Spokane Business Park CC&R

Recording Requested by, and When Recorded Return to:
Stamper, Rubens, Stocker & Smith, P.S.
W. 720 Boone, Suite 200
Spokane, WA 99201
Attention: Scott R. Smith

DECLARATION OF PROTECTIVE COVENANTS

Business Park

THIS Declaration of Protective Covenants ("Declaration") is imposed by PENTZER DEVELOPMENT CORPORATION ("Declarant"), a Washington corporation, Owner of the real property commonly known as Spokane Business Park (the "Park") and legally described as:

1. Spokane County Altered Binding Site Plan No. 87-17, recorded in Volume 1 of PLATS, Page 22A, records of Spokane County, Washington; Except Lots 3, 4, 5, 10, 11, 12, 13 and 18 thereof;
   
   
2. Spokane County Binding Site Plan No. 88-21, recorded in Volume 1 of Plats, page 23, records of Spokane County, Washington; and
   
   
3. Spokane County Binding Site Plan No. 88-22, recorded in Volume of Plats, page _____, records of Spokane County, Washington.

The provisions of this Declaration are hereby imposed on the Park real property owned by Declarant. This Declaration is intended to assure compatibility with existing and planned development, to protect property values, to ensure quality construction of improvements that are compatible with a harmonious development of the Park and to provide for a fair and equitable apportionment of costs of common services and facilities to property Owners and tenants within the Park.

This Declaration and its covenants, conditions, restrictions and reservations shall be deemed to run with the real property situated in the Park including each and every parcel thereof. This Declaration shall bind and be applicable to all Owners and occupants of the Park and their respective officers, agents, employees, customers, licensees, invitees, tenants, subtenants, mortgagees, successors, assignees and any other person having any interest in or to any part of the Park or possession thereof by, through or under an Owner, occupant or possessor. The covenants, conditions and restrictions provided in this Declaration shall not apply to existing structures in the Park, but shall apply to replacements of such existing structures.

ARTICLE I

Definitions

1.1. Declarant. The Declarant refers to Pentzer Development Corporation and its corporate successors and or assigns, or any other entity or organization that succeeds to Pentzer Development Corporation's legal interest or obligations in the Park.

1.2.Owners and Tenants Association. Owners and Tenants Association refers to the Association that may be formed at Pentzer Development Corporation's discretion, among the then existing Owners of real property situated in the Park at such time as Pentzer Development Corporation and its corporate successors and or assigns determine that formation of an Owners and Tenants Association is desirable according to the Articles of Incorporation and Bylaws in the form attached hereto as Exhibits A and B.

1.3.Owner(s). Owner or Owners refers to those who acquire a fee simple interest in real property situated in the Park, by deed or real estate contract, that are governed by this Declaration.

1.4.Common Easement Areas. The Common Easement Areas are defined on the Binding Site Plans set forth in the legal descriptions applicable to each parcel of real estate within the Park.

1.5.Facilities. The term Facilities refers to utilities including water, sewer, gas, electric and cable. It also includes sidewalks, landscaping, drainage and similar improvements within the Common Easement Areas, and all private roads within the Park, wherever located. The term also encompasses future items of like nature.

ARTICLE II

Development Standards

At the time of development of each parcel within the Park, and at such other times as an Owner may apply for a building permit for improvements to a parcel, or apply for any other permit from a public agency, the Declarant intends that Owners comply with the development standards set forth herein.

2.1.Review of Plans. No building, structure, fence, road, wall, parking area, lighting, utilities or other improvements including landscaping of any nature, shall be commenced, erected, or planted on the property located in the Park, nor shall any exterior addition or modification to, or change or alteration thereof, be made until the plans and specifications showing the nature, kind, shape, elevation, color, materials, species, lighting plan, utility plan, and location of the same shall have been submitted to and approved in writing by Declarant. In the event Declarant fails to approve, disapprove or otherwise respond to such design and location within 30 days after said plans and specifications have been submitted to it, approval will be deemed to have been granted. The purpose of this requirement is to permit Declarant to review compliance with applicable regulations and this Declaration.

2.2.Guidelines. In order to obtain and maintain the harmony of external design and location in relation to surrounding structures and topography herein and in order to maintain the general plan of improvement for the mutual benefit of the Park, Declarant shall be guided by the following:

1. Design.
   
   
   1. Any building erected on the premises shall be designed by a licensed architect as may be required by applicable regulations.
      
      
   2. External ground level or wall-mounted heating, air conditioning, electrical and other equipment shall be installed in a manner that it is screened, covered and otherwise visually obscured from other parcels within the Park.
      
