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Project. The City shall use not more than twenty five percent (25%) of the Park Development Fee for the acquisition of the land for parks and the construction of capital improvements and deferred maintenance at existing parks at any location within the City and not less than seventy five percent (75%) of the In Lieu Park Development Fee shall be utilized by the City in the Quadrant of the City (as set forth in the City's Park A & D Fee Program) in which the Project is located, with priority given to Santiago Park. 5.8.5 Covenants, Conditions, and Restrictions. Covenants, Conditions, and Restrictions (CC&R's) must be provided and approved by the Executive Director for the project prior to the issuance of the first building permit. Such CC&R's must contain at a minimum, the following: (1) No more than four residents per residential or live-work unit; except that there shall be no more than five residents per two bedroom residential unit. (2) All residential and live-work units shall not be sold by the original buyer for one year from his or her close of escrow, unless the original buyer is transferred out of the Southern California region. (3) Use Restriction for Live-Work Units. The live-work units in the Project must remain as a live-work community. The work component shall be limited to one of the allowable uses as specified in the Specific Development (SD-79) zoning district. (4) Repair of common areas, stairs, FF&E and walls will be specified in the CC&R's in the event of damage. (5) The CC&R's shall provide notice to prospective owners of the urban character of the City and this area, including but not limited to the permitted uses of the property and buildings in the immediate area of the development (e.g.., Bowers Museum of Cultural Art, day spa, Saint Joseph's Ballet, Kidseum, carwash, Main Place Regional Shopping Mall, and surrounding property zoned and/or devoted to commercial use), and shall provide a release of all claims against the City which may arise from or relate to the disclosed matters. (6) The CC&R's shall reflect that ground floor space in the live-work units shall be restricted to work/retail activities. (7) The CC&R's shall reflect that patios and balconies shall not be utilized for the storage of household items, except (A) furniture designed for outdoor use, (B) barbecues, and (C) plants including plant racks and stands. Ordinance NS-2700 Page 16 of 41 12