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HomeMy WebLinkAbout2017 - Declaration of Covenants, Conditions, Restrictions and Easements for Tukwila Village - City of Tukwila - 20170721000106After recording return to: CITY OF TUKWILA Office of the City Clerk 6200 Southcenter Boulevard Tukwila, WA 98188 [1.11 20170721000 COVENANT Rec: $94.00 7/21/2017 11:09 AN! KING COUNTY, VVA LUI 06 EXCISE TAX NOT REQUIRED King Co....Record ision DepLZy Grantor: Grantee: Legal Description (abbreviated): Assessor's Tax Parcel No. DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR TUKWILA VILLAGE 1 ST AM City of Tukwila City of Tukwila Parcels A, B, and C, City of Tukwila Parcel Consolidation No. L13-021, Rec. No. 20150428900001; Parcel A, City of Tukwila Parcel Consolidation No. L16-0031, Rec. No. 20160629900001, Tukwila, King County Washington The complete legal description is set forth on Exhibit A 1523049242; 1523049322; 1523049096; 0040000180 TABLE OF CONTENTS ARTICLE 1. DEFINITIONS 1 ARTICLE 2. ALLOCATED SHARE 4 ARTICLE 3. COMMON AREAS 4 ARTICLE 4. EASEMENTS 5 4.1 Vehicular and Pedestrian Access 5 4.2 Shared Parking 5 4.3 Trash Enclosure 5 4.4 Storm Drainage 5 4.5 Street Lighting 5 4.6 Utilities 5 4.7 Manager Function 5 4.8 Recorded Easements 5 ARTICLE 5. Permitted Uses and Use Restrictions 6 5.1 Permitted Uses 6 5.2 Prohibited Uses 6 5.3 Common Area Uses and Alterations 7 ARTICLE 6. Manager Duties and Obligations 7 6.1 Transferability 7 6.2 Authority of Manager 7 6.3 Maintenance of Common Areas 7 6.4 Maintenance Budget 8 6.5 Limitations Upon Expenditures 9 6.6 Reserve Funds 9 6.7 Voting 9 6.7.1 Number of Votes 9 6.7.2 Meetings, Notices and Quorums 9 6.7.36.7.1 Declarant Approval 9 6.8 No Personal Liability for Decisions 9 6.9 Indemnification of Manager 9 6.10 Arbitration 10 6.11 Manager's Records and Funds 10 6.11.1 Records and Audits 10 6.11.2 Name of Accounts 10 6.11.3 Fund Commingling 10 ARTICLE 7. Assessments I 1 7.1 Owners Obligations 11 7.2 Common Expenses 11 7.3 Commencement of Assessments 11 7.4 Assessment Certificate 11 ARTICLE 8. Rights and Remedies 1 1 8.1 Enforcement 1 1 8.2 Access to Property 12 8.3 Owner Liability 12 Declaration of CC12s (Tukwila Village) 071817 - i - 8.4 Mortgage Liability 12 8.5 Delinquent Assessments 12 8.6 Late Charges 12 8.7 Attorneys' Fees 12 ARTICLE 9. Insurance 13 9.1 Liability Insurance 13 9.2 Property Insurance 13 9.3 Waiver of Subrogation 13 9.4 Indemnity by Owners 13 9.5 Indemnity by Manager 14 ARTICLE 10. Repair of Damage 14 10.1 Definitions 14 10.2 Initial Manager Determinations 14 10.3 Notice of Determinations 15 10.4 Restoration 15 10.5 Manager's Authority 15 10.6 Damage Not Restored 15 ARTICLE 11. Condemnation 15 11.1 Condemnation of Parcels 16 11.2 Manager's Participation 16 ARTICLE 12. Construction and Interpretation 16 12.1 Partial Invalidity 16 12.2 Captions and Exhibits 16 12.3 Adjustments for Inflation 16 12.4 Rule Against Perpetuities 16 12.5 No Waiver of Strict Performance 16 12.6 Delivery of Notice 16 12.7 Declarant Right to Assign 17 12.8 Amendment 17 ARTICLE 13. Effective Date 17 13.1 Effective Date 17 Exhibit A 19 Declaration ofC'CRs (Tukwila Village) 071817 - ii - DECLARATION OFCOVENANTS, CONDITIONS AND RESTRICTIONS FOR TUKWILA VILLAGE THIS DECLARATION is made and executed this l«mday o[July, 2017, by the CITY OF TUKWILA, a Washington non -charter optional municipal code city ("Declarant"). RECITALS A. [}ecocuot in the owner of certain real property (the "Property") containing four separate legal parcels Ake ^]^orcdn`l located in Tukwila, King County, Washington, commonly known asTukwila Village. B. The purpose of this I}cc|oruhoo is to establish for the nouk/u| hcnsUt of all existing and future owners or occupants of the Property, or any portion dbcrco[ certain cuscnncnts and rights in, over and upon the Property and certain mutually beneficial restrictions and obligations with respect to the use, occupancy and maintenance thereof in accordance with Section 2.8E.i. of the Disposition /\grccnncnt. Declarant intends that all Owners, Mortgagees, occupants, and all other persons acquiring any interest in the Property xhu|\ hold their interest subject tnthe rights, eoocnuonLs, privileges, restrictions and reservations hereinafter set forth. NOW, THEREFORE, all of the Property uba| be held, used, conveyed, encumbered, leased, rented, occupied and improved subject to the following covenants, conditions, restrictions, uses, limitations, obligations and reservations, all of which are declared and ugnccd to be deemed to run with the land and bind and benefit the Owners, their successors and assigns, and any and all persons acquiring n,owning un interest in and toany portion of the Property, their grantees, successors, heirs, executors, administrators and assigns. ARTICLE DEFINITIONS When used in this Declaration the following terms shall have the following meanings: 1.1 "Access and Shunx] Parking Easement" oncaus the Declaration of Access and Shared Parking Easements dated May |5,20}5and recorded under King County Recording No. 20150520001082. 12 "Access Roads" means all vehicular access roads constructed on any Parcel which are not otherwise maintained by any municipality. 1.3 "Allocated Shorc" means the percentage interest uUocakx| to each Parcel under Article 2 of this Declaration for liability for payment of Common Expenses. 14 "Assessments" nocons all sums chargeable against a Parcel, including, without Uonbatkxn kA regular and special assessments for Common Expenses; (h) charges and §ncn collection, including rcusonuh\c attorneys' fees, incurred by the Manager in connection with the collection ofudelinquent Owner's account. 1.5 "Buildim"means any building mstructure upon any Parcel. 1/5 "Common Areas" rneans all those portions of the Property described in Article 3. 1.7 "Common Expenses" cucuna all expenditures necessary and proper for the operation, maintenance, repair and replacement ofthe Common Areas. 