SALISHAN HILLS DECLARATION
SUBJECTING THE ISLAND TO THE PLAN OF SALISHAN HILLS

By instrument dated January 17, 1976 and recorded on January 28, 1976 in Book 62 of the Records of Deeds of Lincoln County, Oregon, at page 309, SALISHAN HILLS, INC., an Oregon corporation, “the Developer,” has established the Plan of Salishan Hills.

The Plan of Salishan Hills contemplates that Developer will organize within Salishan Hills a number of residential areas.

Developer has determined upon a development plan for Salishan Hills. The plan contemplates that Salishan Hills will be a community with diverse types of dwelling arrangements. Homes within Salishan Hills will be attractive either for permanent residence or for recreational use. Owners of homes within Salishan Hills will have available common areas for their use as set forth in the Plan of Salishan Hills.

Developer proposes to establish and maintain a high standard for the improvement of private areas within Salishan Hills to the end that property within Salishan Hills will have a continuing value for those who acquire it.

Developer proposes to create a condominium within Salishan Hills to be known as “The Island.” The Island will be located within the property described on Exhibit “A” attached hereto. Accordingly, Developer wishes to subject the property described in Exhibit “A” hereof to the Plan of Salishan Hills and to make provision for the conditions upon which private areas within such property may be used. Nothing in this declaration is intended to prohibit removal of such property from the Oregon Unit Ownership Law, provided the provisions of this instrument and the Plan of Salishan Hills are otherwise complied with.

NOW, THEREFORE, Developer does hereby declare and provide as follows:

SECTION 1 – DEFINITIONS

When used herein the terms referred to below shall have the following meanings:

1.1 “The Island” shall mean property described in Exhibit “A” attached hereto.

1.2 “The Property” shall mean The Island.

1.3 Incorporation by Reference. Each of the terms defined in Section I of the Plan of Salishan Hills shall have the meanings set forth in such Section I.

SECTION 2 – ESTABLISHMENT OF THE ISLAND

2.1 Plan of Salishan Hills. Pursuant to Section 2.1 of the Plan of Salishan Hills, Developer hereby declares as follows:

a) All property within the Island shall be subject to and entitled to the benefits of all of the terms, benefits, covenants, conditions and restrictions contained in the Plan of Salishan Hills. Among other things, each unit owner shall enjoy the easements set forth in Section 2.3 and 2.4 thereof, will be required to pay the maintenance assessments for which provision is made in Section 5 thereof, will be subject to the fines and penalties for which provision is made in Section 9 and property owned by them will be subject to liens as provided in Section 9.

(b) All of the Property shall constitute private area for purposes of the Plan of Salishan Hills.

SECTION 3 – DECLARATION AS THE RESTRICTIONS ON USE OF PRIVATE AREAS AND COMMON AREAS WITHIN THE ISLAND

3.1 Declaration of Restrictions. All private areas and common areas, if any, within the Property are held and shall be held, conveyed, hypothecated, encumbered, used , occupied and improved only in accordance with the provisions made in this instrument and in the Plan of Salishan Hills.

3.2 Use and Occupancy of Private Areas. Each unit owner within the Property shall be entitled to the exclusive use and benefit of each unit owned by him, except as otherwise expressly provided herein and in the Plan of Salishan Hills. That portion of the private areas within the Property which will constitute general or limited common elements within the meaning of the Oregon Unit Ownership Law shall be so designated in the declaration filed pursuant to that law.

3.3 Provisions Affecting Construction and Alteration of Improvements in Private Areas. No person shall construct or reconstruct any improvement on any unit, make any excavation or fill on a unit, make any change in the natural or existing surface drainage of a unit or install a utility line, outside antenna or other outside wire on a unit unless such person has first obtained the consent thereto of the Design Committee. The restriction contained in this section applies to unit owners owning units within the Property, to any Association of Unit Owners which may be formed pursuant to the Oregon Unit Ownership Law, and the owners of any portion of the private area which is not a unit and which has not been subjected to the Oregon Unit Ownership Law.

