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CCR1988216AMENDED COMMON COUNCIL - CITY OF MUSKEG0 RESOLUTION #216-88 APPROVAL OF SUBDIVIDER'S AGREEMENT BAY BREEZE WHEREAS, the Subdivider's Agreement has been submitted for the Bay Breeze development, and WHEREAS, the Finance Committee has recommended approval. NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of Muskego, upon the recommendation of the Finance Committee, does hereby approve the Subdivider's Agreement as attached, as amended, subject to the approval of the City Attorney. DATED THIS 27th DAY OF September , 1988. FINANCE COMMITTEE Ald. Mitchel Penovich Ald. Edwin P. Dumke Ald. Daniel J. Hilt ATTEST : City Clerk Corrected COMMON COUNCIL - CITY OF MUSKEG0 RESOLUTION #216-88 APPROVAL OF SUBDIVIDER'S AGREEMENT BAY BREEZE / WHEREAS, the Subdivider's Agre Bay Breeze development, and WHEREAS, the Finance Committee NOW, THEREFORE, BE IT RESOLVED City of Muskego, upon the reco Commission, does hereby approv attached, subject to the appro DATED THIS , 1988. FINANCE COMMITTEE Ald. Mitchel Penovich / / ATTEST : Ald. Edwin P. Dumke Ald. Daniel J. Hilt COMMON COUNCIL - CITY OF MUSKEG0 RESOLUTION #216-88 APPROVAL OF SUBDIVIDER'S AGREEMENT BAY BREEZE WHEREAS, the Subdivider's Agre Bay Breeze development, and WHEREAS, the Finance Committee BE IT FURTHER RESOLVED that th attached, with corrections pur City Attorney. recommendation, is hereby appr DATED THIS DAY OF , 1988. FINANCE COMMITTEE / Aid. Mitchel Penovich / Ald. Edwin P. Dumke / ATTEST : / f City Clerk / Ald. Daniel J. Hilt . CITY OF MUSKEGO NOTICE OF DEVELOPER‘S AGREEMENT AFFECTING LAND PLEASE TAKE NOTICE that the Common Council of the City of Nuskego has entered into a Developer’s Agreement dated the 30th day of September, 1988 with the owner/developer of the following described property: SEE ATTACHED EXHIBIT “K” obligations that have been imposed upon the land PLEASE TAKE FURTHER NOTICE that there are a number of owner/developer of the above described property that apply to the land involved, irrespective of future ownership and shall continue with the land as deed restrictions. PLEASE TAKE FURTHER NOTICE that a complete copy of the Developer’s Agreement is obtainable by contacting the City Clerk of the City of Nuskego during regular business hours. This Notice of Developer’s Agteement dated at Muskego, Uisconsin, this 30th day of September, 1988. BY THE COMMON COUNCIL: JEAN K. MARENDA, clerk DEVELOPERS AGREEHENT This agreement, made this xmday of f/-.-"yn , 1988 by and between Ingersoll Development 6-rp., a Wisconsin Corporation, hereinaiter called~ the "Developer", and The Wisconsin, located in Waukesha County, hereinafter called City of Muskego, a municipal corporation of the State of the "City". WITNESSETH WHEREAS, Developer has submitted for approval by the City a proposed plan for Bay Breeze, part of a Planned Unit Development, a copy of which is attached hereto, made a part hereof and marked Exhibit "A" (the Planned Unit Development); and WHEREAS, The governing body of the City requires that the Developer make and install certain public improvements reasonably necessary for the Development and the construction of said improvements shall be according to municipal specifications without cost to said municipality; and WHERAS, the City's Engineers have duly approved the Developer's plans and specifications for the Planned Unit approved and authorized the terms and provisions of this Development's improvements and the Comqon Council has duly agreement and approved the plan of Bay Breeze Condominiums. NOU, THEREFORE, in consideration of the covenants herein contained, the parties hereto agree as follows: 0 SECTION I. IMPROVEMENTS: The Developer, entirely at its expense, shall: A. SURFACE WATER DRAINAGE 1. Construct, install, furnish and provide adequate Works Committee for storm and surface water drainage facilities as approved by the City engineer and the Public throughout the specifications attached hereto, made a part hereof and marked Exhibit "B". easements as may be required in any public street or 2. The City shall furnish to the Developer such permits or property to enter upon and install the above described surface water drainage system. 3. Upon installation and testing of the surface water drainage system, the Developer hereby agrees to provide to I the City, without cost, an as-built drawing of the completed I@ surface water drainage system 1 B. WATER 1. Construct, install, furnish and provide a complete system of water supply and distribution, throughout the entire and in accordance with the plans and specifications attached Planned Unit Development, as approved by the City Engineer hereto as Exhibit"C". 2. Shall re-imburse the City for the cost associa.ted with the drafting of an as-built plan of the water system, as constructed by the Developer. C. SANITARY SEWER 1. Construct, install, furnish and provide a complete sanitary sewage collection system throughout the entire Planned Unit Development, all in accordance with the plans, specifications and drawings attached hereto as Exhibit "D". 2. Upon installation and testing of the sanitary sewer without cost, an as-built plan of the completed sanitary system, the Developer hereby agrees to provide the City, sewer sys tem. D. LANDSCAPING 1. Preserve existing trees, wherever possible, in the I construction of the Planned Unit Development improvements. outbuildings, destroyed trees, brush tree trunks, shrubs and 2. Remove and lawfully dispose of all old barns, other similar natural growth and all rubbish. 3. The Developer agrees to install and maintain all with the plans and specifications attached hereto as Exhibit landscaping and berms along Janesville Rd. in accordance "E". In addition, the Developer agrees to have grass planted in front and on these berms, as called for on the landscape plan, by the end of the first planting season after construction of the berms along Janesville Rd. and no later than 12 months after the signing of this agreement. 0 E. ROADS AND STREETS: Grade and improve all roads and streets in accordance with the plat of said Planned Unit Development and the plans and specifications attached hereto, made a part hereof and marked Exhibit "F", all in accordance with the City's street specifications . SECTION 11. TIME OF COMPLETION OF IMPROVEMENTS: The dedicated improvements set forth in Section 111 and the landscaping as set forth in Section I, paragraph D herein shall be completed by the Developer in total within twelve (12) months of the date of this agreement. All remaining 2 completed by the Developer in total within eighteen (18) improvements, as set forth in Secton I above, shall be months from the date of this agreement. Execept that the Developer agrees to install the final road surface no later than 6 months af fer the completion of the last condominium building, weather conditions permitting. SECTION 111. DEDICATION: Subject to all of the other provisions of this agreement, of the above described improvements, unconditionally give, Developer shall, without charge to the City, upon completion grant, convey and fully dedicate the public water system, as described in Section I., paragraph E. above, to the City, encumbrances whatever, together with and including, without its successors and assigns, forever, free and clear of all limitation because of enumeration, any and all land, machinery, equipment, appurtenances and hereditaments which buildings, structures, mains, conduits, pipe lines plant, may in any way be a part of or pertain to such improvements and together with any and all necessary easements for access there to. 0 SECTION IV. INSPECTIONS AND ADMINISTRATION FEES: The Developer shall pay and reimburse the City all fees as Land Division Ordinapce. These fees to include, but not required and at the times specified in Section 10 of its dedication fees to be $13,200.00 (74 condominium units X limited to the payment of park dedication fees. These park lots along Park Dr. that are part of this Development) will $200.00 per unit minus $1,600.00 for fees already paid for be paid at time of acceptance of the certified survey map by responsibility for park dedication fees for parcel 1 of the the City. These fees will represent the Developers above mentioned certified survey map. The parks dedications fees for Parcel 2 of the above mentioned certified survey map will be $200.00 (1 park dedication fee) at this time. parcel shall not become due and payable until such time as Any additional park dedication fees associated for this the developer returns to the Common Council with a revised certified survey map showing the land division for the single family home sites as approved by the Plan Commission and the Common Council and as described in this agreement under Section V. paragraphs J, K, and L. In addition the Developer agrees to pay to the City all fees associated with the condominiums being constructed on Parcel 1 of the above mentioned certified survey map. 3 SECTION V. MISCELLANEOUS REQUIREMENTS: - The Developer Shall: A. Easements: Provide any easements on Developer’s land deemed necessary by the City Engineers before the final approval, provided such easements are so located as not to render any part of the planned unit development uobuildable or unsaleable. B. BIKE PATH: 1. Provide for the coostructioo of a bike path. This bike path to be constructed by the Developer, but is to be re- imbursed by the City for 50% of the cost of construction, but not to exceed $5,638.50 on the City’s portion. The cost associated for this constructioo are to be limited to the cost of preparation of the land under the path and the installation of the asphalt surface. It is the City’s responsibilty to obtain all neccessary permits for the construction of said bike path, Including the cost of said permits. This bike path is to begin at the Developers Southeast corner of said prdperty and continue west across Developers property for approx. 1,210 feet to a point intersecting with the center area of Pioneer Drive. It is to be located 4” (feet) from the north edge of Janesville Rd. Once installed, it will be the City’s responsibility to maintain and to provide insurance for said bike path. Said maintance shall include, but is not limited to the following: Surface maintance, saou removal (as the City deems necessary), marking, garbage control. The Developer reserves the right at any time to cross said bike path with the construction of roads into Developers property, and will maintain the integrety of said path at Developers expense. Developer agrees to construct the entire footage of bike path concurrently with the first lift of asphalt for the streets serving Phase I. a C. STREET SIGNS Reimburse the City for the cost of all street signs and posts and the cos; of their installation, this to -include all traffic signs. D. MANNER OF PERFORMANCE: Cause all construction called for by this agreement to be carried out and performed in a good and workmanlike manner. - E. SURVEY MONUMENTS: Properly place and install any survey or other monuments required by statute or ordinance. 4 F. GRADES: Furnish to the Building Inspector of the City a copy of Exhibit "A" showing the street grade in the front of each building, the yard grade of the common areas around each building. G. STREET LIGHTS: Install street lights in accordance with the plans, and drawings attached hereto as Exhibit "G". H. SIGHT DISTANCES: Restrict common areas so that no fence, wall, hedge, or shrub planting which obstructs sight lines at elevations between Two (2) and Six (6) feet above the roadways shall be placed or permitted to remain on any corner within the line connecting them at points twenty-five (25) feet from triangular area formed by the street property lines and a the intersection of the street lines, or in the case of a rounded property corner, from the intersection of the street property lines extended. I. BOAT SLIPS 1. Private - Not constuct more than 1 vrivate boat sliv for every condominium unit constructed. Said boat slips shall extend a distance of approximately 70 feet from shore, plus or minus 5 feet. At no time will the total number of private boat slips be more than seventy-four (74). Additionally, these private boat slips will only be available to owners of unit, and no unit may own more than one (1) slip. the condominium units and shall be limited to one (1) per 2. Semi-private - Not to construct more than twenty-five use facility. These boat slips will not be available for (25) semi-private boat slips in front of the proposed mixed- rent. The intent of these piers are for the use of the mixed-use facility. 0 3. EXISTlNG HOUSE AT SOUTHUEST CORNER OF PROPERTY: Within two years (2) of the signing of this agreement either renovate the exterior of the above mentioned house, commonly known as the "Masterson Home", or demolish said house. Renovation to include the exterior and replacement of rotting window frames. The zoning for this house, or any building constructed in its place will have the same rights as that of "00s" zoning district as defined by the Muskego Zoning Ordinance. K. MIXED-USE FACILITY: Have the right to construct a mixed use facility on the property as shown and attached hereto as Exhibit "H", as approved by the Muskego Planing Commission. Prior to constrtuction of said mixed-use facility, Developer will go back to the Plan Commission for approval of drawings of the 5 elevation of said building. Should Developer decide not to build said mixed used building, the Developer will have the right to construct a maximum of ten (10) single family homes in its place. L. SINGLE FAMILY HOMES AT WEST END OF PROPERTY: Have the right to construct up to a maximun of seven (7) single family homes at the west end of the property as shown and attached hereto as Exhibit ”I”, as approved by the Muskego Planning Commission. M. BYLAWS OF BAY BREEZE CONDOMINIUMS: Attach as Dart of this aEreement is a copy of the original - condominium declaration and the By-laws o€ the condominium complex known as “Bay Brezze Condominiums”. That declaration and by-laws are attached hereto as Exhibit “J”. Once said declaration and by-laws have been accepted by the condominium association, the association, though due process as outlined in the bylaws, can amend or change said by-laws without notification or consent by the City, as long as said change or amendment is within present municipal law as outlined in the City’s ordinances. Bay Breeze Condominiums will include seventy-four (74) condominiums located at the east end of the property, and for assesment purposes, be treated as on-lake property as defined by the “Little Huskego Lake Protection and Rehabilitation District”, as shown and attached hereto as Exhibit “A”. As part of the are not limited to the follo.wing: private roads and private improvements. These improvements shall include, but driveways, storm sewer system, sanitary sewer system and landscaping. 