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F3. Stillwood Farms Final PlatREPORT TO: FROM: SUBJECT: MEETING DATE: Doug Russell, City Manager Jarod Nygren, Senior Planner Final Plat request for Stillwood Farms July 20, 2015 Planning Department 201 1" Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.katispelLcotn/planning BACKGROUND: Mike Fraser, dba Fraser Management and Consulting, PLLC, has submitted a request for final plat approval of Stillwood Farms, a 4 lot townhouse subdivision. The site contains .5475 acres of land and is located on the east side of North Riding Road. The site is also bounded by Three Mile Drive to the south and Vista Loop to the north east. The subdivision can be more specifically described as the re -subdivision of Lot 1 of Three Mile Views subdivision, located in the SE4 SW4 of Section 1, Township 28N, Range 22W, P.M.M., Flathead County, Montana. The Kalispell City Council approved the preliminary plat with 11 conditions at their meeting on February 17, 2015, by Resolution No. 5702. The original approval was valid for a period of three years. The developer has also submitted a cash -in -lieu of parklands payment of $3,960 based on a land value of $44,000 per acre, and a parkland requirement of .09 acres. All 11 conditions of the preliminary plat have been adequately met or otherwise adequately addressed. RECOMMENDATION: It is recommended that the City Council approve the final plat for Stillwood Farms. FISCAL EFFECTS: Positive impacts once developed. ALTERNATIVES: Deny the request. ATTACHMENTS: Final plat compliance with conditions letter and associated attachments. c: Aimee Brunckhorst, Kalispell City Clerk Planning Department 201 V Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalispell.com/planning July 13, 2015 Doug Russell, City Manager City of Kalispell 201 1"Ave E Kalispell, MT 59901 Re: Final Plat Request for Stillwood Farms Dear Doug: Mike Fraser, dba Fraser Management and Consulting, PLLC, has submitted a request for final plat approval of Stillwood Farms, a 4 lot townhouse subdivision. The site contains .5475 acres of land and is located on the east side of North Riding Road. The site is also bounded by Three Mile Drive to the south and Vista Loop to the north east. The subdivision can be more specifically described as the re - subdivision of Lot 1 of Three Mile Views subdivision, located in the SE4 SW4 of Section 1, Township 28N, Range 22W, P.M.M., Flathead County, Montana. The Kalispell City Council approved the preliminary plat with 11 conditions at their meeting on February 17, 2015, by Resolution No. 5702. The original approval was valid for a period of three years. The developer has submitted a cash -in -lieu of parklands payment of $3,960 based on a land value of $44,000 per acre, and a parkland requirement of .09 acres. All 11 conditions of the preliminary plat have been adequately met or otherwise adequately addressed. The following report summarizes the applicant's compliance with the conditions of approval contained within Resolution No. 5702. COMPLIANCE WITH CONDITIONS OF APPROVAL General Conditions: The development of the site shall be in substantial compliance with the application submitted, the site plan, materials and other specifications as well as any additional conditions associated with the preliminary plat as approved by the city council. (Kalispell Subdivision Regulations, Appendix C — Final Plat). Staff Response: This condition has been met. The attached final plat is in substantial compliance with the approved preliminary plat. 2. The preliminary plat approval shall be valid for a period of three years from the date of approval. (Kalispell Subdivision Regulations, Section 28.2.06(E)). Staff Response: This condition has been met. The preliminary plat was approved on February 17, 2015. Prior to final plat. 3. The developer shall submit to the Kalispell Public Works Department for review and approval a stormwater report and an engineered drainage plan that meets the requirements of the current city standards for design and construction. Prior to final plat, a certification shall be submitted to the Kalispell Public Works Department stating that the drainage plan for the subdivision has been installed as designed and approved. (Kalispell Design and Construction Standards). Staff Response: This condition has been met per letter from Keith Haskins, Kalispell Public Works department dated June 19, 2015. 4. The developer shall submit to the Kalispell Public Works Department, prior to construction, an erosion/sediment control plan for review and approval and a copy of all documents submitted to Montana Department of Environmental Quality for the General Permit for Stormwater Discharge Associated with Construction Activities. (Kalispell Design and Construction Standards). Staff Response: This condition has been met per letter from Keith Haskins, Kalispell Public Works department dated June 19, 2015. No new stormwater improvements were required. 5. All existing and proposed easements shall be indicated on the face of the final plat. Utility easements for city water and sewer shall be provided to allow for the logical extension of utilities from this subdivision to adjoining properties. A letter from the Kalispell Public Works Department shall be obtained stating that the required easements are being shown on the final plat. (Kalispell Subdivision Regulations, Section 28.3.21). Staff Response: This condition has been met per letter from Keith Haskins, Kalispell Public Works department dated June 19, 2015. The Stormwater Drainage Plan included the erosion/sedimentation control Plan A General Permit from MDEQ which is not required for projects with disturbances of less than 1 acre. 6. The following statement shall appear on the final plat: "The undersigned hereby grants unto each and every person, firm or corporation, whether public or private, providing or offering to provide telephone, telegraph, electric power, gas, cable television, water or sewer service to the public, the right to the joint use of an easement for the construction, maintenance, repair, and removal of their lines and other facilities, in, over, under, and across each area designated on this plat as "Utility Easement" to have and to hold forever." Developer's Signature (Kalispell Subdivision Regulations, Section 28.3.21(H)). Staff Response: This condition has been met per face of the final plat. 7. The applicants shall use the existing mail delivery site location. Prior to filing the final plat, a letter from the US Postal Service shall be included stating the Service has reviewed and approved of the design and location of the mail delivery site expansion. The mail delivery site shall not impact a sidewalk or proposed boulevard area. (Kalispell Subdivision Regulations, Section 28.3.24). Staff Response: This condition has been met per letter from Phil Flores, US Postal Service dated June 23, 2015. 8. North Riding Road is no longer considered a collector street, therefore the provision of Kalispell Subdivision Standards 28.3.14 (Gl)) prohibiting direct access onto North Riding Road no longer applies. The easement that was placed on Lot 3 of Three Mile Subdivision prohibiting access is hereby revoked. Language revoking this easement shall be placed on the final plat. With this change, full access for both lots of Stillwood Farms is granted onto North Riding Road, water services shall be extended from North Riding Road to service these lots and no access is allowed onto Vista Loop so as to avoid a cut -through road situation. Staff Response: This condition has been met per face of the final plat. 9. The subdivider shall forward to the city a cash in lieu of parkland payment equivalent to the undeveloped value of .09 acres of the site (.03 acres per dwelling unit minus one dwelling unit already compensated for in 2008). (Kalispell Subdivision Regulations, Section 28.3.22). Staff Response: This condition has been met. The undeveloped value of the site is set at $44,000/acre and a check for the required $3,960 is attached. On -going conditions: 10. All utilities shall be installed underground. (Kalispell Subdivision Regulations, Section 28.3.21(Q. Staff Response: This condition has been met. Water, sewer, telephone, cable TV, gas and electrical services are and will be placed underground. 11. All areas disturbed during development shall be re -vegetated with a weed -free mix immediately after development. Staff Response: This condition has been met to date and will be an ongoing process as housing is constructed. COMPLIANCE WITH APPROVED PRELIMINARY PLAT The final plat is in substantial compliance with the preliminary plat which was approved by the Kalispell City Council on February 17, 2015. COMPLIANCE WITH THE SUBDIVISION REGULATIONS: This subdivision plat has been found to be in compliance with the State and City subdivision regulations. COMPLIANCE WITH THE ZONING REGULATIONS This subdivision can be found to be in compliance with the Kalispell Zoning Ordinance and the RA-1 zoning designation for the property, which governs the dimensional requirements of the lots within the subdivision, as well as the uses. RECOMMENDATION: It can be found that the conditions of preliminary plat approval have been met or are otherwise adequately addressed. It is recommended that the Kalispell City Council approve the final plat for Stillwood Farms. Please schedule this matter for the regular city council meeting on July 20, 2015. Sin rely Jarod Nygren Senior Planner Attachments: - 1 copy of final plat - Applicant responses and final plat application dated 6/23/2015 - First American Title Report #5010500-549246-FT dated 5/29/2015 - Articles of incorporation, and by-laws for Homeowner's Association - Montana Department of Environmental Quality approval letter dated June 10, 2015 - Flathead County Treasurer certification dated June 9/2015. - Letter from Kalispell Public Works Department (engineering approval) dated 4/28/2015 - Letter from Kalispell Public Works Department (utility easement review) dated 6/19/2015 - Letter from US Postal Service dated 6/23/2015 c w/ Att: Aimee Brunckhorst, Kalispell City Clerk c w/o Att: Michael Fraser, PE 690 North Meridian, Suite 103 Kalispell, MT 59901 PIANNING FOR THE FUTURE Planning Department 201 1" Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fag: (406) 758-7739 www.kalisi)efl.com/plannint! FINAL PLAT APPLICATION Project /Subdivision Name: Stillwood Farms Contact Person: Name: Michael Fraser, PE. Kalispell, MT. 5990-1 Phone No.: 253-4326 Owner & Mailing Address: Date of Preliminary Plat Approval: February 17, 2015 Serengetti Properties 77 Merjdian GAUrt Ste 317 Kalispell, MT. 59901 Type of Subdivision: Residential X Industrial Commercial PUD Other Total Number of Lots in Subdivision 4 Land in Project (acres) 0.5475 Parkland (acres) Cash -in -Lieu $ 3,960.00 Exempt No. of Lots by Type: Single Family Duplex Commercial Townhouse X Mobile Home Park Apartment Recreational Vehicle Park Industrial Condominium Multi -Family Legal Description of the Property FILING FEE ATTACHED $ 11300A0.— Planned Unit Development Other Lot 1 of Three Mile Vistas Minor Subdivision with approved preliminary plat Major Subdivision with approved preliminary plat Subdivisions with Waiver of Preliminary Plat Subdivision Improvements Agreement $400 + $125/lot $800 + $125/lot $800 + $125/lot $50 1 Attached Not Applicable (MUST CHECK ONE) -X- Health Department Certification (Original) _ X Title Report (Original, not more than 90 days old) _ X Tax Certification (Property taxes must be paid) X_ Consent(s) to Plat (Originals and notarized) Subdivision Improvements Agreement (Attach collateral) X Parkland Cash -in -Lieu (Check attached) Maintenance Agreement X Plats: 2 mylars 1 11X17 Copy 1 full size copy 1 Electronic Copy **The plat must be signed by all owners of record, the surveyor and the examining land surveyor. Attach a letter, which lists each condition of preliminary plat approval, and individually state how each condition has specifically been met. In cases where documentation is required, such as an engineer's certification, State Department of Health certification, etc., original letters shall be submitted. Blanket statements stating, for example, "all improvements are in place" are not acceptable. A complete final plat application must be submitted no less than 60 days prior to expiration date of the preliminary plat. When all application materials are submitted to the Kalispell Planning Department, and the staff finds the application is complete, the staff will submit a report to the governing body. The governing body must act within 30 days of receipt of the revised preliminary plat application and staff report. Incomplete submittals will not be accepted and will not be forwarded to the governing body for approval. Changes to the approved preliminary plat may necessitate reconsideration by the planning board. I certify that all information submitted is true, accurate and complete. I understand that incomplete information will not be accepted and that false information will delay the application and may invalidate any approval. The signing of this application signifies approval for Kalispell Planning staff to be present on the property for routine monitoring and inspection during the approval and development process. **NOTE: Please be advised that the County Clerk & Recorder requests that all subdivision final plat applications be accompanied with a digital copy. L= �� Owner(s) Signature ,, Z3, Za �S Date **A digital copy of the final plat in a Drawing Interchange File (DXF) format or an AutoCAD file format, consisting of the following layers: 1. Exterior boundary of subdivision 2. Lot or park boundaries 3. Easements 4. Roads or rights -of -way 5. A tie to either an existing subdivision corner or a corner of the public land survey system 2 FRASEMANAGEMENT & CONSULTING, PLLC. 690 NORTH MERIDIAN, SUITE 103 KALISPELL, MT. 59901 Tom Jentz, Planning Director City of Kalispell 201 First Avenue East Kalispell, MT. 59901 Re: Final Plat application Stillwood Farms. Dear Tom; July 6, 2015 Enclosed is the following information, constituting the Final Plat Application for Stillwood Farms. 