3.4 General Provisions for and Restrictions on Use of Private Areas.

(a) Maintenance. The grounds of and improvements on each unit shall be maintained in a clean and attractive condition in good repair and in such fashion as not to create a fire hazard. In the event of a violation of this provision, the Administrator of Salishan Hills may correct such condition and charge the cost thereof to the owners of the property in violation. If such property is a common element within the meaning of the Oregon Ownership Law, the Administrator shall be entitled to charge the cost of correction either to the association of unit owners to be formed pursuant to the Oregon Unit Ownership Law or, in the alternative, may charge a pro rata portion of such costs to the unit owners to whom such common element pertains.

(b) Residential Use. No structures shall be placed upon the Property other than single or multiple family dwellings and related recreational, parking, or service structures.

(c) Appearance. All garbage, trash, cuttings, refuse, garbage and refuse containers, oil tanks, clothes lines and other service facilities, shall be screened from view from common areas and private ways in a manner approved by the Design Committee.

(d) Signs. No signs shall be placed or kept within the Property other than signs stating the name of the project, the name of the occupant of a unit and the address of the unit, except that in the event an owner wishes to advertise his unit for sale or lease he may do so provided that he shall use for that purpose a sign provided by or approved by the Administrator and placed at a location specified by the Administrator.

(e) Offensive Activities. No offensive activity shall be carried on in any unit or any other portion of the private area, nor shall anything be done or placed thereon which interferes with or jeopardizes the enjoyment of other units within the Property or within the portion of the private area within the Property which will not constitute part of a unit.

3.5 Uses Prohibited Without Design Committee Consent. Unless the consent of the Design Committee has first been obtained none of the following shall be done on any private area or common area within the Property:

(a) No trailer, truck camper, motor home, boat or boat trailer shall be parked or kept thereon except on a temporary basis.

(b) No exterior lighting or noise-making devices shall be installed or maintained.

(c) No trees, shrubs or other vegetation shall be removed and no trees, shrubs or other vegetation shall be planted thereon.

3.6 Uses Prohibited Without the Consent of the Administrator. Except with the consent of the Administrator of Salishan Hills, no private area or common area, if any, in the Property shall be used in any of the following ways:

(a) No trailer, truck camper, motor home, boat or boat trailer shall be placed or kept thereon for temporary periods of time.

(b) No animals of any kind shall be raised, kept or permitted other than a reasonable number of domestic household pets which are not kept, bred or raised for commercial purposes and which are reasonably controlled so as not to be a nuisance to other units. Pets will be subject to Rules and Regulations as provided for in the Plan of Salishan Hills.

(c) No commercial activities of any kind shall be carried on unless specific approval has been granted by the Administrator, except that this restriction shall not prevent operation of the Property for apartment or lodging rental purposes.

(d) No exterior fires shall be permitted other than barbecue or trash disposal fires contained within the receptacles therefore.

(e) The Administrator may make rules and regulations of general applicability governing the extent to which any of the foregoing shall be permitted and which shall be a part of the Salishan Hills Rules and Regulations.

SECTION 4 – DESIGN COMMITTEE CONSENT

In all cases in which Design Committee consent is required hereunder, the following provisions together with provisions contained in the Plan of Salishan Hills shall apply:

4.1 Work by Unit Owners. In case any unit owner wishes to do any work on his unit with respect to which Design Committee consent is required the unit owner shall submit to the Design Committee such plans and specifications for the proposed work as the Committee determines to be necessary to enable it to evaluate the proposal. The Design Committee shall render its decisions with respect to the proposal as quickly as is reasonably possible, but in no event later than seven days after it has received all material required by it with respect thereto.

4.2 Work by Owner of the Property or Association of Unit Owners. In case the owner of any portion of the Property other than a unit or in case any association of unit owners organized pursuant to the Oregon Unit Ownership Law shall desire to perform work within the Property for which Design Committee consent is required, such entity shall submit to the Design Committee such plans and specifications for the proposed work as the Committee determines to be necessary to enable it to evaluate the proposal. The Design Committee shall render its decision with respect to the proposal within 30 days after it has received all material required by it with respect thereto.

