HomeMy WebLinkAbout22 FMAP-0602-2022 20221216 2020-069315 Reciprocal Easement Agreeement for 82Recording requested by:
Qardini Planning Solutions
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When recorded return to:
Laurel Creek, LP
C/O PATRICK N. SMITH
505 Bath Street
Santa Barbara, CA 93101
(2020069315
iTommy Gong
San Luis Obispo - County Clerk -Recorder
11/25/2020 08:14 AM
Recorded at the request of:
PUBLIC
Titles: 3 Pages: 23
Fees: $$2$72,00
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Total: $272 000.x0 'YJ�'ry`y'Lp H
(Space Above Line for Recorder's Use)
RECIPROCAL EASEMENT AGREEMENT AND
DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
FOR PARCEL MAP SLO 19-0114 (FMAP0414-2020)
THIS RECIPROCAL EASEMENT AGREEMENT AND DECLARATION (this "Declaration"), dated for
reference purposes as of October 15, 2020, is made by LAUREL CREEK LP, a California limited partnership
(the "Declarant"), with reference to the following facts:
RECITALS:
A. Declarant owns that certain real property located at 1150 - 1160 Laurel Lane in the City
of San Luis Obispo, County of San Luis Obispo, State of California, which is more specifically described at
0 (the "Property") that Declarant is in the process of dividing into four (4) separate legal parcels (the
"Parcels) depicted as on Parcel Map No. SLO 19-0114 as filed for record on 11/a5/aDat) on in Book
` P, of Maps at Pages P)A through S 5 , inclusive, in the Official Records of the County of San
Luis Obispo, State of California, for the purpose of developing an integrated mixed use residential,
commercial and retail development on the Property (the "Project"). An Exhibit of configuration of Parcels
is attached as Exhibit B.
B. Declarant desires to operate the Project under a general plan and scheme of
improvement for the benefit of the Property and the future owners and occupants thereof, to impose
certain covenants and agreements as part of such general plan for the beneficial use of'the Parcels
comprising the Project, and to create certain reciprocal easements in, to, over, under and across the
Parcels as provided herein.
NOW, THEREFORE, IN CONSIDERATION of the foregoing and the mutual covenants and
agreements contained herein, Declarant declares as follows:
ARTICLE 1
DEFINITIONS
Unless the context in which used requires otherwise, when used in this Declaration the following
terms shall have the meanings set forth below, whether or not such terms appear in the upper case:
1.1 ACCESS AND PARKING. Collectively, (a) unimpeded ingress and egress by the Occupants of
the Development, their respective Permittees and their respective vehicles, including delivery, service,
emergency, fire protection and refuse disposal vehicles, to and from (i) any portion of the Common Areas
and the Building Areas in the Development, and (ii) between each of the Parcels comprising the
Development, and (iii) the public streets adjacent to the Development, and (b) the parking of all such
vehicles for purposes related to the occupancy, use, -repair and maintenance of the Development or the
delivery of goods or services thereto.
1.2 ADVERSE EFFECT. A consequence of an action, conduct or a change in condition that
causes (a) a material reduction in (i) the visibility of, or in the ingress and egress to and from a Parcel in
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the Development and the improvements situated thereon, or (ii) the size and configuration of the Building
Area or the visibility of the'signage thereon, or (b) an increase in the costs of operating, repairing and
maintaining the improvements situated on and the business conducted from a Parcel, or. (c) that
otherwise causes an unreasonable interference with the quiet use and enjoyment of, or a diminution in
the value of such Parcel or the improvements situated thereon.
1.3 APPLICABLE LAw. All (a) zoning, building and other laws, ordinances, rules, and regulations
now or hereafter applicable to the Development and business being conducted on, in or from the
Development, and (b) all building permits or any conditions, easements, rights -of -way, covenants,
restrictions of record or any recorded or unrecorded agreement with any Governmental Authority
affecting or concerning the Development.
1.4 BUILDING. An enclosed structure, including any canopies, supports, loading docks, truck
ramps and other outward extensions appurtenant thereto, intended for occupancy by the residents or
occurring the conduct of residential, commercial, professional retail, or other activity.
1.5 BUILDING AREA. That portion of any Parcel in the Development occupied by any Building
and any Exclusive Use Improvements appurtenant or immediately adjacent to such Building.
1.6 COMMON AREA. Collectively, the improved and unimproved portions of each of the
Parcels that are outside of the exterior perimeter of the Buildings and the Exclusive Use Improvements
appurtenant thereto from time to time located on such Parcels, and (ii) the Common Area Improvements
situated thereon.
1.7 COMMON AREA COSTS. The total costs and expense of managing, operating, repairing,
maintaining and replacing the Common Area and any Common Area Improvements in accordance with
the provisions of this Declaration.
1.8 COMMON AREA IMPROVEMENTS. The improvements situated on or beneath the portion
of a Parcel designated as Common Area, including parking areas, driveways, tire stops, curbs and curb
cuts, internal access roads, walkways, sidewalks, light standards, Drainage Facilities, directories,
directional and traffic signage and landscaped areas and landscaping (including planting boxes, edgers,
decorative walls, sprinklers and valves).
1.9 COMMON AREASERVICES. The installation, maintenance, repair, replacement and operation
of Common Area Improvements, public utilities and the Utility Facilities serving the Buildings and other
improvements in the Development.
1.10 CONSTANT DOLLARS. An amount that, at the time of computation, is the equivalent of the
dollar amount specified in this Declaration after taking into account any increase or decrease in the value
of the dollar for each year during the term of this Declaration as determined by the increase or decrease
in the Implicit Price Deflator of the Gross National Product of the United States, published by the United
States Bureau of Economic Analysis, Base Year 2012 = 100 or any successor index thereto.
1.11 DECLARANT. LAUREL CREEK LP, a California limited partnership.
1.12 DECLARATION. This Reciprocal Easement Agreement and Declaration of Covenants,
conditions and Restrictions for Parcel Map SLO 19-0114 (FMAP0414-2020).
1.13 DEVELOPMENT. The improvements constructed on the Parcels as part of the Project.
1.14 DRAINAGE FACILITIES. All inlets, pipelines, conduits, drainage basins, sanitary and storm
drainage sewers and systems, detention and retention facilities, pumping facilities and related facilities,
including manhole and vaults, meters, valves and any other apparatus or improvement intended to permit
or facilitate water drainage.
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1.15 EXCLUSIVE USE IMPROVEMENTS. Collectively, those improvements that are both (a)
appurtenant or immediately adjacent to a Building and situated in whole or in part in a Building Area in
the Development, and (b) are intended forthe exclusive use and benefit of the Occupants of such Building
and their Permittees, such as (i) sidewalks and patios, (ii) landscape areas, (iii) loading docks and ramps
and areas for trash enclosures, storage, the delivery or shipping of goods merchandise or other personal
property, (iv) parking areas beneath a Building if designated for the exclusive use of the Occupants of such
Building and their Permittees, and (v) the drive thru facilities of a drive-thru retail vendor.
1.16 MAJORITY OWNERSHIP INTEREST. Ownership of more than fifty percent (50%) of the fee
ownership interest of those Parcels in the Development on which more than fifty percent (50%) of the
Building Area of the Development is situated.
1.17 MORTGAGEE. Any mortgagee under a mortgage and any beneficiary under a deed of trust
which is a first priority lien on a Parcel in the Development.
