HomeMy WebLinkAbout3460 RESOLUTION NO. 3 4 6 0
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, AUTHORIZING AN AMENDMENT TO THE GROUND LEASE
AT THE AUBURN MUNICIPAL AIRPORT WITH HANGARS UNLIMITED
APPROVED BY RESOLUTION 3364 ADOPTED AUGUST 6, 2001.
WHEREAS, at a regular meeting of the Auburn City Council held August
6, 2001, the Council adopted Resolution 3364 providing the execution of a
contract with Hangars Unlimited for a Ground Lease at the Auburn Municipal
Airport; and
WHEREAS, it is in the interest to the City of Auburn to amend the
contract with Hangars Unlimited for a Ground Lease at the Auburn Municipal
Airport;.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. The Mayor and City Clerk of the City of Auburn are hereby
authorized to execute an amendment to the Ground Lease at the Auburn
Municipal Airport with Hangars Unlimited, which is attached hereto and marked
as Exhibit "A" and by this reference incorporated herein.
Section 2. The Mayor and City Clerk are hereby authorized to execute
the option within the agreement with Hangars Unlimited, which is attached
hereto and marked as Exhibit "B" and by this reference incorporated herein.
Resolution 3400
Apdll0,2002
Page 1
Section 3, The Resolution shall be effective upon passage and
signatures herein.
CITY OF AUBURN
PET'I~R B. LEWIS MAYOR
Danielle E. Daskam,
City Clerk
APPROVED AS TO FORM:
City Attorney
Resolution 3460
April 10, 2002
Page 2
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DECLARATION AND COVENANTS. CONDITIONS,
RESTRICTIONS AND RESERVATIONS
FOR
AUBURN HANGARS LEASEHOLD CONDOMINIUM
Law Offices of Gregory E. Thulin, P.S.
119 N. Commercial Street
Suite 660
Bellingham, WA 98225
(360) 714-8599
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DECLARATION AND COVENANTS, CONDITIONS,
RESTRICTIONS AND RESERVATIONS
FOR
AUBURN HANGARS LEASEHOLD CONDOMINIUM
INDEX
Section/Description
Page No.
ARTICLE I ..................................................................................................:......................... 2
Definitions ............................................ ......................................................................,..... 2
ARTICLE II ........................................................................................................................... 6
~ecial Deciararit Rights ...............................................................................................:..... 6
A. Development Rights ............................................................................................ 6
B. Completion of Improvements .............................................................................. 7
C. Maricetina ............................................................................................................ 7
D. Reservation of Easements .................................................................................. 8
ARTICLE Ill .......................................................................................................................... 8
Description of Building ........................................................................._............................... 8
ARTICLE IV ......................................................................................................................... 8 .
Desc~tion of Units, Location, Area and Size ..................................................................... 8
A. General Description .......................................................................:.................... 8
B. Unit Boundaries ................................................................................................... 8
ARTICLE V ....................................................:..................................................................:.. 9
Leasehold Condominium ................................................................................:..................... 9
A. Ground Lease ...........:......................................................................................... 9
B. Term of Lease ......................................................:..:........................................... 9
C. Scope of Lease ................................................................................................... 9
D. Consequences of Termination of Lease/Absence
of Reversion Rights ..................:..........:................................................................ 9
E. Assignment of Leasehold Interest .................................................................... 10
F. Additional Phases .......................................................:......................................10
G. Default Under Ground Lease ..............................:............................................ 10
H. Consent ...................................................................:........................................ 11
ARTICLE. VI ...........................:...........................................................................................11
Common Elements .....:......................................................................................................11
ARTICLE VII ....................................................................................................................... 11
Limited Common Elements .........................................................................:......:.............. 11
A. Description ........................................................................................................ 11
B. Boundaries of Interior Limited Common Elements .......................:............:...... 12
C. Boundaries of Other Limited Common Elements ............................................. 12
D. Applicable Easements ...................................................................................... 12
ARTICLE VIII ..............................................................................:...................................... 12
Allocated Interests in Common Elements ............................................:............................ 12
A. Phase I .............................................................................................................. 12
B. Phase II ............................................................................................................. 13
ARTICLE IX ..................:.................................................................................................... 13
Use• Regulation of Uses; Architectural Uniformity ............................................................ 13
A. Aviation Purposes .............................................................................................13
B. Unit Rental ........................................................................................................13
C. Vehicle Parking .....................................:...................................................:.......14
D. Driving_Area and Walkways .............................................................................. 14
E. Interior Unit Maintenance and Alterations .........................................................14
F. Limited Common Elements ..: ............................................................................15
G. Exterior Appearance ......................................................................................... 15
H. Effect on Insurance ..................................................................................:.......: 15
I. Signs ...................................................................................................................15
J. Unit Activity ........................................................................................................15
K. Bylaws. Rules and Regulations ..........................................................:............ 16
ARTICLE X ......................................................................:................................................. 16
Unit Owners' Association ................................................................................................... 16
A. Form of Association .......................................................................................... 16
B. Membership ..................................................................................................... 16
1. Qualification ............................................................................................16
2. Transfer of Membership ......................................................................... 16
C. Voting ................................................................................................................ 16
1. Number of Votes .................................................................................... 16
2. Voting ...................................... :.............................................................. 17
3. Joint Unit Owner Disputes ..............................................:....................... 17
4. Pledged Votes ........................................................................................ 17
D. Meetings, Audits. Notices of Meetings .....................................:.......................17
1. Annual Meeting ......................................................................................17
2. ~ecial Meetings ....................................................................................18
3. Audits ......................................................................................................18
E. Bylaws of Association ..........................................:............................................18
1. Adoption of Bylaws .................................................................:...............18
2. Bylaw Provisions .................................................................................... 18
ARTICLE XI .............:.........................................................................................................19
Management of the Condominium ...................................................:.....................:..........19
A. Powers of the Association .........................................................:.......................19
B. Management by the Board ............................................................................... 21
C. Election of the Board ..:..................................................................................... 21
D. Authority of the Board ....................................................................................... 22
ARTICLE XII ............:.....................:................................................................................... 25
Maintenance. Common E~ense and Common Expense
Liability; Special Assessments ...: .............................................................................. .. 25
A. Common Expenses .........................................:.......................................:......... 25
B. Annual Budget of Common Expenses .............................................................. 25
C. Payment by Unit Owners ........:.....................:................................................... 26
D. Purpose .............................................................................................................26
E. Separate Accounts ............................................................................................ 26
F. Based on Percentage ........................................................................................ 26
G. Failure to Determine Assessments .................................................................. 26
H. Limited Purpose Common Expenses .....................................:......................... 27
I. Records .............................................................................................................. 27
J. Lien Indebtedness ............................................................................................. 27
K. Certificate of Assessment ................................................................................. 28
L. Security Deposit ................................................................................................ 28
M. Foreclosure of Assessment Lien .................:.....................:.............................. 28
N. Rental Units ...................................................................................................... 28
O. Remedies Cumulative ......................:.................:............................................. 29
ARTICLE XIII .................................................................................:..................................: 29
Insurance ........................................................................................................................... 29
A. Insurance Coverage .......................................................................................... 29
1. Real Property Insurance ......................................................................... 29
2. Liability Coverage ..................................................:................................ 29
3. Other Coverage .................................:........:........................................... 30
B. Additional Policy Provisions .................:.......:.............................................. 30
1. Named Insured ............:.......................................................................... 30
2. Contribution ............................................................................................ 30
3. Absence of Association Control ............:................................................ 30
4. Cancellation ............................................................................................30
5. Waiver of Subrogation, Co-Insurance
and Acts of Insured ...................................:............................................ 30
6. Primary Insurance .................................................................................. 31
C. Mortgagee Clause ................:................................................................:.......... 31
1. Define Mortgagee ...............................................................:................... 31
2: Protect Mortaagee .................................................................................. 31
3. Waive Certain Requirements ................................................................. 31
4. Recognize Named Insured .............................................:....................... 31
D. Fidelity Bond Coverage .............................................................:...................... 31
1. Obligee ............................................................................................:...... 31
2. Amount ................................................................................................... 31
3. Waiver of Defense .................................................................................. 31
4. Cancellation ............................................................................................32
E. Insurance Proceeds .......................................................................................... 32
F. Unit Owners' Policies ......................................................................................... 32
ARTICLE XIV ......:.............................................................................................................. 32
Damage or Destruction; Reconstruction ..................:........................................................ 32
A. Determination by the Association ..................................................................... 32
B. Notice of Damage or Destruction ...:.................................................................. 33
C. Definitions; Restoration; Emergency Work ....................................................... 33
D. Restoration by the Association ......................................................................... 33
E. Decision Not to Restore; Disposition ................................................................ 34
ARTICLE XV ....:......................................................................................:.......................... 35
Condemnation .....................................::.........:.:................................................................ 35
A. Consequences of Condemnation; Notices ....................................................... 35
B. Proceeds ........................................................................................................... 35
C. Complete Taking .......................................................:....................................... 35
D. Partial Taking .................................................................................................... 35
E. Reductions of Units Upon Partial Taking .......................................................... 36
F. Reconstruction and Repair ................................................................................ 37
ARTICLE XVI:.....: .............................................................................................................. 37
Limitation of Liability .........................................,................................................................ 37
A. Liability for Utility Failure and
Certain Personal and Real Property Damage ..................................................... 37
B. No Personal Liability ............:................
.......................................................... 37
C. Indemnification .................................................................................................. 38
D. Indemnification of City of Aubum ......................:.............:..................................38
ARTICLE XVII .................................................................................................................... 38
Mortgagee Protection ........................................................................................................ 38
A. Priority of Mortgages ......................................................................................... 38
B. Abandonment of Condominium Status ............................................................. 39
C. Partitions. Subdivisions and Combinations ......:.....: ......................................... 39
D. Change in PercentaQes .................................................................................... 39
E. Copies of Notices ........................................:..................................................... 39
F. Effect of Declaration Amendments .....................................................:............. 39
G. Insurance .................................................................................................:........ 39
H. Inspection of Books .............................................:............................................ 40
ARTICLE XVIII ..................................................................................................................: 40
Mortgagee's Right After Foreclosure ....:............................................................................ 40
ARTICLE XIX ..................................................................................................................... 40
Easements ......................................................................................................................... 40
A. General ............................................................:......:........................................40
B. Easements and Rights Reserved ..........: ..................................:....................... 41
C. Encroachments .................................................:...............................................41
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ARTICLE XX ...................................................................................................................... 42
Procedures for Subdivision or Combination ...................................................................... 42
A. Procedure ..........................................................................................................42
B. Costs ................................................................................................................. 43
ARTICLE XXI ..................................................................................................................... 43
Amendment of Declaration. Survey Map, Plans ............................................................... 43
A. Declaration Amendment ................................................................................... 43
B. Survey Map and Plans Amendment ................................................................. 43
C. Discontinuance of Condominium ...................................................................... 44
ARTICLE XXII .................................................................................................................... 44
Compliance with Declaration ............................................................................................. 44
A. Enforcement ......................................................................................................44
B. No Waiver of Strict Compliance ........................................................................ 44
C. Costs and Attorney Fees :................................................................................. 45
ARTICLE XXIII ................................................................................................................... 45
Interpretation ...................................................................................................................... 45
A. Liberal Construction .......................................................................................... 45
B. Consistent with Act ............................................................................................ 45
C. Covenant Running with Land ........................:.................................................. 45
D. Unit and Building Boundaries ........................................................................:.. 45
E. "Person" ............................................................................................................ 45
F. Declarant-Original Unit Owner .......................................................................... 45
ARTICLE XXIV .................................................................................................................. 46
Miscellaneous .................................................................................................................... 46
A. Severabilitv ........................................................................................................46
B. Effective Date .................................................................................................... 46
C. Reference to Survey Map and Plans ................................................................ 46
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DECLARATION AND COVENANTS, CONDITIONS,
RESTRICTIONS AND RESERVATIONS
FOR
AUBURN HANGARS LEASEHOLD CONDOMINIUM
This Declaration, dated as of the date set forth at the conclusion of the
Declaration, constitutes the covenants, conditions, restrictions and reservations creating
and establishing the Condominium known as Auburn Hangars Leasehold
Condominium.
A, HU Inc., a Washington corporation, dba Hangars Unlimited ("Declarant"),
has a leasehold interest, pursuant to that certain Lease Agreement with the City of
Aubum, a Washington Municipal Corporation, effective September 1, 2001 ("Ground
Lease"), in that land as legally described on Schedule "A" hereto, which land and any
building, improvements, appurtenances and other attributes attaching to such land are
referred to herein as the "Real Property";
B. Declarant is concurrently: filing. for record with the Office of the King
County Auditor, State of Washington, a Survey Map and Plans for the Condominium
known as Auburn Hangars Condominium ("Condominium"); and
C. By filing this Declaration and. the foregoing Survey Map and Plans,
Declarant submits the Condominium, together with all appurtenances, to the provisions
of the Washington Condominium Act, Chapter 64.34 of the Revised Code of
Washington, as the same may from time to time be amended ("Act").
THEREFORE:
Pursuant to the Act and other laws of the State of Washington, and for the
purpose of submitting the Condominium to the provisions of the foregoing, Declarant,
being the sole Lessee of the Real Property., makes the following declaration: It is
agreed by acceptance of a conveyance, contract for sale, lease, rental agreement, or
any form of security agreement or instrument, or any privileges for use or enjoyment,
respecting the Real Property and/or any Unit thereof, as defined herein, in the
Condominium created by this Declaration, that this Declaration, together with the
Survey Map and Plans referred to in this instrument, states covenants, conditions,
restrictions and reservations affecting a common plan for the Condominium .mutually
beneficial to the described Units and that the covenants, conditions, restrictions and
reservations are binding upon the Real Property and upon the Condominium as a
parcel of realty, and are also binding upon the Unit Owners or possessors of such
described Units, and upon their respective heirs, personal representatives, successors
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and assigns, through all successive transfers of all or any part of the Real Property or
all or any portion of the Condominium or any security interest within same, without
requirement for further specific reference or inclusion in deeds, contracts or security
instruments, and regardless of any subsequent forfeiture, foreclosure or sales of the
Condominium or any Units therein.
ARTICLE I
Definitions
Certain terms as used in this Declaration shall be defined pursuant to the Act
and are more particularly defined as follows, unless the context clearly indicates a
different meaning:
1. "Act" shall mean the Washington Condominium Act, Chapter 64.34 of the
Revised Code of Washington, as amended from time to time.
2. "Allocated Interest" shall mean the undivided interest in the Common
Elements, the Common Expense .liability and votes in the Association allocated to each
Unit.
3. "Assessment" shall mean all sums chargeable by the Association against
a Unit including, without limitation: (a) regular and special assessments for Common
Expenses, charges and fines imposed by the Association; (b) interest and late charges
on any delinquent account; and (c) costs of collection, including reasonable attorney's
fees, incurred by the Association in connection with the collection of a delinquent
Owner's account.
4. "Association" shall mean the Association of the Owners of .the Units
acting as a group pursuant to this Declaration, to the Bylaws for such Association and
to the Act. The Association shall be called the Aubum Hangars Owners' Association.
5. "Board of Directors" and "Board" shall mean the group of individuals
appointed by Declarant or elected by the Association, who shall govern the Association
and manage and administer the Condominium in accordance with this Declaration, the
Bylaws and the Act.
6. "Bylaws" shall mean the Bylaws of the Association as initially adopted by
Declarant and as amended from time to time by-the Association in accordance with this
Declaration, the Bylaws and the Act.
7. "Common Elements" shall mean all portions of the Condominium other
than the Units, specifically as provided in Article VI and as limited by Article VII of this
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Declaration.
8. "Common Expenses" shall mean expenditures made by, or financial
liabilities of, the Association, together with any allocations to reserves.
9. "Common Expense Liability" shall mean the liability for Common
Expenses allocated to each Unit pursuant to Article XII.
10. "Condominium" shall mean the Real Property, portions of which are
designated for separate ownership and the remainder of which is designated for
common ownership solely by the Owners, all of which is submitted to the provisions of
the Act by this Declaration, including any future Units added to the Condominium as
provided in Article II of this Declaration.
11. "Conveyance" shall mean any transfer of the ownership of a Unit,
including a transfer by deed or by real estate contract, but shall not include a transfer
solely for security purposes.
12. "Declarant" shall mean HU Inc., a Washington corporation, dba Hangars
Unlimited, or any successor or assignee thereof.
13. "Declarant Control" shall mean the right of Declarant, or of persons
designated by Declarant, to appoint and to remove officers and members of the Board
of Directors pursuant to Article XL
14. "Declaration" shall mean this instrument by which the building and the
leasehold interest in the land described on Schedule "A" held by Declarant, including all
improvements, are established as a Condominium under the Act, including -any
amendments hereto.
