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HomeMy WebLinkAbout20062671.tiff PLANNED UNIT LISdELOPMENT (PUD) CHANGE OF ZONE APPLICATION FOR PLANNING DEPARTMENT USE DATE RECEIVED: RECEIPT#/AMOUNT# /$ CASE #ASSIGNED: APPLICATION RECEIVED BY PLANNER ASSIGNED: Parcel Number 9- 6 7 - 2- L - O - K/ C) _ (' C (12 digit number-found on Tax I.D.information,obtainable at the Weld County Assessor's Office,or www.co.weld.co.us). (Include all lots being included in the application area, If additional space is required,attach an additional sheet) Legal Description LC 'Z ( �(L+_) i/A , Section , Township-North, Range West Property Address (If Applicable) L�� 1 c1) '"I LU('I�. �= ��n. �'I I , l ;{ ? } C �' tr)C✓L C_� e ,i2 1' 1/1)( Existing Zone District : A Proposed Zone District: I ( I) Total Acreage:ft-7J;LR Proposed#/Lots 6' 1L rl orb 1 / / [1,/r-L (Ol: Average Lot Size:/16 y1)- Minimum Lot Size: I � �J(1W'A Proposed Subdivision Name: Ld' 'y R II) Proposed Area (Acres) Open Space: ' ( '' D PC/ Are you applying for Conceptual or Specific Guide? Conceptual Specific x FEE OWNER(S)OF THE PROPERTY(If additional space is required,attach an additional sheet) Name: L V fr1,1Cv 11 C (9 l,L�P Work Phone#'17(' ✓'f5 4'- 7(/ Home Phone# Email Address Address: 4(' (.; 1!i'lr ll'f" (11( re- City/State/Zip Code i. Y1n'l(11 F ' LL3 O Li APPLICANT OR AUTHORIZED AGENT(See Below:Authorization must accompany applications signed by Authorized Agent) Name: III (1/ l(1Vk l 11/ I('eV/rig l Fri. / On' 1(' •Jo 1V )Kjon Work Phone Wi10-Vc /-lc"7Ut Home Phone# Email Address Ji' h;nComi- ((/Y t71 (IA Address: '//( I. (l-) r P'>(VC - City/State/Zip Code] 0VC III I �I ( = 505r*7 UTILITIES: Water. _ I I IL' L",;(! ft ,11 (t Sewer: o- jrIII , '.i/f111(1 f/(Ll U}51vI(f' Gas: y(� / Electric: i i 7 /"("1 -'O JL( EXHIBIT Phone: L(Li /2-r DISTRICTS: School. ;1 5 I/rI )(1 y.( / (1,,i/IT-t( f Fire i01, 11(( L/ ) Vin 1,0 r li'F/ (17i1Yt( Post: Imo° I (We) hereby depose and state under penalties of perjury that all statements, proposals, and/or plans submitted with or contained within the application are true and correct to the best of my(our)knowledge. Signatures of all fee owners of property must sign this application. If an Authorized Agent signs, a letter of authorization from all fee owners must be included with the application. If a corporation is the fee owner, notarized evidence must be included indicating the signatory has the legal authority to sign for the corporation. I (we), the undersigned, hereby request hearings before the Weld County Planning Commission and the Board of County Commissioners concerning the proposed Change of Zone for the above described unincor orate area o Weld County, Colorado: • )L //.41,1-(YD ignature: Owner or Authorized Agent Date Signature: Owner or Authorized Agent Date V 2006-2671 AGREEMENT OF LIMITED PARTNERSHIP OF LIBERTY PROPERTIES, LLLP A COLORADO REGISTERED LIMITED PARTNERSHIP This Agreement of Limited Partnership ("Agreement") is made and entered into effective the �,. day of kY\ v'c (ti. , 2005, by and among KENNETH A. WILLIAMSON and CONNIE S. WILLIAMSON, as General Partners (collectively called the "General Partner") and all of the parties listed on Schedule A attached hereto which are admitted to the Partnership as Limited Partners (the"Limited Partners"). Both the General Partners and the Limited Partners existing from time to time are referred to herein individually as "Partner" and collectively as "Partners". For and in consideration of the mutual covenants herein expressed, the Partners hereby form and organize a limited partnership (the "Partnership"), under and pursuant to the Colorado Uniform Limited Partnership Act of 1981, as the same may be amended from time to time (the "Act"), for the purposes and upon the terms, provisions and conditions set forth herein. ARTICLE I NAME AND PLACE OF BUSINESS 1.1. Name. The business of the Partnership shall be conducted under the name "LIBERTY PROPERTIES, LLLP" or such other name as the Managing Partner may hereafter designate by amendment of this Agreement in accordance with the provisions of the Act and this Agreement. The Managing Partner shall, if necessary, execute and cause an assumed name or fictitious name certificate to be filed on behalf of the Partnership in such offices and with such authorities as may be required by the laws of the State of Colorado. 1.2. Term. The Partnership shall commence on the date of this Agreement, and shall continue thereafter from year to year until the Partnership has been dissolved and liquidated. 1.3. Registered Agent - Principal Place of Business. The address of the office of the registered agent of the Partnership in the State of Colorado shall be 4075 Camelot Circle, Longmont, CO 80504, and the registered agent for service of process on the Partnership in the State of Colorado at such registered office shall be CONNIE S. WILLIAMSON. The principal place of business of the Partnership shall be 4075 Camelot Circle, Longmont, CO 80504, or such other place as the Managing Partner may hereafter designate. 1.4. Other Jurisdictions. The Managing Partner shall take all actions necessary or appropriate under the applicable state law to qualify the Partnership to transact business as a registered limited partnership in such otherJurisdictions as the Managing Partner shall determine to be in the best interests of the Partnership. 1 .5. Address of General Partners. The address of the General Partners is the address listed next to such General Partner's name in Schedule A. 1.6. Address of Limited Partners. The address of each Limited Partner is the address listed next to such Limited Partner's name in Schedule A. ARTICLE II PURPOSES AND DEFINITIONS 2.1. Purposes of the Partnership. The Partnership is organized for the purpose of acquiring, owning, operating, selling, leasing, managing and holding for investment property which the Managing Partner determines is appropriate from time to time, and conducting any other business allowed by the laws of the State of Colorado. 1 Z 'd 01.09 SES OL6 uoi'onulsuo0 edty efE =LO 90 6? JEW 2.2. Definition of Terms. (a) Code. References to the "Code" are to the Internal Revenue Code of 1986, as amended, and to any successor Code. References to specific sections of the Code shall include any successor provisions to such sections. (b) General Partner. The term "General Partner" shall mean any person, trust, partnership, corporation or other entity which may at any time be a General Partner under this Agreement and regardless of whether one or more persons or entities are then a General Partner or General Partners. (c) General Partnership Units. The term "General Partnership Units" shall mean Units owned by a Partner, in such Partner's capacity as a General Partner. (d) Limited Partnership Units. The term "Limited Partnership Units" shall mean Units owned by a Partner, in such Partner's capacity as a Limited Partner. (e) Majority in Interest. The term "Majority in Interest" of the Partners, General Partners, Limited Partners or other designated group of Partners shall refer to one or more Partners, General Partners, Limited Partners, or other designated group of Partners who collectively hold over fifty percent (50%) of the aggregate Percentage Interests held by all such Partners, General Partners, Limited Partners, or other designated group of Partners. (t) Managing Partner. The term "Managing Partner" shall mean any person, trust partnership, corporation or other entity which may at any time be a General Partner under this Agreement and regardless of whether one or more persons or entities are then a Managing Partner or Managing Partners. (g) Net Cash Flow. The term "Net Cash Flow" shall mean all cash of the Partnership on hand as of the last day of each calendar year after the payment of all then due debts and liabilities of the Partnership and after any prepayments of any debts and liabilities of the Partnership that the Managing Partner, in the sole and absolute discretion of the Managing Partner, elects to cause the Partnership to make, less any reserves reasonably deemed necessary by the Managing Partner for (i) the repayment of any debts or liabilities of the Partnership, (ii) the working capital requirements of the Partnership, (iii) capital improvements to the property of the Partnership, (iv) the purchase or replacement of any assets of the Partnership, and (v) any contingent or unforeseen liabilities of the Partnership. (h) Percentage Interest. The term "Percentage Interest" shall mean each Partner's percentage interest in the Partnership determined by dividing all of that Partner's Units in the Partnership by the total number of Units in the Partnership held by all the Partners. (i) Transferee Partner. The term means any Partner who has acquired any portion of the interest in the Partnership from another Partner. (j) Treasury Regulations. References to "Treasury Regulations" are to the regulations issued from time to time by the Internal Revenue Service interpreting or applying provisions of the Code. (k) Unit. Each Partner's interest in the Partnership shall be stated in terms of units of partnership interest. The term "Unit" shall refer to each item of allocation on the books of the Partnership of an interest in the Partnership to a Partner in exchange for contributions to the Partnership. Each Partner shall be allocated a proportionate number of Units for each dollar of cash and fair market value of property contributed to the Partnership. The number of Units allocated to the individuals who are the initial Partners is set forth in Schedule A attached hereto. 2 E 'd 6L09 SES 0L6 uoT4onu4suo0 eau) ebE :L0 90 62 ueW ARTICLE III PARTNERSHIP PROPERTY 3.1. Property and Distributive Shares. Partnership real property, all improvements which may be placed or located thereon, and all other property acquired by the Partnership shall be owned by the Partnership. Each Partner shall own as personal property an interest in the Partnership equal to such Partner's Percentage Interest. 3.2. Legal Title. Legal title to Partnership property shall be held in the name of LIBERTY PROPERTIES, LLLP. Without limiting the foregoing, the Managing Partner may arrange to have title taken and held in the names of trustees, nominees, or straw parties, for the benefit of the Partnership. If the Managing Partner elects to own property on behalf of the Partnership in a name other than the Partnership's name then, with respect to such property, the Managing Partner shall cause to be placed in the Partnership books and records a written declaration of trust, executed by the trustee, nominee, or straw party, which acknowledges that the Partnership is the true and equitable owner of such property. ARTICLE IV CAPITAL CONTRIBUTIONS 4.1. initial Capital Contributions. The initial capital to the contributed by each of the Partners shall he the sum of money or other property set forth opposite such Partners' name on Schedule A. Such sum or property is due thirty days after the time each Partner signs this Agreement. Each Partner shall be personally liable to the Partnership to contribute to the capital of the Partnership the full amount of their initial capital contribution. 4.2. Sale of Additional Limited Partnership Units. (a) Subject to the provisions of subsection (b) of this Section 4.2, the Partnership may offer and sell additional Limited Partnership Units at a price per Limited Partnership Unit determined by the Managing Partner, in compliance with an exemption from the registration requirements of the Securities Act of 1933, as amended, and applicable state securities laws. (h) Notwithstanding anything to the contrary contained herein, the Managing Partner shall have the sole authority to admit or refuse to admit as a Limited Partner any individual or entity desiring to purchase any additional Limited Partnership Units referred to in subsection (a) above. Each individual or entity that the Managing Partner determines to admit as a Limited Partner shall become a Limited Partner and be reflected as such on the records of the Partnership at such time as such individual or entity, as the case may be, (i) makes the representations set forth in subsection (c) below to the Partnership, (ii) contributes to the Partnership the purchase price determined by Managing Partner under this subsection (b), and (iii) executes and delivers to the Managing Partner a Limited Partner's Signature Page in the form attached as Schedule B. (c) Each Limited Partner represents and warrants to, and agrees with, the Partnership as lbl lows: (i) That the Limited Partnership Units are being acquired solely for investment and not with a view to the distribution thereof; (ii) That such Limited Partner understands that the Units have not been registered under the Securities Act of 1933 or the securities laws of any state ("State Acts"), and accordingly may not be sold, transferred, pledged, hypothecated or otherwise disposed of without either an effective registration statement under the Securities Act of 1933 and any applicable State Acts or an opinion or counsel satisfactory to the Managing Partner and counsel for the Partnership that such registration is not required; provided that if the Managing Partner determines that an effective registration under all applicable federal and state securities laws is not required, the Managing 3 d 8L09 SCS 01.6 uor2onunsuo0 ejtd eb6 :L0 90 62 ueW Partner in its sole and absolute discretion may waive the requirements set forth in this subsection (c)(ii); and (iii) That such Limited Partner shall indemnify and hold the Partnership harmless from and against all of the costs and expenses, including reasonable attorneys' fees incurred by the Partnership as a result of a breach of the provisions of this subsection (c) by such Limited Partner. 4.3. Sale of Additional General Partnership Units. (a) Subject to the provisions of subsection(b) of this Section 4.3, the Partnership may offer and sell additional General Partnership Units at a price per General Partnership Unit as determined by the Managing Partner. (b) Notwithstanding anything to the contrary contained herein, the Managing Partner shall have the sole authority to admit or refuse to admit as a General Partner any individual or entity desiring to purchase any additional General Partnership Units referred to in subsection (a) above. 4.4. Additional Capital Contributions and Capital Calls. The Partners may make additional voluntary capital contributions only with the consent of the Managing Partner. The Managing Partner may from time to time make one or more calls upon the Partners for additional capital contributions to the Partnership, in such amounts and for such partnership purposes as the Managing Partner may determine in the Managing Partner's sole and absolute discretion; provided, however, that each Partner shall only be obligated to contribute a pro rata share of any such capital call, such pro rata share to be determined by the Partners' relative Percentage Interests on the date such additional capital contribution is due. The Managing Partner shall deliver written notice to the Partners of a call for additional capital made pursuant to this Section. and shall specify in such notice the total amount of capital being called, each Partner's pro rata share thereof, the purposes for which such capital is being called and the capital call funding date. Any General Partner who fails to contribute such Partner's pro rata share of any call for additional capital made pursuant to this Section shall be in default, and the Partnership, the Managing Partner and the other Partners shall have any and all remedies available at law or in equity against such defaulting Partner. 4.5. Other Matters Relating to Capital Contributions. A loan by any Partner to the Partnership shall not be considered a capital contribution. No Partner shall have the right to demand or to receive the return of any part of such Partner's initial capital contribution to the Partnership or subsequent capital contributions to the Partnership. The General Partner shall not be liable to a Limited Partner for a return of such Limited Partner's capital contributions. No interest shall be paid to any Limited Partner on the initial capital contributions to the Partnership or on any subsequent capital contributions to the Partnership. ARTICLE V ALLOCATION OF PROFITS AND LOSSES 5.1. Profit and Loss. Profits and losses and all items of credit for accounting and federal income tax purposes of the Partnership shall be allocated to the Partners in proportion to their respective Percentage Interests, unless a different allocation is required to comply with regulatory requirements for substantial economic effect, or unless an item is specially allocated pursuant to the terms of this Agreement or the decision of the Managing Partner. 5.2. Charitable Contributions. Charitable contributions made by the Partnership shall he specially allocated solely to the General Partners in the proportion that they own General Partnership Units, unless one or more Limited Partners consents to the charitable contribution. If one or more Limited Partners consents to the charitable contribution, the charitable contribution shall be specially allocated among the General Partners and the consenting Limited Partners in the proportion that all Units owned by each General Partner(or by each Limited Partner) bears to the 4 S 'd BLOB SES OL6 uotlonu4suo0 ejtd ebE :LO 90 62 JeW total General and Limited Partnership Units of all General Partners and the consenting Limited Partners. 5.3. Partners of Record. All allocations to the Partners pursuant to this Article shall be made to the Partners of record according to the books and records of the Partnership. ARTICLE VI DISTRIBUTIONS 6.1. Distributions of Cash Flow. Net Cash Flow shall be distributed at such times and in such amounts as the Managing Partner, in the sole discretion of the Managing Partner, shall determine, taking into account the reasonable business needs of the Partnership (including plans for expansion of the Partnership's business). The Managing Partner's determination regarding whether or not to make distributions and the amount of distributions to be made shall be final and binding. 6.2. Distributions Upon Liquidation of Partnership. Upon liquidation of the Partnership, the assets of the Partnership shall be distributed in the following order of priority: (a) to the payment of debts and liabilities of the Partnership (including amounts owed to Partners or former Partners); (b) to set up any reserves which the Managing Partner deems reasonably necessary for contingent or unforeseen liabilities or obligations of the Partnership arising out of or in connection with the business of the Partnership; (c) pro rata to those Partners having positive Capital Account balances until such balance are reduced to zero; (d) if any Partner has a negative Capital Account balance that will not be restored, pro rata to the other Partners until their Capital Account balances are reduced to the largest negative Capital Account balance of such Partner; and (e) to the Partners in accordance with their respective Percentage Interests at the time of liquidation. 6.3. Miscellaneous. (a) All allocations and distributions to the Partners pursuant to this Article shall be made to the Partners according to the books and records of the Partnership. (b) If any single asset of the Partnership is distributed in kind to more than one of the Partners, the Partners shall own and hold the same as tenants in common. ARTICLE VII FISCAL MATTERS 7.1. Fiscal Year. The fiscal year of the Partnership shall begin on January 1 and end on December 31. 7.2. Books and Records. The Managing Partner shall keep or cause to be kept full and accurate hooks and records of all transactions of the Partnership in accordance with generally accepted accounting practices, consistently applied, on the cash or the accrual method of accounting, based on the advice of the Partnership's accountants as to which will be more advantageous for the Limited Partner. All of such books and records shall at all times he maintained at the principal office of the Partnership or, in the discretion of the Managing Partner, at such other office or place as shall be specified by written notice to the Partners, and shall be open during reasonable business hours for inspection and examination by the Limited Partner and his authorized representatives, each of whom shall have the right to make copies thereof. Absent extraordinary circumstances, inspection and examination by a Limited Partner shall be permitted no more than once per year. 5 9 'd 8LO9 SES OL6 uotlonuzsuo0 end et.E :LO 90 62 ueW 7.3. Tax Returns. The Managing Partner shall, at the expense of the Partnership, prepare or cause to be prepared, for delivery to the Partners, all federal and any required state and local income tax returns for the Partnership for each fiscal year of the Partnership and, in connection therewith, shall make any available or necessary elections. The Managing Partner shall use its best efforts to cause such returns to he furnished to the Partners by March 15 of each year. In the event of an audit of the Partnership's income tax returns, the Managing Partner shall participate in, and retain at the expense of the Partnership accountants and other professionals to participate in, such audit and shall contest assertions by the auditing agent that may be materially adverse to the Partners or the Partnership. 7.4. Reports and Statements. The Managing Partner may cause to be delivered to each Partner such reports as may be, in the judgment of the Managing Partner, reasonably necessary for the Partners to be advised of the financial status and results of the operations of the Partnership. ARTICLE VIII MANAGEMENT OF THE PARTNERSHIP AND RIGHTS, POWERS, AND OBLIGATIONS OF THE GENERAL PARTNER 8.1. Appointment of Managing Partner. The overall management and control of the affairs of the Partnership shall be vested solely in one or more Managing Partners, who shall be General Partners. The initial Managing Partners shall be KENNETH A. WILLIAMSON and CONNIE S. WILLIAMSON who by their sole acts may bind the Partnership. If either of them for any reason fails or ceases to serve as Managing Partner, the other one of them shall continue to serve alone as Managing Partner. If both of them for any reason fail or cease to serve, the General Partner(s) shall select from among themselves one or more successor Managing Partners who shall be vested with the overall management and control of the Partnership, as long as they continue to he General Partners. References herein to the Managing Partner shall include the Managing Partner or Managing Partners serving from time to time, whether one or more arc so serving. 8.2. Resignation of Managing Partner. The Managing Partner shall have the right to resign as Managing Partner at any time by delivering written notice of such resignation to each of the Partners a minimum of 30 days before the effective date of such resignation. If such 30 day minimum waiting period is waived by the Partners, then such resignation shall be effective on the date specified in the notice of resignation. 8.3. Authority and Third Party Reliance. The Managing Partner shall be solely responsible for the operation and management of the business of the Partnership and, except as otherwise provided in this Agreement, shall possess all rights and powers generally conferred by the Act on general partners or necessary, advisable, or consistent in connection therewith. No individual or legal entity dealing with the Partnership shall be required to inquire of, or obtain any consent or other documentation as to, the authority of the Managing Partner to take any such action or to exercise any such rights or powers. 8.4. Illustrative Rights and Powers. In addition to any other rights and powers provided by the Act or this Agreement, and subject to the limitations set forth below, the Managing Partner shall have all the specific rights and powers required by or appropriate to the operation and management of the business of the Partnership which, by way of illustration, but not by way of limitation, shall include the right and power: (a) to sell, lease, or contribute to charity the property and other assets of the Partnership on behalf of the Partnership on such terms as determined in the sole discretion of the Managing Partner, and to do all things necessary or advisable in connection therewith; (b) to employ, retain, or otherwise secure or enter into contracts with individuals or entities to assist in the purchase, management, lease and sale of the property and assets of the Partnership, 6 L 'd 8L09 SES OLe uoiyonulsuo0 eJtd eSE =L0 90 62 Jew including, but not limited to, attorneys and accountants, all on such terms and conditions as may in the sole discretion of the Managing Partner be deemed advisable; (c) to borrow money on behalf of the Partnership from such entities or financial institutions as may be deemed appropriate and to use the proceeds thereof for any Partnership purpose, and, in that regard, to execute such notes, loan agreements, deeds of trust, security agreements, certificates, affidavits, guarantees and related instruments as may be required in connection therewith; (d) to serve as the tax matters partner for the Partnership pursuant to section 6231(a)(7) of the Code; (e) to deposit any Partnership funds in an account or accounts to be established at such times, in such financial institutions (including any state or federally chartered bank or savings and loan association) and to authorize withdrawals of such funds by such persons, at such times and in such amounts as the Managing Partner may designate; and (1) to take any and all action which is permitted under the Act and which is customary or reasonably related to the acquisition (on margin or otherwise), ownership, voting, management, and disposition of securities. 8.5. Limitations on Rights and Powers. The Managing Partner shall not be empowered on behalf of the Partnership, without the affirmative vote of One Hundred percent (100%) of the Percentage Interests of all the Partners, to do any of the following: (a) admit or remove any individual or legal entity as a Partner of the Partnership; (h) dissolve and wind up the Partnership; (c) confess a judgment against the Partnership; or (d) act in any manner which would violate or result in a violation of this Agreement. 8.6. Obligations of the Managing Partner. The Managing Partner shall manage the Partnership's affairs in a prudent and businesslike manner, to the best of the Managing Partner's ability, shall make all business decisions, including, but not limited to, distributions from the Partnership to the Partners, in good faith and in the exercise of a bona fide business judgment, and shall operate the Partnership's business for the benefit of all Partners. 8.7. Operating Reserve. The Managing Partner may maintain a cash reserve for operating or administrative expenses of the Partnership. R.B. Payment of Costs and Expenses. The Partnership shall be responsible for paying all costs and expenses of forming and continuing the Partnership, owning and managing the property and other assets of the Partnership, and conducting the business of the Partnership, including, without limitation, payment of taxes (other than income taxes of the Partners), accounting and legal expenses, and supplies. In the event any such costs and expenses are or have been paid by the Managing Partner on behalf of the Partnership, the Managing Partner shall be entitled to be reimbursed for such expenditures so long as they were reasonably necessary and reasonable in amount. 