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HomeMy WebLinkAbout3.0 BOCC Staff Report 12.20.2010Board of County Commissioners —12/20/10 Public Meeting Exhibits Nieslanik Rural Land Development Exhibit Letter (Atop us Exhibit A Garfield County Unified Land Use Resolution of 2008, as amended B Garfield County Comprehensive Plan of 2000, as amended Staff Memo C D Resolution 2010-81 E Proposed Improvements Agreement F Proposed Declaration of Covenants, Conditions and Restrictions G HOA Articles of Incorporation H Proposed easements to be conveyed to HOA I dtre m Zfq› PROJECT INFORMATION AND STAFF COMMENTS REQUEST Rural Land Development Option PROPERTY OWNER REPRESENTATIVE LOCATION PROPERTY SIZE: ACCESS EXISTING ZONING REQUEST The John Nieslanik Ranch Rural Land Development was approved by the Board in a public hearing held on September 20, 2010 with the conditional approval memorialized in Resolution Number 2010-81 (EXHIBIT D). The approvals were to allow for the creation of six lots, one of which is subject to a conservation easement, and five of which are planned for residential development. The Applicant has finalized the plat and documentation, including the Improvements Agreement (EXHIBIT E), creation of the John Nieslanik Ranch HOA (EXHIBIT G), and easement documents for Nieslanik Investment, LLC and Cecelia L. Nieslanik Bypass Trust Mark Nieslanik Doug Pratte — The Land Studio Southeast of the Town of Carbondale in Sections 2 and 11, Township 8 South, Range 88 West ±180 -acres CR 101— White Hill Road Rural conveyance to the HOA (EXHIBIT H). The documentation has been reviewed by Staff and determined to have satisfied the Board conditions of approval and Staff therefore requests that the Chairman be authorized to sign the mylar and Subdivision Improvements Agreement. 1 ■1111it'41114114 011,51,11 Viiitlaligli4V1.101 IA 11111 RecapEionit: 792747COUNTY CO 10ofx8 Reda Fee vo.em�Aao,Fea0.00�iGARFIELD STATE OF COLORADO ) )ss County of Garfield ) At a regular meeting of the Board of County Commissioners for Garfield County, Colorado, held in the Commissioners' Meeting Room, Geld County Courthouse, in Glenwood Springs on, Monday, the 20`bday of September A.D. 2010, there were present Commissioner Chairman TrJohn Martin Commissioner MikeH l� Commissioner Samm on , County Attorney , Clerk of the Board , County Manager Don DeFord Jean Alberico Ed Green absen — when the following proceedings, among others were had and done, to -wit RESOLUTION NO. 2010-81 A RESOLUTION CONCERNED WITH THE AA RUN AL FOR OR A ARURAL -ACRE PARCEL LAND DEVELOPMENT EXEMPTION OPTION CECELIA L. OF LAND OWNED BY NIESLANIK INVESTMENTS, LLC AND THE NIESLANIK BYPASS CA�YL1OyUTHEAST 01? THE TOWNTRUST OF 4RSDNDALEGIE7 COUNTY PARCEL NO# 2463424-00-009 AND 2463-022-00-010 eel S A. Section 5-202 D. of the Unified Land Use Resolution of 2008, as amended, states that the Board of County Commissioners may, on a case-by-case division basis, sland mptcfrom in the sole the opinion of on of subdivision and the subdivision review process certain regarding the presen` ation of niral lands as the Board, advance the objectives of Garfield County re g agricultural land and open space and maintain the reator r ort rtio land rin ofses e property for agricultural purposes, natural resource utilization, op' c 13. Niesianik Investments, LLC and the Cecelia L. Nieslanik Bypass Trust petitioned the Board of County Commissioners of Garfield County, Colorado, for approval of a Rural Land Development Exemption Option application on the subject site. The request is to approve the creation of five (5) parcels for single family development on 12 acres of the site while Lot 6, the remainder of the property, 167 -acres or 93% of the property, is subject to a perpetual conservation 1 111111411h1VhfitilL IA 11 III Reception#: 792747 10I12/2010 10:29:31 R!1 Jain RlberfCo 2 of B Rye Fee:$0.00 Doo Foo:0.00 GARFIELD COUNTY CO easement to preserve the agricultural and open space character of the area. C. The property is generally located in Sections 2 and 1 1, Township 8 South, Range 88 West of the 6th P.M., County of Garfield, State of Colorado, and further described in attached Exhibit A. D. The property is subject to a Deed of Conservation Easement described in a document recorded at Reception Number 688879 in the office of the Garfield County Clerk and Recorder. E, The property is located within the Rural zone district and is also located in Study Area 1 of the Comprehensive Plan of 2000, in an area designated as "Residential Low Density" and "Residential Medium. Density" P. The Board is authorized to approve, deny or approve with conditions a Rural Land Development Exemption Option pursuant to Section 5-404 of the Garfield County Unified Land Use Resolution of 2008, as amended. G. The Board of County Commissioners opened a public hearing on the 20th day of September, 2010 upon the question of whether the above-described application should be granted or denied, during which hearing the public and interested persons were giventbe opportunity to express their opinions regarding the amendment. H. The Board of County Commissioners closed the public hearing on the 20s` day of September, 2010 to make a final decision on the application. I. The Board, on the basis of substantial competent evidence produced at the aforementioned hearing, has made the following determinations of fact: 1. Proper posting and public notice were provided as required for the hearing before the Board of County Commissioners. 2. The hearing before the Board of County Commissioners was extensive and complete, Haat all pertinent facts, matters and issues were submitted and that all interested parties were heard at that meeting. 3. That for the above stated and other reasons, the proposed Rural Land Development Exemption Option has been determined to be in the best interest of the health, safety, morals, convenience, order, prosperity and welfare of the citizens of Garfield County, if required conditions of approval are satisfied. 4. The application will meet the requirements of Unified Land Use Resolution of 2008, as amended if required conditions of approval are satisfied. 2 1111111m. commit la 141.1 N I!.1 II0 KR 11111 Rice pt i ran# : 792747 Soli?R Reo 10:29:3300 Dim Fes:010000r GARFIEI.D COUNTY CO 3 0! 6 Reo •e:i0• RESOL.i �1 TION NOW THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Garfield County, Colorado, that A. The forgoing Recitals are incorporated by this reference as part of the resolution. B. acre ard to da Development (5)t 2 t 3 acrreOption and Lot 6, a ±167 -acre parcel subject to a acre parcel to create five perpetual conservation easement, is hereby approved subject to compliance with the following conditions: 1. That all representations roade by the Applicant in the application, and at the public hearing before the Planning Commission and. Board of County Commissioners sbal.l be conditions of approval, unless specifically altered by the Board of County Commissioners. 2. This approval shall be valid for a period of one year, within which time the following documentation shall be finalized and submitted for review and approval by Garfield County: a. An Exemption Plat; b. An Improvements Agreement; c. Declaration of Covenants, Conditions and Restrictions; d. Formation of the John Nieslanik Ranch Homeowner's Association. 3. Prior to signing of the plat the Applicant shall provide the following to the County: a. A well -sharing agreement to be recorded with the plat; rofective b. The Applicant shall include the following provisions as an element in the p covenants to be managed and enforced by the HOA. • The Weed Management Plan; • The Fugitive Dust Plan; • Lighting standards; • Animal control (with one dog restriction removed); • Solid fuel burning restriction. The Applicant shall include provisions to this effect in the covenants to be submitted and recorded with the final plat c. The Applicant shall submit required fees to satisfy the "Fee In -lieu of School Land Dedication' at the time of building permit on Lots 1 through 4. Lots 5 and 6 are exempt from this Fee. d. The Applicant shall be required to pay Carbondale and Rural Fire Protection District Impact Fees at the time of building permit on Lots 1 through 4. Lots 5 and 6 are exempt from this fee. 3 am111134HANIVIMANitifiNKINVIIMIA4141111 Rceeptiortl: 702147 rou�ItY co 10/12/2310 10:29:91 AC5 Jean Rlbarloa 4 of 0 Rec Fee:SO.00 Dec fee 0• 2 GARFIELD 4. The plat shall contain the following notes: a. No further divisions of Lots 1-6 by Exemption from Subdivision Regulations shall be allowed. Lot 6 is burdened by a Conservation Easement recorded at Reception Number 688879 in the office of the Garfield County Clerk and Recorder and cannot be further subdivided. b. The entirety of the land located within Lot 6 is governed by a perpetual conservation easement granted to the Aspen Valley Land Trust and the Pitkin County Board of County Commissioners. The terms and conditions of this easement are fully described in the document entitled "Nieslanik Ranch Deed of Conservation Easement" recorded at Reception Number 688879 in the office of the Garfield County Clerk and Recorder. All future activity on Lot 6 shall be in accordance to the terms and conditions of this document. .c. No new open hearth solid -fuel fireplaces will be allowed anywhere within Lots 1- 6. One (1) new solid -fuel burning stove as defined in C.R.S. 25-7-101 Et. Seq. and the regulations promulgated thereunder will be allowed in anydwelling unit. All dwelling units are allowed an unrestricted number of natural gas burning stoves and appliances. d. All exterior lighting shall be the minimum amount necessary and shall be directed downward and inward, towards the interior f b lots, except that rthe provisions maybe made to allow for safety lighting Yop property boundaries. e. Colorado is a "Right -to -Farm State pursuant to C.R.S. 35-3-101, et seq. Landowners, residents and visitors must be prepared to accept the activities, sights, sounds and smells of Garfield County's agricultural operations as a normal and necessary aspect of living in a County with a strong rural character and a healthy ranching sector. Those with an urban sensitivity may perceive such activities, sights, sounds and smells only as inconvenience, eyesore, noise and odor. However, State law and County policy provide that ranching, farming or other agricultural activities and operations within Garfield County shall not be considered to be nuisances so long as operated in conformance with the law and in a non -negligent manner. Therefore, all must be prepared to encounter noises, odor, lights, mud, dust, smoke chemicals, machinery on public roads, livestock on public roads, storage and disposal of manure, and the application by spraying or otherwise of chemical fertilizers, soil amendments, herbicides, and pesticides, any one or more of which may naturally occur as a part of a legal and non - negligent agricultural operations. f. All owners of land., whether ranch or residence, have obligations under Statelaw and County regulations with regard to the maintenance of fences and irrigation ditches, controlling weeds, keeping livestock and pets under control, using property in accordance with zoning, and other aspects of using and maintaining property. Residents and landowners are encouraged to learn about these rights 4 Eti mil' 41iu !WA WCRIffiltlin 11111 Recepticntt: 792747 5 ofZ8ZRao Fee:58 00 Doc,Foe ea0.0SrGGARFIELD COUNTY CO. and responsibilities and act as good neighbors and citizens of the County. A good introductory source for such information is "A Guide to Rural Living & Small Scale Agriculture" put out by the Colorado State University Extension Office in Garfield County- will not be transferred with the g. The mineral rights associated with this property surface estate therefore allowing the potential for natural resource extraction on the property by the mineral estate owner(s) or lessee(s). h. All foundations shall be designed by a professional registered engineer licensed to practice in the State of Colorado. i. Due to varying site soil conditions, all lots are required to have an individual site- specific geotechnical study which shall be submitted with the application for a building permit. j. Building permits applications for each lot shall include pians and specifications for an onsite wastewater system (OWS). Each system shall be designed by a professional. k. Any excavation into slopes steeper than 30% shall be addressed on a site-specific basis by a registered geotcchnical engineer licensed to practice in the State of Colorado and the report shall be submitted along with permit application for building or grading on the site. L Building. permit applications for each lot shall include a letter from the Carbondale and Rural Fire Protection District regarding the necessity for Wildfire Defensible Space and the necessity for automatic tire sprinkler installation which shall then be considered conditions of approval for issuance of the building permit. m. A fifteen foot (15') irrigation easement centered over all existing irrigation ditches is hereby granted for purposes including access and maintenance rights for the benefit of the holders of the water rights associated with said ditches. n. Declaration of Covenants, Conditions and Restrictions, as recorded, are applicable to this development; to this development; o. An Improvements Agreement, as recorded, is applicable p. Lots 1 through 4 as depicted on this plat, or any fractional interest therein, may not be sold, conveyed or otherwise transferred until such time as a "RELEASE OF COLLATERAL" is approved by the Board of County Commissioners and recorded in the office of the Garfield County Cleric: and Recorder; q. The conveyance of Lots 5 and 6 are exempt from the above plat note as adequate infrastructure exists to serve those lots; r. On-site water storage is required of each lot in the development an atian plans associated with that storage must be a part of the building p pP s. Lots 5 and 6 are exempt from the "Fee In-lieu of School Land Dedication" and Carbondale and Rural Fire Protection District Impact Fees as residential structures already exist on those lots. 5 �� � ��� � ILii 'li4tii #+M1�Ili l i�iki�miec , , Recept#an#' 792747 Jean Alberloo i0/12/2010 of 14 RRap Fee:50.00Doc Fer'0.00 GARFIEID COUNTY CO 5. Prior to recordation of the Plat the Applicant shall form a homeowners association to accept construction and maintenance responsibilities for all roads and utilities serving the development. The Protective covenants shall be administered by the HOA 1171 day of O(140b.D.r , A.D. 20 It . Dated this ATTEST: GARFIELD CO BOARD OF COMMISS 1 NERS, f ARFIELD COUNTY, COLO Upon motion duly made and seconded the or ed by the following vote: COMMISSIONER CHAIR JOHN F. MARTIN COMMISSIONER TRESI HOW'S COMMISSIONER MIKE SAMSON STATE OF COLORADO )ss County of Garfield , Aye Aye , Aye 1, , County Clerk and ex -officio Clerk of the Board of County Commissioners, in and for the County and State aforesaid, do hereby certify that the annexed and foregoing Resolution is truly copied from the Records of the Proceeding of the Board of County Commissioners for said Garfield County, now in my office. IN WITNESS WHEREOF, I have hereunto set my hand and of ied the seal of said County, at Glenwood Springs, this day of County Clerk and ex -officio Clerk of the Board of County Commissioners 6. RC1 ‘El -t-7- 4. _ diff k 4 4 f4i.141C4 14 ,11 Sill ]ran Wharf -co , Y CO 7 of3g2Roo pea Tg3S0 Doc For,O.00 GARF1kLD COLIN"F SCHEDULE A LEGAL DESCRIPTION A PARCEL OF LAND SITUATED IN SECTIONS 2 AND 11, TOWNSHIP 8 SOUTH, RANGE 88 WEST OF THE SIXTH PRINCIPAL MERIDIAN, COUNTY OF GARFIELD, STATED SW CRADO, WITH B ALL BEARINGS RELATIVE TO A BEARING OF S 89°2N15" E BETWEENRN ON 2, A #5 SAID SECTION 2, A STONE FOUND IN PLACE, AND THE. 61/4 CORNER OF SAID CE RJBAR'FOUND TN PLACE, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON A FENCE LINE. WHENCE TEIE SOUTHWEST CORNER OF SAID SECTION 2 BEARS S 15°46'37" W A DISTANCE OF 1120.92 FEET; IHENCE ALONG SAID FENCE RECORDED AS RECEFT ON NUMBER 557266 OF ThE GARFI LD LINE AND THE DSD RECD �G SES (7) COURSES: COUNTY RECORDS; TAE FOLIA 1) N OI°44'35" w, 2,177.08 FEET; 2) S 89°52'55" E, 2.2.40 FEET; 3) N 48°35115" E, 21.7,0 MT; 4) 6 89°09'25" B, 1,144.21 FEET; 5) 6 89°08149" E, 613.03 PEET; 6)N 84°58'12" E., 43.43 FEET; Y BOUNDARY OF ASPEN CRYSTAL 7) N 90'04'00" E. 508.35 FEET TO A roma ON THE WESTERLY G,ARHTET.D COUNTY RIVERESTATES HER.ECORDED BOUNDARY AS RICE DE ED IN THE AFFIDAVIT RECORDEDRECORDS; N0VEMRECORDS AND T� gOUNDAAY LINE _ THENCE LEAVING 14, 2005 AS RECEPTION SAID LINE AND SAID DEED AND ALONG G SAID WESTERLY BOUND RNSAID BOUNDARY LINE TIB FOLLOWING TIRE' (3) COURSES: BOUNDARY AND I) S 00°13'20" E, 47.89 FBI'; 2) N 89°31'10" E, 355.75 FEET; 3 S 01°34'10" E, 535.70 PEET TO THE NORTHWEST CORNER OF LOT 26 OF SAID ASP EN All ESTATES; E NOCERTHERLY LEAVING 3C SAID WESTERLY BOUNDARY AND SAID BOUNDARY LINE AND ALONG THE NORTHE€O•Y BOT3Nf7ARY OF SAID LOT 26 THE FOLLOWING TWO (2) COURSES: 1) N 77°36'I4" E, 205.06 FEET; HAVING A 2)115.06 FEET ALONG THE ARC OP A NON TANGENT CUR OO °� g"Er9130 PEET) TO THE NST 50.00 OR A CENTRAL SAID LOT 6;GT�CE LEAVING THE NORTHERLY BOUNDARY OF A) LOT 26 CORNER Y BOUNDARY OF LOT 25 OF SAID ASPENT OF SAID LOT 26 AND ALONG IH E, A DISTANCE 1STi L THE CRYSTAL ESTATES N 88°S4140" OITRE NORT OF BD ��Y � SAID LOT 25 AND CORNER SAIDLOT 25; TSN LEAVINGDA ALONG THE EASTERLY BOUNDARY OF SAID LOT 25 5 4IQ04'59" E, A DISTANCE OF 169.98 FEET TO THE SOUTHEAST CORNER OF SAID LOT 25, A POINT ON THE WESTERLY BOUNDARY OF SAID ASPEN CRYSTAL ESTATES AND THE BOUNDARY 68 LINE OF DESCRIBED � BE LOT TAI? IELD ' RECORDS; S; THI CE 14, 2005 S RECEPTION NO. .