1.0 ^'Connnnoo Expense Liabilities" nucuns the liability of Parcel for its Allocated Share nfCommon Expenses. /.9 "Commons"means the building containing the community center and cafd/coDfee shop sometimes referred to as the `xConnnnons" located on North Parcel C, consisting of approximately 4,253 square feet. 1.10 "Declarant" means the City of Tukwila, a Washington uoo-ohudsr optional municipal code city, and the assignees nfall of the rights nfDeclarant herein. 1.11 "Declaration" means this Declaration as the sarne may be amended from time to 1]2 "Disposition Agreement"mzans that certain Disposition and Development &grecoueck dated as of October 30, 2012 entered into by and hetv/nto the City of Tukwila and Tukwila Village Development Associates, l.LC, and amended hythat certain First Amendment tothe Disposition and Development Agreement dated asnf May |8,2O|5. 1.13 "Development Period" shall nucun the period of time commencing upon the recording of this Declaration and expiring on the Transition Date, as defined in this Declaration. 1.14 "EuouncutV" means those easements nFthe Property usdefined inArticle 4. 1.15 "Eligible Mortgagee" means the holder ofamortgage onaParcel that has filed with the Manager u written request that it he given copies of notices of any action by the Manager that requires the consent of Mortgagee. )]6 Parcel" means Parcel DofCity ofTukwila Lot Consolidation No. O3- O2l,recorded under King County Recording No.20/5042890000/. 1.17 "Manager" means the person or entity designated by the Owners to be responsible for the operation, maintcnanoc, repair and ncp|uccxucnt of the Common Areas. The Manager may be, but is not required to he, one of the ()vvncro. The initial Manager shall be the Owner of South Parcel A. The Owners may change the Manager upon the affirmative vote ofOwners holding at least two thirds (bb.h7Y6)ofthe Total Interest. 1.18 "Mmeans umortgage, deed of trust, security agreement mreal estate installment sales contract no aPu,cci 1.19 "M00000sthe mortgagee, beneficiary, creditor orvendor iunMortgage, including the assignees of the interests so held. 1.20 "North Parcel &,means Parcel &ofCity ofTukwila Lot Consolidation No. Ll3- 02l,recorded under King County Recording No. 2O)5042890O00l. 121 "North Parcel B"means Parcel Bof City ofTukwila Lot Consolidation No. D3- 02l,recorded under King County Recording No. 2O\5042D90000l. 122 "North Parcel C``means Parcel CofCity of Tukwila Lot Consolidation No. L13- 02 1, recorded under King County Recording No. 20l50428900O01. 123 ` means any person orentity with possession rights touParcel or to any portion ofthe improvements constructed nuuParcel, whether asfee simple owner orlessee, sublessee, licensee, concessionaire, orother right o[occupancy. 124 ^T}wnnr` nncuus the person or persons ho|cUuQ fee simple tb|c to a Pnroc\ of record, ociothe event any yurod is m)|d under areal estate installment yo1cs contract, the record vendee o,vcndcco under said contract, including any natural person, corporation, partnership, limited liability company, association, trustee or other legal entity. 1.25 "Parcel" means, individually, any of North Parcel A, North Parcel B, North Parcel C, or South Parcel A. 126 "Parcels" means, collectively, North Parcel /\, North Parcel l5` North Parcel C, and South Parcel A. 1.27 "Plaza" rneans the outdoor plaza on Parcel C, consisting of all of Parcel C except for (i) the Commons; and (ii) the cafd seating area located north of the Commons. 128 means the land legally described inthe attached Exhibit A and the easements, rights and uppudcooncom luuuicd on, belonging to or used in connection with such land, and more commonly known as Tukwila Village. 129 "South Parcel A" means Parcel A o[City n[Tukwila Lot Consolidation No. i|h' 003 1, recorded under King County Recording No. 2016062990000 1. 1.30 "Total Interest" means the sum of each Parcel's Allocated Share. 1.31 "Transition Dube` means the earlier to occur of. kA the date Declarant no longer owns any of the Parcels; or (b) the du10 Declarant so determines in its sole discretion by recording nnotice recorded in the real property records ofKin�Coun��, Washington. Declaration mccx`(Tukwila Village) mmn -3 ARTICLE 2. ALLOCATED SHARE The Allocated Share assigned to the Parcels is as follows: Parcel Allocated Share North Parcel A 23/40% North Parcel 0 26.90% North Parcel C 0.83Y6 South Parcel /\ 48.8196 ARIICUBl COMMON AREAS The Common Areas are: (a) The Access Roads, including the paving and associated curbing; (b) All sidewalks within the Property; kJ All public, surface level parking otuUx now orhereafter constructed on any of the (d) Those portions of the Commons which are designated as "Common Elements" of "Building U on the Survey Map and Plans for Tukwila Village, a Condominium. Ui Any "Tukwila Village" noouunneo1 or cntozoccvvoy aignuge, and its proximate associated landscaping; (u) All o[the storm drainage outside of1hocxkerio,so[tbc Buildings, excluding any gutters and downspouts on any Building, but including all pipes, swales, filters, and catch basins; (h) All storm drainage detention vaults serving North Parcel C o, other portions of the Common Area; (i) All lighting for the Access Roads, the Commons, the 9|zru, the sidewalks, and the Declaration ofCCRs (Tukwila Village) 071817 0) All oh|iLy lines and conduits located outside of the exteriors of the Buildings which serve more than one Building and are not otherwise maintained by any municipality or utility company. ARTlCLE4. EASEMENTS 4.1 Vehicular and Pedestrian Access. Each Owner (and their respective officers, agents, employees, guests, customers, \iocmmeep and invitees) shall have: hA a p000mncnt non- exclusive oascnosnt for vehicular ingress, cgrcaa and access from Tukwila lntorou1ioou| Boulevard and S. 144"' Street; and (b)upermanent non-exclusive cuucnncut for pedestrian and vehicular access to use all access roads and sidewalks now orhereafter constructed on any of the Parcels, as provided inthe Access and Shared Parking Easement. 42 Shared Parking. Each Owner (and their respective officers, agents, employees, guests, customers, licensees and invitees) shall have n reciprocal, nonexclusive cumcmuut for shared non-residential parking as provided in the Access and Shared Parking Easement. 