1. Final Plat Application. 2. Application Fee $1,300.00. 3. Health Department Certificate- Original 4. Tax Certificate. 5. Parkland cash in lieu of $3960.00 6. Signed mylars- 2 each. 7. One 11 x 17 copy. 8. One full size copy. 9. Disc with final plat, exterior boundaries, pats easements. General Conditions: 1. The development of the site shall be in substantial compliance with the application submitted, the site plan, materials and other specifications as well as any additional conditions associated with the preliminary plan as approved by the city council. The attached final plat is in substantial compliance with the approved preliminary plat as approved by the city council. 2. The preliminary plat shall be valid for a period of three years from the date of approval. 1 The preliminary plat was approved on February 17, 2015. This application for final plat is within three years of the preliminary plat approval. Prior to final plat: 10. The developer shall submit to Kalispell Public Works Department for review and approval a stormwater report and an engineering plan that meets the requirements of the current standards for design and construction. Prior to final plat, a certificate shall be submitted to the Kalispell Public Works Department stating that the drainage plan for the subdivision has been installed as designed and approved. Attached is a copy of the City of Kalispell Public Works Departments approval of the stormwater report and engineering plans. No new stormwater improvements were required. Attached is a letter from Public Works department stating the drainage was previously installed as designed and approved. 11. The developer shall submit to the Kalispell Public Works Department, prior to construction, an erosion/sediment control plan for review and approval and a copy of all documents submitted to the Montana Department of Environmental Quality for General Permit for Stormwater Discharge Associated with Construction Activities. The Storm Drainage Plan included the erosion/sediment control plan. A General permit from Montana Department of Environmental Quality is not required for projects with disturbance of less than one acre. This project area is less than an acre. 12. All easements and proposed easements shall be indicated on the face of the final plat. Utility easements for water and sewer shall be provided to allow for logical extension of utilities from this subdivision to adjoining properties. A letter from Kalispell Public Works Department shall be obtained stating that the required easements are be ing shown on the final plat. Existing and proposed easements are shown on the Final Plat. A copy of the submittal to the Public Works Department is enclosed. A copy of the Public works letter documenting compliance is attached 13. The following statement shall appear on the final plat: " The undersigned hereby grants unto each and every person, firm or corporation, whether public or private, providing or offering to provide telephone, telegraph, electric power, gas, cable television, water or sewer service to the public, the right to the joint use of an easement for construction, maintenance, repair, and removal of their lines and other facilities, in, over, under, and accccross each area designated on this plat as " Utility Easement" to have and to hold forever." The statement is on the face of the Final Plat attached with this letter. 2 w/encl cc: Mark Waatti Plat Room Flathead County, Montana 800 S. Main St. Kalispell, MT 59901 (406) 758-5510 This Form is for Subdivisions Only BY: TD&H FOR: Serengeti Prop LLC DATE: 06/11/2015 DESCP : Stillwood Farms Sub (Resub of L1 PURPOSE: Sub of Three Mile Views in 1-28-22) YEARS ASSESSOR # 2011 thru 2014 0009129 I hereby certify that there are no outstanding taxes on the property assigned the assessor numbers listed above, for the years indicated for each assessor numb . COUNryT� kip Deputy Treasurer / (seal) JUN 2 4 2015 �/ AAnTAS�� PUBLI June 19, 2015 Attn: Mike Fraser, PE Fraser Management and Consulting, PLLC 690 North Meridian, Suite 103 Kalispell, MT 59901 RE: Stillwood Farms Dear Mike, The purpose of this letter is to meet the requirements of Preliminary Plat conditions 3 and 5 as indicated in Resolution No. 5702 for the Stillwood Farms Resubdivision of Lot I of the Three Mile Views Subdivision. Condition 3 requires the developer to submit a stormwater report and drainage plans for review and approval of the Public Works Department. The stormwater drainage requirements for Lot 1 were evaluated and approved with the original design of 3 Mile Views. Therefore, this requirement has satisfactorily been met. Condition 5 requires proposed and existing easements to be indicated on the final plat. Additionally, easements for water and sewer services extending through neighboring lots were required for the purpose of allowing future property owners to maintain their services from their property to the main. In this case, sewer services were tapped on the sewer main in 3 Mile Drive, negating the need for sewer service easements. However, water services were provided off of North Riding Road, west of the subdivision. The 15 foot easement across Lots IAA, IAB, and IBA indicated on the final plat, appears to meet this requirement. Thank you for your submittal and patience with my schedule to review these conditions. Sincerely, Keith Haskins, PE Senior Civil Engineer 201 1" Avenue East, P.O. Box 1997, Kalispell, MT 59903 —Phone (406)758-7720 — Fax (406)758-7831 www.kalispell.com PUBLIC April 28, 2015 Doug Peppmeier, PE TD&H Engineering 450 Corporate Drive, Suite 101 Kalispell, MT 59901 RE: Stillwood Farms Subdivision — Engineering Approval Dear Mr. Peppmeier: The revised construction drawings submitted on April 20, 2015 are hereby approved contingent on the following item: • The 15-foot landscape and no access easement must be abandoned as part of the Final Plat. Approval does not relieve you, nor the contractor from designing or constructing this project in accordance with the standards currently in effect. If more than 18 months lapse before completing construction, plans and specifications must be resubmitted and approved before construction continues. Please contact Mark Crowley at 249-2485 to set up a pre -construction meeting prior to beginning construction. At project completion, please provide the City with record drawings. We look forward to working with you on this project. Sincerely, Rebekah Wargo, PE Assistant Civil Engineer 201 1" Avenue East, P.O. Box 1997, Kalispell, MT 59903 Phone (406) 758-7720 — Fax (406) 758-7831 www.kalisnell.com Jun-23-2015 09:39 AM USPS - Kalispell, i`1T 406-756-0045 UNITED STATES POSTALSERVICE 6/23/2015 Fraser Management & Consulting, PLLC, Delivery for 101, 103, 105 and 107 North Riding will be located at the Centralized Box Units on North Riding Road just north of Three Mile Dr. Phil Flores Sup. CS 350 N. Meridian 406-755-6450 Insured Titles INsuREI3R D TITLB 44 4th Street WestlP.O. Box 188 ^ Kalispell, MT 59901 Office Phone:(406)755-5028 Office Fax:(406)755-3299 Buyer's Final Settlement Statement Property: 56 Vista Loop, Kalispell, MT 59901 Fife No: 519520-FT Officer: Bridget Kalloch/bk Settlement Date: Disbursement Date: Print Date: Buyer: Serengeti Properties, LLC Address: 56 Vista Loop, Kalispell, MT 59901 Seller: Flathead Bank of Bigfork Address: 120 Hutton Ranch Road, Kalispell, MT 59901 Lender: Address: 09130/2014 09/30/2014 09/29/2014, 12:18 PM Charge Description Buyer Charge Buyer Credit Consideration: Total Consideration 44,000.00 1 l _ Prorations• _ County Tax 01/01/14 to 09/30/14 @$1340.10/yr ( 998.65 Title/Escrow Charges to: Settlement or Closing Fee, to Insured Titles 250.00 Recording Fee -Deed to Insured Titles 14.00 —( Cash (X Fromj To) Buyer I Totals 44,264.00 44,264.00 BUYER(S): engeti Properti s, LLC atthew Waatti, Member By: Ke 'n Tikka, Member Ir By: rk Waatti, Member Insu Titles ff By�tt�{C Bridget Kalloch Initials: Page 1 of 1 GUARANTEE Issued by Insured Titles 44 4th Street West/P. O. Box 188, Kalispell MT 59901 Title Officer: Sheri Smith Phone: (406)755-5028 FAX.- (406)755-3299 Form 5010500 (7-1-14) Page 1 of 9 Guarantee Face Page - Exclusions, Conditions and Stipulations Form 5010500 (7-1-14) Guarantee Face Page -Exclusions, Conditions and Stipulations Guarantee Face Page First American Title ISSUED BY First American Title Insurance Company Guarantee First American Title Insurance Company Oennu J Gi4nore President 1eHrey S. Robinson Secretary GUARANTEE NUMBER 5010500-549246-FT W� 141 Form 5010500 (7-1-14) Page 2 of 9 Guarantee Face Page - Exclusions, Conditions and Stipulations SCHEDULE OF EXCLUSIONS FROM COVERAGE OF THIS GUARANTEE 1. Except to the extent that specific assurances are provided in Schedule A of this Guarantee, the Company assumes no liability for loss or damage by reason of the following: (a) Defects, liens, encumbrances, adverse claims or other matters against the title, whether or not shown by the public records. (b) (1) Taxes or assessments of any taxing authority that levies taxes or assessments on real property; or, (2) Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not the matters excluded under (1) or (2) are shown by the records of the taxing authority or by the public records. (c) (1) Unpatented mining claims; (2) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (3) water rights, claims or title to water, whether or not the matters excluded under (1), (2) or (3) are shown by the public records. 2. Notwithstanding any specific assurances which are provided in Schedule A of this Guarantee, the Company assumes no liability for loss or damage by reason of the following: (a) Defects, liens, encumbrances, adverse claims or other matters affecting the title to any property beyond the lines of the land expressly described in the description set forth in Schedule (A), (C) or in Part 2 of this Guarantee, or title to streets, roads, avenues, lanes, ways or waterways to which such land abuts, or the right to maintain therein vaults, tunnels, ramps or any structure or improvements; or any rights or easements therein, unless such property, rights or easements are expressly and specifically set forth in said description. (b) Defects, liens, encumbrances, adverse claims or other matters, whether or not shown by the public records; (1) which are created, suffered, assumed or agreed to by one or more of the Assureds; (2) which result in no loss to the Assured; or (3) which do not result in the invalidity or potential invalidity of any judicial or non -judicial proceeding which is within the scope and purpose of the assurances provided. (c) The identity of any party shown or referred to in Schedule A. (d) The validity, legal effect or priority of any matter shown or referred to in this Guarantee GUARANTEE CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. The following terms when used in the Guarantee mean: (a) the "Assured": the party or parties named as the Assured in this Guarantee, or on a supplemental writing executed by the Company. (b) 'land": the land described or referred to in Schedule (A)(C) or in Part 2, and improvements affixed thereto which by law constitute real property. The term 'land" does not include any property beyond the lines of the area described or referred to in Schedule (A)(C) or in Part 2, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways. (c) "mortgage": mortgage, deed of trust, trust deed, or other security instrument. (d) "public records": records established under state statutes at Date of Guarantee for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. (e) "date": the effective date. 2. NOTICE OF CLAIM TO BE GIVEN BY ASSURED CLAIMANT. An Assured shall notify the Company promptly in writing in case knowledge shall come to an Assured hereunder of any claim of title or interest which is adverse to the title to the estate or interest, as stated herein, and which might cause loss or damage for which the Company may be liable by virtue of this Guarantee. If prompt notice shall not be given to the Company, then all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any Assured unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice 3. NO DUTY TO DEFEND OR PROSECUTE. The Company shall have no duty to defend or prosecute any action or proceeding to which the Assured is a party, notwithstanding the nature of any allegation in such action or proceeding. 