15. "Development Rights" shall mean any right or combination of rights
hereafter reserved by Declarant to (a) add real property or improvements to the
Condominium; (b) create Units, Common Elements and/or Limited Common Elements
within the Real Property included or added to the Condominium; and (c) subdivide Units
or convert Units into Common Elements.
16. "Dispose" or "Disposition" shall mean a voluntary transfer or
conveyance to a purchaser of any legal or equitable interest in a Unit, but does not
include the transfer or release of a security interest.
17. "Eligible Mortgagee" shall mean the holder of a mortgage on a Unit who
has filed with the Secretary of the Association a written request that such mortgagee be
provided with copies of notices of any action by the Association that requires the
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consent of mortgagees.
18. "Foreclosure" shall mean a forfeiture or judicial or nonjudicial foreclosure
of a real estate contract, mortgage or deed of trust, together with a deed given in lieu
thereof.
19. "Leasehold Condominium" shall mean a Condominium in which all, or a
portion of, the real property is subject to a lease, the expiration or termination of which
lease will terminate or reduce in size the Condominium. This Condominium is a
Leasehold Condominium because the land on which the building and other
improvements are situated is leased from the City of Auburn and is not owned by
Declarant. The subject Ground Lease with the City of Auburn has a total initial term of
fifty (50) years. Upon the termination of the Ground Lease, title to the land and building
will revert to the City of Auburn, free and clear of such Ground Lease and this
Condominium.
20. "Limited Common Elements" shall mean those portions of the Common
Elements which are allocated by Article VII hereof for the use of one or more Units, but
fewer than all of the Units, to the exclusion of the remaining Units.
21. "Mortgage" shall mean a recorded mortgage or deed of trust creating a
lien against a Unit and shall also mean the vendor's interest in any and all real estate
contracts for the sale of a Unit.
22. "Mortgagee" shall mean a bank, savings and loan Association, a
mortgage company or other entity chartered under federal or state laws and authorized
to invest or loan money secured by an interest in real property, or any such federal or
state entity or agency, or any other person or entity, holding a mortgage, deed of trust
or vendor's interest in a real estate contract affecting the title to a Unit.
23. "Mortgagee of the Condominium" shall mean the holder of a mortgage
or deed of trust with respect. to the Real Property which this Declaration affects, which
mortgage or deed of trust was recorded prior to or .contemporaneous with the
recordation of this Declaration. The term "Mortgagee of the Condominium" does not
include Mortgagee of a Unit, unless the context otherwise requires.
24. "Mortgagee of a Unit" shall mean the beneficial owner, or the designee of
the beneficial owner, of an encumbrance on a Unit created by mortgage or deed of trust
and shall also mean the vendor, or the designee of the vendor, under any and all real
estate contracts for the sale of a Unit. Unless otherwise required by the context, where
used in this Declaration, the term "Mortgagee of a Unit" includes the "Mortgagee of the
Condominium".
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25. "Person" shall mean a natural person, corporation, limited liability
company, partnership, limited partnership, trust, governmental subdivision or agency or
any other legal entity.
26. "Purchaser" shall mean any person, other than Declarant or a dealer,
who by means of a Disposition acquires a legal or equitable interest in a Unit.
27. "Real Property" shall mean the land described in Schedule "A" of this
Declaration, all of which is held by Declarant as a leasehold interest pursuant to the
Ground Lease, the building and all improvements and structures now or hereafter
placed on the land, and all easements, rights and appurtenances belonging to same,
and upon creation of Phase II, the land described in Schedule "B" of this Declaration, all
of which will.- be held by Declarant as a leasehold interest, the building and all
improvements and .structures as may hereafter be placed thereon, and all easements,
rights and appurtenances belonging to the same, all. as more fully described in Article II
hereof.
28. "Record" shall mean to file for record with the office of the King County
Auditor, located in Seattle, Washington, and/or such other place as this Declaration and
the Survey Map and Plans are required to be filed.
29. "Aviation Purposes" shall mean use for the operation of storage of
aircraft and related accessories and aviation operations.
30. "Special Declarant Rights" shall mean rights reserved for the benefit of
Declarant to: (a) complete improvements indicated on the Survey Map-and Plans filed
with this Declaration; (b) exercise any development rights as defined hereinabove; (c)
maintain signs advertising Units in the Condominium for sale; (d) use easements
through the Common Elements for the purpose of making improvements within the
Condominium, including those additions to the Condominium as may be constructed, as
specified under Article XIX; and (e) appoint or remove any officer of the Association or
any member of the Board of Directors during the period of Declarant control, as
specified in Article XI.
31. "Survey Map and Plans" shall mean the survey map for the Real
Property and a set of plans for the building within which the Units are located, which are
filed for record in accordance with the Act. "Survey Map and Plans" shall also include
the survey map of real property and set of plans for the building that may hereafter be
filed for record pursuant to Article II.
32. "Unit" shall mean a physical portion of the Condominium designated for
separate ownership, the boundaries of which are described in Article IV, each of which
is also identified in the Survey Map and Plans.
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33. "Unit Owner" shall mean any person, including Declarant, individually or
collectively, who owns a Unit or who holds a vendee's interest under any real estate
contract of purchase of a Unit, but does not include a person who has an interest in a
Unit solely as security for an obligation.
ARTICLE II
Special Declarant Rights
A. Development Rights.
1. Land Described. The land on which the units and common
elements of the Condominium are located is described in Schedule "A." Declarant also
holds an option to lease from the City of Auburn other contiguous real property, which is
legally described in Schedule "B" hereto.
2. Phase I. This Declaration, in combination with the survey map of
plans, identifies the units in common elements which are submitted to the provisions of
the act as of the recording of this Declaration and the Survey Map and Plans. These
improvements and the real property are referred to in this Declaration as Phase- I.
There are seventeen (17) units within Phase I, which are situated in three (3) buildings.
3. Phase II. Declarant has entered into an option for lease of real
property with the City of Aubum dated the 23rd day of April, 2002, which grants to
Declarant _the right to amend the Ground Lease to incorporate that tract of ground
described in Schedule "B" on the City of Aubum Airport; provided, however, that
Declarant must exercise its option to lease such land not later than March 31, 2003.
Declarant is not obligated to exercise such option, but Declarant intends to do so at this
time. In the event that such option is exercised with the City of Auburn, then Declarant
intends to construct thereon three (3) additional buildings in which will be situated
eighteen (18) units. Subsequent to the execution of an amendment to the Ground
Lease with the City of Auburn, Declarant intends to commence construction of such
hangar buildings, and, upon completion of construction of such buildings and following
compliance with the provisions of this Declaration and the Act, Declarant intends to
submit such completed buildings to the provisions of this Act to add such eighteen (18)
units to this Condominium as Phase II.
4. Construction of Phase II. Declarant intends to exercise the option
to lease as described in subsection 3 above, not later than the termination date of such
option and thereafter to commence and to complete construction of the buildings to be
situated within Phase II. Upon the completion of construction improvements in Phase
II, Declarant intends to submit Phase II as a portion of this Condominium. In
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furtherance thereof, Declarant reserves the -right to amend this Declaration and a
Survey Map and Plans upon the submission for Phase II by recording an amendment to
each of said documents, by which Phase II shall be a complete part of this
Condominium. Accordingly, Declarant further reserves the right to construct and to
submit as a portion of the Condominium Phase II, which shall consist of eighteen (18)
additional units, for a period of two (2) years following the date of this Declaration at the
conclusion of which, if not been developed or if not been- substantially completed,
Phase II shall not thereafter be added to this Condominium unless approved by the
Association following a request therefore by the Declarant.
5. Change and Allocated Interests. The allocated interest assigned
to each unit by this Declaration will automatically change upon the completion of
construction in submission to the provisions of this Declaration and the Act of those
uriits and common elements included within Phase II, as identified in the amended
Declaration and the amended Survey Map and Plans recorded in conjunction therewith.
By accepting any interest in any unit and/or in the condominium, the owner or holder
thereof fully consents and agrees to the modification of the allocated interest assigned
to each unit as identified and specified in Schedule "C" to this Declaration. to addition,
the owners and/or mortgagees of existing units in the Condominium respectively agree
to the partial defeasance of their allocated interests, as specified in Schedule "C," at
such time as Phase II is completed and then added to the Condominium, respectively;
provided, however, that the common elements then being a part of the Condominium
shall be expanded as identified in the amended Declaration and on the amended
Survey Map and Plans recorded in conjunction therewith.
6. Character of Improvements in Phase 11. The quality of
construction of those improvements to be added by Phase II shall be of the same
general composition and quality of construction as identified in Article III hereof, and
such additional improvements shall be harmonious and compatible with those
improvements situated on the real property.
B. Completion of Improvements. To the extent that any .improvements
within the. Condominium, as described on the Survey Map and Plans recorded in
conjunction herewith, are not completed upon the recording .hereof and thereof, and/or
to the extent that any improvements within Phase II of the Condominium as described
in the amended Declaration and on the amended Survey Map and Plans recorded in
conjunction therewith, are not completed upon the recording thereof, the Declarant
reserves the right to complete the construction of such incomplete improvements
subsequent to each such date of recording, for the benefit of Declarant, the Association
and the Condominium as a whole.
C. Marketing. Declarant does not reserve any of those Special Declarant
Rights defined in RCW 64.34.020(29)(c), except Declarant reserves the rights to
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maintain a sales office within any Unit in the Condominium owned by Declarant and to
place signs advertising Units in the Condominium for sale at locations on the
Condominium of Declarant's election, until such time as Declarant has sold each of the
Units presently existing and/or as added by Phase IL
D. Reservation of Easements. Pursuant to the provisions of Article XIX
hereof, Declarant hereby reserves unto itself easements through the Common
Elements and through the portion of the real property described in Schedule "A" hereto
not submitted currently as a portion of the Condominium for the purpose of completing
all improvements within the Condominium in accordance with Section B of this Article
an for the purpose of developing and construe#ing all improvements and modifications
to Phase II in order to add Phase II to this Condominium.
ARTICLE 111
Description of Building
There shall initially be three {3) buildings situated within the Condominium prior
to the addition of Phase II. Such building is of steel frame construction with metal
exterior.
ARTICLE IV
Description of Units. Location. Area and Size
A. General Description. There shall initially be seventeen (17) units
comprising this Condominium prior to the addition of Phase II of the Condominium.
Each of the Units is of the size, expressed in square footage, and composition as
identified in Schedule "C" hereto and on the Survey Map and Plans. Each Unit is
identified by a number, with the exact location of each shown on the Survey Map and
Plans recorded in conjunction herewith. Each Unit has vehicular and pedestrian
access, over property owned by the City of Auburn, to public streets.
B. Unit Boundaries. The boundary of each Unit shall be the airspace, non-
bearing walls and partitions, and all other fixtures and improvements lying within the
exterior walls and shall include the interior surfaces of the exterior walls surrounding
each Unit and the interior surfaces of the bearing walls and bearing columns serving
more than the subject Unit. The. boundary of each Unit shall be measured to the stud
walls and to the structural portions of the floors and ceilings, and shall include the unit
doors .and related mechanisms. Accordingly, the boundaries of a Unit shall include all
lath, furring, wallboard, plasterboard, plaster, paneling, tiles, paint, finished flooring and
any other materials constituting any part of the finished surfaces of the walls, floors and
ceilings. All other portions of the walls, floors and ceilings are a part of the Common
8 -
Elements.
ARTICLE V
Leasehold Condominium
A. Ground Lease. As identified in Article I, Section 19, the land on which
the Condominium is situated is not owned by Declarant, but is instead leased by
Declarant from the City of Aubum, a Washington. Municipal Corporation. The Ground
Lease, which is captioned "CITY OF AUBURN AIRPORT HANGAR LAND LEASE
AGREEMENT", was executed between the City of Aubum and Declarant effective
September 14, 2001. An original and/or fully executed copy thereof may be inspected
in the main office of the City of Aubum in Aubum, Washington -and in the office of
Declarant. In addition thereto, a fully executed copy of the Ground Lease shall be
incorporated as an attachment into any Public Offering Statement provided by
.Declarant to each prospective purchaser. The City of Aubum has signed this
Declaration pursuant to the requirements of RCW 64.34.220(1). The City of Aubum
has not approved any provisions of this Declaration which are not specifically required
to be approved by a lessor pursuant to the provisions of RCW 64.34.220(1).
B. Term of Lease. The term of the Ground Lease commenced on
September 14, 2001, and has a total initial term of fifty (50) years measured from such
date. Accordingly, the Ground Lease is scheduled to terminate on September 13,
2051.
C. Scope of Lease. This Condominium is created from the building,
improvements, paved areas, easements and other rights and appurtenances
constructed upon, and belonging to, the leasehold interest in the land identified in the
Ground Lease, which land is legally described on Schedule A hereto. The land itself,
which is owned by the City of Auburn, does not constitute a part of the Condominium.
This Declaration and the Condominium is subject, and subordinate in all respects, to
the terms of the Ground Lease. Any provisions of this Declaration which are
inconsistent with any provisions of the Ground Lease will be of no force and effect as
against the City of Auburn.-
D. Consequences of Termination of Lease/Absence of Reversion
Rights. The provisions of the Ground Lease provide that title to any buildings or other
improvements situated on the land subject to the Ground Lease at the termination of
the Ground Lease, whether such termination occurs at the end of the initial term or at
the end of the renewal term, shall automatically become the property of the City of
Aubum. If the Association be in default of its obligations to the City of Aubum,
however, the rights hereinabove stated may be superseded by the City of Auburn or its
successors and/or assigns. Notwithstanding the foregoing, nothing set forth in the
9
Ground Lease prohibits the City of Aubum and the lessee from negotiating a further
extension term of the Ground Lease, but the City of Auburn has absolutely no obligation
to do so.
E. Assignment of Leasehold Interest. Declarant is the lessee under the
Ground Lease with the City of Aubum. It is intended by Declarant, and so permitted in
the Ground Lease, that subsequent to the recordation of this Declaration and the
Survey Map and Plans, the formation of the Association and the conveyance of units
within the Condominium by Declarant, the lessee's in#erest in the Ground Lease
presently held by Declarant shall be assigned to the Association, upon the recording of
the deed transferring Declarant's interest in the -last condominium unit to a unit owner.
other than Declarant; upon which occurrence the Association shall assume and fulfill all
of the terms, conditions, rights and obligations of the Ground Lease. Purchasers of
hangar units shall automatically be deemed sublessees; .provided, however, the City of
Aubum reserves the right to approve the Association documents and to approve the
assignment of the Ground Lease to the Association. After assignment of the Ground
Lease by Declarant to the Association, the Association shall then become- and be the
sole representative of the Unit Owners with regard to all dealings with the City of
Aubum. Following the conveyance of the last unit by Declarant to a third party, and
whether or not such assignment has then been made by Declarant to the Association,
the Association shall pay, from the common expense fund, the Ground Lease payments
due to the City of Auburn. At such time that Declarant has sold the last Unit to a Unit
Owner other than Declarant, the Declarant shall have no further liability or responsibility
to the Ground Lease, after which, the Unit Owners and the Association shall be the sole
lessee under the Ground Lease.
F. Additional Phases. In the event that Phase II is constructed and is
added to the Condominium, Phase II shall be subject to the Ground Lease. Monthly
rent owing to the City of Auburn under the Ground Lease for Phase II will be added to
the monthly amount under the Ground Lease for Phase I. All common expenses
payable by the Association, shall be assessed proportionately to each unit owner and
all of the two phases, if Phase II is added to the Condominium.
G. Default Under Ground Lease. As set forth hereinabove and in Article
XII, the Association shall collect from each Unit Owner, as part of said Unit Owner's
common expense assessments, such Unit Owner's allocated share of the total rental
owed to the City of Auburn under the Ground Lease. The failure of the Association to
pay rent to the City of Auburn as and when due and/or the failure of the Association to
perform any other term or condition under the Ground Lease will entitle the City of
Auburn to terminate the Ground Lease, which termination shall result in the forfeiture of
any and all right, title and interest in the Ground Lease and the leasehold created
thereby which is then held by the Association, the Unit Owners, their mortgagees
and/or Declarant.
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H. Consent. Under the Ground Lease and elsewhere in this Declaration, the
consent of the City of Aubum to certain activities or conduct of Declarant, the
Association and the Unit Owners is required. Where such consent is required, it must
be evidenced in writing, but shall not be unreasonably withheld.
ARTICLE VI
Common Elements
Except as otherwise specifically reserved, assigned or limited by the provisions
of Article VI1, the Common Elements of the Condominium, the exact locations to be
determined from the Survey Map and Plans, consist of the following:
1. The leasehold interest in the parcel of land described in Schedule "A"
hereto, which has been included in this Condominium by this Declaration.
2. The foundations, columns, girders, studding, joists, beams, supports and
all other structural parts of the building to the boundaries of each Unit as the boundaries
are defined herein, and any replacements thereto.