0 associations responsiblities will be the maintance of the N. SEEDING OF DISTURBED AREAS Agrees to seed all areas that have been disturbed by appearance for more than 6 months. Said seeding will be done construction, but may not be put into final grade or by the Developer in a timely manner so as not to create any adverse affect on the lake . 0. TENNIS COURT To construct a tennis court, as shown on Exhibit “A“ attached. The Developer agrees to construct said tennis court the earlier of four (4) years from the date of this agreement, or 6 months after completion of the last condominium building to be built, weather permitting. P. BOAT STORAGE BUILDING To construct a boat storage building, as shown on Exhibit storage building the earlier of four (4) years from the date “H” attached. The Developer agrees to construct said boat of this agreement, or 6 months after completion of the last condominium building to be built, weather permitting. 6 Q. BAINTAINANCE OF LANDSCAPING ON DEDICATED LAND Agrees to provide the maintainance of the landscaping on the land dedicated to the city, state, or county. This maintainace shall include the regular mowing of said land. SECTION VI. GUARANTEES: The Developer shall guarantee the public water system and landscaping described in Section I. items B and D hereof, against defects due to faulty materials or workmanship provided that such defects appear within a period of one (1) year from the date of dedication and acceptance of the public water system. The Developer shall pay for any damages to City property resulting from such faulty materials or workmanship. This guarantee shall not be a bar to any action Wisconsin law on negligence shall govern such situation. the City might have for negligent workmanship or materials. SECTION VII. GENERAL INDEBNITY: any provisions of this agreement or documents incorporated In addition to, and not to the exclusion or prejudice of, herein by reference, Developer shall indemnify and save harmless the City, its officers, agents and employees, and shall defend the same from and against any and all liability, claims, loss damages, interest actions, suits, judgements, costs, expenses, attorney’s fees, and the like obtained, which may in any manner result from or arise in to whomsoever owed and by whomsoever and whenever brought or negli.gent construction or operation or improvements covered the course of, out of, or as a result of the Developer’s infringement by it of any patent, trademark, trade name or thereby, or its violation of any law or ordinance, the copywrite, and its use of road improvements prior to their formal dedication and acceptance by the City. SECTION VIII. AGREEBENT FOR BENEFIT OF PURCHASERS: The Developer agrees that in addition to the City-s rights herein, the provisions of this agreement shall be for the benefit of the purchaser of any lot, or condominium unit, as applicable, or any interest in any lot, parcel of land, or condominium unit in the Planned Unit Development. SECTION IX. ACCEPTANCE OF WORK AND DEDICATION: As and when the Developer shall have completed the improvements herein required, and shall dedicate the same to the City as set forth herein, the same shall be accepted by 7 the City if said improvements have been completed as required by this agreement and as required by applicable City ordinances and other applicable law ana approved by the City Engineers. SECTION X. EROSION CONTROL PLAN AND PERMIT: The Developer shall submit to the City, an application for a accordance with the requirements of Section 29.06 of the land disturbing permit and an erosion control plan in City’s Erosion Control Ordinance (Ord. #560). SECTION XI. CONSTRUCTION PERMITS, ETC.: 1. The City shall, within its authority, issue such permits, adopt such resolutions, and execute such documents as may be necessary to permit Developer to construct the improvements in accordance with the plans and specifications called for by this agreement, upon Developer’s compliance with any deposit provisions or other requirements of the applicable ordinances or regulations; and the City shall cooperate with Developer in obtaining similar permits, resolutions and documents as may be necessary from other authorities having jurisdiction in the premises. 2. The City shall, as coodition of the Developer executing this agreement, make available to the Developer or its nominee SUCC~SSO~S or assigns, building permits for the construction of condominium units subject to the provision of Section XII. 0 SECTION XII. BUILDING AND OCCUPANCY PERMITS: 1. The Developer shall be allowed to construct any dwelling units after the state has approved said building plans and after obtaining a local building permit. 2. No occupancy permit will be issued for any dwelling units until the City Engineers have determined the following: A. Sewer and surface water drainage facilities, and public water facility that are required to serve each dwelling unit are in and approved. each dwelling unit. B. The condition of the roads are sufficient to service SECTION XIII. GENERAL CONDITIONS AND REGULATIONS: herein by reference, and all such provisions shall bind the All the provisions of the City-s ordinances are incorporated Parties hereto and be a part of this agreement as fully as 6 if set forth at length herein. This agreement and all work and improvements required hereunder shall be performed and carried out in strict accordance with and subject to the provisions of said ordinances. SECTION XIV. FINANCIAL GUARANTEE: Prior to execution of this contract by the City, the Developer shall file with the City a letter of credit setting forth terms and conditions approved by the City Attorney in the amount of $110,000.00 as a guarantee that the required improvements, as spelled out in Section I, Paragraphs B and D will be completed by the Developer and his subcontractors no later than twelve months (12) from the date of the agreement, and as a further guarantee that all obligations to the subcontractors for work on the development are satisfied. a The Developer, its successors, heirs and assigns shall be and are bound by the term of this Agreement, a short form of which shall be recorded pursuant to this paragraph and its terms and conditions shall be convenants running with the attached hereto and made a part hereof; if the improvements land which is legally described on Exhibit "K" which is surface water drainage, sanitary sewer, roads and streets, required by this agreement including, but not limited to, boat slips, bike path, tennis court and other similar improvemets are not made by the owners of this property as maintained in a reasonable manner, the City may specially required by the Developer's Agreement and/or are not assess andlor specially charge all of the owners of the property described on Exhibit "K" the cost of making and/or maintaining said improvements and the City, its agents, employees and/or contractors are granted and shall have the right to enter on the lands described in Exhibit "K" so as Agreement shall run with the land as a deed restriction. to make and/or maintain said improvements. This entire 9 DEVELOPE&; CITY OF HUSKEGO: Wayn Salentine Ma yo r 10 LIST OF EXRIBITS EXHIBIT A PLAN - BAY BREEZE CONDO'S - PART OF A P. U. D. EXHIBIT B SUFACE WATER DRAINAGE PLAN WITH SPECS EXHIBIT. C WATER SYSTEM WITH SPECS EXHIBIT D SANITARY SEWER SYSTEM WITH SPECS EXHIBIT E LANDSCAPING PLAN ALONG JANESVILLE RD. EXHIBIT F ROAD PLANS AND SPECS EXHIBIT G LIGHTING PLAN EXHIBIT H LOCATION - MIXED USE FACILITY EXHIBIT I SINGLE 'FAMILY HOMES - WEST END OF PROPERTY EXHIBIT J BYLAWS AND DECLARATION - BAY BREEZE EXHIBIT K LEGAL DESCRIPTION 11 and a division of Ian, SF;." nf LI;c?*nc;" b \ 5s thence North 01' 17' 1111" West along the West line of the said Southeast l/4 Section, 1713 68 feet to a point in 1.11~ center oi Janesville Road "S T.H. 24", and a poink or a curve, said point also being the place of beginning of lands hel--inafter described Road and the 21-c of said curvc, bdhosc (.cntc:l- lie5 to the Sotlcheast, hose radiuL is 11115 78 fect and whoze chord lbears North ;Id 39' 56" Cast, 68 83 feet to a poinf; chencc North 13' 116' 15" West, 581 55 feet to a Ipoirlt on the Meander Line; thence North 77 21' West iine of che said Southeast 1/11 Section; lhencc NrjrLh 65 13' 58" East along said 58" East aiong ths Meander Line of Little Mlljkego Lake, 195 21 feet to a point on the Meander Line, 652.75 feet to a point; tllcnce Noi-th 42 32' 43" East along the sJid Meander Line, 653 54 feet to a point in the NorIhwest corner of CerI:iI'ied Survey ?lap No 5140; thence South 18' 23' 117" East along the W?st line 01 sdid Certified Slurvey Map, 216.13 feet to a !point in the Southwest corner of said Certified Survey Map; thence North 39' 25' 13" East along the Souch Iille of Lake Drive, 177.09 feet tg the West line of Nuziwgo Beclch Park Addition, a subdivision cf record; thelce South 18 29' '17'' East along the West line of the said subdivibion, 20'1 IO feet tu the Northwest corncr of Lot 6, Block B of said subdivision; thence North 71' 30' 13" East alor,g the North line of Lot 6, 140.00 feet to LI point on the Uest line of Park Drive; thence South 18' 29' 117'' East along the West. 1 ine of Park Drive, 608.00 feet to the South I ine of Lot 16; thence South 62' IS' 14'' West alons the South line of Lot 18, 141.84 feet to the West line of said subdivision; thence South 18' 29' 117'' East along the West line of said subdivision, 185.64 feet to the center1 ine of Janesvi I le Road and the arc of a curve; thence South- westerly, 213 75 feet along the centerline of Janesville Road and the arc, of said curve, whose radius lies to the Northwest, whose radius is 763.80 feet and whose chosd bears West along the centerline of Janesville Road, 691.95 Leet to a point; thence North IO South 72' 03' 13.5" West, 213.05 feet to a point of tangency; thence South 80 011' 27: 21' 33" West, 173.19 fget to a point; thence South 80 04' 27" West, 84.00 feet to a point; thence Scuth 10 11' 33" East,. 8.18 Feet to a point; thence South 80° 04' 27" West, 172.80 feet to a point; thence South 10' ll'o?3" West, 165.00 feet to a point in the centerline of Jdnesville Road; thence South 80 04' 27" West along the centerline of Jancsville Road, 262.24 feet to a point of curve; thence Southwesterly, 133.7.1 feet along :he centerline OF Janesville Road and the arc of said curve, whose center lies to the South- east, whose radius is 1145.78 feet and whose chord bears Sou!h 76' 43' 50" West, 133.65 fcet to the point of beginning. way purposes. Line and the Shoreline of Little Muskego Lake are incltlded in Lhis description Commencing at the Southwest corner of Ihe Southeast 1/11 of said Section 9, running Thence rulining Southwesce.rly, 68 611 leet alang the centerline of said Janesvil le 0 0 Excepting the Southerly 60 fcet for High- All of the lands lying between the Meander Dated this 28th day of July, 1989 This instrument was drafcccl by Michael J 1.05ik, 5-1065, Job 140 88-29, SheeL 3 OF 5 BY-LAWS OF BAY BREEZE CONDOMINIUM ASSOCIATION, LTD. ARTICLE I Name and Purpose Pursuant to the Articles of Incorporation of Bay Breeze Condominium Association, Ltd., and the Condominium Declaration for BAY BREEZE CONDOMINIUM recorded in the Office of the Register of Deeds for Waukesha County, Wisconsin (hereinafter BREEZE CONDOMINIUM ASSOCIATION, LTD. (hereinafter sometimes "Declaration"), the following are adopted as the By-Laws of BAY referred to as the "Association"), which is a non-profit non-stock corporation formed and organized to serve as an association of Unit Owners who own real estate and improvements ownership, as provided in the Condominium Ownership Act under (hereinafter the "Property") under the condominium form of the laws of the State of Wisconsin and subject to the terms and conditions of the Declaration. These By-Laws shall be deemed covenants running with the land and shall be binding on the unit owners, their heirs, 0 personal representatives, successors and assigns. ARTICLE I1 Members, Voting and Meetings 2.1 Members. The rights and qualifications of the members are as follows: a. Defined. Members of the Association shall be unit owned. Every unit owner upon acquiring title to a all unit owners, and members shall have one vote for each unit under the terms of the Declaration shall automatically become a member of the Association and ownership of such unit ceases for any reason, at which shall remain a member thereof until such time as his/her time his/her membership in the Association shall automatically cease. b. One Membership and Vote Per Unit. One membership and one vote shall exist for each unit. If membership related to that unit shall be shared by such title to a unit is held by more than one person, the oGiners in the same proportionate interests and by the same type of tenancy in which the title to the unit is held. Voting rights may not be split, and shared membership interest must be voted pursuant to the designation contained in the Membership List. C. maintain a current Membership List showing the membership Membership List. The Association shall pertaining to each unit, the address to which note of the meetings of the Association shall be sent, mortgagee of the unit, if any, and the person designated to cast the one vote pertaining to such unit. Only the person so designated shall be entitled to cast a vote in person or by proxy. A voting designation may be limited in time or may be changed by notice in writing to the Secretary of the Association signed by a majority of the persons having an ownership interest in the unit. shall be appurtenant to the unit upon which it is based d. Transfer of Membership. Each membership and shall be transferred automatically upon conveyance of that unit. Membership in the Association may not be transferred, except in connection with the transfer of a unit. Upon transfer of