      
   3. Buildings shall be designed so that the exterior elevation of each will be architecturally and aesthetically compatible with other structures within the Park, and so that the buildings, walls, footings and awnings shall not encroach from one lot onto another lot as required by applicable zoning regulations. Design and construction shall conform with sound architectural construction and engineering standards as established by uniform code and local regulations.
      
      
   4. Material storage yards, whether open or enclosed, are prohibited within that portion of the Park located within the triangular area bordered by Marietta Avenue on the south, Euclid Avenue on the north and Sullivan Road on the west. Material storage yards are permitted in other areas of the Park as long as they are reasonably screened, covered, enclosed or otherwise visually obscured from other parcels within the Park to the extent possible. Examples of reasonable screening include but are not limited to plantings of appropriate vegetation or a 6-foot high screened fence.
      
      
   5. All improvements shall be of good quality.
      
      
2. Exterior Colors and Materials.
   
   
   1. Preferred materials for construction of exterior walls and facias are concrete and masonry. Within that area of the Park located within the triangular area bordered by Marietta Avenue on the south, Euclid Avenue on the north and Sullivan Road on the west, exterior building materials shall be concrete, masonry, or similar quality material. Metal exteriors are discouraged and will not be allowed on building fronts facing Marietta Avenue or Euclid Avenue. In the event Declarant constructs the road known as Rotchford Lane as depicted on the Binding Site Plans referenced herein, Declarant may extend this restriction to apply to such road. In the case Declarant permits use of a metal exterior, Declarant will require use of an appropriate landscape design that will provide visual occlusion of the metal exterior from road frontages and other parcels within the Park. All exteriors shall have a finished treatment.
      
      
   2. Colors utilized in finishing exteriors shall be complimentary earth tones, natural tones or other colors mutually agreed upon by Declarant and Owner. Design accents with two or more colors are encouraged. Primary colors will be discouraged except as an accent.
      
      
3. Screening. In order to maintain a neat and orderly appearance for the Park, Declarant may, when outside material storage is permitted, require Owner to install or construct berms, opaque walls, fences, shrubbery or other methodology to obscure the view of items stored outdoors. Declarant shall not require use of a screening methodology that exceeds six feet in height above grade level of any lot. In instances where screening is required in the Declaration, a six foot high screening fence or six foot high shrubbery placed along the perimeter boundary of the area sought to be screened, shall satisfy the screening requirements for areas within the perimeter that might otherwise require screening.
   
   
4. On-site Lighting. The objective of on-site lighting is to light landscaped areas, pedestrian circulation, buildings, parking or approved storage for decorative or security reasons. Lighting shall be designed to avoid or minimize light diffusion to adjoining property where negative impacts may be created.

ARTICLE III

Maintenance Standards

The maintenance standards are intended to outline minimum standards and the required level of upkeep and repair for structures and the surrounding landscaping and property.

3.1.Buildings. Exterior walls and facings shall not be allowed to become cracked, chipped, faded or in any way deteriorated so that the aesthetics are impaired as determined by Declarant. Broken windows, doors or other exterior members of structures shall be repaired or replaced promptly.

3.2.Landscaping. All landscaping shall be maintained in an attractive manner and weed free condition at all times. Plants and shrubs shall be maintained in a healthy, disease free condition. Pools, fountains and the like are to be maintained in a clean and operating condition.

3.3.Screening. Fencing and any other architectural screen shall be maintained in an aesthetically pleasing form and not allowed to become deteriorated.

3.4.Paved Areas and Other Surfaces. All paved areas whether used for parking, driveways, truck loading or otherwise, shall not be permitted to become broken, cracked, settled or otherwise in need of repairs. Grass, weeds and other plant material growing in cracks should be removed. Areas covered with gravel, bark, rocks or wood chips are to be kept free of litter and debris. Markings on paved surfaces are to be maintained to be clearly visible.

3.5.Unimproved Areas. All areas that are not otherwise landscaped or improved shall be maintained in a weed free condition. Each Owner shall remove and will not otherwise permit weeds identified by the Noxious Weed Control Board as dangerous to public health, safety and welfare to be on the real property.

ARTICLE IV

Common Easement Areas and Facilities

4.1.Common Easement Areas. Common Easement Areas and Facilities described or shown on the Binding Site Plans of the Park or otherwise of record for the installation and maintenance of utility lines and Facilities, drainage facilities, roadways and walkways and the private water and sewer systems serving the Park are for the common use of all occupants of the Park. Declarant reserves for itself, utility providers and governmental entities, the right at any reasonable time to enter upon the Owner's property for the purpose of locating, relocating, installing, constructing, maintaining or otherwise dealing with the Common Easement Areas and Facilities located or to be located in, on; over, under or across the Owner's property.

