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Home My WebLink About20122951.tiff FINDINGS OF FACT AND ORDER OF ABATEMENT RE: ABATEMENT OF NUISANCE CONDITION ON PROPERTY FOR WHICH M. SHAPIRO DEVELOPMENT COMPANY IS THE APPOINTED RECEIVER- C.R.S. 25-1-518 WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, M. Shapiro Development Company ("the Receiver") has been appointed Receiver and thereby the responsible entity for the property located at 12623 County Road 6 ("the Property"), pursuant to an Order of the Weld County District Court in the case of City National Bank v. Rocky Mountain Vista Limited Partnership, Case Number 2012-CV-671, and WHEREAS, on the 19th day of October, 2012, a public hearing was held before the Board of County Commissioners conducted for the purpose of determining whether or not a nuisance condition exists on the Property, and WHEREAS, the Receiver for the Property was represented at said hearing by Stephen M. Whitmore, Esq., Gary C. Moschetti & Associates, LLC, 4704 Harlan Street, Suite 340, Denver, Colorado 80212, and WHEREAS, upon hearing the testimony and reviewing all other evidence presented at the hearing, the Board of County Commissioners makes the following FINDINGS OF FACT: 1. Testimony, pictures, and relevant maps and other documents were presented by Mary Evett, Environmental Health Specialist, Weld County Department of Public Health and Environment ("DPHE"). Such evidence clearly shows that the Individual Sewage Disposal System on the Property is not functioning and causing effluent to surface onto the ground, some of which has dried and is now contained in the soils on the Property. The effluent, both liquid and dried, is a nuisance condition in need of abatement in accordance as per the provisions of Section 25-1-518, C.R.S. 2. Manuel Garcia Franco and Rebecca Valadez, whose address is 12623 CR 6 Lot #213, Brighton, Colorado 80601, provided corroborating testimony of the nuisance condition on the Property. 3. Despite efforts by the WCDPHE staff to resolve said matter, the nuisance has not yet been abated. 4. The Receiver and the WCDPHE submitted to the Board a Consent Agreement, a copy of which is attached hereto as Exhibit "A." is-r)-iz de. di NL Pt 2012-2951 HL0039 NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Board hereby issues the following ORDER OF ABATEMENT to the Receiver: A. The Board generally accepts the terms of the Consent Agreement, but with the following modifications: 1. Inspection of the leach field on the Property shall be performed by a third party who is approved by the WCDPHE, paid for by the Receiver, but who shall not be the Property on-site manager. Said inspections shall occur twice per day, with a report of findings from said inspections being given to both the Receiver and the WCDPHE. Such inspections shall begin on the date of this hearing (October 19, 2012). 2. The third-party inspector or the Receiver shall contract with a licensed Weld County septic pumper to pump the effluent from the sewage system beginning on the date of this hearing (October 19, 2012) and immediately upon notification that new effluent is coming up onto the surface of the Property. 3. The Receiver shall, within seven (7) days of the date of hearing (October 19, 2012), develop a routine pumping schedule with the septic pumper mentioned above, which must be approved by the WCDPHE, designed to eliminate the effluent from surfacing. 4. The Receiver shall, within seven (7) days of the date of hearing (October 19, 2012), install fencing around the leach field and all of the areas where sewage has been located on the surface. Such fencing shall be sufficient in size and strength to keep children from gaining access to such areas. The Receiver shall forthwith maintain such fencing in good repair. The Receiver shall place bilingual (English/Spanish) signage on the fencing instructing residents that they should refrain from playing or walking in the area that is fenced. 5. The Receiver shall, within seven (7) days of the date of hearing (October 19, 2012), provide to the WCDPHE a weekly report from the Receiver and the third- party inspector, which shall detail the results of the inspections, describe the pumping activities, and confirm that the fencing is in place and that the contaminating soils within the fenced in areas are being removed. 6. The Receiver shall, within seven (7) days of the date of hearing (October 19, 2012), develop a schedule for removal of contaminated soils within the fenced in areas around the leach field and all of the areas where sewage has been located on the surface. 7. The Receiver shall, within seven (7) days of the date of hearing (October 19, 2012), inspect and remove the electrical wiring which is extending out of all of the sewage storage vaults. B. That this matter shall be continued to and until November 5, 2012, at 9:00 a.m., for a review of the compliance with this FINDINGS OF FACT AND ORDER OF ABATEMENT. 2012-2951 HL0039 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 19th day of October, A.D., 2012. BOARD OF COUNTY COMMISSIONERS \Iltuste:,k I) WELD COUNTY, COLORADO ATTEST: �� 1 . �. /j ; , _______ 6). • Sean P. C y, Chair Weld County Clerk to the :ot's *i ism. "ganef • .� i- . Garcia, Pro-T m BY: i tie,ry� �• Deputy Clerk to the Boa: ll� Rj� �,�� 1i+ o ra Kirkmeyer APP D A RM: ! I C A David E. Long Co tt ney 44-- Douglas ademac Date of signature: /(/.25 2012-2951 HL0039 Consent Armament Rocky Mountain Vista Mobile Home Park Is located at 12623 Wed County Road 6,Brighton,Weld County,Colorado(the'Propertf) M.Shapiro Development Company LLC,a Michigan limited liability Company was appointed'Receiver" of the Property In the August 24,2012 Order Appointing Receiver rRealversNp Order"),In Case No 2012CV671, Weld County District Court(the'Recelverehlp Action') On October 15,2012 the Weld County Department of Public Health and Environment(•Deparlmenr) • • inspected the that pre-existed the rece P and notified the disposal system on the eceiverrwho had the System erty,determined that it is not pumped own October 1E 2012 condition The Department asserts that effluent from the System(the'Condition')constitutes a nuisance pursuant to C R S §25-1.616,end It hes demanded that the Condition cease • • The Receiver and Department,therefore,agree that so long as Receiver Is receiver. 