one acting in it's stead, shall have, in it's discretion, authority to employ all property agents and attorneys in the execution of this trust and/or in the conducting of any sale made pursuant to the terms hereof, and to pay for such services rendered out of the proceeds of the sale of the Mortgaged Property, should any be realized; and if no sale be made or if the proceeds of sale be insufficient to pay the same, then Grantor hereby undertakes and agrees to pay the cost of such services rendered to said Trustee. Trustee may rely on any document believed by it in good faith to be genuine. All money received by the Trusteeshall, until used or applied as herein provided, be held in trust, but need not be segregated (except to the extent required by law), and the Trustee shall not be liable for interest thereon. 5.3 Indemnification of Trustee. If the Trusteeshali be made a party to or shall Intervene in any action or proceeding affecting the Mortgaged Property or the title thereto, or the interest of the Trusteeor Beneficiary under this Deed of Trust, the Trustee and Beneficiary shall be reimbursed by Grantor, immediately and without demand, for all reasonable costs, M4DIC Page 6 of 9 charges and attorneys' fees incurred by them or either of them in any such case, and the same shall be secured hereby as a further charge and lien upon the Mortgaged Property. 5.4 Successor Trustee. Beneficiary may at any time, including any time before, during or after the commencement or completion of any foreclosure proceeding, remove Trustee(with or without cause) and appoint a successor Trusteeby an instrument executed, acknowledged and recorded in the real estate records, which recording may take place before, during or after the commencement or completion of any foreclosure proceeding, and any such successor Trustee shall thereupon succeed to Trustee as Trustee hereunder as if named herein. No defect In the removal of Trustee or In the appointment of a successor or in the execution and recording of such appointment shall affect the validity thereof. Additionally, whether the recording of the successor Trustee instrument takes place before, during or after the com- mencement or completion of any foreclosure proceeding shall have no effect upon the validity of said proceeding. Trustee shall not be disqualified by reason that Trustee is an officer, employee or stockholder of Beneficiary, or has an interest in the Obligations. All parties waive any objection to Trustee having any such interest. Trustee shall be. liable only for gross negligence or willful misconduct. No Indemnity or remedy herein -conferred is exclusive of any other remedy or Indemnity, but each shalt be In addition to every other hereunder and at law or in equity. No delay or omission by Trustee or Beneficiary to exercise any right or power shall Impair such right or power or be construed as a waiver of any default or an acquiescence therein. If Trustee shall have proceeded to enforce any right by foreclosure, entry or otherwise, and such proceedings are discontinued for any reason, or shall have been determined adversely, then Grantor and Trustee shall severally and respectively be restored to their former positions and rights hereunder. ARTICLE VI. MISCELLANEOUS In addition to all other miscellaneous provisions under the Loan Documents which are expressly incorporated as a part of this Deed of Trust, the following provisions will also apply: 6.1 Term of Deed of Trust This Deed of Trust shall continue in full force and effect until this Deed of Trust is released. 6.2 Time of the Essence. Time Is of the essence with respect to payment of the Obligations, the performance of all covenants of the Grantor and the payment of taxes, assessments, and similar charges and insurance premiums. 6.3 Subrogation. The Beneficiary will be subrogated to the lien of any mortgage or other lien discharged, in whole or in part, by the proceeds of the Note or other advances by the Beneficiary, in which event any sums otherwise advanced by the Beneficiary shall be immediately due and payable, with interest at the default rate set forth in the Loan Documents from the date of advance by the Beneficiary to the date of payment by the Grantor, and will be one of the Obligations secured by this Deed of Trust. 6.4 Choice of Law. This Deed of Trust will be governed by the laws of the state in which the Mortgaged Property is located. For all other purposes, the choice of law specified in the Loan Documents will govern. 6.5 Severability, Invalidity or unenforceability of any provision of this Deed of Trust shall not affect the validity or enforceabilityof any other provision. 6.6 Entire Agreement. This Deed of Trust is Intended by the Grantor and the Beneficiary as a final expression of this Deed of Trust and as a complete and exclusive statement of its terms, there being no conditions to the full effectiveness of this Deed of Trust. No parol evidence of any nature shall be used to supplement or modify any terms. 6.7 Joint Liability; Successors and Assigns. If there is more than one Grantor, the liability of the Grantors will be joint and several, and the reference to "Grantor" shall be deemed to refer to each Grantor and to all Grantors. The rights, options, powers and remedies granted in this Deed of Trust and the other Loan Documents shall extend to the Beneficiary and to its successors and assigns, shall be binding upon the Grantor and its successors and assigns, and shall be applicable hereto and to all renewals, amendments and/or extensions hereof. 6.8 indemnification. Except for harm arising from the Beneficiary's or the Trustee's willful misconduct, the Grantor hereby indemnifies and agrees to defend and hold the Beneficiary and the Trustee harmless from any and all losses, costs, damages, claims and expenses (including, without limitation, attorneys' tees and expenses) of any kind suffered by or asserted against the Beneficiary or the Trustee relating to claims by third parties arising out of the financing provided under the Loan Documents or related to the Mortgaged Property (including, without limitation, the Beneficiary's failure to perform its obligations relating to Environmental Matters described In Section'2.8 above) or the exercise by the Beneficia- ry or the Trustee of any of their respective powers, rights and remedies under this Deed of Trust. This indemnification and hold harmless provision wilt survive the termination of the Loan Documents and the satisfaction of this Deed of Trust and Obligations due the Beneficiary. 6.9 Notices. Notice of any record shall be deemed delivered when the record has been (a) deposited in the United States Mall, postage pre -paid, (b) received by overnight delivery service, (c) received by telex, (d) received by telecopy, (e) received through the internet, or (f) when personally delivered. 6.10 Release of Rights of Homestead and Distributive Share. Each of the undersigned hereby relinquishes all 1714DID Page 7 of 9 rights of homestead and distributive share in and to the Mortgaged Property and waives all rights of exemption as to any of the Mortgaged Property. 6.11 Copy. The Grantor hereby acknowledges the receipt of a copy of this Deed of Trust, together with a copy of each promissory note secured hereby, and all other documents executed by the Grantor in connection herewith. 6.12 Usury Savings Clause. Notwithstanding anything herein or in the Note to the contrary, no provision contained herein or in the Note which purports to obligate the Grantor to pay any amount of interest or any fees, costs or expenses which are in excess of the maximum permitted by applicable law, shall be effective to the extent that it calls for the payment of any interest or other sums in excess of such maximum. All agreements between the Grantor and the Beneficiary, whether now existing or hereafter arising and whether written or oral, are hereby limited so that in no contingency, whether by reason of demand for payment of or acceleration of the maturity of any of the Indebtedness secured hereby or otherwise, shall the interest contracted for, charged or received by the Beneficiary exceed the maximum amount permissible under appllcable law. If, from any circumstance whatsoever, interest would otherwise be payable to the Beneficiary In excess of the maximum lawful amount, the interest payable to the Beneficiary shall be reduced to the maximum amount permitted under applicable law; and if from any circumstance the Beneficiary shall ever receive anything of value deemed interest by applicable law in excess of the maximum lawful amount, an amount equal to any excessive interestshall at the Beneficiary's option, be refunded to the Grantor or be applied to the reduction of the principal balance of the indebtedness secured hereby and not to the payment of interest or, if such excessive Interest exceeds the unpaid balance of principal indebtedness secured hereby, such excess shall be refunded to the Grantor. This paragraph shall control all agreements between the Grantor and the Beneficiary. 6.13 Riders. The rider(s) attached hereto and recorded together with this Deed of Trust are hereby fully incorporated Into this Deed of Trust. [Check applicable box(es)] ❑ Condominium Rider❑Second Deed of Trust Rider ®Construction Loan Rider[:] Other(s) (Specify) IN WITNESS WHEREOF, the undersigned has/have executed this Deed of Trust asQfpREL 20, 2007 Millenium Group LLC ([ndlvldual Grantor) Grantor Name (Organization) Printed Name N/A (individual Grantor) Printed Name N/A a1daho limitedliAbili co E3y William D. Loveland Name and Title -Member By Name and Title . (Grantor Address) 6051 North Eagle Boise, YD 83713 (Beneficiary Address) 555 SW OAK PORTLAND, OR 97204 [NOTARIZATION ON NEXT PAGE] 1714DID Page 8 of 9 STATE OF [W V COUNTY OF--A-aA ss. On 2-0 * , before me personally appea%Mliam D . Loveland to me known to be the person(s) described in and who executed the foregoing instrument and known to me to be Member executing on behalf (Type of authority or title, if any, e.g., officer, vice president, trustee; If an individual-, a married Individual, a single individual) Of Millenium GKOU2 LLC (Name of entity on whose behalf the dcoument was executed; use Individual) a Idaho limited liabilitycom an ,and State of organizat on and type of organization, use N/A if in ivi ual) acknowledged that he/she/they executed the same as the free act and deed of such individuals)/entity . (SEAL) M.1(� %�tp'4�: Not* Public 'e 1ZOTA,�,SL My term expires 3 _ Za 1 AUB LIG �. OF I'D 1714DID Page 9 of 9 CONSTRUCTION LOAN RIDER TO DEED OF TRUST 5824105232 Grantor/Trustor: Miilenium Group LLC Trustee: U.S. BANK TRUST COMPANY, N.A. Beneficiary: U. S . BANK N.A. The following provisions are hereby made a part of the Deed of Trust to which this Rider is attached: Cessation of Construction. The loan secured hereby was obtained to assist in financing building construction or remodeling, or land development, or other improvements to the Premises (as provided in the Construction Loan Agreement between Grantor/Trustor and Beneficiary of even date with the note evidencing such loan, which is made a part hereof by this reference, which no third party is entitled to rely upon) and: (a) If such construction, remodeling, development, or improvement shall not, in accordance with plans and specification approved by Beneficiary, be completed prior to the expiration date established by Beneficiary or (b) If work on the same shall cease before completion and remain abandoned for a period of thirty consecutive days; then the existence of either circumstance shall constitute an event of default under the terms of this instrument, and at any time thereafter, said note and the whole indebtedness secured hereby shall, at the option of the Beneficiary and without notice to Grantor/Trustor (such notice being hereby expressly waived), become due and collectible at once by foreclosure or otherwise. In the event of such cessation or abandonment of work as aforesaid, Beneficiary may, at its option, also enter upon the Premises and complete such improvements and Grantor/Trustor hereby gives to Beneficiary full power and authority to make such entry and to enter into such contracts or arrangements as it may consider necessary to complete the same. All monies expended by Beneficiary in connection with completion of said improvements shall be added to the indebtedness hereby secured and shall be payable by Grantor/Trustor Immediately and without demand, with interest at the default rate specified in the Note. Beneficiary shall have the right to enter upon the Premises at any and all times to inspect the same. Construction Mortgage. This Deed of Trust shall be deemed to be a construction mortgage, as that term is defined in the Uniform Commercial Code, as amended, securing an obligation incurred for the construction of an improvement on the Land, which may include the acquisition cost of the Land, and any notes issued in extension or renewal thereof or substitution therefor. If and to the extent that any of such actions could, under the laws of the state in which the Land is located, form the basis of or result in a security interest in or lien against the Land or any Improvements thereon having priority over this Deed of Trust, Grantor affirms, acknowledges and warrants that prior to the recordation of this -Deed of Trust in the real property records of the county or counties where the Land is located, no contract will have been entered into nor will any improvements have been constructed upon the Land, nor will any material have been delivered to the Land in regard to the project for which the loan or loans evidenced by the Note have been made. It is understood and agreed that funds are to be advanoed upon the Note in accordance with a Construction Loan Agreement made by and between the Grantor and the Beneficiary of even date herewith, which said Construction Loan Agreement is Incorporated herein by reference to the same extent and effect as if fully set forth herein and made a part of this Deed of Trust. This Deed of Trust secures the payment of all sums and the performance of all covenants required by Grantor by said Construction Loan Agreement, and on the failure of Grantor to keep and perform all the covenants, conditions and agreements of said Construction Loan Agreement, the principal sum and all interest and other charges provided for herein and secured hereby shall, at the option of the Beneficiary of this Deed of Trust, become due and payable, anything herein contained to the contrary notwithstanding. 3632DOT Ous bancorp 2oc1 B1 8/02 AFFIDAVIT OF LEGAL INTEREST STATE OF IDAHO ) COUNTY OF ADA ) �/► �� � i�'cl —� ��� (address) (city) (state) being first duly sworn upon, oath, depose and say: That I am the record owner of the property described on the attached, and I grant my permission to: (name) (address) to submit the accompanying application(s) pertaining to that property. 