Deschutes River Ranch CC&Rs, etc. by Deb Tebbs Group

Subject to change from time to time, Deschutes River Ranch Group LLC, and its approved Seller/Services, reserve the right to approve the form and terms of each ground lease agreement. RESIDENTIAL GROUND LEASE AGREEMENT This Lease Agreement is an important document that has legal consequences. It is recommended that the prospective Tenant(s) have it reviewed by an attorney prior to executing the document. Basic Lease Information: Date of Agreement: _______________________________, 200_ Commencement Date (Date on which initial Lease term begins if different From the date of the Agreement): ________________________, 200_ Land Owner: Name: __________________________________________ Address: ________________________________________ City/County: _____________________________________ State/Zip: ________________________________________ Contact Person: ___________________________________ Phone: __________________________________________ Fax: ____________________________________________ Property Manager (if different from Land Owner): Address: _________________________________________ City/County: ______________________________________ State/Zip: _________________________________________ Contact Person: ____________________________________ Phone: ___________________________________________ Fax: _____________________________________________ Community Name & Address: Name: ____________________________________________ Address: __________________________________________ City/ County: ______________________________________ State/Zip: _________________________________________ Secured Lender: Name: _____________________________________________; and its successors and assigns Address: ____________________________________________ City/County: _________________________________________ State/Zip: ____________________________________________ Contact Person: _______________________________________

Phone: ______________________________________________ Fax:_________________________________________________ Initial Term: One hundred ninety-nine (199) years, as provided in Section 2.2 Renewal Term: Eight (8) successive ninety-nine (99) year periods, as provided in Section 2.3 Rent Period: Pre-paid for initial term and all renewals. Initial Base Rent: $ _____________ prepaid Assignment/Subletting: See Section 12 Required Insurance Coverage: See Section 9.1

TABLE OF CONTENTS 1.

DEFINITIONS.................................................................................................................................6 1.1 Additional Rent....................................................................................................................6 1.2 Association...........................................................................................................................6 1.3 Association CC&Rs .............................................................................................................6 1.4 Association Documents .......................................................................................................6 1.5 Base Rent .............................................................................................................................6 1.6 Commencement Date...........................................................................................................7 1.7 Hazardous Substances..........................................................................................................7 1.8 Improvements ......................................................................................................................7 1.9 Plans and Specifications ......................................................................................................7 1.10 Property................................................................................................................................7 1.11 Rent ......................................................................................................................................7 1.12 Term.....................................................................................................................................7

AGREEMENT TO LEASE/TERM/RENEWAL TERM ................................................................7 2.1 Lease ....................................................................................................................................7 2.2 Initial Term ..........................................................................................................................8 2.3 Renewal Term(s)..................................................................................................................8 2.4 Conveyance of Land. ...........................................................................................................8

RENT/COMPLIANCE WITH ASSOCIATION DOCUMENTS ...................................................8 3.1 Base Rent. ............................................................................................................................8 3.2 Net Lease. ............................................................................................................................8 3.3 Place of Rent. .......................................................................................................................9 3.4 Compliance with Association Documents. ..........................................................................9 3.5 Benefits of Association Membership...................................................................................9

UTILITIES, TAXES, ASSESSMENTS ..........................................................................................9 4.1 Utilities.................................................................................................................................9 4.2 Taxes, Governmental Charges. ............................................................................................9

USE OF THE PROPERTY............................................................................................................11 5.1 Construction of Improvements ..........................................................................................11 5.2 Use of Property. .................................................................Error! Bookmark not defined. 5.3 Compliance with Law. .......................................................................................................11 5.4 Compliance with Recorded Instruments............................................................................12 5.5 Use of Water Rights...........................................................................................................12 5.6 Tenantâ&#x20AC;&#x2122;s Farming/Grazing. ................................................................................................12 5.7 Land Use Matters/Consent to Construction Applications. ................................................12

MAINTENANCE ..........................................................................................................................12 6.1 Maintenance.......................................................................................................................12 6.2 Title to Improvements........................................................................................................12

COVENANT AGAINST LIENS...................................................................................................13

NO SUBORDINATION BY LANDLORD ..................................................................................13

INSURANCE AND INDEMNITY ...............................................................................................13 9.1 Fire and Liability Insurance...............................................................................................13 9.2 Indemnity. ..........................................................................................................................14 9.3 Insurance Proceeds for Damage or Destruction to Mortgaged Improvements. ...................................................................................................................15

10.

CONDEMNATION.......................................................................................................................15 10.1 Condemnation of Fee Interest Terminating Lease.............................................................15 10.2 Condemnation of Fee Interest Not Terminating Lease......................................................15 10.3 Payment of Condemnation Award.....................................................................................15

11.

ESTOPPEL CERTIFICATES .......................................................................................................16

12.

ASSIGNMENT AND SUBLETTING...........................................................................................16 12.1 Assignment. .......................................................................................................................16 12.2 Assignment by Mortgagee. ................................................................................................16 12.3 Subletting. ..........................................................................................................................16 12.4 Easements. .........................................................................................................................17

13.

DEFAULT, REMEDIES ...............................................................................................................17 13.1 Events of Default. ..............................................................................................................17 13.2 Lenderâ&#x20AC;&#x2122;s Right to Cure. .....................................................................................................17 13.3 Remedies............................................................................................................................17

14.

LANDLORD'S LIMITATION ON LIABILITY...........................................................................18

15.

MEDIATION/ARBITRATION.....................................................................................................18 15.1 Mediation. ..........................................................................................................................18 15.2 Disputes to be Resolved by Binding Arbitration. ..............................................................18 15.3 Waiver of Right to Litigate. ...............................................................................................19 15.4 Selection of Arbitrator. ......................................................................................................19 15.5 Pre-Decision Arbitration Procedures. ................................................................................19 15.6 Arbitration Hearing............................................................................................................19 15.7 Governing Law. .................................................................................................................20 15.8 Arbitration Award..............................................................................................................20 15.9 Attorneys' Fees and Costs. .................................................................................................20

16.

GENERAL PROVISIONS ............................................................................................................20 16.1 Time. ..................................................................................................................................20 16.2 Waiver................................................................................................................................20 16.3 Modifications. ....................................................................................................................20 16.4 Attorneys' Fees...................................................................................................................21 16.5 Notices. ..............................................................................................................................21

16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14

Successors and Assigns. ....................................................................................................21 Foreclosure by Mortgagee. ................................................................................................21 Survival. .............................................................................................................................21 Governing Law. .................................................................................................................21 Severability. .......................................................................................................................21 Recordation. .......................................................................................................................22 Counterparts.......................................................................................................................22 Prorations. ..........................................................................................................................22 Representations..................................................................................................................22

GROUND LEASE DATED:

_________________

BETWEEN:

DESCHUTES RIVER RANCH GROUP LLC, an Oregon limited liability company

(“Landlord”)

_____________________________________

(“Tenant”)

AND: RECITALS

A. Landlord is the owner of certain real property located in Deschutes County, Oregon, legally described on the attached Exhibit A (the “Real Property”), and certain rights appurtenant thereto. B. Tenant desires to lease a portion of the Real Property as depicted on Exhibit B (the “Land”) and to construct thereon certain improvements (the “Improvements”), including a single-family residence, outbuildings, driveways, landscaping, drainage, septic system, power and other related improvements to, on and under the Land, and to have the use and possession of the Land for the construction, use, ownership and operation of the Improvements. C. Landlord desires to lease the Land to Tenant pursuant to the terms and conditions contained in this Ground Lease (this “Lease”). AGREEMENT NOW, THEREFORE, in consideration of the mutual promises of the parties set forth in this Lease, and other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, Landlord and Tenant agree as follows: 1.

DEFINITIONS

1.1 “Additional Rent” means all amounts to be paid by Tenant hereunder, other than Base Rent, as defined in Section 3.4. 1.2 “Association” means the Deschutes River Ranch Homeowners’ Association, Inc., an Oregon nonprofit corporation. 1.3 “Association CC&Rs” means the Declaration of Protective Covenants, Conditions and Restrictions for Deschutes River Ranch, recorded in the real property records of Deschutes County, as the same may be amended from time to time. 1.4 “Association Documents” means the Association CC&Rs, the Articles of Incorporation and Bylaws for the Association, all rules and regulations promulgated by the Association, and any Association architectural or design review guidelines, together with all amendments to the foregoing documents. 1.5

“Base Rent” means the amounts payable pursuant to Section 3.1.

1.6

“Commencement Date” means the date of this Lease.

1.7

“Hazardous Substances” means:

1.7.1 All substances, wastes, pollutants, contaminants, and materials now or hereafter regulated, or defined or designated as hazardous, extremely or imminently hazardous, dangerous, or toxic, under the following federal statutes and their state counterparts, as well as these statutes' implementing regulations: the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. § 9601 et seq.; the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq.; the Atomic Energy Act of 1954, 42 U.S.C. § 2011 et seq.; and the Hazardous Materials Transportation Act, 49 U.S.C. § 5101 et seq.; 1.7.2 Any additional hazardous substances or materials that are now or become defined as “hazardous substances,” “hazardous waste,” “toxic substances,” or “toxic waste” under any other federal law or under any state, county, municipal, or other law applicable to the Property or under any regulations promulgated under any such law; 1.7.3

Petroleum and petroleum products including crude oil and any

1.7.4

Asbestos; and

1.7.5

Natural gas, synthetic gas, and any mixtures thereof.

fractions thereof;

1.8 “Improvements” means all buildings, structures and improvements now situated on or hereafter erected or constructed in, upon or under the Land or any part thereof. 1.9 “Plans and Specifications” shall mean the final architectural plans and specifications for construction of the Improvements. 1.10

“Property” means the Land and the Improvements.

1.11

“Rent” or “rent” means Base Rent and Additional Rent.

1.12

“Term” means the term of this Lease, as provided in Section 2.2.

Certain additional capitalized terms are used in this Lease. Such terms shall have the meanings set forth in the sections of this Lease where the definitions of such terms appear. 2.

AGREEMENT TO LEASE/TERM/RENEWAL TERM 2.1

Lease.

In consideration of the rents, covenants and agreements hereinafter reserved and contained on the part of Tenant to be respectively paid, observed and performed, Landlord does demise and lease the Land unto Tenant, and Tenant does hereby accept such demise and lease to have and to hold for the Term and upon the conditions hereinafter contained. Together with the

Land, this Lease shall include all water rights currently associated with the Land, if any, unless and until such rights are terminated by events beyond Landlordâ&#x20AC;&#x2122;s reasonable control, and provided Tenant complies with the terms of this Lease relating to such water rights. 2.2

Initial Term.

The initial Term shall commence upon the Commencement Date and shall expire on the earlier of: (i) the one hundred ninety-ninth (199th) anniversary of the Commencement Date, unless extended pursuant to the options provided in Section 2.3; or (ii) the date this Lease is terminated pursuant to the terms and provisions of this Lease. 2.3

Renewal Term(s).

At the end of the Term (as the same may be extended) of this Lease, the Term shall automatically be extended for eight (8) successive periods of ninety-nine (99) years each (for a total of 991 years), unless both parties hereto sign a lease termination not later than thirty (30) days prior to the then current expiration date and record a memorandum thereof in the Official Records of Deschutes County, Oregon. The terms of each renewal period shall be the same as the terms existing during the prior Term; provided, however, Tenant shall have no obligation to pay additional Base Rent. 2.4

Conveyance of Land.

The parties intend that Tenantâ&#x20AC;&#x2122;s use of the Land be as close to fee ownership as is reasonably practicable. If Landlord could convey fee title to the Land to Tenant as of the date of this Lease, it would. Accordingly, the parties agree that if during the Term of this Lease (including any extensions thereof) Oregon law ever permits Landlord to convey fee simple title to the Land and all Improvements thereon to Tenant as one complete, separate legal lot, Landlord (including its successors and assigns) covenants, at no cost to itself, to do so; provided, however, Tenant is not then in material default hereunder. 3.

RENT/COMPLIANCE WITH ASSOCIATION DOCUMENTS 3.1

Base Rent.

Concurrent herewith, Tenant has paid Landlord the sum of __________________ Dollars ($__), which amount equals the Base Rent for the initial Term. 3.2

Net Lease.

Because the parties intend that Tenant shall have all of the benefits and obligations with respect to the Land that an owner of fee title would have, Tenant shall be responsible for paying all of the costs and expenses associated with ownership of the Land. Accordingly, this is a net lease and to the extent Landlord is obligated to pay any amount as the fee owner of the Land, Tenant shall promptly reimburse Landlord such sum. Except as otherwise specifically provided in this Lease, all costs, expenses, and obligations of every kind and nature whatsoever relating to the ownership, maintenance, repair, restoration, replacement and operation of the Property,

including, without limitation, special assessments levied against all or any part of the Property by any governmental or quasi-governmental agency or authority. Tenant shall reimburse, indemnify, protect, defend and hold Landlord and Landlord's employees and agents harmless from and against any and all claims, liabilities, costs, expenses and obligations which are to be paid for or performed by Tenant hereunder. The obligations contained in the foregoing sentences shall survive the expiration or sooner termination of this Lease. All amounts to be paid by Tenant hereunder, other than Base Rent, shall constitute Additional Rent. As used herein, “rent” shall mean Base Rent and Additional Rent. 3.3

Place of Rent.

All payments due to Landlord, including those described in Section 3.2 above shall be paid at Landlord’s address set forth above, or such other place or places as Landlord may direct by written notice to Tenant. Additional amounts payable by Tenant under this Lease shall be paid by Tenant directly to the party to whom such obligation is owed with proof of payment satisfactory to Landlord being provided to Landlord upon thirty (30) days prior written request for such proof of payment. 3.4

Compliance with Association Documents.

As a material part of the consideration to induce Landlord to enter into this Lease, Tenant agrees that it shall strictly comply with the terms of the Association Documents. This shall include, without limitation, the timely payment of all assessments and other amounts due to be paid to the Association under the Association CC&Rs. 3.5

Benefits of Association Membership.

As the tenant under this Lease, Tenant shall be an “Owner” as that term is defined in the Association CC&Rs during the Term of this Lease. As such, Tenant shall have all the rights of Owners under the Association Documents, including, without limitation, the right to use and enjoy certain easements granted to the Association by Landlord. 4.

UTILITIES, TAXES, ASSESSMENTS 4.1

Utilities.

Tenant shall pay and discharge punctually, as and when the same shall become due and payable, all charges for utility services provided to the Property or any portion thereof, including, but not limited to, charges for heat, electricity, gas, sewer service, water service, garbage or refuse collection and any other similar utility charges. 4.2

Taxes, Governmental Charges. 4.2.1

Payment.

