SW8060847_Current Permit_20061016 (2)

W A Tf RQG
J
October 16, 2006
Mr. Ronald K. Jessup II, Manager
MRS Properties, LLC
P.O. Box 15730
Wilmington, NC 28408
Subject: S.tormwater Permit No. SW8 060847
Tidelands on the River
Low Density Subdivision Permit
New Hanover County
Dear Mr. Jessup:
Michael F. Easley, Governor
William G. Ross Jr., Secretary
North Carolina Department of Environment and Natural Resources
Alan W. Klimek, P.E. Director
Division of Water Quality
The Wilmington Regional Office received a complete Stormwater Management Permit
Application for Tidelands on the River on September 20, 2006. Staff review of the plans and
specifications has determined that the prot1ect, as proposed, will comply with the Stormwater
Regulations set forth in Title 15A NCAC 2H.1000. We are forwarding Permit No. SW8 060847
dated October 16, 2006, for the construction of the subject project.
This permit shall be effective from the date of issuance until rescinded and shall be subject to
the conditions and limitations as specified therein, and does not supercede any other agency
permit that may be required.
If any parts, requirements, or limitations contained in this permit are unacceptable, you have
the right to request an adjudicatory hearing upon written request within sixty (60) days
following receipt of this permit. This request must be in the form of a written petition,
conforming to Chapter 150B of the North Carolina General Statutes, and filed with the Office of
Administrative Hearings, P.O. Drawer 27447, Raleigh, NC 27611-7447. Unless such demands
are made this permit shall be final and binding.
If you have any questions, or need additional information concerning this matter, please
contact either Paul Bartlett or me at [phone].
Sin�cy,
�-,
Eirw rjMe
Regional Supervisor
Surface Water Protection Section
ENB/ptb: S:IWQSISTORMWATERIPERMIT1060847.oct06
cc: Jeff Malpass, P.E., Malpass Engineering., P.C.
Tonyy Roberts, New Hanover County Building Inspections
NCDOT Division 3, District 3 Engineer
Beth E. Wetherill, New Hanover County Engineering
Paul T. Bartlett, P.E.
Wilmington Regional Office
Central Files
O
Nprt l
Caro ina
Nawrallry
North Carolina Division of Water Quality 127 Cardinal Drive Extension Wilmington, NC 28405 Phone [phone] Customer Service
Wilmington Regional Office Internet: www.ncwaterquality.org Fax [phone]
An Equal Opportunity/Affirmative Action Employer— 50% Recyciedl10% Post Consumer Paper

State Stormwater Management Systems
Permit No.SW8 060847
STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER QUALITY
STATE STORMWATER MANAGEMENT PERMIT
LOW DENSITY DEVELOPMENT
In accordance with the provisions of Article.21 of Chapter 143, General Statutes of
North Carolina as amended, and other applicable Laws, Rules and Regulations
PERMISSION IS HEREBY GRANTED TO
Ronald K. Jessup 11 and MRS Properties, LLC
Tidelands on the River
New Hanover County
FOR THE
construction, operation and maintenance of a 30% low density subdivision in
compliance with the provisions of 15A NCAC 2H .1000 (hereafter referred to as the
"stormwater rules') and the approved stormwater management plans and
specifications, and other supporting data as attached and on file with and approved by
the Division of Water Quality and considered a part of this permit.
The Permit shall be effective from the date of issuance until rescinded and shall be
subject to the following specific conditions and limitations:
I. DESIGN STANDARDS
1. Each of the 4 lots is limited to a maximum of 15328 (part Tract 5), 4759 (Lot 6 &
part Tract 5), 4628 (Lot 7) and 5534 (Lot 8) square feet of built -upon area, as
indicated in the approved plans. CAMA regulations may reduce the allowable
built -upon area for those lots within the AEC.
2. The overall tract built -upon area percentage for the project must be maintained
at 30% per the requirements of Section .1005 of the stormwater rules.
3. Approved plans and specifications for projects covered by this permit are
incorporated by reference and are enforceable parts of the permit..
4. Projects covered by this.permit will maintain a minimum 30 foot wide vegetative
buffer between all impervious areas and surface waters.
5. The only runoff conveyance systems allowed will be vegetated conveyances
such as swales with minimum side slopes of 3:1 (H:V) as defined in the
stormwater rules and approved by the Division.
6. All roof drains must terminate at least 30' from the mean high water mark.
Page 2 of 5

State Stormwater Management Systems
Permit No.SW8 060847
11. SCHEDULE OF COMPLIANCE
Swales and other vegetated conveyances shall be constructed in their entirety,
vegetated, and be operational for their intended use prior to the construction of
any built -upon surface.
2. During construction, erosion shall be kept to a minimum and any eroded areas of
the swales or other vegetated conveyances will be repaired immediately.
3. The permittee shall at all times provide the operation and maintenance
necessary to operate the permitted stormwater management systems at
optimum efficiency to include:
a. Inspections
b. Sediment removal.
C. Mowing, and revegetating of the side slopes.
d. Immediate repair of eroded areas.
e. Maintenance of side slopes in accordance with approved plans and
specifications.
4. The permittee shall submit to the Director and shall have received approval for
revised plans, specifications, and calculations prior to construction, for any
modification to the approved plans, including, but not limited to, those listed
below:
a. Any revision to any of the items shown on the approved plans, including
the stormwater management system, design concept, built -upon area,
details, etc-
b. Project name change.
C. Transfer of ownership.
d. Redesign or addition to the approved amount of built -upon area or to the
drainage area.
e. Further subdivision, acquisition, or selling of the project area.
f. Filling in, altering or piping any vegetative conveyance shown on the
approved plan. .
5. The Director may determine that other revisions to the project should require a
modification to the permit.
6. The permittee shall submit all information requested by the Director or his
representative within the time frame specified in the written information request.
7. No piping shall be allowed except that minimum amount necessary to direct
runoff beneath an impervious surface such as a road and that minimum amount
needed under driveways to provide access to lots.
8. Unless specified elsewhere, permanent seeding requirements for the swales
must follow the guidelines established in the North Carolina Erosion and
Sediment Control Planning and Design Manual.
9. The permittee is responsible for verifying that the proposed built -upon area does
not exceed the allowable built -upon area. Once the lot transfer is complete, the
built -upon area may not be revised without approval from the Division of Water
Quality, and responsibility for meeting the built -upon area limit is transferred to
the individual property owner, provided that the permittee complies with the
requirements of Section 11.11 of this permit.
10. Within 30 days of completion of the project, the permittee must certify in writing
that the proj'ect's stormwater controls, and impervious surfaces have been
constructed within substantial intent of the approved plans and specifications.
Any deviation from the approved plans must be noted on the Certification.
Page 3 of 5

State Stormwater Management Systems
Permit No.SW8 060847
11. Deed restrictions are incorporated into this permit by reference and must be
recorded with the Office of the Register of Deeds prior to the sale of any lot.
Recorded deed restrictions must include, as a minimum, the following
statements related to stormwater management:
a. The following covenants are intended to ensure ongoingg compliance with
State Stormwater Management Permit Number SW8 060847, as issued
by the Division of Water Quality under NLAC 2H.1000.
b. The State of North Carolina is made a beneficiary of these covenants to
the extent necessary to maintain compliance with the Stormwater
Management Permit.
C. These covenants are to run with the land and be binding on all persons
and parties claiming under them.
d. The covenants pertaining to stormwater may not be altered or rescinded
without the express written consent of the State of North Carolina,
Division of Water Quality.
e. Alteration of the drainage as shown on the approved plans may not take
place without the concurrence of the Division of Water Quality.
The maximum built -upon area per lot in square feet is 15328 (part Tract
5), 4759 (Lot 6 & part Tract 5), 4628 (Lot 7) and 5534 (Lot 8). This allotted
amount includes any built -upon area constructed within the lot property
boundaries, and that portion of the right-of-way between the front lot line
and the edge of the pavement. Built upon area includes, but is not limited
to, structures, asphalt, concrete, gravel, brick, stone, slate, and coquina,
but does not include raised, open wood decking, or the water surface of
swimming pools.
g. Filling in or piping of any, vegetative conveyances (ditches, swales, etc.)
associated with the development except for average driveway crossings,
is strictly prohibited by any persons.
h. Each lot will maintain a 30' wide vegetated buffer between all impervious
areas and surface waters.
i. All roof drains shall terminate at least 30' from the mean high water mark.
12. The permittee shall submit a copy of the recorded deed restrictions within 30
days of the date of recording.
13. If the permittee sets up an Architectural Review Committee (ARC) to review
plans for compliance with the restrictions, the plans reviewed must include all
proposed built -upon area (BUA). Any approvals given by the ARC do not relieve
the lot owner of the responsibility to maintain compliance with the permitted BUA
limit.
14. The Director may notify the permittee when the permitted site does not meet one
or more of the minimum requirements of the permit. Within the time frame
specified in the notice, the permittee shall submit a written time schedule to the
Director for modifying the site to meet minimum requirements. The permittee
shall provide copies of revised plans and certification in writing to the Director
that the changes have been made.
15. Stormwater conveyances will be located in either dedicated right-of-way (public
or private), recorded common areas or recorded drainage easements. The final
plats for the project will be recorded showing all such required easements, in
accordance with the approved plans.
Page 4 of 5