2. I agree to indemnify, defend and hold the City of Meridian and its employees harmless from any claim or liability resulting from any dispute as to the statements contained herein or as to the ownership of the property which is the subject of the application. 3. I hereby grant permission to City of Meridian staff to enter the subject property for the purpose of site inspections related to processing said application(s). Dated this day of (Signature) SUBSCRIBED AND SWORN to before me the day and year first above written otary Public for Idaho) t * Residing t: )* ♦p1b�G My Commission Expires: & ' 23 -2 8 Citv of Meridian Pre -application Meeting Notes Date: lZ ►o -01 Project/Subdivision Name: Keno luti5—n RU n Applicant/Contact: fan El J City Staff: _ S6ny- ('Qleb f SCAfifi _ Location: N 2_4 S . tv�; l►e.n; u nn „Jy Existing Zoning: L o Contiguous and Within AOI (AZ only): Proposed Zoning: — Number of Units and/or Lots: Property Size: 1. 2SI a-c'-e-s Dwelling Type (if residential): Surrounding Uses: -c,--, sckov ) Comprehensive Plan Designation(s): fir, �i�dQ�h'0.1 < <t Street Buffers and/or Land Use Buffers: lo' buffer at�^.kc� M�i�eni um Open Space/Amenities/Pathways: — J— Street System/Stub Streets/Access: access .6 ^ a\A�►+en�J m wy Sewer and Water Service: -- Topography/Hydrology/Floodplain Issues: Canals/Ditches/Inigation and/or Hazards: History: Additional Meeting Notes: �n (.� -� r h r->y- �� .6 C'0,-V d 0 Other Agencies/Departments to Contact (circle): Ada County Highway District Nampa and Meridian Irrigation Parks Department Idaho Transportation Department Settlers Irrigation Public Works Department Sanitary Services Corporation Fire Department Building Department Central District Health Police Department Other: Applications Required (circle all that apply): Accessory Use Design Review ho Alternative Compliance Final Plat Modification Time Extension Annexation Certificate of Zoning Compliance Misc_ (DA Modification) Planned Unit Development UDC Text Amendment Vacation Comp Plan Map Amendment Preliminary Plat Variance Comp Plan Text Amendment Private Street Other: Conditional Use Permit Rezone Additional Pre -Application Conference (circle one): Required of equire Anticipated Submission Date: Anticipated Hearing Date: NOTES: 1) Applicants are required to hold a neighborhood meeting, in accordance with UDC 11-5A-5C, prior to submittal of an application,requiring a public hearing. Z) Except for UDC Text Amendments, Comprehensive Plan Text Amendments and Vacation applications, an other applications requiring a public hearing shall be posted in accordance with UDC 11-5A-5 D. 3) The information provided during this meeting is based on current City Code and Comprehensive Plan. Any subsequent changes to City Code and/or the Comprehensive Plan may affect your submittal and/or application. This pre -application meeting shall be valid for 6 months. Donna Wilson From: Jerry Hastings ohastings@adaweb.net] Sent: Thursday, December 27, 2007 1:18 PM To: Donna Wilson Subject: RE: Subdivision Name Reservation - Medical Millennium Condominiums Attachments: image001.gif December 27, 2007 Donna Wilson The Landgroup Inc. RE: Subdivision Name Reservation: "Medical Millennium Condominiums" Dear Donna, At your request, I will reserve the name "Medical Millennium Condominiums" for your project. I can honor this reservation only as long as your project is in the approval process. Final approval can only take place when the final plat is recorded. Sincerely, Jerry Hastings, P.L.S. County Surveyor Ada County, Idaho 287-7912 From: Donna Wilson [mailto:donna@thelandgroupinc.com] Sent: Thursday, December 27, 2007 10:01 AM To: Jerry Hastings Subject: RE: Subdivision Name Reservation Jerry, The property is located at : 1828 S. Millennium Way, Meridian Id Owners of record are: Millennium Group LLC Section 20 T.3N, RAE. Parcel # R7406020030. Please confirm with the information provided that "Medical Millennium Condominiums" is reserved for the above referenced property/owner. Thank you, Donna From: Jerry Hastings [mailto:jhastings@adaweb.net] Sent: Thursday, December 27, 2007 9:51 AM To: Donna Wilson Subject: RE: Subdivision Name Reservation Donna, the name "Medical Millennium Condominiums" will work. I still need the location of the property as well as the owner. Thanks, Jerry. Jerry Hastings, P.L.S. County Surveyor Ada County, Idaho CITY OF _ M ndian It IDAHO March 21, 2007 Jason Densmer, F.E. MAYOR The Land Group, Inc. Tammy de Weerd 462 E. Shore Drive, Suite 100 CITY COUNCIL MEMBERS Eagle, ID 83616 Keith Bird RE: Resolution Park Medical Office — Review Approval Joseph W. Borton pp Charles M. Rountree David Zaremba Dear Jason; We reviewed the sanitary sewer and domestic water construction plans you submitted for this CITY DEPARTMENTS development and approve of them for construction purposes. By stamping and signing the City Attorney/HR improvement plans, the Registered Professional Engineer ensures the City that the plans 703 Main Street conform to all City standards and policies. The City must specifically and previously approve 898-5503 (City Attorney) an variances or waivers to these standards and g, Acceptance 898-5503 (HR} Y policies in writing, Acc tance of the Fax 884-8723 improvement plans by the City does not relieve the Registered Professional Engineer of these Fire responsibilities. This approval shall expire one year from the date of this letter. If construction 540 E. Franklin Road has not commenced by the expiration date, plans must be resubmitted for review and approval 888-1234 / fax 895-0390 before construction may proceed. You may schedule a pre -construction meeting with us after you receive roadway plan approval from Ada County Highway District, plan approval from the Parks & Recreation State of Idaho Department of Environmental Quality, and pressurized irrigation plan approval 11 W. Bower Street from the entity having jurisdiction over its design 888-3579 / fax 888-6854 gn and construction. Planning This development is within the City's urban service planning boundary. Our water distribution 660 E. Watertower Lane system can provide domestic water services, and the minimum required fire flow (15000PM), Suite 202 884-5533 /fax 888-6854 r5' sewage and we can accept the sanitary sews a wastes for treatment at our sewage facility. These Police determinations have been made by use of computer models developed for our facility plan 1401 E. Watertower Lane Please provide five (5) sets of "Construction Plans" to my office for distribution. All plans 888-6678 /fax 846-7366 being used on the job site must have the City of Meridian Approved for Construction stamp Public Works affixed to them. Please note that the contractor selected for the work associated with this 660 E. Watertower Lane approval must hold a valid State of Idaho Public Works Contractors License with the suite200 898-5500 /fax 898-9551 appropriate license for installation of public sewer and water facilities. At job completion, record drawings (print and electronic media) and final construction costs must be submitted to - Building the Public Works Department. The new mains will not be considered final until these items are 660 E. Watertower Lane received. Please call if you have any questions. Suite 150 887-2211 / fax 887-1297 Sincer , - Sewer (WWTP) 3401 N. Ten Mile Road 888-2191 / fax SM-0744 (y// - Water Len Grady, P.E. 2235 N. W. 8th Street Meridian City Engineer 888-5242 / fax 884-1159 cc: File, Water Dept, Sewer Dept. CITY HALL 33 EAST IDAHO AVENUE MERIDIAN, IDAHO 83642 (208) 888-4433 C7rY CLERK - FAX 888. 4218 FINANCE & UTILITY BILLING — FAX 887- 4813 MAYOR'S OFFICE -- FAX 884 0110 CONDOMINIUM DECLARATIONAND COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATIONS FOR MEDICAL MILLENNIUM CONDOMINIUMS ARTICLE 1. DEFINITIONS. Section 1.1 Words Defined. For the purposes of this Declaration and any amendments hereto, the following definitions shall apply: Section 1.1.1 Articles shall mean the articles of incorporation of the Association. Section 1.1.2 Association shall mean the Medical Millennium Condominium Association, Inc., an Idaho non-profit corporation. Section 1.1.3 Board shall mean the board of directors of the Association. Section 1.1.4 Bylaws shall mean the bylaws of the Association. Section 1.1.5 Common Areas shall mean the Common Areas described in Articles 6 and 7. Section 1.1.6 Condominium shall mean a separate interest in a Unit, together with its undivided interest in the Common Areas (expressed as a percentage of the entire ownership interest in the Common Areas as set forth in Article 9 below), together with all appurtenances. Section 1.1.7 Condominium Plat shall mean the plat recorded with respect to the Property and any amendments, corrections and addenda thereto subsequently recorded. A copy of the initial Condominium Plat is attached hereto as Exhibit B, and made a part hereof. Section 1.1.8 Condominium Statute shall mean the Condominium Property Act of the State of Idaho (S.L. 1965, Chapter 225), presently codified in Chapter 15, Title 55, Idaho Code, as I.C. Section 55-1501 through I.C. Section 55-1527, and amendments thereto. Section 1.1.9 Declarant shall mean Millenium Group LLC, and its representatives, successors and assigns. Section 1.1.10 Declaration shall mean this Declaration and Covenants, Conditions Restrictions and Reservations for Medical Millennium Condominiums, as it may from time to time be amended. Section 1.1.11 Manag_ing_Agent shall mean the Person designated by Declarant under Section 15.2 or by the Board under Section 16.4. CONDOMINIUM DECLARATION, Page 2 Section 1.1.12 Mortgage shall mean a recorded mortgage, deed of trust or other security instrument by which a Condominium is encumbered. Section 1.1.13 Mortgagee shall mean the beneficial owner, or the designee of the beneficial owner, of an encumbrance on a Unit created by a Mortgage, or the insurer or guarantor of such Mortgage. Section 1.1.14 Owner shall mean the legal owner of a Condominium Section 1.1.15 Person shall mean an individual, corporation, partnership, association, trustee, or other legal entity. Section 1.1.16 Prope11y shall mean the land, building and all improvements and structures now or hereafter placed on the land described in Article 3 herein below. Section 1.1.17 Transition Date is that date defined in Section 15.1. Section 1.1.18 Unit shall mean a Unit composed of a suite of rooms and other enclosed spaces in a building. The physical boundaries of the Units are the interior face of stud framing, the interior of windows and doors, the bottom side of ceilings and topside of concrete slab floors. The Unit includes both the portion of the building so described and the air space so encompassed. The following are not part of the Unit: columns, floors, roofs, foundations, central services such as pipes, ducts, flues, conduits, wires, and other utility installations, wherever located, except the outlets thereof when located within the Unit. In interpreting this Declaration, the Plat or any deeds, the existing physical boundaries of the Unit as originally constructed or as re -constructed in lieu thereof shall be conclusively presumed to be its boundaries rather than the metes and bounds expressed or depicted in this Declaration, the Plat or deeds, regardless of settling or lateral movement of the building and regardless of minor variance between boundaries shown in this Declaration, the Plat or deeds, and the actual boundaries of Units in the building. Section 1.2 Form of Words. The singular form of words shall include the plural and the plural shall include the singular. Masculine, feminine and neuter pronouns shall be used interchangeably. Section 1.3 Statutory Definitions. Some of the terms defined above are also defined in the Condominium Statute. The definitions in this Declaration are not intended to limit or contradict the definitions in the Condominium Statute, insofar as it might apply in a particular situation. If there is any inconsistency or conflict in a situation where the Condominium Statute is intended to apply and govern, the statutory definitions will prevail over those set forth herein to the extent necessary to give full force and effect to the Statute. ARTICLE 2. SUBMISSION OF THE PROPERTY TO THE CONDOMINIUM STATUTE. Declarant, being the record owner of the Property, makes this Declaration for the purpose of submitting the Property to the condominium form of ownership and to the provisions of the Condominium Statute. Declarant declares that the Property shall be held, used, conveyed, encumbered, leased, occupied, rented and improved subject to the covenants, conditions, restrictions, reservations and easements stated in this Declaration, all of which are in furtherance of the division of the Property into Condominiums, and shall be deemed to run with the land and be a burden and benefit to Declarant and all Persons who own or CONDOMINIUM DECLARATION, Page 3 acquire an interest in the Property or any part thereof, and their grantees, successors, heirs, executors, administrators and assigns. ARTICLE 3. DESCRIPTION OF LAND. The land on which the building and improvements provided for in this Declaration are or will be located consists of that certain real property located in Ada County, Idaho, legally described in the attached Exhibit A, which is made a part hereof. ARTICLE 4. DESCRIPTION OF BUILDING. Unless amended as hereinafter set forth, there will be one (1) building initially containing four (4) Units in the Property. The building is further depicted and its location shown on the Condominium Plat. ARTICLE 5. UNIT NUMBERS, LOCATION AND DESCRIPTION. Each Unit is identified by an assigned number, initially from 1 through 4. The location and configuration of each Unit are shown on the Condominium Plat. ARTICLE 6. COMMON AREAS. Section 6.1 Description. The Common Areas consist of the entire Property, except the Units, including, without limiting the generality of the foregoing, the following components: (a) The land described in Article 3 above; (b) The HVAC systems, roofs, foundations, studding, joists, beams, supports, bearing and demising walls (excluding interior partitions of Units, if any), and all other structural parts of the building; (c) The pipes, wires, conduits, duct work, plumbing fixtures, and all other fixtures, furnishings and equipment located in the Common Areas; (d) The grounds, trees, gardens, landscaped areas, monument signs, exterior fixtures, walkways, and driveways; (e) Parking spaces and parking areas; and (t) Any other areas depicted on the Condominium Plat. Section 6.2 Use. Subject to the limitations described below, each Owner shall have the right to use the Common Areas in common with all other Owners. The right to use the Common Areas