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HomeMy WebLinkAboutPZ - Declarations of covenants conditions restrictions and easmen.._ Charlene Way From:Seguin,Angie <Angie.Seguin@thecdcompanies.com> Sent:Friday, July 28, 2023 10:57 AM To:Stacy Hersh; Bill Parsons; Bill Nary; Kurt Starman; Chris Johnson; Joy Hall; Charlene Way Subject:RE: New Horizon Academy CUP H-2023-0034 Staff Report Attachments:2020-108848 Declarations of covenants conditions restrictions and easmen.._.pdf External Sender - Please use caution with links or attachments. Hi Stacy, I wanted to let you know that there is a shared parking agreement for this Development – see excerpt below and attached. We can include this with the CZC package and add the wheel stops. Thanks! ANGIE SEGUIN, PE, LEED AP BD+C PROJECT MANAGER o: 314.238.2028 c: 314.960.0167 12 Sunnen Dr. Suite 100 St. Louis, MO 63143 theCDcompanies.com From: Stacy Hersh <shersh@meridiancity.org> Sent: Tuesday, July 25, 2023 11:26 AM To: Bill Parsons <bparsons@meridiancity.org>; Bill Nary <bnary@meridiancity.org>; Kurt Starman <kstarman@meridiancity.org>; Chris Johnson <cjohnson@meridiancity.org>; Joy Hall <jhall@meridiancity.org>; 1 Charlene Way <cway@meridiancity.org>; Seguin,Angie <Angie.Seguin@thecdcompanies.com> Subject: New Horizon Academy CUP H-2023-0034 Staff Report Importance: High Good Afternoon, Attached is the staff report for New Horizon Academy. This item is scheduled to be on the Commission agenda on August 3, 2023. The public hearing will be held at City Hall, 33 E. Broadway Avenue, beginning at 6:00 pm. You may attend in person or virtually via Zoom – the link/phone number to join the meeting is located at the top of the meeting agenda. Please call or e-mail with any questions. Please submit any written response you may have to the staff report to the City Clerk’s office (comment@meridiancity.org) and me as soon as possible. If you have a presentation you’d like to present at the public hearing, please send it to the City Clerk’s office no later than 12:00 pm the day of the hearing. Best regards, Stacy Hersh | Associate Planner City of Meridian | Community Development Department 33 E. Broadway Ave., Meridian, Idaho 83642 Phone: (208)-489-0576, Fax: (208)-887-1297 Built for Business, Designed for Living All e-mail messages sent to or received by City of Meridian e-mail accounts are subject to the Idaho law, in regards to both release and retention, and may be released upon request, unless exempt from disclosure by law. 2 ADA COUNTY RECORDER Phil McGrane 2020-108848 BOISE IDAHO Pgs=38 ANGIE STEELE 08/24/2020 01:56 PM FIDELITY NATIONAL TITLE-BOISE $121.00 After recording, return to: Kuna Victory, LLC PO Box 51298 Idaho Falls, ID 83405 Space is resened,for Frse by Recorder DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS This Declaration of Covenants, Conditions, Restrictions and Easements (this "Declaration"), is made made as of August 21, 2020, by Kuna Victory LLC, an Idaho limited liability company ("Declarant"). RECITALS Declarant owns all of the real property described in Exhibit A and generally depicted on Exhibit B attached hereto (the "Project") and desires to establish certain restrictions, covenants, conditions, and easements for the common development, operation, maintenance, management, and use of the Project. Capitalized terms used in this Declaration and not otherwise defined above or elsewhere in this Declaration are defined in Article 1. NOW, THEREFORE, in order to assure the orderly and beneficial development of the Project, Declarant hereby declares that all Lots in the Project shall be held, sold and conveyed subject to the provisions of this Declaration, which shall run with the land and be binding on and inure to the benefit of all Owners having or acquiring any right,title or interest in any Lot, and all heirs, successors and assigns of such Owners. ARTICLE 1 DEFINITIONS 1.1 "Building" shall mean any enclosed structure placed, constructed or located on a Lot, which for the purpose of this Declaration shall include but not be limited to any appurtenant foundations,canopies, supports,loading docks,truck ramps and other outward extensions. 1.2 "Common Area" shall mean all areas within the Project that are not Buildings including but not limited to: roadways, driveways,parking areas, access drives,paving, striping, curbs, gutters, landscaping, directional or traffic signs, shared utility infrastructure, and storm water facilities; but excluding all Buildings and Improvements appurtenant thereto intended for the exclusive use of a particular Permittee or Building such as drive-thru lanes,menu boards,truck ramps,loading docks and other similar appurtenances. 1.3 "Declarant" shall mean Kuna Victory, LLC and any subsequent Owner(s) which may be appointed as the successor Declarant in accordance with Article 4. 1.4 "Hazardous Materials" means any material or substance that is toxic, ignitable, reactive or corrosive and that is regulated by the State of Idaho, the United States Government or any agency thereof including, without limitation, any and all materials defined as "toxic substance","hazardous waste","extremely hazardous waste",or"hazardous material"pursuant to state, federal or local law, as amended. 1.5 "Improvement(s)"shall mean all Buildings,Conunon Area and other development on a Lot including but not limited to all pavement, concrete, parking lot striping, landscaping, irrigation systems, storm water systems,mailboxes, lighting, trash enclosures,utilities, and signs. 1.6 "Indemnify"shall mean indemnify,protect,hold harmless and defend with counsel designated by the insurer charged with the obligation to defend(or if no insurer is involved, with counsel reasonably acceptable to the Owner being defended). 1.7 "Laws" shall mean and include all laws, rules, regulations, orders, ordinances, statutes and other requirements of all federal, stale, county and municipal authorities having jurisdiction over the Project. 4.8 "Liabilities" shall mean all claims, damages, losses, liabilities, actions, proceedings, costs and expenses(including reasonable attorney fees and costs). 1.9 "Lot" shall mean Parcel A and-Parcel B (each a Lot) as described on Exhibit A hereto and all subsequent subdivision lots thereof set forth and described on a Plat. 1.10 "Lot Area" shall mean the area of each Lot measured in square feet. 1.11 "Manager" shall mean the Declarant or the party designated as Manager by the Declarant pursuant to Section 4.6. 1.12 "Owner" shall mean, individually or collectively, as the case may be, any person owning fee simple title to all or any portion of a Lot. If more than one person or entity owns fee simple title to any Lot they shall collectively be deemed the Owner of such Lot. 1.13 "Permittee" shall mean any party entitled to use and occupy any portion of a Building in the Project under an ownership right or any lease, sublease, license, concession or other similar agreement and their officers, directors, employees, agents, contractors, customers, vendors, suppliers, visitors, invitees, licensees, subtenants and concessionaires, insofar as their activities relate to the intended development, use and occupancy of the Project but expressly excluding distributing any circular,handbill,leaflet,flyer,pamphlet,placard or booklet, soliciting memberships or contributions for any purposes,parading,picketing or demonstrating,or failing to follow rules established by the Owners relating to the use of the Project. DECLARATION OF COVENANTS,CONDITIONS.RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 2 1.14 "Plat' shall mean the final subdivision plat or plats comprising any portion of the Project as may be recorded in the records of Ada County, Idaho. 1.1 S "Project" shall have the meaning set forth in the Recitals above. 1.16 "Regular Assessment"means assessments levied against each Lot by the Manager for the estimated Shared Maintenance Cost to be paid by each Owner as set forth in Article 8 which, except as set forth in Section 8.2, shall be a proportionate share of the Shared Maintenance Costs calculated by multiplying the total Shared Maintenance Costs by the fraction where the numerator is the Lot Area of the Lot, and the denominator is the aggregate of the Lot Area on all Lots. 1.17 "Site Plan" shall mean the Site Plan attached hereto as Exhibit B, which may be amended or superseded by the Declarant to reflect the then current development, designation and configuration of the Project. 1.18 "Shared Maintenance Costs" means the cost and expense incurred by Declarant or Manager in performing management and maintenance activities in accordance with Article S. 1.19 "Special Assessment" means a Lot specific assessment levied against a particular Lot or Lots in accordance with Section 8.7. 1.20 "Storm Water System" shall mean the system of drainage lines, surface drainage ways and detention and retention facilities within the Project for retaining, detaining, and. or discharging storm water within or from the Project. 1.21 "Utility Lines" shall mean those facilities and systems for the transmission of utility services, including the drainage and storage of surface water. (a) "Common Utility Lines"shall mean those Utility Lines which are installed to provide the applicable utility service to more than one Lot. The surface water collection,retention, detention and distribution facilities shall be deemed to be a Common Utility Line. (b)"Private Utility Lines" shall mean those Utility Lines which are installed to Provide the applicable service to a Lot. For the purpose of this Declaration,the portion of a Utility Line extending from a Common Utility Line to a Building shall be considered a Private Utility Line. ARTICLE 2 TERM 2.1 The easements set forth in this Declaration shall be perpetual in duration unless otherwise specifically provided. The restrictions, covenants and conditions set forth in this Declaration shall be binding upon and enforceable against Owners and Permittees for a period of 100 years from the date this Declaration is recorded in the public records of the governmental subdivision where the Project is located. If any law prohibits any such restrictions, covenants, and/or conditions from being enforceable for any period, the Declarant hereby reserves unto DECLARATION OF COVENANTS,CONDITIONS.RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 3 Declarant and its successors a power of attorney to re-record this Declaration at any time for the purpose of extending the enforceability of the same as contemplated by this Section 2.1. ARTICLE 3 RIGHTS OF PERMITTEES AND THE PUBLIC 3.1 Rights of Permittees. With respect to the easements created by this Declaration, each Owner benefited thereby shall be entitled to designate which, if any, of its Permittees shall be entitled to utilize and enjoy such easements. This Declaration shall not create any independent rights as to any Peimittee, except for those which may be terminated or withdrawn at any time by the Owner through whom such rights were derived. 3.2 No Rights in Public Generally. The easements, restrictions, covenants and conditions created, reserved, granted and established in this Declaration do not, are not intended to, and shall not be construed to create any easements,rights or privileges in and for the benefit of the general public. Notwithstanding anything to the contrary contained in this Declaration, each Owner shall have the right to prohibit or limit any solicitation, petition signing, distribution of literature or flyers,collection of money,giving of speeches,leafleting,picketing,carrying of signs, canvassing,demonstrations,or similar activities within the Common Area located on said Owner's Lot. ARTICLE 4 DECLARANT AUTHORITY 4.1 Rules and Regulations. In addition to all other authority expressly reserved unto Declarant in this Declaration, Declarant may, in its sole and absolute but good faith discretion, promulgate, amend and enforce reasonable rules and regulations regarding: (a) the use and maintenance of the drive aisles; (b) signs; (c) landscaping and parking areas (including, without limitation, provisions regarding parking striping patterns and colors, employee parking or requiring an Owncr to maintain landscaping near structures, equipment or vehicles); (d) construction activities (including but not limited to staging, times for transportation of materials to and from a job site, damage and cleaning deposits, contractor parking,trash containers, screening, fencing, smoking,music and site curfew); and (e) all other activities and events in the Common Area. 4.2 Design Approval. Owners shall not commence construction on any Building, Building sign, monument sign, pylon sign, Conunon Area Improvements or any other Improvement or thereafter make any modification thereto(except regular maintenance)on any Lot unless and until the plans and specifications therefor, and the use thereof,have been approved in advance in writing by the Declarant in accordance with, and to the extent required by, Article 7. 