8.9. Competition With Partnership. The authority of the Managing Partner to take any action required or permitted under the provisions of this Agreement shall in all respects be exercised in such Managing Partner's sole and absolute discretion. The Managing Partner shall be required to devote only such time to the performance of the duties and obligations hereunder as the Managing Partner, in the sole and absolute discretion of the Managing Partner, determines to he necessary or advisable. The Managing Partner may have other business interests and may engage in other activities, in addition to those relating to the Partnership, including but not limited to, the making of other investments and serving as general partner of partnerships engaged in activities similar or identical to those engaged in by the Partnership. The pursuit of such ventures, even if competitive with the business of the Partnership, shall not be deemed wrongful or improper. 7 8 -d 81,09 SES OL6 uotzon.flsuo e O .iIH eSE :LO 90 62 ueW 8.10. Compensation. The Managing Partner may be paid reasonable compensation for services rendered pursuant to this Agreement. 8.11. Liability and Indemnification. The Managing Partner shall not be liable, responsible, or accountable in damages or otherwise to any other Partner for any act or omission under the provisions of this Agreement, unless such act or omission constitutes intentional misconduct or gross negligence. To the fullest extent permitted by law, the Managing Partner shall be indemnified and held harmless by the Partnership from and against any and all losses, claims, liabilities, damages, costs, judgments, fines, settlements, and other expenses (including reasonable attorneys' fees) suffered or incurred by the Managing Partner or claims instituted against it in connection with the performance of the duties and obligations hereunder, unless based upon an act or omission that constitutes intentional misconduct or gross negligence. 8.12. Majority Vote. If at any time there are more than two General Partners acting as Managing Partners, a majority vote shall control in all decisions. ARTICLE IX RIGHTS POWERS AND OBLIGATIONS OF THE LIMITED PARTNER 9.1 Limitation of Liability. No Limited Partner shall be hound by, or personally liable for, any obligations or liabilities of the Partnership beyond the obligation such Partner to make the initial capital contribution described by this Agreement, and no Limited Partner shall be required to contribute any capital to the Partnership in excess of its initial capital contribution. 9.2 Management. No Limited Partner shall participate in the operation of management of the business of the Partnership, or transact any business for or in the name of the Partnership, and no Limited Partner, as such, shall have any right or power to sign for or bind the Partnership in any manner. The right of a Limited Partner to consent to and vote on certain matters under the provisions of this Agreement shall not be deemed to be participation in the operation and management of the business of the Partnership or the exercise of control of the Partnership's affairs. 9.3 Voting. Each Limited Partner shall have the right to vote such Partner's Limited Partnership Units. 9.4 Consents. Any action requiring the consent or approval of a Limited Partner under the provisions of the Act or this Agreement shall be taken only if the consent or approval of the requisite number of Limited Partners is evidenced by written instruments executed by such Limited Partners or by a person or persons representing such Limited Partners through a power of attorney from them. 9.5 General Partner's Ownership of Limited Partnership Units. In the event that a General Partner shall own any Limited Partnership Units, that General Partner shall in all respects he treated as a Limited Partner with respect to the Limited Partnership Units owned by that General Partner. 9.6 Conversion from Limited to General Partner. With the unanimous consent of all Partners, Limited Partnership Units held a Partner may be converted into General Partnership Units. in the event of such a conversion, the Limited Partner shall cease to be a Limited Partner and shall become solely a General Partner of the Partnership if all of such Partner's Limited Partnership Units are so converted, but shall become a General Partner and remain a Limited Partner if only a portion of such Partner's Limited Partnership Units are so converted. 8 6 d BL09 SES 0L6 uoiyonu3suo0 edtu eSE :L0 90 62 ueW ARTICLE X RESTRICTIONS ON ASSIGNMENTS AND TRANSFERS 10.1. Right to Transfer General Partnership Interests. The interest of a General Partner are represented by General Partnership Units. Partnership Units held by a General Partner shall not be transferred except in accordance with the terms of this Agreement A "transfer" for this purpose includes, but is not limited to, a sale, exchange, hypothecation, assignment, collateral assignment, or grant of a security interest in the General Partnership Unit. (a) Permitted Transfers. A General Partner may transfer such Partner's General Partnership Units to one who is a General Partner at the time of the transfer. The transferee shall be a "Permitted General Partner Transferee". (h) Approved Transfers. A General Partner may not transfer General Partnership Units to one who is not a General Partner at the time of the transfer without the unanimous consent of all other General Partners, if any, and the consent of the Limited Partners holding a majority of the Limited Partnership Units. The transferee shall be an "Approved General Partner Transferee". 10.2. Rights of Transferees. The General Partnership Units transferred to a Permitted General Partner Transferee shall be added to the other General Partnership Units owned by such Permitted General Partner Transferee and carry the same rights as such other General Partnership Units. An Approved General Partner Transferee shall only have the rights of an assignee of a partnership interest as provided by C.R.S. §7-62-702, unless otherwise provided by unanimous vote of the other General Partners, if any, and the vote of the Limited Partners holding a majority of the Limited Partnership Units. 10.3. Right to Transfer Limited Partnership Interests. The interests of a Limited Partner are represented by Limited Partnership Units. Partnership Units held by a Limited Partner shall not be transferred except in accordance with the terms of this Agreement. A "transfer" for this purpose includes, but is not limited to, a sale, exchange, hypothecation. assignment, collateral assignment, or grant of a security interest in the Limited Partnership Unit. (a) Permitted Transfers. A Limited Partner may transfer such Partner's Limited Partnership Units to one who is a Partner at the time of the transfer. The transferee shall he a "Permitted Limited Partner Transferee". (b) Approved Transfers. A Limited Partner may not transfer such Partner's Limited Partnership Units to one who is not a Partner at the time of the transfer, except with the consent of the General Partners holding a majority of General Partnership Units. The transferee shall be an "Approved Limited Partner Transferee". 10.4. Rights of Transferees. The Limited Partnership Units transferred to a Permitted Limited Partner Transferee shall be added to the other Limited Partnership Units, if any, owned by such Permitted Limited Partner Transferee and carry the same rights as such other Limited Partnership Units. If the Permitted Limited Partner Transferee was not a Limited Partner at the time of the transfer, the Permitted Limited Partner Transferee shall, to the extent of the transfer, become a Limited Partner. An Approved Limited Partner Transferee shall only have the rights of an assignee of a partnership interest as provided by C.R.S. §7-62-702, unless otherwise provided by majority vote of the General Partners. Consent to admission of the Approved Limited Partner Transferee as a Limited Partner shall be subject to such requirements as the General Partners may impose. 9 OI 'd 8L09 SES OL6 uoryon.Vlsuo0 ea [u e9E :L0 90 6d Jew ARTICLE XI REMOVAL OF GENERAL PARTNER; EFFECT OF CONTINUATION OF PARTNERSHIP UPON WITHDRAWAL OF GENERAL PARTNER 11.1. Removal of General Partner. A General Partner may be removed from the position of General Partner for intentional misconduct, gross negligence in the affairs of the Partnership. inattention to the business of the Partnership, or for other similar good cause shown, upon the affirmative vote of the Partners holding seventy five percent (75%) of the Units (General and Limited), excluding the Units held by the General Partner sought to be removed. Notwithstanding the preceding sentence, a General Partner who holds more than fifty percent (50%) of the total Units of the Partnership may not be so removed, and neither Kenneth A. Williamson nor Connie S. Williamson may he removed. A removed General Partner shall have no authority to act for the Partnership and all rights associated with ownership of his or her General Partnership Units shall be limited to the rights of an assignee of a partnership interest as provided by C.R.S. §7-62-702. 11.2. Continuation of Partnership. Upon the occurrence of any "event of withdrawal" of a General Partner (as defined in C.R.S. §7-62-402), the business of the Partnership shall be continued by the remaining General Partners, if any. Upon the occurrence of any "event of withdrawal" of the sole remaining General Partner, the Partnership shall not be dissolved, but the business of the Partnership shall be continued by a substitute General Partner as a continuing Limited Partnership bound by the terms hereof, except if Partners holding a majority of the Units consent in writing to dissolution of the Partnership within ninety days after the event of the withdrawal. The continuing Limited Partnership shall automatically, and without further assent or act of the Limited Partners, succeed to all of the assets of the Partnership. 1f the Partnership is not dissolved by majority consent, the Partners holding a majority of the Units may admit one or more substitute General Partners. If such Partners fail to act within a reasonable time, the District Court for the county in which the Partnership's registered agent is located shall, upon the application of any Partner, admit one or more substitute General Partners. Such court may appoint a custodian to manage the business of the Partnership during the pendency of the proceedings. Any person admitted as a substitute General Partner must be a Partner at the time of admission. ARTICLE XII EVENT OF WITHDRAWAL OF GENERAL PARTNER; DEATH, INCAPACITY OR BANKRUPTCY OF A LIMITED PARTNER 12.1_ Transfer of Partnership Units. Subject to the purchase right held by the Partnership (as described in Partnership Purchase Right Article, below), upon the occurrence of any "event of withdrawal" of a General Partner as defined by C.R.S. §7-62-402 or the death, incapacity, hankruptcy or other event causing an involuntary transfer of the interest of a Limited Partner, the Partnership Units of such Partner shall transfer to such Partner's heirs, legatees, successors, trustees, receivers, or other legal representatives, but the rights of such successors shall be limited to the rights of an assignee of a partnership interest under the Act, unless such successors qualify as Permitted General or Permitted Limited Partner Transferees at the time of the transfer. 12.2. Payment or Distribution upon Withdrawal. Under this Agreement, no Partner is entitled to receive the fair value of such Partner's partnership interest upon withdrawal from the Partnership (whether in accordance with or in breach of this Agreement) or upon any other event except a dissolution and winding up of the Partnership, regardless of the provisions of C.R.S. §7-62-604, any similar statute, or any judicial decision. Each partner waives the right to bring an action for partition of the Partnership or any property owned by the Partnership. 10 Tt 'd 8L09 SES 0L6 uoflonuzsuo0 edie e96 :L0 90 62 ueW ARTICLE XIII PARTNERSHIP PURCHASE RICHT 13.1. General. During the period commencing on the date the Partnership becomes aware of, or has notice of, any potential or actual transfer of a Partnership Unit not prohibited by this Agreement and ending 60 days after the later to occur of(i) the actual transfer or (ii) the date the Partnership receives written notice from the transferor or transferee of the potential or actual transfer, the Partnership shall have the right ("purchase right"), but not the obligation, to purchase from the transferor (or transferee if the transfer has already occurred) any Partnership Unit involved in the potential or actual transfer ("Transferred Partnership Unit"), unless the transferee at the time of the transfer is a Permitted General Partner Transferee, an Approved General Partner Transferee, a Permitted Limited Partner Transferee, or an Approved Limited Partner Transferee. The vote of the Partners holding a majority of the Partnership Units (excluding the vote of the Partner who is a transferor of the Transferred Partnership Unit) shall be required to exercise the Partnership's right to purchase. For purposes of this provision, "transfer" includes, but is not limited to, an assignment or transfer occurring due to an "event of withdrawal" of a General Partner, or an assignment or transfer occurring due to death, incapacity, bankruptcy, or by operation of law. 13.2. Retroactive Effect. If the Partnership exercises its right to purchase the Transferred Partnership Unit, then: (a) if the transfer has occurred, the effective date of the purchase ("Purchase Date") shall be retroactive to the date of the transfer, or, if the transfer has not occurred, shall be set by agreement of the Partnership and the transferor (but not later than the date of transfer); (h) if the transfer has occurred, any action taken by the transferee with respect to the transferred Partnership Unit shall be void, and (c) if the transfer has occurred, the transferee shall have no right to receive any distribution or other benefit from the Partnership other than payment of the purchase price. 13.3. Terms of Purchase Under Purchase Right. (a) Price. The purchase price to the Partnership shall be the lesser of(i) fair market value on the Purchase Date, where "fair market value" is the price at which the Partnership Unit would change hands between a hypothetical willing buyer and willing seller, neither being under any compulsion to buy or to sell, and both having reasonable knowledge of relevant facts, provided, however, that in no case shall such price exceed sixty percent (60%) of the asset value of the Partnership assets, excluding the value, if any, of goodwill; or(ii) the proposed price included in a bona fide offer, where "bona fide offer" is an offer in writing, signed by the offeror, who must be a person or entity financially capable of carrying out the terms of the offer, in a form legally enforceable against the offeror, and binding the offeror to assume all of the obligations and undertakings of the offeree in accordance with the terms of this Agreement. The purchase price, once determined under the preceding sentence, shall be reduced by reasonable costs, including attorneys fees, to the Partnership associated with any valuation, and the preparation, execution, and registration of all pertinent documents. (h) Additional Terms. Whenever the Partnership exercises its right to purchase a Transferred Partnership Unit, the Partnership shall pay for that interest, at its option, in cash or by promissory note of the Partnership, or partly in cash and partly by promissory note. Any promissory note shall he dated as of the Purchase Date, shall mature in not more than ten years, shall he payable in installments that come due not less frequently than annually, shall bear interest at a rate equal to the federal long-term rate determined under Internal Revenue Codc §1274(d) for the month including the Purchase Date, and may, at the Partnership's option, be subordinated to existing and future debts to banks and other institutional lenders for money borrowed. II ZT 'd 6L09 SES 01.6 uorlona suo0 eJT& e9E :L0 90 62 ueW ARTICLE XIV CAPITAL ACCOUNTS 14.1. Capital Account Maintenance. (a) Compliance with Code. The manner in which Capital Accounts are to he maintained is intended to comply with Subchapter K of the Code and the associated Treasury Regulations, including the requirements of Section 704(b) of the Code and the Treasury Regulations promulgated thereunder. Capital Accounts shall also he determined and maintained in a manner consistent with Section 704(6) and such Treasury Regulations at all times throughout the full term of the Partnership. (b) Regulatory Allocations. The following provisions are intended to comply with certain regulatory requirements for allocations set forth in Section 704(b) of the Code. It is the intent and understanding of the parties that the allocations required by this subsection (b) are primarily timing issues and that such allocations will he offset by future, offsetting allocations pursuant to this subsection (b). (i) Limitation. Notwithstanding anything in this subsection (b) to the contrary, items of loss and deduction allocated to any Partner pursuant to this subsection (b) with respect to any taxable year shall not exceed the maximum amount of such items that can be so allocated to such Partner without causing such Partner to have a deficit balance in its Capital Account in excess of the amount of such Partner's obligation, if any, to restore such deficit capital account, computed in accordance with the rules of Section 1.704-1(b)(2)(ii)(d) of the Treasury Regulations. Any such items of loss or deduction in excess of the limitation set forth in the preceding sentence shall be allocated to those Partners who would not be subject to such limitation, proportionately in accordance with their Percentage Interests. (ii) Minimum Gain Chargeback. Notwithstanding anything to the contrary in this subsection (h), if there is a net decrease in "minimum gain" or"partner nonrecourse debt minimum gain" (as such terms are defined in Sections 1.704-2(b) and 1.704-2(i)(2) of the Treasury Regulations) during a taxable period of the Company, then each Partner shall be allocated items of income and gain for such year (and, if necessary, for subsequent years) in the manner provided in Section 1.704-2 of the Treasury Regulations. (iii)Qualified Income Offset Subject to the provisions of subsection (b)(ii), but otherwise notwithstanding anything to the contrary in this subsection (b), if any Partner's Capital Account has a deficit balance in excess of such Partner's obligation to restore its Capital Account balance, computed in accordance with the rules of paragraph (b)(2)(ii)(d) of Section 1.704-1 of the Treasury Regulations, then sufficient amounts of income and gain (consisting of a pro rata portion of each item of Partnership income, including gross income, and gain for such year) shall be allocated to such Partner in an amount and manner sufficient to eliminate such deficit as quickly as possible. (iv)Nonrecourse Debt. Items of deduction and loss attributable to "partner nonrccourse debt" within the meaning of Section l.704-2(h)(4) of the Treasury Regulations shall be allocated to the Partners bearing the economic risk of loss with respect to such debt in accordance with Section 1.7040-2(1)(1) of the Treasury Regulations. Items of deduction and loss attributable to "nonrecourse debt" of the Company within the meaning of Section 1.752-2 of the Treasury Regulations shall he allocated to the Partners in proportion to their respective Percentage Interests. (v) Effect of Special Allocations on Subsequent Allocations. Any special allocation pursuant to subsections (h)(i) and (b)(iii) hereof shall be taken into account in computing subsequent allocations of income and gain pursuant to this subsection (b) so that the net amount of all such allocations to each Partner shall, to the extent possible, he equal to the net amount that 12 Ei 'd 81.09 SES OLe uotzonJ'suo0 ej1d eLe :LO 90 6Z JeW would have been allocated to each such Partner pursuant to the provisions of this subsection (b) if such special allocations had not occurred. It is anticipated that all allocations pursuant to subsection (b)(iv) will be offset by allocations pursuant to subsection (b)(ii) hereof. To the extent that ally amount allocated pursuant to subsection (b)(iv) hereof is unlikely to be offset by a countervailing allocation of income from subsection (b)(ii) hereof then so much of such allocation that is unlikely to be offset shall also be taken into account in computing subsequent allocations of income and gain so that the net amount of all such allocations shall, to the extent possible, equal the net amount that would be allocated to such Partner in the absence of such special allocation. 14.2 Restoration of Negative Capital Accounts. Upon liquidation of Partnership, after all distributions pursuant to this Agreement have been made and all allocations pursuant to this Agreement have been made, any General Partner with a deficit balance in its capital account shall restore the amount of such deficit to Partnership in cash (or in property of equivalent value to the Partnership) for payment to creditors or to Partners with positive capital account balances. This covenant is for the exclusive benefit of the parties to this Agreement and may not be enforced by any creditor of Partnership or any third party. If any Limited Partner has a deficit balance in such Limited Partner's Capital Account, such Limited Partner shall have no obligation to restore such negative balance or to make any capital contribution to the capital of the Partnership by reason thereof and such negative balance shall not be considered an asset of the Partnership or of any Partner. ARTICLE XIV MISCELLANEOUS 15.1. Amendments. The holders of a majority of the General Partnership Units may, by an instrument in writing, amend any of the provisions hereof; provided, however, that no amendment to this Agreement affecting economic allocations or distributions shall be effective without the prior written approval of all Partners; and provided further, however, that no amendment to this Agreement affecting the liability or obligations of any Partner to the Partnership or the other Partners shall be effective without the prior written approval of the Partner or Partners so affected. 15.2. Other Business Opportunities. Any Partner may engage in or possess an interest in other business ventures of every nature and description, independently or with others, including, without limitation, the investment in or the ownership of any securities. Neither the Partnership nor any of the Partners shall have any right by virtue of this Agreement in and to such independent ventures or to the income or property derived there from or to claim that such other activities of any Partner constitute an opportunity which should have been offered to this Partnership. 15.3. Partition. No Partner shall be entitled to a partition of the property or assets of the Partnership, notwithstanding any provision of law to the contrary. 15.4. Mailing of Partnership Information. The Managing Partner shall be entitled to use the names and addresses of the Partners on the books and records of the Partnership for purposes of establishing the right to receive and of mailing any notices, reports, documents, other instruments, and distributions to the Partners pursuant to the provisions of this Agreement until such time as the Managing Partner is notified in writing of any change to any such name or address. 15.5. Notices. Any notice required or permitted to be delivered to any Partner under the provisions of this Agreement shall be in writing and shall be deemed delivered, whether actually received or not, when deposited in a United States Postal Service depository, postage prepaid, and addressed to the Partner at the address specified in the Partnership records, or such other address as shall be specified by notice delivered to all Partners. A copy of any notice to any Limited Partner shall also he delivered to the Managing Partner. 13 bI 'd 8L09 SES OL6 uoilonuysuo0 eJty eLE :LO 90 ea Jew 15.6. Provisions Severable. Every provision of this Agreement is intended to be severable, and if — any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the legality or validity of the remainder of this Agreement. 15.7. Counterparts. This Agreement and any amendments hereto may be executed in counterparts, each of which shall be deemed an original, and such counterparts shall constitute but one and the same instrument. 15.8. Headings. The headings of the various sections of this Agreement are intended solely for convenience of reference, and shall not be deemed or construed to explain, modify, or place any construction upon the provisions hereof. 15.9. Successors and Assigns. This Agreement and any amendments hereto shall he binding upon and, to the extent expressly permitted by the provisions hereof, shall inure to the benefit of the Partners, their respective heirs, legal representatives, successors, and assigns. 15.10. Applicable Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado. This Agreement shall be performable, and venue of any action relating hereto shall lie, in Boulder County, Colorado. 15.11. Power of Attorney. (a) By the execution of this Agreement, or a counterpart hereof, each Partner irrevocably constitutes and appoints the Managing Partner such Partner's true and lawful attorney-in-fact and agent to effectuate, with full power and authority to act in such Partner's name, place, and stead in effectuating the purposes of the Partnership, including the execution, acknowledgement, delivery, filing, and recording of all certificates, documents, conveyances, leases, contracts, loan documents, or counterparts thereof, and all other documents which the Managing Partner deems necessary or reasonably appropriate to do any of the following: (i) organize or qualify the Partnership as a limited partnership (or a partnership in which special partners have limited liability); (ii) reflect an amendment to this Agreement or the Partnership's certificate of limited partnership or certificate of assumed name required by a change in the name of the Partnership, a change in the principal place of business or principal office of the Partnership, a change in the address of any partner, or the admission of any individual or legal entity to the Partnership, if such admission is in compliance with the applicable provisions of the Agreement; (iii)accomplish the purposes and carry out the powers of the Partnership as set forth herein: and (iv)rcflect the dissolution and termination of the Partnership if such dissolution and termination is in compliance with the applicable provisions of the Agreement. (b) The power of attorney granted herein: (i) shall be deemed to he coupled with an interest, shall be irrevocable and shall survive the death, incompetency, or legal disability of a Partner; (ii) may be exercised by the Managing Partner(and its successors and assigns) for each Partner, or any or all of them, by listing all, or any, of the Partners required to execute any such instrument, and executing such instrument as attorney-in-fact for all, or any one, of said Partners; and (iii)shall be binding upon any transferee of a Partner hereunder, or any portion thereof, except that where a transferee of a Partner has been approved by the General Partner tar admission to the Partnership or is otherwise qualified as a substituted Partner, the power of attorney shall survive the delivery of such partnership interest for the sole purpose of enabling the Managing Partner, to execute, acknowledge, and file any instrument on behalf of the transferor of the Partnership interest necessary to effect such substitution. 15.12. General Partner Vote Required for Certain Transactions. 14 ST 'd 81.09 SES OL6 uorlonJzsuoJ ediu eLEULO 90 6Z JEW Unless otherwise provided in this Agreement, the affirmative vote of One Hundred percent(100%) — of the Percentage Interests of all General Partners shall be required on the following matters: (a) establishing the fair market value of capital contributions; (h) establishing the fair market value of distributions; (c) contributing to charities property of the partnership; and (d) distributing of property other than to all Partners in proportion to their Partnership interests. 