� EASTERLY BOUNDARY OF 25 AND A ONGCOUNTYT WESTERLY THEN OF 25 AND ALONG T� �'�L BOUNDARY DISTANCE �YOF ¢5� FEET; THENCE THENCE LEAS THE SAID BOUNDARY LINEN 88°54'44" 73, =xQGALTA Ccmm11�u[ZR Schedule A L � Skla guarardY c NhpenY Title Officer: Page 2 °f3 BOUNDARY OF SAID ASPEN CRYSTAL RIVER ESTATES AND CONTINUING ALONG SAID BOUNDARY LINE THE FOLLOWING NINETEEN (19) COURSES: 1) S16°23'O1"W, 630.97 PEET; 2) 508°72'40"W, 294.84 FEET; 3) 526'20'35"E, 178.61 FEET; 4) S06°25'15"E, 26.991`11; 5) S I7°09'50"W, 222.301k.T; 6) 514'51'34"W, 162.52 FEET; 7) S01°12'56"W, 51.29 FIST; 8) 512°09145"E, 205.92 FEET; 9) S08°04'10"W, 271.76 FEET; 10) S08°42'30"W, 233.96 H .T; 11) 51092102"W, 103.49 F1; 12) 515°4455"W, 300.101,I.T; 13) 539`03'30"W, 116.89 FEET; 14) 519'22'18"W, 216.84 FEET; 15) S35°21'38" E, 120.11 FEET; 16) S15°57156"E, 71.97 FEET; 17) 577°02'58"W, 14.95 FEET; 18) S09°341 8"W, 88.21 FEET; 19) 587°07'30"W, 478.18 FEET; FINE (5) COURSES: 1) N00°57'52"E, 42.05 FEET; 2) N85°55'00"E, 30.10.LLT; 3) N00°3019"1,, 1,637.94 FEET; 4) N86°30'00"W, 30.04 FEET; 5) N001619"E, 51.33 FEET TO A POINT ON AN EXISTING FENCE LINE AND THE DEED RECORDED AS RECEPTION NO, 685683 OF THE GARFiELD COUNTY RECORDS; THENCE ALONG SAID EXISTING FENCE LINE AND SAID DEED TSE FOLLOWING THIRTEEN COURSES (13): 1) 5 88°52'07" W, 175.45 FEET; 2) 5 89°04110" W, 929.10 FST; 3) 5 83°46'55" W, 174A9 FEET; 4) S 88°03'10" W, 364.41 FF.E.T; 5) N 67°47'49" W, 53.92 FEET; 6) N 46°5056" W, 253.64 FEET; 7) S 88°36'14" W, 212.98 FEET; 8) N 71`55'45" W, 14.58 FEET; 9)1438'38'25"W, 279.14 FEET; 10) S70°54.35 "W, 214.09 FEET; 11) S44°48'46"W, 38.18 FEET; 12) 522°30'19"W, 230.85 FEET; 13) 548'14'38"W, 101.251't.f.1 10 THE POINT OF BEGINNING. CONTAINING 7,816,259 SQUARE 1,77E OR 179.437 ACRES, MORE OR LESS. County of Garfield, State of Colorado Si 101.10:100,43014L 1111 Rac ap t ion'# : 792747 16!12!27110 10:29:31 RM Joan a:0 00rGcRRFIEl.S COUNTY CO • 6 o1 8 Roo Foe:UE.02 Dox THENCE LEAVING SAID BOUNDARY LINE THE FOLLOWING Order Number. 50OI032gws-C3 ALTACom (6'17!06) - Schedule A MI; Officer: Page 3 of 3 t JOHN NIESLANIK RANCH RURAL LAND DEVELOPMENT EXEMPTION IMPROVEMENTS AGREEMENT EXHIBIT THIS RURAL LAND DEVELOPMENT EXEMPTION IMPROVEMENTS AGREEMENT, ("Agreement") is made and entered into this day of December, 2010 by and between NIESLANIK INVESTMENTS, LLC, and CECELIA L. NIESLANIK BYPASS TRUST, having an address of 0979 County Road 101, Carbondale, CO 81623 and the BOARD OF COUNTY COMMISSIONERS OF GARFIELD COUNTY, COLORADO, acting for the County of Garfield, State of Colorado, as a body politic and corporate, directly or through its authorized representatives and agents ("BOCC"). WHEREAS: A. Nieslanik Investments, LLC and Cecelia L. Nieslanik Bypass Trust are the developers of property and a development to be commonly known as the John Nieslanik Ranch Rural Land Development Exemption (the "Development"); B. The Development is depicted on a plat entitled John Nieslanik Ranch Rural Land Development Exemption Plat ("Exemption Plat"); C. The plan for the Development, as depicted on the Exemption Plat, includes, among other things, (a) five (5) single-family residential lots identified as Lots 1-5 on the Exemption Plat and (b) an agricultural parcel, Identified on the Exemption Plat as the "Remainder Ranch Parcel" or as "Lot 6" (hereinafter referred to as "Lot 6"). The Lot 6 shall be burdened with certain development restrictions that include a conservation easement in perpetuity recorded on 12/22/05 under Reception No. 688879 of the Garfield County real property records; D. Nieslanik Investments, LLC and the Cecelia L. Nieslanik Bypass Trust are the current owners of Lots 1-6 ("Owners"); E. The Owners have agreed to certain restrictions and conditions regarding the sale of certain properties and issuance of certain building permits to secure and guarantee Owners' performance under this Agreement; F. The Owners seek approval by the BOCC of the Development plan and Exemption Plat pursuant to the Land Use Regulations of Garfield County, Section 5- 404(A)(4), Rural Land Development Exemption Option; 1 G. The Owners represent that at the time of recording this Agreement all taxes and assessments upon all parcels of real estate described in this Agreement are paid in full. NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows: 1. DEVELOPMENT PLAN. The Development shall consist of five single- family residential lots, identified as Lots 1-5 on the Exemption Plat (collectively, "Lots"), and Lot 6, an historical agricultural ranch operation which includes ancillary residences, as further described below in paragraph 2. 2. REMAINDER RANCH PARCEL. In conformance with the Land Use Regulations of Garfield County, Section 5-404(A)(4), Rural Land Development Exemption Option, Lot 6 shall be occupied and used in accordance with the conservation easement referenced on Exhibit A ("Conservation Easement"). 3. IMPROVEMENTS. The Owners agree to cause to be constructed and installed all development improvements ("Improvements"). No such Improvements shall be constructed until such time as they arc identified on the plans marked "Approved for Construction", prepared by Sopris Engineering and a grading permit submitted to Garfield County for approval prior to commencing any work on the Improvements. Lots 1-4 shall not be sold until the Improvements are constructed and installed to the satisfaction of the County. The Improvements shall be constructed and installed at the Owners' expense, including payment of fees required by the County and/or other governmental and quasi -governmental entities with jurisdiction. An estimate for the cost of construction of the Improvements prepared by Sopris Engineering has been attached to and incorporated herein as Exhibit B ("Development Improvements Estimated Cost of Construction"). The Owners shall comply with all laws, regulations, orders, resolutions and requirements of the State of Colorado, Garfield County, all special districts and any other governmental or quasi -governmental authority with jurisdiction and this Agreement in the construction and installation of the Improvements. The BOCC agrees that if all Improvements are installed in accordance with this Agreement; record drawings have been submitted upon completion of the Improvements, as detailed in Paragraph 9, below; all other requirements of this Agreement have been met; and all requirements of Rural Land Development Exemption Approval are satisfied, then the Owners shall be deemed to have satisfied all terms and conditions of the Rural Land Development Exemption Approval, the Exemption Plat Documents and the Garfield County Unified Land Use Resolution of 2008, with respect to the installation of Improvements. 2 4. PAYMENT AND SECURITY FOR IMPROVEMENTS. a. Plat Restriction. As security for the obligation to complete the Improvements, the Owners have included as a plat note on the first page of the Exemption Plat the following plat restriction ("Plat Restriction") to guarantee completion of the Improvements: Lots 1 through 4 as depicted on this plat, or any fractional interest therein, may not be sold, conveyed or otherwise transferred until such time as a "RELEASE OF COLLATERAL" is approved by the Board of County Commissioners and recorded in the office of the Garfield County Clerk and Recorder. The forgoing restriction on transfer does not apply to Lot 5 or to Lot 6, both of which may be sold, conveyed or transferred at any time, regardless of the status of commencement or completion of infrastructure improvements serving any of Lots 1 through 4. b. Release of Plat Restriction. Upon completion of Improvements necessary to serve any or all of the proposed lots, the Owners shall submit to the BOCC, through the Building and Planning Department: 1) record drawings hearing the stamp of Development's engineer certifying that all necessary Improvements have been constructed in accordance with the requirements of this Agreement, in hard copy and a digital format acceptable to the BOCC; 2) copies of instruments conveying real property and other interests which the Owners are obligated by this Agreement or statute to convey to the John Nieslanik Ranch Rural Land Development Exemption Option Homeowners Association for the Development or any statutory special district or other entity; and 3) a Written Request for Final Release, in the form attached to and incorporated herein as Exhibit C ("Form of Written Request for Release of Restriction in Plat Note No. 9") along with Development's engineer's Certificate of Final Completion of Improvements. The BOCC will review the certification and inspect and review the Improvements certified as complete to determine whether or not said Improvements have been constructed in compliance with relevant specifications, as follows: i. BOCC shall review and inspect the improvements and upon acceptance shall release the plat note restriction in a public meeting with recordation of all necessary documentation required prior to sale of Lots 1-4. A Form of Release of Restriction in Plat Note No. 9 is attached to and incorporated herein as Exhibit D ("Form of Release of Restriction in Plat Note No. 9"). c. Substitution of Security to Satisfy Plat Restriction. The BOCC, at its sole discretion, may permit the Owners to substitute another security instrument, such as a cash deposit under a treasurer's deposit agreement or a letter of credit, as collateral in the place of the Plat Restriction for the purpose of securing the completion of the Improvements. This process shall be approved by the BOCC through a public meeting, 3 with acceptance of the substitute security and recordation of all necessary documentation required prior to sale of Lots 1-4. 5. WATER SUPPLY. The Owners shall install and connect a water distribution system for potable water in accordance with this Agreement and the Improvements Plans dated December 10, 2010 by Sopris Engineering and that are on record at the Department of Building and Planning. All easements and rights-of-way necessary for installation, operation, service and maintenance of such water supply and distribution system shall be as shown on the Exemption Plat, and said easements and rights-of-way conveyed to the appropriate homeowners' association at the time of recording the Exemption Plat. 6. PRIVATE ROADS AND ACCESS FOR EMERGENCY SERVICE PROVIDERS. The grantee homeowners' association shall be solely responsible for the maintenance, repair and upkeep of said private access easements, including the traveled surface of the roadways and areas outside of the traveled surface. The BOCC shall not be obligated to maintain private road rights-of-way within the Development. Existence of private roads shall be noted on the Exemption Plat, and deeds of conveyance to the appropriate homeowners' association shall be made at the time of recording of the Exemption Plat. 7. UTILITY EASEMENTS. Whether or not utility easements exist elsewhere in the Development, all private road easements within the Development shall contain rights-of-way for installation and maintenance of utilities. Utility easements shall be dedicated by the Owner and accepted by the appropriate homeowners' association of the Development, on behalf of the association's members, on the face of the Exemption Plat and shall be identified in deeds conveying private roads to the appropriate homeowners' association. The grantee homeowners' association of the Development shall be solely responsible for the maintenance, repair and upkeep of said utility easements, unless otherwise agreed to with the utility companies. The BOCC shall not be obligated for the maintenance, repair and upkeep of any utility easements within the Development. In the event a utility company, whether publicly or privately owned, requires separate conveyance by deed or otherwise, the Owners shall also convey utility easements by separate document to be recorded with the Exemption Plat. 8. CONVEYANCE OF WATER SUPPLY SYSTEM. The water supply system shall be conveyed to the homeowners' association. It is the express, stated intention of the parties that the water distribution system facilities for Lots 1 through 6 shall be conveyed to the Homeowners Association following construction, inspection and acceptance by the Homeowners Association. For purposes of this paragraph, water distribution system facilities includes all wells, water lines, storage tanks, pumps, valves and appurtenant equipment associated with delivering domestic water supplies to the residences located on such lots from Well No. 2 awarded Exempt Domestic Well Permit #280848 and Well No. 3 awarded Exempt Domestic Well Permit #281789 by the Colorado Division of Water Resources. 4 At the time of recording of the Exemption Plat the Owners shall execute and deliver into escrow documents conveying easements for the water supply, the private roads, and utilities shown on the Exemption Plat to the homeowners' association (collectively, the "Easement Deeds"), The Easement Deeds shall be deposited into escrow, pursuant to an escrow agreement to be executed by the Owners, the BOCC and escrow agent ("Escrow Agreement") within a reasonable time following mutual execution of this Agreement. The Owners shall deliver to the BOCC a copy of the fully executed Escrow Agreement, within a reasonable time following mutual execution of this Agreement, but need not record such instrument. The Escrow Agreement shall provide: 1) the Escrow Agent shall hold the Easement Deeds until receipt of a written notice signed only by the Owners noting escrow agent that the work required of the Owners in this Agreement has been completed and approved as complete by the BOCC; and 2) upon the occurrence of the foregoing event, the escrow agent shall cause the appropriate Easement Deeds to be recorded in the records of the Garfield County Clerk and Recorder. 