23. Commercial Rules

Owners must provide the names of and contact information for commercial tenants, including addresses, email addresses, and phone numbers, to the Managing Agent within five (5) days of entering into any lease agreement. No commercial enterprise may operate in Loreto Bay unless it is in compliance with the requirements of the Design Review Committee

Owners must provide their tenants with a complete set of the Loreto Bay

Master Condominium Rules and Regulations, the applicable SubCondominium Rules and Regulations, the Design Review Guidelines, if appropriate, and the Administrators Rules. Owners must provide proof of receipt of same by their tenants to the Managing Agent within five (5) days of entering into any lease agreement.

Owners may delegate their responsibilities under the Commercial Rules to their property managers; however, Owners are fully responsible for ensuring the compliance of their tenants with these Administrators Rules, and Owners are subject to sanctions for the violations of these Administrators Rules or any rules and regulations of the Master Condominium by their tenants.

Tenants and their Guests are entitled to access to the same amenities as Owners and Occupants of non-commercial property, subject to any restrictions in the applicable lease, including use of the pools and community centers, but such privileges do not extend to employees, workers, customers or others, unless they are Guests of and accompanied by the tenants at the time the amenity in question is actually being used.

23B. Hours of Operation

The hours of operation for commercial enterprises operated in Commercial and Mixed Use Units that abut the sidewalk bordering the Paseo Misión de Loreto must fall within the hours of 7:00 AM to 10:00 PM, unless additional hours are approved by the Managing Agent.

The hours of operation for commercial enterprises operated in Commercial and Mixed Use Units located within neighborhoods that do not abut the sidewalk bordering the Paseo Misión de Loreto must fall within the following hours:

• Monday-Friday, from 8:00 AM to 5:00 PM
• Saturday, from 8:00 AM to 1:00 PM
• No commercial activity is permitted on Sunday or designated holidays, unless approved by the Managing Agent.

“Hours of operation” means those hours when a commercial enterprise may be open to the public pursuant to these rules. Commercial enterprises may not open their doors to the pubic outside the established hours of operations, without the approval of the Managing Agent; however, business activities, including but not limited to cleaning, taking inventory, serving final customers admitted during the permitted hours of operation, may be conducted outside the permitted hours of operation, if the doors have been shut at the close of hours of operation and no new customers are admitted. In addition, owners and tenants of Commercial and Mixed Use Units may occupy the premises and conduct personal activities that would be permitted in any private residence outside the established hours of operation, so long as they comply with all applicable rules and regulations pertaining to noise and other nuisances.

Any commercial enterprise wishing to operate outside the hours defined herein may do so only pursuant to approval of the Managing Agent, as provided above, or a Special Use Permit granted pursuant to the rules and regulations of the Master Condominium and in compliance with all local licensing requirements, municipal, ordinances, and the Law.

23C. Concession Services to Pools

The providers of concessionary services and the services provided by them to persons using the pools of the Master Condominium must be previously approved by the Managing Agent. The authorization and the conditions for the provision of such concessionary services will be established in writing by the Managing Agent. The provision and continued operation of such concessionary services is subject to compliance with all conditions established by the Managing Agent regarding trash removal, approved utensils, containers and packaging, the method of delivery, or other reasonable requirements. Provision of concessionary services is limited to the hours between 11:00 AM and 6:00 PM.

23D. Building Modifications

Any construction or any modifications to the interior or exterior of existing structures to accommodate commercial businesses must be approved by the Design Review Committee in accordance with the Design Review Guidelines, and no business may operate in Loreto Bay unless the Design Review Committee has approved such construction or modifications as compliant with all requirements in writing. In all cases, such construction must comply with all licensing requirements, municipal ordinances, and the Law. A valid construction permit must be obtained and maintained throughout the construction process. Based on the proposed commercial activity, the location of the Unit, and the character of the neighborhood, the Design Review Committee may consider and require appropriate and reasonable modifications to the property or any structures thereon to address and mitigate potential problems with trash and trash collection, traffic, parking availability, odors, noise, and nuisances and safety hazards that may be generated by such commercial activities. Owners must comply with the requirements of the Design Review Committee in regard to any modifications to the property, and all required business or other licenses must be obtained before any new business may open.

23E. Noise Control

Except as otherwise specified in these rules, excessive noise is not permitted at any time.