4.3 Design Committee Discretion. The Design Committee may in its sole discretion withhold consent to any proposed work if the Committee finds that the proposed work would be inappropriate for the particular unit or incompatible with the high design standards that Developer intends for Salishan Hills. Considerations such as siting, shape, size, color, design, height, impairment of the view from other parcels with Salishan Hills or other effect on the enjoyment of other parcels or common areas, disturbance of existing terrain and vegetation, and any other factors which the Design Committee reasonably believes to be relevant may be taken into account by the Committee in determining whether or not to consent to any proposed work. The Salishan Planned Development is exempt from Lincoln County yard setback requirements by a variance granted June 22, 1970. The Design Committee for Salishan Hills shall be the governing body.

4.4 Design Committee’s Failure to Act. In the event the Design Committee fails to render its decision with respect to any proposed work within the time limits set forth above, the Committee shall conclusively be deemed to have consented to the proposal.

4.5 Effective Period of Consent. Design Committee consent to any proposed work shall automatically be revoked one year after issuance unless construction of the work has been commenced or the applicant has applied for and received an extension of time from the Design Committee.

SECTION 5 – MISCELLANEOUS

5.1 Amendment and Repeal. With consent of the Administrator or Salishan Hills any provisions of this declaration may at any time be amended or repealed or provisions may be added by any of the following methods:

a) Until such time or a declaration submitting a portion of the Property to the Oregon Unit Ownership Law has been recorded, by filing in the Records of Deeds of Lincoln County, Oregon, of a certificate executed by Developer setting forth in full the amendment, provision for repeal, or proposed additional provision or while Developer retains the beneficial ownership of 50 percent or more of the units within The Island, by written consent of unit owners owning 75 percent of the units within The Island, or

(b) Unit owners owning 75 percent of the units within Salishan Hills may consent in writing to the amendment or repeal of a provision or to the addition of new provisions, or

(c) Any association organized for Salishan Hills may consent to such amendment, repeal, or addition.

The association shall be deemed to have consented to the amendment or repeal of a provision contained in this Salishan Hills Declaration or to the addition of a new provision if the following procedure shall have been followed:

(1) The board of directors of the association shall have adopted a resolution setting forth the proposed amendment, provision for repeal or proposed additional provision and directing that it be submitted to a vote at a meeting of the members, which may be either an annual or a special meeting.

(2) Written notice setting forth the proposed amendment, provision for repeal or proposed additional provision, or a summary of the changes to be effected thereby, shall be given to each unit owner within Salishan Hills at least 60 days prior to the time of the meeting at which the proposed amendment, provision for repeal or proposed additional provision is to be considered.

(3) At the meeting of the members at which the proposed amendment, provision for repeal or proposed additional provision is to be considered, the proposed amendment, provision for repeal or proposed additional provision shall be submitted to a vote of the members. The proposed amendment, provision for repeal or proposed additional provision shall be adopted upon receiving two-thirds of the votes entitled to be cast by all of the members of the association.

No areas designated as common areas may be alienated by the association without the approval of all holders of mortgages or trust deeds in units within Salishan Hills.

Any amendment or repeal of a provision of this declaration or additional provision shall become effective only upon the filing in the Records of Deeds of Lincoln County, Oregon, of a certificate of the president, secretary or assistant secretary of the Administrator of Salishan Hills setting forth in full the amendment, amendments, additional provision or repeal approved as provided in this Section and certifying that said amendment, amendments, additional provision or repeal have been approved in the manner required therefore herein.

5.2 Duration. The covenants and provisions contained herein shall run with the land affected thereby and shall be and remain in full force and effect at all times with respect to all property included within The Island, and the unit owners thereof for an initial period of 45 years commencing April 13, 1976. Thereafter, such provisions and covenants shall continue to run with the land and be and remain in full force and effect at all times with respect to the property and the unit owners thereof for successive additional periods of ten years each. The continuation from the initial or any additional period into the next subsequent period shall be automatic and without the necessity of any notice or consent whatever, provided, however, that such provisions and covenants may be terminated at the end of the initial or any additional period by the method provided in Section 6.1 of the amendment, repeal or addition of a provision to this declaration. Any such termination shall become effective upon filing in the Records of Deeds of Lincoln County, Oregon, of a certificate of the president, secretary or assistant secretary of the Administrator of Salishan Hills certifying that termination as of a specified termination date has been approved in the manner required therefore herein not less than one year prior to the intended termination date.