3. The entire systems for central utility services, such as power and light,
including all lines, pipes, cables, conduit and other accessories, up to and including the
breaker panel box in each unit.
4. The tanks, pumps, motors, fans, compressors, ducts and, in general, all
apparatus and installations existing for. common use.
5. The areas which surround and provide access to the building, to the
extent the same be a portion of the land described on Schedule "A".
6. All other parts of the Real Property necessary or convenient to its
existence, operation, maintenance and safety.
ARTICLE VII
Limited Common Elements
A. Description. The Limited Common Elements are defined as those
portions of the Common Elements which are reserved for the exclusive use of one or
more Units, to the exclusion of other Units. Because of the nature of construction of
this Condominium, the bi-fold doors and track doors shall be considered Limited
Common Elements included at the present time. Any further Limited Common
11
Elements will not be created absent an amendment to the Declaration and Survey Map
and Plans.
B. Boundaries of Interior Limited Common Elements. The actual
boundary of each Limited Common Element bounded by exterior walls shall be the
airspace, non-bearing walls and partitions, and all other fixtures and improvements lying
within the exterior walls and shall include the interior surfaces of the exterior walls
surrounding each Limited Common Element and the interior surfaces of the bearing
walls and bearing columns serving more than the subject Limited Common Element.
The boundary of each such Limited Common Element shall be measured to the stud
walls and #o the structural portions of the floors and ceilings; accordingly, the
boundaries of a Limited Common Element bounded by exterior walls shall include all
lath, furring, wallboard, plasterboard, plaster, paneling, tiles, paint, finished flooring and
any other materials constituting any part of the finished surfaces of the walls,. floors and
ceilings. All other portions of the walls, floors and ceilings shall be a part of the
Common Elements.
C. Boundaries of Other Limited Common Elements. In the event that
such be ,created in the future, the actual boundary of each Limited Common .Element
not bounded by exterior walls shall be the common boundary of .the adjoining Unit, if
applicable, as defined in Article IV, Section B hereof, and the common boundary with
Common Elements, as more fully depicted in the Survey Map and Plans.
D. Applicable Easements. In the event that such be created in the future,
all Limited Common Elements shall be subject to the easements specified in Article
XIX.
ARTICLE VIII
Allocated Interests in Common Elements
A. Phase I. The total allocated interests of the Condominium and the
allocated interest assigned to each of the seventeen (17) Units within the Condominium
are expressed in Schedule "C." The allocated interests of each Unit as so expressed
include the value of the Unit and the value of percentage interest of each such Unit in
the Common Elements. The allocated interest assigned to each Unit as listed in
Schedule "C" are based on relative values to establish the allocated interest required by
the Act. The allocated interests assigned to each Unit are determined on the basis of
the total square footage of each Unit divided into the aggregate square footage of all of
the Units. Upon the joinder of Phase II to the Condominium, if applicable, the allocated
interests assigned to the original seventeen (17) Units in Phase I shall be diluted, in
order that the aggregate allocated interests assigned to all of the thirty-five (35) Units in
the Condominium, including those additional eighteen (18) Units added by Phase I1, the
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total is one hundred percent (100%).
B: Phase I1. As a part of the amended .Declaration recorded upon the
joinder of Phase II, if applicable, each new Unit added to the Condominium as a portion
of Phase II shall have allotted to it its allocated interest in the Common Elements. The
allocated interest of each Unit as so expressed, shall include the value of the Unit, the
value of any limited Common Elements assigned to such Unit, if any, and the value of
its undivided interest in the Common Elements. The allocated interest assigned to
each of such new Units shall also be determined on the basis of the total square
footage of such new Unit divided into the aggregate square footage of all Units within
the Condominium, including the eighteen (18) Units created hereby and each and every
additional Unit hereafter added to the Condominium as identified in each such
amended Declaration. The purpose for this method is to insure a uniform and equitable
method of calculating the percentage of allocated interest of each new Unit added to
the Condominium, both in relation to each of such new Units and released unto each of
the Units which were a portion of the Condominium in Phase I. Further, as is stated in
Section A hereof, the allocated interest assigned to each pre-existing Unit in the
Condominium shall be diluted upon the addition to the Condominium of Phase II, in
order that the aggregate of the allocated interest assigned to each of the then existing
Units shall at all times total one hundred percent (100%).
ARTICLE IX
Use• Regulation of Uses; Architectural Uniformity
A. Aviation Purposes. The Units shall be used primarily for aviation
purposes, by the Owner thereof, or by those utilizing the Unit pursuant to a lease or
rental agreement with the Owner or othen-vise under a grant of authority- from the
Owner. Any such use of the Units and the Common Elements shall be carried on in
strict compliance with the permissible uses authorized by the Ground Lease, and no
activity shall be carried on which would constitute a violation of any term or condition of
the Ground Lease, specifically, but not limited to airframe or power plant maintenance
or repair except those allowed by aircraft owner under FAA Chapter 130.
B. Unit Rental. The Owner of a Unit, including Declarant, a mortgagee in
possession, or any successor in interest thereto, may lease or rent a .Unit on a month-
to-month basis or for a longer term. Any lease or rental agreement for a Unit shall be in
writing and by its terms shall provide that such lease is subject, in all respects, to the
provisions of this Declaration, the Bylaws, any rules and regulations of the Association
and the City of Auburn, any amendments thereto and the Ground Lease with the City of
Auburn. Any such lease or rental agreement shall provide that any failure by a tenant
to comply with the terms contained in said documents shall be a default under the
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terms of said lease or rental agreement and shall be a basis for termination thereof.
The Association shall approve the form of all lease and rental agreements of Units to
insure compliance. with the provisions hereof. Each Owner shall notify the Association
and the City of Aubum in writing within five (5) business days following the execution of
any lease or rental agreement covering a Unit of the identity, telephone numbers and
addresses of each tenant/lessee, of the type and FAA registration number of any
aircraft which will be occupying the Unit and of the duration of the lease/rental
agreement. The Owner of a Unit so leased or .rented shall at all times be responsible
and liable to the Association for all acts or neglect of the lessee/tenant.
C. Vehicle Parking. Parking of any motor vehicle at any location within the
Condominium is subject to the limitation that no such motor vehicle shall obstruct in any
fashion the free passage of aircraft nor the free. passage of vehicles and/or pedestrians
to and from other Units. Unit owners, and their tenants and. guests, may park their
motor vehicles within their respective Units while operating their aircraft exterior to their
Units; however, Units are not to be used as a parking garage for motor vehicles. Any
motor vehicle parked at any location within the Condominium shall be operable. The
board may require removal of any inoperable or unsightly vehicle and/or other
equipment or item improperly stored within the Condominium. If the same is not
removed by the responsible owner, the board may cause the removal thereof at the risk
and expense of the Unit owner thereof.
D. Driving Area and Walkways. Driving areas, walkways, corridors and
parking areas within the Common Elements shall be used exclusively for normal transit,
and no obstructions shall be placed thereon except by express written consent of the
Association.
E. Interior Unit Maintenance and Alterations. The Owner of each Unit
shall, at the sole expense of such Unit Owner, have the right and the duty to keep the
interior of such Owner's Unit and the equipment, appliances and appurtenances for
such Unit in good order, condition and repair and shall perform all interior maintenance
necessary to maintain the good appearance and condition of such Unit. The Owner of
each Unit shall be responsible for the maintenance, repair or replacement of any.
plumbing .fixtures, water heaters, fans, heating or other equipment, doors, electrical
fixtures or appliances which may be in or connected with the Owner's Unit, unless the
same have been defined as Common Elements.
No Owner of a Unit shall commit or permit waste of such Unit and/or of the
Common Elements, and the liability in the event of such occurring shall be at the sole
cost and expense of the responsible Unit Owner. This Section shall not be construed to
permit any interference with or damage to the structural integrity of the building or
interference with the use and enjoyment by others of the Common Elements and/or
other Units, nor shall it be construed to limit the powers or obligations of Declarant or of
14
the Association.
F. Limited Common Elements. Limited Common Elements shall be for the
sole and exclusive use of a designated Unit or designated Units, although the use,
condition, maintenance and appearance of such Limited Common Elements shall be
regulated pursuant to this Declaration, the Bylaws and the rules and regulations of the
Association. Performance of maintenance or repair work for such Limited Common
Elements shall be carried out by the Association and not by the Unit Owner to which
such Limited Common Elements may be assigned.
G. Exterior Appearance. in order to preserve a uniform exterior
appearance of the building and base structure, and of the Common Elements, the
Board may require and provide for the painting and other exterior finish of the exterior
surfaces of .the Common Elements, may prescribe the type and color for such
decorative finishes and may prohibit, require or regulate any modification of the exterior
surfaces of the Common Elements. All trash from a Unit shall be placed in containers
which shall be kept in garbage collection areas designated by the Association.
H. Effect on Insurance. Nothing shall be done or kept in any Unit or in the
Common Elements which will increase the rate of, or cause the cancellation of,
insurance for the Condominium.
I. Signs. No sign of any kind shall be displayed to the public view on or
from any Unit or from the Common Elements without the consent of the Board,
pursuant to the rules and regulations adopted thereby, except as provided in Article II,
Section C, nor without the consent of the City of Aubum.
J. Unit Activity. No offensive activity shall be carried on in any Unit or in
the Common Elements, nor shall anything be done which may be or become an
annoyance or nuisance to others using the building or to the public. No commercial
activity shall take place within any Unit, including commercial maintenance of aircraft;.
provided, however, that work or maintenance to an aircraft owned solely by the Unit
Owner is not considered commercial activity. Nothing shall be altered or constructed in
the Common Elements except upon the prior written consent of the Association and, if
applicable, the City of Auburn. Nothing shall be done or carried on in a Unit or within
the Condominium which is in violation of any applicable law or regulation and/or any
term or condition of the Ground Lease. 1n order to insure the structural integrity of the
building, at all times that the. door to a Unit is not required to be unlocked for operational
purposes, the same shall be locked to avoid damage from high winds.. Unit owners
hereby acknowledge and agree that any animals brought to the Condominium must be
kept under control by means of a leash or a cage. The Condominium will not allow Unit
owners or their guests to allow animals and/or pets to roam freely around the
Condominium and will not allow pets andJor animals to roam freely within any Unit
15
within the Condominium.
K. Bylaws, Rules and Regulations. The Association may adopt
reasonable additional provisions in the Bylaws or in the rules and regulations of the
Association as necessary or advisable to insure compliance with, and to supplement,
the foregoing provisions. Each Unit Owner shall comply in all respects therewith.
ARTICLE X
Unit Owners' Association
In order to provide for administration of the Condominium, an entity shall be
created which shall be called the "Auburn Hangars Owners' Association" in accordance
with the following terms and conditions:
A. Form of Association. The Association shall be organized as a nonprofit
mutual corporation in accordance with the provisions of RCW Chapter 24.06 not later
than seven (7) days following the date of recording of this Declaration.
B. Membershia.
1. Qualification. Each Unit Owner (including. Declarant) shall be a
member of the Association and shall be entitled to one membership for each Unit so
owned; provided, that if a Unit has been sold on contract, the contract purchaser shall
exercise the rights of the Unit Owner for purposes of the Association, this Declaration;
the Bylaws and the rules and. regulations of the Association, except as hereinafter
limited, and shall be the voting representative unless otherwise specified. Ownership of
a Unit shall be the sole qualification for membership in the Association.
2. .Transfer of Membershiu. Association membership of each Unit
Owner (including Declarant) shall be appurtenant to the ownership of a Unit and shall
not be assigned, transferred, pledged, hypothecated, conveyed or alienated in any way
except upon the transfer of title to said Unit and then only to the Purchaser of such Unit.
Any attempt to make a prohibited transfer shall be void. Any disposition of a Unit shall
operate automatically to transfer the membership in the Association appurtenant
thereto to the new Unit Owner thereof.
C. Voti n .
1. Number of Votes. The total voting power of all Unit Owners shall
be 100 votes and the total number of -votes available to the Owner or Owners of any
one Unit shall be equal to pro rata percentage of the allocated -interest of each Unit
rounded to the nearest one-hundredth of one percent, including the joinder of Phase II,
16
if applicable.
2. Votinct. There shall be one (1) voting representative for each Unit.
Declarant shall be considered a "Unit Owner", as that term is used herein, and shall be
the voting representative with respect to each Unit owned by Declarant. In the event
that the Association is the Owner of any Unit, the Association shall not be entitled to
cast the votes allocated to such Unit. If a Unit Owner (including Declarant) owns more
than one Unit, such .Unit Owner shall have the votes for each Unit so owned. The
voting representative shall be designated by the Owner or Owners of each Unit by
written notice to the Board and need not be a Unit Owner. The designation shall be
revocable at any time by written notice to the Board from the Owner of the Unit, by
actual notice to the Board of the death of the Unit Owner or of the voting representative,
by written notice from the lawful holder of a power of attorney of a Unit Owner or by the
guardian of any judicially-declared incompetent Unit Owner. This power of designation
and revocation may be exercised by the guardian of a Unit Owner and by the
administrator or executor of a Unit Owner's estate. Where no designation is made, or
where a designation has been made but is revoked and no new designation has been
made prior to any meeting, no vote may be cast for such Unit other than by the Unit
Owner thereof.
3. Joint Unit Owner Disputes. The vote of a Unit must be cast as a
single lot, and fractional votes of such Unit's allocated vote shall not be allowed. In the
event that joint Owners of a Unit are unable to agree among themselves as to how their
vote shall be cast, they sha11 lose their right to vote on the matter in question. In the
event more than one vote is cast for a particular Unit, none of said votes shall be
counted and said votes shall be deemed void.
4. Pledged Votes. If a Unit Owner is in default under a first mortgage
on the Owner's Unit for ninety (90) consecutive days or more, the first Mortgagee of the
Unit shall automatically be authorized to declare at any time thereafter that such Unit
Owner has .pledged such Unit Owner's vote on all issues to such Mortgagee during the
continuance of the default. In the alternative, if the Board has been notified that a Unit
Owner has pledged such Unit Owner's vote to a Mortgagee, or in the event that the
Owner of the Unit has otherwise pledged his vote regarding special matters to a
Mortgagee under a duly recorded mortgage, only the vote of such Mortgagee will be
recognized in regard to the special matters upon which the vote is so pledged, if a copy
of the instrument with such pledge has been filed with the Board. Amendments to this
subsection shall only be effective upon the written consent of all the voting Unit Owners
and their respective mortgagees, if any.
D. Meetings. Audits. Notices of Meetings.
Annual Meeting. There shall be an annual meeting of the Unit
17
Owners in the first quarter of each fiscal year of the Association at such reasonable
place and time as may be designated by written notice from the Board delivered
personally or by first class mail, postage prepaid, to all Unit Owners not less than ten
(10) days nor more than fifty (50) days prior to the date fixed for said meeting. The
notice concerning such annual meeting shall state the time and place of the meeting
and the items on the agenda to be voted on by the Unit Owners, including the general
nature of any proposed amendment to this Declaration or the Bylaws or any proposal to
remove a Director or an Officer. At the annual meeting, there shall be presented a
report of the financial condition of the Association, itemizing the total receipts and
disbursements for the just expired fiscal year, the allocation thereof to each, Unit, and
the estimated common expenses and required assessments, including the allocation
thereof to each Unit,, for the fiscal year commencing.
2. .Special Meetings. Special meetings of-the Unit Owners may be
called at any time, for the purpose of considering matters which by the terms of the Act,
of this Declaration, of the Articles of Incorporation or the Bylaws require the approval of
all or some of the Unit Owners or for any other reasonable purpose. Such meetings
shall be called by written notice from the President of the Association upon the decision
of the President, or after written request signed by a majority of the Board, or by written
request signed by the Unit Owners having at least twenty percent (20%) of the total
votes, which notice shall be delivered not less than ten (10) days nor more than fifty
(50) days prior to the date fixed for said meeting. The notice shall specify the date, time
and place of the meeting and shall include an agenda of the matters to be considered,
including the general nature of any proposed amendment to the Declaration or to the
Bylaws, changes in the previously approved budget that result in a change in
assessment obligations and any proposal to remove a director or officer.
3. Audits. The Board at any time, or by written request of Unit
Owners having at least forty percent (40%) of the total votes, may require -that an audit
of the Association. and management books be presented at any special meeting. A Unit
Owner, at such Owner's own expense, may at any reasonable time make an audit of
the books of the Board and the Association.
E. BYLAWS OF ASSOCIATION.
1. Adoption of Bylaws. Initial Bylaws for the administration of .the
Association and the Condominium, and for other purposes not inconsistent with the Act
or with this Declaration, shall be adopted by Declarant. Amendments to the Bylaws
may be adopted by the Association at an annual or special meeting of the Association
upon concurrence of voting Unit Owners holding sixty percent (60%) of the total voting
power.