4. COMPANY'S OPTION TO DEFEND OR PROSECUTE ACTIONS; DUTY OF ASSURED CLAIMANT TO COOPERATE. Even though the Company has no duty to defend or prosecute as set forth in Paragraph 3 above: (a) The Company shall have the right, at its sole option and cost, to institute and prosecute any action or proceeding, interpose a defense, as limited in (b), or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest as stated herein, or to establish the lien rights of the Assured, or to prevent or reduce loss or damage to the Assured. The Company may take any appropriate action under the terms of this Guarantee, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this Guarantee. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (b) If the Company elects to exercise its options as stated in Paragraph 4(a) the Company shall have the right to select counsel of its choice (subject to the right of such Assured to object for reasonable cause) to represent the Assured and shall not be liable for and will not pay the fees of any other counsel, nor will the Company pay any fees, costs or expenses incurred by an Assured in the defense of those causes of action which allege matters not covered by this Guarantee. (c) Whenever the Company shall have brought an action or interposed a defense as permitted by the provisions of Form 5010500 (7-1-14) Page 3 of 9 Guarantee Face Page - Exclusions, Conditions and Stipulations S. GUARANTEE CONDITIONS AND STIPULATIONS (Continued) this Guarantee, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from an adverse judgment or order. (d) In all cases where this Guarantee permits the Company to prosecute or provide for the defense of any action or proceeding, an Assured shall secure to the Company the right to so prosecute or provide for the defense of any action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of such Assured for this purpose. Whenever requested by the Company, an Assured, at the Company's expense, shall give the Company all reasonable aid in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest as stated herein, or to establish the lien rights of the Assured. If the Company is prejudiced by the failure of the Assured to furnish the required cooperation, the Company's obligations to the Assured under the Guarantee shall terminate. PROOF OF LOSS OR DAMAGE. In addition to and after the notices required under Section 2 of these Conditions and Stipulations have been provided to the Company, a proof of loss or damage signed and sworn to by the Assured shall be furnished to the Company within ninety (90) days after the Assured shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the matters covered by this Guarantee which constitute the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of the Assured to provide the required proof of loss or damage, the Company's obligation to such Assured under the Guarantee shall terminate. In addition, the Assured may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Guarantee, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the Assured shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by the Assured provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the Assured to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in the above paragraph, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this Guarantee to the Assured for that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS: TERMINATION OF LIABILITY. In case of a claim under this Guarantee, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Liability or to Purchase the Indebtedness. The Company shall have the option to pay or settle or compromise for or in the name of the Assured any claim which could result in loss to the Assured within the coverage of this Guarantee, or to pay the full amount of this Guarantee or, if this Guarantee is issued for the benefit of a holder of a mortgage or a lienholder, the Company shall have the option to purchase the indebtedness secured by said mortgage or said lien for the amount owing thereon, together with any costs, reasonable attorneys' fees and expenses incurred by the Assured claimant which were authorized by the Company up to the time of purchase. Such purchase, payment or tender of payment of the full amount of the Guarantee shall terminate all liability of the Company hereunder. In the event after notice of claim has been given to the Company by the Assured the Company offers to purchase said indebtedness, the owner of such indebtedness shall transfer and assign said indebtedness, together with any collateral security, to the Company upon payment of the purchase price. Upon the exercise by the Company of the option provided for in Paragraph (a) the Company's obligation to the Assured under this Guarantee for the claimed loss or damage, other than to make the payment required in that paragraph, shall terminate, including any obligation to continue the defense or prosecution of any litigation for which the Company has exercised its options under Paragraph 4, and the Guarantee shall be surrendered to the Company for cancellation. (b) To Pay or Otherwise Settle With Parties Other Than the Assured or With the Assured Claimant. To pay or otherwise settle with other parties for or in the name of an Assured claimant any claim assured against under this Guarantee, together with any costs, attorneys' fees and expenses incurred by the Assured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of the option provided for in Paragraph (b) the Company's obligation to the Assured under this Guarantee for the claimed loss or damage, other than to make the payment required in that paragraph, shall terminate, including any obligation to continue the defense or prosection of any litigation for which the Company has exercised its options under Paragraph 4. 7. DETERMINATION AND EXTENT OF LIABILITY. This Guarantee is a contract of Indemnity against actual monetary loss or damage sustained or incurred by the Assured claimant who has suffered loss or damage by reason of reliance upon the assurances set forth in this Guarantee and only to the extent herein described, and subject to the Form 5010500 (7-1-14) Page 4 of 9 Guarantee Face Page - Exclusions, Conditions and Stipulations GUARANTEE CONDITIONS AND STIPULATIONS (Continued) Exclusions From Coverage of This Guarantee. The liability of the Company under this Guarantee to the Assured shall not exceed the least of: (a) the amount of liability stated in Schedule A or in Part 2; (b) the amount of the unpaid principal indebtedness secured by the mortgage of an Assured mortgagee, as limited or provided under Section 6 of these Conditions and Stipulations or as reduced under Section 9 of these Conditions and Stipulations, at the time the loss or damage assured against by this Guarantee occurs, together with interest thereon; or (c) the difference between the value of the estate or interest covered hereby as stated herein and the value of the estate or interest subject to any defect, lien or encumbrance assured against by this Guarantee. S. LIMITATION OF LIABILITY. (a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures any other matter assured against by this Guarantee in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title, as stated herein. (c) The Company shall not be liable for loss or damage to any Assured for liability voluntarily assumed by the Assured in settling any claim or suit without the prior written consent of the Company. 9. REDUCTION OF LIABILITY OR TERMINATION OF LIABILITY. All payments under this Guarantee, except payments made for costs, attorneys' fees and expenses pursuant to Paragraph 4 shall reduce the amount of liability pro tanto. 10. PAYMENT OF LOSS. (a) No payment shall be made without producing this Guarantee for endorsement of the payment unless the Guarantee has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within thirty (30) days thereafter. 11. SUBROGATION UPON PAYMENT OR SETTLEMENT. Whenever the Company shall have settled and paid a claim under this Guarantee, all right of subrogation shall vest in the Company unaffected by any act of the Assured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the Assured would have had against any person or property in respect to the claim had this Guarantee not been issued. If requested by the Company, the Assured shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The Assured shall permit the Company to sue, compromise or settle in the name of the Assured and to use the name of the Assured in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the Assured the Company shall be subrogated to all rights and remedies of the Assured after the Assured shall have recovered its principal, interest, and costs of collection. 12. ARBITRATION. Unless prohibited by applicable law, either the Company or the Assured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Assured arising out of or relating to this Guarantee, any service of the Company in connection with its issuance or the breach of a Guarantee provision or other obligation. All arbitrable matters when the Amount of Liability is $1,000,000 or less shall be arbitrated at the option of either the Company or the Assured. All arbitrable matters when the amount of liability is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the Assured. The Rules in effect at Date of Guarantee shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permits a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 13. LIABILITY LIMITED TO THIS GUARANTEE; GUARANTEE ENTIRE CONTRACT. (a) This Guarantee together with all endorsements, if any, attached hereto by the Company is the entire Guarantee and contract between the Assured and the Company. In interpreting any provision of this Guarantee, this Guarantee shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, or any action asserting such claim, shall be restricted to this Guarantee. (c) No amendment of or endorsement to this Guarantee can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 14. NOTICES, WHERE SENT. All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this Guarantee and shall be addressed to the Company at First American Title Insurance Company, Attn: Claims National Intake Center, 1 First American Way, Santa Ana, California 92707. Phone:888-632-1642. Form 5010500 (7-1-14) Page 5 of 9 Guarantee Face Page - Exclusions, Conditions and Stipulations .�� . 4 �x Subdivision Guarantee *' First American lltleISSUED BY First American Title Insurance Company I GUARANTEE NUMBER Guarantee 5010500-549246-Fr Subdivision or Proposed Subdivision: STILLWOOD FARMS SUBDIVISION Order No.: 549246-FT Reference No.: Fee: $150.00 SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE LIMITS OF LIABILITY, AND OTHER PROVISIONS OF THE CONDITIONS AND STIPULATIONS HERETO ANNEXED AND MADE A PART OF THIS GUARANTEE, FIRST AMERICAN TITLE INSURANCE COMPANY, A CORPORATION HEREIN CALLED THE COMPANY GUARANTEES: Fraser Management Consulting, PLLC FOR THE PURPOSES OF AIDING ITS COMPLIANCE WITH FLATHEAD COUNTY SUBDIVISION REGULATIONS, in a sum not exceeding $5,000.00. THAT according to those public records which, under the recording laws of the State of Montana, impart constructive notice of matters affecting the title to the lands described on the attached legal description: LOT 1 OF THREE MILE VIEWS, ACCORDING TO THE MAP OR PLAT THEREOF ON FILE AND OF RECORD IN THE OFFICE OF THE CLERK AND RECORDER OF FLATHEAD COUNTY, MONTANA. (A) Parties having record title interest in said lands whose signatures are necessary under the requirements of Flathead County Subdivision Regulations on the certificates consenting to the recordation of Plats and offering for dedication any streets, roads, avenues, and other easements offered for dedication by said Plat are: Serengeti Properties, LLC (B) Parties holding liens or encumbrances on the title to said lands are: 1. 2015 taxes and special assessments are a lien; amounts not yet determined or payable. The first one-half becomes delinquent after November 30th of the current year, the second one-half becomes delinquent after May 31st of the following year. General taxes as set forth below. Any amounts not paid when due will accrue penalties and interest in addition to the amount stated herein: Year 1st Half 2nd Half Parcel Number 2014 $711.15 Paid $711.13 Paid 0009129 (C) Easements, claims of easements and restriction agreements of record are: Form 5010500 (7-1-14) Page 6 of 9 Guarantee Face Page - Exclusions, Conditions and Stipulations 2. County road rights -of -way not recorded and indexed as a conveyance of record in the office of the Clerk and Recorder pursuant to Title 70, Chapter 21, M.C.A., including, but not limited to any right of the Public and the County of Flathead to use and occupy those certain roads and trails as depicted on County Surveyor's maps on file in the office of the County Surveyor of Flathead County. 3. Resolution No. 4842 executed by the City of Kalispell, recorded November 10, 2003 as Doc. No. 2003-314-11180. 