1.18 OCCUPANT. Any Person who from time to time is entitled to the use and occupancy of
any portion of a Parcel either as an Owner pursuant to any lease, sublease, rental agreement, license,
concession or similar agreement with an Owner.
1.19 OPERATOR: The Declarant or the person appointed by Declarant pursuant to Article 5 of
this Declaration to be responsible for the management, operation and repair and maintenance of the
Common Area.
1.20 OWNER. The record holder of fee simple title to any portion of a Parcel
1.21 PARCEL(S). Each of the four parcels comprising the Property shown on the Parcel Map.
1.22 PARCEL MAP: The final parcel map described in Recital A being recorded in the Official
Records of the County of San Luis Obispo concurrently with recordation of this Declaration.
1.23 PARKING AREAS. Those portions of the Common Area intended for use as Parking Spaces
and the drive aisles providing ingress to and egress from the Parking Spaces.
1.24. PARKING SPACES. The paved and striped stalls situated on Common Area intended forthe
parking of vehicles.
1.25 PERMITTEES. Any Occupant of a Parcel and the respective employees, agents, contractors,
customers, invitees and licensees of any such Occupant.
1.26 PERSON. An individual, partnership, firm, association, corporation, limited liability
company, trust, governmental agency, administrative tribunal, or any other form of business or legal
entity, whether or not constituting a legal person under state law.
1.27 PROJECT. The development of an integrated mixed use commercial, retail and residential
I center on the Property.
1.28 PROPERTY. The real property and the improvements situated thereon more particularly
described at Exhibit A.
1.29 PROPORTIONATE SHARE. The share of the Common Area Expenses payable by each Owner
of a Parcel. Subject to adjustment as provided by Section 6.3, the proportionate share allocable to each
Parcel shall be as follows:
Parcel 50% Parcel 0%
Parcel 20% Parcel 30%
1.30 UTILITY FACILITIES. Collectively, any conduits, water and pipelines, cables, meters, control
panels, valves, hydrants, sprinkler controls, Drainage Facilities or other installations or improvements
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comprising a part of the drainage, waste disposal, power, water electrical, lighting, conditioning, security,
fire protection, communications and other systems serving the Buildings and other improvements in the
Development.
1.31 VEHICLES. Motor vehicles, including motorcycles, and bicycles.
ARTICLE 2
RECIPROCAL EASEMENTS
2.1 CREATION OF EASEMENTS. Subject to any express conditions, limitations or reservations
contained herein, Declarant hereby declares that the Parcels shall be benefited and burdened by (a) the
easements shown on the Parcel Map for the Development and (b) the following easements which are
hereby imposed upon each of the Parcels and any parcels into which they may hereafter be subdivided.
A. ACCESS AND PARKING. An easement for Access and Parking over and across the
parking and driveway areas of the Common Area within the Parcels as the same may from time to time
be constructed and maintained for such use.
B. UTILITY EASEMENTS. An easement in, to, over, under and across the Common
Area of the respective Parcels for the installation, operation, maintenance, repair, relocation, and removal
of Utility Facilities serving the other Parcels in the Development.
(1) All such Utility Facilities must be installed underground unless not
reasonably possible. Utility Facilities which must be located above the surface of the Common Area, if
any (i) shall be placed so as not to interfere with, restrict, or impede other uses of the Common Area or
Building Areas, and (ii) no Utility Facility which must be located above the surface of the Common Area
shall be placed upon any Parcel without the prior written consent of the Owner and Occupant of such
Parcel.
(2) Unless the consent of the Owner and Occupant of the Parcel on which
such utility work is to be done is first obtained, such entry shall occur only during non -peak business hours
and after reasonable written notice to the Owner and Occupant of the Parcel being entered of not less
than three (3) business days except that in the case of an emergency such entry may occur without notice
and without regard to business hours.
(3) Any Owner exercising the rights granted in this Section shall at its own
cost restore any Parcel entered pursuant hereto to the same condition as existed prior to such entry.
C. SURFACE WATER EASEMENTS. An easement to discharge surface storm drainage
and/or runoff from each Parcel in the development over, upon, under and across the Common Areas of
each other Parcel in the Development.
D. INSTALLATION AND MAINTENANCE. An easement in, to, over, under and across the
Common Area of the respective Parcels for the installation, operation, maintenance repair and
replacement of the Common Area Improvements, including landscaping and Drainage Facilities, and such
incidental easements on, over and across the portions of each Parcel immediately adjacent to such
Common Area as are necessary for such purposes.
2.2 TERM OF EASEMENTS. The term of such easements or common use rights granted herein
shall be perpetual, appurtenant to each Parcel in the Development, and shall survive the termination of
this Declaration.
2.3 USE OF EASEMENTS. The easements created by or pursuant to this Declaration shall be
used and enjoyed by each Occupant and its Permittees in such a manner so as not to unreasonably
interfere with, obstruct or delay the conduct and operations of the business of any other Owner or its
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Permittees at any time conducted on its Parcel, including, without limitation, public access to and from
said business, and the receipt or delivery of merchandise in connection therewith.
2.4 RELOCATION OF EASEMENTS. The Owner of Parcel on which any Common Utility Facilities
have been installed shall have the right at its own cost and expense to move or relocate such Facilities,
including the transformer situated on Parcel A, to such alternative location on its Parcel as such Owner
shall designate provided that:
A. Such Owner gives not less than thirty (30) days prior notice to the Owner of each
dominant tenement serviced by said Common Utility Facilities of the proposed relocation and the new
location to which they will be moved.
B. The proposed relocation (1) does not (a) interfere with the continuing access to
and use of such Facility by any user entitled to the use thereof, or (b) increase the cost of any other users'
utility service or unreasonably interfere with the conduct or operation of its business or cause any damage
to any other party's Parcel, and (2) is not prohibited by any agreements or recorded covenants to which
such Owner is a party, or by which such Owner or the Parcel are bound
ARTICLE 3
USE AND OPERATION OF DEVELOPMENT
3.1 UNIFORM PLAN. Declarant intends by this Declaration to create a uniform plan for the
operation of the Development. Any development, construction, remodeling, reconstruction, alteration
or addition of, or to, any Building or other improvements in the Development shall conform to this
Declaration.
3.2 BUILDINGS AND IMPROVEMENTS. Buildings In the Development shall be subject to the
following:
A. GENERAL CONSTRUCTION CRITERIA. No new Buildings or Exclusive Use
Improvements shall be constructed in the Development, and no changes shall be made to the size or
configuration of any such Building or Exclusive Use Improvement, orthe Building Area situated on a Parcel
in the Development, without the approval of Declarant orthe Operator with respect to elevations, height,
canopy, design and dimensions, which approval shall not be unreasonably withheld or delayed.
(1) An Owner proposing to commence new construction on a Parcel that
requires the approval of the Operator shall submit the plans and drawings therefor to the Operator not
less than thirty (30) days prior to the submission of such plans and specifications to the proper regulatory
agency for a land use or building permit therefor. The failure of the Operator to respond in writing to any
written request for such approval within thirty (30) days of its receipt of a request thereforshall constitute
an unqualified and irrevocable approval of the plans and drawings so submitted.
(2) All structures and all Common Area Improvements shall be designed to
be architecturally and aesthetically compatible with the existing structures and Common Area
Improvements and shall be constructed with materials of a quality equal or superior to the materials used
for the construction of existing structures and Common Area Improvements in the Development.
(3) All such construction shall be performed in accordance with the plans and
specifications therefore approved by the Declarant or the Operator and by Government Authorities
having jurisdiction over the Development and, once commenced, shall promptly be completed in a good
and workmanlike manner that minimizes to the extent reasonably possible interference with the other
businesses being conducted in the Development.
