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RP 2017-0006; SHOREHOUSE KITCHEN; Redevelopment Permits (RP)
City of LAND USE REVIEW Development Services Planning Division Carlsbad APPLICATION 1635 Faraday Avenue P-1 (760) 602-4610 www.carlsbadca.gov APPLICATIONS APPLIED FOR:(CHECK BOXES) Development Permits (FOR DEPT. USE ONLY)Legislative Permits (FOR DEPT. USE ONLY) 111 Coastal Development Permit Minor 111 General Plan Amendment 111 Conditional Use Permit Local Coastal Program Amendment 111 Minor Extension 111 Day Care (Large) Master Plan 111 Amendment El Environmental Impact Assessment 111 Specific Plan 111 Amendment Habitat Management Permit Minor 0 Zone Change O Hillside Development Permit 0 Minor Zone Code Amendment Nonconforming Construction Permit South Carlsbad Coastal Review Area Permits O Planned Development Permit 0 Minor Review Permit 0 Residential Non-Residential 0 Administrative ['Minor Major El Planning Commission Determination 0 Reasonable Accommodation Village Review Area Permits 11]Site Development Plan Minor X Review Permit El Special Use Permit )g:t Administrative 0 Minor [1]Major Rfipli -00049 [11 Tentative Parcel Map (Minor Subdivision) 11 Tentative Tract Map (Major Subdivision) [11 Variance 0 Minor NOTE: A PROPOSED PROJECT REQUIRING APPLICATION SUBMITTAL MUST BE SUBMITTED BY APPOINTMENT*.PLEASE CONTACT THE APPOINTMENT SPECIALIST AT (760) 602-2723 TO SCHEDULE AN APPOINTMENT. *SAME DAY APPOINTMENTS ARE NOT AVAILABLE ASSESSOR PARCEL NO(S):o -z14 P ozoo /so;-214-03_00 LOCATION OF PROJECT:1-48. (STREET ADDRESS) NAME OF PROJECT:$1'1017-all °LIS BRIEF DESCRIPTION OF PROJECT:Re S*-duratit-ri t7101.5l 7 -rev)itUditron PROJECT VALUE ESTIMATED COMPLETION DATE(SITE IMPROVEMENTS)Fp/aaW.•2-0 11 FOR CITY USE ONLY Development No.00\1 --co .Lead Case No. P-1 Page 1 of 6 Revised 03/17 0 OWNER NAME (PLEASE PRINT)"APPLICANT NAME (PLEASE PRINT) INDIVIDUAL NAME Peal I=S INDIVIDUAL NAME , (if applicable):jekson.manager (if applicable):John rre 15 COMPANY NAME COMPANY NAME (if applicable):(.rt- 71 At-IA7-J.4)(if applicable): MAILING ADDRESS:ph° earI 47..2el pr.MAILING ADDRESS:"4S6 AVenag k playa CITY, STATE, ZIP:641.1433/eivhvb CITY, STATE, ZIP:L.jipol q 12.0TELEPHONE:160'4*t_.-sP.36.TELEPHONE:658 EMAIL ADDRESS:eurqiacie_con Cacar142ie.a.EMAIL ADDRESS: 60V I CERTIFY THAT I AM THE LEGAL OWNER AND THAT ALL THE ABOVE I CERTIFY THAT I AM THE LEGAL REPRESENTATIVE OF THE OWNER INFORMATION IS TRUE AND CORRECT TO THE BEST OF MY AND THAT ALL THE ABOVE INFORMATION IS TRUE AND CORRECT TO KNOWLEDGE.I CERTIFY AS LEGAL OWNER THAT THE APPLICANT AS THE BEST OF MY KNOWLEDGE. SET FORTH HEREI IS ORIZED REPRESENTATIVE FOR PURPOSES OF THIS PPLIIAT . e51°I1 09/ o7/ SIGNATURE DATE SIG T RE DATE APPLICANT'S REPRESENTATIVE (Print):a/ 6s Fmk_ MAILING ADDRESS:101.03 Scrirs FL:v17. CITY, STATE, ZIP:5Sn Ore o,e-Pc /2.1;1 TELEPHONE: EMAIL ADDRESS:c -I1rrs k_c-rark >enli 00 .cam I CERTIFY THAT I AM THE REPRESENTATIVE OF THE APPLICANT FOR PURPOSES OF THIS APPLICATION AND THAT ALL THE ABOVE INFORMATION IS TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE. 06/0 I /11 SIGNATURE DATE IN THE PROCESS OF REVIEWING THIS APPLICATION IT MAY BE NECESSARY FOR MEMBERS OF CITY STAFF,PLANNING COMMISSIONERS OR CITY COUNCIL MEMBERS TO INSPECT AND ENTER THE PROPERTY THAT IS THE SUBJECT OF THIS APPLICATION.I/WE CONSENT TO ENTRY FOR THIS PURPOSE. NOTICE OF RESTRICTION:PROPERTY OWNER ACKNOWLEDGES AND CONSENTS TO A NOTICE OF RESTRICTION BEING RECORDED ON THE TITLE TO HIS PROPERTY IF CONDITIONED FOR THE APPLICANT.NOTICE OF RESTRICTIONS RUN WITH THE LAND AND BIND ANY SUCCESSORS IN INTEREST. PROPERTY OWNER SIGNATURE FOR CITY USE ONLY RECEIVED MAY 1 0 2017 CITY OF CARLSBAD PLANNING DIVISION DATE STAMP APPLICATION RECEIVED RECEIVED BY: 641— P-1 Page 2 of 6 Revised 03/17 11111111141111111111MOM ON. • • OWNER NAME (PLEASE PRINT)'APPLICANT NAME (PLEASE PRINT) INDIVIDUAL NAME INDIVIDUAL NAME (If applicable):(If applicable):,John rrCOMPANY NAME &%e A COMPANY NAME applicable):d LeeIS‘.()(rf applicable): MAILING ADDRESS:laoo &WA'.vi1411_.bole.MAILING ADDRESS:1.S34 Avemia rzt k pila CITY. STATE, ZIP:erdisii„..civ altoca CITY, STATE, ZIP:j4 ji4a 1-2.0 TELEPHONE:-2.1)c.TELEPHONE:6S9.-141 -*44-41- EMAIL ADDRESS:.ifAtpvasvetsi4...„rj .EMAIL ADDRESS: I CERTIFY THAT I AM THE LEGAL OWNER AND THAT ALL THE ABOVE t CERTIFY THAT I AM THE LEGAL REPRESENTATIVE OF THE OWNER INFORMATION IS TRUE AND CORRECT TO THE BEST OF MY AND THAT ALL. THE ABOVE INFORMATION IS TRUE AND CORRECT TO KNOWLEDGE.I CERTIFY AS LEGAL OWNER THAT THE APPLICANT AS THE BEST OF MY KNOWLEDGE. SET FORTH .S MY AUTHORIZED REPRESENTATIVE FOR PURPOr •CATION. 511114SIGNATUREDATE SIGNATURE DATE APPLICANT'S R TATIVE (Print):cliffs 171'k. 11114001_MAILING A 491 0)r irp..c Korich poet.. CITY, STA 5231 Oren,eitic 12.1TELEP1e)g)-20 P432‘i. EMAIL SS:GIr'is rar L' yuallo .c-am I CERTIFY THAT I AM THE REPRESENTATIVE OF THE APPLICANT FOR PURPOSES OF THIS APPUCATION AND THAT ALL THE ABOVE INFORMATION IS TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE. 41c....06/0 /11 SIGNATURE DATE • IN THE PROCESS OF REVIEWING THIS APPLICATION IT MAY BE NECESSARY FOR MEMBERS OF CITY STAFF,PLANNING COMMISSIONERS OR CITY COUNCIL MEMBERS TO INSPECT AND ENTER THE PROPERTY THAT IS THE SUBJECT OF THIS APPLICATION.INVE CONSENT TO ENTRY FOR THIS PURPOSE. NOTICE OF RESTRICTION:PROPERTY OWNER ACKNOWLEDGES AND CONSENTS TO A NOTICE OF RESTRICTION BEING RECORD D ON THE TITLE TO HIS PROPERTY IF CONDITIONED FOR THE APPLICANT.NOTICE OF RESTRICTIONS RUN WITH THE LAN AND =IND •NY SUCCESSORS IN INTEREST. S.4 PP PR P jTY OWNER SIGNATURE FOR CITY USE ONLY DATE STAMP APPLICATION RECEIVED. RECEIVED BY: • P-1 Page 2-of8 Revised 03/17 MONII.0101•11111111 ESTIMATE OF BUILDING PERMIT FEES FORM B-40 Shorehouse Kitchen Describe COMMERCIAL use —present & future: Present and Future: The Subject Property is 5,000 SF.The building located on the Subject Property is approximately 1,805 SF. Currently the building consists of 1,242 SF of restaurant and 563 SF of storage (both of which have paid fees prior to this project).The proposed project remodel (Project) will consist of eliminating a 45 SF restroom from the restaurant (1,242-45=1,197), and converting 563 SF of storage to restaurant, resulting in a revised total restaurant of 1,760 SF (1,197+563=1,760). The Project should receive a credit for the 563 SF of