4.3 Trash Enclosure. Each Owner (and their respective officers, agents, employees, guests, customers, licensees and invitees) shall have ureciprocal, nonexclusive easement to access and use the trash enclosure located on Parcel /\, as provided in the Access and Shared Parking Easement. 4'4 Storm Drainage. Each Owner (and their respective officers, agents, guests, customers, |kznoeco and invitees) ohoJ| have easements for the installation, use, maintenance, repair, alteration, replacement, relocation and /cmnvu\ of storm drains, pipes, svvu|cauod uo1ob basins located on any ofthe Parcels. 4.5 Street Lighting. Each Owner (and their respective officers, agents, employees, guests, ouyk»nncrs, licensees and invitees) shall have cuxoonerts for the installation, use, maintenance, ccpuic replacement, relocation and ocnnovu| of exterior lighting for the Access Roads, the Commons, the Plaza, the sidewalks, and the public, surface level parking stalls onall of the Parcels. 4.6 Utilities. Except for areas occupied or to be occupied by any Building, the Declarant shall have authority during the Development period N grant utility easements, licenses, and permits upon, over, under and across portions of the y,npcdy as reasonably necessary for the use, improvement, operation, maintenance and repair of the Property and improvements thereon. 4.7 Manager Functions. Tothe extent not otherwise created in this Declaration, there is hereby reserved to the Manu�ersuoh euseoocnin as are necessary for the Manager to per[hnnits duties and obligations as set forth in this Declaration. 4.8 Recorded Easements. Each Parcel shall be sukicct to any other easements of record as of the date this Declaration is recorded. Declaration orccxs(I'Lix"/aVillage) m/mr -5' ARTICLE 5. PERMITTED USES AND USE RESTRICTIONS 5.1 Permitted Uses. During the term of this Declaration, each Parcel shall be used exclusively for the uxcn and purposes provided for in this Section, and such auoU|ucy puq`oaoo as are reasonably required therefor, subject to oonop|iuuco with the dzcu-uppiicah|c zoning requirements ofthe Tukwila Municipal Code: u- North Parcel A. North Parcel A may he used only for the following uses: (i) multi -family residential ccoto| housing, with at least eighty percent (80%) of units designated for seniors; (ii) retail uses; (iii) office uses; and (iv) live- work h. North Parcel B. North Parcel B may be used only for the following uses: (i) onu\d-fhmih/ residential rental housing, with at least eighty percent (80Y6) ofunits designated for seniors; (ii) retail uses; (iii)office uses; and (iv) live- work o. North Parcel C. North Parcel Cmay hcused only for the following uses: (i)a public amenity, featuring the Commons and the Plaza, and serving uvariety of uxccn including ccsidcnhu|` retail and c0000ucncia| b:oonLs, visitors, and members of the general public; and (ii)retail uses. d. South Parcel A. South Parcel A may be used only for the following uses: (i) multi -family residential ncotu| housing for low -to -moderate income seniors; (ii) retail uses; (iii) office uses; and (iv) a police neighborhood ,csoocoe center. 52 Prohibited Uses. Notwithstanding the provisions of Section 5.1 to the contrary, the Property shall not heused for any industrial, manufacturing, or warehousing uses, nor shall the Property heused for any ofthe following (the "Prohibited Nncs"): (i) any use which emits or results in strong, unusual or offensive odors, fumes, dust or vapors; (ii) any operation primarily used as u storage facility and any assembling, manufacturing, distilling, refining, ynncbinA, auriuu\turu|, or mining operation; (iii) any "second hund" ntnnc or "surplus" store; (iv) any nonhi|c home park, trailer court, |uho, camp, or junkyard; (v) any dunnping, disposing, incineration, or reduction of garbage (exclusive of trash containers located near the rear o[any Building and the trash cndooucc located on Parcel /\); (vi) any fire sale, bankruptcy so|c (unless pursuant toucourt nnjch, auction house operation, fictitious going -out -of -business xo|c, lost - our -lease no|e or similarly advertised event; (vii) any central laundry, dry cleaning plant, or |uundronoa1; /viii\ any automobile, truck, trailer, bout, or recreational vehicle sales, leasing, display or body shop repair operation; (ix) any animal raising or hounding facilities; (x) any mortuary or funeral home; (xi) any adult book -store or pornographic use; (xii) any nn'cu||cd ^^hcud shop", or other establishment primarily selling or exhibiting drug -related punaphcnou|iu; (xiii) any flea market; (xiv)any gambling facility oroperation, including but not limited to: off- track poker/black-jack/keno machines or similar devices; or bingo hall; (xv) any pawn shop, gun shop, or tattoo parlor; (xvi) any car wash, automobile repair shop, or any business servicing motor vehicles in any respect, including, without limitation, any quick lube oil change service, tire center or gasoline or service station or facility; or (xvii) any unlawful use. 5.3 Common Area Uses. Except for the permitted use of the easements granted in this Declaration or in any other easements of record as of the date this Declaration, as the same may be amended, the Common Areas shall be used only for purposes which are incidental to the use of the Parcels. ARTICLE 6. MANAGER DUTIES AND OBLIGATIONS 6.1 Transferability. The obligations of each Owner under this Declaration are appurtenant to the Parcel, and shall not be assigned, transferred, pledged, hypothecated, conveyed or alienated in any way except upon the transfer of record title to said Parcel and then only to the transferee of record title to such Parcel. Any attempt to make a prohibited transfer shall be void. Any transfer of record title to a Parcel shall operate automatically to transfer the rights, duties and obligations under this Declaration to the new Owner thereof. 6.2 Authority of Manager. The Manager, for the benefit of the Owners, shall have all powers and authority permitted to the Manager under and subject to this Declaration, including any other powers necessary and proper for the accomplishment of the Managers duties and responsibilities herein. 