4.3 Common Area Maintenance. As set forth in Section 4,6 Declarant may elect to self-perform or engage a Manager to perform the maintenance and repair of the Common Area DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 4 and in its sole discretion, may direct or allow one or more Owners to maintain and repair the Common Area or portion thereof on the Owner's Lot as set forth in Article S. 4.4 Appointment of Successor Declarant. Declarant, in its sole discretion may,without approval of any other Owner, designate a successor Declarant by a written amendment to this Declaration, executed only by Declarant and the successor Declarant, recorded in the public records of Ada County,Idaho. If Declarant ceases to be an Owner of any Lot and fails to designate a successor Declarant, the Owner of the Lot that includes the northern most portion of the Project shall automatically become the Declarant Notwithstanding anything to the contrary contained herein,all successor Declarants shall be an Owner of a Lot and may appoint subsequent successors pursuant to this Section. 4.5 Declarant Action/Decision Binding on Successors. All decisions of the Declarant shall be binding upon all successor Declarants unless the party benefitted by the decision or action agrees in writing to modify or amend previous Declarant decisions. 4.6 Appointment and Termination of Manager. Declarant may elect to self-perform or may appoint a Manager to perform the maintenance and repair of the Common Area. The Manager shall have the right,power and authority to enter into agreements with third parties to provide for all such maintenance, except for the Owner-Maintained Lots. Unless Declarant approves otherwise in writing, such maintenance agreements shall not exceed a one (1) year term or shall include a provision allowing Declarant to terminate the agreement upon 30 days' advance notice. All maintenance agreements shall be on an"arm's length"basis and on terms and conditions not more favorable to the Manager or vendor than are generally available in the geographic area in which the Project is located. The Manager shall have the right,upon giving 90 days' prior written notice to the Declarant,to resign as the Manager. The Declarant shall have the right,upon giving 90 days' written notice to the Manager, to terminate the Manager. In either event, the Declarant may promptly assume the role of Manager or appoint another party to serve as the Manager. If the Manager is terminated, said terminated manager shall not be released from any Liabilities arising out of its actions or omissions occurring during said manager's period of service. If at any time there is no acting Manager, then each Owner shall be responsible for performing the obligations of the Manager with respect to such Owner's Lot. ARTICLE 5 BUILDING IMPROVEMENTS 5.1 General Requirements. (a)All construction activities performed within the Project shall be performed in compliance with all applicable Laws. All construction shall use new materials and shall be performed in a good, safe and workmanlike manner. (b) Construction activities performed by an Owner or its contractors shall not: (i) cause a material increase in the cost of constructing Innprovennents upon another Owner's Lot; (ii) unreasonably interfere with construction work being performed on any other part of the Project; DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 5 (iii) unreasonably interfere with the use,occupancy or enjoyment of any other part of the Project by any other Owner or its Permittees; or (iv) cause any Building located on another Lot to be in violation of any Law. (c)All construction,reconstruction,repair,rebuilding,replacement shall be subject to and comply with all construction requirements of this Declaration and all applicable rules and regulations enacted in accordance therewith. 5.2 Desim and Construction. (a) All Buildings- constructed in the Project shall be designed so that the exterior elevation of eaeh Building will be architecturally and aestheti(rAly compatible with the others, as determined by the Declarant, including the hei gl at color,materials, design and architectural theme (including signs located thereon). All Buildings constructed in the Project shall be constructed to comply with all applicable governmental requirements (including fire sprinkler and setback requirements). If constriction commences on a Building but ceases prior to completion for more than 120 day`, and the Declarant in its reasonable discretion determines that such unfinished Building creates an unsafe or unsightly condition detrimental to the Project, the Declarant may construct a barricade around the unfinished construction site and the Owner thereof shall upon demand reimburse the Declarant for costs and expenses incurred. (b) Buildings shall not exceed two (2) story or 35 feet in height or the maximum allowable height of a two-story building allowed by code,whichever is lower in height,measured perpendicular from the finished floor of the ground level to the top of the roof structure,including any screening, parapet,penthouse, mechanical equipment or similar appurtenance located on the roof of such Building. If allowed by code, architectural elements such as towers, chimneys and roof extensions may extend above the maximum permitted height so long as the length of such element does not exceed seven and one-half percent(7.5%) of the total length of the perimeter of the Building. Rooftop elements such as elevator equipment rooms, equipment penthouses and exhaust stacks may extend above the maximum permitted height if positioned so they are not visible from the ground anywhere in the Project. Owners may also install,maintain,repair,replace and remove communications equipment on the Building roof such as satellite dishes,antennas and laser heads and associated equipment and cables, which may exceed the maximum permitted height so long as they are positioned to reduce the visibility thereof. 5.3 Staging Areas. (a) In connection with any construction; reconstruction, repair or maintenance on its Lot, each Owner reserves the right to create a temporary staging and/or storage area in the Common Area on its Lot at such location as will.not unreasonably interfere with access between such Lot and the other areas of the Project. (b) If a business is operating on a Lot, then other Owner's staging and/or storage area shall not be located within one hundred feet(100')of the premises of the operating business, DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 6 unless approved by the other Owner. If substantial work is to be performed, the Declarant may direct the Owner to fence off the staging and/or storage area. (c) Prior to the commencement of any work which requires the establishment of a staging and/or storage area on a Lot, an Owner shall give at least twenty(20)days prior notice to the Declarant of the proposed location of such staging and/or storage area. All material storage, construction parking shall be confined to the constructing Owner's Lot and all construction access confined to the access drives located upon the constructing Owner's Lot,unless use of such access points is not reasonably practicable, and then only to the extent approved by the Declarant in writing. (d)Upon completion of such work, the constructing Owner shall restore any damaged Common Area to a condition equal to or better than what existing prior to commencement of such work. 5.4 License to use Common Areas. (a) F.ach Owner hereby irrevocably grants to each other Owner and to its respective contractors,materialmen and laborers a temporary license during the term of this Declaration for access and passage over and across the Common Area of the grantor's Lot as shall be reasonably necessary for the grantee Owner to construct and/or maintain Improvements upon the grantee's Lot. Such license shall be in effect only during periods when actual construction and/or maintenance is being performed and such license shall not be used in a manner that will unreasonably interfere with the use and operation of the Common Area by others. Prior to using the license granted herein, the grantee Owner shall endeavor to notify the grantor Owner of the work to be performed. (b)Any Owner availing itself of the temporary license provided in this Section 5.4 shall promptly pay all costs and expenses associated with such work, shall complete such work as quickly as possible, and shall promptly clean the area and restore and/or repair any damaged or otherwise adversely altered portion of the Common Area to a condition which is equal to or better than the condition which existed prior to the cominencenient of such work. (c) If a dispute exists between the contractors, laborers, suppliers and/or others connected with construction activities, each Owner shall have the right to prohibit the contractors, laborers, suppliers and/or others working for another Owner from using the Common Area on its Lot. 5.5 Adjacent Buildings. (a) The Owners hereby specifically consent to the placement of Buildings in close proximity to their respective common boundary lines as may be approved by the Declarant in its sole discretion,and each Owner shall(i)not unreasonably withhold support of a request by another Owner for a side-yard or setback variance if the same is required in order to accommodate such construction; and(ii)if requested by an adjacent Owner, design the footings of its Building where situated along a common boundary to accommodate an adjacent Building. (b) The second Owner to construct a Building adjacent to a common boundary line shall do so in a manner that does not result in damage to the Improvements in place on the adjoining DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 7 Lot, and such Owner shall have both the right and obligation to undertake and assume, at its sole cost, the work of completing and maintaining the nominal attachment (flashing and seal) of its Building to that of the existing Building on the other Lot, it being the intent of the Owners to establish and maintain the appearance of one continuous Building complex. In performing such attachment, the wall of one Building shall not receive support fi-om nor apply pressure to the wall of the other Building. 5.6 Liens. If any mechanic's lien is filed against the Lot of an Owner as a result of services performed or materials furnished for another Owner, the Owner permitting or causing such lien to be filed shall promptly cause such lien to be discharged either by paying the liability which gave rise to such lien or by posting a bond or other security and shall Indemnify the other Owner and its Lot against all Liabilities on account of such lien or claim of lien. ARTICLE 6 COMMON AREA IMPROVEMENTS 6.1 Common Area. Constriction and development of Common .Area Improvements shall be subject to and approved in accordance with Article 4. Buildings,barricades or structures shall not be placed, erected or constructed x�dthin the Common Area except trash enclosures, signs (.to the extent not otherwise prohibited hereii)), bumper guards, curbs, paving, landscaping, lighting, driveways., ,%-1-4kways, parking, parking canopies, columns or pillars supporting roof overhangs, and any other Improvements as may be required under applicable laws, rules, ordinances and regulations of any governmental body having jurisdiction ovcr the Project. Fences or other barriers that would prevent or unreasonably obstruct passage of pedestrian or vehicular travel shall not be erected or permitted within the Common Area, except: (i) limited curbing and other forins of traffic control approved by the Declarant in writing, and (ii) temporary staging and/or storage areas approved by Declarant. The Common Area on each Lot shall be substantially completed no later than the day on which the first occupant of such Lot opens for business. Such work shall be done in a good and workmanlike manner and in accordance with good engineering standards. 6.2 Parking Requirements. (a) All Lots shall maintain(independently and without reliance on any other Lot or easement) a parking ratio as unposed under applicable Law. (b) Parking spaces shall be at least 9' by 1.8' in size and comply to uniform striping patterns and design standards adopted(or thereafter amended) by the Declarant. Parking spaces shall not be designated for use by specified parties or for specified time periods except as expressly set forth herein and as otherwise expressly authorized in writing by the Declarant. (c) If a condemnation of part of a Lot or sale or transfer in lieu thereof reduces the number of usable parking spaces to less than the quantity required herein, the Owner whose Lot is so affected shall use its best efforts (including using proceeds from the condemnation award or settlement) to restore and/or substitute ground level parking spaces in order to comply with the parking requirements set forth in this Declaration. DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 8 (d) Parking within the Project is restricted to Owners and Permittees. In no event shall the owner(s),Iessee(s)and/or occupant(s)of any property outside of the Project be permitted to use the parking spaces within the Project. (e) There shall be no overnight parking by customers,visitors, or invitees,without express written approval from the Declarant. 