4. All matters, covenants, conditions, restrictions, easements and any rights, interest or claims which may exist by reason thereof, disclosed on the recorded plats of THREE MILE SUBDIVISION and the AMENDED SUBDIVISION PLAT OF LOTS 1, 2 & 3 OF BLOCK 2 AND LOT 24 OF BLOCK 1 OF THREE MILE SUBDIVISION, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status, or national origin to the extent such covenants, conditions or restrictions violate 42 USC 3604(c). 5. Easement for an electric transmission and distribution line granted to Flathead Electric Cooperative, Inc., recorded April 29, 2004 as Instrument No. 2004-120-09030. 6. Covenants, Conditions and Restrictions recorded August 17, 2004 as Instrument No. 2004-230- 15160, but omitting any covenant, condition or restriction based on race, color, religion, sex, handicap, familial status, or national origin to the extent that such covenants, conditions or restrictions violate 42 USC 3604(c). 7. Declaration of Homeowners Association By -Laws of Three Mile Subdivision, recorded August 17, 2004, as Doc. No. 2004-230-15170. First Amendment recorded November 17, 2004, as Doc. No. 2004-322-16271. 8. All matters, covenants, conditions, restrictions, easements and any rights, interests or claims which may exist by reason thereof, disclosed by the recorded plat of Three Mile Views, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status, or national origin to the extent such covenants, conditions or restrictions violate 42 USC 3604(c). 9. Provisions contained in that Certificate, executed by the State of Montana, Department of Health and Environmental Services. 10. Covenants, Conditions and Restrictions recorded February 17, 2011 as Doc. No. 2011-000- 03770, but omitting any covenant, condition or restriction based on race, color, religion, sex, handicap, familial status, or national origin to the extent that such covenants, conditions or restrictions violate 42 USC 3604(c). 11. By -Laws of Three Mile Views HOA, recorded February 17, 2011 as Doc. No. 2011-000-03771. Date of Guarantee: May 29, 2015 at 7:30 A.M. Form 5010500 (7-1-14) Page 7 of 9 Guarantee Face Page - Exclusions, Conditions and Stipulations Insured Titles By: Authorized Countersignature Form 5010500 (7-1-14) Page 8 of 9 Guarantee Face Page - Exclusions, Conditions and Stipulations !: � c First American Privacy Information We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information - particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our subsidiaries we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information that you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Information Values. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: • Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; • Information about your transactions with us, our affiliated companies, or other;; and • Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has used. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and Investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies or to other financial institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your Information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values. We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal Information. Information Obtained Through Our Web Site First American Financial Corporation is sensitive to privacy issues on the Internet. We believe it is important you know how we treat the information about you we receive on the Internet. In general, you can visit First American or its affiliates Web sites on the World Wide Web without telling us who you are or revealing any information about yourself. Our Web servers collect the domain names, not the e-mail addresses, of visitors. This information is aggregated to measure the number of visits, average time spent on the site, pages viewed and similar information. First American uses this information to measure the use of our site and to develop ideas to improve the content of our site. There are times, however, when we may need Information from you, such as your name and email address. When information is needed, we will use our best efforts to let you know at the time of collection how we will use the personal information. Usually, the personal information we collect is used only by us to respond to your inquiry, process an order or allow you to access specific account/profile information. If you choose to share any personal information with us, we will only use it in accordance with the policies outlined above. Business Relationships First American Financial Corporation's site and its affiliates' sites may contain links to other Web sites. While we try to link only to sites that share our high standards and respect for privacy, we are not responsible for the content or the privacy practices employed by other sites. Cookies Some of First American's Web sites may make use of "cookie" technology to measure site activity and to customize Information to your personal tastes. A cookie is an element of data that a Web site can send to your browser, which may then store the cookie on your hard drive. MrstAm.com uses stored cookies. The goal of this technology is to better serve you when visiting our site, save you time when you are here and to provide you with a more meaningful and productive Web site experience. Fair Information Values Fairness We consider consumer expectations about their privacy in all our businesses. We only offer products and services that assure a favorable balance between consumer benefits and consumer privacy. Public Record We believe that an open public record creates significant value for society, enhances consumer choice and creates consumer opportunity. We actively support an open public record and emphasize its importance and contribution to our economy. Use We believe we should behave responsibly when we use information about a consumer in our business. We will obey the laws governing the collection, use and dissemination of data. Accuracy We will take reasonable steps to help assure the accuracy of the data we collect, use and disseminate. Where possible, we will fake reasonable steps to correct inaccurate information. When, as with the public record, we cannot correct inaccurate information, we will take all reasonable steps to assist consumers in identifying the source of the erroneous data so that the consumer can secure the required corrections. Education We endeavor to educate the users of our products and services, our employees and others in our Industry about the importance of consumer privacy. We will Instruct our employees on our fair information values and on the responsible collection and use of data. We will encourage others in our Industry to collect and use information in a responsible manner. Security We will maintain appropriate facilities and systems to protect against unauthorized access to and corruption of the data we maintain. Form 50-PRIVACY (9-1-10) Page 1 of 1 I Privacy Information ( 2001-2010 First American Rnandal Corporation) Form 5010500 (7-1-14) Page 9 of 9 Guarantee Face Page - Exclusions, Conditions and Stipulations SECRETARY OF STATE Linda McCulloch -- State of Montana Montana State Capitol PO Box 202801 Helena, MT 59620-2801 JOHNSON BERG & SAXBY PLLP PO BOX 3038 KALISPELL MT 59903 3038 Rltulvtj CERTIFICATE OF FILING 1, LINDA McCULLOCH, Secretary of State of the State of Montana, do hereby certify that SERENGETI PROPERTIES, LLC filed its ARTICLES OF ORGANIZATION in this office and has fiilfilled the applicable requirements set forth in law. By virtue of the authority vested in the office, I hereby issue this certificate evidencing filing effective on the date shown below. I wish you the best of luck with all your future endeavors as part of the Montana business community. Certified File Number: C252655 - 1559244 Dated: September 4, 2014 Ef eetive Date: September 3, 2014 The first Annual Report must be delivered to the Secretary of State between January 1 and April 15 of the year fal 2 ing the calendar year in which a Domestic or Foreign Corporation or Limited Liability Company was incorporated or authorized to transact business. Subsequent Annual Reports must be delivered to the Secretary of State between January 1 and April 15 each year thereafter. Linda McCulloch Secretary of State �j�j W M 4 Mill 11111I111110,1111111 I��II�I5�I5I9I�2�1nIN�4IIIUI 09/03/2014 16:07 7566809 ,78MB STATE OF P,AONTANA F' P FILED n {, !" ARTICLES OF ORGANIZATION SEP - 3 2014 FOR SERENGETI PROPERTIES, LLC SECRETARY OF STATE t SZM aye Executed by the undersigned person for the purpose of forming a Montana limited liability+ company under Montana Limited Liability Company Act: ARTICLE I Name. The name of the Limited Liability Company is Serengeti Properties, LLC ARTICLE II Duration. The Limited Liability Company shall have a perpetual ttrm of existence. ARTICLE 111 Principal Office, Registered Office, and Resident Agent, (a) The street address of the principal place of business in Montana is 27 Meridian Court, Suite 117, Kalispell, Montana 59901. 59901. (b) The street address of the registered ogee is 27 Meridian Court, Suite 117, Kalispell, Montana (c) The name of the resident agent at the registered office i9 Matthew WaattL ARTICLE IV ManagetnenL The Limited Liability Company is to be managed by its Members. no names and street addresses of the initial Members are: Matthew waatti 27 Meridian Court, Suite 117 Kalispell, Montana 59901 Kevin Tikka 5116 Highway 35 Kalispell, Montana 59901 ARTICLE V Mark Waatti 27 Meridian Court, Suite 117 Kalispell;; Montana 59901 Purposes and Powers. The Limited Liability Company shall have the right to conduct any and all business acts not prohibited by Montana law. The Limited Liability Company shall also have all powers enumerated in §35-8-107, Montana Code Annotated, and shall further be empowered to indemnify its members for any and all monetary damages accruing from the breach of any duty by a member, otherthan any damages Page 1 of 2 SEP-03-2014 16:44 7666BOS 57x P.006 093/03/2014 16:07 7566889 JBMB PAEFE 06/06 resulting from any act or omission constituting gross negligence or willful misconduct or to the extent indemnification is limited by §35-9 404(2), Montana Code Annotated. ARTICLE VI The name of the person organizing this Limited Liability Company is MatHtew Waatti. The street address of the person organizing this Limited Liability Company is27 Meridian Court, Suite 117, Kalispell, Montana 59901, t( DATED this day of September, 2014. 6aftew5�aattrti � k uAia", Page 2 of 2 991 SEP-03-2014 16:44 7666809 P.006 OPERATING AGREEXENT QE SERENGETI PPOPERTW-S, LLC SECS initial Members Name, Place of Business, Term , 1.1 N_ame• The name of the Limited Liability Company (hereinafter stated as LLC) as SERENGETI PROPERTIES, LLC. Company is 27 1,2 princi al Place of Business. Th59principal place of business of the Limited Liability pan Y Meridian Court, Suite 117, Kalispell, Montana 941 its Articles of organization with the an on the date of filing or act Secretary of State, and 1.3 Term. The term of this LLC beg an act specified in Section 9 of this Agreement shall continue until dissolved by specified by the LLC's Articles of Organization• 1<4 Initial Members. The initial Members of the LLC and the initial LLC membership percentages (LLC Percentages) for each member are as follows: 47% Matthew Waatti: 47% Kevin Tikka: 6% Mark Waatti: SECS purposes of the Business The LLC may engage in the business of construction services, investing, owning, leasing or dealing in any operating a business, and/or engaging in any activity or business not prohibited by law and upon real property, p g which Members owning a majority of the LLC Percentages may agree. SECTION 3 Contributions to Capital and Assumption of Liabilities 3.1 Capital Accounts. (a) The initial Members have contributed the following in capitalizing the LLC: Matthew Waatti: Kevin Tikka: $124.44 � d � 0 � Mark Waatti: o 1(,{M•� l�/ Total T 2 4 +: t' (b) Each Member has an individual Capital Account, the beginning balance of which is stated above. Operating Agreement of Serengeti Properties, LLC \ Page 1 3.2 Limitation on Withdrawal. Except by unanimous vote of the Members, Members may not withdraw from their Capital Accounts or add to their Capital Accounts. 3.3. Additional Contributions. No Member, without unanimous vote of the Members, shall be obligated to make any additional contributions to the LLC. If additional contributions are made, such shall be in the same proportions as existing LLC percentages unless otherwise specified by unanimous vote. A change in LLC percentage due to differentials in additional contributions shall be followed by a written amendment to this Agreement. SECTION 4 Profits and Losses/Withdrawals 4.1 Allocation of Net Profits and Losses. In accordance with generally accepted accounting principles, the LLC's accountant or bookkeeper shall determine Net Profits or Losses of the LLC as of the close of each fiscal year. The LLC's accountant or bookkeeper shall allocate the Net Profits and Losses to each Member's Capital Account in accordance with their LLC Percentages during the fiscal year. In the event Member percentages change during the fiscal year, Net Profits and Losses shall be allocated so as to take into account such varying percentages by either a daily allocation or pursuant to an actual interim closing of the LLC's books of account at the time any such ownership percentages change, as is agreeable to the parties. 