5.3 Construction, Severability, Number, Captions. This declaration shall be construed as an entire document to accomplish the purposes stated in the introductory paragraphs of this Declaration.

Nevertheless, each provision of this declaration shall be deemed independent and severable, and the invalidity or partial invalidity of any provision shall not affect the validity or enforceability of the remaining part of that or any other provision.

As used herein the singular shall include the plural, and plural the singular. The masculine and neuter shall each include the masculine, feminine and neuter, as the context requires. All captions used herein are intended solely for convenience of reference and shall in no way limit any of the provisions of this declaration.

IN WITNESS WHEREOF, Salishan Hills, Inc. has executed this declaration this 31st day of October 1978.

On this 31st day of October, 1978, personally appeared JOHN D. GRAY, who, being duly sworn, did say that he is the President of Salishan Hills, Inc., and that the seal affixed to the foregoing instrument is the corporate seal of said corporation and that said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and he acknowledged said instrument to be its voluntary act and deed.

DECLARATION SUBMITTING THE ISLAND
TO OREGON UNIT OWNERSHIP LAW

THIS DECLARATION, pursuant to the provisions of the Oregon Unit Ownership Law, is made and executed this 28th day of April, 1979, by SALISHAN HILLS, INC., an Oregon corporation, hereinafter called “Developer.”

Developer proposes to create a condominium to be known as The Island, which will be located in Salishan Hills, Lincoln County, Oregon. The purpose of this declaration is to submit The Island to the condominium form of ownership and use in the manner provided by the Oregon Unit Ownership Law.

NOW, THEREFORE, Developer does hereby declare and provide as follows:

1. DEFINITIONS. When used herein the following terms shall have the following meanings:

1.1 “Bylaws” means the Bylaws of the Association of Unit Owners of the Island adopted pursuant to Section 12 below as the same may be amended from time to time.
1.2 “Developer” means Salishan Hills, Inc., an Oregon corporation, and its successors and assigns.
1.3 “Plan of Salishan Hills” means that instrument dated January 17, 1976, recorded January 28, 1978, in Book 62 of the Records of Deeds of Lincoln County, Oregon at page 309.
1.4 “Plans” means the plat or site plan and floor plans of the Island, recorded simultaneously with the recording of this declaration.
1.5 “Salishan Hills Declaration Subjecting The Island to the Plan of Salishan Hills” means that instrument dated October 31, 1978 and recorded November 1, 1978 in Book 94 of the Records of Deeds of Lincoln County, Oregon, at page 93.
1.6 Incorporation by Reference. Except as otherwise provided in this declaration, each of the terms defined in ORS 91.500, a part of the Oregon Unit Ownership Law, shall have the meanings set forth in such section, and each of the terms defined in Section 1 of the Salishan Hills Declaration Subjecting The Island to the Plan of Salishan Hills shall have the meanings set forth in such Section 1.

2. PROPERTY SUBMITTED. The property submitted to the Oregon Unit Ownership Law hereunder is held by Developer and conveyed by it in fee simple estate. The land submitted hereunder is located in Salishan Hills, Lincoln County, Oregon, and is more particularly described in Exhibit A attached hereto. Such property includes the land so described, all buildings, improvements and structures thereon, and all personal property used in connection therewith. Upon the filing of this declaration, each unit owner will be entitled to certain nonexclusive easements within Salishan Hills as provided in the Plan of Salishan Hills and the Salishan Hills Declaration Subjecting The Island to the Plan of Salishan Hills. In addition, each unit owner will be entitled to certain easement rights under an agreement dated January17, 1976 between Salishan Properties, Inc., Salishan Leaseholders, Inc., and JOHN D. GRAY, RECORDED January 19, 1976 in Book 61 of the Records of Deeds of Lincoln County, Oregon at page 1981; an agreement and joint use agreement dated January 23, 1976 between John D. Gray and Salishan Hills, Inc., recorded April 13, 1976 in Book 63 of such records at page 1902 (as amended); an easement and joint use agreement dated March 10, 1976 between Salishan Properties, Inc. and Salishan Hills, Inc., recorded April 13, 1976 in Book 63 of such records at page 1913.