storage space converting to restaurant and the 45 SF reduction in the existing restaurant space in calculations of impact fees (sewer, traffic, etc.). PARKING Converting Use: The Subject Property is located outside the Coastal Zone.Outside the CZ when space is converted from one approved use to another approved use with a higher parking requirement, then additional parking shall be required as follows:1) The additional on-site parking (or some portion thereof) shall be provided to the extent feasible given the existing building on-site configuration; or 2)if no additional parking can feasibly be accommodated on-site, as determined by the city, then the existing available parking shall satisfy the total parking requirement for the new use. Here, the Project proposes two new regular parking spaces and one ADA space, after which there is no more available space to accommodate additional parking; thus, no further parking spaces or parking in- lieu fees are required (this has been confirmed by Planning;V.lynch/C.Garcia). TRAFFIC IMPACT FEES Indoor Dining Traffic Impact fee: Per §18.42.020 of the Carlsbad Muni Code,Quality Restaurants Estimated Weekday Vehicle Trip Generation Rate (TGR) is 100/1,000 SF.Sit Down, High Turnover TGR is 300/1,000 SF.Under the Institute of Transportation Engineers Trip generation Manual,8th Edition, Quality Restaurant is described as "This land use consists of high quality, full-service eating establishment with typical turnover rates of at least one hour or longer. Quality restaurants generally do not serve breakfast; some do not serve lunch; all serve dinner.This type of restaurant usually requires reservations and is 0 ESTIMATE OF BUILDING PERMIT FEES FORM B-40 Shorehouse Kitchen generally not part of a chain.Patrons commonly wait to be seated,are served by a waiter/waitress, order from menus and pay for meals after they eat.While some of the study sites have lounge or bar facilities (serving alcoholic beverages),they are ancillary to the restaurant. High-turnover (sit down) restaurant (Land Use 932) is a related use." A High Turnover (Sit-Down) Restaurant is described as follows: "This land use consists of sit-down, full-service eating establishment with typical turnover rates of approximately one hour or less. This type of restaurant is moderately priced and frequently belongs to a restaurant chain. Generally, these restaurants serve lunch and dinner; they may also be open for breakfast and are sometimes open 24 hours a day.These restaurants typically do not take reservations. Patrons commonly wait to be seated, are served by a waiter/waitress, order from menus and pay for meals after they eat.Some facilities contained within this land use area may also contain a bar area for serving food and alcoholic drinks.Quality restaurant (Land Use 931)...are related uses" Here, the Project should be considered a Quality restaurant because the Project will be a restaurant that serves breakfast, lunch, and afull dinner menu, and includes a bar area. The restaurant takes reservations, has a hostess who seats all patrons, and has servers who take orders and deliver bills after each meal. This project is not part ofa chain, and will be closed around 9-10 pm daily (not 24-hours).The average price of a breakfast meal is $12.00 per item; the average price of a lunch meal is $12.00 per item; the average price of a dinner meal $20.00 per item (menu attached). As such,a strong argument can be made that, despite the Project serving breakfast (which is not forbidden under Quality restaurant), the Project has more in common with a Quality restaurant than a High Turnover (sit-Down) restaurant, and should be subject to a TGR of 100/1,000 SF. The Project will convert 563 SF of garage into restaurant space,as well as reducing the existing restaurant space by 45 SF.Accordingly, 518 SF should be assessed Indoor Traffic Impact fees. Outdoor Dining Traffic Impact Fee: Chapter 6 of the Village Master Plan,(page 179), "Outdoor Café on Private Property" requirements are defined as such: No additional parking required if outdoor seating is equal to or less than amount of indoor seating; one space per 100 square feet of net floor space for outdoor seating area which exceeds amount of indoor seating. Additionally, Per Note 2 of §18.42.020 of the Carlsbad Muni Code, (page 622), Square footage of dining area allowed in incidental outdoor dining areas pursuant to §21.26.013, and square footage of dining area allowed without any parking requirement in outdoor, sidewalk or curb cafes,as defined by an pursuant to the Carlsbad Village Master Plan and Design Manual and the city council, shall not count towards the generation of trips.However,any combination of outdoor dining square footage which exceeds the amount of indoor dining area square footage shall count towards the generation of trips. 0 ESTIMATE OF BUILDING PERMIT FEES FORM B-40 Shorehouse Kitchen Here, the Project has 58 indoor seats, and 58 outdoor seats. As such, per the Village Master Plan, there is no parking requirement for the outdoor dining area (confirmed by Planning;V.Lynch/C.Garcia). Therefore, pursuant to Note 2 of §18.42.020 of the Carlsbad Muni Code, the outdoor dining area shall not count towards the generation of trips and no Traffic Impact Fees should be assessed. SEWER IMPACT FEES Indoor Sewer Impact Fees: Per §13.10.020 of the Carlsbad Muni Code, Equivalent Dwelling Units,Restaurant seating Equivalent Dwelling Units (EDUs) are 2.67 plus 1.00 per each 7 seats or fraction thereof. Projects should receive a credit for areas in which they have previously paid fees. Here, the only area subject to sewer impact fees is the 563 SF of rear storage area. The front of the restaurant has previously been required to pay fees. The rear storage area consists of 22 new seats.As such, the Project should be given credit for the 2.67 EDU's and only be subject to the 1.00 per each 7 seats. 