6.3 Common Area Modifications. Owners shall not make changes to the improved Common Area on its Lot without the written approval of the Declarant, except that each Owner hereby reserves the right,without obtaining the approval of Declarant or any other Owner,to make at its own expense any insignificant change, modification or alteration of the Common Area if (a) the change, modification or alteration does not unreasonably restrict or hinder parking or significantly modify accessibility of such Common Area for pedestrian and vehicular traffic(as it relates to the remainder of the Project); (b) a sufficient member of vehicular parking spaces are retained on the Lot to meet the parking requirements set forth in this Declaration; (c) the Owner complies with all Laws applicable to such change, modification or alteration; (d) the change, modification or alteration does not change, alter or modify the access points between the Common Area and the adjacent public streets (additional access points may be created with the written approval of the Declarant). ARTICLE 7 PLAN APPROVAL AND CONSTRUCTION DEPOSIT 7.1 Approval. All Improvements to be constructed, altered, modified, removed or demolished must first be approved by the Declarant. i.2 Non-Liability. The Declarant shall not be liable to any Owner or any other patty for any loss, damage or injury arising out of or connected with the performance of its duties and responsibilities by reason of a mistake in judgment,negligence or nonfeasance arising out of or in connection with the approval or disapproval or failure to approve an application for the construction of Improvements. Every Owner or Permittee who submits an application for approval of plans and specifications for the construction of Improvements agrees,by submission of such an application, not to bring any action or suit against the Declarant to recover any such damages. 1.3 Basis of Approval. Approval of plans and specifications for the construction of Improvements shall be based, among other things, on the adequacy of the Lot's dimensions; conformity and harmony of external design with neighboring Improvements;the effect of location and use of Improvements on neighboring Lot's operations and uses; the relationship of the topography,grade,finished ground elevation and landscaping of the Lot being improved to that of neighboring Lots; proper facing of the main elevation with respect to nearby streets; and the conformity of the plans and specifications to the purpose and general plan and intent of this Declaration and the design and sign standards and applicable rules adopted(or thereafter amended DECLARATION OF COVENANTS.CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 9 in whole or in part)by the Declarant. Approval shall not be arbitrarily or unreasonably withheld or delayed. 7.4 Variances and Waivers. Declarant may authorize,in its sole discretion, a variance or waiver from compliance with the requirements of any conditions and restrictions contained in this Declaration, of the design and sign standards and applicable rules adopted by the Declarant, or of any prior approval when circumstances such as topography, natural obstructions, aesthetics or environmental considerations or hardship may warrant or when otherwise determined reasonable by the Declarant. Such variance or waiver must be evidenced in a writing signed by the Declarant. The granting of such shall not operate to waive any of the terms and provisions of this Declaration, the design and sign standards or the applicable adopted rules for any purpose except as expressly stated in the written wavier or variance for the specific Lot covered thereby, 7.5 Application. To request approval for the construction, alteration, modification, removal or demolition of any Improvements, the applicant shall submit a written application in a form reasonably required by the Declarant, which must be signed by the Owner of the Lot and contain all information reasonably requested and be accompanied by all other material to be submitted as hereafter provided. All applications must contain, or have submitted therewith, the following material (collectively, the "plans and specifications") prepared in accordance with acceptable architectural standards and submitted with the application form: (a) a site plan showing the location of the Building and all other Improvements, including fences and walls on the Lot, storm water control facilities, set backs, curb cuts, driveways,parking areas and other pertinent information relating to the Improvements; (b)building plans consisting of a preliminary or final footprint for the Building, elevation drawings of the north, south, east and west sides, and detailed exterior specifications, which shall indicate,by sample, all exterior colors,materials and finishes, including for the roof, to be used; and (c) a landscape plan for portions of the Lot to be landscaped showing the location, type and size of trees, plants, ground cover, shrubs, berming and mounding, grading, drainage, sprinkler system,fences,exterior lights,driveways,parldng areas and walkways,mailbox,parking lot, striping locations, striping color, and directional signage. The applicant may also be required to fi mush additional specifications,drawings,material samples or such other information as the Declarant shall deem necessary or convenient for the purpose of reviewing and processing the application. Additionally,the applicant may be required to pay a fee at the time the application is submitted, the amount of such fee to be based upon the reasonable anticipated expenses of the Declarant to be incurred in reviewing and processing the application and the Declarant may delay the review until such fee is paid. 7.6 Decision. All applications shall be either approved or denied within 30 days after the Declarant receives a properly submitted application and any processing fee. The decision of the Declarant may be in the form of an approval, a conditional approval or a denial. A conditional approval shall set forth with particularity the conditions upon which the application is approved, and the applicant shall be required to affix a copy of such conditions to the working drawings or DECLARATION OF COVENANTS.CONDITIONS.RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 10 blueprints, which shall be kept on the job site during the entire course of the work to which such plans relate. A denial of an application shall state with particularity the reasons for such denial. 7.7 Construction Deposit. Prior to the connnencennent of construction, alteration, modification, removal or demolition of a Building or other Improvements, the Owner of the Lot shall be required to post a deposit with the Manager in accordance with the rules adopted by the Declarant, to ensure compliance by the Owner's contractor and subcontractor with all rules adopted by the Declarant with respect to the construction, alteration, modification, removal or demolition of a Building or other Improvements within the Project. ARTICLE 8 COMMON AREA MAINTENANCE AND ASSESSMENTS 8.1 Common Area Maintenance. (a) Except as otherwise set forth herein,Manager shall be responsible for: (i) Drive and Parking Areas. Maintaining all paved surfaces and curbs in a smooth and evenly covered condition, including, without limitation, replacing base, skin patching, resealing and resurfacing (for the purpose of this section, an overlay of the drives and parking areas shall be considered to be a maintenance item). Notwithstanding the foregoing, the Manager shall not be responsible for maintenance or insurance of any service facilities, drive-up or drive through customer service facilities,fuel facilities,menu boards adjacent to a drive-up lane or window, or monument signs. (ii) Debris and Refuse. Periodically removing all papers, debris, filth, refuse, ice and snow, including periodic vacuuming and broom sweeping to the extent necessary to keep the Common Area in a first-class, clean and orderly condition. All sweeping shall be performed at appropriate intervals during such times as shall not interfere with the conduct of business or use of the Common Area by Permittees. Snow shall be plowed as soon as a two inch accumulation occurs and replowed as necessary to maintain less than a two inch accumulation at all times;upon cessation of the snowfall,the Common Area shall be plowed to the paved surface. (iii) Non-Occupant Signs and Markers. Maintaining,cleaning,repairing and replacing directional, stop and handicapped parking signs and markers; restriping of parking lots and drive lanes as necessary to maintain parking space designation and traffic direction; and keeping clearly marked fire lanes,loading zones, no parking areas and pedestrian crosswalks. (iv) Lighting. Maintaining, cleaning, repairing and replacing Common Area lighting facilities, including light standards, wires, conduits,lamps,ballasts and lenses,time clocks and circuit breakers for the Common Area lighting. Each Owner shall maintain and provide electricity to all lighting fixtures attached to its respective building(s), at said owner's sole cost and expense. (v) Landscaping. Maintaining and replacing all landscape plantings, trees and shrubs, including those adjacent to the exterior walls of Buildings, in an attractive and thriving condition, trimmed and weed free. Maintaining and replacing landscape planters, DECLARATION OF COVENANTS,CONDITIONS.RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS ti including those adjacent to exterior walls of Buildings, and modifying irrigation systems to satisfy governmental water allocation or emergency requirements. (vi) Obstructions. Keeping the Common Area free from any obstructions,including those caused by the sale or display of merchandise,unless such obstruction is permitted under the provisions of this Declaration. (vii) Sidewalks. Maintaining, cleaning, repairing and replacing sidewalks within and along public rights of way and interconnecting pathways,but excluding those adjacent and contiguous to Buildings within the Project. Sidewalks shall be cleaned at least monthly and shall be swept at appropriate intervals during such times as shall not interfere with the conduct of business or use of the Common Area. (viii) Supervisory Personnel. Providing professional supervisory personnel for the Common Area,if reasonably required. (ix) Traffic. Supervising traffic at entrances and exits to the Project and within the Project as conditions reasonably require in order to maintain an orderly and proper traffic flow. (x) Security. If and only to the extent approved by the Declarant in its sole discretion,providing security services for the Common Area. (xi) Public Rights of Wray. Maintaining, cleaning, repairing and replacing all sidewalks in the public rights of way adjacent to the Project, maintaining and replacing all landscape plantings, trees and shrubs in the public rights of way in an attractive and thriving condition, trimmed and weed free, and periodically removing papers and debris from the public rights of way. 8.2 Owner-Maintained Lots. If Declarant directs or otherwise agrees in writing to allow Owners to maintain the Common Area on their own Lot, such Owner shall at its own cost and expense maintain the Conunon Area on such Lot in accordance with standards set forth herein and also pay a separate annual fee approved by the Declarant,in its sole discretion, as contribution toward the repair and maintenance of the common drive aisles, storm water facilities and other Common Area Improvements. Lots authorized or directed in writing by the Declarant to be maintained by their Owners may sometimes be collectively referred to herein as "Owner- Maintained Lot(s)." Notwithstanding anything to the contrary herein,the Owner of each Lot shall keep the unimproved Common Area on such Lot mowed, weed free and litter free. 8.3 Maintenance Standard. Whether maintained by the Manager or the Lot Owner, the minimum standard of maintenance for the Common Area on all the Lots shall be comparable to the standard of maintenance followed in other first class nixed use commercial developments of comparable size in the metropolitan area in which the Project is located, and in compliance with the provisions of this Declaration and all applicable governmental laws,rules, and regulations. All Common Area Improvements to the Lots shall be repaired or replaced with material s at least equal DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 12 to the quality of the materials being repaired or replaced so as to maintain the architectural and aesthetic harmony and integrity of the Lots and Project as a whole. (a) Following the construction of Improvements thereon,maintenance of Common Area shall include,without limitation: (i) maintaining and repairing or replacing all sidewalks and the surface of the parking and roadway areas, removing all papers, debris and other refuse from and periodically sweeping all parking and road areas as reasonably necessary to maintain the same in a clean, safe and orderly condition; (ii) maintaining appropriate lighting fixtures for the parking areas and roadways; (iii) maintaining marking,directional signs,lines and striping as needed; and (iv) maintaining landscaping, and performing any and all such other duties as are necessary to maintain such Common Area in a clean, safe and orderly condition. 8.4 Maintenance of Unimproved Lots. Until such time as Buildings and/or Common Area Improvements are constructed on a Lot by the Owner,the Owner thereof shall maintain the unimproved Lot in a clean,safe and orderly condition and shall take reasonable measures to control weeds,dust, dirt,litter or debris. 