1. Receiver will have the leach field on the Property inspected twlce per day by Its on-site manager; • 2. Receiver will be notified by its on-site manager immediately upon evidence of new effluent and will contract to have the System pumped at the earliest possible moment; 3 Receiver will establish a routine pumping schedule,based upon the managers observations, that attempts to eliminate effluent from surfacing The services of a Wed County licensed septic pumper will be retained The Receiver w21 provide the Cepubnent the name of the septic pumper 4- Receiver will have temporary fencing installed to prevent access to the surface ground surrounding the leach field;end 5. Receiver will provide Department a report,on a weekly basis,that summarizes data,erns and observations made for each inspection,and pumping schedule Funds available for the operation and care of the Property consist of revenues generated by the Property, and as no third petty hes agreed to fund the receivership the agreements herein are subject to available resources and there Is no assurance that Properly revenues will continue at a reie sufficient to maintain operations at current levels;and Reaper is acting solely inks capacity as Receiver,not individually,and its agreement herein and its obligations hereunder end with respect to the Property and the Condition ere expressly subject to and limited by the Receivership Order,and by entering Into lit Consent Agreement neither party Is waiving any rights or defenses or making any admissions The Weld County Department of Health and Environment agrees that it w6t request a continuance et the nuisance abatement hearing on October 19,2012,and request that the Board of Health stay any order for abatement so that Receiver is able to act on this Consent Agreement. DEPARTMENT OF PU LIC HEALTH AND ENVIRONMENT CD By Trevor Meek cSJ 'rf a Date Its Director =7 CitIS RECEIVER: � M.SHAPIRO DEVELOPMENT COMPANY , a Michigan • liability company ay:Mark S Kassab Date Its: Authorized Agent 2012-2951 DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT 'Nxt86t 1555 North 1791 Avenue9 Greeley, CO 80631 1. +i I'. I— ! PubticHalth Web:www.weldhealth.org I ! !_ ir , Health Administration Public Health A Clinical Environmental Health Communication, Emergency Preparedness r (7 u N T Y -_. Vital RecordsServicesTervices Education&Planning L Response Tale.970 3046410 Tale.970 304 6420 ele.910.704.6115 Tale'.970.3046470 Tele.970.304 6420 Far 9703046412 Fax: 970.3046415 Fax: 970 304 6411 Fax 970 304 6452 Far. 970.3046469 1 Our meson Together with the rommunrties we sane.we ere working to make Web County the healthiest place to We,,teern work and play. I October 16,2012 4 d M. Shapiro Real Estate Group 1 c/o Mr. Gary Moschetti,Colorado Registered Agent 4 4704 Harlan Street,Suite 340 Denver,Colorado 80212 i 1 Rocky Mountain Vista Limited Partnership 4. do Pacific Registered Agents, Inc. 44 Cook Streeet, Suite 100 y Denver.Colorado 80206 , I a Subject: Nuisance Condition& Notice of Hearing for the Rocky Mountain Vista Mobile Home Park,aka Sierra Vista Mobile Home Park 1 3 1 Dear Sirs, It has come to our attention that conditions exist that constitute a nuisance on the property located at 12623 Weld County Road 6, in Weld County.An inspection was completed on October 15,2012 by Department staff. Specifically,staff observed that the sewage disposal system serving the mobile homes on the property is not functioning adequately and sewage is being discharged 1 9 onto the surface of the ground. This poses health and safety problems, including the transmission of disease. 1 This property is in foreclosure by its owner, City National Bank,and M. Shapiro Development Co. is the appointed receiver. 1 As such,you are responsible for abating this serious health violation. It is our understanding that you may have terminated the contractual relationship with the company that has provided septic pumping services, for financial reasons. You have been informed that septic contamination of the surface would be the likely result, unless use of the septic system was terminated,and you were encouraged to have the septic system pumped. I The above described condition constitutes a nuisance. Title 25, Article 1,Part 518 of the Colorado Revised Statutes(25-1-518 C.R.S.)provides the following: I The county or district board of health shall examine all nuisances,sources of filth,and causes of sickness, which, in its opinion, may be injurious to the health of the inhabitants,within its...,county...,and shall destroy, remove,or prevent the sameas the case may require. The Weld County Board of County Commissioners will consider this nuisance at a public meeting on Friday,October 19, 1 2012 at 9:00 AM,in the Hearing Room,Weld County Administration Building, 1150 O Street,Greeley,Colorado. Your presence at the meeting is requested. The Department will request that the Board,sitting as the Board of Health,order you to I cease and desist in the continued nuisance. Specifically,ceasing this nuisance would require you to either pump the septic system,or to cease using the system altogether. Failing to comply with a cease and desist order will subject you to civil and I criminal penalties. Further,the Department will request that the Board issue an order to abate,within 24 hours,the above ° identified nuisance condition on your property. Should you not abate this nuisance condition,the Board may have the nuisance abated and the costs of this abatement assessed against you or the property. The Board's action could affect the ability of residents to continue occupation of the property. If you have any questions, please contact this office at(970)304-6415, extension 2219. 't I 4 i 4 Sincerely, - Mary Even Environmental Health Specialist Environmental Health Services cc: Mark Wallace,Weld County Health Officer(via e-mail) Trevor Jiricek,Director, Weld County Department of Environmental Health Services(via email) Bob Choate,Assistant Weld County Attorney(via e-mail) Doug Camrud,WQCD,Colorado Department of Public Health& Environment Mr. Mark S. Kassab,Receiver, M. Shapiro Real Estate Group, 31550 Northwestern Highway, Suite 220 Farmington Hills, Michigan 48334 Rocky Mountain Vista Limited Partnership,44104 Royal Troon Drive, Indio,California 92201 9000 City National Bank, c/o Riley,Carlock, &Applewhite, 1999 Broadway, Suite 1800, Denver,Colorado 80202 03 A Is 41 -� X Saiggin i i M LoOI �O/ PI'SC 0 4-1 � U U 1 cn O N O rl . � � CO V O ... - • . 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E I •I , t. i . y. r - • . k 4.4, .-me CO 3• 41016 — 1 � � w CV bill _I 00 a nee i • i , _ .ht • 1i .;If..V 4,:c.4::,.4' lel..,' ‘4 • 1AA�ffJ� 1'� y it 1• i , I 1�, 1 • l ' aid • • .. 1.` 114 , • • $. •, ice • s: ! 4: 4 • _ , ! • ,114 . ,- -it ,I (f.4. ., I, },•{. I' tit{ yj+ IIIM la : . I c a. 11,'sr, . 6/ • s_. . • .• • • • • • - i I.. t 1 . I ,a } • / itI Y L �.' .• .. l r .a• ,, ' - . + . _ J- 4- it0 S t C 41 • r✓ I r.,I 't' .'•iAtt. }, idly\\�.�. •' .,- • • . _-- iii .� j' ` (.r 1 � . f h ' •� 7 . t _ • • I IVIVIOW . • • . •777 • ` 4 Sips. I• I i ' •;_• 1 ! 1 : I ,•� = " . , t . :t 4 . II lie: tl Or . • ` i •�• •tt I ti f •�. c a) L tl') L,_ _c aA n3 CD v w = t 3 N ro >' • o 3ICU C9 1- O 47r- a) 2 o 4-; Q � ., cn O _C v O -� IA cu N I- (1) t).0m Ocu O -0 to 3 O ri�_ > (1) Ql • .C �O aA v = C " a3 to 01) et 4-1 v c a1 1on ID u c M 0 ti in c •- CO to +CD till) W 1O Vf to 0) O ° CZ > _cm >, Ov c a) C C v •� a� r +01 .