4.2 Tax Allocations. It is understood and agreed that the capital contributions by Members are as set forth above, are proportional as to market value, but such may not reflect tax basis properly. In such event the LLC books and records shall be maintained to properly reflect basis differences, including the capital accounts of Members, and any gain, loss, depreciation or other special allocations shall be done in compliance with § 704(c) of the internal Revenue Code of 1986, and the regulations thereunder, as such may be amended. Any such special allocations shall be for tax purposes only and shall not be used in computing or reflecting any Member's share of capital, profits, losses, distributions or other matters set forth in this Agreement. 43 Distributions to Members. Cash distributions shall be made to the Members in such amounts and at such times as are agreed to by the Members of the LLC. So long as the LLC is in a cumulative net profit position, all distributions, excepting final liquidating distributions, shall be made to the Members pro rata in accordance with their relative LLC Percentages. If the LLC is in a cumulative net loss position, all distributions, including final liquidating distributions, shall be made to the Member pro rata in accordance with their relative Capital Account balances. SECTION 5 Management 5.1 Management. Each Member has a vote in the management and conduct of the LLC's business. 5.2 Vote Repaired. If this Agreement does not specify the amount of the vote of the LLC Percentages that is needed to make a decision, the decision may be made by an affirmative vote of the Members owning a majority of the LLC Percentages entitled to vote. Operating Agreement of Serengeti Properties, LLC \ Page 2 SECTION 6 Deadlock 6.1 Mediation. If the Members are deadlocked as to any matter, with the Members unable to resolve the deadlock itself, upon written request of any Member(s) owning at least forty percent (401/16) of the LLC Percentages, the Members agree to submit the dispute to mediation and the following guidelines shall apply: a. The Members agree to have the dispute mediated by a mutually agreeable attorney or (for tax or accounting issues) a mutually acceptable Certified Public Accountant who is familiar with the issues involved but has not done work for the LLC or any of its Members, or for real estate valuation issues a mutually acceptable real estate appraiser knowledgeable about property of the type owned and developed by the LLC. b. The Members agree to follow the mediation procedure selected by the mediator. C. Mediation shall terminate upon the written request of the mediator or Members owning 50% of the LLC Percentages. In the event the parties are unable to agree on a mediator, any Member of the LLC shall have the right to apply to the Eleventh Judicial District Court to appoint a mediator, and the District Judge to whom such application is assigned shall appoint the mediator. 6.2 Continuing Deadlock. If the Members are unable to resolve the deadlock through mediation, upon written request of any Member or Members, the Members agree to resolve such deadlock by petition to the Montana Eleventh Judicial District Court for Flathead County, Montana, with such Court specifically being empowered to order one Member to sell his interest to the LLC or other Members for such consideration and on such terms as determined appropriate by the District Court following hearing. Additionally, the District Court shall have the power to dissolve and liquidate the LLC, with its affairs wound up on such basis and within such time period as ordered by the District Court. SECTION 7 Dissociation 7.1 Events of Dissociation. A Member ceases to be a Member of the LLC upon the happening of one of these events of dissociation, which, subject to Section 7.4, shall cause the dissolution of the LLC: (a) The last day of a calendar month which is not less than ninety (90) days following receipt by the LLC of written notice of the Member's express will to withdraw as a Member or upon any later date specified in the notice if and only if the remaining Members consent to the withdrawal and an agreement is made to purchase the withdrawing Member's interest; (b) Subject to the contrary written consent of all other Members, the Member: i. makes an assignment for the benefit of creditors; ii. files a voluntary petition in bankruptcy; iii. is adjudicated as bankrupt or insolvent; iv. files an petition or answer seeking a reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any statute, law, or regulation; Operating Agreement of Serengeti Properties, LLC \ Page 3 V. files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against the Member in any proceeding under this subsection (b); or vi. seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or liquidator of the Member or of all or any substantial part of the Member's properties. (c) Subject to the contrary written consent of all other Members at the time if: one hundred twenty (120) days after the commencement of any proceeding against the Member seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution, such proceeding has not been dismissed or vacated; ii. similar relief is sought under any statute, law, or regulation, and the proceeding has not been dismissed, within 90 days after the appointment without Member's consent or acquiescence of a trustee, receiver, or liquidator of Member or of all or any substantial part of the Member's properties, the appointment is not vacated or stayed; or iii. within 90 days after the expiration of any stay, the appointment is not vacated. (d) In the case of a Member who is an individual: i. the death of the Member, or ii. the entry of an order by a court of competent jurisdiction adjudicating the Member incompetent to manage the Member's person, estate or financial affairs; (e) In the case of a Member who is a corporation, a partnership or another LLC, in the event of the insolvency, dissolution or liquidation of such Member; (f) The Member's expulsion by a 100% vote of the Members owning the remaining LLC Percentages if the Member is convicted of a criminal offense committed against the LLC or involving the LLC business; (g) Subject to the contrary written consent of all Members at the time, a Member voluntarily or involuntarily transfers that Member's membership interest in the LLC in violation of this Agreement or the Montana Limited Liability Company Act. 7.2 Purchase Price. (a) Continuation. Members not dissociating (Remaining Members, if more than one) may elect under Section 7A that the LLC be continued by the Remaining Members. If an election to continue is made, the Member or the estate or legal representative of the Member causing the dissociation (Dissociated Member) shall be paid the amount determined pursuant to this Section 7.2, unless otherwise stated, as of the date of dissociation. Such shall be paid by the LLC, or if the remaining Members unanimously elect by those Remaining Members in the proportion that their individual membership interests bear to the total of all remaining membership interests. If there is only one Remaining Member, the LLC must be dissolved (Section 9), however the Remaining Member may choose to purchase the interest of the Dissociating Member under Sections 7.2 and 7.3 instead of dissolution and liquidation under Section 9. i. Death or incompetency. If an individual Member dies or is incompetent pursuant to Section 7.1(d), then the purchase price of the Member's interest shall be: Operating Agreement of Serengeti Properties, LLC \ Page 4 a. An amount per LLC Percentage determined to be the purchase price pursuant to this section by the vote of Members owning 100% of the Percentages at the most recent annual meeting of the LLC_ If no amount was so determined at the last annual meeting, the amount so determined at the prior most recent annual meeting shall be the amount, so long as such determination was made within two years of the dissociation. b. If the LLC did not determine an amount at the most recent annual meeting or the prior year's annual meeting, then the amount shall be equal to the Dissociated Member's proportionate share of the Net Asset Value of the LLC multiplied by one hundred percent (1000%). The Dissociated Member's proportionate share shall be based on the LLC Membership Percentage of the Dissociated Member. The Net Asset Value equals the appraised value (as determined by an appraiser agreed upon by all Members) of the real property and personal property held by the LLC at the time of the dissociation, less liabilities of the LLC, including contingent liabilities for which no amount has yet been determined but for which there are sufficient known facts that would reasonably lead to the conclusion that such a claim will arise. In determining Net Asset Value, no adjustment shall be made for goodwill, going concern, or any other intangibles, nor shall any adjustment be made for minority or marketability discounts. If the Members do not agree upon an appraiser, the determination shall be made in accordance with the procedures set forth in Section 6 with mediation taking place within ninety (90) days of dissociation and arbitration within one hundred twenty (120) days with no written requests being necessary. ii. Withdrawal. If an individual Member withdraws pursuant to Section 7.1(a) or (b), the purchase price of the Member's interest shall be 67Z/3% of the amount determined by Subsection i. of Section 7.2. iii. Other Withdrawal or Expulsion. If the Member becomes a Dissociated Member by reason of Sections 7.1(c), 7.1(f) or 7.1(g), the purchase price shall be 671/3% of the amount determined by Subsection L of Section 7.2, minus any damages caused by the withdrawal of a Member withdrawing by reason of Section 7.1(c), or if the withdrawal is by reason of Section 7.1(f) or (g), the amount of damages described in Subsection (a) of this paragraph. 7.3 Terms of Payment. (a) Terms of Promissory Note. Unless otherwise agreed at the time, the purchase price specified in Section 7.2, if positive, will be paid within 120 days of dissociation by means of a cash down payment of 20% of the purchase price and the delivery of a promissory note by the LLC or the Remaining Member(s), as appropriate. The promissory note will provide for equal annual payments of principal and interest at the rate of 6% per annum or the Applicable Federal Rate, whichever is greater. Such payments will be paid over a period of 5 years, starting one year after the date of the promissory note. The promissory note will provide for no prepayment penalty and will be immediately due and payable if there is a failure to make a timely payment of principal or interest and such payment is not made within 60 days of the date written demand to make payment is received. (b) Security for Payment. The promissory note will be secured by a security interest (junior to all security interests existing on the date of dissociation) in all the equipment, real estate, accounts receivable and inventory of the LLC. The LLC or Remaining Members agree to take such actions to perfect the security interest as the Dissociated Member reasonably requests. (c) If the purchase price specified in Section 7.2 is negative, the full amount shall be paid immediately to the LLC (or the appropriate amount to the Remaining Members) by the Dissociating Member. If not paid, the Operating Agreement of Serengeti Properties, LLC \ Page 5 LLC (or Remaining Members) may take any Iegal or equitable steps to collect such including attorney's fees, which shall be paid by said Dissociating Member. 7.4 Continuation of Limiters Liability Company. Within 90 days of any event of dissociation, the Remaining Members (if more than one), by unanimous vote, may agree to continue the LLC. In such event, the continuation shall relate back to the dissociation and shall be under the terms of this Agreement. In the event the LLC purchases the interest of the Dissociating Member, then the Remaining Members are deemed to have agreed to continue the LLC under the terms of this Agreement, except that their LLC Percentages will be increased on a pro rata basis as of the date of dissociation. The Dissociated Member will have no rights in the LLC or its assets except any specified in this Section, as of the date of dissociation if the Remaining Members elect to continue the LLC. In the event that the Remaining Members do not unanimously elect to continue the LLC, then the LLC will be dissolved and wound up in accordance with Section 9. SECTION 8 Assignment 8.1 General Rules Regarding Assignment. The rules in this Section govern the assignment of a membership interest. (a) A membership interest is assignable in whole or in part only as described below, and only after a Member has notified the LLC and the other Members and the LLC or other Members have failed to purchase such interest under Section 7.1(a); (b) An assignment entitles the assignee to receive, to the extent assigned, only the future LLC distributions to which the assignor would be entitled. (c) An assignment of a membership interest does not entitle the assignee to vote or otherwise participate in the management and affairs of the LLC or to become a Member or to exercise any other rights of a Member. (d) An assignee may become a Member, but only upon the unanimous consent of all Members, at which time the assignor's rights cease as to the assigned membership interest. (e) Unless or until the assignee of a LLC Interest becomes a Member, the assignor continues to be a Member and to have the power to exercise rights of a Member, subject to the Members' or LLC's right to remove the assignor pursuant to this Operating Agreement. 