8.5 Damage to the Common Area. if any portion of the Common Area is damaged or destroyed by any cause whatsoever,whether insured or uninsured,the Owner of the Lot with the damaged Common Area shall, at its sole cost and expense promptly replace, repair, restore and rebuild such Common Area to its condition prior to such damage or destruction; or promptly raze and remove such damaged or destroyed Improvements and either landscape or pave and maintain. any such Lot (including concealment of any exposed slab or foundation thereof) in a manner consistent with the Common Area and other Lots (or with such changes in compliance with this Declaration and as approved by Declarant). 8.6 Regular Assessments. The Manager shall expend only such funds as are reasonably necessary for the operation,repair, replacement and maintenance of the Common Area, and shall pay such costs when due. Subject to Section 8.2, the Manager shall levy Regular Assessments against the Lots and the Owners shall pay the Regular Assessments to the Manager subject to the following: (a) Restaurants may be assessed a Lot specific Special Assessment as set forth in Section 8.7 for parking lot cleaning. (b) Subject to an annual reconciliation, the Manager may estimate the annual Shared Maintenance Costs and levy Regular Assessments against each T-ot and invoice each Owner in advance to be paid on a monthly basis on or before the first day of each month for the estimated Regular Assessment. The Manager shall prepare an annual statement in reasonable detail showing the actual Shared Maintenance Costs incurred,the allocation of such expenses,and DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 13 the difference between the amount owed and the amounts previously paid by such Owner. The Manager will prepare and transmit the annual statement within 120 days after the end of each calendar year. All annual statements shall be deemed correct unless disputed in writing within 90 days after received. The payment obligations for such charges will not be affected in any manner by the late submission of the statement or by any estimate or statement which is subsequently modified by actual or corrected figures. Any overpayment by an Owner will be credited against the total estimated Regular Assessment for the following period and the remaining monthly invoices for the period shall be modified accordingly. (c) Regular Assessments shall commence for each Lot and the first monthly payment thereof shall commence on the first day of the month following the earlier of(i)issuance of any permit for construction of any Improvements on the Lot; or (ii) upon construction of Common Area Improvements which benefit or service the Lot. If an Owner fails to pay the entire amount of such invoice within 30 days it shall be subject to the provisions of Article 15. (d) Regular Assessments shall include all reasonable expenses incurred by Manager for labor (including reasonable compensation to employees of the Manager), services, equipment,supplies, and materials in connection therewith, and a management fee,payable to the Manager,of not more than fifteen percent(15%) of the costs incurred. (e)The Manager shall maintain complete and accurate records of all Shared Maintenance Costs for a period of at least two (2) years following the release of the annual statement provided for in this Section 8.6. Within 90 days after receipt of the annual statement and with at least 10 days' prior written notice to the Manager, an Owner may inspect the records for all Shared Maintenance Costs incurred during the preceding calendar year. The Owner's inspection shall take place at a reasonable time during ordinary business hours at the Manager's main office, or at such other location reasonably designated by the Manager. If the Owner's inspection reveals an overpayment or underpayment, the Owner shall provide a detailed written report of such to the Manager. If the Manager agrees there was an overpayment,it shall be credited against the total estimated Regular Assessment for the subsequent period and the remaining monthly invoices for the subsequent period shall be modified accordingly. If the Owner's inspection reveals an underpayment,the owner shall reimburse the Manager its proportionate share of any such underpayment within 30 days. If the Manager disputes the Owner's assertion of an overpayment, the Owner may obtain an audit by a mutually agreeable independent certified public accountant at the Owner's expense. If the audit reveals there was an overpayment,the amount of overpayment shall be credited against the total estimated Regular Assessment for the subsequent period and the remaining monthly invoices for the subsequent period shall be modified accordingly. If the audit reveals that the Manager overstated expenses by more than 5%, the Manager shall also reimburse the Owner the reasonable costs of the audit within 30 days. (f)The Shared Maintenance Costs shall first be reduced by all payments paid or payable by the Owner-Maintained Lots with respect to the applicable period and then be allocated among all the remaining improved Lots as part of the Regular Asssessment. (g)Notwithstanding anything to the contrary herein, Shared Maintenance Costs shall not include marketing costs related to the Project, capital improvement costs related to any Conilnon Area Improvements or depreciation thereof,wages, salaries or other compensation paid to executive employees of Declarant; costs associated with the operation of the business of the DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 14 entity which constitutes Declarant,which costs are not directly related to maintaining or operating the Common Areas, any expense representing an amount paid for products or services(other than overall property management) to a person or entity related to or affiliated with Declarant that exceeds fair market value of such services and products; fees incurred in disputes with Owners or Permittees. 8.7 Special Assessment. If an Owner or Permittee of one or more particular Lots fails to repair damage to the Common Area as set forth in Section 8.5 or for any other reason causes the Manager to incur additional, unusual or extraordinary maintenance costs, the Manager shall segregate those costs and levy a special assessment("Special Assessment")against the Lot or Lots owned by the Owner that caused the Manager to incur the additional, unusual or extraordinary maintenance cost. Special Assessments shall be a separate line item on the Manager's invoice to the Owner provided for in Section 8.6. ARTICLE 9 MAINTENANCE OF BUILDINGS AND UTILITY LINES 9.1 Building Improvements. (a) After completion of construction, each Owner shall maintain and keep the exterior portion of the Buildings located on its Lot in a first-class condition and state of repair in compliance with all applicable Laws and the provisions of this Declaration. Each Owner shall store all trash and garbage in adequate containers, locate such containers within a screening enclosure approved by Declarant so that they are not readily visible, and arrange for regular removal of the trash. Trash enclosures for restuarants shall include visual screening doors or gates approved by Declarant. (b) If any of the Buildings are damaged by fire or other casualty(whether insured or not), the Owner thereof shall, subject to governmental regulations and/or insurance adjustment delays,promptly remove the debris resulting from such event,install visual screening, and within a reasonable time thereafter perform one of the following: (i) repair or restore the damaged Building in accordance with all applicable provisions of this Declaration; (n) construct another Building in such location in accordance with all applicable provisions of this Declaration; or (iii) demolish the damaged portion and/or the balance of such Building and restore the cleared area to either a hard surface or landscaped condition that shall be considered Common Area until a replacement Building is constructed. 9.2 Utility Lines. (a) Each Owner shall maintain and repair, or cause to be maintained and repaired, in a clean, safe and orderly condition, all Private Utility Lines used by such Owner,regardless of where located, unless the provider of the utility service or a public or quasi-public authority has agreed to maintain such Utility Lines. Each Owner shall give 20 days notice to other Owners before performing any maintenance,replacement and/or repair of private Utility Lines located on DECLARATION OF COVENANTS,CONDITIONS.RFSTRICTTONS AND EASEMENTS FOR VICTORY COMMONS 15 the other Owner's Lot(except in an emergency the work may be initiated with reasonable notice). The maintenance, replacement and/or repair on another Owner's Lot shall occur after normal business hours when reasonably feasible, and in a manner that minimizes disruptions. Any Owner performing or causing to be performed maintenance or repair work shall promptly pay all costs and expenses associated therewith, diligently complete such work as quickly as possible and promptly clean the area and restore the affected portion of the Common Area to a condition equal to or better than the condition which existed prior to the commencement of such work. (b) Common Utility Lines shall be maintained, repaired and/or replaced by the Manager and the costs and expenses related thereto shall be allocated to the Owners of the Lots served by such Common Utility Line in accordance with the standards set forth in Section 8.1 above. ARTICLE 10 EASEMENTS 10.1 Ingress and EgKess Easement. Declarant hereby declares, establishes, creates and grants to the Owner of each Lot for the benefit of each Lot: (i)a non-exclusive perpetual easement for vehicular ingress, egress, and passage of vehicles over and across all parking, roadways, driveways, and entrance ways as may be located on the Common Area of any Lot; and(ii) a non- exclusive perpetual easement for the passage and accommodation of pedestrians over and across the parking, driveway and sidewalk areas as may be located on the Common Area of any Lot. 10.2 Cross Parking Easement. Declarant hereby declares,establishes,creates and grants to the Owner of each Lot for the benefit of each Lot a non-exclusive perpetual easement for parking of vehicles over and across all parking areas located on the Common Area of any Lot. The foregoing easements shall not be construed to, and shall not, create any other easement for the installation or construction of parking areas by any Owner on the Lot of another Owner. 10.3 Avoidance of Prescription. Subject to Section 10.6,the Owner of each Lot shall be entitled to interrupt or disturb the parking and passage of vehicular and pedestrian access,ingress, and egress over and across all roadways, driveways, entrance ways, and waWways located on the Common Area on the Owner's Lot for a period not to exceed one(1)day in each calendar year for the purpose of preventing the creation of prescriptive easement rights in and to such areas in favor of the public. 10.4 Utilities. (a) Each Owner hereby grants and conveys to each other Owner nonexclusive perpetual easements in, to, over, under, along and across those portions of the Common Area located on the grantor's Lot necessary for the installation, operation, flow, passage, use, maintenance,connection,repair,relocation,and removal of Utility Lines serving the grantee's Lot, including, but not limited to, sanitary sewers, storm drains, and water (irrigation, fire and domestic), gas; electrical, telephone and communication lines. (b) All Utility Lines shall be underground except: (i) ground mounted electrical transformers, switch gear and ground sleaves; DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 16 (ii) ground level or above ground surface water collection,retention and distribution facilities which are or became a part of the Project; (iii) as may be necessary during periods of construction,reconstruction, repair or temporary service; (iv) as may be required by governmental agencies having jurisdiction over the Project; (v) as may be required by the provider of such service; and (vi) fire hydrants. (c) At least twenty (20) days prior to any installation, maintenance, connection, repair, relocation or removal of Utility Lines located-on another Owner's Lot pursuant to the casement granted herein (except in an emergency, the work may be initiated with reasonable notice),the grantee Owner shall first provide the grantor Owner with a written statement describing the need for such work; shall identify the proposed location of the Utility Linel the nature of the service to be provided, and the anticipated commencement and completion dates for the work and shall furnish a certificate of insurance showing that its contractor has obtained the minimum insurance coverage required by Section 14.2. (d) The location of any Utility Line shall be subject to the prior written approval of the Owner whose Common Area is to be burdened thereby, which approval shall not be unreasonably withheld or delayed. The easement area shall be no wider than necessary to reasonably satisfy the requirements of a private or public utility, or five feet (5') on each side of the centerline if the easement is granted to an Owner. Upon request of any grantee Owner, the grantor Owner shall cooperate with and execute an appropriate easement instrument as may be required by the City of Meridian,utility company or other governing body,which cooperation and execution shall not be unreasonably withheld or delayed. Upon request, the grantee Owner shall provide to the grantor Owner a copy of an as built survey showing the location of such Utility Line. (e) Except as otherwise agreed to by the grantor Owner and the grantee Owner,any Owner installing Private Utility Lines shall pay all costs and expenses with respect thereto and shall cause all work in connection therewith(including general clean up and proper surface and/or subsurface restoration) to be completed as quickly as possible and in a zn.anner so as to minimize interference with the use of the Common Area. In addition,the grantee of any Private Utility Line shall Indemnify the grantor Owner from all Liabilities arising out of or resulting from the installation,maintenance and operation of the Private Utility Line. (f) Each grantor Owner shall have the right to relocate a Utility Line located on its Lot with twenty(20)days' prior written notice to the grantee Owner so long as such relocation: (i) shall not be commenced during the months of October, November or December without written consent of the Owners of the Lots served thereby which consent shall not be unreasonably withheld conditioned or delayed; DECLARATION OF COVENANTS,CONDITIONS.RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 17 (ii) shall not interfere with or diminish the utility service to the grantee Owner during its business hours; (iii) shall not reduce or unreasonably impair the usefulness or function of such Utility Line; (iv) shall be performed without cost or expense to the grantee Owner; (v) shall be completed using materials and design standards which equal or exceed those originally used; and (vi) shall have been approved by the provider of such service and the appropriate governmental or quasi-governmental agencies having jurisdiction thereover. Documentation of the relocated easement area, including the furnishing of an "as-built" survey, shall be performed at the grantor Owner's expense and shall be accomplished as soon as possible following completion of such relocation. 