6.3 Maintenance of Common Areas. The Manager shall maintain all of the Common Areas in good condition and repair. Manager's maintenance obligations hereunder shall include, without limitation, the following: 6.3.1 Perform all obligations of the "Lead Owner" under the Access and Shared Parking Easement. 6.3.2 Periodically remove papers, debris, filth, and refuse, and wash or thoroughly sweep to the extent reasonably necessary to keep the Common Areas in a neat, clean and orderly condition. 6.3.3 Provide electricity and landscape irrigation to the Common Areas. 6.3.4 Operate, keep in repair and replace all Common Area lighting facilities, including light standards, wires, conduits, lamps, bulbs, ballasts and lenses, time clocks and circuit breakers and, when the Owners agree the then existing system has become inadequate or obsolete by then current standards, replacing the Common Area lighting systems. 6.3.5 Keep the Common Area well lit during all hours of darkness. Declaration ofCCRs (Tukwila Village) 071817 - 7 - 0].0 Maintain, repair, repave, and resurface the &oocns Roads, all sidewalks, walkways, curbs, islands orother paved surfaces within the Property, and all public, surface level parking otu||n located on the Property so as to maintain them in good, smooth and evenly covered condition with the type of surfacing material and striping originally installed or nuch substitute therefor as sbuU in all respects he equal in quality, use and durability, and ,csLripc parking areas and drive aisles asnecessary to maintain parking space designations and truOio direction, and keep clearly marked fire lanes, loading zones, no parking areas and pedestrian cross -walks. 6.3.7 Remove snow and ice and apply salt osnecessary. 0.3.8 Maintain, repairaud replace landscape plantings, trees and ubn/ho within the Common Area in an attractive and healthy condition, trimmed and weed -free. 6.3.9 Maintain, repair and replace irrigation systems. 6.3.10 Maintain, repair and replace the utility lines and conduits which are part of the Common Areas and not otherwise maintained by any municipality or utility 6.3.11 Maintain, repairund ccphaoc all Common Area signs, sign lighting, and any necessary appropriate directional signs, markers and lines. 6'4 Muiob:ouncc Budget. At least thirty (30) days prior to the beginning of each calendar year, the Manager obu|| submit to the (}vvnccs u proposed budget setting forth the osdnoutcd Con`nnuo Expenses for the ensuing cu|oudac year (the ^^pnuponcd Maintenance Budget"). The Proposed Maintenance Budget ohuU include the Library Pu,re1`nAllocated Sbucc Linder the Aoocsx and 8bun:d Parking Easement. The Owners shall ddhc, approve the Proposed Maintenance Budget or adopt any modifications thereto an may be approved in p/hdnQ by ()wncn holding at least two thirds (66.6796) of the Total )nioccot` and the same shall be the "Approved Maintenance BudgeL" The (}vvneo shall pay the Manager in tvvo\vc (12) equal monthly iuuta|\nucnty on the first day of each calendar month, their Allocated 9burc of the estimated Common Expenses based upon the estimates in the Approved Maintenance Budget. Within ninety (90) days after the end of each calendar year, the K4unugec xbo|\ provide the ()vvnco with a certified statement setting forth the uutuu| Common Expenses paid by the Manager during the previous calendar year and each [)vvncr`o /\||ooa1cd Share of the Common Expenses. The Manager shall keep its books ofaccounts and records concerning such actual costs o[the Common Expenses in accordance with generally accepted accounting principles and shall maintain all such hooks and records for umininnuno of five (5) years. If the amount paid by the Owner o[any Parcel shall have exceeded its &||ooaicd Share, the Manager shall refund the excess to such Owner within thirty (30) days after ouch certified statement is delivered or, if the amount paid by an Owner for Such calendar year is less than its Allocated Share, such Owner sbu|| pay the balance of its Allocated Shun: to the Manager within thirty (30) days after receipt of such certified stutcrncnL Within threc(3) years after receipt ofucertified staienucnL each Owner shall have the right to audit the Manager's hooks and records pertaining to the Common oouumon ^/ccxs(Tukwila Village) m/m7 -8- Expenses for the calendar year covered by such certified statement. In the event that such audit discloses any error in the determination of the actual Common Expenses, the Manager shall refund to such Owner the excess amount paid by such Owner (if any) for such calendar year within thirty (30) days following receipt of the results of such audit or, if the amount paid by an Owner for such calendar year is less than its Allocated Share, such Owner shall pay the unpaid balance of its Allocated Share to Manager within thirty (30) days following receipt of the results of such audit. If the audit discloses a discrepancy which results in an owner having overpaid its Allocated Share of Common Expenses by more than five percent (5.00%), Manager shall pay the reasonable costs of the audit; otherwise the applicable Owner shall pay the costs of the audit. 6.5 Limitations upon Expenditures. The Manager shall have no authority to make any expenditure which exceeds the amount in the Approved Maintenance Budget by more than ten percent (10%) without first obtaining the written consent of Owners holding at least two thirds (66.67%) of the Total Interest. 6.6 Reserve Funds. In establishing the Approved Maintenance Budget, the Owners may elect to make provision for creating, funding and maintaining reasonable reserves for contingencies and operations and for the operation, maintenance, repair, replacement and acquisition of Easements and Common Areas and may take into account any expected income and any surplus available from the prior year's operating fund. 6.7 Voting. 6.7.1 Voting Power. Each Owner shall have a vote equal to the Allocated Share for such Owner's Parcel, and the Total Interest for voting purposes shall be the sum of all Parcels' Allocated Shares. 6.7.2 Meetings, Notices and Quoroms. Any annual and special meetings of the Owners, and all procedures therefor, including required notices and quorums, and the means by which votes shall be cast and recognized, including voting by proxy or written consent, shall be as provided in written procedures approved in writing by Owners holding at least two thirds (66.67%) of the Total Interest. 