4.2.Owner's Right of Enjoyment. The Owners of property in the Park shall have the right to use and enjoy the Common Easement Areas and Facilities, including, but not limited to, the night of ingress and egress across all walkways, roadways and driveways in the Park, easements for utilities, sewage and drainage, and such easements shall be appurtenant to and shall pass with the title to property within the Park subject to the following provisions:

1. The right of Declarant to establish uniform rules and regulations (including traffic control measures) pertaining to the use, maintenance and improvement of the Common Easement Areas and Facilities;
   
   
2. The right of Declarant to dedicate the common roadway areas and utilities to public use;
   
   
3. In the event an Owner desires to relocate its access point for ingress/egress over an easement area or drainage area, Owner shall be responsible for compliance with all federal, state and local regulations that may be applicable and all costs associated with compliance. In addition, to the extent existing utilities, sewage and drainage, walkways, roadways, driveways, and parking areas are affected within the Common Easement Areas, Owner shall be responsible for payment of all costs associated with the interruption, relocation, repair or other costs of the affected item or utility, whether the affected entity is Declarant, another purveyor of utilities, an adjacent real property owner, or governmental entity.

4.3.Walkways and Driveways. There shall be no obstruction of any walkways, roadways and driveways located within the Common Easement Areas of the Park, which would interfere with the circulation of foot or vehicle traffic except such obstruction as may be reasonably required in connection with repairs of such walkways, driveways or other Common Easement Areas.

4.4.Water and Sewer Systems. Declarant has installed main water and sewer lines at various locations throughout the Park for the use of Owners and their tenants. Declarant shall not be responsible for installation or maintenance of drainage systems or water or sewer lines on Owner's property except within the easement area as required or provided for by the applicable Binding Site Plan. Installation of fire hydrants and service lines or similar facilities from the easement area to the Owner's facility shall be the responsibility of the Owner of the property. Declarant will charge and Owners shall pay for utilities that are owned and operated by Declarant and consumed by Owners and occupants at rates established by Declarant, said rates to be bona fide and comparable to similarly situated purveyors of utilities.

ARTICLE V

Assessments

5.1.Cost of Operation and Maintenance. Declarant shall operate and maintain the Common Easement Areas and Facilities, including water and sewer systems (but excluding public streets and facilities owned by third parties), the cost of which shall be borne by all Owners and occupants within the Park, pro rata. Declarant shall have full authority to establish and determine the amount of assessments, such determination to be based on Declarant's best bona fide estimate of the cost of providing services and operation and maintenance of the Common Easement Areas and Facilities. Assessments will be made for services provided by Declarant to Owners and occupants of the Park to the extent the services are reasonable and necessary components of operational and maintenance expenses.

5.2.Calculation. Assessments shall be prorated based upon the ratio of the lineal front footage of the Owner's real property in the Park abutting roads as compared to the total lineal front footage of all of the Owners' real property in the Park abutting roads. Declarant shall notify the property Owner in writing of any regular or special assessment and the amount owed by Owner by regular mail at least thirty (30) days prior to said assessment becoming due.

5.3.Budget. Declarant shall prepare an annual budget for projected operational and maintenance expenses associated with the Park. Declarant shall prepare an annual report comparing actual operating and maintenance expenses with budgeted operating and maintenance expenses. Upon request of Owners of real property within the Park, Declarant shall make copies of these reports available to the requesting Owner.

ARTICLE VI

Enforcement

6.1.Declarant shall have the right to enforce this Declaration and the covenants, conditions and restrictions by any proceedings at law or in equity that it deems appropriate. Unpaid assessments shall constitute a lien against an Owner's property and may be enforced by filing the assessment as a lien by recording notice thereof with the Spokane County Auditor and enforced by foreclosure action in Spokane County Superior Court, following the same procedure as is set forth for the foreclosure of liens for the furnishing of labor and materials. The prevailing party shall be entitled to recover their costs and reasonable attorney's fees in any enforcement action. In addition, Declarant shall have the right to suspend access to Common Easement Areas and Facilities located within them for violation of any covenant, condition or restriction or failure to pay any assessments when due. Prior to the initiation of any enforcement proceeding or other remedy, Declarant shall provide 30 days written notice to the offending party specifying the alleged default. During this notice period, the offending party is permitted to cure the default alleged in the written notice. If the default alleged is not cured within the notice period, then Declarant may invoke any of the enforcement proceedings or remedies provided for 'in this Declaration or otherwise available by law.

