May 11, 1990 Mr. Dino A. Ciccozzi, President Cicoozzi Construction Company, Inc. 409 Rear East Broad Street Tamaqua PA 18252 RE: Valley of Lakes Dear Mr. Ciccozzi: It is the published and recorded intention of C.B.G. Limited ('CBG') to develop the Valley of Lakes and Eagle Rock Resort (the 'Valley') as a first-class residential community. CBG desires to maintain the natural beauty and environment of the Valley to assure high standards of quality for its enjoyment by residents, their guests and visitors. To achieve this important goal, to provide for the preservation, enhancement and maintenance of the Valley, and to enhance, promote and protect the health, welfare and enjoyment of property owners, CBG has provided for certain Covenants and Restrictions ("Covenants"), Rules and Regulations ) and a Building Code ("Code"). CBG has also reserved ownership of all common areas including roadways and certain woodlands and has established restrictions for their preservation and protection. Your entry onto the property of the Valley to conduct business is a privilege, not a right. It is conditioned upon, and your status as a tenant requires full compliance with the Covenants, Regulations and the Code. Furthermore, your application for and issuance to you of Building Permits makes you subject to these requirements. However, during routine property inspections conducted by Thomas Marnell on March 12 and 13, 1990, numerous conditions were observed to have been caused and continued by you which are in violation of these requirements. A summary of the conditions observed and the Covenants, Regulations and code requirements which each violates is attached as Exhibit "A". You were notified of these violations verbally and in writing on several occasions, and in formal notices by letter dated March 13, and March 15, 1990. You were instructed, both verbally and in writing to correct these deficiencies. Unfortunately, instead of complying with these reasonable requests, you have chosen to permit the conditions to continue unabated. The violations are not, as you and your attorney have suggested, insubstantial. Instead, they go to the very heart of philosophy of the Valley. The conditions created by you have detracted substantially from the appearance of the development, interfered with the quiet enjoyment of the resort by residents, caused actual or potential damage to other property owners and most importantly, have endangered health and safety. Some of these actions, including improper disposal of construction waste and trespass onto other's property may even rise to the level of criminal conduct. Moreover, complaints and other information received from property owners, your customers, other contractors, the Architectural Control Committee and professionals, disclose questionable business practices which, because of your relationship with CBG reflects adversely on the Valley and on CBG and related companies. Your continued disregard for the rules developed for the benefit of all, cannot be tolerated. Please be advised that effective immediately, Ciccozzi Construction Company, Inc. is being removed from the list of approved builders at Valley of Lakes. As a consequence, except as otherwise noted, no further permits for construction will be issued and you will be denied permission to build at the Valley. You are hereby notified that access to the Valley shall be limited to the following purposes: 1. Correcting the violations and deficiencies. 2. Completing construction of all homes where a permit has already been issued by C.B.G. to the owner or to you and work is under way. 3. Construction of the home for the Johnstons upon issuance of the permit to them. 4. Access to the property you have rented. 5. Access to any properties you may own. If the violations and/or deficiencies are not corrected or provision made for correction or abatement within seven (7) days from the date of this letter, then all access to the Valley will be denied except for the purpose of correction or abatement, and except for access to your owned or rented properties. However, all other rights and privileges afforded to you as an owner or renter, including use of amenities, will be revoked. If the deficiencies are not corrected within seven (7) days of the date of this letter, CBG may, at its option, take all remedial action it deems necessary and charge all costs, expenses and administrative add-on to your account, The above actions are being taken without prejudice to any other rights or remedies available at law or equity or in any other appropriate tribunal. If you fail to comply with this notice, CBG will take any and all action that it deems appropriate. Compliance shall be to the satisfaction of C.B.G. Limited, acting initially by and through its appointed representatives. Your immediate action is requested. Very truly yours, /s/ Frank M. Cedrone General Partner FMC/va cc: John Mattioni, Esquire Marvin 0. Schwartz, Esquire EXHIBIT "A" CICCOZZI CONSTRUCTION CO.,.INC. SUMMARY OF VIOLATIONS The following is a summary of violations pertaining to Ciccozzi Construction, Inc. ("Ciccozzi") as noted on routine inspections conducted on March 12 and 13, 1990, and thereafter. For each condition noted, applicable provisions of the Covenants and Restrictions, Rules and Regulations, and Building Code relating to Valley of Lakes Development which the condition violates is also set forth. However, failure to list a provision is not intended to nor should it be deemed to be a waiver of any other provision violated. 1. Driveway ramp constructed by Ciccozzi for access to Lot 1-82 protrudes onto and partially blocks the roadway on Iroquois Circle and blocks a drainage ditch. This condition is in violation of at least, the following: A. Covenants and Restrictions Article V.1 (a), Which prohibits construction of anything on a lot so as to create a hazard upon or block the vision of motorists upon the Valley roads. Article V.2 (c), which prohibits activities as determined by CBG that are offensive, an annoyance or nuisance to CBG other property owners, or the neighborhood. Article V.2 (i), which prohibits nuisances which are detrimental to other lots, their occupants of to the Common Areas. Article V.2 (j), which prohibits offensive uses, and the committing of waste to any Common Areas. B. Rules and Regulations Article IV,E., prohibiting the destruction damage, injury defacing or disturbance of common areas or of the property of CBG, and requiring that property rights and interests of CBG be respected by all persons. Article XIII.A.2, which requires contractors to keep drainage ditches and other means of run off control free of debris and obstruction. Article XIII.B.11, which prohibits activities determined by CBG to be offensive, annoying or a nuisance. Article XIII.C.5, which requires persons to cleanup and remove any dirt, refuse, trash or other waste placed by them on any part of the Valley, including the road system. Article XIII.C.6, which requires contractors to cleanup all dirt or debris generated by any work they perform in the Valley. Article XV.2, permitting CBG to discipline, evict or take other action against any person for conduct which CBG determines may endanger health, welfare or property of others. C. Building Code Work Site Organization Paragraph 2, requiring contractors to maintain an orderly construction site. Paragraph 3, requiring that construction materials should Paragraph 7, prohibiting any culvert or drainage ditch from being temporarily or permanently stopped. Paragraph 11, requiring contractors to immediately remove mud from all black top roads. 