22 divided by 7 is 3.14; therefore the Projects total EDU's for the indoor area should be 3.14, not 5.81 (5.81-2.67=3.14). Outdoor Sewer Impact Fees: Per the Note of §13.10.030 of the Carlsbad Muni Code, (page 502), Seats allowed in incidental outdoor dining areas pursuant to §21.26.013, and -seats allowed without any parking requirement in outdoor, sidewalk or curb cafes,as defined by and pursuant to the Carlsbad Village Master Plan and Design Manual and the city council, shall not count towards the generation of equivalent dwelling units. However, any combination of outdoor seats which exceeds the number of indoor seats and therefor is required to be parked, shall count towards the generation of equivalent dwelling units. Here, the Project has 58 indoor seats, and 58 outdoor seats.As such, per the Village Master Plan, there is no parking requirement for the outdoor dining area (confirmed by Planning;V.Lynch/C.Garcia). Therefore, pursuant to the Note on page 502 of §13.10.030 of the Carlsbad Muni Code, the outdoor dining area shall not count towards the generation of equivalent dwelling units and no Sewer Impact Fees should be assessed. CCo•ity f PROJECT DESCRIPTION Development Services Planning Division Carlsbad P-1(B)1635 Faraday Avenue (760) 602-4610 www.carlsbadca.gov PROJECT NAME:shore Ho Lase Kit4.1}en APPLICANT NAME:John 12're-1-3. Please describe fully the proposed project by application type.Include any details necessary to adequately explain the scope and/or operation of the proposed project.You may also include any background information and supporting statements regarding the reasons for,or appropriateness of, the application.Use an addendum sheet if necessary. Description/Explanation: teLirant 17 Pa ha Pin Ak cl aion P-1(B)Page 1 of 1 Revised 07/10 C HAZARDOUS WASTE Development Services City of AND SUBSTANCES Planning Division Carlsbad STATEMENT 1635 Faraday Avenue (760) 602-4610 P-1(C)www.carlsbadca.gov Consultation of Lists of Sites Related to Hazardous Wastes (Certification of Compliance with Government Code Section 65962.5) Pursuant to State of California Government Code Section 65962.5,I have consulted the Hazardous Waste and Substances Sites List compiled by the California Environmental Protection Agency and hereby certify that (check one): The development project and any alternatives proposed in this application are not contained on the lists compiled pursuant to Section 65962.5 of the State Government Code. The development project and any alternatives proposed in this application are contained on the lists compiled pursuant to Section 65962.5 of the State Government Code. APPLICANT PROPERTY OWNER Name:.John F rP FS Name:(ty cayiskA Address:2246 Aoreiii.e6 t ay a Address:iZOO Cad C172 Wile Pr 1.g_lo112 c-11.011 .a1(1.5 17 e-Pc 12'006 Phone Number:Phone Number:160--434— 26:3C. Address of Site:/8*siA Sr. Local Agency (City and County):64r1 s- 17 4.1„9 2006 ( Saq Orejo GOA7y) Assessor's book, page, and parcel number:2-0;D?-po /2473 214-- Specify list(s): Regulatory Identification Number: Date of List: fs4:°V I /11 '1174"'517/17 Appli "Signature ate Property r ignature/Date The Hazardous Waste and Substances Sites List (Cortese List)is used by the State,local agencies and developers to comply with the California Environmental Quality Act requirements in providing information about the location of hazardous materials release sites. P-1(C)Page 1 of 2 Revised 02/13 C%fts. Indemnification and Insurance Requirement for Village Area Administrative Permit Certification Statement: I Certify that I am the Legal Business Owner of the subject business and that all of the above information is true and correct to the best of my knowledge.I agree to accept and abide by any conditions placed on the subject project as a result of approval of this application.I agree to indemnify,hold harmless,and defend the City of Carlsbad and its officers and employees from all claims, damage or liability to persons or property arising from or caused directly or indirectly by the installation or placement of the subject property on the public sidewalk and/or the operation of the subject business on the public sidewalk pursuant to this permit unless the damage or liability was caused by the sole active negligence of the City of Carlsbad or its officers or employees.I have submitted a Certificate of Insurance to the City of Carlsbad in the amount of one million dollars issued by a company which has a rating in the latest "Best's Rating Guide" of "A-"or better and a financial size of $50-$100 (currently class VII) or better which lists the City of Carlsbad as "additional insured" and provides primary coverage to the City.I also agree to notify the City of Carlsbad thirty days prior to any cancellation or expiration of the policy.The notice shall be delivered to: City Planner City of Carlsbad 1635 Faraday Avenue Carlsbad The insurance shall remain in effect for as long as the property is placed on the public sidewalk or the business is operated on the public sidewalk.This agreement is a condition of the issuance of this administrative permit for the subject of this permit on the public sidewalk.I understand that an approved administrative permit shall remain in effect for as long as outdoor displays are permitted within the Village Review Area and the permittee remains in compliance with t e su ct app ved permit. Signature Date:V07/17 Certification Statement: I Certify that I am the Legal Property Owner for the subject business location and that all of the above information is true and correct to the best of my knowledge.I support the applicant's request for a permit to place the subject property on the public sidewalk.I understand that an approved administrative permit shall remain in effect for as long as outdoor di -.lays are permitted within the Village Review Area and the permittee remains in compliance with the subject ap;r d p it. Signature or .Date:We'/I P-1 Page 3 of 6 Revised 03/17 Development Services City of DISCLOSURE STATEMENT Planning Division Carlsbad P -1(A)1635 Faraday Avenue (760) 602-4610 www.carlsbadca.gov Applicant's statement or disclosure of certain ownership interests on all applications which will require discretionary action on the part of the City Council or any appointed Board, Commission or Committee. The following information MUST be disclosed at the time of application submittal.Your project cannot be reviewed until this information is completed. Please print. Note: Person is defined as "Any individual, firm, co-partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust,receiver, syndicate,in this and any other county, city and county, city municipality, district or other political subdivision or any other group or combination acting as a unit." Agents may sign this document; however, the legal name and entity of the applicant and property ow must be provided below. 