+ CO - 4... •isme _ v �n 4. s... (1)> C 0 o az p -O _c ca a) 0 co a 4- p co +-' O0 tn to v v cn a) _ a- -1O -� -O a--' n ca w > Z +a CU 0 CU b.A c v ,} to o +� L o ra L +ta WO CO cn N '- E O co aO a) c c OO N = Q)CU CUt 0 4- 0 O O Q.) on44- _C v) o a� O `� s o a o g a - - oo o ,o.12 a) CU U +-' CD 0 CC C -C U E _O w a, 1— a) O O O cn < a) Qi uU 15 EXHIBIT B t�l of }f L Io iG-iz § 25-1-518. Nuisances (1) Removal of nuisances. The county or district board of health shall examine all nuisances, sources of filth, and causes of sickness, which, in its opinion, may be injurious to the health of the inhabitants, within its town, city, county, city and county, or district, and it shall destroy, remove, or prevent the nuisance, source of filth, or cause of sickness, as the case may require. (2) Unhealthy premises cleaned--structures removed. If any cellar, vault, lot, sewer, drain, place, or premises within any city is damp, unwholesome, offensive, or filthy, or is covered for any portion of the year with stagnant or impure water, or is in a condition as to produce unwholesome or offensive exhalations, the county or district board of health may cause the area to be drained, filled up, cleaned, amended, or purified; or may require the owner or occupant or person in charge of the lot, premises, or place to perform such duty; or may cause the removal to be done by the proper officers of the city. (3) Expense for abating nuisance. If any person or company neglects to remove or abate any nuisance or to perform any requirement made by or in accordance with any ordinance or resolution of the county or district board of health for the protection of the health of the inhabitants and if any expense is incurred by the board in removing or abating the nuisance or in causing such duty or requirement to be performed, such expense may be recovered by the board in an action against such person or company. In all cases where the board incurs any expense for draining, filling, cleaning, or purifying any lot, place, or premises, or for removing or abating any nuisance found upon such lot or premises, the board, in addition to all other remedies, may provide for the recovery of such expense, charge the same or such part thereof as it deems proper to the lot or premises upon or on account of which such expense was incurred or from which such nuisance was removed or abated, and cause the same to be assessed upon such lot or premises and collected as a special assessment. (4) Removal of nuisance on private property--penalty. Whenever any nuisance, source of filth, or cause of sickness is found on private property, the county or district board of health shall order the owner or occupant or the person who has caused or permitted such nuisance, at his or her own expense, to remove the same within twenty-four hours. In default thereof, he or she shall forfeit a sum not to exceed one hundred dollars at the suit of the board of county commissioners of the proper county or the board of the proper city, town, or village for the use of the county or district board of health of the city or town where the nuisance is found. (5) Board to remove--when. If the owner or occupant does not comply with an order of the county or district board of health, the board may cause the nuisance, source of filth, or cause of sickness to be removed, and all expense incurred thereby shall be paid by the owner or occupant or by such other person who has caused or permitted the nuisance, source of filth, or cause of sickness. (6) Conviction--nuisance to be abated. Whenever any person is convicted of maintaining a nuisance that may be injurious to the public health, the court, in its discretion, may order the nuisance abated, removed, or destroyed at the expense of the defendant under the direction of the county or district board of health of the town, city, county, or district where the nuisance is found, and the form of the warrant to the sheriff or other officer may be varied accordingly. (7) Stay warrant of conviction. The court, on the application of the defendant, may order a stay of a warrant issued pursuant to subsection (6) of this section for such time as may be necessary, not exceeding six months, to give the defendant an opportunity to remove the nuisance upon giving satisfactory security to do so within the time specified in the order. (8) Expense of abating. The expense of abating and removing the nuisance pursuant to a warrant issued pursuant to subsection (6) of this section shall be collected by the officer in the same manner as damages and costs are collected upon execution; except that the materials of any buildings, fences, or other things that may be removed as a nuisance may be sold by the officer in like manner as goods are sold on execution for the payment of debts. The officer may apply the proceeds of the sale to defray the expenses of the removal and shall pay over the balance thereof, if any, to the defendant upon demand. If the proceeds of the sale are not sufficient to defray the expenses incurred pursuant to this subsection (8), the sheriff shall collect the residue thereof as provided in subsection (3) of this section. (9) Refusal of admittance to premises. (a) Whenever a county or district board of health finds it necessary for the preservation of the lives or health of the inhabitants to enter any building, car, or train of cars in its town, city, county, or district for the purpose of examining and abating, removing, or preventing any nuisance, source of filth, or cause of sickness and is refused entry, any member of the board may make complaint under oath to the county court of his or her county stating the facts of the case as far as he or she has knowledge thereof. (b) The court may thereupon issue a warrant directed to the sheriff commanding him or her to take sufficient aid and, being accompanied by any two or more members of the county or district board of health, during daylight hours, to return to the place where the nuisance, source of filth, or cause of sickness complained of may be and destroy, remove, or prevent the nuisance, source of filth, cause of sickness, or danger to life or limb under the direction of the members of the board of health. (10) Damages occasioned by nuisance--action. Any person injured either in his or her comfort or in the enjoyment of his or her estate by any nuisance may have an action for damages sustained thereby. EXHIBIT NOTICE ofALto-l3-a The sewage disposal system servicing your mobile home may not be functioning adequately and sewage has been observed on the ground. A public hearing has been scheduled by the Weld County Board of Health with the M. Shapiro Real Estate Group (current representative of the property) for Friday, October 19, 2012, at 9:00am, in the hearing room of the Weld County Administration Building, 1150 O St., Greeley, CO. The purpose of this hearing is to discuss how the situation is to be remedied. As a resident of the Rocky Mountain Vista Mobile Home Park (aka Sierra Vista Mobile Home Park), you are welcome to attend. The map below shows the area where sewage has been observed. For the protection of your health, please stay out of this area. The map also shows the location of the sewage tanks within the park. If you notice any sewage being discharged from these or have questions, please contact us at: (970) 304-6415. , t \A`. r. 4 • ---- _ NOT TO SCALE F C pa co in u -nxc.owt...mmxw • Septic Tanks "V?:s • Leachfield (affected area) PLEASE STAY OUT OF THIS AREA! WELD COUNTY ROAD 6 n NOTICIA El sistema septico que da servicio a su casa movil puede ser que no este funcionando adecuadamente y se ha observado desecho o aguas negras en el suelo. Una Audiencia Publica ha sido programada por El Consejo de Salud del Condado Weld con el grupo de Bienes Raices de M.Shapiro ( representate actual de la propiedad) para el dia Viernes, 19 de Octubre del 2012, a las 9:00 de la