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Tree House Learning Center/DaycareCERTIFICATE OF ZONING COMPLIANCE REPORT DATE: August 30, 2012(:� E IDIAM- TO: Joe Grubiak, TTS Development, LLC 1 FROM: Sonya Watters, Associate City Planner SUBJECT: The Tree House Learning Center/Daycare — CZC-12-064 OWNER: Joe & Holly Grubiak and Brent & Barb Belveal DESCRIPTION OF APPLICANT'S REQUEST The applicant, TTS Development, LLC, requests Certificate of Zoning Compliance (CZC) approval of a 1,437 square foot daycare center for up to 28 children per day. The proposed hours of operation are Monday thru Friday from 6:30 am to 6:00 pm. This property is proposed to develop in two phases. The daycare center is proposed within the first phase on the west end of the site; the eastern portion of the site adjacent to Locust Grove is proposed to develop at a later date. The site is located at 385 S. Locust Grove Road. DECISION The applicant's request for CZC is approved with the conditions listed in this report. Note: This is not a building permit. Please contact Building Services at (208) 887-2211 to verify if you need a building permit and/or inspection. If you do need a building permit, you must complete that process before you commence the use or construction. As part of the application submittal, you will need to provide one set of the final, stamped "approved" Planning Department plans, stamped and signed by the architect and/or civil engineer as applicable. You must provide these plans in PDF format and hardcopy as specified in the Building Services "Plan Intake Checklist" and include them with your building submittal set. Please contact Building Services for additional details about building permits and inspections. Site Specific Conditions of Approval 1. The owner of the daycare center shall comply with all state of Idaho and Department of Health & Welfare requirements for daycare facilities. 2. The hours of operation of the business shall be limited to the hours between 6 am and 11 pm, per UDC 11-4-3-9. 3. The daycare facility shall not exceed the maximum number of clients approved with this permit of 28 children per day. Per UDC 11-4-3-9, the total number of clients cared for during the day including the operator's children, and not the number of clients at the facility at one time, is the determining factor. 4. All outdoor play areas shall be completely enclosed by minimum six foot (6') non -scalable fences to secure against exit/entry by small children and to screen abutting properties, per UDC 11-4-3- 9B. All fencing shall be constructed in accord with the standards listed in UDC 11-3A-7. 5. The undeveloped portion of the property (phase II) shall be mowed and kept free of weeds greater than 8" tall, per requirement of the development agreement. Conditions Document 1 Tree House Leaming Center Daycare CZC-12-064 6. A copy of the fire inspection certificate shall be submitted to the Planning Department as required by Title 39, Chapter 11, Idaho Code, prior to issuance of Certificate of Occupancy. 7. Prior to Certificate of Occupancy of the future building in Phase H on the eastern portion of the site adjacent to Locust Grove Road, the applicant shall record a cross-access/ingress- egress easement to the adjoining property to the north (Parcel #S1118110130) and submit copy of said easement to the Planning Department in accord with the provisions of UDC 11- 3A -3A2. Process Conditions of Approval 1. No signs are approved with this application. Prior to installing any signs on the property, the applicant shall submit a sign permit application consistent with the standards in UDC Chapter 3 Article D and receive approval for such signs. 2. The applicant shall complete all improvements related to public life, safety, and health as set forth in UDC 11 -5C -3B. A surety agreement may be accepted for other improvements in accord with UDC 11 -5C -3C. 3. Upon installation of the landscaping and prior to inspection by Planning Department staff, the applicant shall provide a written certificate of completion as set forth in UDC 11 -3B -14A. 4. The site/landscape plan, dated 11/12/10, attached in Exhibit B is approved (stamped "approved" on 8/29/12 by the City of Meridian Planning Department) with no changes. 5. The approved site/landscape plan may not be altered without prior written approval of the City of Meridian Planning Department. 6. The applicant shall pay any applicable impact fees prior to the issuance of a building permit. 7. If any changes must be made to the site plan to accommodate ACHD requirements, the applicant shall submit a new site plan to the City of Meridian Planning Department for approval prior to issuance of the building permit. 8. The applicant shall complete all required improvements prior to issuance of a Certificate of Occupancy. It is unlawful to use or occupy any building or structure until the Building Official has issued a Certificate of Occupancy. Ongoing Conditions of Approval 1. The applicant and/or assigns shall have the continuing obligation to provide irrigation that meets the standards as set forth in UDC 11-3B-6 and to install and maintain all landscaping as set forth in UDC 11-3B-5, UDC 11-3B-13 and UDC 11-3B-14. 2. The project is subject to all current City of Meridian ordinances and previous conditions of approval associated with this site (AZ -99-020; MDA -09-002). 3. The issuance of this CZC does not release the applicant from any previous requirements of the other permits issued for the site. 4. The applicant and/or property owner shall have an ongoing obligation to prune all trees to a minimum height of six feet above the ground or sidewalk surface to afford greater visibility of the area. 5. The applicant has a continuing obligation to comply with the outdoor lighting provisions as set forth in UDC 11-3A-1 L Conditions Document 2 Tree House Leaming Center Daycare CZC-12-064 6. The applicant and/or property owner shall have an ongoing obligation to maintain all landscaping and constructed features within the clear vision triangle consistent with the standards in UDC 1I - 3A -3. 7. The applicant and/or assigns shall have the continuing obligation to meet the specific use standards for the proposed use as set forth in UDC 11-4-3-9. CITY COUNCIL REVIEW The applicant or a party of record may request City Council review of a decision of the Director. All requests for review shall be filed in writing with the Planning Department on or before September 14, 2012, within fifteen (15) days after the written decision is issued, and contain the information listed in UDC 11 -5A -6B. If City Council review of the decision is not requested, the action of the Director represents a final decision on a land use application. You have the right to request a regulatory taking analysis under Idaho Code 67-8003. EXPIRATION Certificates of Zoning Compliance issued in conjunction with a proposed use shall expire if said use has not commenced within one year of the date of issuance of the Certificate of Zoning Compliance. Certificates of Zoning Compliance issued in conjunction with construction or alteration of a structure shall expire if said construction or alteration has not commenced within one year of the date of issuance of the Certificate of Zoning Compliance. In accord with the above provisions, the subject Certificate of Zoning Compliance is valid until August 30, 2013. EXHIBITS A. Vicinity Map B. Site/Landscape Plan (dated: 11/12/10) Conditions Document 3 Tree House Learning Center Daycare CZC-12-064 A. Vicinity Map Conditions Document 2 Tree House Learning Center Daycare CZC-12-064 B. Site/Landscape Plan (dated: 11/12/10) E 21 L s —t _. _.. _.. __...--J PbM4. --Phaa ,� • `> �ZC Landscape Pian �„�,�,,,.,,. Conditions Document 3 Tree House Learning Center Daycare CZC-12-064 sol Type of Review Requested (check all that apply) ❑ Accessory Use ❑ Alternative Compliance B Certificate of Zoning Compliance ❑ Certificate of Zoning Compliance Verification ❑ Conditional Use Permit Minor Modification ❑ Design Review ❑ Private Street ❑ Property Boundary Adjustment ❑ Time Extension (Director) ❑ Vacation ❑ Other Planning Department ADMINISTRATIVE REVIEW APPLICATION STAFF USE ONLY: File'number(s): C,' L- " 12-0 to N Project name: _ne_ Tree kino ie, Lr_wri i .— Date filed: J� 17+1 12- Date complete: Assigned Planner: Related files: A.2'`l� _ 02 t�'t U/�- �°►.- p Applicant Information Annlicant name: TTS Development LLC Phone: 208-514-9258 Applicant address: 745 N Ralstin St. Zip: 83642 E-mail: joe@43re.com Applicant's interest in property: B Own ❑ Rent ❑ Optioned ❑ Other Owner name: Joe & Holly Grubiak/Brent & Barb BelvealPhone: 514-9258 Fax: Owner address.. 745 N. Ralstin St. Zip: 83642 E-mail: joe@43re.com Agent name (e.g., architect, engineer, developer, representative): Firm name: Address: Primary contact is: ❑ Applicant 8 Owner ❑ Agent ❑ Other Contact name: Joe Grubiak Phone: Fax: Zip: E-mail: Phone: 514-9258 Fax: Contact address. 24811 Lemp Lane, Parma, Idaho Zip: 83660 E-mail: joe@43re.com Subject Property Information Location/street address: 385 S. Locust Grove Rd, Meridian, Idaho 83642 Assessor's parcel number(s): S1 118110161 Township, range, section: 3 N 1 E 18 Current land use: UO Total acreage: 1.3270 Current zoning district: UG Limited Office 33 E. Broadway Avenue, Suite 210 • Meridian, Idaho 83642 Phone: (208) 884-5533 • Facsimile: (208) 888-6854 • Website: www.meridiancity.org 1 (Rev. 11/29/11) (j?4��F )" C,ok— 1 iA Project Description Project/subdivision name: TTS Developments - 385 S. Locust Grove General description of proposed project/request: The Tree House Learning Center/Daycare Proposed zoning district(s): UO Acres of each zone proposed: 1.3270 Type of use proposed (check all that apply): ❑ Residential ❑ Commercial ❑ Office ❑ Industrial B Other Day Care Amenities provided with this development (if applicable): N/A Who will own & maintain the pressurized irrigation system in this development? TTS Development LLC Which irrigation district does this property lie within? NM ID - Nampa/Meridian Primary irrigation source: Pressurized Irrigation Secondary: N/A Square footage of landscaped areas to be irrigated (if primary or secondary point of connection is City water): Residential Project Summary (if applicable) Number of residential units: Number of common and/or other lots: Number of building lots: Proposed number of dwelling units (for multi -family developments only): 1 Bedroom: Minimum square footage of structure(s) (excl. garage): Minimum property size (s.f): Gross density (DU/acre-total land): Percentage of open space provided: Percentage of useable open space: 2 or more Bedrooms: Proposed building height: _ Average property size (s.f.): Net density (DU/acre-excluding roads & alleys): Acreage of open space: (See Chapter 3, Article G, for qualified open space) Type of open space provided in acres (i.e., landscaping, public, common, etc): Type of dwelling(s) proposed: ❑ Single-family ❑ Townhomes ❑ Duplexes ❑ Multi -family Non-residential Project Summary (if applicable) Number of building lots: Gross floor area proposed: 1437 Sq.ft. Other lots: Existing (if applicable): Hours of operation (days and hours):6:30 to 18:00 M -F Percentage of site/project devoted to the following: Landscaping: 00 Building: 5% Building height: 14' approximate Paving: 16% Total number of employees: 5 Maximum number of employees at any one time: 3 Number and ages of students/children (if applicable): Max of 20 at a time Seating capacity: Total number of parking spaces provided: 7 Number of compact spaces provided: Authorization Print applicant name: Applicant signature:. Phone: f�T Date: Z 33 E. Broadway Avenue, Suite 210 • Meridian, Idaho 83642 884-5533 • Facsimile: (208) 888-6854 • Website: www.meridiancity.org 2 8/24/2012 385 S. Locust Grove, Meridian, 83642 NARRATIVE: 385 South Locust Grove was bought by TTS Developments in 2008. It is zoned L0, so our intention was to lease out the current building on the land as office space. When it was purchased we were not aware that there was no C of 0 present. There were two previous owners that operated a business out of the office building. The years of business operation was 2000 to 2007. The two previous owners were supposed to be in compliance with the CZC of Meridian, but they were not. They sold the property to TTS without disclosing this information. Once we purchased the property we wanted to do some improvements. We remodeled the exterior of both the office and shop buildings, improved the landscape, and restriped the parking lot. We went to lease it out and found out by the City of Meridian that there was no C of 0 because the CZC was not met from previous owners. Through our due diligence, we did not find the two previous owners were not in compliance. We are now trying to become compliant with the City of Meridian. We are now in