9. AS BUILT/RECORD DRAWINGS. Upon completion of private road and water supply infrastructure, the Owners shall provide as built/record drawings to Garfield County in hardcopy and digital format prepared by a licensed surveyor. 10. FEES IN LIEU OF DEDICATION OF SCHOOL LAND. Owner shall make a cash deposit at the time of building permit application in lieu of dedicating land to the RE -1 School District in accordance with the provisions of Section 7-405 D, Payment In Lieu of Dedication of Public Sites, set forth in the Garfield County Unified Land Use Resolution of 2008, as amended. Said fee shall be transferred by the BOCC to the school district in accordance with the provisions of Section 30-28-133, C.R.S., as amended, and the Garfield County Unified Land Use Resolution of 2008. The Owner agrees that it is obligated to pay the above -stated fee, accepts such obligations, and waives any claim that Owner is not required to pay the cash in lieu of land dedication fee. The Owner agrees that Owner will not claim, nor is Owner entitled to claim, subsequent to recording of the Final Plat of the Subdivision, a reimbursement of the fee in lieu of land dedication to the RE -1 School District. 10. INDEMNITY. The Owners shall indemnify and hold the BOCC harmless and defend the BOCC from all claims which may arise as a result of the Development's installation of the Improvements and any other agreement or obligation of the Owners related to the Development required pursuant to this Agreement. The Owners, however, do not indemnify the BOCC for claims made asserting that the standards imposed by the BOCC are improper or the cause of the injury asserted, or from claims which may arise 5 from the negligent acts or omissions of the BOCC or its employees. The BOCC shall be required to notify the Owners of the BOCC's receipt of a notice of claim or a notice of intent to sue, and the BOCC shall afford the Owners the option of defending any such claim or action. Failure to notify and provide such written option to the Owners shall extinguish the BOCC' s rights under this paragraph. Nothing in this paragraph shall be construed to constitute a waiver of the Sovereign Immunity granted to the BOCC by Colorado statutes and case law. 11. SALE OF LOTS. No Lot may be separately conveyed prior to recording of the Exemption Plat in the records of the Garfield County Clerk and Recorder. Conveyances of Lots 1-4 are further restricted pursuant to the terms of this Improvements Agreement. 12. ENFORCEMENT. In addition to any rights which may be provided by Colorado statute and the provisions for release of security, detailed in paragraph 4 above, it is mutually agreed by the BOCC and the Owners without making an election of remedies, or any purchaser of any lot within the Development shall have the authority to bring an action in the Garfield County District Court to compel enforcement of this Agreement. Nothing in this Agreement, however, shall be interpreted to require the BOCC to bring an action for enforcement or to withhold permits or certificates or enforce the Plat Restriction. Nor shall this paragraph or any other provision of this Agreement be interpreted to permit the purchaser of a lot to file an action against the BOCC. In addition, the BOCC may, but shall not be required to, pursue any of its enforcement remedies as applicable, pursuant to Article XII of the Unified Land Use Resolution of 2008, as amended. 13. VACATING THE EXEMPTION PLAT. In the event the Owners fail to comply with the terms of this Agreement, the BOCC shall have the ability to vacate the Exemption Plat as it pertains to any lots that have not released from the Plat Restriction and conveyed by the Owners. 14. NOTICE BY RECORDATION. This Agreement shall be recorded in the Office of the Garfield County Clerk and Recorder and shall be a covenant running with title to all lots, tracts, and parcels within the Development. Such recording shall constitute notice to prospective purchasers or other interested parties as to the terms and provisions thereof. 15. SUCCESSORS AND ASSIGNS. The obligations and rights contained herein shall be binding upon and inure to the benefit of the successors and assigns of the Owners and the BOCC. 16. IDENTIFICATION OF CONTRACT ADMINISTRATORS AND NOTICE PROVISIONS. All notices required or permitted by this Agreement shall be in writing and shall be deemed effective when received by the recipient party via personal or messenger service delivery, facsimile transmission or United States certified mail 6 (postage prepaid, return receipt requested), in all cases addressed to the person for whom it is intended at the address or facsimile number set forth below: NIESLANIK INVESTMENTS: CECELIA L. NIESLANIK BYPASS TRUST: BOCC: Nieslanik Investments, LLC 1872 Prince Creek Road Carbondale, Colorado, 81623 Cecelia L. Nieslanik Bypass Trust 1872 Prince Creek Road Carbondale, Colorado, 81623 w/copy to representative: Mark E. Hamilton, Esq. Holland & Hart LLP 600 East Main Street, Suite 104 Aspen, Colorado 81611 (970) 925-3476 Board of County Commissioners of Garfield County, Colorado c/o Fred Jarman, Planning Director 108 Eighth Street, Room 401 Glenwood Springs, CO 81601 Phone: (970) 945-8212 Fax: (970) 384-3470 The Representatives of the Owner and the BOCC, identified above, are the authorized representatives of the parties for purposes of contract administration and notice under this Agreement. 17. AMENDMENT. This Agreement may be modified from time to time, but only in writing signed by the parties hereto, as their interests then appear. The parties, however, may change the identification of notice recipients and contract administrators and the contact information, provided in Paragraph 16 above, in accordance with the notice provisions and without formal amendment of this Agreement. 18. COUNTERPARTS. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which, when taken together, shall be deemed one and the same instrument. 19. VENUE AND JURISDICTION. Venue and jurisdiction for any cause arising out of or related to this Agreement shall lie with the District Court of Garfield 7 County, Colorado, and this Agreement shall be construed according to the laws of the State of Colorado. IN WITNESS WHEREOF, the parties have signed this Agreement to be effective upon the date of recordation of this agreement and the Exemption Plat for the Development. ATTEST: Clerk to the Board BOARD OF COUNTY COMMISSIONERS GARFIELD COUNTY, COLORADO By: Chairman Date: 8 SIGNATURE AND ACKNOWLEDGEMENT PAGE To IMPROVEMENTS AGREEMENT FOR RURAL LAND DEVELOPMENT OPTION EXEMPTION Nieslanik Investments, LLC and Cecelia L. Nieslanik Bypass Trust By: Date: STATE OF COLORADO ) ss COUNTY OF Garfield County Subscribed and sworn to before me by as of Nieslanik Investments, LLC and the Cecelia Nieslanik Bypass Trust this day of December, 2010. WITNESS my hand and official seal. My commission expires: Notary Public 9 RURAL LAND DEVELOPMENT OPTION EXEMPTION IMPROVEMENT AGREEMENT EXHIBITS The following Exhibits are attached hereto and made a part of this Development Agreement for Rural Land Development Exemption: Exhibit A - Conservation Easement Exhibit B - Development Improvements Estimated Cost of Construction Exhibit C - Form of Written Request for Release of Restriction in Plat Note No. 9 Exhibit D - Form of Release of Restriction in Plat Note No. 9 10 EXHIBIT "A" Conservation Easement DEED OF CONSERVATION EASEMENT recorded 12/22/2005 under Reception No. 688879, Book 1757, and Page 658, COUNTY OF GARFIELD, STATE OF COLORADO. 11 EXHIBIT "B" Development Improvements Estimated Cost of Construction ENGINEER'S OPINION OF PROBABLE CONSTRUCTION COSTS NIESLANIK RURAL LAND EXEMPTION PLAT SE JOB NO, 24034 JULY 22,2010 ITEM QUANTITY UNIT UNIT COST COST ! MC7RIi.1711T IDN .MJB LS 9.07 00 9 007 00 2 tAYl7UT O0SERVATICN,TESTING &A BU1LTS JOS LO 18,00000 •500000 3 CLEARANDGRU9 JOB LS 1,500 00 1.50000 4 EXCAVATION AND EMBANKMENT 600 C.Y. 1000 8OW70 5 CLASS 6A6[3RECATE ROALWQAY 625 C Y. 2e OD 1s 70000 0 r HOPE WATER LINE INSTAL LED taint Irend+ wr2 Q .$I 3.200 L F 24 00 76 600 00 T r HOPE WA1 ER LINE INSTALLED 500 f A. 18 00 11001000 0 WAIL SERVICES 4 E A. 500 DO 7 00000 9 Ir ADS N-12 STORM 60 LF 3000 150000 10 YitLL PUMP STATION INC PUMP 2 L 3 8,1100 00 14 00000 11 SILT FENCE 1,420 L F 238 3.551100 12 EROSION C0+4 1901. !S.1PAW BnLC5 1AL10 RAcei JOB L $ 3.000 01) 3 00000 13 !'UTILITY TRENCH IELECT11IC 4 TELE ttorsEj 2.500 L F. 81 00 27 50400 14 P CDBI,u1r-T'li'RKtsH AND INSTALL ITELEPHONE i 2 500 L F: 250 0.25000 16 EmfCTRIC TRANSFORMERS 2 EA 7000D 1'0000 10 I, I.ECIRIC COMPANY FEES JOB L 9 50,000 00 50,00400 17 T6LEP11F3NFfMIPANYFEES (OWES TI, JOB L6 210o Go 260000 Is TRAFFIC CONTROL JOB 1 9 250 00 25060 Sltl1T[7TAL ICOM 1.20 240.250 00 W%CON 1INOEItCY 24 e75 00 IOTA. 1 210,021.104 irlStl+cry 0 11 $77 NOTE This opinion of probable construction onst was prepared for budgeting purposes only. Sopris Eco-++eenng, LLC cannot be held reapnnsibte for varsancee from Ibis eetimate as actual oohs may wary due to bet 4^4 market fluctuations 12 EXHIBIT "C" Form of Written Request for Partial or Final Release of Restrictions in Plat Note No. 9 [Declarant's Letterhead] Garfield County Commissioners C/O Fred A. Jarman, Director Building and Planning Department 108 8th Street, Suite 401 Glenwood Springs, CO 81601 RE: John Nieslanik Ranch Rural Land Development Exemption Option The undersigned hereby formally notifies the BOCC of the work completed for the John Nieslanik Ranch Rural Land Development Exemption. As Owner (on behalf of the Owner), I request that the BOCC review the attached Engineer's Certificate of Completion and approval a full (or partial) release of the Plat Note Restriction for all (or some) of the lots contained on the John Nieslanik Ranch Exemption Plat. Attached is the certified original cost estimate and work completed schedule, showing that all (or some) of the improvements required by the Improvements Agreement have been completed. Also enclosed are the following, required by the Improvements Agreement dated between Owner and the BOCC, recorded at Reception No. in the office of the Garfield County Clerk and Recorder (the "IA"): 1. Record drawings bearing the stamp of Owner's Engineer certifying that all improvements have been constructed in accordance with the requirements of the IA, both in hard copy and digital format acceptable to the BOCC; and 2. Copies of instruments conveying real property and other interests which Owner was obligated to convey to the homeowner's association or other entity at the time of Exemption Plat approval. If further information is needed, please contact at Owner Or Owner's Representative/Engineer 13 EXHIBIT "D" Form of Release of Restriction in Plat Note No. 9 PUBLIC NOTICE: Garfield County hereby releases the restriction contained in Plat Note No. of the John Nieslanik Ranch Rural Lands Exemption Plat Map recorded , 2010 under Reception No. of the Garfield County real property records only insofar as the same applies to Lot(s) Executed this _day of , 20 Garfield County, Colorado By: Chairman, Board of County Commissioners 14 JOHN NIESLANIK RANCH RURAL LAND DEVELOPMENT EXEMPTION DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR JOHN NIESLANIK RANCH RURAL LAND DEVELOPMENT EXEMPTION (hereafter the "Declaration") is made this day of December, 2010 by Nieslanik Investments, LLC, and Cecelia L. Nieslanik Bypass Trust (hereafter referred to as the "Declarant"). RECITALS WHEREAS, Declarant is the owner of that certain real property known as the John Nieslanik Ranch Rural Land Development Exemption (the "Development Exemption"), as the same is laid out and described on the Plat thereof recorded as Reception No. in the records of Garfield County, Colorado (the "Plat"); and WHEREAS, the Development Exemption consists of Lots 1, 2, 3, 4, 5 and 6 (collectively the "Lots"); and WHEREAS, Declarant is also the owner of all water and water rights, ditches and ditch rights, wells and well rights, well permits, easements and rights-of-way appurtenant to or used upon or in connection with the Development Exemption and all other common facilities and appurtenances related thereto, all of which shall be deemed to be included in the definition of "Development Exemption" as set forth and used herein; and WHEREAS, Declarant has created a homeowners' association known as the John Nieslanik Ranch Rural Land Development Exemption Homeowners' Association (hereafter the "Association"); and WHEREAS, Declarant desires to provide a flexible and reasonable procedure for the overall operation of the Development Exemption, and to establish a homeowners' association for the administration, maintenance, preservation, control, use, and enjoyment of the Development Exemption, as well as provide for the enforcement of the restrictions, covenants and conditions hereinafter set forth. 1 DECLARATION NOW THEREFORE, Declarant hereby declares that the Development Exemption, and all Lots comprising the same, shall be held, transferred, sold, conveyed and occupied subject to the following covenants, conditions and restrictions which are established for the purpose of protecting the value and desirability of the Development Exemption and which shall run with title to the Lots and be binding on all owners or other parties having any right, title or interest in the Development Exemption. Additionally, a Declaration of Restrictive Covenants has been previously recorded at Reception No. 686419 in the records of Garfield County, Colorado, which prior Declaration is incorporated herein by reference. In the event of any conflict between the previously recorded document and this document, the previously recorded document will govern. ARTICLE I DEFINITIONS 1. Annual Budget. "Annual Budget" shall mean the calendar year estimates of Association expenses and expenditures upon which the Annual Assessment shall be based, which budget shall be prepared by the Association Manager, all as more particularly provided in Article VI below. 2. Annual Meeting. "Annual Meeting" shall mean the meeting of all members of the Association to occur once a year for the primary purposes of approving the Annual Budget and selecting the Association Manager, but at which meeting any other business matters of the Association may be raised and addressed. 3. Annual and Special Assessments. "Assessments" shall mean all assessments, Annual and Special, for Common Expenses of the Association, and all installments thereof, with interest thereon and costs of collections, including reasonable attorney's fees, all as more particularly defined and provided in Article VI below. 4. Association. "Association" shall mean the John Nieslanik Ranch Rural Land Development Exemption Homeowners Association, a Colorado Nonprofit Corporation, incorporated for purposes of owning, maintaining and administering the common facilities as hereafter described and defined, the members of which Association shall be the owners of the Lots and which Association shall also administer and enforce the covenants, conditions and restrictions herein set forth and collect and disburse the assessments and charges all as hereinafter provided in this document. 5. Association Manager. "Association Manager" shall mean a person who shall be a Lot Owner and Member of the Association, and who shall be responsible for preparing the Annual Budget, collecting Annual and Special Assessments and other revenues, disbursing funds for Common Expenses, calling special meetings and otherwise managing the administrative affairs of the Association. Subsequent to conveyance of the first Lot by Declarant, the Association Manager shall be the Declarant or Declarant's successor in interest as herein provided, at all times during which Declarant or its said successor shall own at least two (2) of the Lots comprising the Development Exemption, and thereafter to be determined by Owners 2 Action. 