8.2 Hypothecation of Membership Interest. The pledge or granting of a security interest, lien, or other encumbrance in or against any of the membership interests of a Member is not an assignment and may not cause the Member to cease to be a Member or to cease to have the power to exercise any rights or powers of a Member. The proper foreclosure of such security interest will result in the succession to rights or powers only as if it had been an assignment ofthe subject membership interest. SECTION 9 Dissolution 9.1 Events of Dissolution. The LLC is dissolved upon the happening of one of the following events: (a) at the time or upon the occasion of events specified in the LLC's Articles of Organization or elsewhere herein; (b) a dissociation pursuant to Section 7.1 if no election has been made by the Remaining Members to continue the business pursuant to Section 7.4; Operating Agreement of Serengeti Properties, LLC 1 Page 6 (c) all of the Members consent to a dissolution; (d) the entry of a decree of judicial dissolution. 9.2. Articles of Dissolution. Upon the dissolution and the commencement of winding up of the LLC, the LLC shall file Articles of Dissolution with the Secretary of State. 9Z Liaaidation. Upon dissolution, the affairs of the LLC shall be wound up by liquidating the assets and paying the liabilities of the LLC. The liabilities of the LLC shall be paid in the following order: (a) Those owing to creditors, including Members, other than liabilities to Members pursuant to Section 7. (b) Those owing to the Members pursuant to Section 7. (c) Those owing to the Members in respect to the Members' Capital Accounts. (d) Those owing to the Members in respect to the Members' Income Accounts. Any remaining funds or assets wiII be then distributed to the Members in accordance with their LLC Capital Interest Percentages. SECTION 10 Members' Powers and Limitations 10.1 Bank Accounts — Checks. The LLC may maintain bank accounts in such banks as it selects. 101 Acts Beyond Powers of Member. No Member may, without unanimous consent: (a) dispose of the goodwill of the LLC or convey, encumber, or lease any other asset of the business outside the ordinary course of business (for this purpose, the sale of any real property is deemed to be outside the ordinary course of business); (b) cause the LLC to be converted to another form of business entity; (c) do any act which would make it impossible to carry on the ordinary business of the LLC; or (d) cause the LLC to be merged with another entity or business; or (e) allow the admission of a new Member. SECTION 11 Indemnification 11.1 Mandatory Indemnification. Subject to Section 11.2, the LLC shall indemnify a Member for judgments, settlements, penalties, fines, or expenses incurred in a proceeding to which an individual is a party because the individual is or was a Member. 11.2 Limitations on Indemnification. The LLC may not indemnify a Member from liability for: (a) the amount of a financial benefit received by a Member to which the Member is not entitled; (b) an intentional infliction of damage or harm by the Member on the LLC or its Members; Operating Agreement of Serengeti Properties, LLC 1 Page 7 (c) an intentional violation of criminal law by the Member; or (d) an unlawful distribution by the Member. SECTION 12 Miscellaneous 12.1 Books and Records. The LLC shall keep at its principal place of business: (a) a current list in alphabetical order of the full name and last known business street address of each Member; (b) a copy of the Articles of Organization and all certificates of amendment thereto, together with executed copies of any powers of attorney pursuant to which any certificate of amendment has been executed; (c) copies of the LLC's federal, state and local income tax returns and reports, if any, for the three most recent years; (d) copies of any financial statements of the LLC, if any, for the three most recent years; and (a) a copy of this Operating Agreement and any amendments thereto. 12.2 Annual Meeting. The Members shall meet annually at 2:00 p.m. on the second Monday in January of each year at the principal place of business of the LLC. The Members may meet at such other times as the Members owning 10% of the Membership Percentages specify in a written notice mailed or personally delivered to each Member at least ten days before the meeting. 123 Amendment. The Members may amend this Agreement upon execution of a written amendment signed by all the Members. 12.4 Fiscal Year, The LLC's fiscal year shall be a calendar year. 12.5 Governing Law. This Agreement is governed by the laws of the State of Montana. 12.6 Counterpart Originals. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Operating Agr ement is effective this day of 4cV—VTF—AAt;�Ei?-" , 2014. M Kevin Tikka Maik W aatti Operating Agreement of Serengeti Properties, LLC \ Page 8 Return to: pas Johnson, Berg & Saxby, PLLP PO Box 3038 Kalispell, Montana 59903-3038 DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR STILLWOOD FARMS THIS DECLARATION is made this . day of November, 2014, by: Serengeti Properties, LLC 27 Meridian Court, Suite 117 Kalispell, Montana 59901 RECITALS WHEREFORE, the Declarant, Serengeti Properties, LLC, has filed plats of certain lands in Flathead County more particularly described as follows: Lot 1 AA and Lot 1 AB of Lot 1 A and Lot IBA and 1 BB of Lot 1 B, a Resubdivision of Lot 1, Three Mile Views Subdivision located in the Southeast Quarter ofthe Southwest Quarter of Section 1, Township 28 North, Range 22 West, P.M.,M., Flathead County, Montana (hereinafter "Subject Property" and sometimes "Stillwood Farms'. WHEREFORE, the Declarant owns all Lots in Stillwood Farms. The Declarant is desirous of subjecting said real property to the conditions, covenants and restrictions hereinafter set forth, each and all of which are for the benefit of said property and for each owner and contract purchaser thereof, and which shall enure to the benefit of and pass with said property and each and every parcel thereof and shall apply to and bind the successors in interest of any owner or contract purchaser thereof. NOW, THEREFORE, the Declarant, having established a general plan for the improvement and development of said property, does hereby establish these conditions, covenants and restrictions upon which and subject to which all the property and any portions thereof shall be improved or sold and conveyed by them as owner and hereby declare that said property is and shall be held, transferred, sold and conveyed subject to the conditions, covenants and restrictions hereinafter set forth which are to run with the land and shall be binding upon all Members and their successors in interest of the Declarant. r10 age i U1 1 ARTICLE I - PROPERTY SUBJECT TO COVENANTS The real property which is and shall be held, transferred, sold and conveyed subject to the covenants, conditions and restrictions hereinafter set forth is located in Flathead County, Montana and is more particularly described as follows to wit: Lot IAA and Lot 1 AB of Lot IA and Lot IBA and 1 BB of Lot 1 B, a Resubdivision of Lot 1, Three Mile Views Subdivision located in the Southeast Quarter ofthe Southwest Quarter of Section 1, Township 28 North, Range 22 West, P.M.,M., Flathead County, Montana. ARTICLE II - DEFINITIONS SECTION 1: "Property" shall mean the real property described on the plat of Stillwood Farms. SECTION 2: "Lot" shall mean any one of the Lots of Stillwood Farms. SECTION 3: "Onsite Roadway" shall mean the roadway within Stillwood Farms constructed by the Declarant for the purpose of providing access to all Lots in the development. SECTION 4: "Common Areas" shall mean any parcel of land, if any, within Stillwood Farms that is designated as such by the Declarant and annotated as such on the final plat. SECTION 5: "Declarant" shall mean and refer to Serengeti Properties, LLC and/or its assigns. SECTION 6: "Member" shall mean and refer to every person or entity that is a recorded owner of a fee, or undivided fee, interest in any Lot. Record owners who have sold any Lot under a contract for deed shall not be considered owners, but the purchasers of any Lot who are purchasing any Lot under a contract for a deed shall be considered the owner, and therefore Member, for all purposes herein. SECTION 7: "Association" shall mean the Association of Stillwood Farms property owners who own any part of the property described in Article 1 above known as Stillwood Farms. The official title of this Association will be "Stillwood Farms Homeowners Association" (SVHHA). Stillwood Farms Homeowners Association is a corporation incorporated in the state of Montana. SECTION 8: "Declaration" shall mean this Declaration of Conditions, Covenants and Restrictions for Stillwood Farms and any subsequent amendment thereto. ARTICLE III - ARCHITECTURAL AND ENVIRONMENTAL REVIEW SECTION 1- Architectural and Environmental Review Committee: The Architectural and Environmental Review Committee (hereafter referred to as "AERC" or "Committee") shall consist initially of the Declarant and any Lot owners whom the Declarant may appoint. At such a time as three -fourths (3/4) of the Lots have been sold, the duties and responsibilities of the Committee shall be assigned to the Association. Once this transfer of rights occurs, it is irreversible. However, the Declarant may assign the duties and responsibilities of the AERC to the Association in writing any time prior thereto. Page 2 of . C SECTION 2 - Architectural and Environmental Control: No site alterations including, but not limited to, road construction, fencing, driveways, utility installation, building of any structure or earth moving shall be made until the plans, specifications and proposed construction schedule have been submitted and approved in writing according to the process specified in Section 3 of these Articles. All plans must be reviewed and approved with due consideration given to harmony of external design and locations in relation to surrounding structures and topography, native vegetation, overall compatibility with surroundings and development as a whole. SECTION 3 - Plan and Review Process: In order to ensure that the design standards for Stillwood Farms contained in this Declaration are achieved, a submission of certain plans (see below) will be required. Plan submissions will also be required for revisions, alterations or additions to approved or existing improvements. The returned plans will be marked either "APPROVED" or "APPROVED SUBJECT TO CONDITIONS." SECTION 4 -Required Plans: The following plans must be submitted to the AERC: A. A site plan to an appropriate scale depicting the entire Lot and the relative location of all proposed development within the Lot including roads, driveways, fences, structures, and utilities. B. Site and landscape plans to a scale applicable for the reasonable depiction of all site disturbances with consideration given to vegetation, grading, drainage, exterior lighting, fences, driveways and parking. A reasonable depiction scale would be approximately 1" = 20'. C. Construction plans to a scale of 1/8 inch or larger for all structures with consideration given to site utilization, engineering and architectural design. SECTION 5 - Adoption of Guidelines: The AERC shall have the authority to adopt and publish guidelines setting forth the procedures and criteria for review of structures and other site improvements or modifications so long as such guidelines are not inconsistent with and are no less restrictive than this Declaration. SECTION 6 - AERC's Response: The Committee shall have thirty (30) days from the time the plans are received within which to complete its review and return the plans. If the Committee fails to respond to a proposal within such 30- day period, the owner shall then be permitted to commence construction in accordance with the submitted plans. Any deviation from such plans which in the judgment of the Committee is a substantial detriment to the appearance of the structure or of the surrounding area shall be corrected to conform with the plans submitted. SECTION 7 - Committee Enforcement: If the Committee, upon its own inspection, determines that any owner is in violation of the Committee's standards or guidelines, or has failed to properly maintain property or any permanent improvement thereon, including necessary repairs, or has constructed or made any change to any improvement not in conformance with an approved plan, or is otherwise in violation of these Covenants, it shall notify the owner in writing. Such notice shall contain a statement of the nature of the nonconformity or violation and the steps needed to remedy it. if such corrective action is not initiated within a reasonable amount of time, the Committee shall notify the Association which may itself, after written