Tenant shall promptly pay and discharge punctually, all real estate taxes, the currently due periodic payments of governmental assessments, personal property taxes and other comparable governmental charges of every kind and nature whatsoever, extraordinary as well as 9

ordinary, assessed against the Property or imposed, charged, levied or laid, or which become due and payable or liens upon or for or with respect to the Property or any part thereof, or any buildings, appurtenances or equipment owned, leased or used by Tenant thereon or therein, or any part thereof, together with all interest and penalties thereon, under or by virtue of all present or future laws, ordinances, requirements, orders, directives, rules or regulations of the federal, state, county, town and city governments and of all other governmental authorities whatsoever (collectively, “Governmental Charges”); provided, however, Tenant may structure the payment of any Governmental Charges which are payable over time (such as assessments for local improvement districts) to allow Tenant to pay such Governmental Charges over the longest period legally allowed. All Governmental Charges for the tax years in which this Lease shall commence or terminate, including, without limitation, annual real property taxes (whether or not paid in installments), shall be prorated between Tenant and Landlord as of the Commencement Date or date of termination as the case may be. To the extent that any Governmental Charges are assessed against Landlord, Tenant shall, at Landlord’s request, either pay the same or reimburse Landlord for the same not later than ten (10) business days after the date of written request from Landlord for the same. Such written request shall include documentation showing Landlord’s calculation of Tenant’s pro rata share of such Governmental Charges. 4.2.2

Contest of Governmental Charge.

Tenant may contest the amount or validity of any Governmental Charge by appropriate proceedings, so long as such contest, or the manner in which Tenant pursues such contest, does not result in the initiation of any foreclosure proceedings against the Property or any portion thereof and provided that such proceedings are conducted by Tenant at its own cost and expense and free of any expense to Landlord. However, Tenant shall promptly pay such item contested without regard to the initiation of foreclosure proceedings unless the proceedings operate to prevent or stay the collection of the item so contested or unless the nonpayment of such item during the proceeding will result in no liability or enforcement except for the Governmental Charge plus interest at the conclusion of such proceeding. In any event, Tenant shall pay any and all interest, penalties or other charges incurred as a result of any delay in payment of any such item. On the termination of such proceedings, Tenant shall deliver to the Landlord proof of the amount of the item as finally determined, and proof of payment thereof including all interest, penalties or other charges. The Landlord, at Tenant's sole expense, shall join in any such proceedings if requested by Tenant. 4.2.3

Reimbursement to Landlord.

To the extent a Governmental Charge is levied against Landlord, as owner of the Real Property, Tenant shall reimburse Landlord for Tenant’s pro rata share (including the full cost of taxes on Improvements on the Land) of such Governmental Charge not later than ten (10) business days after Landlord sends written notice to Tenant requesting the same. 4.2.4

Separate Tax Account for Improvements.

To the extent that the Deschutes County Assessor permits the same, Landlord and Tenant shall cooperate to assure that Tenant obtains a separate tax account for the Land and/or the Improvements thereon so that real property taxes are assessed directly to Tenant.

USE OF THE PROPERTY 5.1

Construction of Improvements

5.1.1 Tenant shall, at its sole cost and expense, commence construction of Improvements on the Land not later than the date that is five (5) years from the date of full execution of this Lease. Following commencement of construction, Tenant shall thereafter diligently prosecute to completion the construction of any Improvements, and further shall construct the Improvements in a good and workmanlike manner, in accordance with good construction practices and in strict compliance with all federal, state, local and other laws, regulations, codes, orders, ordinances, rules, regulations and statutes, including, without limitation, those relating to fire, safety, land use, health and sanitation, environmental protection, conservation, parking, zoning and building or construction. In addition, all Improvements shall comply with the terms of the Association Documents, including, without limitation, the architectural review provisions contained in the Association CC&Rs and any related architectural or design review guidelines. See Exhibit C regarding building approval, if applicable. 5.1.2 Tenant acknowledges that, except as specifically provided herein, Landlord has made no representation whatsoever regarding the Land, its condition, its suitability for development or the applicable zoning regulations. Tenant is leasing the Land in its â&#x20AC;&#x153;AS-ISâ&#x20AC;? condition and Landlord shall have no liability whatsoever therefor. 5.2

Compliance with Law.

5.2.1 During the Term, Tenant shall, at its own cost and expense, promptly observe and comply with all present and future laws, ordinances, requirements, orders, directives, rules and regulations of the federal, state, county, town and city governments and of all other governmental authorities affecting the Property or appurtenances thereto or any part thereof, whether the same are in force at the commencement of the Term or may in the future be passed, enacted, or directed, and Tenant shall pay all costs, expenses, liabilities, losses, damages, fines, penalties, claims, and demands, including reasonable attorneys' fees at trial and on appeal, that may in any manner arise out of or be imposed because of the failure of Tenant to comply with the covenants of this Section. 5.2.2 Tenant shall have the right to contest by appropriate legal proceedings diligently conducted in good faith, in the name of the Tenant, or Landlord (if legally required), or both (if legally required), without cost or expense to Landlord, the validity or application of any law, ordinance, rule, regulation, or requirement of the nature referred to in Section 5.2., and, if by the terms of any such law, ordinance, order, rule, regulation or requirement, compliance therewith may legally be delayed pending the prosecution of any such proceeding, Tenant may delay such compliance therewith until the final determination of such proceeding. 5.2.3 Landlord agrees to execute and deliver any appropriate papers or other instruments which may be necessary or proper to permit Tenant so to contest the validity or application of any such law, ordinance, order, rule, regulation or requirement and to fully

cooperate with Tenant in such contest; provided, however, Tenant shall reimburse Landlord for all cost and expenses incurred in connection therewith. 5.3

Compliance with Recorded Instruments.

Tenant shall comply with all documents recorded against the Property, including the Association CC&Rs. Tenant acknowledges that, under the Association CC&Rs, the Property constitutes a Lot and, during the Term, Tenant is considered an “Owner” of such Lot. Accordingly, Tenant is subject to assessments, rules and regulations and other obligations under the Association CC&Rs and other Association Documents. In addition, Tenant has certain rights under the Association CC&Rs as a Lot Owner. 5.4

Use of Water Rights.

Landlord and Tenant, as applicable, shall comply with all conditions attached to any water rights associated with the Land and shall take all steps necessary to assure that such water rights do not lapse. Without limiting the generality of the foregoing, Tenant shall irrigate the Land annually, sign no in-stream leases or otherwise sell, sublease or transfer any portion of the water rights. Subject to an interruption in the water supply due to circumstances that Landlord cannot reasonably control, Landlord agrees to transport Tenant’s allocation of water to the Land each year for distribution over the Land by Tenant. Tenant shall reimburse Landlord for all the costs of such water as well as Tenant’s pro rata share of the costs of transporting such water within thirty (30) days of the date on which Landlord sends written notice that the same is due. 5.5

Tenant’s Farming/Grazing.

Tenant shall keep the Land in good condition and repair, exercising the highest standards of good husbandry and agricultural practices. Without limiting the generality of the foregoing, Tenant shall not overgraze the land and shall re-seed the Land as needed to assure that the grass or crops remains green throughout the growing season. 5.6

Land Use Matters/Consent to Construction Applications.

To the extent that Tenant needs Landlord’s consent (as fee owner of the Land) to land use or building permit applications, Landlord shall cooperate and shall not unreasonably withhold, delay or condition such consent. 6.

MAINTENANCE/TITLE TO IMPROVEMENTS 6.1

Maintenance.

Tenant shall use reasonable precaution to prevent injury to the employees, guests and invitees of Tenant and Landlord on the Property. Landlord shall have no obligation to furnish any services or facilities or to make any improvements, repairs, replacements, restorations or alterations in or to the Property or any portion thereof. 6.2

Title to Improvements.

Title to all the Improvements shall remain solely in Tenant. 7.

COVENANT AGAINST LIENS

Tenant shall keep the Property free from any liens arising out of the construction of the Improvements and out of any other work performed, materials furnished or obligations incurred during the Term by or for the account of Tenant. In the event Tenant performs any permitted work on the Property which might give rise to a statutory lien, Tenant will not commence such work without (i) giving advanced written notice to the Association (as required by the CC&Rs); and (ii) permitting the Association and/or Landlord to post a Notice of Non-Responsibility (pursuant to ORS 87.030 or applicable successor provisions) at the site of such work on behalf of the Landlord. If, because of any act or omission of Tenant, any construction lien or other lien, charge or order for the payment of money shall be filed against Landlord or any portion of the Property, Tenant shall, at its own cost and expense, cause the same to be discharged of record or bonded within ninety (90) days after the filing of such lien, charge or order, and Tenant shall indemnify, protect, defend and hold harmless Landlord from and against all costs, liabilities, suits, penalties, claims and demands, including attorneys' fees at trial and on appeal, resulting therefrom. The obligations contained in the foregoing sentence shall survive the expiration or sooner termination of this Lease. 8.

NO SUBORDINATION BY LANDLORD

Landlord does not and shall not be required to subject its fee interest in the Property and its interest in this Lease to the lien of any leasehold financing obtained by Tenant. 9.

INSURANCE AND INDEMNITY 9.1

Fire and Liability Insurance.

9.1.1 Tenant will provide and maintain or cause to be provided and maintained throughout the Term an all risk extended coverage property insurance policy in the amount of the full cost of replacement of: (i) the Improvements, and (ii) such other property in or forming part of the Property as may be commercially reasonable at the time. If required by a mortgagee (as defined in Section 13.3), such property insurance shall name Tenant’s mortgagee as an additional insured or loss payee. During the course of any construction or repair of any Improvements on the Property, Tenant shall maintain builder’s “completed value” insurance against “all risks of physical loss”. Tenant will provide and maintain throughout the Term, comprehensive general liability insurance in commercially reasonable amounts, covering all persons and property injured on the Property or in connection with Tenant’s business conducted in, on or about the Property, or in connection with any condition of the Property, and which liability policy shall not eliminate cross-liability and shall contain a severability of interest clause. All policies required hereunder shall contain an express waiver of any right on the part of the insurer against Landlord and further shall contain a provision that no act or omission of Tenant shall affect or limit the obligation of the insurance company to pay the amount of any loss sustained. To maintain adequate insurance coverage, it may be necessary, from time to time, for Tenant to increase the coverage limits of its insurance policies. Tenant agrees to maintain reasonably adequate coverage limits at all times. In addition, Tenant shall from time to

time acquire all additional insurance that would be carried by reasonably prudent homeowners similarly situated. 9.1.2 Landlord shall not be liable or in any way responsible to the Tenant in respect of any loss, injury or damage to persons or property suffered by Tenant or others, or interruption of Tenant’s occupancy for any reason whatsoever, including, without limitation, resulting from theft, damage, fire or other casualty, or operations in the construction of any private or public work or otherwise. 9.1.3 Except to the extent such claim arises out of the gross negligence or willful misconduct of Landlord, Tenant hereby releases Landlord and its partners, agents and employees from all liability for any loss or damage to the Property which arises as a result of fire or any other event with respect to which fire or other property insurance is required to be maintained by Tenant and such release shall extend to liability to any person claiming through Tenant as a result of the right of subrogation. In connection therewith, Tenant shall cause its insurance companies to include a waiver of subrogation clause in Tenant’s property insurance policy. 9.2

Indemnity.

Tenant as a material part of the consideration to be rendered to Landlord, hereby agrees to protect, defend, indemnify and hold harmless Landlord and its partners, agents and employees against any and all liability, damage, costs, penalties, claims or judgments, including reasonable attorneys' fees at trial and on appeal as incurred, arising from or attributable to the: (i) Property, (ii) any act or omissions of Tenant, or of Tenant's officers, agents, servants, employees, contractors, invitees, licensees or sublessees, or (iii) in connection with any breach by Tenant of any provision of this Lease. Without limiting the generality of the foregoing, Tenant shall indemnify, protect, defend, and hold harmless Landlord and its partners, agents and employees from and against any and all claims, losses, damages, response costs and expenses of any nature whatsoever arising out of or in any way related to the generation, release, presence, storage, or deposit of Hazardous Substances on the Property from and after the Commencement Date, including, but not limited to: (a) claims of third parties, including governmental agencies, for damages, response costs, remedial work, injunctive or other relief; (b) the cost, expense or loss to Landlord of any injunctive relief, including preliminary or temporary injunctive relief, applicable to Landlord or the Property; (c) the expense, including fees of attorneys, engineers, paralegals and experts, of reporting the existence of Hazardous Substances to any agency of the State of Oregon or the United States as required by applicable laws or regulations; and (d) any and all expenses or obligations, including attorneys' and paralegal fees, incurred at, before, or after any trial or appeal therefrom or any administrative proceeding or appeal therefrom whether or not taxable as costs, including, without limitation, attorneys' and paralegal fees, witness fees (expert and otherwise), deposition costs, copying and telephone charges and other expenses, all of which shall be paid by Tenant promptly after Landlord incurs the obligation to pay such amounts. In no event shall the terms of this Section 9.2 be construed to make Tenant liable to Landlord for loss or damage to the extent the same are caused by Landlord’s negligence or willful misconduct. Tenant’s obligations under this Section 9.2 shall survive the expiration or sooner termination of this Lease.

9.3

Insurance Proceeds for Damage or Destruction to Improvements.

In the event of damage or destruction to any portion of the Improvements, Landlord shall have no right to receive insurance proceeds from any of Tenant’s policies insuring such Improvements to the extent such proceeds relate solely to the Improvements. To the extent that any portion of proceeds relate to Improvements on the Land that constitute security under a recorded mortgage or trust deed, Landlord agrees and consents that the same shall be paid to Tenant’s secured lender (and shall promptly turn over such award if it is paid to Landlord); provided, however, Landlord shall have no liability for a failure of an insurance carrier to so direct such proceeds. 10.

CONDEMNATION 10.1

Condemnation of Fee Interest Terminating Lease.

10.1.1 In the event any governmental or quasi-public entity with condemning authority initiates condemnation proceedings (including therein a conveyance under threat of condemnation) condemning the fee interest in the whole of the Property, then this Lease shall terminate as of the date the condemning authority takes possession. 10.1.2 In the event of a taking (or conveyance) resulting in the termination of this Lease as provided in this Section 10.1, the parties hereto agree to cooperate in applying for and in prosecuting any claim for such taking and further agree that the aggregate net award for the Property, after deducting all expenses and costs, including attorneys’ fees incurred in connection therewith, shall be distributed to Tenant. Nothing contained in this Lease shall be construed to deprive Landlord of any portion of the award intended as compensation for a taking of any portion of the Real Property other than the Property. 10.2

Condemnation of Fee Interest Not Terminating Lease.

In the event of a partial taking (or conveyance) of the Property not resulting in the termination of the Lease as provided in Section 10.1, this Lease shall remain in effect. To the extent the compensation available or paid to Tenant with respect to the Property upon such partial taking (or conveyance) is in excess of the amount actually applied by Tenant to repair and restore the Property, then such excess shall be paid to or retained by Tenant. 10.3

Payment of Condemnation Award.

In the event of a condemnation of any portion of the Property, Landlord shall have no right to any award paid by the condemning authority to the extent the same relates solely to the Property or any portion thereof. To the extent that any portion of an award relates to Improvements on the Land that constitute security under a recorded mortgage or trust deed, Landlord agrees and consents that the same shall be paid to Tenant’s secured lender (and shall promptly turn over such award if it is paid to Landlord); provided, however, Landlord shall have no liability for a failure of a condemning authority to so direct such award.

11.

ESTOPPEL CERTIFICATES

Each of Landlord and Tenant agree to execute, at the request of the other, within ten (10) days after request therefor, such certificates as may be reasonably required stating, among other things, that this Lease is in full force and effect (if true), whether such Lease has been modified or not, and the dates to which the rent and charges have been paid. 12.