3.3 RELOCATION OF BUILDING AREAS. The Owner of a Parcel, with the prior written consent
of the Operator, may change the location or configuration any Building Area situated on a Parcel provided
that (1) access between Parcels and the Parking Areas is not materially and adversely affected, (2) the
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visibility of any existing building on any Parcel where the building area is not being changed is not
materially and adversely affected, and/or (3) such change is otherwise not precluded by another provision
of this Declaration.
3.4 SIGNS. All signs installed on any portion of the Project by any Occupant or Owner shall
comply with all Applicable Law. No Owner, Occupant, or other Person shall be entitled to install any
signage on any portion of the Development not owned or occupied by them/it without the written
permission of the Operator and any Owner of the Parcel where said signage is to be installed or
maintained.
3.5 OPERATION AND MAINTENANCE OF BUILDINGS AND EXCLUSIVE USE AREAS. The Owner of a Parcel
shall, at its own costs and expense:
A. Keep its Building Area and Exclusive Use Improvements in a lean and neat
condition, free of litter, debris and graffiti, and store all trash and refuse in proper disposal containers.
B. Maintain any Building situated thereon and any Exclusive Use Improvements
appurtenant thereto, to the same standard established by this Declaration for the maintenance of the
Common Area and to promptly restore, repair or rebuild any damaged or destroyed Building or Exclusive
Area Improvement after the occurrence of any damage or destruction thereto when and as provided by
Article 10 of this Declaration.
3.6 HAZARDOUS MATERIALS. No Hazardous Material shall be brought upon, kept, used,
generated or stored in or around any Parcel in the Development except in compliance with Applicable
Law, and then only to the extent that such Hazardous Material is necessary in the ordinary course of
business conducted on such Parcel. Each Owner shall promptly take all actions at its sole expense as are
necessary to correct a violation of this condition by such Owner or its Occupants, and shall indemnify,
defend, protect and hold each other Owner and Occupant and their respective successors and assigns
from and against any Claims and Damages arising out of such breach or the existence of such Hazardous
Material. The foregoing obligations shall survive the expiration of this Declaration.
3.7 COMPLIANCE WITH REGULATORY REQUIREMENTS. Each Owner shall keep any Building
situated on such Owner's Parcel and other Exclusive Use Improvements appurtenant thereto in
compliance with all Applicable Law, including the Americans with Disabilities Act.
ARTICLE 4
USE OF COMMON AREA
4.1 USE OF COMMON AREA. The Common Area shall be used only for Access and Parking and
for Common Area Services as those terms are defined in this Declaration and for no other purposes
without the prior written consent of the Operator. Notwithstanding the foregoing, those portions of the
Common Area immediately adjacent to the Building Area on a Parcel may be used for the following
purposes:
A. For temporary access for the repair, maintenance, remodeling and replacement
of Buildings and Exclusive Use Improvement, the temporary storage of construction materials and
equipment and the temporary erection of ladders, scaffolding and storefront barricades forsuch purposes
provided that such work construction, remodeling or repair is diligently performed and all such materials
and apparatus are promptly removed after such work is completed.
B. Subject To first obtaining the approval of the Operator, which may be given or
withheld in the Operator's sole discretion unless such approval is required to enable an Occupant to
comply with Applicable Law,. to install and maintain (1) mailboxes, public telephones, benches and similar
facilities for the comfort and convenience of an Occupant's Permittees, and (2) designated loading and
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unloading areas including ramps, docks and similar facilities, trash, refuse and garbage container storage
areas and other incidental and related facilities
4.2 UMITATIONSON USE. Use of the Common Area shall be subject to the following limitations:
A. BARRIERS. No walls, fences or barriers of any kind shall be constructed or erected
in the Common Area, or any portion thereof, which shall prevent or impair the use and exercise of any of
the easements granted herein, or the free access and movement of pedestrian and vehicular traffic
between the Parcels, except that the Operator or an Owner may install such fences or barriers as may be
necessary to protect members of the public from construction or excavation activities or other hazards
posing a risk to health or safety provided that the Owner installing such fence or barrier promptly at its
awn cost and expense removes such fence or barrier and repairs any damage caused by its installation or
removal when it is no longer needed. In no event shall any fencing remain erected for a period
exceeding six (6) months without the prior written consent of the Declarant or Operator.
B. DRIVE AISLES. Any change to the drive aisles in the Development shall require
prior written approval of each Owner of a Parcel in the Development.
C. CHANGES IN PARKING OR OTHER COMMON AREA IMPROVEMENTS. No changes to
the Common Area Improvements, the number of parking spaces or the configuration of the Common
Area, shall be made without'the prior written consent of the Operator, which consent shall not be
unreasonably withheld or delayed unless the proposed change would cause a reduction of the ratio of the
parking spaces available for other parcels below the minimum number required by City of San Luis
Obispofor the Development.
(1) Any request by an Occupant for a change in the Common Area
Improvements shall be submitted to the Operator in writing accompanied by appropriate plans, drawings
and specifications illustrating the changes proposed to be made.
(2) The failure of the Operator to respond in writing to any written request
for such approval within thirty (30) days of its receipt shall constitute an unqualified and irrevocable
approval of the plans and drawings so submitted.
(3) Any such alterations that have been so approved shall be made in
accordance with plans and drawings and specifications submitted to and approved by the Operator.
D. FEES AND CHARGES. No charge, fee, toll, levy or expense shall ever be required of
or made or assessed on any Occupant of the Development or their respective Permittees for their use of
the Common Area other than the pro rata charges as set forth elsewhere in this Declaration.
Nothing herein shall be construed to limit the right of an Owner to require its tenants or lessees to pay
their Proportionate Share of the Common Area Maintenance Costs.
E. PARKING RULES ANDREsTRlcnoNS. Parking on each Parcel and in the Common Areas
shall be subject to the following restrictions and covenants:
(1) Parking on or in common access areas, including all drive aisles and
driveways, is prohibited
(2) Any Owner or Occupant may avail itself of the vehicle -removing authority
granted private property owners in Section 22658 of the California Vehicle Code when any vehicle is
parked in the common -access driveway so as to interfere with entry or access to a parcel it serves.
(3) Owner(s) shall jointly and individually reimburse the City for all costs
connected with the removal of vehicles from the common access portions, and will reimburse the Cityfor,
and hold the City harmless from, all final judgments against the city for damages or other liability arising
from the enforcement of the aforesaid prohibition against parking.
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(4) Owner(s) understand that the City cannot regulate vehicle usage or
hazards upon said common access driveway and shall jointly and individually defend and hold the City
harmless from all claims for damages or liability arising from the alleged failure of the City to regulate
vehicles or to provide protection from hazards upon said driveway.
F. RIGHT TO DESIGNATE EMPLOYEE PARKING. Notwithstanding any other provision of this
Declaration
(1) Declarant or the Operator shall have the right from time to time to
designate one or more areas in the Development for Employee Parking, or to prohibit employee parking
within the Development, provided that such right shall be exercised reasonably and in such manner as
not to discriminate against any Occupant of a Parcel in the Development or materially interfere with an
Owner's parking requirements within its Parcel.
(2) Each Occupant in the Development shall (1) require its employees to park
in any Parking Area specifically designated for employee parking, or to park in parking facilities other than
those in the Development, and (2) if so requested by Operator, shall (a) provide to Operator, from time
to time, a current list of the names and vehicle license numbers of its employees, and (b) inform its
employees that their vehicles are subject to towing if they fail to park in designated employee parking
areas.