2. Bylaw Provisions. The Bylaws shall contain provisions consistent
18
with this Declaration and the Act and may contain supplementary, but not inconsistent,
provisions .regarding the operation and administration of the Condominium, the
Association and the Board. The Bylaws shall establish provisions for quorum, ordering
of meetings and details regarding the giving of notice as required for the proper
administration of the Association and the Condominium. The Bylaws shall specifically
provide for:
a. The number, qualifications, powers and duties, terms of
office, and the manner of electing and removing members of the Board of the
Association and filling the vacancies thereof;
b. The election by the Board of Directors of such officers of the
Association as the Bylaws specify;
c. Which, if any, of the powers of the Board of Directors or of
the officers of the Association may be delegated to other persons or to a managing
agent thereof;
d. Which, if any, of the officers of the Association may prepare,
execute, certify and record amendments to this Declaration on behalf of the
Association; and
e. The method of amending the Bylaws.
ARTICLE XI
Management of the Condominium
A. Powers of the Association. The Association shall be empowered to:
1. Adopt and amend Bylaws, rules and regulations.
2. Adopt and amend budgets for revenues, expenditures and
reserves and impose and collect regular and special assessments for common
expenses from Unit Owners.
3. Hire, discharge or contract with managing agents or other
employees, agents and independent contractors.
4. Institute, defend or intervene in litigation or administrative
proceedings in its own name on behalf of itself or two or more Unit Owners on matters
affecting the Condominium.
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. 5. Make contracts and incur liabilities.
6. Regulate the use, maintenance, repair, replacement and
modification of Common Elements.
7. Cause additional improvements to be made as part of .the Common
Elements.
8. Acquire, hold, encumber, lease and convey in its own name any
right, title or interest to real or personal property; provided, however, that Common
Elements may be conveyed or subjected to a security interest only if the Owners of
Units to which at least Eighty (80%) percent of votes in the Association are allocated,
including Eighty (80%) percent of .the votes allocated to Units not owned by Declarant
or an affiliate thereof, agree to that action. Proceeds of any such sale or financing shall
be an asset of the Association.
9. Grant easements, leases, licenses and concessions through or
over the Common Elements.
10. Impose and collect any assessments, fees or charges for the use,
rental or operation of the Common Elements and for services provided to individual Unit
Owners.
11. Impose and collect charges .for late payment of assessments as _
hereinafter provided and, after notice and an opportunity to be heard by the Board and
in accordance with such procedures as provided herein, in the Bylaws and/or rules and
regulations adopted- by the Board, levy reasonable fines for, violations of this
Declaration, the Bylaws and/or the rules and regulations of the Association in accor-
dance with the previously established schedule thereof adopted by the Board and
furnished to the Unit Owners.
12. Impose and collect reasonable charges for the preparation and
recording of amendments to this Declaration and the Survey Map and Plans, for the
preparation and delivery of statements of delinquent assessments and the preparation
and delivery of any other documents required of the Association incident to the sale,
lease or rental of any Unit, including resale certificates required by RCW 64.34.435, as
presently in force or as hereafter amended.
13. Provide for the indemnification of its officers and the members of its
Board and to maintain directors' and officers' liability insurance.
14. Assign its right to future income, including the right to receive
common expense assessments, except as otherwise limited herein.
20
15. Exercise any other powers conferred by the Act, this Declaration or
the Bylaws.
16. Exercise any other powers granted by the state of Washington to a
nonprofit corporation consistent with the provisions hereof.
17. Exercise any other powers necessary and proper for the
governance and operation of the Association.
B. Management by the Board. Administrative power and authority of the
Association shall vest in a Board of Directors. The number of directors shall be spe-
cified in the Bylaws and shall be sufficient to handle adequately the affairs of the
Association. The Board .may delegate all or any portion of its administrative duties to a
manager, managing agent and/or officer of the Association, in such manner as provided
in the Bylaws. The Board shall elect a president, vice-president, secretary and
treasurer, together with such other officers as shall be deemed to be required from. time
to time, each of whom shall perform such duties as are required of them as provided in
the Bylaws of the Association.
C. Election of the Board.
1. Declarant shall appoint and shall remove the members of the
Board and the officers from the time of creation of the Board until the earliest to occur of
the following: (a) Sixty (60) days after conveyance to Unit Owners other than Declarant
of seventy-five (75%) percent of the total number of Units which may be created within
the Condominium by Declarant; (b) two years after the last disposition of a Unit by
Declarant, except as security for a debt; (c) two (2) years after the development right to
add new Units under Phase II to the Condominium was exercised by Declarant; (d) the
date on which Declarant records an amendment to the Declaration pursuant to which
Declarant voluntarily surrenders the right to appoint and remove officers and members
of the Board. Following the occurrence of the first of such events, all steps shall
commence leading to the complete transfer of control of the Association to the Unit
Owners as set forth hereafter and further as required in RCW 64.34.312, as presently in
force or as hereafter amended.
2. Irrespective of the provisions in Subsection 1 above, not later than
sixty (60) days after conveyance of twenty-five (25%) percent of the total number of
Units which may be created within the Condominium by Declarant to Units Owners, at
least one member and not less than twenty-five (25%) percent of the members of the
Board shall be elected by Unit Owners other than Declarant, and not later than sixty
(60) days after conveyance of fifty (50%) of the total number of Units which may be
created within the Condominium by Declarant to Units Owners, at least thirty-three and
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one-third (33-1/3%) percent of the members of the Board shall be elected by Unit
Owners other than Declarant.
3. Within thirty (30) days after the termination of the period of
Declarant control of the Board, as identified within Subsection 1 above, the Units
Owners shall elect the Board, which shall consist of at least three (3) members and
each of whom shall take office upon election. The Board shall elect its officers, each of
whom shall also take office upon election.
D. Authority of the Board.
1. The Board, for the benefit of the Condominium and the Unit
Owners, shall enforce -the provisions of this Declaration, the Articles of Incorporation,
the Bylaws and the rules and regulations, if any, of the Association, shall insure full
performance by the Association of the obligations imposed on the Association by the
terms of the Ground Lease of Phase I and by the terms of the Ground Lease for Phase
II, as may hereafter be applicable, shall have all powers and authority permitted to the
Board under the Act, other applicable law and this Declaration, and shall acquire and
shall pay for, out of the common expense fund hereinafter provided for, all goods and
services requisite for the proper functioning of the Condominium, including, but not
limited to, the following:
(a) Any necessary utility services as required for the Common
Elements.
(b) Policies of insurance or bonds providing coverage for fire
and other hazards, liability for personal injury and property damage, and for fidelity of
Association officers, directors and other employees, as the same are more fully
required hereafter and in the Bylaws.
(c) The service of persons or firms as required to manage
properly the affairs of the Condominium to the extent deemed advisable by the Board,
as well as such other personnel as the Board shall determine are necessary or proper
for the operation and maintenance of the Common Elements, whether such personnel
are employed directly by the Board or are furnished by the designated manager or
management firm or agent.
(d) Legal and accounting services necessary or proper in the
operation of the Association affairs, administration of the Common Elements or the
enforcement of this Declaration. Accounts will be maintained by an acceptable
software program by an experienced, licensed, and insured, bookkeeper.
(e) Painting, maintenance, repair and improvements of the
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Common Elements (and Limited Common Areas as applicable), and such accessories
and equipment for the Common Elements as the Board shall determine are necessary
and proper, and the Board shall have the exclusive right and duty to acquire the same
for the Common Elements.
(f) Any other materials, supplies, labor, services, maintenance,
repairs, structural alterations and/or insurance which the Board is required to secure by
law, or which in its opinion shall be necessary or proper for the operation of the
Common Elements and for the enforcement of this Declaration; provided, that if for any
reason such materials, supplies, labor, services, maintenance, repairs, structural altera-
tions and/or insurance are provided for particular Units or their Unit Owners, the cost
thereof shall be specifically charged to the Owners of such Units.
(g) Maintenance and repair of any Unit, its appurtenances and
appliances, if such maintenance or repair is reasonably necessary in the discretion of
the Board to protect the Common Elements or preserve the appearance and value of
the Condominium, if the Owner of said Unit has failed or refused to perform -said
maintenance or repair within a reasonable time after written notice of the necessity of
said maintenance or repair has been delivered by the Board to the Unit Owner;
provided, that the Board shall levy a special charge against the Unit Owner and the Unit
for the cost of such maintenance and repair.
(h) The Board may also pay any amount necessary to
discharge any lien or encumbrance levied against the Condominium or any part thereof
which is claimed to, or which may, in the opinion of the Board, constitute a lien against
the Condominium or against the Common Elements, rather than merely against the
interest therein of particular Unit Owners: Where one or more Unit Owners are
responsible for the existence of such lien, they shall be jointly and severally liable for
the cost of discharging it, and any costs and expenses (including court costs and
attorney fees) incurred by the .Association by reason of such lien or liens shall be
specially charged against the Unit Owners and the Units responsible to the extent of
their responsibility.
(i) The Board's- powers hereinabove enumerated are limited to
the extent that the Board shall have no authority to acquire and pay for out of the
common expense fund capital additions and improvements (other than for purposes of
restoring, repairing or replacing portions of the Common Elements) having a total cost
in excess of One Thousand Dollars ($1,000.00), without first obtaining the affirmative
vote of the Unit Owners holding a majority of the voting power present or represented at
a meeting called for such purpose, or if no such meeting is held, then the written
consent of voting Unit Owners having a majority of the voting power; provided that any
expenditure or contract for each capital addition or improvement in excess of Ten
Thousand Dollars ($10,000.00) must be approved by Unit Owners having not less than
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Sixty-Six and Two-Thirds percent (66-2/3%) of the total voting power.
Q) Nothing herein contained shall be construed to give the
Board authority to conduct an active business for profit on behalf of all the Unit Owners
or any of them, which is expressly prohibited.
(k) The Board shall have the exclusive right to contract for all
goods and services, payment of which is to be made from the common expense fund.
The Board may delegate such powers subject to the terms hereof.
(!) The Board may, from common expense fund of the
Association, acquire and hold. in the name of the Association, for the benefit of the Unit
Owners, tangible and intangible personal property and real property, or any interest
therein, and may dispose of the same by sale or otherwise; and the beneficial interest
in such property shall be owned by the Unit. Owners in the same proportion as their
respective interests in the Common Elements, and such property shall thereafter be
held, sold, leased, rented, mortgaged or otherwise dealt with for the benefit of the
Association as the -Board may direct. The Board shall not, however, in any case
acquire by lease or purchase real or personal property for a price in excess of One
Thousand. Dollars ($1,000.00), without first obtaining the affirmative vote of the Unit
Owners holding a majority of the voting power present or represented at a meeting
called for such purpose, or if no such meeting is held, then the written consent of voting
Unit Owners having a majority of the voting power; provided; that any lease or purchase
real or personal property for a price in excess of Five Thousand Dollars ($5,000.00)
must be approved by. Unit Owners having not less than Sixty-Six and Two-Thirds
percent (66-2/3%) of the total voting power.
(m) The Board and its agents or employees may enter any Unit
or Limited Common Elements, if existing, when necessary in connection with any
maintenance, repair and construction, or in order to insure compliance with the
provisions of the Ground Lease, for which the Board is responsible or in the event of an
emergency. Such entry shall be made with as little inconvenience to the Unit Owner or
tenant as practicable and upon prior notice if circumstances permit. Any' damage
caused thereby shall be repaired by the Board out of the common expense fund if the
entry was due to an emergency or for the purpose of maintenance or repairs to Units
where the repairs were undertaken by or under the direction or authority of the Board
(unless the emergency or maintenance was caused or necessitated by the Owner of
the Unit entered, in which case the cost shall be specially charged to the Unit Owner
whose Unit is entered).
(n) Each Unit Owner, by the mere act of becoming an Owner of
a Unit, shall irrevocably appoint the Board as such Owner's attorney-in-fact, with full
power of substitution, to take such action as is reasonably necessary to perform
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promptly the duties of the Association and Board hereunder, including but not limited to
the duties to maintain, repair and improve the Common Elements, the Limited Common
Elements, if applicable, to deal with a Unit upon damage or destruction and to secure
insurance proceeds.
2. In the discharge of its duties and in the exercise of its powers as
set forth in Section 1, but subject to the limitations set forth therein (including
Subsections 1 (i) and (I)), the Board may borrow funds on behalf of the Association and
in order to secure the repayment thereof may encumber, subject to the limitations set
forth in this Declaration, the Common Elements, Association funds and the allocated
interest of each Unit Owner therein.
ARTICLE Xll
Maintenance, Common Expense and
Common Expense Liabilitx;
Special Assessments
A. Common Expenses. Common expenses include those expenses
defined in the Act and in Article I, Section 8 hereof, specifically those expenses incurred
by the Association in the operation, management and administration of the
Condominium pursuant to the provisions hereof or as otherwise required or permitted
by the provisions of this Declaration or the Bylaws.
B. Annual Budget of Common Expenses. Prior to the annual meeting of
Unit Owners each fiscal year, the Board shall estimate the common expenses which it
anticipates will be incurred during the fiscal year commencing and determine the
regular assessments and any special assessments required to be paid to the
Association for such fiscal year; shall make provision for creating, funding and
maintaining reasonable reserves for contingencies, operations, repairs, replacement
and acquisition of Common Elements; and shall take into account any expected income
and any surplus available from the expired fiscal year's operations. The determination
and collection of assessments for the first year of operation of the Condominium shall
be made by Declarant. The Board may also, from time to time, impose such special
assessments as may be determined to be necessary by the Board, subject to the
restrictions set forth herein and/or in the Bylaws. If the sum estimated and budgeted for
a particular fiscal year at any time proves to be inadequate for any reason (including
nonpayment of certain Unit Owners' assessments), the Board may at any time levy a
further assessment. The annual budget and proposed assessments determined by the
Board shall be reviewed by the Unit Owners at the annual meeting of the Association,
or at any special meeting called for such purpose, and shall be deemed approved
unless the same be rejected by a majority of the votes cast, subject to the quorum
limitations set forth in the Bylaws of the Association.
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C. Payment by Unit Owners. Each Unit Owner shall pay assessments
made pursuant to this Article to the Treasurer of the Association at such intervals as the
Board shall designate. Any unpaid assessments shall bear interest at the maximum
rate specified in RCW 19.52.020 then permitted in the state of Washington from the due
date until paid.
D. Purpose. All funds collected hereunder shall be expended for the
purposes designated in or permitted by this Declaration, the Bylaws or the Act.
E. Separate Accounts. The Association's Treasurer, at his or her discretion
may maintain separate accounts for current operations, reserves and a special
insurance reserve account for payment of insurance and bond premiums. If the
Treasurer, in his or her discretion, so elects to keep separate accounts for current
operations, reserves and a special insurance reserve account, upon receipt. of
payments for assessments, the Treasurer shall first deposit to the insurance reserve
account that portion of the common expense assessments necessary to pay the total
cost of premiums of atl of the insurance and bond coverage then in effect required to be
paid from such periodic assessments, and such insurance reserve account shall be-
held separately and inviolate until utilized for payment of such premiums. The
remainder of the assessments collected may be utilized for payment of other common
expenses or deposited or credited to other accounts. All such assessments and other
Association revenues shall be collected .and held in trust for, and administered and
expended for the benefit of, the Association.
F. Based on Percentage. Except for certain special assessments which
may be levied against particular Units under the provisions of this Declaration, all
assessments for common expenses shall be assessed to Units on the basis of the
percentages set forth in Schedule "C" hereof and any amendments thereto; subject to
any variation and assessments for Ground Lease payments required to be made to the
City of Aubum for each phase, as hereinabove described in Article V, Section F.
G. Failure to Determine Assessments. The failure of the Association to fix
assessments for the fiscal year commencing at the annual meeting shall not be
deemed to constitute a waiver or modification in any respect of the provisions of this
Declaration or release any Unit Owner from the obligation to pay the assessment or any
installment thereof, but the amount of assessment fixed for the preceding year shall
continue in force until a new assessment is fixed. Following the determination being
made regarding the amount of assessments for such fiscal year, each Unit Owner shall,
as a portion of such Owner's first payment of the monthly or periodic assessments to
the Association, include therein such sums equal to the difference between the amount
of assessments previously paid for such fiscal year and the actual amount determined
to be required by the Association.
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H. Limited Purpose Common Expenses. Any common expense which
benefits only some, but not all, of the Units shall be assessed only against such
benefited Units and shall be paid by the Owner or Owners of, of assessed against, such
Unit or Units in proportion to the amount of the total expense incurred in the operation,
maintenance, repair or replacement of each such Unit. If a judgment is entered against
the Association at any time, assessments for the payment of such judgment shall be
made against only those Units which were a part of this Condominium at the date of
entry of such judgment. Finally, if the Board determines that a common expense is
incurred by the Association as the result of any one or more Units Owners, but not all of
the Unit Owners, the assessments to pay such common expense may be allocated only
to the Units owned by such Owners who are determined by the Board to be responsible
and not to Units owned by Owners who are determined not to be responsible.