State Stormwater Management Systems
Permit No.SW8 060847
III. GENERAL CONDITIONS
Failure to abide by the conditions and limitations contained in this permit may
subject the Permittee to an enforcement action by the Division of Water Qualityy,
in accordance with North Carolina General Statutes 143-215.6A to 143-215.6C.
2. The permit issued shall continue in force and effect until revoked or terminated.
3. The permit may be modified, revoked and reissued or terminated for cause. The
filing of a request for a permit modification, revocation and reissuance; or
termination does not stay any permit condition.
4. The issuance of this permit does not prohibit the Director from reopening and
modifying the permit, revoking and reissuing the permit, or terminating the permit
as allowed by the laws, rules, and regulations contained in Title 15A of the North
Carolina Administrative Code, Subchapter 2H.1000; and North Carolina General
Statute 143-215.1 et. al.
5. The permit is not transferable to any person or entity except after notice to and
approval by the Director. The Director may require modification or revocation and
reissuance of the permit to change the name and incorporate such other
requirements as may be necessary. A formal permit request must be submitted
to the Division of Water Quality accompanied by the appropriate fee,
documentation from both parties involved, and other supporting materials as may
be appropriate. The approval of this request will be considered on its merits, and
may or may not be approved.
6. The permittee is responsible for compliance with all permit conditions until such
time as the Division approves the permit transfer request. Transfers to third
parties by the permittee where the required documentation has not been
submitted to the Division does not relieve the permittee of responsibility for
transferring the permit.
7. The issuance of this permit does not preclude the Permittee from complying with
any and all statutes, rules, regulations, or ordinances which may be imposed by
other government agencies (local, state and federal) which have jurisdiction. If
any of those permits result in revisions to the plans, a permit modification must
be submitted.
8. The permittee grants permission to DENR Staff to enter the property during
business hours for the purposes of inspecting the stormwater management
system and it's components.
9. The permittee shall notify the Division of Water Quality of any name, ownership
or mailing address changes within 30 days.
Permit issued thisAhe 16th day of October 2006.
N H CAROLIP NV ONMENTAL MANAGEMENT COMMISSION
for Alan W. Klimek, P.E., Director
Division of Water Quality
By Authority of the Environmental Management Commission
Page 5 of 5

State of North Carolina
Department of Environment and Natural Resources
Division .of Water Quality
STORMWATER MANAGEMENT PERMIT APPLICATION FORM
This form may be photocopied for use as an original
I. GENERAL INFORMATION
1. Applicants name (specify the name of the corporation, individual, etc. who owns the project):
MRS Praoe�i;e , LLC
2. Print Owner/Signing Official's name and title (person legally responsible for facility and compliance):
r I 1 1. ._
3. Mailing Address for person listed in item 2 above:
?A Box 15730
City: W"lln-fichn State: NC Zip: 22408
Telephone Number: ( q10 ) 459 — 1495
4. Project Name (subdivision, facility, or establishment name - should be consistent with project name on
plans, specifications, letters, operation and maintenance agreements, etc.):
TidelghL on Ae ftiver
5. Location of Project (street address):
72-36 %yer �ea�
-City: W-1h►lTtIfin County: Ne&- iianer$r
6. Directions to project (from nearest major i
firer► Af- i4etsec+ion of US -117 (Sh
$ M.
+ V-421 (Caroling &A 1W) i"Vel 54A an V-411
�wVw + tmytl appm IJM es Turh Pi-16 oh RVef lu +
0 51 52 -'1 fin+ral etppwo, e,1
7. Latitude: 3 y Longitude: 77v 5S� 0 of project
8. Contact person who can answer questions about the project:
Name: Jeq A41, SS Telephone Number: (_gio ) 3q2—S243
H. PERMIT INFORMATION:
1. Specify whether project is (check one): V New Renewal Modification
Form SWU-101 Version 3.99 Page 1 of 4 J `���
11,, 2006,

2. If this application is being submitted as the result of a renewal or modification to an existing permit, list the
existing permit number and its issue date (if known)
3. Specify the type of project (check one):=' • `v�3 {rl?
Low Density High Density Redevelop General Permit Other
4. Additional Project Requirements (check applicable blanks):
_CAMA Major ✓ Sedimentation/Erosion Control 1404/401 Permit _NPDES Stormwater
Information on required state permits can be obtained by contacting the Customer Service Center at
1-877-623-6745.
III. PROJECT INFORMATION
1. In the space provided below, summarize how stormwater will be treated. Also attach a detailed narrative
(one to two pages) describing stormwater management for the project.
-%pnwafer M11 bt—JitAW 6y s eel- how,
2. Stormwater runoff from this project drains to the Coa kr River basin.
3. Total Project Area: 32 acres 4. _Pro ect Built Upon Area: 13, q0 %
S: How many drainage areas does the project have? 31
6. Complete the following information for. each drainage area. If there are more than two drainage areas in the
project, attach an additional sheet with the information for each area provided in the same format as below.
.,
lea
Receiving Stream Name
C4pe fear kiv&
Receiving Stream Class
,r
Drainage Area
g 2 0 a 3
Existing Impervious* Area
Proposed Im ervious*Area
38 2 I q
% Im ervious" Area (total)
1 q,10 %
On -site Buildings
3 0 24q fr2
On -site Streets
6 i `17a
On -site Parking
On -site Sidewalks
--'
Other on -site - fuivrs
Off -site
Total:
Total:
Impervious area is defined as the built upon area including, but not Iimited to, buildings, roads, parking areas,
sidewalks, gravel areas, etc.
Form SWiJ-101 Version 3.99 Page 2 of 4

7. How was the off -site impervious area listed above derived? AIIA
IV. DEED RESTRICTIONS AND PROTECTIVE COVENANTS
The following italicized deed restrictions and protective covenants are required to be recorded for all
subdivisions, outparcels and future development prior to the sale of any lot. If lot sizes vary significantly, a
table listing each lot number, size and the allowable built -upon area for each lot must be provided as an
attachment.
1. The following covenants are intended to ensure ongoing compliance with state stormwater management permit
number as issued by the Division of Water Quality. These covenants may
not be changed Dr deleted wi ut a consent of to State.
2. No more than Q'`a square feet of any lot shall be covered by structures or impervious materials.
Impervious materials include asphalt, gravel, concrete, brick, stone, slate or similar material but do not include wood
decking or the water surface of swimming pools.
3. Swales shall not be filled in, piped, or altered except as necessary to provide driveway crossings.
4. Built -upon area in excess of the permitted amount requires a state stormwater management permit modification prior to
construction.
5. All permitted runoff from outparcels or future development shall be directed into the permitted stormwater control
system. These connections to the stormwater control system shall be performed in a manner that maintains the
integrity and performance of the system as permitted.
By your signature below, you certify that the recorded deed restrictions and protective covenants for this project
shall include all the applicable items required above, that the covenants will be binding on all parties and
persons claiming under them, that they will run with the land, that the required covenants cannot be changed or
deleted without concurrence from the State, and that they will be recorded prior to the sale of any lot.
V. SUPPLEMENT FORMS
The applicable state stormwater management permit supplement form(s) listed below must be submitted for
each BMP specified for this project. Contact the Stormwater and General Permits Unit at [phone] for the
status and availability of these forms.
Form SWU-102
Wet Detention Basin Supplement
Form SWU-103
Infiltration Basin Supplement
Form SWU-104
Low Density Supplement
Form SWU-105
Curb Outlet System Supplement
Form SWU-106
Off -Site System Supplement
Form SWU-107
Underground Infiltration Trench Supplement
Form SINU-108
Neuse River Basin Supplement
Form SWU-109
Innovative Best Management Practice Supplement
Form SWU-101 Version 3.99 Page 3 of 4

