Agenda 05-19-2026; 8-i - Declaration of Easements and Restrictive Covenants for the Crisis Diversion Facility

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4 C. The Properties are subject to the Town of Hillsborough's approved Waterstone South, Conditional Zoning Permit Planned Development approved by the Hillsborough Commissioners on September 9th, 2024 and the relevant provisions of the Town of Hillsborough Unified Development Ordinance. ORANGE COUNTY intends to develop a Crisis Diversion Facility (the "Facility") on the COUNTY Property as shown on ORANGE COUNTY's plan documents dated May 6, 2026 labeled"Declaration Set" and executed by the Parties (collectively the "Construction Plans"). D. The Parties hereby agree that the purpose of this Declaration is to provide a framework for the orderly and timely development, operation, and maintenance of the Infrastructure (as defined in Section E below) on New Lot 1 and New Lot 2. The only Infrastructure contemplated on New Lot 3 pursuant to this Declaration includes the improvements associated with (i) the Sanitary Sewer Easement described in Section 4(a), (ii) the TCE described in Section 1(b), and (iii) the Road Construction Easement described in Section 6(a). E. The infrastructure includes, without limitation, land planning, engineering, surveying, utilities,water and sewer main line extensions, sewer service line installation,storm water pipes,storm water storage facilities, water quality devices, erosion control, roadways, curb and gutter, sidewalk, signage,bus stop, landscaping, and demolition of existing structures all as shown and described on the Construction Plans, including all related close out work necessary to comply with the Town of Hillsborough's regulations, and the Town of Hillsborough's acceptance of the improvements in the Public Right- Of-Way into Hillsborough's Maintenance Program (collectively the "Infrastructure"). The term Infrastructure specifically excludes any buildings that may be located on the Properties. ORANGE COUNTY is obligated to construct the Infrastructure in compliance with approved Construction Plans at its sole cost and expense. If there are subsequent changes to the Construction Plans that: (i) reduce the Infrastructure that could reasonably be used for the benefit of the CAPKOV Property; (ii) adversely affect the construction cost or marketability of New Lot 1; or (iii) result in additional cost to CAPKOV in completing the requirements of the Conditional Zoning Permit or the Conditions of Approval,then such changes shall be presented to CAPKOV for approval, which such approval shall not be unreasonably withheld, conditioned or delayed. The Parties agree that if the Construction Plans have not received final approval from the Town of Hillsborough at the time this Declaration is recorded,then the Construction Plans referenced above will be treated by both Parties as reflecting the general scope of the Infrastructure. Subject to CAPKOV's approval as set forth in Recital E(i)—(iii), the Parties further agree that any changes reflected in the final approved Construction Plans shall automatically amend the Construction Plans for purposes of this Declaration. The first page of the current Construction Plans prepared by Timmons Group is attached as Exhibit G for reference and incorporation herein. In the event that ORANGE COUNTY does not develop the Infrastructure within thirty (30) months of the recording of this Declaration, CAPKOV shall be entitled,but not obligated to construct the Infrastructure. If CAPKOV completes the Infrastructure,the Parties will work together to develop a plan to manage CAPKOV's construction of the Infrastructure and ORANGE COUNTY shall assign to CAPKOV all rights to the Construction Plans and Town permits,to the extent assignable,to permit CAPKOV to complete the Infrastructure. CAPKOV shall have the right to construct and improve the Infrastructure to the same standards required by the approved Construction Plans provided all such construction complies with the public bidding and contracting laws applicable to local governments in North Carolina if such compliance is required by ORANGE COUNTY's legal counsel. CAPKOV 2