a unit, the Association shall, as soon as possible thereafter, be given written notice of such transfer, including the name and address of the new owner, identification of unit, date of transfer, name of about the transfer which the Association may deem the person designated to vote, and any other information pertinent, and the Association shall make appropriate changes to the Membership List effective as of the date of transfer . Certificates to its members. The Association may provide Membership 2.2 Quorum and Proxies for Member's Meetings. A quorum for members' meetings shall consist of a majority of votes entitled to vote. Votes may be cast in person or by proxy in accordance with designations in the Membership List. Proxies shall be valid only for the particular meeting(s) or time period designated therein, up to a maximum of 180 days, unless appointed time of the meeting. If any meeting of members sooner revoked, and must be filed with the Secretary before the of the members who are present, either in person or by proxy, cannot be organized because a quorum is not present, a majority may adjourn the meeting from time to time until a quorum is present, without further notice. At such adjourned meeting at which a quorum shall be present or represented any business may be transacted which might have been transacted at the meeting as originally noticed. the Association present in person or by proxy at any meeting at 2.3 Act By Majority. The act of a majority of votes of -2- 0 which quorum is present shall be the act of the Association, unless provided otherwise under the Wisconsin Condominium Law. Meetings. Written notice of all meetings stating the time and 2.4 Time, Place, Notice and Calling of Members' place and the purposes for which the meeting is called shall be given by the President or Secretary, unless waived in writing by all unit owners, to each member at his address as it appears on the books of the Association and shall be mailed or personally delivered not less than ten (10) days nor more than sixty (60) days prior to the date of the meeting. Notice of meetings may be waived before or after meetings. Meetings shall be held at such time and place as may be designated by the Board of Directors. 2.5 Annual and Special Meetings. The annual meeting shall be held on the second Tuesday in November of each year other business authorized to be transacted by the members. for the purpose of electing directors and of transacting any by the President or any two members of the Board of Directors Special meetings of the members shall be held whenever called and must be called by such officers upon receipt of a written request signed by members within ten percent (10%) or more of all votes entitled to be cast. ARTICLE I11 Board of Directors 3.1 Initial Board of Directors. The initial Board of Directors shall consist of three (3) persons, appointed by Declarant, who need not be members of the Association, to serve until control of the Association passes to the unit owners pursuant to terms of the Declaration. Notwithstanding the foregoing, prior to the conveyance of 25% of the units in BAY BREEZE CONDOMINIUM, an Association meeting shall be held and unit owners other than Declarant shall elect at least 25% of units by Declarant, an Association meeting shall be held and the Board of Directors. Prior to the conveyance of 50% of the the unit owners other than Declarant shall elect at least one-third (1/3) of the Board of Directors. 3.2 Number and Qualifications of Directors. After control of the Association passes to the unit owners pursuant to terms of the Declaration, the Board of Directors shall consist of five (5) persons, to be classified with respect to the terms for which they severally hold office as set forth in paragraph 3.4 below. Each member of the Board of Directors shall be a member of the Association or, in the event that such -3- member of the Association is not a natural person, the appointee of such member of the "Association. 3.3 Powers and Duties of the Board of Directors. The of the condominium property, shall be governed by the Board of affairs of the Association, including management and operation Directors. All powers and duties as shall be necessary for the administration of the affairs of the Association shall be exercised in accordance with the provisions of the Act, the Declaration, the Articles of Incorporation, and these By-Laws. 3.4 Election and Term of Directors. At the first passes to the unit owners, the members shall elect five (5) annual meeting of the Association after Association control directors to be classified with respect to the terms for which they hold office by dividing them into two (2) classes as follows: (a) Three (3) directors whose terms will expire after one (1) year, at the next annual meeting of the Association (Class "'A!' Directors). (b) Two (2) directors whose terms will expire after two (2) years, at the second annual meeting of the Association after their election (Class "B" Directors). expire as set forth above shall be elected to hold office for a The successors to the class of directors whose terms term of two (2) years or until their successors are duly elected and qualified, or until any of said directors shall have been removed in the manner hereinafter provided, so that the term of one class of directors shall expire in each year. 3.5 Vacancies on Board. Vacancies on the Board of Directors caused by any reason other than the removal of a director by a vote of the members shall be filed by a vote of the majority of the remaining directors, even though they may constitute less than a quorum, and each person so elected shall be a director until a successor is elected at the next annual meeting of the members at which that class of directors is to be elected. 3.6 Removal of Directors. At any annual or special meeting of the membership duly called, any one or more of the directors may be removed with or without cause by a majority of the votes of the membership present or represented at such may then and there be elected to fill the vacancy thus created. meeting, providing a quorum is in attendance, and a successor -4 - the Board of Directors shall be held immediately after, and at 3.7 Annual Meeting and Notice. An annual meeting of purpose of election of officers and transacting such business the same place as, the annual meeting of the members, for the as may come before the meeting. Notice of the regular annual meeting of the Board of Directors shall not be required. 3.8 Regular Meetings and Notice. The Board of Directors may provide by resolution for regular or periodic meeetings of the Board, to be held at a fixed time and place, and upon the passage of any such resolution, such meetings shall be held at the stated time and place without the necessity of notice other than such resolution. 3.9 Special Meetings and Notice. Special meetings of the Board of Directors may be called by the President or by two (2) directors on three (3) days prior written notice to each director, given personally or by mail, which notice shall state the time , place and purpose of the meeting. 3.10 Waiver of Notice. 'Before, at or after any meeting of the Board of Directors, any director may, in writing, waive notice of such meeting and such waiver shall be deemed equivalent to the giving of such notice. Attendance by a director at any meeting of the Board shall be a waiver by him of notice of the time and place thereof. If all of the directors are present at any meeting of the Board, no notice meeting. shall be required and any business may be transacted at such 3.11 Quorum of Directors - Adjournments. At all meetings of the Board of Directors, a majority of the directors the act of the majority of the directors present at a meeting shall constitute a quorum for the transaction of business, and at which a quorum is present shall be the act of the Board of Directors. If, at any meeting of the Board of Directors, there present may adjourn the meeting from time to time without shall be less than a quorum present, the majority of those quorum is present, any business which might have been further notice. At any such adjourned meeting at which a transacted at the meeting as originally called may be transacted. 3.12 Fidelity Bonds. The Board of Directors may require that some or all officers and/or employees of the Association handling or responsible for Association's funds shall furnish adequate fidelity bonds. The premiums on any such bonds shall be paid for by the Association. -5- ARTICLE IV Officers 4.1 Designation, Election and Removal. The principal officers of the Association shall be a President, vice-president, Secretary and Treasurer, to be elected annually by the Board of Directors. Upon the affirmative vote of a majority of the members of the Board of Directors, any officer may be removed, either with or without cause, and his successor Directors, or at any special meeting called for that purpose. shall be elected at a regular meeting of the Board of Any two or more offices, except a combination of the offices of President and Secretary and a combination of the offices of President and Vice-president, may be held by the same person. among the members of the Board of Directors and shall be the 4.2 President. The President shall be selected from chief executive officer of the Association. He or she shall preside at all meetings of the Association and of the Board of Directors. He shall have the general powers and duties which are usually vested in the office of President including, but not limited to, the power to sign, together with any other or other instruments on behalf of the Association in accordance officer designated by the Board, any contracts, checks, drafts with the provisions herein. The President shall perform such other duties and have such other authority as may be delegated by the Board of Directors. 4.3 Vice-president. The Vice-president shall take the place of the President and perform his duties whenever the President shall be absent or unble to act. If both the of Directors shall appoint some other member of the Board to President and the Vice-president are unable to act, the Board act on an interim basis. The Vice-president shall also perform such other duties as shall from time to time be imposed upon him by the Board of Directors. all meetings of the Board of Directors and of the Association 4.4 Secretary. The Secretary shall keep the minutes of and shall have charge of the Association's books and records, and shall, in general, perform all duties incident to the office of the Secretary. The Secretary shall be responsible Membership Certficates for the Association. for maintaining the Membership List and the issuance of 4.5 Treasurer. The Treasurer shall have responsibility for the Association's funds and shall be responsible for keeping full and accurate accounts of all receipts and disbursements and financial records and books of account on behalf of the Association. He shall be responsible for the deposit of all monies and all valuable effects in the name, and to the credit, of the Association in such depositories as may Treasurer shall also be responsible for the billing and from time to time be designated by the Board of Directors. The collection of all common and special charges and assessments made by the Association. The Treasurer shall count votes at meetings of the Association. shall be liable to the Association for any loss or damage 4.6 Liability of Directors and Officers. No person suffered by it on account of any action taken or omitted to be taken by him as a director or officer of the Association, if skill as prudent man would have exercised or used under the such person (a) exercised and used the same degree of care and circumstances in the conduct of his own affairs, or (b) took or omitted to take such action in reliance upon advise of counsel for the Association or upon statements made or information had reasonable grounds to believe to be true. The foregoing furnished by officers or employees of the Association which he may be entitled as a matter of law. The Board of Directors may shall not be exclusive of other rights and defenses to which he provide directors' and officers' liability insurance in such amounts and with such coverage as may be determined by the Board of Directors to be necessary or advisable from time to time. 4.7 Compensation. No director or officer of the corporation shall receive any fee or other compensation for services rendered to the Association except by specific resolution for membership. ARTICLE V Declarant Control Notwithstanding any other provisions contained in these By-Laws, Declarant, its successors and assigns, shall have the right at its option to appoint and remove the members of the Board of Directors and officers of the Association and to amend the earlier of: (a) three (3) years after the first sale of a the By-Laws or rules and regulations of the Association until unit in BAY BREEZE CONDOMINIUM by Declarant, (b) thirty (30) days after the conveyance of seventy-five percent (75%) of the until such earlier time as may be determined by Declarant, common element interest to purchasers by Declarant, or (c) subject in each case to provisions of the Condominium Ownership Act of Wisconsin. Each owner of a condominium unit in BAY BREEZE CONDOMINIUM shall be deemed by acceptance of any deed to any unit to agree, approve and consent to the right of Declarant to so control the Association. ARTICLE VI Operation of the Property 6.1 The Association. The Association, acting through the Board of Directors, shall be responsible for condominium property, in accordance with the Condominium administration, maintenance, management and operation of the Ownership Act, the Declaration, the Articles of Incorporation, and these By-Laws. The Association, by resolution of the Board of Directors, shall have full power and authority to borrow money and acquire and convey property on behalf of the Association, provided that any single Association loan, acquisition, conveyance, or mortgage involving the sum of $25,000 or more, shall first be approved by the membership at annual or special meeting called for such purpose. The Association may, to the extent it deems advisable, contract for mariagement services or a managing agent with respect to the administration and operation of the condominium. 