shall extend not only to each Owner, but also to his/her/its agents, servants, tenants, family members, invitees and licensees. The right to use the Common Areas shall be governed by the provisions of the Condominium Statute, this Declaration, the Bylaws and the rules and regulations of the Association. The Declarant and the Association shall have the CONDOMINIUM DECLARATION, Page 4 right to grant easements for utilities or for other purposes consistent with the intended use of the Common Areas. ARTICLE 7. LIMITED COMMON AREA. Some Common Areas, called Limited Common Areas, are reserved for the exclusive use of a specific Unit Owner. There is only one Limited Common Area located on the Property. This Limited Common Area is for the exclusive use of the Owner of Unit 1. The location and configuration of this Limited Common Area is shown on the Condominium Plat. Conveyance of Unit 1 includes the exclusive right to use this Limited Common Area. The exterior of this Limited Common Area shall be maintained by the Association, whereas the interior thereof shall be maintained by the Owner of Unit 1, at his/her/its sole cost and expense. ARTICLE 8. ACCESS. Each Unit has direct access to the Common Areas. There shall be no restriction upon the right of ingress to, and egress from, each Unit, which right shall be perpetual and appurtenant to the respective Units. ARTICLE 9. PERCENTAGE OF OWNERSHIP INTEREST IN COMMON AREAS. For the purpose of meeting certain requirements of the Condominium Statute, the percentage of ownership interest in the Common Areas appertaining to each Unit and its Owner for all purposes, including voting, tax assessment and liability, is set forth in the attached Exhibit C, which is made a part hereof. Such percentage has been fixed by taking as a basis the value of each Unit in relation to the value of the Property as a whole. ARTICLE 10. PARKING. Parking shall be permitted on the Common Areas in such parking spaces as have been provided and marked for such use; provided that such parking areas may be used only for the parking of operable motor vehicles. Use of such parking spaces shall be subject to reasonable rules and regulations adopted by the Board. Improperly parked vehicles may be removed by the Association at the risk and expense of the Owner thereof. ARTICLE 11. PERMITTED USES; MAINTENANCE OF UNITS; CONVEYANCES. Section 11.1 Medical and Office Use. The building and Units are intended for and restricted to office and medical use only, on an ownership, rental or lease basis and for other reasonable activities normally incident to such use, and for the purposes of operating the Association and managing the Property, if required; provided that for so long as Declarant shall own any Unit, Declarant shall have the right to approve or disapprove any use of a Unit, which use, in the exercise of Declarant's sound business judgment, is unsuitable for the Property. Section 11.2 Leases. Any lease or rental agreement must be in writing and must provide that its terms shall be subject in all respects to the provisions of this Declaration and the Bylaws and rules and regulations of the Association and that any failure by the tenant to comply with the terms of such documents, rules and regulations shall be a default under the lease or rental agreement and that the Unit Owner grants to the Board and/or Managing CONDOMINIUM DECLARATION, Page 5 Agent the authority to evict the tenant on the Unit Owner's behalf for such default upon only such notice as is required by law; if any lease does not contain the foregoing provisions, such provisions shall nevertheless be deemed to be a part of the lease and binding upon the Unit Owner and the tenant by reason of it being stated herein. Neither the Board nor the Managing Agent shall be liable to the Unit Owner or the tenant for any eviction under this Section that is made in good faith. Other than as stated in this Section, there is no restriction on the right of any Unit Owner to lease or otherwise rent his/her/its Unit. Section 11.3 Maintenance of Units. Each Unit Owner shall, at the Owner's sole expense, keep the interior of said Owner's Unit and its equipment, appliances and appurtenances in a clean, neat and sanitary condition, free of rodents and pests, and in good order, condition and repair, and shall do all interior redecorating and interior painting at any time necessary to maintain the good appearance and condition of his/her/its Unit. Each Owner shall be responsible for the maintenance, repair or replacement of any plumbing fixtures, water heaters, fans, equipment, electrical fixtures or appliances which are in the Unit, and shall replace any glass in the windows and in the exterior doors of the Unit that become cracked or broken from inside the Unit. No Owner may modify or decorate the exterior of the building or screens, doors, awnings or other portions of any Unit visible from outside the Unit without the prior written consent of the Board, or in accordance with rules or regulations of the Board. No exterior radio or television antennae or satellite dishes may be installed without the prior written consent of the Board, which such consent may be made subject to such conditions as the Board may determine are reasonably appropriate. Section 11.4 Maintenance by Association. Except where the Owners are responsible for maintenance and repair under Section 11.3, the Association shall be responsible for the maintenance and repair of all the Common Areas including, without limitation, the following: the exterior surfaces of the building and improvements located on the Property, including, without limitation, the exterior glass in windows and doors (if broken from the outside), painting or staining of the exterior as often as necessary, the replacement of trim and caulking and the maintenance and repair of roofs; all other Common Area improvements and facilities; utility lines through the Common Areas to the point where utility companies assume maintenance responsibility; water system, lines and facilities serving the Property (unless accepted for maintenance by a governmental entity or water district); the irrigation water system; sewer lines, manholes, and other sewer facilities (unless accepted for maintenance by a governmental entity or sewer district); drainage sumps, seepage beds and other drainage facilities, including but not limited to those located in and under the parking areas; lights in the Common Areas and electricity lines serving the same; parking areas and road accesses; mailboxes; the landscaping; and all other improvements or materials located within or used in connection with the Common Areas. The Association shall maintain in a proper first class manner all landscaping and natural vegetation, if any, constituting part of the Common Areas, including assuring the preservation of good visual continuity between landscaped areas and natural vegetation. The specification of duties of the Association with respect to the foregoing items shall not be construed to limit its duties with respect to maintenance and control of the Common Areas. The cost of such management, maintenance and repair by the Association shall be borne as provided in Article 17. Section 11.5 Effect on Insurance and Compliance with Laws. Nothing shall be done or kept in any Unit or in any Common Areas that will increase the rate of insurance on the Property without the prior written consent of the Board. Nothing shall be done or kept in any Unit or in any Common Areas that will result in the cancellation of insurance on any part of the Property, or that would be in violation of any laws. CONDOMINIUM DECLARATION, Page 6 Section 11.6 Alteration of Common Area. Nothing shall be altered or constructed in or removed from any Common Areas except upon the prior written consent of the Board. Section 11.7 Signs. No sign of any kind shall be displayed to the public view on or from any Unit or Common Areas without the prior written consent of the Board; provided that the Board shall designate an area or areas for display of "For Sale" signs. This Section shall not apply to Declarant. Section 11.8 Offensive Activitv. No noxious or offensive activity shall be carried on in any Unit or Common Areas, nor shall anything be done therein that may be or become an annoyance or nuisance to other Owners. Section 11.9 Conveyances, Notice Required. The right of a Unit Owner to sell, transfer or otherwise convey a Unit shall not be subject to any right of approval, disapproval, first refusal or similar restriction by the Association or the Board, or anyone acting on their behalf. ARTICLE 12. ENTRY FOR REPAIRS. The Association and its agents or employees may enter any Unit and Common Areas to effect repairs, improvements, replacements or maintenance deemed by the Board to be necessary in the performance of its duties, to do necessary work that a Unit Owner has failed to perform, or to prevent damage to the Common Areas or to another Unit. Except in cases of emergency that preclude advance notice, the Board shall cause the Unit occupant to be given notice and an explanation of the need for entry as far in advance of entry as is reasonably practicable. Such entry shall be made with as little inconvenience to the Owners and occupants as practicable. Any damage caused by such entry shall be repaired by the Association as a common expense unless the repairs or maintenance were necessitated by the acts or default of the Owner or occupant of the Unit entered in which event the costs of the repairs or maintenance shall be specially assessed to that Unit as a limited assessment. ARTICLE 13. ASSOCIATION. Section 13.1 Form of Association The Association is an Idaho nonprofit corporation and is hereby designated the "Management Body" within the meaning of the Condominium Statute. The rights and duties of the Owners and of the Association shall be governed by the provisions of the Condominium Statute and this Declaration. Section 13.2 Articles and Bylaws. A copy of the Association's Articles of Incorporation and a copy of its Bylaws are attached hereto as Exhibits D and E, respectively, and made a part hereof. Declarant may amend the Association's Bylaws from time to time until the Transition Date. After the Transition Date, the Articles or Bylaws may be CONDOMINIUM DECLARATION, Page 7 amended by the affirmative vote of fifty-one percent (51 %) of the Owners (based upon the percentage of ownership interests in the Common Areas) at any duly called regular or special meeting of the Association. Section 13.3 Qualification for Membership. Each Owner of a Unit (including Declarant) shall be a member of the Association and shall be entitled to one membership for each Unit owned. Ownership of a Unit shall be the sole qualification for membership in the Association. Section 13.4 Transfer of Membership. The Association membership of each Owner (including Declarant) shall be appurtenant to the Unit giving rise to such membership, and shall not be transferred in any way except upon the transfer of title to the Unit and then only to the transferee of title to the Unit. Any attempt to make a prohibited transfer shall be void. Any transfer of title to a Unit shall operate automatically to transfer the membership in the Association to the new Owner. Section 13.5 Number of Votes. The total voting power of all Owners shall be one hundred (100) votes and the total number of votes available to the Owner of any one Unit shall equal the percentage of undivided interest in the Common Areas appertaining to the Unit. A Person (including Declarant) who owns more than one Unit shall have the votes appertaining to each Unit owned. Upon the division of any Unit as provided for in this Declaration, the voting percentage of the Unit being divided shall be reallocated accordingly. Section 13.6 Joint Owner Disputes. The vote for a Unit must be cast as a single vote; and in no event shall the percentage of votes assigned to a particular Unit be further fractionalized or split. If joint Owners are unable to agree how their vote shall be cast, they shall lose their right to vote on the matter in question. Section 13.7 Financial Statements and Audits. As soon as is convenient after the close of each fiscal year, the Board shall have a financial statement prepared for that year. Said statement shall be completed in time for the Association's annual meeting and in any event within ninety (90) days following the end of the fiscal year. Any Mortgagee shall, upon request, be entitled to receive the annual financial statement within ninety (90) days following the end of the fiscal year. The Board, or Persons having thirty-five percent (35%) of the voting power of the Association, may require that an audit of the Association and management books be presented at any special meeting. Any Owner, at his/her/its expense, may at any reasonable time conduct an audit of the books of the Board and Association. The holders of fifty-one percent (51 %) or more of first Mortgages shall be entitled to have such an audited statement prepared at their own expense if one is not otherwise available. Any financial statement requested pursuant to this Section shall be furnished within a reasonable time following such request. Section 13.8 Books and Records. The Board shall cause to be kept complete, detailed and accurate books and records of the receipts and expenditures of the Association, in a form that complies with generally accepted accounting principles. CONDOMINIUM DECLARATION, Page 8 Section 13.9 Inspection of Property Documents Books and Records. During normal business hours and at other reasonable times, current copies of this Declaration, the Articles, the Bylaws and other rules governing the operation of the Property shall be available for inspection by the Owners, Mortgagees (including holders, insurers or guarantors of any first Mortgage), prospective purchasers and their prospective Mortgagees, and the agents or attorneys of any of them; and, in addition, at such times, the books and records, authorizations for payment of expenditures, and all contracts, documents, papers, and other records of the Association shall be available for inspection by the Owners, Mortgagees and the agents or attorneys of either of them. Section 13.10 Appointment of Association as Attorney -in -Fact. Each Owner, by acceptance of title subject to this Declaration, hereby appoints the Association as said Owner's attorney -in -fact for the purpose of handling any losses or proceeds from condemnation, destruction or liquidation of all or a part of the Property, or from the termination of the Property as a condominium project, and for the purpose of representing the Unit Owners in any proceedings, negotiations, settlements or agreements relating thereto. ARTICLE 14. NOTICES. Section 14.1 Form and Delivery of Notice. All notices given