ASSIGNMENT AND SUBLETTING 12.1

Assignment.

Tenant shall have the right to directly or indirectly assign, transfer or convey this Lease or Tenant’s interest in all or part of the Property without the obligation to obtain Landlord’s consent; provided, however, Tenant shall provide Landlord with written notice of the assignment no later than thirty (30) days after the effective date of such assignment; and provided further, the assignee agrees in writing to be bound by the terms hereof. Tenant shall have the right to hypothecate or encumber this Lease without Landlord’s consent; provided, however, Tenant provides Landlord with written notice of the same not later than thirty (30) days after the effective date of such hypothecation or encumbrance. Landlord may sell, transfer, convey, encumber or otherwise deal with its interest in the Land, this Lease, or any portion of either or any interest of Landlord therein, without the consent of Tenant and without restriction; provided, however, Landlord provides Tenant with written notice of the same together with the name and address for any successor to Landlord not later than thirty (30) days after the effective date of such transfer. Any purchaser or transferee from Landlord will become bound by and covenant to perform the covenants and obligations of Landlord under this Lease, and upon such assumption Landlord shall, without further written agreement, be released of liability and obligations under this Lease to the extent such liability and obligations arise after the date of the transfer. Any purchaser or transferee from Tenant will be bound by and covenant to perform the covenants and obligations of Tenant under this Lease, and upon assumption, Tenant shall, without further written agreement, be released of liability and obligations under this Lease to the extent such liability and obligations arise after the date of the transfer. Under no circumstances shall Landlord have the right to encumber the Property with mortgages, trust deeds or other financing instruments. 12.2

Assignment by Mortgagee.

In the event of a foreclosure by Tenant’s mortgagee, which mortgagee subsequently sells and assigns the Tenant’s interest hereunder to a third party purchaser (the “assignee”), then mortgagee shall be released from liability accruing hereunder on or after the date of such sale and assignment; provided, however, mortgagee provides Landlord with written notice of the assignment no later than ten (10) days after the effective date of such assignment and provided further, the assignee agrees in writing to be bound by the terms hereof. As used herein, the term “mortgagee” shall refer only to an institutional lender beneficiary under a valid, first-position mortgage or deed of trust recorded against the Property in the real property records of Deschutes County, Oregon. 12.3

Subletting.

Tenant shall have the right to sublet all or any portion of the Property without Landlord’s consent; provided, however, Tenant shall provide Landlord with written notice of the assignment no later than thirty (30) days after the effective date of such assignment; and provided further, the sublessee agrees to be bound by the terms hereof. 12.4

Easements.

Landlord shall cooperate with Tenant in executing documents or instruments requested by Tenant to establish such utility, access, parking, signage and other developmental easements as Tenant reasonably requires to develop the Property. 13.

DEFAULT, REMEDIES 13.1

Events of Default.

The following shall be events of default by Tenant hereunder: 13.1.1 Failure of Tenant to pay any rent or other charge within thirty (30) days after Landlord sends written notice that such payment is due and unpaid. 13.1.2 Failure of Tenant to comply with any other term or condition or to fulfill any other covenant, agreement or obligation of Tenant under this Lease within thirty (30) days after Landlord sends written notice specifying the nature of the default with reasonable particularity. If the default is of such a nature that it cannot be remedied fully within such thirty (30) day period, this requirement shall be satisfied if Tenant begins correction of the default within the thirty (30) day period and thereafter proceeds with reasonable diligence and in good faith to effect the remedy as soon as is reasonably possible. 13.2

Lender’s Right to Cure.

Provided Tenant, or Tenant’s mortgagee (as defined in Section 13.3), has timely given Landlord the current address for any mortgagee of Tenant’s interest in this Lease, Landlord shall provide a copy of any notice of default sent under Section 13.1 to such mortgagee. Each such mortgagee shall have the right to cure any default under this Lease on Tenant’s behalf during any cure periods provided hereunder or under any notice of default sent by Landlord; provided, however, mortgagee’s cure period for monetary defaults shall be thirty (30) days from the date on which Landlord sends notice of the default. 13.3

Remedies.

13.3.1 In the event of a default by Tenant hereunder, Landlord shall have the right to recover all damages caused by the default, including attorneys' fees as incurred. Subject to Landlord's duty to mitigate Landlord's damages, damages shall include all costs and expenses for which Tenant is liable hereunder prior to default (and has not paid), all legal expenses and other related costs incurred by Landlord following Tenant's default and awarded by a trial or appellate court. Landlord may sue periodically for damages as they accrue without barring a later action for further damages.

13.3.2 Landlord shall have the right to cure a default by Tenant for the account of and at the expense of Tenant, in which case Tenant shall reimburse Landlord for all costs and expenses incurred in connection therewith upon demand. A failure of Tenant to reimburse Landlord for any such expenses within ten (10) days of the date on which Landlord sends a written notice that the same are due shall constitute a separate default hereunder. 13.3.3 In addition to the other rights contained in this Lease, in the event of a default by Tenant and notwithstanding the provisions contained in Section 15, Landlord shall have all remedies available to it at law or in equity. Notwithstanding the foregoing, Landlord shall not have the right to terminate this Lease. 14.

LANDLORD'S LIMITATION ON LIABILITY

Tenant shall have recourse only to Landlord's estate and property in the Real Property, as the same may exist from time to time for the satisfaction of any judgment or claim against Landlord resulting from a default by Landlord hereunder. No partner, member, agent or employee of Landlord, shall be held to any personal liability hereunder, nor shall resort be had to their private property for satisfaction of any claim hereunder. This limitation shall extend to any agreement, covenant, assignment, assumption or action made, delivered, executed or done under or in connection with this Lease. 15.

MEDIATION/ARBITRATION 15.1

Mediation.

If a dispute arises between the parties out of or relating to this Lease, then, except as provided in Section 15.2, prior to instituting arbitration proceedings pursuant to section 15.2 below, the parties shall endeavor to settle the dispute through direct discussions. If the dispute is not promptly resolved through direct discussions, the parties may, by mutual agreement, endeavor to settle the dispute by mediation, using a single mutually acceptable mediator. The mediator shall, to the extent he or she deems appropriate, perform the mediation in accordance with the Commercial Rules of the American Arbitration Association. The location of the mediation shall be in Bend, Oregon. Any request for mediation shall specify with particularity the dispute to be mediated and shall suggest at least three mediators acceptable to the requesting party. The party receiving such request shall respond to the same within five (5) business days of receipt. If the parties agree to mediation of the dispute, the parties agree to conclude such mediation within thirty (30) days of filing of the request. In the event the mediation is not successful in resolving the dispute within such thirty (30) day period, either party may terminate such mediation at any time thereafter. 15.2

Disputes to be Resolved by Binding Arbitration.

The submission of all matters to mediation and arbitration in accordance with the terms of this Section is the sole and exclusive method, means, and procedure to resolve any and all claims, disputes, or disagreements arising under this Lease, except for (i) all claims by either party which (a) seek anything other than enforcement of rights under this Lease, or (b) are primarily founded upon matters of fraud, willful misconduct, bad faith, or any other allegations

of tortuous action, and seek the award of punitive or exemplary damages, and (ii) claims relating to Landlord's exercise of any forcible entry and detainer rights pursuant to Oregon law or rights or remedies used by Landlord to gain possession of the Property or terminate Tenant's right of possession to the Property, which disputes shall be resolved by suit filed in the applicable court, the decision of which court shall be subject to appeal pursuant to applicable law. 15.3

Waiver of Right to Litigate.

The parties hereby irrevocably waive any and all rights to resolve a dispute in a manner which is contrary to the provisions of this Section 15. The parties shall at all times conduct themselves in strict, full, complete, and timely accordance with the terms of this Section and all attempts to circumvent the terms of this Section shall be absolutely null and void and of no force or effect whatsoever. 15.4

Selection of Arbitrator.

Any dispute to be arbitrated pursuant to the provisions of this Section shall be determined by binding arbitration in Bend, Oregon pursuant to the rules then in effect of the American Arbitration Association (the “AAA”). Such arbitration shall be initiated by the parties, or either of them, within ten (10) days after such party sends written notice (the “Arbitration Notice”) of a demand to arbitrate by registered or certified mail to the other party and to the AAA. The Arbitration Notice shall contain a description of the subject matter of the arbitration, the dispute with respect thereto, the amount involved if any, and the remedy or determination sought. The parties shall, within ten (10) days after the initiation of the arbitration, attempt to agree on a person to serve as the arbitrator who shall be an attorney licensed to practice law in the State of Oregon and who is experienced in real estate matters (the “Arbitrator”). If they are unable to so agree, the AAA will provide a list of three persons (with such qualifications) and each party may strike one. The remaining person (or if there are two, the one selected by the AAA) will serve as the Arbitrator. 15.5

Pre-Decision Arbitration Procedures.

The Arbitrator shall schedule a pre-hearing conference to resolve procedural matters, arrange for the exchange of information, obtain stipulations, and narrow the issues. The parties will submit proposed discovery schedules to the Arbitrator at the pre-hearing conference. The scope and duration of discovery will be within the sole discretion of the Arbitrator. The arbitrator shall have the discretion to order a pre-hearing exchange of information by the parties, including, without limitation, production of requested documents, exchange of summaries of testimony of proposed witnesses, and examination by deposition of parties and third-party witnesses. This discretion shall be exercised so as to limit the scope of discovery to the amount of discovery which the Arbitrator determines to be reasonable under the circumstances. 15.6

Arbitration Hearing.

Any party may be represented by counsel or other authorized representative. The parties may offer such evidence as is relevant and material to the dispute. The Arbitrator shall be the judge of relevance and materiality.

15.7

Governing Law.

In rendering a decision, the Arbitrator shall determine the rights and obligations of the parties according to the substantive and procedural laws of Oregon and the terms and provisions of this Lease. 15.8

Arbitration Award.

The Arbitrator shall issue the award as soon as reasonably possible following the conclusion of the arbitration hearing, but in no event later than thirty (30) days after the conclusion of the arbitration hearing. The Arbitrator's award shall be based on the evidence introduced at the hearing, including all logical and reasonable inferences therefrom. The Arbitrator may make any determination, and/or grant any remedy or relief that is just and equitable; provided, however, in no event may the Arbitrator award punitive damages. The award must be based on, and accompanied by, a written statement of decision explaining the factual and legal basis for the award as to each of the principal controverted issues. The award shall be conclusive and binding, and it may thereafter be confirmed as a judgment by the applicable court of the State of Oregon, subject to challenge only: (i) on the grounds set forth in ORS 36.355, or (ii) based upon the Arbitrator's incorrect application of the substantive laws of Oregon. The validity and enforceability of the Arbitrator's decision is to be determined exclusively the Oregon courts pursuant to the provisions of this Lease. 15.9

Attorneys' Fees and Costs.

Except as may be determined by the Arbitrator pursuant to the remainder of this Section 15.8, the parties shall jointly share the costs of arbitration but shall pay their own legal fees. The Arbitrator may award costs, including, without limitation, attorneys' fees, and expert and witness costs, to the prevailing party, if any, as determined by the Arbitrator in the Arbitrator's discretion. The Arbitrator's fees and costs shall be paid by the non-prevailing party as determined by the Arbitrator in the Arbitrator's discretion. 16.

GENERAL PROVISIONS 16.1

Time.

Time is of the essence of the performance of each obligation of Tenant and Landlord under this Lease. 16.2

Waiver.

Any waivers shall be in writing signed by the party to be bound by such waiver. Waiver of performance of any provision shall not be a waiver of nor prejudice the party's right otherwise to require performance of the same provision or any other provision in any other instance. 16.3

Modifications.

This Lease may not be modified except by an instrument in writing dated and signed by all parties hereto. 20

16.4

Attorneys' Fees.

In the event suit or action is instituted to interpret or enforce the terms of this Lease, the prevailing party shall be entitled to recover from the other party such sum as the judge may adjudge reasonable as attorneys' fees at trial or on appeal of such suit or action, in addition to all other sums provided by law. 16.5

Notices.

Any notice that any party desires to give the other shall be given by hand delivery, overnight courier, confirmed facsimile or by certified mail, return receipt requested, addressed to a party at its address first set forth above. The effective date of any notice given by hand delivery, confirmed facsimile or by overnight courier shall be the date of delivery, and the effective date of a notice given by mail shall be the third day after the date such notice is deposited in the U.S. Mail properly addressed and postage prepaid as certified mail, or the date of actual delivery, whichever is earlier. Either party hereto may change its address for notices by giving written notice to the other party of the new address. 16.6

Successors and Assigns.

Except as provided in Section 12 hereof, this Lease shall inure to the benefit of and shall be binding upon the parties to this Lease and their respective successors and assigns and shall run with, touch and concern and be binding upon the Land and all owners thereof, unless and until an intentional merger of the leasehold estates created hereby occurs. 16.7

Foreclosure by Mortgagee.

Without limiting the generality of the foregoing Section 16.6, upon the proper completion of a legal foreclosure of a mortgage or deed of trust against Tenantâ&#x20AC;&#x2122;s entire interest in the Property, Landlord shall recognize mortgagee (as defined in Section 12.2) or any assignee of mortgagee as the new Tenant hereunder. 16.8

Survival.

The obligations, covenants and agreements of Tenant and Landlord hereunder, including, without limitation, any indemnity by Tenant of Landlord herein provided for, shall not terminate upon expiration or sooner termination of this Lease but shall remain in full force and effect until fulfilled or satisfied by Tenant and Landlord. 16.9

Governing Law.