10.5 Storm Water, (a) The Common Area grades and the surface water drainage/retention system for the Project shall be initially constructed in strict conformance with the details approved by the Declarant; and (b) Owners shall not alter or permit to be altered the surface of the Conmion Area or the drainage/retention system constructed on its Lot if such alteration would materially increase the flow of surface water onto an adjacent Lot, either in the aggregate or by directing the flow of surface water to a limited area. 10.6 Easement Conditions and Limitations. The easement rights granted or reserved herein shall be subject to the following conditions, as well as any other applicable provisions contained in this Declaration. (a)Except as expressly allowed in this Declaration,prior to closing off any portion of the Coinnion Area, each Owner shall give advance written notice to each other Owner of its intention to do so, and shall attempt to coordinate such closing with each other Owner so that unreasonable interference with the passage of pedestrians or vehicles does not occur. (b)Not more than once per calendar quarter and for periods not to exceed one week in duration, each Owner shall have the right to block off and use a portion of the parking areas on its own Lot for promotional events, including outdoor demonstrations and outdoor sales so long as the Owner retains sufficient open parking spaces on its own Lot to prevent overburdening of an adjacent Lots' parking. (c) Each Owner that has established a temporary staging and/or storage area on its Lot for construction purposes reserves the right to exclude and restrain persons from using the staging and/or storage area during the period of time it is used for staging and construction purposes. DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS is (d) Owners shall not grant any easements for the benefit of property outside of the Project. (e) Each Owner shall have the right at any time to exclude and restrain any person who is not a Permittee from using the Common Area on its Lot. ARTICLE 11 PROHIBITED USES 11.1 Prohibited Uses. (a) The Project shall. be used only for retail sales, offices, restaurants or other commercial purposes consistent with the operation of a first-class commercial mixed use project. Without limiting the generality of the foregoing,the following uses are prohibited unless approved in writing by the Declarant, which approval may be granted or withheld in the sole discretion of the Declarant 0) any use which emits an obnoxious odor, noise or sound which can be heard or smelled outside of any Building in the Project, except that this provision shall not prohibit normal and ordinary odors which are associated with uses authorized by local zoning ordinances; (ii) any mobile home park, trailer court, labor camp, junkyard or stockyard, except that this provision shall not prohibit the temporary use of construction trailers during periods of construction,reconstruction or maintenance; (iii) any dumping, disposing, incinerating, storing, processing or reduction of garbage or scrap (exclusive of garbage compactors located near the rear of any Building); (iv) any fire sale, going out of business sale, bankruptcy sale (unless pursuant to a court order)or auction house operation; (v) any central laundry, central dry cleaning plant, laundromat or other self-service laundry facility, except that this provision shall not prohibit nominal supportive facilities for on-site service oriented to pickup and delivery by the ultimate consumer, as the same maybe found in first-class Projects; (vi) any car wash, service station, or automobile, truck, trailer or recreational vehicles sales,display,rental,repair, or service operation or body shop or junk yard; (vii) any veterinary hospital or animal raising facility, except that this prohibition shall not prohibit pet shops or pet supply superstores and veterinary services which are incidental thereto; (viii) any mortuary, funeral home or crematory; (ix) any movie theater, live performance theater, adult book store, adult video store, adult entertainment club or night club, or establishment selling or displaying nudity DECLARATION OF COVF.NANTS,C"ONDTTTONS.RF.STRIC;TTONS AND EASEMENTS FOR VICTORY CONTMONS 19 (including, but not limited to, partially clothed dancers or wait staff) or selling, renting or exhibiting pornographic materials; (x) any bar,tavern, restaurant or other establishment whose reasonably projected annual gross revenues from the sale of alcoholic beverages for on-premises consumption exceeds Fifty percent(50%)of the gross revenues of such business; (xi) store selling liquor,beer, or wine, except the sale of liquor, beer or wine by a full-line grocery store, drug store or convenience store shall be permitted and the foregoing will not limit the sale of liquor,beer or wine for on premises consumption by a restaurant if such restaurant does not derive more than fifty percent(50%) of its gross annual sales revenue from the sale of alcoholic beverages; (xii) any flea market, second-hand or surplus store, thrift shop, pawn shop or other business principally engaged in the sale of used merchandise, amusement or video arcade, pool or billiard hall, bowling alley, skating rink, massage parlor, tattoo parlor, body piercing establishment or dance hall, except that this provision shall not prohibit a restaurant from including three(3) or fewer video games as an incidental use to its operations; (xiii) any school,child or day care center,church or other related religious or educational facility,or religious reading room; (xiv) any payday loan or check cashing operation, head shop,vape store, or store selling marijuana,CBD derivatives or products or drug-related paraphernalia; (xv) any casino or other gambling facility or operation,including,but not limited to, off-track or sports betting parlors, table games such as black jack or poker, slot machines,video gambling machines and similar devices,and bingo halls,except that this provision shall not apply to a restaurant so long as no money is wagered or changes hands in connection with any such activity; (xvi) any refining, smelting, agricultural or mining operation, slaughterhouse or other use that produces an excessive quantity of dust, dirt or ash; (xvii) any use involving the storage, display or sale of explosives other damaging or dangerous hazards(including but not limited to fireworks) (xviii) any residential use,including,but not limited to, any hotel or motel; (xix) any carnivals,fairs, auctions; or (xx) any illegal use. (b)This Declaration is not intended to, and does not, create or impose any obligation on an Owner to operate,continuously operate or cause to be operated a business or any particular business on any Lot. DF,C LARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 20 l l.2 Use of Common Area. (a) Merchandise, equipment or services, including, but not limited to, vending machines,promotional devices and similar items, shall not be displayed,offered for sale or lease, or stored on the sidewalks or within the remainder of the Common Area without the prior written approval of the Declarant, which approval may be granted or withheld in the sole discretion of the Declarant. The foregoing prohibition shall not apply to any recycling center or trash enclosures required by law,the location of which shall be subject to the approval of the Declarant. (b) Except to the extent required by law, Pennittees shall not be charged for the right to use the Common Area; for the purposes of this provision, a tax assessment or other form of charge applicable to parking spaces or parking lots may be deemed by the Declarant to be an imposition required by law. (c) Each Owner shall use commercially reasonable efforts to cause its Permiltees to park vehicles only on its Lot. 11.3 Hazardous Materials. Owners shall not use or permit the use of Hazardous Materials on, about,under or in its Lot or any other portion of the Project, except in the ordinary course of its usual business operations conducted thereon, and any such use shall at all times be in compliance with all environmental laws which relate to or deal with human health or the environment. Each Owner shall Indemnify the other Owners from and against all Liabilities, including,but not limited to,costs of investigation, litigation and remedial response arising out of any Hazardous Materials released by Permittees of such Owner, whether or not in the ordinary course of business. ARTICLE 12 COMMON AREA LIGHTING 12.1 Common Area Lighting. All parking lots and other Common Area shall be illuminated utilizing fixtures of the type designated by the Declarant. The location,height, finish, pole,base, heads and lamp type for all Common Area lighting,including the lighting intensity, are subject to approval by the Declarant. Generally, no less than 1.5 footcandle intensity shall be provided. Maximum intensity level shall generally not exceed 15 footcandles. After completion of the Common Area lighting system on its Lot,an Owner shall keep its Lot fully illuminated each day from dusk to at least 11:00 p.m.unless the Declarant agrees upon a different time. Each Owner shall keep exterior Building security lights, plus each of the lights located on light standards adjacent to any access drive in the Project illuminated from dusk until dawn. During the term of this Declaration, each Owner grants an irrevocable license to the other Owners for the purpose of permitting light to shine on their Lot from the Common Area lighting fixtures on adjoining Lots. ARTICLE 13 SIGNS 13.1 General Sign Requirements (a) All signs shall comply with the provisions of this Declaration. (b) A detailed sign drawing shall be submitted to Declarant(or its designated agent) for approval that depicts the sign on the building or common area sign location, size, layout, and DECLARATION OF COVENANTS.CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 21 color of the proposed sign, including all lettering and/or graphics, materials, attachment devices, construction and fabrication details. Tenants or an owner shall obtain approval of the sign drawing prior to fabrication and installation. (c) A sign permit shall be obtained from the applicable governing body. (d) The tenant or owner of the sign shall pay for installation and maintenance of all signs. (e)When a building is vacated, signs shall be removed and the building penetrations sealed or cabiiiet panels enclosed with blank panels. 13.2 Common Area.Monument or Pylon Signs. (a) Subsequent to the recording of this Declaration new Common Area signs, or replacement thereof, shall not be permitted within the Project without the approval of the Declarant. If a Common Area sign is constructed with the approval of the Declarant,the Owner(s) and/or Permittees whose names appear on such sign shall be responsible for the sign's operation and maintenance on a first-class basis, and each Owner or Permittee having a sign panel thereon shall maintain and illuminate such panel at its expense. All signs shall comply with the sign standards and applicable rules established by the Declarant for the Project,and the Declarant shall have the right to approve the design, size and location of all Common Area signs, including the panel inserts. (b)A monument-type sign will be permitted along the primary frontage for each Lot subject to the following requirements: (i) The maximum height and sign surface area shall conform to the sign standards and applicable rules established by the Declarant. (ii) All sign panels or lettering shall be illuminated. Where background panels are opaque, letters shall be of a type or construction allowing them to be illuminated. All light elements, transformers and ballasts shall be concealed. Panels having removable or changeable lettering are prohibited_ (iii) The base and supporting structure must be of a decorative nature utilizing the same materials,colors and architectural character as provided for in the sign standards and applicable rules established by Declarant. Support poles shall be decorative or otherwise concealed within the structure or sheathed with decorative column wraps, cabinets and finishes in accordance with the sign standards established for the Project. (iv) The sign configuration and orientation shall be uniform and conform to the sign requirements set forth in Section 13.4 below and standards established by the Declarant. 