under the provisions of this Declaration or the Bylaws or rules or regulations of the Association shall be in writing and may be delivered either personally or by mail. If delivery is made by mail, the notice shall be deemed to have been delivered on the day it has been deposited in the United States mail, first class, postage prepaid, addressed to the Person entitled to such notice at the most recent address known to the Board. Notice to the Owner of any Unit shall be sufficient if mailed to the Unit unless another mailing address has been given to the Board. Mailing addresses may be changed by notice in writing to the Board. Notices to the Board shall be given to Declarant until the Transition Date and thereafter shall be given to the president or secretary of the Association. Section 14.2 Notices to Mortgagees. Any Mortgagee may file with the Association a written request that it be given copies of notices, which request shall specify the name and address of such Mortgagee and the Unit number or address of the Unit encumbered by its Mortgage. Until such time thereafter as such Mortgagee withdraws the request or satisfies its Mortgage, the Association shall send to the requesting Mortgagee timely written notice of: (a) Any condemnation loss or any casualty loss which affects either a material portion of the Property or any Unit on which there is a Mortgage held, insured or guaranteed by such requesting Mortgagee; (b) Any delinquency in the payment of assessments or charges owed by an Owner of a Unit subject to a Mortgage held, insured or guaranteed by such requesting Mortgagee (or any other default in the performance of said Owner's obligations under any of the documents that create or govern the Property, or its rules or regulations), which delinquency or default remains uncured for a period of sixty (60) days; (c) Any lapse, cancellation or material alteration of any insurance policy maintained by the Association; CONDOMINIUM DECLARATION, Page 9 (d) Any proposed action which requires the consent of a specified percentage of Mortgagees or the consent of the Mortgagee of a particular Unit, as specified in this Declaration; (e) If expressly requested by such Mortgagee, all notices of meetings of the Association; and M If expressly requested by such Mortgagee, all other notices sent to the Owner of the Unit covered by the requesting Mortgagee's Mortgage. The provisions of this Section shall prevail over any inconsistent or contrary provisions in this Declaration or in the Articles or Bylaws. ARTICLE 15. ADMINISTRATION OF PROPERTY; RIGHTS RETAINED BY DECLARANT. Section 15.1 Transition Date. The "Transition Date" shall be the date upon which the authority and responsibility to administer and manage the Association and the Property, subject to this Declaration and the Bylaws, passes to the Association. The Transition Date will be either (1) the date designated by Declarant in a written notice to the Owners, which date may, at Declarant's election, be any date after this Declaration has been recorded; or (2) the one hundred twentieth (120th) day after Declarant has transferred title to purchasers of all Units within the Property; or (3) the tenth anniversary of the recording of this Declaration; whichever of the foregoing occurs first. Section 15.2 Declarant's Powers Until Transition Date. Until the Transition Date, Declarant shall have the full power and authority to exercise all of the rights, duties and functions of the Board and the officers of the Association, including, but not limited to, the adoption of rules and regulations, contracting for the purchase of goods and services, buying insurance, and collecting and expending all assessments and other Association funds. Declarant shall have the power to contract with an experienced professional Managing Agent and delegate to the Managing Agent all of the powers and duties of the Board that the Board is authorized to delegate under Section 16.4. All such management contracts made by Declarant shall be subject to the same requirements as are set forth in Section 16.4 for management contracts made by the Board. Any contract or lease made by Declarant or its Managing Agent (including management contracts) that would otherwise extend beyond the Transition Date shall be terminable by the Board without penalty after the Transition Date upon ninety (90) days' notice to the other party thereto. ARTICLE 16. AUTHORITY OF THE BOARD. Section 16.1 Adoption of Rules and Regulations. The Board is empowered, on behalf of the Association, to adopt, amend and revoke detailed administrative rules and regulations necessary or convenient from time to time to insure compliance with the general guidelines of this Declaration and to promote the comfortable use and enjoyment of the Property. The rules and regulations of the Association shall be binding upon all Owners and occupants and all other Persons claiming any interest in any Condominium. CONDOMINIUM DECLARATION, Page 10 Section 16.2 Enforcement of Declaration,• Attorney's Fees. The failure of any Unit Owner to comply with the provisions of the Declaration, Articles or Bylaws, shall give rise to a cause of action in favor of the Association and any aggrieved Unit Owner for the recovery of damages, or for injunctive relief, or both. The Board (or Declarant or Declarant's Managing Agent) shall have the power to enforce the provisions of this Declaration, the Articles, the Bylaws, and the rules and regulations of the Association, as the same may be lawfully amended from time to time, for the benefit of the Association. If legal action is brought to interpret or enforce compliance with the provisions of this Declaration, the Articles, the Bylaws or the rules and regulations of the Association, the prevailing party shall be entitled to judgment against the other party for its reasonable expenses, court costs and attorney's fees in the amount awarded by the court. Section 16.3 Goods and Services. The Board shall acquire and pay for, as common expenses of the Association, all goods and services reasonably necessary or convenient for the efficient and orderly functioning of the Property. The goods and services shall include (by way of illustration and not limitation) utility services for the Common Areas; policies of insurance, legal and accounting services; maintenance, repair, landscaping, gardening, and general upkeep of the Common Areas (except where the Owners have such responsibility under the provisions hereof); and all supplies, materials, fixtures, and equipment that are in the Board's judgment necessary or desirable for the operation of the Property and enjoyment of it by the Owners. The Board may hire such full-time or part-time employees as it considers necessary. Section 16.4 Managing Agent. The Board may contract with an experienced professional Managing Agent to assist the Board in the management and operation of the Property and may delegate such of its powers and duties to the Managing Agent as it deems to be appropriate, except as limited herein. The Managing Agent shall not enter any Unit (directly or through agents) without the consent of the occupant unless entry has been directed by the Board. Only the Board can approve an annual budget or a supplemental budget, and only the Board can impose a special assessment or limited assessment or authorize foreclosure of an assessment lien. Any contract with a Managing Agent shall have a term no longer than three (3) years and during such term shall be terminable by the Board without payment of a termination fee, either (1) for cause, on thirty (30) days' written notice, or (2) without cause, on ninety (90) days' written notice. Section 16.5 Protection of Property. The Board may spend such funds and take such action as it may from time to time deem necessary to preserve the Property, settle claims, or otherwise act in what it considers to be the best interests of the Property or the Association. ARTICLE 17. BUDGET AND ASSESSMENT FOR COMMON EXPENSES. Section 17.1 Fiscal Year. The Board may adopt such fiscal year for the Association as it deems to be convenient. Unless another year is adopted, the fiscal year will be the calendar year. CONDOMINIUM DECLARATION, Page 11 Section 17.2 Preparation of Budd. Not less than thirty (30) days after the end of the fiscal year, the Board shall prepare a budget for the Association for the current year. In preparing its budget, the Board shall estimate the common expenses of the Association to be paid during the year, make suitable provision for accumulation of reserves, and shall take into account any surplus or deficit carried over from the preceding year and any expected income to the Association. Declarant may prepare a budget for the remainder of the fiscal year in which this Declaration is recorded and for subsequent years until the Transition Date. If, during the year the budget proves to be inadequate for any reason, including nonpayment of any Owner's assessment, the Board may prepare a supplemental budget for the remainder of the year. Section 17.3 Periodic Assessments for Common Expenses. The sums required by the Association for common expenses as reflected by the annual budget and any supplemental budgets shall be divided into equal installments to be paid periodically, as determined by the Board, over the period of time covered by the budget or supplemental budget. Except as otherwise provided herein, the periodic installments shall be assessed against the Units (including Units owned by Declarant) and their respective Owners in proportion to their percentage of undivided interests in the Common Areas as listed in Exhibit C. Assessments begin accruing with respect to each Unit upon the closing of the initial sale of that Unit by Declarant or upon its initial occupancy, whichever occurs first; and, in any event, with respect to all completed Units (including unsold Units owned by Declarant), sixty (60) days after the conveyance by Declarant of the first Unit in the Property (or phase, if expandable). During such time as garbage collection charges and any other utility or service charges are based on the number of occupied Units, any Units owned by Declarant and not occupied shall be exempt from assessment for such charges. Section 17.4 Special Assessments. The Association has the right to levy special assessments against all Units and Owners in the event of the need for capital improvements or any shortfall in the periodic assessments discussed in Section 17.3 above. If a special assessment becomes chargeable against a Unit under the authority of this Declaration or the Bylaws, the Board shall determine the amount of such special assessment and fix the period of time in which it is to be paid. The special assessment shall be added to the Unit's periodic installment of common expenses and be included in the assessment against such Unit. Section 17.5 Limited Assessments. The Association may levy against any Owner a limited assessment equal to the costs and expenses incurred by the Association, including legal and management fees for the construction, installation, maintenance, repair and replacement to the Common Areas and equipment and facilities located thereon, including any corrective action, due to the damage by the negligent acts of an Owner, or any Person occupying a Unit with the Owner's consent, either express or implied, or for costs incurred in bringing the Owner's Unit into compliance with the provisions of this Declaration. Section 17.6 Notice of Assessment. The Board shall notify each Unit Owner in writing of the amount of assessments to be paid for his/her/its Unit and shall furnish copies of each budget on which the assessments are based to all Unit Owners and, if so requested, to their respective Mortgagees. CONDOMINIUM DECLARATION, Page 12 Section 17.7 Payment of Periodic Assessments. On or before the due date, each Unit Owner shall pay or cause to be paid to the treasurer of the Association the assessment against his/her/its Unit for that period. Any assessment not paid by the due date shall be delinquent and subject to late charges, interest charges and collection procedures as provided in Article 18 below. Section 17.8 Proceeds Belong to Association. All assessments and other receipts received by the Association pursuant to the provisions hereof shall belong to the Association. Section 17.9 Failure to Assess. Any failure by the Board or the Association to make the budget and assessments hereunder for the current year shall not be deemed a waiver or modification in any respect of the provisions of this Declaration, or a release of the Owners from the obligation to pay assessments during that or any subsequent year, and the periodic assessment amount established for the preceding year shall continue until a new assessment is established. Section 17.10 Certificate of Unpaid Assessments. Upon the request of any Owner or Mortgagee of a particular Unit, the Board will furnish a certificate in recordable form stating the amount, if any, of unpaid assessments charged to that Unit. The certificate shall be conclusive upon the Board and the Association as to the amount of such indebtedness on the date of the certificate in favor of all purchasers and Mortgagees of such Unit who rely on the certificate in good faith. The Board may establish a reasonable fee to be charged to reimburse it for the cost of preparing the certificate. Section 17.11 Reserves and Initial Capital Payment. The Board shall build up and maintain reasonable reserves for working capital, operations, contingencies, and periodic maintenance repair and replacement of improvements which the Association is obligated to maintain. Upon the initial sale of Units by Declarant, the Association shall collect from each initial purchaser an "initial capital payment" in the amount of $2000. The Declarant may collect such initial capital payments at the closing of each sale, in which event the funds so collected shall be delivered to the treasurer of the Association to provide it with necessary working capital. Such funds may be used for certain prepaid items, organizational equipment and supply costs, and for such other purposes as the Board may determine. Such initial capital payments shall be in addition to and not a prepayment of the periodic assessments due and payable under Section 17.3 above. ARTICLE 18. LIEN AND COLLECTION OF ASSESSMENTS. Section 18.1 Assessments are a Lien,• Priority. All unpaid sums assessed by the Association under the authority of this Declaration or the Bylaws (together with interest, late charges, costs and attorney's fees in the event of delinquency) shall constitute a continuing lien on such Unit and all its appurtenances from the date the assessment became due until fully paid. The lien for such unpaid assessments shall be subordinate to tax liens on the Unit in favor of any assessing