notice to the Member and failure of such Member to comply, undertake additional measures and charge the Member an assessment for any sums expended by the Association in so doing. ARTICLE 1 V - PROTECTIVE COVENANTS SECTION 1- Purpose of Covenants: The real property described above is subjected to these conditions, covenants and restrictions for the purpose of ensuring the best use and the most appropriate development and improvement of each Lot Page 3 of i C created; to protect the Members and contract purchasers of Lots in the subdivision against improper use of surrounding building Lots as will depreciate the value of their property; to preserve so far as is practicable the natural beauty of said property; to guard against the construction of buildings with unsightly or unsuitable material; to provide minimum standards for buildings proposed to be constructed on a Lot; to ensure the highest and the best development of said property; to encourage and secure the construction of attractive buildings and to provide high quality improvements of said property and, thereby, to enhance the values of improvements made by Members on their Lots. SECTION 2 - Land Use: Single-family private residences and auxiliary residential structures are permitted and must comply with the standards in Sections 3, 4 and 5 below. Additional land use conditions and restrictions are as follows: A. No mining, oil or gas drilling or gravel, sand or soil extraction operations of any kind shall be permitted on any Lot. B. No manufacturing activity shall at any time be carried on or conducted on any Lot or from any residence. Professional, "home occupations" conducted within residential structures shall be permissible. No traffic shall be generated by such activities in greater volume than would normally be expected in a residential neighborhood. C. The Declarant shall be allowed to carry out sales activity necessary to promote the development of said premises. D. No equipment or process shall be used which creates visual or audible interference with any radio, television or telephone receivers offthe premises or which causes fluctuation in electrical line voltage off the premises. E. Lot owners are responsible for the eradication and control of noxious weeds upon their property. F. The raising and/or breeding of poultry, swine, mink, dogs, cats, cows and llamas or any other animals are strictly prohibited. G. The discharge of firearms or fireworks in Stillwood Farms is prohibited. I. Horses, poultry, swine, cows and llamas may not be kept on any Lots or common areas within Stillwood Farms. SECTION 3 - Building Sites & Setback Lines: No Lot shall have more than one residential dwelling. In no case may construction of the exterior of the residential dwelling take longer than twelve (12) months from the onset of construction. All setbacks shall conform to City of Kalispell RA-1 zoning requirements. SECTION 4 -Building Standards: The following building construction standards shall apply to all buildings placed on the Lots: A. All residential dwellings shall have a living area of not less than 1,000 finished square feet on one level. A home on two levels must be at least 1,400 square feet (1,000 square feet footprint). For purposes of this paragraph, porches, balconies and garages shall not be considered part of the living area. Page 4 of 10 B. All house addresses will be visible from the road serving the property at the driveway entrance to the property and, if desired, on the house itself. All roadside addresses will be constructed ofrock, attractive metal or wood. C. All outbuildings shall be permanent in nature and constructed with materials consistent with the material of the residential dwelling. New materials will be used for the construction of all buildings. However, used brick, used beams, natural rock, etc. may be used for architectural effect. D. Metal roofing (galvanized roofing) and prefabricated siding are allowed. Additionally, material chosen for these surfaces must be tasteful and authentic in appearance. Metal roofs that are colored with baked - on enamel are allowed, but colors beyond common `subdued earth tones' of browns, greens, reds and grays are discouraged. Owners will include their intentions regarding these surfaces when submitting their plans for initial review by the Architectural and Environmental Review Committee. Owners may consult with the AERC at a later date to confirm their material and color choices for these surfaces. All buildings on a Lot shall be constructed in keeping with the architecture of the residential dwelling, terrain and environment of the premises so as not to be unsightly. E. No structures of any kind that are commonly referred to as a "mobile home," "modular" or "trailer" or that are of "boxed," "sheet metal" or "A -frame" construction shall be built or moved onto any Lot for any purpose. F. No portion of a building shall exceed thirty-five feet (35') in height measured from the average fmished grade of the site. G. All construction, once begun, shall be completed as to exterior finish including siding and/or masonry, paint and roof, ground rough graded and building debris removed within one (1) year after start of construction. No temporary building or partly finished building or structure shall be erected or placed upon the property. H. Each structure, once constructed on a Lot, shall be kept in the same condition as at the time of its initial construction, excepting normal wear and tear. All structures shall be preserved and of pleasant appearance by maintaining paint, stain or sealer as needed and shall be maintained in a sanitary condition. with appropriate fly and pest control measures. I. If any structure is damaged in any way, the owner shall, with due diligence, raze the remains and restore the site or rebuild, repair and restore the structure to its original condition and appearance. Reconstruction shall be completed within nine (9) months of the casualty. Periods in excess of nine (9) months may be approved by the AERC for good cause shown. Satellite dishes must not be more than twenty-four inches (24") in diameter. Propane tanks shall be screened from view by landscaping or decorative fencing. No short -wave radio towers or similar structures are permitted. K. All new utilities must be installed underground. Page 5 of 10 SECTION 5 - Seeding, Planting and Weed Control: To foster and protect the agricultural activities of the neighborhood, the control of invasive or noxious weeds shall be a first order responsibility of every Lot owner. Noxious weeds shall be destroyed on a regular basis to prevent them from reaching seed stage. Whenever a structure is constructed on any Lot, or for other reasons the vegetative cover is removed from the ground, the owner of said Lot shall, within thirty (30) days after completion, seed and plant a lawn or ground cover in accordance with the requirement of the Flathead County Weed Department. If the construction is completed after planting season ends in fall, the seeding or planting shall commence within thirty (30) days of the beginning of planting season the following spring. Additionally, Lot owners have the express responsibility to protect and maintain their Lots and improve the appearance of their Lots. SECTION 6 - Signs: All house addresses will be visible from the road. No other signs shall be placed on any Lot except personalized owners' name plates or signs identifying or numbering buildings (attractive metal, wood or rock material). For sale and/or for lease signs no larger than 18" x 12" are permitted. No signs are permitted outside the Lot boundaries. SECTION 7 - Pets and Livestock: Pets kept on any parcel shall not create or cause a violation of any of the other covenants contained herein such as an annoyance, nuisance or disturbance to the neighborhood or to the residents of any of the parcels and shall be confined to the owner's property in an enclosure which is not unsightly and which has been constructed in conformity to the provisions hereof relating to outbuildings. SECTION 8 - Recreational Vehicles: No trucks exceeding a capacity of one ton, tractor -trailers or inoperable vehicles or parts thereof shall at any be allowed to remain upon or park on any road or Lot within the subdivision except those vehicles or equipment that are stored within the confines of a Lot owner's garage or single outbuilding. RV vehicle and bus garages are allowed, but cannot exceed twenty-four feet (24D in height as measured from the ground to the highest point of the structure. Commercial or construction equipment may be stored on a Lot or street only during periods of construction. The parking of personal camping trailers, pickup campers or boats outdoors is not permitted. SECTION 9 - Lot Appearance and Garbage: No part of any Lot shall be used as a dumping ground or used to store or place rubbish, trash, garbage, inoperable or unlicensed cars or other unsightly objects. Each Lot owner shall avoid accumulation of such refuse or other material prohibited by these covenants. All garbage cans shall be screened from view except on collection day. Owners are encouraged to subscribe to contract refuse -hauling services. SECTION 10 - Water and Sewer System: All water shall be obtained from municipal sources. Sewer services shall also be obtained from municipal sources. Costs of maintenance are solely those of the Lot owner(s). SECTION I I - Nuisances: No obnoxious or offensive activity shall be carried on or permitted upon any of the Lots, nor shall anything be done thereon which may be or may become an annoyance or nuisance to the neighborhood; nor shall a Lot be used in any way or for any purpose which may endanger the Health or safety of or unreasonably disturb the residents of any Lot. By way of illustration and not limitation, the discharge of firearms and fireworks, driving of loud vehicles, racing and motorcycles shall constitute a nuisance within the meaning hereof. SECTION 12 - Burning: Open fires are to be made only in accordance with local burning ordinances. SECTION 13 - Fences: Any front yard fences (i.e., facing the road) shall be constructed of material approved by the AERC and must blend with the surroundings. No fence shall exceed six feet (6) in height or contain barbed wire. SECTION 14 - Boundary Control Monuments: The Declarant has caused survey monuments to be placed on the corners of each Lot. It shall be the responsibility of the owner of each Lot to immediately provide for professional replacement of any survey monuments that are removed, lost or obliterated for his Lot. ;rage 6 of 1 i SECTION 15 - Drainage Plan Compliance: Each Lot owner, upon development ofhis/herLot, shall maintain drainage features in compliance with all City zoning ordinances and applicable building codes, as well as conditions imposed by the City. SECTION 16 - Lot Size Adjustments: No residential Lot may be further subdivided from its original size (as recorded on the final plat). SECTION 17 - Wildlife Protection: Garbage and other wildlife attractors such as barbeques, coolers, etc. must be kept clean and stored so as not to encourage wild animals. Shrubs and gardens should be fenced to keep wildlife out. ARTICLE V - ASSESSMENT / COLLECTION SECTION 1 Assessment/Creation of Lien: An assessment is establish in order to finance the cost of maintaining, repairing, operating and improving the roadway, and other common areas including weed control on all common areas and easements and other costs incurred in owning and operating the same and to enforce and administer the provisions of this Declaration. Each owner, by accepting a deed to or land contract for the purchase of a property within this development, whether or not specifically so expressed in said conveying instrument, shall be deemed to agree and shall be bound to pay assessments established pursuant to the provisions of this Declaration. The fees will include regular annual assessments and special assessments, interest, costs and reasonable attorney's fees incurred in the enforcement of the provisions of this Article. Assessments, whether special or regular, may be collected on a monthly, quarterly or yearly basis as determined by the Deelarant or Stillwood Farms Homeowners Association. SECTION 2 - Duty and Powers: The Association is authorized and directed to determine annually at its regular meeting the amount necessary to maintain and improve the roadway and to provide services and facilities to the owners that it may determine appropriate. The initial assessment for 2016 and the initial assessment for all future new members is $250.00 per Lot. The initial assessment for new Members shall be prorated in accordance with Article V, Section 5. This is an annual charge due and payable to Stillwood Farms Homeowners Association. This total is subject to adjustment at subsequent annual meetings of the Association if changes in expenses warrant. In the future, the annual assessment will be computed as follows: amount of money required divided by the number of Lots equals annual assessment. Additionally, any new Members added during that period will contribute a flat fee of $250.00.. SECTION 3 - Uniform Rate of Annual Assessment: Annual assessments shall be fixed at a uniform rate for all Lots