ARTICLE VII

Owners and Tenants Association

7.1.Creation. Declarant may establish an Owners and Tenants Association at such time as Declarant determines that formation of the Owners and Tenants Association is desirable. The Articles of Incorporation shall be in the form attached hereto in Exhibit A. The purpose for such Owners and Tenants Association is for the Declarant, at its sole discretion and option, to transfer all or any portion of Declarant's interest in the Common Easement Areas and Facilities, including utility lies and facilities, drainage facilities, roadways, walkways, water system and sewer systems, and in such case, the Owners and Tenants Association shall become the successor to whatever interest in the Common Easement Areas and Facilities Declarant transfers to the Owners and Tenants Association. In the event Declarant elects to transfer its utility lines or water facilities, or sewer lines or facilities, the Owners and Tenants Association may be required to assume Declarant's obligation to provide such utilities or services to Owners of the real property in the Park. Declarant may, at its sole option and discretion, transfer said facilities to other purveyors of utilities or governmental organizations as it deems appropriate.

7.2.Control. The Owners and Tenants Association shall be controlled and administered according to Bylaws in the form attached hereto as Exhibit B. The Owners and Tenants Association may adopt rules and regulations or other administrative or operative procedures consistent with this Declaration, the Articles of Incorporation and Bylaws to carry out and implement the obligations of this Declaration. The Owners and Tenants Association shall be empowered to enforce whatever interests that Declarant may transfer to it under Article 7.1 according to the terms of this Declaration.

7.3.Extension of Covenants to Adjoining Lands. Any owner or owners of land which adjoins the land already subject to this Declaration may apply to Declarant to have said adjoining land made subject hereto. Declarant will set forth the criteria it requires to permit adjoining land to become subject to this Declaration. With the written approval of Declarant to include the adjoining land within this Declaration, the owner or owner thereof may make such land subject hereto by executing an instrument in writing and in form approved by Declarant and applying these covenants to such adjoining land, and recording the same in the real property records of Spokane County, Washington. Upon such recordation, these covenants shall run with the land already subject to this Declaration and with such adjoining land as if these covenants had always applied to all of said land from the inception of these covenants and this Declaration, and shall inure to the benefit of and be binding upon the owners of all such land, tile Declarant, and any others having an interest therein, their respective heirs, successors and assigns. Any real property owner extending these covenants to his or its adjoining real property shall appoint Declarant and recognize Declarant as its authorized agent for the purposes of imposing this Declaration on the adjoining land.

ARTICLE VIII

Environmental Covenants

8.1.Hazardous Materials. Owners shall not engage in or allow the generation, use, manufacture, treatment, transportation, storage or disposal of any hazardous substance in, on, under or adjacent to their real property that in any way is prohibited by applicable federal, state and local laws, regulations and orders.

Owner shall not engage in or allow the unlawful release (from underground tanks or otherwise) of any hazardous substance in, on, under or adjacent to Owner's real property (including air, surface water and ground water on, in, under or adjacent to the real property). Owner shall at all times be in compliance with all applicable law (and shall cause its employees, agents and contractors to be) with respect to the real property or any hazardous substance and shall handle all hazardous substances in compliance with good industry standards and management practices. As used in this Declaration, the term "hazardous substance" shall mean any substance, chemical or waste, including any petroleum products or radioactive substances, that is now or shall hereafter be listed, defined or regulated as hazardous, toxic or dangerous under any applicable laws. As used in this Declaration, "applicable law" shall mean any federal, state, or local laws, ordinances, rules, regulations and requirements now or hereafter enacted (including consent decrees and administrative orders) relating to the generation, use, manufacture, treatment, transportation, storage, disposal, or release of any hazardous substance.

Owner shall promptly notify adjacent real property Owners, in writing, if Owner has or acquires notice or knowledge that any hazardous substance has been or is threatened to be unlawfully released, discharged or disposed of, on, in, under or from the real property. Owner shall immediately take such action as is necessary to report to governmental agencies as required by applicable law and to detain the spread of and remove, to the satisfaction of any governmental agency having jurisdiction, any hazardous substances released, discharged or disposed of as the result of or in any way connected with the conduct of Owner's business, and which is now or is hereafter determined to be unlawful or subject to governmentally imposed remedial requirements.