I. Records. The Board shall cause to be kept complete and accurate books
and records of all receipts and expenditures, specifying and itemizing the maintenance
and repair expenses of the Common Elements and any other expenses incurred,
together with any additional information which may from time to time be determined to
be required by the Board. Such books and records, together with vouchers authorizing
payments, shall be available for examination by the Unit Owners, and by their
mortgagees, attomeys or agents, at any reasonable times upon reasonable notice. All
books and records shall be kept in accordance with generally accepted accounting
principles. At least one copy of the annual financial statement and report of the
Association will be provided by the treasurer and shall be furnished to each Unit Owner
and to any mortgagee requesting the same within one hundred and twenty (120) days
following the end of the fiscal year covered thereby or as soon thereafter as the same
may be completed.
J. Lien Indebtedness. All assessments shall be joint and several personal
debts and obligations of each and every Owner of any Unit against which the same are
assessed as of the time the assessment is made and shall be collectible as such. The
amount of any assessment, whether regular or special, assessed to any Unit and to the
Owner thereof, plus interest at the maximum rate specified in RCW 19.52.020 then
permitted in the state of Washington from the due date until paid, and the costs,
including reasonable attomeys fees incurred by the Association, shall be a lien upon
such Unit and the allocated interest in the Common Elements thereof. Such lien arising
from the nonpayment of such assessments shall have priority over all other liens and
encumbrances, recorded or unrecorded, except as such priority is limited by the
provisions of the Act and this Declaration. Irrespective of the existence of such lien, a
suit by the Association to recover a money judgment against any Unit Owner or Unit
Owners arising from such unpaid assessments may be maintained without foreclosure
of such lien and without waiving the future enforceability of such lien.
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K. Certificate of Assessment. A certificate executed and acknowledged by
the Treasurer or by the President of the Association, or by the authorized agent thereof,
stating the amount of such indebtedness for assessments, or the lack thereof, attribu-
table to any Unit shall be conclusive upon the Association as to the amount of such
indebtedness on the date of such certificate, in favor of all persons who rely thereon in
good faith, and such a certificate shall be furnished to any Unit Owner or to any
Mortgagee of a Unit within a reasonable time after request, in recordable form, subject
to a reasonable fee for the preparation thereof. Unless othervvise prohibited by law, any
Mortgagee of a Unit may pay any unpaid assessments payable with respect to such
Unit, and upon such payment such mortgagee shall have a lien on such Unit for the
amount so paid of the same priority as the lien of the mortgage of such mortgagee.
L. Security Deposit. In the event that a Unit Owner has twice been
delinquent for at least thirty (30) days in the payment of assessments due to the
Association, a Unit Owner may be required by the Board, in the discretion of the Board,
to make and maintain a security deposit with the Association not in excess of three
months' assessments, which may be collected as are other assessments. Such a
security deposit shall be held in a separate fund, credited to such Unit Owner, and
resort may be had thereto at any time when, and in the event, that such Unit Owner is
ten (10) or more days delinquent in paying his monthly or other periodic assessments.
M. Foreclosure of Assessment Lien. The Association may commence an
action to foreclose the lien of any delinquent assessments judicially in accordance with
the provisions of RCW Chapter 61.12 or nonjudicially in accordance with the provisions
of RCW Chapter 61.24. If the subject Unit be rented or leased by the Unit Owner to a
third party, the Association in such foreclosure action shall be entitled, upon application.
therefor- and due notice thereof, to the appointment of a receiver to collect the periodic
rent, which receiver may, if said rental not be paid,. obtain possession of the Unit,
refurbish it for rental to a reasonable standard for- rental Units in this type of
Condominium, and then rent the Unit or permit its rental to others. Rental income
collected therefrom shall be applied as follows: First to the payment of expenses of the
receivership (including reasonable attorney's fees incurred therein); second to
reimburse the cost of refurbishing the Unit; third to costs, attomey's fees and charges
incurred by the plaintiff in the foreclosure action; and fourth to the payment of the
delinquent assessments and any interest accrued thereon. Any judgment rendered
against a Unit Owner in such foreclosure proceeding, receivership proceeding or any
other action required to collect such delinquent assessments, shall include a
reasonable sum for attorney's fees and all other costs and expenses reasonably
incurred in preparation for or in prosecution of said action, in addition to taxable costs
permitted by law.
N. Rental Units. If a Unit is rented by the Unit Owner, in lieu of the
commencement of lien foreclosure proceedings, the Association may collect, and the
28
tenant or lessee thereof shall pay over to the Association, so much of the rental for
such Unit as is required to pay any amounts due to the Association hereunder, plus
interest and costs, if the same are delinquent more than thirty (30) days. Such tenant
shall not have the right to question payment to the Association, and such payment to
the Association will discharge the tenant's duty of payment of rent to the Unit Owner, to
the extent such rent is actually paid to the Association, but will not discharge the liability
of the Unit Owner for the payment of assessments or operate as an approval of the
lease or rental agreement by which such tenant maintains occupancy. The Association
shall not exercise this power in the event that a receiver has been appointed.
O. Remedies Cumulative. The remedies provided herein are cumulative,
and the Board, on behalf of the Association, may pursue them concurrently. In addi-
tion, the Association shall have such other and further remedies as may be provided by
law, although the same not be expressed herein.
ARTICLE XIII
Insurance
A. Insurance Coverage. There shall be maintained at common expense a
policy or policies of insurance, and bonds as required, to provide, to the extent that the
same be available, the following coverages:
1. Real Property Insurance. A "master" or "blanket" policy of
property insurance in an amount equal to the full replacement value of the
Condominium property, including all building service equipment and any fixtures or
equipment within. the Units which are financed subject to a mortgage, with an "Agreed
Amount Endorsement" or its equivalent, a "Demolition Endorsement" or its equivalent
and, if necessary, an "Increased Cost of Construction Endorsement" or "Contingent
Liability from Operation of Building Laws Endorsement" or its equivalent; such
insurance to afford protection against at least loss or damage by fire and other hazards
covered by a standard Extended Coverage Endorsement, including debris removal
costs, costs of demolition, vandalism, malicious mischief, windstorm and water damage
and such insurance to meet all requirements of the City of Aubum as set forth in the
Ground Lease.
2. Liability Coverage. A comprehensive policy of public liability
insurance covering all of the Common Elements with a "Severability of Interest
Endorsement" or equivalent coverage or provisions which preclude the insurance
carver from denying the claims of a Unit Owner because of the negligent acts of the
Association or any other Unit Owner, with such limits as may be determined to be
necessary, but in any event not less than as required by the City of Aubum per
occurrence and in the aggregate; such coverage to include protection against water
29
damage liability, liability for non-owned or hired automobiles, liability for personal injury,
including medical payments, death and damage to property of others.
3. Other Coverage. Additional coverage may also. be obtained for
such other risks as shall, in the sole determination of the Board, customarily be required
with respect to projects similar in construction, location and use, or as may be required
to facilitate lending by mortgagees, or as may be required pursuant to law or other
applicable governmental requirements.
B. Additional Policy Provisions. Any insurance obtained pursuant to the
provisions hereofi shall be subject to the following provisions and limitations if, and to
the extent, the Board is able to purchase policies and endorsements affecting such
provisions and limitations.
1. Named Insured. The named insured under any such policies shall
be the Association, as trustee for the Unit Owners, each of the Unit Owners each in
accordance with the percentages established in this Declaration with respect to liability
arising out of each Unit Owner's allocated interest in the Common Elements and/or
membership in the Association, and the City of Auburn as an additional insured. The
Association shall have exclusive authority to negotiate settlement of losses under said
policies.
2. Contribution. In no event shall the insurance coverage. obtained
and maintained pursuant to the provisions hereof be brought into contribution with
insurance purchased by Unit Owners or by their mortgagees.
3. Absence of Association Control. Such policies of insurance
shall provide that coverage shall not be prejudiced by (a) any act or neglect of Unit
Owners when andlor if such act or neglect is not within the control of Declarant or the
Association nor unless such Unit Owners are acting within the scope of such Unit
Owners' authority on behalf of the Association, or (b) by failure of Declarant or the
Association to comply with any warranty or condition with regard, to any portion of the
premises over which Declarant or the Association has control.
4. Cancellation. All policies shall provide that coverage may not be
canceled or substantially modified without at least thirty (30) days prior written notice to
any and all insureds named therein, including mortgagees or their servicing agents.
5. Waiver of Subrogation, Co-Insurance and Acts of Insured. All
such policies shall contain a waiver of subrogation by the insured as to any and all
claims against Declarant, in its capacity as a Unit Owner, against the Association, or
any Unit Owner, Unit Owners and/or their respective agents, mortgagees, employees or
tenants, and of any defenses based on co-insurance or upon invalidity arising from the
30
acts of the insured.
6. Primary Insurance. If at the time of an insured loss, there is other
insurance in force in the name of a Unit Owner covering the same loss, the
Association's policy shall provide primary insurance.
C. Mortgagee Clause. Each applicable policy of insurance shall contain a
standard mortgagee clause which shall:
1. Define Mortgagee. Provide that any reference to a mortgagee in
such policy shall mean and include all holders of a mortgage on a Unit, or a lease or
sublease thereof, in their respective order and preference, whether or not named
therein.
2. Protect Mortgagee. Provide that such insurance as to the interest
of any mortgagee shall not be invalidated by any act or neglect by the Board, the Unit
Owners, the Association or any persons acting under authority of any of them.
3. Waive Certain Requirements. Waive any provision invalidating
such mortgagee clause by reason of the failure of any mortgagee to notify the insurer of
any hazardous use or vacancy of a Unit, any requirement that the mortgagee pay any
premium thereon and any contribution clause.
4. Recognize Named Insured. Provide that, without affecting any
protection afforded by such mortgagee clause, any proceeds payable under such policy
shall be payable as required herein.
D. Fidelity Bond Coverage. The Association may, at the option of the Board,
maintain fidelity coverage to protect against dishonest acts on the part of its officers,
directors, agents and employees and all others who handle, or are responsible for
handling, funds of the Association. If obtained, such fidelity coverage shall, to the
extent reasonably obtainable, meet the following requirements:
1. Obligee. All fidelity bonds shall name the Association as the
obligee.
2. Amount. Such fidelity bonds shall be written in an amount equal to
at least Fifty Percent (50%) of the estimated annual operating expenses of the
Association, including reserves.
3. Waiver of Defense. Such fidelity bonds shall contain waivers of
any defense based upon the exclusion of persons who serve without compensation
from any definition of "employee" or similar terms.
31
~.
4. Cancellation. Such bonds shall provide that they shall not be
canceled or substantially modified without at least thirty (30) days prior written notice to
any affected mortgagee or its servicing agent.
E. Insurance Proceeds. Insurance proceeds payable for damage or
destruction to any part of the Condominium shall be paid to the Association as trustee
for the Unit Owners, Mortgagees of the Units and/or of the Condominium. The
Association, acting through its Board, shall have the authority to settle and compromise
any claim under insurance obtained by the Association, and the insurer may accept a
release and discharge of liability #rom the Board on behalf of the named insureds under
the policy and any affected mortgagee.. Subject to the terms of the Ground Lease, no
provision of this Declaration -shall entitle the Owner of any Unit, or any third party, to
priority over the Mortgagee of a Unit with respect to the distribution of any insurance
proceeds.
F. Unit Owners' Policies. Any Unit Owner may obtain additional insurance
respecting his Unit, to the extent permitted by law, at such Unit Owner's own expense.
Each Unit Owner is required to notify the Board of all improvements by the Unit Owner
to such Owner's Unit which are in excess of $1,000.00. Any Unit Owner who obtains
an individual insurance policy covering any portion of the Condominium, other than
personal property belonging to such Unit Owner, is required to file a copy of such policy
or policies. with the Board within thirty (30) days following the purchase thereof, and the
Board shall .immediately review the effect of such policy with the Board's insurance
agent. Each Unit Owner shall be responsible for maintaining insurance on the contents
of such Owner's Unit, any additions and improvements to such Unit, the personal
property therein maintained and the personal property of the Unit Owner situated at any
other location within the Condominium.
ARTICLE XIV
Damage or Destruction; Reconstruction
A. Determination by the Association. In the event of damage or
destruction to any part of the Condominium, the Association, through the Board or
through its authorized agent, shall promptly, and in any event within twenty (20) days
after the date of damage or destruction, make the following determinations with respect
to such damage or destruction, employing such advice is deemed available:
(1) The nature and extent of the damage or destruction, together with
an inventory of the improvements and property directly affected;
(2) A reasonably reliable estimate of the cost to repair and restore the
32
damage and destruction, which estimate shall, if reasonably practicable, be based upon
two or more firm bids obtained from responsible licensed parties;
(3) The anticipated insurance proceeds, if any, to be available from
insurance covering the loss based on the amount paid or initially offered by the insurer;
(4) The amount, if any, that the estimated cost of repair and restoration
exceeds the anticipated insurance proceeds; and,
(5) Whether the Board or its authorized agent recommends that such
damage or destruction shag be repaired or restored.
B. Notice of Damage or Destruction. The Board shall promptly, and in all
events within thirty (30) days after the date of damage or destruction, provide Unit
Owners and each affected mortgagee with a written notice summarizing the initial
determination made pursuant to Section A above. If the Board fails to so do within
thirty (30) days, then the Unit Owners or any affected mortgagees, or both, if applicable,
may make the determination required pursuant to this Section B. PROVIDED,
HOWEVER, that if it is determined that such damage or destruction does not exceed
thirty-three percent (33%) of the then-new replacement cost thereof, then the
Association shall effect such repair and reconstruction of the improvements damage or
destroyed to substantially their condition prior to such damage or destruc#ion.
C. Definitions: Restoration: Emergency Work.
(1) As used in this Article, the words "repair", "reconstruct", "rebuild" or
"restore" shall mean restoring the improvements to substantially the same condition in
which they existed prior to the damage or destruction, with each Unit and the Common
Elements having substantially the same vertical and horizontal boundaries as before.
Modifications to conform to then applicable governmental rules and regulations or
available means of construction may be made.
(2) As used in this Article, the term "emergency work" shall mean that
work which the Association deems reasonably necessary to avoid further damage,
destruction or substantial diminution in value to the improvements and reasonably
necessary to protect Unit Owners and the Association from liability because of the
condition of the site.
D. Restoration bx the Association.
(1) The Association shall promptly repair and restore the damage and
destruction, use available insurance proceeds for same, and pay for the actual cost of
repair and restoration in excess of insurance proceeds received as a common expense.
33
All insurance proceeds available for such repair and restoration shall be used for such
purpose until all such proceeds are exhausted, and such insurance proceeds shall not
be paid to others or applied for other purposes until payment for all repair and
restoration expenses has been made in full. Excess insurance proceeds may be
distributed to Unit Owners and affected mortgagees as their interests may appear.
(2) The Association shall have the authority to employ architects and
attorneys, to advertise for bids, to let contracts to contractors and others, and to take
such other action as is reasonably necessary to effectuate the repair and restoration.
Contracts for such repair and restoration shall be awarded when the Association, by
means of insurance proceeds -and sufficient assessments, has provided for the total
cost thereof.
(3) The Association may enter into a written agreement in recordable
form with any reputable financial institution or trust or escrow company or such similar
firm or institution to act as an insurance trustee to adjust and settle any claim for loss or
for such firm or institution to collect the insurance proceeds and carry out the provisions
of this Article.
E. Decision Not to Restore: Disposition. Any damage or destruction to
the Condominium, or any portion thereof, shall be repaired or restored promptly by the
Association unless: (1) the Condominium is terminated; (2) repair or replacement
would be illegal under any state or local health or safety statute or ordinance; or (3)
eighty (80%) percent of the Unit Owners, including every Owner of a Unit which will not
be rebuilt, vote not to rebuild. If all of the damaged or destroyed portions of the
Condominium are not repaired or replaced and subject to the provisions of the Ground
Lease: (1) the insurance proceeds attributable to the damaged Common Elements
shall be used to restore the damaged area to a condition compatible with the remainder
of the Condominium; (2) the insurance proceeds attributable to Units which are not
rebuilt shall be distributed to the Owners of those Units, or to mortgagees as their
interests may appear; and (3) the remainder of the insurance proceeds shall be
distributed to all of the Unit Owners or mortgagees as their interests may appear, in
proportion to the allocated interest assigned to each such Unit. If the Unit Owners vote
not to rebuild any Unit, that Unit's allocated interest shall be automatically reallocated
as if the Unit had been condemned under Article XV hereof, and. the Association
promptly shall prepare, execute and record an amendment to this Declaration reflecting
the reallocations. Notwithstanding any other provision hereof, in the event that the
Condominium is terminated, the distribution of insurance proceeds shall be governed by
the provisions of RCW 64.34.268, as presently adopted or as hereafter amended.