2. Excess rock including huge boulders and other excavated materials from Lot I-82 have been dumped by Ciccozzi on Lots I-27 and I-28. Rock and excavated material have also been dumped at corner of Lots J-32 and J-33 covering and damaging property stakes and water curb boxes. These conditions are in violation of at least the following: A. Covenants and Restrictions Article V.2.(c) (1) and (i), prohibiting activities which are offensive, annoying or a nuisance, and the committing of waste to any Common Areas. Article V.3. (a) requiring that lots be kept clean and free of debris. B. Rules and Regulations Article IV.E., prohibiting the destruction, damage, injury, defacing or disturbance of property of CBG or of other property owners, and requiring that the property rights and interests of CBG and all other owners be respected. Article XIII.B.1, requiring that lots and property be kept free and clear of debris. Article XIII.B.11, prohibiting activities determined by CBG to be offensive, annoying or a nuisance. Article XIII.C.3, prohibiting the dumping of refuse or solid waste in any area of the Valley. Article XIII.C.5, requiring persons to clean up and remove any dirt, refuse, trash or other waste placed by them on any part of the Valley, Article XIII.C.6, requiring contractors to cleanup all dirt or debris generated by any work performed in the Valley. Article XV.2, permitting CBG to discipline, evict or take other action against any person for conduct which CBG determines may endanger health, welfare or property of others. C. Building Code Work Site Organization Paragraph 2, requiring contractors to maintain an orderly construction site. Paragraph 3, prohibiting superfluous construction material from being left for an unreasonable period of time. Paragraph 4, requiring that all construction materials be neatly piled within the boundaries of the construction site. Paragraph 5, prohibiting spoil from protruding onto any neighboring lot. Paragraph 6,prohibiting spoil from running on neighboring lots. General Prohibiting excess backfills to remain during con- structure, and requiring its removal at time of excavation. 3. Excess building material and construction debris and waste is being stored on the property of a completed home (Lot B-1) which is leased by Ciccozzi from Richard Templin for use as a model. Piles of building material encroach upon the adjacent roadway, and the "green belt" to the rear of the lot and butting Choctaw Drive. This is in violation of at least the following: A. Covenants and Restrictions Article V.l.(a), prohibiting placement on a lot of anything which creates a hazard upon or blocks the vision of motorists upon roads of the Valley. Article V.l.(e), prohibiting obstructions to visibility at street intersections. Article V. 1. (h), requiring that all materials, supplies and equipment stored outside must be con- cealed from view from roads and adjacent properties. Article V.2 (a) and (d), restricting lots to residential use and requiring prior written approval from CBG for the use of a lot for a commercial, business, trade or other non-residential use. Although use of a home as a model is permissible, storage of building materials and debris after construction is beyond the scope of that limited exception. Article V.2 (c). (i) and (j), prohibiting nuisances, and offensive and annoying activities and the committing of waste to any Common Area. Article V.3 (a) and VIII.7 (a), requiring that lots be kept clean and free from debris. B. Rules and Regulations Article III.H.7, requiring renters to obey the Rules and Regulations of Valley of Lakes. Article IV.E, prohibiting the disturbance of common areas or of property of CBG, and requiring all persons to respect the property rights and interests of CBG and other owners. Article XIII.B.1, requiring lots to be kept free of rubbish, junk, refuse, debris and similar materials. Article XIII.B.7, requiring that grounds be main- tained in a good and clean condition and in a reasonable safe manner. Article B.11, prohibiting nuisances, and offensive and annoying activities. Article XIII.C.3, prohibiting dumping solid waste in any area of the Valley. Article XIII.C.5, requiring that dirt, debris, refuse, trash and other waste be cleaned up and removed by person depositing same. Article XIII.C.6, requiring contractors to cleanup all dirt, debris and trash generated by work performed in the Valley. Building Code Model Home, prohibiting model homes from appearing as supply depots. Work Site Organization Paragraph 2, requiring Builders to maintain an orderly model site. Paragraph 4, requiring that all construction material be piled up neatly within the boundary of the construction site and covered whenever possible. Paragraph 3, prohibiting superfluous construction material from being left on a site longer than is reasonable necessary as determined by CBG. Paragraph 5., prohibiting construction materials from protruding onto neighboring lots, right-of-ways, or access roads, 4. Excavation of Lot I-82 has resulted in unsupported and unrestrained vertical wall of the mountain exposed to the elements with no means of erosion control. The danger of a rock or land slide or other uncontrolled erosion is highly possible, especially in the event of inclement weather, posing a serious threat to life and property. No fencing is provided to prevent persons from falling into the excavation. This condition is in violation of a least the following: A. Covenants and Restrictions Article V.2 (c), which prohibits activities as determined by CBG that are offensive, and annoyance or nuisance. Article V.2 (i), which prohibits nuisances which are detrimental to other lots or their occupants. B. Rules and Regulations Article XIII.A.2 requiring contractors to take all necessary steps to assure that adequate provision is made to control erosion and soil runoff, and to per- form all soil work in conformity to a reasonable plan for limiting soil erosion and control of sedimentation. Article XIII.B.11, prohibiting activities which are offensive, an annoyance or a nuisance. Article XV.2, permitting CBG to discipline, evict or take other action against any person for conduct which CBG determines may endanger the health, welfare or property of others.
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