15.19. Gender and Number. Unless the context requires otherwise, the use of a masculine pronoun includes the feminine and the neuter, and vice versa, and the use of the singular includes the plural, and vice versa. 15 9t 'd 81-09 SES 01-6 uotyon- ysuo j eau) e8E :L0 90 62 ueW IN WITNESS WHEREOF, the parties have signed this Agreement effective the date and year first above written. i7/ jseret enneth A. Williamson, General Partner Connie S. Williamson, Gerletal Partner ffre4 ny R illiamson, imited Partner ammY F ch, Limited Partner O 79/14 Tonga J. Po lets, Limited Partner Ten L. Schulz, Limite er Lr 'd BL09 SES 0L6 uorlon.flsuo0 ejIB eBE :L0 90 62 ueW MEMORANDUM DATE: May 4, 2006 TO: Jacqueline Hatch-Weld County Planning FROM: Ken Merritt RE: Liberty PUD Submittal-Clarification of Zoning and Outlot Designations As we have discussed, we understand the problems created with the multiple zoning districts on Parcel B (R1 Residential, C1- Commercial, and C2 Commercial) and the "outlot" designation of Outlot F of the Liberty PUD Change of Zone. We proposed to resolve the conflicts by eliminating the R1 and C1 zoning from Parcel B as shown on sheet 3 of 17 of the Change of Zone Submittal. As such the entire 27.772 acres will be zoned C2 Commercial. In addition, we will rename the 23.117 acres currently identified as Outlot F on the Change of Zone preliminary plan to Lot 1, Block 5, rather than Outlot F. Based on this memo, we respectfully request that you consider circulating the original Change of Zone submittal dated March 31, 2006 for staff review and comment. All necessary revisions related to these two specific issues and; any others revisions that may be necessary as a result of the initial staff review and comment will be addressed in a complete revised resubmittal. Thank you for your attention and consideration of this matter. Best Regards, Landmark Engineering, Ltd. Ken Merritt, Sr. Vice President, Owner LIBERTY PUD DEVELOPMENT GUIDELINE Prepared by: Landmark Engineering Ltd. 3521 W. Eisenhower Blvd. Loveland, CO 80537 April 26, 2006 COMPONENT ONE-ENVIRONMENTAL IMPACTS NATURAL FEATURES - ENVIRONMENTAL CONCERNS There are no environmentally sensitive areas or wetlands as defined by the US Army Corps of Engineers located on the site. No development of land is possible without impacts to the environment. These impacts are mitigated site wide by utilizing proper engineering, planning, and construction techniques. The 30% of land dedicated as bufferyards, greenbelts and landscaping mitigate the negative impacts of noise, vibration, smoke, dust, odors, heat, light and glare. These open areas are strategically located to respect views and mitigate any negative visual and aesthetic impacts of development. As a residential development, electrical interference is not an anticipated environmental impact of this development. Water pollution impacts are largely mitigated by engineering solutions such as oil and grease traps in storm drains, erosion control elements such as erosion fences and baffles, and the stormwater detention/irrigation pond. (See the engineering plans and reports for additional details.) The sewage/wastewater disposal facility is St. Vrain Sanitation District. Wastewater shall be treated according to the policies set forth in the Weld County Code. The project is not expected to have significant impacts to rare plant species or wetland areas as neither currently exist on the site. The site is currently an agricultural use. As such there is no removal of natural vegetation. Erosion and sedimentation impacts are mitigated through engineering solutions such as erosion fences and baffles. All construction activities (i.e. excavating, filling and grading on the site shall conform to the standards set forth in the Weld County Code, and those by the State of Colorado. These standards ensure that development impacts of this type are limited and acceptable. A preliminary erosion control plan has been prepared with the Change of Zone Drilling, ditching and dredging are not a component of the plan. All new residential development meeting the needs of a growing population will impact the existing air quality to some degree. The low density of 1.08 dwelling units per acre, bufferyards and greenbelts all aid in the mitigation of the impacts of air pollution in this residential development. It is anticipated that recycling and solid waste removal will be managed by a single service as designated by the homeowners association. While the impacts of solid waste cannot be fully mitigated, a single provider will minimize traffic, pollution, and roadway wear and tear impacts over having multiple providers. The project is not expected to have significant impacts to rare wildlife species as none have been identified on the site. Wildlife species that are sensitive to human disturbance will be replaced with more urban adapted birds American Robin, house sparrow, house finch, starling, etc), mammals and reptiles. Crown cover of trees and shrubs will provide habitat for urban adapted species. COMPONENT TWO-SERVICE PROVISION IMPACTS PUBLIC FACILITY PROVIDERS • Police protection shall be provided by the Weld County Sheriff's Office. As requested by the sheriffs office an area for school bus loading and unloading has been identified. hi addition, a shelter for school children has been provided. • Fire and Rescue shall be provided by Mountain View Fire Protection. A water system hydraulic analysis has been performed and confirms that sufficient water quantities and pressures are available to meet required fire flows. Roadways have been designed to support fire apparatus and include paved roadway widths of 44' from flow line to flow line with in 60' right of ways. Fire hydrant placement has been provided based off 250' radius. • Education shall be provided by the St. Vrain Valley School District. Cash in lieu of land dedication will be provided with the Liberty PUD. ACCESS AND CIRCULATION Access is critical to the Liberty PUD as it requires consideration of the hierarchy of existing and future roadway systems including arterial, collector and local roadways within the site to ensure adequate access and safe vehicular, bicycle and pedestrian movement. A complete Traffic Impact Analysis dated March 8. 2005 has been prepared for the Liberty PUD by LSC Transportation Consultants. This report is included in the Change of Zone Submittal Package. The following is a description of the functional classification, width and design layout. Arterial, Future 1-25 Parallel Arterial Liberty PUD shall dedicate 8.40 acres for the future I-25 Parallel Arterial roadway. The 140' wide roadway dedication is located approximately 500 west of the east property boundary. The arterial roadway will parallel the east property line at grade to Weld County Road 32. The 8.40 acres will be a single segment of dedicated right of way that has no connection to any other portion of arterial right of way. As a result of the unknown location of the remaining right of way dedication necessary to complete the I-25 Parallel Arterial roadway, the Liberty PUD proposes limited arterial roadway improvements. These improvements include completion of one access point at Saratoga Street 20' emergency drive, limited storm water infrastructure and vertical curb and gutter along the west right of way line adjacent to the Liberty PUD estate lot development area. Access to the estate lot development is proposed from the I-25 Parallel Arterial will occur at the intersection of Saratoga Street. This access point will provide circulation and relieve congestion to the estate development when the arterial road system develops. As part of the Liberty PUD this access point and a temporary emergency access road will be designed and installed. The emergency access will provide an outlet for the residential development to County Road 32. The emergency access will be 20' wide paved drive that will be designed to incorporate the proposed curb and gutter of the arterial road design and alignment with County Road 32. Access from the arterial roadway to Outlot F should consider the alignment of Saratoga Street. be designed and installed with a site specific development plan for Outlot F. Collector, County Road 32 County Road 32, located on the north boundary of the property is an unimproved two-lane, east- west gravel road with 60' existing right-of-way. County Road 32 is designated as a collector road and will require additional right of way dedication and paving with this project. An additional 10' right of way shall be dedicated by the Liberty plat to provide the 40' half right of way required for the 80' ultimate right of way. The proposed roadway shall include a 24' asphalt road with 4' gravel shoulders on the north side and 4' asphalt shoulders on the south side and extend from the intersection of County Road 5 east to the property right of way line of the 1-25 Parallel Arterial Road. The Liberty PUD shall be served by two full movement access points on County Road 32. The first access point shall be designed and installed as part of the Liberty PUD estate lot and community recreation center development. The second access point shall provide access to the future commercial/retail center development east of the future arterial roadway. Collector, County Road 5 County Road 5 is an existing paved two-lane, north-south, 24' road within a 60' right of way located along the west boundary of the property. The paved road is classified as a collector which will require an additional 10' right of way dedication to provide the 40' half right of way required for the ultimate 80' right of way. The Liberty PUD shall gain access from a single full movement access point on County Road 5. Local, Internal Roadway The estate lot development will gain vehicular access from Weld County Road 5 and Weld County Road 32. The internal roadway network within the estate lot development area consists of a main looped local road with a series of cul-de-sacs all within 60' rights-of-way. Roadways within the estate lot development include a 44' roadway flowline to flowline with curb and gutter, on-street parking, 7' tree lawn and detached walk. The cul-de-sacs will maintain the 44' roadway and will utilize drive over curb and gutter with attached walk. Cul-de-sacs will provide the residents a sense of privacy and preserve the rural character by minimizing neighborhood traffic. PUBLIC UTILITIES Water Multiple utilities border the north side of the site. The Northern Colorado Water Conservancy District has a 28 inch raw water transmission line located approximately 75 feet south of County Road 32. The Little Thompson Water District has a 6 inch water main paralleling the north side of County Road 32. Little Thompson Water District (LTWD) will be providing potable water for the site. In working with LTWD's Engineer, Michael Cook, the developer has paid LTWD to have a water system hydraulic analysis performed to confirm that sufficient water quantities and pressures are available to serve this subdivision. The analysis has been completed and LTWD has provided a signed Main Line Water Extension Agreement confirming their ability to serve the site. As a result, this project will have no affiliation with the Longs Peak Water District regarding potable water supply. The Liberty PUD is located outside of the Longs Peak Water District service area. The north limit of their service area runs east/west through the middle of Section 21, T3N, R68W. This north limit is the south boundary of the Liberty PUD Subdivision, and confirms that fact that the site will be served by LTWD and not Longs Peak Water District. Offisite improvements shall include a 12" water main extension located east of County Road 7, approximately 3,000 feet to the Liberty Property. An 8" looped waterline with branches serving cul-de-sacs shall provide onsite water service to the Liberty PUD. Sewer Sewer service will be provided by the St. Vrain Sanitation District. A petition for Inclusion fee of$42,733.90 has been paid to the St. Vrain Sanitation District and a Court Order of Inclusion has been approved by the Weld County District Court for the inclusion of the Liberty PUD into the St.Vrain Sanitation District. Improvements will include the extension of an existing 8" sanitary sewer located south of Highway 66 north to the Liberty PUD property. Gas and Electric Excel Energy has two high pressure steel gas lines in and adjacent to County Road 32 and shall be extended to the site. Telephone An underground telephone line is located on the south side of County Road 32 as is an overhead electrical line and will be extended to serve the site. STORM DRAINAGE The proposed drainage concept for Liberty PUD will be to convey all the runoff from the development into the detention pond located in the southwest corner. Site drainage flows to the detention pond through streets, storm sewer piping or by open drainage swales. Storm sewer piping consists of three separate runs- west, middle and east. The west and east storm sewers terminate at the detention pond. The middle sewer terminates near the center of the site where an open drainage swale begins and flows to the detention basin. The detention basin outlet discharges to a proposed outfall storm sewer that goes under County Road 5 and terminates in a drainage ditch that flows to the Liberty Gulch natural drainage way. A complete Drainage Report has been prepared for this development by Landmark Engineering for the Change of Zone. COMPONENT THREE-LANDSCAPING ELEMENTS Total park and open space areas within the entire development exceed 30% of the development area. Included in the Open Space requirements is a proposed neighborhood recreation facility to be located in Outlot B. All common open space will be owned and maintained by the Homeowners Association. Common open space Outlots A through E will be landscaped with regionally appropriate plant materials (a "naturalistic" design approach shall be used) in open space and buffer yard areas. These areas shall include informal plantings of coniferous and deciduous trees with large drifts of deciduous and coniferous shrub beds. Turf areas will incorporate low water use drought tolerant seed and sod varieties. Common open space areas as shown on the plans including entry features and landscaping shall be planted and irrigated by the developer and maintained by a common Homeowners Association. The landscape planting and maintenance shall provide a consistent landscape between lots and open space throughout the development. A landscaped buffer yard shall buffer County Road 5 and County Road 32 along the perimeter of the development. The 70' bufferyards will enhance the privacy of the residents while providing an attractive edge from the public view. Perimeter fencing shall include 3-1/2' high wood rail fence with masonry columns with sandstone veneer to complement the project entry signage. A tree lined streetscape has been designed for the Liberty PUD subdivision along all internal the local roads throughout the development. Streetscape and 7' wide treelawns shall planted an irrigated by the developer and maintained by the Homeowner's Association. Front, side and rear yard landscaping and permanent underground irrigation shall be installed o n each lot by the home owner from back of walk to foundation and maintenance of the private lot landscaping shall be the responsibility of the homeowner. IRRIGATION All common openspace shall be irrigated with irrigation ditch water conveyed to an onsite irrigation pond and then pumped into an automated underground irrigation system. The developer proposes to install a non-potable irrigation system that will be used to irrigate the common open space areas and tree lawns adjacent to street rights of way. The combined detention/irrigation holding pond will have the maintained high water elevation for irrigation purposes with detention volume water occurring above this elevation. The irrigation pond will be lined with an impervious liner and irrigation water will be conveyed from the Highland Ditch Company south along County Road 5 to the irrigation pond. The developer shall transfer adequate shares of the Highland Ditch Company water to the Homeowners Association for ongoing irrigation use. An irrigation pump house is proposed at the southeast corner of the subdivision near the irrigation pond. The pump house will have filtration and pumping equipment to supply pressurized water to the underground irrigation distribution system. The non-potable irrigation system will be transferred to the subdivision's Homeowner's Association who will be responsible for operating and maintaining the entire irrigation system. Because irrigation ditch water is normally available during the months of May through early September, a need for irrigation water exists in the early season (before May) and late season (September and October). A back-up potable water source from the Little Thompson Water District will be installed. However, this potable source will only be used to irrigate selected areas of the site and not the entire irrigated area. The areas to be irrigated with potable water would include the club house, athletic fields and high visibility areas like the main entrance. COMPONENT FOUR-SITE DESIGN The Liberty PUD property is unique due to its proximity to the urbanized development occurring in nearby City of Longmont, the Town of Mead and within the Weld County MUD District. In addition to being located near these urbanizing areas, the site is also in close proximity to the I- 25 Corridor and the Highway 66 Corridor. This location offers an opportunity to create a neighborhood that encourages connectivity, protects view corridors to the West, provides open space and recreational amenities, convenience shopping, and will provide quality residential housing that will create a neighborhood worth coming home to. PROJECT LOCATION The Liberty PUD property is located at the southeast corner of Weld County Road 5 and Weld County Road 32, southwest of Mead, Colorado. The Liberty property is bound by County Road 5 on the West; County Road 32 on the North; Eden's Reserve PUD on the East and vacant farm land to the South. The property is located one and a half miles west of I-25 and a half mile north of Highway 66 and is centrally located in an area of significant growth. This growth has placed greater transportation demands on both highway corridors. To relieve the pressure of the increased local traffic, arterial roads have been planned for the west and east side of I-25. As part of the Liberty PUD the necessary 8.04 acres of right of way are being dedicated for the future 1-25 Parallel Arterial that will run through the Liberty Property. LIBERTY PUD SUBDIVISION Liberty PUD will be platted under a single filing. The subdivision is a 158+/- acre subdivision that plats 5.22 acres of additional right of way dedication to the existing County Road 5 and County Road 32 roadway system; 8.40+/- acres of future I-25 Parallel Arterial Roadway right of way dedication; 131 low density residential lots; 30+/- acres of common openspace and a 23.12+/- acre super block to be developed as-future residenti 1 na commercial development under a separate eVe�op ent application. Liberty PUD Platting: Liberty PUD plats 8.40 acres of right of way for the I-25 Parallel Arterial Road. Liberty PUD plats 5.22 acres of existing and additional right of way along County Roads 5 and 32. Liberty PUD plats 121.43 acres including 131 single family residential lots; 5 openspace Outlots A-E and interior road right of way. tDr! at's Liberty PUD plats-Outlet.F, a 23.12 acre super block to be further developed under a future and separate development application. LIBERTY PUD CHANGE OF ZONE Liberty PUD Change of Zone is a mixed use plan that identifies and zones three distinctive development areas including 8+/- acres of future 1-25 Parallel Arterial roadway dedication, 12I+/- acres of low density residential located west of the future 1-25 Arterial Road right of way and 23+/- acres of combined low density residential and commercial/retail east of the future I-25 Arterial Road right of way. The goal of the Liberty Change of Zone Plan is to provide zoning for the three areas while offering a site specific design for the 8+/- acre future arterial road and the 121+/- acres of low density residential located west of the future arterial road. The Liberty PUD will establish an effective visual transition from rural residential uses located west of the development with low density estate lots creating a semi-rural gateway toward the I- 25 parallel arterial. Single family lots and the commercial retail center will continue east of the arterial toward developing urban growth boundaries. LIBERTY PUD CONSTRUCTION PHASING It is anticipated that the construction of the 121+/- acre low density residential development may be phased as identified on the Change of Zone Site Plan and Utility Plan included in this package. The 23+/- acres zone R I, C-1, C-2 shall be designed and constructed under a future separate development application. Liberty PUD Phased Development Components: Liberty PUD zones 121.43 acres R-1 including 131 single family residential lots; 5 openspace Outlots A-E and interior road right of way in the Change of Zone. Construction Phasing has been identified on the Change of Zone plan as construction is anticipated. Future Site Plan Review: S Liberty PUD zones d iii J't a 23.12 acre outlot R 1, C 1 and C-2 and shall be developed under a separate Site Plan Review application and is not intended to be included in the Liberty PUD Final Plan. R-1 LOW DENSITY SINGLE FAMILY ESTATE RESIDENTIAL & COMMUNITY RECREATION CENTER The Liberty PUD contains single family estate lots complemented by a neighborhood recreation center designed to invite neighbors to share in the community experience and encourage active lifestyles. The Liberty PUD contains 131 single family estate lots ranging in size from 18,000 square foot to 36,000 square foot lots and several commonly maintained outlots which serve as buffer yards along the county roads and open space tracts which will be landscaped. Gross density within the Change of Zone development area of 121.43+/- ac is 1.08 dwelling units per acre. The single family estate lot will include custom and semi-custom homes each with a unique architectural style with lots arranged along curvilinear tree lined streets and quiet cul-de sacs. Lots have ample frontage for driveway placement and vehicle circulation and parking. Typical lots are 100' wide by 200' deep. All lots back to a rear landscape bufferyard or open space tract and provide off-street pedestrian connectivity throughout the development. Wide landscape buffers will separate homes from the I-25 Parallel Arterial while providing space for a pedestrian walkway that leads to the proposed recreation facility. Site design and architectural standards will allow for individuality while maintaining a common theme that provides continuity throughout the development by incorporating architectural features, materials, color fencing and signage. Pedestrian/bike pathways and greenbelts around the perimeter and internal to the neighborhood, connect the recreation center, openspace and future commercial center areas. - C-2 COMMERCIAL A variety of commercial and retail services will be located in the northeast corner of the development with access to adjacent roadway systems. The 23.12 acre i platted and zoned for low density residential development and a neighborhood commercial%re a center. en ial element of Duflot 1I is single fami`y alley access homes e oa p1ac ith cafe pedestrian arrers. The neighborhood commercial center located at the south east intersection of the 1-25 arterial and County Road 32 shall allow uses associated with the C-1 Neighborhood Commercial and C-2 General Commercial such as retail. Professional offices, convenience store, food services and uses as identified in the Weld County Land Use Code. The neighborhood commercial center shall be developed to provide basic needed services and to complement the surrounding residential development uses and shall be unified by architectural theme to define the character of the neighborhood. A Site Plan Review application shall be submitted to the Weld County Planning Department prior to development of Outlot F. LOT 11(31./k 5. GEOTECHNICAL A preliminary geotechnical investigation was performed at the site to obtain technical information and subsurface property data. Information from soils boring holes (drilled on April 26 and 27, 2005) indicates that the water table at that time was from 5 feet to 12 feet below the existing ground surface. Issues with the placement of basements vs. high ground water table will exist throughout the site. The Developer desires to keep the option of installing basements for most or all of the subdivision residences. This will require depressing the water table and making special considerations for building foundations. If necessary, basement foundations will have perimeter drains. Options of draining to daylight and/or installing a piped subsurface drainage system consisting of mainline drain piping with branched ties to individual home perimeter drains will be considered. The need for a perimeter cut-off curtain drain will also be considered on the uphill portion of the subdivision. Final decisions regarding the options of having basements or installing a subsurface drainage system will be made by the Developer and will be shown on the final site improvements drawings. MINERAL RIGHTS Liberty Properties, LLLP owns 100% of the mineral rights on the property. There are no lessees or agreements related to mineral rights currently existing on the property. COMPONENT FIVE-COMMON OPEN SPACE USAGE The recreation center building will house community offices, a gathering space, library, game room, media room, exercise and weight rooms, and locker rooms. Additionally, a community pool, tot lot play area, various courts and ball fields, bar-be-que pits and picnic areas will be located adjacent to the building. The neighborhood recreation center is intended to be a meeting place for the development to encourage interaction with neighbors, and has been positioned to provide easy access from each neighborhood. The size and location of parks provides a pedestrian access for children, encouraging safe walking and bicycling routes with minimized street crossings. Construction of the Community Recreation Center shall not be required to be completed until all of the Phase I lots and half of the Phase 2 lots have been issued (93 building permit). COMPONENT SIX-PROPOSED SIGNAGE Project entry signage may be constructed at the three primary project entries. Stone columns will be constructed of stone and decorative precast concrete masonry with precast concrete sign panels on street side column face. Sign panel will have project name and graphic logo that will complement the proposed perimeter fence and column architecture. Overall sign design shall be governed by the Weld County Sign Code. Any entry features shall be a component of and approved with the Final Plan. COMPONENT SEVEN-MUD IMPACTS The Liberty PUD property is located at the southeast corner of Weld County Road 5 and Weld County Road 32, southwest of Mead, Colorado. The site is not located in an Urban Growth Boundary but is located in close proximity to the existing municipal boundaries for the Town of Mead. The property is approximately 156 acres and is currently zoned Agriculture. The intent of the property owner/applicant is to rezone the property to PUD which will include an estate lot development that will be complimented by a smaller single family alley access home development and commercial/retail component. The property is located one and a half miles west of I-25 and a half mile north of Highway 66, and is centrally located in an area that is seeing significant growth. This growth has placed greater transportation demands on both highway corridors. To relieve the pressure of the r— increased local traffic, arterial roads have been planned for the west and east side of I-25. The future alignment of the west I-25 Parallel Arterial will run through the entire Liberty Property. This future roadway will require approximately 8.5 acres of right-of-way dedication. The property owner understands the importance the County's need for the arterial roadway and feels that the development of the proposed PUD will be the most compatible use of the property and its proximity to the future arterial roadway and surrounding development. The property location creates a unique situation for a parcel located so central to regional traffic systems and surrounding development. The property is located within unincorporated Weld County and is not contiguous to the Town of Mead Corporate Limits. Currently, the property is not located within the current MUD boundary however; it is located within the current MUD study area. The owner/applicant desires to develop the Liberty PUD within Weld County and is requesting staff to consider rezoning the property to PUD so that urban scale development; based on its compatibility with the surrounding area, can occur. The recent MUD boundary study and the properties proximity to the future I-25 Parallel arterial and the Town of Mead make it a logical consideration to be rezoned to PUD. Additionally, the applicant feels the design, review and development of this property is critical and believes that Weld County's recent corridor study and current review of the MUD area provide the county with a stronger understanding of the long term goals of the area. r The Weld County Comprehensive plan states that urban scale developments should be located in close proximity to existing PUD, subdivisions, municipal boundaries or urban growth corridors and boundaries. The proposed Liberty PUD is in close proximity to each of these. COMPONENT EIGHT-INTERGOVERNMENTAL AGREEMENT IMPACTS The Town of Mead and Weld County do not have an intergovernmental agreement. SUMMARY OF CONCERNS APRIL 26 , 2006 LIBERTY PUD The following are the proposed resolution to the Department of Planning Services concerns regarding the PUD. The staff concern is identified by numbers 1.