This Lease has been negotiated and executed in the State of Oregon and the laws of the State of Oregon shall govern its interpretation and enforcement. 16.10 Severability. If any term or provision of this Lease should be declared void, illegal or otherwise unenforceable, it shall be stricken from this Lease and the balance of this Lease shall be fully

enforceable according to its terms as reasonably interpreted to carry out the intent of the parties based on the original form of this Lease. 16.11 Recordation. A memorandum of this Lease in the form attached as Exhibit D may be recorded by either party in the Official Records of Deschutes County, Oregon. 16.12 Counterparts. This Lease may be executed in two or more counterparts, each of which shall be an original and all of which, when taken together, shall constitute one and the same instrument. 16.13 Prorations. All amounts to be paid by Tenant under the terms of this Lease shall be prorated between Landlord and Tenant upon any termination of this Lease; provided, however, that should Tenant not then be in default under any provisions of this Lease, Landlord shall return to Tenant the prorated portion of any prepayments made by Tenant that are outstanding as of the effective date of such termination. 16.14 Representations. Landlord herby represents and warrants as follows: 16.14.1

That Landlord has the authority to enter into this Lease;

16.14.2 To the best of Landlord’s knowledge, there is no Hazardous Substances located on or below the surface of the property as of the date of this Lease; and 16.14.3 To the best of Landlord’s knowledge, the Property complies with all applicable zoning regulations and the Association CC&Rs as of the date of this Lease. As used in Section 16.14, “to the best of Landlord’s knowledge” shall mean and refer to the actual knowledge of the managing members of Landlord as of the date of this Lease, after reasonable inquiry and investigation. In no event shall this Section 16.14 be construed to make the managing members of Landlord personally liable or responsible for any inaccuracy in these representations and warranties. IN WITNESS WHEREOF, the parties have caused this Lease to be duly executed in duplicate as of the date and year first above written. LANDLORD:

________________________________ ________________________________

TENANT:

________________________________

EXHIBIT A LEGAL DESCRIPTION OF REAL PROPERTY

EXHIBIT B LEGAL DESCRIPTION OF LAND

EXHIBIT C Construction of Initial Improvements to Protect Building Rights Check either:



Not Applicable; or



See Below

The Estate Lot which Tenant is leasing pursuant to the Lease includes a building right approved by Deschutes County, allowing for the construction of a single family residence on the Land (the “Building Approval”). The County approved the Building Approval either in conjunction with a lawfully completed partition or from the replacement of a previously existing building. In most cases, the Building Approval has a Landscape Management Plan associated with it. Landscape Management Plans are mandated by Deschutes County and the State of Oregon for all home sites within 1,320 feet of the Deschutes River. Accordingly, your Lease includes an existing Landscape Management Plan (attached as Schedule 1) and a valid home site Building Approval from Deschutes County. Tenant shall be solely responsible for compliance with the Landscape Management Plan. Under State and County law, each Building Approval is good for an initial term of four (4) years from the date of the original approval, with the possibility of up to three (3) two-year extensions, for a total of up to ten (10) years. To obtain an extension, you must file a written request with the County prior to the then-current expiration date. There are no guaranties that the County will approve extension requests, but they often have in the past. Of course, the County can change its policies and criteria for approval at any time. If the Building Approval expires and/or if the County denies an extension and the Building Approval or prior extension thereof has already expired, then no residence could be built unless a new land use application were filed with the County and approved by the County. It may be difficult, if not impossible to obtain a new such approval. Landlord agrees to take such steps as are reasonably necessary to protect/extend the Building Approval until the date that is five (5) years from the date of full execution of the Lease. If Tenant has not obtained a building permit and commenced construction by that date (as required by Section 5.1.1 of this Lease), and the Building Approval expires, Tenant shall have no recourse against Landlord therefor. In the event, however, that Landlord is unsuccessful in protecting the Building Approval for such five-year period, then Landlord will refund to Tenant the amount of the Base Rent, and the Lease shall terminate. Such refund and termination shall occur not later than 90 days after the parties have final notice that the Building Approval has lapsed.

Schedule 1 to Exhibit C Landscape Management Plan Check either:



Not Applicable; or



See Attached

EXHIBIT D MEMORANDUM OF GROUND LEASE RECORDING REQUESTED BY AND WHEN RECORDED, MAIL TO: _______________________ _______________________ _______________________ Attn: __________________ SEND TAX STATEMENTS TO: _______________________ _______________________ _______________________ Attn:___________________ _____________________________________________________________________________ MEMORANDUM OF GROUND LEASE THIS MEMORANDUM OF GROUND LEASE (this “Memorandum”) is made and entered into this __ day of _______________, 200_, by and between ____________________, whose present address is ________________ (“Landlord”) and _____________________, whose present address is __________________ (“Tenant”), with reference to the following facts: A. Landlord is the owner of that certain real property located in Deschutes County, Oregon, and more particularly described on Exhibit A attached hereto (the “Land”). B. Pursuant to that certain unrecorded Ground Lease dated ___________, 200_ (the “Lease”), Landlord has leased the Property to Tenant, and Tenant has leased the Land from Landlord. C. of record.

The parties to the Lease are desirous of placing their interests therein as a matter

NOW, THEREFORE, in consideration of the mutual covenants herein contained and contained in the Lease, the parties agree as follows: 1. Term. The term of the Lease (the “Term”) is ____________________, commencing on ________, 200_ and expiring on ____________, subject, however, to such rights of renewal as may be contained in Section 2. 2. Renewal Term. At the expiration date of the Term (as the same may be extended from time to time) the Lease Term shall automatically be extended for eight (8) successive periods of ninety-nine (99) years each, unless both parties to the Lease sign a lease termination

iS:\Debra's Files\CC&R CD Copy Files\Ground Lease\Revised Form Lease_v3.DOC

not later than thirty (30) days prior to the then current expiration date and record a memorandum thereof in the Official Records of Deschutes County, Oregon. 3. Conveyance of Property. As provided in Section 2.4 of the Lease, the parties intend that Tenantâ&#x20AC;&#x2122;s use of the Land be as close to fee ownership as is reasonably practicable. If Landlord could convey fee title to the Land to Tenant as of the date of this Lease, it would. Accordingly, the parties agree that if during the Term of this Lease (including any extensions thereof) Oregon law ever permits Landlord to convey fee simple title to the Land and all improvements thereon to Tenant as one complete, separate legal lot, Landlord (including its successors and assigns) covenants, at no cost to itself, to do so; provided, however, Tenant is not then in material default under the Lease. This Memorandum is for informational purposes only and nothing contained herein shall be deemed to in any way modify or otherwise affect any of the terms and conditions of the Lease, the terms of which are incorporated herein by reference. This instrument is merely a memorandum of the Lease and is subject to all of the terms, provisions and conditions of the Lease. In the event of any inconsistency between the terms of the Lease and this instrument, the terms of the Lease shall prevail. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum on the day and year first above written. Tenant:

____________________________ Name:_______________________

Landlord:

____________________________ Name:_______________________ ____________________________ Name:_______________________

STATE OF OREGON

) )ss. County of ______________ ) The foregoing instrument was acknowledged before me on this __ day of ___________ 200_ by _______________. _____________________________ Notary Public for Oregon My Commission Expires:________

iiS:\Debra's Files\CC&R CD Copy Files\Ground Lease\Revised Form Lease_v3.DOC

STATE OF OREGON

) )ss. County of ______________ ) The foregoing instrument was acknowledged before me on this __ day of _________ 200_ by ___________, the ____________________of Deschutes River Ranch Group, LLC, an Oregon limited liability company, on behalf of the company. _____________________________ Notary Public for Oregon My Commission Expires:________ STATE OF OREGON

iiiS:\Debra's Files\CC&R CD Copy Files\Ground Lease\Revised Form Lease_v3.DOC

Exhibit A to Memorandum of Ground Lease Legal Description [to be attached]

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DESCHUTES RIVER RANCH

Design Guidelines TA B L E

CONTENTS

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

GRAPHIC OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4– 7 2.1 General Plan 2.2 Initial Offering 2.3 Sample Homesite Evaluation

DESCHUTES RIVER RANCH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.1 Design Philosophy 3.2 Local History

DESIGN REVIEW PROCESS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9–13 4.1 Architectural Design Submittal 4.2 Construction Document Submittal 4.3 Building Permit 4.4 Building Site Survey 4.5 Site Review

SITE DESIGN GUIDELINES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13–17 5.1 General Design Considerations 5.2 Land Use Categories 5.3 Building Envelopes and Setbacks 5.4 Building Envelope Alterations 5.5 Driveways 5.6 Garages and Parking Spaces 5.7 Fences and Privacy Walls 5.8 Solid Waste Containers 5.9 Thermal Pools 5.10 Auxiliary Structures 5.11 Decks 5.12 Signs 5.13 Exterior Lighting 5.14 Natural Drainage 5.15 Pet Control 5.16 Site Management

ARCHITECTURAL DESIGN GUIDELINES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18–21 6.1 Design Intent 6.2 General Design Considerations 6.3 Building Height

Revision: July, 2003

Deschutes River Ranch Design Guidelines 6.4 6.5 6.6 6.7 6.8 6.9 6.10

Building Square Footage Exterior Walls and Finishes Roof Type and Configuration Doors and Windows Heating, Cooling and Special Equipment Antennae and Satellite Dishes Other Building Design Elements

LANDSCAPE DESIGN GUIDELINES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22–25 7.1 General Design Considerations 7.2 Landscape Design Submittal 7.3 Landscape Submittal Requirements 7.4 Interior Landscape Zone 7.5 Transition Landscape Zone 7.6 Natural Landscape Zone

CONSTRUCTION REGULATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26–29 8.1 Construction Area 8.2 Improvement Survey 8.3 Construction Access 8.4 Construction Trailers and Temporary Structures 8.5 Construction Staging 8.6 Daily Operation 8.7 Blasting 8.8 Dust and Noise Control 8.9 Restoration and Repair 8.10 Excavation 8.11 Debris and Trash Removal 8.12 Vehicles and Parking 8.13 Portable Toilets 8.14 Signage 8.15 Pets 8.16 Firearms 8.17 Utilities

APPENDIX A: Plantings in the Interior Landscape Zone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 APPENDIX B: Plantings in the Transition Landscape Zone . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 APPENDIX C: Plantings in the Natural Landscape Zone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 APPENDIX D: Application for Architectural Design Submittal. . . . . . . . . . . . . . . . . . . . . . . . . . 33 APPENDIX E: Application for Construction Document Submittal . . . . . . . . . . . . . . . . . . . . . . . 34 APPENDIX F: Application Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 APPENDIX G: Architectural Character. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36–38 APPENDIX H: Exterior Colors, Textures & Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Revision: July, 2003

Deschutes River Ranch Design Guidelines

INTRODUCTION

The Deschutes River Ranch (DRR) Design Guidelines have been created to assist you in designing and building your home in a manner that preserves the natural beauty of the Ranch, maintains a high standard of quality for all homes, and serves to protect home values for you and your neighbors. The intent of these guidelines is to ensure that homes and all improvements are of a consistent quality, are aesthetically appealing, preserve view lines, and protect your privacy. Our Design Review Committee (DRC) exists to work with you and your architect/designer to approve your plans expeditiously, as long as they are consistent with the Design Guidelines. Please be assured our review process will be “merit-based” and that we are looking for good ideas and quality homes. These guidelines are supplemental to the Declaration of Covenants, Conditions and Restrictions (CC&Rs) for DRR first recorded on March 11, 2003 in Deschutes County, Oregon. The Guidelines are to be used by all homesite owners and their designers and builders, to govern new development, additions, landscaping, changes and alterations at DRR. The Guidelines will be administered and enforced by a Design Review Committee (DRC) in accordance with procedures designated in this document and in the CC&Rs. This document was adopted by the Committee on March 4, 2003 and may be amended as needed by the Committee. It is the responsibility of each owner to obtain and review a copy of the most recently revised Design Guidelines prior to submitting plans to the Committee for review.

G O V E R N I N G R E G U L AT I O N S All development shall conform to the following: • • • •

The most recent version of this document in effect on the date that the Owner’s first, complete Schematic Submittal is made to the Committee The Declaration of Covenants, Conditions and Restrictions for DRR All applicable Deschutes County Ordinances, Regulations, Overlay Zones and Codes Applicable Local, State and Federal Codes and Regulations.

Revision: July, 2003

Deschutes River Ranch Design Guidelines

G R A P H I C O V E RV I E W

The following three pages provide a graphic representation of the property from a macro view of the General Plan for the entire ranch, a zoom in from this map showing in greater detail the Initial Offering, and then focus on a single lot which we call the Homesite Evaluation.

2.1

G E N E R A L P L A N ( PA G E 5 )

The General Plan was created from an aerial photograph. The darker colored portion outlines the 450-acre Deschutes River Ranch. The lighter colored elliptical-shaped background represents the adjacent patchwork of rural farming parcels here in Tumalo. Because this is from a photograph it is interesting to note that every green dot represents a real tree. The proportions and scale of each element are accurate. The rooftops within the community have been added by the designer to help visualize the completed neighborhood and assist in the planning and design process.

2.2

I N I T I A L O F F E R I N G ( PA G E 6 )

This is a cropped portion of the General Plan (page 7) providing a more detailed view of the Initial Offering which consists of the Community homesites and the four Estate homesites.

2.3

S A M P L E H O M E S I T E E VA L U AT I O N ( PA G E 7 )

This is a sample of the Homesite Evaluation Maps that have been created for each homesite. This map defines the lot perimeter and dimensions, building envelope, land contours, seasonal solar orientation, seasonal wind direction, and primary view corridor. It is essentially an â&#x20AC;&#x153;Ownerâ&#x20AC;&#x2122;s Manualâ&#x20AC;? providing essential information for the design of all improvements on the properties.

Revision: July, 2003

Deschutes River Ranch Design Guidelines

Revision: July, 2003

Deschutes River Ranch Design Guidelines

Revision: July, 2003

Deschutes River Ranch Design Guidelines

S A M P L E H O M E S I T E E VA L U AT I O N

Revision: July, 2003

Deschutes River Ranch Design Guidelines

DESCHUTES RIVER RANCH

3.1

DESIGN PHILOSOPHY

Our design philosophy arises from the overall vision for Deschutes River Ranch. The Design Guidelines have been crafted so that structures and improvements created on the Ranch will contribute to the beauty of the rural landscape. Those living in the community and experiencing the close relationship with nature will appreciate the vision and corresponding design values which serve to: • • • •

Preserve the diverse beauty of rural agricultural, riparian and pristine upland wildlife area. Preserve view corridors, privacy, aesthetic beauty and value. Build structures that complement, rather than compete with, the landscape. Maintain open space for the protection of wildlife and the enjoyment of residents.

3.2

HISTORY

Marshall Awbrey, known by all as Marsh, was a true pioneer of the Northwest and the original settler of what is now the Deschutes River Ranch. (From what we know of Marsh he would have been pleased with the vision for DRR. He was a man who loved animals, nature and the beauty of Central Oregon.) DRR is carefully planned to protect and respect its extraordinary setting along the famous Deschutes River. Eons of the river’s nurturing flows have deposited rich productive soils creating this rural agricultural zone in the heart of Central Oregon. The special advantage of Ranch’s location along the Deschutes gives the property great diversity with pristine examples of all that make Central Oregon so attractive: snow-capped Cascade mountain views, rolling pastures, upland sage and grass meadows, ancient Juniper and classic specimens of towering Ponderosa Pine.

Revision: July, 2003

Deschutes River Ranch Design Guidelines

DESIGN REVIEW PROCESS

4.1

A R C H I T E C T U R A L D E S I G N S U B M I T TA L

Get to Know the Site Each residence at the Ranch should reflect its locale, create a living environment that responds to the individual site and conform to the overall character of all DRR homes in its particular neighborhood. Because conditions vary throughout the Ranch, homesite owners should get to know the entire project and how it relates to their homesite. Walking the area, experiencing the views, and considering the vision for the Ranch as outlined in the Design Philosophy will combine to help shape the orientation and design of the future residence. Also review this Manual and become acquainted with all the other documents that serve to regulate and guide development at DRR.

Choose an Architect/Designer A licensed architect or approved designer must design each residence at DRR. Specialized design skills and an understanding of site and environmental possibilities is of major importance to realize the special character and quality you will want in your residence. Be sure that your architect or designer reads the Design Guidelines and becomes familiar with this document. Your architect should also be aware of and follow the documents referred to in the Governing Regulations.

Pre-design Meeting Schedule a Pre-design meeting with the Secretary of the Design Review Committee. Homeowners and their architects are asked to meet with the Committee to discuss their particular site and identify the unique opportunities and any concerns prior to preparing a design or any proposed improvements. This meeting will provide guidance prior to the initiation of design work and will outline expectations of the Committee with respect to general design quality and standards required at DRR.

