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<br />costs in the City of Santa Ana, as that increase is established by the annual change in the <br />"Construction Cost Index-Los Angeles," published by Engineering News-Record, or substitute <br />index chosen by the Executive Director should this index is discontinued. The fee shall be paid <br />for each phase, as set forth in section 5.1.1 of this Agreement, prior to issuance of the first <br />building permit for that phase, and shall be utilized by the City in the Quadrant of the City (as set <br />forth in the City's Park A&D Fee program) in which the Project is located, with priority given to <br />Santiago Park. <br /> <br />5.8.5 Covenants, Conditions, and Restrictions. Covenants, Conditions, and <br />Restrictions (CC&R's) must be provided and approved by the Executive Director for the project <br />prior to the issuance of the first building permit. Such CC&R's must contain at a minimum, the <br />following: <br /> <br />(1) No more than four residents per live-work unit. <br /> <br />(2) All residential and live-work units shall remain owner occupied <br />and shall not allow rental of the entire unit. <br /> <br />(3) Use Restriction for Live-Work Units. The live-work project must <br />remain as a live-work community. The work component shall be limited <br />to one of the allowable uses as specified in the Specific Development <br />(SO-59) zoning district. <br /> <br />(4) Repair of perimeter walls will be specified in the CC&R's in the <br />event of damage. <br /> <br />(5) The CC&R's shall provide notice to prospective owners of the <br />urban character of the City and this area, including but not limited to the <br />permitted uses of the property and buildings in the immediate area of the <br />development (e.g.., Main Place Regional Shopping Mall, and surrounding <br />property zoned and/or devoted to commercial use), and shall provide a <br />release of all claims against the City which may arise from or relate to the <br />disclosed matters. <br /> <br />(6) The CC&R's shall reflect that ground floor space in the live-work <br />units shall be restricted to work/retail activities. <br /> <br />(7) The CC&R's shall reflect that balconies may not be used for <br />storage. <br /> <br />(8) Terms and Content: <br /> <br />l. CC&R's are to be in effect for 66 years. <br /> <br />11. Any proposed modifications to the foregoing provisions of <br />the CC&R's will require approval by the Executive Director. <br /> <br />13 <br /> <br />11 0-17 <br />