'VI. SUBMITTAL REQUIREMENTS
Only complete application packages will be accepted and reviewed by the Division of Water Quality (DWQ).
A complete package includes all of the items listed below. The complete application package should be
submitted tothe appropriate DWQ Regional Office.
1. Please indicate that you have provided the following required information by initialing in the space
provided next to each item.
Initials
• Original and one copy of the Stormwater Management Permit Application Form _Am
• One copy of the applicable Supplement Form(s) for each BMP J ONMI
• Permit application processing fee of$420 (payable to NCDENR) f ;eoa J BM
• Detailed narrative description of stormwater treatment/management ,J om
• Two copies of plans and specifications, including: BM
Development/Project name
- Engineer and firm
- Legend
North arrow
- Scale
- Revision number & date
- Mean high water line
- Dimensioned property/project boundary
- Location map with named streets or NCSR numbers
- Original contours, proposed contours, spot elevations, finished floor elevations
- Details of roads, drainage features, collection systems, and stormwater control measures
- Wetlands delineated, or a note on plans that none exist
- Existing drainage (including off -site), drainage easements, pipe sizes, runoff calculations
- Drainage areas delineated
- Vegetated buffers (where required)
VII. AGENT AUTHORIZATION
If you wislh to designate authority to another individual or firm so that they may provide information on your
behalf, please complete this section.
Designated agent (individual or firm): A 4 �POS Edlifi ffl na , P. C►
Mailing Address: 1134 WpWrd Blvd.
City: Wilm.r.1hn State: Alt Zip: 2?q)2
Phone: ( 410 ) 3 42— 52N3 Fax: ( 110 ) 312-52113
VIII. APPLICANT'S CERTIFICATION
I, (print or type name of person Iisted in General Information, item 2) Kon4lj K, ift, , IL
certify that the information included on this permit application form is, to the best of my knowledge, correct and
that the project will be constructed in conformance with the approved plans, that the required deed restrictions
and protective covenants will be recorde 1(�
d that the proposed project complies with the requirements of 15A
NCAC 2H .1000.
Signature:
Date:
Forst SWU401 Vmion 3.99 Page 4 of 4

Permit No.6W6 S Q 6 0 8 Y 7
(to be provided by DWQ)
State of North Carolina
Department of Environment and Natural Resources
Division of Water Quality
STORMv►IATER MANAGEMENT PENT APPLICATIOlT FORM
LOW DENSITY SUPPLEMENT
This farm may be photocopied for use as an original
A low density project is one that meets the appropriate criteria for built upon area and transports stormwater
runoff primarily through vegetated conveyances. Low density projects should not have a discrete stormwater
collection system as defined by 15A NCAC 2H .1002(18). Low density requirements and density factors can
be found in 15A NCAC 2H .1005 through .1007.
I. PROJECT INFORMATION
Project Name: Y;delthJs on A
Contact Person:
Phone Number: ( 110 ) 39 2 ~ 52 Y3
Number of Lots: Allowable Built Upon Area Per Lot*: See 4+ached
*If lot sizes are not uniform, attach a table indicating the number of lots, lot sizes and allowable built upon
area for each lot. The attachment must include the project name, phase, page numbers and provide area
subtotals and totals.
H. BUELT UPON AREA
Seethe Stonnwater Management Permit Application for specific language that must be recorded in the deed
restrictions for all subdivisions.
For uniform lot sizes, complete the following calculation in the. space provided below where:
• SA Site Area - the total project area above Mean High Water. Wetlands may be excluded when the
development :results in high density pockets.
• DF Density Factor - the appropriate percent built upon area divided by 100.
• RA Road Area - the total impervious surface occupied by roadways.
• OA Other Area - the total area of impervious surfaces such as clubhouses, tennis courts, sidewalks, etc.
• No. Lots. - the total number of lots in the subdivision.
• BUA/Lot - the computed allowable built upon area for each lot including driveways and impervious
surfaces located between the front lot line and the edge of pavement.
Form SWU-104 Rev 3.99 Page 1 of 2

(SA x DF) - RA - OA = BUA
No. Lots Lot
Calculation:
(Iq2)os3 x,3) — 6j447— 1523 r 2 �} 13f
�
4
III. REQUIRED ITEMS CHECKLIST
Initial in the space provided to indicate that the following requirements have been met and supporting
documentation is provided as necessary. If the applicant has designated an agent on the Stormwater
Management Permit Application Form, the agent may initial below.
Applicants Initials
J BM a. A 30 foot vegetative buffer is provided adjacent to surface waters. Projects in the Neuse
River basin may require additional buffers.
JBM
b. Deed restriction language as required on form SWU-101 shall be recorded as a restrictive
covenant. A copy of the recorded document shall be provided to DWQ within 30 days of
platting and prior to sale of any lots.
J Bpi c. Built upon area calculations are provided for the overall project and all lots.
d. Project conforms to low density requirements within the ORW AEC (if applicable).
[15A NCAC 2H .1007(2)(b)]
Form SWU-104 Rev 3.99 Page 2 of 2

Project: Tidelands on the River
Part Tract 5
15,328 sq. ft.
Lot 6 & Part Tract 5
4,759 sq. ft.
Lot 7
4,628 sq. ft.
Lot 8
5,534 sq. ft.
Total
30,249 sq. ft.

STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
DECLARATION OF COVENANTS,
CONDITIONS, AND RESTRICTIONS OF
TIDELANDS ON THE RIVER
, HIS DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS
OF TIDELANDS ON THE RIVER made this the 14th day of September, 2006, by MRS
PROPERTIES, LLC, MIKE SMITH and wife, NANCY SMITH, SCOTT JONES and wife,
TERRY JONES, RONALD K. JESSUP, H and wife, GAY JESSUP, hereinafter collectively
referred to as Developer' or Owner or Declarant or Successor Declarant";
WITNESSETH:
That Whereas, Owner is the owner of certain property located in Federal Point Township,
New Hanover County, North Carolina as is hereinafter described; and
Whereas, the Owner desires to insure the use of the hereinafter described property for
attractive residential purposes only, to prevent the impairment of the attractiveness of the
property, to maintain the desired tone of the community, and thereby to secure to each lot owner
the full benefit and enjoyment of his or her home with no greater restriction upon the free and
undisturbed use of his or her. lot than is necessary to ensure the same advantages to the other lot
owners;
NOW THEREFORE, the undersigned Owner does hereby covenant, agree, and declare to
and with all persons, firms, or corporations owning or hereafter acquiring any lots made subject to
this Declaration that all of the properties described herein shall be held, sold, and conveyed
subject to the North Carolina Planned Community Act set forth in Chapter 47F of the North
Carolina General Statutes, as well as the following easements, restrictions, covenants, and
conditions which are for the purpose of protecting the value and desirability of, and which shall
run with the real property, and be binding on all parties having any right, title, or interest in the
said properties or any part thereof, their heirs, successors and assigns, and shall inure to the
benefit of each owner thereof, to -wit:

1. SCOPE OF DECLARATION This Declaration of Restriction shall apply to all lots in
TIDELANDS ON THE RIVER as shown upon a map recorded in Map Book _. at Page
of the New Hanover County Registry and all successive phases thereto.
2. LOT USE No lot located within the subdivision shall ever be used for business,
manufacturing, commercial, or professional purposes, it being intended that all lots shall be used
for residential purposes only. No mobile home, modular home, or other manufactured housing
shall be allowed to be placed, located, or constructed on any of the lots in the subdivision. Houses
shall contain a minimum of 2,600 heated square feet, must be built on a crawl space, and must be
constructed according to ARC Guidelines. The front elevation must have some decorative
features such as quoin corners, a soldier course, jack arches, or some other similar features.
3. SETBACK REQUIREMENTS Since the establishment of standard inflexible
building setback lines for the location of structures on lots tends to force construction of structures
directly to the side of other structures with detrimental effects on privacy, views, preservation of
important trees and other vegetation, ecological, and related considerations, no specific setback
lines are established by these restriction. In order to assure, however, that the foregoing
considerations are given maximum effect, the Owner or its duly appointed agent or agents reserve
the right to control and approve absolutely the site and location of any structure upon any lot. All
houses must comply with applicable local county and municipal setback requirements as depicted
on the recorded plat of the subdivision.
4. TEMPORARY STRUCTURES AND OTHER STRUCTURES Unless specifically
approved in writing by the Owner or the designated agent of the Owner as hereinafter provided,
no structure of a temporary character, trailer, basement, tent, shack, garage apartment, barn, or
other outbuilding shall be erected on any lot or used as a residence thereon. This restriction shall
not be applicable to a temporary construction trailer used by a builder while a residence is being
built on the lot, so long as such trailer is not used as a residence or living quarters.
In the event that the Owner or its designated agent shall approve such placement of a
structure as herein provided, the structure shall be constructed of the same materials and be of the
same design as the residence located on that lot. Should such structure encroach upon any of the
common areas or limited common areas, there shall be an easement reserved upon such common
areas or limited common areas for the location of such structure as hereinafter provided.
5. BUILDING DESIGN AND LANDSCAPE PLAN The design of all buildings erected
or moved onto any lot and all landscaping plans shall be subject to the approval of an
Architectural Control Committee selected by the Owner, or of some person or persons designated
by the Architectural Review Committee to pass upon said designs. The initial committee shall
consist of Nathan Sanders. These persons shall be the only members of the committee, and they
shall not be replaced until all of the houses to be built on all lots have been approved and
completed, at which time the Association shall appoint the Committee. Upon written request of a
lot owner for approval of construction plans and/or landscaping plans, which request shall be by
the submission to the Committee of a full and complete architectural and landscaping package
containing blueprints, drawings, site plans, construction specifications, and such other documents
as the Committee may request, the Architectural Review Committee or its duly authorized agent,
or such other person or persons who shall have been selected by the Committee, shall have thirty
days within which to approve or disapprove such plans. In the event of failure to approve or
disapprove such plans within thirty days, such approval will not be required; but the design of the
proposed building and the landscaping must be in harmony with the existing structures and
landscaping in this subdivision. TIDELANDS ON THE RIVER OWNERS ASSOCIATION shall