Architectural Design After thorough review of the Design Guidelines, and the Pre-design Meeting, have the architect prepare the Architectural Design for the homesite. The purpose is to communicate to the Committee the design intentions. This review is important to ensure that the initial design conforms to the concepts contained in these Design Guidelines. An early response by the Committee is intended to avert wasted time and professional fees that result from pursuing a design that may be in conflict with the Design Guidelines. The Architectural Design Submittal must include the application form (Appendix D) and the appropriate submittal fee. The Architectural Design Submittal shall include three complete sets of the following: 1. A written explanation of the design approach. 2. A graphic explanation of the design concept including Site Plan, Floor Plans and Exterior Elevations which outlines the overall design intent. 3. A list of proposed materials including siding, trim, roofing, decking, window and door types and all exterior materials or surfaces included in the design concept. Revision: July, 2003

Deschutes River Ranch Design Guidelines

The Architectural Design Submittal can be prepared in any format, but must be clearly labeled with pertinent information, including the document date, homesite number, name, address and telephone number of the owner and architect. The complete Design Submittal and application should be submitted to the Secretary of the Committee. Allow 15 days for a written response from the Committee. The Committee may extend its response if the Committee finds the submittal incomplete. In the event the Architectural Design Submittal is denied, and a re-submittal is also denied, additional re-review fees will be charged for each additional submittal in accordance with the schedule in Appendix F.

4.2

C O N S T R U C T I O N D O C U M E N T S U B M I T TA L

Construction Documents After approval of the Architectural Design Submittal, you are ready to proceed with the detailed construction documents. This section describes the process and requirements for submitting these documents.

The Construction Document Submittal shall include three complete sets of the following: 1.

Vicinity Plan:

Indicate proposed site in relationship to adjoining properties and residences (where applicable) within 500 feet. Note that this data is available for every homesite, the DRC will be happy to provide digital or hard copies of this information. 2.

Site Plan:

Indicate proposed building footprint, roof line, property boundaries and easements, utility locations (including connection to the DRR subsurface community drainage system, if applicableâ&#x20AC;&#x201D;see sect. 8.17 for details), utility meter locations, existing vegetation, water feature locations, existing and proposed one foot contours, areas of cut and fill, drainage, proposed roads, driveways, trails, bridges, decks, and any other proposed improvements. Indicate scale and north direction; take special precaution to clearly indicate how surface and subsurface drainage (if appropriate) is to be handled. 3.

Floor Plans and Roof Plans:

Include all floor plans and roof plan indicating roof penetrations, overhangs and proximity to property lines. 4.

Exterior Elevations and Details:

Indicate the exterior appearance of all views (usually four) labeled in accordance with the Site Plan, the height of chimney (if proposed), natural and proposed finished grades, all roof penetrations including skylights, all flues and plumbing vents, foundation vents and all above-ground utility meters and boxes with required visual screening. Describe all exterior materials, colors and finishes (walls, roofs, trim, chimneys, windows, doors, foundation vents, light-fixtures, etc.) The elevation drawings should indicate material textures. Provide design details to sufficiently represent the visual expression of the building, exposed connections and material interfaces. Revision: July, 2003

Deschutes River Ranch Design Guidelines 5.

Building Sections:

Indicate building walls, floors, roof eaves and fascia detail, deck railing, interior relationships, existing and finished exterior grades and any other information to clearly describe the exterior relationships of the building. 6.

Material Sample Board:

For the Committee’s permanent records, provide an 8-1/2”x 11” typed summary that clearly states the manufacturer’s colors, style, brand names or other identifying information for proposed materials shown on the board (material can usually fit on a 30 by 42 inch board). The Material Sample Board should depict: Roof and flashing materials and colors Wall materials and colors Exterior trim materials and colors Fireplace materials Window materials and colors Exterior door material and color Samples of stone/rock and mortar to be used Exterior light fixtures, artwork and hardware Walkway and driveway materials if other than asphalt or concrete The Committee will retain this sample board. The sample board must be marked with the owner’s name and address. Samples must be identified with the manufacturer’s name, color and/or number, model types or other relevant identifying information. 7.

Landscape Plan: a. b. c. d. e. f. g. h.

Proposed plant materials (names, sizes, quantities) Existing plant materials (names and sizes) Locations of existing plant materials scheduled for removal Decks, pavements, service yards, driveways, other proposed freestanding structures Locations for outdoor lights, signs, address monument, and added rockery or boulders Complete irrigation plan Wildfire prevention plan Proposed spa locations and required visual screening.

See Appendices A, B and C for lists of approved plants and designated zones. Plants not shown on the lists must be approved by the committee. 8.

Construction Schedule:

A printed Construction Schedule including start and completion dates of the residence, as well as the landscape work, must be provided.

Revision: July, 2003

12 9.

Deschutes River Ranch Design Guidelines

Site Staking: a. Stake your site to clearly show all property corners, all building corners, driveways and other improvements. In determining the proper location for each, the Committee shall consider the location of existing and future improvements on adjacent sites, and such other economic or aesthetic considerations as it may deem appropriate. b. Stakeout inspections shall only be conducted at a time when the site is free from snow. c. Driveway locations should be staked at each side of the drive at 10-foot intervals from the access road to the site.

Documents required for the Construction Document Submittal and Application Fees are to be submitted to the Secretary of the Committee; allow 15 days for a written response from the Committee. The Committee may extend its response time as appropriate if the Committee deems the submittal to be incomplete. The Construction Document Submittal must include the application form (Appendix E), and the appropriate Submittal Fee. The Committee will review the Construction Document Submittal for compliance with the previously approved Architectural Design Submittal and to ensure that it is in alignment with the intent of the Design Guidelines.

4.3

BUILDING PERMIT

Upon approval of your Construction Document Submittal by the Committee, you must obtain a Building Permit from Deschutes County. Owners are advised that the county may have additional submittal requirements to be met before issuance of a Building Permit. Because of the pre-existence of homes on DRR community homesites, provisional building permits are filed with the County to allow for replacement of homes on these sites. Please consult with the DRC for any questions and information you may need regarding building permits.

4.4

B U I L D I N G S I T E S U RV E Y

A registered survey of all property lines, the Building Envelope, and the driveway is required prior to beginning construction on your homesite. Again much of this work has already been done, and is available through the DRC.

4.5

SITE REVIEW

1. On-site Inspections: During construction of your residence, Committee members will conduct periodic inspections. It is the responsibility of the Owner to ensure that construction conforms to the plans and all DRR construction rules.

2. Project Completion Review: To ensure that the completed residence is consistent and in accordance with the approved Construction Document Submittal, a Project Completion Review will be required. You should inform the Secretary of the Committee within 10 days of the County Occupancy Permit inspection that a Project Completion Review is requested. The Committee will respond within 14 days of receipt regarding the conformance or non-conformance of the residence and site construction. The construction deposit (paid in accordance with fees required in Appendix F) will be refunded after compliance with the Construction Document Submittal is established, and after any uncollected fines or reimbursements for uncorrected damage to DRR property have been deducted. Revision: July, 2003

Deschutes River Ranch Design Guidelines

3. Changes in Plans: No significant changes in plans or materials previously approved by the Committee may be undertaken without advanced written Committee approval. No work shall be undertaken (other than routine maintenance and repair) which will result in changes to the exterior building appearance, or landscape improvements, without prior written approval of the Committee.

4. Certificate of Occupancy: The owner must furnish a copy of the Deschutes County Certificate of Occupancy to the Secretary of the Committee upon completion of the dwelling and homesite improvements.

SITE DESIGN GUIDELINES

5.1

G E N E R A L D E S I G N C O N S I D E R AT I O N S

The harmonious integration of new residential construction and landscape improvements with the natural landscape is of paramount importance at DRR. The intent of this section is to ensure that adverse impact to the land is minimized. Careful placement of improvements combined with the creation of natural areas that will remain free of disruption, together with the incorporation of certain performance standards and management programs, will aid in maintaining the current rural character of the desert/alpine setting.

5.2

L A N D U S E C AT E G O R I E S

The residential areas of DRR are divided into the following land use categories:

Common Maintenance Area The areas designated in the CC&Rs which are for the use and benefit of all Owners and Residents at DRR, together with all improvements constructed thereon.

Private Owner Parcels The privately owned area within the subdivision plat, commonly referred to as an Ownerâ&#x20AC;&#x2122;s homesite.

Building Envelope Also known as the building site, this is an area designated on each homesite that shall be for the exclusive use of its Owner, within which building may occur subject to the Design Guidelines. The Homesite Evaluation Plan also includes a designated corridor for the driveway.

5.3

BUILDING ENVELOPES

AND

SETBACKS

Homesite improvements, including building, accessory buildings, walls, fences, and recreational improvements must be placed within the Building Envelope unless specific modification is approved in writing by the Committee as further described below. Landscaping may occur outside the Building Envelope subject to the Landscape Guidelines. The designated Building Envelopes generally shall be subject to the following setbacks, (but do vary from lot to lot): Revision: July, 2003

Deschutes River Ranch Design Guidelines

A. Front yards adjoining the street: 40 feet B. Side yards: 25 feet C. Rear yards: 25 feet Exceptions to the above setbacks are detailed on the respective Homesite Evaluation Plans.

5.4

B U I L D I N G E N V E L O P E A LT E R AT I O N S

Existing Building envelopes are governed by a combination of Deschutes County setback requirements and DRR setback restrictions. Each Building Envelope has been carefully developed to ensure and to maintain optimal views, privacy, and separation. As a result, no alterations from the designated Building Envelope will be granted unless there are compelling reasons and/or issues overlooked in the original defining of the building envelopes.

5.5

D R I V E WAY S

The construction and maintenance of driveways shall be the responsibility of the individual homeowner. However, materials used in the driveways and the course traversed by the driveway within the site is subject to approval by the Committee. No more than one driveway intersection per residence with the adjoining road will be approved. Driveways shall be a maximum of 12 feet wide, running from the access road to the property line of the homesite; this first driveway section must be perpendicular to the road. Driveways shall be constructed of asphalt or other material approved by the Committee. The only approved access for construction of a residence will be the approved driveway for the homesite.

Example: Driveway

Revision: July, 2003

Deschutes River Ranch Design Guidelines

5.6

GARAGES

AND

P A R K I N G S PA C E S

Garages must be architecturally integrated with the residential design of the main building. They may be either attached or detached. Each home must have an enclosed garage for at least two cars. Each home must have a minimum of two guest parking spaces. Trailers motor (mobile) homes, trucks, boats, boat trailers, tractors, vehicles other than automobiles, campers not on truck, snow removal equipment, and garden or maintenance equipment shall be prohibited unless it can be kept in an enclosed structure or screened from view from adjacent homesites and roads at all times except when in use. Owners are encouraged to discuss any special requirements with the Committee at the PreDesign Meeting. No on-street parking will be permitted. Special care must be employed if windows or skyExample: Garage/Parking lights are to be constructed for garage or storage areas to prevent any harsh or direct light from being emitted to the exterior of the residence. The Committee will require such special lighting such as parabolic lenses, or other property screened and baffled light sources, and the Committee may limit the general level of lighting in such circumstances.

5.7

FENCES

AND

P R I VA C Y W A L L S

Fences, walls and barrier devices may be used for privacy and screening purposes within the Building Envelope, but must be incorporated into the total residential structure design. (See example to the right.) The construction of fences along property lines and outside Building Envelopes is strictly prohibited. In order to maintain existing wildlife movement and natural open space, the Committee shall review the design, appearance, appropriateness, size, materials, and construction of such structures in relation to the proposed and neighboring sites. Chain link, concrete block, glass block, or wire fencing is prohibited. Example: Fences/Privacy Walls

5.8

S O L I D W A S T E C O N TA I N E R S

All solid waste containers must be animal-proof containers with the design and location of approved by the Committee. Storage shelters for firewood and miscellaneous landscape maintenance equipment must be located in separate structures and are subject to approval by the Committee. Revision: July, 2003

Deschutes River Ranch Design Guidelines

5.9

THERMAL POOLS

Thermal pools will be permitted within the Building Envelope. However, they must be visually screened from adjacent homesites by landscaping and/or fencing to be approved by the Committee. (See example to the left.)

5.10

AUXILIARY STRUCTURES

Auxiliary structures are permitted within the Building Envelope. The structures must conform to the architectural vernacular of the main residence.

Example: Thermal Pool

5.11 DECKS Decks, as extensions of the primary living spaces, must be designed to minimize impact on neighboring properties while maintaining a strong relationship with the landscape. More and smaller use-oriented decks are preferable over larger, single decks. The use of solid wood, timber or stone wall supports for decks is strongly encouraged. (See example to the right.)

5.12 SIGNS

Example: Deck support

Address identification signs for each residence are required and must be in compliance with DRR specifications. To ensure consistency and quality, Deschutes River Ranch has assigned a specific vendor for the ranch’s signage. Please contact the DRC for information. No “unique” identification devices will be permitted. No additional signage detached from the residence will be permitted other than signage related to the sale of the property.

5.13 EXTERIOR LIGHTING No exterior or interior light whose direct source is visible from a neighboring property, or which produces excessive glare to neighboring properties or to pedestrian or vehicular traffic, shall be installed. Indirect sources and horizontal cut-off fixtures are recommended to reduce glare (see Deschutes County minimum requirements) and provide general ambient light. Specific approval by the Committee will be required for use of other than white or pale yellow exterior lights. Final approval of the proposed illumination plan and all exterior fixtures will be required by the Committee. Revision: July, 2003

Deschutes River Ranch Design Guidelines

5 . 1 4 N AT U R A L D R A I N A G E Drainage-ways should be maintained in as near natural condition as possible. This is recommended so that the volume of run-off entering and leaving the site does not change significantly, and any pollutants generated onsite do not reach waterways. If drainage courses are disrupted, they should be rehabilitated to match their natural state as much as possible. Open grass-lined swales are preferred over artificial channel and piping. Drainage should be designed to prevent water flows in the direction of the road or adjacent houses. To accomplish this, site plans must indicate site and road edge swales with drainage to retention ponds or dry wells. Driveways should be designed to channel run-off into roadside swales paralleling the road, in order to minimize the need for culverts and to clean run-off before it reaches waterways. Swales should be vegetated and/or rock-lined to prevent erosion. Care should be taken to assure run-off from parking areas is adequately treated before it is allowed to enter ground or surface water.

5.15 PET CONTROL Pets may be contained within fenced kennels and dogs run located within the Building Envelope. Invisible electronic fences are encouraged; however, on a case-by-case basis the Committee may establish the minimum setbacks from adjoining property and portions of the homesite on which pet run areas will be permitted. The Committee must approve such improvements.

5.16 SITE MANAGEMENT All Owners should adhere to the following planning and design considerations, as the potential for wildfire should be the concern of every Owner: 1. All dead vegetation should be removed from the homesite. 2. A distance of 30 feet of non-combustible space is recommended around the residence. Irrigation is encouraged in this area. 3. Firewood should be stored in separate structures. 4. New trees which mature to a tall height should be planted at least 10â&#x20AC;&#x2122; from the roof fascia. 5. All chimneys should be equipped with UL- or I.C.B.U.-approved spark arrester. 6. All roofs and gutters should be kept free of leaves and pine needles. 7. Plants contiguous to building structures should be irrigated.

