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11-102577CITY OF L Federal Way August 16, 2011 Michael Ivancic Washington Complete Construction 9757 Juanita Drive NE Kirkland, WA 98034 CITY HALL FiLE 33325 8th Avenue South Mailing Address: PO Box 9718 Federal Way, WA 98063-9718 (253) 835-7000 www.cityoffederalway.com RE: FILE #11-102577-00-UP; PROCESS H — SITE PLAN APPROVAL The Cove Apts - Leasing Office & Fitness Center, 33131 1st Avenue SW, Federal Way Dear Mr. Ivancic: The City of Federal Way's Community and Economic Development Department has completed the administrative review for the proposed leasing and fitness center improvements located at 33131 1st Avenue SW. The Process II land use application submitted on June 29, 2011, is hereby approved as the proposal meets site plan and community design guideline criteria set forth in Federal Way Revised Code (FWRC) 19.60.050 as found in the enclosed ExhibitA - Findings for Process II Site Plan Approval. The remainder of this letter outlines the land use review process required for this proposal and a summary of appeal procedures. REQUIRED REVIEW PROCESS The proposed improvements to the existing developed site are subject to Process II Site Plan Review as the leasing and fitness center's designs constitute a material change to the originally approved architectural design — a specific threshold set forth in FWRC 19.15.030(e). The proposal is exempt from review under the State Environmental Policy Act (SEPA), pursuant to the city's flexible threshold exemptions of office/recreational buildings of 12,000 square feet set forth in FWRC 14.15.030(c). APPEALS The effective date of this decision is August 19, 2011, or three days from the date of this letter. Pursuant to FWRC 19.60.080, any person who received notice of this administrative decision may appeal the decision to the Federal Way Hearing Examiner by September 2, 2011, or 14 days from the effective date of the decision. A written appeal must be delivered to the Community and Economic Development Department with the established fee. The appeal letter must contain a clear reference to the matter being appealed and a statement of the alleged errors in the decision. No work on the proposal may begin until the end of the appeal period. However, as you are the only party of record, you may waive your right to appeal this decision by submitting a written request to do so to the department (this action allows the building permits to be issued prior to the end of the appeal period). Mr. Ivancic August 16, 2011 Page 2 CLOSING This land use decision does not waive compliance with future City of Federal Way codes, policies, and standards relating to this development. This Process II approval does not constitute approval of a building permit. The associated building permits (files #11-102578-00-CO and 11-102582-00-CO) are currently under review. If you have any questions regarding this decision, please contact me at 253-835-2643, or isaac.conlen@cityoffederalway.com. Sincerely, Isaac Conlen, Planning Manager for Patrick Doherty, Director enc: Approved Plans and Exhibit A `Findings for Process II Site Plan Review Approval' c: Matthew Herrera, Associate Planner Kevin Peterson, Engineering Plans Reviewer Scott Sproul, Plans Examiner Chris Ingham, South King Fire & Rescue Brian Asbury, Lakehaven Utility District 1 1-102577 Doc. I.D. 58273 FiLE N6. carr or Federal Way EXHIBIT A Findings for Process H Site Plan Approval The Cove Leasing/Fitness Center File #11-102577-00-UP The Planning Division hereby presents the following analysis to the Director of Community and Economic Development pursuant to content requirements of the Process II written decision as set forth in Federal Way Revised Code (FWRC) 19.60.070. These findings are based on review of existing city documents and the following items submitted by the applicant: • CVl.l Cover Sheet; CIA Site Plan; A1.1 Floor Plan; A1.3 Floor Plan/Roof Plan; A2.1 Exterior Elevations; A3.1 Sections & Details, prepared by registered architect Gregory Sparhawk. • Demolition & TESC .Plan; Grading, Drainage & Utility Plan, prepared by professional engineer R. Alan Murray. ■ Landscape Plan prepared by registered landscape architect Denise Liftin. 1. proposal — The project applicant proposes to construct a new leasing center and a new fitness center to compliment the existing multi -family development. The new 2,659 square -foot leasing structure and 746 square -foot fitness center will replace the existing leasing/fitness center and will be located in roughly the same footprint area near the is` Avenue Street and South 332Rd Street entrance. The existing structure (to be demolished) is 3,573 square feet. Review Process — The proposed improvements to the developed site exceed the threshold set forth in FWRC 19.15.030(1)(e) material change to the approved architectural design, but does not require environmental review; therefore, the proposal is subject to development review procedures of Process II `Site Plan Review' set forth in FWRC Chapter 19.60. Process II review is administrative review that requires no public notice period with a written decision issued by the Director of Community and Economic Development. Appeals of the director's decision are conducted by the city's Hearing Examiner. 3. Zoning Designation --- The subject property is within a Multi -Family Residential 2.4 zoning designation. The property's current use of stacked dwelling units is currently a permitted use with the RM 2.4 zoning designation pursuant to FWRC 19.205.040. 4. Environmental Review — The proposed improvements are exempt from environmental review. The new buildings will be less than 12,000 square feet with no new parking stalls; therefore, the improvements are consistent with the State Environmental Policy Act (SEPA) definition of "minor new conMetion" as adopted in the city's flexible threshold exemption set forth in FWRC 14.15.030(1)(c). 5. Site Profile — The subject property is a 7.91-acre parcel located in the central portion of the city. The multi -family development was constructed in 1981, prior to the incorporation of the city and under the authority of King County building and land use provisions. The Cove Apartments contain 312 units ranging in size from 668 square feet to 968 square feet. The site is generally flat with some areas containing gradual grade changes. Mature evergreen and deciduous trees are located throughout the subject property. The city's Critical Areas inventory shows no environmentally sensitive areas within 200 feet of the proposed construction area. 6. Accessory Use — The proposed leasing/fitness centers are normally associated with multi -family housing developments and the building footprints are secondary to the principal multi -family housing use. Therefore, the leasing/fitness centers are accessory uses permitted by FWRC 19.265.010. 7. Height, Setbacks, and Lot Coverage — The height of the gabled leasing center is 23 feet above average building elevation. The height of the single -story fitness center is 12.5 feet above average building elevation. Both structures (height of structure and overall ridge height) are below the 30- foot height maximum. Site improvements are interior to the 20-foot front, five-foot side, and five- foot required yards. New impervious areas do not exceed overall 70 percent limitation on the 7.91- acre lot. 8. Parking — No new parking stalls are proposed and no parking stalls are proposed to be eliminated. The project will not necessitate an increase to the five existing stalls associated with the buildings. 