WILLIAMSTOWN FUTURE RESIDENTS INFORMATION & ACKNOWLEDGEMENT
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1 WILLIAMSTOWN FUTURE RESIDENTS INFORMATION & ACKNOWLEDGEMENT Description and Development of Williamstown Lands Williamstown is the new residential community being developed by Vesta Properties (Williamstown) Ltd. ( Vesta ) in the City of Airdrie (the City ). Williamstown is located within the North West Airdrie Area Structure Plan ( the Community Plan ) and the Williamstown Neighbourhood Structure Plan ( the Neighbourhood Plan ), as approved by the City. The Neighbourhood Plan contains 160 acres of land, and is as shown in Schedule A attached hereto (hereafter called the Neighbourhood Plan Lands ). Vesta currently owns all of the Neighbourhood Plan Lands. It is presently anticipated that, once fully complete, Williamstown will contain approximately 1,013 residential units (including both single-family and multi-family residential lots). The development of Williamstown over the next year will be concentrated on Phases 1 and 2, as outlined in Schedule A attached hereto. Please note that all information contained in this document is based on Vesta s current plans for the development of Williamstown and is subject to change as determined by Vesta in its sole and unfettered discretion and pursuant to requirements of the City. Vesta will use commercially reasonable efforts to carry out its commitments as outlined in this document, however, its ability to do so and the timing of their completion are subject to receiving all required governmental and City approvals, and any events beyond Vesta s reasonable control which may delay such completion. Williamstown Amenities In the course of constructing and developing Williamstown, Vesta will be including certain amenities that are above and beyond the City s requirements, which are determined by Vesta as necessary to complement Williamstown s overall development concept and to clearly distinguish it from other communities in the City (the Williamstown Amenities ). The Williamstown Amenities may include community entranceway features, parks, tot lots, playgrounds and such other amenities situated on public and private lands as Vesta may determine in the course of developing Williamstown. Some of the Williamstown Amenities may be operated by a private residents association for the lasting benefit of all residents of Williamstown. Certain other of the Williamstown Amenities may be developed on land to be transferred to a residents association to be owned and operated for the benefit of the residents of Williamstown. In the future, it is anticipated that the residents and other owners of land within Williamstown may wish to create further amenities or improvements for the benefit of Williamstown and its residents (in addition to the Williamstown Amenities), but unless it agrees otherwise, Vesta shall have no responsibility for the development or operation of any of these such further amenities or improvements.
2 Williamstown Residents Association Vesta has incorporated the Williamstown Residents Association (the Association ), which will be responsible for the maintenance of certain Williamstown Amenities, and in some cases, ownership of these amenities. The owners of single-family and multi-family residential lots (including condominium units) multifamily rental projects, and commercial developments within Williamstown, are all automatically members of, and are required to remain members of the Association and will be responsible for the timely payment of membership fees to the Association as required. Membership and other matters relating to the Association are more fully described in the bylaws of the Association, a copy of which is attached hereto as Schedule B. The Association will assume responsibility for the Williamstown Amenities, if any, and, if the Association so wishes, for the enhanced maintenance of certain publicly owned lands within Williamstown, including, but not limited to, public parks and boulevards. This may include arrangements with the City or others relating to such maintenance. The management, and where applicable, the ownership of the Williamstown Amenities will be transferred to the Association as described in the by-laws attached hereto as Schedule B. The Association will also provide certain financial and administrative services including the collection of fees from the residents of Williamstown. These fees are necessary to fund the operations of the Association and the maintenance and operation of the amenities. The operations of the Association may be expanded to include other functions which are of common benefit to members. The Association s minimum maintenance and indemnity obligations in respect of that part of the Williamstown Amenities located on public lands to be transferred to the City may be the subject of agreements to be concluded between the City and Vesta, which will be assumed by the Association at Vesta s direction. Operation of the Williamstown Residents Association by Vesta Until the Effective Date, Vesta will be the only voting member of the Association, and as such, will provide direction and management for the Association until such time. The Effective Date is defined as the later of the date on which Vesta has sold its last lands in Williamstown or the date upon which the Association has repaid any loans owing to Vesta. At the Effective Date, Vesta intends to transfer the overall management of the Association and the operation of the Williamstown Amenities to the Association. As long as Vesta is managing the Association, there shall be an operating budget sufficient to allow for its proper operation as determined in the sole opinion of Vesta, and if such operating budget is not fully funded, Vesta agrees to loan sufficient funds to the Association, on normal commercial terms, in order to meet such budgeted expenses. Any income available to the Association in excess of its actual operating expenses will be used by it to repay any outstanding loans made to it by Vesta. Vesta will operate, maintain and manage the Williamstown Amenities until it has fully transferred the overall management of the Association. As set forth in the Williamstown Management Agreement, Vesta shall be entitled to retain agents for the administration, operation and overall management of the Association and the Williamstown Amenities. Except for reimbursement for