manana, en la sala de audiencias del Edificio de Administracion del Condado Weld , 1150 O St., Greeley, CO. El proposito de esta audiencia es para discutir como remediar esta situacion. Como residente de Rocky Mountain Vista Mobile Home Park (alias: Sierra Vista Mobile Home Park), usted es libre de asistir. El mapa posterior muestra el area donde se ha observado desecho o aguas negras. Para la Proteccion de su salud, por favor mantengase alejado de esta area. El mapa tambien muestra la ubicaciOn de los tanques septicos en el area. Si usted nota desecho o aguas negras emanando (saliendo) de los tanques o tiene alguna pregunta, por favor Ilamenos al 970-304-6415. I 1 I AV‘A, ,= N t0 Rf - • ' _ ' I { ` \ Tanques Septicos • •• Area afectada POR FAVOR MANTENGASE • • ALEJADO DE ESTA AREA! WELD COUNTY ROAD 6 EXHIBIT I a4' WL ho-p9-n- EFILED Document—District Court 2012CV671 CO Weld County District Court 19th JD DISTRICT COURT, WELD COUNTY,COLORADO Filing Date:Aug 24 2012 01:57PM MDT Filing ID:46093041 Weld County Courthouse 901 9th Avenue Greeley, Colorado 80631 970-351-7300 PLAINTIFF: CITY NATIONAL BANK,a national banking association ♦ COURT USE ONLY • v. DEFENDANT: ROCKY MOUNTAIN VISTA LIMITED PARTNERSHIP, an Arizona limited partnership By the Court: Case Number: 2012CV671 Div:4 ORDER APPOINTING RECEIVER The Court,having considered Plaintiff's Verified Complaint and Application for Immediate Ex Pane Appointment of Receiver, and being fully advised of the premises: THE COURT FINDS: 1. The Court has jurisdiction and venue is proper pursuant to C.R.C.P. 98. 2. Plaintiff is the current holder of that certain Promissory Note (Colorado)dated July 23. 2004,(the "Note"), in the original principal amount of$1,600,000.00,executed by Defendant and originally delivered to the order of Imperial Capital Bank, Plaintiffs predecessor- in-interest. 3. The Note(and the loan evidenced thereby(the "Loan"))is secured by that certain Deed of Trust, Assignment of Rents and Security Agreement(Colorado)dated July 23, 2004, executed by Defendant for the benefit of the holder of the Note(the "Deed of Trust"). 4. As holder of the Note and assignee of the Deed of Trust and the Loan,generally, Plaintiff is entitled to enforce the terms of the Deed of Trust. 1355237v 5. The Deed of Trust encumbers certain real and personal property more particularly described therein and further assigns to the beneficiary all rents and revenues arising from such property(collectively,the"Property"). Such Property is owned by the Defendant. The Note, Deed of Trust,and all other instruments,documents, and agreements further evidencing or securing the Loan may be collectively referred to herein as the "Loan Documents." 6. The Deed of Trust expressly provides that the beneficiary thereof shall have the right to the ex parte appointment of a receiver upon default of the Defendant in any of the terms, covenants,or conditions of the Note or the other Loan Documents. 7. The allegations set forth in the Verified Complaint establish(a)that Defendant is in default under the Note by virtue of its failure to pay installments due thereunder,and (b)that Plaintiff is entitled to the appointment of a receiver pursuant to the terms of the Deed of Trust, the provisions of C.R.S. § 38-38-601 and C.R.C.P. 66,and established principles of equity. 8. M. Shapiro Development Company LLC,a Michigan limited liability company ("Receiver"), is a suitable entity to be appointed as receiver for the Property. IT IS THEREFORE ORDERED THAT: 1. Receiver is hereby appointed as Receiver for the Property,and shall forthwith take physical possession of, manage,operate,preserve and protect the Property. The Receiver shall manage,operate,and protect the Property, subject to the supervision and exclusive control of this Court. 2. The Receiver shall have all the powers and authority usually held by receivers and reasonably necessary to accomplish the purposes herein stated including, but not limited to,the following powers, which may be exercised without further order of the Court: a. To take from Defendant and all persons in active concert and participation with Defendant(and all other persons served with this Order and having possession or control of any Property)immediate possession and control of the Property including, without limitation, all monies,receivables, leases, rental payments, security,damages, utility and other deposits, accounts (including,but not limited to,all operating and reserve accounts containing or funded with the rents, issues and profits of the Property, whether controlled by Defendant or any management company or other agent of Defendant), records, contracts,contract rights, causes of action, furniture, fixtures,equipment, inventory,appliances, supplies,construction materials, plans, specifications,entitlements,permits, licenses, and other personal property associated with the Property; b. To change any or all locks on the Property and eject any persons unlawfully possessing the Property; c. To immediately upon appointment notify all tenants and purchasers of the Property,or any portion thereof, and instruct such persons that all further rental or other payments shall be made to the Receiver directly; d. To manage, operate, lease.maintain,preserve,protect,and otherwise control the Property in the ordinary course of business,or in such manner and to such extent as Receiver shall deem necessary or appropriate, or as Receiver may deem necessary to prevent diminution of the value of the Property and, in this regard, to continue utility service for the Property in the name of the Receiver or in the name currently existing on such account(s),to have all utility deposits transferred to the Receiver or the Receivership,and if no deposit exists, to maintain utility service in the name of the current account holder without need of a deposit; e. The Receiver shall operate the Property at such level reasonably deemed appropriate by Receiver, which level may be limited or may include the suspension of certain operations; f. To close, transfer and change all bank accounts and trade accounts wherever located containing funds generated by the Property and deposit all sums received by the Receiver in such financial institutions as determined by Receiver, in Receiver's name, and to otherwise invest all monies received or collected by Receiver(whether payable to Receiver. to Defendant or any agent or representative of Defendant),and to write checks and make withdrawals on such accounts as required to effect the powers granted herein; g. To deal with, hire and terminate present or future employees at the Property, without liability to Receiver; h. To use the personnel of Receiver,or hire,on a contract basis, such personnel necessary to maintain and preserve the Property, and otherwise deal with,hire and terminate present or future property managers and other professionals in connection with managing the day-to-day affairs of the Property, all pursuant to and in accordance with the terms of this Order; i. To deal with,hire and terminate present or future brokers, sales agents, leasing agents and other professionals in connection with marketing the Property.or any portion thereof, for sale or lease. In furtherance of the