3. NAME. The name by which the property submitted hereunder shall be known is “The Island.”

4. UNITS.

4.1 General description of Buildings. The property contains 11 buildings of dwelling units. Each of the buildings is two stories without basement. The buildings are of wood frame, pole and concrete foundation with wood siding.
4.2 General description, location and Designation of Units. The property consists of a total of 23 units. The dimensions, designation and location of each unit is shown in the plans filed simultaneously herewith and made a part of this declaration as if fully set forth herein. The approximate area of each unit is shown on Exhibit B, attached hereto and made a part hereof.
4.3 Boundaries of Units. Each unit shall be bounded by the interior surfaces of its perimeter and bearing walls, floors, ceilings, windows and window frames, doors and door frames, and trim, and shall include both the interior surfaces so described and the air space so encompassed. In addition, each unit shall include the outlet of any utility service line, including water, sewerage, gas or electricity, and ventilating ducts, within the unit, but shall not include any part of such lines or ducts themselves.

5. GENERAL COMMON ELEMENTS. Each unit will be entitled to a percentage ownership interest in the general common elements determined by the ratio by which the approximate area of the particular unit bears to the total approximate area of all units combined, as shown on Exhibit C, attached hereto and made a part hereof. The general common elements consist of the following:

5.1 The land, pathways, driveways, fences, grounds, garage structures and parking areas, except parking spaces within garages, which are designated as limited common elements by Section 6 below.
5.2 Pipes, ducts, flues, chutes, conduits, wires and other utility installations to their outlets.
5.3 Roofs, foundations, bearing walls, perimeter walls, beams, columns and girders to the interior surfaces thereof.
5.4 The exterior surfaces of porches, fences and decks.
5.5 All other elements of the buildings and the property necessary or convenient to their existence, maintenance and safety, or normally in common use, except as may be expressly designated herein as part of a unit or a limited common element.

6. LIMITED COMMON ELEMENTS. The following shall constitute limited common elements, the use of which shall be restricted to the units to which they pertain:

6.1 All porches, courts and decks, except for the outside exterior surfaces thereof, each of which shall pertain to the unit which it adjoins.
6.2 Parking spaces within garage structures, each of which shall pertain to the unit whose number it bears in the Plans; provided, however, that any such parking space may be transferred so as to pertain to a different unit by any amendment to this declaration executed by the owner and any mortgagee of the unit to which the parking space previously pertained and by the owner of the unit to which the space is being transferred. Such transfer shall be effective upon the filing of such amendment in the Records of Deeds of Lincoln County, Oregon.

7. USE OF PROPERTY. Each unit is to be used for residential or lodging purposes as described in the Bylaws. Additional limitations on use are contained in the Plan of Salishan Hills, the Salishan Hills Declaration Subjecting The Island to the Plan of Salishan Hills, the Bylaws and the rules and regulations adopted pursuant to the Bylaws. Each unit owner shall be bound by each of the terms, conditions, limitations and provisions contained in such documents.

8. COMMON PROFITS AND EXPENSES; VOTING.

8.1 The common profits derived from and the common expenses of the common elements shall be distributed and charged to the owner of each unit according to the percentage of undivided interest of such unit in the general common elements.
8.2 Each unit owner shall be entitled to a vote in the affairs of the association of unit owners equal to his percentage of undivided interest in the general common elements for each unit owned by him.

9. SERVICE OF PROCESS. The name of the person to receive service of process in cases provided in subsection (1) or ORS 91.578 is Willard Schwarz and his place of residence within Lincoln County, Oregon, is Lot 487, Salishan Hills Drive, Gleneden Beach, Oregon 97388.