ARTICLE 5
MANAGEMENT AND OPERATION OF COMMON AREA
5.1 DESIGNATION OF OPERATOR. The management, operation and repair and maintenance of
the Common Area shall be under the direction and control of the Operator.
A. INITIAL OPERATOR. For as long as Declarant owns a Majority Ownership Interest
in the Development, the Operator shall be the Declarant or a person designated bythe Declarant pursuant
to Section 5.1.0 below.
B. RESIGNATION AND REMOVAL OF OPERATOR. Declarant and any successor Operator
shall have the right to resign as Operator at any time after the recordation of this Declaration by giving
each other Owner not less than sixty (60) days prior written notice of such resignation, and any Operator
may be removed upon the vote of a Majority of the Ownership Interest in the Development. At such time
as an Operator ceases to hold such position, the Operator shall cease to have any liability or responsibility
for any acts, events or circumstances occurring subsequent to, and not as a result of its performance or
non-performance of its duties or obligations while the Operator.
C. REPLACEMENT OF OPERATOR. The Declarant may at any time, and upon the
resignation or removal of the Operator by the Owners of a Majority Ownership Interest in the
Development may, either appoint an Owner to be the Operator or may engage a professional property
management firm to assume the duties and responsibilities of the Operator.
(1) If the Owners cannot agree on a new Operator, any Owner may petition
the Superior Court of San Luis Obispo County to appoint a new Operator for them. The cost of any such
petition shall be borne in equal amounts by each Owner.
(2) If at any time there is no designated Operator, each Owner shall maintain
or cause the Common Area on its Parcel to be maintained in the manner provided by Section 5.3.6 of this
Declaration.
5.2 COMPENSATION OF OPERATOR. Neither Declarant nor any other Owner acting as the
Operator shall be entitled compensation for its services in such capacity but any management fees paid
to a professional or third party property Operator and/or management firm pursuant to Section 5.3.A
below shall be a Common Area Cost notwithstanding that they are paid to an affiliate of an Owner or that
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an Owner participates in or benefits from such fees by reason of his or her interest in such property
management firm.
5.3 AUTHORITY OF OPERATOR. The Operator has full power and authority to operate, control,
manage and maintain the Common Area of the Development and to enact and enforce rules and
regulations for the use and operation of said Common Area, including employee parking, subject to the
reasonable approval of Owners. Any rules or regulations, and any amendments thereto, proposed to be
promulgated by the Operator shall be submitted to the Owners for approval prior to the proposed
effective date of such rules and regulations.
A. DELEGATION OF AUTHORITY. The Operator may engage an affiliate or an
independent property management firm to perform some or all of the obligations of the Operator
provided that the contract with any such affiliate or an independent property management firm (a) can
be cancelled with or without cause on not more than thirty (30) days prior written notice, and (b) provides
for compensation that is (1) at a rate that does not exceed competitive rates for comparable services in
the City of San Luis Obispo, and (2) is calculated without taking into. account amounts paid for taxes,
insurance or capital expenditures that are not ordinary and recurring repair and maintenance costs.
B. DUTIES AND OBLIGATIONS OF OPERATOR. The Operator shall operate and maintain
the Common Area of the Development, or cause the Common Area to be operated and maintained in a
safe and secure manner and in a condition consistent with the standards for first class Developments. The
duties and responsibilities of the Manger include, but are not limited to the following:
(1) Paved Areas. Repairing, maintaining and/or replacing all asphalt paved
surfaces and all sidewalks, walkways and curbs comprising part of the of the Common Area, excluding
surfaces of Exclusive Use Improvements, in order to maintain such surfaces in a smooth and evenly
covered condition, using construction and surfacing materials of a quality equal or superiorto the original
construction and surfacing materials.
(2) Signs and Markers. Maintaining, repairing, restriping and replacing when
necessary all traffic directional signals, markers and parking lines and installing repairing, replacing and
repainting appropriate directional signs, markers, and parking lot guard arms.
(3) Utilities. Maintaining, removing, replacing, cleaning and repairing
Common Utility Facilities, but Operator shall not be responsible in any manner for any Utility Facilities
that only serve or benefit an individual Parcel and not the Common Area, no matter where located. Such
utilities shall be maintained by the Owner or Occupant benefited thereby.
(4) Common Area Lighting. Operating, repairing, cleaning and replacing
Common Area lighting facilities or improvements and providing power to all Common Area lighting and
signage.
(5) Landscaped Areas. Cleaning and maintaining or causing to be cleaned
and maintained all landscaped areas initially installed by any Owners or Occupant, including (1) pruning,
fertilizing, weeding and replacing shrubs and other landscaping, and (2) installing maintaining and
replacing any Common Area landscape meters, water lines and automatic sprinkler systems to serve all
landscaped areas.
(6) Refuse, Debris and Effects of Inclement Weather. Providing janitorial
services, removing all paper, debris, filth and refuse, and cleaning and sweeping to keep the Common
Area in a clean and orderly condition, free of graffiti, ice, snow, mud and sand.
(7) Obstructions. Keeping the Common Area free from obstructions not
required or permitted under this Declaration.
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(8) Misuse. Controlling loitering, vandalism, malicious mischief and
unauthorized use of the Common Area.
(9) Risk Management. Assuring the continuing existence of the insurance
required by Article 9 of this Declaration and engaging such patrols, guards or other security personnel as
a Majority of the Owners of the Development determine to be necessary or appropriate to provide
security for the Development.
(10) Compliance with Regulatory Requirements. Keeping the Common Areas
in compliance with all Applicable Law, including the Americans with Disabilities Act.
5.4 CERTAIN RIGHTS OF OPERATOR. The Operator may, in its reasonable discretion:
A. SENIOR LIENS. Pay or cure any delinquent real property taxes, assessments, or
any other lien senior to the lien to the extent necessary to protect the use of the Common Area.
B. CLOSURE OF COMMON AREA. Temporarily close all or any portion of the Common
Area to extent the Operator's counsel believe closure to be legally necessary to prevent a dedication
thereof or the accrual of any rights of any person or the public therein, or to enable Operator to perform
its maintenance and other duties hereunder provided Operator uses commercially reasonable efforts to
minimize the disruption of such closures on the businesses located in the Development.
ARTICLE 6
COMMON AREA EXPENSES
6.1 PAYMENT OF ALLOCABLE SHARE. Each Owner shall pay on or before the first day of each
month 1/12th of its Allocable Share of the amount of the annual budget for the common area
maintenance costs allocable to such Owners' Parcel for such year. Interest shall accrue on any amount
not paid within ten (10) days of the date on which first due at the rate of ten percent (10%) per annum
until paid.
6.2 COMPUTATION OF ALLOCABLE SHARE. Subject to the computations required by the
provisions of Section 6.4 below, the Allocable Share of the Common Area Costs for each Parcel in the
Development shall be equal to each Parcel's Proportionate Share as set forth in Section 1.29 pf this
Declaration.
6.3 ADJUSTMENTS DUE TO CHANGES. Should the percentage of the Building Area on any Parcel
be determined to be greater than the percentage shown in Section 1.29 of this Declaration, then (a)
appropriate adjustments will be made to the designated square feet of the Building Area for that Parcel
and the total Building Area in the Development,'(b) the Proportionate Share of each Parcel shall be
adjusted accordingly, and (c) such adjustment shall be reflected in an amendment to this Declaration.