foregoing, Receiver is authorized, but is not obligated,to engage an affiliate of Receiver to provide such brokerage and marketing services, provided that such affiliate is a properly licensed broker in the State of Colorado and the terms of such engagement are reasonable; j. To advertise the Property. or any portion thereof, for sale or lease; k. To deal with,hire and terminate contractors, suppliers, and other construction professionals including, but not limited to,architects, general contractors, and engineers, as Receiver deems necessary or convenient to operate, preserve, improve or repair the Property. all on terms acceptable to Receiver; 3 1. To hire and retain(on behalf of Receiver and not the Plaintiff)and otherwise obtain the advice and assistance of such legal counsel, accounting and other professionals as may be necessary to the proper discharge of Receiver's duties,with all reasonable expenses incurred in connection therewith deemed to be expenses of the Receivership,and to pay such professionals from the rents,revenues,and proceeds of the Property without further application to or order of the Court; m. To notify any parties obligated on any account of Defendant to make payment directly to the Receiver of any amounts due or to become due thereunder; n. To initiate, continue, settle and wind up such litigation as may be pending or may be required to protect the Property or to effect the collection of amounts owed in connection with the Property; o. To sell, assign,compromise,settle,surrender, release or exchange any account of Defendant upon such terms for such amount and at such time or times as the Receiver deems advisable,and to prepare, file,and sign Defendant's name on any proof of claim in bankruptcy or other similar document against any account debtor indebted on an account of Defendant; p. To enforce the terms of any leases,contracts and agreements relating to the Property and to enforce collection of any of Defendant's accounts,debts,contract rights or other rights arising from the Property,to institute such legal actions as the Receiver deems necessary to enforce any such lease, contract or agreement and to collect any such account or debt,to recover possession of the Property from persons who may now or in the future be wrongfully in possession of such property and to otherwise preserve the Property by suit or otherwise; q. To contract for and perform ordinary and necessary repairs and maintenance on the Property and to hire,on terms acceptable to Receiver, such contractors. suppliers and other persons acceptable to Receiver to perform such work; r. To contract for and perform such tenant finish or other capital improvements with respect to the Property as Receiver shall deem reasonable to preserve,protect and enhance the value of the Property, and to hire such contractors, suppliers and other persons acceptable to Receiver to perform such work; s. To complete any unfinished construction or development of the Property and to hire and deal with a construction manager,architect, engineer and such contractors and sub-contractors as Receiver may deem necessary to perform such work; t. To exercise any and all rights of Defendant with respect to any condominium or other owners'association to which the Property may be subject including, without limitation,all rights to vote, obtain records, attend meetings and as otherwise may be 4 accorded to an "owner" in such association, and,to the extent held by or vested in Defendant,all declarant rights and development rights which Defendant may have in any such association; u. To pay all real estate taxes, personal property taxes, assessments,special assessments,association dues and assessments, insurance premiums, utility charges and other expenses and costs reasonably incurred or related to the ownership,management or operation of the Property; v. To make,enforce, modify, negotiate, renegotiate and enter into such reservations, lease agreements, franchise agreements, rental agreements,contracts or other agreements of the Property as the Receiver may reasonably deem appropriate in connection with the discharge of the Receiver's duties; provided, however,no agreement shall extend beyond the termination of the receivership unless authorized by the parties; w. Subject to the limitations set forth herein,to make,enforce, modify, negotiate and enter into such agreements pertaining to the sale of the Property, or any portion thereof,as Receiver may deem appropriate,and to thereafter sell and convey such Property through the receivership created hereby; x. To borrow money for the use and benefit of the receivership estate from the Plaintiff or from any third-party; y. To notify any and all insurers under insurance policies affecting the Property of the pendency of these proceedings and that, subject to the prior rights of any party holding a lien encumbering the Property,any proceeds paid under any such insurance policies shall be paid to Receiver until such time as the said insurance carriers are advised to the contrary by this Court or until they receive a certificate issued by the Clerk of this Court evidencing the dismissal of this action; z. To obtain and renew all insurance policies that Receiver deems necessary for the protection of the Property and for the protection of the interest of Receiver and the parties to this action with respect to the Property; aa. To make,to the extent possible,all principal and interest payments required under any obligation secured by the Property, in the order of their priority of record; bb. To apply for, obtain, renew and.as necessary, to prevent the loss of all trademarks,copyrights, patents, licenses,permits and entitlements required for the preservation or operation of the Property or issued in connection therewith; cc. With respect to any operation or activity that is now conducted on the Property or is customarily conducted on similar properties, and that may lawfully be conducted only under governmental license or permit, to continue such operation or activity under the license or permits issued to the entity subject to compliance with the terms thereof; 5 dd. To obtain, review and analyze the past records, including without limitation accounting records,disbursements,banking records,plans,specifications,engineering reports,soil reports,permits, entitlements, and any other books and documents necessary to determine whether there are any potential claims or rights against other persons and entities arising out of the ownership and operation of the Property,or otherwise perform the duties of Receiver; ee. To pay prior obligations incurred by the Defendant, its agents and servants,or any other person or entity charged with the responsibility of maintaining and operating the Property, if such obligations are deemed by Receiver to be necessary or advisable for the continued operation of the Property,and any improvements thereto; ff. To use receipts from the Property and such funds as may be advanced by third parties or by the Plaintiff for the payment of expenses of the Receivership and of the Property; gg. To settle any mechanics' liens against the Property by making recommendations for settlement to this Court; hh. To preserve and protect the improvements located on the Property,and to secure same against loss and damage, and to preserve any and all construction claims and warranties as necessary; and, ii. Generally to do such other lawful acts as Receiver reasonably deems necessary to the effective operation and management of the Property,or for the orderly liquidation of the Property,and to perform such other functions and duties as may from time to time be required and authorized by this Court,by the laws of the State of Colorado or by the laws of the United States of America. 