the final process of tying the property into city utilities (water & sewer) and completing the requirements of our landscape plan. Recently, we accepted a lease from "The Tree House", a daycare facility, for a three year term. Our tenant is in the process of completing all of the requirements as set forth by the City of Meridian in order to be in compliance with the zoning & health laws. Concurrently, our tenant understands that all parking shall be limited to the paved & designated areas and that no parking shall be permitted on any of the gravel areas. incer y, oe Grubiak Member - TTS Development LLC fto wIDAHO DEPARTMENT OF HEALTH &WELFARE l�- QL. *Butch" Otter - Governor RICHARD M. ARMSTRONG — Director Tana Campbell 1779 E Time Zone Dr Meridian, ID 83642 DAVID TAYLOR — Deputy Director Bumau of Audits & Invedgadom Cdminal History Unit 1720 Wastgat Dr., Ste A Boise. to 82704 PHONE 208-332-79W TOLL FREE I-800.340-1246 FAX 2oa-332-7991 08/27/2012 NOTICE OF CLEARANCE Applicant: Tana Campbell Verification Number:380077 The Department has completed its background check and the applicant has passed effective 03/01/2011. No disqualifying crimes or relevant records were revealed. The agency issuing your license or certification may request that you provide them with the specifics of any infDrmation here revealed. The background check is fingerprint based and includes information obtained from the state and national criminal databases, Idaho Driving Records, Idaho Child Abuse Registry, Idaho Adult Protection Registry, Sex Offender Registry, Idaho Nurse Aid Registry and state and national Medicare/Medicaid Provider Exclusion Lists. If there are any questions about the process or results, contact the criminal history unit at (208) 332-7990, or toll free at 1-800-340-1246. Additional information about the criminal history background check process and applicant status is available at the web site. https:/Ichu.dhw.idsho.gov. Sincerely, Nancy Bochsler Nancy Bochsler Pagel of 1 Prajec t Name: Locust Grove Road, Beaft to Franklin Read Project No.: 603012.0 R/W Parcel No.: 11 ADA COUNTY RECORDER J. DAVID MARRO 4 T.3N., RIE., Section 18 BOISE IDAHO OBIZal03 04:25 PM DEPUTY Jame Parsers RECORDED -RMUW OF A11mce rile III II i Ilii II 11 II II IN AMOUNT 1200 103141561 (Resaved for Ada County Rem) WARRANTY DEED THIS INDENTURE, made this �' day of PrL4. Q U Sr 0 2003, between D. SCOTT SUMMER and CHARLOTTE SUMiVIER, husband anff wife and CHRIST T. TROUPIS and MAUREEN D. TROUPIS, husband and wife, the "GRANTOR", and ADA COUNTY HIGHWAY DISTRICT, a body politic and corporate of the State of Idaho, the "GRANTE W; WITNESSETH: FOR VALUE RECEIVED, the GRANTOR has granted, conveyed, bargained and sold, and does hereby grant, bargain, sell, convey and confirm to the GRANTEE and its successors and assigns forever, that certain real properly situated in the COUNTY OF ADA, STATE OF IDAHO, more particularly descxitied on Exhibit "A" attached hereto and by this ref rence made a part hereof; TOGETHER with all and sing lar the buildings, structures, improvements and fixtures thereto, the tenements, hereditaments and appurtenances thereunto belonging or in anywise appertaining, the reversion and reversions, remainder and remainders, and rents, issues and profits thereof (the "Premises"). Subject to those exceptions to GRANTOWs title as are set forth on Exhibit "B" attached hereto and by this reference made a part hereof. SUBJECT TO those exceptions to title to which this conveyance is expressly made subject and those made, suffered or done by the GRANTEE: (a) the GRANTOR covenants to the GRANTEE, its successors and assigns, that the GRANTEE shall enjoy the quiet and peaceful possession of the Premises; and (b) GRANTOR warrants to the GRANTEE, its successors and assigns, that GRANTOR is the owner of said Premises in fee simple and has the right and authority to convey the same to GRANTEE, and GRANTOR will defend the GRANTEE's title from all lawful claims whatsoever. Warranty Deed, page 1 (10127101) G.Veeds and Eesenw t Mxw No 1 t WD Tnwais 3 SumnwAoc The current address of the GRANTEE is: Ada county Highway District 318 East 37th Street Garden City, Idaho 83714-6499 IN WITNESS WHEREOF, this WARRANTY DEED has been duty executed by and on behalf of the GRANTOR, the day, mouth and year herein first above written. State of Idaho ) ) ss. County of Ada) CHARLOTTE SUMMEK By. CHRIST T. TRUUPIS 114 V wo M V "($I tj' On this day of Ack U&A 2003, before me, --� ci,,,,, L, AM A�e, ,,� a Notary bhc in and for the State of Idaho, personally D. SCOTT SUMMER and CHARLOTTE SUMMER, husband and wife, and CHRIST T. TROUPIS and MAUREEN D. TROUPIS, husband and wife the persons who executed this who executed the foregoing instrument, and aclmowledged to me that they executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and VVIM first above written. Notary Pubfic b Residing at My Commission Warranty , (10127101) GA)eeds end Easements) W No 11 WD TmLggs & Summer doc Ada County Highway District Project No. 602012.0 EXHIP)m P " Locust 'Grove Road (CentraUBentley to Franklin) • Parcel 11 • Right -of -Way Take Description A parcel located in the NE K of the NE % of Section 18, Township 3 North, Range 1 East, Boise Meridian, Ada County, Idaho, more particularly described as follows: BEGINNING at a 5/8 inch diameter iron pin marking the southeasterly comer of said NE '/4 of the NE 1/4 from which a brass cap monument marking the northeasterly corner of said NE V4 of the NE 1/ bears N 0°3F1 I" E a distance of 1329.58 feet; Thence N 0°31' 11" E along the easterly boundary of said NE'/4 of the NE % a distance of 149.00 feet to a point; Thence leaving said easterly boundary S 89°39' 19" W a distance of 48.01 feet to a point; Thence S 0°31' 11" W a distance of 149.00 feet to a point on the southerly boundary of said NE %4 of the NE 3/4; Thence N 8939' 19" E along said southerly boundary a distance of 48.01 feet to the POINT OF BEGINNING. This parcel contains 0.164 acres (7,152 square feet) and is subject to any easements existing or in use. Said parcel contains 0.086 acres (3,725 square feet) of existing Locust Grove Road prescriptive right-of-way. Prepared by: Glenn K. Bennett, PLS Civil Survey Consultants, Incorporated May 22, 2002 of K. 8 Project No. 603012.0 EXEIIBIT "B" Locust Grove Road, Bentley to Franklin Rd. Par No.I I 1. General Taxes for the year 2003, a Lien but not yet due and payable. 2. Easement, and the Terms and Conditions thereof In Favor of IDAHO POWER COMPANY, A CORPORATION Recorded AUGUST 16, 1965 Insbumeat No. 618941 3. Agreement, and the Terms and Conditions contained therein Between MY OF MERIDIAN and SNORTING BULL INVEST, LLC Recorded JANUARY 27, 2000 InstmentNo. 100006603 Purpose DEVELOPMENT AGREEMENT 4. Right of way for LOCUST GROVE ROAD. �J moi\ LandAmerica � Transnation Order No.: 1061024-tr FOR VALUE RECEIVED ODA CA ODA CA UNTI(RECORDER J. DAVICIIAVARRO AMOUNT 9.00 3 BOISE IDAHO 03120108 04:24 PM DEPUTY PalThompton RECORDED—REQUEST OF 108032144 Trantnalion Tide WARRANTY DEED Christ T. Troupis and Maureen D. Troupis, husband and wife, and D. Scott Summer and Charlotte Summer, husband and wife GRANTOR(s), does(do) hereby GRANT, BARGAIN, SELL AND CONVEY unto: TTS Developments, LLC, a Limited Liability Company GRANTEES(s), whose current address is: 745 N. Ralstin St., Meridian, ID 83642 the following described real property in Ada County, State of Idaho, more particularly described as follows, to wit: SEE ATTACHED EXHIBIT "A" TO HAVE AND TO HOLD the said premises, with their appurtenances unto the said heirs and assigns forever. And the said Grantor(s) does(do) hereby covenant to and with the said Grantee(s), that Grantor(s) is/are the owner(s) in fee simple of said premises; that said premises are free from all encumbrances EXCEPT those to which this conveyance is expressly made subject and those made, suffered or done by the Grantee(s); and subject to reservations, restrictions, dedications, easements, rights of way and agreements, (if any) of record, and general taxes and assessments, (including irrigation and utility assessments, if any) for the current year, which are not yet due and payable, and that Grantor(s) will warrant and defend the same from all lawful claims whatsoever. Dated thisol0%41day of March, 2008 Order No. 1061024-tr Deed -Warranty AQ Maureen D. Troupis i' arl 666 Summer 3/20/08 10:18 AM .Fj �/ • • Order No. 1061024-tr State of Idaho County of On thi day of March, 2008, before me the undersigned, a Notary Public in and for said state, personally appeared Christ T. Troupis and Maureen D. Troupis known or identified to me to be the persons whose names are subscribed to the within instrument and aclpowledged to me that they -executed the same. a000 Notary Nota ublic N` me: Residin at ssion Expires: WWA A. p M M9t7diN1 e7. o My 6—* A 20.201 10° F 00soi aaaao °oo ti 1 A 00000000000 i a_ 0 NO,-_ G49_IC 0000 Op 1 U^ tl0,oa- State of Idaho ° °0j County of OnthisU day of March, 2008, before me the undersigned, a Notary Public in and for said state, personally appeared D. Scott Summer and Charlotte Summer known or identified to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same. Notary TOWAA. REEVES mission Expires: �. �wU1wam my Gft n sion Expkea AM 20.2010 Order No. 1061024-tr Deed -Warranty 0ooa.oaa09agap% 0 °MAYA.4 °oo :�oO� Op00000poo R^ �OvI o C —��— co�C+Goo 0 O A O tni o o O o �D opo AG o QClC o 0 9 •° 000 0 0 0 o,F 000000000O 001 • 0F I D AX .o°°' "#&ISaaaaa'a°, 3/19/08 4:31 PM Order No. 1061024-tr EXHIBIT "A" Beginning at the Southeast corner of the Northeast quarter of the Northeast quarter of Section 18, Township 3 North, Range 1 East, Boise Meridian, Ada County, Idaho, which is South along the East side of said Section 18 and along the center line of Locust Grove Road, 1,329.2 feet from a bronze cap marking the Northeast corner of said Section 18; thence South 89011 1/2' West along the South side of the Northeast quarter of the Northeast quarter of said Section 18, a distance of 438.7 feet to a steel pin; thence North 0055' East, 149.0 feet to a steel pin; thence North 89011 1/2' East, 436.3 feet to a steel pin; thence South 149.0 feet along the East side of said Section 18 to the REAL POINT OF BEGINNING. Except that portion conveyed to ACHD by Warranty Deed recorded August 20, 2003 as Instrument No. 103141561, records of Ada County, Idaho. Initials 61,01— t2t6r Initials Alp Order No. 1061024-tr Deed -Warranty 3/19/08 4:31 PM RECORDATION REQUESTED BY: IDAHO INDEPENDENT BANK BOISE RIVER OFFICE 401 FRONT STREET BOISE, ID 83702 WHEN RECORDED MAIL TO: IDAHO INDEPENDENT BANK BOISE RIVER OFFICE 401 FRONT STREET BOISE, ID 83702 ADA COUNTY RECORDER J. DAVID NAVM BOISE IDAHO 03108 06'24 PM AMOUNT 18.00 6 DEPUTY Pali Tganpwn u REMRDED—REQUEST OF I�� I"�•''Illf'I���'�'��'IfII) I I'II Traliana6on Title 108032145 SEND TAX NOTICES TO: TTS DEVELOPMENTS LLC 747 N. RALSTIN ST. MERIDIAN. ID 83642 SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY DEED OF TRUST MAXIMUM LIEN. The lien of this Deed of Trust shall not exceed at any one time $273,000.00. THIS DEED OF TRUST is dated March 20, 2008, among TTS DEVELOPMENTS LLC, whose address is 747 N. RALSTIN ST., MERIDIAN, ID 83642 ("Grantor"); IDAHO INDEPENDENT BANK, whose address is BOISE RIVER OFFICE, 401 FRONT STREET, BOISE, ID 83702 (referred to below sometimes as "Lender" and sometimes as "Beneficiary"): and LANDAMERICA TRANSNATION, whose address is 8665 W. EMERALD, SUITE 200, BOISE, ID 83704 (referred to below as "Trustee"). CONVEYANCE AND GRANT. For valuable consideration, Grantor does hereby irrevocably grant, bargain, sell and convey in trust, with power of sale, to Trustee for the benefit of Lender as Beneficiary, all of Grantor's right, title, and interest in and to the following described real property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all easements, rights of way, and appurtenances; all water, water rights and ditch rights (including stock in utilities with ditch or 'irrigation rights); and all other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, (the "Real Property") located in ADA County, State of Idaho: BEGINNING AT THE SOUTHEAST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 18, TOWNSHIP 3 NORTH, RANGE 1 EAST, BOISE MERIDIAN, ADA COUNTY, IDAHO, WHICH IS SOUTH ALONG THE EAST SIDE OF SAID SECTION 18 AND ALONG THE CENTER LINE OF LOCUST GROVE ROAD, 1,329.2 FEET FROM A BRONZE CAP MARKING THE NORTHEAST CORNER OF SAID SECTION 18; THENCE SOUTH 890 11 1/2' WEST ALONG THE SOUTH SIDE OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 18, A DISTANCE OF 438.7 FEET TO A STEEL PIN; THENCE NORTH 00 55' EAST, 149.0 FEET TO A STEEL PIN; THENCE NORTH 890 11 1/2' EAST, 436.3 FEET TO A STEEL PIN; THENCE SOUTH 149.0 FEET ALONG THE EAST SIDE OF SAID SECTION 18 TO THE REAL POINT OF BEGINNING. EXCEPT THAT PORTION CONVEYED TO ACHD BY WARRANTY DEED RECORDED AUGUST 20, 2003 AS INSTRUMENT NO. 103141561, RECORDS OF ADA COUNTY, IDAHO. The Real Property or its address is commonly known as 385 S. LOCUST GROVE RD., MERIDIAN, ID 83642. CROSS -COLLATERALIZATION. In addition to the Note, this Deed of Trust secures all obligations, debts and liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, as well as all claims by Lender against Grantor or any one or more of them, whether now existing or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated, whether Grantor may be liable individually or jointly with others, whether obligated as guarantor, surety, accommodation party or otherwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations, and whether the obligation to repay such amounts may be or hereafter may become otherwise unenforceable. Grantor presently assigns to Lender (also known as Beneficiary in this Deed of Trust) all of Grantor's right, title, and interest in and to all present and future leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents. THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS DEED OF TRUST. THIS DEED OF TRUST IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Except as otherwise provided in this Deed of Trust, Grantor shall pay to Lender all amounts secured by this Deed of Trust as they become due, and shall strictly and in a timely manner perform all of Grantor's obligations under the Note, this Deed of Trust, and the Related Documents. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the following provisions: Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; (2) use, operate or manage the Property; and (3) collect the Rents from the Property. The following provisions relate to the use of the Property or to other limitations on the Property. THE REAL PROPERTY EITHER IS NOT MORE THAN FORTY (40) ACRES IN AREA OR IS LOCATED WITHIN AN INCORPORATED CITY OR VILLAGE. Duty to Maintain. Grantor shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws. (b) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or from the Property; and (b) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Deed of Trust. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws; and (2) agrees to indemnify, defend, and hold harmless ED OF TRUST Loan No: 11110067 (Continued) �: r, Page 2 Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Deed of Trust or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Deed of Trust, including the obligation to indemnify and defend, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Dead of Trust and shall not be affected by Lender's acquisition of any interest in the Property, whether by foreclosure or otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written consent. Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without Lender's prior written consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Deed of Trust. Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, the Americans With Disabilities Act. Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest. Duty to Protea. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property. DUE ON SALE - CONSENT BY LENDER. Lender may, at Lender's option, declare immediately due and payable all sums secured by this Deed of Trust upon the sale or transfer, without Lender's prior written consent, of all or any part of the Real Property, or any interest in the Real Property. A "sale or transfer" means the conveyance of Real Property or any right, tide or interest in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease -option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real Property, or by any other method of conveyance of an interest in the Rea( Property. If any Grantor is a corporation, partnership or limited liability company, transfer also includes any change in ownership of more than twenty-five percent (25%) of the voting stock, partnership interests or limited liability company interests, as the case may be, of such Grantor. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Idaho law. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Deed of Trust: Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (including water and sewer), fines and impositions levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of all liens having priority over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this Deed of Trust. Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor shall within fifteen If 5) days after the lien arises or, if a lien is filed, within fifteen 0M days after Grantor has notice of the filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and reasonable attorneys' fees, or other charges that could accrue as a result of a foreclosure or safe under the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property. Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust. Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in such liability insurance policies. Additionally, Grantor shall maintain such other insurance, including but not limited to hazard, business interruption, and boder insurance, as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Grantor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten 0O) days prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. Should the Real Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if Grantor fads to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. H Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shag be paid to Grantor as Grantor's interests may appear. Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish to Lender a report on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4) the property insured, the then current replacement value of such property, and the manner of determining that value; and (5) the expiration date of the policy. Grantor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the Property. LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if Grantor fails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Grantor's failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Grantor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all �Loan No: 11110067 EED OF TRUST(Continued) • Page 3 taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying ail costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon Default. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust: Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Grantor has the full right, power, and authority to execute and deliver this Deed of Trust to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Trustee or Lender under this Deed of Trust, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. Survival of Representations and Warranties. All representations, warranties, and agreements made by Grantor in this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and shall remain in full force and effect until such time as Grantor's Indebtedness shall be paid in full. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust: Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation. Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees incurred by Trustee or Lender in connection with the condemnation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges are a part of this Deed of Trust: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Deed of Trust and take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Deed of Trust, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Deed of Trust. Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Deed of Trust; (3) a tax on this type of Deed of Trust chargeable against the Lender or the holder of the Note; and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Grantor. Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Deed of Trust, this event shall have the same effect as an Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor either (1) pays the tax before it becomes delinquent, or (2) contests the tax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Deed of Trust as a security agreement are a part of this Deed of Trust: Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property. In addition to recording this Deed of Trust in the real property records. Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Deed of Trust as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest. Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law. Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security interest granted by this Deed of Trust may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Deed of Trust. FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relating to further assurances and attorney-in-fact are a part of this Deed of Trust: Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (1) Grantor's obligations under the Note, this Deed of Trust, and the Related Documents, and (2) the liens and security interests created by this Deed of Trust as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this paragraph. Attomey-in-Fact. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantor's expense. For such purposes. Grantor hereby irrevocably appoints Lender as Grantor's attorney-in-fact for the purpose of making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this Deed of Trust, Lender shall execute and deliver to Trustee a request for full reconveyance and shall execute and deliver to Grantor suitable statements of termination of any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property. Any reconveyance fee required by law shall be paid by Grantor, if permitted by applicable law. EVENTS OF DEFAULT. Each of the following, at Lender's option, shall constitute an Event of Default under this Deed of Trust: Payment Default. Grantor fails to make any payment when due under the Indebtedness. Other Defaults. Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Dead of Trust or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Grantor. EED OF TRUST ¢� Loan No: 11110067 (Continued) • Page 4 Compliance Default. Failure to comply with any other term, obligation, covenant or condition contained in this Deed of Trust, the Note or in any of the Related Documents. Default on Other Payments. Failure of Grantor within the time required by this Deed of Trust to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. Default in Favor of Third Parties. Should Grantor default under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Grantor's property or Grantor's ability to repay the Indebtedness or perform their respective obligations under this Deed of Trust or any of the Related Documents. False Statements. Any warranty, representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Deed of Trust or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Defective Collateralization. This Deed of Trust or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Death or Insolvency. The dissolution of Grantor's (regardless of whether election to continue is made), any member withdraws from the limited liability company, or any other termination of Grantor's existence as a going business or the death of any member, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any governmental agency against any property securing the Indebtedness. This includes a garnishment of any of Grantor's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or later. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. Adverse Change. A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. Insecurity. Lender in good faith believes itself insecure. RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this Deed of Trust, at any time thereafter, Trustee or Lender may exercise any one or more of the following rights and remedies: Notice of Default. In the Event of Default Lender shall execute or cause the Trustee to execute a written notice of such default and of Lender's election to cause the Property to be sold to satisfy the Indebtedness, and shall cause such notice to be recorded in the office of the recorder of each county wherein the Real Property, or any part thereof, is situated. Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Grantor under this Deed of Trust, after Grantor's failure to perform, shall not affect Lender's right to declare a default and exercise its remedies. Accelerate Indebtedness. Lender shall have the right at its option without notice to Grantor to declare the entire Indebtedness immediately due and payable, including any prepayment penalty which Grantor would be required to pay. Foreclosure. With respect to all or any part of the Real Property, the Trustee shall have the right to foreclose by notice and sale, and Lender shall have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law. UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents. Lender shall have the right, without notice to Grantor to take possession of and manage the Property and collect the Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness. In furtherance of this right, Lender may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably designates Lender as Grantor's attorney-in-fact to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person, by agent, or through a receiver. Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver mey serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (1) pay a reasonable rental for the use of the Property, or (2) vacate the Property immediately upon the demand of Lender. Other Remedies. Trustee or Lender shall have any other right or remedy provided in this Deed of Trust or the Note or available at law or in equity. Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time after which any private sale or other intended disposition of the Personal Property is to be made. Reasonable notice shall mean notice given at least ten (10) days before the time of the sale or disposition. Any sale of the Personal Property may be made in conjunction with any sale of the Real Property. Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all rights to have the Property marshalled. In exercising its rights and remedies, the Trustee or Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Notice of sale having been given as then required by law, and not less than the time required by law having elapsed, Trustee, without demand on Grantor, shall sell the property at the time and place fixed by it in the notice -of sale at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee shall deliver to the purchaser his or her deed conveying the Property so sold, but without any covenant or warranty express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness of such matters or facts. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title and reasonable attorneys' fees, including those in connection with the sale, Trustee shall apply proceeds of sale to payment of (a) all sums expended under this Deed of Trust, not then repaid with interest thereon as provided in this Deed of Trust; (b) all Indebtedness secured hereby; and (c) the remainder, if any, to the person or persons legally entitled thereto. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Deed of Trust, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's reasonable attorneys' fees and Lender's legal expenses whether or not there is ,r. �Loan No: 11110067 EED OF TRUST(Continued) Page 5 a lawsuit, including reasonable attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post -judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appraisal fees, title insurance, and fees for the Trustee, to the extent permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law. Rights of Trustee. Trustee shall have all of the rights and duties of Lender as set forth in this section. POWERS AND OBLIGATIONS OF TRUSTEE. The following provisions relating to the powers and obligations of Trustee are part of this Deed of Trust: Powers of Trustee. In addition to all powers of Trustee arising as a matter of law, Trustee shall have the power to take the following actions with respect to the Property upon the written request of Lender and Grantor: (a) join in preparing and filing a map or plat of the Real Property, including the dedication of streets or other rights to the public; (b) join in granting any easement or creating any restriction on the Real Property; and (c) join in any subordination or other agreement affecting this Deed of Trust or the interest of Lender under this Deed of Trust. Obligations to Notify. Trustee shall not be obligated to notify any other party of a pending sale under any other trust deed or lien, or of any action or proceeding in which Grantor. Lender, or Trustee shall be a party, unless the action or proceeding is brought by Trustee. Trustee. Trustee shall meet all qualifications required for Trustee under applicable law. In addition to the rights and remedies set forth above, with respect to all or any part of the Property, the Trustee shall have the right to foreclose by notice and sale, and Lender shall have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law. Successor Trustee. Lender, at Lender's option, may from time to time appoint a successor Trustee to any Trustee appointed under this Deed of Trust by an instrument executed and acknowledged by Lender and recorded in the office of the recorder of ADA County, State of Idaho. The instrument shall contain, in addition to all other matters required by state law, the names of the original Lender, Trustee, and Grantor, the book and page where this Deed of Trust is recorded, and the name and address of the successor trustee, and the instrument shall be executed and acknowledged by Lender or its successors in interest. The successor trustee, without conveyance of the Property, shall succeed to all the title, power, and duties conferred upon the Trustee in this Deed of Trust and by applicable law. This procedure for substitution of Trustee shall govern to the exclusion of all other provisions for substitution. NOTICES. Any notice required to be given under this Deed of Trust, including without limitation any notice of default and any notice of sale shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Deed of Trust. All copies of notices of foreclosure from the holder of any lien which has priority over this Deed of Trust shall be sent to Lender's address, as shown near the beginning of this Deed of Trust. Any party may change its address for notices under this Deed of Trust by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise provided or required by law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Deed of Trust: Amendments. This Deed of Trust, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Deed of Trust. No alteration of or amendment to this Deed of Trust shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Annual Reports. If the Property is used for purposes other than Grantor's residence, Grantor shall furnish to Lender, upon request, a certified statement of net operating income received from the Property during Grantor's previous fiscal year in such form and detail as Lender shall require. "Net operating income" shall mean all cash receipts from the Property less all cash expenditures made in connection with the operation of the Property. Caption Headings. Caption headings in this Deed of Trust are for convenience purposes only and are not to be used to interpret or define the provisions of this Deed of Trust. Merger. There shall be no merger of the interest or estate created by this Deed of Trust with any other interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. Governing Law. This Deed of Trust will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Idaho without regard to its conflicts of law provisions. This Deed of Trust has been accepted by Lender in the State of Idaho. Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of ADA County, State of Idaho. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Deed of Trust unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Deed of Trust shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Deed of Trust. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Deed of Trust, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cased -such consent may be granted or withheld in the sole discretion of Lender. Severability. If a court of competent jurisdiction finds any provision of this Deed of Trust to be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending provision cannot be so modified, it shall be considered deleted from this Deed of Trust. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Deed of Trust shall not affect the legality, validity or enforceability of any other provision of this Deed of Trust. Successors and Assigns. Subject to any limitations stated in this Deed of Trust on transfer of Grantor's interest, this Deed of Trust shall be binding upon and inure to the benefit of the parties, their successors and assigns. If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Deed of Trust and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Deed of Trust or liability under the Indebtedness. Time is of the Essence. Time is of the essence in the performance of this Deed of Trust. Waive Jury. All parties to this Deed of Trust hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any party against any other party. Waiver of Homestead Exemption. Grantor hereby releases and waives all rights and benefits of the homestead exemption laws of the State of Idaho as to all Indebtedness secured by this Deed of Trust. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Deed of Trust. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of. the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Deed of Trust shall have the meanings attributed to such terms in the Uniform Commercial Code: Beneficiary. The word "Beneficiary" means IDAHO INDEPENDENT BANK, and its successors and assigns. Borrower. The word "Borrower" means TTS DEVELOPMENTS LLC and includes all co-signers and co -makers signing the Note and all their successors and assigns. Deed of Trust. The words "Deed of Trust" mean this Deed of Trust among Grantor, Lender, and Trustee, and includes without limitation all assignment and security interest provisions relating to the Personal Property and Rents. Default. The word "Default" means the Default set forth in this Deed of Trust in the section titled "Default". Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances OPERATING AGREEMENT OF TTS DEVELOPMENTS LIMITED LIABILITY COMPANY The Operating Agreement of TTS Developments Limited Liability Company, an Idaho Limited ;Liability Company organized pursuant to the Idaho Limited Liability Company Act, is entered into as of the effective date, by and among the company and the persons executing this agreement as members. ARTICLE 1: DEFINITIONS For purposes of this operating agreement (as defined below) unless the context clearly indicates otherwise, the following terms shall have the following meanings: 1.01 Act. The Idaho Limited Liability Company Act and all amendments thereto. 1.02 Additional Member. A member other than an initial member or a substitute member who has acquired a membership interest from the company. 1.03 Articles. The articles of organization of the company as properly adopted and amended from time to time by the members and filed with the Idaho Secretary of State. 1.04 Assignee. A transferee of a membership interest who has not been admitted as a substituted member. 1.05 Bankrupt Member. A member who (1) has become the subject of an order for, relief under the United States Bankruptcy Code, or (2) has initiated, either in an original proceeding or by way of answer in any state insolvency or receivership proceeding, an action for liquidation, arrangement, composition, readjustment, dissolution, or similar relief. 1.06 Business Day. Any day other than Saturday, Sunday or any legal holiday observed in the State of Idaho. 1.07 Account. The account maintained for a member or assignee determined in accordance with article 8. 1.08 Contribution. Any contribution of property, services or the obligation to contribute property or services made by or on behalf of a member or assignee. 1.09 Code. The Internal Revenue Code of 1986, as amended from time to time. 1.10 Commitment. The capital contributions that a member or assignee is obligated to make under this operating agreement. OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - i mbp <4244.001> Operating Agreement 03152008 s �e 1.11 Company. T-fS Development Limited Liability Company, a limited liability company formed under the laws of Idaho, and any successor limited liability company. 1.12 Contributing Members. Those members making contributions as a result of the failure of a delinquent member to make contributions required by the commitment described in article 8. 1.13 Default Interest Rate. The higher of the legal rate then in effect in the State of Idaho or the then -current prime rate quoted by the largest commercial bank in the jurisdiction of the principal office, plus 2%. 1.14 Delinquent Member. A member or assignee who has failed to meet the commitment of that member or assignee. 1.15 Distribution. A transfer of property to a member on account of a membership interest as described in article 9. 1.16 Disposition. Any sale, assignment, transfer, exchange, mortgage, pledge, grant, hypothecation or other transfer, absolutely or as security or encumbrance (including dispositions by operation of law). The term "dispose" shall be similarly defined. 1.17 Dissociation. Any action which causes a person to cease to be a member as described in article 12 hereof 1.18 Dissolution Event. An event, the occurrence of which will result in the dissolution of the company under article 14 unless the members agree to the contrary. 