6. Common Expenses. "Common Expenses" shall mean the expenses incurred by the Association under the provisions of this Declaration and which are payable by the Lot Owners upon assessment. 7. Common Facilities. "Common Facilities" shall mean all real property (exclusive of the Lots) or interests in real property including but not limited to shared water facilities and roads, improvements thereto, and personal property now or hereafter owned by the Association through dedication, conveyance, or assignment by the Declarant to the Association or acquired by the Association through Owners Action for the common use and enjoyment of all Lot Owners, and more particularly described in Article IV below. There are expressly excluded from the Common Facilities any easements, facilities, property and structures, the purpose and appurtenant nature of which are to serve or benefit less than all of the Lots within the Development Exemption, including without limitation, domestic water service lines, irrigation pipe laterals, utilities and roads designed to serve, benefit and be appurtenant to one or more but less than all of the Lots. Any such excluded facilities, easements, property and structures shall be controlled, operated and maintained by the Owners of the Lot or Lots served thereby as appurtenant thereto at such Owner or Owners' expense. 8. DRC. "DRC" shall mean DRC, a committee consisting of the Decalrant or other Lot Owners pursuant to which shall implement and enforce architectural standards and design guidelines within the Development Exemption pursuant to Article VIII, below. 9. Lot Owner or Owner. "Lot Owner" or "Owner" means the person, persons, entity or entities who or which together shall comprise the record owner of fee simple title to a Lot. 10. Member. "Member" shall mean a person or entity that, by virtue of their status as a Lot Owner, is deemed to enjoy the membership privileges and responsibilities in the Association. 11. Owners Action. "Owners Action" shall mean a written statement of action to be taken by the Association which statement shall be executed by no less than the Owners of three (3) Lots or their respective authorized representatives. 12. Rules and Regulations. "Rules and Regulations" shall mean the rules, regulations, guidelines, policies and standards as may be adopted and approved by Owners Action as provided in this Declaration governing the use of the Lots and the use, operation, maintenance, and administration of the Common Facilities in compliance with County approvals and regulations. ARTICLE II PROPERTY RIGHTS AND USE OF PROPERTY 1. Lots. Lots 1, 2, 3, 4, 5 and 6 shall be used only for the construction, use and 3 occupancy of and as single-family dwellings and customary accessory uses as defined in the Zoning Resolutions of Garfield County, Colorado, or as permitted by the further provisions hereof. The foregoing notwithstanding, it is acknowledged that Lot 6 also reserves the right to replace, improve, expand or otherwise modify existing residences, ranch buildings, improvements and structures and other outbuildings, within the Ranch Headquarters Envelope, as permitted by the Conservation Easement. Such structures may include barns, corrals, hay storage and cattle feeding facilities, greenhouses, and such other improvements as may be necessary, appropriate or convenient in connection with the conduct of agricultural operations on the Property provided, however, that any such replacement, improvement, expansion or modification activity shall be subject to review and approval by the DRC prior to commencement of any such activity. The Ranch Headquarters Envelope shall remain as an active agricultural property despite the development exemption of Lots 1, 2, 3, 4 and 5. Therefore, the Owner of Lot 6 may utilize such property for agricultural purposes in addition to single family residential purposes subject to the conditions set forth herein. 2. Cse of Common Facilities. Subject to the limitations set forth in this Declaration and any Rules and Regulations adopted by the Association pursuant to the provisions of this Declaration, each and every Lot Owner shall have the right to the use, enjoyment and benefit of the Common Facilities. 3. Building Envelopes. As part of the Development Exemption process the Owner has established the most efficient and practical building envelope upon each Lot. All above - grade improvements to be constructed upon a Lot, with the exception of improvements which are necessary to facilitate ingress and egress to and from a Lot, shall be located within the building envelope established for such Lot. The DRC does not have the ability to allow structures to be located outside of the building envelope. The County will not issue a building permit for any structure wholly or partially located outside of the envelope including accessory structures, decks, etc. Once the plat is approved any owner may seek to amend the building envelope. If an amended plat is requested to amend the envelope the County will send a referral to the Association. 4. Appurtenance of Interests. Any legal or beneficial interests in the Common Facilities that inure to a Lot Owner by virtue of such ownership are appurtenant to the Lot owned, with or without specific reference to such appurtenance in any deed which may convey the Lot. 5. Governance of Development Exemption. Subject to rights, interests and authority expressly reserved to the Declarant herein, all of the authority regarding the ownership, operation, maintenance, repair, administration and control of the Common Facilities shall be vested in the Association and the Lot Owners through their right to participate by Owners Action in governance of the Development Exemption and all of its Common Facilities as said rights are more fully described in this Declaration. 6. Waiver of Right to Partition. Each Lot Owner irrevocably waives his right to statutory partition of the Common Facilities. 4 7. Enforcement. The Declarant, or the Association by Owners Action, or any Lot Owner shall have the right to enforce the covenants, conditions and restrictions contained in this Declaration by any legal or equitable means necessary and available including actions for damages and injunctive relief. In the event of any such action, the Declarant, the Association or Lot Owner or Owners, if they prevail in said action, shall be entitled to receive reasonable attorney's fees and costs from the Lot Owner or Owners found to be in violation of this Declaration. ARTICLE III MEMBERSHIP, VOTING RIGHTS AND OWNERS ACTION 1. The owner of record of fee simple title to each Lot shall be a Member of the Association. For purposes of this Declaration, if a Lot is owned by more than one person, all of the persons owning an interest in fee simple title to the Lot shall, in the aggregate, be the Lot Owner thereof and such multiple persons comprising the Lot Owner shall, among themselves, designate one of their number to participate in, and represent the others, in any Association affairs or Owners Action as herein described. For purposes of participation in Owners Actions and any other voting matters in the Association, a Member owning more than one Lot shall be entitled to one vote for each Lot owned. 2. Except as otherwise herein provided, the ownership, operation, management, maintenance and repairs of the Common Facilities and all Association actions taken with respect thereto shall be undertaken and performed pursuant to Owners Action. The Association shall have the exclusive power and authority to manage any affairs regarding the Common Facilities, and such power and authority shall include, without limitation whatsoever, the following authority: a. To own, purchase, lease, install, operate, maintain, repair and replace all or any part of the Common Facilities; b. To adopt such Rules and Regulations as are necessary and appropriate for governing the use and benefits of the Common Facilities; c. To establish and oversee the Annual Budget, for purposes of paying anticipated and contingent expenses related to the Common Facilities; d. To make, determine and collect Annual and Special Assessments for the purpose of paying all Common Expenses. Said Annual Assessments to be determined in accordance with the establishment of the Annual Budgets and as the same are necessary as Special Assessments for extraordinary or unforeseen expenses related to said Common Facilities and which were not included in or provided for under the Annual Budget. All Annual and Special Assessments shall be made on a ratable basis among the Lot Owners, with a one-fourth (1/6th) share of the total assessment to be paid by the Owner of each Lot; e. Subject to the provisions of Article I(5), to elect at the Annual Meeting by Owners 5 Action, an Association Manager to act, during the upcoming year, on behalf of the Association and in such capacity to exercise all powers of the Association delegated to him by such Owners Action; f. To enforce, by Owners Action, the provisions of this Declaration and any Rules and Regulations adopted by the Association as provided herein, either through Owners Action or by delegation of such enforcement authority to the Association Manager; g. To establish a date certain for the Annual Meeting for the ensuing year and to establish Special Meetings as appropriate and necessary. Written notice of the date, time and place of all Annual and Special Meetings, shall be given to each Member by mailing such notice to each such Member at least twenty (20) days prior to the date of such Annual or Special Meeting at the address of each respective Member as the same shall be maintained in the records of the Association. h. To receive and use for the joint and common benefit of all Lot Owners any revenues received by the Association from whatever sources and determination of the specific uses of such funds. i. To take any other action necessary or appropriate to carry out the purposes herein expressed and to properly maintain the Common Facilities for the use and benefit of the Lot Owners. ARTICLE IV COMMON FACILITIES — OWNERSHIP, USE. MAINTENANCE The Common Facilities which shall be owned by the Association include, but are not limited to all common elements all designated roads and easements therefore, and improvements thereto, utility easements, main ditch easements, water rights, well and pump easements, water storage and pipeline easements, and drainage easements which serve or benefit all Lots in the Development Exemption as shown on the Plat. The Association shall maintain and keep in good repair the Common Facilities (and any personal property and improvements associated therewith) and any other improvements to or upon the Common Facilities. Such maintenance shall be funded through the Annual and Special Assessments as provided herein, and revenues received from any other sources, and shall include, but not be limited to, maintenance, repair, and replacement of all other structures and improvements situated upon the Common Facilities all to the end that the safety, appearance and quality of the Common Facilities shall permanently endure. ARTICLE V INSURANCE AND CASUALTY LOSSES 1. Insurance. If deemed necessary, the Association Manager shall have the authority to obtain insurance for all insurable components of the Common Facilities against loss or damage 6 by fire or other hazards, including extended coverage, vandalism, and malicious mischief. This insurance shall be in an amount sufficient to cover the full replacement cost of any repair or reconstruction in the event of damage or destruction from any such hazard. The Association Manager may also obtain an adequate public liability policy insuring the Association, and its individual Members and Association Manager for all damage or injury caused by the negligence of the Association or any of its Members, the Association Manager or other agents of the Association. 2. Repair and Reconstruction. If the damage or destruction for which the insurance proceeds are paid is to be repaired or reconstructed and such proceeds are not sufficient to defray the cost thereof, the Association Manager may, without the necessity of any Owners Action, levy a Special Assessment to cover the amount of deficiency. If the funds available from insurance exceed the cost of repair, such excess shall be retained to the benefit of the Association. ARTICLE VI ASSESSMENTS 1. Annual and Special Assessments. All Annual and Special Assessments, together with interest at the legal or statutory rate, costs, and reasonable attorneys' fees, if any, shall be a charge on the land and shall be a continuing lien upon the Lot against which each Annual or Special Assessment and the aforesaid related costs and expenses, is made. Each such Annual or Special Assessment, together with interest, costs and reasonable attorneys' fees, if any, shall also be the personal obligation of the person who was the Owner of a particular Lot at the time the Assessment was made. All such Annual and Special Assessments shall be due and payable within thirty (30) days following the date upon which the Association Manager shall have mailed notice of such Annual or Special Assessment to the Lot Owner obligated to pay the assessment at the address of said Lot Owner as maintained in the Association records. 2. Liens and Foreclosure of Liens. All Annual and Special Assessments shall constitute a lien on each Lot, respectively, prior and superior to all other liens, except (i) all ad valorem taxes, bonds, assessments, and other levies which, by law, would be superior thereto, and (ii) the lien or charge of any first mortgage of record (meaning any recorded mortgage or deed of trust with first priority over other mortgages or deeds of trust) made in good faith and for value. Suit to recover a money judgment for unpaid Assessments, interest and attorneys' fees shall be maintainable without foreclosing or waiving the lien securing the same. Any lien created pursuant to the provisions of this Article VI may be foreclosed under the laws of the State of Colorado in the same manner as a mortgage. 3. Computation of Annual Budget and Annual Assessment. It shall be the duty of the Association Manager, at least thirty (30) days prior to the Annual Meeting at which the budget shall be presented to the Association's membership, to prepare a budget covering the estimated costs and appropriate reserve fund amounts for operating the Association during the coming year. The Association Manager shall cause a copy of the budget, and the estimated amount of the Annual Assessments deriving therefrom and to be levied against each Lot for the following year, to be delivered to each Lot Owner with notice of the Annual Meeting. Such budgeting process shall take into account any revenues received or anticipated by the Association 7 from sources other than Assessments. ARTICLE VII ADDITIONAL RESTRICTIONS ON USE AND BUILDING All Lots shall be subject to the following covenants and restrictions on use and building restrictions. 1. Violation of Law or Insurance. No Owner shall permit anything to be done or kept in his Lot or in or upon any Common Facilities which will result in the cancellation of insurance thereon; or which would be in violation of any law, or would constitute a violation of any condition or requirement of approval of the Development Exemption by the Board of County Commissioners of Garfield County. 2. Signs. No sign of any kind shall be displayed to the public view from any Lot or any Common Facility without the approval of the Association or the DRC, except: a) such signs as may be used by Declarant in connection with the development and sale of Lots; (b) such signs as may be required by legal proceedings, or the prohibition of which is precluded by law; or (c) one "for sale" sign which shall not exceed two (2') feet by three (3') feet. All required sign permits shall be obtained from Garfield County. 