6.7.3 Declarant Approval. Notwithstanding the foregoing, during the Development Period, no decision or course of action may be approved by the Owners without the written approval of the Declarant. 6.8 No Personal Liability for Decisions. So long as the Manager has acted in good faith, without gross negligence or willful or intentional misconduct, upon the basis of such information as may be possessed by such person, the Manager shall not be personally liable to any Owner, or other party, for any damage, loss or prejudice suffered or claimed on account of any act, omission, error, negligence (except gross negligence), decision, or failure to make a decision. 6.9 Indemnification of Manager. Each Owner agrees to indemnify the Manager for such Owner's Allocated Share of all expenses and liabilities, including attorneys fees, reasonably Declaration ofCCRs (Tukwila Village) 071817 - 9 - incurred or imposed by the Manager in connection with any claim or proceeding brought by u third party and arising out of the Manager's good faith performance of its duties and responsibilities under this Doo|uot(nn, except to the extent such duinn or proceeding arising out ofthe bad faith, gross negligence orwillful orintentional misconduct of the Manager. 6.10 Arbitration. In the event of dispute among the Owners and/or the Manager which cannot be resolved through the voting procedures provided for under the Declaration or by mere compliance with the provisions o[the [)ec}uokioo, such dispute shall be determined by an arbitrator in an arbitration proceeding unless (a) the remedy sought is not available in arbitration, (h)any person reasonably necessary for acomplete adjudication of the disputed issues cannot bc compelled to join the arbitration ur(c)the matter involves u foreclosure of any Mortgage, or(d) the amount iudispute exceeds $l00,000. Such proceeding shall heconducted aoexpeditiously as possible and in accordance with the rules of the American Arbitration Association. The arbitrator shall be appointed with the uppnuvu| of Owners holding at least two thirds (66.07Y6)of the Total Interest; provided, however, if no such arbitrator is so appointed or approved, then any Owner may cause the appointment ofuo arbitrator by appropriate petition to any Superior Court having jurisdiction of the p,npcuy. Such arbitrator shall be neutral and independent and be an attorney licensed to practice law in the State of Washington and have rousnoab(c prior experience. All of the costs associated with the arbitration proceeding shall be shared equally by the Owners involved; provided, however, the legal fees of any attorney retained by an individual Owner shall be paid by such (Jvvncc The ruling ofthe arbitrator shall he consistent with the Declaration, but otherwise shall hcfinal and binding upon the Owners. 6.11Manager's Records and Funds. 6]1.1 Records and Audits. The Manager shall keep financial records and retain current copies of the Declaration and all of the s books and records in connection with its duties and obligations under this Declaration. All financial and other rcono1u, including, but not limited to, checks, bank records and invoices, shall be noudo available for examination and copying by any Owner, u(}"/ncc'a authorized ngouto and all Mortgagees during nonnu| business hours. At least annually, the Muougc/ obo|| prepare, or cause to he prepared, an accounting of all the Common Expenses in accordance with generally accepted accounting principles. 6]12 Operating Account. The Manager shall establish a separate operating account under the narne of the Manager ("Operating Account"). All contributions hrorn ()vvncrs ohu\| be deposited into the Operating Account, and all expenditures made by Manager in connection with the Common Expenses shall be nuudc fronn the []pccubng Account. 6.11.3 Fund Commingling. Manager shall not cnmming|cthe funds deposited hv Owners into the Operating Account with the funds of Manager or any other association or ARTICLB7. ASSESSMENTS 7.1 Owners' Obligations. Each Owner shall hcobligated tnpay its Allocated Share of Common Fxnunocn and special oburgcn made pursuant to this Declaration in equal monthly inmLu\|nocuts on or before the first day of each month during such year, or in such other reasonable manner asthe Manager shall designate. No Owner may exempt itself from liability for payment of assessments for any reason, including p/uivnc of use or enjoyment of any of the Easements orCommon Areas nrabandonment ofthe Owner's Parcel. 72 Common Expenses. Common Expenses shall include: bA Expenses of operation, maintenance, repair and ren/oosmcot of the Common Areas; (h) Bills for any mb|it« services furnished to the Common Areas or to Parcels that are not separately metered, including irrigation of the landscaping; (c) Any general operating reserve established by the Owners from time to (d) Ilesen'cm for replacements and deferred maintenance established by the Owners from time to time; (e) Any deficit inCommon Expenses for any prior period; and (f) Any other items properly chargeable as expenses of the Manager. 7.3 Commencement ofAssessments. Assessments for each Parcel shall commence upon the IJcc|uruut's conveyance of such Parcel to u person other than a Declarant. No /\secosnocotm mbd\ be payable on any Parcel ovvnoj by [)co]urunt. &Dcr /\oacsou)cnto have connnzeuucd for all Parcels, and except as otherwise provided in this [)culuotioo, Aoscxsnornto must be onudu against all Pu,oc|m based on their Allocated Share of Common Expense Liability and the Approved Maintenance Budget. 74 Assessment Certificate. The MunuAcc upon written request, xhuJ| furnish to u Owner and, ifapplicable, to its Mortgagee, ustatcnucnt signed by an officer nrauthorized agent of the K4unoQcr setting forth the amount of unpaid Assessments against that Parcel. The statement ohu|| be furnished within fifteen (15) days uRerncceipt nfthc request. ARTICLE8. RIGHTS AND REMEDIES Q.