Owner shall at all times maintain an employee or consultant familiar with applicable law and charged with responsibility for Owner's compliance with all applicable law relating to hazardous substances. Owner shall implement a system to review Owner's hazardous substance activities on a regular basis and shall in good faith (consistent with sound business practices) implement and maintain best management practices to minimize the hazards posed by materials utilized by Owner, for example, by reducing the amounts of hazardous substances used and disposed of, by utilizing less dangerous or less toxic materials or by implementing programs to ensure the safe and proper handling, labeling, use and disposal of hazardous substances.

ARTICLE IX

Other Regulations

9.1.Zoning: Real property in the Park may be used as permitted by applicable zoning regulations of Spokane County, Washington, or any other governmental body having jurisdiction over zoning except to the extent restricted by this Declaration. In the event of conflict between zoning regulations and this Declaration, the provisions of this Declaration shall control. With the exception of shipping and receiving dock areas and to the extent permitted by governmental authorities, all business functions conducted within the Park shall be conducted indoors unless otherwise properly screened.

9.2.Offensive Trade. No unlawful, noxious or offensive trade or activity shall be carried on upon the property, nor shall anything be done thereon which may be or so become an annoyance or nuisance to neighboring Owners or occupants, nor shall sound and external noise and odors be permitted which exceeds applicable governmental regulations.

9.3.Signs. Declarant's intent is to permit reasonable signage in the Park without imposition of strict standards to accommodate flexibility in sign design. However, to ensure compliance with this Declaration, all sign designs, materials, location, size, colors and details must be submitted to Declarant for approval prior to installation. Once a given style of sign is approved, additional signs of the same size and style need not be submitted to Declarant for approval.

1. Signage shall be coordinated so far as is reasonably possible with the exterior design and colors of the building to which the signs apply. Signage is prohibited within all Common Easement Areas of the Park as delineated on the applicable Binding Site Plan. The purpose of this restriction is to avoid interference with the maintenance of landscaping and periodic excavation of utility lines located within the area.
   
   
2. Neon, flashing, rotating signs and the like are prohibited.
   
   
3. Illuminated sips are allowed as specifically approved by Declarant.
   
   
4. Free standing advertising signs and billboards are prohibited unless special written permission from Declarant is obtained.
   
   
5. Approved monument type signs are permitted at the access point to the property, as are directional type signs, however, not within easement areas.
   
   
6. Approved wall signs on the exterior of a building are permitted, but limited to the identification of the occupant.

4.Animals. No animals, livestock or poultry of any kind shall be raised, bred or kept on the property.

5.Rubbish. All rubbish, trash and garbage shall be regularly removed from the property and shall not be allowed to accumulate thereon for a period in excess of seven (7) days.

6.Parking. Parking of all vehicles shall be upon Owner's property and not in the Common Easement Areas of the Park. No vehicle of any type shall be parked on any streets or driveways. All storage of parked trucks or other commercial vehicles will be in an orderly manner in the back of any improvements to the property. To the extent practical, storage parking and loading areas will be screened from those primary office views existing at the time the storage parking and loading area is created through the use of berms and/or planting materials.

7.Binding Site Plan. Each Owner of property in the Park shall comply with the conditions and covenants imposed on the Park in connection with the Binding Site Plan or plot plan.

8.Maintenance. Each Owner shall keep the property and improvements in good order and repair including, without limitation, all buildings, landscaping and other improvements thereon. The Owner shall follow a regular course of maintenance for all buildings and improvements and shall regularly mow and water all lawn areas and regularly maintain all other landscaping on the Owner's property which is not maintained by Declarant. The Owner shall not permit the property, landscaping or any improvements thereon to exhibit signs of deterioration, disrepair or neglect.

9.Snow Removal. Each Owner shall be responsible for snow removal from the property. Declarant will be responsible for snow removed from all common areas, including sidewalks, (not including public streets), the cost of which shall be assessed to each Owner as provided above.

10.Owners/Tenants. In the event an Owner leases to, or allows possession of, Owner's real property by a tenant, each such tenant shall be bound by all of Owner's obligations imposed by this Declaration.

11.Amendment. This Declaration of Protective Covenants cannot be amended except in writing signed by all of the Owners of real property subject to these covenants and Pentzer Development Corporation, its successors or assigns.

IN WITNESS WHEREOF, this Declaration and the covenants stated herein are duly executed this 1st day of July, 1994.

PENTZER DEVELOPMENT CORPORATION

By:??????

RICHARD ROLLNICK

Its President

STATE OF WASHINGTON )

????) ss.

County of SPOKANE?)

On this 1st day of July, 1994, personally appeared to me Richard Rollnick to me known to be the President of Pentzer Development Corporation, the corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute the said instrument.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.

SS/RH:D:05/19/99