9. Tree Retention/Replacement — The city's tree density policy codified in FWRC 19.120.130 requires multi -family zoned properties to maintain via retention/replacement at least 30 tree units per acre. The applicant proposes to remove 9.5 tree units and plant 7 tree unit credits resulting in a 2.5 credit decrease in overall tree density. Review of satellite imagery and staff familiarity with the subject property confirms the net decrease in tree units will not cause the property to fall below the 237 tree unit requirement (7.91 x 30 acres). 10. Landscaping — In addition to the new tree plantings noted above, the applicant proposes to plant five varieties of large and medium sized shrubs and two varieties of groundcover along the base of the facades and near pedestrian paths. Proposed plantings meet applicable general landscaping requirements set forth in FWRC 19.125.040 and building design standards noted below. 11. Community Design Guidelines —As detailed below, the project embodies site and building design principles consistent with the requirements of the Community Design Guidelines (FWRC Chapter 19.115). a. Site Design & Building/Pedestrian Orientation — The project applicant has satisfied general site design criteria. i. Overall design continuity is achieved by using similar elements throughout the project. ii. The primary entrance is clearly visible from the right-of-way (1" Avenue South). iii. Pedestrian area is easily seen and provides pathways to amenities such as the pool, mail, fitness, and plaza areas. iv. A plaza type walkway/breezeway connects the leasing office to the fitness center. b. Building Design —Building facades that are both longer than 60 feet and visible from a right-of- way must incorporate at least two of the four fagade treatments described in FWRC 19.115.060. (This provision applies to the leasing center, but not the fitness center.) Modulation and screening dimensional requirements have been eased for the east fagade of the leasing center (as allowed via FWRC 19.115.060(2) as the applicant has provided the following three treatments): i. Multiple fagade modulations that exceed minimum dimensional requirements. Findings for Process II Site Plan Approval Page 2 The Cove Leasing/Fitness Center File #11-102577-00-UP/noc.ID.58180 ii. Landscape screen consisting of trees, shrubs, and groundcover with ranging widths of four to fifteen feet at maturity. iii. One 14-foot-wide canopy entrance. Both buildings contain architectural features consistent with articulation advisory criteria set forth in FWRC 19.115.060(3). c. District Guidelines — Applicable supplemental guidelines applying exclusively to the MF zoning district have been satisfied as set forth below. i. The principle entry is highlighted with landscaping and nine -foot -wide pedestrian plaza type entrance. ii. West fagade overlooking community spaces is comprised of significant glazing. iii. Building contains distinct base, middle, and top. iv. Residential design features such as individual windows with trim, gable roofs, and lap siding, and cultured stone are incorporated. 12. Transportation Concurrency — The Public Works Traffic Division has determined the improvements will not impact the surrounding transportation system; therefore, a Capacity Reserve Certificate, Traffic Impact Fee, or offsite mitigation will not be required. 13. Stormwater — The city's Public Works Department has reviewed the project and finds it in compliance with all stormwater regulations. 14. Building Permit — The applicant has submitted building permits (files 11-102578-CO and 11- 102582-CO) which are currently under review. No site work may begin until permits have been issued. 15. Decision Criteria — Staff finds the proposal is consistent with applicable site plan approval criteria required for Process 11 as set forth in FWRC 19.60.050. The proposal is consistent with the city's comprehensive plan; applicable provisions of FWRC Title 19 Zoning and Development Code; public health, safety, and welfare; and streets and utilities in the area are adequate to serve the anticipated demand from the proposal. The proposal is consistent with Community Design Guideline decisional criteria set forth in FWRC Chapter 19.115. Final construction drawings will be reviewed for compliance with specific regulations, conditions of approval, and other applicable city requirements. These findings shall not waive compliance with future City of Federal Way codes, policies, and standards relating to this development. Prepared by: Matthew Herrera, Associate Planner Date: August 16, 2011 Findings for Process II Site Plan Approval Page 3 The Cove Leasing/Fitness Center File #11-102577-00-UP/n— In. 59180 CITY OF Federal Way July 15, 2011 Michael Ivancic Washington Complete Construction 9757 Juanita Drive NE Kirkland, WA 98034 RE: File #11-102577-00-UP; TECHNICAL COMMENT LETTER CITY HALL FILE 33325 8th Avenue South Mailing Address: PO Box 9718 Federal Way, WA 98063-9718 (253) 835-7000 www.cityoffederalway.com Cove Apartments - Leasing Office/Fitness Center, 33131 1" Avenue SW, Federal Way Dear Mr. Ivancic: The Community and Economic Development Department has reviewed your Process II Master Land Use application for improvements to the Cove Apartment development located at 33131 1" Avenue SW. The proposal includes the replacement of the existing leasing and fitness center with a new 3,700 square -foot facility. The following stormwater items must be addressed and shown on applicable plan sets prior to issuing land use approval. STORMWATER Per requirements of Federal Way Revised Code (FWRC) 16.15.010(2) and the city adopted 2009 King County Surface Water Design Manual, flow control using Best Management Practices (BMPs) shall be provided for the new and replaced impervious areas. Additionally, perforated pipe connections for the roof downspouts are required. Please refer to Section 5.2.1.3 of the 2009 KCSWDM for design requirements. Questions regarding stormwater requirements should be referred to Kevin Peterson, Engineering Plans Reviewer, at 253-835-2734 or kevin.peterson@cityoffederalway.com. APPLICATION STATUS Pursuant to Zoning and Development Code regulations, city departments are allotted 120 days to review and issue a decision on the Process II application. Any period in which the applicant has been requested to correct plans or provide additional information is excluded from the 120-day period. As of today, the review period has stopped with 16 days used. The review period will begin within 14 days of a resubmittal of items requested/corrected. CLOSING Please provide six copies of any plans with the enclosed resubmittal form when submitting requested items. Pursuant to FWRC 19.15.050, if an applicant fails to provide additional information to the city within 180 days of being notified that such information is requested, the application shall be deemed void and the city shall have no duty to process, review, or