and may be collected on a monthly, quarterly, annual or other basis as determined by the Members. SECTION 4 - Special Assessments: In addition to the annual assessment authorized above, the Association, through its Members at the regular annual meeting or at any special meeting called for that purpose, may levy in any year a special assessment applicable to that year only which shall be in addition to the annual assessment. Such special assessment shall be exercised and levied only for the purpose of defraying in whole or in part the cost of any installation, construction, improvement or reconstruction repair or replacement of a portion or all of the roadway, improvements of the common areas, or of enforcing this agreement through legal proceedings provided that before any such special assessment may be levied, it shall have the assent of three -fourths (3/4) of the total votes of Members who are voting in person or by proxy at a meeting duly called for that purpose. In the event of a special meeting, written notice to each of the Lot owners included in this agreement must be given not less than twenty (20) days nor more than thirty (30) days prior to said meeting. Presence of three or more Lot owners in person or by proxy at any meeting called for the purpose of establishing any regular or special assessment shall constitute Page 7 of 10 a quorum at said meeting. A majority of said quorum should control except for a special assessment which shall require the assent: of three -fourths (3/4) of those voting on the special assessment. SECTION 5 - Commencement of Assessments: The first year for which regular annual assessments shall be established and collected shall be upon the close of the first Lot sale or January 1, 2016, whichever occurs last. The Members shall fix the amount of each annual and special assessment against each Lot at least thirty (30) days in advance of each annual assessment period. Written notice of the assessments shall be sent to every owner of record at that time. The Members shall establish the due dates. If the assessment (special) is such as it requires a vote of the Members, this shall be done before the assessment becomes effective. The Association shall, upon demand at any time, furnish a certificate in writing signed by the president ofthe Association setting forth whether the assessment on a speck Lot has been paid and, if not, the amount owing thereof_ Upon an owner purchasing a lot, his liability for regular and special assessments shall be prorated on a monthly basis to the extent of the number of months remaining from the date of purchase in any assessment period. SECTION 6 - Nonpayment of Assessments: Any assessments which are not paid when due shall be considered delinquent. If the amount is not paid within thirty (3 0) days after the due date, the amount shall bear interest from the date of delinquency at the rate of eight percent (8%) per annum. The Association may bring an action at law on the basis of an account due to collect the amount of the assessment together with interest, court costs and reasonable attorneys' fees for such action. No owner subject to assessment may waive or otherwise escape liability for the assessment herein by non-use of the roadway or common areas. In addition to the provisions for suit and collection as hereinabove set forth, the Association may suspend a delinquent owner's voting rights at Association meetings and/or the right to use, enjoy and have the benefit of the roadway or common areas. SECTION 7 - Lien: Assessments, together with any interest, costs and reasonable attorney's fees incurred in collecting same, shall be a charge on each Owner's property and shall be a continuing lien against said property as of the date the assessment becomes delinquent. Said amount shall also be a personal obligation ofthe owner ofthe property at the time when said assessment becomes due. SECTIONS -Subordination of Assessment Lien: The lien of any assessment provided herein shall be subordinate to any purchase money security interest for a Lot acquired herein or construction lien for the construction of a residence herein when said lien secures the owner's obligation to pay for said acquisition or construction. However, in the event of foreclosure of said lien, the Association shall not be required or under any obligation to provide any of the suspended benefits to any subsequent purchaser until all past obligations owed are paid in full. The provisions of this paragraph may be modified or waived in their entirety .at the discretion of the Members of the Association. ARTICLE VI - UTILITIES AND ROADWAY EASEMENTS SECTION 1- Roadway: An easement for ingress, egress and for utilities over, under and across Stillwood Farms, as shown on said plat, is hereby reserved and retained by the Declarant for locating, installing, erecting, constructing and maintaining a roadway, electric lines and other utilities. The Declarant hereby declares that the roadway described on said document is private in all respects, and the easement here reserved and retained shall be automatically conveyed by the Declarant to the Association after Declarant conveys its interest in all Lots and is intended to be dedicated for the use of the owners of the Lots. The Association shall thereafter have control over the roadway described and depicted on said plat of Stillwood Farms, No land owner may grant any easements to any property owner outside the Stillwood Farms as depicted on the final plat. The Association shall be responsible to maintain the roadway providing access to all Lots (which excludes individual driveways), including snow removal. Page 8 of 10 SECTION 2 - Reservation of Utility Easements: Rights of ingress and egress over, under, across, to and from the Lots for purposes of locating, installing, constructing,.maintaining or using electric lines, telephone lines and other utilities are retained by the Declarant and shall be automatically transferred to Stillwood Farms Homeowners Association after Declarant conveys its interest in ail Lots. All costs for extension of utilities and telephone lines from the individual service boxes will be borne by the Lot owners, and all such utilities shall be underground. Any Lot owner who shall place any building, improvement, shrub, hedge or tree on any easement shall be required, without notice, at the request of any other affected Lot owner or utility company to remove such structure, improvement or vegetation if such removal shall facilitate installation, repair or maintenance of utilities within said easement area. ARTICLE VII - AMENDMENTS This Declaration may be amended from time to time by recording an instrument in writing signed by the Declarant until three -fourths (3/4) of the Lots have been sold. When three -fourths (3/4) of all Lots in all phases of Stillwood Farms Homeowners Association have been sold, the authority to create amendments will transfer to Stillwood Farms Homeowners Association. For an amendment to be successful (and therefore amend this agreement), at least three -fourths (3/4) of the owners of Lots in Stillwood Farms must vote for the amendment. Amendments, to be effective, must be recorded in the office of the .Clerk and Recorder of Flathead County, Montana_ ARTICLE VIH - ENFORCEMENT AND TERM SECTION 1 - Who May Enforce Covenants: The Declarant, Stillwood Farms Homeowners Association or any Member shall have the right to enforce by any proceeding at law or in equity all restrictions, conditions, covenants and amendments now or hereafter imposed pursuant to the provisions of this Declaration. The failure of the Declarant, Stillwood Farms Homeowners Association or any owner to enforce any covenant or restriction herein contained shall not be deemed to be a waiver of the right to do so thereafter. The Declarant shall not have the duty to take. any affirmative action to enforce any restrictive covenants nor shall it be subject to any liability for its failure to act. SECTION 2 - Binding Arbitration, Attorney's Fees and Cost: In the event of a dispute arising between the Association or any Members in relation to the enforcement of this agreement, all parties hereby agree to submit their disagreement to binding arbitration. This arbitration will be implemented within thirty (30) days of written notice of violation. Within fifteen (15) days of written notice ofviolation, the parties will stipulate to an arbitrator. If an arbitrator cannot be stipulated to, either party may file a Petition with the District Court of Flathead County in accordance with Montana Code Annotated §27-5-3, et al. The arbitrator shall conduct the arbitration proceedings in accordance with the rules of the American Arbitration Association then in effect. The arbitrator's decision shall be conclusive and binding upon the Members and the Homeowners Association. The costs of the arbitration shall be divided equally among the parties. In the event either party commences legal proceedings in a court of law to enforce any provisions of this agreement or to enforce an arbitrator's decision, the prevailing party in such action shall be entitled to recover from the other party reasonable attorney's fees and costs of said action. SECTION 4 - Construction and Binding Effect: These covenants shall be constructed pursuant to the laws ofthe State of Montana and shall be binding upon the heirs, successors and assigns of the parties hereto. Time is of the essence in complying with these covenants. Page 9 of 10 SECTION 5 - Term: These covenants are to run with the land and shall be binding on all parties and all persons claiming under them for a period of fifteen (15) years from the date these covenants are recorded, after which time said covenants shall be automatically extended for successive periods of ten (10) years unless an instrument signed by a three - fourths (3/4) majority of the owners of the Lots has been recorded agreeing to change said covenants in whole or in part. IN WITNESS WHEREOF, the undersigned hereunto set his hand and seal the day and year first above written. SERENGETI PROPERTIES, LLC M. State of MONTANA ) )ss County of Flathead ) Mark Waatti, Member On this day, before me, the undersigned a Notary Public in and for the State of Montana, duly commissioned and sworn, personally appeared Mark Waatty known to me to be the individual described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned. WITNESS my hand and official seal hereto affixed the day and year first above written. Notary Public in and for the State of Montana Page 10 of 10 DEQ4M, Montana Department of Environmental Quality Douglas Peppmeier PE TD&H Engineering 450 Corporate Drive Suite 101 Kalispell MT 59901 Dear Mr. Peppmeier rrr1i June 10, 2015 RE: Stillwood Farms Municipal Facilities Exclusion EQ# 15-2064 City of Kalispell Flathead County This is to certify that the information and fees received by the Department of Environmental Quality relating to this subdivision are in compliance with 76-4-127, MCA and ARM 17.36.602. Under 76-4-125(2)(d), MCA, this subdivision is not subject to review, and the plat can be filed with the county clerk and recorder. Plans and specifications must be submitted when extensions of municipal facilities for the supply of water or disposal of sewage are proposed {76-4-111 (3), MCA}. Construction of water or sewer extensions prior to DEQ, Public Water Supply Section's approval is prohibited, and is subject to penalty as prescribed in Title 75, Chapter 6 and Title 76, Chapter 4. Sincerely, Leata English Subdivision Section (406) 444-4224 email len lg is17(&gov cc: City Engineer County Sanitarian file Steve Bullock, Governor I Tom Livers, Director I P.O. Box 200901 1 Helena, MT 59620-0901 1 (406) 444-2544 1 www.deq.mt.gov UN-10-2015 WED 08:11 AM FLATHEAD CO TREAS/TX FAX No, 406 758 5864 P. 001 935 1 st Ave W Ste T Kalispell, MT 59901 FLATHEAD COUNTY TREASURER Tax Payment Receipt # 151600052 property Legal Description: Sec-01 Twp-28 Rng-22 THREE MILE VIEWS Lot 1 See Tax Bill for complete list of descriptions owner of Record: FLATHEAD BANK OF BIGFORK 120 HUTTON RANCH RD KALISPELL MT 59901 Property Legal Description: Sec-01 Twp-28 Rng-22 THREE MILE VIEWS Lot 1 See Tax Bill for complete list of descriptions -pwrner 6f Record: FLATHEAD BANK OF BIGFORK 120 HUTTON RANCH RD KALISPELL MT 59901 Receipted by: JLI on 06/09/2015 ® 16.56 Number of tax bills paid = 2 Hardcopy - Not the original Page 1 Tax Dept. (406) 758-5680 FAX (406) 758-5864 Taxbill # 201447458 1st Half Assessor # : 0009129 School Disctrict : 75 Taxes ... 711.15 Penalty and interest ... 55.52 Amount Due ... 766.67 Taxbill # 201447458 2nd Half Assessor # : 0009129 School Disctrict : 75 Taxes 711.13 Penalty and Interest ... 20.06 Amount Due ... 731.19 Taxes / Penalty,,& Interest 1497.86 Less Cash .. Applied to Credit Card 1497.B6 Credit Card Fee ... 44.94 Total Credit Card Charge ... 1542.B0 Change due ... $0.00 7-5�5 Page lofl i 0a�...� FLATHEAD CO. TREASURER - TAX DEPT 935 1ST AVE. WEST, STE T KALISPELL, MT 59901 406-756-5680 TAX DEPT MOTO 0075420008014758844000 Date: 06/09/2015 04:56:22 PM CREDIT CARD SALE I CARD NUMBER: **********5120 K TRAN AMOUNT: $1,542.80 APPROVAL CD: 08490G RECORD #: D00 CLERK ID: PJ0706 Conv Fee: 44.94 Received Time Jun.10. 7:45AM Customer CoDv