-8. and is followed by the proposed resolution. 1. will the PUD be done in filings or phases, Liberty PUD subdivision is a will be platted under a single filing. The subdivision is a 158+/- acre subdivision that plats 5.22 acres of additional right of way dedication to the existing County Road 5 and County Road 32 roadway system; 8.40+/- acres of future 1-25 Parallel Arterial Roadway right of way dedication; 131 low density residential lots; 30+/- acres of common openspace and a 23.12+/- acre super block (Outlot F) to be developed in the future as residential and commercial development. The 23.12+/- acre super block will be designed and developed under a separate Site Plan Review application. Liberty PUD Platting: Liberty PUD plats 8.40 acres of right of way for the 1-25 Parallel Arterial Road. Liberty PUD plats 5.22 acres of existing and additional right of way along County Roads 5 and 32. Liberty PUD plats one super block, Outlot F, a 23.12 acre outlot to be further developed under a future and separate development application. Liberty PUD plats 121.43 acres including 131 single family residential lots; 5 openspace Outlots A-E and interior road right of way. Liberty PUD Change of Zone is a mixed use plan that identifies and zones three distinctive development areas including 8+/- acres of future 1-25 Parallel Arterial roadway dedication, 121+/- acres of low density residential located west of the future 1-25 Arterial Road right of way and 23+/- acres of combined low density residential and commercial/retail east of the future 1-25 Arterial Road right of way. The goal of the Liberty Change of Zone plan is to provide zoning for the three areas while offering a site specific design for the 8+/- acre future arterial road and the 121+/_ acres of low density residential located west of the future arterial road. LIBERTY PUD CONSTRUCTION PHASING It is anticipated that the construction of the 121+/- acre low density residential development may be phased as identified on the Change of Zone Site Plan and Utility Plan included in this package. The 23+/- acres zone R-1, C-1, C-2 shall be designed and constructed under a future separate development application. Liberty PUD Phased Development Components: Liberty PUD zones 121.43 acres R-1 including; 131 single family residential lots; 5 openspace Outlots (A-E)and interior road right of way in the Change of Zone. Construction Phasing has been identified on the Change of Zone plan as construction is anticipated. Future Site Plan Review: Liberty PUD zones Outlot F, a 23.12 acre outlot R-1, C-1 and C-2 and shall be developed under a separate Site Plan Review application and is not intended to be included in the Liberty PUD Final Plan. 3 2. the pedestrian underpass The pedestrian underpass has been eliminated from the site design. 3. emergency vehicle turnaround. Interior lot cul-de-sacs have been increased to 55' radius to improve circulation and interior roadway lengths have been shortened. 4. roadway widths; Interior roadways have been increased to 44'from flow line to flow line. 5. public amenities and access; The recreation center building will house community offices, a gathering space, library, game room, media room, exercise and weight rooms, and locker rooms. Additionally, a community pool, tot lot play area, various courts and ball fields, bar-be-que pits and picnic areas will be located adjacent to the building. The neighborhood recreation center is intended to be a meeting place for the development to encourage interaction with neighbors, and has been positioned to provide easy access from each neighborhood. The size and location of parks provides a pedestrian access for children, encouraging safe walking and bicycling routes with minimized street crossings. Construction of the Community Recreation Center shall not be required to be completed until all of the Phase I lots and half of the Phase 2 lots have been issued (93 building permit). 6. utility easements The necessary onsite easements have been provided on the plat. Acquisition of offsite easements necessary for water and sewer main extensions are being discussed and negotiated. 7. landscaping; Total park and open space areas within the entire development exceed 30% of the development area. Included in the Open Space requirements is a proposed neighborhood recreation facility to be located in Outlot B. All common open space will be owned and maintained by the Homeowners Association. Common open space Outlots A through E will be landscaped with regionally appropriate plant materials (a "naturalistic" design approach shall be used) in open space and buffer yard areas. These areas shall include informal plantings of coniferous and deciduous trees with large drifts of deciduous and coniferous shrub beds. Turf areas will incorporate low water use drought tolerant seed and sod varieties. Common open space areas as shown on the plans including entry features and landscaping shall be planted and irrigated by the developer and maintained by a common Homeowners Association. The landscape planting and maintenance shall provide a consistent landscape between lots and open space throughout the development. A landscaped buffer yard shall buffer County Road 5 and County Road 32 along the perimeter of the development. The 70' bufferyards will enhance the privacy of the residents while providing an attractive edge from the public view. Perimeter fencing shall include 3-1/21 high wood rail fence with masonry columns with sandstone veneer to complement the project entry signage. 4 A tree lined streetscape has been designed for the Liberty PUD subdivision along all internal the local roads throughout the development. Streetscape and 7' wide treelawns shall planted an irrigated by the developer and maintained by the Homeowner's Association. Front, side and rear yard landscaping and permanent underground irrigation shall be installed o n each lot by the home owner from back of walk to foundation and maintenance of the private lot landscaping shall be the responsibility of the homeowner. 8. draft improvements agreement Detail related to the Improvements agreements for the future 1-25 Parallel Arterial are unknown at this time and should be negotiated at the time of Final Plan. 5 • SUMMARY OF CONCERNS APRIL 26 , 2006 LIBERTY PUD The following are the proposed resolution to the remaining comments identified in the 4-19 email from Jacqueline Hatch. These items were identified as staff concerns from the sketch plan submittal. The staff concern is identified by numbers 1.-10. and is followed by the proposed resolution. 1. that Bruce Barker(County Attorney) has reviewed and signed off on the water and sewer agreements; Bruce Barker has reviewed the water and sewer agreements provided and find them acceptable per an email dated August 20, 2006. 2. submit lot layouts with building footprints and setbacks Building footprints are not available at this time however, the preliminary Covenants for Liberty PUD dictate a minimum 2500 square feet for a single story dwelling and 3000 square feet for a two story dwelling. Typical building envelopes have been provided on each block of the site plan. The building envelopes recognize the setbacks as proposed; minimum 30' offset; minimum 10' side yard offset and minimum 10' rear yard offset. The residential building setbacks and development standards are provided on sheet 3 of 17 of the Change of Zone Plan. 3. the water supply form needs to be submitted to Longs Peak Water district for them to review and sign off on; Liberty PUD is located outside of the Longs Peak Water District service area. The north limit of their service area runs east/west through the middle of Section 21, T3N, R68W. This north limit is the south boundary of the Liberty PUD Subdivision, and confirms that fact that the site will be served by LTWD and not Longs Peak Water District. Little Thompson Water District (LTWD) will be providing potable water for the site. In working with LTWD's Engineer, Michael'Cook, the developer has paid LTWD to have a water system hydraulic analysis performed to confirm that sufficient water quantities and pressures are available to serve this subdivision. The analysis has been completed and LTWD has provided a signed Main Line Water Extension Agreement confirming their ability to serve the site. As a result, this project will have no affiliation with the Longs Peak Water District regarding potable water supply. 4. address fire district letter; A water system hydraulic analysis has been performed and confirms that sufficient water quantities and pressures are available to meet required fire flows. Roadways have been designed to support fire apparatus and include paved roadway widths of 44' from flow line to flow line with in 60' right of ways. Roadway lengths have been reduced. Fire hydrant placement has been provided based off 250' radius. 5. address school district letter; Cash in lieu of land dedication will be provided with the Liberty PUD. 6. address Colorado geological survey referral; High water table issue: Information from soils boring holes (drilled on April 26 and 27, 2005) indicates that the water table at that time was from 5- to 12-feet below the existing ground surface. Issues with the placement of basements vs. high ground water table will exist throughout the site. The Developer desires to keep the option of installing basements for most or all of the subdivision residences. This will require depressing the water table and making special considerations for building foundations. All basement foundations will have perimeter drains. Options of draining to daylight and/or installing a piped subsurface drainage system consisting of mainline drain piping with branched ties to individual home perimeter drains will be considered. The need for a perimeter cut- off curtain drain will also be considered on the uphill portion of the subdivision. Final decisions regarding the options of having basements or installing a subsurface drainage system will be made by the Developer and will be shown on the final site improvements drawings. 7. address sheriffs office letter; As requested by the sheriffs office an area for school bus loading and unloading has been identified. In addition, a shelter for school children has been provided. 8. address railroad letter; The proposed Liberty PUD eastern limit no longer boarders the Great Western Railroad Right of Way. Previously the development included the 23+/- acres east of the future 1-25 parallel arterial. Concerns related to fencing and security shall be addressed when the 23+/- (Outlot F) acres east of the arterial roadway is developed through a site plan review application. 9. address soil district referral; The 152+/- development site will be ornamentally landscaped and maintained by the Liberty PUD Homeowner's Association and will eliminate weed problems. The 23+/- acres east of the future arterial roadway will continue to be cultivated to minimize weed problems. 10. address the division of wildlife referral. The project is not located in an area that is considered critical habitat for wildlife species. Homeowners will be responsible for protecting domestic pets and damage to personal property and landscaping caused by wildlife. 2 Page 1 of 1 Tiffane Moore -- From: Drew Scheltinga [dscheltinga@co.weld.co.us] Sent: Tuesday, April 11, 2006 1:37 PM To: Jacqueline Hatch Cc: Tiffane Johnson Subject: PK-1103 Liberty PUD (Sketch Plan) Jacqueline On January 26, 2006, I and other Public Works staff met with Landmark representatives to discuss Liberty PUD sketch plan issues. The alignment of the I-25 parallel arterial as proposed by Landmark was agreed to by Public Works. It is acceptable to Public Works to proceed with the change of zone process. Drew Scheltinga, P. E. Weld County Public Works Department ^111 H Street P. O. Box 758 Greeley, CO 80632 970-356-4000 X3750 dscheltinga@co.weld.co.us 4/12/2006 WELD CVIJNTY ROAD ACCESS INFORMATION SHEET Weld County Department of Public Works 111 H Street, P.O. Box 758, Greeley, Colorado 80632 Phone: (970 )356-4000, Ext. 3750 Fax: (970)304-6497 Road File#: Date: I' 040 RE# : Other Case#: 1. Applicant Name /,l(iV ccf/ V I)eh.i .L Phone Address G(; 7 S !'11171r IO— 1 H try,!H, City Gov?,Ian C( State (_L) Zip SIC tact/ 2. Address or Location of Access ; 4-9S¢ tL( 2- S 7.C/10/) 1(%I )t LC St",1)( Section 1)- I Township - Range is-,SS Subdivision Block Lot Weld County Road #: ll)CJ2 '3 Side of Road £7ISt- Distance from nearest intersection JO' 3. Is there an existing access(es)to the property? Yes A No #of Accesses 3 rE3.3(A6- 4. Proposed Use: ❑ Permanent ❑ Residential/Agricultural ❑ Industrial ❑ Temporary. Subdivision ❑ Commercial O Other 5. Site Sketch Legend for Access Description: AG = Agricultural p, I fr., RES = Residential ___I O&G = Oil&Gas Ls — D.R. = Ditch Road ❑sn , 0 = House Orcusz- �� I2 S O = Shed free A =Proposed Access it A = Existing Access r r Ni pr& / AD r t,s - i_sys_wie______I OFFICE USE ONLY: Road ADT Date Accidents Date Road ADT Date Accidents Date Drainage Requirement Culvert Size Length Special Conditions O Installation Authorized ❑ Information Insufficient Reviewed By: Title: _18_ ■ r 27 06 02: 56p Alfa Construction 970 535 8078 p. 1 ■ Liberty Properties, LLLP 4O68 Camelot Circle Longmont CO 8O5O4 97O-535-6O74 phone 97O-535-6078 fax Fax To: Ken Merritt From: Ted Fax Date 3/27 Phone Pages: 8 Re Liberty policy of title insurance—west CG parcel ❑Urger* 0 For Review D Please Comment 0 Please Reply 0 Please Recycle Comrriturts: Mar 27 O6 O2: 56p Alfa Construction 97O 535 6O78 p. 2 4` � ' "N„ ra , L, ���y�Fy.� .yam }� �$y�,�yj�,� ]IWI! ,J ,4 �4 F)v 0 , ' yp ,!��.yWgr os ,5.gt�u,+dS • \�Y�N\p'(tk t yiebo YAyF'°'t F""�^.JJ�I/„ ,,.. ,4 �) , `A .a' "E ta.0604fAY0„ "IM�0•Y;".00 4`AA ,R71p#4k t, e q�� ' 1� v� 3v₹" _'i ,may} 4 L.. �`a .p Form No. 1402.92 k1/4..: v I r ` 19 (10/17/92) ` 'ALTA Owner's Policy ; . yY { L TITLE ; S -4,* ( 7.siSSUED BY �� First American Title Insurance Company .4 11 w .;ga�'pit- = o ' � SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE �°^dI ' B AND THE CONDITIONS AND STIPULATIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California . ) 4*14 corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A,against loss or damage, p` b) not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: a,"W z ) llto "'g 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; *It 2. Any defect in or lien or encumbrance on the title; ���• i ,fire 3. Unmarketability of the title;( tea" `'0,14 � 4. Lack of a right of access to and from the land. war tl 1 The Company will also pay the costs, attorneys'fees and expenses incurred in defense of the title, as insured, but VOz ' rqi only to the extent provided in the Conditions and Stipulations. A 'i •`� ""�,ry Longmont Title Holdings, Inc. ft.tfei' � P 1729 Terry Street '® �.�. „p���. Longmont, CO 80501 w (303) 651-1401 ' sari, Fax: (303) 651-1501 A Policy-Issuing Agent of First American Title I isutmire Compan ° 'v 11 zr w 'Etn�( First American Title Insurance Company 1 at Ye sikilf 'l BY PRESIDENT ((I r , ( 1 3 3 „ 114 41 11 51 4 ��e _ SECRETARY $ /�y�yji 1y. �sy4 t �+rr�3�},v, rif 7l q`�NlA`�i°P�61W'$OeR°aa eYr � 'Fi��R+Wq w 5'+ F q W ,„;,471C F�1 z . " m' eti_. � � � � ��;�ma� Y®d sYi'h 73 J GW�°W biu'4tP td0'.r1Ss 'r 'a t rw• « � rc m I t r m � �i'. r,mM .a t ,y,• y r Mar 27 06 02: 56p Alfa Construction 970 535 6078 p. 3 Form No. 1402 (W87) ALTA Owner's Policy Schedule A SCHEDULE A File No. 32284 Policy No. J 1838114 Amount of Insurance: $1,000,000.00 Premium: $2,284.00 Date of Policy: APRIL 25, 2005 AT 8:00 A.M. 1. Name of Insured: LIBERTY PROPERTIES LLLP 2. The estate or interest in the land which is covered by the policy is: Fee Simple. 3. Title to the estate or interest in the land is vested in: LIBERTY PROPERTIES LLLP 4. The land referred to in this policy is described as follows: The West One-Half of the following described parcel: That portion of the Northwest Quarter of Section 21, Township 3 North, Range 68 West of the 6th P.M., Weld County, Colorado, more particularly described as follows: Mar 27 09 02: 57p Alfa Construction 970 535 8078 p. 4 Considering the East line of the Northwest Quarter of said Section 21 as bearing South 00 degrees 01' 00" East, and with all bearings contained herein relative thereto; Beginning at the Northwest Corner of said Section 21; thence along the North line of the Northwest Quarter of said Section 21, North 89 degrees 23' 27" East, 2639.36 feet to the North Quarter Corner of said Section 21; thence along the East line of said Northwest Quarter, South 00 degrees 01' 00" East, 360.05 feet to the most Northerly Corner of that certain tract of land as described in Deed recorded in Book 228 at Page 105, records of said Weld County; thence along the Northwesterly and Westerly lines of said tract the following two (2) courses and distances: (1) South 20 degrees 22'26" West, 14150 feet (record S. 21 degrees 19' W., 143'); (2) South 00 degrees 01' 00" East, 2158.00 feet to the South line of said Northwest Quarter from which the Center of said Section 21 bears North 89 degrees 23'45" East, 50.00 feet; Thence along said South line, South 89 degrees 23'45" West, 2591.57 feet to the West Quarter Corner of said Section 21; thence along the West line of said Northwest Quarter, North 00 degrees 01' 52" East, 2651.04 feet to the Point of Beginning. Mar 27 06 02: 57p Alfa Construction 970 535 6078 p. 5 Form No. 1402-C ALTA Standard Policy Western Region (Rev. 9/87) SCHEDULE B PART I This policy does not insure against loss or damage(and the company will not pay costs, attorneys' fees or expenses) which arise by reason of: Section One: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements, claims of easement or encumbrances which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records. 5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 6. Any lien, or right to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public records. Section Two: 1. 2005 taxes, a lien, now due and payable. 2. The Right of Way for railway in width and in manner and form as provided by Acts of Congress as reserved by Denver Pacific Railway and Telegraph Company in Deed recorded May 23, 1877 in Book 22, Page 68. 3. A Right of Way over a portion of said land as granted to Panhandle Eastern Pipe Line Company by instrument recorded December 3, 1981 in Book 954 at Reception No. 1876097. The route of said right of way is not described in said instrument. Mar 27 06 02: 57p Alfa Construction 970 535 6078 p. 6 4. An Easement for Water Pipe Line over a portion of said land as granted to Kiteley Farms by instrument recorded January 14, 1983 in Book 986 at Reception No. 1914355. The route of said easement is more particularly described in said instrument. 5. An Easement over a portion of said land as granted to the Northern Colorado Water Conservancy District by instruments recorded March 28, 1996 in Book 1539 at Reception No. 2482998 and April 4, 1996 in Book 1540 at Reception No. 2484148. 6. Such rights as may exist in said land lying within Weld County Road 5 & 32. 7. Such rights as may exist in said land lying within any ditches, canals and/or reservoirs. 8. Any existing Leases and/or Tenancies. 9. Terms and Conditions as set forth in a Contract to Buy and Sell Real Estate dated March 21, 2005 by and between John Leonard Warner Trust and Liberty Properties, LLLP. 10. A Deed of Trust to secure an indebtedness in the original amount of$1,320,000.00, dated April 14, 2005, recorded April 22, 2005 as Reception No. 3279907. Grantor: Liberty Properties, LLLP Trustee: Public Trustee of Weld County Beneficiary: Wells Fargo Bank,National Association Said Deed of Trust is further secured by an Assignment of Rents recorded April 22, 2005 as Reception No. 3279908. Mar 27 09 02: 57p Alfa Construction 970 535 9078 p. 7 EXCLUSIONS FROM COVERAGE— the following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys'fees or expenses whic arise by reason of: 1. (a)Any law, ordinance or governmental regulation(including but not limited to building and zoning laws,ordinances,or regulations)restricting,regulating,prohibilio or relating to (i) the occupancy, use, or enjoyment of the land; (ii)the character, dimensions or location of any improvement now or hereafter erected on th land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or(iv) environments protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement there() or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Dab of Policy. (b)Any governmental police power not excluded by(a)above,except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage an) taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters' (a) created, suffered, assumed or agreed to by the insured claimant; (b)not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c)resulting in no loss or damage to the insured claimant; (d)attaching or created subsequent to Date of Policy; or (e)resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 4. Any claim, which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on' (i) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. by this policy which constitutes the basis()floss or damage or any loss or damage caused thereby. The following terms when used in this policy mean: theand smounll slate,to the lextent possible,ssma the basis of Company lculating (It) including litigation b b Inf or event thef anyIpaalls consent, g (a) "insured":the insured named in Schedule A,and, prejudiced by the failure of the insured claimant to proid the he Companyano liability with loss or damage ge t the Ca bee subject to any rights or defenses the Company would have required proof of loss or damage,the Company's obligations hill have rmoforb or of co until there has bee hgdjgainst the named insured, those who succeed to the to the insured under the policy shall terminate,including any d final determination l by a is court of competent adze r e to the etiMI t of the named insured by operation of law as liability or obhgafion to defend, prosecute, or continu an rid disposition of all appeals therefrom,adverse to rid t ,dished from purchase including, but not limited to, litigation,with regard to the matter or matters requiring such s insured. heirs,distnbutees,devisees,survivors,personal representa- proof of loss or damage. (c) The Company shall not be table for loss c tives,next of kin, or corporate or fiduciary successors. In addition, the insured claimant may reasonably be amage to any insured for liability voluntarily assumed by ln. (b) "insured claimant": an insured claiming loss orrequired t sured in settling any claim or suit without the prior wnttei damage. areuthuorizedo representativesubmitto of theexamination Company and shall produce onsent of the Company. (c) "knowledge"or"known": actual knowledge, not for examination,inspection and copying,at such reasonable constructive knowledge or notice which may be imputed to times and places as may be designated by any authorized D. REDUCTION OF INSURANCE;REDUCTION OR an insured by reason of the public records as defined in this representative of the Company, all records,books, ledgers, TERMINATION OF LIABILITY. notice checks,correspondence and memoranda,whether bearing a policy or any other records which impart constructive of matters affecting the land. date before or after Dale of Policy,which reasonably pertain All payments ' fees and policy,except payments made ter "land the land described or referred to in to the loss or damage.Further, requested by any authorized for costs, attorneys' fees and expenses, shall reduce the Schedule(A),and improvements affixed thereto which by taw representative of the Company, the insured claimant shall amount of the insurance pro Canto. grant its permission, in writing, for any authorized rep- constitute real property.The term"land"does not include any resentative of the Company to examine,inspect and copy all property beyond the lines of the area described or referred records,books,ledgers,checks,correspondence and mere- 11 LIABILITY NONCUMULATIVE. In- to in Schedule (A), nor any right, title, interest, estate or ()rondo in the custody or control of a third party, which easement in abutting streets,roads, avenues,alleys,lanes, It is expressly understood that the Amount of In- ways or waterways,but nothing herein shall modify or limit designated pertain to the loss the insured damage. All information surance under this policy shall be reduced by any amount the the extent to which a right of access to and from th land is to Companystheapynfsal pursuant oni shat provided be wh ch exce mationais take any Schedule B not to which the insured by this policy. o to this Section shall not hbee P disclosed to others unless,in the reasonable judgment of the insured has agreed,assumed,edr taken subject,or which is (e) "mortgage":mortgage,deed of trust,trust deed, Company, it is necessary In the administration of the claim. hereafter executed by an insured and which is a charge or or other security instrument. Failure of the insured claimant to submit for examination lien on the estate or interest described or referred to in (f) "public records":records established under state Schedule A, and the amount so paid shall be deemed a under oath,produce other reasonably requested information statutes at Date of Policy for the purpose of imparting or grant permission to secure reasonably necessary intorrna- payment under this policy to the insured owner lion from third parties as required in this paragraph,unless constructive notice of matters relating to real property to purchasers for value and without knowledge.With respect to prohibited by law or governmental regulation,shall terminate 12. PAYMENT OF LOSS. Section 1(a)(iv) of the Exclusions From Coverage, 'public any liability of the Company under this policy as to that claim. records"shall also incude environmental protection liens filed (a) No payment shall be made without producing this in the records of the clerk of the United States district court B. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; policy for endorsement of the payment unless the policy has for the district in which the land is located. TERMINATION OF LIABILITY. been lost or destroyed, in which case proof of loss or (g) "unmarketability of the title": an alleged or destruction shall be furnished to the satisfaction of the apparent matter affecting the title to the land,not excluded or In case of a claim under this policy,the Company shall Company. have the following additional options: (b) When liability and the extent of loss or damage has excepted from coverage,which would entitle a purchaser of the estate or interest described in Schedule A to be released (a) To Pay or Tender Payment of the Amount of been definitely fixed in accordance with these Conditions and from the obligation to purchase by virtue of a contractual Insurance Stipulations,the loss or damage shall be payable within 30 coon requiring the delivery of marketable title. To payortenderpaymentoftheamountofinsurance days thereafter. under this policy together with any costs,attorneys'fees and 2. tiONTINUATlON OF INSURANCE AFTER expenses incurred by the insured claimant, which were 13. SUBROGATION UPON PAYMENT CONVEYANCE OF TITLE. authorized by the Company, up to the time of payment or OR SETTLEMENT. tender of payment and which the Company is obligated to The coverage 01 this policy shall continue in force as pay (a) The Company's Right of Subrogation. of Date of Policy in favor of an insured only so tong as the Upon the exercise by the Company of this option, all Whenever the Company shall have settled and paid a insured retains an estate or interest in the land, or holds an liability and obligations to the insured under this policy,other claim under this policy,all right 01 subrogation shall vest in �ndebtednnscaerfrnm by purchase, lmoney mortgage„given anY iability orhoblga obligation to defends prlose ute. orlcontinue The Coupon Company be'1ubroga(edt of the to and tbeuenhtled()salt Mar 27 06 02: 57p Alfa Construction 970 535 8078 p- 8 estate or intiYest. This policy shag not continue in fort (b) To Pay or Otherwise Settle With Parties Other^ "°u""o pvilLy„utuccmoeucu.It Icqucmcu uy n,euun tpmi favor ci nny purchaser from the insured of either(i)an es, the Insured or With the Insured Claimant. the Insured claimant snail person toor the Company sl ary or inter st in the land. or(ii)an indebtedness secured by a (i) to pay or otherwise settle with otherparties for and remedies against s any right ofb ogoperty Th esssu purcnase money mortgage given to the insured. or In the name of an insured claimant any claim insured craer to halperl l ct tseC p subrogation.sue,uon. The insure against under this policy,together with any costs,attorneys' claimant a na of the permit the insured clay a n tcompromise I 3. NOTICE OF CLAIM TO BE GIVEN BY fees and expenses incurred by the insured claimant which of ttthen itnsured claimant in dny transaction to use tRigan p the int hrsd in any transaction or litigatic^ INSURED CLAIMANT. were authorized by the Company up to the time of payment involving these rights or remedies. and which the Company Is obligated to pay;or If a payment on account of a claim does not fully covi The insured shall notify the Company promptly in (ii) to pay or otherwise settle with the insured the loss o1 the insured claimant, the Company shall t w„mg(i)in case of any litigation as set forth in Section 4(a) claimant the loss or damage provided for under this policy, subrogated to these rights and remedies in the proportic below, (ii) in case knowledge shall come to an insured together with any costs, attomeys' fees and expenses which the Company's payment bears to the whole afoul hereunder of any claim of title or interest which is adverse to incurred by the insured claimant which were authorized by the of the loss. the title to the estate or interest,as insured,and which might Company up to the time of payment and which the Company If loss should result from any act of the insure cause loss or damage for which the Company may be liable is obligated to pay. claimant,as stated above,that act shall not void this petit by virtue of this policy,or(iii)if title to the estate or interest, Upon the exercise by the Company of either of the but the Company,in that event,shall be required to pay onl as insured,is rejected as unmarketable.If prompt notice shall options provided for in paragraphs (b)(i) or (ii), the Gom- that part of any losses insured against by this policy whic not be given to the Company,then as to the insured all liability pany's obligations to the insured under this policy for the shall exceed the amount, if any, lost to the Company b of the Company shall terminate with regard to the matter or claimed loss or damage,other than the payments required to reason of the impairment by the insured claimant of to matters for which prompt notice is required; provided, be made,shall terminate,including any liability or obligation Company's right of subrogation. however,that failure to notify the Company shall in no case to defend, prosecute or continue any litigation. prejudice the rights of any insured under this policy unless (b) The Company's Rights Against non-insure the Company shall be prejudiced by the failure and then only 7. DETERMINATION,EXTENT OF LIABILITY Obligors. to the extent of the prejudice. AND COINSURANCE. The Company's right of subrogation against nor insured obligors shall exist and shall include, withot 4. DEFENSE AND PROSECUTION OF ACTIONS; This policy is a contract of indemnity against actual limitation,the rights of the insured to indemnities,guarantees DUTY OF INSURED CLAIMANT TO COOPERATE, monetary loss or damage sustained or incurred by the other policies of insurance or bonds, notwithstanding an terms or conditions contained in those instruments whicl insured claimant who has suffered loss or damage by reason (a) Upon written request by the insured and subject to of matters insured against by this policy and only to the extent provide for subrogation rights by mason of this policy. the options contained in Section 6 of these Conditions and herein described. Stipulations, the Company, at its own cost and without (a) The liability of the Company under this policy shall 14. ARBTRATION. unreasonable delay, shall provide for the defense of an not exceed the least of: insured in litigation in which any third party asserts a claim (i) the Amount of Insurance stated in Schedule A; Unless prohibited by applicable law,either the Com adverse to the title or interest as insured,but only as to those or party or the insured may demand arbitration m pursuant to lh� stated causes of action alleging a defect, lien or en- (ii) the difference between the value of the insured Title Insurance Arbitration Rules of the American but are atioi cumbrance or other matter insured against by this policy.The estate or interest as insured and the value of the insured estate Association.any. tro controversy matters may include, no Company shall have the right to select counsel of its choice or interest subject to the detect,lien or encumbrance insured and limited t insured sgout or claim r between gto the oompam (subject to the right of the insured to object for reasonable against by this policy. and the arising out of or relating to this policy,am cause)to represent the insured as to those stated causes of service of the Company in connection with its issuance o action and shall not be liable for and will not pay the fees of (b) In the event the Amount of Insurance stated in the breach ofa policy provision or other obligation. Al any other counsel.The Company will not pay any fees,costs Schedule A at the Date of Policy is less than 80 percent of arbitrable matters when the Amount of Insurance it or expenses incurred by the insured in the defense of those the value of the insured estate or interest or the full $1,000,000 or less shall be arbitrated at the option of tithe consideration paid for the land, whichever is less, or if the Company or the insured.All arbitrable matters when the causes of action which allege matters not insured against by policy y subsequent to the Date of Policy an improvement is erected Amount of Insurance is in excess of$1,000,000 shall be on the land which increases the value of the insured estate arbitrated only when agreed to by both the Company and tnt (b) The Company shall have the right,at its own cost, or interest by at least 20 percent over the Amount of insured. Arbitration pursuant to this policy and under the 1 'ute and prosecute any action or proceeding or to do Insurance stated in Schedule A,then this Policy is subject to Rules in effect on the date the demand for arbitration is made a ter act which in Its opinion may be necessary or the following: or,at the option of the insured,the Rules in effect at Date o' desirable to establish the title to the estate or interest, as (i) where no subsequent improvement has been Policy shall be binding upon the parties. The award ma insured, or to prevent or reduce loss or damage to the made,as to any partial loss,the Company shall only pay the include attorneys'fees only if the laws of the state in which insured.The Company may take any appropriate action under loss pro rata in the proportion that the Amount of Insurance the land is located permit a court to award attorneys'fees to the terms of this policy, whether or not it shall be liable at Date of Policy bears to the total value of the insured estate a prevailing party.Judgment upon the award rendered by the hereunder, and shall not thereby concede liability or waive or interest at Date of Policy; or (ii) where a subsequent Arbitrator(s)may be entered in any court having jurisdiction any provision of this policy.If the Company shall exercise its improvement has been made, as to any partial loss, the thereof. rights under this paragraph, it shall do so diligently. Company shall only pay the loss pro rata in the proportion that The law of the sites of the land shall apply to an (c) Whenever the Company shall have brought an 120 percent of the Amount of Insurance stated in Schedule arbitration under the Title Insurance Arbitration Rules. action or interposed a defense as required or permitted by the A bears to the sum of the Amount of Insurance stated in A copy of the Rules may be obtained from the provisions of this policy, the Company may pursue any Schedule A and the amount expended for the improvement. Company upon request. litigation to final determination by a court of competent The provisions of this paragraph shall not apply to jurisdiction and expressly reserves the right, in its sole costs,attorneys'fees and expenses for which the Company 15. LIABILITY LIMITED TO THIS POLICY; discretion,to appeal from any adverse judgment or order. is liable under this policy,and shall only apply to that portion POLICY ENTIRE CONTRACT. (d) In all cases where this pplicy permits or requires of any loss which exceeds, in the aggregate, 10 percent of the Company to prosecute'or provide for the defense of any the Amount of Insurance stated in Schedule A. (a) This policy together with all endorsements,if any. action or proceeding, the insured shall secure to the (c) The Company will pay only those costs,attorneys' attached hereto by the Company is the entire policy and Company the right to so prosecute or provide defense in the tees and expenses incurred in accordance with Section 4 of contract between the insured and the Company.In interpret- action or proceeding,and all appeals therein,and permit the these Conditions and Stipulations. ing any provision of this policy,this policy shall be construed Company to use,at its option,the name of the insured for this as a whole. purpose.Whenever requested by the Company,the insured, 8. APPORTIONMENT. (b) Any claim of loss or damage, whether or not at the Company's expense, shall give the Company all based on negligence, and which arises out of the status of reasonable aid (i) in any action or proceeding, securing If the land described in Schedule(A)(C)consists of two the title to the estate or interest covered hereby or by any evidence,obtaining witnesses,prosecuting or defending the or more parcels which are not used as a single site,and a loss action asserting such claim,shall be restricted to this policy. action or proceeding,or effecting settlement,and(ii)in any is established affecting one or more of the parcels but not all, other lawful act which in the opinion of the Company may be the loss shall be computed and settled on a pro rata basis as (c) No amendment writing of or endorsementhreto this policy ch necessary or desirable to establish the title to the estate or it the Amount of Insurance under this policy was divided pro can hereto madeby except by a the P President, a d Vice cePr or President, interest as insured.If the Company is prejudiced by the failure rata as to the value on Date of Policy of each separate parcel Secretary,signed Assistant S Pr Lary, or, validating sidece the of the insured to furnish the required cooperation, the to the whole, exclusive of any improvements made sub- hoized i y the Compa officer or Company's obligations to the insured under the policy shall Sequent to Date of Policy, unless a liability or value has authorized signatory of Company. terminate, including any liability or obligation to defend, otherwise been agreed upon as to each parcel by the 16. SEVERABILITY. prosecute,or continue any litigation,with regard to the matter Company and the insured at the time of the issuance of this or matters requiring such cooperation. policy and shown by an express statement or by an In the even(any provision of the policy is held invalid endorsement attached to this policy. 5. PROOF OF LOSS OR DAMAGE. or unenforceable under applicable law,the policy shall be 9. LIMITATION OF LIABILITY. deemed not to include that provision and all other provisions addition to and after the notices required under shall remain in full force and effect. Si. . 3 of these Conditions and Stipulations have been (a) If the Company establishes the title,or removes the 17, NOTICES.WHERE SENT. provided the Company,a proof of loss or damage signed and alleged defect, lien or encumbrance. or cures the lack of a sworn to by the insured claimant shall be furnished to the right of access to or from the land, or cures the claim of Company within 90 days after the insured claimant shall unmarketability of title,all as insured,in a reasonably diligent AN names ie to b be given the the Company and any statement he ascertain the facts giving rise to the loss or damage. The manner by any method,including litigation and the omgle- n wbeir of this o required o to be furnished l be addressed essedato the helComuan the proof of loss or damage shall describe the defect in,or lien tion of any appeals therefrom,it shall have fully performed its iv Firs amedcann Way,and shall Ma,California 92707, or to the office or encumbrance on the title.or other matter insured against obiigations with respect to that matter and shall not be liable which issued this poky Report Date: 04/12/2006 04:24P WELD COUNTY TREASURER Page: 1 STATEMENT OF TAXES DUE SCHEDULE NO: R4759986 ASSESSED TO: LIBERTY PROPERTIES LLLP PO BOX 10 MEAD, CO 80542 LEGAL DESCRIPTION: 25583 NW4 21 3 68 (4R3RR) PARCEL: 120721000001 SITUS ADD: TAX YEAR CHARGE TAX AMOUNT INTEREST FEES PAID TOTAL DUE 2005 TAX 1,871.82 0.00 0.00 0.00 1,871.82 TOTAL TAXES 1,871.82 GRAND TOTAL DUE GOOD THROUGH 04/12/2006 1,871.82 ORIGINAL TAX BILLING FOR 2005 TAX DISTRICT 2309 - Authority Mill Lev Amount Values Actual Assessed WELD COUNTY 17.900 475.78 AGRICULTUR 66,021 19,150 SCHOOL DIST RE1J 39.982 1,062.72 AGRICULTUR 3,850 1,120 NCW WATER 1.000 26.58 AGRICULTUR 79,209 6,310 SVW WATER 0.222 5.90 LTW WATER 0.000 0.00 TOTAL 149,080 26,580 MTN VIEW FIRE(BOND 2008) 0.220 5,85 WELD LIBRARY 3.281 87.21 LONGMONT CONSERVATION 0.000 0,00 MOUNTAIN VIEW FIRE 7.817 207.78 TAXES FOR 2005 70.422 1,871,82 ALL TAX LIEN SALE AMOUNTS ARE SUBJECT TO CHANGE DUE TO ENDORSEMENT OF CURRENT TAXES BY THE LIENHOLDER OR TO ADVERTISING AND DISTRAINT WARRANT FEES. CHANGES MAY OCCUR AND THE TREASURER'S OFFICE WILL NEED TO BE CONTACTED PRIOR TO REMITTANCE AFTER THE FOLLOWING DATES: PERSONAL PROPERTY AND MOBILE HOMES-AUGUST 1, REAL PROPERTY-AUGUST 1. TAX LIEN SALE REDEMPTION AMOUNTS MUST BE PAID BY CASH OR CASHIERS CHECK. P.O. Box 458 Greeley, CO 80632 (970) 353-3845 ext. 3290 Weld County Treasurer Pursuant to the Weld County Subdivision Ordinance, the attached Statement(s) of Taxes Due, issued by the Weld County Treasurer, are evidence of the status as of this date of all property taxes; special assessments and prior tax liens attached to this (these) account(s). Current year's taxes are due but not delinquent. Signed .11/2 • Date: / / Z — C) (z, DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF LIBERTY ESTATES A PLANNED RESIDENTIAL COMMUNITY TABLE OF CONTENTS ARTICLE PAGE PREAMBLE 5 Definitions 5 Property Rights 2.01 Owner's Easements 9 2.02 Delegation of Use 9 2.03 Declarant's Easements 10 2.04 Easements for Drainage, Utilities and Other Purposes 10 2.05 Infrastructure Development Plan 10 Membership—Association 3.01 General Purposes and Powers 10 3.02 Articles and Bylaws; Applicability of the Act 11 3.03 Membership 11 3.04 Voting Interest and Allocation of Common Expenses 11 3.05 Reservation 11 3.06 Indemnification 12 3.07 Rights of the Association 12 Assessments 4.01 Creation of the Lien and Personal Obligation of the Assessment 13 4.02 Purpose of the Assessments 14 4.03 Annual Assessments 14 4.04 Maximum Annual Assessment 15 4.05 Special Assessments 15 4.06 Notice and Quorum Required to Assess a Special Assessment 15 4.07 Uniform Manner of Assessment 16 4.08 Date of Commencement of Assessments; Prorations; Due Date 16 4.09 Non-payment, Remedies of the Association 16 4.10 Capital Fund 18 4.11 Specific Approval Required 19 4.12 Reconstruction Assessments 19 4.13 Individual Assessments and Fines 19 Architectural Control Committee 5.01 Approval of Improvements Required 19 5.02 Members of ACC 20 5.03 Decision of ACC 20 5.04 Criteria for Approval 20 5.05 Appeal to the Executive Board 20 2 5.06 Failure of ACC to Act on Plans 21 5.07 Noncompliance 21 5.08 No Implied Waiver 21 5.09 Nonliability for Committee Action 21 5.10 Basic Specifications 22 5.11 Architectural Standards/Design Guidelines 26 Restrictive Covenants 6.01 General Plan 26 6.02 Use of Properties 26 6.03 General Restrictions 26 6.04 Prohibited Uses 26 6.05 Construction Facilities 26 6.06 Destruction of Residences on Units 27 6.07 Household Pets 27 6.08 Miscellaneous Improvements 27 6.09 Vehicular Parking, Storage and Repairs 28 6.10 Nuisances 29 6.11 No Hazardous Activities 29 6.12 No Annoying Sounds or Odors 29 6.13 Restrictions on Trash and Materials 29 6.14 Minor Violations of Setback Restrictions 30 6.15 Rules and Regulations 30 6.16 Units to be Maintained 30 6.17 Maintenance of Grade and Drainage 30 Insurance 7.01 Coverage 31 7.02 Physical Damage Insurance 32 7.03 Rebuilding of Damaged Areas 33 7.04 Liability Insurance 33 7.05 Other Insurance 34 7.06 Payment of Insurance Premiums 34 7.07 Coverage on Owner's Units 34 Rights of the First Mortgagees 8.01 Entitlement 35 8.02 Payment of Charges 35 8.03 Restrictions 35 8.04 Special GNMA/FHLMC/HUD/VA/FHA Provisions 36 General Provisions 9.01 Enforcement 37 9.02 Damages 37 9.03 Duration 37 9.04 Amendments 37 3 9.05 Scope of This Declaration 38 9.06 No Representation 38 9.07 Books and Records 38 9.08 Successors and Assigns 38 9.09 Severability 38 9.10 Numbers and Genders 38 9.11 Designation of Maintenance Property 38 9.12 Registration of Mailing Address 39 9.13 Description of Units 39 se— DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LIBERTY ESTATES PREAMBLE THIS DECLARATION, made on the date hereinafter set forth, by Liberty Estates, LLLP, a limited liability company, hereinafter referred to as "Declarant". WHEREAS, Declarant is the owner of certain real property located in the County of Weld, State of Colorado, hereinafter referred to as "Properties" and as more particularly described on Exhibit A attached hereto and incorporated herein by reference; WHEREAS, Declarant has previously rezoned the properties to Residential and Commercial in the County of Weld, Colorado, and WHEREAS, Declarant desires to subject and place upon the Properties certain covenants, conditions, restrictions, easements, reservations, rights-of-way, obligations, liabilities and other charges set forth herein for the purpose of protecting the value and desirability of said property and for the purpose of furthering a plan for the improvement, sale and ownership of said property as a planned community to the end that a harmonious and attractive development of said property may be accomplished and the health, comfort, safety, convenience and general welfare of owners in said property, or any portion thereof, may be promoted and safeguarded. NOW, THEREFORE, Declarant hereby declares that the Properties described herein shall be held, sold, and conveyed subject to the following easements, covenants, conditions, restrictions, uses and obligations, all of which are to be for the purpose of protecting the value and desirability of the Properties described and which shall be binding upon all persons having any right, title or interest in the described Properties or any part thereof, their heirs, grantees, successors, representatives and assigns and shall insure to the benefit of each owner thereof and that the common interest community formed hereunder shall be formed as a planned community. ARTICLE 1 Definitions As used in this Declaration, unless the context otherwise requires, the terms hereinafter set forth shall have the following meanings: 5 1.01 Act"means the Colorado Common Interest Ownership Act, C.R.S. 38-33.3- 101, et seq., as amended. 1.02 "Affiliate of a Declarant" means any person who controls, is controlled by, or is under common control with a Declarant. A person controls a Declarant if the person: is a general partner, officer, director or employee of the Declarant; directly or indirectly, or acting in concert with one or more other persons or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than twenty percent (20%) of the voting interests of the Declarant; controls in any manner the election of a majority of the directors of the Declarant, or has contributed more than twenty person (20%) of the capital of the Declarant. A person is controlled by a Declarant if the Declarant: is a general partner, officer, director or employee of the person; directly or indirectly, or acting in concert with one or more other persons or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than twenty percent(20%) of the voting interests of the person; controls in any manner the election of a majority of the directors of the person; or has contributed more than twenty percent (20%) of the capital of the person. Control does not exist if the powers described in this subsection are held solely as security for an obligation and are not exercised. 1.03 "Allocated Interests"means the Common Expense Liability and votes in the Association allocated to each Unit. The Allocated Interest for each Unit shall be a fraction, the numerator of which is one (1) and the denominator of which is the total number of Units then within the Common Interest Community; provided that the Allocated Interest for each Unit is subject to decrease with the annexation of additional property to this Common Interest Community as provided in Section 38-33.3-221 of the Act. 1.04 "Architectural Control Committee" or"ACC"means the committee appointed by the Declarant or by the Association to review and approve or disapprove plans for Improvements, as more fully provided in this Declaration. 1.05 "Association" shall mean Liberty Estates Homeowners' Association, a Colorado Corporation, its successors and assigns. 1.06 "Builder"means any person or entity who constructs a residential dwelling unit on any previously unimproved Unit within the Property. 1.07 "Bylaws" shall mean any instrument which is adopted by the Association for the regulation and management of the Association, including any amendments to these instruments. 1.08 "Common Areas" shall mean and refer to the property and improvements, together with all roads, streets, fences, rights-of-way and easements located within the Properties which are to be owned and/or maintained by the Association for the common use, benefit and enjoyment of the Unit Owners. Common Areas 6 known at the time of the execution of this Declarant are described on Exhibit B attached hereto. Additional improvements or property may be added as Common Areas as approved by the Executive Board for the Association and as shown on a recorded map which shows such additional Common Areas. 1.09 "Common Interest Community" or"Planned Community" means real estate described in this Declaration, as supplemented and amended from time to time, with respect to which a person, by virtue of such person's ownership of a Unit, is obligated to pay for real estate taxes, insurance premiums, maintenance or improvement of other real estate described in this Declaration. 1.10 "Declarant" shall mean Liberty Estates, LLLP, a Colorado corporation, and its successors or assigns, if such successors or assigns shall acquire any portion of the Properties described for the Purpose of development and be designated by the Declarant or a successor Declarant, as a Declarant by a duly recorded written instrument. Any such written designation by the Declarant may include the right of redesignation by such successor or further successors. 1.11 "Declaration" shall mean this Declaration of Covenants, Conditions and Restrictions of Liberty Estates as same may be amended from time to time. 1.12 "Development Rights"means any right or combination of rights reserved by Declarant hereunder including the following: (a)To add real property to be covered under the terms of this Declaration; (b)To create additional Units, Common Areas within the real property covered under the terms of this Declaration; (c)To withdraw real estate from being subject to the terms of this Declaration. 1.13 "Executive Board" shall mean the Executive Board of the Association, duly elected pursuant to the Bylaws of the Association or appointed by the Declarant as therein provided or provided in this Declaration. 1.14 "First Mortgage" shall mean any person, corporation, partnership, trust, company, association, or other legal entity which owns, holds, insures or is a governmental guarantor of a mortgage or deed of trust, which mortgage or deed of trust is a first and prior lien encumbering a Lot or Parcel within the Properties described. 1.15 "Lot" shall mean and refer to any plot of land shown upon any recorded subdivision plat or later amended plats of a subdivision as a subdivided lot within the Properties and which is subject to this Declaration, with the exception of the Common Areas, Maintenance Property, public streets or other public property. Lot shall include any dwelling Unit or structure constructed thereon. 7 1.16 "Maintenance Property" shall mean that portion of the Properties described, including all improvements thereon, owned or to be owned by the Association upon which the Association has responsibility for maintenance as more fully described on Exhibit C attached hereto and incorporated herein by reference or which is included as Maintenance Property in a later amended Declaration for this Common Interest Community. As more specifically set forth in Article IX, Section 9.11, hereinbelow, the Maintenance Property does not have any intrinsic recreational value. 1.17 "Member" shall mean all those who are members of the Association as provided in this Declaration. 1.18 "Plat" shall mean the Amended Plat of Liberty Estates, a copy of which is being recorded simultaneously herewith. 1.19 "Properties" shall mean the entire real property and the improvements located thereon as more fully described on Exhibit A attached hereto. 1.20 "Security Interest" means an interest in real estate or personal property created by contract or conveyance which secures payment or performance of an obligation. The terms includes a lien created by a mortgage, deed of trust, trust deed, security deed, contract for deed, land sales contract, lease intended as security, assignment of lease or rents intended as security, pledge of an ownership interest in an association, and any other consensual lien or title retention contract intended as security for an obligation. 