issue a decision. Mr. Mmic July 15, 2011- Page 2 If you have any questions regarding this letter or your development project, please contact me at 253-835- 2638, or matt.herrera@3u cityof eralway.corn. Since l Matthew Herrera Associate Planner enc: Resubmittal Form c; Kevin Peterson, Engineering Plans Reviewer 11-302577 Da 1 D. 59305 The Cove Leasing/Fitness Center 1-00-UP) Page 1 of 1 The Cove Leasing/Fitness Center (11-102577-00-UP) © 2006. Lakehaven Utility District neither warrants nor guarantees the accuracy of any facility information shown. Facility locations and conditions are subject to field verification. http://columbia/lion/map.aspx 7/11/2011 IV- T, ­k" .2. it �tt .j a v n 'S- T 11N. Nu implillp r .. J, SP,[RiJLF3 . L - JIM tk II Me low 11 oft Tt ` (RECEIVED CITY OF 401':�/ Federal WSY OF FEDERAL WAY CDS MASTER LAND USE APPLICATION DEPARTMENT OF COMMUNITY DEVELOPMENT SERVICES 33325 81h Avenue South Federal Way, WA 98003-6325 253-835-2607;Fax 253-835-2609 www.cityoffederalway.com APPLICATION NO(s) 0=/Oa ' 5 7 — " ` P Date 1, - 2-7- 11 Project Name Comrs, 1,4aasknqWP Property Address/Location 3 S 13 1 1 . $ • CA 0 Z3 Parcel Number(s) tx l g Z 0 +• p 3 .. D i s Z [9 M O 7413 - Project Description ar +k-e- 'LEANS Type of Permit Required a. 6 vaw LQ.A -5 tt$k4Z Annexation Binding Site Plan Boundary Line Adjustment Comp Plan/Rezone _ Land Surface Modification Lot Line Elimination Preapplication Conference Process I (Director's Approval) Process II (Site Plan Review) Process III (Project Approval) Process IV (Hearing Examiner's Decision) Process V (Quasi -Judicial Rezone) Process VI SEPA w/Project SEPA Only _ Shoreline: Variance/Conditional Use Short Subdivision Subdivision Variance: Commercial/Residential Required Information QtA - Z4 C)o Zoning Designation Comprehensive Plan Designation ZA_VS, - GO Value of Existing Improvements Value of Proposed Improvements International Building Code (IBC): Occupancy Type -� rj Construction Type 1i-Kts5 e- a ts-t-e r oil t Kaj Applicant Wo,,61%<KgfaK Corn pl�et-e. 4�e1s�Tuc� Name: o YQ. a pa.l^-k 1N`einr4S Address: !F757 Jwa,v%j**_ Or. tA.F_ 0-300 City/State: V_ttl^14Aa v%ok , WA., Phone: 4 L9 )0i Fax: 87-3-1,s-99 Email: G y� w.a.-, AV% ar. G 0 fM. Signature:4A_• f /7 Agent (if different than Applicant) Name: SO.rVK4P__ Address: City/State: Zip: Phone: Fax: Email: Signature: Owner Name: C. oYe Apa-r kti'Vle t-1{ St LLC. Address: ct-157 t4-C, V*300 City/State: V t V--V Zip Phone: ot-80 L4 Fax: (4 12 9 Z.l �- 3g L -4 Email (4 2 0 $ Z�"I g • Signature: J -001 _ Bulletin #003 -January 1, 2011 Page 1 of I k:\Handouts\lvlaster Land Use Application Form WA-5 (6/76) Commitment Face Page File No: NCS-422490-CC COMMITMENT FOR TITLE INSURANCE Issued by FIRST AMERICAN TITLE INSURANCE COMPANY First American Title Insurance Company, herein called the Company, for valuable consideration, hereby commits to issue its policy or policies of title insurance, as identified in Schedule A, in favor of the proposed Insured named in Schedule A, as owner or mortgagor of the estate or interest covered hereby in the land described or referred to In Schedule A, upon payment of the premiums and charges therefor; all subject to the provisions of Schedules A and 3 and to the Conditions and Stipulations hereof, This Commitment shall be effective only when the identity of the proposed Insured and the amount of the policy or policies committed for have been inserted in Schedule A hereof by the Company, either at the time of the Issuance of the Commitment or by subsequent endorsement. This Commitment if preliminary to the issuance of such policy or policies of title insurance and all liability and obligations hereunder shall cease and terminate six (6) months after the effective date hereof or when the policy or policies committed for shall issue, whichever first occurs, provided that the failure to Issue such policy or policies is not the fault of the Company. This Commitment shall not be valid or binding until countersigned by an authorized officer or agent. IN WITNESS WHEREOF, the Company has caused this commitment to be signed and sealed, to become valid when countersigned by an authorized officer or agent of the Company, all in accordance with its By -Laws. This Commitment is effective as of the date shown in Schedule A as "Effective Date." jar: FirstAmerican Title Insurance Company -F t+ti�►ti l ,rso;+,� •'garar{ rF� D By: fill �IJ p7 President a� fill .�' Y Attest:, ��%'�" Secretary By, 100t,7: f -- Countersigned [DECEIVED JUN 29 2011 CITY OF FEDERAL WAY CDS FirstAmerican 7-We Insurance Company Form WA-5 (6/76) Commitment -r a�tiu'-.L�r First American Title Insurance Company National Commercial Services 1850 Mt. Diablo Blvd., Suite 300, Walnut Creek, CA 94596 (925)927-2100 - FAX(925)927-2180 To: Prometheus Real Estate Group 1900 South Norfolk Street, Suite 150 San Mateo, CA 94403 Attn: John Millham SCHEDOLE A File No.: NCS-422490-CC Page No. 1 File No.: NCS-422490-CC Your Ref No,: Cove I 1. Commitment Date: December 07, 2009 at 7:30 A.M, 2. Policy or Policies to be issued: AMOUNT PREMIUM TAX Extended Owner's Coverage $ To Follow $ To Follow $ To Follow Proposed Insured: To Follow Extended Mortgagee's Coverage $ To Follow $ To Follow $ To Fallow Proposed Insured: To Follow 3. The estate or interest in the land described on Page 2 herein is Fee Simple, and title thereto is at the effective date hereof vested in: Cove I, a California limited partnership who acquired title as Cove I, a California general partnership as to Lot 1 and Cove III, a California limited partnership who acquired title as Cove III, a California general partnership as to Lot 2 4. The land referred to in this Commitment is described as follows: The land referred to in this report is described in Exhibit "A" attached hereto. First American Title Insurance Company Form WA-5 (6/76) Commitment EXHIBIT 'A' LEGAL DESCRIPTION: File No.: NCS-422490-CC Page No. 2 LOT 1 AND 2 OF KING COUNTY SHORT PLAT NO. 1080010, ACCORDING TO PLAT RECORDED JULY 1, 1981 UNDER RECORDING NO. 810701068S, IN KING COUNTY, WASHINGTON, First American Titie Insurance Company Form WA-5 (6/76) Commitment SCHEDULE B - SECTION 1 REQUIREMENTS File No.: Ncs-422490-CC Page No. 3 The following are the Requirements to be complied with: Item (A) Payment to or For the account of the Grantors or Mortgagors of the full consideration for the estate or interest to be insured. Item (B) Proper instrument(s) creating the estate or interest to be insured must be executed and duly filed for record. Item (C) Pay us the premiums, fees and charges for the policy. Item (D) You must tell us In writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions SCHEDULE B - SECTION 2 GENERAL EXCEPTIONS The Policy or Policies to be issued will contain Exceptions to the following unless the same are disposed of to the satisfaction of the Company. A. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. B. Any facts, rights, interest, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of person in possession thereof. C. Easements, claims of easement or encumbrances which are not shown by the public records. D. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records. E. (1) Unpatented mining claims; (2) reservations or exceptions In patents or in acts authorizing the issuance thereof; (3) Water rights, claims or title to water; whether or not the matters excepted under (1), (2) or (3) are shown by the public records; (4) Indian Tribal Codes or Regulations, Fndian Treaty or Aboriginal nights, including easements or equitable servitudes. F. Any lien, or right to a lien, for services, labor, materials or medical assistance theretofore or hereafter furnished, imposed by law and not shown by the public records. G. Any service, installation, connection, maintenance, construction, tap or reimbursement charges/costs for sewer, water, garbage or electricity. H. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires of record for value the estate or interest or mortgages thereon covered by this Commitment. FirstAmerican Title Insurance Company Form WA-5 (6/76) File No.: NCS-422490-CC Commitment Page No 4 SCHEDULE i3 - SECTION! 2 (continued) SPECIAL EXCEPTIONS 1. Lien of the Real Estate Excise Sales Tax and Surcharge upon any sale of said premises, if unpaid. As of the date herein, the excise tax rate for the City of Federal Way is at 1.78%. Levy/Area Code: 1205 For all transactions recorded on or after July 1, 2005: A fee of $10.00 will be charged on all exempt transactions; A fee of $5.00 will be charged on all taxable transactions in addition to the excise tax due. 2. Easement, including terms and provisions contained therein: Recording Information: October 3, 1941 under Recording No. 3194852 In Favor of: United States of America and its assigns For: Electric power transmission lines and one or more telephone and/or telegraph lines Affects: as described therein 3. Easement, including terms and provisions contained therein: Recording Information: February 15, 1961 under Recording No, 5252567 In Favor of: The Pacific Telephone and Telegraph Company, a corporation For: Telephone and telegraph or other signal or communication circuits Affects: as described therein 4. Right to make necessary slopes for cuts or Fills upon said premises For 1st Avenue South and South 336th street as granted by deed recorded February 27, 1974 under Recording No. 7402270419. Said instrument is a correction of deed recorded June 7, 1973 under Recording No. 7306070524. Easement, including terms and provisions contained therein: Recording Information: June 13, 1978 under Recording No. 7806130714 In Favor of: Puget Sound Power & Light Company, a Washington corporation For: Underground electric transmission and/or distribution system Affects: (Lot 1) as described therein 6. Easement, including terms and provisions contained therein: Recording Information: November 28, 1978 under Recording No. 7811281247 In Favor of: Lakehaven Sewer District, a municipal corporation For: Lift station facility and sewer main Affects: (Lot 1) as described therein 7. Covenants, conditions, restrictions and/or easements: Recorded: December 7, 1978 First American Title Insurance Company Form WA-5 (6176) File No.: NCS-422490-CC Commitment Page No. 5 Recording No.: 7812070820 8. The terms and provisions contained in the document entitled "Agreement" recorded February 23, 1979 as Recording No. 7902231076 of official Records. 9. The terms and provisions contained in the document entitled "Regulatory Agreement for Insured Multi -Family Housing Projects" recorded May 24, 1979 as Recording No. 7905241144 of Official Records. (Affects Lot No. 1) 10. Easement, including terms and provisions contained therein: Recording Information: June 19, 1979 under Recording No. 7906191017 In Favor of: Puget Sound Power & Light Company, a Washington corporation For: Underground electric transmission and/or distribution system Affects: (Lot 1) as described therein 11. Easement, including terms and provisions contained therein: Recording Information: September 28, 1979 under Recording No. 7909280995 In Favor of: Tribune Publishing Company d/b/a Cable TV Puget Sound, a Washington corporation, its successors and assigns For: Community antenna television system and the furnishing of community antenna television service Affects: as described therein 12. Easement, including terms and provisions contained therein: Recording Information: November 8, 1979 under Recording No. 7911080791 In Favor of: Pacific Northwest Bell Telephone Company, a Washington corporation For: Underground communication lines with wires, cables, Fixtures and appurtenances Affects: as described therein 13. The terms and provisions contained in the document entitled "Agreement" recorded December 11, 1980 as Recording No. 8012110414 of official Records. 14. Easement, including terms and provisions contained therein: Recording Information: April 7, 1981 under Recording No. 8104070812 In Favor of: Pacific Northwest Bell Telephone Company, a Washington corporation, its successors and assigns For: Underground communication lines with wires, cables, fixtures and appurtenances Affects: (Lot 2) as described therein 15. Restrictions, conditions, dedications, notes, easements and provisions, if any, as contained and/or delineated on the face of the Short plat No. 1080010 recorded July 1, 1981 under Recording No. 8107010585, in icing County, Washington, FirstAmerican Title Insurance Company Form WA-5 (6/76) Commitment File No : NCS-422490-CC Page No. 6 16. Easement, including terms and provisions contained therein: Recording Information: August 20, 1990 under Recording No. 9008201072 In Favor of: Federal Way Water and Sewer, a municipal corporation For: Sewer facilities and all appurtenances related thereto Affects: (Lot 1) as described therein 17. Easement, including terms and provisions contained therein: Recording Information: December 24, 2007 under Recording No. 20071224000199 In Favor of: Comcast of Washington IV, Inc., its successors and assigns For: Broadband communications system Affects: as described therein 18. Deed of Trust and the terms and conditions thereof. Grantor/Trustor: Cove I, a California Limited Partnership, a limited partnership and Cove III, a California Limited Partnership, a limited partnership Grantee/Beneficiary: CBRE Capital Markets, Inc., a Texas corporation Trustee: First American Title Insurance Company Amount: $14,235,000.00 Recorded: May 20, 2009 Recording Information: 20090520001354 According to the public records, the beneficial interest under the deed of trust was assigned to Federal Home Loan Mortgage Corporation, a corporate instrumentality of the United States of America by assignment recorded May 20, 2009 as Recording No. 2009052DO01355 of Official Records. 19. A financing statement recorded May 20, 2009 as Recording No. 20090520001356 of Official Records. Debtor: Cove I, a California limited partnership and Cove III, a California limited partnership Secured party: Federal Home Loan Mortgage corporation as successor assignee of CBRE Capital Markets Inc. 20. Right, title and interest of Prometheus Peal Estate Grp as to the herein described property as disclosed by Tax Rolls . We find no record of the party(ies) having an interest in the premises. 