3. Receiver shall, immediately upon appointment,notify all tenants at the Property of the receivership created by this Order. FROM AND AFTER THE DATE OF THIS ORDER. AND UNTIL THE RECEIVERSHIP CREATED HEREBY IS TERMINATED, EACH TENANT OF THE PROPERTY IS HEREBY ORDERED, DIRECTED AND INSTRUCTED TO MAKE ALL RENTAL PAYMENTS, REIMBURSEMENTS, AND OTHER PAYMENTS OF ANY KIND IN RESPECT OF ANY LEASE OF THE PROPERTY TO RECEIVER AT SUCH ADDRESS AS RECEIVER SHALL.FROM TIME TO TIME, DIRECT. EACH TENANT OF THE PROPERTY SHALL PROVIDE TO THE RECEIVER A COPY OF SUCH. TENANT'S LEASE, UPON RECEIVER'S REQUEST.AND SHALL FURNISH TO RECEIVER ALL SUCH DOCUMENTS AND INFORMATION REASONABLY REQUESTED BY THE RECEIVER AND WHICH THE LANDLORD WOULD OTHERWISE BE ENTITLED. ALL TENANTS SHALL PERMIT THE RECEIVER, UPON REQUEST,TO ENTER UPON AND CONDUCT REASONABLE INSPECTIONS OF THE LEASED PROPERTY. 4. Receiver shall, immediately upon appointment, notify all management companies 6 or other agents of Defendant of the receivership created by this Order. ANY SUCH MANAGEMENT COMPANY, LEASING AGENT, SALES AGENT,OR OTHER AGENT OF DEFENDANT ARE HEREBY ORDERED, DIRECTED AND INSTRUCTED TO(A)TURN OVER AND TRANSFER TO RECEIVER ALL OPERATING, RESERVE, SECURITY DEPOSIT,AND OTHER ACCOUNTS USED OR ESTABLISHED IN CONNECTION WITH THE OPERATION AND MANAGEMENT OF THE PROPERTY, (B)TURN OVER AND TRANSFER TO RECEIVER ALL ORIGINAL LEASES AND ALL OTHER PROPERTY AND MONIES OF DEFENDANT IN SUCH AGENT'S POSSESSION, (C)MAKE AVAILABLE TO RECEIVER ALL RECORDS AND INFORMATION RELATED TO THE PROPERTY AND IN SUCH PERSON'S POSSESSION, (D)TO COOPERATE WITH ALL REASONABLE REQUESTS AND INQUIRIES OF RECEIVER REGARDING THE PROPERTY,AND(E) OTHERWISE COMPLY WITH THIS ORDER. 5. Receiver shall have the right, on its own or through a listing agent engaged by Receiver,to list the Property or any portion thereof for lease. Receiver may negotiate the terms of any such lease with a third-party; provided, however, effectiveness of any lease of the Property,or any portion thereof, shall be contingent upon Receiver obtaining Plaintiffs consent thereto,which consent shall not be unreasonably withheld, conditioned or delayed (and, upon effectiveness, such lease shall be a"Permitted Lease"). Any Permitted Lease shall be binding upon Plaintiff and Defendant, their respective successors and assigns,and all subsequent owners of the Property(a"Subsequent Owner") including, without limitation,any purchaser of the Property in foreclosure. Any prospective tenant at the Property shall be entitled to rely upon this Order and the authority granted hereby to the Receiver. 6. Receiver shall have the right and authority, on its own or through a listing agent engaged by Receiver,to list the Property or any portion thereof for sale. Receiver may negotiate and enter into contracts for the sale of any portion of the Property without Court approval; provided, however,any such contract and the closing of any such sale shall be expressly contingent upon approval of Plaintiff and a separate written order of this Court(a "Permitted Contract"). Upon approval of a Permitted Contract by Plaintiff and this Court, Receiver shall (subject to the terms of any applicable order)thereupon have the authority to execute,on behalf of,or as a representative for, Defendant,any and all documents and agreements reasonably necessary to close a Permitted Contract and convey the property subject thereto including, but not limited to,an appropriate deed and other closing documents. All prospective purchasers and other interested third-parties(such as title companies and other closing agents)shall be entitled to rely on the foregoing authorization. 7. To the extent that Receiver desires to take any action that would constitute a default under the terms of the Loan Documents if otherwise taken by Defendant, Receiver shall first obtain approval of the Court,after notice to all parties. 8. Receiver may, from time to time and without Court approval, issue Receiver's Certificates in exchange for funds advanced by Plaintiff or any third party,which Receiver's Certificates shall bear interest at a rate reasonably acceptable to Receiver and the advancing 7 party,and which Receiver's Certificates shall be an automatic first lien and preference claim upon the Property, prior to all other liens and encumbrances(except statutory liens), and which may be recorded in the real property records in the county where the Property is located; provided,however,any Receiver's Certificate issued to a party other than Plaintiff shall require prior Court approval. Arty lien securing a Receiver's Certificate may be released of record by a Certificate of Release of Lien executed by Receiver and recorded in the county where such lien was previously recorded. All funds advanced by Plaintiff in exchange for a Receiver's Certificate shall be added to the outstanding indebtedness evidenced by the Note. 9. Receiver is hereby authorized to apply the rents,revenues, income, issues and profits collected by Receiver in connection with the management and operation of the Property: first, to the Receiver's compensation as ordered below; second, to the other costs and expenses of the Receivership, including any management fees,attorney fees and other out-of pocket expenses incurred by Receiver in connection with the Receivership; third, to the costs of operating, maintaining and repairing the Property; fourth, to payment of expenses of the Property, including but not limited to payment of real and personal property taxes, insurance, water and sanitation bills and operating expenses; fifth, to establishing commercially reasonable reserves; sixth, to repay all sums borrowed by Receiver as evidenced by Receiver's Certificates; seventh,whenever sufficient funds are available for such purpose, Receiver shall make principal and interest payments toward any loans which are secured by a lien on the Property, in the order of their priority,and eighth, to a fund to be held by Receiver in an interest-bearing account,pending further order of this Court. 10. Defendant, its agents or any other third parties in possession of any documents or other information necessary for Receiver to carry out its duties are ordered to deliver immediately over to Receiver or its agents all of the Property now in its possession, and any Property received after the date of the Order,endorsed to Receiver when necessary, and to continue to deliver immediately to Receiver any such property received at any time in the future and to permit Receiver to carry out its duties hereunder without interference. Defendant and its agents shall fully communicate with Receiver and explain the operation, maintenance and management of the Property and will cooperate with Receiver in carrying out Receiver's duties under this Order. 