Revision: July, 2003

6. 6.1

Deschutes River Ranch Design Guidelines

ARCHITECTURAL DESIGN GUIDELINES DESIGN INTENT

Architecturally diverse, yet unified in the use of natural materials, the homes of Deschutes River Ranch are intended to represent the architectural heritage of Central Oregon and the Intermountain West. Architectural Design Submittals will be reviewed based upon architectural merit over architectural style. While diverse architectural style is encouraged, it is intended that all homes designed and constructed at the Ranch are relevant to history and landscape of their surroundings.

6.2

G E N E R A L D E S I G N C O N S I D E R AT I O N S

DRR is a planned development and special consideration must be given to the placement of all improvements with emphasis on the relationship to existing grades, preservation of natural site features and trees and the relationship to neighboring sites and vistas. All residences will have exterior elevations, roofs, and details that shall be coordinated and consistent in their architectural treatment. The harmony between all designs throughout the Ranch is extremely important.

6.3

BUILDING HEIGHT

Building height limits have been established to promote structures that are compatible with surrounding natural features, while not detracting from views to and from neighboring home sites. Where not otherwise specified, the maximum height of residential homes (as well as home sites not within the designated landscape management zone) shall reveal no more than 30 feet of visible height (including chimneys and mechanical vents) as viewed from the Deschutes River. Guidelines regarding building height are expanded in Appendix G and will be an important point of discussion in the Pre-design meeting.

6.4

B U I L D I N G S Q U A R E F O O TA G E

Excluding garages, residences will have a minimum of 2,300 square feet of interior space. The total building square footage on a homesite shall be limited by the defined Building Envelope and Building Height. In the case of an exposed walkout basement, the floor area of the basement will be included in the calculations because the massing and the proportions of the entire structure would than be affected.

6.5

E X T E R I O R WA L L S

AND

FINISHES

The basic wall materials for all residences and ancillary structures shall be either wood or masonry. Preferable wood siding materials are: tongue and groove, board and batten, plank, natural stucco, or shingle. All wood siding shall remain natural in appearance; however, it may be stained or painted as approved by the Committee. Care should be taken to avoid conditions that will produce water staining on the siding. The use of stone is encouraged; however, it shall be natural, preferably native, stream or fieldstone. Brick, faux stone, glass block and exposed unit masonry are prohibited. The incorporation of garden and site walls of native stone is encouraged. Particular attention should be paid to the use of stone on the structure to ensure that the stone appears to be functional and integrated into the structure of the home. It is important that it does not appear to be a cosmetic veneer. Corners and column bases should be thickened and buttressed, as they would be when used as Revision: July, 2003

Deschutes River Ranch Design Guidelines

traditional structural elements. Stone courses should continue around corners terminating in the same manner as used in a structural element. Small inlays of stone, which will appear as veneers between columns (such as between garage doors) should be avoided. Sloping stone caps are preferred to pre-cast or mortar caps.

6.6

ROOF TYPE

AND

C O N F I G U R AT I O N

In general, relatively low-profile buildings with a variety in massing and rooflines are desired. Large, expansive areas of unbroken roof planes and ridgelines are undesirable. Overly complex mixes of shapes, hip, shed, and gable are equally undesirable. The Committee may consider further alteration of the roof pitch provided the Owner shows design benefits of a greater or lesser roof pitch, and the design contains other significant features and uses of materials to avoid a contemporary style. Gable roofs are preferable; however, shed roofs are permitted subject to the approval of the Committee. (See examples.) The approved roof materials are natural, sawn cedar shingles Example: Roof Type and Configuration or split cedar shakes—which must be fire retardant; concrete shingles, slate or clay tile, and some approved architectural quality asphalt composition roof materials. Additional specific roof requirements are listed below: •

• • • • •

All roof vents, plumbing vents, flues, and exterior mechanical equipment shall be collected and centralized and screened from view. Where practical, incorporation within chimneys or masses Example: Roof Type and Configuration is encouraged. All chimneys are to have roof saddles or down draft diverters, and spark arresters. Roof skylights are permitted subject to the approval of the Committee. Heated gutters at the bottom edge of skylights are recommended. All flashing and approved, unconcealed plumbing vents shall be painted to match roof color or, is to be constructed of a weathering metal, i.e. copper, bronze or zinc. Large roof or eave overhangs are encouraged with wood soffits. Plywood and Masonite soffits will be considered on a case-by-case basis. Fascias should also be stepped to avoid cupping and rapid deterioration from freeze/thaw cycles and any other factors that in its sole judgment it deems relevant.

Example: Spark arrester Revision: July, 2003

6.7

Deschutes River Ranch Design Guidelines

DOORS

AND

WINDOWS

Generally, deeply recessed and articulated doorways and windows are desirable. Careful consideration should be given to the size, number and placement of windows to achieve an effective and sensitive counterpoint to wall surfaces. Reflective or colored glass is not acceptable. Window frames should be made of wood, either finished naturally or painted a natural color. Window frame cladding is acceptable as long as the color is compatible with other elements of the building. Windows should be finished with substantial trims and sills. Mullions, muttons and divided lights are encouraged to break up larger areas of glass. (See examples below.)

Garage door detail

Eave and dormer detail

Entry detail

Stone accent

6.8

ANTENNAE

Bay window detail

AND

Window packages

S AT E L L I T E D I S H E S

Antennae and satellite dishes will not be permitted if they are visible from any other property, including adjacent pastures and common areas. Their location must be shown on the plans. If approved be the committee, they must be painted to match the building and be adequately screened.

Revision: July, 2003

Deschutes River Ranch Design Guidelines

6 . 9 H E AT I N G , C O O L I N G SPECIAL EQUIPMENT

AND

No roof-mounted or wall-mounted heating or cooling equipment will be permitted. Exterior equipment must be shown on the plans and must be adequately screened for noise and visual appearance. See example to the right. Emergency electrical generators may be approved at the discretion of the Committee on a case-by-case basis. The Committee shall consider noise level, fuel safety and the storage, adequate visual screening, complete automatic controls to project the power distribution systems and workman, and any other factors (in its sole judgment) it deems relevant. Example: Heating and cooling equipment

6.10 OTHER BUILDING DESIGN ELEMENTS Roof-venting shall be continuous ridge vent, wood trimmed gable, or dormer vents. Mushroom vents are prohibited. The expression of protruding horizontal timber beam ends (outlooks and corbels) at ridges and eaves is strongly encouraged. For deep-cantilevered overhangs, the addition of 45-degree knee braces is desirable. Horizontal expression of beams, rafter ties, or timber trusses at the gable ends is encouraged. Exposed steel or concrete beams, columns or trusses are prohibited. Over sizing of timber columns and beams for aesthetic purposes is encouraged. (See examples below.) Mechanical connections of exposed timber beams and trusses shall be either by fully concealed knife plated with counter sunk connectors, or bolted architectural surface plates. Exposed metal should be painted to emphasize the structure. If exposed, these structural elements should not be painted to attempt concealment. The Architect must demonstrate on the construction documents the satisfaction of building code foundation venting requirements. Tabulate the area required and area provided. Foundation vents should be located at the side of the house; however, wherever they are located, architectural detailing is required. Single block out vents and vent plugs are not allowed.

Exterior stone base detail

Revision: July, 2003

Porch detail

Attic vent detail

Deschutes River Ranch Design Guidelines

LANDSCAPE DESIGN GUIDELINES

An environmental/landscape guideline has been developed to aid in establishing and maintaining standards of preservation and development. DRR has an incredibly diverse high desert environment, with its own river-canyon setting, native plants and wildlife habitat. It is a natural place where one can live peacefully as part of the natural community and the entire ranch becomes a backyard. The need exists to preserve this innate beauty, to develop continuity and to blend our structures with this environment. The way each individual home achieves the sense of openness, naturalness or wildness, is through architectural design, color and landscaping. The vision is associated with the idea of a western ranch which hasnâ&#x20AC;&#x2122;t been segregated by fences. All who are part of the Ranch Community have/will have a special appreciation for its unique and tranquil setting and sense of co-adaptation between natural and cultural communities.

7.1

G E N E R A L D E S I G N C O N S I D E R AT I O N S

This guide is intended to help you, your landscape design consultant and/or contractor understand the rules and the necessary approval process relating to landscaping your homesite.

Extent of landscaping: Extensive landscaping is not required and the DRC encourages natural landscaping in keeping with area water conservation efforts; however, all homesites shall be maintained to present an attractive appearance and to moderate the problems of weeds and wind-blown dust. All areas damaged by construction must be restored at the time of landscaping, through transplanting and randomly spaced native fescue grasses and sagebrush. Native plant material will likely require water for the first year so it is therefore recommended that transplanting take place during the wet season. Property owners should promptly replace dead or dying native plants in a restoration area and keep noxious weeds, such as Knapweed, Cheat Grass and Russian Thistle to a minimum at all times. We strongly recommend the use of a weed pre-emergent in conjunction with a new landscape.

Conservation: Conservation of native landscape trees, shrubs, grasses and major terrain features to be preserved, must be marked and protected by flagging and/or fencing. The Design Review Committee shall have final approval. Areas of individual homesites exposed to other homesites and roadways should be treated in a casual, fluid manner so as to integrate comfortably with the natural setting of DRR. Formal, regimented plantings are strongly discouraged. Shrubs, trees and other plants should be arranged in groupings. Landscape construction must be finalized within one year of completion of the home. Failure to do so may result in the forfeiture of a portion of the original DRC submittal fee.

Turf: Lawn areas should be kept to a minimum and will be reviewed on an individual basis. Lawns should be kept back at least 4 feet from the street and property lines and shall not extend beyond the interior zone. Lawn edges should be free form with undulating edges that may or may not connect with the neighborâ&#x20AC;&#x2122;s lawn. One continuous flowing landscape is the theme to the overall DRR design. Revision: July, 2003

Deschutes River Ranch Design Guidelines

Bark: Bark mulch is approved for the interior and transition zones, installed at a minimum of 3-inch depth, and shall not be installed in drainage ways. Dark brown to blackish mulch is preferred over reddish for its ability to blend naturally .

Landscapes Rocks: Rocks used in landscaping should blend with the naturally occurring rocks in DRR. Broken or scarred excavation rock should not be used. Rocks should be grouped with other similar rocks of varied sizes (2’ or larger), and should be partially buried to offer a natural appearance on the site. All small rock (less than 18”) should be removed. Rocks should always appear as a natural feature.

Walkways and Borders: Walkways between various areas of the homesite should be of materials earthtone in color. Pavers, aggregate, gravel and flagstone are all approved materials. The homeowner’s choice for materials should be included on the plan. In most cases borders are not necessary. However, in some instances, the definition of areas between walkways, lawns, flower beds and natural areas can be difficult. Many times gravel needs to be retained in specific areas. A suggested material for use as a landscape border is bender board or wood headers. The use of small rocks is not permitted. A two foot gravel shoulder shall align all roadways. Landscaping is prohibited within two feet of pavement.

Drainage: All drainage systems (gutters, downspouts, chains and surface water) should tie into dry wells, french drains and dry creek/basin areas.

Water Management and Irrigation: Management of plant irrigation water can be accomplished by conversion to drip irrigation, using water efficient heads and by adhering to a watering schedule with an electronic controller. Watering can be affected by weather, and adjustments may need to be made during extremely dry or wet periods. The soil condition will have an effect on watering needs. Central Oregon soils are granular and porous and do not retain moisture well. Subsurface rock will also affect the absorption rate of the soil. Trees and shrubs are most effectively watered by drip emitters; watering in the turf zones and natural zones can best be achieved by sprayheads. Knowledge of plants, soils, exposure and weather are all essential in the design of an adequate sprinkler system. It is recommended that professional assistance be utilized.

Landscape Lighting: Lighting may be incorporated into the landscape design. Limitations are that all driveway and exterior lighting must be shielded. Exposed bulbs are not allowed. 12-volt systems are recommended.

Revision: July, 2003

7.2

Deschutes River Ranch Design Guidelines

L A N D S C A P E D E S I G N S U B M I T TA L

The Design Review Committee (DRC), as provided for in the Declaration of Covenants, Conditions and Restrictions, exists at DRR to maintain the high standards for design, development and appropriate use of homesites. Landscape review submittals provide the DRC with the information necessary to review the proposed landscape design for compliance with the Guidelines. The DRC will respond with approval or required modifications within 30 days from the date all required documents have been received. Plans should be submitted for review upon substantial completion of the exterior of the home and before any execution of such work. Completion of landscaping must occur within one year of completion of the home.

7.3

L A N D S C A P E S U B M I T TA L R E Q U I R E M E N T S

Landscaping submittals are to include one set of drawings which should provide the following information: • • • • • • •

Zone locations, quantity and sizes of all proposed plant materials North arrow and drawing scale Existing approved structures, including the footprint of the home, decks, driveway, walkways and any proposed hard features. Locations and identification of existing trees (designate any to be removed) and rock outcroppings Outdoor lighting layout, including catalog cuts or drawings of the fixtures Property lines Existing or approved topography and proposed changes including berms, rock features, drainage swales and dry creeks.

Planting Zones (See example on page 28 and Appendices A, B, & C) All landscape designs regardless of the shape and location of the homesite should consider utilizing three planting zones to make the transition from the heavily landscaped area to the undisturbed/indigenous areas appear natural. Plant materials featured in these guidelines were chosen for their particular adaptability to the Central Oregon High Desert bio-region’s weather and soils and for their resistance to pests and diseases. The neighboring deer we have in our fields can be destructive to our landscapes. They’re inherently curious and love sampling our new plants; but, they are selective feeders. Landscaping with deer-resistant plants is an alternative, however that is not a guarantee of their feeding preferences. Many deer-resistant plants on our recommended list have been used successfully. Still, you may want to contact a local authority. Each landscape zone must dovetail with adjacent properties.

7.4

INTERIOR LANDSCAPE ZONE 1

The Interior Zone is the area directly adjacent to the home and is reserved for the most intense and formal design elements. The Interior Zone may contain the greatest diversity of plant materials—including non-native varieties—and will most likely incorporate the use of turf grass. Zone 1 plantings typically require the most water. Elements such as birdbaths, sculptures, stream beds, water features, etc. should be located in the Interior Zone and must be submitted for DRC approval. If added at a later time, the DRC should be contacted for approval. No additional fees will be charged at that time.

Revision: July, 2003

Deschutes River Ranch Design Guidelines

7.5

TRANSITION LANDSCAPE ZONE 2

Between zones 1 and 3, the Transition Zone will serve to blend native and non-native plants and will most likely contain fewer plants than the Interior Zone. Flower and herb gardens may be integrated into the design. Vegetable gardens (which need barriers for protection from wildlife) must be developed to comply with DRR regulations.

7.6

N AT U R A L L A N D S C A P E Z O N E 3

This sensitive zone (borders roads and property lines) should contain original, natural, and/or truly native plant materials. Clearing of this zone should be limited to elimination of weeds. Irrigation of this zone should be kept at a minimum to re-establish native plants during the first few years after planting. There should be no lawn in this zone except to possibly connect with an adjoining lawn. (In reality, some homesites may not have the space to effectively implement the three-zone plan. It may be more appropriate to use the Interior Zone 1 and Transition Zone 2 on these homesites.)