6.4 RECONCILIATION OF ANNUAL COSTS. The Operator shall, within one hundred twenty (120)
days after the end of each calendar year, submit to each Owner a statement setting forth (a) an
itemization of all Common Area Maintenance Costs incurred by Operator for the preceding year, and (b)
the total amount of costs of Common Area Maintenance Costs paid by such Owner during such year, and
(c) the amount of any credits owing to or balance due from such Owner.
A. If the Proportionate Share of costs of the Common Area Maintenance Costs paid
by an Owner for the year to which the statement applies is less than that shown due by the statement,
that Owner shall, within thirty (30) days after the date of mailing the statement, pay to Operator the
difference as shown on such statement.
B. If the Proportionate Share of costs of the Common Area Maintenance Costs paid
by an Owner for the preceding year exceeds the amount shown to be due by the reconciliation statement,
Operator shall, at Operator's option, either credit the excess to the Common Area Maintenance Costs next
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DOC #2020069315 Page 11 of 23
becoming due from such Owner or pay the excess amount to such Owner concurrently with the delivery
of such statement.
6.5 EMERGENCY EXPENSES. If Operator incurs costs and expenses for Common Area
Maintenance in an emergency, Operator may submit to the Owners a statement setting forth an
itemization of such emergency costs and expense, and each Owner shall pay to Operator such Owner's
Proportionate Share of such emergency costs and expenses within fifteen (15) days of receipt of such a
statement.
6.6 BOOKS AND RECORDS. Operator shall keep complete and accurate books and records of
each and every item of cost or expense paid or incurred for the operation and maintenance of the
Common Area under this Declaration for a period of at least three (3) years from the end of the calendar
year to which they apply. Operator shall make such books and records available at all times during normal
business hours for inspection, review, and/or copying by each Owner and its designated representatives.
6.7 AUDIT RIGHTS. Each Owner shall be entitled to cause such books and records to be
audited at the cost and expense of such Owner, but no such audit may be conducted more than any
consecutive twelve (12) month period or more than twenty four (24) months after the end of a calendar
year. If an audit discloses an overpayment of five percent (5%) or more by an Owner, such Owner shall
be entitled to a credit toward the next succeeding installment of such Owner's share of the Common Area
expenses for the reasonable actual out-of-pocket costs of the audit. Operator shall promptly repay the
actual amount of any overpayment and/or the Owners shall promptly make such payments as may be
necessary to reflect the correct Proportionate Share of each Owner based on such audit.
ARTICLE 7
DISCLOSURE OF CERTAIN DEVELOPMENT REQUIREMENTS
A separate Notice of Requirements will be recorded simultaneously with the recordation of this
Declaration and the final Parcel Map. The restrictions, conditions, and standards set forth in such Notice
apply to future development of the Parcels comprising Development. It is the responsibility of prospective
buyers and the Owners of the individual Parcels to read the information contained in such Notice, which
sets forth, inert olio, the following requirements for the future development of the Parcels:
7.1 PARK IN -LIEU FEES. Park in -lieu fees, based on the rate in effect for subdivided parcels at
the time of payment, shall be paid for any future residential units constructed on the Parcels..
7.2 FLAG LOTS. Parcels 1 and 4 are designated as a "sensitive sites." Development of these
Parcels shall require architectural review in accordance with Section 2.48 of the City Municipal Code prior
to the submission of a building permit application..
7.3 SEPARATE UTILITIES. Unless otherwise allowed for deferral by the Community Development
Director, each Parcel shall be served with separate utilities. Wire utilities to new/future structures shall
be underground.
7.4 ACCESS To PARCELS 2 AND 3. Unless otherwise approved by the Public Works Department,
future access to Parcels 2 and 3 shall be through the common access easements across Parcels 1 and 4
rather than by direct access from Laurel Lane. Access rights shall be dedicated to the City along Laurel
Lane except at approved driveway locations shown on the Parcel Map..
7.5 SEPARATE WATER METERS. Separate water meters shall be provided for each new parcel in
an area accessible by the City.
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DOC #2020069315 Page 12 of 23
ARTICLE 8
TAXES AND ASSESSMENTS
8.1 OBLIGATION OF OWNERS. Each Owner shall pay or shall cause to be paid prior to
delinquency all real estate taxes and assessments which may be levied or assessed against such Owner's
Parcel and the improvements situated thereon, including any Common Area improvements.
8.2 RIGHT TO CONTEST. An Owner who believes that any real estate tax or assessment levied
or assessed against such Owner's Parcel is excessive or illegal shall have the right at its own cost and
expense to contest the same by appropriate proceedings. Nothing contained in this Section 8.2 shall
require any such Owner to pay any such contested real estate tax or assessment as long as (a) no other
Owner's Parcel is or may be adversely affected by the contesting Owner's failure to pay. The Owner of a
Parcel that is or may be adversely affected by a contesting Owner's failure to pay contested taxes or
assessments shall have the right to pay the contested amounts and shall have a lien on the Parcel for
which the contested amounts were paid. Any such lien shall be junior and subordinate to the bona fide
lien or charge of any Mortgagee on the Parcel for which such contested amounts were paid.
8.3 ASSESSMENT ON ENTIRE DEVELOPMENT. Any assessment for public improvements levied
againstthe entire Development shall be paid bythe Operator on behalf of all the Owners, and each Owner
shall reimburse its Proportionate Share of the amount so paid except that any such assessment that
benefits less than all the Parcels in the Development shall be borne solely by the Owners of the benefitted
Parcels.
ARTICLE 9
INSURANCE AND INDEMNIFICATION
9.1 LIABILITY INSURANCE. Each Owner, at its sole cost and expense shall maintain in full force
and effect a policy of Commercial General Liability Insurance insuring against liability for bodily injury or
death to persons, property damage and personal injury with a comprehensive single limit of liability not
less than $2,000,000.00 in Constant Dollars as defined in Section 1.10.
A. All such insurance (1) shall be primary and non-contributory; (2) shall provide for
severability of interests; (3) shall provide that an act or omission of one of the named insureds shall not
reduce or avoid coverage to any additional insured; (4) shall afford coverage for all claims based on acts,
omissions, injury or damage which occurred or arose (or the cost of which occurred or arose) in whole or
in part during the policy period; (5) be issued by an insurance company licensed to do business in the State
of California and having a rating in the latest edition of Best's Insurance Guide of not less than A VII; and
(6) shall name each other Owner and any Operator who is not an Owner as an additional insured.
B. The Operator, at its option may also carry such additional CGL Insurance and
casualty insurance for the Common Area in such amount the Operator determines to be appropriate, but
in no more than the policy limits of any CGL Insurance policy required of any Owner hereunder. Such
premiums for any such insurance shall constitute a Common Area Cost. Any insurance carried by the
Operator with respect to the Common Area shall be deemed primary vis-a-vis any other CGL Insurance
maintained by any other person.
9.2 FIRE AND CASUALTY INSURANCE. Each Owner shall, at its sole cost and expense,
continuously maintain fire and extended coverage insurance on all Buildings and all the other
improvements located on its Parcel, including the Common Area Improvements situated on such Parcel,
insuring against all of the risks customarily covered by broad form coverage. Such insurance shall be in
an amount equal to the full replacement costs of the Buildings and other improvements. Each Owner
shall provide certificates evidencing such insurance to the Operator and to each other Owner upon
request but no more frequently than annually.