agency and/or special district, and to all sums unpaid on all Mortgages, but shall have priority over CONDOMINIUM DECLARATION, Page 13 all other liens against the Unit. A Mortgagee that obtains possession through a mortgage foreclosure or deed of trust sale, or by taking a deed in lieu of foreclosure or sale, or a purchaser at a foreclosure sale, shall take the Unit free of any claims for assessments chargeable to the Unit that became due before such possession, but will be liable for the assessments that accrue after the taking of possession; in such event, the Unit's past due share of assessments shall become new assessments chargeable to all of the Owners, including the Mortgagee or foreclosure sale purchaser and their successors and assigns, in proportion to their respective percentages of undivided interest in the Common Areas; provided, however, that the Owner shall continue to be personally liable for such past due assessments, as provided in Section 18.3. For the purpose of this Section, the terms "Mortgages" and "Mortgagee" shall not mean real estate contracts or a vendor or a designee or assignee of a vendor under a real estate contract. Section 18.2 Lien May Be Foreclosed. The lien for delinquent assessments may be foreclosed by suit by the Managing Agent or the Board, acting on behalf of the Association, in like manner as the foreclosure of a Mortgage of real property. The Managing Agent or the Board, acting on behalf of the Association, shall have the power to bid in the amount owing at the foreclosure sale, and to acquire the Unit in question and hold, lease, mortgage and convey the same. Section 18.3 Assessments are Personal Obligations. In addition to constituting a lien on the Unit and all its appurtenances, all sums assessed by the Association chargeable to any Unit (together with interest, late charges, costs and attorney's fees in the event of delinquency) shall be the joint and several personal obligations of the Owner of the Unit when the assessment is made. Suit to recover personal judgment for any delinquent assessments shall be maintainable without foreclosing or waiving the liens securing them. Section 18.4 Late Charp-es and Interest on Delinquent Assessments. The Board may from time to time establish late charges and a rate of interest to be charged on assessments that may thereafter become delinquent. In the absence of another established late charge, delinquent assessments shall be subject to a late charge of $100 for each month or part thereof that the assessment shall be delinquent and bear interest at the rate of twelve percent (12%) per annum. If an assessment against a Unit is not paid when due, the Board may elect to declare all assessments against that Unit for the remainder of the fiscal year to be immediately due and payable. Section 18.5 Recovery of Attorney's Fees and Costs. In any action to collect delinquent assessments, the prevailing party shall be entitled to recover as a part of its judgment a reasonable sum for attorney's fees and expenses reasonably incurred in connection with the action, in addition to taxable costs permitted by law. Section 18.6 Termination of Utilily Service. If an assessment becomes delinquent, the Board may give notice to the delinquent Owner to the effect that unless the delinquent assessment is paid within ten (10) days (or such longer time as is specified in the notice), any or all utility services furnished to the Unit in question by the Association or under the Association's control will be severed and shall remain severed until the delinquent assessment has been paid. If the delinquency is not cured in the time specified, the Board may take the action described in the notice. CONDOMINIUM DECLARATION, Page 14 ARTICLE 19. FAILURE TO INSIST ON STRICT PERFORMANCE; NO WAIVER. The failure of any interested party in any instance to insist upon the strict compliance with this Declaration or the Bylaws or rules and regulations of the Association, or to exercise any right contained in such documents, or to serve any notice or to institute any action, shall not be construed as a waiver or a relinquishment to enforce any such term, covenant, condition or restriction. The receipt by the Board of payment of an assessment from an Owner, with knowledge of a breach by the Owner, shall not be a waiver of the breach. No waiver of any requirement shall be effective unless expressed in writing and signed for the party waiving such requirement. ARTICLE 20. LIMITATION OF LIABILITY. Section 20.1 Liability for Utility Failure etc Except to the extent covered by insurance obtained by the Board, neither the Association nor the Board (nor the Declarant or Declarant's Managing Agent) shall be liable for: the failure of any utility or other service to be obtained and paid for by the Board; or for injury or damage to Person or Property caused by the elements, or resulting from electricity, water, rain, dust or sand which may lead or flow from outside or from any parts of the building, or from any of their pipes, drains, conduits, appliances or equipment, or from any other place; or for inconvenience or discomfort resulting from any action taken to comply with any law, ordinance, or orders of a governmental authority. No diminution or abatement of assessments shall be claimed or allowed for any such utility or service failure, or for such injury or damage, or for such inconvenience or discomfort. Section 20.2 No Personal Liability. So long as a Board member, or Association committee member, or Association officer, or Declarant or the Managing Agent has acted in good faith, without willful or intentional misconduct, upon the basis of such information as is then possessed by such Person, no such Person shall be personally liable to any Owner, or to any other Person, including the Association, for any damage, loss, or prejudice suffered or claimed on account of any act, omission, error or negligence of such Person. ARTICLE 21. INDEMNIFICATION. Each Board member and the Association committee member and Association officer, and Declarant and the Managing Agent shall be indemnified by the Association against all expenses and liabilities, including attorney's fees, reasonably incurred by or imposed in connection with any proceeding to which he or she may be a party, or in which he or she may become involved, by reason of holding or having held such position, or any settlement thereof, whether or not he or she holds such position at the time such expenses or liabilities are incurred, except to the extent such expenses and liabilities are covered by any type of insurance and except in such cases wherein such Person is adjudged guilty of willful misfeasance in the performance of his or her duties; provided, however, that in the event of a settlement, the indemnification shall apply only when the Board approves such settlement and reimbursement as being for the best interests of the Association. CONDOMINIUM DECLARATION, Page 15 ARTICLE 22. INSURANCE. Section 22.1 General Requirements. The Board shall cause the Association to purchase and maintain at all times as a common expense a policy or policies of insurance necessary to provide casualty insurance; comprehensive liability insurance; worker's compensation insurance to the extent required by applicable laws; insurance against loss of personal property owned by the Association; insurance, if available, for the protection of the Association's directors, officers and representatives from personal liability in the management of the Association's affairs; and such other insurance as the Board deems advisable. The Board shall review at least annually the adequacy of the Association's insurance coverage. All insurance shall be obtained from (or covered by reinsurance of) an insurance carrier which is licensed to do business in the State of Idaho. Section 22.2 Casualty Insurance: Master or Blanket Policy. The Association shall obtain, maintain, and pay the premiums, as a common expense, upon a "master" or "blanket" type policy of casualty insurance covering all of the Property including, without limitation, the Units (other than personal property contained therein) and all Common Areas (except land, excavation and other items normally excluded from coverage), as well as common personal property belonging to the Association. All references herein to a "master" or "blanket" type policy of property insurance are intended to denote single entity condominium insurance coverage. Section 22.3 Perils Covered. The insurance policy referred to in Section 22.2 shall afford, as a minimum, protection against the following: (a) loss or damage by fire and all other hazards that are normally covered by the standard extended coverage endorsement; and (b) all other perils customarily covered for similar types of properties, including those covered by the standard "all risk" endorsement. Section 22.4 Amount of Insurance; Deductible. The policy referred to in Section 22.2 shall cover 90% of the current replacement cost of the Property, including the individual Units in the Property. However, coverage does not need to include land, excavations or other items that are usually excluded from insurance coverage. The deductible under such policy shall not exceed the lesser of $10,000 or 1 % of the face value of the policy. Section 22.5 Named Insured and Loss Payable. The name of the insured under policies required by this Article 22 must be set forth therein substantially as follows: "Medical Millennium Condominium Association, Inc., for the use and benefit of the individual Owners of Units in the Property." Section 22.6 Mortgage Clause. CONDOMINIUM DECLARATION, Page 16 All policies required by this Article 22 shall contain the standard mortgage clause, or equivalent endorsement (without contribution), which is commonly accepted by private institutional Mortgage investors in the area in which the Property is located and which appropriately names Mortgagees and their successors and assigns. Section 22.7 Unacceptable Policies. Policies required hereunder are unacceptable where (a) under the terms of the insurance carrier's charter, bylaws or policy, contributions or assessments may be made against the Association, Owners, Mortgagees, or their respective designees or assigns; or (b) by the terms of the carrier's charter, bylaws or policy, loss payments are contingent upon action by the carrier's board of directors, policyholders, or members. or (c) the policy includes any limiting clauses (other than insurance conditions) which could prevent Owners or Mortgagees from collecting insurance proceeds. Section 22.8 Notice of Cancellation or Modification. Policies required hereunder may not be canceled or substantially modified without at least ten (10) days' prior written notice to the Association, to each Owner, and to each Mortgagee which is listed as a scheduled holder of a Mortgage in the insurance policy, including any designated servicers of Mortgagees. Section 22.9 ProaeM Insurance --Special Endorsements. The following endorsements shall be obtained on all policies required by this Article 22: (a) A Special Condominium Endorsement, or its equivalent, shall be obtained which shall provide that: any insurance trust agreement will be recognized; the right of subrogation against Unit Owners will be waived; the insurance will not be prejudiced by any acts or omissions of individual Unit Owners that are not under the control of the Association; and the policy will be primary, even if a Unit Owner has other insurance that covers the same loss. (b) Agreed Amount and Inflation Guard Endorsement shall be obtained, if available. (c) Construction Code Endorsements (such as a Demolition Cost Endorsement, a Contingent Liability from Operation of Building Laws Endorsement and an Increased Cost of Construction Endorsement) shall be obtained if the Property is subject to a construction code provision which would become operative and require changes to undamaged portions of the building, even when only part of the Property is destroyed by an insured hazard. Section 22.10 Liability Insurance. (a) General. The Association shall obtain and maintain comprehensive general liability insurance coverage covering all of the Common Areas. (b) Amount of Insurance. The amount of liability insurance coverage shall be at least equal to the greater of- (1) $1,000,000 for bodily injury and property damage for any single occurrence; or (2) The coverage limits usually required by Mortgage investors in other similar properties in the area. CONDOMINIUM DECLARATION, Page 17 (c) Scope of Coverage. The Association's liability insurance shall provide coverage for: (1) Bodily injury and property damage that results from the operation, maintenance or use of the Common Areas; and (2) Any legal liability that results from lawsuits or other claims related to employment contracts to which the Association is a party. (d) Notice of Cancellation or Modification. Liability policies must provide that they may not be canceled or substantially modified, by any party, without at least ten (10) days' prior written notice to the Association, to each Owner, and to each Mortgagee listed as a scheduled holder of a Mortgage in the insurance policy, including designated servicers of Mortgagees. (e) Supplemental Coverage. Additional coverages shall be obtained as necessary to protect against such other risks as are customarily covered with respect to properties similar in construction, location and use. Section 22.11 Insurance Trustee; Power of Attorney. (a) Notwithstanding any of the foregoing provisions and requirements relating to property or liability insurance, there may be named as an insured, on behalf of the Association, or the Association's authorized representative, who shall have exclusive authority to negotiate losses under any policy providing such property or liability insurance. (b) By acceptance of title to a Unit, each Owner appoints the Association, or the Association's authorized representative, as attorney -in -fact for the purpose of purchasing and maintaining the insurance required by this Article, and for the purpose of negotiating amounts payable thereunder, including the collection and appropriate disposition of the proceeds thereof, the execution of all documents, and the performance of all other acts necessary to accomplish such purposes. The Association or any insurance trustee shall receive, hold or otherwise properly dispose of any proceeds of insurance in trust for Unit Owners and their first Mortgage holders, as their interests may appear. Section 22.12 Owner's Individual Insurance Each Owner shall obtain casualty insurance covering his/her/its personal property and comprehensive liability insurance associated with his/her/its Unit. In addition, each Owner may obtain such additional insurance associated with his/her/its Unit as