Planting Zones

Revision: July, 2003

Deschutes River Ranch Design Guidelines

C O N S T R U C T I O N R E G U L AT I O N S

To ensure that sites will not be irreparably damaged during the period a residence is being built, all Contractors and Owners shall abide by the following construction regulations. These shall be a part of the construction contract document specifications for each residence.

8.1

CONSTRUCTION AREA

Prior to construction, the Owner or Contractor shall provide the Secretary of the Committee with a detailed plan showing the areas in which all the construction activity will be confined—including size and location of construction material storage, limits of excavation, drive areas, parking, chemical toilet locations, temporary structures (if any), dumpsters, storage or debris, fire extinguisher, utility trenching and construction signage. This plan should also identify the methods for how the homesite will be protected, such as snow fencing, flagging, rope, barricades or other means (to be set up prior to construction). Each site shall be protected by a series of re-bar posts set on the property line. These posts shall be on 5-foot centers with orange plastic caps, set at least 8 inches into the ground for the entire frontage of the homesite.

8.2

I M P R O V E M E N T S U RV E Y

After the foundations have been poured, a licensed surveyor is required to make a site inspection to certify that all the improvements are located within the homesite’s Building Envelope and that they match all approved plans. Verification will be sent to the Committee within 10 days of the survey.

8.3

CONSTRUCTION ACCESS

The approved driveway for the homesite will be the only approved construction access during the time a residence is being built, unless the Committee approves an alternative access point.

8.4

CONSTRUCTION TRAILERS

AND

TEMPORARY STRUCTURES

Temporary structures must be located on the homesite. Their size, configuration and location must be preapproved by the Committee. All temporary structures shall be removed after the occupancy permit is issued. Any damage caused by the placement, use or removal of such structures will be promptly repaired/restored at the Owner’s or Contractor’s expense.

8.5

C O N S T R U C T I O N S TA G I N G

Construction staging areas are defined as specific areas designated within the Building Envelope for the purpose of storing, maintaining and deploying construction materials. Construction staging shall only occur in pre-approved construction staging areas.

8.6

D A I LY O P E R AT I O N

Daily working hours for each construction site shall be Monday through Friday from 7:00 A.M. to 7:00 P.M. and Saturdays from 8:30 A.M. to 5:00 P.M. unless otherwise restricted by the Committee. No construction will be allowed on New Years Day (January 1), Memorial Day (designated Monday in May), July 4th, Labor Day (designated Monday in September), Thanksgiving (designated Thursday in November), or Christmas (December 25). On all other legal holidays construction will be permitted from 8:30 A.M. to 5:00 P.M. Revision: July, 2003

Deschutes River Ranch Design Guidelines

8.7

BLASTING

Any plans to blast shall be brought to the attention of, and approved of, in writing by the Secretary of the Committee before commencement. Proper safety and protective actions shall be used and evidence of insurance coverage shall be provided, with the DRR Owner’s Association named as an additional insured.

8.8

DUST

AND

NOISE CONTROL

Every effort should be made to control dust and noise emitted from a construction area. The contractor shall be responsible for controlling excessive dust and noise from the site. The playing of radios or use of other audio equipment by construction crews is prohibited. No swimming, sunbathing or consumption of alcoholic beverages is allowed.

8.9

R E S T O R AT I O N

AND

R E PA I R

Damage by contractors to any property other than the Owner’s, shall be promptly repaired at the expense of the Owner employing the person or entity causing the damage. (This includes damage done by cleaning out concrete trucks on-site, damage to asphalt roads and shoulder’s edges, utilities, signs, vegetation, etc.) Every effort will be made to keep mud from the excavated site from the DRR roadways.

8 . 1 0 E X C AVAT I O N Excess excavation material shall be removed from the DRR. The material shall not be placed in open areas, roads or other homesites. Excavation, except for utility trenching, shall be done only on the homesite.

8.11 DEBRIS

AND

T R A S H R E M O VA L

Proper storage and disposal of refuse material is the Owner’s and the Contractor’s responsibility. Debris and trash shall be picked up daily and removed on a weekly basis and hauled to a designated dump outside DRR. Owner and Contractor will take the necessary precautions to prevent debris and/or material from blowing off the homesite and shall be responsible for the cost of cleaning up blown and scattered debris from the construction site. Burning of any kind is prohibited on construction sites—including warming or trash fires.

8.12 VEHICLES

AND

PA R K I N G

All vehicles will be parked within the designated construction area so as not to inhibit traffic and not damage the natural landscape. Changing oil in vehicles and equipment without proper receptacles and removal procedures is forbidden. Prior arrangements must be made with the Gatehouse for trucks and trailers over 40-feet in length to ensure they can safely negotiate the entry gates. The Owner/Contractor will be responsible for restoring any damaged roadways caused by construction vehicles or equipment.

8 . 1 3 P O R TA B L E T O I L E T S Portable toilets shall be provided by the Contractor and placed in an approved location.

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Deschutes River Ranch Design Guidelines

8.14 SIGNAGE Temporary construction signs shall be limited to one sign per site, not to exceed 6 square feet of total surface area. Neutral colors and natural wood should be used. This sign will be freestanding and the Committee shall approve the design and location of such sign. No signage will be placed prior to submittal of the Schematic Design of the homesite to the Committee. Signs shall be promptly removed, and any resulting damage shall be repaired, upon issuance of a certificate of occupancy.

8.15 PETS Contractors, subcontractors and their employees are prohibited from bringing dogs and other pets to the DRR construction site.

8.16 FIREARMS There shall be no discharge of firearms by any contractors, subcontractors and their employees on DRR property.

8.17 UTILITIES Community Water The Ranch has its own community water system which operates as a non-profit corporation. It is called Deschutes River Improvement District, Inc.—incorporated in 1968. The district has three wells: a new primary well, which was drilled in 2002 and pumps over 200 gallons per minute, and two back-up wells. The wells pump into an 18,000-gallon cistern. An additional 12,000- to 15,000-gallon cistern will be added in 2004. There is a pump house with new pressure systems and a back-up power system which runs on propane. All new “looped” piping has been installed to serve the 24 lots, 4 estate lots, the lodge (future home site) and one planned additional home site. Each home site has a meter; water usage will be metered and billed through the Improvement District.

Landscaping Water Water for landscaping will be provided by the Improvement District. Each home shall have an approved backflow device for providing irrigation water. Location of the back-flow device will be provided with the landscape plan submittal. Even-numbered lots (2–24 and estate lots 2 and 4) will irrigate on even-numbered days. Oddnumbered lots (1-23 and estate lots 1 and 3) shall irrigate on odd-numbered days. There will be no irrigation on the 31st day of any month.

Community Septic A community septic system has been designed and approved by the Oregon Department of Environmental Quality (DEQ). Each home must have at least a 1,500-gallon, double chambered concrete holding tank. Each residence will also be required to install and maintain an internal submersible pump (1/2 HP Stayright, Model #P100511 with 1/4-inch flow controllers). Each individual lot has a sewer lateral located at the lot line for connection to the pressurized collection system. The filtered waste is pumped to the AdvanTex treatment facility. The treatment facility recirculates the waste and pumps the treated effluent to a community drainfield. Revision: July, 2003

Deschutes River Ranch Design Guidelines

The community septic system has been engineered to significantly higher design standards to accommodate the size of home and lifestyles of Deschutes River Ranch residents.

Electricity A new backbone was installed in 2002/2003. All home sites are served by 400-amp service, and estate lots by 600-amp service. There are new power vaults and redundant underground conduits. The provider is Central Electric CoOp.

Telephone New underground phone lines were installed in 2002/2003. The provider is Qwest.

Cable Due to its location, there is no cable provider for the Ranch. The Design Guidelines allow for 18” satellite dishes.

Utility Guidelines Your utilities should be designed and constructed for the most intensive use that can be reasonably foreseen. All utilities must be buried. Water and sewer piping must be located in different trenches, with separation distances as required by the County of Deschutes. Power and telephone may be in common trenches with other services if acceptable by governing building codes and regulations. Contractors should check with utility companies to determine current installation standards. The following general considerations are applicable to buried utilities: • In order to avoid damage from the rocky subsoils of the area, all pipe and wiring (including wiring in conduit) should be bedded over and under with at least 4 inches of sand or pea gravel minimum, or as required by governing authority. • No pipe or wire should be installed directly above another; at least 18 inches horizontal offset should be provided. • Location tape should be provided with all buried utilities. Location tape above non-metallic piping should be magnetically detectable. A separate location tape should be provided for each pipe or wire even if installed in a common trench. Accurate as-built drawings should be prepared by all developers to tie the locations of all utilities to permanent reference points. Copies will be submitted to the governing utility or regulatory agency upon completion of construction.

Revision: July, 2003

Deschutes River Ranch Design Guidelines

APPENDIX A PLANTINGS

IN THE

Austrian Pine Blue Spruce Birch - European White Alpine Fir Blue Atlas Cedar Jacmonti or River Birch Aspen Lilac Vine Maple* Blue Globus Spruce Birdâ&#x20AC;&#x2122;s Nest Spruce Japanese Barberry Burning Bush* Spireas

INTERIOR LANDSCAPE ZONE 1 Moonglow Juniper Mugho Mt. Hemlock Murrayana Pine Nanking Cherry* Rhododendron-H1, H2 Artic Willow Japanese Holly-Blue Girl/Blue Boy Azaleas Cranberry* Red Twig Dogwood* Cistina Plum* Rock Daphne Vicarii Privet

Perennial which can be interchangeable with zone 2: Shasta Daisy Iris Veronica Wooly Thyme Aster Ajuga Sword Fern

Vinca Daylily* Phlox Sea Pink Penstemon Lupin Bachelor Button

Grasses: Turf lawn Fescue, Rye, Bluegrass mixes Natives

* Indicates plants that deer especially like to eat Revision: July, 2003

Deschutes River Ranch Design Guidelines

APPENDIX B PLANTINGS

IN THE

TRANSITION LANDSCAPE ZONE 2

Canadian Red Chokecherry* Red Pin-Oak Bristlecone Pine Desert Olive Murrayana Pine Potentilla Oregon Grape Spireas Mt. Ash Blue Mist Spirea Rocky Mt. Maple* Dogwood* Nannyberry Cottoneaster, Spreading and Peking Wayfaring Viburnum, Arrowood, Alfredo, Burkwoodii Lydia Broom

Perennials: Catmint Snow In Summer Lambs Ear Kinnikinnick* Creeping Juniper Sweet Woodruff Ore. Grape Repens Siberian Iris* Virginia Creeper

Grasses - Natural/Transition Natives Blue Fescue Buffalo Grass Blue Oat Carex Fountain * Indicates plants that deer especially like to eat Revision: July, 2003

Red Hot Poker* Moss Rose Sedums Coreopsis Iceplant Pink Pussytoes Basket of Gold Daylily* Yucca Clematis

Deschutes River Ranch Design Guidelines

APPENDIX C PLANTINGS

IN THE

N AT U R A L L A N D S C A P E Z O N E 3

Currant* Serviceberry Western Sand Cherry* Fragrant Sumac Claveyâ&#x20AC;&#x2122;s Honeysuckle Buffaloberry Silver Sage Mockorange Snowberry Rabbit Brush Ponderosa Pine Great Basin Rye* Indian Blanket Flower Yarrow Blue Flax* Mexican Hat These plants are all native and natural in appearance to this area. Theyâ&#x20AC;&#x2122;re also drought tolerant, once established.

Grasses - Natural/Transition Natives Blue Fescue Buffalo Grass Blue Oat Carex Fountain

* Indicates plants that deer especially like to eat Revision: July, 2003

Deschutes River Ranch Design Guidelines

APPENDIX D A P P L I C AT I O N

FOR

A R C H I T E C T U R A L D E S I G N S U B M I T TA L

Date:

Homesite:

Owner(s): Address: Phone: Architect/Designer: Address: Phone:

This application will only be considered complete if the following are included: 1. A written explanation of the design approach. 2. Design Documents (3 sets) as follows: a. b. c. d.

Site Plan @ 1” = 10’0” minimum Floor plan(s) @ 1/4” = 1’0” Exterior Elevations @ 1/4” = 1’0” Site/Building section @ 1” = 10’0” minimum

3. A list of proposed materials including siding, trim, roofing, decking, window and door types, and all exterior materials or surfaces included in the design concept. 4. A design review fee of $250.00.

Signature of Owner or Owner’s Representative:

Revision: July, 2003

Deschutes River Ranch Design Guidelines

APPENDIX E A P P L I C AT I O N

FOR

C O N S T R U C T I O N D O C U M E N T S U B M I T TA L

Date:

Homesite:

Owner(s): Address: Phone: Architect/Designer: Address: Phone:

This application will only be considered complete if the following are included: 1. Construction Documents (3 complete sets) as follows: a. b. c. d.

Site Plan @ 1” = 10’0” minimum Floor plan(s) @ 1/4” = 1’0” Exterior Elevations @ 1/4” = 1’0” Site/Building section @ 1” = 10’0” minimum

Structural, Mechanical, and Electrical sheets, as part of the construction document package, are not required for the Construction Document Submittal unless requested by the Design Review Committee. 2. Material Sample Board as outlined in Section 4.2.6 of the Design Guidelines. 3. Landscape Plan as outlined in Section 4.2.7 of the Design Guidelines. 4. Construction Schedule as outlined in Section 4.2.8 of the Design Guidelines. 5. Site Staking as outlined in Section 4.2.9 of the Design Guidelines. 6. A Plan Review fee of $500.00.

Signature of Owner or Owner’s Representative:

Revision: July, 2003

Deschutes River Ranch Design Guidelines

APPENDIX F A P P L I C AT I O N F E E S

Architectural Design Submittal Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$250.00 Construction Document Submittal Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$500.00 Minor Additions and Resubmittal Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$100.00

Revision: July, 2003

Deschutes River Ranch Design Guidelines

APPENDIX G ARCHITECTURAL CHARACTER As stated earlier in this manual, the homes of Deschutes River Ranch are intended to represent the architectural heritage of Central Oregon and the Intermountain West. The diverse nature of the surroundings at Deschutes River Ranch provide for the opportunity to encounter the homesites from a distant perspective as well as in close proximity. As a result, the architectural character of the homes at Deschutes River Ranch developed from the overall building massing, to the intermediate arrangement of spaces, and finally the individual details.

The Distant View: • Building massing, forms, and skyline • Roofline, building heights and roof massing

The Middle View: • Overall roof articulation • Landscaping, natural surroundings • Exterior building treatments and materials

The Closer View: • Architectural detailing • Trim and connection details • Color and texture

T H E D I S TA N T V I E W

Pasture-edge homesites with medium profile roofs, primarily single-level homes, daylight basements, minimum upper-floor building massing. Attention should be placed on view corridors.

Base of rim homesites with higher profile roofs, potential for two-story homes, steeper roof pitches. Attention should be placed on rear primary decks, entry, vehicle sequence.