1.21 "Special Declarant Rights"means rights reserved for the benefit of Declarant to complete improvements indicated on plats and maps filed with the Declaration; to exercise any development right; to maintain sales offices, management offices, signs advertising the Common Interest Community, and models; to use easements through the common elements for the purpose of making improvements within the Common Interest Community or within real estate which may be added to the Common Interest Community; to make the Common Interest Community subject to a master association; to merge or consolidate a Common Interest Community of the same form of ownership; or to appoint or remove any officer of the association or any Executive Board member during any period of Declarant control. 1.22 "Unit"means a physical portion of the Common Interest Community which is designated for separate ownership or occupancy as a Lot and the boundaries of which are described in or determined from the recorded subdivision plats within the Properties. 1.23 "Unit Owner, Lot Owner or Owner" means the Declarant or other person who owns a Unit, but does not include a person having an interest in a Unit solely 8 as security for an obligation. The Declarant is the owner of any Unit created by the Declaration until that Unit is conveyed to another person. ARTICLE II Property Rights 2.01 Owner's Easements. Every Unit Owner shall have the nonexclusive right and easement of use and enjoyment in and to any Common Areas related to this Declaration (hereinafter referred to as Common Areas) and the benefit from Maintenance Property located within or adjacent to the Properties and improvements thereon, which shall be appurtenant to and shall pass with the title to every Lot, subject to the following provisions: (a)The right of the Executive Board to charge reasonable admission and other fees for the use of any recreational facility situated upon the Common Areas or Maintenance Property; (b)The right of the Association through its Executive Board to make such use of the common Areas or Maintenance Property as may be necessary or appropriate for the performance of its duties and functions which it is obligated or permitted to perform under this Declaration; (c)The right of the Executive Board, in its sole discretion, to grant easements and rights of way on, across, under and over the Common Areas or Maintenance Property to any entity providing water, sewer, gas, electricity, telephone, cable television, or other similar service to the Properties; (d)The right of the Executive Board to make reasonable rules and regulations regarding the use and upkeep of the Common Areas or Maintenance Property and facilities located therein; (e)The right of the Executive Board to dedicate or transfer all or any part of the Common Areas or Maintenance Property to any public agency, authority, or utility for such purposes and subject to such conditions as may be agreed to by the Members. No such dedication or transfer shall be effective unless an instrument agreeing to such dedication or transfer signed by two-thirds of the Members has been recorded; (0 The right of the Association to close or limit the use of the Common Areas or Maintenance Property or portions thereof for any reasonable purpose; provided, however, the Association shall not deny a Unit Owner ingress or egress to that Owner's Unit. 2.02 Delegation of Use. Any Owner may delegate his or her right of enjoyment of the Common Areas or Maintenance Property to members of his family, his 9 tenants, contract purchasers or guests. All Owners shall comply strictly with and cause all family members, tenants, purchasers or guests to comply with this Declaration, the Articles of Incorporation, the Bylaws of the Association, and the decisions, rules, regulations and resolutions of the Association. Each Owner shall be fully responsible for the actions of their guests. 2.03 Declarant's Easements. Easements are hereby reserved to the Declarant in and to the Common Areas and Maintenance Property as may be reasonably necessary for the purpose of discharging any of the Declarant's obligations or exercising any Special Declarant Rights. 2.04 Easements for Drainage, Utilities and Other Purposes. Easements for the installation and maintenance of utilities, drainage facilities, pedestrian walkways, landscaped areas, planned community identifying signage and miscellaneous public or private improvements and access thereto are reserved as shown on the recorded plats affecting the Units and any amendments to such plats or as established by any other instrument or record. 2.05 Infrastructure Development Plan. The initial infrastructure improvements being constructed and/or installed by the Declarant are limited to: (a)Such streets, general utility connections, distribution lines, and other improvements as are reasonably required to furnish any Lots in Liberty Estates with water, electrical, natural gas and telephone service. Declarant expressly DISCLAIMS any and all warranties and representations, express or implied, regarding the date upon which the remainder of any infrastructure improvements as depicted on the plat of Liberty Estates will, IF EVER, be completed. The foregoing disclosure of Declarant's infrastructure development plan is provided for informational purposes only. It is specifically intended that nothing contained in this Declaration shall have the effect of either altering, amending, modifying, accelerating or otherwise increasing any liability or obligation of Declarant in connect with the construction of any streets, utility improvements, drainage facilities or other general infrastructure improvements required to be installed pursuant to any annexation or development agreement with Weld county, Colorado, or by applicable statutes and any rules, regulations or other requirements of governmental authorities having jurisdiction. ARTICLE III Membership —Association 3.01 General Purposes and Powers. The Association, through the Executive Board, shall perform management functions as provided in this Declaration. Any purchaser of a Unit or a parcel within the Properties shall be deemed to have assented to, ratified and approved such designations and management. The 10 Association shall have all the power necessary or desirable to effectuate such purposes. 3.02 Articles and Bylaws: Applicability of the Act. The purposes and powers of the Association and its rights and obligations set forth in this Declaration may be amplified by provisions of the Articles of Incorporation and Bylaws of the Association. In the event either the Articles or Bylaws conflict with the Declaration, the Declaration shall control. In the event the Articles conflict with the Bylaws, the Articles shall control. In all cases, however, the provisions of the Colorado Common Ownership Act shall govern in the event of any conflict between the provisions of either this Declaration or the Articles of Incorporation and Bylaws of the Association. 3.03 Membership. Every record Owner of a fee interest in any Unit which is subject to an Annual Assessment shall be a Member of the Association, including contract sellers; provided that any person or entity who holds such interest merely as a security for the performance of an obligation shall not be a Member. Record ownership of a Unit shall be the sole qualification for such membership. Where more than one person holds interest in any Unit, all such persons shall be Members in proportion to their share of ownership in the Unit. If only one of the multiple Owners is present at any meeting of the Association where Members are entitled to cast their votes, such Owner is entitled to cast the entire vote for such Unit. If more than one Owner is present, the vote for such Unit may be cast only in accordance with the agreement of a majority in interest of the Owners with a majority agreement in existence if one Owner casts the vote without protest being made promptly by any of the other Owners of said Unit. 3.04 Voting Interest and Allocation of Common Expenses. The Association shall have one class of voting memberships. Members shall be all Owners and shall be entitled to one vote for each Unit owned. The vote for such Unit, the ownership of which is held by more than one Owner, shall be exercised as they determine between themselves. Should the joint owners be unable, within a reasonable time, to agree upon how they will vote any issue, they shall be passed over and the right to vote on such issue shall be lost. In no event shall more than one vote be cast with respect to any one Unit. Each Unit shall have allocated to it a percentage of the common expenses of the Association and voting interest equivalent to one Unit in relation to the total number of Units. Units owned by Declarant shall not receive any special benefit relating to assessments or voting rights. If any additional Units are added so as to be covered by this Declaration, each Unit's obligation for assessments and its related voting rights shall be proportionately reduced. 3.05 Reservation. Notwithstanding the foregoing voting rights, Declarant reserves the right to appoint the Executive Board of the Association until the occurrence of one of the following events: 11 (a)Within sixty (60) days after conveyance to Unit Owners other than a Declarant, of seventy-five percent (75%) of the Units which may be created, within two (2) years after the last conveyance of a Unit by the Declarant in the ordinary course of business or within two (2) years after any right to add new Units was last exercised, all members of the Executive Board must be elected by Unit Owners and no members may be appointed by Declarant. In addition, Declarant may voluntarily surrender the right to appoint members of the Executive Board, but in such event, may continue to require Declarant's approval for certain specified actions as described in a recorded instrument executed by Declarant at such time. For the purposes of this Declaration, the maximum number of Units which shall be subject to the provisions hereunder and which the Declarant reserves the right to create shall be one hundred thirty five (135). Declarant reserves the right at any time within ten (10) years from the date this Declaration is recorded, to add additional real property to this Common Interest Community. 3.06 Indemnification. The Association shall indemnify every director, officer, agent, or employee, and any former director, officer, agent or employee against loss, costs, and expense, including reasonable attorney fees incurred in connection with any action, suit, or proceeding in which such person may be made a party by reason of being, or having been such director, officer, agent or employee of the Association or Executive Board. This indemnification shall not apply to acts where such person is liable for gross negligence or fraud. Any such indemnification may only be paid out of the insurance coverage furnishing Officers and Directors of the Association errors and omissions insurance coverage or similar coverage. All payments or settlements of this indemnification shall be limited to the actual proceeds of insurance policies received by the Association, however, any deductible shall be paid by the Association. Said indemnification shall not apply to any managing agent hired by the Association as an independent contractor. 3.07 Rights of the Association. (a)Association as Attorney-in-Fact for Owners: The Executive Board is hereby irrevocably appointed attorney-in-fact for the Owners, and each of them, to manage, control and deal with the interest of such Owner so as to permit the Association to fulfill all of its duties and obligations hereunder. The Executive Board is granted all of the powers necessary to govern, manage, maintain, repair, administer and regulate in order to accomplish its purposes under this Declaration. (b)Contracts, Licenses and Other Agreements: The Executive Board shall have the right without the consent of Owners or First Mortgagees to enter 12 into or grant contracts, easements, licenses, leases and agreements, concerning the use of Common Areas and Maintenance Property and any improvements located thereon. (c)Implied Rights: The Executive Board shall have and may exercise any right or privilege given to it expressly by this Declaration, or reasonably implied from the provisions of this Declaration, or given or implied by law, including those established by the Colorado Common Interest Ownership Act, or which may be necessary or desirable to fulfill its duties, obligations, rights or privileges. (d)General Authority: The Association through the Executive Board shall provide for the maintenance and uniform development of the areas which are common to the entire Properties such as right-of-way landscaping, fencing, lighting and signage on certain streets. In addition, the Association is established to provide review for each Lot or Unit within the Properties to insure that general conformance exists with respect to certain architectural and landscaping matters, and also to carry out overall community goals, for instance, by way of example, collection of garbage; recycling; distribution of information; and to carry out other functions which the Executive Board feels is in the general interest of all Unit Owners. (e)Management Agreements: Any agreement for professional management of the Association's business or an Affiliate of the Declarant shall have a maximum term of three (3) years and any such agreement shall provide for termination by either party thereto, with or without cause and without payment of a termination fee, upon not more than ninety (90) days' prior written notice and shall terminate absolutely, in any event, no later than thirty(30) days after termination of the Period of Declarant Control. ARTICLE IV Assessments 4.01 Creation of the Lien and Personal Obligation of the Assessment. The Declarant for each Unit owned, within the Properties, hereby covenants, and each Owner of any Unit by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association an Annual Assessment, and Special Assessments to be established and collected as provided hereinafter. The Annual and Special Assessments created and defined in this Declaration, together with late fees, individual assessments, interest, costs, and reasonable attorneys fees shall be a charge on the Unit they are levied against and shall be a continuing lien upon the property against which each such Assessment is levied until such Assessment or charge, together with any late fees, costs of collection, and attorneys fees are fully paid. Each such Assessment, 13 together with late fees, interest, costs and reasonable attorney's fees are fully paid. Each such Assessment, together with late fees, interest, costs and reasonable attorney's fees shall also be a personal obligation of the person who was the Owner of such Unit or of the persons jointly and severally, who were the Owners of such Unit at the time when the Assessment became due and payable. The personal obligation for delinquent Assessments shall not pass to successors in title unless expressly assumed by them. 4.02 Purpose of the Assessments. The Assessments levied by the Association shall be used exclusively for the purpose of promoting the recreation, health, safety and welfare of the residents of the Properties and the Members of the Association. In addition, said Assessments may be used for the maintenance, repair and improvement of the Common Area and landscaping thereon, for the maintenance and repair of any fencing installed by either Declarant or the Association, or for maintenance, repair and improvement of the Maintenance Property or any other properties or improvements located on or adjacent to the Properties which is the responsibility of the Association, for payment of management fees, payment of insurance premiums, payment of legal, accounting and other professional services provided for the benefit of the Association, maintenance of an adequate reserve fund for repair and maintenance of Common Areas and Maintenance Property, for payment of utility charges of the Association, for the maintenance and repair of entry features, if any, constructed by Declarant, and for other expenses incurred by the Executive Board for the benefit of the Association and its members. Also, the Assessments may be used for any other purposes reasonably necessary to implement the purposes described herein, including the ability of the Association to perform acts under Section 3.07 above. 4.03 Annual Assessments. (a)Annual Assessment for Common Expenses; Allocation Amongst Unit Owners. An Assessment for common expenses shall be levied and assessed annually by the Executive Board against each Owner of a Unit with the planned community. Said Assessment may include the establishment and maintenance of a reserve fund for the maintenance, replacement, reconstruction and repair of those portions of the Common Areas and Maintenance Property which the Association has a duty to replace, repair, maintain and/or reconstruct on a periodic basis. Such Assessment shall be paid in the proportion which the number of Units owned by a particular Owner bears to the total number of Units which have been established by the recording of a subdivision plat or plats. (b)Levy of Assessments. At least thirty(30) days prior to the close of the Association's fiscal year, the Executive Board shall determine subject to the provisions of this Declaration, the Annual Assessment which is payable by each Unit. The Annual Assessment may be later adjusted upon 14 a finding of necessity by the Executive Board, but no more than twice in any one year. Written notice of any such Assessment or adjustment shall be sent to every Owner as such Owners are listed in the records of the Association. The omission or failure of the Board to levy any Assessment or fail to send notice shall not be deemed a waiver, modification or a release of the Owners from their obligation to pay the Assessment. (c)Non-exemption. No Owner or any person obligated to pay an Assessment may waive or otherwise escape liability for any Assessments provided for herein by non-use of the Common Areas and Maintenance Property, abandonment of his or her Unit, or by any other action. 4.04 Maximum Annual Assessment and Budget. (a)Until the effective date of an Association budget ratified by the Unit Owners with a different amount for the Annual Assessment, the maximum Annual Assessment shall be $1000.00 per Unit. (b)Within thirty(30) days after adoption of any proposed budget for the Common Interest Community, the Executive Board shall mail, by ordinary first-class mail, or otherwise deliver a summary of the Association budget to all the Unit Owners and shall set a date for a meeting of the Unit Owners to consider ratification of the budget not less than fourteen (14) days nor more than forty five (45) days after mailing or other delivery of the summary. Unless at that meeting the Unit Owners casting at least sixty-seven percent(67%) of the Association votes reject the budget, the budget is ratified, whether or not a quorum is present. In the event that the proposed budget is rejected, the periodic budget last ratified by the Unit Owners must be continued until such time as the Unit Owners ratify a subsequent budget proposed by the Executive Board. 4.05 Special Assessments. In addition to the Annual Assessments authorized above, the Executive Board may levy a Special Assessment for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of any of the Common Areas and Maintenance Property or other capital improvements of the Association, provided that any such Assessment shall have the assent of at least twenty percent (20%) of the votes of the Members who are voting in person or by proxy at a meeting duly called for this purpose. This requirement shall not apply to expenditures made by the Executive Board for repairs in the event of damage or destruction as set forth in Article VII of this Declaration. 4.06 Notice and Quorum Required to Assess a Special Assessment. Written notice of any meeting of Members called for the purpose of levy of a Special Assessment shall be sent to all Members not less than thirty days nor more than sixty days in advance of the meeting. At such meeting, the presence of Members 15 or of proxies entitled to cast twenty percent (20%) of all the votes of the Membership shall constitute a quorum. 4.07 Uniform Manner of Assessment. All Annual Assessments and Special Assessments must be fixed at a uniform rate for all Units. In addition, at the option of the Executive Board, any Assessment, either Annual or Special, may be collected on a monthly quarterly basis. 4.08 Date of Commencement of Assessments; Prorations; Due Date. The Annual Assessment provided for herein shall commence as to all Units upon the later to occur of either: (1) the first day of the month following the conveyance of the first Unit by Declarant to a third party. The Declarant shall pay all common expenses accrued prior to the date upon which the Association makes an Annual Assessment for the first time. Thereafter, the Declarant shall be liable only for the Annual Assessment due upon those units owned by it. The initial Annual Assessment due with respect to all Units shall be prorated according to the number of months remaining in the Association's fiscal year at the time of said initial assessment. Thereafter, any Unit Owner purchasing a Unit between payment due dates shall pay a pro rata share of the last payment due. The Annual Assessment shall be due and payable on an installment basis as determined by the Executive Board. Special Assessments shall be due and payable in a manner as established by the Executive Board but may be payable on an installment basis, as so determined by the Executive Board. Written notice of all Assessments shall be sent to each Owner subject thereto specifying the type of Assessment, the amount and the date such Assessment is due. The Association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an Officer of the Association setting forth whether the Assessments on a Unit have been paid or the amount of Assessment currently owing with respect to a Unit. The Association, the Executive Board, the Officers and the Members shall have no liability for any inaccurate information supplied under this paragraph other than as specifically set forth in C.R.S. 38-33.3-317(8). 4.09 Non-payment, Remedies of the Association, Lien Priorities. (a)All types of Assessments shall become delinquent unless paid by the due date. If any such Assessment is not paid by the due date, the Owner obligated to pay such Assessment may be required to pay a reasonable late fee, as determined by the Executive Board. Any Assessment not paid within thirty(30) days after the due date, shall bear interest from the due date at the rate of 18% per annum. The failure to make payment within sixty(60) days of the due date thereof shall cause the total amount of such Owner's Annual Assessment for the remainder of that fiscal year to become immediately due and payable at the option of the Executive Board, without further notice. 16 (b)The Association may bring an action at law or equity against the Owner obligated to pay the Assessment or undertake any other remedies allowed by law. In the event it shall become necessary for the Executive Board to collect any delinquent Assessments in any manner, the delinquent Owner shall pay, in addition to the Assessment, interest and late fees as herein provided, all costs of collection including reasonable attorneys fees and costs incurred by the Association. (c)The Association is hereby granted a continuing lien against an Owner's Unit for payment of any Assessment which the Owner fails to make as required by this Declaration. Such lien shall attach at the time of levy of the Assessment and continue until such Assessment, together with all late fees, interest and costs of collection, including reasonable attorneys' fees, are paid in full. The lien hereby given shall also be a lien upon all of the rents and profits or the encumbered Unit. (d)The lien hereunder may be foreclosed upon by the Association as provided by the laws of the State of Colorado for foreclosure of mortgages and deeds of trust on real property. The Association shall have all rights in this regard as provided by the Colorado Revised Statutes. (e)Subject to the rights of a first mortgages, except as such rights are modified by the Colorado Common Interest Ownership Act; if a foreclosure action is filed to foreclose any Assessment line, and an Owner abandons or leaves vacant his or her dwelling Unit, the Executive Board may take possession and rent said dwelling Unit or apply for the appointment of a receiver for the dwelling Unit without prior notice to the Owner. (0 In the event an Owner is in default on any obligation secured by an encumbrance on a Unit in the planned community, the Executive Board, at its option, may pay the amount due on said obligation and shall have a lien for said amount against the Unit which lien shall attach in the manner as provided for unpaid Assessments. (g)The lien of all Assessments created and defined by the Declaration shall be superior to any homestead exemption as is now or may hereafter be provided by Colorado or Federal law. The acceptance of a deed to a Lot or Unit subject to this Declaration shall constitute a waiver of the homestead exemption as against such lien described hereunder. (h)In the event any lien is required to be filed and released to enforce collection hereunder, all costs of preparation, filing and release shall be paid by the Owner as a cost of collection. 17 (i) A lien under this Article IV is prior to all other liens and encumbrances on a Unit except: (1) Liens and encumbrances recorded before the recordation of the Declaration; (2) A Security Interest on the Unit which has priority over all other Security Interests on the Unit and which was recorded before the date of which the assessment sought to be enforced became delinquent, or which has priority over all other Security Interests on the Unit and which was perfected before the date of which the assessment sought to be enforced became delinquent; and (3) Liens for real estate taxes and other governmental assessments or charges against the Unit. A lien under this Article IV is also prior to the Security Interests described in subparagraph (2) above of this paragraph(i) to the extent of: (1) An amount equal to the Annual Assessments based on a periodic budget adopted by the Association pursuant to Section 4.04 of this Article IV which would have become due, in the absence of any acceleration, during the six months immediately preceding institution of an action to enforce the lien, but in no event shall the priority accorded to such lien exceed one hundred fifty percent of the average monthly assessment during the immediately preceding fiscal year multiplied by six; (2) Attorney fees and costs being incurred in an action to enforce the lien. This subsection(i) does not affect the priority of mechanics' or material men's liens or the priority of liens for other assessments made by the association. 4.10 Capital Fund. The Association may establish a Capital Fund with each Unit being obligated to make a contribution to said fund of up to twenty-five percent (25%) of the Annual Assessment applicable at the time of payment with respect to said Unit. If the fund is established, each such nonrefundable contribution shall be collected and the amount established at the closing of the initial sale of such Unit and such amount collected shall be maintained for the use and benefit of the Association and shall not be considered a payment of Annual Assessment. Said Fund shall be utilized at the discretion of the Executive Board to meet unforeseen expenses, to acquire capital equipment or provide any additional services to benefit the Association including payment of costs and expenses incurred in the enforcement of provisions of this Declaration. Upon the transfer of a Unit, a Unit Owner shall be entitled to a credit from the transferee (but not from the Association) for the aforesaid contribution to the Capital Fund. 18 4.11 Specific Approval Required. In the event prior approval of a Special Assessment, fine or any increased Annual Assessment is required by the Federal Housing Authority, the Veterans Administration or similar agency because sale of portions of the Properties are financed by such agencies, written consent of such agency is also required. 