6.2 Rules and Regulations. The Association, through the Board of Directors, shall from time to time adopt rules and units and the common and limited common elements and facilities regulations governing the operation, maintenance and use of the by the unit owners and occupants. Such rules and regulations of the Association shall not be inconsistent with the terms of the Declaration or the contracts, documents, and easements referred to in the Declaration, and shall be designed to prevent unreasonable interference with the use of the respective units and the common elements and facilities by persons entitled thereto. lessees or quests, and any occupants of the units shall conform The Association members, their to and abide by all such rules and regulations. A violation of the Declaration. any such rules or regulations shall constitute a violation of The Association through its Board of Directors shall designate such means of enforcement thereof as it deems necessary and appropriate. The rules and regulations may be adopted, altered, and amended or repealed by either the members of the Association or the Board of Directors, in each case by an affirmative vote of 67% or more of the votes present or represented at a meeting at which a quorum is in attendance, provided that no rule or regulation adopted by the members shall be amended or repealed by the Board of Directors if the rule or regulation so adopted so provides. 6.3 Common Expenses. The Board of Directors shall determine the common expenses of the Association, and shall prepare an annual operating budget for the Association in order to determine the amount of the assessments payable by each unit to meet the estimated common expenses of the Association for the ensuing year. The amounts required by such budget shall be assessed against the units and allocated among the members of the Association according to their respective percentages of ownership in the common elements and facilities of the Condominium as set forth in the Declaration. The assessments shall be made on an annual basis and shall be prorated and due and payable monthly. If not paid on or before the due date, the assessment shall bear interest at the prime rate of National Bank of Milwaukee, Wisconsin as of the first day of interest determined from time to time by First Wisconsin each month, until paid in full. If delinquent for more than thirty (30) days, the Association may accelerate the annual assessment remaining unpaid with respect to such delinquent unit for purposes of collection or foreclosure action by the Association. In the event the annual budget and assessments are not determined prior to the beginning of a fiscal year of the Association, the assessment for the prior year shall remain in effect'until revised by the Board of Directors. 6.4 Operating Budget. shall provide for two funds, one of which shall be designated The annual operating budget the "operating fund" and the other the "reserve fund". The occur annually or more frequently, such as amounts required for operating fund shall be used for all common expenses which management services, security, insurance, common services and the cost of maintenance and repair of the common elements, utilities, administration, materials and supplies. The reserve fund shall be used for contingencies and periodic expenses such as painting or renovation. In the event the Association incurs extraordinary expenditures not originally included in the annual budget, then such sums as may be required in addition to the operating fund may be charged against the reserve fund, up to a maximum of 10% of the reserve fund. In the event that such funds prove inadequate to meet the necessary common expenses, or at the discretion of the Board of Directors, the directors may levy further assessment(s) against the unit owners. liens or other encumbrances levied against the entire property, The reserve fund may also be used to discharge mechanic's or against each unit, if resulting from action by the Association. The unit owner or owners responsible for any lien which is paid by the Association but not the obligation of the Association shall be specially assessed for the full amount thereof. The directors may also use the reserve fund for the maintenance and repair of any unit if such maintenance and repair, although the obligation of the unit owner, is necessary 0 to protect the common property. The full amount of the cost of any such maintenance or repair shall be specially assessed to the unit owner responsible therefor. Any charges against the reserve fund in accordance with the foregoing paragraphs which are not otherwise repaid to the fund shall be replenished by additional assessments against the unit owners in subsequent years. November 1st of each calendar year. The Board of Directors The annual budget shall be prepared and determined by shall advise all members of the Association in writing of the amount of common assessments payable on behalf of each unit by the date of the annual membership meeting and shall furnish copies of the budget on which such common assessments are based to each member. If within fifteen (15) days after the annual membership meeting a petition is presented to the Board of Directors protesting the budget, and the petition is signed by members representing more than fifty percent (50%) of the membership entitled to vote may revise the budget, dnd such revised budget and corresponding assessments shall replace for all purposes the ones previously established, provided, however, that the annual budget and assessments may not be revised downward to a point lower than the average total budget for the preceding two years and provided further, that if a budget and assessments have not been established and made for any two preceding years, then the budget and assessments may not be revised downward until two years of experience exist. 0 6.5 Default and Liens. All assessments of common expenses and special assessments until paid, together with the units on which they are assessed and on the undivided interest and actual costs of collections, constitute a lien on interest in the common elements appurtenant thereto. If a member of the Association is in default in payment of any charges or assessments for a period of more than thirty (30) may file liens therefor and bring suit for and on behalf of the days, the Board of Directors, in the name of the Association, collection of such delinquencies or to foreclose the lien Association, as representative of all members, to enforce therefor, as provided by law, and there shall be added to the amount due the costs of collection and interest, together with attorney fees. Liens shall be signed and verified on behalf of the Association by any officer of the Association. The owners of a unit against which a lien has been filed by the Association shall not be entitled to vote at Association meetings until the lien has been paid in full. -10- ARTICLE VI1 Repairs and Maintenance 7.1 Individual Units. Each unit owner, at his sole unit and all of its equipment, fixtures and appurtenances in expense, shall be responsible for keeping the interior of his condition. Each unit owner must perform properly or cause to good order, condition and repair and in a clean and sanitary be performed all maintenance and repair work within his own unit which if omitted would affect the project in its entirety or in a portion belonging to other owners, and such owner shall be personally liable to the Association or to adjoining unit owners as the case may be, for any damages caused by his failure to do so. Without in any way limiting the foregoing, in addition to decorating and keeping the interior of the unit maintenance, repair or replacement of any plumbing fixtures, in good repair, each unit owner shall be responsible for the doors and windows (including interior washing and replacement of broken glass), (screens and screening,) lighting fixtures, refrigerators, ranges, heating and air-conditioning equipment, dishwashers, disposals, laundry equipment such as washers and dryers, interior electrical wiring and fixtures, or other equipment which may be in, or connect with the unit or the common elements appurtenant to the unit. 7.2 Common Elements and Facilities. The Association common elements and facilities and shall cause the same to be shall be responsible for the management and control of the maintained, repaired and kept in good, clean, attractive and sanitary condition, order and repair, except to the extent individual unit owners are responsible therefor as provided hereinafter with respect to common elements. Without in any way limiting the foregoing, the Association shall be responsible, at Association expense (unless necessitated by the negligence or misuse of a unit owner, in which case such expense shall be charged and specially assessed to such unit owner), for accomplishment of the following specific items of maintenance and repair with respect to the common elements: ance, and decorating of the building exterior, walls and - All repairing, restoration, painting, mainten- roofs, and including exterior doors, windows and screens, but not including replacement of glass (or screening) in the residential units. - All maintenance, repair, painting, cleaning and decorating of common areas and fixtures including entryways and parking areas. -11- watering, weed control, tree pruning, grass cutting, - Lawn care, including landscaping, fertilizing, edging and trimming, as required. - Repair, roadways, roadbeds, sanitary and storm sewer system, replacement or restoration of sidewalks, part of the Condominium property maintained by driveways, retaining walls and parking areas which are a Association. walks, drives and parking areas, and all non-dedicated - Snow and ice removal and salting and cleaning roads within the condominium property excluding an 8 foot wide bike path running parallel to Janesville Road and is under the control and direction of the City of Muskego. - General repair, maintenance and replacement of exterior fixtures including exterior lighting fixtures condominium project and roadway signs therein. and associated equipment, entry signs into the - General repair, maintenance and replacement of common fixtures and equipment such as mailboxes, and associated fixtures and equipment. and materials required to accomplish the foregoing. - Provision, maintenance and storage of equipment - General repair, maintenance and replacement of conduits not dedicated or part of the streets of the all sewer and water mains and connecting pipes and municipality. 7.4 Association Services. The Association may provide with respect to individual units that the Association is able any service or maintenance requested by a unit owner or owners and willing to provide or perform, and shall specially assess such requesting owner or owners therefor. ARTICLE VI11 Duties and Obligations of Unit Owners 8.1 Rules and Regulations. The units and the common elements and facilities and limited common elements (hereinafter in this paragraph sometimes collectively referred the Declaration, the Articles of Incorporation, these By-Laws, to as "commons") shall be occupied and used in accordance with and the rules and regulations adopted by the Association from time to time, including the following: -12- (a) Use. No unit owner shall occupy or use his unit or permit the same or any part thereof to be occupied or used for any purpose other than as a private residence for the owner, the owner's family, or the owner's lessees or guests. No trade or business shall be conducted on the condominium property or from any unit without the prior written approval of the Board of Directors of the Association and in full compliance with all applicable law. (b) Occupancy. Units in BAY BREEZE CONDOMINIUM, persons for a period of less than 30 consecutive days, shall not be used or occupied by any person or group of except without prior written approval of the Association. The intent of this provision is to prohibit business, transient or similar uses of the units which wou.ld involve multiple occupanies by different persons or groups of persons. (c) Occupants. There shall be no more than two (2) people per bedroom residing in the condominium residential unit. (d) Leases. Owners of units in BAY BREEZE CONDOMINIUM may lease their units on whatever terms and conditions they may wish, provided that in each instance the following terms and conditions are met: and the tenant. - The lease must be in writing, signed by the owner - The lease must be for a period of no less than ninety (90) consecutive days. to abide by the terms and conditions of the Declaration, - The lease must specifically obligate the tenant these By-Laws, and all rules and regulations of the Association. owner must give the Association notice of the name and - Prior to the beginning of the lease term, the permanent address of the tenant, and the term of the lease. amount of money with the Association equal to twice the - Any unit owner leasing his unit shall deposit an monthly assessment, based upon the month immediately This deposit shall be retained by the Association to be preceding the first month of occupancy by the tenant. -13- used to offset any damages caused to the common areas by said tenant. Upon the expiration or termination of said tenancy, the Association shall ascertain what, if any, damages are to be deducted from said deposit, and shall return only eighty percent (80%) of the original deposit, plus any damages levied against said deposit. In the event the damages levied against the 80% portion exceed unit owner who created said lease, and, if remain unpaid, that portion, those damages shall be assessed against the be for the Association. Twenty percent (20%) of said shall become a valid lien on said unit, which lien shall deposit shall be retained by the Association to cover the expenses incurred in handling this duty. (e) Animals and Poultry. No animals, livestock or poultry of any kind shall be raised, bred or kept in any unit or in the commons, except that dogs, cats, birds and fish may be kept as household pets by unit owners, provided they are not kept or maintained for commercial or breeding purposes, and are kept subject to rules and regulations which may be adopted by the Association regarding same. (f) Pet Rules and Regulations. be permitted if in excess of 26 inches in height or 25 (1) Size and Weight. No cat or dog