Unless otherwise specified in these rules, “excessive noise” is any noise exceeding 65 decibels during the hours of 8:00 AM to 11:00 PM or 55 decibels during the hours of 11:00 PM to 8:00 AM, as measured within three to five feet of any exterior wall of the unit or location generating the subject noise or any other reasonable location that will assist in the determination whether the alleged noise violation constitutes “excessive noise”, using an application approved by the Managing Agent.

Between the hours of 8:00 AM and 11:00 PM neighbors with complaints of excessive noise must alert Area Supervision personnel to request enforcement of this rule prohibiting excessive noise; during these hours Area Supervision personnel may not independently enforce this rule without authorization from the Managing Agent.

Between the hours of 11:00 PM and 8:00 AM, in addition to enforcing any complaint made by a neighbor, Area Supervision personnel may independently enforce this rule. The Managing Agent or Area Supervision personnel will investigate and request that any excessive noise or volume level be lowered, prior to any formal notice of violation being issued.

Amplified music may not be played between 11:00 PM and 8 AM, unless it is authorized as a part of an approved event.

Commercial units must take all reasonable steps to limit the level of noise that escapes into the streets or is heard in nearby residences in order to remain within the established decibel levels set forth herein; however, Owners of commercial units may apply to the Administrators for a variance to permit a higher decibel level for the business currently occupying a commercial space during the house between 8:00 AM and 11:00 PM. Such variances will be specific to the business that is the subject of the variance application and will not automatically transfer to any subsequent business occupying the same space. Commercial enterprises applying for a variance to the excessive noise standard must submit an application to the Managing Agent, providing all information required by the Managing Agent, and must agree to inspection by the Managing Agent to determine what efforts have already been made to mitigate noise escaping the premises. The need for a variance will be determined by the Administrators after giving full consideration to the benefits and enjoyment that commercial enterprises provide to the community, the extra traffic and noise reasonably associated with commercial enterprises, the steps that have been or could be taken to mitigate noise on the premises, the rights of nearby Owners to the enjoyment of their property, other pertinent factors, and the Law.

23F. Safety; Nuisances; Compliance with Law

No commercial enterprise may be operated in a way that is a nuisance, hazardous, offensive, or a threat to the security or safety of other Owners or Occupants or violates the Rules and Regulations of Loreto Bay.

No violation of any applicable local, state, or federal law by any Owner or Occupant of any commercial unit, or by any agent, employee, worker or day laborer conducting or involved in any commercial activity in any commercial unit in Loreto Bay is permitted.

23G. Commercial Trash

The Managing Agent is authorized to identify commercial enterprises conducted in commercial units that generate excess trash. These enterprises will be provided with separate trash containers the cost of which must be paid by the commercial enterprise. The cost to the commercial enterprise for the containers will be the same as that paid by the Administrators to acquire the containers. Once provided these containers must be identified by the commercial enterprise with the name of the enterprise and secured by the enterprise in a way that they cannot be accessed by any other person or enterprise with the exception of Managing Agent and the trash collectors. The Managing Agent will specify where these trash containers must be located in consultation with the commercial enterprise and the Surveillance Committee of the Sub-Condominium within which the containers are located. These commercial enterprises must sort and deposit all trash from their enterprise in the separate trash containers only. Any commercial enterprise provide with separate trash containers must use only those containers and will be subject to fines as set out in these Administrators Rules for the failure to do so. The Administrators will arrange for the removal of the trash from these separate containers everyday Monday through Saturday. The commercial enterprise will be responsible for the actual cost of the commercial trash removal not covered under the regular non-commercial trash removal contract provisions.

A commercial enterprise which disagrees with the Managing Agent’s identification of that enterprise as generating excess trash, may appeal to the Administrators for a review of the Managing Agent’s identification. The appeal must be made to the Administrators within 14 business days of the identification by the Managing Agent. Notice of the appeal must be provided in writing to the Managing Agent and the Managing Agent will then schedule a hearing on the appeal. The Administrators, or a panel of at least three persons appointed by the Administrators, may hear the appeal. The enterprise making the appeal may make their appeal in writing or in person. The decision of Administrators or the appointed panel is final.

Commercial enterprises not identified by the Managing Agent as generating excess trash must sort and deposit the trash from their enterprise in the trash containers provide for residential trash.

All commercial enterprises which generate organic trash must contain such trash so as to prevent the escape of any material and minimize the escape of odors and are subject to fines as set out in these Administrators Rules for the failure to do so.