4.12 Reconstruction Assessments. In accordance with Article VII of this Declaration, the Association shall have the authority to impose and levy a Reconstruction Assessment against all Units for reconstruction of Common Areas or Maintenance Property and for payment of insurance premiums. Said Assessment shall be prorated among Owners in the same manner and proportion as the Annual Assessment. 4.13 Individual Assessments and Fines. An Individual Assessment may be assessed by the Executive Board as allowed in this Declaration and/or the Colorado Common Ownership Interest Act against any Owner or Owners. Said Assessment shall be made only after twenty(20) days written notice to the Owner or Owners to be assessed, the opportunity to the Owner for hearing before the Executive Board, and a vote of two-thirds of a quorum of the Board levying said assessment. A fine may be assessed by the Executive Board against an Owner or Owners for each violation of the Declaration, the Articles, the Bylaws and the Rules and Regulations. Said fine shall be assessed by complying with the procedure for Individual Assessment set forth above. ARTICLE V Architectural Control Committee 5.01 Approval of Improvements Required. No improvements shall be constructed, erected, placed, planted, applied or installed upon any Unit unless plans and specifications therefore (said plans and specifications to show exterior design, height, materials, color, and location of the improvements, and type of landscaping, fencing, walls, windbreaks and grading plan, as well as such other materials and information as may be required by the Architectural Control Committee) shall have been first submitted to and approved in writing by the Architectural Control Committee (hereinafter the "ACC"); provided, however, that the Declarant shall be exempt from seeking or obtaining ACC approval during Declarant's development of, construction on, or sales of any Unit or residences on any Unit. The ACC shall exercise its reasonable judgment to the end that all improvements conform to and harmonize with the existing surroundings, residences, landscaping and structures. In its review of such plans, specifications and other materials and information, the ACC may require that the applicant(s) reimburse the committee for the actual expenses incurred by the committee in the review and approval process. Such amounts, if any, shall be levied in addition to the Annual Assessment against the Unit for which the request 19 ^- for ACC approval was made, but shall be subject to the Association's lien for assessments and subject to all other rights of the Association for the collection of such assessments, as more fully provided in this Declaration. 5.02 Members of ACC. The ACC shall consist of three persons. Declarant shall have the right to appoint and reappoint the members, who need not be Owners, until all of the Units have been conveyed to the first Unit Owner thereof(other than Declarant or a Builder). In addition, Declarant may terminate its right of appointment by providing written notice to the Executive Board or the Secretary of the Association. Thereafter members shall be appointed by the Executive Board or the Secretary of the Association. Thereafter members shall be appointed by the Executive Board for three year terms except terms for the initial ACC appointed by the Executive Board shall be one year for one member and two years for one member and three years for one member. All members appointed by the Board to the ACC must be Owners and shall not be entitled to any compensation for their service. 5.03 Decision of ACC. The decision of the ACC shall be made within thirty(30) days after receipt of all materials and plans required to be submitted to the ACC. The decision shall be in writing and, if the decision is not to approve a proposed improvement, the reasons therefore shall be stated. The decision shall be promptly mailed to the applicant at the address furnished by the applicant. A majority vote of the ACC shall constitute action by the ACC. In the event of a tie vote, the request shall be treated as having been denied. 5.04 Criteria for Approval. The ACC shall have the right to disapprove any application which is not suitable or desirable for aesthetic or other reasons, and the ACC shall have the right to take into consideration the suitability of the proposed improvement, the materials of which it is to be built, the color, the site upon which it is proposed to erect the same, the harmony thereof with the surroundings, the topography of the land, the effect of the proposed improvement on adjacent or neighboring property, and if the improvement is in accordance with all of the provisions and intent of this Declaration, the Basic Specifications set forth in Section 5.10, herein below, and the design guidelines to be adopted under Section 5.11 hereinafter set forth. The application may be rejected if the plans and specifications submitted are incomplete. The ACC may condition its approval of any application upon such terms, conditions and changes as the ACC may deem appropriate. 5.05 Appeal to the Executive Board. If the ACC denies approval of a proposed improvement, the applicant may appeal to the Executive Board by giving written notice of such appeal to the Executive Board within ten (10) days after such denial. The Executive Board shall hear the appeal with reasonable promptness after reasonable notice of such hearing to the applicant and the ACC and shall decide, with reasonable promptness, whether or not the request shall be approved. The decision of the Executive Board shall be final and binding upon all parties. 20 In the event the ACC is not properly formed or ceases to exist, all functions of the ACC shall be taken over by the Executive Board. 5.06 Failure of ACC to Act on Plans. Any request for approval of a proposed improvement shall be deemed approved, unless written disapproval is mailed to the applicant within thirty(30) days after the date of receipt by the ACC of all necessary materials as determined by the ACC. Any failure of the ACC to act under this Section shall not be deemed a waiver of any right to withhold approval or consent for a similar proposal submitted in the future. 5.07 Noncompliance. If the Board or ACC finds that any improvement has been done without obtaining the necessary approval under this Article, or was not done in compliance with the plans and specifications furnished by the applicant, the applicant shall be notified in writing of the noncompliance. Upon receipt of said notice, the applicant shall remedy or remove the improvement or portion which is in noncompliance within fifteen (15) days of the date the written notice of noncompliance was mailed. The applicant may appeal a notice of noncompliance within ten (10) days of the mailing of the notice by filing a written request for review with the Executive Board. Upon receipt of said written notice of review, the Board shall decide as soon as reasonably possible whether there has been noncompliance, with the decision of the Board being binding on all parties. In reviewing this matter, the Board may review any information it deems pertinent and request that any additional materials be supplied for its review. In the event the applicant or any Owner fails to remedy any noncompliance, the Board may take any and all steps it deems necessary to effectuate such a remedy or to remove the noncompliance including all rights under law. The Board may remove the noncomplying improvement from the property and assess the costs of removal against the Owner. In addition, the Board may, at its discretion, levy a fine or individual Assessment against said Owner for all costs and expenses incurred, including reasonable attorney's fees in the matter or in the removal of any noncomplying improvement. 5.08 No Implied Waiver. No action by the ACC or by the Executive Board shall constitute a waiver or be binding with respect to future action by the ACC or the Executive Board under this Article. Specifically, no approval or failure to act by the ACC or the Board with respect to any request shall be deemed a waiver of any right to withhold approval or consent for any other proposed improvement or for any other similar proposals. 5.09 Nonliability for Committee Action. No member of the ACC, nor any member of the Executive Board nor the Declarant shall be liable for any loss, damage or injury arising out of or in any way connected with the performance of 21 the duties of the ACC or Executive Board unless it be due to the willful misconduct or bad faith of the party to be held liable. In reviewing any matter, the ACC shall not be responsible for reviewing, nor shall its approval of an improvement or plan to be deemed approval from the standpoint of safety, or imply that said improvement is in conformance with building codes or other governmental laws or regulations. 5.10 Basic Specifications. The following basic specifications, requirements and restrictions (hereinafter"Basic Specifications") shall apply to the construction, repair, replacement or other installment of any improvement, as more particularly described in Section 5.01 hereinabove, upon any Unit: (a) Building Envelope, Site Orientation and Planning. (1) Building Envelope for Lots (A) Minimum front yard setback =thirty(30') feet from the street right-of-way. (B) Minimum side yard setback=ten (10') feet from the side property lines. (C) Minimum back yard setback=thirty feet (30') feet from the rear property line. (2) Preservation of views for one lot adjoining another is desirable. (b) Principal Dwelling Size and Configuration. (1) All dwelling units shall have a minimum of 2500 square feet for single story and 3000 square feet for two story of living area exclusive of one-story open patios, breezeways, porticoes, lofts, decks, stoops, porches, porte cocheres, balconies, crawl spaces, basements and garages. (2) The ground floor area of a two-story dwelling shall not be less than 1800 square feet exclusive of one story open patios, porticoes, breezeways, porches, stoops, porte cocheres, balconies, decks, lofts, crawl spaces, basement and garages. (3) The maximum height of any dwelling unit shall not exceed thirty-five feet measured from the lowest point of the building envelope. (4) All dwelling units shall have a three-car attached garage. In addition, a detached garage may be allowed for additional storage if such meets with the approval of the ACC. (5) One oversized garage per dwelling unit may be allowed for the storage of a recreational vehicle. The garage door opening shall not exceed nine feet in width and ten feet in height. (6) Any two story dwelling shall have its garage attached with roof lines and attachments in such a way as to eliminate as much as possible the boxy look of a two story house. 22 (c) Auxiliary Structures—Size and Configuration (1) Auxiliary attached and detached structures which may be allowed if built in the Building Envelope are gazebos, grape arbors, swimming pool equipment rooms, hot tubs, bathhouses, playhouses, greenhouses, playground structures, tool and storage sheds. These structures shall be proportional in scale and compliment the architecture of the principal dwelling unit. (2) Dog runs and dog houses are allowed provided they meet the criteria in the previous paragraph. The dog run may not exceed 250 square feet in total area and shall be enclosed by a five foot high coated chain link fence or wood screen fence. Both the dog house and the dog run shall be hidden from public view with a screen of landscaping of predominately coniferous planting material. (3) Playhouses may not exceed 80 square feet in area and eight feet in height. (4) Tool and storage sheds may not exceed 400 square feet in area. (5) Pool equipment rooms may not exceed 80 square feet in area. (6) Pool/Bathhouses may not exceed 400 square feet in area. (7) Greenhouses may not exceed 400 square feet in area. (8) Ground based solar panels incorporated into a permanent supporting structure may be allowed provided that they are placed within the Building Envelope, do not create an undo amount of glare and are screened from public view by landscaping. (d) Roof Forms, Appurtenances and Materials. (1) Roof forms permitted are: Gable, Clipped Gable, Hip, Dutch Hip, Hip and Valley, Link Dormer, Saltbox, Pent, Jerkinhead, Shreadhead, Pavilion and Polygonal. (2) Minimum roof slope shall be 4 inches of rise to 12 inches of run. (3) Roof forms not permitted are: Flat, Ogee, Bell, M-Roof, Folding Plate, Sawtooth, Mansard, French, Gambrel, Skirt, Rainbow, Whaleback, Onion and Geodesic Domes. (4) Roof dormer such as shed, window and gable are allowed. (5) Solar roof panels are allowed provided they are low in profile, match the slope of the roof, are not tilted or skewed, frames are not finished in shiny metal and piping is hidden from public view. (6) Skylights and roof windows which are low in profile and match the roof slope are permitted provided that frames are not finished in shiny metal. (7) Flashing around chimneys and other roof penetrations shall not be finished in shiny metal. (8) Roof vents, weather vanes, roof louvers shall not be finished in shiny metal. (9) Roof turbine ventilators are permitted provided they are low in profile and are not finished in shiny metal. 23 (10)Roofing material is a highly visible design element which can provide a catalyst in achieving overall design harmony. (e) Veneered Masonry. (1) Brick, Colorado sandstone, rubble or field stone and simulated or cultured stones are permitted with no minimum or maximum restriction on usage. (2) Smooth faced concrete block used as an exterior finish is not acceptable. (0 Simulated Stucco. (1) Synthetic or simulated stucco, and other equals are acceptable. (2) Hardboard panels simulating stucco and or plastered finishes are not acceptable. (g) Siding. (1) Most textured and smooth hardboard lap siding, textured and patterned plywood panel siding, solid wood lap siding and dimensioned lumber siding are acceptable. (2) All siding shall be trimmed out with corner boards, skirt boards and rake boards. (3) Steel and aluminum siding are not acceptable. (h) Colors. (1) Only semi-transparent or solid color stains and flat exterior paint finishes are acceptable. (2) Only neutral, muted, earth-matrix colors with hues ranging from medium to light in density are acceptable. (3) Bright-matrix, high contrast and vivid colors are not acceptable. (i) Fences, Privacy Screens, Walls and Windbreaks. (1) Property lines shall not be delineated with fences, wall, trees, hedges, shrub beds or other architectural material in such a way that defines the property boundary and limits of the lots. . (2) All rail, screen and architectural wood fences, privacy screens and masonry walls shall be confined to within the Building Envelope. (3) Privacy fencing, screen fencing, and screen walls shall not exceed five feet in height; Wood fencing shall be allowed to "breathe" and both sides shall match in appearance. (4) No fence, wall, hedge or shrub planting which obstructs sight lines at elevations between two (2) and six (6) feet above the roadways shall be placed or permitted to remain on any corner lot within the triangular area formed by the street property lines and a line connecting them at points twenty-five (25) feet from the intersection of the street lines, or in the case of a rounded property corner, from the intersection of the street property lines extended. The same sight line limitations shall apply on any Lot within a distance of ten (10) feet from the intersection of a street property line with the edge of a driveway. 24 (j) Landscaping, Windbreaks, Tennis Courts, Gardens and Compost Bins (1) All areas of the Lot not build upon shall be fully landscaped (front, sides and back)by the Owner within six (6) months after the Owner acquires the Lot with a dwelling unit thereon, or by July 1s` if the Owner acquired the Lot with a dwelling unit between October 1st and February l s`. The Lot Owner shall maintain such landscaping in an attractive condition. (2) To promote water conservation, planting materials and grasses that are drought tolerant are recommended. (3) Gravel areas used as a landscaping design element may not exceed ten(10) percent of the Building Envelope area. (4) Earth berms and planting materials used as windbreaks are permitted within the Building Envelope provided they are an integral part of the landscape scheme. (5) Vegetable and flower gardens are permitted provided they are contained within the Building Envelope and are an integral part of the landscape scheme. (6) Compost bins are permitted provided that they are contained within the Building Envelope, are adequately screened from public view and are properly maintained. (7) The Xeriscape form of landscaping to promote water conservation is not mandated herein but is encouraged within the Building Envelope. (8) Tennis courts are permitted provided that fencing and lighting are not obtrusive and they accompanied by an appropriate landscape plan. (9) Basketball backboards and hoops are permitted but shall not be attached to the roof of a dwelling unit. (k) Front Yard Light, Exterior Lighting and Mailboxes (1) Any exterior lighting installed on any Lot or Outlot shall be indirect or of such controlled focus or intensity as not to disturb the residents of adjacent properties. (2) Each Unit Owner shall build and maintain an individual mailbox structure which meets the Subdivision design standard. (1) Architectural Design Styles Certain architectural styles are neither encouraged nor discouraged. Individualism in design is encouraged provided, however, that principles of good design have been employed and that the immediate and surrounding environment has been enhanced by the proposed "improvements". 5.11 Architectural Standards/Design Guidelines. The ACC or Executive Board will promulgate additional, more detailed rules and regulations to interpret and implement the provisions of this Article. The rules and regulations shall be known as the "Design Guidelines of Liberty Estates" and may contain guidelines which will clarify the types of designs and materials that will be considered in deciding whether to withhold or grant its approval of any proposed improvements and the plans therefore. All improvements proposed to be constructed shall at all 25 times be required to be built in accordance with any design guidelines adopted and also in accordance with the procedures set forth in this Article. Article VI Restrictive Covenants 6.01 General Plan. It is the intention of the Declarant to establish and impose a general plan for improvement, development, use and occupancy of the Units, all in order to enhance the value, desirability, and attractiveness of the Units and subserve and promote the sale thereof. 6.02 Use of Properties. Each and every Lot or Unit with the Properties shall be used for residential purposes only, together with such accessory uses as are allowed by law. All buildings or structures erected upon the Properties shall be constructed on site, and no buildings or structures shall be moved from other locations onto said premises. No temporary building or other temporary structures, trailers,basements, tents, shacks, bards, or outbuildings shall be erected, used or permitted to be kept or stored on any portion of the Properties for any period of time, except as specifically allowed in this Declaration, or except as utilized by Declarant or the assigns or lessees of Declarant for business purpose. 6.03 General Restrictions. None of the Properties shall be used in any way or for any purpose which may endanger the health or unreasonably disturb the Owner of any Unit or any resident thereof and no billboards, unsightly objects or nuisances shall be erected, placed or permitted to remain on the Properties except as allowed under Section 6.08 hereafter. 6.04 Prohibited Uses. No unlawful use shall be permitted or made of the Properties or any part thereof. All laws, ordinances and regulations of all governmental bodies having jurisdiction shall be complied with. 6.05 Construction Facilities. Notwithstanding any provisions herein contained to the contrary, it shall be expressly permissible for Declarant, its agents, employees and contractors to maintain during the period of construction and sale of the Units, upon such portion of the Properties as Declarant may choose, such facilities as in its sole opinion may be reasonably required, convenient or incidental to the construction and sale or rental of Units including, without limitation, business offices, management offices, storage areas, construction yards, signs, model Units, sales offices, construction offices,parking areas and lighting. Said offices may be at a location and a size as determined by Declarant. 6.06 Destruction of Residences on Units. If due to casualty or for any other reason a residence located on a Unit shall be destroyed or so damaged that the residence is no longer habitable, then the Owner of such Unit shall, within a reasonable time not to exceed one hundred and twenty(120) days after the event resulting in such damage or destruction, either commence and diligently pursue 26 repair or reconstruction of the residence or demolish the same. Demolition of a residence shall include removal of any foundation slabs, basement walls and floors, regarding the Unit to a level condition and the installation of such landscaping as may be required by the ACC pursuant to a plan submitted by the Unit Owner of said Unit. If the Unit Owner of a Unit does not either commence repair, reconstruction or demolition activities within a reasonable time as provided hereinabove and diligently pursue the same in conformance with plans approved by the ACC, then the Association may, in its reasonable discretion, after providing the notice required in Article IV, Section 4.13 hereof, enter upon the Unit for the purpose of demolishing the residence and landscape the Unit in conformance with approved plans. The cost related to such demolition and landscaping shall be the personal obligation of the Owner of the Unit on which such work is performed and shall be subject to all of the terms and provisions applicable to assessments as provided in Article IV hereof, including, without limitation, interest, late charges and lien rights. 6.07 Household Pets. No animals, livestock, birds, poultry, reptiles or insects of any kind shall be raised, bred, kept or boarded in or on the Units; provided, however, that the Unit Owners of each Unit may keep a reasonable number of dogs, cats or other domestic animals which are bona fide household pets, so long as such pets are not kept for any commercial purpose and are not kept in such number or in such manner as to create a nuisance to any resident of the Units. A Unit Owner's right to keep household pets shall be coupled with the responsibility to pay for any damage caused by such pets, as well as any costs incurred by the Association as a result of such pets, and any such costs and damages shall be subject to all of the Association's right with respect to the collection and enforcement of assessments as provided in Article IV thereof. 6.08 Miscellaneous Improvements. (a)No advertising or signs of any character shall be erected, placed, permitted, or maintained on any Unit other than a name plate of the occupant and a street number, and except for a"For Sale,""Open House" or"For Rent" sign of not more than five (5) square feet. Notwithstanding the foregoing, reasonable signs, advertising or billboards used by the Declarant or a Builder in connection with the sale or rental of the units, or otherwise in connection with development of or construction on the Units, shall be permissible. (b)No clotheslines, drying yards, service yards, wood piles or storage areas shall be so located on any Unit as to be visible from a street. No wood piles nor any other materials or any Improvements other than a boundary fence approved by the ACC shall be located on any Unit so as to be adjacent to any fence maintained by the Association. (c)No types of refrigerating, cooling or heating apparatus shall be permitted, except when appropriately screened and approved by the ACC. 27 (d)Except as may otherwise be permitted by the ACC, no exterior radio antenna, television antenna or other antenna, satellite dish, or audio visual reception device of any type shall be placed, erected or maintained on any Unit, except inside a residence or otherwise concealed from view; provided, however, that any such devices may be erected or installed by the Declarant or Builder during its sales or construction upon the Units. (e)No wind generators or any kind shall be constructed, installed, erected or maintained on the Units. (1)No fences or other exterior Improvements shall be constructed, installed, erected or maintained on any Unit unless approved by the ACC and except such fences, in such locations, as were installed or permitted to be installed by the Declarant or a Builder in its construction of Improvements on the Units. 6.09 Vehicular Parking, Storage and Repairs. (a)No house trailer, camping trailer, boat trailer, hauling trailer, boat, or accessories thereto, truck (larger than ' ton), self-contained motorized recreational vehicle, or other type of recreational vehicle or equipment, may be parked or stored on the Units unless such parking or storage is within the garage area of any Unit or suitably screened from view in accordance with the requirements of the ACC, except that any such vehicle may be otherwise parked as a temporary expedient for loading, delivery, or emergency. This restriction, however, shall not restrict trucks or other commercial vehicles which are necessary for construction or for the maintenance of the Units or any Improvements located thereon. (b)Except as hereinabove provided, no abandoned or inoperable automobiles or vehicles of any kind shall be stored or parked on any Unit. An "abandoned or inoperable vehicle" shall be defined as any automobile, truck, motorcycle, or other similar vehicle, which has not been driven under its own propulsion for a period of one (1) week or longer, or which does not have an operable propulsion system installed therein; provided, however, that otherwise permitted vehicles parked by Unit Owners while on vacation or during a period of illness shall not be deemed to be abandoned. (c)In the event the Association shall determine that a vehicle is parked or stored on any Unit in violation of subsections (a) or(b) of this Section 6.09, then a written notice describing said vehicle shall be personally delivered to the owner thereof(if such owner can be reasonably ascertained) or shall be conspicuously placed upon the vehicle (if the owner thereof cannot be reasonably ascertained), and if the vehicle is not removed within a reasonable time thereafter, as determined by the Association in its discretion from time to time, the Association shall have the right to remove the vehicle at the sole expense of the owner thereof. (d)No activity such as, but not limited to, maintenance, repair, rebuilding, dismantling, repainting or serving of any kind of vehicles, trailers or boats, 28 may be performed or conducted on any Unit unless it is done within completely enclosed structure(s) which screen the sight and sound of the activity from the street and from adjoining property. The foregoing restriction shall not be deemed to prevent washing and polishing of any motor vehicle, boat, trailer, motor-driven cycle, or other vehicle, together with those activities normally incident and necessary to such washing and polishing. 