3 its direct costs and out of pocket expenses, Vesta will not be entitled to any fees for such operation and management. Williamstown Residents Association Rent Charge - Encumbrances In order to pay for the operations of the Association, including the operation and maintenance of the Williamstown Amenities, Vesta will arrange to have the title of each single family and multi-family residential lot, rental project, condominium unit, and commercial development in Williamstown to be made subject to an encumbrance in favour of the Association to secure the payment of a rent charge to the Association, which encumbrance will generally be in the form contained in the Williamstown Residents Association By-Laws attached hereto as Schedule B (the Encumbrance ). In the case of residential lots and rental and condominium units within Williamstown, the amount of the rent charge under such Encumbrance for each such lot or unit shall be: FIFTY DOLLARS ($50.00) per year for single-family residences, subject to adjustments for inflation as provided in the Encumbrance; and THIRTY-FIVE DOLLARS ($35.00) per year for all other dwelling units, subject to adjustments for inflation as provided in the Encumbrance. In the case of any commercial developments in Williamstown, the amount of such Encumbrance shall be calculated on the basis of: FIFTY DOLLARS ($50.00) per year for each 1/15 th of an acre of developable commercial land, subject to adjustments for inflation as provided in the Encumbrance. Acknowledgement by Purchaser of Land in Williamstown The undersigned acknowledges and is aware that Vesta has undertaken the full responsibility for the design, engineering, development and construction of and the initial management of the Williamstown Amenities, and the initial overall management and operation of the Association, and Vesta has the complete and unfettered right and authority from the Association to carry out such responsibilities in such matter as it sees fit. The undersigned acknowledges that the Association has instructed its officers and directors to cooperate fully with Vesta and has relieved its officers of any responsibility to investigate or to determine whether or not Vesta is properly carrying out its obligations as set out above. The undersigned, as a future member of the Association, acknowledges and unanimously agrees with all other members or future members that, it is intended and he or she agrees that the officers and directors of the Association should fully cooperate with Vesta and that all of their rights, duties and obligations that conflict with Vesta s rights as set out in the Williamstown Management Agreement, or any other agreement with Vesta, are and have been suspended during the period of Vesta s initial operation of the Association, including the period of development, planning, construction and initial operation of the Williamstown Amenities, except to the extent required in order for them to carry out such cooperation. The undersigned acknowledges and agrees that no member of the Association or any property owner shall have any person or legal interest in the Williamstown Amenities or in any part thereof
4 or to the proceeds of the said Encumbrances other than as a member of the Association, and that a member s rights to membership in the Association are non-transferable and only take effect and remain enforceable for so long as he or she remains an owner or tenant of such residential lot or condominium unit, or owner of such a rental project or commercial development, which is located in Williamstown. The undersigned agrees to require any purchaser or transferee of the undersigned s lands in Williamstown to assume all the undersigned s obligations under this document and to execute in favour of the Association an Encumbrance (in like form as contained in the by-laws attached as Schedule B hereto), as a condition to any such purchase or transfer. This document and the Schedules hereto constitute the entire agreement and understanding between Vesta and the undersigned regarding the Association and the Williamstown Amenities, and no representations, warranties, covenants or promises have been made by Vesta except those herein expressly contained. The undersigned is the purchaser of: Lot, Block, Plan in Williamstown against which the Encumbrance is or will be registered, and the undersigned agrees to pay FIFTY DOLLARS ($50.00) per year for single family residences or THIRTY-FIVE DOLLARS ($35.00) per year for all other dwelling units or FIFTY DOLLARS ($50.00) per year on commercial developments for each 1/15 th of an acre of developable commercial land, plus the adjustment amount, subject to adjustments for inflation as provided in the Encumbrance or such other fee as may be charged by the Association in accordance with the provision of the Association s by-laws. The undersigned hereby irrevocably appoints the Association as his or her attorney on his or her behalf and for the Association s use and benefit, to execute and deliver a new rent charge Encumbrance generally in the form as contained in the by-laws attached hereto as Schedule B in the event that a previous encumbrance has been foreclosed off or otherwise removed from the title to the undersigned s lot. As Purchaser(s) of the above lot, the undersigned acknowledges that it has read this document in its entirety and all of the attachments hereto and agrees to all terms and conditions of same. Signed by the Purchaser(s) of the above specified lot. Signed in the presence of ) ) ) this day of,. ) ) ) ) ) ) Print name(s) of the Purchaser(s) Print Name of Witness
5 SCHEDULE A OUTLINE OF SUBDIVISION
6 SCHEDULE "B" WILLIAMSTOWN RESIDENTS ASSOCIATION BY-LAWS [See Attached]
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