DEVELOPMENT PERMIT

Gregg’s Landing R.P.U.D. Development Permit

For

POD E – Oakmont

KB Home (formally known as the Zale Companies)

First Amendment

WHEREAS, on April 9, 1996, the Village of Vernon Hills (the “Village”) enacted Resolution No. 96-06 granting final R.P.U.D.Development Plan Approval, final site and Landscape Approval, final Subdivision Plat Approval, and Final Resubdivision Plat Approval (the “Resolution”) for the Gregg’s Landing Development of the Cuneo Property (“Gregg’s Landing”); and

WHEREAS, the Resolution, in Section 2, paragraph 5, sets forth the requirements for the issuance of a Development Permit (“Development Standards’) for the development of individual pods within Gregg’s Landing; and

WHEREAS, the Village Board has reviewed the proposed single-family housing development of Pod E, and has taken into account the recommendations of the Village Staff and Planning and Zoning Commission.

In consideration of the foregoing as set forth herein, the Village grants to Zale Companies a Final Development Permit for Pod E, subject to the following conditions:

1. The “WHEREAS” clauses set forth above are hereby incorporated as part of the terms and conditions of this agreement.

2. Zale Companies, the Developer of Pod E (the “Developer”) shall be allowed to commence construction of the infrastructure of Pod E.

3. Compliance with the site (SP-1) and landscaping (LP-1 thru 3) plans prepared by Allen L. Kracower & Associates, Inc. with a revision date 5-8-03 except as may be amended by the Village Landscape Architect.

4. Compliance with the final plat of resubdivision and improvement plans prepared by Spaceco with a revision date 5/9/03 except as may be amended by the Village Engineer.

5. Compliance with the Technical Review comments and responses from Zale Homes in the letter dated April 25, 2003 and Allen L. Kracower & Associates, Inc. with a date 5/5/03.

6. Conditions of approval:

a) The Developer is granted a variation from exterior material requirements to allow the use of materials other than masonry products, i.e. cedar siding, “Hardiplank” type cement siding and/or EFIS for the first floor of all the models

b) Group mailboxes shall be of uniform design and furnished and installed by the US Post Office according to Department of public works and US Postal Service specifications. The developer will provide the concrete base, but the mailboxes are furnished and installed by the Post Office.

c) Chimneys located on the exterior of the building wall shall be masonry. Interior flues shall be enclosed with architecturally appropriate materials to the style and color of the building siding.

d) The 20-foot front yard, 6-foot side yard and 30-foot rear yard setback requirements are approved.

e) The FAR requirements as setforth in the Resolution 96-06 are waived.

f) The developer shall install light poles on the pedestrian path, benches, signposts and gazebo consistent with the pictures attached in Exhibit A thru D. The gazebo shall be constructed of as much maintenance free materials as possible.

g) No driveway access to Lakeview or Gregg’s Parkways shall be permitted for Lots 1 – 22.

h) Staff and developer review of lighting issue in alleys throughout the POD.

i) The “Letter of Awareness” as attached in Exhibit E shall be signed by the Zale Companies and buyers of the individual lots submitted to the Village by Zale Companies with each corresponding building permit application.

j) The developer shall work with the Village and Fire Department to insure appropriate addressing and street naming is achieved to minimize confusion within the POD.

k) The Sales Trailer (LP-4) and Entrance Sign (LP-2) plan prepared by Allen L. Kracower & Associates, Inc., with a revision date of 1-28-03 and 5-08-03 except as may be amended by the Village Landscape Architect, is hereby approved.

l) Review and approval of the Village Attorney of the HOA documents.

m) Residential Chimney and Vent Enclosure, Flashing, & Spark Arrestor/Rain Cap Specifications for Gregg’s Landing shall be provided as follows:

1. All chimneys and vents used for venting wood burning appliances or gas-fueled fireplaces shall be enclosed in a chimney chase. Exterior finish materials shall match or compliment the predominant exterior finish material of the dwelling except as other provided for within this Agreement. All portions of the venting system including termination spark arrestors and rain caps that penetrate through the chimney chase shall be black in color.

2. All intake and exhaust vents used for venting water heaters, furnaces and similar appliances that penetrate through the roof shall be installed at the minimum height allowed by the manufacturer specifications. Ideally, vents shall be installed below the ridge of the roof so the vent is not visible when viewed from the front property line. All portions of the venting system, including termination rain caps, may remain their natural color when installed through the roof.

3. If manufacturer specifications require an intake or exhaust vent to terminate more than three feet above the roof, said vent shall be enclosed in a chimney chase. All portions of the vents, including termination rain and spark arrestor caps that penetrate a chimney chase shall be black in color. It is preferred that all intake or exhaust vents are grouped within the same enclosure when more than one is present.