34
ARTICLE XV
Condemnation
A. Consequences of Condemnation; Notices. If at any time during the
continuance of the Condominium pursuant to this Declaration, all or any part of the
Condominium shall be taken or condemned by any public authority or sold or otherwise
disposed of in lieu of or in advance of such taking, the provisions of this Article shall
apply, and notice of the proceeding or proposed acquisition shall promptly be given to
each Unit Owner and to each mortgagee.
B. Proceeds. All compensation, damages or other proceeds from such
taking, the sum of which is called in this Declaration the "condemnation award", shall be
payable proportionately to Unit Owners.
C. Complete Taking. In the event that the entire Condominium is taken or
condemned, or is sold or othewise disposed of in lieu. of or in avoidance thereof, the
Condominium form of ownership pursuant hereto shall terminate. The condemnation
award shall be apportioned among the Unit Owners in proportion to their respective
allocated interests in the Common Elements; provided, that if a standard different from
the value of the Condominium as a whole is employed, to measure the condemnation
award in negotiations, judicial decree or otherwise, then in determining such
apportionment the same standard shall be employed to the extent it is relevant and
applicable. Any such condemnation award shall, before it is distributed to Unit Owners
in accordance with their respective percentage of allocated interests in the Common
Elements, be used first to pay all mortgages and liens on the Condominium and on the
Units, for which the Association or the Unit Owners as a whole are responsible; then be
used to pay all mortgages and liens on each Unit within the Condominium to the extent
of the pro rata portion of the award otherwise distributable to the Unit Owner to which
such mortgage or lien attaches.
D. Partial Taking. In the event that less than the entire Condominium is
taken or condemned, or is sold or otherwise disposed of in lieu of or in avoidance
thereof, the Condominium form of ownership hereunder shall not terminate. The Unit
Owners shall be entitled to a share of the condemnation award to be determined in the
following manner:
(1) As soon as practicable, the Association shall, reasonably and in
good faith, allocate the condemnation award between compensation, damages and
other proceeds.
(2) The Association shall first apportion the amounts so allocated to
the taking of, or injury to, the Common Elements, which in tum shall be apportioned
35
between the Unit Owners in proportion to the Unit Owners' respective allocated
interests in the Common Elements.
(3) The total amount allocated to severance damages shall then be
apportioned to the Units which were not taken or condemned.
(4) The respective amounts allocated specifically to the taking of, or
injury to, any Unit and/or improvements the Unit Owner had made within such Unit shall
be allocated to such Unit.
(5) The amount allocated to consequential damages and any other
takings or injuries shall be apportioned as the Association determines to be equitable in
the circumstances.
(6) If an allocation of the condemnation award is already established in
negotiations, judicial decree or otherwise, then in allocating the condemnation award
the Association shall employ such allocation to the extent it is relevant and applicable.
(7) Distribution. of~ apportioned proceeds shall be made to the Unit
Owners and the Unit Owners' respective mortgagees in the manner provided in Section
C of this Article.
E. Reductions of Units Upon Partial Taking. In the event that (a) a partial
taking occurs which, pursuant to Section D of this Article, does not result in a
termination of Condominium hereunder, and (b) at least one (1) Unit is taken or
condemned and (c) the condemning authority elects not to hold, use and own said Unit.
subject to and in accordance with this Declaration, then the provisions of this Section E
shall take effect immediately upon the condemning authority taking possession of the
Unit or Units so taken or condemned:
(1) The Units subject to this Declaration shall be reduced in number to
those which were not so taken or condemned.
(2) The Common Elements subject to this Declaration shall be reduced
to the remaining Common Elements not so taken or condemned.
(3) The percentage of allocated interests in the Common Elements
shall be recalculated so that the adjusted allocated interest assigned to each Unit not
so taken or condemned shall retain the same percentage of undivided interest in the
Common Elements in relation to the other remaining Units, but the percentage of each
remaining Unit shall be recalculated in order. that the total of such percentages shall
equal one hundred percent (100%).
36
(4) Except with respect to the share of proceeds apportioned pursuant
to Section D of this Article, no Unit Owner or Mortgagee of any Unit so taken or
condemned. shall have any right, title, interest, privilege, duty or obligation in, to or with
respect to the Association or all, or any portion of, the Condominium which remains
subject to this Declaration and which is not so taken or condemned.
(5) Except as otherwise expressly provided in this Section E, the
rights, title, interests, privileges, duties and obligations of Unit Owners and Mortgagees
of the Units not so taken or condemned (and in, to or with respect to the Association
and the Common Elements) shall continue in full force and effect as provided in this
Declaration.
(6) The provisions of this Section E shall be binding upon and inure to
the benefit of the Unit Owners and all Mortgagees of (and other persons having or
claiming to have any interest in) any Unit. All such Unit Owners, mortgagees and other
persons covenant to execute and deliver any documents, agreements or instruments
(including, but not limited to, appropriate amendments to the Declaration, Survey Map
and Plans) as are reasonably necessary to effectuate the provisions of this Section E.
F. Reconstruction. and Repair. Any reconstruction and repair necessitated
by condemnation shall be governed by procedures specified in Article XIV; provided,
however, the Association may retain and apply such portion of the condemnation award
as is necessary to discharge any liability for any special assessment arising from the
operation of such Article.
ARTICLE XVI
Limitation of Liability
A. Liability for Utility Failure and Certain Personal and Real Property
Damage. Except to the extent covered by insurance pursuant to Article XII1, neither
Declarant, the Board, the Association or the Unit Owners shall be liable to each other
for injury or damage to persons or property caused by the elements or other events of
nature, or resulting from electricity, water, rain, dust or sand which may leak or flow
from outside or from any parts of the building, or from any pipes, drains, conduit,
appliances or equipment, or from any other place, or for inconvenience or discomfort
resulting from any action taken to comply with any law, ordinance or orders of a
governmental authority. No diminution or abatement of assessments shall be claimed
or allowed for such injury or damage or for such inconvenience or discomfort. This
Section shall not be interpreted to impose any form of liability by implication upon any
Unit Owners.
B. No Personal Liability. If the Unit Owners, the Association, the Board,
37
their agents and/or Declarant have acted in good faith, without willful or intentional
misconduct, upon the basis of such information as may be possessed by such person
or entity, then such persons or entities shall not be liable to any Unit Owners or to any
other party, including the Association, for any damage, loss or prejudice suffered or
claimed on account of any act, omission, error or negligence of such person; provided,
that this Section shall not. apply where the consequences of such act, omission, error or
negligence are actually and fully covered by insurance obtained pursuant to Article XIII,
nor shall it apply to the extent prohibited by the Act or the Ground Lease.
C. Indemnification. .Each Officer, Director or other person or committee
member duly authorized by the Association, by the Board or by Declarant to manage
this Condominium and/or the Association, when exercising the powers and duties of the
Board and/or of an officer, shall be indemnified by the Unit Owners against all expenses
and liabilities, including attorney's fees, reasonably incurred or imposed in connection
with any proceeding to which he or it may be a party, or in which he or it may become
involved, by reason of holding or having held -such position, whether or not he or it
holds such position at the time such expenses or liabilities are incurred, except in such
cases wherein such person is adjudged guilty of willful misfeasance or malfeasance in
the performance of his or its duties; provided, that in the event of a settlement, the
indemnification shall apply only when the Unit Owners approve such settlement before
it becomes binding upon the party being indemnified hereunder.
D. Indemnification of City of Auburn. Without limiting the indemnification
provided under the Ground Lease, the Association shall indemnify and hold harmless
the City of Auburn, its Council Members, agents and employees from any and all
claims, demands, damages, liabilities and expenses, including attorney's fees incurred
as a result of the creation. and operation of this Association.
ARTICLE XVII
Mortgagee Protection
A. Priority of Mortgages. Notwithstanding all other provisions of this
Declaration and except as limited by the provisions of the Act, the liens created under
this Declaration upon each Unit for assessments shall be subject to and subordinate to
any real property tax liens attaching to such Unit and against any mortgages which
were given in good faith and- for value against the Unit. When such mortgagee or other
purchaser obtains possession of the Unit as a result of mortgage foreclosure, such
mortgagee or other purchaser shall not be liable for the common expense liability
chargeable to the Unit which became due prior to the date on which such foreclosing
mortgagee was legally entitled to complete such foreclosure and take possession of the
Unit, but shall be liable for the common expense liability relating thereto accruing after
such date. For the purposes of this Article, the term "mortgages" shall not include real
38
estate contracts; and the term "mortgagee" shall not include a real estate contract
vendor or the assignee of a vendor of a real estate contract regarding such Unit.
B. Abandonment. of Condominium Status. Except when acting pursuant
to the provisions of the Act involving damage, destruction or condemnation, or as
otherwise provided in RCW 64.34.268, . no Unit Owner shall, without the prior written
consent of .the first Mortgagee of the Unit, seek to abandon the Condominium status of
the project.
C. Partitions. Subdivisions and Combinations. Except as -provided in
Article XX, no Unit Owner shall partition, subdivide or combine a Unit, or abandon,
partition, subdivide, encumber or sell any Common Elements, or accept any proposal to
do so, without the unanimous approval of the first Mortgagees of the affected Unit(s).
D. Change in Percentages. Except as provided in Article XXI, the Unit
Owners shall not amend the Declaration to materially change the percentage of
allocated interest assigned to any Unit, without the prior written approval of all first
Mortgagees of the Units affected by such change or amendment.
E. Copies of Notices. In the event the Association gives a Unit Owner any
notice that such Unit Owner has for more than thirty (30) days failed to meet any
obligation under the Condominium documents, including the obligation to pay
assessments, the Association shall also give a copy of such notice to any Mortgagee of
such Unit who has requested to be so notified.
F. Effect of Declaration Amendments. No amendment of this Declaration
shall be effective to modify, change, limit or alter the rights expressly conferred upon
mortgagees in this instrument with respect to any unsatisfied mortgage duly recorded,
unless the amendment shall be approved in writing by the affected mortgagee, except
for those amendments which relate to a merger of the Condominium with other parcels
and those amendments relating to the conformance of Survey Map and Plans with
actual construction. Any provision of this Declaration conferring rights upon
mortgagees which is inconsistent with any other provision of this Declaration or the
Bylaws shall control over such other inconsistent provisions.
G. Insurance. The Mortgagee of a Unit has the right to demand, by written
request, the following:
(1) That a copy of any insurance policy or evidence thereof which is
intended to cover the Unit on .which such mortgagee has a lien be provided by the
Association.
(2) That any insurance carrier give the Association and any and all
39
insureds (including such mortgagees) at least thirty (30) days' written notice before
canceling, reducing the coverage or limits of or otherwise substantially modifying, any
insurance with respect to such property on which such mortgagee has a lien (including
cancellation for a premium non-payment).
(3) That written notice be provided by the Association of any loss or
condemnation affecting Common Elements, if such loss or condemnation exceeds Ten
Thousand Dollars ($10,000.00).
(4) That written notice 6e provided by the Association of any loss,
damage or condemnation affecting the Unit in which such mortgagee has an interest, if
such loss, damage or condemnation, exceeds One Thousand Dollars ($1,000.00).
H. Inspection of Books. A Mortgagee of a Unit shall be entitled .upon
reasonable notice to inspect at reasonable hours during weekdays all of the books and
records of the Association, and, upon request, to receive an annual financial statement
of the Association within ninety (90) days following the end of any fiscal year of the
Association.
ARTICLE XVIII
Mortgagee's Right After Foreclosure
1n the event any Units are conveyed to the Mortgagee of the Condominium in
lieu of foreclosure, or the Mortgagee of the Condominium obtains possessory rights,
legal title or purchaser's certificates to the Units and interests appurtenant thereto not
sold by Declarant, then said mortgagee will be liable for only that portion of any
assessment against such Units so owned by the mortgagee (or to which the mortgagee
has a certificate of purchase) for which Declarant would be liable; provided, that in no
event will the mortgagee be liable for any past due assessments which accrued or
became due prior to the time the mortgagee obtained possession by foreclosure or by
deed in lieu of foreclosure and provided, further, that if at any time the Mortgagee of the
Condominium grants, rents or leases such Units or any portion thereof, the Mortgagee
of the Condominium shall be liable only for the common expense liability for Units or the
portions thereof that the mortgagee grants, rents or leases.
ARTICLE XIX
Easements
A. General. In addition to rights under the Act, each Unit is hereby granted
an easement in and through each of the other Units .and all of the Common Elements,
for all support elements and utility, wiring, heat, sewer, storm drainage, water and
40
service elements, and for reasonable access to same, as required to effectuate and
continue proper operation of the Condominium. Without limiting the foregoing, each of
the Units and all Common Elements are specifically subject to an easement for the
mutual benefit of each other for all duct work or ventilation stacks. In addition, each of
the Units and all the Common Elements are specifically .subject to easements as
required for any utility systems, wiring, conduit, cable and/or any similar distribution
systems, and all other similar equipment for the benefit of each Unit and the entire
Condominium. The specific mention or reservation of any easement in this Declaration
does not limit or negate the general easement for the benefit of Declarant as reserved
by the Act.
B. Easements and Rights Reserved. Declarant hereby reserves non-
exclusive easements over, across and through each Unit and the Common Elements
for the benefit of itself, its successors and assigns and the Association. The reserved
easements are for ingress to and egress from the Units and for access to, over and
under the Common Elements of the Condominium in order to connect and utilize any
utility systems, wiring, conduit, cable and/or any similar distribution systems, and all
other similar equipment, -now established or hereafter to be built in the Condominium
and to insure compliance with the provisions of the Ground Lease. Such reservations
in favor of Declarant are -also expressly for the purpose of allowing the completion of
the balance of the improvements within either Phase land/or Phase II subsequent to
the submission of such phases as a part of the Condominium and for the purpose of
allowing the completion of Phase II prior to the submission of the same as a part of the
Condominium, but are not limited to such purpose. The easements reserved .hereby
shall not be exercised in a manner that will overload or materially impair the use and
enjoyment of any Unit in the Condominium. Declarant further reserves an easement
over, under, across and through the Common Elements for the benefit of itself, its
successors and assigns and the Association for the purpose of remodeling, refurbishing
or construction of other improvements, reserving to Declarant and to such others the
right to create all reasonable noise, clutter,- dirt and debris as may be necessary in
completing said construction, subject to the obligations to remove the same upon
completion.
C. Encroachments. Each Unit and all Common Elements are hereby
declared to have an easement over all other Units and all of the Common Elements for
the purpose of accommodating any encroachment due to engineering errors, errors in
original construction, settlement or shifting of the building or any other similar cause,
and any encroachment due to building overhang or projection. There shall be valid
easements for the maintenance of said encroachments so long as they shall exist, and
the rights and obligations of Unit Owners shall not be altered in any way by said
encroachment, settling or shifting; provided, however, that in no event shall a valid
easement for encroachment be created in favor of any Unit Owner if said encroachment
results due to the willful act or acts of such Unit Owner or his agent. In the event any
41
Unit or Common Elements are partially or totally destroyed, and then repaired or rebuilt,
the adjacent Unit Owners agree to grant an easement for changes in the structure
required by law at the time of such repair or rebuilding. The foregoing encroachments
shall not be construed to be encumbrances affecting the marketability of title to any
Unit.
ARTICLE XX
Procedures for Subdivision or Combination
Except as provided in Article XVII, subdividing, adjusting and/or combining of the
Units or Common Elements are subject to the following provisions:
A. Procedure. Subdivision, adjustments to and/or combining of any Unit or
Units or Common Elements are authorized only as follows:
1. Any Owner of any Unit may propose in writing to the Association
any subdividing, adjusting or combining of a Uni# or Units, together with complete plans
and specifications for accomplishing the same and proposed amendments to the
Declaration and the Survey Map and Plans covering such subdividing, adjusting or
combining, and the Association shall then notify all other Unit Owners of the requested
subdivision, adjustment or combination.
2. Upon written approval of such proposal by seventy-five (75%)
percent of all Unit Owners, the unanimous written approval of all -Unit Owners whose
allocated interests are to be adjusted, the written approval of seventy-five percent
(75%) of the first Mortgagees of all Units and unanimous written approval of the first
Mortgagee(s) of the Unit(s) to be combined, adjusted or subdivided, the Unit Owner
making the proposal may proceed according to such plans and specifications; provided,
that the Board may in its discretion (but it is not mandatory that the Board exercise this
authority) require that the Board administer the work, that provisions be made for the
protection of other Units and the Common Elements and/or that reasonable deadlines
for completion of the work be inserted in the contracts for the work.