1 1. Defendant shall identify and disclose to Receiver all portions of the Property not within Defendant's immediate control and possession and shall cooperate and assist Receiver in obtaining possession or control, as required by Receiver, of any such Property and all third parties(including, but not limited to,any architect, surveyor, engineer)possessing Property subject to this receivership Order are hereby ordered to transfer,assign and turn over to Receiver any Property owned by Defendant and requested or demanded by Receiver. 12. With respect to any items required to be turned over to Receiver under this Order, Receiver may, in Receiver's sole discretion,accept photocopies of such documents accompanied, in each case, by the certificate of the person delivering the copy that such document is a true, correct, and complete copy of the original. In such event, Receiver shall 8 have the right at any reasonable time,on reasonable notice,to inspect the originals of such documents. 13. Except as may be expressly authorized by this Court after notice and hearing, the Defendant and its agents, employees and contractors are enjoined from: a. Collecting any revenues, or withdrawing funds from any bank or other depository account relating to the Property; b. Entering upon the Property without the prior express written consent of Receiver, which consent shall not be unreasonably withheld; c. Removing,destroying, or otherwise disposing of or concealing any of the Property; d. Terminating, or causing to be terminated, any license, permit, lease. contract or agreement relating to the Property(including, without limitation, any utility account(s)) or the operation of any of the businesses on such property; e. Continuing any efforts to sell, lease, market, hypothecate,transfer or encumber the Property,or any portion thereof, in whole or in part; f. Continuing or permitting,directly or indirectly, any construction work or other alteration of the Property or any change or modification to any entitlement affecting the Property (except to the extent requested by Receiver); g. Altering,erasing,or destroying any books or records relating to the Property;or. h. Otherwise interfering with the operation of the Property or the discharge of Receiver's duties hereunder. 14. Defendant shall: a. Promptly provide to Receiver the names and contact information for all contractors, management companies, utility providers and other agents or service providers currently providing security, maintenance,utilities,construction or improvement work,or other services in connection with the Property; b. Deliver immediately over to Receiver or its agents all Property described above, including, without limitation,all of Defendant's Equipment, General Intangibles, Inventory, Receivables, Investment Property,all payment intangibles, instruments,company books and records,documents,chattel paper,deposit and all other accounts,and letter-of-credit rights(as such terms are defined in the UCC);together with(i)all substitutions and replacements for and products of any of the foregoing; (ii)proceeds of any and all of the foregoing; (iii) in the 9 case of all tangible goods,all accessions;and(iv)all accessories,attachments,parts,equipment and repairs now or hereafter attached or affixed to or used in connection with any tangible goods whether now owned or hereafter acquired, and all other things of value relating to the Property (including without limitation all funds on deposit in all bank accounts of the Defendant and such records and other papers in its possession or under its control as may be pertinent to the status of the Property and Receiver's collection and liquidation thereof) properly endorsed to Receiver when necessary; c. Continue to deliver immediately to Receiver all collections of proceeds of the Property, including accounts receivable,other collections,books and other records relating to the operation,maintenance and management of the corporation or the Property,and to permit Receiver to carry out his duties hereunder without interference; and, d. Disclose to Receiver any assets of the Defendant which Defendant believes are not a part of the Property. 15. The Defendant or anyone else in possession of records related to the Property shall respond in a timely fashion to requests and inquires of Receiver concerning such records, recordkeeping protocols, filing systems, information sources,algorithms and processes used to manipulate data, and similar matters. With respect to any information or records stored in computer-readable form or located on computers of the borrower or the person in possession of the records,such person shall provide Receiver full access to all media on which such records are located and all computers and the necessary application, system,and other software necessary to review, understand, print, and otherwise deal with such computerized records. 16. Receiver, or any party to this action,may at any time, on proper and sufficient notice to all parties who have appeared in this action, apply to this Court for further instructions whenever such instructions shall be deemed to be necessary to enable Receiver to perform the duties of its office properly. 17. Any and all debts, liabilities or obligations incurred by Receiver in the course of this Receivership, including the operation or management of the Property, whether in the name of the Receiver, the Property,or the receivership estate, shall be the debt, liability,and obligation of the receivership estate only and not of Receiver or any employee or agent of Receiver. personally. Receiver shall not be obligated to advance any of its own monies to make improvements to,or to rehabilitate the Property,or incur or pay any other expenses or bills in connection with the Receivership or in connection with its duties as Receiver. Neither Receiver. the Receivership, nor those agents of Receiver acting under its control, shall have any personal liability in connection with any obligations owed to creditors of Defendant. No person or entity may file suit against Receiver, in their capacity as Receiver, unless otherwise authorized in advance by this Court. 18. In the event that a cure of any foreclosure of any real property that is subject to this receivership is tendered, or a foreclosure sale of any real property is held and the real property is redeemed,the redemption or cure amount shall include costs of this receivership, 10 including,without limitation, all of Receiver's fees,expenses of preserving and protecting the real property, and reasonable attorneys' fees,all funds advanced by the Plaintiff to Receiver for the purposes permitted hereby,plus all other expenses incurred by Receiver in the care and maintenance of the real property, including the payment of taxes, insurance, utility costs and such other expenses as are necessary. 19. Except as may be expressly authorized by Receiver or by application to this Court, no person may buy, sell,or otherwise transfer any Property whatsoever. 20. Sheriff's assistance to enforce the terms of this Order in the form of peace-keeping duties is hereby authorized. 