21. Terms, conditions, provisions and stipulations of the Partnership Agreement of Cove I, a California limited partnership A copy of the current agreement and all amendments must be submitted riot to closin . Any conveyance or encumbrance of the Partnership property must be executed by all of the General Partners. Note: If the proposed transaction involves a sale of all or substantially all of the Partnership's assets the written consent of all of the Limited Partners should be submitted, prior to closin 22. Matters which may be disclosed by a search of the records against the name(s) of the general/managing partner(s) of the partnership named below, provided said matters represent partnership obligations. Partnership: Cove I, a California limited partnership FirstRmerican Title insurance Company Form WA-5 (6/76) Commitment File No.: NCS-422490-CC Page No. 7 23. Terms, conditions, provisions and stipulations of the Partnership Agreement of Cove III, a California limited partnership . A copy of the current agreement and all amendments must be submitted prior to closing. Any conveyance or encumbrance of the Partnership property must be executed by all of the General Partners. Note: If the proposed transaction involves a sale of all or substantially all of the Partnership's assets the written consent of all of the Limited Partners should be submitted, ,prior to clos�rn . 24. Matters which may be disclosed by a search of the records against the name($) of the general/managing partner(s) of the partnership named below, provided said matters represent partnership obligations. Partnership: Cove III, a California limited partnership 25. Title to vest in an incoming owner whose name is not disclosed. Such name must be furnished to us so that a name search may be made. 26. Matters of extended owner/purchaser coverage which are dependent upon an inspection and an ALIA-Lurvey of the property for determination of insurability. Please submit a copy of the ALTA Survey at your earliest convenience for review. Our inspection will be held pending our review of the ALTA Survey and the result of said inspection will be furnished by supplemental report. 27. Unrecorded leaseholds, if any, rights of vendors and security agreement on personal property and rights of tenants, and secured parties to remove trade fixtures at the expiration of the term. First American 71t/eInsurance Company Form WA-5 (6/76) Commitment A. C. Fil E. INFORMATIONAL NOTES General taxes for the year 2009 which have been paid. Tax Account No. 182104-9035-01 Amount: $168,254.79 Assessed Land Value: $2,665,800.00 Assessed Improvement Value: $12,093,200.00 (Affects Lot 1) General taxes for the year 2009, which have been paid. Tax Account No.: 162104-9053-08 Amount: $112,453.39 Assessed Land Value: $1,722,700.00 Assessed Improvement Value: $8,420,300.00 (Affects Lot 2) File No.: NC5-422190-CC Page No. 8 Effective January 1, 1997, and pursuant to amendment of Washington State Statutes relating to standardization of recorded documents, the following format and content requirements must be met. Failure to comply may result in rejection of the document by the recorder. Any sketch attached hereto is done so as a courtesy only and is not part of any title commitment or policy, It Is furnished solely for the purpose of assisting in locating the premises and First American expressly disclaims any liability which may result from reliance made upon it. The description can be abbreviated as suggested below if necessary to meet standardization requirements. The full text of the description must appear in the document(s) to be insured. Lots I & 2, SP No. 1080010, Rec. 8107010685 APN: 182104-9035-01 APN: 182104-9053-08 A fee will be charged upon the cancellation of this Commitment pursuant to the Washington State Insurance Code and the filed Rate Schedule of the Company. END OF SCHEDULE B FirstAmerican Title Insurance Company Form WA-5 (6/76) Commitment First American Title Insurance Company !National Commercial Services COMMITMENT Conditions and stipulations Flle No.: NCS-422490-CC Page No 9 1. The term "mortgage" when used herein shall include deed of trust, trust deed, or other security Instrument. If the proposed Insured has or acquires actual knowledge of a defect, lien, encumbrance, adverse claim or other matter affecting the estate or interest or mortgage thereon covered by this Commitment, other than those shown in Schedule B hereof, and shall fail to disclose such knowledge to the Company in writing, the Company shall be relieved from liability for any loss or damage resulting from any act or reliance hereon to the extent the Company is prejudiced by failure to so disclose such knowledge. If the proposed Insured shall disclosure such knowledge to the Company, or if the Company otherwise acquires actual knowledge of any such defect, lien, encumbrance, adverse claim or other matter, the Company at its option, may amend Schedule B of this Commitment accordingly, but such amendment shall not relieve the Company from liability previously incurred pursuant to paragraph 3 of these Conditions and Stipulations. 3. Liability of the Company under this Commitment shall be only to the named proposed Insured and such parties included under the definition of Insured in the form of Policy or Policies committed for, and only for actual loss incurred in reliance hereon in undertaking in good faith (a) to comply with the requirements hereof, or (b) to eliminate exceptions shown in Schedule B, or (c) to acquire or create the estate or interest or mortgage thereon covered by this Commitment. In no event shall such liability exceed the amount stated in Schedule A for the Policy or Policies committed for and such liability is subject to the Insuring provisions, exclusion from coverage, and the Conditions and Stipulations of the form of Policy or Policies committed for in favor of the proposed Insured which are hereby incorporated by references, and are made a part of this Commitment except as expressly modified herein. 4. Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the title to the estate or Interest or the lien of the Insured mortgage covered hereby or any action asserting such claim, shall be restricted to the provisions and Conditions and Stipulations of this Commitment. FirstAmerican Title Insurance Company Form WA-5 (6/76) Commitment The First American Corporation First American Title Insurance Company National Commercial Services PRIVACY POLICY We Are Committed to Safeguarding Customer Information File No..: NCS-422490-CC Page No. 10 In order to better serve your needs now and in the future, we may ask you to provide us with certain Information, We understand that you may be concerned about what we will do with such information particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us Therefore, together with our parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your personal Information Applicability This Privacy Policy governs our use of the Information which you provide to us It does not govern the mariner In which we may use information we izave obtained from any other source, such as Information obtained from a public record or from another person or entity First American has also adopted broader guidelines that govern our use of personal information regardless of its source- First American calls these guldellnes Its Fair Information Values, a copy of which can be found on ourwebslte at www firstam.com Types of information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: Information we receive from you on applications, forms and in other communications to us, whether In writing, in person, by telephone or any other means; Information about your transactions with us, our affiliated companies, or others; and' Information we receive from a consumer reporting agency. Use of Information We request Information from you for our own legitimate business purposes and not for the benefit of any nonaffiilated party, Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as Permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased Such information may be used for any internal purpose, such as quality control efforts or Customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies Include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies Involved In real estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other Financial institutions with whom we or our affiliated companies have joint marketing agreements Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your Information- We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to traln and oversee our employees and agents to ensure that your Information will be handled responsibly and In accordance with this Privacy Policy and First American's Fair Information Values. We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. c 2001 The First American Corporation - All Rights Reserved First American Title Insurance Company Form WA-5 (6/76) File No -. NCS-422490-CC Commitment Face Page K Y a �� r• r e_VV,4C. COMMITMENT FOR TITLE INSURANCE Issued by FIRST AMERICAN TITLE INSURANCE COMPANY First American Title Insurance Company, herein called the Company, for valuable consideration, hereby commits to issue its policy or policies of title insurance, as identified in Schedule A, in favor of the proposed Insured named in Schedule A, as owner or mortgagor of the estate or interest covered hereby in the land described or referred to in Schedule A, upon payment of the premiums and charges therefor; all subject to the provisions of Schedules A and B and to the Conditions and Stipulations hereof. This Commitment shall be effective only when the identity of the proposed Insured and the amount of the policy or policies committed for have been inserted in Schedule A hereof by the Company, either at the time of the Issuance of the Commitment or by subsequent endorsement. This Commitment if preliminary to the issuance of such policy or policies of title insurance and all liability and obligations hereunder shall cease and terminate six (6) months after the effective date hereof or when the policy or policies committed for shall issue, whichever first occurs, provided that the failure to issue such policy or policies is not the fault of the Company. This Commitment shall not be valid or binding until countersigned by an authorized officer or agent. IN WITNESS WHEREOF, the Company has caused this commitment to be signed and sealed, to become valid when countersigned by an authorized officer or agent of the Company, all in accordance with its By -Laws. This Commitment is effective as of the date shown in Schedule A as "Effective Date." FirstAlmerican Title Insurance Company President •. il�l[NILl7l � r, Ifil •'T Attest;, Secretary By; 7- f__e,�—Counterslgned RECEIVED JUN 29 2011 CITY OF FEDERAL WAY CDS First American Ttle Insurance Company Form WA-5 (6/76) Commitment FirstAmerican Title insurance Company National Commercial Services 1850 Mt. Diablo Blvd., Suite 300, Walnut Creel, CA 94596 (925)927-2100 - FAX(925)927-2180 To: Prometheus Real Estate Group 1900 South Norfolk Street, Suite 150 San Mateo, CA 94403 1. 2. 3. 4. Attn: John Millham SCHEDULE A Commitment Date: December 07, 2009 at 7:30 A.M, Policy or Policies to be issued: Extended Owner's Coverage Proposed Insured: To Follow File No.: NCS-422490-CC Page No. 1 File No.: NCS-422490-CC Your Ref No,: Cove I AMOUNT PREMIUM TAX $ To Follow $ To Follow $ To Follow Extended Mortgagee's Coverage $ To Follow $ To Follow $ To Follow Proposed Insured: To Follow The estate or interest in the land described on Page 2 herein is Pee Simple, and title thereto is at the effective date hereof vested in: Cove I, a California limited partnership who acquired title as Cove I, a California general partnership as to Lot 1 and Cove III, a California limited partnership who acquired title as Cove III, a California general partnership as to Lot 2 The land referred to in this Commitment is described as follows: The land referred to in this report is described in Exhibit "A" attached hereto. First American Title lnsuranceCompany Form WA-5 (6/76) Commitment EXHIBIT I I LEGAL DESCRIPTION: File No.: NCS-422490-CC Page No. 2 LOT 1 AND 2 OF KING COUNTY SHORT PLAT NO. 1080010, ACCORDING TO PLAT RECORDED JULY 1, 1981 UNDER RECORDING NO. 810701068S, IN KING COUNTY, WASHINGTON, First American Title Insurance Company Form WA-5 (6/76) Commitment SCHEDULE B - SECTION 1 REQUIREMENTS The following are the Requirements to be complied with: File No.: NCs-42249D-CC Page No 3 Item (A) Payment to or for the account of the Grantors or Mortgagors of the full consideration for the estate or interest to be insured. Item (B) Proper instrument(s) creating the estate or interest to be insured must be executed and duly Filed for record. Item (C) Pay us the premiums, fees and charges for the policy. Item (D) You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions SCHEDULE B - SECTION 2 GENERAL EXCEPTIONS The Policy or Policies to be issued will contain Exceptions to the following unless the same are disposed of to the satisfaction of the Company. A. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Any facts, rights, interest, or claims which are not shown by the public records but which could be ascertained by an Inspection of said land or by making inquiry of person in possession thereof- C. Easements, claims of easement or encumbrances which are not shown by the public records. D. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records. (1) Unpatented mining claims; (2) reservations or exceptions In patents or in acts authorizing the issuance thereof; (3) Water rights, claims or title to water; whether or not the matters excepted tinder (1), (2) or (3) are shown by the public records; (4) Indian Tribal Codes or Regulations, Indian Treaty or Aboriginal Rights, including easements or equitable servitudes. F. Any lien, or right to a lien, For services, labor, materials or medical assistance theretofore or hereafter furnished, imposed by law and not shown by the public records. G. Any service, installation, connection, maintenance, construction, tap or reimbursement charges/costs for sewer, water, garbage or electricity. H. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing In the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires of record for value the estate or interest or mortgages thereon covered by this Commitment. First American Title Insurance Company Form WA-5 (6/76) File No : NCS-422490-CC Commitment Page No. 4 SCHEDULE B - SECTION 2 (continued) SPECIAL EXCEPTIONS 1. Lien of the Real Estate Excise Sales Tax and Surcharge upon any sale of said premises, if unpaid. As of the date herein, the excise tax rate for the City of Federal Way is at 1.7811/0. Levy/Area Code: 1205 For all transactions recorded on or after July 1, 2005: A fee of $10.00 will be charged on all exempt transactions; A fee of $5.00 will be charged on all taxable transactions in addition to the excise tax due. 2. Easement, including terms and provisions contained therein: Recording Information: October 3, 1941 under Recording No. 3194852 In Favor of: United States of America and its assigns For: Electric power transmission lines and one or more telephone and/or telegraph lines Affects: as described therein 3. Easement, including terms and provisions contained therein: Recording Information: February 15, 1961 under Recording No, 5252567 In Favor of: The Pacific Telephone and Telegraph Company, a corporation For: Telephone and telegraph or other signal or communication circuits Affects: as described therein 4. Right to make necessary slopes for cuts or fills upon said premises for 1st Avenue South and South 336th street as granted by deed recorded February 27, 1974 under Recording No. 7402270419. Said instrument is a correction of deed recorded June 7, 1973 under Recording No. 7306070524, Easement, including terms and provisions contained therein: Recording Information: June 13, 1978 under Recording No. 7806130714 In Favor of: Puget Sound Power & Light Company, a Washington corporation For: Underground electric transmission and/or distribution system Affects: (Lot 1) as described therein 6. Easement, including terms and provisions contained therein: Recording Information. November 28, 1978 under Recording No. 7811281247 In Favor of: Lakehaven Sewer District, a municipal corporation For: Lift station facility and sewer main Affects: (Lot 1) as described therein Covenants, conditions, restrictions and/or easements: Recorded: December 7, 1978 FirstAmerican Title Insurance Company File No.: NCS-422490-CC Form WA-5 (6/76) Page age No. 5 Recording No.: 7812070820 8. The terms and provisions contained in the document entitled "Agreement" recorded February 23, 1979 as Recording No. 7902231076 of Official Records. 9. The terms and provisions contained in the document entitled "Regulatory Agreement for Insured Multi -Family Housing Projects" recorded May 24, 1979 as Recording No. 7905241144 of Official Records. (Affects Lot No. 1) 10. Easement, including terms and provisions contained therein: Recording Information: June 19, 1979 under Recording No. 7906191017 In Favor of: Puget Sound Power & Light Company, a Washington corporation For: Underground electric transmission and/or distribution system Affects: (Lot 1) as described therein 11. Easement, including terms and provisions contained therein: Recording Information: September 28, 1979 under Recording No. 7909280995 In Favor of: Tribune Publishing Company d/b/a Cable TV Puget Sound, a Washington corporation, its successors and assigns For: Community antenna television system and the furnishing of community antenna television service Affects: as described therein 12. Easement, including terms and provisions contained therein: Recording Information: November 8, 1979 under Recording No. 7911080791 In Favor of: Pacific Northwest Bell Telephone Company, a Washington corporation For: Underground communication lines with wires, cables, fixtures and appurtenances Affects: as described therein 13. The terms and provisions contained in the document entitled "Agreement" recorded December 11, 1980 as Recording No. 8012110414 of Official Records. 14. Easement, including terms and provisions contained therein: Recording Information: April 7, 1981 under Recording No. 8104070812 In Favor of: Pacific Northwest Bell Telephone Company, a Washington corporation, its successors and assigns For: Underground communication lines with wires, cables, fixtures and appurtenances Affects: (Lot 2) as described therein 15. Restrictions, conditions, dedications, notes, easements and provisions, if any, as contained and/or delineated on the face of the Short plat No. 1080010 recorded July 1, 1981 under Recording No. 8107010685, in King County, Washington, FirstAmerican Title Insurance Company Form WA-5 (6/76) Flle No : NC5-422490-CC Commitment Page No 6 16. Easement, including terms and provisions contained therein: Recording Information: August 20, 1990 under Recording No. 9008201072 In Favor of: Federal Way Water and Sewer, a municipal corporation For: Sewer facilities and all appurtenances related thereto Affects: (Lot 1) as described therein 17. Easement, including terms and provisions contained therein: Recording Information: December 24, 2007 under Recording No. 20071224000199 In Favor of: Comcast of Washington IV, Inc., its successors and assigns For: Broadband communications system Affects: as described therein 18. Deed of Trust and the terms and conditions thereof. Grantor/Trustor: Cove I, a California Limited Partnership, a limited partnership and Cove III, a California Limited Partnership, a limited partnership Grantee/Beneficiary: CBRE Capital Markets, Inc., a Texas corporation Trustee: First American Title Insurance Company Amount: $14,235,000.00 Recorded: May 20, 2009 Recording Information: 20090520001354 According to the public records, the beneficial interest under the deed of trust was assigned to Federal Home Loan Mortgage Corporation, a corporate Instrumentality of the United States of America by assignment recorded May 20, 2009 as Recording No. 20090520001355 of Official Records. 19. A financing statement recorded May 20, 2009 as Recording No. 20090520001356 of Official Records. Debtor: Cove I, a California limited partnership and Cove III, a California limited partnership Secured party: Federal Home Loan Mortgage corporation as successor assignee of CBRE Capital Markets Inc. 20. Right, title and Interest of Prometheus Real Estate Grp as to the herein described property as disclosed by Tax Rolls . We find no record of the party(ies) having an interest in the premises. 21. Terms, conditions, provisions and stipulations of the Partnership Agreement of Cove I, a California limited partnership A copy of the current agreement and all amendments trust be submitted ,prior to closing. Any conveyance or encumbrance of the Partnership property must be executed by all of the General Partners. Note. If the proposed transaction involves a sale of all or substantially all of the Partnership's assets the written consent of all of the Limited Partners should be submitted, prior to closin . 22. Matters which may be disclosed by a search of the records against the name(s) of the general/managing partner(s) of the partnership named below, provided said matters represent partnership obligations. Partnership: Cove I, a California limited partnership First American Title Insurance Company Form WA-5 (6/76) Commitment File No.: NCS-422490-CC Page No. 7 23. Terms, conditions, provisions and stipulations of the Partnership Agreement of Cove III, a California limited partnership . A copy of the current agreement and all amendments must be submitted prior to closing. Any conveyance or encumbrance of the Partnership property must be executed by all of the General Partners. Note: If the proposed transaction involves a sale of all or substantially all of the Partnership's assets the written consent of all of the Limited Partners should be submitted, prior I_o closina. 