not be responsible for approvals required under this section and, more specifically, shall have no
control or authority over building design or landscape design on any of the lots subject hereto.
6. BUELDING CONSTRUCTION The construction materials used for any residence
or other structure upon any of the lots must be approved in writing by the Architectural Control
Committee or by such person or entity as the Architectural Control Committee may direct. No
exterior colors may be changed without the written permission of the Architectural Control
Committee, or of such person or entity as shall be authorized by the Architectural Control
Committee to approve a change of the exterior colors. It is the express intention of the Owner to
maintain a uniform plan of development with respect to design, size, type, cost, and general
appearance of all structures upon the lots in the subdivision.
Construction activity on a lot within the subdivision shall be confined to the boundaries
of the lot. Each Lot owner shall have the obligation to collect and dispose of rubbish and trash
resulting from the construction on the lot at such time and upon such schedule as is required by
the Architectural Control Committee and to make any repairs to the roads in the subdivision
damaged by construction vehicles. All requests for approval of plans and construction of any
residence on any lot shall be accompanied by a $1,000.00 deposit to be used for the collection and
disposal of said rubbish and trash in the event that the lot owner or builder should fail to do so,
and to repair any road damage caused by the lot owner or builder should such repairs not be made
by the owner or builder. Upon completion of construction and the collection and disposal of trash
and rubbish as provided herein, and/or the repair of any road damage as described herein, the
1.000.00 deposit shall be returned to the owner or builder making such deposit.
7. A. MAINTENANCE OF LOT, NUISANCES It shall be the duty of each
homeowner or occupant to keep his or her property (or that of the occupant's landlord) in a neat
and tidy condition, well maintained, with no unsightly debris or litter or the like in view. No
homeowner or occupant shall place on his lot, or cause or allow to be placed on his lot, any kind
of statue, sculpture, "object d'art", yard decoration., artificial wildlife, or any other similar type of
object. No noxious or offensive trade or activity shall be carried on or maintained on any lot, nor
shall any activity be conducted which constitutes an annoyance or nuisance to the neighborhood.
Any oil stains or similar spills on driveways or other roadways shall be immediately cleaned up or
removed by the lot owner responsible for such stain or spill. If such stain or spill is not
immediately cleaned up or removed, the Homeowners Association as hereinafter established shall
clean up or remove the stain or spill and the cost of such cleanup shall be assessed against and
collected from such responsible lot owner in the same manner as assessments are assessed and
collected as herein provided.
From the date of the conveyance of a lot from the Developer to a lot owner, and regardless
of whether the lot is vacant or a dwelling is completed on the lot, each lot owner must maintain
their lot in such manner as is reasonably consistent with the standards of the other lots in the
subdivision. At a minimum, (1) each lot must be mowed free of grass taller than eight inches (8"),
(2) all tree limbs from the ground up to six feet shall be removed from trees, and (3) all limbs,
leaves, fallen trees, trash, refuse, garbage, and other such debris must be immediately and
regularly removed from the lot. In the event of a dispute as to the "standards of the other lots in
the subdivision", the Developer shall make the final decision as to such standards. In the
discretion of the Developer, this responsibility may be turned over to the Association at any time.
If the lot owner should fail to maintain the lot as herein provided, the Developer or the
Association may cause such lot to be cleaned and maintained as herein provided, and the costs of
such cleaning and/or maintenance shall be charged to such lot owner, plus a service charge of
fifteen percent (15%) of such cost, and assessed and collected against the lot and the individual
lot owner as a special assessment pursuant to the regulations regarding liens and assessments as

hereinafter set forth in this Declaration.
B. PARKING All vehicles must be parked in driveways and no vehicles may be
parked at any time on lawns or common areas. No vehicles shall be parked on any roadway
overnight. No vehicle shall be allowed to block any street, roadway, or other access area. A:,y
vehicles parked on lawns, roadways overnight, or common areas shall be subject to be towed at
the owner's expense at the request of the Homeowners Association.
C. JUNK VEHICLES AND TRACTOR TRAILERS No inoperable vehicle or
vehicle without current registration, current state inspection sticker, current license plate, and
current insurance will be permitted on the premises, and no tractor -trailers or tractors for semi -rigs
will be permitted on the premises. The Association shall have the right to have all such vehicles
towed away at the owner's expense.
D. TRASH RECEPTACLES, LAWN FURNITURE, TOYS, PERSONAL
PROPERTY AND LIGHTS All trash receptacles, lawn furniture, toys, lawnmowers, bicycles,
grills, stored materials, and other such similar personal property must be kept and stored out of
view from the street. All light bulbs or other lights installed in any fixture located on the exterior
of any building or any lot shall be clear, white, or non -frost lights or bulbs. No colored bulbs or
lights will be allowed except during generally recognized holiday periods. The Association may
limit the amount of holiday lighting or the hours that such holiday lighting is lit in its sole
discretion.
E. VEHICLE REPAIRS No repairs to any vehicle may be made in driveways
unless such repairs may be completed in one day. During the course of repair work, no vehicle
shall be permitted to remain in any driveway on any type of jacks or stands more than one day.
F. RECREATIONAL VEHICLE/BOATS The open storage of boats, motor
boats, personal water craft, campers, recreational vehicles, trailers, recreational trailers, motor
homes, or similar type vehicles is prohibited in Tidelands on the River. These items must be
stored in an enclosed garage and not visible to persons on other lots, streets, or recreational areas.
G. GARAGE SALES/YARD SALES/RUMMAGE SALES No "garage sales",
"Yard sales", or rummage sales shall be allowed on any lot in the subdivision.
8. ANIMALS No, animals, livestock, or poultry of any kind shall be raised, bred, or
kept or maintained on the Property or in any Improvement thereto, except that a reasonable
number of domesticated household pets may be kept on any Lot, provided that such pet(s): (a) are
not kept for breeding or commercial purposes, (b) do not pose an unreasonable disturbance to
adjacent neighbors, do not unreasonably interfere with a Lot Owner's peaceful enjoyment of their
Lot or of the Common Properties, and do not constitute a nuisance or annoyance to the
neighborhood; (c) do not pose an unreadsonable risk to the safety, health or wellbeing of adjacent
neighbors or to the heighborhood; (d) can be, and are, restrained by a fence of not more than six
feet in height; (e) are reasonably restrained while outside of the residence; and (f) are not
permitted access to an outside shelter which is (i) not approved by the Declarant (as long as Class
B membership exists), the Board of Directors or the Architectural Committee, or (ii) visible from
the street. The terra "domesticated household pet," as used herein, means, among other things,
that the pet regularly resides within the home on the Lot or is a pet of a kind or nature that is
capable of regularly residing within the home on the Lot. Notwithstanding the foregoing, the
following dog breeds are specifically prohibited from being kept or maintained on the Properties
or on a Lot: Rottweilers, Presa Canarios, Dobermans, Chow -Chows, Pit Bull Breeds (including