3. Dogs. Dogs may be kept and maintained on a Lot and then only with the following restrictions and conditions: a. Dogs shall be kept under the control of the Owner at all times, shall not cause a nuisance on neighboring properties, and shall not be permitted to run free except for working dogs on the ranch. b. Dogs shall not be allowed to bark continuously, which shall be defined as barking for a continuous fifteen (15) minute period. c. The Association shall assess and enforce penalties against Lot Owners violating the foregoing restrictions applying to dogs, in such amounts as the Association may set from time to time. Until the Association acts to set other penalties, they shall be as follows: One Hundred Dollars ($100) for the first violation committed by an Owner's dog; Two Hundred Dollars ($200) for the second violation; Three Hundred Dollars ($300) for the third violation; and for each succeeding violation the fine increases in One Hundred Dollars ($100) increments. Should any dog chase or molest deer, elk or any domestic animals, or destroy or disturb property of another Lot Owner, the Association shall be authorized to prohibit the Lot Owner or resident from continuing to maintain the offending animal on his property. All above penalties shall constitute Special Assessments against the violating Lot Owner. d. All Lot Owners shall keep their dogs and other household pets reasonably clean, and all Lots shall be free of animal waste and refuse. 8 e. The Association shall have the right to impose such penalties in addition to any fines that may be imposed under the regulations of Garfield County or the State of Colorado with respect to dogs or other animals. 4. Nuisances. No Lot Owner shall permit or suffer anything to be done or kept about or within his Lot, which will obstruct or interfere with the rights of other Lot Owners or their property, including generation of unreasonable noises or otherwise, nor will any Lot Owner commit or permit any nuisance or commit or suffer any illegal act to be committed on his Lot. Each Lot Owner shall comply with the Rules and Regulations, the requirements of all health authorities and other governmental authorities having jurisdiction over the Development Exemption. Pursuant to the allowed agricultural use upon Lot 6, as well as the County's existing regulations regarding the right of County residents to farm and ranch agricultural property, no use of Lot 6 for agricultural purposes or any result of such use, including without limitation noises, sounds, and smells consistent with normal agricultural activities, shall be deemed to constitute a noxious or offensive activity or otherwise be deemed a nuisance pursuant to this Section. 5. Boats, RV's and Motor Vehicles. The Association shall be empowered to regulate the storage of boats, RV's and motor vehicles on all Lots. Except that the minimum Garfield County single-family parking requirements of two vehicle parking spaces per residence must be maintained. No boats, trailers, buses, motor homes, campers, snowmobiles, all -terrain vehicles or other vehicles shall be parked or stored in or upon a Lot except within an enclosed garage or fully screened area as permitted by the Design Guidelines. The Association may remove, or cause to be removed, any unauthorized vehicle at the expense of the owner thereof in any manner consistent with law. 6. Lights. All exterior residential lighting must be shielded and directed downward. 7. Antennas. No radio, television or other antennas of any kind or nature, or device for the reception or transmission of radio, microwave or other similar signals, shall be placed or maintained upon any Lot except as may be permitted by the Association, Rules and Regulations or in accordance with the Design Guidelines. 8. Garbage. No rubbish, garbage or trash, or other waste material, shall be kept or permitted on any Lot so as to be visible from another Lot or the Common Facilities. No incinerators shall be kept or maintained in any Lot. No refuse pile, garbage or unsightly objects shall be allowed to be placed, accumulated or suffered to remain anywhere on a Lot. Trash removal shall be accomplished through contract entered into by the Association and billed as part of the Common Expense. 9. Safe Condition. Without limiting any other provision in this Section, each Owner shall maintain and keep his Lot at all times in a safe, sound and sanitary condition and repair and shall correct any condition or refrain from any activity which might interfere with the reasonable enjoyment by other Owners of their respective Lots or the Common Facilities. 9 10. Fires Outside Dwellings. Other than commercially manufactured barbecues or properly constructed barbecue pits or grills and firepits in compliance with the Rules and Regulations and Design Guidelines, or as otherwise expressly permitted by the Association, no open fires shall be permitted on the Lots, nor shall any other similar activity or condition be permitted which would tend to increase the insurance rates for the Common Facilities or for other Owners. 11. Weed Control. It shall be each Lot Owner's responsibility to control all weeds and thistle on their entire Lot. If the Association performs weed and thistle control, a Special Assessment shall be made against the Lot and Lot Owner for the expense thereof The Weed Management Plan has been attached to and incorporated herein as Exhibit A and will be managed and enforced by the Association. 12. No Obstruction of Drainage. No Owner shall erect, construct, maintain, permit or allow any fence or other improvement or other obstruction which would interrupt the normal drainage of the land or within any area designated on the Plat, or other recorded document, as a "drainage easement," except that, with the prior consent of the DRC, non- permanent structures, including fences, may be erected in those areas which contain only underground closed conduit storm drainage facilities. 13. Rental of Lots. An Owner who leases his Lot shall be responsible for assuring compliance by his lessee with all of the provisions of this Declaration, the Rules and Regulations and Design Guidelines, all as amended and supplemented from time to time, and shall be responsible for any violations by his lessee thereof. 14. Resubdivision Prohibited. The resubdivision of a Lot by a Lot Owner is prohibited. Lot line adjustments, which would require application to, and approval of an amended exemption plat from Garfield County, and which do not result in the creation of additional Lots shall not constitute resubdivision but shall require written approval of the DRC and shall comply with all requirements of Garfield County. 15. Landscaping and Fencing. All areas of the Lots which are susceptible of access by grazing livestock shall be fenced by the Lot Owner and the DRC must approve the type and location of all fences and hedges prior to installation on any Lot. All landscaping shall be completed within six months of issuance of either a TCO (temporary certificate of occupancy) or a CO (certificate of occupancy) by Garfield County. Specifically, if a CO or TCO is obtained from January through July then the landscaping must be completed in the same calendar year. If a CO or TCO is obtained from August through December then the landscaping must be completed before July of the following year. All landscaping shall be properly cared for and maintained. All disturbed areas must be revegetated with vegetation approved by the DRC. 16. Woodburning Stoves and Fireplaces. No open-hearth solid -fuel fireplaces will be allowed anywhere within the Development Exemption. One (1) new solid -fuel burning stove as defined by C.R.S. 25-7-401, et seq., and the regulations promulgated thereunder, will be allowed in any dwelling unit. All dwelling units will be allowed an unrestricted number of natural gas burning stoves and appliances. 10 17. Underground U tilitics. All utilities serving the Lots, including without limitation, electric power, telephone, cable television, natural gas lines and water lines shall be installed and maintained underground. This restriction shall include main transmission lines and all service lines to the individual Lots. This restriction shall not apply to existing main electric and telephone overhead transmission lines located on Lots 5 and 6. 18. Firearms. The discharge or shooting of firearms is prohibited. 19. Mineral Exploration and Extraction. Lot Owners agree not to separate or sell from the Property any portion of mineral rights. However, if a third party owner, lessor or interest -holder of mineral rights associated with the Property requires entry onto the Property in order to develop such mineral rights, Lot Owners may permit or lease to a third party the right to develop minerals beneath the Property by those methods of mineral development having only limited, localized, temporary and reclaimable impacts on the Property, which impacts must not be irremediably destructive. (For example, drilling for oil or natural gas beneath the Property from an offsite location, or from the surface of the Property in a manner that does not result in water contamination, destruction of wetlands or significant habitat, or damage to scenic views from public rights-of-way, may be permitted.) In addition, any surface alterations or disturbance caused by or associated with mineral development must be restored to as close to its original state as possible upon completion of drilling, exploration or extraction operations. The Owner of Lot 6, which is encumbered by a Conservation Easement, shall notice the Aspen Valley Land Trust prior to entering into, permitting or leasing the right to develop any mineral resource on the Property, and before entering into any appurtenant surface use agreements, non -surface use agreements, damage agreements or other related agreements, easements or rights-of-way affecting Lot 6 (collectively hereafter "SUAs" ) as may be necessary. Specifically, any mineral leases or SUAs affecting Lot 6 entered into after the date of the Conservation Easement shall: a. incorporate the Easement by reference and summarize the Conservation Values; b. be subordinate to the Easement (with regard to the Owner's share of the mineral rights, and with deference to previously executed leases and agreements); c. permit no more structures or infrastructure upon, or impacts to Lot 6 than are reasonably necessary to development of mineral rights beneath the Property in a method consistent with the above paragraphs; and where possible and feasible, non -surface occupancy methods of mineral development shall be employed to avoid surface impact to the Lot 6; d. require that any impacted sites are recontoured, revegetated, and restored as described above. 20. Reflective Finishes. Reflective finishes and reflective glass shall not be used on any exterior improvement surfaces, including without limitation walls, roofs, windows, doors, trim, retaining walls and fences; provided, however, that the foregoing restrictions shall not prohibit skylights to be installed in residences. 11 21. Enclosure of Unsightly Facilities and Equipment. All unsightly facilities, equipment and other items, including but not limited to those specified below, shall be enclosed within a covered structure or otherwise wholly screened from view. Any refuse or trash containers, tanks, pumps, utility meters or other facilities, service areas, or storage piles shall be enclosed within a structure or appropriately screened from view by planting or fencing approved by the DRC, which planting or fencing shall be adequate to conceal the same from neighbors and public and private roads. No lumber, metals, materials, scrap, refuse or trash shall be kept, stored or allowed to accumulate on any Lot, except building materials during the course of construction and only for such reasonable periods of time as is necessary prior to the collection of or disposal thereof. 22. Private Driveways. Each Lot shall be served by its own individual private driveway extending off of the interior Development Exemption roadways and shall be for the exclusive use of the respective Owners. Each Owner shall be solely responsible for any and all maintenance, repair, replacement or other costs related to their respective private driveways. 23. Enforcement. The Association Manager or his authorized agent may enter any Lot in which a violation of this Declaration and these restrictions exists and may correct such violation at the expense of the Owner of such Lot. Any expenses in connection with such correction shall be a Special Assessment against and be secured by a lien upon such Lot enforceable in accordance with the provisions of Article VI hereof. All remedies described in Article VI hereof and all other rights and remedies available at law or equity shall be available to the Association, the Declarant or any Lot Owner in the event of any breach of any provision of this Article VII by any Owner. 24. Restrictions/Conditions Imposed By Garfield County. The use of all Lots shall be in strict accordance with the conditions of approval and Plat restrictions contained in Resolution 2010-81 recorded at Reception No. 792747 in the office of the Garfield County Clerk and Recorder as and enacted by the Board of County Commissioners of Garfield County, Colorado, approving the Development Exemption and the Plat. 25. Fugitive Dust Management Plan. It shall be each Lot Owner's and land developer's responsibility to follow the Fugitive Dust Management Plan attached to and incorporated herein as Exhibit B. The Fugitive Dust Management Plan will be managed and enforced by the Association. ARTICLE VIII DESIGN REVIEW 1. Approval of Improvements Required. No improvement to the property shall be constructed on any Lot without Design Review Committee ("DRC") approval, except where approval is not reasonably required to carry out the purposes of this Declaration as determined by the DRC any improvements upon Lot 6 that are permitted pursuant to the Conservation Easement recorded in the Garfield County real property records at Reception No. 688879. "Improvement to property" shall mean the construction, erection, installation or expansion of any building, 12 structure or utility facilities, and fences or destruction or removal of any building, structure, tree, vegetation or other improvement, or the grading, excavation, filling or similar disturbance to the surface of land, or any change of any previously approved improvement to a Lot, including any change of exterior appearance, color or texture. 