| Enforcement. Each {}vvncr and the Manager shall comply strictly with the provisions ofthis Declaration. Failure tocomply xhoU be grounds for an action to rcoovcrsunns due for damages, o, injunctive relief, or both, maintainable by the aggrieved party (including onOwner or the Manager) against the party (including an Owner or the Manager) failing to comply. 82 Access to Property. The Manager and its agents or employees may enter any Parcel when ouueooncy in connection with any maintenance, landscaping or construction for which the Manager isresponsible orinthe event of emergencies. Such entry shall bumade with as little inconvenience to the (}vvnnrs o, ()soupunb as practicable, and any dnrnogc caused thereby shall be repaired by the Manager and paid for as a Common Expense if the entry was due to an emergency, or for the purpose of maintenance or repairs to Easements or Common /\ncas where the ccpuicn were undertaken by or under the direction or authority of the Manager; provided, if the repairs or :nuintcnuoue were necessitated by or for the Parcel entered or its Owners, or requested by its Owners, the costs thereof shall be specially charged to such Parcel. Q] Owner Liability. Each Assessment shall be the joint and several obligation of the Owner orOwners ofthe Parcel to which the sornc are ouxcsscd as nfthe time the Assessment is due. Following a voluntary conveyance of Parcel the grantee thereof shall be jointly and severally )iub\c with the grantor for all unpaid Assessments against the lu1b:r up to the time of the grantor's conveyance, without prejudice to the grantee's right to recover from the grantor the unuouotx paid by the grantee therefor. 84 Mortgagee ljahUbv The holder of Mortgage or other purchaser of a Parcel vvbicb obtains the right of possession of the Parcel through foreclosure shall not be liable for /\sxossnocnto or installments tbccco[ that hcounnc due prior to such hobt of possession. Foreclosure n[aMortgage does not relieve the prior Owner ofpersonal liability for Assessments accruing against the Parcel prior tothe date of such oa}c as provided in this section. 8.5 Delinquent Assessments. As long as Assessments on any Parcel remain delinquent, the defaulting ()vvoc, shall not be entitled to vote on any rnutkr under this [lcdacutiou, and for purposes ofany vote taken during such period, the Total Interest shall be reduced toexclude the Allocated Share o[the defaulting Owner. lfthe defaulting Owner ixalso the Manager, the right of the Manager to collect Assessments from the other (}vvoccy ybul| be suspended until such tirne as the defaulting Owner's Assessments are no longer delinquent. 8.0 Late Charges. The Owners may from time to time establish reasonable |utc charges and u rate of interest to he charged on all subsequent delinquent Assessments or installments thereof. In the absence o[another established rate, delinquent /\nsenonocnts shall bear interest from the date of delinquency at the rate of twelve percent (12%) per annum. 87 Attorneys' Fees. The prevailing party shall be entitled to recover any costs and reasonable attorneys' fees incurred in connection with the enforcement of this Declaration, including the ro||cobon of delinquent Assessments, whether or not such collection uohvidcs result in suit being commenced or prosecuted to judgnnenL In addition, the prevailing party shall be entitled to recover costs and reasonable attorneys' fees if it prevails on appeal and in the enforcement o[u'udgnocnL Declaration accn,(Tukwila Village) mmn 12 ARTICLE 9. INSURANCE 9.1 Liability Insurance. Each Owner, at its sole expense, shall obtain and continuously maintain commercial general liability insurance with respect to claims arising in connection with such Owner's Parcel (including any Common Area located thereon), including without limitation, contractual liability coverage insuring, among other things, the Owner's indemnity obligations under this Declaration. Such insurance shall be written with a reputable insurer licensed to do business in the State of Washington. The limits of liability of such insurance will be no less than Two Million Dollars ($2,000,000.00) per occurrence covering claims for injury to person, loss of life, and damage to property and no less than Five Million Dollars ($5,000,000.00) covering such claims in the aggregate during any policy year. The above limits may be achieved through a combination of underlying and excess or umbrella policies. Policies of commercial general liability insurance maintained by or on behalf of each Owner shall name all other Owners and the Manager as additional insureds, and each of then shall, upon written request of any Owner or Manager, furnish certificates of such insurance or other satisfactory evidence of such insurance at any time during the term hereof. 9.2 Property Insurance. Each Owner shall maintain commercial property coverage insurance on all improvements located on such Owner's Parcel, including any Common Area improvements. Such insurance policies shall be written on a commercially reasonable policy form, with a reputable insurer licensed to do business in the State of Washington, have a policy limit with respect to the Common Area improvements equal to their replacement cost, shall be issued with "Replacement Cost" valuation, and a deductible with respect to the Common Area property and improvements that is no greater than $10,000. In the event of an insured loss to the Common Area property and improvements, all indemnification and/or compensation for damage to Common Area property improvements shall be payable by the insurance carrier directly to the Manager and used by the Manager to repair and restore such Common Area property. 9.3 Waiver of Subrogation. No Owner, Occupant or Manager shall be liable to another Owner, Occupant or Manager, or to any insurance company (by way of subrogation or otherwise) for any loss or damage to the Common Area or a building or facility or structure, even though such loss or damage might have been occasioned by the act or negligence of such Owner, Occupant or Manager, if and to the extent such loss or damage is covered by an insurance policy maintained by such Owner, Occupant or Manager. 