1.APPLICANT (Not the applicant's agent) Provide the COMPLETE,LEGAL names and addresses of ALL persons havi a financial interest in the application. If the applicant includes a corporation or partnership, include the names,titles,addresses of all individuals owning more than 10%of the shares.IF NO INDIVIDUALS OWN MORE THAN 10%OF THE SHARES,PLEASE INDICATE NON-APPLICABLE (N/A)IN THE SPACE BELOW.If a publicly-owned corporation,include the names,titles,and addresses of the corporate officers.(A separate page may be attached if necessary.) Person -1011h 5fe.....3 Corp/Part Title pup-IWO ©o1'-v'Title Address 3`*5T•Address 2.OWNER (Not the owner's agent) Provide the COMPLETE,LEGAL names and addresses of ALL persons having any ownership interest in the property involved.Also,provide the nature of the legal ownership (i.e.,partnership,tenants in common,non-profit,corporation,etc.).If the ownership includes a corporation or partnership, include the names, titles, addresses of all individuals owning more than 10% of the shares.IF NO INDIVIDUALS OWN MORE THAN 10%OF THE SHARES,PLEASE INDICATE NON-APPLICABLE (N/A)IN THE SPACE BELOW.If a publicly-owned corporation,include the names,titles,and addresses of the corporate officers.(A separate page may be attached if necessary.) Person eLirtic __12ek con Corp/Part Crby of LiA s 6aA Title Rea)tiatialer Title Address Address Iwo eigel ckii viilatte r7r. G'ar1c17aci,ivvoa. P-1(A)Page 1 of 2 Revised 07/10 C 3.NON-PROFIT ORGANIZATION OR TRUST If any person identified pursuant to (1) or (2) above is a nonprofit organization or a trust, list the names and addresses of ANY person serving as an officer or director of the non- profit organization or as trustee or beneficiary of the. Non Profit/Trust Isl //6%Non Profit/Trust Title Title Address Address 4.Have you had more than $500 worth of business transacted with any member of City staff,Boards,Commissions,Committees and/or Council within the past twelve (12) months? riYes \/No If yes, please indicate person(s): NOTE:Attach additional sheets if necessary. t, I certify thi all t ove information is true and correct to the best of my knowledge. 1 fl<05/7 111 05/7 in Signature of r/date /ature o applicant/date Curt?J Sek Sell John --rrii. r5 Print or type name of owner Print or type name of applicant Signature of owner/applicant's agent if applicable/date Al r ;IS Payk Print or type name of owner/applicant's agent P-1 (A)Page 2 of 2 Revised 07/10 ENVIRONMENTAL INFORMATION FORM (To be Completed by Applicant) Date Filed:V)61/j/(To be completed by City) Application Number(s):RP2019 -006C General Information 1.Name of project:SHOREHOUSE KITCHEN-Village Area Admin. Permit 2.Name of developer or project sponsor.JOHN FRETS Address:2236 AVENIDA DE LA PLAYA City, State, Zip Code:LA JOLLA, CA 92037 Phone Number:858-229-3444 3.Name of person to be contacted concerning this project:CHRIS PARK Address:10903 SCRIPPS RANCH BLVD. City, State, Zip Code:SAN DIEGO, CA 92131 Phone Number:858-201-8826 4.Address of Project:2833 STATE ST. CARLSBAD, CA 92008 Assessor's Parcel Number:203-294-0200 / 203-294-0300 5.List and describe any other related permits and other public approvals required for this project, including those required by city, regional, state and federal agencies: Commercal Tenant Improvements 6.Existing General Plan Land Use Designation: 7.Existing zoning district:\AR_, 8.Existing land use(s):g-esLatorr.Z.kr-b. 9.Proposed use of site (Project for which this form is filed): Commercial Eating & Drinking Establishment Project Description 10.Site size:5,000 SF 11.Proposed Building square footage:1,780 SF 12:Number of floors of construction: 13.Amount of off-street parking provided:3 14.Associated projects:N/A P-1(D)Page 2 of 4 Revised 07/10 15.If residential, include the number of units and schedule of unit sizes: 16.If commercial, indicate the type, whether neighborhood, city or regionally oriented, square footage of sales area, and loading facilities: 17.If industrial, indicate type, estimated employment per shift, and loading facilities: 18.If institutional, indicate the major function, estimated employment per shift, estimated occupancy, loading facilities, and community benefits to be derived from the project: 19.If the project involves a variance, conditional use or rezoning applications, state this and indicate clearly why the application is required: P-1(D)Page 3 of 4 Revised 07/10 K Are the following items applicable to the project or its effects?Discuss all items checked yes (attach additional sheets as necessary). Yes No 20.Change in existing features of any bays, tidelands, beaches, or hills, or substantial El El alteration of ground contours. 21.Change in scenic views or vistas from existing residential areas or public lands or 0 roads. 22.Change in pattern, scale or character of general area of project. El 23.Significant amounts of solid waste or litter. 24.Change in dust, ash, smoke, fumes or odors in vicinity. El 25.Change in ocean,bay,lake,stream or ground water quality or quantity,or 0 alteration of existing drainage patterns. 26.Substantial change in existing noise or vibration levels in the vicinity.0 27.Site on filled land or on slope of 10 percent or more. 28.Use of disposal of potentially hazardous materials,such as toxic substances,El flammables or explosives. 29.Substantial change in demand for municipal services (police, fire, water, sewage,0 El etc.). 30.Substantially increase fossil fuel consumption (electricity, oil, natural gas, etc.). 0 31.Relationship to a larger project or series of projects. El Environmental Setting Attach sheets that include a response to the following questions: 32.Describe the project site as it exists before the project, including information on topography, soil stability, plants and animals, and any cultural, historical or scenic aspects.Describe any existing structures on the site, and the use of the structures.Attach photographs of the site.Snapshots or Polaroid photos will be accepted. 