but not limited to American Pit Bull Terrier, American Staffordshire Terrier, and Staffordshire
Terrier) and Wolf Hybrids. Notwithstanding the foregoing, any animal with a bite history as
evidenced by documentation from a state or local animal control agency or other reliable medical
or veterinary records are specifically prohibited from being kept or maintained on the Properties,
or an a Lot. No pet shall be permilued upon the Common Area unless attended and carried or
leashed by a Person who can controlthe pet. All pets shall be controlled so as not to create a
nuisance or unreasonable disturbance (including but not limited to loud or excessive barking) on
the Property. All Owners and their respective tenants and invitees who own pets (collectively, the
"Pet Owners") shall immediately clean up any waste on the Property from his/her pet. All Pet
Owners shall indemnify and hold the Declarant (during the Declarant Control Period) and the
Association harmless from any claim, action or demand against the Declarant or Association that
arises out of or results from any act of their pet. All Pet Owners shall promptly repair, at his/her
own cost, any damage to the Common Area caused by their pet. If any Pet Owner violates this
Section 8., the Declarant (during the Declarant Control Period) and the Association shall have the
right, but not the obligation, to require the Pet Owner to permanently remove the pet from the
Property upon no less than ten (10) days prior written notice, in addition to any other remedy. In
addition, the Declarant (during the Declarant Control Period) and the Association shall
specifically have the power and authority to designate by rule from time to time, based upon
temperament, size, nature or tendencies, a list of animal breeds or types which shall be
additionally prohibited on the Property or on any Improvements thereto.
g. FENCED AREAS The Owner or the authorized agent of the Owner may construct a
fenced area adjacent to the houses or units for the use of the owner of that house or unit.
Maintenance of the fence and the fenced areas within the fences shall be the responsibility of the
owner of the house. All fences must be approved by the architectural control committee or its
assigns, and the written design guidelines shall be available from the architectural control
committee. No chain link, split real, or welded wire fences shall be allowed on any lot.
10. UTILITY EASEMENTS The Owner reserves for itself, its successors, and assigns, an
easement in and right at any time in the future to grant a right of way under, over, and along the
side, rear, and front property lines of each and every lot in the Subdivision, for the installation and
maintenance of poles, lines, conduits, pipes, and other equipment necessary to. or useful for
furnishing electric, power, gas, telephone service, cable television, or other utilities including
water, sewer and storm water drainage. Also, easements for drainage and utilities are reserved as
shown on the recorded plat of the Subdivision. Owner reserves the right to make changes in and
additions to the above easements for the purpose of most efficiently and economically installing
improvements.
11. LOT GRADING The general grading, slope, and drainage plan of a lot may not be
altered without the express written approval of the New Hanover County authorities and Owner,
and other appropriate agencies having authority to grant such approval.
12. EXTERIOR MAINTENANCE Each lot owner shall maintain the exterior of all
buildings, walls, and other improvements on his lot in good condition and repair, and shall replace
worn and rotten parts and shall regularly repaint all painted surfaces and shall not permit the
roofs, rain gutters, down spouts, exterior wails, windows, doors, or other exterior portions of the
improvements to deteriorate in an unattractive manner. The maintenance referenced herein shall
be supervised and regulated by the TIDELANDS ON THE RIVER OWNERS ASSOCIATION,
INC., as hereinafter provided and hereinafter referenced as "The Association". In the event that
the lot owner shall fail to comply with these maintenance requirements, the Association is hereby
expressly authorized, and the lot owner hereby expressly agrees, that said maintenance and/or
repair may be effected by the said Association with the expenses incurred for the same to be

assessed against the individual lot owner as a special assessment and subject to the regulations
regarding liens and assessments as herein set forth.
13. (A) DIRECTIONAL SIGNS The Owner reserves for itself, its successors and assigns,
a temporary easement to place directional signs upon any of the lots in said Subdivision and upon
the street rights of way, in order to assist prospective purchasers in locating other lots or houses
which are for sale in the Subdivision, or in other future subdivisions coming out of adjoining
lands. The right to place and maintain such signs shall terminate when the last lot owned by the
Owner is sold.
(B) "FOR SALE', "FOR RENT", OTHER SIGNS Except for an 18" x 24" "For
Sale" sign placed on a lot by the original builder of a house on a lot, and/or an "18 x 24" "For
Sale" sign placed on a lot by a realty company or real estate agent advertising the lot and house for
sale, no signs shall be allowed on any lots, in or on any houses, or on any of the rights of ways of
any street within the subdivision until the last lot owned by the Owner or Developer is sold.
14. STREET LIGHTING The owner reserves the right to subject the real property in this
Subdivision to a contract with Progress Energy for the installation of underground electric cables
and/or the installation of street lighting, either or both of which may require an initial payment
and/or a continuing monthly payment to Progress Energy Carolinas by the owner of each lot.
15. MAILBOXES AND NEWSPAPER BOXES Each lot in the Subdivision shall have
one mailbox and this box shall be provided by the Builder. The design of such mailboxes shall be
selected by the Developer. The maintenance of such boxes shall be the responsibility of the
homeowner.
16. WINDOW COVERINGS To insure consistency and attractiveness with in the
Subdivision, white window treatments must be installed in all of the windows of all homes within
ten (10) days of occupancy; such that the total view of all windows from the outside of the house
is white window coverings. Window treatments inside of the house and not visible from the
outside of the house or unit are in the discretion of the homeowner. Bed sheets, towels, blankets,
etc. are not considered acceptable window treatments.
17. EXTERIOR ANTENNAE Exterior television or radio antennae are not permitted.
Television or radio satellite dishes are permitted within the Subdivision, as long as they are not
visible from the street and are subject to ARC approval before installation.
18. CLOTHESLINES The outdoor drying or airing of clothes and the erection of
outdoor clotheslines or similar devices on any lot in the Subdivision shall be subject to the
approval of the Owner, and then only when thoroughly concealed or screened from public view
within a fenced yard area.
19. FUEL TANKS AND STORAGE RECEPTACLES No fuel tanks or similar storage
receptacles located on any lot may be exposed to public view. Any such receptacles must be
installed only within a fenced area adjacent to the house or unit within the Subdivision and are
subject to prior ARC approval before construction.
20. WATER AND SEWAGE
(a) All water to be used in the Subdivision for domestic purposes shall be obtained
from Aqua North Carolina, Inc., unless other sources are approved by the City/County Board of

Health and the owner of the community water system, or their successors. An eight (8) foot radius
from each water meter shall be an easement for maintenance and repair of such meter.
Additionally, the front ten (10) feet of each lot is hereby reserved for utility easements.
The Developer hereby grants an easement to the community ;eater company along all streets and
roads in the Subdivision for the purpose of installing, maintaining, repairing, and replacing water
lines.
(b) Sewage disposal systems shall be individual septic systems only until such time
as the Aqua North Carolina sewage collection system or such community system serving the
subdivision becomes available.
(c) Should the Owner install a master lawn irrigation system for the common areas
of the Subdivision, or for any areas not reached by the individual systems as herein provided,
the maintenance, inspection, and operation of such system shall be the responsibility of the
Owners' Association as hereinafter provided.
21. ACCESS, MAINTENANCE, CONSTRUCTION EASEMENTS
(a) The Association, acting through its officers, agents, servants, and/or employees
shall have the right of unobstructed access at all reasonable times to all properties as may be
reasonably necessary to perform the exterior maintenance provided for by this Declaration.
(b) Easements are reserved over those portions of any lot that may be necessary or
required to accommodate overhanging eaves or other cantilevered construction which may
encroach upon such lot or lots, or the air and light space above such lot or lots.
(c) Each lot is hereby subjected to an easement for the repair, maintenance,
expansion, reduction, inspection, removal, relocation, or other service of or to all gas, electricity,
television, telephone, water, plumbing, sewer, utility, and drainage lines or conveyances, whether
or not the cause of any or all of those activities originates on the lot or unit in which the work
must be performed.
(d) Each lot shall be subject to an easement for encroachments created by
construction, settling, and overhangs for all buildings, structures, and other improvements
constructed by Owner, including but not limited to, sidewalks, walks, paths, patios, decks, fences,
parking areas and parking pads, driveways, stoops, porches, roofs, outbuildings, and other similar
appurtenances. A valid easement for such encroachments and for the maintenance of same, so
long as such encroachments stand, shall and does exist.
(e) In the event that ingress or egress to any lot or unit is through or across any other
lot, such lot is hereby subjected to an access easement for such owners' ingress, egress, and
regress to and from such lot.
(f) All easements and rights described herein are easements appurtenant, running
with the land, and shall be binding
on the Owner, its successors and assigns, and any owner, purchaser, mortgagee, and
other person having an interest in said land, or any part or portion thereof, regardless
of whether or not reference to said easement is made in the respective deeds of
conveyance, or in any mortgage or trust deed or other evidence of obligation, to the
easements and rights described in this Declaration.
22. OWNERS ASSOCIATION

(a) To provide for the maintenance, repair, upkeep and replacement of the
subdivision sign, streets, access easements, common area irrigation systems, street signs,
walkways, and landscaped common areas and easements in the Subdivision, the Developer has
formed the TIDELANDS ON THE RIVER OWNERS ASSOCy TION, INC., a non-profit
corporation organized pursuant to Chapter 55A of the General Statues of North Carolina. The
Association shall also be responsible for providing any necessary liability insurance. The Articles
of Incorporation for said corporation are recorded in the New Hanover County Registry. The By -
Laws for said corporation are attached hereto and are incorporated herein by reference.
(b) Every owner of a fee simple title to a lot within the Subdivision shall be
deemed to own, possess and have accepted:
(1) A Class "A" membership in the TIDELANDS ON THE RIVER OWNERS
ASSOCIATION, INC., (Association), appurtenant to his lot(s);
(2) An undivided equal interest with all other owners, for each membership in
the Association owned, in the Association and all of its assets;
(3) The duty of complying with and abiding by all of the provisions of these
Articles, the By -Laws of the Association and the Rules and Regulations of the Association,
including the payment of dues, assessments, and penalties as provided elsewhere herein.
(4) A right and easement of enjoyment, equal to that of all other owners, in
and to the common areas and amenities, which is appurtenant to the title to each lot, subject to the
right of the Association to dedicate or transfer all or any part of the common areas and amenities,
for such purposes and subject to such conditions as the Association may determine, acting by and
pursuant to the provisions of its duly enacted By -Laws.
(c) The Association shall have two classes of voting membership:
(1) Class "A". Class A members shall be all lot and unit owners with the
exception of the Owner and shall be entitled to one vote for each lot or unit owned. When more
than one person holds an interest in any lot or unit, all such persons shall be members. The vote
for such lot or unit shall be exercised as they among themselves determine, but in no event shall
more than one (1) vote be cast with respect to any lot or unit.
(2) Class "B". The Class B member shall be the Owner, and Owner shall be
entitled to three (3) votes for each lot or unit owned. The Class B membership shall cease and be
converted to Class A membership on the happening of either of the following events, whichever
occurs earlier:
A. When 75% of the lots are deeded to the homeowners, or
B. On December 31, 2015.
23. LIENS AND ASSESSMENTS TIDELANDS ON THE RJVER OWNERS
ASOCIATION, INC. has heretofore been given the authority to administer the operation and
manaaPmPnt of the nrnperry and to enforce these covenants, it being recognized that the
delegation of such duties to one entity is in the best interests of the owners of all lots subject
hereto to properly administer the operation and management of the subdivision. The Association