9.4 Indemnity by Owners. Each Owner ("Indemnitor") shall indemnify, defend, protect and hold harmless each and all other Owners and the Manager (each such party, the "Indemnified Party") from and against any and all claims, demands, causes of action or judgments, loss, and all reasonable cost and expense (including all reasonable expenses incurred in investigating or resisting the same, such as reasonable attorneys' fees and court costs) for injury to person, loss of life or damage to property ("Claims and Damages"): (a) arising out of or resulting from any construction activities in the Property performed by or at the request of the Indemnitor, except if caused by the sole Declaration of CCRs (Tukwila Village) 071817 - 13 - negligence or willful act or omission by the Indemnified Party or its employees, contractors or agents; or; (b) arising Out nforresulting fronnoccurrences onthe bndemnkor's Parcel, but excluding Claims and [annuAex to the csb:ot arising nut of or resulting from occurrences caused by the negligence orwillful act nrnnnisoioo in whole o, in part of the Indemnified Party, or its invitees, employees, contractors or agents; kJ mhxipQ out of the sole negligence o, vvi|lfb| act or omission of the Dodcmnbororthe Occupant(s) of the lodcmnkor's or the cnop|oyccs contractors, or agents of the lndcnuodor or Occupant(s) of the |ndcmniiore 9.5 Indemnity by Manager. The Manager shall indemnify, defend, protect and hold harmless each of the Owners and each Occupant (each such Owner and Occupant is referred to severally in this Section as the "Indemnified Party") from and against any and all Claims and [)ncnaQcs arising out of or resulting from the gross negligence or willful or intentional misconduct of the Manager in the performance of its obligations hereunder, except to the extent caused by the negligence or willful misconduct of the lodcnonificd Party or its employees, contractors or agents. ARTICLE l0. REPAIR 0FSIGNIFICANT DAMAGE 10.1 Definitions. As used in this /\rdc|c, the tcun "Damage" roeuon damage or destruction, vvbctbcr o, not caused by casualty, to any part of the Conunonn /\reuu that the Manager is responsible to maintain or repair for which funds are not avui|uh1c in the Approved Maintenance Budget to make timely repairs. As used in this Article, the term "Repair" means to repair, reconstruct, rebuild orrestore the improvement which suffered [}annuAe to substantially the sunnc condition in which they existed prior to the dunuugc or destruction. As used in this Article, the term "Emergency Work" means the work the Manager deems reasonably necessary to avoid further damage, destruction or substantial diminution in value to the improvements and to reasonably protect the Owners from liability arising out ofthe condition of the Property. 10.2 Initial Manager Determinations. /n the event of Damage to any part of the Common Area, the Manager shall promptly, and in all events within thirty (30) days after the date of Darnage, or, if the Darnage did not occur at a particular identifiable tirne, after the date of its discovery, nnukc the following determinations with respect thereto employing such advice as the Manager deems advisable: (a) The nature and extent of theCarnuge, together with an inventory of the improvements and property directly affected thereby; (h) A reasonably re|iuh|c estimate of the cost to Repair the Damage, which estimate shall, if reasonably practicable, he based upon u finn bid obtained frnn/ u responsible contractor; Declaration "/ccm(nm.~mVillage) nnmr /4 (c) The anticipated insurance proceeds,if any, to beavailable from insurance covering the loss based onthe amount paid orinitially offered bythe insurer; /d\ The amount, if any, that the estimated cost of Repair exceeds the anticipated insurance proceeds therefor and the amount ofAssessment toeach Parcel if such cxocos was paid as aCoonnuon Expense and specially assessed against all the Punoc\o in proportion to their Allocated Share in the Common Areas; and (e) Whether such [)unmugcshould heRepaired. 10.3 Notice ofDeterminations. The Manager shall promptly, and in all events within thirty (30) days after the date of Damage, provide each Owner with u written notice summarizing the Manager's initial determination. If the Manager fails to do so within said thirty (30) days, tbco any Owner or Mortgagee may noukc the detcnnioution required under this section and give the notice required under this section. 10,4 Restoration. lnthe event insurance proceedsare available toRepair the IJuonugc, the Manager oboJ{ promptly Repair the Damage unless (a) Repair would be illegal under any state or local bcu|d` or safety statute orordinance; or(h) seventy-five peroeot(75Y&) of the Total lotcrcot votes not to Repair. Even if the I)unnugc is not to be Repaired, the Manager ohu|| still have authority to pccfhrnl Emergency Work. The cost ofRepair and Emergency Work in excess ofinsurance proceeds and reserves shall hcuCommon Expense. 10.5 Manager's Authority. Without limiting the rights and powers of the Manager gcuccul|y, ifany damage tothe Common Area is to be Repaired by the Monoger, the Manager shall have the authority to employ architects and attorneys, advertise for bids, let contracts to contractors and others, and totake Such other action usthe Manager reasonably determines tohc necessary to effectuate the Repair. The Manager may authorize the insurance carrier to proceed with Repair upon Manager's reasonable satisfaction that such work will hcappropriately carried out. Manager may enter into u written agreement with any reputable Onunuiu| institution or trust or escrow company to engage sucb fimo or institution to act as an insurance trustee io adjust and settle any c|uino for |oou in excess of Fifty Thousand Dollars ($50,000), or for such firm or institution to collect the insurance proceeds and carry out the provisions o[this Article. 