These covenants were replaced in May 2009 with the membership approval of the Bylaws; Covenants, Conditions, Restrictions, And Reservations Of The Kahler Glen Athletic Club
ARTICLE I. ORGANIZATION AND NAME
Section 1. Name
The name of the corporation shall be the Kahler Glen Athletic Club and for designated purposes may be referred to as the “KGAC” in these covenants.
Section 2. Location
The principal office of the KGAC shall be at 20700 Kahler Drive, Leavenworth, WA, 98826, but nothing shall prevent the holding of meetings or the transaction of any business pertinent to the KGAC at some other place providing adequate notice is provided.
Section 3. Object
The primary purpose for which the KGAC is being formed is to own, establish, and maintain a multi-use recreational facility for the exclusive use of its members and guests. The facility shall initially be equipped with an indoor heated pool, spa, sauna, sports-court, exercise room and exercise equipment, locker rooms, restroom facilities, and patio area, as well as such other recreational facilities which may be determined as necessary and convenient for the benefit of the membership. The KGAC, from time to time, reserves the right to modify, add, or delete the recreational facilities or equipment with a 75% majority vote of the membership.
Section 4. Accounting
For accounting purposes the fiscal year shall commence on May 1st and end on April 30th.
Section 5. Purpose of the KGAC
The KGAC is a non profit corporation and the ownership, management and control of the Club shall be vested in those that own a membership.
Section 6. Distribution of Assets
In the event of liquidation, and after payment of all debts and liabilities, contingent or otherwise, and in compliance with state laws, the remaining assets shall be distributed to each membership owner on a pro-rata share basis.
ARTICLE II. MEMBERSHIP
Section 1. Nondiscrimination
Membership is open to any person or family of good character and responsible credit background. KCAC policy is to accept applications for membership without regard to race, creed, color, sex, or national origin.
Section 2. Membership Terms
Memberships are limited to Equity Owners and their direct families.All memberships are perpetual but may be transferred, gifted, or sold to a transferee in accordance with Article II –Section 11 and 12. The transfer shall be subject to the approval of the Board of Directors of the KGAC, and shall not be valid until the new transferee completes the registration process and pays an administrative fee to the KGAC. Until the transfer has been consummated, as herein provided, the transferor shall remain liable for all KGAC dues and charges.
Section 3. Voting Rights
Each membership is equivalent to purchasing an equity share of the Club.Each member will retain one vote per Equity Ownership for business decisions presented by the Board at Annual meetings or special meetings.
Section 4. Membership Classifications
There shall be two types of membership classifications: 1) Charter Memberships were available under the cut-off date of August 1st, 2001. A Total of 85 Charter Memberships shall be available. 2) General memberships are available after August 1st, 2001. The total membership shall never exceed 150 members, but may be reduced below 150 with a 75% majority vote. The limit of 85 Charter Members may not be amended or changed.
Section 5. Membership Pricing
The KGAC Board of Directors shall be authorized to establish the dues, initiation and or/transfer fees for each classification.
Section 6. Charter Memberships
Charter members shall enjoy the following permanent benefits: free lockers, and a $120 reduction on annual dues each year. Charter members that have purchased multiple undeveloped lots in the Kahler Glen Development shall be provided a discounted operating expense fee of $120 per year per lot, but shall pay their pro-rata share of residual mortgage expenses. If a lot in the Kahler Glen Development is subsequently sold and the membership is purchased or transferred to a new owner, the new owner shall pay full operating expenses without the benefit of a multi-property discount.
Section 7. General Membership
The general membership equity share shall start at $7,500 and shall increase in cost in accordance with the Board of Directors. In addition to the initiation fee, general members shall pay annual dues priced at $120 per year above the charter membership rate, plus a mandatory locker fee of no less than $10 per month.
Section 8. Membership Rights
Membership rights are limited to equity owners and their direct families. Equity owners and families shall consist of the purchaser of the membership, his or her spouse or partner, their parents, and their children, and grandchildren. Other extended family members are considered guests of the equity owner and must be accompanied by an equity owner or one of their direct families. Each equity owner shall provide a list of names and relationships in writing to the Secretary of the Association of all persons entitled to exercise ownership rights during the registration process. This list may be amended and modified annually or as required.
Section 9. Guests
A current equity owner or one of their direct families must accompany all guests. Guests who live outside of a 50 mile radius and do not own property in Chelan County are allowed when accompanied by a member or one of their family guests. Guests who live within the 50 mile radius shall be limited to 2 visits per year in an effort to encourage them to become members. A guest is subject to all the rules and regulations of the Club. All members and guests must sign in the register upon entry to the facility.
Section 10. Leased or Rental Properties
Any permanent or temporary visitors of an equity owner, renters or lessor’s of an equity owner’s property shall not be entitled to membership rights unless accompanied by an equity owner. (The interest is personal to the owner of the equity interest and not his/her real property) Section 10. Transfers of Memberships Any equity owner, who is current in the payment of all KGAC dues, fees, and charges, may transfer his or her membership by sale or gift to a person exclusive of a corporation, trust, or other artificial entity. If the purchase is by sale, it may be for such price and on such terms as the transferor and transferee decide. The transfer shall be subject to the approval of the Board of Directors of the KGAC, and shall not be valid until the new transferee completes the registration process and pays an administrative fee to the KGAC. Until the transfer has been consummated, as herein provided, the transferor shall remain liable for all KGAC dues and charges. A transfer by gift to a spouse, partner, son, or daughter, or other party, shall not be effective until the Board of Directors has approved the transferee for ownership. The transferor must be current in the payment of all KGAC dues, fees, and charges and the new transferee must complete the registration process and pay an administrative fee to the KGAC prior to approving the transfer.
Section 11. Transfers Upon Death Upon the death of an equity owner, the personal representative of such member’s estate shall determine the new transferee. The term “personal representative” as herein shall include a person appointed or confirmed by a court as executor, administrator, or personal representative of a decedent’s estate, or a trustee under a living trust, or a surviving spouse or other distributor under a community property agreement. Any such transfer shall not create greater rights than the decedent had in his or her equity membership. The transfer shall be subject to the approval of the Board of Directors of the KGAC, and shall not be valid until the new transferee completes the registration process and pays an administrative fee to the KGAC. Until the transfer has been consummated, as herein provided, the transferor shall remain liable for all KGAC dues and charges.