1.19 Effective Date. March 4, 2008. 1.20 Immediate Fansily. The member's immediate family includes the member's spouse, children (including natural, adopted and step -children), grandchildren and parents. 1.21 Initial Contribution. The capital contribution agreed to be made by the initial members as described in article 8. 1.22 Initial Members. Those persons identified in article 5 who have executed the operating agreement. 1.23 Majority. The affirmative vote or consent of more than one-half of the membership interest of all members described as a "majority" in article 6 hereof. 1.24 Management Right. The right of a member to participate in the management of the company, including the rights to information and to consent or approve actions of the company. OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 2 mbp <4244.001> Operating Agreement 03152008 1.25 Member. An initial member, substituted member or additional member, and, unless the context expressly indicates to the contrary, includes assignees. 1.26 Membership Interest. The rights of a member or, in the case of an assignee, the rights of the assigning member in distributions (liquidating or otherwise) and allocations of the profits, losses, deductions and credits of the company. 1.27 Net Losses. The losses and reductions ofthe company determined in accordance with accounting principles consistently applied from year to year employed under the method of accounting adopted by the company and as reported separately or in the aggregate, as appropriate, on the tax return of the company filed for federal income tax purposes. 1.28 Net Profits. The income and gains of the company determined in accordance with accounting principles consistently applied from year to year employed under the method of accounting adopted by the company and as reported separately or in the aggregate, as appropriate, on the tax return of the company filed for federal income tax purposes. 1.29 Notice. Notice shall be in writing. Notice to a member shall be considered given when mailed by first-class mail, postage prepaid, addressed to the member at the address reflected in this operating agreement, unless the member has given the company a notice of a different address. 1.30 Operating Agreement. This operating agreement, including all subscription agreements, if any, and amendments adopted in accordance with the operating agreement and the act. 1.31 Organization. A person other than a natural person. Organization includes, without limitation, corporations (both non-profit and other corporations), partnerships (both limited and general), joint ventures, limited liability companies and unincorporated associations, but the term does not include joint tenancy and tenancies by the entirety. 1.32 Organization Expenses. Those expenses incurred in the organization of the company, including the costs of preparation of the operating agreement and articles. 1.33 Proceeding. Ally judicial or administrative trial, hearing or other activity, civil, criminal or investigative, the result of which may be that a court, arbitrator or governmental agency may enter a judgment, order, decree, or other determination which, if not appealed or reversed, would be binding upon the company, a member or other person subject to the jurisdiction of such court, arbitrator or governmental agency. 1.34 Property. Any property, real or personal, tangible or intangible, including money, and any legal or equitable interest in such property, but excluding services and promises to perform services in the future. OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 3 mbp <4244.001> Operating Agreement 03152008 to • 135 Permitted Transferee. Any member of the member's immediate family, or an organization controlled by such member or members of the member's immediate family. 1.36 Person. An individual, trust, estate or any incorporated or unincorporated organization permitted to be a member of a limited liability company under the laws of the State of Idaho. 137 Proceeding. Any administrative, judicial or other adversary proceeding, including, without limitation, litigation, arbitration, administrative adjudication, mediation, and appeal or review of any of the foregoing. 1.38 Regulations. Except where the context indicates otherwise, the permanent, temporary, proposed, orproposed and temporary regulations ofthe Department ofthe Treasuryunder the Code as such regulations may be lawfully changed from time to time. 1.39 Related Person. A person having a relationship to a member that is described in section 1.751-4(b) of the regulations. 1.40 Sharing Ratio. With respect to any member, the percentage of ownership in the company as specified in article 5 hereof, as modified by any subsequent adjustments in the capital account of the member. 1.41 Substitute Member. An assignee who has been admitted to all of the rights of membership pursuant to the operating agreement. 1.42 Taxable Year. The taxable year of the company as determined pursuant to section 706 of the Code. 1.43 Taxing Jurisdiction. Any state, local or foreign governmental entity that collects tax, interest or penalties, howrever designated, on any member's share of the income or gain attributable to the company. ARTICLE 2: FORMATION 2.01 Organization. The members hereby organize the company as an Idaho Limited Liability Company pursuant to provisions of the act. 2.02 Agreement. For and in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the members executing the operating agreement hereby agree to the terms and conditions of the operating agreement, as it may from time to time be amended according to its terms. It is the express intention of the members that the operating agreement shall be the sole source of agreement of the parties, and, except to the extent a provision of the operating agreement expressly incorporates federal income tax rules by reference to sections of the Code or regulations OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 4 mbp <4244.001> Operating Agreement 03152008 or is expressly prohibited or ineffective under the act, the operating agreement shall govern, even when inconsistent with, or different than, provisions of the actor any other law or rule. To the extent any provision of the operating agreement is prohibited or ineffective under the act, the operating agreement shall be considered amended to the smallest degree possible in order to make the agreement be effective under the act. In the event the act is subsequently amended or interpreted in such a way as to make any provision of the operating agreement that was formerly invalid valid, such provision shall be considered to be valid from the effective date ofsuch interpretation or amendment. 2.03 Name. The name of the company is TTS Developments Liability Company, which may be abbreviated as TTS Developments, LLC. 2.04 Effective Date. The operating agreement shall be effective upon the earlier of the filing and acceptance of the same with the Idaho Secretary of State or the date of execution of the operating agreement. 2.05 Term. The company shall be dissolved and its affairs wound up in accordance with the Act and the operating agreement on December 31, 2028, unless the term shall be extended by amendments to the operating agreement and the articles of organization, or unless the company shall be sooner dissolved and its affairs wound up in accordance with the Act or the operating agreement. 2.06 Registered Agent and Office. The registered agent for service of process and the registered office shall be that person and location reflected in the articles as filed in the office of the Idaho Secretary of State. The members may, from time to time, change the registered agent or office through appropriate filings with the Idaho Secretary of State. If the members shall fail to designate a replacement registered agent or change of address of the registered office, any member may designate a replacement registered agent or file a notice of change of address through appropriate filings with the Idaho Secretary of State. 2.07 Principal Office. The principal office of the company shall be located at 385 Locust Grove, Meridian, Idaho 83642. ARTICLE 3: NATURE OF BUSINESS 3.01 Business of Company. The company may engage in any lawful business permitted by the Act or the laws of any jurisdiction in which the company may do business. 3.02 Ancillary Powers. The company shall have the authority to do all things necessary or convenient to accomplish its purpose and to operate its business as described in this article 3. ARTICLE 4: ACCOUNTING AND RECORDS 4.01 Records to be Maintained. The company shall maintain the following records and information at its principal office: OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 5 mbp <4244.001> Operating Agreement 03152008 (1) A current and past list, setting forth the full name and last known mailing address of each member; (2) A copy of the articles of organization and all amendments thereto, together with executed copies of any powers of attorney pursuant to which any articles have been executed; (3) Copies of the company's federal, state and local income tax returns and reports, ifany, for the three most recent years; (4) Copies of the operating agreement including all amendments thereto and copies of any written operating agreement no longer in effect; (5) Any financial statements of the company for the three most recent years; (6) A writing or other data compilation from which information can be obtained through retrieval devices into reasonably usable form setting forth the following: (a) The amount of cash and a description and statement of the agreed value of the other property or services contributed by each member and which each member has agreed to contribute; (b) The times at which or events on happening of which any additional commitments agreed to be made by each member are to be made; (c) Any right of a member to receive, or of the company to make, distributions to a member which include a return of all or any part of the member's capital contributions; and (d) Any events upon the happening of which the company is to be dissolved and its affairs wound up. 4.02 Reports to Members. The company shall provide all members with those information returns required by the Code and the laws of any state in which the company operates. In addition, the company shall provide reports at least annually to the members, other than assignees, at such time and in such manner as the members may determine reasonable. 4.03 Accounts. The members shall maintain a record of the account for each member in accordance with Article 8. ARTICLE 5: MEMBERS 5.01 Names and Addresses of Members. The names and addresses of the initial members as follows: Joseph Grubiak and 24811 Lemp Lane Holly -Hattan Grubiak, husband and wife Parma, ID 83660 OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 6 mbp <4244.001> Operating Agreement 03152008 li: w Brent Belveal 520 W Ashby Dr. and Barbara J. Belveal, husband and wife Meridian ID 83646 5.02 Initial Capital Contributions and Ownership Interests. The initial capital contributions of the members to the company and the initial ownership interests of the Members in the Company are as follows: Joseph Grubiak and Holly -Hattan Grubiak $73,500/50 units Brent Belveal and Barbara J. Belveal $73,500/50 units 5.03 No Adjustment of Ownership Interests. The ownership interests of the members and their sharing ratios shall not be adjusted from time to time. 5.04 Address For Notice. Any notice required to be given pursuant to this Agreement shall be deemed effective when deposited in the US Mail, first class postage prepaid to the following addresses: Joseph Grubiak and Holly -Hattan Grubiak 24811 Lemp Lane Parma, ID 83660 Brent Belveal and Barbara J. Belveal 745 N Ralstin Meridian ID 83642 ARTICLE b: RIGHTS AND DUTIES OF MEMBERS 6.01 Management Rights. All members(other than assignees) who have not disassociated shall be entitled to vote on any matter submitted to a vote of the members. Notwithstanding the foregoing, the following actions require the consent of a majority of the members: (1) Acquisition of real estate or any interest in real estate or the assets or other interest in any corporation, partnership or other entity. (2) Sales and other dispositions of any real estate or interest in real estate owned by the company. (3) Obtaining of any loan commitments for the acquisition of real estate or for improvements thereon. (4) The creation of any mortgage, deed of trust or other encumbrance on realty or any lien, security interest or encumbrance on any personal property owned by the company. (5) Execution of any guaranty, endorsement or other contingent obligation on the part of the company. OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 7 mbp <4244.001> Operating Agreement 03152008 qo of (6) The borrowing of money. (7) Compromise, settlement or release of any debt due the company, except on full payment thereof, or a submission of a company claim or liability to arbitration, mediation or reference. (8) The formation or engagement in any joint venture or partnership in which the company is a joint venturer or partner. (9) Any loan of company funds to any person, including a member. 