3. The changes in the Survey Map and Plans and the changes in the
Declaration shall be placed of record as amendments to the Survey Map and Plans and
Declaration as soon as practical and shall be effective upon recording. The
amendment to the Declaration must include the signature or signatures of the Unit
Owner or Owners of the Unit or Units to be subdivided, adjusted or combined, together
with signatures of authorized representatives of the City of Aubum confirming its
consent thereto, assign an identifying number to each Unit created or excluded the
identifying number of any Unit eliminated, and reallocate the allocated interests formerly
allocated to the subdivided, adjusted or combined Unit or Units to the new Unit or Units
42
in any reasonable and equitable manner prescribed by the Owner or Owners of the
subdivided, adjusted or combined Unit or Units.
B. Costs. Any Unit Owner who is authorized to proceed with such
subdivision, adjustment or combination shall bear the entire cost of amending and
recording the Survey Map and Plans and Declaration, as well as all costs associated
with any approved renovations incident thereto, and such Unit Owner. shall indemnify
and hold the Association and all other Unit Owners harmless on account thereof.
ARTICLE XXI
Amendment of Declaration, Survey Map, Plans
A. Declaration Amendment. Amendments to the Declaration shall be made
by an instrument in writing entitled "Amendment to Declaration of Aubum Hangars
Leasehold Condominium", which instrument shall set forth the entire amendment.
Except as othewise specifically provided for in this Declaration, any proposed
amendment must be approved by the Association. Amendments shall be adopted at a
meeting of such Unit Owners and first Mortgagees of Units only if approved
unanimously by Unit Owners particularly affected, by such other Unit Owner necessary
to aggregate ninety (90%) percent of the allocated interests in the Condominium, and
by all of the affected first Mortgagees of Units, as set forth in Article XVII, or without a
meeting if all Unit Owners and such mortgagees have been notified and the above-
stated percentages of the Unit Owners and mortgagees consent in writing to such
amendment. An amendment when adopted shall bear the signature of the President of
the Association and shall be attested to by the Secretary of the Association, each of
whose signatures shall be acknowledged, together with the written consent of the City
of Aubum thereto. Amendments shall be effective upon recording. Any decision
changing the allocated interest of any Unit, except as provided herein, shall require the
approval of all Owners of that Unit, and any such amendment affecting the allocated
interests shall be by unanimous consent of all Unit Owners actually affected by such
change. Any amendment to this Declaration will be completely effective to amend any
or all of the covenants, conditions or restrictions contained herein which are intended to
be affected, unless otherwise specifically provided in the section being amended or the
amendment itself.
6. Survey Map and -Plans Amendment. Except as otherwise provided
herein, the Survey Map and Plans may be amended by completion of revised versions
or revised portions thereof, such amendment having been approved as a part of any
amendment to the Declaration as provided for herein. Such amendment to the Survey
Map and Plans shall be effective upon recording in conjunction with the Declaration
amendment.
43
C. Discontinuance of Condominium. Any decision or failure to act by the
Unit Owners under this Declaration or any applicable provision of law which intends or
requires discontinuance of this Condominium or removal of the Real Property from the
provisions of the Act, shall, if such decision or failure to act is sufficient with respect to
the Act, also terminate and discontinue the effect of any and all of the covenants,
conditions, restrictions and reservations set forth herein, and all provisions of the
Survey Map and Plans, unless other specific provision is made by recorded
amendments to the Declaration and, if required, to the Survey Map and Plans;
provided, however, that no such termination shall be sought or accomplished other than
with full compliance with the provisions of RCW 64.34.268, as presently adopted or as
hereafter amended. The discontinuance of the Condominium shall not, however, in any
fashion terminate the obligation of the Association to continue to fulfill the terms of the
Ground Lease with the City of Aubum. As such, each Unit Owner, as of the date of
discontinuance of the Condominium, shall continue to be subject, to the extent of the
allocated interest- assigned to such Owner's Unit, to the satisfaction of the balance of
the obligations owing to the City of Auburn from and after the date of discontinuance of
the Condominium.
ARTICLE XXII
Compliance with Declaration
A. Enforcement. Unit Owners shall comply with the provisions of this
Declaration, the Bylaws and the rules and regulations adopted by the Association, all as
the same may be lawfully amended from time to time, with all decisions adopted
pursuant to this Declaration, the Bylaws -and such rules and regulations and with all of
the provisions of the Ground Lease with the City of Aubum. Failure to comply shall be
grounds for relief, which may include, without limitation, an action to recover sums due
for damages, injunctive relief, foreclosure of a lien, or any combination of same.
B. No Waiver of Strict Compliance. The failure of any Unit Owner or of the
Association in any one or more instances to insist upon strict compliance with any of the
terms, covenants, conditions or restrictions of this Declaration, the Bylaws or with any
rules and regulations adopted, or to exercise any right or option contained in such
documents, or to serve any notice or to institute any action; shall not be construed as a
waiver or a relinquishment for the future of such term, covenant, condition or restriction,
but the same shall remain in full force and effect. The receipt and acceptance by the
Association of any payment of an assessment from a Unit Owner, with knowledge of
any such breach by such Unit Owner, shall not be deemed a waiver of such breach,
and no waiver by the Association or the Unit Owners of any provision in this Declaration
shall be deemed to have been made unless expressed in writing and signed by the
Board, on behalf of the Association, or by all of the, or by the affected, Unit Owners.
44
This Section shall also extend to the managing and authorized agents of the
Association and of any Unit Owners exercising the power of their respective principals.
C. Cost and Attorney Fees. In any proceeding arising because of an
alleged default by any Unit Owner with respect to any provision of this Declaration, the
prevailing party shall be entitled to recover the cost of the proceeding, the cost of title
search, if any, and all other related costs and reasonable attorney's fees incurred in
such proceedings and in any appeals taken therefrom.
ARTICLE XXIII
Interpretation
A. Liberal Construction. The provisions of this Declaration shall be liberally
construed to effectuate the purpose of creating a uniform plan for development,
construction and operation of this Condominium pursuant to the laws of the state of
Washington and in accordance with the other provisions of this Declaration.
B. Consistent with Act. The terms such as, but not limited to, "Unit", "Unit
Owners", "Association", "Building", "Common Elements", "Common Expenses", "Limited
Common Elements", and "Real Property", used in this Declaration are intended to have
the same meaning given in the Act unless the context clearly requires othervvise.
C. Covenant Running With Land. This Declaration shall be operative as a
set of .covenants running with the land and/or as equitable servitudes, supplementing
and interpreting the Act, and operating independently of the Act should the Act be, in
any respect, inapplicable.
D. Unit and Building. Boundaries. For interpreting the Survey Map and
Plans, the existing physical boundaries of the building and each Unit, as constructed,
shall be conclusively presumed to be their respective boundaries.
E. "Person". When interpreting the term "person" in this Declaration, the
singular may. include the plural and the masculine may include the feminine, or vice
versa, where the context so permits or requires.
F. Declarant-Original Unit Owner. Declarant is.the original Owner of the
Units and will continue to be deemed the Unit Owner except as conveyances or
documents changing such ownership are filed for record with appropriate authorities.
45
ARTICLE XXIV
Miscellaneous
A. Severability. The provisions hereof shall be deemed independent and
severable, and the invalidity or partial invalidity or unenforceability of any one provision
' or portion thereof shall not affect the validity or enforceability of any other provision.
hereof, if the remainder complies with the Act or as covenants affect the common plan...
B. Effective Date. This Declaration shall take effect upon recording.
C. Reference to Survey Map and Plans. The Survey Map and Plans of the
Condominium referred to herein were filed with the King County Auditor, simultaneously
with the recording of this Declaration, under File No.
(~ Y
DATED this ~6 ~ day of X11 ~,~ , 2003, at 5~o n ,Washington.
DECLARANT:
HU INC.
G . B Ister, ident
STATE OF WASHINGTON )
ss.
COUNTY OF )
On this day personally appeared before me Gary E. Bolster, to me known to be
the President of HU Inc., the corporation that executed the foregoing instrument, and
acknowledged the said instrument to be the free and voluntary 'act and deed of said
corporation, for the uses -and purposes therein mentioned, and on oath stated -that he
was authorized to execute the said instrument.
GIVEN under my hand and
....,
,,.
_ -
- : NOV 30, 2006 : -
Z=
=N•
~- ; O,
%y~;•. ~' U 13 L1G .' ~
.,~~~~'OF I~AS~~~,,•
day of
2003.
f' t Named -~.~ c~.h ~•e `'t - c Y' u ty p ~ ~
otary Public 'nand for the state of Washington
Residing at ~ ~ ~+-~-~-
My commission expires: ~V' O D
46
Acknowledged only for the purposes required by RCW 64.34.220(1)
CITY OF AUBURN ~
By
f~Hett~-A-4et~ef 1~ayor
By N/A
Council Member
By N/A
Council Member
STATE OF WASHINGTON )
ss.
COUNTY OF xn~ )
On this i ~'~ .day of April , 2003, before me,
the undersigned, a notary public in and for the State of Washington, duly commissioned
and sworn, personally appeared Peter s. Lewis
kncxnm to be the Mayor -- known-to-fie'-~thE
Get~it-A~er~befs-of the City of Auburn, the. municipal corporation that executed the
foregoing instrument, and acknowledged the said instrument to be the free and
voluntary act and deed of said municipal corporation, for the uses and purposes therein
mentioned, and on oath stated that tt ~e~ authorized to execute the same on behalf
of said municipal corporation.
WITNESS my hand and official seal hereto affixed the day and year first above
written.
~- : ~ ~,p •, ~ ~a
~ : v ~....® vy : d
~: ~Ci~.lC ,°
1~~~~t~~sF~a~ ~~~
Print Name: T rr~,~ ~} • ~o-~-h ~/
Notary Public in .and for the State of Washington
Residing at K,w~~ ~
My commission expires /w- 9 r v ~
47
SCHEDULE "A"
BEGINNING- AT THE NOTHERNMOST NORTHEASTERLY .CORNER OF CITY OF
AUBURN SHORT PLAT NUMBER SP 15-81 AS RECORDED UNDER KING COUNTY
AUDITOR'S FILE NUMBER 8207299002; THENCE SOUTH 00°39'02" WEST ALONG
THE EAST BOUNDARY OF SAID CITY OF AUBURN SHORT PLAT NUMBER SP 15-
81, ADISTANCE OF 576.95 -FEET; THENCE NORTH 89°21'30" WEST, 63.16 FEET
TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 89°21'30"
WEST 425.40 FEET; THENCE NORTH 00°32'18° EAST, 110.00 FEET; THENCE
SOUTH 89°21'30" EAST, 425.62 FEET TO THE POINT OF CURVE OF A CURVE
CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 23:00 FEET;
THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE A DISTANCE OF
36.13 FEET TO THE POINT OF A TANGENCY; THENCE SOUTH 00°39'27"WEST,
64.01 FEET TO THE POINT OF CURVE OF A CURVE CONCAVE TO THE
NORTHWEST AND HAVING A RADIUS OF 23.00 FEET; THENCE
SOUTHWESTERLY ALONG. THE ARC OF .SAID CURVE A DISTANCE OF 36.13
FEET TO THE POINT OF TANGENCY AND THE TRUE POINT OF BEGINNING.
SITUATE IN THE SOUTHWEST QUARTER OF SECTION 6, TOWNSHIP 21 NORTH,.
RANGE 5 EAST, W.M.
CONTAINING 49,110 SQUARE FEET (1.127 ACRES) MORE OR LESS.
v
SCHEDULE "B"
BEGINNING AT THE NORTHERNMOST NORTHEASTERLY CORNER OF CITY OF
AUBURN SHORT PLAT NUMBER SP 15-81 AS RECORDED UNDER KING COUNTY
AUDITOR'S FILE NUMBER 8207299002; THENCE SOUTH 00°39'02" WEST ALONG
THE EAST BOUNDARY OF SAID. CITY OF AUBURN SHORT PLAT NUMBER SP 15-
81, ADISTANCE OF 441.29 FEET; THENCE NORTH 89°21'30" WEST, 62.47 FEET
TO THE TRUE POINT OF BEGINNING;. THENCE CONTINUING NORTH 89°21'30"
WEST 426.36 FEET; THENCE NORTH 00°32'18" EAST, 110.00 FEET; THENCE
SOUTH 89°21'30" EAST, 426.58 FEET TO THE .POINT OF CURVE OF A CURVE
CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 23.00 FEET;
THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE A DISTANCE OF
36.13 FEET TO THE POINT OF TANGENCY; THENCE SOUTH 00°39'27 WEST,
64.01 FEET TO THE POINT OF CURVE OF A CURVE CONCAVE TO THE
NORTHWEST AND HAVING A RADIUS OF 23.00 ,FEET; THENCE
SOUTHWESTERLY ALONG THE ARC OF SAID CURVE A DISTANCE OF 36.13
.FEET TO THE POINT OF TANGENCY AND THE TRUE POINT OF BEGINNING.
SITUATE IN THE SOUTHWEST QUARTER OF SECTION 6, TOWNSHIP 21 NORTH,
RANGE 5 EAST, W.M.
CONTAINING 49,216 SQUARE FEET (1.130 ACRES) MORE OR LESS
SCHEDULE "C"
UNIT #
12-1
SQUARE FOOTAGE
32Q6
DESCRIPTION
Each of the-Units
contains square
footage herein
identified, computed
in accordance with the
methodology set forth on
the face of the Survey
Map and Plans and in
accordance with the
methodology set forth
in Article IV hereof.
Each hangar is
constructed of steel
framing and metal
exterior with exterior
sliding doors.. Each Unit
is horizontally bounded
by the 2 inch by 6 inch
partition studs in the
walls and to interior
surface of the exterior
sliding door. Each Unit
is vertically measured
from the exposed concrete
floor surface to the
lower portion of the
bottom of the structural
beam.
12-2
12-3
12-4
12-5
12-6
12-7
1285
1934
1285
1291
1285
1291
~~
h
,~
~~
~~
~~
SCHEDULE "C" (cont.)
UNIT # SQUARE FOOTAGE
12-8 1020
12-9 1478
12-10 1020
12-11 1160
12-12 1020
12-13 1020
12-14 1020
12-15 1020
. 12-17 1020
12-19 1530
DESCRIPTION
..
n
.,
u
u
r
SCHEDULE "C" (cont.)
UNIT #
12-1
12-2
12-3
12-4
12-5
12-6
12-7
12-8
12-9
12-10
12-11
12-12
12-13
12-14
12-15
12-17
12-19
SQUARE FOOTAGE
3206
1285
1934
1285
1291
1285
1291
1020
1478
1020
1160
1020
1020
1020
1020
1020
1530
ALLOCATED INTERESTS
14.01
5.61
8.45%
5.61
5.64%
5.61
5.64%
4.46%
6.46%
4.46%
5.07%
4.46%
4.46%
4.46%
4.46%
4.46%
6.68%
TOTALS:
100.00%
r
FIRST AMENDMENT TO THE
DECLARATION AND COVENANTS, CONDITIONS,
RESTRICTIONS AND RESERVATIONS
FOR
AUBURN HANGARS LEASEHOLD CONDOMINIUM
Pursuant to Article II of the "Declaration and Covenants, Conditions,
Restrictions and Reservations for Auburn Hangars Leasehold Condominium," which
was recorded in the office of the Auditor of King County, Washington, on April 16,
2003, under King County Auditor's File No. 20030416002595 (hereinafter referred to
as the "Declaration"), the Declarant, HU Inc., a Washington corporation, reserved the
right to add Phase II to the Auburn Hangars Leasehold Condominium on the
completion of all the improvements in Phase I. This First Amendment to the
Declaration is submitted for the purpose of adding Phase II, consisting of an
additional three (3) buildings, as a part of the Auburn Hangars Leasehold
Condominium, as provided and contemplated by Section A of Article II of the
Declaration. Accordingly, the Declaration is hereby amended and supplemented as
follows:
ARTICLE I
Submission of Phase II as Portion of the Condominium
Pursuant to the provisions of this FIRST AMENDMENT TO DECLARATION
AND COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATIONS FOR
AUBURN HANGARS LEASEHOLD CONDOMINIUM (hereinafter referred to as the
"First Amendment to the Declaration"), and pursuant to the provisions of the First
Amendment to the Survey Map and Plans of the Auburn Hangars Leasehold
Condominium which is being recorded with the King County Auditor concurrent with
the recording of this First Amendment to the Declaration, Phase II is hereby
submitted as a portion of the Auburn Hangars Leasehold Condominium pursuant to
the provisions of the Declaration and the Washington Condominium Act, Chapter
64.34 of the Revised Code of Washington (hereinafter referred to as the "Act), and
Phase II shall be deemed to be, and now is, a portion of the Auburn Hangars
Leasehold Condominium (hereinafter referred to as "the Condominium"), subject to
the provisions of the Declaration, this First Amendment to the Declaration, the Survey
Map and Plans, and the First Amendment to the Survey Map and Plans, and to any
and all provisions and requirements as are applicable to the Condominium and
Phases I and II thereof.