33.Describe the surrounding properties,including information on plants and animals and any cultural, historical or scenic aspects.Indicate the type of land use (residential, commercial, etc.), intensity of land use (one-family, apartment houses, shops, department stores, etc.), and scale of development (height,frontage,set-back,rear yard,etc.).Attach photographs of the vicinity. Snapshots or polaroid photos will be accepted. Certification I hereby certify that the statements furnished above and in the attached exhibits present the data and information required for this initial evaluation to the best of my ability, and that the facts, statements, and information presented are true and correct to the best of my knowledge and belief. Date:05/01/2017 Signature: For:Chris ark P-1(D)Page 4 of 4 Revised 07/10 *40.. CLTA Preliminary Report Form Order Number:DIV-5437641 (Rev.11/06)Page Number:1 Asplt. si.4 Fist American rit e1• First American Title Company 7676 Hazard Center Drive, Ste 1100 San Diego, CA 92108 California Department of Insurance License No. 151 Customer Reference: Order Number:DIV-5437641 (09) Title Officer:Bonnie Stark Phone:(619)231-4631 Fax No.:(866)497-8905 E-Mail:titleunit9@firstam.com Property:2829 and 2833 State Street Carlsbad, CA PRELIMINARY REPORT In response to the above referenced application for a policy of title insurance, this company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof,a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Exhibit A attached.The policy to be issued may contain an arbitration clause.When the AmountofInsurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option ofeither the Company or the Insured as the exclusive remedy ofthe parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Exhibit A. Copies of the policy forms should be read. They are available from the office which issued this report. Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land. This report (and any supplements or amendments hereto)is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby.If it is desired that liability be assumed prior to the issuance of a policy of title insurance,a Binder or Commitment should be requested. First American Title Page 1 of 15 *0% ***ad Order Number:DIV-5437641 Page Number:2 Dated as of April 14, 2017 at 7:30 A.M. The form of Policy of title insurance contemplated by this report is: To Be Determined A specific request should be made if another form or additional coverage is desired. Title to said estate or interest at the date hereof is vested in: Carlsbad Redevelopment Agency,a public body, corporate and politic, subject to item Nos.10 and 11 The estate or interest in the land hereinafter described or referred to covered by this Report is: FEE The Land referred to herein is described as follows: (See attached Legal Description) At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in said policy form would be as follows: 1.General and special taxes and assessments for the fiscal year 2017-2018,a lien not yet due or payable. 2.General and special taxes and assessments for the fiscal year 2016-2017 are exempt. 3.The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code. 4.Covenants, conditions, restrictions and easements in the document recorded in Book 922 of Deeds,Page 456, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, sexual orientation, marital status, ancestry, disability, handicap, familial status, national origin or source of income (as defined in California Government Code §12955(p)), to the extent such covenants, conditions or restrictions violate 42 U.S.C. §3604(c) or California Government Code §12955.Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status. 5.Covenants, conditions, restrictions and easements in the document recorded in Book 1266 of Deeds, Page 248, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, sexual orientation, marital status, ancestry, disability, handicap, familial status, national origin or source of income (as defined in California Government Code §12955(p)), to the extent such covenants, conditions or restrictions violate 42 U.S.C. §3604(c) or California Government Code §12955.Lawful restrictions under First American Title Page 2 of 15 /Pow "skt 1/46.0'Nvid Order Number:DIV-5437641 Page Number:3 state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status. 6.An easement for PUBLIC UTILITIES and incidental purposes, recorded December 01, 1987 as INSTRUMENT NO. 87-664180 of Official Records. In Favor of:PACIFIC BELL, A CALIFORNIA CORPORATION, ITS SUCCESSORS AND ASSIGNS Affects:AS DESCRIBED THEREIN Affects:LOT 6 7.An easement for UNDERGROUND ELECTRICAL and incidental purposes, recorded April 09,1996 as INSTRUMENT NO. 96-174199 of Official Records. In Favor of:SAN DIEGO GAS & ELECTRIC COMPANY, A CORPORATION Affects:AS DESCRIBED THEREIN The location of the easement cannot be determined from record information. Terms and provisions contained in the above document. 8.An unrecorded lease dated April 13, 2006, executed by CITY OF CARLSBAD as lessor and ROSA H.HERNANDEZ as lessee, as disclosed by a ABSTRACT OF LEASE recorded May 01, 2006 as INSTRUMENT NO. 06-306043 of Official Records. Defects, liens, encumbrances or other matters affecting the leasehold estate, whether or not shown by the public records. Affects:LOT 5 9.An unrecorded lease dated November 14, 2011, executed by CARLSBAD REDEVELOPMENT AGENCY as lessor and ROSA H. HERNANDEZ as lessee, as disclosed by a MEMORANDUM OF LEASE recorded January 12, 2012 as INSTRUMENT NO.12-19016 of Official Records. Defects, liens, encumbrances or other matters affecting the leasehold estate, whether or not shown by the public records. Affects:LOT 5 10.The effect of a document entitled "GRANT DEED ", recorded JANUARY 30, 2012 as INSTRUMENT NO.12-50401 of Official Records. 11.Any challenge to the transaction creating the vesting shown in this report which challenge arises out of or is authorized or enabled by the adoption of ABx1 26 in June 2011 by the State of California or any subsequent modifying legislation including but not limited to AB1484 as adopted by the State of California. 12.Water rights, claims or title to water, whether or not shown by the public records. First American Title Page 3 of 15 ._ .‘lkerrie Order Number:DIV-5437641 Page Number:4 13.Rights of parties in possession. First American Title Page 4 of 15 **rod Order Number:DIV-5437641 Page Number:5 INFORMATIONAL NOTES Note: The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than the certain dollar amount set forth in any applicable arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties.If you desire to review the terms of the policy, including any arbitration clause that may be included, contact the office that issued this Commitment or Report to obtain a sample of the policy jacket for the policy that is to be issued in connection with your transaction. 