2. DRC. The DRC shall consist solely of the Declarant until such time as primary residences have been constructed on Lots 1 through 6. Thereafter, the Association by Owners Action shall appoint such number of Lot Owners and for such terms as it deems appropriate to serve as the DRC. 3. Design Guidelines. The DRC shall establish reasonable procedural rules, regulations, architectural standards and design guidelines (the "Design Guidelines") that the DRC may, from time to time in its discretion, amend, repeal or augment. The Design Guidelines may include, among other things, the following restrictions and limitations: a. Procedure for submittal of all construction plans to the DRC. b. Time limitations for the completion, within specified periods after approval and commencement of construction, of the improvements for which approval is required pursuant to the Design Guidelines. c. To preserve the views from other Lots and to preserve the natural beauty and condition of each Lot, the designation of a "building envelope" where needed within the discretion of the DRC, establishing the location and maximum developable area of the Lot. Provided that no structure shall be sited anywhere on a Lot outside of the designated envelopes established for each Lot as part of the Development Exemption process. The DRC shall, within its discretion, approve the building's location within the envelope as near to the location selected by the Owner as it deems appropriate. With respect to Lot 6, the foregoing provision is subject to the provisions of Article II, Section 1, above. d. Approval of plans and specifications prior to the commencement of all construction. In addition to other use and building restrictions contained in Article VII hereof, no building shall be erected by means of other than new construction, it being the purpose of this covenant and restriction to ensure that old buildings will not be moved from previous locations and placed upon a Lot. Further, all structures shall be constructed of either brick, stone, lumber, stucco, logs or a combination thereof. The use of cinderblock shall not be allowed unless it is faced with another approved material. No residential buildings commonly known as "modular homes," "factory built housing," "HUD homes" or "mobile homes" shall be permitted to be constructed or installed on any Lot. e. The DRC shall list the varieties of plants and trees that shall be permitted to be planted on any Lot. A list of such plants and trees shall be kept on file at all times by the Association. The Association may, from time to time, amend the list of permitted plants and trees to add or delete certain varieties. 13 £ The DRC or the Association may make rules prohibiting the use of all chemical pesticides and herbicides during certain periods of the year. g. Such other limitations and restrictions as the DRC in its reasonable discretion shall adopt, including without limitation, the regulation of all exterior lighting, landscaping (including without limitation, absolute prohibition of certain types of landscaping, trees and plants), construction, reconstruction, exterior addition, change or alteration to or maintenance of any building, structure, foundation system, wall or fence, including, without limitation, the nature, style, shape, height, materials, exterior color, surface texture, location of any such improvement and prohibition of construction during certain periods of the year. 4. General Provisions. a. The DRC may assess reasonable fees in connection with the review of plans and specifications. In the event that an application requires extraordinary legal, engineering or other fees, the DRC will notify the applicant of the amount of such fees, and the DRC will not be required to take further action until such extraordinary fees are paid by the applicant. Any costs incurred by the DRC in processing an individual application shall be considered a Special Assessment against the Lot involved. b. The DRC may delegate its plan review responsibilities, except final review and approval as may be required by the Design Guidelines, to one or more of its members or architectural consultants retained by the DRC. Upon such delegation, the approval or disapproval of plans and specifications by such members or consultants shall be equivalent to approval or disapproval by the entire DRC. c. The address of the DRC shall be the address established for giving notice to the Association, unless otherwise specified in the Design Guidelines. Such address shall be the place for the submittal of plans and specifications and the place where the current Design Guidelines shall be kept. d. The DRC shall approve or disapprove any plans and specifications submitted to it, in writing, in accordance with the Design Guidelines within a period of thirty (30) days. ARTICLE IX DOMESTIC AND IRRIGATION WATER 1. Domestic Water Supply. a. Each of the six Lots will be served domestic water from one of two existing ground water wells. Well No. 2 has been awarded Exempt Domestic Well Permit #280848 and Well No. 3 has been awarded Exempt Domestic Well Permit 14 #281789 by the Colorado Division of Water Resources. b. Both wells are located on the ranch. According to the Well Permits, each well may pump up to 15 g.p.m. for allowed uses including fire protection, ordinary household uses in up to three single family dwellings, the watering of poultry, domestic animals and livestock on a farm or ranch, and the irrigation of not more than one acre of gardens and lawns per Lot. c. One single-family residence per Lot constructed on Lots 1, 5, and 6 of the Development Exemption shall be entitled to jointly use Well No. 2 and one single-family residence per Lot constructed on Lots 2, 3, and 4 of the Development Exemption shall be entitled to jointly use the Well No. 3. No single Lot shall irrigate more than 5,000 square feet of lawn or garden area with well water. In times of shortage of well water, in-house domestic uses shall have priority over outdoor irrigation uses. The Association shall have authority to implement additional regulations concerning the allocation and use of well water, including the right to require individual metering of each Lot Owner's usage, the construction of additional individual water storage tanks upon each Lot, and other reasonable water conservation measures, as determined in the discretion of the Association. d. Declarant hereby establishes an easement for the use and benefit of Lots 1, 2, 3, 4, and 5 over, across and through Lot 6, for the non-exclusive use and enjoyment of the Wells, for purposes of collecting and transporting the water produced therefrom for all domestic purposes incidental to the lawful use and enjoyment of Lots 1 through 6, and for such other and further purposes as may from time to time be lawfully authorized and permitted. This easement shall be in addition to any other easements granted on the Plat in connection with the Wells. e. The easement described above shall include the right of the owner of Lots 1 through 6 to gain reasonable access as is necessary for purposes of installing and maintaining any Well improvements and an underground water line to transport the water from the Well to the improvements that may be constructed upon Lots 1 through 6, said easement to be located as described on the Plat. f. The John Nieslanik Ranch Rural Land Development Exemption Homeowner's Association shall be responsible for any applications for a well permit or for the application for an adjudication of water rights for the Wells, as required by applicable statutes and regulations. No such applications shall be submitted by the John Nieslanik Ranch Rural Land Development Exemption Homeowner's Association without delivery of written notice to all of the owners of Lots 1 through 6. g. The owners of Lots 1 through 6 shall share equally in the common costs of maintenance, upkeep and capital improvements of the Wells, including but not limited to the costs and expenses of any and all pumps, storage facilities and other 15 equipment used in connection with increasing the depth of the Wells and installing a replacement pump, storage tank or additional improvements to enable the residences on Lots 1 through 6 to be adequately served with water of sufficient quality and quantity. h. Upon construction of any new residence on Lots 1 through 6, the Lot owner is required to provide on site water storage to accommodate in house use, irrigation, and fire protection water storage per the Carbondale and Rural Fire Protection District's requirements. Plans for the on site water storage must accompany any application for Building Permit from Garfield County. Any common work to be performed and paid for under the provisions of this Declaration shall not commence until a cost estimate of work to be done has been presented to and approved in writing by the owners of Lots 1 through 6. The approval of a lot owner shall not be unreasonably withheld, and it is not the intention of the Declarant to allow this clause to be used to prevent or unreasonably delay work authorized by this Declaration. All common work authorized by this Declaration shall be promptly paid for by the owners of Lots 1 through 6. It is understood that the work done at any given time may inure to the immediate benefit of only one (1) party. However, under the terms of this Declaration, all bills shall be promptly paid by the owners of Lots 1 through 6 in equal shares, regardless of whether the benefit inures only to one (1) party at a given time or to the benefit of both parties. k. In the event a lawsuit is necessary to collect monies due under this Declaration, an aggrievance party shall have the right to pursue a mechanic's lien foreclosure or any other legal or equitable remedy, and the prevailing party in any litigation shall be awarded all costs, including a reasonable attorney's fee. J- 1. The covenants, conditions and restriction contained herein shall be binding upon and inure to the benefit of the owners of Lots 1 through 6 and their successors in interest and these covenants, conditions and restrictions shall be deemed to be covenants running with the land. m. All notices required hereunder shall be in writing and shall be delivered personally or by certified mail, return receipt requested. Notices shall be deemed effective upon delivery but not later than ten (10) days after posting. 2. Irrigation Water Supply. Lots 1 through 5 shall not have any surface water rights from the East Mesa Ditch Only Lot 6 shall have the right to irrigate with water delivered through the East Mesa Ditch system. ARTICLE X CONDEMNATION 16 Whenever all or any part of the Common Facilities shall be taken (or conveyed in lieu of and under threat of condemnation, by the Association through Owners Action) by any authority having the power of condemnation or eminent domain, each Lot Owner shall be entitled to notice thereof and to participate in the proceedings incident thereto, unless otherwise prohibited by law. The award made for such taking shall be payable to the Association and used for its purposes herein enumerated. ARTICLE XI GENERAL PROVISIONS 1. Term. The covenants, conditions and restrictions of this Declaration shall run with title to Lots 1, 2, 3, 4, 5 and 6 and shall inure to the benefit of the Lot Owners and shall be enforceable by the Declarant, the Association, its Association Manager or any of the Lot Owners. 2. Indemnification. The Association shall indemnify Declarant and any persons acting in the capacity of Association Manager against any and all expenses, including attorneys' fees and costs reasonably incurred by or imposed upon said Declarant or Association Manager in connection with any action, suit or other proceeding (including settlement of any suit or proceeding) to which the Declarant or Association Manager may be a party by reason of any actions, contracts, agreements or other activity undertaken by the Declarant or Association Manager before or after the making of this Declaration, other than those acts or omissions of Declarant or Association Manager taken or done in violation of the provisions hereof. The Declarant or Association Manager shall not be liable for any mistake of judgment, negligent or otherwise, except for willful misfeasance, malfeasance, misconduct or bad faith. The Declarant or Association Manager shall have no personal liability with respect to any contract or other commitment made by them with third parties, in good faith, with respect to the Development Exemption or Common Facilities or otherwise, on behalf of the Association, and the Association shall indemnify, save and forever hold such Declarant or any Association Manager free and harmless against any and all liability to any third party on account of any such contract or commitment. Any right to indemnification provided for herein shall not be exclusive of any other rights to which Declarant or any Association Manager may be entitled in this regard. Nothing herein shall be construed as relieving Declarant or Association Manager of their respective obligations and duties to the Lot Owners enjoined upon each under the provisions hereof. 3. Amendment or Modifications. At any time subsequent to the conveyance of one (1) of the Lots by Declarant, the Lot Owners may amend or modify this Declaration in any particular by a written instrument executed by the Owners of not less than four (4) of the Lots, and recorded in the records of the County; provided that no such amendment or modification of this Declaration affects or purports to affect any rights accorded to or reserved by the Declarant herein or requirements of Garfield County. No amendments to these Declarations shall conflict with the requirements of the Board of County Commissioners as contained in the Preliminary Plan approved by the Board of County Commissioners recorded as Reception No. 686419 in the records of the Garfield County Clerk and Recorder's Office and the provisions of the Unified Land Use Resolution of 2008, as amended, unless such amendment is approved by the Board of County Commissioners. 17 4. Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect. 5. Perpetuities. If any of the covenants, conditions and restrictions of this Declaration shall be unlawful, void or voidable for violation of the rule against perpetuities, then such provisions shall continue only until twenty-one (21) years after the death of the longest lived members of the Declarant. 6. Non -Waiver. The failure of Declarant, the Association, the Association Manager or a Lot Owner to object to any breach of or failure to comply with the provisions of this Declaration or any Rules and Regulations by a person subject thereto shall in no event be deemed a waiver of any right to object to the same and to seek compliance therewith at any time. 7. Captions. Article and section captions, headings or titles inserted throughout this Declaration are intended solely as a means of convenience and reference and in no way shall such captions, headings or titles define, limit or in any way affect any of the substantive terms and provisions of this Declaration. 8. Context. Whenever the context requires, any pronoun used herein shall be deemed to mean both the feminine and masculine gender, and the singular shall be deemed to also encompass the corresponding plural. IN WITNESS WHEREOF, the undersigned Declarant has executed this Declaration this 10 day of December, 2010. Nieslanik Investments, LLC 1872 Prince Creek Road Carbondale, Colorado, 816 3---,A_ ,- By: Date: j)ec e (Aa o �n/o Cecelia L. Nieslanik Bypass Trust 1872 Prince Creek Road Carbondale Colorado, 8162 By: Date: STATE OF COLORADO 1er1.uo94910 18 ) ss COUNTY OF Garfield County ) Subscribed and sworn to before me by 1\16, .14 e.sickvi as (-en iderect %e{i of Nieslanik Investments, LLC and the Cecelia Nieslanik Bypass Trust this ti C) day of December, 2010. WITNESS my hand and official seal. My commission expires: - 3 Notary 1%Ibli c 19 .1�''11►lll.Pr.1/u,,', 01AR Y AU%ti — i p - '- '"/'P. . 4 •` C mission E1.06. EXHIBIT "A" JOHN NIESLANIK RANCH RURAL LAND DEVELOPMENT EXEMPTION WEED MANAGEMENT PLAN Individual property owners of the John Nieslanik Ranch shall be responsible for the following weed management strategies to prevent or stop the spread of noxious weeds. 