Upper rim homesites with low profile roofs, primarily single-level homes, daylight basements. Attention should be placed on rimside deck and deck supports. Revision: July, 2003

Deschutes River Ranch Design Guidelines

THE MIDDLE VIEW

• articulated roof forms • beam extensions

• extended overhangs on low profile roofs

• heavy trim accents

• use of window shutters

• historical garage door treatment

• large stone massing

• stone base

• diverse use of historic materials

• strong stone bases

• use of historic stone facades

• articulated window packages

• alternating roof pitches

• heavy timber treatments

• traditional detailing

• base of house grows from landscape

Revision: July, 2003

Deschutes River Ranch Design Guidelines

THE CLOSER VIEW

• craftsman-like beam connections

• strong connection of home to earth

• use of natural timbers

• multiple materials in context

• traditional doors and windows

• true-dimensional timbers

• traditional attic vents

• historical garage detailing

• heavy trim and sill treatments

• traditional stone headers • large-to-small stone treatments

Revision: July, 2003

Deschutes River Ranch Design Guidelines

APPENDIX H E X T E R I O R C O L O R S , T E X T U R E S & M AT E R I A L S

Revision: July, 2003

Deschutes River Ranch Addendum to Design Guidelines Estate Lots E4, E6, E7, E8, E9

1. Introduction This Deschutes River Ranch (DRR) Estate Lot Design Guidelines addendum has been created to assist you in designing and building your home and outbuildings in a manner that preserves the natural beauty of the Ranch, maintains a high standard of quality for all buildings, and serves to protect values for you and your neighbors. The estate lot guidelines place specific emphasis on integrated site plans detailing the relationship of the residence, outbuildings and site; livestock, feed and waste management practices; maintaining relations with neighbors; and fulfilling legal obligations. The intent of these guidelines is to ensure that homes and all improvements are of a consistent quality, are aesthetically appealing, preserve view lines, and protect your privacy. Our Design Review Committee (DRC) exists to work with you and your architect/designer to approve your plans expeditiously, as long as they are consistent with the Design Guidelines. Estate lot design review will place specific emphasis on integrated site plans showing the relationship of the home and outbuildings to the site, neighboring estate lots and open space. It is the lot ownerâ&#x20AC;&#x2122;s obligation to comply with all applicable laws, codes, ordinances and regulations, including, without limitation, Deschutes County ordinance relating to the Landscape Management Combining Zone. A copy of the Deschutes County Landscape Management Combining Zone Pamphlet is available at the ranch office. Information regarding the LM Combining Zone and other County ordinances and regulations are available from: Deschutes County Community Development Department 117 NW Lafayette Ave. Bend, OR 97701 Phone: 541.388.6575 Fax: 541.385.1764 www.co.deschutes.or.us/cdd Regardless of when you obtain Deschutes County approval for your landscape management plan and/or your building plans, they must be approved by the DRR Design Review Committee before you may begin construction.

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Deschutes River Ranch Addendum to Design Guidelines Estate Lots E4, E6, E7, E8, E9

Deschutes River Ranch Design Guidelines 1.1

Residences In keeping with the spirit of the Scenic Waterway and Deschutes River Ranch, residences on Estate Lots E-4 and E6 â&#x20AC;&#x201C; E-9 shall be limited to 1 storey, plus bonus room/office over garage. The square footage may be from 2,300-6000 s.f. and cover a maximum of 60% of the building envelope. The height of the residence at front of the building envelope is limited to 2024 foot height with elevation increasing to a maximum of 30 feet at the rear of the building (including chimney or other projections ) A site plan and building plan for all residences must be approved by the Design Review Committee and comply with Deschutes County requirements.

1.2

Outbuildings Outbuildings shall be designed to be both functional and aesthetically pleasing. Materials, including siding, roofing and rock shall meet the overall standards in the Design Guidelines. Generally, outbuildings shall be sited in back of the building envelope, and shall be sited in such a way as to integrate with the overall site plan. A site plan and building design for all outbuildings must be approved by the DRC. Perimeter setback requirements: 50-foot front and sides 25-foot back

1.2.1 Barns A typical barn will be 40â&#x20AC;&#x2122;x60â&#x20AC;&#x2122; or smaller. This size allows up to a five stall barn with adequate tack and grooming areas. Indoor arenas are not encouraged because of the building mass required.

1.2.2 Machine shops A single machine shop will be allowed for work shop and equipment storage.

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Deschutes River Ranch Addendum to Design Guidelines Estate Lots E4, E6, E7, E8, E9

1.2.3 Storage Sheds A storage shed for storing hay and other feed will be allowed.

1.2.4 Loafing sheds 3-sided Loafing sheds for livestock shelter will be allowed

2.1 Livestock 2.1.1 Horses The allowable number of horses is dependent on commonly accepted livestock management practices for the lot size but the final determination of the number of allowable animals on a lot shall be the decision of the DRR Design Review Committee subject to any appeal rights contained in the CC&Râ&#x20AC;&#x2122;s.

2.1.2 Cattle and other allowable animals The final determination of the number of allowable animals on a lot shall be the decision of the DRR Design Review Committee subject to any appeal rights contained in the CC&Râ&#x20AC;&#x2122;s.

2.2 Livestock Management 2.2.1 Watering The use of frost free and self watering devices is encouraged. A back flow device is required to maintain separation of domestic and livestock water.

2.2.2 Hay Storage Prudent storage practices are required to protect against the possibility of fire and injury to livestock. Hay storage in approved storage structures is required

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Deschutes River Ranch Addendum to Design Guidelines Estate Lots E4, E6, E7, E8, E9

2.2.3 Manure Management Manure management requires constant attention. Sanitation practices must be implemented for the sake of livestock, family health, relations with neighbors, and to fulfill legal obligations. Good management begins with frequent collection for composting or hauling it away. In the event that a lot becomes a nuisance or hazard to adjacent or nearby land, in the judgment of the DRR DRC, such owner shall be deemed in violation of DRR design guidelines and CC&R’s and subject to the rights and remedies available to the DRR owner’s association under the guidelines, the CC&R’s and applicable law. The National Resources Conservation Service provides several manure management options, including composting and hauling.

2.3 Fencing Fencing material and construction to match ranch standard of post and 3 rails. A 2”x4” mesh no-climb fence material is an allowable option to control livestock and dogs.

2.4 Irrigation It is the owner’s obligation to comply with all applicable laws. Information is available from: Oregon Water Resources Department 725 Summer Street NE, Suite A Salem, OR 97301-1271 www.wrd.state.or.us

2.4.1 Lots with water rights Estate Lot 4

2.4.2 Lots with no water rights Estate Lots 6, 7, 8 and 9

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Deschutes River Ranch Addendum to Design Guidelines Estate Lots E4, E6, E7, E8, E9

Any violation of this Addendum shall constitute a default under the Design Guidelines and the CC&R’s and shall subject the applicable lot owner to enforcement of the rights and remedies available to the DRR Owner’s Association under the Design Guidelines, CC&R’s and applicable law.

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Deschutes River Ranch 2014 Revised and Restated Ranch Lands Rules and Regulations The purpose of the Ranch Lands Rules and Regulations (“R&Rs) is to encourage respect for one another’s use and enjoyment of DRRG, LLC’s Ranch Lands and the safety of all, and to preserve and protect the Ranch Lands’ precious resources. It is each Association member’s responsibility to make sure that they, as well as their family and guests, are familiar with and understand the supplemental R&Rs and to insure that they are followed. These R&Rs are in addition to and are not intended to replace the Declaration of Easement (“DOE”) or the CC&Rs. Effort has been made to make sure that the R&Rs are consistent with the DOE and the CC&Rs; in the case of any conflict the DOE controls. Map: 2014 Ranch Lands Designated Trails and Emergency Access Points: The trails designated for use by members lie within the Easement Areas described in the DOE and the CC&Rs. The map provided with these R&Rs is color coded to identify special conditions that are applicable to various trails. The trails highlighted in green represent trails for use by members (member access to the BLM is via the man-gate at the northern most end of this trail system; the combination to the lock on the man-gate is 7169); the trail highlighted in yellow, as it has not been used much, requires some additional definition to make the path obvious and to define its connection to Arrowhead Road; the trail highlighted in purple is a trail that travels along a lush low bank section of the river which is ideal habitat for waterfowl and is within the sensitive wildlife refuge area and, for this reason, is where dogs must be leashed and is where, during the spring nesting season (from approximately March 1st to June 15th), we ask that fishermen not use as points of entry and exit to the river, and; the trail highlighted in orange (“Private Trail”) is a trail that has special conditions per the DOE Section 1.2 and the CC&Rs Sections 6.1(b) and 11.1 and that DRRG, LLC has provisionally made available for use to Association members and their accompanied guests (member access to Twin Bridges Road is via the south end of the LLC’s Private Trail; the combination to the lock on the man-gate is 7169). Members’ emergency golf cart/ATV access via the footbridge and vehicle access via the Twin Bridges vehicle gate are each depicted by a red box. Finally, DRRG, LLC supports and encourages practices that seek to reduce and control the proliferation of invasive weeds and aquatic species and requests that when using the LLC’s trail system appropriate care is taken by Association members to minimize the transport of these species into the Ranch Lands and the river. For anglers please see, www.cleanangling.org. Hiking and Bicycling: Hiking and bicycling is permitted on all Ranch Lands designated trails. Hikers and bicyclers must stay on the designated trail system at all times. Bicyclers yield to hikers and to horseback riders, and hikers yield to horseback riders. Horseback Riding: Horseback riding is permitted on all Ranch Lands designated trails. Horseback riders must stay on the designated trail system at all times. Dogs: Dogs are welcome on the Ranch Lands and, with the exception of the trail highlighted in purple that is within the sensitive wildlife refuge area, and so long as dogs do not chase and disturb wildlife and dogs’ owners/handlers clearly maintain voice control, are not required to be leashed. To insure that control is always maintained, it is suggested that owners/handlers carry and have available a leash for their dog. Please responsibly dispose of dog waste deposited on the trail. When encountering a horseback rider on the trail system, owners/handlers must maintain strict control of their dog and insure that their dog presents no threat, perceived or otherwise, to the horse or to its rider. Fishing: Fishermen’s access to the river is permitted along the trails highlighted in green bordering the Riparian Area and, from June 15th to March 1st, along the trail highlighted in purple within the sensitive wildlife refuge area. Fishermen, to minimize impact to the Riparian area, please use care when entering and exiting the river. Catch and release, using barb-less hooks, is encouraged. Fishermen should check a current edition of the Sport Fishing DRRG, LLC’s 2014 Revised and Restated Ranch Lands Rules and Regulations

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Regulations (available online at www.dfw.state.or.us or available at local sporting goods stores) for regulations that apply to fishing the middle Deschutes River. Campfires: All campfires are prohibited on the Ranch Lands. Firearms: Use of firearms, with the exception of that which is for agricultural purposes by Ranch personnel, is prohibited on the Ranch Lands. Fireworks: The discharging of fireworks is prohibited on, or over, the Ranch Lands. Smoking: Smoking on the Ranch Lands, with the exception of the irrigated areas of the Pavilion and the Gazebo, is not permitted. ADA Inspired Member Golf Cart/ATV Transportation To The Pavilion: By mutual agreement between DRRCA and the LLC, this use, as it was only a short term solution, is temporarily unavailable. It was further agreed that the parties would begin collaborating on a permanent solution that would facilitate the transportation of persons with a disability to the Pavilion, and that this would likely require that members pass an amendment to the CC&Rs and that the LLC make a modification to the DOE. It is the goal of both parties to have a proposed solution available for the membership’s consideration at the annual members’ meeting in September 2014. Pavilion Area: The Pavilion is open to all Association members, it is not necessary to schedule small family events. However, any large scale semi-private events should be coordinated with Cascadia Management by calling 541.617.3863 or emailing StephanieW@mycascadia.com. Camping Tent camping is only allowed at the Pavilion and for no more than two consecutive nights in any 15 day period. Camping arrangements must be made in advance as it is necessary to shut off the irrigation system prior to camping. Please contact Cascadia Management by calling 541.617.3863 to schedule a camping event. Minor children (children under the age of 18) must be accompanied and supervised by the sponsoring member. Lighting and Propane Use The Pavilion is equipped with fully shielded lighting and a propane tank for use with a personal barbeque. The light switch and propane valve are located in a closet on the backside of the shelter. The closet is locked; 7169 is the combination to the lock. Toilet and Changing Room Please take care to follow the posted directions when using the incinerating toilet. The toilet/changing room is locked; 7169 is the combination to the lock. Please make sure that the toilet/changing room is locked when not in use. Fireplace The Pavilion Fireplace is the only place on the Ranch Lands where members’ fires are permitted. The Association provides firewood for members’ use. Cutting trees or gathering any branches or fallen wood for kindling or firewood is not permitted anywhere on the Ranch Lands. Members must take into consideration the dryness of the Ranch Lands and the wind conditions, particularly during fire season, when evaluating whether or not it is safe to use the Fireplace and they must exercise good judgment. Fires must be completely extinguished before leaving the Pavilion; it is the responsibility of the member, or the sponsoring member, who started the fire to insure that it is completely out. Minors (children under 18) may not use the fireplace. Corral DRRG, LLC’s 2014 Revised and Restated Ranch Lands Rules and Regulations

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Use of the corral is on a first-come first-serve basis. There are two paddocks; they can open to make one large paddock. Trash Trashcans are not provided. The Pavilion is a carry-in and carry-out facility and must be left in the same condition, or better, when members leave. Everyone is encouraged to pick up any trash seen on the Ranch Lands. Gazebo Area: The Gazebo is open to all Association members, it is not necessary to schedule small family events. However, any large scale semi-private events should be coordinated with Cascadia Management by calling 541.617.3863 or emailing StephanieW@mycascadia.com. Trash Trash cans are not provided. The Gazebo is a carry-in and carry-out facility and must be left in the same condition, or better, when members leave. Emergency Golf Cart/ATV/Vehicle Access: In the event of a 911 emergency, first responders have access to the Ranch Lands via the Twin Bridges vehicle gate and/or the White Rock Loop vehicle gate. In the event of a non 911 emergency, for golf cart/ATV and/or vehicle access to the Ranch Lands, call the Ranch Lands non 911 emergency answering service, 1-866-810-2022; this service will provide the caller with the combination to the locks on the bollard at the entry to the footbridge and the Twin Bridges vehicle gate. In addition to this, members can also cut the lock on the bollard and/or cut the chain on the Twin Bridges Road vehicle gate to gain emergency access. The emergency access phone number is available 24 hours a day, seven days a week. Please note that DRRG, LLC makes no representations as to the condition of its Ranch Lands trails for use by a golf cart/ATV or a vehicle for emergency access; operators do so solely at their own risk. Disclaimer: The Ranch Lands are largely unimproved and include dangers and/or conditions such as variations and steepness in terrain, rocks, river, surface or subsurface conditions, stumps, and other potential dangers. Use and enjoyment of the Ranch Lands is at oneâ&#x20AC;&#x2122;s own risk. DRRG, LLC assumes no liability for any harm that may come to Association members, their families or guests, or their personal property as a result of using and enjoying the Ranch Lands. Association members, their families and guests, accept and assume the inherent risks of use and enjoyment of the Ranch Lands and hold harmless and indemnify DRRG, LLC from any and all claims of any nature whatsoever in any manner associated or connected with members, or their families or guests use and enjoyment of the Ranch Lands.

DRRG, LLCâ&#x20AC;&#x2122;s 2014 Revised and Restated Ranch Lands Rules and Regulations

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BLM

2014 Ranch Lands Designated Trails Trails Trail Under Improvement Wildlife Refuge Trail Private Trail Emergency Access