he/she/it deems necessary as long as such insurance does not negatively affect any insurance carried by the Association. ARTICLE 23. DAMAGE AND REPAIR OF DAMAGE TO PROPERTY. Section 23.1 Initial Board Determination. In the event of damage to any part of the Property, the Board shall promptly, and in all events within thirty (30) days after the date of damage, make the following determinations with respect thereto, employing such advice as the Board deems advisable: CONDOWNIUM DECLARATION, Page 18 (a) The nature and extent of the damage, together with an inventory of the improvements and Property directly affected thereby; (b) A reasonably reliable estimate of the cost to repair the damage, which estimate shall, if reasonably practicable, be based upon two or more firm bids obtained from responsible contractors; (c) The expected insurance proceeds, if any, to be available from insurance covering the loss based on the amount paid or initially offered by the insurer; (d) The amount, if any, by which the estimated cost of repair exceeds the expected insurance proceeds, and the amount of the assessments that would have to be made against each Unit if the excess cost were to be paid as a maintenance expense and specially assessed against all the Units in proportion to their percentages of undivided interest in the Common Areas; and (e) The Board's recommendation whether the damage should be repaired. Section 23.2 Notice of Damage. The Board shall promptly, and in all events within thirty (30) days after the date of damage, provide each Owner with a written notice describing the damage and summarizing the initial Board determinations made under Section 23.1. If the Board fails to do so within said 30 days, any Owner may make the determinations required under Section 23.1 and give the notice required under this Section. Section 23.3 Damage, Substantial Damage, Repair. Emergency Work. As used in this Article 23: Section 23.3.1 Damage shall mean all kinds of damage, whether of slight degree or total destruction. Section 23.3.2 Substantial damage shall mean that in the judgment of the Board the estimated special assessment determined under Section 23.1(d) for any one Unit exceeds ten percent (10%) of the full, fair market value of the Unit before the damage occurred, as determined by the Board or, in case of their inability to agree, by an MAI appraisal. Section 23.3.3 Re air shall mean restoring the improvements and Property to substantially the condition they were in before they were damaged, with each Unit and the Common Areas having substantially the same vertical and horizontal boundaries as before. Modifications to conform to applicable governmental rules and regulations or available means of construction may be made. Section 23.3.4 Emergency work shall mean work that the Board deems reasonably necessary to avoid further damage or substantial diminution in value to the improvements and Property and to protect the Owners from liability from the condition of the site. Section 23.4 Execution of Repairs. Section 23.4.1 The Board shall promptly repair the damage and use the available insurance proceeds therefore unless, before the repairs (other than emergency work) are begun, the Owners decide in accordance with this Article not to repair. If the cost of repair exceeds the available insurance CONDOMINIUM DECLARATION, Page 19 proceeds, the Board shall impose a special assessment against all Units in proportion to their percentages of undivided interest in the Common Areas in an amount sufficient to pay the excess costs. Section 23.4.2 The Board shall have the authority to employ architects and engineers, advertise for bids, let contracts to contractors and others, and take such other action as is reasonably necessary to make the repairs. Contracts for the repair work shall be awarded when the Board, by means of insurance proceeds and sufficient assessments, has provided for paying the cost. The Board may authorize the insurance carrier to make the repairs if the Board is satisfied that the work will be done satisfactorily, and if such authorization does not contravene any insurance trust agreement or requirement of law. Section 23.5 Damage Not Substantial. If the damage is not substantial, the following provisions shall apply: Section 23.5.1 Either the Board or the requisite number of Owners, within fifteen (15) days after the notice required under Section 23.2 has been given, may, but shall not be required to, call a special Owners' meeting in accordance with the Bylaws to decide whether to repair the damage. Section 23.5.2 Except for emergency work, no repairs shall be commenced until after the special meeting. Section 23.5.3 A unanimous decision of the Owners will be required not to repair the damage. The failure of the Board and the Owners to conduct the special meeting within the 15-day period shall be deemed a decision to repair the damage. Section 23.6 Substantial Damage. If the damage is substantial, the following provisions shall apply: Section 23.6.1 The Board shall promptly, and in all events within thirty (30) days after the date of damage, call a special Owners' meeting to consider repairing the damage. If the Board fails to do so within said 30 days, then any Owner or Mortgagee may call and conduct the meeting. Section 23.6.2 Except for emergency work, no repairs shall be commenced until after the special meeting. Section 23.6.3 A vote of more than two-thirds (2/3) of the total voting power (based upon the percentage of ownership interests in the Common Areas) will be required not to repair the damage. Failure of the Board and the Owners to conduct the special meeting within the thirty (30) day period shall be deemed a decision to repair the damage. Section 23.7 Effect of Decision Not to Repair. In the event of a decision under with Section 23.5.3 or Section 23.6.3 not to repair the damage, the Board may nevertheless expend so much of the insurance proceeds and common funds as the Board deems reasonably necessary for emergency work (which emergency work may include, but is not necessarily limited to, removal of the damaged improvements and clearing, filling and grading the land). CONDOMINIUM DECLARATION, Page 20 ARTICLE 24 CONDEMNATION. Section 24.1 Consequences of Condemnation; Notices. If any Unit or portion thereof or the Common Areas or any portion thereof is made the subject matter of any condemnation or eminent domain proceeding or is otherwise sought to be acquired by a condemning authority (referred to herein as a "taking"), notice of the proceeding or proposed acquisition shall promptly be given to each Owner and the provisions of this Article shall apply. Section 24.2 Proceeds. All compensation, damages, or other proceeds of the taking, the sum of which is hereinafter called the if award," shall be payable to the Association. Section 24.3 Complete Taking. If the entire Property is taken, the Condominium Ownership shall terminate. The condemnation award shall be apportioned among the Owners in proportion to their respective percentages of undivided interest in the Common Areas; provided, however, that if a standard different from the value of the Property as a whole is employed to measure the condemnation award in the taking, then, in determining such shares, the same standard shall be employed to the extent it is relevant and applicable. On the basis of the foregoing principle, the Board shall, as soon as practicable, determine the share of the condemnation award to which each Owner is entitled. Each Owner's share shall be applied first to the payment of all Mortgages and liens on the Owner's interest in accordance with the existing priorities, and the balance of each share shall be distributed to the Owner. Section 24.4 Partial Taking. If less than the entire Property is taken, the Condominium Ownership shall not terminate. Each Owner shall be entitled to a share of the condemnation award determined in the following manner: Section 24.4.1 As soon as practicable the Board shall, reasonably and in good faith, allocate the condemnation award among compensation for Property taken, severance damages or other proceeds. Section 24.4.2 The Board shall apportion the amounts so allocated to taking of or injury to the Common Areas, which in turn shall be apportioned among Owners in proportion to their respective percentage of undivided interests in the Common Areas. Section 24.4.3 The total amount allocated to severance damages apportioned to the Units that were not taken. Section 24.4.4 The amounts allocated to the taking of or injury to a particular Unit and/or improvements an Owner had made within the Unit shall be apportioned to the Unit. Section 24.4.5 The amount allocated to consequential damages and any other takings or injuries shall be apportioned as the Board determines to be equitable in the circumstances. Section 24.4.6 If an allocation of the condemnation award has already been established in negotiation, judicial decree, or otherwise, then in apportioning the condemnation award the Board shall employ that allocation to the extent it is relevant and applicable. CONDOMINIUM DECLARATION, Page 21 Section 24.4.7 Distribution of apportioned proceeds shall be made to the Owners and their respective Mortgagees in the manner provided in Section 24.3. Section 24.5 Reconstruction and Repair. Any reconstruction and repair necessitated by condemnation shall be governed by the procedures specified in Article 23 for repair of damage, provided that the Board may retain and apply such portion of each Owner's share of the condemnation award as is necessary to discharge the Owner's liability for any special assessment arising from the operation of Article 23. ARTICLE 25. EASEMENTS. Section 25.1 In General. Each Owner shall have the unrestricted right of ingress and egress through the Property to his/her/its Unit, which right shall be perpetual and appurtenant to such Unit. Each Unit has an easement in and through each other Unit and the Common Areas for all support elements and utility, wiring, heat and service elements, and for reasonable access thereto, as required to effectuate and continue proper operation of the Property. In addition, each Unit and all the Common Areas are specifically subject to easements as required for all utilities including, without limitation, electrical wiring, plumbing fixtures, and heating, telephone, cable, water, sewer and gas equipment for each Unit and the Property. The specific mention or reservation of any easement in this Declaration does not limit or negate any easement incident to a Condominium grant under the provisions of the Condominium Statute. Section 25.2 Encroachments. Each Unit and all Common Areas are hereby declared to have an easement over all adjoining Units and Common Areas for the purpose of accommodating any present or future encroachment as a result of engineering errors, construction, reconstruction, repairs, settlement, shifting or movement of any portion of the Property, or any other similar cause, and any encroachment due to building overhang. There shall be valid easements for the maintenance of the encroaching Units, areas and facilities so long as the encroachments shall exist, and the rights and obligations of Owners shall not be altered in any way by the encroachment. The encroachments described in this Section shall not be construed to be encumbrances affecting the marketability of title to any Unit. Section 25.3 Easement Specifically Reserved by Declarant. Declarant reserves to itself and its agents, employees and contractors, together with their agents, employees and subcontractors, an access easement over, across, and through the Units and Common Areas for the purpose of completing any unfinished Units or other improvements and exhibiting and preparing Units for sale. Section 25.4 Power of Association to Grant Easements. The Association shall have the right to grant permits, licenses and easements over, upon, across, under or through any portion of the Common Areas for utilities, roads or other purposes reasonably necessary or useful for the proper maintenance or operation of the Property; and each Owner hereby irrevocably appoints the Association as attorney -in -fact for such purpose. CONDOMINIUM DECLARATION, Page 22 ARTICLE 26. PROCEDURES FOR DIVIDING OR COMBINING UNITS. Declarant, at Declarant's sole cost and expense, shall have the absolute right, without the consent of any other Owner or the Association, to divide any Unit owned by Declarant into two or more Units. Any Owner, other than Declarant, may, at such Owner's sole cost and expense, divide one or more Units owned by such Owner into two or more Units provided that 1) the Declarant, assuming Declarant owns one or more Units, consents in writing to such division (which consent shall be given at Declarant's sole and absolute discretion), or 2) in the event Declarant does not own any Units, a majority of other Unit Owners within the Property consent in writing to such division (which consent shall be given by such other Owners at their sole and absolute discretion). Any such division shall be in compliance with all governmental laws, rules, regulations and ordinances. Any such approved division shall constitute an amendment to the Condominium Plat and this Declaration. ARTICLE 27. AMENDMENTS OF DECLARATION OR CONDOMINIUM PLAT. Section 27.1 Amendments by the Association or an Owner. Subject to Section 27.2, all amendments to this Declaration and/or Condominium Plat other than those described in Article 26 above, shall be adopted if approved by the vote of fifty-one percent (51 %) of the Owners (based upon their percentage of ownership interests in the Common Areas). Notwithstanding any other provision contained in this Declaration, no easement or other right or privilege reserved by or granted to Declarant by this Declaration may be modified, deleted or otherwise affected by any amendment to this Declaration, unless such amendment is approved in writing by said Declarant. Section 27.2 Amendments by the Declarant. So long as Declarant owns a Unit, the provisions of this Declaration and/or the Condominium Plat may be amended, modified, clarified, supplemented or added to by a recorded amendment made by the Declarant to comply with applicable law or as necessary to allow the Property to be developed and improved as contemplated in this Declaration or the Condominium Plat. Such an amendment need be signed and acknowledged only by Declarant. Section 27.3 Preparation and Effect of Amendment. A party proposing an amendment to this Declaration or the Condominium Plat shall prepare a recordable copy of the amendment to this Declaration and/or Condominium Plat, as the nature of the proposed amendment may require. Once an amendment has been adopted as required herein, the amendment will become effective when the amendment has been recorded in the