will incur, for the mutual benefit of all the owners of such lots, costs and expenses sometimes
herein referred to as "common expenses". To provide the funds necessary for such proper
operation and management of the subdivision, and for the proper enforcement of these covenants,
the Association has heretofore been granted the right to make, levy and collect assessments
against the members of the Association and their lots. In furtherance of this grant of authority to
the Association to make, levy and collect assessments to pay the costs and expenses for the
operation of and the management of the association and for the enforcement of these covenants,
following shall be operative and binding upon the owners of all lots:
(a) The owner of any lot subject hereto, with the exception of the Owner, by
acceptance of a Deed therefore, whether or not it shall be so expressed in such deed, is deemed to
envenant and aaree to nay to the Association:
(1) annual assessments or charges;
(2) special assessments for capital improvements
or special assessments as established by the
Board of Directors of the Association, such
assessments to be established and collected
as hereinafter provided;
(3) a nonrefundable working capital assessment
in the amount of three months of the annual
assessment, payable at the time of the purchase
of the property.
(b) The annual and special assessments, together with the interest, costs, and
reasonable attorney's fees, if any, shall be a charge on the lots and shall be a continual lien upon
each lot -against which they are levied. Each such assessment, together with interest, costs and
reasonable attorney's fees, shall also be the personal obligation of the person or entity who is the
owner of such lot at the time when the assessment falls due. The personal obligation for
delinquent assessments shall not pass to any successor in title unless expressly assumed by him.
(c) The Owner shall not be required to pay regular annual assessments on any lot
owned by it prior to its sale.
(d) The assessments levied by the Association shall be used exclusively to promote the
recreation, health, safety and welfare of the residents in the properties and for the improvement,
maintenance, and repair of all easements, including, but not limited to, access easements,
landscaping easements and stormwater easements, utilities, irrigation systems, subdivision signs,
yard areas, parking areas, roads and walkways as herein provided. The funds arising from said
assessments or charges, may be used for any or all of the following purposes: maintenance,
repair, and improvement of the irrigation systems, drainage and utility easements, and rights of
ways; maintenance of any parking areas, walkways, and yard areas as herein provided, enforcing
these restrictions, and, in addition, doing any other things necessary, proper, or desirable in the
opinion of the Association to keep the property in neat and good order and to provide for the
health, welfare and safety of the owners and residents of the subdivision.
(e) The annual assessments for each calendar year shall be established by the Board of
Directors, and may be increased by the Board of Directors for any calendar year without approval
by the membership by an amount not to exceed twenty-five percent (25%) of the maximum annual

assessment of the previous year. The maximum annual assessment for any calendar year may be
increased without limit by a vote of two-thirds (2/3) of the Class A members who are voting in
person or by proxy at a meeting called for this purpose.
(f) In addition to the annual assessments authorized above, the Association may levy,
in any calendar year, a special assessment for purpose of defraying in whole or in part, any major
expense of the Association, provided that any such assessment shall have the assent of two-thirds
(2/3) of the vote of the Class A members who are voting in person or by proxy at a meeting duly
called for this purpose. All special assessments shall be fixed to the uniform rate for all lots and
may be collected on a monthly basis.
(g) Written notice of any meeting called for the purpose of taking any action authorized
under Paragraph 25(e) or Paragraph 25(f) set forth above shall be sent to all members not less
then ten (10) days nor more then (60) days in advance of the meeting. At the first such meeting
called, the presence of members or of proxies entitled to cast fifty-one percent (51 %) of all votes
of the membership shall constitute a quorum. If the required quorum is not present, another
meeting may be called subject to the same notice requirement, and the required quorum at the
subsequent meeting shall be one-half (1/2) of the required quorum of the preceding meeting. No
such subsequent meeting shall be held more than sixty (60) days following the preceding meeting.
(h) The annual assessments provided for herein shall be collected no more frenquently
than a quarterly basis and shall commence as to all lots in the subdivision on the first day of the
month following recordation of the Declaration of Restrictions for the subdivision. The first
annual assessment shall be adjusted according to the number of months remaining in the calendar
year. Upon the closing of a lot subject hereto, there shall be an assessment due for the remainder
of the quarter in which the closing occurs, plus the amount of the assessment due for the
following quarter.
(i) Any assessment not paid within thirty (30) days after the due date shall bear interest
at the highest rate allowed by law from the date due until paid. The Association may bring an
action at law against the owner personally obligated to pay the same or foreclose the lien against
the lot and interest, costs, and reasonable attorney's fee of such action or foreclosure shall be
added to the amount of such assessment.
0) The lien herein granted unto the Association shall be enforceable from and after the
time of recording a claim of lien in the public records of New Hanover County, North Carolina,
which claim shall state the description of the lot encumbered thereby, the name of the record
owner, the amount due and the date when due. The claim of lien shall be recordable any time
after default and the lien shall continue in effect until all sums secured by said lien as herein
provided shall have been fully paid. Such claims of lien shall include only assessments which are
due and payable when the claim of lien is recorded, plus interest, costs, and attorney's fees
thereon, all as above provided. Such claims of lien shall be signed and verified by an officer or
agent of the Association. Upon full payment of all sums secured by such claim of lien, the same
shall be satisfied of record. The lien provided for herein shall be subordinated to the lien of any
first mortgage or Deed of Trust and any person, firm, corporation or other entity acquiring title to
any lot by virtue of any foreclosure, deed in lieu of foreclosure or judicial sale, shall be liable and
obligated only for assessme nts as shall accrue and become due and payable subsequent to the date
of acquisition of such title, and it shall not be liable for the payment of any assessments which
were in default and delinquent at the time it acquired such title. In the event of the acquisition of
title to a lot by foreclosure, deed in lieu of foreclosure or judicial sale, any assessment or
assessments as to which the party so acquiring title shall not be liable shall be absorbed and paid
by all owners of all lots as part of the common expenses, although nothing herein contained shall

be construed as releasing the party liable for such delinquent assessment from the payment thereof
or the enforcement of collection of such payment by means other than foreclosure.
(k) The lien of the assessments provided for herein shall be subordinate to the lien of
any first mortgage. The sale or transfer of any lot or unit shall not afact the assessment lien.
However, the sale or transfer of any unit pursuant to mortgage foreclosure or any proceeding in
lieu thereof, shall extinguish the lien of such assessments as to payments which became due prior
to such sale or transfer. No sale or transfer shall relieve such lot or unit from liability for any
assessments thereafter becoming due or from the lien thereof.
(1) Mortgagees are not required to collect assessments, and the failure of the owner to
pay assessments shall not constitute a default under a mortgage.
(m) Upon the sale of seventy-five percent (75%) of all of lots subject to these
covenants, the owner will turn over control of the Association to the Board of Directors to be
elected by the membership in accordance with the By -Laws of the Association. Until such time,
however, the owner shall elect the Board of Directors of the Association.
(n) In order to enforce the terms of this Declaration, the Association shall provide
penalties for failure to obey the duties required by this Declaration, and such penalties shall be
assessed against each lot, be payable by the lot owners, and be collected by the Association in the
same manner as any other lot assessment provided for by the terms of this Declaration.
24. RIGHTS OF ELIGIBLE MORTGAGE HOLDERS To the extent permitted by law,
an Eligible Mortgage Holder, that is, a holder of a first mortgage or lien on a lot or unit who has
requested notice of certain matters from the Association, upon written request to the Association,
identifying the name and address of the owner and holder, will be entitled to timely written notice
of:
(a) Any condemnation, loss, or casualty loss which affects a material portion of the
project or any units on which there is a mortgage held by such Eligible Mortgage Holder.
(b) Any delinquency in payment of assessments or charges owed by an owner of the
unit subject to a first mortgage held by such Eligible Mortgage Holder which remains uncured for
a period of sixty days.
(c) Any lapse, cancellation, or material modification of any insurance policy or
fidelity bond maintained by the Association.
(d) Any proposed action which would require the consent of a specified percentage
of Eligible Mortgage Holders.
(e) In addition to the foregoing rights, the Eligible Mortgage Holders shall be
afforded the following rights subject to the extent permitted by law and as allowed by the North
Carolina General Statutes as they now exist or as they may be amended from time to time.
(1) Any election to terminate the legal status of the project after substantial
destruction or substantial taking in condemnation of the project property
must require the approval of at least 51 % of the votes of the owners of
the units or,lots subject to Eligible Mortgage Holders.
(2) Unless otherwise provided in. the Declaration or Bylaws, no relocation of