4. For framed chimney chases, the metal flashing that is placed on the top of the chase and that extends two (2) to three (3) inches around all sides, shall be copper-colored.

n) Lot 69 – Due to the irregular shape and limited building area of this lot, the Building Commissioner is authorized to approve a new dwelling design as long as the architecture is in concert with approved models as specified in this Development Permit.

o) Lot 90 – A variance is granted that will allow the front porch of the B English Cottage model to encroach into the required front yard up to 1.2 feet.

p) F Prairie Model – A “blanket” variance is granted for the overhangs (gutters included) to encroach into the required yard up to thirty (30) inches.

q) Compliance with the following building plans prepared by the Bloodgood, Sharp and Buster, with a submittal dated of May 9, 2003 and including front, side and rear elevations, as attached as Exhibit A, are approved:

Plan A – Front Load Condition

· Craftsman Design

· Shingle Design

· Southern Classical Design

· Art and Crafts Design

Plan B – Rear Load Condition

· Four Square Design

· Classical Design

· Tudor Design

· English Cottage Design

Plan C– Front Load Condition

· Victorian Design

· Georgian Design

· Tudor Design

· English Manor Design

Plan D – Rear Load Condition

· Farm House Design

· Colonial Revival Design

· French Country Design

· Tudor Design

Plan E– Front Load Condition

· Craftsman Design

· Colonial Design

· English Cottage Design

· Georgian Design

Plan F – Rear Load Condition

· Farmhouse Design

· Victorian Design

· Prairie Design*

· French Country Design

Plan G – Rear Load Condition

· Craftsman Design

· Southern Classical Design

· Art and Crafts Design

· Georgian Design

Plan H– Front Load Condition

· Shingle Design

· Federal Design

7. This Development Permit (“Permit”) was originally granted to Zale Homes, Inc. (currently known as KB Home), on June 5, 2003 and amended on December 2, 2003 subject to the terms and conditions contained herein. This Permit is not transferable to any entity that is not wholly controlled by KB Home.

The Board of Trustees of the Village of Vernon Hills on December 2, 2003 has authorized the Village President to execute this Agreement.

Adopted by roll call vote as follows:

AYES:

NAYS:

ABSENT AND NOT VOTING:

____________________________

Roger L. Byrne

Village President

PASSED:

APPROVED:

PUBLISHED IN PAMPHLET FORM:

ATTEST:

___________________________

Jeanne M. Schwartz

Village Clerk

Exhibit ____

Oakmont at Gregg’s Landing

Letter of Awareness

Purchaser(s) _____________________________

Lot Number ______________________________

Property Address __________________________

As the future purchaser of the above referenced property, Zale Homes would like to make you aware of

A railroad right-of-way and track lies along the southern boundary of the Oakmont Community. The right-of-way and track is owned by the Elgin, Joliet and Eastern (EJ&E) Railroad and is currently being used as a freight line. Studies are currently ongoing about the possible conversion of the right-of-way and track to a combined METRA commuter and freight line. No decision on converting the line has been made at this date. For additional information, please contact METRA at 312-332-6900 or the EJ&E Railroad at 219-883-4201.

The vacant property located east of the Oakmont development on either side Gregg’s Parkway and extending out to Milwaukee Avenue is zoned B-1 General Business and will be developed with multiple commercial or retail uses. There will be landscape screening along the property line between Oakmont at Gregg’s Landing and the commercial properties. As of the date of letter, it is unknown whether any development plans are currently under review by the Village. For more information, please contact the Village of Vernon Hills Community Development Department at 847-918-3562.

In the Oakmont at Gregg’s Landing development, the Pedestrian Trail located in the central portion of the development and the alley system which provides access to many of the garages throughout the development will be part of the Community Area and will be owned and maintained by the Oakmont at Gregg’s Landing Homeowners’ Association (HOA).

The greenway and bikepath, which runs parallel with the railroad right-of-way as described in Item 1 above, contains a 10-foot utility easement to the benefit of the Village of Mundelein. Within this easement is the sanitary sewer, which conveys all wastewater from the Village of Mundelein to its treatment plan located east of Milwaukee Avenue. The Village of Vernon Hills owns the bikepath while the greenway is owned and maintained by the Gregg’s Landing North HOA.

The Cuneo Museum Property located south and east of the Oakmont at Gregg’s Landing development is the home of the Village of Vernon Hills Holiday Light Show. This event takes place during the evenings, Monday thru Sunday from the day after Thanksgiving to New Years Eve. It attracts approximately 20,000 cars annually. The Gregg’s Landing development will be impacted by the Show due to traffic flow and street restrictions in and around the development. The Village will try to minimize the amount of inconvenience you will experience during the show.

We acknowledge that we have received and reviewed this Letter of Awareness. Based on the signatures below, I/we have read and fully understand the items listed above.

Buyer___________________________

Date____________________________

Acknowledgement

I,______________________, being the Zale Homes Sales Representative who has worked with the buyers listed above, do hereby acknowledge that I have fully reviewed this Letter of Awareness with the Buyers.

Zale Homes Sales Representative ___________________________________

Sales Person (Printed Name) _______________________________________