ARTICLE II
Real Property -Leasehold Condominium
A. Ground Lease. As identified in Article I, Section 19, Article II,
Subsection A.6 and Article V, Section F, of the Declaration, the Declarant held an
1
Option for the construction of Phase II, consisting of three (3) additional buildings
which Phase, if the Option be exercised and if the land be developed, would be added
to the Condominium as Phase II. Such Option was exercised, as a consequence of
which the land therein described, which was identified in Exhibit "A" to the
Declaration, was leased by Declarant from the City of Auburn. As such, the land on
which Phase II of the Condominium is situated is not owned by the Declarant, but is
instead leased by the Declarant from the City of Auburn, a municipal corporation, and
is subject to a separate Ground Lease between the City of Auburn and the Declarant.
The Ground Lease, which is captioned "CITY OF AUBURN AIRPORT HANGAR LAND
LEASE AGREEMENT," was executed between the City of Auburn and the Declarant
and is effective September 14, 2001, and a Memorandum of Lease was recorded with
the King County Auditor on May 1, 2003, under King County Auditor's File No.
20030501000166, and was amended by mutual agreement of the parties on April 23,
2003 (hereinafter referred to as the "Ground Lease"). Originals and/or fully executed
copies thereof may be inspected in the office of the City of Auburn and in the office of
the Declarant. In addition thereto, fully executed copies of the Ground Lease shall be
incorporated as an attachment into the Public Offering Statement provided by the
Declarant to each prospective purchaser. The City of Auburn has signed this First
Amendment to the Declaration pursuant to the requirements of RCW 64.34.220(1).
The City of Auburn has not approved any provisions of this First Amendment to the
Declaration which are not specifically required to be approved by a Lessor pursuant to
the provisions of RCW 64.34.220(1).
B. Term of Lease. The term of the Ground Lease commenced on September
14, 2001, and has a total initial term of fifty (50) years, measured from such date.
Accordingly, the Ground Lease is scheduled to terminate on September 13, 2051.
C. Scope of Lease. Phase II to this Condominium is created from the
building, improvements, paved areas, easements and other rights and appurtenances
constructed upon, and belonging to, the leasehold interest in the land identified in
the Ground Lease, which land is legally described on Schedule A hereto. The land
itself, which is owned by the City of Auburn, does not constitute a part of the
Condominium. This First Amendment to the Declaration is subject, and subordinate
in all respects, to the terms of the Ground Lease. Any provisions of this First
Amendment to the Declaration which are inconsistent with any provisions of the
Ground Lease, will be of no force and effect as against the City of Auburn.
D. Consequences of Termination of Lease/Absence of Reversion Rights.
The provisions of the Ground Lease expressly provide that title to any improvements
situated on the land subject to the Ground Lease at the termination of the Ground
Lease, whether such termination occurs at the end of the initial term, at the end of
either of the renewal terms, or at an earlier date as a result of a default by the Lessee
in the performance of the Lessee's obligations thereunder, shall revert to, and be
owned by, the City of Auburn or its successors and/or assigns. The Ground Lease, at
paragraph 8 thereof, further provides, however, that the Condominium shall remove
at its expense all personal property which may have been placed upon the premises,
compromising Phase I and Phase II. Any such property not removed by Lessee shall
belong to Lessor. In which event, title to all said improvements shall remain in with
2
the Lessee. The Ground Lease does not provide for any extension of the term thereof
beyond the above-stated total duration of fifty (50) years, nor does the Ground Lease
provide for any rights of the Lessee to acquire title to the land upon which the
building and other improvements shall be situated. Notwithstanding the foregoing,
nothing set forth in the Ground Lease prohibits the City of Auburn and the Lessee
from negotiating a further extension term of the Ground Lease, but the City of Auburn
has absolutely no obligation to do so. Upon the termination of the Ground Lease, the
Condominium will terminate, and title to the improvements constituting the Units
and Common Elements shall revert to and vest in the City of Auburn or its successors
and/or assigns, except as may occur as set forth above.
E. Assignment of Leasehold Interest. The Declarant is the Lessee under
the Ground Lease with the City of Auburn. It is intended by the Declarant, and so
provided in the Ground Lease that subsequent to the recording of this First
Amendment to the Declaration, the Lessee's interest in the Ground Lease presently
held by the Declarant shall be assigned to the Association, upon which occurrence
the Association shall assume and fulfill all of the terms and conditions of the Ground
Lease, as well as the continuing obligations the Association is bound to under the
Ground Lease. The Association shall then become and be the sole representative of
the Unit Owners and the Declarant with regard to all dealings with the City of
Auburn. Furthermore, the Association shall pay, from the common expense fund, the
Ground Lease payments due to the City of Auburn.
F. Distinction from Ground Lease. Phase II is subject to the same
Ground Lease with the City of Auburn that constitutes Phase I and includes Buildings
D, E and F. All common expenses payable by the Association, in Phase I and Phase II,
shall be assessed proportionately to each Owner in Phase I and Phase II.
G. Default Under Ground Lease. As set forth hereinabove and in Article
XII of the Declaration, the Association shall collect from each Unit Owner, as part of
said Unit Owner's common expense assessments, such Unit Owner's allocated share
of the total rental owed to the City of Auburn under the respective ground lease for
the land on which the phase in which such Owner's Unit is located. The failure of the
Association to pay rent to the City of Auburn as and when due and/or the failure of
the Association to perform any other term or condition under the Ground Lease will
entitle the City of Auburn to terminate the Ground Lease, which termination shall
result in the forfeiture of any and all right, title and interest in the leasehold which is
then held by the Association, the Unit Owners, their mortgagees and/or the Declarant
in Phase I and Phase II.
ARTICLE III
Description of Phase II
There are presently three (3) additional buildings constituting Phase II and
which are presently situated within Phase II of the Condominium. Such buildings are
of steel frame construction with metal exteriors.
3
ARTICLE N
Description of Phase II Units
The present total of thirteen (13) Units that make up Phase II have been
constructed in a manner and of a composition identical to those Units which comprise
Buildings D, E and F in Phase I, and, therefore, the provisions of the Declaration
concerning the description of the Units in Article IV thereof are applicable to Phase II
and are expressly incorporated herein. Each of said thirteen (13) Units in Phase II is
of the size, expressed in square footage, and composition as identified in Schedule
"B", which is attached to this First Amendment to the Declaration and is incorporated
herein by reference, and as further described and identified in the First Amendment
to the Survey Map and Plans. Each of said thirteen (13) Units is identified by a
number, with the exact location thereof shown on the First Amendment to the Survey
Map and Plans recorded concurrently herewith.
ARTICLE V
Amended Allocated Interests in Common Elements
As a consequence of the joinder of Phase II as a portion of the Condominium, as
provided in the Act and as specifically provided by Article VIII of the Declaration, each
of the total of thirty (30) Units now comprising the Condominium is assigned an
allocated interest, expressed as a percentage and computed as prescribed in Article
VIII of the Declaration, the total of which allocated interests equals one hundred
percent (100%). As further provided in Article VIII of the Declaration, the joinder of
additional Units to the Condominium by the submission of Phase II would necessarily
require that the allocated interests assigned to each Unit which was a part of the
Condominium prior to the joinder of Phase II be diluted from that percentage
previously assigned to such Unit, because the total allocated interests, irrespective of
the total number of Units within the Condominium, must at all times equal one
hundred percent (100%). Therefore, the total allocated interests of the Condominium
and the allocated interests assigned to each of the thirty (30) Units now comprising
the Condominium, including the modified allocated interests assigned to the
seventeen (17) Units contained in Phase I, are expressed in Schedule "C", which is
attached hereto and is incorporated into this First Amendment to the Declaration by
reference.
ARTICLE VI
Limitation of Amendment
Except as expressly set forth herein, this First Amendment to the Declaration,
and the terms and conditions hereof, supplement, but do not otherwise alter, the
terms and conditions of the Declaration. Accordingly, each and every provision of the
Declaration is incorporated herein by reference except to the extent that the context
requires otherwise. As such, but not by way of limitation, the Special Declarant
4
Rights, those easements granted and reserved and each and every other provision of
the Declaration are incorporated herein, are hereby made applicable to Phase II and
are not modified or amended in any respect.
ARTICLE VII
Reference to Amended Survey Map and Plans
The First Amendment to the Survey Map and Plans of the Condominium referred
to herein was filed with the Auburn County Auditor, simultaneously with the
recording of this First Amendment of the Declaration, under File No.
in Volume of Condominiums, pages
ARTICLE VIII
Effective Date
This First Amendment to the Declaration shall take effect upon recording.
DATED this ~-~ day of , 2007.
DECLARANT:
HU.INC.
Gary . B er, Pres' e t
STATE OF WA HI ETON )
ss.
COUNTY OF ~~)
On this day personally appeared before me Gary E. Bolster, to me known to be the President of HU
Inc., the corporation that executed the foregoing instrument, and acknowledged the said instrument to be
the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned,
and on oath stated that he was authorized to exe~c}ute thre said instrument.
GIVEN under my hail ~~~• i~eral this day of ~~ , 2007.
~~'"•\ON to ~o
~. ; •'\ E c
g5 ,~-,o •., ~ ~
i
t
. ~ ~~
• -„ ` ; ~ ~ Notary Public in d for the State of
~ s~~.S'a~ ,~
seo N •. ~~~" Print name: ~ L
~4~~-9T• 1 .. e ~,~;"'~~ My commission expires: ~
Acknowledged only foi~`Ch~''~''urposes required by RCW 64.34.220(1)
5
CITY OF AUBURN
By r
Its Mayor
STATE OF WASHINGTON
COUNTY OF KING
ss.
On this~~`.day o~ ~ 2007, before me, the undersigned, a notary public in
a fQQ~~ the tate Washington, duly commissioned and sworn, personally appeared
~~.9~`~~tb ~~ ...a-~ known to be the Mayor of the City of Auburn, the municipal
corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free
and voluntary act and deed of said municipal corporation, for the uses and purposes therein mentioned,
and on oath stated that they were authorized to execute the same on behalf of said municipal
corporation.
WITNESS my hand and official seal hereto affixed the day and year first above written.
®®®aa®4®\\\8
6p' iq
~ ~~ ~'O~'• O ~' Nota Public ' and for the S to of Washin on
,' U ~ ; ~ Print name: ~ . ~ c-Fn 3
~, ~ -~ My commission expires: t
i ~j,' -~~'; _9~~ •~
C~ _`~
.~
'<~~~`~~ IfilA~'~~~
\\! \\\~a~ee~~~'
6
SCHEDULE "A"
PHASE I:
BEGINNING AT THE NOTHERNMOST NORTHEASTERLY CORNER OF CITY OF
AUBURN SHORT PLAT NUMBER SP 15-81 AS RECORDED UNDER KING COUNTY
AUDITOR'S FILE NUMBER 8207299002; THENCE SOUTH 00°39'02" WEST ALONG
THE EAST BOUNDARY OF SAID CITY OF AUBURN SHORT PLAT NUMBER SP 15-
81, ADISTANCE OF 576.95 FEET; THENCE NORTH 89°21'30" WEST, 63.16 FEET
TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 89°21'30"
WEST 425.40 FEET; THENCE NORTH 00°32'18" EAST, 110.00 FEET; THENCE
SOUTH 89°21'30" EAST, 425.62 FEET TO THE POINT OF CURVE OF A CURVE
CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 23.00 FEET;
THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE A DISTANCE OF
36.13 FEET TO THE POINT OF A TANGENCY; THENCE SOUTH 00°39'27"WEST,
64.01 FEET TO THE POINT OF CURVE OF A CURVE CONCAVE TO THE
NORTHWEST AND HAVING A RADIUS OF 23.00 FEET; THENCE
SOUTHWESTERLY ALONG THE ARC OF SAID CURVE A DISTANCE OF 36.13
FEET TO THE POINT OF TANGENCY AND THE TRUE POINT OF BEGINNING.
SITUATE IN THE SOUTHWEST QUARTER OF SECTION 6, TOWNSHIP 21 NORTH,
RANGE 5 EAST, W.M.
CONTAINING 49,110 SQUARE FEET (1.127 ACRES) MORE OR LESS.
PHASE II:
BEGINNING AT THE NORTHERNMOST NORTHEASTERLY CORNER OF CITY OF
AUBURN SHORT PLAT NUMBER SP 15-81 AS RECORDED UNDER KING COUNTY
AUDITOR'S FILE NUMBER 8207299002, RECORDS OF KING COUNTY
WASHINGTON; THENCE SOUTH 00°39'02" WEST ALONG THE EAST BOUNDARY
OF SAID CITY OF AUBURN SHORT PLAT NUMBER SP 15-81, A DISTANCE OF
441.29 FEET; THENCE NORTH 89°21'30" WEST, 62.47 FEET TO THE TRUE POINT
OF BEGINNING; THENCE CONTINUING NORTH 89°21'30" WEST 426.36 FEET;
THENCE NORTH 00°32'18" EAST, 110.00 FEET; THENCE SOUTH 89°21'30" EAST,
426.58 FEET TO THE POINT OF CURVE OF A CURVE CONCAVE TO THE
SOUTHWEST AND HAVING A RADIUS OF 23.00 FEET; THENCE
SOUTHEASTERLY ALONG THE ARC OF SAID CURVE A DISTANCE OF 36.13 FEET
TO THE POINT OF TANGENCY; THENCE SOUTH 00°39'27 WEST, 64.01 FEET TO
THE POINT OF CURVE OF A CURVE CONCAVE TO THE NORTHWEST AND
HAVING A RADIUS OF 23.00 FEET; THENCE SOUTHWESTERLY ALONG THE ARC
OF SAID CURVE A DISTANCE OF 36.13 FEET TO THE POINT OF TANGENCY AND
THE TRUE POINT OF BEGINNING.
SCHEDULE "A" (Cont.)
SITUATE IN THE SOUTHWEST QUARTER OF SECTION 6, TOWNSHIP 21 NORTH,
RANGE 5 EAST, W.M.
CONTAINING 49,216 SQUARE FEET (1.130 ACRES) MORE OR LESS.
SCHEDULE "B"
UNIT # SQUARE FOOTAGE DESCRIPTION
12-1 3206 Each of the Units
contains square
footage herein
identified, computed
in accordance with the
methodology set forth on
the face of the Survey
Map and Plans and in
accordance with the
methodology set forth
in Article IV hereof.
Each hangar is
constructed of steel
framing and metal
exterior with exterior
sliding doors. Each Unit
is horizontally bounded
by the 2 inch by 6 inch
partition studs in the
walls and to interior
surface of the exterior
sliding door. Each Unit
is vertically measured
from the exposed concrete
floor surface to the
lower portion of the
bottom of the structural
beam.
12-2 1285 "
12-3 1934 "
12-4 1285 "
12-5 1291 "
12-6 1285 "
12-7 1291 "
SCHEDULE "B" (cont.)
UNIT # SQUARE FOOTAGE DESCRIPTION
12-8~ 1020 "
12-9 1478 "
12-10 1020 "
12-11 1160 "
12-12 1020 "
12-13 1020 "
12-14 1020 "
12-15 1020 "
12-17 1020 "
12-19 1530 "
11-11 2254 "
11-13 2352 "
11-15 2352 "
11-17 2891 "
11-2 1073 "
11-3 1612 "
11-4 1073 "
11-5 1073 "
11-6 1073
11-7 1073 "
11-8 1612 "
SCHEDULE "B" (cont.)
UNIT # SQUARE FOOTAGE DESCRIPTION
11-9 1073 "
11-1 2856 "
SCHEDULE "C"
UNIT # SQUARE FOOTAGE ALLOCATED INTERESTS
12-1 3206 7.08%
12-2 1285 2.84%
12-3 1934 4.28%
12-4 1285 2.84%
12-5 1291 2.85%
12-6 1285 2.84%
12-7 1291 2.85%
12-8 1020 2.25%
12-9 1478 3.27%
12-10 1020 2.25%
12-11 1160 2.57%
12-12 1020 2.25%
12-13 1020 2.25%
12-14 1020 2.25%
12-15 1020 2.25%
12-17 1020 2.25%
12-19 1530 3.40%
11-11 2254 4.99%
11-13 2352 5.20%
11-15 2352 5.20%
11-17 2891 6.39%
SCHEDULE "C" (cont.)
UNIT # SQUARE FOOTAGE
11-2 1073
11-3 1612
11-4 1073
11-5 1073
11-6 1073
11-7 1073
11-8 1612
11-9 1073
11-1 2856
ALLOCATED INTERESTS.
2.37%
3.56%
2.37%
2.37%
2.37%
2.37%
3.56%
2.37%
6.31
TOTALS: 100.00%