1. Individual property owners are responsible for the timely revegetation and reclamation of disturbed sites using appropriate native plant species. Disturbed areas from construction such as roads, driveways, and new utility areas shall have the existing topsoil stockpiled and then replaced on the disturbed areas to the extent possible. Imported soils are more likely to be contaminated with other weed seeds and therefore should be avoided. The following strategies shall be utilized for the revegetation of disturbed areas at the John Nieslanik Ranch: a. Study all vegetation in the area and surrounding areas. b. Preserve plant species native to Colorado. c. Test the soil for pH balance. Try to retain and utilize as much on-site topsoil as possible. d. Select a predominant species that is appropriate to the site. Then choose a few complimentary species to provide a balanced plant community. e. Choose plants that are healthy, vigorous and pest free. f. Use weed -free seeds. Use non -hybrid seeds. Avoid commercial seed packets containing exotic plant species. g. Choose plants that are horticulturally appropriate, i.e. plant species that are adaptable to climate, soil and topographical conditions of the designated area. h. Consider the use of water, its availability and the vegetative requirements. i. To landscape for wildlife, choose native plants that provide cover, forage, browse, seeds for birds and rodents, and shade. j. Be site-specific; revegetation strategies may vary for small lots, farms, ranches or construction sites. k. Establish a vegetative cover that is diverse, effective and long lasting, capable of self- regeneration. 1. Stabilize the surface. 2. After final grades are established and topsoil is spread, property owners must reseed using a native plant species seed mix. A sprinkler system should be used following planting to encourage healthy plants. 3. Individual property owners are responsible for identification and eradication of all noxious weed infestations as well as continuous monitoring and evaluation to prevent recurrence. The Garfield County Designated Noxious Weed List includes the following: 20 a. Canada thistle (Cirsium arvense) b. Chicory (Cichorium intybus) c. Common burdock (Arctium minus) d. Dalmatian toadflax (Linaria dalmatica) e. Diffuse knapweed (Centaurea diffusa) f. Hoary cress (Cardaria draba) g. Houndstongue (Cynoglossum offinale) h. Jointed goatgrass (Aegilops cylindrica) i. Leafy spurge (Euphorbia esula) j. Musk thistle (Carduus acanthoides) k. Oxeye daisy (Chrysantheum leucanthemum) 1. Plumeless thistle (Carduus acanthoides) m. Purple loosestrife (Lythrum salicaria) n. Russian knapweed (Acroptilon repens) o. Russian olive (Elaeagnus angustifolia) P. Salt cedar (Tamarix ramosissima) q. Salt cedar (Tamarix parviflora) r. Scotch thistle (Onopordum acanthium) s. Spotted knapweed (Centaurea maculosa) t. Yellow starthistle (Centaurea solstitialis) u. Yellow toadflax (Linaria vulgaris) 4. In the seasons following planting, noxious weed control shall take place twice yearly in the disturbed and newly planted areas until well established plants are healthy and cover the bare soil. Other weed management beyond the disturbed areas should be done twice each year. This should include locating and either cutting or selective spot spraying any noxious weeds. 21 EXHIBIT "B" JOHN NIESLANIK RANCH RURAL LAND DEVELOPMENT EXEMPTION FUGITIVE DUST MANAGEMENT PLAN All land developers of the John Nieslanik Ranch Rural Land Development Exemption are required to apply to the Colorado Department of Public Health and Environment/Air Pollution Control Division for an Air Pollutant Emission Notice (APEN) and Application for Construction Permit. The John Nieslanik Ranch intends to follow a dust control plan to minimize emissions of fugitive dust to a level that is technologically feasible and economically reasonable within the ranch and on any access roads used for travel to and from proposed home sites within the ranch. 1. During the land development process, fugitive dust control of unpaved roads at The John Nieslanik Ranch will include watering at a frequency of 1 or 2 times per day or as needed. The application of chemical stabilizer is not advised due to the close proximity of the land development areas to active agricultural lands. Vehicle speed control will be enforced with speeds limited to a maximum of 20 mph. Speed limit signs will be posted. The John Nieslanik Ranch roads will ultimately be surfaced with clean gravel to minimize dust. 2. Fugitive dust control of disturbed surface areas on site will include watering as needed. Revegetation of these areas must occur within one year of soil disturbance. All areas to be revegetated shall be seeded with a native grass seed and mulched. If furrowing is applicable for seeded areas, furrows shall be at a right angle to the prevailing wind and the depth of furrow must be greater than 6". All disturbed foundation areas must be compacted to within 90% of maximum compaction on a daily basis. Snow or silt fence may be used as wind breaks if necessary. All disturbed steep areas shall be netted or mulched when reseeded, 3. Prevention of mud and dirt carried out onto paved surfaces will include gravel at all entryways. The cleanup of paved areas will occur as needed with a street sweeper or a hose with water. 22 Document must be filed electronically. Paper documents will not be accepted. Document processing fee Fees & forms/cover sheets are subject to change. To access other information or print copies of filed documents, visit www.sos.state.co.us and select Business Center. -Filled' Colorado Secretary of State Date and Time: 12/10/2010 (] ID Number: 20101673336 1 EXHIBIT $50.00 Document number: 20101673336 Amount Paid: $50.00 ABOVE SPACE FOR OFFICE USE ONLY Articles of Incorporation for a Nonprofit Corporation filed pursuant to § 7-122-101 and § 7-122-102 of the Colorado Revised Statutes (C.R.S.) 1. The domestic entity name for the nonprofit corporation is John Nieslanik Ranch Rural Land Development Exemption Homeowners Association (Caution: The use of certain terms or abbreviations are restricted by law. Read instructions for more information.) 2. The principal office address of the nonprofit corporation's initial principal office is 1872 Prince Creek Road Street address Mailing address (leave blank if same as street address) (Street number and name) Carbondale CO 81623 (City) (State) (ZIP/Postal Code) United States (Province — if applicable) (Country) (Street number and name or Post Office Box information) (City) (State) (ZIP/Postal Code) (Province — if applicable) (Country) 3. The registered agent name and registered agent address of the nonprofit corporation's initial registered agent are Name (if an individual) OR (if an entity) Nieslanik Mark (Last) (First) (Middle) (Suffix) (Caution: Do not provide both an individual and an entity name.) 1872 Prince Creek Road Street address ARTINC_NPC (Street number and name) Carbondale co 81623 (City) (State) (ZIP Code) Page 1 of 3 Rev. 02/28/2008 Malting address (leave blank if same as street address) (Street number and name or Post Office Box information) (City) CO (State) (The following statement is adopted by marking the box.) ❑✓ The person appointed as registered agent above has consented to being so appointed. 4. The true name and mailing address of the incorporator are Name (if an individual) OR (if an entity) Hamilton Mark (ZIP Code) (Last) (First) (Middle) (Suffix) (Caution: Do not provide both an individual and an entity name.) c/o Holland & Hart LLP Mailing address (Street number and name or Post Office Box information) 600 E. Main Street, Suite 104 Aspen CO 81611 (City') tat J (ZIP/Postal Code) Un tech States (Province if applicable) (Country) (If the folloiving statement applies, adopt the statement by marking the box and include an attachment) ❑ The corporation has one or more additional incorporators and the name and mailing address of each additional incorporator are stated in an attachment. 5. (If the following statement applies, adopt the statement by marking the box.) ❑✓ The nonprofit corporation will have voting members. 6. (The following statement is adopted by marking the box.) O Provisions regarding the distribution of assets on dissolution are included in an attachment. 7. (If the following statement applies, adopt the statement by marking the box and include an attachment) Q This document contains additional information as provided by law. 8. (Caution: Leave blank if the document does not have a delayed effective date. Stating a delayed effective date has significant legal consequences. Read instructions before entering a date.) (If the following statement applies, adopt the statement by entering a date and, if applicable, time using the required format) The delayed effective date and, if applicable, time of this document is/are (nim/dd/yyyy hour: minute am/pm) Notice: Causing this document to be delivered to the Secretary of State for filing shall constitute the affirmation or acknowledgment of each individual causing such delivery, under penalties of perjury, that the document is the individual's act and deed, or that the individual in good faith believes the document is the act and deed of the person on whose behalf the individual is causing the document to be delivered for filing, taken in conformity with the requirements of part 3 of article 90 of title 7, C.R.S., the constituent documents, and the organic statutes, and that the individual in good faith believes the facts stated in the document are true and the document complies with the requirements of that Part, the constituent documents, and the organic statutes. ARTINC NPC Page 2 of 3 Rev. 02/28/2008 This perjury notice applies to each individual who causes this document to be delivered to the Secretary of State, whether or not such individual is named in the document as one who has caused it to be delivered. 9. The true name and mailing address of the individual causing the document to be delivered for filing are Hamilton Mark (Last) (First) (Middle) (Suffix) c/o Holland & Hart LLP (Street number and name or Post Office Box information) 600 E. Main Street, Suite 104 Aspen CO 81611 (City) (Stale) (ZIP/Postal Code) United States (Province - if applicable) (Country) (lf the following statement applies, adopt the statement by marking the box and include an attachment.) ❑ This document contains the true name and mailing address of one or more additional individuals causing the document to be delivered for filing. Disclaimer: This form/cover sheet, and any related instructions, are not intended to provide legal, business or tax advice, and are furnished without representation or warranty. While this form/cover sheet is believed to satisfy minimum legal requirements as of its revision date, compliance with applicable law, as the same may be amended from time to time, remains the responsibility of the user of this form/cover sheet. Questions should be addressed to the user's legal, business or tax advisor(s). ARTINC_NPC Page 3 of 3 Rev. 02/28/2008 ARTICLES OF INCORPORATION OF JOHN NIESLANIK RANCH RURAL LAND DEVELOPMENT EXEMPTION HOMEOWNERS ASSOCIATION (a Colorado Nonprofit Corporation) The person listed below in Article XV, acting as incorporator of the John Nieslanik Ranch Rural Land Development Exemption Homeowners Association, a Colorado nonprofit corporation, (the "Corporation") under the Colorado Revised Statutes, Title 7, Articles 121-137, as amended from time to time (the "Colorado Nonprofit Corporation Act"), adopts the following Articles of Incorporation for such Corporation. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Declaration of Covenants, Easements, Conditions and Restrictions for the JOHN NIESLANIK RANCH RURAL LAND DEVELOPMENT EXEMPTION recorded in the Office of the Clerk and Recorder of Garfield County, Colorado, and any supplement or amendment thereto (the "Declaration"). All of the lands that become subject to said Declaration from time to time are hereinafter referred to as the "Development. ARTICLE I NAME The name of the corporation is JOHN NIESLANIK RANCH RURAL LAND DEVELOPMENT EXEMPTION HOMEOWNERS ASSOCIATION. ARTICLE II DURATION The period of its duration shall be perpetual. ARTICLE III PURPOSES The business, objects and purposes for which the Corporation is organized are for the acquisition, construction, management, maintenance and care of "association property" (as that term is used and defined in Section 528 of the Internal Revenue Code and its regulations), including, but not limited to, the following: - 1 - 1. To be and constitute the Association to which reference is made in the Declaration made, executed and recorded by Nieslanik Investments, LLC and Cecelia L. Nieslanik Bypass Trust, (hereinafter collectively referred to as the "Declarant") pursuant to the Colorado Nonprofit Corporation Act, and to perform all obligations and duties of the Corporation and to exercise all rights and powers of the Corporation described in said Declaration, as it may be amended from time to time. 2. To provide an entity for the furtherance of the interests of all of the Owners and Occupants in the Development, including the Declarant named in the Declaration, with the objective of establishing and maintaining the Development as a residential project of high quality and value and enhancing and protecting its value, desirability and attractiveness, and to promote the health, safety and welfare of the Owners and Occupants within the Development and any additions thereto as may hereafter be brought within the jurisdiction of this Corporation. ARTICLE IV POWERS In furtherance of its purposes, the Corporation shall have all of the powers conferred upon nonprofit corporations by the statutes and common law of the State of Colorado in effect from time to time, including all of the powers necessary or desirable to perform the obligations and duties and exercise the rights and powers of the Corporation under the Declaration. Such powers shall include, but shall not be limited to, the following: 1. The Corporation shall have all of the powers, authority and duties permitted pursuant to the Colorado Nonprofit Corporation Act and the Colorado Common Interest Ownership Act; 2. The Corporation shall have all of the powers, authority and duties necessary and proper to manage the business affairs of the Development, including without limitation those conferred upon it by the Declaration, as it may be amended from time to time; 3. Subject to applicable law, the Corporation shall have all of the powers, authority and duties necessary and proper to acquire, own, operate, improve, maintain, repair, replace, manage, lease, encumber and otherwise deal with the Common Areas, as defined in the Declaration. 4. The Corporation shall be prohibited from engaging in any regular business or activity of a kind ordinarily carried on for profit. -2- ARTICLE V BOARD OF DIRECTORS 1. Except where otherwise provided in the Declaration, the Bylaws, and the Colorado Nonprofit Corporation Act, the affairs of the Corporation shall be conducted, managed and governed by a Board of Directors. The duties, qualifications, number and term of members of the Board of Directors (the "Directors") and the manner of their election and removal shall be as set forth in the Bylaws. 2. The initial Board of Directors shall consist of four (4) members. The names and addresses of the persons who shall serve until the first election of Directors and until their successors are duly elected and qualified are as follows: Mark Nieslanik 1872 Prince Creek RD Carbondale, Colorado 81623 Marty Nieslanik 977 County Road 101 Carbondale, Colorado 81623 Matt Nieslanik 472 County Rd 153 Carbondale, Colorado 81623 Mike Nieslanik 757 County Road 101 Carbondale, Colorado 81623 ARTICLE VI PERIOD OF DECLARANT CONTROL 1. In the Declaration, Declarant has reserved the right to appoint and remove Directors and officers until the date which is sixty (60) days after conveyance of 100% of the Lots that may be created to Owners other than Declarant (the "Turnover Date"). The period of time from the adoption of these Articles of Incorporation until the Turnover Date is defined as the Period of Declarant Control. After termination of the Period of Declarant Control, Declarant, if still an Owner, will have all of the rights and duties given to Owners under the Declaration and will retain all of the rights belonging to Declarant under the Declaration other than those that expire by their terms upon expiration of the Period of Declarant Control. -3- 2. At any time prior to the Turnover Date, the Declarant may voluntarily surrender and relinquish the right to appoint and remove officers and members of the Board of Directors pursuant to a recorded statement of termination executed by Declarant. In such event, Declarant may require, for the duration of the Period of Declarant Control, that specified actions of the Corporation or the Board of Directors, as described in a recorded instrument executed by Declarant, be approved by Declarant before they become effective. As to such actions, Declarant may give its approval or disapproval in its sole discretion and option, and its disapproval shall invalidate any such action by the Board of Directors or the Corporation. 