public records. Any amendment of this Declaration approved in the manner specified above shall be binding on and effective as to all Owners notwithstanding that such Owners may not have voted for or consented to such amendment. Such amendment may add to and increase the covenants, conditions, restrictions and easements applicable to the Property, but shall not prohibit or unreasonably interfere with the allowed uses of such Owner's Unit which existed prior to the said amendment. ARTICLE 28. SEVERABILITY. The provisions of this Declaration shall be independent and severable, and the unenforceability of any one provision shall not affect the enforceability of any other provision, if the remainder complies with the Condominium Statute. CONDOMINIUM DECLARATION, Page 23 ARTICLE 29. ASSIGNMENT BY DECLARANT. Declarant reserves the right to assign, transfer, sell, lease or rent all or a portion of the Property then owned by it and reserves the right to assign all or any of its rights, duties and obligations created under this Declaration. ARTICLE 30. MISCELLANEOUS. Section 30.1 Enforcement; Attorney Fees; Remedies. Declarant, the Association and/or any Owner may enforce any provision contained in this Declaration. In the event of any demand, proceeding, action or suit based upon or arising out of any alleged breach by any party of any covenant, condition, restriction or term contained in this Declaration, the prevailing party shall be entitled to recover reasonable attorney's fees and other costs of such demand, proceeding, action or suit from the non - prevailing party or parties, including, without limitation, for any appeal or bankruptcy proceeding. All rights and remedies of each of the parties under this Declaration shall be cumulative, and the exercise of one or more rights or remedies shall not preclude the exercise of any other right or remedy available under this Declaration or applicable law. Section 30.2 Term. All terms of this Declaration shall run with and bind the land for a term of twenty (20) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years. THIS DECLARATION is executed on this day of , 2008. DECLARANT: Millenium Group LLC, an Idaho limited liability company By: Name: Title: STATE OF IDAHO ss. County of Ada ) On this day of 2008, before me, a notary public, personally appeared known or identified to me to be the of Millenium Group LLC, the limited liability company that executed the within instrument, and known to me to be the person who executed the within instrument on behalf of said limited liability company and acknowledged to me that such limited liability company executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. NOTARY PUBLIC, State of Idaho Residing at Idaho My Commission Expires: CONDOMITIIUM DECLARATION, Page 24 CERTIFICATE OF CONSENT OF RECORD LIEN OWNER as record lien holder, hereby consents to the filing of the Condominium Plat and this Condominium Declaration and Covenants, Conditions, Restrictions and Reservations for Medical Millennium Condominiums, and all other filings and/or recordings made or to be made pursuant to the Condominium Statue, for the purpose of creating a condominium property which is subject to the provisions thereof. DATED this day of .2008. By: Name: Title: STATE OF IDAHO ) ss. County of Ada ) On this day of 2008, before me, a notary public, personally appeared known or identified to me to be the of , the company that executed the within instrument, and known to me to be the person who executed the within instrument on behalf of said company and acknowledged to me that such company executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. NOTARY PUBLIC, State of Idaho Residing at Idaho My Commission Expires: CONDOMINIUM DECLARATION, Page 25 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY Lot 3, Block 1, of Resolution Subdivision No.l (a recorded subdivision on file in Book 82 of Plats at page 9,041, records of Ada County, Idaho), situated in a portion of the Northeast One Quarter of the Northwest One Quarter of Section 20, Township 3 North, Range 1 East, Boise Meridian, City of Meridian, Ada County, Idaho, described as follows: Commencing at a found Brass Cap monumenting the North One Quarter Corner of said Section 20, which bears South 89°52' 19" East a distance of 2,656.36 feet from a found Brass Cap monumenting the Northwest corner of said Section 20, thence South 00'24' 16" West a distance of 443.00 feet to a point on the southerly right-of-way line of East Gala Street; Thence following said southerly right-of-way line, North 89°52' 19" West a distance of 561.62 feet to a found 5/8-inch steel pin monumenting the Northwest corner of Valencia Plaza Subdivision (a recorded subdivision on file in Book 91 of Plats at page 10,764, records of Ada County, Idaho); Thence leaving said southerly right-of-way line following the westerly line of said Valencia Plaza Subdivision, South 00°07'41" West a distance 204.14 feet to a set 5/8-inch steel pin being the POINT OF BEGINNING. Thence following said westerly line and the easterly line of said Lot 3, Block 1, South 00°07'41" West a distance of 202.00 feet to a found 5/8-inch steel pin; Thence leaving said westerly line and said easterly line, and following the southerly line of said Lot 3, Block 1, North 89052' 19" West a distance of 238.69 feet to a set 5/8-inch steel pin; Thence leaving said southerly line following the westerly line of said Lot 3, Block 1, North 00°07'41" East a distance of 136.08 feet to a set 5/8-inch steel pin; Thence leaving said westerly line and following the southwesterly line of said Lot 3, Block 1, North 53°00'00" West a distance of 179.09 feet to a set 5/8-inch steel pin on the easterly right-of-way line of South Millenium Way; Thence leaving said southwesterly line following said easterly right-of-way line, 38.50 feet following the arc of a circular curve to the left, said curve having a radius of 539.00 feet, a central angle of 04°05"4", a chord bearing of North 34'47' 11" East, and a chord distance of 38.49 feet to a set 5/8-inch steel pin monumenting the Southwest Corner of Gaudry Seegmiller Subdivision (a recorded subdivision on file in Book 88 of Plats at page 10,149, records of Ada County, Idaho); Thence leaving said easterly right-of-way line following the southerly line of said Gaudry Seegmiller Subdivision and the northwesterly line of said Lot 3, Block 1, South 53°00'00" East a distance of 122.00 feet to a found 5/8-inch steel pin; Thence leaving said northwesterly line and following said southerly line and the northerly line of said Lot 3, Block 1, South 89°52' 19" East a distance of 262.47 feet to the POINT OF BEGINNING. The above -described tract of land contains 1.26 acres, more or less, subject to all existing easements and rights -of -way. CONDONHNIUM DECLARATION, Page 26 CONDOMMIUM PLAT See attached. CONDOMINIUM DECLARATION, Page 27 EXHIBIT C UNIT NUMBERS AND PERCENTAGE OF UNDIVIDED INTERESTS IN THE COMMON AREAS PERCENTAGE OF UNDIVIDED INTERESTS IN THE COMMON UNIT AREAS 1 32.24% 2 12.67% 3 29.99% 4 25.10% 100% CONDOMINIUM DECLARATION, Page 28 S'./ See attached EXHIBIT D ARTICLES OF INCORPORATION CONDOMINIUM DECLARATION, Page 29 ARTICLES OF INCORPORATION OF MEDICAL MILLENNIUM CONDOMINIUM ASSOCIATION, INC. The undersigned, in compliance with the requirements of the Idaho Code, has this day formed a corporation not for profit and does hereby certify: ARTICLE I NAME OF CORPORATION The name of the corporation is Medical Millennium Condominium Association, Inc., hereafter called the "Association." ARTICLE II REGISTERED OFFICE 83702. The initial registered office of the Association is located at 1400 W. Bannock Street, Boise, Idaho ARTICLE III REGISTERED AGENT Gary Millward is hereby appointed the initial registered agent of this Association. ARTICLE IV PURPOSE AND POWERS OF THE ASSOCIATION This Association is a nonprofit corporation. The specific purposes for which it is formed are to provide for maintenance and preservation of the condominiums and common areas within that certain tract of property commonly known as Medical Millennium Condominiums according to the plat thereof recorded, or to be recorded, in the official records of Ada County, Idaho, and any additions thereto as may hereafter be brought within the jurisdiction of this Association, hereinafter called the "Property", and to promote the health, safety and welfare of the owners and occupants within the Property. Without limiting the power and authority of the Association, the Association may take any of the following actions in furthering its purposes: (a) exercise all of the powers and privileges and perform all of the duties and obligations of the Association as set forth in that certain Condominium Declaration and Covenants, Conditions, Restrictions and Reservations For Medical Millennium Condominiums, hereinafter called the "Declaration," applicable to the Property and recorded, or to be recorded, in the official records of Ada County, Idaho, and as the same may be amended from time to time as therein provided; (b) fix, levy, collect and enforce payment by any lawful means, all charges or assessments pursuant to the terms of the Declaration; pay all expenses in connection therewith and all office and other expenses incident to the conduct of the business of the Association, including all licenses, taxes or governmental charges levied or imposed against the property of the Association; (c) acquire (by gift, purchase or otherwise), own, hold, improve, build upon, operate, maintain, convey, sell, lease, transfer, dedicate for public use or otherwise dispose of real or personal property in connection with the affairs of the Association; (d) borrow money, and/or mortgage, pledge, deed in trust, or encumber any or all of its real ARTICLES OF INCORPORATION - I or personal property as security for money borrowed or debts incurred; (e) dedicate, sell or transfer, pursuant to the terms of the Declaration, all or any part of the common areas to any public agency, authority or utility for such purposes and subject to such conditions as may be agreed to by the owners; (f) participate in mergers and/or consolidations with other nonprofit corporations organized for the same purposes or annex additional property and common areas, provided that any such merger, consolidation or annexation shall be in conformance with the terms of the Declaration; (g) exercise any and all powers, rights and privileges which a corporation organized under the Idaho Nonprofit Corporation Act may by law may now or hereafter have or exercise. ARTICLE V MEMBERSHIP AND VOTING RIGHTS Membership in the Association and the voting rights associated therewith shall be as enunciated in the Declaration. ARTICLE VI BOARD OF DIRECTORS The affairs of this Association shall be managed by a board of at least three (3) but no more than five (5) directors who need not be members in the Association. Initially, the board shall consist of three (3) directors. The number of directors may be changed by amendment of the Association's Bylaws. The names and addresses of the persons who are to act in the capacity of the directors until the selection of their successors are: NAME ADDRESS Gary Millward 1400 W. Bannock Street Boise, Idaho 83702 Bill Loveland 1400 W. Bannock Street Boise, Idaho 83702 Scott Graviet 1400 W. Bannock Street Boise, Idaho 83702 At the first annual meeting, and at all annual meetings thereafter, the owners shall elect all directors for a term of one (1) year. ARTICLES OF INCORPORATION - 2 ARTICLE VII DISSOLUTION The Association may be dissolved by a unanimous vote of the owners at a duly noticed meeting. Upon dissolution of the Association, other than incident to a merger or consolidation, the assets of the Association shall be dedicated to an appropriate public agency to be used for purposes similar to those for which this Association was created. In the event that such dedication is refused acceptance, such assets shall be granted, conveyed and assigned to any nonprofit corporation, association, trust or other organization to be devoted exclusively to such similar purposes. No part of the monies, properties or assets of the Association, upon dissolution or otherwise, shall inure to the benefit of any private person or individual or owner. ARTICLE VIII DURATION The corporation shall exist perpetually. ARTICLE IX AMENDMENTS Amendment of these Articles shall require the assent of not less than fifty-one percent (51 %) of the owners (based upon their percentage of ownership interests in the Common Areas). In addition, any such amendment shall be deemed an amendment to the Declaration which, in addition to any required filings with the Idaho Secretary of State, shall be recorded in the records of Ada County, Idaho properly referring to the Declaration and its recording information. IN WITNESS WHEREOF, for the purpose of forming this Association under the laws of the state of Idaho, I, the undersigned, the incorporator of this Association, have executed theses Articles of Incorporation this day of , 2008. Gary Millward 1400 W. Bannock Street Boise, Idaho 83702 ARTICLES OF INCORPORATION - 3 EXHIBIT E BYLAWS See attached. CONDOMINIUM DECLARATION, Page 30 BYLAWS OF MEDICAL MILLENNIUM CONDOMINIUM ASSOCIATION, INC. ARTICLE I NAME The name of the corporation is Medical Millennium Condominium Association, Inc., hereinafter referred to as the "Association." ARTICLE II DEFINITIONS All capitalized terms not otherwise defined herein shall have the same meaning as are ascribed to them in the Condominium Declaration and Covenants, Conditions, Restrictions and Reservations For Medical Millennium Condominiums, as amended from time to time, hereinafter referred to as the "Declaration". ARTICLE III MEETING OF OWNERS Section 1. Location of Meetings. Meetings of the Owners may be held at such places as may be designated by the Board. Section 2. Annual Meetings. The first meeting of the Owners shall be held within one (1) year from the date of incorporation of the Association and each subsequent regular annual meeting of the Owners shall be held on the same day of the same month of each year thereafter, at the hour of 7:00 o'clock, P.M. If the day for the annual meeting of the Owners is a legal holiday, the meeting will be held at the same hour on the first day following which is not a legal holiday. Section 3. Special Meetings. Special meetings of the Owners may be called at any time by the president or by the Board, or upon written request of the Owners who are entitled to vote one-fourth ('/4) of all of the votes. Section 4. Notice of Meetings. Written notice of each meeting of the Owners shall be given by, or at the direction of, the secretary or person authorized to call the meeting, by hand delivery or mailing a copy of such notice, postage prepaid by first class registered mail, at least