21. Nothing herein contained shall be construed as interfering with or invalidating any lawful lien or claim by any person or entity. 22. Nothing herein may be construed as obligating Plaintiff for the costs and expenses of Receiver nor require Plaintiff to advance funds to Receiver to meet any operating or capital needs of the Property. In the event that there are insufficient funds to repay any receivership expenses actually advanced by Receiver, Receiver(but no third party) shall have a lien encumbering the Property having a priority immediately senior to that of the Deed of Trust and to those of any Receiver's Certificates issued pursuant to this Order. Receiver is hereby authorized to execute and record in the Clerk and Recorder's Office for any county in which the Property is located Certificates of Lien putting third parties on notice of such liens. Upon payment or reimbursement,any such lien shall be released of record by a Certificate of Release of Lien executed by Receiver and recorded in the county where such Certificate of Lien was previously recorded. Receiver shall be entitled to all costs and expenses associated with enforcing such lien(s), including its reasonable attorneys' fees,and such amount shall be secured by such lien(s). 23. Nothing herein may be construed as prejudicial to any other right or remedy of Plaintiff under the Loan Documents or as may be available at law or in equity. 24. All real and personal property lessors to the Defendant are hereby enjoined, for a period not to exceed thirty (30)days from entry of this Order,from seizing,or preventing the Receiver from taking possession of, the Property, or any portion thereof Delivery of a copy of this Order on any such lessor shall serve as formal notice of this Order and the lessor's obligations under this paragraph. 25. Receiver shall have no personal liability in connection with their conduct in the course of the receivership,except for claims arising out of his failure to comply with the orders of this Court. All who are acting,or have acted, on behalf of the Receiver at the request of the Receiver, are protected and privileged with the same protections of this Court as the Receiver has. 26. Receiver shall keep detailed books and records related to the administration of the 11 receivership estate and shall account to this Court for all sums received and expenditures made, and shall file periodic reports to this Court from time to time;provided,that such periodic reports shall not be required more than once every three months. 27. Plaintiff shall have the right to apply to the Court for removal or replacement of the Receiver at any time with or without cause,and the Court shall approve such request unless it is shown that such request is made in bad faith. Receiver may request to resign upon not less than thirty(30)days notice effective upon the filing of a motion with the Court with notice to Plaintiff and Defendant. Upon removal or resignation,the Court shall discharge Receiver and release any bond(and its surety)posted by such Receiver and, if requested by Plaintiff and approved by the Court, appoint a substitute receiver. 28. For any action which Receiver requests or is required to obtain Court approval or authorization,Receiver shall be presumed to be acting in the best interest of the receivership estate and Court approval shall be granted as a matter of course unless objection to such action is filed within seven(7)business days after service of written notice by Receiver of Receiver's application or motion to this Court upon anyone entering an appearance in this action or who is known to have an interest in the Property. Service of a copy of a Receiver's Motion under Rule 5,C.R.Civ.P. shall constitute service of written notice hereunder. Service of motions by facsimile and electronic transmission is acceptable. Plaintiff or Receiver may from time to time request that the Court enter additional orders to supplement, clarify or amend this Order. 29. In the event the Plaintiff assigns its interests in the Loan and its entitlement to the Property or its proceeds to a third party,then such third party shall be the successor and assign of the Plaintiff in connection with all obligations imposed upon,and all rights of, the Plaintiff pursuant to the Order. 30. In the event the Plaintiff assigns its interests in the Loan and its entitlement to the Property or its proceeds to a third party, then such third party shall be the successor and assign of the Plaintiff in connection with all obligations imposed upon,and all rights of, the Plaintiff pursuant to this Order and may enter an appearance in this action and file a notice of substitution. 31. The receivership created by this Order shall continue until Receiver is discharged by the Court: provided, however, Receiver may turnover possession of the Property and receivership estate upon (a)sale or lease(or to the extent sold or leased)of the Property by Receiver in accordance herewith;or(b)the issuance of a confirmation deed(and expiration of any applicable redemption periods)with respect to the foreclosure of the real property subject to this Order. Upon conclusion of the receivership, Receiver shall endeavor to wind up the Receivership expeditiously in cooperation with Plaintiff or otherwise at the direction of the Court. If no objections to the final report and motion for discharge have been delivered to the Court. the Receiver,and other parties having entered their appearance in this proceeding, by first class mail to such address as is reflected in the Court records within fifteen (15)days after the final report and motion for discharge are filed with the Court, the final report will be accepted by the Court,the Court will enter an order terminating the Receivership and discharging Receiver 12 and releasing any bond posted by Receiver and the surety on such bond. 32. Plaintiff shall give notice of the appointment of Receiver by providing a copy of this Order to the Defendant as provided in C.R.C.P. 4. Pursuant to C.R.C.P. 66(d)(3), Receiver shall provide written notice of the action to any persons in possession of the Property otherwise affected by this Order. 33. Receiver shall execute and file forthwith an oath of receiver. 34. As compensation for Receiver's services to be rendered in this case, Receiver may charge,and pay itself from the receivership estate, (a)a monthly fee of$3,600.00 per month, (b) a$3,600.00 set-up fee for the transition of books,records, leases and overall management, (c)a seven percent (7%)construction management fee on all construction projects over$10,000.00 in total cost, (d)$75.00 per hour for services requiring the services of Receiver's on-staff environmental specialist, (e)$195.00 per hour necessary or required for principals of Receiver to attend court appearances,(t) in the event of any sale of the Property(subject to Court approval in accordance with this Order), a disposition fee equal to one percent(1%)of the sales price of the Property, and(g)reimbursement (without markup or additional fee) for travel expenses. 35. Receiver shall file a bond in this action in the amount of$25,000.00. DATED: AUG 2 4 2012 BY THE COURT: ,cPa„,v11,P District Court Judge 13 Hello