shall pounds in weight. (2) Leashes. Dogs and cats shall not be permitted on the common elements unless on a leash and within the control of a person. (3) Waste. Permit holder shall be responsible for the proper disposal of their pet's waste, without regard to their control over the pet at the time or location of the waste. (4) Exercise. If the Board designates an area of the common elements as a "pets area", then pets shall be exercised only within this area. Such designation shall not operate to diminish the permit holder's responsibility under (3) hereof. (5) Behavior. Permit holders are respon- sible for the behavior of their pet and any handler thereof. -14- ../ (6) Housing. Pets shall be housed exclus- ively within units in which pets are permitted under the Declaration. (7) City Licenses. Pets shall be licensed by the City if required, and a copy of such license shall be furnished to the Association upon permit application. (8) Noises. A11 pets shall be maintained in a manner as to keep any noise at a minimum level which, in any event, must not be an unreasonable annoyance to the other condominium residents. unit are allowed. Each unit owner or lessee shall be (9) Limit. No more than two (2) pets per assessed a $5.00 per month charge per pet for each month, or part of the month, the dog or cat is kept in the unit. after the occupancy of. any unit, the owner of the unit (g) Window Treatments. Within sixty (60) days shall provide appropriate window treatments, so that all windows within the unit open to exterior view are either uncovered or are treared with draperies properly hung on . drapery rods, or window blinds. uniformity of exterior appearance, the Association may For purpose of from time to time determine and specify the type, quality will be visible from the exterior of the building. and appearance of draperies and window treatments which (h) Obstructions. There shall be no obstruction of the commons. (i) Increase of Insurance Rates. Nothing shall be done or kept in any unit or in the commons which will the prior consent of the Association. increase the rate of insurance on the commons, without No unit owner shall permit anything to be done or kept in his unit or in the commons which will result in the cancellation of which would be in violation of any law or ordinance. No insurance on any unit or any part of the commons, or waste will be commited in the commons. (j) Signs. NO sign of any kind shall be dis- played to the public view on or from any unit or the commons, without the prior consent of the Association, excluding the placement of "unit for sale" sign placed on the interior of any unit window. (k) Noxious Activity. NO noxious or offensive activity shall be carried on in any units or in the commons, nor shall anything be done therein which may be or become an annoyance or nuisance to others. -15- (1) Alteration, Construction or Removal. Nothing shall be altered or constructed in or removed from the common elements and facilities, except upon the written consent of the Association. and those which may be hereafter adopted by the (m) Conflict. The above rules and regulations, Association, are in addition to the Declaration, and the documents, contracts, declarations, and easements set forth in the Declaration, and in the event of a conflict, easements set forth and referenced therein shall govern. the Declaration and contracts, declarations, and (n) Enforcement. The foregoing rules and regulations and other rules and regulations adopted by the Association shall be enforced by such means as the Association deems necessary and appropriate, including recourse to civil authorities, court action if necessary, be charged and assessed against the owners of units who and monetary fines of not less than $50 per violation to violate or whose guest or unit occupants violate such rules and regulations. Such fines shall be charged and assessed against the subject unit and may be enforced and collected as an assessment for common expenses, including the foreclosure of a lien therefor. store any of the following items on any portion of the (0) Use of Common Areas. No owner may keep or common elements (for the purposes of this section, driveways will be included as common elements). (1) Trucks over 6,000 pounds gross vehicle weight (gvw). (2) Junked, inoperative or unlicensed vehicles shall not be permitted anywhere on the common elements. (3) Boats, and any type of trailer, stored on driveways for more than 24 hours. (p) Temporary structures, such as sheds or other storage facilities, are prohibited on common elements. (q) Patios, terraces or balconies shall not be used for any storage of any kind, including, but not limited to, the storage of motorcycles, baby carriages, bicycles, or wagons, nor shall patios, terraces or balconies be used for the drying or airing of laundry, -16- carpets, rugs, or clothing. Furthermore, no grills shall be used or stored on patios, terraces or balconies, unless they are of a type using a cover in place while in use. No clotheslines shall be hung in common elements. (r) No vehicle shall occupy, park upon or otherwise block access to or exit from another unit or the approach thereto. shall be permitted anywhere on the condominium elements. (s) No maintenance or lubrication of any vehicle ARTICLE IX General 9.1 Fiscal Year. The fiscal year of the Association of December in each year, unless a different fiscal year is shall begin on the first day of January and end on the last day elected on the first annual tax return filed by the Association'. shall be P.O. Box 425, Muskeqo, Wisconsin 53150. 9.2 Address. The mailing address of the Association 9.3 Seal. corporate seal which shall be circular in form and shall have The Board of Directors shall provide a inscribed thereon the name of the corporation and the words "Corporate Seal, Wisconsin". ARTICLE X Amendments 10.1 By Members. These By-Laws may be altered, amended or repealed and new By-Laws may be adopted by the members, at unit owners having sixty-seven percent (67%) or more of the any meeting called for such purpose, by the affirmative vote of votes in the Association. shall alter or abrogate the rights of Declarant as contained in 10.2 Rights of Declarant. No amendment of these By-Laws these By-Laws. ARTICLE XI Miscellaneous 11.1 Record of Ownership. Every unit owner shall promptly cause to be duly recorded or filed of record the deed, -17- c assignment or other conveyance to him of such unit or other evidence of his title thereto, and shall present such evidence of his title and the date of acquiring title to the Board of Directors, and the Secretary shall maintain all such information in the Membership List of the Association. 11.2 Mortgages. Any unit owner who mortgages his unit or any interest therein shall notify the Board of Directors of the name and address of his mortgagee, and also of any release of such mortgage, and the Secretary shall maintain all such information in the Membership List of the Association. or Treasurer of the Association, at the request of any 11.3 Statement of Assessments. The Board of Directors mortgagee or any prospective purchaser of any unit or interest therein, shall provide a statement to such person as to the amount of any assessments against such unit then due and unpaid, within ten (10) business days after such request is received. 11.4 Indemity of Officers and Directors. Every perion who is or was a director or an officer of the Association (together with the heirs, executors and administrators of such person) shall be indemnified by the Association against all attorneys' fees) asserted against, incurrred by or imposed upon loss, costs, damages and expenses (including reasonable or proceeding, including criminal proceedings, to which he is him in connection with or resulting from any claim action, suit made or threatened to be made a party by reason of his being or having been such director or officer, except as to matters as proceeding to be liable for gross negligence or willful to which he shall be finally adjudged in such action, suit or misconduct. In the event of a settlement, indemnification shall be provided only in connection with such matters covered by the settlement as to which the Association is advised by counsel that the person to be indemnified has not been guilty of gross negligence or willful misconduct in the performance of his duty as such director or officer in relation to the matter involved. The Association, by its Board of Directors, may indemnify in like manner, or with any limitations, any employee or former employee of the Association with respect to any action taken or not taken in his capacity as such employee. The foregoing rights of indemnification shall be in addition to all rights to which officers, directors or employees may be entitled as a matter of law. or suffered by the Association by reason or or in connection All liability, loss, damage, costs and expense incurred with the foregoing indemnification provisions shall be treated and handled by the Association as common expenses: provided, -18- however, that nothing in this Article XI contained shall be deemed to obligate the Association to indemnify any member or director or officer of the Association with respect to any owner of a condominium unit who is or has been an employee, duties or obligations assumed or liabilities incurred by him as a unit owner under and by virtue of the Declaration, Wisconsin's Condominium Ownership Act, the Articles and By-Laws of the Association, or a member of the Association. 11.5 Subordination. These By-Laws are subordinate and subject to all provisions of the Declaration and any amendments thereto and the Condominium Ownership Act under the laws of the State of Wisconsin, which shall control in case of any conflict. All terms herein (except where clearly repugnant to the context) shall have the same meanings as in the Declaration or said Condominium Ownership Act. By-Laws shall be held invalid, such invalidity shall not render 11.6 Interpretation. In case any provision of these invalid any other provision hereof which can be given effect. Nothing in these By-Laws shall ke deemed or construed to authorize the Association or Board of Directors to conduct or engage in any active business for profit on behalf of any or all of the unit owners. 0 11.7 The Condominium Association may charge a fee to a unit owner upon the sale of a condominium residential unit. This fee will be determined from time to time by the Board of Directors of the Condominium Association. The purpose of this in transference of the records of condominium residential unit fee is to offset costs incurred by the Condominium Association owners. the context shall otherwise provide, the singular number shall 11.8 Number and Gender. Whenever used herein, unless include the plural, the plural shall include the singular, and the use of any gender shall include all genders. -19- CONDOMINIUM DECLARATION BAY BREEZE CONDOMINIUM FOR THIS DECLARATION is made pursuant to Condominium Ownership Act of the State of Wisconsin, Chapter 703 of the Wisconsin Statutes (hereinafter sometimes referred to as the "Act") this Wisconsin Corporation (hereinafter referred to as "Declarant"). ,a day of , 198 bY - 1. STATEMENT OF DECLARATION. Declaration for Bay Breeze Condominium. This Declaration shall The purpose of this Declaration is to state the Condominium to the condominum form of ownership in the manner provided by the submit the lands hereinafter described to be constructed thereon Act and this Declaration. Declarant hereby declares that as of the date hereof it is the sole owner of the real property described in Section 3 hereof, together with all buildings to be constructed thereon (hereinafter referred to as "the property") which is hereby submitted to the condominium form of ownership as provided in the Act and this Declaration, and which property shall be held, conveyed, devised, leased, encumbered, used, improved, and in all respects otherwise affected subject to the provisions, conditions, covenants, restrictions and easements of this Declaration and the Act. All provisions hereof shall be deemed to run with the land and shall constitute benefits and burdens to the Declarant, its successors and assigns, and to all parties hereafter having any interest in the property. 0 2. NAME AND ADDRESS. The aforesaid real estate and all buildings and improvements thereon shall be known as BAY BREEZE CONDOMINIUM. The address of the Condominium is , Wisconsin. 3. LEGAL DESCRIPTION. Condominium Plat attached hereto, is hereby subjected to the The following described real estate, also described in the provisions of this Declaration: 4. DEFINITION AND DESCRIPTION OF UNITS. 4.1 Number. There shall be seventy-four (74) residential condominium units in BAY BREEZE CONDOMINIUM. 4.2 Definition. A unit is that part of a building comprised of one or more cubicles of air at one or more levels of in the development intended for individual, private use, space, having outer boundaries formed by the interior surfaces of the perimeter walls, ceilings, floors, windows, window frames, doors and door frames of the units, as said boundaries are shown in the Condominium Plat attached hereto, together with all fixtures and improvements therein contained. 