6.10 Nuisances. No nuisance shall be permitted on any Unit nor any use, activity or practice which interferes with the peaceful enjoyment or possession and proper use of any Unit, or any portion thereof, by its residents. As used herein, the term "nuisance" shall not include any activities of Declarant or a Builder which are reasonably necessary to the development and construction of, and sales activities on, the Units; provided, however, that such activities of the Declarant or a Builder shall not unreasonably interfere with any Unit Owner's use and enjoyment of his Unit, or with any Unit Owner's ingress and egress to or from his Unit and a public way. No noxious or offensive activity shall be carried on upon any Unit nor shall anything be done or placed on any Unit which is or may become a nuisance or cause embarrassment, disturbance or annoyance to others. Further, no unlawful use shall be permitted or made of any Unit or any portion thereof. All laws, ordinances and regulations of all governmental bodies having jurisdiction over the Units, or any portion thereof, shall be observed. 6.11 No Hazardous Activities. No activities shall be conducted on any Unit or within Improvements constructed on any Unit which are or might be unsafe or hazardous to any person or property. Without limiting the generality of the foregoing, no firearms shall be discharged upon any Unit and no open fires shall be lighted or permitted on any Unit except in a contained barbecue unit while attended and in use for cooking purposes or within an interior fireplace. 6.12 No Annoying Sounds or Odors. No sounds shall be emitted from any Unit which is unreasonably loud or annoying; and no odor shall be permitted from any Unit which is noxious or offensive to others. 6.13 Restrictions on Trash and Materials. No refuse, garbage, trash, lumber, grass, shrubs or tree clippings, plant waste, metal, bulk materials, scrap or debris of any kind shall be kept, stored, or allowed to accumulate on any Unit unless placed in a suitable container suitably located solely for the purpose of garbage pickup. All equipment for the storage or disposal of such materials shall be kept in a clean and sanitary condition. No garbage or trash cans or receptacles shall be maintained in an exposed or unsightly manner. 6.14 Minor Violations of Setback Restrictions. If upon the erection of any structure, it is disclosed by survey that a minor violation or infringement of setback lines has occurred, such violation or infringement shall be deemed waived by the Owners of each Unit immediately adjoining the structure which is in 29 violation of the setback, and such waiver shall be binding upon all other Unit Owners. However, nothing contained in this Section 6.14 shall prevent the prosecution of a suit for any other violation of the restrictions, covenants, or other provision contained in this Declaration. A "minor violation", for the purpose of this Section, is a violation of not more than four (4) feet beyond the required setback lines or Unit lines. This provision shall apply only to the original structures and shall not be applicable to any alterations or repairs to, or replacements of, any of such structures. 6.15 Rules and Regulations. Rules and Regulations concerning and governing the Units and/or this Common Interest Community may be adopted, amended or repealed from time to time by the Executive Board, and the Executive Board may establish and enforce penalties for the infraction thereof, including, without limitation, the levying and collecting of fines for the violation of any of such Rules and Regulations. 6.16 Units to be Maintained. Each Unit shall at all times be kept in a clean and sightly condition by the Unit Owner of the Unit. No trash, litter,junk, boxes, containers, bottles, cans, implements or machinery shall be permitted to remain upon any Unit except as necessary during the period of construction or as provided in Section 6.13 of this Article. 6.17 Maintenance of Grade and Drainage. Each Unit Owner shall maintain the grading upon his Unit, and the Association shall maintain the grading upon such real property which the Association has a duty to maintain, at the slope and pitch fixed by the final grading thereof, including landscaping and maintenance of the slopes. Each Unit Owner and the Association agree, for themselves and their successors and assigns, that they will not in any way interfere with the established drainage patter over any real property which they have a duty to maintain, from adjoining or other real property. In the event that it is necessary or desirable to change the established drainage over any Unit or other real property which a Unit Owner or the Association has a duty to maintain, then the party responsible for the maintenance of such real property shall submit a plan to the Architectural Control Committee for its review and approval, in accordance with the provisions of Article V of this Declaration. For purposes of this Section 6.17, "established drainage" is defined as the drainage which exists at the time final grading of a Unit is completed. ARTICLE VII Insurance 7.01 Coverage. The Executive Board shall obtain and maintain at all times to the extent obtainable, insurance policies relating to the Common Areas, the Maintenance Property and to Liberty Estates. Said policies shall be written with companies licensed to do business in the State of Colorado. The Executive Board 30 and the Declarant shall not be liable for failure to obtain any coverages required if such failure is due to the unavailability of such coverages or if such coverages are available only at unreasonable cost; in such case, however, the Association shall promptly cause notice of such fact to be hand delivered or sent by United States Mail to all Unit Owners. If requested in writing by an Owner or a first mortgagee, the Executive Board shall furnish a certificate of insurance or notices of termination of coverage or changes in coverage. (a) Each such policy shall provide: (1) Such policy shall not be canceled, invalidated or suspended because of the conduct of any Unit Owner (including said Unit Owner's guests, tenants or agents) or of any officer, agent or employee of the Association without a prior demand in writing to the Association that the conduct or defect be cured and the Association shall not have so cured within sixty(60) days of said demand. (2) The Declarant, so long as Declarant shall continue to own any Unit, any portion of the Properties, or Liberty Estates, shall be protected by all such policies; and (3) That, notwithstanding any provision thereof which gives the carrier the right to elect to restore damage in lieu of making a cash settlement, such option shall not be exercised without prior approval of the Association. (4) Each Unit Owner is an insured person under the policy with respect to liability arising out of such Unit Owner's interest in the Common Interest Community or membership in the Association. (5) The insurer waives its rights to subrogation under the policy against any Unit Owner or member of his household. (6) No act or omission by any Unit Owner, unless acting within the scope of such Unit Owner's authority on behalf of the Association, will void the policy or be a condition to recovery under the policy. (7) If, at the time of a loss under the policy, there is other insurance in the name of a Unit Owner covering the same risk covered by the policy, the Association's policy provides primary insurance. (b)Said policies shall not provide that: (1) Under the terms of the insurance companies charter, bylaws or rules, contributions or Assessments may be made against the Association, any Unit Owner, a first mortgagee or said mortgagee's designee or assignee; (2) Under the term of the insurance companies charter, bylaws or rules, any loss payments are contingent upon action by the insurance companies board of directors, shareholders, policy holders or members; 31 (3) Any limiting clauses which could prevent first mortgagees or said mortgagee's designee or assignees from collecting proceeds paid. (c ) All policies shall contain waivers of subrogation against the Declarant, the Association, the Executive Board, Members, Unit Owners, their guests and assignees. The named insured under the policies shall be the Association for the use and benefit of the individual Unit Owners. Any loss covered by the policies carried under this Article shall be adjusted exclusively by the Executive Board and the insurance proceeds for that loss shall be payable to the Association as attorney-in-fact for each Unit Owner and such Unit Owner's First Mortgagee. Said insurance policies shall contain the standard mortgagee clause or equivalent endorsement in which the First Mortgagee, its successors and assigns, are named additional insured, if applicable. 7.02 Physical Damage Insurance. The Executive Board shall obtain and maintain a blanket "all-risk" form policy of fire and hazard insurance with extended coverage for vandalism, malicious mischief, windstorm, sprinkler leakage (if applicable), debris removal, cost of demolition and water damage endorsements, insuring all of the insurable improvements located on the Common Areas or Maintenance Property, including fixtures, machinery, equipment, fences and supplies and any other personal property belonging to the Association. Such insurance shall provide coverage equal to the current replacement cost based on the most recent appraisal of the insurable improvements, exclusive of land, excavations and other items normally excluded. The Executive Board shall review at least annually, its insurance policies in order to insure that the coverages contained in the policies are sufficient. Such policies shall also provides as follows: (a)A waiver of any right of the insurer to repair, rebuild or replace any damage or destruction, if a decision is made by the Unit Owners pursuant to the Act not to do so: (b)Said policies shall contain the following endorsements: (1) No control; Contingent liability from operation of building codes; Cost of demolition; Increased cost of construction; Inflation guard. (2) A duplicate original of the policy of hazard insurance, all renewals thereof, and any subpolicies or certificates and endorsements issued thereunder, together with proof of payment of premiums, shall be delivered by the insurer to the Association. (3) Any deductible on such insurance policy shall be determined in the discretion of the Executive Board as consistent with good business practice and which shall be consistent with the requirements of the First Mortgagee. Any loss falling within the deductible portion of a policy may be paid by the Association. 32 (4) The insurer shall provide such other endorsements as are reasonably required by the Association to verify that its policy meets the requirements of the Colorado Common Interest Ownership Act. 7.03 Rebuilding of Damaged Areas. In the event of repair and/or reconstruction, the proceeds of any insurance collected shall be available to the Association for the purpose of repair and/or reconstruction. If the insurance proceeds are insufficient to properly repair and/or reconstruct the damaged areas, such excess cost shall be assessed as an Individual Assessment against all Owners in accordance with this Declaration and not as a Special Assessment and such Assessment shall be exempt from any special voting requirements of the Owners. Such Individual Assessment shall be assessed in the same proportion as the Annual Assessment is assessed. If any portion of the damaged areas is not repaired or replaced, the insurance proceeds shall be used to restore the damaged areas to a condition compatible with the adjacent area and the remainder of the proceeds shall be retained by the Association for the benefit of the Members. 7.04 Liability Insurance. The Executive Board shall obtain and maintain comprehensive commercial general liability insurance against claims and liabilities arising in connection with the ownership, existence, use or management of the Common Areas and Maintenance Properties, and against any and all claims arising in connection with the conduct of its affairs, including libel, slander, false arrest, invasion of privacy and property damage, with such limits as the Association determines appropriate with respect to Property of the Association and insuring each Officer, Director, Member and each Owner including the Declarant in its capacity as an Owner, against any liability to the public or to Owners and their invitees, agents and employees arising out of, or incident to, ownership and use of such Property or Maintenance Area. Such insurance shall be issued on a comprehensive liability basis. Additional coverages may be acquired to include protection against such other risks including, but not limited to, Host Liquor Liability, Contractual and All-Written Contract Insurance, Workmen's Compensation and Employer's Liability Insurance, Comprehensive Automobile Liability Insurance and such other coverages as the Board deems necessary. The Executive Board shall review such coverages and the policy limits thereunder once each year, but in no event shall such insurance coverage be less than one million dollars ($1,000,000.00) covering all claims for bodily injury or death and property damage arising out of one occurrence. Reasonable amounts of"umbrella" liability insurance in excess of the primary limits may also be obtained at the discretion of the Executive Board. 7.05 Other Insurance. 33 (a)The Association shall, if any Unit Owner or employee of the Association controls or disburses funds, obtain and maintain, to the extent reasonably available, adequate fidelity insurance coverage, to protect against dishonest acts on the part of the Directors, Officers, Trustees, Employees or Volunteers of the Association and all others who handle or are responsible for handling funds. Such fidelity coverage shall name the Association as the named insured and be written in an amount sufficient to cover the maximum funds that will be in the custody of the Association at any time while the insurance is in force. In addition, the fidelity insurance coverage must contain waivers of any defense based upon the exclusion of persons who serve without compensation. (b)If required by a governmental or quasi-governmental agency, including the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, the Association shall obtain flood insurance in accordance with said requirements. (c)The Association may obtain Worker's Compensation and Employer's Liability Insurance and other similar insurance with respect to employees of the Association in the amount and in the forms now or hereafter required by law. (d)The Association may obtain such other insurance of a similar or dissimilar nature, as the Executive Board shall deem appropriate. (e)If it is reasonably determined by a First Mortgagee that the existing coverages do not adequately protect the Properties, the Executive Board shall obtain such additional coverages. In addition, in the event any additional coverage is required by the Colorado Common Interest Ownership Act, the Executive Board shall seek to obtain such coverage, if available. 7.06 Payment of Insurance Premiums. The cost of the insurance obtained by the Association in accordance with this Article shall be paid from Association funds and shall be collected from the Owners as part of the Annual Assessment as provided for in this Declaration. In the event there are not sufficient funds generated from the Annual Assessment to cover the cost of the insurance provided for above, then the deficiency shall be chargeable to each Owner by an Individual Assessment and not as a Special Assessment and such Assessment shall be exempt from any voting requirements of the membership. 7.07 Coverage on Owner's Units. An insurance policy issued to the Association does not obviate the need for an Owner to obtain insurance for that Owner's own benefit. Insurance coverage on any property owned by an Owner, an Owner's guests, invitees, employers, employees or assigns shall be the sole responsibility of the Unit Owner. The Declarant, the Association and the Executive Board shall have no responsibility therefore. -- ARTICLE VIII Rights of the First Mortgagees 34 8.01 Entitlement. A First Mortgagee, upon written request to the Association, shall be entitled to receive any of the following: (a) Budgets, notices of Assessments, or any other notices provided for under this Declaration by the Association to an Owner in which a First Mortgagee has a security interest; (b) Financial statements of the Association which are distributed to its Members; (c) Notices of meetings of the membership and the right to be represented at any meeting by a designated representative; (d) Notice of any default in the performance of any obligations under this Declaration, the Articles of Incorporation and/or Bylaws of the Association by an Owner of a Unit in which a First Mortgagee has a security interest, which remains incurred for a period of thirty(30) days; (e) Notice of the decision of the Members to make any material amendment to this Declaration, the Bylaws, and/or the Articles of Incorporation of the Association; (0 Notice of any lapse, cancellation or material modification of any hazard or liability insurance policy or fidelity bond maintained by the Association; (g) Notice of any condemnation action or any casualty loss which affects a material portion of the Properties or any Unit in which a First Mortgagee has a security interest; (h) Notice of any proposed action in which this Declaration requires notice and consent of First Mortgagee. 8.02 Payment of Charges. First Mortgagees, may pay overdue premiums on hazard insurance policies or secure new hazard insurance coverage because of a lapse of a policy and may also pay taxes and other charges which are in default or which may or have become a charge against the Common Areas or Maintenance Property. If such payment is made, reimbursement from the Association shall be due and owing immediately. 8.03 Restrictions. The consent of the Owners to which at least sixty-seven percent (67%) of the votes in the Association are allocated and the approval of those First Mortgagees holding mortgages on Lots which have at least sixty-seven percent (67%) of the votes of the Lots subject to first mortgages within the Properties shall be required to add or amend any material provisions of the Declaration, Bylaws, and/or Articles of Incorporation which establish, provide for, govern or regulate any of the following: (a) Assessments, the manner of Assessment liens or the subordination of such Assessment liens; 35 (b) Reserves for the maintenance, repair and replacement of the Common Areas or Maintenance Property; (c) Insurance or Fidelity Bond; (d) Right to use of the Common Areas; (e) Responsibility for maintenance and repair of the Common Areas or Maintenance Property; (f) Leasing of any right of first refusal or similar restriction on the right of an Owner to sell, transfer, or otherwise convey a Unit; (g) Imposition of any right of first refusal or similar restriction on the right of an Owner to sell, transfer, or otherwise convey a Unit; (h) Any provisions of this Declaration, the Articles of Incorporation or Bylaws which specifically grants rights to First Mortgagees thereunder. Nothing in this Section shall be deemed to deny or delegate control over the general administrative affairs of the Association by the Unit Owners or Executive Board or present the Executive Board from commencing, intervening in, or settling any solicitation or proceeding. 8.04 Special GNMA/FHLMC/HUD/VA/FHA Provisions. If required by the Government National Mortgage Association, Federal Home Loan Mortgage Corporation, Department of Housing and Urban Development, Federal Housing Authority, the Veterans Administration or similar agency, the following requirements apply. Unless seventy-five percent (75%) of the First Mortgagees (based upon one vote for each first mortgage owned) or Owners (other than the Declarant) give their prior written approval, the Association shall not be entitled to: (a)by act or omission seek to abandon, partition, subdivide, encumber, sell or transfer property owned directly or indirectly by the Association, except as specifically allowed in this Declaration; (b)fail to maintain hazard and extended coverage insurance on Common Areas or Maintenance Areas on a current replacement cost basis in an amount not less than one hundred percent (100%) of the insurable value; (c)use hazard insurance proceeds received for losses to any part of the Common Areas or Maintenance Properties for other than repair, replacement or reconstruction of such property; (d)change the method of determining the Assessments which may be levied against an owner; (e)by act or omission change, waive or abandon any scheme of regulation, or the enforcement thereof, pertaining to the architectural design or exterior appearance of the dwelling Units, the maintenance of the Common Areas or Maintenance Properties. ARTICLE IX General Provisions 36 9.01 Enforcement. The covenants, conditions and restrictions herein contained, and amendments made hereunder, shall run with the land and be binding upon and insure to the benefit of the Association, the Declarant and property Owners, and maybe enforced as provided hereinafter. Violation of these protective covenants shall give the Association, the Declarant or the Owners, or any of them, the right to bring proceedings in law or equity against the party or parties violating or attempting to violate any terms of this Declaration, the Articles of Incorporation and Bylaws of the Association, to enjoin them from so doing, to cause any such violation to cease or to recover damages resulting from such violation. In any legal or equitable proceeding to enforce the provisions hereof or to enjoin any violation, the party or parties against whom judgment is entered shall pay the attorney's fees of the party or parties for whom judgment is entered. Such remedies shall be cumulative and not exclusive. Notwithstanding the foregoing, it is understood that the breach of any of this Declaration shall not defeat or render invalid the lien of any mortgage made in good faith and for value, provided, however, the covenants, conditions and restrictions shall at all times remain in full force and effect against said premises or any part thereof notwithstanding any foreclosure of any mortgage. No assent, expressed or implied, to any breach of any one or more of the covenants, conditions and restrictions shall be deemed to be a waiver of any succeeding or other breach. 9.02 Damages. An Owner shall be liable and responsible for payment of any loss or damage to any portion or property caused by the act or negligence of the Owner or such Owner's guests which occurs within the Properties or any common area. Any such loss or damages together with reasonable attorneys' fees and costs of collection may be recovered from the Owner by means of a fine, an Individual Assessment or any other legal means. 9.03 Duration. The covenants, restrictions and reservations set forth in this Declaration, unless properly amended shall run with and bind the entire described Properties, for a term of twenty(20) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years. 9.04 Amendments. Except for amendments by Declarant as allowed herein, this Declaration may be amended only be execution of a written document by the Owners of not less than sixty-seven percent (67%) of the Units actually in existence at the time of such amendment. Said requirement shall be satisfied by the recording of a certificate signed by the Secretary of the Association certifying that the required percentage of Unit Owners have given notarized consent to the amendment. In the event prior approval of an amendment is required by the Federal Home Loan Mortgage Corporation, the Federal Housing Authority, the Veterans Administration or a similar agency, said approval shall also be required. 37 9.05 Scope of This Declaration. The undersigned Declarant, as Owner of fee simple title to the Properties, expressly intends to subject the Properties to the provisions of this Declaration upon recording of this document. Each Owner shall own their Unit thereof, subject to the provisions of this Declaration. Any instrument recorded subsequent to this Declaration purporting to affect an interest in the Properties shall be subject to the terms of this Declaration despite failure to make reference thereto. 9.06 No Representation. Except as expressly set forth herein, Declarant makes no representations regarding the use of any Lot or Unit. Declarant makes no representations as to the existence, preservation or permanence of any view from any Lot or Unit. 9.07 Books and Records. Any Unit Owner or Mortgage Holder on a Unit shall have the right to examine the books and records of the Association at any reasonable time upon reasonable notice. 9.08 Successors and Assigns. This Declaration shall be binding upon and shall inure to the benefit of the Declarant and each Unit Owner and to the heirs, representatives, Personal Representatives, successors and assigns of each of them. 9.09 Severability. If any portion of this Declaration becomes invalidated in any manner whatsoever, it shall not affect in any manner the validity, enforceability or effect of the remainder of this Declaration and, in such event, all other provisions of this Declaration shall continue in full force and effect. 9.10 Numbers and Genders. Whenever used herein, unless the context shall otherwise provide, the singular number shall include the plural, the plural the singular, and the use of any gender shall include all genders. 9.11 Designation of Maintenance Property. Certain areas of land which are designated as Maintenance Property are intended for the common use and benefit of the Common Interest Community in that such areas are either reserved for landscape, signage or general utility purposes or are ancillary to proper control of water inflow to water areas. Accordingly, despite the lack of any direct access to such Maintenance Property for recreational purposes, it is desirable for the Association to maintain and control the facilities located thereon. It is specifically intended by Declarant that no use of the Maintenance Property shall be made by any Owner which is inconsistent with the foregoing and such Maintenance Property is not being dedicated for use by the general public. 9.12 Registration of Mailing Address. Each Unit Owner and each Security Interest Holder, insurer or guarantor of a Security Interest shall register his mailing address with the Association, and except for annual statements and other routine notices, all other notices or demands intended to be served upon a Unit Owner, or upon a Security Interest Holder, insurer or guarantor of a Security 38 Interest, shall be sent by either registered or certified mail, postage prepaid, addressed in the name of such person or entity at such registered mailing address. However, if any Unit Owner fails to notify the Association of a registered address, then any notice or demand may be delivered or sent, as aforesaid, to such Unit Owner at the address of such Unit Owner's Unit. All notices, demands, or other notices intended to be served upon the Executive Board or the Association shall be sent by registered or certified mail, postage prepaid, to Liberty Estates HOA c/o Alfa Construction, LLC, 4068 Camelot Circle, Longmont CO 80504, until such address is changed by the Association. 9.13 Description of Units. It shall not be necessary to use the term "unit" as a part of the legally sufficient description of a Unit. IN WITNESS WHEREOF, the Declarant and the undersigned Owners and Mortgagees have hereunto set their hands and seals on the dates set forth on the signature pages below, to be effective as of the last such date. "DECLARANT" LIBERTY ESTATES, LLLP a Colorado corporation ATTEST: By: Kenneth A. Williamson, Authorized Member Connie Williamson, Secretary 39 Hello