13.3 Building Signs. (a) Signage shall not be placed on any Building located on any Lot except as expressly permitted pursuant to this Article 13. The plans for any signage of any Permittee must DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 22 first be approved by the Declarant in accordance with Article 7, comply with applicable governmental laws and regulations, and the following provisions. (b) Building signs may not be painted on the surface of any Building or placed on canopy roofs extending above the Building roof, placed on penthouse walls or extend above the parapet, canopy,or the top of the wall upon which it is mounted. (c) Building signs shall be mounted flat on the Building facade and may not be placed at any angle to the Building unless it is located under an awning and is at least eight(A)feet above the sidewalk. All building signs shall be individual, lighted channel letters that are flush- mounted with concealed fasteners to the building facade. Channel letters shall not exceed 30"tall by 5" deep and shall be installed a minimum of two (2) feet away from the edge of any property line and shall be centered vertically and horizontally on the centerline of the storefront facade, unless otherwise approved in writing by Declarant. Channel letters shall be fabricated from .063 gauge or thicker aluminum with welded returns. All exposed aluminum joints shall be ground smooth. All aluminum surfaces shall be primed with zinc chromate primer and finish coated with Acrylic Polyurethane to match PMS 431 dark bronze,or black if approved in writing by Declarant. All surface finishes must be satin finish. Letter faces shall fabricated from flat 3/16"Plexiglas or equivalent acrylic glass trimmed with 1" Jewelite or equivalent trim caps. All bolts, fasteners, clips and any other hardware shall be painted to match building background color. All penetrations of the fascia shall be sealed using gaskets and sealant. Conduit shall be concealed and there shall be no exposed tubing. Shop drawings of all signage shall be submitted to Declarant for approval PRIOR to fabrication and installation. (d) Building signs shall not consist of. (i)banners; (ii)paper or cardboard signs; or (iii)temporary signs,stickers or decals, except a small sticker or decal indicating hours of business, emergency telephone numbers, acceptance of credit cards and other similar information may be placed near the entrance of each premises. (e) Subject to prior written approval from the Declarant, in its sole discretion, temporary "For Sale", "For Lease", "Coming Soon" and "Grand Opening" or other short term promotional signs may be placed in locations approved by Declarant for up to 90 days. (f) Building signs shall not include tag lines or bylines, except when integrated in standard prototypical signs already in use by national or regional businesses; or identify leased departments and/or concessionaires,specific brands or products for sale or services offered,unless such identification is part of a trade name. Single occupant Buildings may have secondary signs as approved by the Declarant. (g) The sign configuration and orientation shall be uniform and conform to the sign requirements set forth in Section 13.4 below and standards established by the Declarant. (h) Building Signs shall not have exposed raceways, exposed neon tubes, exposed ballast boxes, or exposed transformers, except exposed raceways may be used if approved by Declarant in writing and if the primary purpose is to minimize damage to the Building to which the sign is attached and it is designed, configured and colored to conceal it when viewed from the Common Area. DECLARATION OF COVFVANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 23 13.4 Si=Restrictions. (a) Exterior identification signs are prohibited within the Project except as expressly permitted in this Article 13. (b) The following signs and sign features are prohibited: (i) flashing, moving or audible signs, except and the Declarant may approve a reader board or other panel containing multiple LED or other lighting elements capable of displaying time, temperature and varying graphics or messages; (ii) signs employing exposed raceways,exposed florescent tubing,neon tubes, ballast boxes, or transformers, except exposed raceways may be used if approved by Declarant in writing and if the primary purpose is to minimize damage to the Building to which the sign is attached and it is designed, configured and colored to conceal it when viewed from the Common Area. (iii) Banners; paper or cardboard signs; temporary signs, stickers or decals; except(A)the placement at of each occupant's entrance a small sticker or decal indicating hours of business, emergency telephone numbers, accepted payment methods and other similar information, and (B) "For Sale" signs, "For Lease" signs, "Coming Soon" signs and "Grand Opening"signs withthe prior approval of the Declarant not to exceed ninety(90)days per instance; (iv) tag lines or bylines, except when integrated in standard prototypical signs already in use by establishments operating at a regional or national level; and (v) signs of any type attached to or temporarily placed within display windows except when constructed of self-supporting material placed or suspended at least 18" behind the glass. (c) Notwithstanding anything contained in this Article 13 to the contrary, and subject to approval by the Declarant and adherence to all sign standards and applicable rules adopted (or thereafter amended in whole or in part) by the Declarant, each Owner shall be permitted to place the following signs within the Conilnon Area located on its Lot: (i) directional signs or informational signs such as "Handicapped Parking"; (ii) temporary signs displaying leasing information; (iii) one (1)temporary sign to collectively identify the Business Name and/or occupant, the general contractor working on a construction job and the bank or other financial institution providing financing for such construction; and (iv) menu boards on the Building or immediately adjacent to a drive-up or drive-through lane or window,but subject to approval of the Deelarant of the size,location and construction quality. DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 24 ARTICLE 14 INSURANCE 14.1 Commercial General Liability Insurance. (a) Each Owner, as to its Lot only, shall maintain or cause to be maintained in full force and effect commercial general liability insurance with a combined single limit of liability of not less than Five Million Dollars ($5,000,000.00)for bodily injury,personal injury and property damage arising out of any one occurrence- (b)Each Owner shall Indemnify each other Owner fiom and against all Liabilities asserted or incurred in connection with or arising from or as a result of the death of or injury to any person or loss or damage to the property of any party which shall occur on the Lot owned by the indemnifying Owner, except to the extent such Liabilities are caused by the negligence or the willful act or omission of the indemnified party or its agents or employees. 14,2 Insurance During Construction. (a) Prior to commencing any construction activities within the Project,each Owner shall obtain,or require its contractor to obtain,and(hereafter maintain so long as such construction activity is occurring, at least the minimum insurance coverages set forth below: (i) worker's compensation insurance as required by any applicable law or regulation; and (ii) employer's liability insurance in the amount of $300,000 each accident for bodily injury, $500,000 policy limit for bodily injury by disease and $300,000 each employee for bodily injury by disease. (iii) Commercial general liability insurance covering all operations by or on behalf of the contractor, which shall include the following minimum limits of liability and coverages: (A)Required coverages: (1) premises and operations; (2) products and completed operations; (3) contractual liability, insuring the indemnity obligations assumed by the contractor under the contract documents; (4) broad form property damage (including completed operations); (5) explosion, collapse and underground ("XCU") hazards; and (6) personal injury liability. (B)Minimum limits of liability: (1) $1,000,000 each occurrence for bodily injury and property damage; DECLARATION OF COVENANTS,CONDITIONS,RESTRICTION S AND EASEMENTS FOR VICTORY COMMONS 25 (2) $1,000,000 for personal injury liability, (3) $2,000,000 aggregate for products and completed operations, which shall be maintained for a two (2)year period following final completion of the work; and (4) $2,000,000 combined single limit coverage per occurrence of bodily injury, property damage or combination thereof, with a $4,000,000 aggregate cap per policy year. (b) If the construction activity involves the use of another Owner's Lot, then the Owner of such Lot shall be named as an additional insured and such insurance shall provide that the same shall not be cancelled, or reduced in amount or coverage below the requirements of this Section 14.2,without at least thirty(30) days prior written notice to the named insureds and each additional insured. If such insurance is cancelled or expires, then the constructing Owner shall immediately stop all work on and use of the other Owner's Lot until either the required insurance is reinstated or replacement insurance is obtained. (c) Each Owner shall Indemnify each other Owner from and against all Liabilities, including liens and from any accident,injury or loss or damage whatsoever occurring to any person or to the property of any party arising out of or resulting from any construction activities performed or authorized by such indemnifying Owner. The foregoing shall not be applicable to either events or circumstances caused by the negligence or willful act or omission of such indemnified Owner, its licensees, concessionaires, agents, servants, employees, or anyone claiming by, through or under any of them. 14.3 Property/Casualty Insurance. (a) Effective upon the commencement of construction of any Building on its Lot and so long as such Building exists, each Owner shall carry, or cause to be carried, property/casualty insurance with "extended" or"all risk" coverage, in the amount of 100%of the full replacement cost thereof(excluding footings,foundations or excavations). At a minimum,the insurance coverage required by this Section 14.3(a) shall extend to loss or damage by fire, windstorm, cyclone, tornado, hail, explosion, riot, riot attending a strike, civil commotion, malicious mischief, vandalism, aircraft,vehicle, smoke damage and sprinkler leakage. (b) To the full extent permitted by law,each Owner("Indemnitor")shall Indemnify each other Owner ("Indemnitee") from and against all Liabilities asserted by or through any Permittees using or on the Indemnitor's Lot for any loss or damage to the property of such Permittee located on the Indernnitor's Lot, which loss or damage is of the typo generally covered by the insurance required to be maintained under this Section 14.3, irrespective of any negligence on the part of the Indemnitee which may have contributed to or caused such loss. 14.4 Insurance Policy Requirements. (a) All insurance coverage required by this Article 14 shall be provided under one or more of the following: (i) an individual policy covering the particular location; DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 26 (ii) a blanket policy which includes other liabilities, properties and locations of such insured parry and if a blanket commercial general liability insurance policy contains a general policy aggregate of less than Twenty Millions Dollars ($20,000,000), then the insured party shall also maintain excess liability coverage necessary to establish a total liability insurance limit of Twenty Million Dollars($20,000,000); (iii) a plan of self insurance if the self-insuring Owner notifies the other Owners of its intent to self insure and shall upon request deliver to any other Owners,but not more than once per calendar year, a copy of its annual report or Form 10 K that is audited by an independent certified public accountant and which discloses that such Owner has Seventy-Five Million Dollars($75,000,000) or more of net current assets; (iv) a plan of self insurance maintained by such Owner's parent company if the parent company complies with the requirements of(iii)above and guarantees such Owner's insurance obligations under this Article 