4.3 Identification. The building shall be designated by address and the units within designated by numerals; the numerals indicate the floor in the designated building in whjch the unit is located. The unit designations and locations and floor plans for the various unit types are as set dimensions and floor area of each unit, number of rooms, forth in the Condominium Plat attached hereto. The approximate further details identifying and describing the units are as set immediate common elements to which the units have access, and forth in the Condominium Plat. 5. DESCRIPTION, LOCATION AND TYPE OF BUILDINGS. The buildings on the real estate described in Section 3 principally of wood and use of concrete, and if completely built above are planned to be two stories in height, constructed will contain 74 residential condominium units. The buildings will be located on the real estate as indicated in the Condominium Plat. The 74 residential condominium units together wit.h the assigned garages will not be built at the same time. It is the intent of the Declarant to build the residential condominium units and assigned garages in stages as shown in said Condominium Plat. The number and stages and start up dates for construction of the residential condominium units and assigned garages are within the sole discretion of the Declarant. Declarant reserves the right to change, without t.he dimensions and construction details of the buildings, units and approval of the Condominium Association, the layout, location, constructed, provided t.hat such chanaes shall not substantially common elements shewn on the Condominium Plat which are not yet alter the nature and quality of the buildinas and units, and subject to the following. Notwithstanding the above, Declarant reserves tbe right to change the number, size and dimension of t.he buildings in which condominium units are to be constructed from 6 unit and 4 unit buildings, as presently shown on the Condominium Plat, to smaller -2- residential building sizes, including 2 and 1 unit buildings, at its sole discretion. Such changes in the size of a building and number of units Muskego and further providing that any change in size or number in a building is conditioned upon the approval by the City of of buildings will not change the total number of units to be built within this condominium development. In the event any changes are approved by the City of Muskego, the Declarant shall record, from time to time, an updated plat of this condominium development showing the changes, including location, type, size and dimension of said buildings with the appropriate designations thereof. 6. COMMON ELEMENTS AND FACILITIES. 6.1 Description. The common elements and facilities shall consist of all of BAY BREEZE CONDOMINIUM, fixtures therein, as defined hereunder and shall include, without improvements and appurtenances, except the individual units and buildings' exterior, including garage exteriors; perimeter and limitation, the land on which the buildings are located the bearing walls; guest surface parking; building roofs; foundations; pipes; ducts; electrical wiring and conduits; common utility services; public utility lines; outside walls; beams and the condominium property and private roadways, water and sewer supports; and the walks; driveways, and landscaping comprising mains and laterals and boat docks as set forth in the condominium plat. 6.2 Owner's Right to Ingress and Egress and Easement of Enjoyment. Each owner shall have the right to necessary for access to his unit and a right of enjoyment in and ingress and egress over, upon and across the common area to the common areas. exclusive easement to the space between the interior and exterior 6.3 Easements. Each unit owner shall have a valid, walls of his unit for purposes of adding additional utility outlets, wall hangings, erection of non-bearing partition walls, and the like, where space between walls may be necessary for such uses, provided that the unit owner shall do nothing to impair the structural integrity of any of the buildings, and provided further that the common elements and facilities be restored to their former condition by the unit owner at his sole expense upon completion or termination of the use requiring the easement. Easements are hereby granted and declared for the benefit of the unit owners and the Association of Unit Owners (hereinafter described) for the installation, maintenance and repair of common utility services in and any part of the common elements or units -3- 7. LIMITED COMMON ELEMENTS. 7.1 Description. A portion of the common elements and facilities are designated as "limited common elements" as shown in the Condominium Plat. Such limited common elements shall be reserved for the exclusive use of the owner or occupant for the unit to which they are appurtenant, to the exclusion of consist of two (2) car parking garages which are assigned, all all other units in the condominium. Such limited common elements decks adjoining units, and such other limited common elements as may be identified in the Condominium Plat. subject to assignment, but shall be maintained by the Association 7.2 Parking. Outdoor parking spaces shall not be as guest parking under such rules and regulations as the Association may determine from time to time. The respective parking spaces are shown in the Condominium Plat attached hereto. 7.3 Assignment by Declarant. The garages shown as limited common elements in the Condominium Plat are identified as units in BAY BREEZE CONDOMINIUM it shall assign such garages to "Assigned by Declarant". As the Declarant sells condominium buyers of condominium units by written assignment duly recorded as part of the condominium deed transferring title to condominium units. Upon the sale of all units in BAY BREEZE CONDOMINIUM and occur, Declarant shall re-record the Condominium Plat showing the the assignment of all garages by Declarant, whichever shall last condominum unit to which each garage has been assigned as part of the Condominium Plat. All garage assignments made by Declarant shall be and constitute an assignmen't of limited common elements appurtenant to the unit identified by Declarant in the assignment. 0 assign his rights to use a garage to any other unit owner in BAY 7.4 Assignment by Unit Owners. Any unit owner may BREEZE CONDOMINIUM. The use of those so assigned shall thereupon become appurtenant to the unit owned by the assignee. Such Association, and shall be recorded with the Register of Deeds of assignment shall be upon a form approved for use by the Waukesha County. The assignment shall be subject to the rights of any existing mortgage with respect to the said limited common unit owner shall have no further right to use the limited common element so assigned. After such an assignment, the assigning thereafter be appurtenant to the unit owned by the assignee, as element so assigned, and the limited common element shall specified in the assignment form, until further assignment. The use of limited common elements may be assigned only to owners of units in BAY BREEZE CONDOMINIUM. elements shall be governed by the By-Laws of, and such rules and 7.5 Use. The manner of use of the limited common regulations as may be established by the Association of Unit -4- Owners, and no unit owner shall alter, remove, repair, paint, decorate, landscape or adorn any limited common element, or permit such, in any manner contrary to such By-Laws and rules and regulations. No major or structural changes or alterations shall be made by any unit owner to any of the limited common elements without the prior written approval of the Association, which Association deems appropriate. approval may be given upon such terms and conditions as the 8. PERCENTAGE OF OWNERSHIP IN COMMON ELEMENTS AND FACILITIES AND LIMITED COMMON ELEMENTS. common elements and facilities and limited common elements as a Each unit owner shall own an undivided interest in the tenant in common with all other unit owners and, except as otherwise limited in this Declaration, shall have the right to use and occupy the common elements and facilities and limited common elements for all purposes incident to the use and occupancy of his unit as a place of residence, and such other incidental uses permitted by this Declaration, which rights shall be appurtenant to and run with his unit. The percentage for such undivided interest in the common elements and facilities and limited common elements relating to each unit and its owner for all purposes including ownership and proportionate payment of common expenses, but exclusive of voting, shall be as follows: 0 Building: Address Unit: % of Interest Unit: -5- % of Interest 9. ASSOCIATION OF UNIT OWNERS. 9.1 Membership, Duties and Obligations. All unit owners shall be entitled and required to be a member of an association of unit owners known as Bay Breeze Condominium Association, Inc. (herein "Association") which shall be responsible for carrying out the purposes of this Declaration, elements and facilities and limited common elements. including the exclusive management and control of the common Such Association shall be incorporated as a non-profit corporation under the laws of the State of Wisconsin. Each unit owner and the occupants of the units shall abide by and be subject to all of the rules, regulations, duties and obligations of this Declaration and the By-Laws and rules and regulations of the Association, including the sharing of common expenses as described therein. 9.2 Voting Rights. Each unit shall be entitled to one (1) vote at meetings of the Association. Only one membership and one vote shall exist for each unit; if title to a unit is held by more than one person, the membership related to that unit interests and by the same type of tenancy in which title to the shall be shared by such owners in the same proportionate unit is held. Voting rights may not be split, and shared membership interests must be voted pursuant to the designation contained in the Membership List maintained pursuant to the By-Laws. e The respective rights, qualifications and obligations of the members shall be set forth in the By-Laws of the Association. 9.3 Control. Notwithstanding any other provisions herein contained, Declarant, its successors and assigns, shall have the right at its option to appoint and remove the members of the Board of Directors and officers of the Association and to until the earlier of: (a) three (3) years from the date of first amend the By-Laws or rules and regulations of the Association, sale of a unit by Declarant, (b) thirty (30) days after the conveyance of seventy-five percent (75%) of the common element interest to purchasers by Declarant, or (c) until such earlier time as may be determined by Declarant, subject in each case to provisions of the Act. Each owner of a condominium unit in BAY BREEZE CONDOMINIUM shall be deemed by acceptance of any deed to any unit to agree, approve, and consent to the right of Declarant to so control the Association. 9.4 Association Personnel. The Association may obtain and pay for the service of any person or entity to manage its affairs to the extent it deems advisable, and may hire such other personnel as it shall determine to be necessary or advisable for the proper operation of the condominium. The 0 -6- Association may contract for common services or utilities as may be required for each unit. 10. RESIDENTIAL PURPOSE. The buildings and the units therein contained are intended for and restricted exclusively to residential use as governed by Association. the terms and conditions contained herein and the By-Laws of the reserves the right, at its option and in its sole discretion, to Notwithstanding the foregoing, the Declarant use and occupy various units, selected by the Declarant, as "model" units and to use a unit as a sales office, until such time as all 74 units in BAY BREEZE CONDOMINIUM have been completed and sold by Declarant, or until such earlier time as may be determined by Declarant. 11. REPAIRS AND MAINTENANCE. 11.1 Individual Units. Each unit owner shall be responsible for keeping the interior of his unit and all of its equipment, fixtures and appurtenances in good order, condition and repair and in a clean and sanitary condition, and shall be which may at any time be necessary to maintain the good responsible for interior decorating, painting and varnishing appearance and condition of his/her unit, all as is more fully set forth in the By-Laws of the Association. Without in any way limiting the foregoing, in addition to decorating and keeping the responsible for the maintenance, repair or replacement of any interior of the unit in good repair, each unit owner shall be plumbing fixtures, doors and windows (including interior washing and replacement of broken glass), screens and screening, lighting fixtures, refrigerators, ranges, heating and air conditioning equipment, dishwashers, disposals, laundry equipment such as washers and dryers, interior electrical wiring and fixtures, or other equipment which may be in, or connect with, the unit or the limited common elements appurtenant to the unit. 11.2 Common Elements and Facilities. The Association shall be responsible for the management and control of the common elements and facilities and limited common elements, and shall cause the same to be kept in good, clean, attractive and sanitary condition, order and repair, as provided in the By-Laws of the Association. Without in any way limiting the foregoing, this shall include all repair and maintenance Of the building and exterior walls and roofs, parking, upkeep and maintenance of private roadways, water, sanitary and storm sewer mains and laterals, walks, drives and landscaping. All expenses of maintenance of the common elements and facilities shall be a common expense of the Association. The Association shall not be the garages. All expenses of repair and maintenance of the responsible for the repair and maintenance of the interior Of -7 - garage interiors shall be borne by the unit owners or their assignees. keep the limited common elements appurtenant to his unit, as 11.3 Limited Common Elements. Each unit owner shall defined in Section 7 hereof and as described in the Condominium Plat, in a good, clean, sanitary and attractive condition. Owner. A unit owner shall not, without first obtaining the 11.4 Prohibition Against Structural Changes by written consent of the Board of Directors of the Association, make or permit to be made any structural alterations, or major changes or improvements to his unit, or in or to the exterior of the building in which his unit is located or any common or limited common elements and facilities make or install any owner of other units. A unit owner shall not perform, or allow improvements or equipment which may affect other units or the to be performed, any act or which will impair the structural soundness or integrity of any building, or the safety of property, or impair any easement or hereditament, without the prior written consent of the Association. 