10. ENCROACHMENTS. If any portion of the common elements now encroaches upon any unit, or if any unit now encroaches upon any other unit or upon any portion of the common elements, as a result of the construction of any building, or if any such encroachment shall occur hereafter as a result of settling or shifting of any building, a valid easement for the encroachment and the maintenance of the same so long as the building stands, shall exist. In the event any building, unit, adjoining unit, or adjoining common element, shall be partially or totally destroyed as a result of fire or other casualty or as a result of condemnation or eminent domain proceedings, and then rebuilt, encroachments of parts of the common elements upon any unit or of any unit upon other unit or upon any portion of the common elements, due to such rebuilding, shall be permitted, and valid easements for such encroachments and the maintenance thereof shall exist so long as the building shall stand.

11. APPROVAL BY MORTGAGEES. In addition to any other approvals required by the Oregon Unit Ownership Law, this declaration or the bylaws of the Association of Unit Owners, the prior written approval of 75 percent of the holders of first mortgages or beneficiaries of first deeds of trust on units in the condominium (based upon one vote for each first mortgage or deed of trust owned) must be obtained for the following:

11.1 Abandonment or termination of the condominium regime;

11.2 Any change in the prorata interest or obligations of any individual unit for (a) purpose of levying assessments or charges or allocating distributions of hazard insurance proceeds or condemnation awards, or (b) determining the prorata share of ownership of each unit in the common elements, except as provided in Section 6.2;
11.3 The partition or subdivision of any unit;

11.4 Abandonment, partition, subdivision, encumbrance, sale or transfer of the common elements. The granting of easements for public utilities or for other public purposes consistent with the intended use of the common elements by the condominium project shall not be deemed a transfer within the meaning of this clause; or
11.5 Use of hazard insurance proceeds for losses to any condominium property, whether to units or to common elements, for other than the repair, replacement or reconstruction of such improvements, except as provided by statue in cases of substantial loss to the units and/or common elements of the condominium project.

12. ADOPTION OF BYLAWS, APPOINTMENT OF INTERIM BOARD, AND DESIGNATION OF MANAGER. Upon the execution and the filing of this declaration, the Developer shall adopt bylaws for the Association of Unit Owners of the Island, which bylaws are attached hereto as Exhibit D and are filed simultaneously herewith. At the same time, Developer will appoint an interim board of directors of the Association, which directors shall serve until their successors have been elected as provided in the bylaws. Such interim board of directors may appoint a manager or managing agent for the condominium on behalf of the Association of Unit Owners, and such manager or managing agent shall have complete authority to assume full control and responsibility for the management, operation and maintenance of the condominium from the date of its formation at the expense of the Association.

14. AMENDMENT.

14.1 Approval Required. Except as may otherwise be provided in this declaration or by the Oregon Unit Ownership Law, this declaration may be amended if such amendment is approved by 75 percent of the voting power of the unit owners. Developer’s prior written consent shall also be required so long as Developer owns any unit in the condominium, but no such consent shall be required after two years after the date of recording of this declaration. No amendment may change the size, location, percentage interest in the general common elements, share of common profits or expenses, or voting power by the owners of the affected unit and the holders of any mortgage or trust deed on such unit. Section 11 may not be amended without the written consent of all holders of first mortgages and beneficiaries of first deeds of trust on units in the condominium.
14.2 Recordation. The amendment shall be effective upon recordation of the declaration as amended or of the amendment thereto, certified to by the chairman and secretary of the Association and approved by the county assessor and the Real Estate Commissioner, in the Deed Records of Lincoln County.

15. SEVERABILITY. The determination of invalidity, by any court, of any provisions or restrictions imposed by this declaration or the Bylaws, or of any provisions or restrictions thereof, or of any part of such restriction or provision, shall not impair or effect in any manner the validity, enforceability or effect the rest of this declaration or the Bylaws, and all of the terms thereof shall be severable.

IN WITNESS WHEREOF, Developer has caused this declaration to be executed this 28th day of April, 1979.