6.02 Actions Requiring the Consent of All Members. The following actions require the consent of all the members: (1) Any amendment to this operating agreement. (2) The admission of assignees to management rights. (3) The continuation of the company after a dissolution event. (4) The authorization of a member to do any act on behalf of the company that contravenes the operating agreement. 6.03 Majority. Whenever any matter is required or allowed to be approved by a majority of the members, or a majority of the remaining members, under the Act or the operating agreement, such matters shall be considered approved or consented to upon the receipt of the affirmative approval or consent, either in writing or at a meeting of the members, of voting members as defined by Article 5.01.01, having sharing ratios in excess of one-half of the sharing ratios of all the members entitled to vote on a particular matter. Assignees and, in the case of approvals to withdrawal where consent of the remaining members is required, disassociating members shall not be considered members entitled to vote for the purpose of determining a majority. In the case of the member who has disposed of that member's entire membership interest to an assignee, but has not been removed as provided below, the sharing ratio of such assignee shall be considered in determining a majority, and such member's vote or consent shall be determined by such sharing ratio. 6.04 Liability of Members. No person solely by virtue of his member status shall be liable as such for the liabilities of the company. The failure of the company to observe any formalities or requirements relating to the exercise of its powers or management of its business or affairs under this agreement or the act shall not be grounds for imposing personal liability on the members or managers for liabilities of the company. 6.05 Indemnification. The company shall indemnify the members, managing members and agents for all costs, losses, liabilities and damages paid or accrued by any such member, manager or agent in connection with the business of the company to the fullest extent provided or allowed by the laws of the State of Idaho. OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 8 mbp <4244.001> Operating Agreement 03152008 6.06 Representations and Warranties. Each member, and in the case of an organization, a person or persons executing the operating agreement on behalf of the organization, hereby represents and warrants to the company and each other member that: (1) If that member is an organization, that it is duly organized, validly existing and in good standing under the law of its state of organization and that it has full organizational power to execute and agree to the operating agreement and to perform its obligations hereunder; (2) That the member is acquiring its interest in the company for the member's own account as investment and without an intent to distribute the interest; and (3) The member acknowledges that the interests have not been registered under the Securities Act of 1933 or any state securities laws and may not be resold or transferred by the member without appropriate registration for the availability of an exemption from such requirements. 6.07 Conflicts of Interest. A member shall be entitled to enter into transactions that may be considered to be competitive with, or a business opportunity that may be beneficial to, the company, it being expressly understood that some of the members may enter transactions that are similar to the transactions into which the company may enter. Notwithstanding the foregoing, members shall account to the company and hold as trustee for it any property, profit or benefit derived by the member without the consent of the other members, in the conduct and winding up of the company business or from a use or appropriation by the member of company property, including information developed exclusively for the company and opportunities expressly offered to the company. A member does not violate a duty or obligation to the company merely because a member's conduct furthers the member's awn interest. A member may lend money to or transact other business with the company. The rights and obligations of a member who lends money to or transacts business with the company are the same of those who is not a member, subject to other applicable laws. No transaction with the company shall be voidable solely because a member has a direct or indirect interest in the transaction. If the transaction is fair to the company, or if the disinterested members, knowing the material facts of the transaction and the member's interest, authorize, approve or ratify the transaction. ARTICLE 7: MANAGEMENT OF COMPANY 7.01 Day to Day Management by Members. The management ofthe business and affairs of the company shall be vested in the Voting Members as determined by Article 5 of this Agreement, who shall each have the right. and authority to make decisions with respect to the day to day management of the company. 7.02 Authority of Member to Bind the Company. The Members shall have the power, as Members of the company, to do all things necessary or convenient to carry out the day to day business and affairs of the company. In this regard, the Members shall have the authority to: OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 9 mbp <4244.001> Operating Agreement 03152008 ft of (1) Conduct of the company's business, the establishment of company offices and the exercise of the powers of the company within or without the State of Idaho; (2) Appointment agents and employees ofthe company, including defining oftheir duties and the establishment of their compensation; and, (3) Execute and endorse all checks, drafts, notes and other negotiable instruments made in behalf of the company. 7.03 Authority of Majority of Voting Members. The majority of the Members shall have the power and the authority to perform the following duties: (1) The institution, prosecution and defense of any proceeding in the company's name; (2) The purchase, receipt, lease or other acquisition, ownership, holding, improvement, use or other dealing with property, wherever located; (3) The sale, conveyance, mortgage, pledge, lease, exchange and other disposition of property; (4) Entering into contracts and guarantees; incurring liabilities; borrowing money; issuance of notes, bonds and other obligations; and securing any of its obligations by mortgage or pledge of any of its property or income; (5) Lending money, investment and reinvestment of the company's funds, receipt and holding of property as security for repayment, including, without limitation, loaning money to officers, employees and agents; (6) The payment of pensions and establishment of pension plans, pension trusts, profit sharing plans, and benefit and incentive plans for all or any of the current or former members, employees and agents of the company; (7) The making of donations to the public welfare or for religious, charitable, scientific, literary or educational purposes; (S) Payment or donation or any other act that furthers the business and affairs of the company; (9) The payment ofcompensation or additional compensation to any or all members and employees on account of services previously rendered to the company, whether or not an agreement to pay such compensation was made before such services were rendered; (10) The purchase of insurance on the life of any members or employees for the benefit of the company; OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 10 mbp <4244.001> Operating Agreement 03152008 El r (11) Participation inprartnershipagreements,jointventuresorotherassociation ofanykind with any person or persons; 7.04 Conduct of Business by a Majority of the Members. A majority of the Members shall have the power to bind the company as provided in this article 7. No act of a member in contravention of the requirement that the business of the company be conducted by a majority of the members shall bind the company to persons having knowledge of such requirement. 7.05 Company Bank Account. The company shall establish a checking account into which the company's receipts shall be deposited and from which the company's disbursements shall be made. The funds of the company shall not be commingled with the personal funds of any member. 7.06 Members' Standard of Care. A member's duty of care in the discharge of the member's duties to the company and the other members is limited to refraining from engaging in grossly negligent or reckless conduct, intentional misconduct or a knowing violation of the law. In discharging his duties, a member shall be fully protected in relying in good faith on records required to be maintained under article 4 and upon such information, opinions, reports or statements by any other members or agents of the company or by any other person, as to matters the member reasonably believes are within such other person's professional or expert competence and who has been selected with reasonable care by or on behalf of the company, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, profits or losses of the company or any other facts pertinent to the existence and amount of assets from which distributions to members might properly be paid. ARTICLE 8: CONTRIBUTIONS AND CAPITAL ACCOUNTS 8.01 Initial Contributions. Each initial member shall make the capital contribution described for that member in article 5 upon the filing of the articles of organization with the Idaho Secretary of State. The value of capital contributions shall be as set forth in part 5. No interest shall accrue on any capital contribution and no member shall have the right to withdraw or to be paid any capital contribution except as provided in this operating agreement. 8.02 Additional Contributions. In addition to the initial capital contributions and commitments, the Voting Members may determine from time to time by majority vote that additional contributions are needed to enable the company to conduct its business. Upon making such a determination, notice shall be given to all Voting Members in writing at least ten business days prior to the date on which such contribution is due. Such notice shall set forth the amount of additional contributions needed, for which the contribution is needed, and the date by which the Voting Members should contribute. There shall be no requirement that additional capital contributions shall be made in proportionate shares. Except to the extent of a member's unpaid commitment, no member shall be obligated to make any such additional contributions. In the event any one or more members do not make their initial contribution, the other members shall be given the opportunity to make the contribution. Each additional member shall make the capital contribution to which such member has agreed, at the time or times and upon the terms to which the existing members and the additional member agree. OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC -11 mbp <4244.001> Operating Agreement 03152008 8.03 Enforcement of Commitments. In the event any member fails to perform such member's commitment, the delinquent member shall be given a notice of the failure to meet the commitment. If the delinquent member fails to perform the commitment (including any costs associated with the failure to demand compliance with the commitment and interest on such obligation at the default interest rate) within ten business days of the giving of notice, the members may take such action, including but not limited to enforcing the commitment in a court of appropriate jurisdiction in the state in which the principal office is located or the state of the delinquent member's address as reflected in the operating agreement. Each member expressly agrees to the jurisdiction of such court but only for the enforcement of such commitments. The members may elect to allow the other members to contribute to the commitment in proportion to such members' sharing ratios. The contributing members shall be entitled to treat the amounts contributed as a loan from the contributing members bearing interest at the default interest rate secured by the delinquent member's interest in the company. Until they are fully repaid, a contributing Voting Member shall be entitled to all distributions to which the delinquent member would have been entitled. Notwithstanding the foregoing, no commitment or other obligation to make an additional contribution may be enforced by a creditor of the company unless the member expressly consents to such enforcement or to the assignment of the obligation to such creditor. 