1.The property covered by this report is vacant land. 2.According to the public records, there has been no conveyance of the land within a period of twenty-four months prior to the date of this report, except as follows: None 3.We find no open deeds of trust. Escrow please confirm before closing. The map attached, if any, may or may not be a survey of the land depicted hereon. First American expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy,if any, to which this map is attached. First American Title Page 5 of 15 %woe Nits) Order Number:DIV-5437641 Page Number:6 LEGAL DESCRIPTION Real property in the unincorporated area of the County of San Diego, State of California, described as follows: LOTS 5 AND 6 INCLUSIVE OF BLOCK "J" OF CARLSBAD, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 535, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MAY 2,1888 AND MAP NO. 775 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY. APN:203-294-02-00 and 203-294-03 First American Title Page 6 of 15 ,s 40.1114, Ng) Order Number:DIV-5437641 Page Number:7 3AV Z )4vo a ----— -----—---/®.acts..35 • 0 ofaIDtCge 40 mem • 7..Q -.0Of/...!t 0 CO W.CD,,,2 520 NO 4.5k 50zW 1- *6 c0 <, 0F (N :/®...0 0 g——...0, ...,.•te)a i ''zt 4 core cv E et V(-.D <)4 etc'4 Q cOC..)----- C 06-ff oS 0;of.g 0CO 0LL ,>ILI1C) I (kJ '•..`>znrtcci.0 z t.0 „=< g .-.-0 0 .-..70....._cL - 11.I._. 1 ....._/,..",-,.,c7;0 in it 2 1-...1 (7.—-LI '4- OILIVI '1'(f)W (f)-J ,r)..t ICJ 0 LI 41 C”,49'-'-''''5LL fl co 0 ,,,L6co co ..-- .,CNI CV ..- HCI 4 (3Ad lA13)30V- 1 -11A GNYESidVD dO LS IP 04 0 -'" ''''cpbcsi ." in I— }—CV SO ic ,ze grod p.pos r.:i .LM _0 /z 00 04 -Z .110.00®<<<WW0-M2McncncCLEMOdg'N CDI-15£ Hodes®-rnu)....r)-01'-'- t '''.x- D 1"1:10M1=11 .__.51" &Izgozvid ...?rn 1211 =_J -.....at ulisr--N -(C'5 ill.CO 53---..---4.0 ZEIMMEME 0 f--N CD 0 I N C°*-1 _(-_-\N..)._CS. -^ ob Z.'111) co 0 =-_-r.)N o o .. 4:IAJ ‘C\10 =ONNINS111...t7:.7--——-<-N N .'--""-.F Gc -71 :1 '-". 6 _J5)(S).. ..rfCE - -0 _lcmicallszc 3 M C.CD4Z-_______ NI m VMill .cc < ccTe.0 wow ;7 rc L'I Z)se 'cc ,„,L r..D, .,:c.. if .p_-a1.=-.so cc .,.°3AV ON 0.O a.0 ow ozco0vicozli>-w ..•0 <'2'Can--s\I_;•..or...-....a CV ...,_,r.0.e0' II — I - 11 ( I N f)til ME z 000 ...-- VA .---1-Cl. 1.1i VOA .cr,mum 4 I—ix o-.z00a.<'47"-0 -;F,,.—.td ...-.0 1--co'-...-...,r...,--• ,-i--mums z 85 Fa-Y•...u.. `1 CD .•'n 4N r m .. :i - Ili u_ r-ei -'t. 8 W 0.01.•-••R f.1 _co t O§' 1 .__.x u........1 ,,i a 8..w **2 Ce < ...5( il > . oY.;',o tut lio _,a0 (IS SV033) 1 f!.-< 0 •E AVM Y 0-ul >- LcV .T.'rr •Tf I—1.13SNVIISIeHO -50 OD ..4 vl ... w 7056'-4 r XII-San " 2 1 Neri..n g <28 .......„_...,.,4.);•.--..),,.in a.mMZF)>- f.i ..itv't * t 0-`9.72 -LI t'-'-bar 1.- IT c•fc)§•4 a 2 ,;.._.zE.'Ct.tt at,e-s g .t'n :'-'.:,-,,,.. 1 .‘r-.w e.A Q 6.-r2c 4 in (I) v,..,,z -0a v 1 -S'' vit.of t a .am r r; a -.-....K %—pro-A ;. - s:...La .6 A _i_gu t --=.La g II:w §ti:,4-4.)4*.;4 CM s908tri4 k `21 'A' CD OE IY :1 gt.I ....FlUIN''t2 vs.Igi 01 CD CC '2 6Z -EOZ firstAmerican Title Page 7 of 15 Sloe' Order Number:DIV-5437641 Page Number:8 NOTICE Section 12413.1 of the California Insurance Code, effective January 1,1990,requires that any title insurance company, underwritten title company, or controlled escrow company handling funds in an escrow or sub-escrow capacity, wait a specified number of days after depositing funds, before recording any documents in connection with the transaction or disbursing funds. This statute allows for funds deposited by wire transfer to be disbursed the same day as deposit. In the case of cashier's checks or certified checks, funds may be disbursed the next day after deposit. In order to avoid unnecessary delays of three to seven days, or more, please use wire transfer, cashier's checks, or certified checks whenever possible. firstAmerican Title Page 8 of 15 ogrilb '4•40..?NotrO) Order Number:DIV-5437641 Page Number:9 INCOMING DOMESTIC WIRE INSTRUCTIONS Beware of cyber-crime! If you receive an e-mail or any other communication that appears to be generated from a First American Title Company employee that contains new, revised or altered bank wire instructions, consider it suspect and call our office at a number you trust. **Our Wire Instructions Do Not Change.** Funds from other than buyer or seller:Other than funds from a designated lender, real estate agent or broker, or the attorney of record, we will only accept incoming wires that are from the buyer or seller on a transaction. Other third party deposits not accompanied by appropriate instructions will be returned to the remitter. Funds from a U.S. Bank:Funds should be wired from a bank within the United States.Notify our office at (619)238-1776 when you have transmitted your wire. Funds from a non-U.S. Bank:If your funds are being wired from a non -U.S. bank, additional charges may apply.Contact our office for Incoming International Wiring Instructions. ACH Transfers are NOT wire transfers:An ACH transfer is not immediately available funds and requires additional time for clearance.An ACH transfer cannot be accepted for an imminent closing. Acceptance of ACH transfers are subject to state law. Contact our office at (619)238-1776 prior to sending funds by ACH transfer. Contact our office at (619)238-1776 when funds are sent. PAYABLE TO:First American Title Company BANK:First American Trust,FSB ADDRESS:5 First American Way, Santa Ana,CA 92707 ACCOUNT NO.:3008270000 ROUTING NUMBER:122241255 PLEASE REFERENCE THE FOLLOWING: PROPERTY:2829 and 2833 State Street, Carlsbad,CA FILE NUMBER:DIV-5437641 FIRST AMERICAN TRUST, FSB CONTACT INFO: Banking Services (877)600-9473 WIRES MAY BE RETURNED IF THE FILE NUMBER AND PROPERTY REFERENCE ARE NOT INCLUDED First American Title Page 9 of 15 ._ Order Number:DIV-5437641 Page Number:10 EXHIBIT A LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS (BY POLICY TYPE) CLTA STANDARD COVERAGE POLICY—1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1.(a)Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii)a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b)Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2.Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3.Defects, liens, encumbrances, adverse claims or other matters: (a)whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b)not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c)resulting in no loss or damage to the insured claimant; (d)attaching or created subsequent to Date of Policy; or (e)resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4.Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. 5.Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6.Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. EXCEPTIONS FROM COVERAGE -SCHEDULE B,PART I This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1.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. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public, records. 2.Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3.Easements, liens or encumbrances, or claims thereof, not shown by the public records. 4.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 the public records. 5.(a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. 6.Any lien or right to a lien for services, labor or material not shown by the public records. First American Title Page 10 of 15 - .00Nis.1 N.61#1 Order Number:DIV-5437641 Page Number:11 CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (12-02-13) EXCLUSIONS In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1.Governmental police power, and the existence or violation of those portions of any law or government regulation concerning: a.building; b.zoning; c.land use; d.improvements on the Land; e.land division; and f.environmental protection. This Exclusion does not limit the coverage described in Covered Risk 8.a., 14,15,16,18,19,20, 23 or 27. 2.The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15. 3.The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17. 4.Risks: a.that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b.that are Known to You at the Policy Date, but not to Us,unless they are recorded in the Public Records at the Policy Date; c.that result in no loss to You; or d.that first occur after the Policy Date -this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28. 5.Failure to pay value for Your Title. 6.Lack of a right: a.to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b.in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk 11 or 21. 7.The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy, state insolvency, or similar creditors' rights laws. 8.Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence. 9.Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances. LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows: For Covered Risk 16,18,19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16:1% of Policy Amount Shown in Schedule A or $2,500 $10,000 (whichever is less) Covered Risk 18:1% of Policy Amount Shown in Schedule A or $5,000 $25,000 (whichever is less) Covered Risk 19:1% of Policy Amount Shown in Schedule A or $5,000 $25,000 (whichever is less) Covered Risk 21:1% of Policy Amount Shown in Schedule A or $2,500 $5,000 (whichever is less) 2006 ALTA LOAN POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1.(a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; First American Title Page 11 of 15 %moo '411410 Order Number:DIV-5437641 Page Number:12 (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2.Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3.Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13,or 14); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4.Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing- business laws of the state where the Land is situated. 5.Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law. 6.Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage,is (a)a fraudulent conveyance or fraudulent transfer, or (b)a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. 7.Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b). The above policy form may be issued to afford either Standard Coverage or Extended Coverage.In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE [Except as provided in Schedule B -Part II,[t[or This policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees or expenses, that arise by reason of: [PART I [The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: 1.(a) Taxes or assessments that 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) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2.Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the land. 3.Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4.Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5.(a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6.Any lien or right to a lien for services, labor or material not shown by the public records.] PART II In addition to the matters set forth in Part I of this Schedule, the Title is subject to the following matters, and the Company insures against loss or damage sustained in the event that they are not subordinate to the lien of the Insured Mortgage:] 2006 ALTA OWNER'S POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1.(a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or First American Title Page 12 of 15 _— 4"141 'Skov'Nvol# Order Number:DIV-5437641 Page Number:13 (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2.Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3.Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 or 10); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4.Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the Title as shown in Schedule A,is (a)a fraudulent conveyance or fraudulent transfer, or (b)a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5.Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. The above policy form may be issued to afford either Standard Coverage or Extended Coverage.In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees or expenses, that arise by reason of: [The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: 1.(a) Taxes or assessments that 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) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2.Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3.Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4.Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5.