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DOC #2020069315 Page 13 of 23
9.3 WAIVER of SUBROGATION. All Owners and Occupants waive on their behalf and on behalf
of their insurance companies, subrogation and right of recovery in favor of all other Owners and
Occupants and their respective Permittees with respect to such loss or damage resulting from the perils
covered by any policy or policies of casualty or property insurance covering any portion of the
Developmentto the extent that the loss or damage is recoverable undersuch policies orwould be covered
if the releasing party were carrying the required insurance. Each Owner and Occupant shall cause each
casualty or property damage insurance policy carried by it to be written to provide that the insurance
company waives all right of recovery by way of subrogation against the other Owner(s) and Occupants in
connection with any damage covered by any such policy or policies unless the cost of obtaining such
subrogation waivers is commercially unreasonable.
9.4 INDEMNIFICATION. Each Owner shall indemnify, defend, protect and hold each other
Owner free and harmless from and against any and all actions, claims, expenses, liabilities, losses,
damages and costs (including reasonable attorneys' fees and investigative and discovery costs) on account
of injury to persons, loss of life, or damage to property occurring on or in the immediate vicinity of such
Owner's Parcel(s) to the extent caused by the negligence of the indemnifying Owner or its agents,
employees, contractors or agents.
ARTICLE 10
CASUALTY AND CONDEMNATION
10.1 DAMAGE TO BUILDINGS AND EXCLUSIVE USE IMPROVEMENTS. An Owner whose Building or
Exclusive Use Improvements are damaged or destroyed may, but shall not be obligated to, restore such
Improvements. Any such repairs or restoration shall return the Building or Exclusive Use Improvements
to a condition at least as good as their condition immediately prior to such damage or destruction, and all
such restoration and reconstruction shall be performed in accordance with the requirements of this
Declaration. If an Owner elects not to restore its Buildings following damage and destruction, such
Owner's obligations with respect to the Common Area on its Parcel shall continue, and such Owner shall,
at its sole cost, raze its damaged Building and any Exclusive Use Improvements appurtenant thereto, clear
all debris, and either (a) develop such area as parking area, or (b) cover such area either with (i) a ground
cover that Owner thereafter keeps in neatly trimmed and well-groomed condition, or (ii) a one -inch
asphalt dust cap which Owner thereafter keeps in a clean and neat condition, in either case free of refuse
debris.
10.2 DAMAGE OR DESTRUCTION TO COMMON AREA. Should any portion of the Common Area
Improvements be damaged or destroyed, then:
A. REPAIRSRyOwNER. Subject to the right of Declarant or the Operator to make any
repair necessitated by damage to, or the destruction of the Common Area on a Parcel as provided by
Section 10.2.E below, promptly after the occurrence of any such damage or destruction, the Owner of the
Parcel on which such damage or destruction occurs shall at its own cost and expense promptly make such
repairs or restorations as are necessary to repair or restore such Common Area to a condition at least as
good as their condition immediately prior to such damage or destruction. Any such repairs or restoration
shall be performed in accordance with Section 3.2.A of this Declaration.
B. REPAIRS BY OPERATOR. If the damage or destruction occurs on more than a single
parcel or is of such a nature that the repairs cannot be completed in less than five (5) business days or at
a cost of less than $25,000 in Constant Dollars, then the Operator, in its sole discretion, may elect to make
the necessary repairs or restoration and the costs thereof shall constitute Common Area Costs. Should
the Operator elect to make any required repairs to, or restoration of the Common Area pursuant to this
Section 10.2.B, then, upon the request of Operator:
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DOC #2020069315 Page 14 of 23
(1) Each Owner and Occupant shall pay or assign to Operator any insurance
proceeds received by or payable to such Owner or Occupant as a result of damage or destruction to the
Common Area on its Parcel.
(2) Each Owner shall contribute its Proportionate Share of the estimated
uninsured cost of the repair.
(3) Upon completion of the repairs or restoration work, Manger shall
promptly refund to the Owners their share of any funds received by Operator from the Owners or their
insurers for the purpose of performing such repairs or restoration.
10.3 CONDEMNATION OF COMMON AREA. Should all or portion of the Common Area be taken
by right of eminent domain or any similar authority of law, then:
A. ALLOCATION AWARD. In the case of a taking of the entire Common Area, or a
taking of a portion of the Common Area, such that the portion not taken cannot reasonably provide access
to the remaining portions of the Development, the entire award for the value of the land and
improvements so taken shall belong to the Owner(s) of the property so taken or to their Occupants, as
their interest may appear.
(1) No other Owner or Occupant of land in the Development shall claim any
portion of such award by virtue of any interest created by this Declaration, but
(2) Any such other Owner or Occupant may file a collateral claim with the
condemning authority over and above the value of the land and improvements being so taken to the
extent of any damage suffered by such Owner or Occupant resulting from the severance of the area so
taken provided that such collateral claim does not diminish the amount recoverable by the Owner(s) of
the property so taken.
B. RESTORATIONOFCOMMONAREA. In the event of a partial Condemnation that allows
the Common Area to continue to provide access to the remaining portions of the Project, the Operator
shall restore the remaining portion of the Common Area as nearly as possible to the condition existing
just prior to such condemnation, and all Owners and Occupants, to the extent applicable, shall assign and
deliver to Operator any condemnation award or other payment received as a result of such event
attributable to the loss a portion of the Common Area, provided that Operator actually uses the same to
restore or reimburse itself for restoring the Common Area.
ARTICLE 11
DEFAULTS AND REMEDIES
11.1 EVENTS OF DEFAULT. The occurrence of any one or more of the following events shall
constitute a material default by an Owner:
A. DEFAULTS IN PAYMENT. The failure of an Owner or an Owner's Occupants to make
any payment required to be made hereunder within ten (10) days after notice of non-payment is given to
such Owner; or
B. DEFAULTS IN PERFORMANCE. The failure of an Owner or an Owner's Occupants to
observe or perform any of the covenants, conditions or obligations of this Declaration, other than a failure
to pay money, unless the defaulting Owner, after receiving a notice of default from the Operator or
another Owner that specifies the nature of the alleged default and the actions believed to be necessary
to cure such default, promptly commences and thereafter proceeds with due diligence to take those
actions necessary to cure such default within a reasonable period of time, which shall not exceed thirty
(30) days unless a longer period is required under the circumstances that then exist. A default by an
Owner's Occupant shall constitute a default by the Owner, and such Owner shall be liable under
Section 11.2 below for the costs of curing any such default.
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DOC #2020069315 Page 15 of 23
11.2 CURE By OWNER OR OCCUPANTS. The Operator or any Occupant shall have the right, but
not the obligation, to cure any default described in Section 11.1.A above by paying money or taking action
for the account of, and at the expense of the defaulting Owner. Should any such default create an
emergency condition, the Operator or any Occupant shall have the right to cure such default upon such
advance notice as is reasonably possible underthe circumstances or, if necessary, without advance notice,
so long as notice is given as soon as possible thereafter.
A. To effectuate any such cure, Operator or the curing Occupant shall have the right
to enter upon the Parcel of the defaulting Owner upon forty-eight (48) hours prior written notice, or such
shorter period as is reasonable and appropriate in the case of an emergency, to perform any necessary
work or furnish any necessary materials or services to cure the default.
B. A defaulting Owner shall reimburse the Operator or the curing Owner for all costs
and expenses incurred by either of them in order to cure such default, plus interest at the rate provided
in Section 11.3 below, within thirty (30) days of receipt of demand for reimbursement accompanied by
appropriate supporting documentation.