8.04 Maintenance of Capital Accounts. The company shall establish and maintain capital accounts for each member and assignee. Each member's capital account shall be increased by (1) the amount of any money actually contributed by the member to the capital of the company, (2) the fair market value of any property contributed, as determined by the company and the contributing member at arm's length at the time of contribution (net of liabilities assumed by company or net of liabilities which the company takes such property subject to, within the meaning of section 752 of the Code), and (3) the member's share of net profits and of any separately allocated items of income or gain, except adjustments of the Code (including any gain and income from unrealized income with respect to accounts receivable allocated to the member to reflect the difference between the book value and tax basis of assets contributed by the member). Each member's capital account shall be decreased by (1) the amount of any money actually distributed to a member, (2) the fair market value of any property distributed to the member, as determined by the company and the contributing member at arm's length at the time of distribution (net of liabilities of the company assumed by the member or net of liabilities which the member takes the property subject to, within the meaning of section 752 of the Code), and (3) the member's share of net losses and of any separately allocated items of deduction or loss (including any loss or deduction allocated to the member to reflect the difference between book value and tax basis of assets contributed by the member). 8.05 Distribution of Assets. If the company at any time distributes any of its assets in- kind to any member, the capital account of each member shall be adjusted to account for that member's allocable share (as determined under article 9) of the net profits or net losses that would have been realized by the company had it sold the assets that were distributed at the respective fair market values immediately prior to their distribution. OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 12 mbp <4244.001> Operating Agreement 03152008 of article 9. The members may, where permitted by the rules of any taxing jurisdiction, file a composite, combined or aggregate tax return reflecting the income of the company and pay the tax, interest and penalties of some or all of the members on such income to the taxing jurisdiction, in which case the company shall inform the members of the amount of such tax, interest and penalties so paid. 10.03 Tax Matters Partner. The members shall designate one of their number as the tax matters partner of the company pursuant to section 623l(a)(7) of the Code. 10.04 Cash Method of Accounting. The records of the company shall be maintained on a cash receipts and disbursements method of accounting. ARTICLE 11: DISPOSITION OF MEMBERSHIP INTERESTS 11.01 Disposition. Any member or assignee may dispose ofall or a portion ofthe member's or assignee's membership interest upon compliance with this article 11. No membership shall be disposed of: (1) If such disposition, alone or when combined with other transactions, would result in a termination of the company within the meaning of section 708 of the Code; (2) If a majority of the remaining members request an opinion of counsel that such assignment is subject to an effective registration under the applicable state and federal securities laws, or is exempt from such registration requirements; (3) Unless and until the company receives from the assignee the information and agreements that a majority of the remaining members may reasonably require, including but not limited to any taxpayer identification number and any agreement that may be required by any taxing jurisdiction. 11.02 Dispositions Not in Compliance with this Article Void. Any attempted disposition of a membership interest, or any part thereof, not in compliance with this article is null and void. ARTICLE 12: DISSOCIATION OF MEMBER 12.01 Dissociation. A person shall cease to be a member upon the happening of any of the following events: (1) The member withdraws by voluntary act from the company by giving thirty days' notice to the remaining members. (2) The member ceases to be a member of the company due to the assignment of all of such member's interest in the company and the assignee has become a substitute member. OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 14 mbp <4244.001> Operating Agreement 03152008 of of 8.06 Sale or Exchange of Interest. In the event of a sale or exchange of some or all of a member's interest in the company, the capital account of the transferring member shall become the capital account of the assignee, to the extent it relates to the portion of the interest transferred. 8.07 Compliance with Section 704(b) of the Code. The provisions of this article 8 as they relate to the maintenance of capital accounts are intended, and shall be construed, and, if necessary, modified to cause the allocations of profits, losses, income, gain and credit pursuant to article 9 to have substantial economic effect under the regulations promulgated under section 704(b) of the Code, in light of the distributions made pursuant to articles 9 and 14 and the capital contributions made pursuant to this article 8. Notwithstanding anything herein to the contrary, the operating agreement shall not be construed as creating a deficit restoration obligation or otherwise personally obligating any member to make a capital contribution in excess of the initial contribution. ARTICLE 9: ALLOCATIONS AND DISTRIBUTIONS 9.01 Allocations of Net Profits and Net Losses from Operations. Except as may be required by section 704(c) of the Code, and article 9.02 hereof, net profits and other items of income, gain and credit shall be apportioned among the members in proportion to their sharing ratios. Net losses, deductions and depreciation shall be apportioned among the members in proportion to their sharing ratios, or as determined by the affirmative vote of a majority of the Voting Members from time to time. The members acknowledge and agree that the company, at the discretion of its Voting Members, may elect to retain net profits in order to fund anticipated expenses of the company, increase growth of company sales or to retire debt of the company. If such an election is made, the members shall be entitled to receive a distribution of net profit only to the extent that such is necessary to fund the member's estimated tax liability arising solely from the taxable distribution of company profits. 9.02 Effect of Nonrecourse Liabilities. In the event the company engages in nonrecourse financing, each member's minimum gain, increases and decreases in each member's minimum gain and minimum gain chargebacks shall be computed in accordance with section 704 of the Code and the regulations issued thereunder. ARTICLE 10: TAXES 10.01 Elections. The members may make tax elections for the company allowed under the Code or the tax laws of any state or other jurisdiction having taxing jurisdiction over the company. 10.02 Taxes of Taxing Jurisdictions. To the extent that the laws of any taxing jurisdiction require, each member will submit an agreement indicating that the member will make timely income tax payments to the taxing jurisdiction and that the member accepts personal jurisdiction of the taxing jurisdiction with regard to the collection of income taxes attributable to the member's income, and interest and penalties assessed on such income. If the member fails to provide such agreement, the company may withhold and pay over to such taxing jurisdiction the amount of tax, penalty and interest determined under the laws of the taxing jurisdiction with respect to such income. Any such payments with respect to the income of a member should be treated as a distribution for purposes OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 13 mbp <4244.001> Operating Agreement 03152008 (3) The member is removed as a member by an affirmative vote of the majority of the Voting Members who have not assigned their interests when the member assigns all of his interest in the company. (4) Except where the member obtains the written consent of all members at the time, the member (a) makes an assignment for the benefit of creditors; (b) files a voluntary petition in bankruptcy; (c) is adjudicated a bankrupt or insolvent; (d) files a petition or answer seeking for the member any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any statute, law or regulation; (e) files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against a member in any proceeding of this nature; or (f) seeks, consents to, acquiesces to the appointment of a trustee, receiver or liquidator of the member or of all or a substantial part of the member's properties. (5) Except where the member obtains the written consent of all members at the time, if within 120 days after the commencement of any proceeding against the member seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any statute, law or regulation, the proceeding has not been dismissed, or within 120 days after the appointment without his consent or acquiescence of a trustee, receiver or liquidator of a member or of all or any substantial part in his properties, the appointment is not vacated or stayed or within 120 days after the expiration of any stay, appointment is not vacated. (6) Except where the member obtains the written consent of all members at the time, in the case of a member who is an individual: (a) The member's death; or (b) The entry of an order by a court of competent jurisdiction adjudicating a member incompetent to manage his person or estate. (7) Except where the member obtains the written consent of all members at the time, in the case of a member who is a trust or is acting as a member by virtue of being a trustee of a trust, the termination of the trust, but not merely the substitution of a new trustee. (8) Except where the member obtains the written consent of all members at the time, in the case of a member that is a separate limited liability company, the dissolution and commencement of winding up of the separate limited liability company. (9) Except where the member obtains the written consent of all members at the time, in the case of a member that is a corporation, the filing of articles of dissolution or forfeiture of its corporate powers or right to do business. (10) Except where the member obtains the written consent of all members at the time, in the case of an estate, the distribution by the fiduciary of the estate's entire interest in the company. OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 15 mbp <4244.001> Operating Agreement 03152008 we • 12.02 Rights of Dissociating Member. In the event anymember dissociates prior to the expiration of the term: (1) If the dissociation causes a dissolution and winding up of the company under article 14, the member shall be entitled to participate in the winding up of the company to the same extent as any other member, except that any distributions to which the member would have been entitled shall be reduced by the damages sustained by the company as a result of the dissolution caused by the dissociation and winding up. (2) If the dissociation does not cause a dissolution and winding up of the company under article 14 and the event of dissolution is an event specified either in article 12.01(3) or 12.01(6), the member shall be entitled to an amount equal to the value of the member's interest in the company, to be paid within six months of the date of dissociation. As to all other events of dissolution specified in article 12.01 which do not cause a dissolution, the dissociated member shall be entitled to receive an amount equal to the member's membership interest in the company, to be paid when the company is dissolved and wound up in accordance with article 14. The value of the member's membership interest shall include the amount of any distributions to which the member is entitled under the operating agreement and the fair value of the member's membership interest as of the date of dissociation based on the member's right to share in distributions from the company reduced by any damages sustained by the company as a result of the member's dissociation. ARTICLE 13: ADDITION OF ASSIGNEES AND ADDITIONAL MEMBERS 13.01 Rights of Assignees. The assignee of a membership interest has no right to participate in the management of the business and affairs of the company or to become a member. The assignee is only entitled to receive the distributions and return of capital, to be allocated the net profits and net losses attributable to the membership interest. 