14; or (v) a combination of any of the foregoing insurance programs. (b) All insurance provided under Section 14.4(a)(i) or Section 14.4(a)(ii) shall be procured from companies authorized to issue such insurance in the state in which the Project is located and shall be rated by Best's Insurance Reports not less than B+IX or a reasonably equivalent rating commonly used in the industry. To the extent any deductible is permitted or allowed as a part of any insurance policy carried by an Owner, such Owner shall be deemed to be covering the amount thereof under an informal plan of self insurance. However, in no event shall any deductible exceed Fifty Thousand Dollars ($50,000.00)unless such Owner complies with the requirements regarding self insurance pursuant to Section 14.4(a)(iii)or Section 14.4(a)(iv). Each Owner shall furnish to any Owner requesting the same a certificate(s) of insurance, or statement of self insurance, as the case may be, evidencing that the insurance required to be carried by such Owner is in frill force and effect. (c) The following shall apply to the insurance required pursuant to Section 14.1: W the insurance policy may not be canceled or materially reduced in amount or coverage below the requirements of this Article 14, without at least thirty (30) days prior written notice by the insurer to each insured and to each additional insured; (ii) the insurance shall provide for severability of interests; (iii) the insurance shall provide that an act or omission of one of the insureds or additional insureds which would void or otherwise reduce coverage shall not reduce or void the coverage as to the other insureds; and (iv) the insurance shall provide for contractual liability coverage with respect to the indemnity obligations set forth in this Declaration. l 4.5 Additional Insurance Coverage. In addition to the foregoing insurance coverages, the Manager may obtain such policies of commercial general liability insurance and DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 27 property/casualty insurance with respect to the Common Area as it deems necessary or prudent in its sole discretion, the cost of which shall be reimbursable pursuant to Section 8.6. ARTICLE 15 DEFAULT 15.1 Default. The occurrence of any one or more of the following events shall constitute a material default and breach of this Declaration by the non-performing Owner (the "Defaulting Owner"): (a) the failure to make any payment required to be made under this Declaration within ten (10) days after the Defaulting Owner has received notice of its failure to make such payment on or before the due date therefor; or (b) the failure to observe or perform any of the covenants, conditions or obligations of this Declaration, other than as described in subsection (a) above, within thirty (30) days after the issuance of a notice by the Manager or another Owner(the Non-Defaulting Owner')specifying the nature of the default claimed except if such matter is not susceptible of being cured within thirty(30)days,the cure period shall be extended for a reasonable period of time if the Defaulting Owner conlrnences the cure within said thirty(30) day period and thereafter diligently prosecutes the cure to completion. Each Owner shall be responsible for the default of its Permittees. 15.2 Right to Cure. (a) With respect to any default under Section 15.1, the Manager and any Non- Defaulting Owner shall have the right,but not the obligation,to cure such default by the payment of money or the performance of some other action for the account of and at the expense of the Defaulting Owner. However,if an event that would become a default under Section 15.1(b)with the passage of time would become an emergency condition, the Manager or a Non-Defaulting Owner,acting in good faith,shall have the right to cure such event within the time period set forth in Section 15.1(b). (b)If the Manager or any Non-Defaulting Owner shall cure a default; the Defaulting Owner shall reimburse the Manager or Non Defaulting Owner for all costs and expenses incurred in connection with such curative action,plus interest as provided herein,within ten(10)days after receipt of demand therefor together with reasonable documentation supporting the expenditures made. (c) To effectuate any such cure,the Manager or a Non-Defaulting Owner shall have the right to enter upon the Lot of the Defaulting Owner(but not into any Building)to perform any necessary work or furnish any necessary materials or services to cure the default of the Defaulting Owner. 15.3 Interest and Late Pees. If at any time an Owner does not pay any sum payable under this Declaration to another Owner or the Manager within five(5) days of the due date, or if no due date is specified herein, within 30 days, then (i) a 5% late fee shall accrue on the unpaid amount; (ii) the unpaid balance shall thereafter accrue interest at the rate of 10%per annum; and DECLARATION OF COVENANTS,CONDITIONS,RESTR[CT[ONS AND EASEMENTS FOR VICTORY COMMONS 28 (iii) the Owner or Manager may file a claim of lien in accordance with Section 15.4, and may pursue all available remedies. 15.4 Lien Ri ts. (a) Costs and expenses inured pursuant to this Article 15 shall be secured by and constitute a lien against the Defaulting Owner's Lot. The lien shall attach and take effect only upon recordation of a claim of lien in the official real estate records of the County of the State in which the Project is located by the -Manager or an Owner making the claim. The claim of lien shall include the following: (i) the name of the lien claimant; (ii) a statement concerning the basis for the claim of lien and identifying the lien claimant as the Non-Defaulting Owner; (iii) an identification of the Owner or reputed Owner of the Lot or interest therein against which the lien is claimed; (iv) a description of the Lot against which the Hen is claimed; (v) a description of the work performed that is the basis for the claim of lien and a statement itemizing the amount thereof; and (vi) a statement that the lien is claimed pursuant to the provisions of this Declaration,reciting the date of recordation and the recorded document number(or book and page) hereof, (b) The claim of lien shall be duly verified, acknowledged and contain a certificate that a copy thereof has been served, in accordance with Section 16.1, upon the Owner of the Lot against which the lien is claimed. The lien so claimed may be enforced in any judicial proceedings allowed by law, including, without limitation, a suit to foreclose a mechanic's lien under the applicable provisions of the law of the state in which the Project is located. 15.5 Costs of Enforcement. 1f the Manager or any Owner brings an action at law or in equity to enforce or interpret this Declaration, the prevailing party in such action shall be entitled to recover its reasonable attorney fees, court costs and expert witness fees for all stages of litigation, including, but not limited to, appellate proceedings, in addition to any other remedy granted. 15.6 Remedies Cumulative. (a) The Manager and each Non Defaulting Owner shall have the right to prosecute any proceedings at law or in equity against any Defaulting Owner hereto, or any other party violating or attempting to violate or default upon any of the provisions contained in this Declaration and to recover damages for any such violation or default. Such proceeding shall include the right to restrain by injunction any violation or threatened violation by another of any DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 29 of the terms, covenants or conditions of this Declaration, or to obtain a decree to compel performance of any such terms, covenants or conditions,it being agreed that the remedy at law for a breach of any such term, covenant or condition(except those, if any,requiring the payment of a liquidated sum)is not adequate. (b) All of the remedies permitted or available to the Manager or an Owner under this Declaration or at law or in equity shall be cumulative and not alternative and invocation of any such right or remedy shall not constitute a waiver or election of remedies with respect to any other permitted or available right or remedy. (c) In all situations arising out of this Declaration the Manager and all Owners shall attempt to avoid and mitigate the damages resulting from the conduct of any other Owner. Each Owner hereto shall take all reasonable measures to effectuate the provisions of this Declaration. (d) A breach of this Declaration shall not(i)entitle any Owner to cancel,rescind or otherwise terminate this Declaration, or (ii) defeat or render invalid the lien of any mortgage or trust deed made in good faith and for value as to any part of the Project. However, such limitation shall not affect in any manner any other rights or remedies which the Manager or an Owner may have hereunder by reason of any such breach. 15.7 No Waiver. The failure of the Manager or any Owner to insist upon strict performance of any of the terms, covenants or conditions hereof shall not be deemed a waiver of any rights or remedies which the Manager or that Owner may have hereunder, at law or in equity and shall not be deemed a waiver of any subsequent breach or default in any of such terms, covenants or conditions. Any waiver by the Manager or any Owner of any default under this Declaration shall not: (i) be effective or binding unless made in writing; (ii) shall not be inferred from any omission by the Manager or Owner to take action in respect to such default; and (iii) affect any other default or cover any other period of time other than the default and/or period of time specified in the express written waiver. One or more written waivers or any default under any provision of this Declaration shall not be deemed to be a waiver of any subsequent default in the performance of the same provision or any other term or provision contained in this Declaration. ARTICLE 16 MISCELLANEOUS 16.1 Notices. (a) All notices,demands, statements and requests (collectively,"notices")required or permitted to be given under this Declaration must be in writing and shall be delivered to the Owner's mailing address on record with the Ada County Assessor by one of the following methods of delivery: (i) FedEx, UPS or other nationally recognized overnight courier service, in which event the notice shall be deemed to have been given on the first business day after the notice is deposited with the courier service (or the next business day thereafter if the notice is deposited with the courier set-vice on a day other than a business day); or DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 30 (ii) United States registered or certified mail,postage prepaid and return receipt requested, in which event the notice shall be deemed to have been given three(3)business days after the notice is deposited with the United States Postal Service. (b) Each Owner shall have the right to change its address for notice purposes to any other address within the United States of America upon at least ten(10) days prior written notice to the other Owners in accordance with the provisions of this Section 16.1. Refusal to accept delivery of a notice or the inability to deliver a notice because of an address change which was not properly communicated shall not defeat or delay the giving of a notice hereunder. 16.2 Estoppel Certificate. (a) Each Owner shall,upon the written request (which shall not be more frequent than three (3) times during any calendar year) of any other Owner, issue to such Owner, or its prospective mortgagee or successor, an estoppel certificate stating to the best of the issuer's knowledge that as of such date: (i) whether it knows of any default under this Declaration by the requesting Owner, and if there are known defaults, specifying the nature thereof, (ii) whether this Declaration has been modified or amended in any way by it and if so,then stating the nature thereof, and (iii) whether this Declaration is in full force and effect. (b)An estoppel certificate issued pursuant to this Section 16.2 shall bar the Owner issuii-ig such certificate from asserting any claim that is based upon facts contrary to those asserted in the estoppel certificate,to the extent the claim is asserted against a bona fide encumbrancer or purchaser for value who has acted in reasonable reliance upon the estoppel certificate without knowledge of facts to the contrary of those contained therein. (c)Notwithstanding anything to the contrary contained in this Declaration or otherwise,the Owner issuing an estoppel certificate shall in no event be subject to damages arising out of the negligent or inadvertent failure of such Owner to disclose correct and/or relevant information in the estoppel certificate, nor shall such Owner be barred from challenging acts committed by other Owners for which approval by the Declarant was required but not sought or obtained. 