fifteen (15) days, but no more than sixty (60) days, before such meeting to each Owner entitled to vote thereat, addressed to the Owner's address last appearing on the books of the Association, or supplied by such Owner to the Association for the purpose of notice. Such notice shall specify the place, day and hour of the meeting, and, in the case of a special meeting, the purpose of the meeting. Section 5. Quorum, Voting and Proxies. The presence at the meeting of Owners entitled to cast, or proxies entitled to cast, one-half (1/2) of the votes (based upon their percentage of ownership interests in the Common Areas) shall constitute a quorum for any action except as otherwise provided in the Articles, the Declaration or these Bylaws. If, however, such quorum shall not be present or represented at a meeting, the Owners entitled to vote thereat shall have the power to adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum as aforesaid shall be present or be represented. Unless otherwise required in these Bylaws, the Declaration or Articles, the affirmative vote in person or by proxy of a majority of Owners (based upon their percentage of ownership interests in the BYLAWS-1 Common Areas) at a duly called meeting at which a quorum is present shall be required for Owner action. There shall be no cumulative voting. At all meetings of Owners, each Owner may vote in person or by proxy, but in no event shall more than one (1) vote be cast with respect to any Condominium owned by more than one Owner. All proxies shall be in writing and filed with the secretary. Section 6. Action Without A Meeting Any action, which under the provisions of the Idaho Nonprofit Corporation Act may be taken at a meeting of the Association, may be taken without a meeting if authorized in writing signed by all of the Owners who would be entitled to vote at a meeting for such purpose, and filed with the Association's secretary. Any action so approved shall have the same effect as though taken at a meeting of the Owners. ARTICLE IV BOARD OF DIRECTORS: SELECTION: TERM OF OFFICE Section 1. Nomination. Nomination for election to the Board shall be made by any Owner and may be made prior to, or from the floor at, any meeting held for that purpose. Section 2. Election, Term. The directors shall be elected at the annual meeting of Owners; and if, for any cause, the directors shall not have been elected at an annual meeting, they may be elected at a special meeting called for that purpose in the manner provided by these Bylaws. The term of each director shall expire at the next annual meeting. Despite the expiration of a director's term, the director continues to serve until the director's successor shall have been elected and qualified or until there is a decrease in the number of directors. Election to the Board shall be by secret written ballot. At such election the Owners or their proxies may cast, in respect to each vacancy, as many votes as they are entitled to exercise under the provisions of the Declaration. The persons receiving the largest number of votes shall be elected. Cumulative voting is not permitted. Section 3. Quorum and Voting_. A quorum shall consist of a majority of directors, and shall be necessary for the transaction of business. Each director present at a meeting is entitled to one vote. No directors shall be entitled to accumulate his or her votes, and no director may vote by proxy. A majority vote is required for the approval of any Board action. Section 4. Number of Directors. The authorized number of directors shall be a minimum of three directors and no more than five directors. Subject to the foregoing sentence, the number of directors can be increased or decreased by the Owners; provided that no decrease in the number of directors shall shorten the term of any incumbent director. Section 5. Resignations and Vacancies (a) Any director may resign at any time effective upon giving written notice to the president or the Board, unless the notice specifies a later time for the effectiveness of such resignation. If the resignation is effective at a future time, a successor may be elected before such time to take office when the resignation becomes effective. Resignations of a director shall also constitute resignation as an officer. (b) Except as provided in Section 6, any vacancy on the Board may be filled only by the remaining directors. Each director elected to fill a vacancy shall hold office until the expiration of the term of the replaced director and until such replacement director's successor has been elected and qualified. BYLAWS-2 Section 6. Removal of Directors. All or any number of the directors may be removed, with or without cause, at a meeting called expressly for that purpose by a vote of seventy-five percent (75%) of Owners entitled to vote (based upon their percentage of ownership interests in the Common Areas) at a meeting in which a quorum is present. In the event that any one or more of the directors shall be so removed, new directors may be elected at the same time to fill the unexpired term or terms of the director(s) so removed. ARTICLE V MEETING OF DIRECTORS Section 1. Regular Meetings. Regular meetings of the Board shall be held semi-annually without notice, at such place and hour as may be fixed from time to time by resolution of the Board. Should said meeting fall upon a legal holiday, then that meeting shall be held at the same time on the next day which is not a legal holiday. Section 2. Special Meetings. Special meetings of the Board shall be held when called by the president of the Association, or by any two directors, after not less than three (3) days notice to each director. Section 3. Action Without A Meeting. Any action, which under the provisions of the Idaho Nonprofit Corporation Act may be taken at a meeting of the Board, may be taken without a meeting if authorized in writing signed by all of the Owners of the Board who would be entitled to vote at a meeting for such purpose, and filed with the Association's secretary. Any action so approved shall have the same effect as though taken at a meeting of the Board. ARTICLE VI POWERS AND DUTIES OF THE BOARD OF DIRECTORS The Board shall have the powers, duties and obligations as are enunciated in the Declaration and Articles. ARTICLE VII OFFICERS AND THEIR DUTIES Section 1. Enumeration of Offices. The officers of this Association shall be a president, who shall at all times be a Owner of the Board, a secretary, and a treasurer, and such other officers as the Board may from time to time by resolution create. Section 2. Election of Officers. The election of officers shall take place at the first meeting of the Board following each annual meeting of the Owners. Section 3. Term. The officers of this Association shall be elected annually by the Board and each shall hold office for one (1) year unless he or she shall sooner resign, or shall be removed or otherwise disqualified to serve. Section 4. Special Appointments. The Board may elect such other officers as the affairs of the Association may require, each of whom shall hold office for such period, have such authority, and perform such duties as the Board may, from time to time, determine. BYLAWS-3 Section 5. Resignation and Removal. Any officer may be removed from office with or without cause by the Board. Any officer may resign at any time by giving written notice to the Board, the president or the secretary. Such resignation shall take effect on the date of receipt of such notice or at any later time specified therein, and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. Section 6. Vacancies. A vacancy in any office may be filled by appointment by the Board. The officer appointed to such vacancy shall serve for the remainder of the term of the officer he or she replaces. Section 7. Multiple Offices. More than one office may be held by the same person, provided that the offices of president and secretary may not be held by the same person. Section 8. Duties. The duties of the officers are as follows: President (a) The president shall preside at all meetings of the Board; shall see that orders and resolutions of the Board are carried out, shall sign all leases, mortgages, deeds and other written instruments and shall perform such other duties as are required by the Board. Secretary (b) The secretary shall record the votes and keep the minutes of all meetings and proceedings of the Board and of the Owners, keep appropriate current records showing the Owners of the Association together with their addresses, and shall perform such other duties as required by the Board. Treasurer (c) The treasurer shall receive and deposit in appropriate bank accounts all monies of the Association and shall disburse such funds as directed by resolution of the Board; shall sign all checks and promissory notes of the Association; keep proper books of account; cause an annual review and compilation of the Association books to be made by an accountant at the completion of each fiscal year; and shall prepare an annual budget and a statement of income and expenditures and shall perform such other duties as required by the Board. ARTICLE VIII BOOKS AND RECORDS The books, records and papers of the Association shall at all times, during reasonable business hours, be subject to inspection by any Owner. The Declaration, the Articles and the Bylaws of the Association shall be available for inspection by any Owner at the principal office of the Association, where copies may be purchased at a reasonable cost. ARTICLE IX AMENDMENTS/CONFLICTS Section 1. Amendment. Amendment of these Bylaws shall require the assent of not less than fifty-one percent (51 %) of all Owners (based upon their percentage of ownership interests in the Common Areas). BYLAWS-4 Section 2. Conflicting Provision. In the case of any conflict between the Articles and these Bylaws, the Articles shall control; and in the case of any conflict between the Declaration and these Bylaws, the Declaration shall control. ARTICLE X MISCELLANEOUS The fiscal year of the Association shall begin on the first day of January and end on the 31 st day of December every year, except that the first fiscal year shall begin on the date of incorporation. IN WITNESS WHEREOF, we, being all of the directors of the Medical Millennium Condominium Association, Inc. have hereunto set our hands this day of 2008. Gary Millward, Director Scott Graviet, Director Bill Loveland, Director BYLAWS-5 CERTIFICATION I, the undersigned, do hereby certify: THAT I am the duly elected and acting secretary of the Medical Millennium Condominium Association, Inc. an Idaho corporation, and, THAT the foregoing Bylaws constitute the original Bylaws of said Association, as duly adopted at a meeting of the Board thereof, held on the day of , 2008. IN WITNESS HEREOF, I have hereunto subscribed my name on this day of 2008. Scott Graviet, Secretary BYLAWS-6 '>I�e9 uo s:ela0 s 'P Pnlou�sa�Meej /ylnoe5—. - Aj ::)o `Y !V �W O rim a 1 O z O 0 O ao O a �r O rN H a \ a O o 4D L .' M t0 rj 0 O N 4) ow t\ m mop O LD O CO) 'd \ lD C O 0) Cc C O M MW.N.. U 00 •r L � 1✓ WOH 0 (U m: n LID J 4-- —1 O X W o� v 0Pal � L.''may++ 0 M • U _O uau w L E+ = O C)W LL Q CC LL �oo �E rL N rn O .-a rM ru a ■ ■ CITY OF eYId 33 E. Idaho Ave. y Meridian, ID 83642 e ER u ' TREASURE V - SINCE 1903 Date 8 Ipplicant address Phone `�39-Fj$sd CASH CHECK # NAME ON CHECK IF DIFFERENT THAN APPLICANT DESCRIPTION AMOUNT I I I I I # I I I I I I 1 I I I I I I I I I I I I , I I I I I I I I I I PAYMENT DOES NOT INDICATE cCEPTANCE OF APPLICATION TAX 12320 Received BY TOTAL 160 �-� U I — 152 RADIUS NOTICE REPORT 24-Jan-2008 I..)FILE NAME: medical Owners Owner Address ADA WEST PROPERTY MANAGEMENT COM 1618 MILLENNIUM ST MERIDIAN, ID 83642-0000 Property Address: mediacl ASPEN GROVE DEVELOPMENT LLC 391 W STATE ST STE G EAGLE, ID 83616-0000 Property Address: mediacl BOISE MEDICAL CENTER LLP 425 W BANNOCK ST BOISE, ID 83702-6036 Property Address: mediacl BROCKBANK PROPERTIES #3 LLC 2098 PICKETT LN EMMETT, ID 83617-0000 Property Address: mediacl CONSTAR INVESTMENTS LLC 1414 ROBIN LN BOZEMAN, MT 59715-0000 Property Address: mediacl DAVID E SEEGMILLER LLC 2201 E GALA ST MERIDIAN, ID 83642-0000 Property Address: mediacl DAYLEY REAL ESTATE VENTURES LLC 2894 E MOON DIPPER CT MERIDIAN, ID 83642-0000 Property Address: mediacl EDGE LLC PO BOX 369 MERIDIAN, ID 83680-0000 Property Address: mediacl GAUDRY ROBERT 2715 E DEER FLAT RD GAUDRY KATHLEEN KUNA, ID 83634-1325 Property Address: mediacl 1 Owners Owner Address HOOPES SCOTT P & DEBORAH L TRUST 2335 N ALDERCREST PL HOOPES SCOTT P TRUSTEE EAGLE, ID 83616-0000 Property Address: mediacl HUNEMILLER RUSSELL D 3299 W DAVIS LN MERIDIAN, ID 83642-6451 Property Address: mediacl HUNEMILLER RUSSELL D 3299 W DAVIS LN MERIDIAN, ID 83642-6451 Property Address: mediacl HUNEMILLER RUSSELL D 3299 W DAVIS LN MERIDIAN, ID 83642-6451 Property Address: mediacl IDAHO CENTRAL CREDIT UNION INC PO BOX 2469 POCATELLO, ID 83204-2469 Property Address: mediacl LADCO LLC 4720 EMERALD BOISE, ID 83704-0000 Property Address: mediacl LAURENCO LLC 2365 E GALA # 2 MERIDIAN, ID 83642-0000 Property Address: mediacl MARCUM DIRK L 14364 E HWY 21 BOISE, ID 83716-0000 Property Address: mediacl MARCUM DIRK L 14364 E HWY 21 BOISE, ID 83716-0000 Property Address: mediacl MERIDIAN JOINT SCHOOL DIST NO 2 1303 E CENTRAL DR MERIDIAN, ID 83642-0000 Property Address: mediacl 2 Owners Owner Address MIDNORTH PROPERTIES LLC Property Address: MILLENIUM GROUP LLC Property Address: MILLENNIUM DENTAL LLC Property Address: PREMIER ENTERPRISES LLP Property Address: RAFF WILLIAM C RAFF BETH P Property Address: SAGECREST DEVELOPMENT LLC Property Address: SAGECREST DEVELOPMENT LLC Property Address: SAGECREST DEVELOPMENT LLC Property Address: SAGECREST DEVELOPMENT LLC Property Address: SAGECREST DEVELOPMENT LLC Property Address: 10812 ELM RIDGE AVE LAS VEGAS, NV 89144-0000 mediacl 1828 S MILLENIUM WAY MERIDIAN, ID 83642-0000 mediacl 1848 S MILLENNIUM WAY MERIDIAN, ID 83642-0000 mediacl 1759 S MILLENNIUM WAY MERIDIAN, ID 83642-0000 mediacl 11119 RINGWOOD AVE SANTA FE SPRINGS, CA 90670-0000 mediacl 3299 DAVIS DR MERIDIAN, ID 83642-0000 mediacl 3299 DAVIS DR MERIDIAN, ID 83642-0000 mediacl 3299 DAVIS DR MERIDIAN, ID 83642-0000 mediacl 3299 DAVIS DR MERIDIAN, ID 83642-0000 mediacl 3299 DAVIS DR MERIDIAN, ID 83642-0000 mediacl 3 L Owners Owner Address SAGECREST MULTI FAMILY PROPERTY OW 520 S ORCHARD ST BOISE, ID 83705-0000 Property Address: mediacl SEEGMILLER DAVID E 4080 E BOTT LN GAUDRY ROBERT C MERIDIAN, ID 83642-0000 Property Address: mediacl STOKES WINSTON C TRUST PO BOX 5495 VANCOUVER, WA 98668-0000 Property Address: mediacl TAKATORI SONJA D 12356 CHAMPIONSHIP CIR TAKATORI COLIN K MUKILTEO, WA 98275-0000 Property Address: mediacl VALENCIA PLAZA CONDOS ASSOC INC 2273 E GALA ST # 100 MERIDIAN, ID 83642-0000 Property Address: mediacl 4