interest in the common areas resulting from a partial condemnation or
partial destruction of the project may be affected without the prior
approval of Eligible Mortgage Holders holding mortgages on all
remaining units or lots whether existing whole or in part, and which have
at least 51 % of the votes of such remaining lots or units subject to
Eligible Mortgage Holders
25. INSURANCE It shall be the individual responsibility of each lot owner to maintain
casualty and liability insurance on his lot or unit, including the exterior. It shall be the duty of the
Association to maintain in effect casualty and liability insurance as follows:
(a) Amount and scope of Insurance: All insurance policies shall be secured by the
Board of Directors or its designee on behalf of the Association with full authority, which shall
obtain such insurance against (1) loss or damage by fire or other hazards normally insured against,
and (2) public liability insurance. Such liability coverage shall be for at least $1,000,000.00 for
bodily injury, including deaths of persons and property damage arising out of a single occurrence.
Coverage under this policy shall include, without limitation, legal liability of the insured for
property damage, bodily injuries, and deaths of persons in connection with the operation of the
Association and its fulfillment of the duties and responsibilities set forth herein, and legal liability
arising out of lawsuits relating to employment contracts of the Association.
(b) Insurance provisions. The Board of Directors shall make diligent effort to ensure
that said insurance policies provide for the following:
(1) A waiver of subrogation by the insurer as to any claims against the
Association, any officer, director, agent, or employee of the Association,
the lot owners, and their.employees, agents, tenants, and invitees.
(2) A waiver by the insurer of its right to repair and reconstruct instead of paying
cash.
(3) Coverage may not be canceled or substantially modified (including
cancellation for nonpayment of premium) without at least thirty days
prior written notice to the named insured.
(4) Coverage will not be prejudiced by act or neglect of the lot owners when said
act or neglect is not within the control of the Association.
(5) The policy on the common areas cannot be canceled, invalidated, or
suspended on account of the conduct of any one or more individual lot
owners.
(6) The policy on the common areas cannot be canceled, invalidated, or
suspended on account of any officer or employee of the Board of
Directors without prior demand in writing that the Board of Directors
cure the defect and the allowance of a reasonable time thereafter within
which the defect may be cured by the Association.
(c) Premiums. All insurance premiums for insurance for the benefit of the
Association purchased by the Board of Directors or its designee and any deductibles payable by
the Association upon loss shall be a common expense and the Association shall levy against the

owners equally, as an additional annual assessment, herein called "Insurance Assessment" which
shall be in addition to the amounts provided for herein, an amount sufficient to pay the annual
cost of all such insurance premiums.
(d) Proceeds. All insurance policies purchased pursuant to these provisions shall
provide that all proceeds shall be payable to the Board as insurance trustee or to such attorney at
law or institution with trust powers as may be approved by the Board of Directors.
(e) Policies. All insurance policies purchased by the Board of Directors shall with a
company or companies permitted to do business in the State of North Carolina and holding a
rating of "A" or better by the current issue of Best's Insurance Reports. All insurance policies
shall be written for the benefit of the Board of Directors and the lot owners and their mortgagees
as their respective interests may appear, and shall provide that all proceeds thereof shall be
payable to the Board of Directors and duplicates of said policies and endorsements and all
renewals thereof, or certificates thereof, together with proof of payment of premiums, shall be
delivered to the owners at least ten (10) days prior to the expiration date with respect to the then
current policies.
(f) Distribution of Insurance Proceeds. Proceeds of insurance policies shall be
distributed to or for the benefit of the beneficial owners in the following manner:
(1) Expenses of Trust. All reasonable expenses of the insurance trustee shall be
first
paid or provisions made therefore.
(2) Reconstruction or Repair. The remaining proceeds shall. be used to defray the
cost of repairs for the damage or reconstruction for which the proceeds
are paid. Any proceeds remaining after defraying such cost shall be
distributed to the beneficial owners, including Henholders of record, or
retained by the Association for such common expenses or purposes as the
Board shall determine.
26. FIDELITY BONDS
(a) The Association shall maintain blanket fidelity bonds for all those officers, directors,
employees, and all other persons handling or responsible for funds of the Association. If the
Association shall delegate some or all of the responsibility for the handling of its funds to a
management agent, such fidelity bonds shall be maintained by such management agent for its
officers, employees, and agents handling or responsible for funds of or administered on behalf of
the Association.
(b) Amount of Coverage. The total amount of fidelity bond coverage required shall be
based upon best business judgment and shall not be less than the estimated maximum of funds,
including reserve funds, in the custody of the Association or the management agent, as the case
may be, at any given time during the term of each bond. However, in no event may the aggregate
amount of such bonds be less than a sum equal to three months aggregate assessments on all units
plus reserve funds.
(c) Other requirements. Fidelity bonds required herein must meet the following
requirements:
(1) Fidelity bonds shall name the Association as an obligee.

(2) The bonds shall contain waivers by the issuers of the bonds of all
defenses based upon the exclusion of persons serving without
compensation from the definitions of "employees", or similar terms of
expressions.
(3) The premiums on all bonds required herein for the Association (except
for premiums of fidelity bonds maintained by a management agent for its
officers, employees, and agents) shall be paid by the Association as a
common expense.
(4) The bonds shall provide that they may be cancelled or substantially
modified (including cancellation for non-payment of premium) without at
least ten (10) days prior written notice to the Association, to any
insurance trustee, and each Eligible Mortgage Holder.
27. STORIkIn ,TER IALN7E'NANCE
(a) The following covenants are intended to ensure ongoing compliance with State
Stormwater Management Permit Number C w a o 6 u A a 7 as issued by the Division of Water
Quality under NCAC2H.1000.
(b) The State of North Carolina is made a beneficiary of these covenants to the extent
necessary to maintain compliance with the stormwater management permit.
(c) These covenant are to run with the land and be binding on all persons and parties
claiming under them.
(d) The covenants pertaining to stormwater may not be altered or rescinded without
the express written consent of the State of North Carolina, Division of Water Quality.
(e) Alteration of the drainage as shown on the approved plan may not take place
XTY411n„t the rnnrnrrence of the Division of Water Quality.
(fl s
The maximum allowable built -upon area per lot is as follows: Lot 1, 15,328
-,quire feet; Lot 2, 4, 59 sq' Lot 3, �1,528 sq: =feet and Lot 4, 5,534 cqu?re feet. These
allotted amounts include any built -upon area constructed within the lot property boundaries, and
that portion of the right-of-way between the front line and the edge of the pavement. Built -upon
area includes, but is not limited to, structures, asphalt, concrete, gravel, brick, stone, slate, and
coquina, but does not include raised, open wood decking, or the water surface of swimming pools.
(g) In the case of a lot within CAMA's regulated AEC, if the build -upon area for that
lot, as calculated by CAMA, is different than the amount shown in these restrictions, the most
restrictive of the two will be the maximum permitted limit for that lot.
(h) Filling in or piping of any vegetative conveyances (ditches, swales, etc.)
associated with the development except for average driveway crossings, is strictly prohibited by
and person.
(i) Each lot will maintain a 30' wide vegetated buffer between all impervious areas
and surface waters.
(j) All roof drains shall terminate at least 30' from the mean high water mark of
surface waters.

28. DEVELOPER'S RIGHTS
(a) The Developer hereby reserves the right to annex additional land within an area
of one mile from the property described without the consent of the Class A members within ten
(10) years of the date of this instrument provided that HUD, the FHA, or VA determines that the
annexation is in accord with the general plan hereto approved by them. Any property annexed for
such purpose will be subject to and under the jurisdiction of the Association and shall be
designated as consecutively numbered phases or such other similar designations for any additional
phase added.
(b) The rights reserved by the developer also include the power to amend this
Declaration of Restrictions to subject any property described above to the jurisdiction of the
Association and to the rights and obligations of this Declaration of Restrictions without the
consent of Class A members, subject, however, to approval by the Department of HUD or the
Veterans Administration.
29. VA/HUD APPROVAL So long as there is a Class B Membership, annexation of
additional of additional properties, dedication of common areas, and the amendment of this
Declaration of Covenants, Conditions, and Restrictions shall require the approval of the Veterans
Administration or the Department of Housing and Urban Development.
30. AMENDMENT Except as otherwise provided herein, these restrictions may be altered,
modified, canceled, or changed at any time as to said subdivision as a whole or as to any
subdivided lot or part thereof by a written document, recorded in the New Hanover County
Registry, executed by the owners (not including mortgagees, trustees, or other lienholders) of not
less than two-thirds (213) of the subdivided lots to which these restrictions apply. Developer's
power to amend this Declaration as provided herein shall not require the consent of the Class A
members and shall be valid when signed by the Owner and recorded in the New Hanover County
Register of Deeds. ing,Rl E ant may i rii3%�rcMy arntm.d t-bese
-@resuicdons at any time w easure urigu a
;l'-=t rG .:ii.Eu 11i paragraph _21 i ',_-r 's..f:w
31. VIOLATIONS If the parties hereto, or any of them or their heirs or assigns, shall
violate or attempt to violate any of the covenants herein, it shall be lawful for the Association or
any other person or persons owning any real property situated in said subdivision to prosecute any
proceeding at law or in equity against the person or persons violating or attempting to violate such
covenants and either prevent him or them from so doing or recover damages or other dues for
such violations.
32. INVALIDATION Invalidation of anyone of these covenants by judgment or court
order shall in no way effect any of the other covenants herein, which shall remain in full force and
effect.
33. TERM t _ `� thc;e
wt,
specifically include, but not be limited to the successors and assigns; if any, of Owner; - ;,
after which time all said covenants shall be
(not including mortgagees or trustees under deeds of trust)
a