11.5 Entry for Repairs. The Association may enter any unit at reasonable terms and under reasonable conditions when necessary in connection with any maintenance, construction or repair of public utilities or for any other matters for which the Association is responsible. Such entry shall be made with prior notice to the owners, except in the case of an emergency when with little inconvenience to the owners as practical, and any injury or property damage will result from delayed entry, and damage caused thereby shall be repaired by the Association and treated as a common expense except as allocable to an individual unit or units in the discretion of the Board of Directors. exclusive right to care, paint, repaint, tile, panel, paper or 11.6 Decorating. Each unit owner shall have the otherwise refurbish and decorate the interior surfaces of the walls, ceilings, floors and doors forming the boundaries of his unit and all walls, ceilings, floors and doors within such boundaries, and to erect partition walls of a non-structural nature within his unit. 12. DESTRUCTION AND RECONSTRUCTION. any building, or any other part of the common elements, such In the event of a partial or total damage or destruction of shall be repaired and rebuilt as soon as practicable and originally built, so as to be compatible with the remainder of substantially to the same design, plan and specifications as damage or destruction the repair or reconstruction of which will the condominium, unless within ninety (901 days of the date of exceed the sum of $500,000.00 by affirmative vote and written -a- consent of at least seventy-five percent (75%) of the votes in the Association, it is determined not to rebuild or repair. In such event, the property shall be subject to an action for Wisconsin Statutes. partition and shall be partitioned pursuant to Sec. 703.18 of the On reconstruction, the design, plan and specifications of the building or units may vary from that of the original upon approval of the Association provided, however, that the number of square feet of any unit may not vary by more than five percent (5%) from the number of square feet for such unit as originally constructed, and the location of the same shall be substantially the same as prior to damage or destruction. The proceeds of any insurance provided by the Association and collected for such damage or destruction shall be available to the Association for the purpose of repair or reconstruction, as provided in Section 15 hereof. The Association shall have the right to levy assessments as a common expense against all unit owners in the event that the proceeds of any insurance collected are insufficient to pay the estimated or actual costs of repair or reconstruction. 13. CONDEMNATION. 13.1 Definition. The phrases "taking" and "condemnation" include any sale and settlement of any pending or threatened condemnation proceeding. the right of appeal of the necessity of the taking and of the 13.2 Right of Appeal. Each unit owner shall have condemnation award with respect to its unit. The Association shall have the exclusive right of appeal of the necessity of the taking and of the condemnation award with respect to the common binding upon all the owners affected thereby. elements. An appeal by the Association or such owner shall be 13.3 Allocation of Award. Any damages for a taking shall be awarded as follows: 13.3 (a) entire award for the taking of all or part of its respective unit Each unit owner is entitled to the and for consequential damages to its unit. 13.3 (b) undertaking as below, any award for the taking of common elements In the event no reconstruction is shall be allocated to all unit owners in proportion to their respective interests. 0 13.4 Reconstruction After Taking. Following the taking of all or a part of the common elements, the Association common elements to an architectural whole compatible with the shall promptly undertake to restore the improvements of the -9- existing structure. Any costs of such restoration in excess of the condemnation award shall be a common expense payable in accordance with these Articles. If the taking diminishes the condominium to the extent that reconstruction or restoration is not practical in the opinion of the Association, the entire condominium shall be subject to an action for partition upon obtaining the written consent of the unit owners having seventy-five percent (75%) or more of the vote. In the case of with any net proceeds of the award for taking, shall be partition, the net proceeds of sale of the condominium, together considered as one fund and shall be divided among all unit owners in accordance with these Articles. obtained within thirty (30) days of the decision of the If such consent is not Association, then reconstruction shall take place in accordance with these Articles. 13.5 Adjustments of Interests and Votes. The interest and the sharing of common expense under Article 9.1 hereof, and the votes under Article 9.2 hereof, appertaining to the remaining units shall be adjusted after the taking of a unit in the same manner as set forth in these Articles. A partial taking of a unit shall not include the interest or the votes appurtenant to the unit. recordation of an amendment hereto which discloses the nature of The Association shall cause the the taking and the adjustments hereunder. 14. INSURANCE. The Board of Directors of the Association shall provide and maintain fire and broad form extended coverage insurance on the buildings and any other common elements and any portion thereof in an amount not less than the full replacement value thereof of the Association as trustee for each of the unit owners and from time to time. Such insurance shall be obtained in the name their respective mortgagees in the percentages established in this Declaration, as their interests may appear. Premiums shall be a common expense. To the extent possible, the insurance shall provide that the insurer waives its rights of subrogation as to any claim against unit owners, the Association, and their respective servants, agents and guests, and that the insurance cannot be cancelled, invalidated nor suspended on account of conduct of any one or more unit owners, or the Association, or their servants, agents and guests, without thirty (30) days prior written notice to the Association giving it opportunity to cure the defect within that time. The amount of protection and the Directors at least annually and the amount of coverage may be types of hazards to be covered shall be reviewed by the Board of increased or decreased at any time as deemed necessary as determined by the Board of Directors to conform to the requirements of full insurable value. -10- equal to the maximum insurable replacement value, with an "agreed The Association insurance shall be in an amount, at least, amount" and a "Condominium replacement cost" endorsement, without deduction or allowance for depreciation, which amount shall be examined periodically. Such insurance shall afford protection against loss or damage by fire and such hazards covered by a standard extended coverage endorsement and such other risks or hazards as, from time to time, shall be customarily covered with respect to buildings similar in construction, location and use. In the event of partial or total destruction of the building or other common elements and the repair or reconstruction of the same in accordance with the Section 14 hereof, the proceeds of such insurance shall be paid to the Association as trustee to be applied to the cost thereof. If it is determined not to reconstruct or repair, then the insurance proceeds together with the net proceeds of sale of the property shall be distributed to the unit owners and their mortgagees, if provided by the Act. any, as their respective interests may appear, in the manner for the Association and the unit owner's individual unit, the If insurance coverage is available to combine protection Board of Directors is hereby given discretionary power to negotiate such combination of insurance protection on an equitable cost-sharing basis under which the unit owner would be assessed individually for the amount of insurance which he directs the Board of Directors to include in such policies for his additional protection. Copies of all such policies shall be provided to each mortgagee. Nothing contained in this paragraph shall be deemed to prohibit any unit owner, at his own expense, to provide any additional insurance coverage on his improvements or on his unit which will not duplicate any insurance provided by the Association of Unit Owners. insurance covering the common elements and facilities and the The Board of Directors shall also provide public liability limited common elements with respect to all claims commonly discretion of the Board of Directors from time to time. The insured against in such amounts as may be determined at the Board of Directors shall also provide workman's compensation insurance, directors' and officers' liability insurance and with such coverage as is determined by the Board of Directors to fidelity bonds on such officers and employees in such amounts and be necessary or advisable from time to time. obtained by the Association shall be a common expense of the All premiums for Association insurance and other insurance condominium, except that any increase in the rating or premium charue for any such insurance caused by the character of the use of any unit shall be an expense solely for such unit owner. A -11- complete insurance appraisal of each building on the condominium shall be made at least once every three (3) years. 15. LIABILITY FOR COMMON EXPENSES. repair, maintenance, cleaning, and other expenses of the common The costs of administration of the Association, insurance, elements and facilities and limited common elements, including common services provided to the unit owners such as water, security, trash removal, snow removal, roadways, mains and lzteral maintenance and all other expenses of the property, shall be paid for by the Association. The Association shall make common expenses in accordance wit.h the percentage of the assessments against the unit owners and the unit owners for such undivided interest in the common and limited common elements and By-Laws of the Association. No unit owner may exempt himself or facilities relating to each unit, in the manner provided in the common expenses by waiver of the use or enjoyment or any of the his unit ownership from liability for his contribution toward the common or limited common elements and facilities or services or .by abandonment of his unit and no conveyance shall relieve the unit owner-grantor or his unit of such liability, and he shall be jointly, severally and personally liable along with his grantee in any such conveyance for the common expenses incurred up to the date of sale, until all expenses charged to his unit have been paid. 0 All assessments, when due, shall immediately become a personal debt of the unit owner and also a lien, until paid, against the unit to which charged, as provided in the Act. Assessments shall be made against the uni.t owners and the units at the beginninq of each fiscal year of the Association to meet year; however, if prorated and paid monthly, the assessments estimated common expenses of the Association for the ensuinq payment dates. In the event of deliquency in payment, the shall not be considered due until the respective installment Association may accelerate annual assessments remaining unpaid with respect to such delinquent unit for purposes of collection or foreclosure action by the Association. 16. PARTITION OF COMMON ELEMENTS PROHIBITED. There shall be no partition of the common elements and facilities and limited common elements through judicial proceedings or otherwise, except as otherwise provided in this Declaraticn, until this Declaration is terminated and the property is withdrawn from its terms or flom the terms cf t.he app1icabl.e statr!tec regarding unit ownership or condominium ownership; provided, however, that if any unit shall be owned by nothing contained herein shall be deemed to prohibit a voluntary two or more co-owners as tenants in common or as joint tenants, 0 -12- or judicial partition of said single unit as between such co-owners. No unit may be subdivided or separated. 17. CONVEYANCE TO INCLUDE INTERESTS IN COMMON ELEMENTS AND FACILITIES AND LIMITED COMMON ELEMENTS. The percentage of the undivided interest in the common and limited common elements and. facilities shall not be separated from the unit to which it appertains. No unit owner shall execute any deed, mortgage, lease or other instrument affecting title tc such unit ownership without includina therein both his interest in the unit and his correspondina percentage of ownership in the common and limited common elements and facilities, it being th.e intention herecf to prevent any severance of such combined ownership. Any such deed, mortgage, lease or other instrument. purporting to affect the one without including also the other shall be deemed and taken to include the interest so omitted even though the latter is not expressly mentioned or described therein. 18. EASEMENTS, RESERVATIONS AND ENCROACHMENTS. 18.1 Utilities. Easements are hereby declared and qranted for the benefit of the unit owners and the Association and reserved for the benefit of the Declarant for utility purposes, including the right to install, lay, main.tain, repair mains, telephone wires and equipment, master television antenna and replace water msins, laterals and pipes, sewer lines, gas system wires and equipment, and electrical conduits and wj.res and eqripnent, including power transformers, over, under, along and on any part cf the common elements and limited elements, and facilities to service the condominicm property. e the construction, reconstruction, sett.lement, or shifting cf any 18.2 Encroachments. In the event t.hat by reason of ~f the buildings or the design or const.ruction of any unit, any part of the common elements and facilities, or limited common elements, enCrOJ.ches or shall hereaft.er encroach u@on any part of any unit, or any part of any unit encroaches or shall hereafter encroach upon any part of the common elements and facilities, or limited common elements, or an![ portion of any unit encroaches maintenance of such encroachment are herehy established an3 shall ~pon. any part of any other unit, ve.lid easements for the exist for the benefit of such unit so long as all or any part of the building shall remain st.anding, and unit and common element houndarie9 shall be as provided in the Act. Provided, however, that in no event shall a valid easement for any encroachment be created. in favor of the owner of any unit or in favor of the owner or owners cf the ccmmcn elements or facilities, or limited and knowing conduct of said owner or owners. ccmmcn el.ementz, if such encrcachment occurred due to the willful 0 -13- 18.3 Binding Effect. All easements and rights described in this Section 18 are easements appurtenant, running with the land, and are subect to the reasonable control of the Association. All easements and rights described herein are granted and reserved to, and shall inure to the benefit of and be binding on, the undersigned, its successors and assigns, and on all unit owners, purchasers and mortgagees and their heirs, personal representatives, successors and assigns. The Association or the Declarant shall have the authority to execute and record all documents necessary to carry out the intent of this Section 18. 