(a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6.Any lien or right to a lien for services, labor or material not shown by the Public Records. 7.[Variable exceptions such as taxes, easements, CC&R's, etc. shown here.] ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (12-02-13) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1.(a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; First American Title Page 13 of 15 Neri0 Order Number:DIV-5437641 Page Number:14 or the effect of any violation of these laws, ordinances, or governmental regulations.This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d),14 or 16. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. 2.Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3.Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16,17,18,19,20, 21, 22, 23, 24, 27 or 28); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4.Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing- business laws of the state where the Land is situated. 5.Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26. 6.Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11. 7.Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25. 8.The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes.This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. 9.Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage,is (a)a fraudulent conveyance or fraudulent transfer, or (b)a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy. 10.Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence. 11.Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances. First American Title Page 14 of 15 ,onriN 441fte Order Number:DIV-5437641 Page Number:15 first-American Title rn 4re. Privacy Information We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information -particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our subsidiaries we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information that you provide to us.It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Information Values. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include:•Information we receive from you on applications, forms and in other communications to us, whether in writing,in person, by telephone or any other means;•Information about your transactions with us,our affiliated companies, or 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, 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 train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values.We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. Information Obtained Through Our Web Site First American Financial Corporation is sensitive to privacy issues on the Internet. We believe it is important you know how we treat the information about you we receive on the Internet. In general, you can visit First American or its affiliates' Web sites on the World Wide Web without telling us who you are or revealing any information about yourself.Our Web servers collect the domain names,not the e-mail addresses,of visitors. This information is aggregated to measure the number of visits,average time spent on the site,pages viewed and similar information.First American uses this information to measure the use of our site and to develop ideas to improve the content of our site. There are times, however, when we may need information from you, such as your name and email address. When information is needed,we will use our best efforts to let you know at the time of collection how we will use the personal information.Usually,the personal information we collect is used only by us to respond to your inquiry, process an order or allow you to access specific account/profile information.If you choose to share any personal information with us, we will only use it in accordance with the policies outlined above. Business Relationships First American Financial Corporation's site and its affiliates' sites may contain links to other Web sites. While we try to link only to sites that share our high standards and respect for privacy, we are not responsible for the content or the privacy practices employed by other sites. Cookies Some of First American's Web sites may make use of "cookie" technology to measure site activity and to customize information to your personal tastes.A cookie is an element of data that a Web site can send to your browser, which may then store the cookie on your hard drive. FirstAm.com uses stored cookies.The goal of this technology is to better serve you when visiting our site,save you time when you are here and to provide you with a more meaningful and productive Web site experience. Fair Information Values Fairness We consider consumer expectations about their privacy in all our businesses. We only offer products and services that assure a favorable balance between consumer benefits and consumer privacy. Public Record We believe that an open public record creates significant value for society, enhances consumer choice and creates consumer opportunity. We actively support an open public record and emphasize its importance and contribution to our economy. Use We believe we should behave responsibly when we use information abouta consumer in our business. We will obey the laws governing the collection, use and dissemination of data. Accuracy We will take reasonable steps to help assure the accuracy of the data we collect,use and disseminate. Where possible, we will take reasonable steps to correct inaccurate information. When, as with the public record, we cannot correct inaccurate information, we will take all reasonable steps to assist consumers in identifying the source of the erroneous data so that the consumer can secure the required corrections. Education We endeavor to educate the users of our products and services, our employees and others in our industry about the importance of consumer privacy. We will instruct our employees on our fair information values and on the responsible collection and use of data. We will encourage others in our industry to collect and use information in a responsible manner. Security We will maintain appropriate facilities and systems to protect against unauthorized access to and corruption of the data we maintain. Form 50-PRIVACY (9/1/10)Page 1 of 1 Privacy Information (2001-2010 First American Financial Corporation) First American Title Page 15 of 15