34. LOTS AND UNITS SUBJECT TO DECLARATION All present and future owners,
tenants, and occupants of lots or units and their guests and invitees shall be subject to and shall
comply with the provisions of this Declaration, as the Declaration may be amended from time to
time. The acceptance of a deed of conveyance or the entering of a lease or the entering into
occupancy of any lot shall constitute an agreement that the provisions of ,she Declaration are
accepted and ratified by such owner, tenant, or occupant. The covenants and restrictions of this
Declaration shall inure to the benefit of and be enforceable by the Association, or the owner of
any lot or unit, their respective legal representative, heirs, successors, and assigns, and shall run
with and bind the land and shall bind any person having at any time any interest or estate in any
lot as though such provisions were made a part of each and every deed of conveyance or lease.
35. APPLICABILITY TO OTHER PROPERTIES These restrictions shall apply only to
the lots specifically subjected to these restrictions by the Declarant and shall not be applicable to
any other properties owned by the Declarant. Declarant specifically reserves the right to develop
adjacent or nearby properties in any manner whatsoever without regard. to the development
scheme contemplated herein, including the right to construct apartments, condominiums,
townhouses, duplexes, triplexes, or any other form of multifamily housing or other form of
housing allowed by the applicable zoning ordinances and regulations.
36. COMMUNITY BOATING FACILITY There is hereby established a Community
Boating Facility as defined herein. Boatslips are hereby assigned by the Owner as follows: Lot 1,
Boat Slips A and B, Lot 2, Boat Slip C, Lot 3, Boat Slip D and Lot 4, Boat Slips E and F. Boat
Slips may not be transferred separately from the assigned lot. The owner of Lot 1 shall be solely
responsible for the maintenance and repair of the pier serving Boat Slips A and B. The owners of
Lots 2, 3 and 4 shall be solely responsible for the mainenance and repair of the pier serving Boat
Slips C, D, E and F. There shall be no additional boat slips for the pier serving Lot 1. There shall
be no additionl boat slips serving Lots 2, 3 and 4 unless the owners of Lots 2, 3 and 4 unamiously
agree to add additional slips, and if so, the boat slips must be specifically allocated to a specified
lot(s) in the form of an amendment hereto. No commercial activity is permitted at the Community
Boating Facility. The Community Boating Facility may be used only for recreational boat
dockage. Boat Slips are designated for vessels of 30' or less and vessels may not have heads. In
addition to the other use restrictions contained in this Declaration, the following use restrictions
also apply to the Community Boating Facility:
(a). No noxious or offinsive activity shall be carried on upon any boat or within the
Community Boating Facility, nor shall anything be done thereon which may be or may become an
annoyance or nuisance to the neighborhood. There shall not be maintained any plants or animals,
nor device or thing of any sort whose normal activities or existence are in any way noxious,
dangerous, unsightly, unpleasant or other nature as may diminish or destroy the injoyment of other
Boat Slips. It shall be the responsibility of each Member to prevent the development of any
unclean, unsightly or unkept condition of the applicable Boat Slip or any boat using it.
(b). No. device, structure or other thing shall be located or maintained on any pier or dock
except on dock box per Boat Slip, the design and location of which must be approved by the
Association. All fishing gear and other marine devices and equipment when not in use shall be
stored on board or in a dock box.
(c). No "tramp vessels", "Derelict vessels, barges, or commercial vessels may be moored in
any Boat Slip. All. boats shall be maintained in a neat, clean, ship shape, and seaworthy condition.
No inoperable boat without current registration and insurance, will be permitted in any Boat Slip.
The Association shall have the right to have all prohibited boats towed away and stored at the
expense of the Member. No major repairs or complete overhauls to any boat may be made at a

Boat Slip. Boats may not be used as permanent residences.
(d). No signs (including "for sale" or "for rent" signs) shall be permitted on any boat or
otherwise upon the Community Boating Facility.
(e). No trash of any kind shall be left on the dockways except in containers which the
Association may provide for such purpose. No one shall throw, discharge, pump or deposit from
any boat or float any refuse, oil, spirits, flammable liquid or polluting matter in the harbor. All
such matter shall be deposited at approved oil disposal facilities. Waste material such as paper,
beer or drink cans, cigarette stubs, trash, etc., must not be thrown from the boats or dock areas.
(fl. Children under twelve (12) years of age are not permitted on docks without the immediate
presence of a parent or other regponsible adult. Parents shall not allow children to run and play
on the dockways. Dockways shall be kept clear and uncluttered.
(g). To prevent damage from weather or storms, adequate mooring lines must be properly
secured and maintained, and all outside property shall be battened down, secured, or placed
inside the boat. The Association may order boats immediately removed from their slips in the
event of impending hurricanes or other storms in order to protect the docks. Upon the issuance of
any such order, each Member shall immediately remove his/her boat from the Boat Slip or cause
any tenant using the Boat Slip to do so. Any damage caused tothe common area on account of
failure to remove a boat in accordance with such order shall be repaired by the Association at the
sole cost and expense of the Member failing to remove or cause the removal of the boat.
(h). Members shall insure that his/her guests and tenants abide by this Declaration and all
rules and regulations and shall be responsible to the Association for any violation. The number of
guests permitted at any one time may be limited by the Association.
(i). Fish cleaning of any kind will not be permitted except at a place or places designated by
the Board of Directors.
0). Unnecessary operation of of engines in slips is not permitted. Engines may not be
operated in gear while boats are moored.
(k). Water or power lines shall not be left unattended across main walks. All connections to
electrical receptacles shall be with marine grade cords only. All accessory cords shall be
maintained in good, safe operating condition. Frayed cords shall promptly be replaced at the
Member's expense.
(1). The speed limit within the Community Boating Facility shall be dead slow, or wakeless
speed, whichever is slower.
(m). Animals shall be leashed at all times when on the premises. No animals shall be tied to
any part of the dock, including fingers or dock boxes. Animals shall be physically kept on board
at all times. The owner of an animal is responsible for cleaning up pet feces and urine.
(n). No part of the docks, utility posts or. any other part of the Community Boating Facility
may be altered in any way.
(o). All. persons using the Community Boating. Facility shall do so lawfully. and in such
fashion as to maintain and preserve those facilities. Eash person shall be respeonsible for his/her
own conduct and safety. All persons shall comply with all applicable government ordinances

including but not limited to, Sec. 18-250 of the Land Development Code of the City of
Wilmington and NC Coastal Resources Commission Permit(s) for the facility.
1N TESTIMONY WHEREOF, the Owner has caused this instrument to be executed in its
corporation name by its duly authorize President, and its corporate seal to be hereunto affixed, al
by order of its Board of Directors first duly given, the day and year first above written.
MRS PROPERTIES, LLC
By. (SEAL)
Manager
(SEAL)
Mike Smith
(SEAL)
Nancy Smith
(SEAL)
Scott Jones
(SEAL)
Terry Jones
(SEAL)
Ronald K. Jessup, II
(SEAL)
Gay Jessup

STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
I, Alan M. Solana, a Notary Public of the County and State aforesaid, certify that
personally appeared before me this day and acknowledged that
he/she is Manager of MRS PROPERTIES, LLC, a North Carolina Limited Liability Company,
and that by authority duly given and as the act of the Limited Liability Company, they signed the
foregoing instrument in its name as its Managers.
Witness my hand and notarial stamp or seal, this day of
My Commission Expires:
STATE OF NORTH CAROLINA
COUNTY OF NEW HANOVER
Notary Public
r-
I, Alan M. Solana, a Notary Public of the County and State aforesaid, certify that Mike Smith and
wife, Nancy Smith, Scott Jones and wife, Terry Jones and Ronald K. Jessup, H and wife, Gay
Jessup, peronally appeared before me this day and acknowledged the execution of the foregoing
instrument.
Witness my hand and notarial stamp or seal, this day of
My Commission Expires:
Notary Public
2006.