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Development Agreement - 2015 - Avimor - Covenant Agreement - 3/10/2015COVENANT AGREEMENT This Covenant Agreement (this "Agreement ") is made on this � day of March, 2015 by Avimor Development, LLC, an Idaho limited liability company, Avimor Partners, LLC, an Idaho limited liability company, and First American Title Insurance Company, a Nebraska corporation, as Trustee of the Dual Beneficiary Trust, Trust No. 8562, which Trust was created pursuant to the Subdivision Trust Agreement dated October 8, 2002 (collectively, "Owner ") and the City of Eagle, an Idaho municipal corporation ( "City "). RECITALS A. Owner requested City's consent pursuant to Idaho Code § 50- 310](3) to form a community infrastructure district to be known as Avimor Community Infrastructure District No. 1 (Ada County, Idaho) (the "District ") in a portion of Ada County, Idaho contained within City's comprehensive plan area; B. City granted the requested consent, but only with respect to certain 637 -acre portion of Owner's property commonly known as the "Village One" area; C. At Owner's request and with the City's consent, Ada County fortned the District pursuant to Community Infrastructure District Act (Title 50, Chapter 31, Idaho Code), but only with respect to the "Village One" area and not any other portion of Owner's property; and D. Owner desires to enter into this Covenant to provide City with assurances that Owner will not request or approve the addition of any area contained within the City of Eagle's comprehensive plan area to the District unless Owner first receives the City of Eagle's prior written consent to such addition. AGREEMENT NOW, THEREFORE, in consideration of the recitals above, which are incorporated into this Agreement by this reference, Owner and City agree as follows: I. Owner shall not submit any request or approval, including any approval under Idaho, . Code § 50- 3106(2), to add any area contained within the City of Eagle's comprehensive plan area to the District unless Owner first receives the City of Eagle's prior written consent to such addition. 2. Owner shall submit the City of Eagle's written consent to the District concurrently with any request or approval to add any area contained within the City of Eagle's comprehensive plan area to the District. 3. Owner shall request the covenants set forth in Section I and Section 2 hereof from Owner be specifically identified in the portion of the `district development agreement' for the District addressing annexation of lands to the District. Further, Owner shall request that such `district development agreement' state that District and Owner expressly recognize City as a third party beneficiary of such provision. A provision in the `district development agreement' substantially as follows shall satisfy the foregoing requirement: "ADDITIONS TO THE DISTRICT. For Owner's benefit, Owner has entered into a separate agreement with the City of Eagle requiring Owner to first get the City of Eagle's prior written consent before submitting any request for approval (including any Idaho Code § 50- 3106(2) approval) to add any area contained within the City of DISTRICT DEVELOPMENT AGREEMENT No. I PAGE 1 OF 2 2382336- 1[12512 -31 Eagle's comprehensive plan area into the .District. Owner has requested that its agreement with the City of Eagle be addressed in this Agreement. District has consented to implement Owner's agreement with the City of Eagle. Accordingly, Owner shall submit the City of Eagle's written consent to the District concurrently with any request or approval to add any area contained within the City of Eagle's comprehensive plan area to the District. District and Owner agree that the City of Eagle shall be an express third party beneficiary of this Section." 4. This Agreement shall be binding upon, and run to the benefit of, the parties and their respective heirs, successors and assigns. DATED as of the year and day first set forth above. "Owner" Avimor Development, LLC, an Idaho limited liability company By: Title: Avimor Partners, LLC, an Idaho limited liability company By: Name: cb-x t-a Title: —r-,A I C S 6( r JIB usQ rT First American Title Insurance Company, a Nebraska corporation, as Trustee of the Dual Beneficiary Trust, Trust No. 8562, which Trust was created pursuant to the Subdivision Trust Agreement dated October 8, 2002 By: 4�, chu�"r Name: l-st to Title: Z---L- "City" CITY OF EAGLE, an Idaho municipal corporation ByO::mcs Na D. Reynolds, Mayo Attest: By: � L a4=�tg — I<-" - Name: Karon B rgmann, City Clerk DISTRICT DEVELOPMENT AGREEMENT NO. 1 PAGE 2 OF 2 2362336 -1 [12612-3)