19. FAILURE OF ASSOCIATION TO INSIST ON STRICT PERFORMANCE NOT WAIVER. The failure of the Association to insist, in any one or covenants, conditions or restrictions of this Declaration, or to more instances, upon the strict performance of any of the terms, notice or to institute any action, shall not be construed as a exercise any right or option herein contained, or to serve any waiver or a relinquishment for the future of such term, covenant, condition or restriction, but such term, covenant, condition or restriction shall remain in full force and effect. The receipt by the Association of payment of any assessment from a unit owner, with knowledge of the breach of any covenant hereof, shall not be deemed as a waiver of such breach, and no waiver by the Association of any provision hereof shall be deemed to have been made unless expressed in writing and signed by the Association. 20. ARCHITECTURAL CONTROL COMMITTEE AUTHORITY. property, additional fences, or changes in existing fences, No exterior additions or alterations to any building on the hedges, walls, walkways and other structures shall be commenced, erected or maintained except such as are installed or approved by the Developer in connection with the initial construction of the buildings on the properties, until the plans and specifications approximate cost of same shall have been submitted to and showing the nature, kind, shape, height, materials, location and approved in writing as to harmony of external design and location in relation to surrounding buildings in the subdivision by an Architectural Committee composed of the Board of Directors of the Association, or by a representative or representatives designated by the Board of Directors. In the event said committee, or its design and location within thirty (30) days after said plans and designated representatives, fails to approve or disapprove such specifications have been submitted to it, and if no suit to enjoin the making of such additions, altertions or changes has been commenced within sixty (60) days of application, such approval will be deemed to have been given. If no application has been made to the Architectural Committee or their representatives, suit to enjoin or remove such additions, 0 -14- alterations or changes may be instituted at any time. Neither the members of the Architectural Committee or its designated representatives shall be entitled to compensation to themselves for services performed pursuant to this paragraph, but compensation may be allowed to independent professional advisors not be placed on any building without the approval of the retained by the Architectural Committee. Exterior antennae shall Architectural Committee or its designated representatives. Until ten percent (10%) of the units have been sold, the Architectural Committee must have the written approval of the Developer. 21. AMENDMENTS TO DECLARATION. termination of the condominium form of ownership, this Except as otherwise provided by the Act with respect to Declaration may be amended with the written consent of not less than seventy-five percent (75%) of the unit owners and mortgages following the construction and initial sale of seventy-four (74) units by Declarant. Prior to such time the consent in writing of the Declarant, its successors or assigns, shall also be required. No amendment shall alter or abrogate the rights of Declarant as contained in this Declaration. Copies of amendments shall be certified by the President and Secretary of the Association in a form suitable for recording. A copy of the amendment shall be recorded with the Register of Deeds for Waukesha County, and a copy of the amendment shall also be mailed or personally delivered to each unit owner at his address on file with the Association. 0 22. MORTGAGEE RIGHTS. 22.1. The holder of any first mortgage or land contract upon a unit in BAY BREEZE CONDOMINIUM ("Mortgagee"), upon the submission of a request to the Association in writing delivered to the Resident Agent as specified herein, shall be entitled to receive notice from the Association of the following matters: a. Written notice as to any default or delinquency in the performance by the individual unit owner who is the Mortgagee's mortgagor as to any obligation under the Condominium days after written notice of said default or delinquency by the documents, which default or delinquency is not cured within 30 Association to the said mortgagor: b. the membership or Board of Directors of the Association to be Written notice of the call of any meeting of held for the purpose of considering any proposed Amendment to the Declaration, the Articles of Incorporation of the Association, or the By-Laws of the Association: 0 -15- C. the common elements of the Condominium, including the buildings, Written notice of any damage or destruction to which is in an aggregate amount exceeding $10,000, at such time fixtures and equipment which are a part of the common elements, as such damage or destruction is known to the Board of Directors. 22.2. Except as provided by the Act in the case of damage to or destruction of all or any part of the property, the Association shall not, unless the Mortgagees of at least 75% of the units have given their prior written consent: common elements of the Condominium appurtenant to any unit, or a. Change the undivided percentage interest in the the manner of making assessments for common expenses based upon such percentage. b. Partition or subdivide any unit or common elements of the Condominium. C. the Condonimium or encumber or convey any part of the common By act or omission seek to abandon or terminate elements of the Condominium. 23. REALLOCATION OF BOUNDARIES. Unit owners in BAY BREEZE CONDOMINIUM may reallocate unit boundaries between adjoining units upon compliance with the provisions hereof and the Act: 23.1 Written Application. Owners of adjoining units boundaries shall make written application to the President of the in BAY BREEZE CONDOMINIUM who may wish to relocate mutual unit Association. The written application shall identify the units involved and shall specify the proposed reallocation of the aggregate undivided interest in the common elements appertaining to the units involved in the reallocation. The application shall also contain a proposed reallocation, if any, of the votes in the Association with respect to the units involved in the Association. reallocation for approval by the Board of Directors of the 23.2 Notice and Meeting. Upon receipt of the written application, the President of the Association shall give written notice to all other unit owners advising of the proposed reallocation of boundaries, stating the units involved in the reallocation and the proposed reallocation of votes and undivided ownership interest in the common elements. The notice to unit owners shall be delivered within ten (10) days after the written application is received. The Board of Directors of the Association shall meet to consider the reallocation no earlier than thirty (30) days after the notice is given to the unit -16- c *... .. owners and no later than sixty (60) days after the written application is received. by the Board of Directors at such meeting, and approval as to the 23.3 Amendment to Declaration. Upon consideration reallocation of votes in the Association and the undivided units, the President shall direct the preparation and execution interest in the common elements with respect to the relocated of appropriate documents, including an amendment to this Declaration. The amendment shall identify the units involved and shall state that the boundaries between these units are being relocated by agreement of the unit owners thereof. The amendment shall contain words of conveyance between the said unit owners, and shall specify the reallocation of the aggregate undivided ownership interest in the common elements appertaining to the units as relocated, the votes attributable to the relocated units in the Association, the use of limited common elements appurtenant to the relocated units, and a statement that common expenses and special assessments of the Association shall thereafter be assessed in accordance with the percentage of undivided ownership interest in the common elements appurtenant to the relocated units. Plats and plans showing the relocated boundaries and the dimensions of the units and the identifying unit numbers shall be prepared and certified in accordance with requirements of the Act. 23.4 Effective Date. After the appropriate documents have been prepared and executed by the President and Secretary of the Association, the documents shall be delivered to the requesting unit owners upon payment by such unit owners of preparation of such documents. The reallocation of boundaries all charges and expenses incurrend by the Association for the and the documents shall be effective only when signed by the requesting unit owners and their mortgagees, if any, and recorded with the Register of Deeds for Waukesha County, Wisconsin. The effective date shall be the date of recording. 23.5 No Subdivision. No unit in BAY BREEZE CONDOMINIUM may be subdivided or separated, except that units which have reallocated boundaries in accordance with the foregoing provisions may thereafter be separated, provided that no resulting unit shall be smaller in square footage or percentage of undivided interest in the common elements than the units as originally declared by this Declaration. The procedures be as stated in the Act. for separation of units which have reallocated boundaries shall 24. NOTICES. this Declaration or the By-Laws of the Association shall be All notices and other documents required to be given by sufficient if given to one (1) registered owner of a unit -17- regardless of the number of owners who have an interest therein. Notices and other documents to be served upon Declarant shall be given to the Resident Agent specified herein. All owners shall provide the Secretary of the Association with an address for the mailing or service of any notice or other documents and the Secretary shall be deemed to have discharged his duty with respect to the giving of notice by mailing it or having it delivered personally to such address as is on file with him. 25. NUMBER AND GENDER. Whenever used herein, unless the context shall otherwise provide, the singular number shall include the plural, the plural shall include the singular, and the use of any gender shall include all genders. 26. CAPTIONS. as matters of convenience and for reference, and in no way define The captions and section headings herein are inserted only nor limit the scope or intent of the various provisions hereof. 27. SEVERABILITY. The provisions hereof shall be deemed independent and severable, and the invalidity or partial invalidity or unenforceability of any one provision or portion thereof shall not affect the validity or enforceability of the remaining portion of said provision or of any other provision hereof. IN WITNESS WHEREOF, the said Declarant, has caused this document to be executed at Milwaukee, Wisconsin as of the date first set forth above. BY: President ATTEST : Secretary This instrument was drafted by: Herbert Levine and Jeffrey S. Schuster Stupar 8 Schuster, S.C. 633 West Wisconsin Avenue, #EO0 Milwaukee, Wisconsin 53203 (414) 271-8833 -18- IRREVOCABLE LETTER OF CREDIT CREDIT NO: Date ONE HUNDRED TEN THOUSAND September 30, 1988 AND N0/100 ($110,000.00) AMOUNT: DOLLARS APPLICANT: P. 0. BOX 425 INGERSOLL DEVELOPMENT CORP. MUSKEGO, WISCONSIN 53150-0425 BENEFICIARY: CITY of MUSKEGO 8200 S. RACINE AVENUE MUSKEGO, WIS. 53150 EXPIRATION DATE: DECEMBER 31. 1989 Dear Sirs: We hereby issue this irrevocable documentary credit in your favor (the beneficiary's) which is available by the beneficiary's draft(s) at sight drawn on BANK-ONE, WAUHESHA. Each draft accompanying documents must state "Drawn under BANK-ONE, WAUKESHA Documentary Credit No. - CONTINUED ON PAGE TWO (2) WHICH IS AN INTEGRAL PART OF THIS STANDBY CREDIT PAGE 2, AN INTEGRAL PART OF STANDBY CREDIT NO. DATED SEPTEMBER 30, 1988 This Standby Credit is to provide security to the City of Muskego for the performance of Ingersoll Development Corp.'s obligations under that certain Agreement dated 30th day of September, 1988 between the City of Muskego, and Ingersoll Development Corp. - DRAFTS ARE TO BE ACCOMPANIED BY: A statement signed by the Mayor of the City of Muskego stating that Ingersoll Developement Corp. has failed to complete the construction of a water supply and distribution system, berms and landscaping along Janesville Rd. in accordance with said Agreement. Said statement shall set forth the estimated amount necessary for the City of Muskego to complete such improvements. SPECIAL CONDITIONS: This standby credit will terminate on the 31st day of December, 1989 provided, however, BANK-ONE, WAUKESHA shall give written notice to the beneficiary of its intention to terminate this standby credit at least 90 days prior to said 31st day of December, 1989. After said date this letter of credit can only terminate upon 90 days written notice to the beneficiary. It is hereby agreed by all parties hereto that the reference to "Agreement" is for identification purposes only and such reference shall not be construed in any manner to require BANK-ONE, WAUKESHA to inquire into its terms and obligations. 0 rrc We engage with you that drafts drawn under and in compliance with the terms oi this credit will be duly honored if presented on or before the expiration date. This original drawings hereunder for our endorsement of any payments Standby Credit must be submitted to us together with any effected by us and/or for cancellation. Very truly yours, BANK-ONE, WAUKESHA