11.3 INTEREST ON DELINQUENT AMOUNTS. Interest shall accrue on any amount due and owing
by an Owner or Occupant pursuant to this Declaration at the rate of ten percent (10%) per annum from
and after the date on which a written demand for payment has been made until such amount is paid.
11.4 REMEDIES. The Operator or any Owner who is not then in default under this Declaration
shall have the right to prosecute any proceedings at law or in equity against any Occupant or other Person
violating or attempting to violate or defaulting upon any of the provisions contained in this Declaration,
and to recover damages for any such violation or default. Such proceeding shall include the right to
restrain by injunction any violation or threatened violation by another of any of the terms, covenants or
conditions of this Declaration, or to obtain a decree to compel performance of any such terms, covenants,
orconditions, it being agreed that the remedy at law for a breach of any such term, covenant, or condition
(except those, if any, requiring the payment of a liquidated sum) is not adequate. All of the remedies
permitted or available to Operator or an Owner under this Declaration or at law or in equity shall be
cumulative and not alternative, and invocation of any such right or remedy shall not constitute a waiver
or election of remedies with respect to any other permitted or available right or remedy. However, no
breach of this Declaration shall entitle any Owner or other Person to cancel, rescind or otherwise
terminate this Declaration, or any conditions, covenants, restrictions or easements hereunder.
11.5 LIEN RIGHTS. The Operator or any Owner to whom any unpaid amount is owing from
another Owner pursuant to this Declaration shall have a lien upon the Parcel of the indebted Owner to
secure the repayment of the amount owed by the indebted Owner.
A. Such lien shall attach and take effect upon recordation of a claim of lien in the
office of the Recorder of the County of San Luis Obispo County containing the following information: (1)
the name of the lien claimant; (2) the name of the Owner or reputed Owner of the Parcel or interest
therein against which the lien is claimed; (3) a legal description of the Parcel against which the lien is
claimed; (4) the amount for which the lien is claimed as of the of the date of the lien claim; (5) a statement
identifying the lien claimant as the Operator or an Owner and setting forth the basis of the claim and the
circumstances under which the amount claimed arose; (6) a statement that the lien is claimed pursuant
to the provisions of this Declaration; and (7) at the option of the lien claimant, the name of the trustee
empowered to enforce the lien, reciting the recordation information hereof.
B. Such notice shall be duly verified, acknowledged and contain a certificate that a
copy thereof has been served upon the Owner against whom the lien is claimed, by personal service or by
mailing pursuant to Section 12.3 below.
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DOC #2020069315 Page 16 of 23
C. The lien so claimed shall attach from the date of recordation solely in the amount
claimed thereby and may be enforced in any manner permitted by law, including sale by the trustee
designated in the claim of lien, or sale by a trustee substituted pursuant to Section 2934a of the California
Civil Code. Any sale by the trustee shall be conducted in accordance with the provisions of Sections 2924
of the California Civil Code applicable to the exercise of a power of sale in mortgages and deeds of trust.
D. Upon the timely cure by the Owner against whom a claim of lien was recorded
hereunder, the party claiming such lien shall record an appropriate release thereof.
11.6 WAIVERS. No waiver by the Operator or any Owner of any default under this Declaration
shall be effective or binding unless made in writing and no such waiver shall be implied from any omission
by Operator or any Owner to take action in respect to such default. No express written waiver of any
default shall affect any other default or cover any other period of time other than any default and/or
period of time specified in such express waiver. One or more written waivers of any default under any
provision of this Declaration shall not be deemed to be a waiver of any subsequent default in the
performance of the same provision or any other term or provision contained in this Declaration.
11.7 RIGHTS OF MORTGAGEES. Any notice served upon any Owner shall be served concurrently
on any Mortgagee that has previously given the Owners a request for such notices stating the address to
which such notice should be sent. This Declaration and the rights, obligations, covenants, conditions,
restrictions and easements hereunder shall be superior and senior to the lien of any mortgage or deed of
trust lien placed upon a Parcel, but no breach of any covenant, condition or restriction contained in this
Declaration shall render the lien of any mortgage or deed of trust invalid. Any Mortgagee to whom such
notice is given shall have all of the rights of a defaulting Owner to cure such default. Failure to deliver a
notice of default to a Mortgagee shall not affect the validity of the notice of default with respect to or
limit the remedies available against the defaulting Owner, but no such notice shall be effective with
respect to the interest of such Mortgagee and its lien or other interest on the Parcel of the defaulting
Owner.
ARTICLE 12
GENERAL PROVISIONS
12.1 No THIRD PARTY BENEFICIARY. The provisions of this Declaration are for the exclusive
benefit of the Declarant and the Owners and Occupants of the Development and not for the benefit of
any third person, and this Declaration does not confer any rights, express or implied, upon any such
third person. Nothing herein contained shall be deemed a gift or dedication of any portion of the
Development or of any Parcel or portion thereof to the general public or for any public use or purpose
whatsoever.
12.2 SEVERABILITY. Invalidation of any provision contained in this Declaration, or of the
application thereof to any person, by judgment or court order, shall not affect any other provisions
hereof, or the application thereof to any other person or circumstance, and the same shall remain in full
force and effect, unless enforcement of this Declaration as so invalidated would be unreasonable or
grossly inequitable under all the circumstances, or would frustrate the purposes of this Declaration
12.3 NOTICES. Any notice to Declarant, the Operator or an Owner shall be in writing and shall
be deemed to have been given and received (a) when delivered (i) in person to the person for whom
intended or its authorized representative at the address specified in clause (b) below or (ii) delivered by
electronic transmission shown by written evidence to have been successfully transmitted to and
received by an electronic device or service routinely used by the intended recipient on a regular and
recurring basis to receive such transmissions, or (b) in the case of notices not given personally or
electronically, (i) on the next business day following the date on which such notice was delivered to an
established national or regional overnight delivery service for next -day delivery, or (ii) on the fourth
16-
DOC #2020069315 Page 17 of 23
business day after the date on which mailed certified mail, in each case addressed to the intended
recipient at the address given by such Owner to the other Owners in the manner provide herein or, (c) if
no such address has been given, then to the address customarily used by such Owner for the receipt of
notices relating to Parcel or, (d) if such address is not known, to the address shown in the records of the
County Assessor for the delivery of tax notices pertaining to such Owner's Parcel, in each case with
charges prepaid and return receipt requested.
A. The Operator or any Owner may change its mailing address at any time by giving
written notice of such change to the other Owners and to the Manger in the manner provided herein at
least ten (10) days prior to the date such change is affected.
B. Notices to any Occupant shall be addressed to the building on its respective
Parcel, and notices to a mortgagee shall be given to the Mortgagee requesting such notice as provided
by Section 11.7 of this Declaration.
12.4 TERM. The easements, restrictions and obligations created and imposed herein shall be
effective upon the date of recordation of this Declaration, shall run with the land, and shall inure to the
benefit of and be binding upon the Owners and their Occupants, heirs, executors, administrators,
successors and assigns.