3. Not later than the Turnover Date, the Lot Owners (including Declarant) shall elect a Board of Directors of at least three (3) members, at least a majority of whom must be Owners other than Declarant or designated representatives of Owners other than Declarant, and the Board of Directors shall elect the officers, with such Board of Directors members and officers to take office upon election. 4. Within sixty (60) days after the Owners other than Declarant elect a majority of the Directors, Declarant shall deliver to the Association all property of the Association in the possession or control of Declarant. ARTICLE VII MEMBERS AND VOTING RIGHTS 1. There shall be one "Membership" in the Corporation for each Lot within the Development. The Person or Persons who constitute the Owner of a Lot shall automatically be the holder of the Membership appurtenant to that Lot, and shall collectively be the "Member" of the Corporation with respect to that Lot, and the Membership appurtenant to that Lot shall automatically pass with fee simple title to the Lot. Declarant shall hold a Membership in the Corporation for each Lot owned by Declarant. Membership in the Corporation shall not be assignable separate and apart from fee simple title to a Lot, and may not otherwise be separated from ownership of a Lot. 2. Each Lot in the Development shall have one (1) vote in the Corporation. Occupants of Lots shall not have voting rights. If title to a Lot is owned by more than one (1) Person, such persons shall collectively cast their vote. -4- ARTICLE VIII PROXY VOTING A Member shall be entitled to vote in person on any matters on which such Member is entitled to vote, and may vote on such matters by proxy in the manner set forth in the Bylaws. ARTICLE IX CUMULATIVE VOTING Cumulative voting by Members in the election of Directors shall not be permitted. ARTICLE X INITIAL REGIS'I'ERED OFFICE AND AGENT The address of the initial registered office of the Corporation shall be 1872 Prince Creek Road, Carbondale, Colorado 81623. The initial registered agent at such address shall be Mark Nieslanik. ARTICLE XI PRINCIPAL OFFICE The address of the principal office of the Corporation is 1872 Prince Creek Road, Carbondale, Colorado 81623. ARTICLE XII INUREMENT AND DISSOLUTION No part of the income or net earnings of the Corporation shall inure to the benefit of, or be distributable to, any Member, Director, or officer of the Corporation or to any other private individual, except that: (i) reasonable compensation may be paid for services rendered to or for the Corporation affecting one or more of its purposes; (ii) reimbursement may be made for any expenses incurred for the Corporation by any officer, Director, Member, agent or employee, or any other person or corporation, pursuant to and upon authorization of the Board of Directors; and (iii) rebates of excess membership dues, fees, or Assessments may be paid. -5- In the event of dissolution of the Corporation, the property and assets thereof remaining after providing for all obligations shall then be distributed pursuant to the Colorado Nonprofit Corporation Act at Article 134. ARTICLE XIII ELIMINATION OF CERTAIN LIABILITIES OF DIRECTORS There shall be no personal liability, either direct or indirect, of any Director of the Corporation to the Corporation or to its Members for monetary damages for any breach or breaches of fiduciary duty as a Director; except that this provision shall not eliminate the liability of a Director to the Corporation or to its Members for monetary damages for any breach, act, omission or transaction as to which the Colorado Nonprofit Corporation Act prohibits expressly the elimination of liability. This provision is in the Corporation's original Articles of Incorporation and thus is effective on the date of the Corporation's incorporation. This provision shall not limit the rights of Directors of the Corporation for indemnification or other assistance from the Corporation in accordance with applicable law. This provision shall not restrict or otherwise diminish the provisions of Colorado Revised Statutes, Section 13-21-115.7 (concerning no liability of directors except for wanton and willful acts or omissions), any amendment or successor provision to such Section, or any other law limiting or eliminating liabilities. Any repeal or modification of the foregoing provisions of this Article by the Members of the Corporation or any repeal or modification of the provision of the Colorado Nonprofit Corporation Act which permits the elimination of liability of directors by this Article shall not affect adversely any elimination of liability, right or protection of a Director of the Corporation with respect to any breach, act, omission, or transaction of such Director occurring prior to the time of such repeal or modification. ARTICLE XIV AMENDMENT OF ARTICLES; CONFLICTS 1. These Articles of Incorporation may be amended from time to time in the manner set forth in the Colorado Nonprofit Corporation Act, provided always that such amendments are consistent with the terms and provisions of the Declaration. 2. In the event of a conflict between the terms and provisions of these Articles and the terms and provisions of the Declaration, the terms and provisions of the Declaration shall govern and control. 3. In the event of a conflict between the terms and provisions of these Articles and the terms and provisions of the Bylaws adopted by the Board of Directors, the terms and provisions of these Articles shall govern and control. -6- ARTICLE XV INCORPORATOR The name and address of the incorporator is Mark E. Hamilton, Holland & Hart LLP, 600 E. Main Street, Suite 104, Aspen, Colorado 81611. ARTICLE XVI The name and address of the individual who causes this document to be delivered for filing, and to whom the Secretary of State may deliver notice if filing of this document is refused, is Mark E. Hamilton, 600 E. Main Street, Suite 104, Aspen, Colorado 81611. 4977150_2.DOC -7- DEDICATION AND EASEMENT GRANTS FOR PRIVATE ROADS AND EASEMENTS EXHIBIT H (JOHN NIESLANIK RANCH RURAL LAND DEVELOPMENT EXEMPTION) THIS DEDICATION AND EASEMENT GRANTS FOR PRIVATE ROADS AND EASEMENTS (the "Dedication") is made this day of December, 2010, by NIESLANIK INVESTMENTS, LLC and by CECELIA L. NIESLANIK BYPASS TRUST (collectively "Grantor"), to the JOHN NIESLANIK RANCH RURAL LAND DEVELOPMENT EXEMPTION HOMEOWNERS ASSOCIATION, a Colorado non-profit corporation ("Grantee"). RECITALS: A. Grantor owns the real property (the "Grantor Property") described and shown on the John Nieslanik Ranch Rural Lands Development Exemption Plat, recorded on December , 2010 under Reception No. Garfield County, Colorado (the "Exemption Plat"). B. The Exemption Plat and certain development conditions were approved by Grantee in accordance with Garfield County Board of County Commissioners Resolution No. 2010-81 recorded October 12, 2010 under Reception No. 792747 (the "Approval Resolution"). C. Grantor is required to dedicate and convey easement grants for private access, emergency access, utilities, O.W.S. (septic) for the benefit of Lot 3, and irrigation ditches to be constructed on, over, across and under portions of the Grantor Property. NOW, THEREFORE, for and in consideration of ten dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Grantor hereby sells and conveys to Grantee the non-exclusive private access, emergency access, utility, O.W.S. (septic) for the benefit of Lot 3, and irrigation ditch easements (collectively, the "Private Easements"), the dimensions of which are more particularly shown and described on the Exemption Plat. The foregoing dedications are made by special warranty; that is, Grantor warrants the title to the Private Easements against all persons claiming under Grantor, but subject to all restriction of record and also subject to the following provisions and reservations: a) All Private Easements are surface easements except for the utility easements, which are underground easements. b) The access easements shall be for ingress and egress from adjoining Garfield County public roads to Lots 1 through 6, as described, platted and shown on the Exemption Plat. 1 c) The O.W.S. (septic) easement shall be for installation, operation, maintenance and repair of an underground absorption field upon Lot 6 for the benefit of Lot 3. d) Grantor reserves the right to use all areas within the surface or subsurface of any Private Easement so long as such use does not unreasonably interfere with Grantee's and Grantee's members' use and enjoyment of the Private Easements. Existing or future underground utilities serving Lots 1 through 6 can and will exist under portions of the Private Easements areas, and Grantor expressly retains and reserves all right, title and interest in any existing or future underground utility lines and facilities, as well as the right, power and authority to convey ownership of such facilities to utility providers, and to grant non-exclusive easements to utility providers for the installation, maintenance and replacement of such facilities. e) Grantor reserves the right to jointly use the 40' Emergency Access and Utility Easement located on the Remainder Ranch Parcel at any and all times and Grantee's utilization of the 40' Emergency Access and Utility Easement across the Remainder Ranch Parcel shall be limited to the exclusive use by public emergency vehicles and utilities. Grantee shall have no other rights with respect to utilization of the 40' Emergency Access and Utility Easement across Lot 6 and Grantee is expressly prohibited from granting licenses, easements, access privileges or otherwise authorizing any third party to utilize the 40' Emergency Access and Utility Easement across Lot 6. IN WITNESS WHEREOF, Grantor has executed this Dedication on the day and year above first written. GRANTOR: NIESLANIK INVESTMENTS, LLC By: Manager STATE OF COUNTY OF ) )ss ) 2 The foregoing Dedication was acknowledged before me this day of December, 2010 by Mark Nieslanik as Manager on behalf of Nieslanik Investments, LLC. Witness my hand and official seal. My commission expires: Attest: Notary Public CECELIA L. NIESLANIK BYPASS TRUST By: Manager STATE OF ) )ss COUNTY OF ) The foregoing Easement Deed was acknowledged before me this day of December, 2010 by Mark Nieslanik on behalf of Cecelia L. Nieslanik Bypass Trust. Witness my hand and official seal. My commission expires: Notary Public 3 DEDICATION AND EASEMENT GRANTS FOR PRIVATE ROADS AND EASEMENTS (JOHN NIESLANIK RANCH RURAL LAND DEVELOPMENT EXEMPTION) THIS DEDICATION AND EASEMENT GRANTS FOR PRIVATE ROADS AND EASEMENTS (the "Dedication") is made this day of December, 2010, by NIESLANIK INVESTMENTS, LLC and by CECELIA L. NIESLANIK BYPASS TRUST (collectively "Grantor"), to the JOHN NIESLANIK RANCH RURAL LAND DEVELOPMENT EXEMPTION HOMEOWNERS ASSOCIATION, a Colorado non-profit corporation ("Grantee"). RECITALS: A. Grantor owns the real property (the "Grantor Property") described and shown on the John Nieslanik Ranch Rural Lands Development Exemption Plat, recorded on December , 2010 under Reception No. Garfield County, Colorado (the "Exemption Plat"). B. The Exemption Plat and certain development conditions were approved by Grantee in accordance with Garfield County Board of County Commissioners Resolution No. 2010-81 recorded October 12, 2010 under Reception No. 792747 (the "Approval Resolution"). C. Grantor is required to dedicate and convey easement grants for private access, emergency access, utilities, O.W.S. (septic) for the benefit of Lot 3, and irrigation ditches to be constructed on, over, across and under portions of the Grantor Property. NOW, THEREFORE, for and in consideration of ten dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Grantor hereby sells and conveys to Grantee the non-exclusive private access, emergency access, utility, O.W.S. (septic) for the benefit of Lot 3, and irrigation ditch easements (collectively, the "Private Easements"), the dimensions of which are more particularly shown and described on the Exemption Plat. The foregoing dedications are made by special warranty; that is, Grantor warrants the title to the Private Easements against all persons claiming under Grantor, but subject to all restriction of record and also subject to the following provisions and reservations: a) All Private Easements are surface easements except for the utility easements, which are underground easements. b) The access easements shall be for ingress and egress from adjoining Garfield County public roads to Lots 1 through 6, as described, platted and shown on the Exemption Plat. 1 c) The O.W.S. (septic) easement shall be for installation, operation, maintenance and repair of an underground absorption field upon Lot 6 for the benefit of Lot 3. d) Grantor reserves the right to use all areas within the surface or subsurface of any Private Easement so long as such use does not unreasonably interfere with Grantee's and Grantee's members' use and enjoyment of the Private Easements. Existing or future underground utilities serving Lots 1 through 6 can and will exist under portions of the Private Easements areas, and Grantor expressly retains and reserves all right, title and interest in any existing or future underground utility lines and facilities, as well as the right, power and authority to convey ownership of such facilities to utility providers, and to grant non-exclusive easements to utility providers for the installation, maintenance and replacement of such facilities. e) Grantor reserves the right to jointly use the 40' Emergency Access and Utility Easement located on the Remainder Ranch Parcel at any and all times and Grantee's utilization of the 40' Emergency Access and Utility Easement across the Remainder Ranch Parcel shall be limited to the exclusive use by public emergency vehicles and utilities. Grantee shall have no other rights with respect to utilization of the 40' Emergency Access and Utility Easement across Lot 6 and Grantee is expressly prohibited from granting licenses, easements, access privileges or otherwise authorizing any third party to utilize the 40' Emergency Access and Utility Easement across Lot 6. IN WITNESS WHEREOF, Grantor has executed this Dedication on the day and year above first written. GRANTOR: NIESLANIK INVESTMENTS, LLC By: Manager STATE OF ) )ss COUNTY OF ) 2 The foregoing Dedication was acknowledged before me this day of December, 2010 by Mark Nieslanik as Manager on behalf of Nieslanik Investments, LLC. Witness my hand and official seal. My commission expires: Notary Public Attest: CECELIA L. NIESLANIK BYPASS TRUST By: Manager STATE OF ) )ss COUNTY OF ) The foregoing Easement Deed was acknowledged before me this day of December, 2010 by Mark Nieslanik on behalf of Cecelia L. Nieslanik Bypass Trust. Witness my hand and official seal. My commission expires: Notary Public 3