16.3 Further Division of Lots. The Lots may be further subdivided and platted as may be approved by the City of Meridian in the future. Owners shall cooperate and participate with other Owners in a plat or replat of the other Owner's Lot and shall execute the plat or re-plat and other related documents as may be required by the City of Meridian,Ada County Highway District or other governing body. Subject to the provisions of this Declaration, an Owner may create a condominium project with respect to its Lot and the condominium owners association on such Lot shall collectively constitute the Owner of such Lot. 16.4 Expansion of Project. Declarant may at any time subject additional real property to the provisions of this Declaration by recording a "Supplemental Declaration" describing the DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 3t additional real property to be subjected to and benefited by this Declaration and thereby annexing such real property into the Project,which Supplemental Declaration shall attach a revised Site Plan to reflect the additional land area added to the Project. A Supplemental Declaration recorded pursuant to this Section shall not require the consent of any Person except the Owner of such other real property and Declarant. 16.5 Modification of Declaration_ This Declaration may not be modified or amended without a written agreement signed by Declarant and the Owners affected by the amendment as set forth below. An amendment shall be effective only when recorded in the official real estate records of the county and state where the Project is located. Amendments shall not impose any additional or increased obligation on, or materially restrict or impair any right of, an Owner or its Lot without the consent of such Owner. Amendment of this Declaration shall not require the consent of any Permittee or Owner except for the Declarant and the affected Owners, all of which may consider, approve or disapprove any proposed amendment to this Declaration in its sole discretion without regard to reasonableness or timeliness. 16.6 Approval. (a) Whenever the consent or approval ("approval") of the Declarant is required under this Declaration,the following shall apply, subject to the rights of Owners: (i) unanimous approval of the Declarant must be given; (ii) the Declarant shall have absolute discretion to make the decisions on behalf of the entire portion of the Project represented by such position even if the Declarant then owns less than all thereof; (iii) if this Declaration provides that the Declarant may grant or withhold its approval in its sole discretion., such discretion shall be absolute, the approval may be unreasonably withheld or conditioned and the Declarant shall not be obligated to state the reasons for withholding its approval; (iv) if this Declaration does not expressly provide that the Declarant may grant or withhold its approval in its sole discretion,the Declarant shall not unreasonably withhold or condition its approval, and disapproval shall be in writing and the reasons therefor shall be clearly stated; (v) if an Owner asserts an approval is unreasonably withheld its sole remedy shall be an action for specific performance and the Declarant shall not be liable to such Owner for damages; and (vi) exercise of any approval right shall not subject the Declarant to liability for breach of any covenant of good faith and fair dealing otherwise implied by law to be part of this Declaration. (b)Unless provision is made for a specific time period, each response to a request for an approval or consent required to be considered pursuant to this Declaration shall be given by DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 32 the Owner to whom directed within thirty(30)days of receipt of such request. If a response is not given in writing within the required time period, the requested Owner shall be deemed to have given its approval if the original notice stated in capitalized letters that failure to respond within the applicable time period will be deemed an approval. 16.7 Taxes and Assessments. Each Owner shall pay, or cause to be paid, prior to delinquency, all taxes and assessments with respect to its Lot, the Building and other Improvements located thereon, and any personal property owned or leased by such Owner in the Project. If the taxes or assessments or any part thereof may be paid in installments, the Owner responsible therefor may pay each such installment as and when the same becomes due and payable. Nothing contained in this Section 16.7 shall prevent any Owner from contesting at its cost and expense any such taxes and assessments with respect to its Lot in any manner such Owner elects, so long as such contest is maintained with reasonable diligence and in good faith. At the time as such contest is concluded(allowing for appeal to the highest appellate court),the contesting Owner shall promptly pay all such taxes and assessments determined to be owing, together with all interest,penalties and costs thereon. 16.8 Condemnation. if any portion of the Project shall be condemned, or conveyed under threat of condemnation, the award shall be paid to the Owner owning the land or the Improvements taken,and the other Owners hereby waive and release any right to recover any value attributable to the property interest so taken, except that (a) if the taking includes Improvements belonging to more than one Owner, such as Utility Lines or signs, the portion of the award allocable thereto shall be used to relocate, replace or restore such jointly owned Improvements to a useful condition, and (b) if the taking includes easement rights which are intended to extend beyond the term of this Declaration,the portion of the award allocable to each such easement right shall be paid to the respective grantee thereof. In addition to the foregoing,if a separate claim can be filed for the taking of any other property interest existing pursuant to this Declaration which does not reduce or diminish the amount paid to the Owner owning the land or the Improvement taken,then the Owner of such other property interest shall have the right to seek an award for the taking thereof. Except to the extent they burden the land taken, easements or licenses set forth in this Declaration shall not expire or terminate based solely upon such taking. 16.9 Construction and Interpretation. (a) The terms of this Declaration and all easements granted hereunder shall constitute covenants running with the land and shall bind the Project described herein and inure to the benefit of and be binding upon the signatories hereto and their respective successors and assigns who become Owners hereafter. (b) Whenever required by the context of this Declaration, (i) the singular shall include the plural, and vice versa,and the masculine shall include the feminine and neuter genders, and vice versa; and (ii)use of the words"including", "such as", or words of similar impart,when following any general term, statement or matter shall not be construed to limit such statement, term or matter to specific items, whether or not language of non-limitation, such as "without limitation", or"but not limited to", are used with reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest scope of such statement,terms or matter. DECLARATION OF COVENANTS.CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 33 (c) The captions preceding the text of each article and section of this Declaration are included only for convenience of reference and shall be disregarded in the construction and interpretation of this Declaration. Capitalized terms are also selected only for convenience of reference and do not necessarily have any connection to the meaning that might otherwise be attached to such term in a context outside of this Declaration. (d) Invalidation of any of the provisions contained in this Declaration, or invalidation of the application thereof to any Owner by judgment or court order, shall in no way affect any of the other provisions hereof or the application thereof to any other Owner and the same shall remain in full force and effect. (e) Only the Owners shall have the right to enforce any of the provisions of this Declaration. 16.10 Negation of Partnership. None of the terms or provisions of this Declaration shall be deemed to create a partnership between or among the Owners in their respective businesses or otherwise, nor shall it cause them to be considered joint venturers or members of any joint enterprise. Each Owner shall be considered a separate Owner,and Owners shall not have the right to act as an agent for another Owner, unless expressly authorized to do so herein or by separate written instrument signed by the Owner to be charged. 16.11 Excusable Delays. Whenever performance is required of any Owner hereunder, such Owner shall use all due diligence to perform and take all necessary measures in good faith to perform. If completion of performance is delayed at any time by acts of God,war,pandemic,civil commotion, riots, strikes, picketing or other labor disputes, unavailability of labor or materials, damage to work in progress by reason of fire or other casualty,or any cause beyond the reasonable control of such Owner (excluding financial reasons), then the time for performance as herein specified shall be appropriately extended by the time of the delay actually so caused. The provisions of this Section 16.11 shall not operate to excuse any Owner from the prompt payment of any monies required by this Declaration. 16.12 Joint Owners/Tenant's in Common. (a) Subject to the provisions of Section 16,13, each Owner shall be liable for the performance of all covenants, obligations and undertakings herein set forth with respect to the portion of the Project owned by it which accrue during the period of such ownership. (b) If a Lot is owned by more than one Owner as tenants in common or as joint tenants,the Owner holding at least 51%of the ownership interest in the Lot shall designate one of thejoint or common Owners to represent all Owners of the Lot, and such designated Owner shall be deemed to be the Owner for such Lot. 16.13 Limitation of Liability. Except as specifically provided below, there shall be absolutely no corporate or personal liability of persons, firms,corporations or entities who merely hold an ownership interest in an Owner, including, but not limited to, officers, directors, shareholders, members,partners, employees or agents of an Owner hereto, with respect to any of the terms, covenants, conditions and provisions of this Declaration. Any Non-Defaulting Owner who seeks recovery from a Defaulting Owner shall look solely to the interest of such Defaulting DECLAR A,TION OF COWNI ANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 34 Owner, its successors and assigns, in the Project for the satisfaction of each and every remedy of the Non-Defaulting Owner. The foregoing shall not in any way impair,limit or prejudice the right of any Owner to: (a)pursue equitable relief in connection with any term, covenants or condition of this Declaration, including a proceeding for temporary restraining order, preliminary injunction, permanent injunction or specific performance; (b)recover from another Owner all damages and costs on account of, or in connection with, casualty insurance or condenuiation proceeds which are not applied or used in accordance with the terms of this Declaration; (c)recover from another Owner (or its guarantor) all losses suffered, Liabilities incurred or costs imposed arising out of or in connection with, or on account of, such Owner's (or its guarantor's) breach of its obligation to carry liability insurance, or fund its self insurance obligation pursuant to Section 14.4(a)(iii); (d) recover from any Owner all damages and costs arising out of or in connection with, or on account of, a breach by such Owner of its obligations regarding Hazardous Material under Section 11.3; (e) recover from any Owner all damages and costs arising out of or in connection with, or on account of, the failure by such Owner to pay when due any tax, assessment or lien as specified under Section 16.7; and (f) recover from any Owner all damages and costs as a result of any fraud or misrepresentation by such Owner in connection with any term covenant or condition in this Declaration. IN WITNESS WHEREOF, the Declarant has caused this Declaration to be executed effective as of the day and year first above written. KUNA VICTORY,LLC By: BV Managernent Services,Inc., an Idaho corporation,the Manager ByIThel Casper,�VriicePresident DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VTC:TORY COMMONS 35 STATE OF IDAHO ) )ss. County of Bonneville ) On the 2- �'-'day of August,2020,before me the undersigned,a notary public in and for said State, personally appeared Thel W,Casper,known or identified to me to be the Vice President of B V Management Services,Tne.,which corporation is the Manager of Kuna Victory,LLC,and the Manager who subscribed said limited liability company name to the foregoing instrument, and acknowledged to me that such corporation as the Manager executed the same in said limited liability company name. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. CLAY HANSEN *66MMISSION NO. 6887 IV Lary Public for Idaho NOTARY PUBLIC STATE OF DAHO Y COMMISSION EXPIRES IV22122 DECLARATION OF COVENANTS;CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VTCTORY COMMONS 36 Exhibit A Property Description All of Parcel A and Parcel B as described in and depicted on the Record of Survey for B_V.A. Property Boundary Adjustment recorded in the records of Ada County, Idaho on March 13, 2020 as Instrument Number 2020-042373, DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 37 Exhibit S Site Plan I � I � at ri I � I ` I ` p — PARCEL A st z ` g PARCEL B I I I E VICTORY RD DECLARATION OF COVENANTS,CONDITIONS,RESTRICTIONS AND EASEMENTS FOR VICTORY COMMONS 38