24. Matters which may be disclosed by a search of the records against the name(s) of the general/managing partner(s) of the partnership named below, provided said matters represent partnership obligations. Partnership: Cove III, a California limited partnership 25. Title to vest in an incoming owner whose name is not disclosed. Such name must be furnished to us so that a name search may be made. 26. Matters of extended owner/purchaser coverage which are dependent upon an inspection and an ALTA survey of the property for determination of insurability. Please submit a copy of the ALTA Survey at your earliest convenience for review. Our inspection will be held pending our review of the ALTA Survey and the result of said inspection will be furnished by supplemental report. 27. Unrecorded leaseholds, if any, rights of vendors and security agreement on personal property and rights of tenants, and secured partles to remove trade fixtures at the expiration of the term. First American Title Insurance Company Form WA-5 (6176) Commitment INFORMATIONAL NOTES A. General taxes for the year 2009 which have been paid. Tax Account No. 182104-9035-01 Amount: $168,254.79 Assessed Land Value: $2,669,800.00 Assessed Improvement Value: $12,093,200.00 (Affects Lot 1) B. General taxes for the year 2009, which have been paid. Tax Account No.: 182104-9053-08 Amount: $112,453.39 Assessed Land Value: $1,722,700,00 Assessed Improvement Value: $8,420,300.00 (Affects Lot 2) File No.: NCS-422190-CC Page No. 8 C. Effective January 1, 1997, and pursuant to amendment of Washington State Statutes relating to standardization of recorded documents, the following format and content requirements must be met. Failure to comply may result in rejection of the document by the recorder. D. Any sketch attached hereto is done so as a courtesy only and is not part of any title commitment or policy. It is furnished solely for the purpose of assisting in locating the premises and First American expressly disclaims any liability which may result from reliance made upon it- E. The description can be abbreviated as suggested below if necessary to meet standardization requirements. The full text of the description must appear in the document(s) to be insured. Lots 1 & 2, SP No. 1080010, Rec. 8107010685 APN: 182104-9035-01 APN: 182104-9053-08 A fee will be charged upon the cancellation of this Commitment pursuant to the Washington State Insurance Code and the fled Rate Schedule of the Company. END OF SCHEDULE B &i stAmerican Title Insurance Company Form WA-5 (6/76) Commitment First American Title Insurance Company National commercial services COMMITMENT Conditions and Stipulations File No.: NC5-422490-CC Page No 9 1. The term "mortgage" when used herein shall include deed of trust, trust deed, or other security instrument. 2_ If the proposed Insured has or acquires actual knowledge of a defect, lien, encumbrance, adverse claim or other matter affecting the estate or interest or mortgage thereon covered by this Commitment, other than those shown in Schedule B hereof, and shall fail to disclose such knowledge to the Company in writing, the Company shall be relieved from liability for any loss or damage resulting from any act or reliance hereon to the extent the Company is prejudiced by failure to so disclose such knowledge. If the proposed Insured shall disclosure such knowledge to the Company, or If the Company otherwise acquires actual knowledge of any such defect, lien, encumbrance, adverse claim or other matter, the Company at its option, may amend Schedule. B of this Commitment accordingly, but such amendment shall not relieve the Company from liability previously incurred pursuant to paragraph 3 of these Conditions and Stipulations. Liability of the Company under this Commitment shall be only to the named proposed Insured and such parties included under the definition of Insured in the form of Policy or Policies committed for, and only for actual loss incurred in reliance hereon in undertaking in good faith (a) to comply with the requirements hereof, or (b) to eliminate exceptions shown in Schedule B, or (c) to acquire or create the estate or interest or mortgage thereon covered by this Commitment. In no event shall such liability exceed the amount stated in Schedule A for the Policy or Policies committed for and such liability is subject to the Insuring provisions, exclusion from coverage, and the Conditions and Stipulations of the form of Policy or Policies committed for in favor of the proposed Insured which are hereby incorporated by references, and are made a part of this Commitment except as expressly modified herein. 4. Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the title to the estate or interest or the lien of the Insured mortgage covered hereby or any action asserting such claim, shall be restricted to the provisions and Conditions and Stipulations of this Commitment. First American Title Insurance Company Form WA-5 (6/76) Commitment The First American Corporation First American Title Insurance Company Natlonal Commercial Services PRIVACY POLICY We Are Committed to Safeguarding Customer Information File No,: NC5-422490-CC Page No. 10 In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us Therefore, together with our parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your personal information Applicability This Privacy Policy governs our use of the information which you provide to us It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity First American has also adopted broader guidelines that govern our use of personal Information regardless of its source. First American tails these guidelines Its Fair Information Values, a copy of which can be found on our webslte at www firstam com Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect Include: Information we receive from you on applications, forms and in other communications to us, whether In writing, In person, by telephone or any other means; Information about your transactions with us, our affiliated companies, or others; and, Information we receive from a consumer reporting agency. Use of Information we request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your Information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such Information indefinitely, inciuding the period after which any customer relationship has ceased Such Information may be used for any Internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such of mated companies Include Fnanclaf service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companles involved In real estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other Financial institutions with whom we or our affiliated companies have joint marketing agreements Former Customers Even If you are no longer our customer, our Privacy Policy will continue to apply to you, Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information- We restrict access to nonpublic personal information about you to those Individuals and antilies who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values- We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal Information. . c 2001 The First American Corporation - All Rights Reserved First American Title Insurance Company