13.02 Admission of Substitute Members. An assignee of a membership interest shall be admitted as a substitute member and admitted to all the rights of the member who initially assigned the membership interest only with the approval of all the Voting Members. If so admitted, the substitute member has all the rights and powers and is subject to all the restrictions and liabilities of the member originally assigning the membership interest. The admission of a substitute member, without more, shall not release the member originally assigning the membership interest from any liability to the company that may have existed prior to the approval. 13.03 Admission of Additional Members. The members may permit the admission of additional members and determine the capital contributions of such members only upon the approval of the majority of the Voting Members. ARTICLE 14: DISSOLUTION AND WINDING UP 14.01 Dissolution. The company shall be dissolved and its affairs wound up upon the first to occur of the following events (which, unless the members agree to continue the business, shall constitute dissolution events): OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 16 mbp <4244.001> Operating Agreement 03152008 M • (1) The expiration of the term, unless the business is continued with the consent of all the Voting Members; (2) The unanimous consent of all of the Voting Members; (3) The entry of a decree of judicial dissolution. 14.02 Effect of Dissolution. Upon dissolution, the company shall cease carrying on as distinguished upon the winding up of the company business, but the company is not terminated, but continues until the winding up of the affairs of the company is completed and the certificate of dissolution has been issued by the Idaho Secretary of State. 14.03 Distribution of Assets on Dissolution. Upon the winding up of the company, the company property shall be distributed: (1) To creditors, including members who are creditors, to the extent permitted by law, and satisfaction of company liabilities; (2) To members in accordance with positive account balances taking into account all capital account adjustments for the company's taxable year in which the liquidation occurs. Liquidation proceeds shall be paid within 60 days of the end of the company's taxable year or, if later, within 90 days after the date of liquidation. Such distribution shall be in cash or property (which need not be distributed proportionately) or partly in both. 14.04 Winding Up and Certificate of Dissolution. The winding up of the company shall be completed when all debts, liabilities and obligations of the company have been paid or discharged or reasonably adequate provision therefor has been made, and all of the remaining property and assets of the limited liability company have been distributed to the members. Upon the completion of winding up of the company, a certificate of dissolution shall be delivered to the Idaho Secretary of State for filing. The certificate of dissolution shall set forth the information required by the act. ARTICLE 15: AMENDMENT 15.01 Operating Agreement May Be Modified. The operating agreement may be modified as provided in this article 15 as the same may, from time to time, be amended. 15.02 Amendment or Modification of Operating Agreement. The operating agreement may be amended or modified from time to time only by a written instrument adopted and executed by all of the Voting Members. ARTICLE 16: MISCELLANEOUS PROVISIONS 16.01 Entire Agreement. The operating agreement represents the entire agreement among the members and between the members and the company. OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 17 mbp <4244.001> Operating Agreement 03152008 16.02 No Partnership Intended for Nontax Purposes. The members have formed the company under the Act and expressly do not intend hereby to form a partnership under either the Idaho Uniform Partnership Act nor the Idaho Uniform Limited Partnership Act. The members do not intend to be partners one to another, or partners as to any other party. To the extent any member, by word or action, represents to another person that any other member is a partner or that the company is a partnership, the member making such wrongful representation shall be liable to any other member who incurs personal liability by reason of such wrongful representation. 16.03 Rights of Creditors and Third Parties. The operating agreement is entered into among the company and the members for the exclusive benefit of the company, its members and to their successors and assignees. The operating agreement is expressly not intended for the benefit of any creditor of the company or any other person. Except and only to the extent provided by applicable statute no such creditor or third party shall have any rights under the operating agreement or any agreement between the company and any member with respect to any capital contribution or otherwise. IN WITNESS WHEREOF, the parties have executed this o ratin greement on the dates set forth beside each of their names. 31-a0 -oe V/ I Date Jo ph Grubiak STATE OF IDAHO ss. arbara a veal County of Ada ,' jn } ✓% On thil; Xll day of /--' 2008, before me personally appeared Joseph GiUblak known or identified to me to be the perso whose name is subscribed to the within instrument, and acknowledged to me that he executed the same. IN WITNESS WHEREOFa`I b'a p.h°t unto set my han and affixed my official seal,—tht—day and year first above written. • s ®• N •a X'Uii Sc .' Residi ` a • r 1, •• to O .` My Ca OPERATING AGREEMENY'(JPfPlrt DEVELOPMENTS, LLC mbp <4244.001> Operating Agreement 03152008 PUYLIC FOR IDAHO g at — r emission Expires: Notary Public. Stats of Idaho Residing in Meridian My Commission Expires April 20. 2010 -18 STATE OF IDAHO ) : ss. County of Ada CIJ On thi day of ' , 2008, before me personally appeared Holly -Hattan Grubiak, known or identified to me to be the person whose name is subscribed to the within instrument, and acknowledged to me thatX executed the same. ,,e�ss►n►sh►►►►►i IN WITNESS WHER?F� I ha�ve�¢I�u% set my ban and affixed my official seal, the day and year first above written. �� ••.• • • �n , cl' : f N A Y PUB IC FOR IDAHO Resid' gat TnWYAA. FIEEVES s,....._....._. —— e-011.31 o � !, !f�'•,• ,w O �: `My Commission ExplresNolary Public, 5 �-- •��•o�JT�'•+•re• My Commission Expires April 20, 7010 STATE OF IDAHO ) ��..,��� ��►�ss'�+,, ss. County of Ada ) On th P day of �.� --- 2008, before me personally appeared Brent Belveal, known or identified to meto be the person whose name is subscribed to the within instrument, and acknowledged to me that hqait>'cu?1;4Y4%tr4ame. ss. County of Ada ) / Q Ont is day of /&C�� _, 2008, before me personally appeared Barbara J. Belveal, known or identified to me to be the person whose name is subscribed to the within instrument, and acknowledged to me that t„4�ecuted the same. IN WITNESS WHEREOfj,4# a hereunto set my above written.X A. affixed my official sea4Ahe-d&y and year first CIL �( P�dj Y PUB IC FOR IDAHO at TONYAA. REEVES u �c. y Commission ExpiresJil olary.. My Commission Expires April 20.2010 OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 19 mbp <4244.001> Operating Agreement 03152008 IN WITNES4'+1IEOF, i'hav4unto set my hand d affixed my official seal, thgda}.and year first above written. lA 0 T,4 SUE Ltd e NO A Y PUB C FOR IDAHO p° l •* : ° Residing at TONYAA. REEVES yT�: •••"'••• � dEP.lary Public. Slate of Idano �.`�° My Commission ExpirJ in ,,+� +,F , list"' My Commission Expirid,—ng es April 20, 2010 STATE OF IDAHO 1 ss. County of Ada ) / Q Ont is day of /&C�� _, 2008, before me personally appeared Barbara J. Belveal, known or identified to me to be the person whose name is subscribed to the within instrument, and acknowledged to me that t„4�ecuted the same. IN WITNESS WHEREOfj,4# a hereunto set my above written.X A. affixed my official sea4Ahe-d&y and year first CIL �( P�dj Y PUB IC FOR IDAHO at TONYAA. REEVES u �c. y Commission ExpiresJil olary.. My Commission Expires April 20.2010 OPERATING AGREEMENT OF TTS DEVELOPMENTS, LLC - 19 mbp <4244.001> Operating Agreement 03152008 From. Mindy Wallace <Mwallace@achdidaho.org> / Subject: RE: Concerning 385 Locust Grove, Meridian, Idaho 83642 Date: August 24, 2012 12:02:40 PM MDT T: Joe Grubiak <joe@43re.com> Joe, A traffic impact study is not required for this application. ACHD does consider to be a change of use. After you receive your approvals from the City of Meridian, you should submit plans (architectural drawings) to ACHD for review and impact fee assessment. Please let me know if you have any questions. Mindy Wallace Planning Review Supervisor Ada County Highway District (208)387-6178 "We drive quality transportation for all Ada County -- Anytime... Anywhere!" -----Original Message ----- From: Joe Grubiak [mailto:joe@43re.com] Sent: Friday, August 24, 2012 11:46 AM To: Mindy Wallace Subject: Concerning 385 Locust Grove, Meridian, Idaho 83642 Hi Mindy, Per our conversation today concerning my application for a "Certificate of Zoning Compliance" with the city of Meridian for my property located at 385 Locust Grove ...... I need to receive from you a "Written Confirmation that a traffic impact study or change of use is not required and/or has been submitted for review by ACHD". Address: TTS Development LLC, 385 S. Locust Grove, Meridian, Idaho 83642 Prior Use: Office Space New Use: Day Care Square Footage: 1437 Sq. Ft. Please confirm receipt of this email? Sincerely, Joe Grubiak 208-514-9258 (:�WEF,IDIAM�-:- Community Development Department Address Verification Date: 08/24/2012 0 Meridian City Hall, Suite 102 33 E. Broadway Avenue Meridian, Idaho 83642 208.887.2211 The address information below has been researched and verified as the 'correct address' by the City of Meridian Community Development Department. Project Name: THE TREE HOUSE Address: 385 S Locust Grove Rd Zip Code: 83642 Subdivision: 3N 1E 18 Lot/Block: Parcel # S1118110161 Note: Daycare center 1) The address has been assigned based on available information. This address should be considered temporary. Final address to be assigned upon completion of development. 2) This address will be required to connect to municipal services per Meridian City Code 9-1-4. Municipal water is available for connection at this location. Municipal sanitary sewer is available for connection at this location. This property does not currently have municipal services available. 3) This is an existing structure that is currently connected to municipal services. ALL PLANS BEING SUBMITTED TO THE CITY OF MERIDIAN WILL BE REQUIRED TO CLEARLY REFLECT THE CORRECT ADDRESS AND SUITE NUMBER (IF APPLICABLE) AS REFLECTED ABOVE. Address Verification Rev: 04/23/12 =9 C— -M- _.... ED 0 Phase 3_ = r ,•-'; s r a.� � 3es.€tt fifty;; Certificate of Zoning Compliance Landscape Plan 9 s I $ ��•-y M TTS Developments X385 S. Locust Grove Rd. Meridian, Idaho Ada County ��EI I it if µunop epy •pa anoa� lsnool 'S �E ijUel !{i r} � •�, �����;�. 98E ` 9'°� _ O Lo J a ���� s�uawdo�anaa Su aouei�dwop 6wuoZ;o aleoi�iva� W+i IWit \ a H s C \ Sig, ya f Y XXS \/\\ g NOME 1 11.1 N M � s Mill. F, 02. 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I 2. + - , I I —`d L L: •rk til .T ._ TI :T�!-T'L Lrul,r I Ur L Wt.,t I , 1 . f ilf I.. L l.,d Mar Dr n 619 - •• J — `��'' Y—erf ��N� -.-fes �Icr•.lalt• d.: 1 1�- inlv.rsl_alc• Ns..,..,..�-. J •. I v I RU i;�_ 7 ' • � � �_',� ''' ' .,'LLQ:' r I_ Ll L J1 lis—eYI-1S.1•�' e L 1 Iii 3TTrX'i,+�;^�j , r„_, l'_ - _ J . W rIf ..,drrwu �� '�,?lif s��,�.a`1• 2.,. 11----1 �L Ora�lu Stt. — I �lyy,�' t'•+e- ".1 . i •� I ;i' . _-_""_-_♦ f •_ Matt Caba Customer Service 5660 E Franklin Rd. Suite 101 Nampa, Idaho 83687 phone: 208-475-1135 fax:866-376-3736 www.titleonecorp.com Sentry Dynamics, Inc. and its customers make no representations, warranties or conditions, express or implied, as to the accuracy or completeness of information contained in this report. geoAdvantage wwvi dlgitshare osg 208.777.1252 149 )1 . .;ti ' G9 E Watertower St 49 83 X a 0 rL� V U 0 J U, Matt Caba Sentry Dynamics, Inc. and its Customer Service customers make no representations, 5660 E Franklin Rd. Suite 101 warranties or conditions, express or geoAdvantage Nampa, Idaho 83687 implied, as to the accuracy or wwa digitshare org 208.777.1252 phone:208-475 1135 completeness of information contained in this report. fax:866-376-3736 www.titleonecorp.com I 0 Matt Caba Customer Service 5660 E Franklin Rd. Suite 101 Nampa, Idaho 83687 phone:208-475-1135 fax:866-376-3736 www.titleonecorp.com Sentry Dynamics, Inc. and its customers make no representations, warranties or conditions, express or implied, as to the accuracy or completeness of information contained in this report. geoAdvantage wvw,y digilshare org 208.777.1252 X.