10.6 Damage not Restored. If all or any portion of the damaged portions of the Cononoou Areas are not Repaired (u) the insurance proceeds attributable to the dannaged Common Areas shall be used torestore the dumagujuo:u; (h)tbc insurance proceeds attributable to Parcels vvbioh are not Repaired shall he distributed to the [)vvncm of those Parcels, or to |ionho|dcrx, as their interests may appear; and (o) the remainder of the proceeds shall be distributed to all the Owners or )icnho|dco, as their interests may appear, in proportion to their respective Common Expense Liabilities. ARTICLE |\. CONDEMNATION Declaration vrccx,(»ikw/nVillage) mmn 15 l|.l Condemnation of Parcels. Each Owner shall he entitled k>the award made for any cnndcu)oa1imm of its Parcel, including any portion of the Common Areas vvbicb are |nootcd oosuch Owner's Parcel. 112 s Participation. Unless the affected Owners decide otherwise in n particular case, the Manager may be a party to any proceedings, negotiations, octt\cnucnts or agreements regarding a condemnation of any part of the Common Areas. &RTICLGl2. CONSTRUCTION AND INTERPRETATION 12.1 Partial Invalidity. If any term, covenant, condition, restriction o, reservation contained in this [lcc|urutiou should he held to be unenforceable or invalid by any court of onnopetcot jurisdiction, such holding ybuU not invalidate this L)eo|uotiou and nhoU he limited to the extent practicable tothe provision so invalidated. 122 Captions and Exhibits. Captions given k/the various Articles and sections herein are for convenience only and are not intended to modify oraffect the meaning ofany nfthe substantive provisions hereof. The exhibits referred in herein and attached bcm:Lo sbui\ he deemed incorporated herein by reference as though fully set forth where such reference is made. 12.3 Adjustments for loOodon. Any dollar amounts specified in this TJcc|u,utkoo in connection with any proposed action or decision of the Manager may, in the discretion of the Manager, be increased proportionately by the increase in the consumer price index for the City of Seattle, Washington for All Urban Consumers, prepared by the United 8to1ex Dcpnnnncot of Labor to adjust for any changes in the value of the dollar uMcc the effective date of this Declaration. 12.4 Rule Against Perpetuities. The rule against perpetuities may not be applied to defeat any provision of this Declaration. 12.5 No Waiver ofStrict Performance. The failure ofthe Manager ioany one ormore instances to insist upon the strict performance of this Declaration, or to exercise any right or option contained in such documents, or to serve any notice or to institute any action, shall not he construed as u waiver or u relinquishment for the [utupc of such term, covenant, condition, restriction or reservation, but such term, covenant, condition, restriction or reservation shu!l remain in full force and effect. The receipt by the Manager o[any delinquent Assessment from an Owner, with knowledge ofany Such breach shall not he dccnncd owaiver ofsuch breach, and no waiver hythe Manager nfany provision hereof shall be dccnncd to have been made unless expressed inwriting and signed bythe Manager. 12.6 Delivery of Notice. Any notice permitted or required to be delivered under the provisions of this Declaration may bedelivered either personally orbvmail. If delivery is made by mail, any such notice shall be deemed to have been delivered twenty-four(24) hours after copy has been deposited in the United States muiLpostage prepaid, hyfirst class mail, addressed to the person entitled to such notice at the most recent address given by suuh person to the Manager. Ifooother nnui|ing,address has been given to the Manager by any ofthe persons no entitled, notice iothe Owner ofany Parcel ahoJ| he sufficient if mailed k)the mailing address of record for such Parcel according to the King County Assessor. Mailing addresses may be changed from time tohouchyu1 least fifteen (15) days' prior written notice to the Manager. 12.7 Declarant Right to Assign. The Declarant may assign any and all ofits rights, powers, obligations, privileges, and interest under this Declaration to any other person or entity, and in such case any such successor or assignee may exercise and enjoy such rights, powers, privileges and interest and shall be responsible for such obligations to the nuoue extent as [)cc|urunt would have been had such assignment not been made. 12.8 Amendment. This Declaration may bemnended only by an instrument signed by one hundred percent (1O0%)ofthe Total Interest. Any amendment must be recorded in the real property records of King County, VYnshio§¢oo. Notwithstanding the foregoing, for n period of forty (40) ycum from the date this Declaration is ccoonJcd, no uoueudnocnt to this Declaration shall be effective unless it is also signed by an authorized representative of the City of Tukwila. ARTCLEl3. EFFECTIVE DATE 13.1 Effective Date. This Declaration shall take effect upon recording. IN W|7IuBSS WBOBf0E(]P, Declarant has caused this Declaration tohe executed as of the day and year first set forth above. Declarant: CITY (JPTl]KVV{LA`Washington non -charter optional municipal code city By: Name: Allan Ekberg Title: Mayor Approved as to form: ACKNOWLEDGMENT STATE (}FVYA8B0NGTON \ )ms. COUNTY OF KING IHEREBY CERTIFY that onthis 11n~dayo[July, 2O}7,before me, the undersigned, u notary public in and for the State of Washington, duly commissioned and sworn, personally appeared A||uu Ekberg, to me known to be the Mayor of the CITY OF TU}{WlLA, a Washington non -charter optional municipal code city, the municipal code city that executed the within and foregoing instrument, and acknowledged the said instrument to he the free and voluntary act and deed of said municipal ondc city for the uses and purposes therein nucudoued, and on nutb stated that hcnrshe was authorized to execute said instrument onbehalf ofsaid municipal code city. WITNESS my hand and official seal the day and year certificate first above written. / Name) Residing at, ����� m\Q My appointment expires EXHIBIT A LEGAL DESCRIPTION PARCELS A, B AND C OF CITY OF TUKWILA LOT CONSOLIDATION NO. L13-021, ACCORDING TO THAT LOT CONSOLIDATION RECORDED UNDER RECORDING NO. 20150428900001, IN KING COUNTY, WASHINGTON. PARCEL A OF CITY OF TUKWILA LOT CONSOLIDATION NO. L16-031, ACCORDING TO THAT LOT CONSOLIDATION RECORDED UNDER RECORDING NO. 20160629900001, WHICH WAS AMENDED UNDER RECORDING NO. 20160809900003, IN KING COUNTY, WASHINGTON. Declaration ofCCRs (Tukwila Village) 071817 - 19 -