12.5 ARBITRATION OF DISPUTES. Any dispute arising between parties bound by this Declaration
with respect to their rights and duties hereunder, other than a dispute regarding the duty to pay a sum
of money alleged to be past due, shall be submitted for arbitration in San Luis Obispo, California, in
accordance with the arbitration procedures established by Section 1280 et seq. of the California Code of
Civil Procedure (the "Procedures"). Any such arbitration proceeding shall be conducted by a single
neutral arbitrator selected by the parties or appointed by the Court in accordance with such Procedures
and shall be held within thirty (30) days from the date of selection or appointment of the arbitrator or as
soon thereafter as permitted by the schedule of the selected arbitrator. Any award rendered in any
such arbitration proceeding, other than awards based on mistakes of law or mistakes of fact shall be
final and binding on each of the parties and judgment may be entered thereon in any court of
competent jurisdiction. Each party shall pay its own costs and fees in any such arbitration proceeding
and shall bear in equal shares the costs and fees of the arbitrators, but the arbitrators may in their
discretion award costs and reasonable attorneys' fees to any party who the arbitrator determines is the
prevailing party.
12.6 ATTORNEYS' FEES. Except as otherwise provided herein, this Declaration may be
enforced by legal action only by the Operator or an Owner, or by an Occupant with the written consent
of the Owner of the Parcel occupied by an Occupant who is not the Owner of such Parcel. If any Owner
or Occupant shall bring an action against any other Owner or Occupant by reason of the breach of any
covenant, term or obligation arising out of this Declaration, the prevailing party in such suit shall be
entitled to its costs of suit and reasonable attorneys' fees, which shall be payable whether or not such
action is prosecuted to judgment. Notwithstanding the foregoing, attorney's fees shall not be awarded
against an Operator in any action filed against an Operator by another Owner or Occupant unless the
court first determines that the Operator, acting in its capacity as Operator, acted in bad faith or was
willfully or grossly negligent in the performance of its duties as Operator.
12.7 RELIEF FROM OBLIGATIONS; TRANSFERS. If any Owner Or other Person obligated
hereunder shall no longer have any interest in a Parcel whether as a result of a conveyance or lease
termination or expiration (collectively "Conveyance") upon such Conveyance said Owner or other
Person shall be automatically freed and relieved of all liability under this Declaration with respect to any
obligation thereafter to be performed with respect to the Parcel so conveyed. It is intended that the
agreement and obligations contained in this instrument on the part of each Owner or other Person, as
applicable, shall be personally binding on such Owner or other Person only with the respect to
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DOC #2020069315 Page 18 of 23
obligations that are to be performed during its ownership or leasehold interest in a Parcel; therefore,
the conveying Owner shall remain liable for any obligations incurred under this instrument prior to the
date on which its/his ownership or leasehold interest is terminated or expires to the extent applicable
hereunder.
12.8 AMENDMENT. This Declaration may only be amended by a written and properly
recorded instrument duly executed by the following Owners:
A. For as long as Declarant is the record Owner of more than 50% of the Building
Area in the Development, by Declarant and by any Owner whose Parcel is adversely affected by the
amendment.
B. If Declarant is no longer the record Owner of more than 50% of the Building
Areas of the Parcels comprising the Development, then by a Majority of the Ownership Interest of the
Development, including the vote of any Owner whose Parcel is adversely affected by the amendment.
12.9 CITY APPROVAL REQUIRED FOR CERTAIN AMENDMENTS. Notwithstanding any other provision Of
this Declaration, no amendment, change, modification, or termination of the conditions, covenants, and
restrictions of this Declaration regarding the following provisions shall be effective for any purpose until
approved in writing by the Community Development Director of the City: (a) Sections 42.1 through 2.3
with respect to the grant of easements; (b) Sections 3.5.B and 5.38 above relating to maintenance of
landscaping and Common Area Improvements, (c) Section 4.2.E with respect to Parking Rules and
Restrictions; and (d) the notice provisions in Article 7.
12.10 TERMINATION. This Declaration may not be canceled or terminated except by a written
and properly recorded instrument executed by each Owner of all of the Parcels in the Development.
IN WITNESS THEREOF, Declarant has executed this Declaration on the ic� day of 00V 2020.
As Owners: Laurel Creek, LP, a California limited partnership
By: 1160 Laurel Lane, LLC
Its: General Partner
By...
Patrick N. Smith, Manager
DOC #2020069315 Page 19 of 23
ACKNOWLEDGMENTS
A notary public or other officer completing this certificate verifies only the identity of the individual who
signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of
that document.
State of CAcXt-- 1V-VtT".A )
County of Sa-- A 15%26AQA )
On L4.00E4arE-('.— PO , , 202f before me, WCr1J`,f� S,V (Z.'9A,065 Ftk&LAC, µOtAR`A
a notary public, personally appeared iA . SktT
who proved to me'on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that(OIXeltVy executed the same in
,K 3i /l[Xr/toir authorized capacity(ies), and that by6i&/4/r/tFy4ir signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS m hand and official seal. Notary PuHAEL blic
CafforROSALES
Y Notary Pubtic •California
Santa Barbara County
Signature /�f� Seal Commission k 2319410
9,
g (Seal) My Comm. Expires Jan 19, 2024
A notary public or other officer completing this certificate verifies only the identity of the individual
who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or
validity of that document.
State of
County of
On , 20. before me,
a notary public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
Witness my hand and official seal.
Signature (Seal)
DOC #2020069315 Page 20 of 23
CONSENT OF BENEFICIARY TO SUBORDINATE
The undersigned beneficiary under that certain deeds of trust recorded as Document No. 2020-031256
and re -recorded as Document No. 2020-045936 of the Official Records in the Office of the County
Recorder, County of San Luis Obispo, State of California, hereby consents to the execution and recordation
of the attached RECIPROCAL EASEMENT AGREEMENT AND DECLARATION OF COVENANTS, CONDITIONS
AND RESTRICTIONS FOR PARCEL MAP SLO 19-0114 (FMAP0414-2020) and hereby agrees that said deeds
of trust shall be subordinate and subject to said RECIPROCAL EASEMENT AGREEMENT AND DECLARATION
OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR PARCEL MAP SLO 19-0114 (FMAP0414-2020).
DATED: a0VfM1Y( 0 12020
BENEFICIARY
Ottley Properties, LLC
A Delaware Limited Liability Company
By:
By:
Name: MiGW 3•WknL"— Name:
Title: �n�1ef Title:
J
DOC #2020069315 Page 21 of 23
ACKNOWLEDGMENTS
A notary public or other officer completing this certificate verifies only the identity of the individual who
signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of
that document.
State of LOulSluna
County of Or )eaves
On Nov. lA 2026, before me, CAli�eerl Cee Sk
a notary public, personally appeared I li 0\CLtI g. w\'h13f-
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
1 certify under PENALTY OF PERJURY under the laws of the State of C 8atay regoing
paragraph is true and correct. TA
No�N
WITNESS myhandand official seal. �
Signature (Seal) �9( 'OUBL\G P
Fo.. ....
A notary public or other officer completing this certificate verifies only the identity of the individual
who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or
State of )
County of )
On 20. before me,
a notary public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
Witness my hand and official seal.
Signature (Seal)
DOC #2020069315 Page 22 of 23
EXHIBIT "A"
LEGAL DESCRIPTION
Real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, described
as follows:
Parcel A of Parcel Map No. SLO-77-272, in the City of San Luis Obispo, County of San Luis Obispo,
State of California, according to map recorded August 11, 1978 in Book 26, Page 56 of Parcel Maps.
APN: 044-962-018
DOC #2020069315 Page 23 of 23
EXHIBIT 'B"
PARCEL MAP NO. SLO 19-0114
LAUREL LANE 0
01
OZAshlev.vance
E N GIN E E R I N G. INC.
10/27/2020