TC Minutes 12-02-1986i
MINUTES OF A SPECIAL AVON TOWN COUNCIL MEETING
HELD DECEMBER 2, 1986, - 2:30 P.M.
A Special Meeting of the Town Council of the Town of Avon,
Colorado, was held in the Municipal Building, 400 Benchmark Road,
Avon, Colorado, in the Council Chambers.
Mayor Nottingham called the meeting to order at 2:40 p.m. A roll
call was taken with Emilie Harrison, Steve Miller, Clint Watkins,
Gloria McRory, and Jerry Davis present. Councilman Connell
arrived at 3:50 p.m. Also present were Town Manager Bill James,
Consultant Arnie Ray, Developer Ted Bendelow, and members of the
press and public.
The Mayor stated that the purpose of the meeting was to discuss
the progress of the shopping center negotiations.
Mr. James stated that today was the deadline for the developers to
provide commitments, satisfactory to the Town, for financing
sufficient to proceed with the project. He stated that the
financial information he had to present to Council was
confidential, and requested that Council adjourn into Executive
Session. This was also a particular request of the developers.
Councilman Watkins felt that information regarding the financial
commitment should be received in a public session.
The Mayor felt an Executive Session was appropriate.
Mr. James stated that there was information appropriate for a
public session, but there were confidential matters to be related
to Council, first.
Discussion followed.
Mr. James and Mr. Ray proceeded with their recommendations to
Council. Mr. Ray stated that the draft financial commitment
which was made to Lester Colodny, who was not one of the
principals of the existing development team, was unacceptable for
a number of reasons. He stated he had four recommendations for
the Council, as follows: (1) Council would not agreed to any
assignment of the development agreement without specific consent
of the existing parties, without verification of the qualifica-
tions and experience of any new principals, and without definition
of the principals and their roles; (2) Council would declare the
agreement to be in default, as regards the financing issue, as of
December 1st, and would terminate the exclusivity; (3) the Town
would explore alternative options - specifically, talking to
Wal-mart, to the property owners, and to alternative developers;
(4) the Town would encourage the Bendelow team to continue to work
on a specific development program to submit to the Town, and if an
acceptable program was submitted prior to the selection of another
developer, the Town would stop actively exploring alternatives and
enter into a new development agreement with Bendelow.
Mr. James stated that, since the Bendelow team has brought people
into the deal without the Town's prior knowledge or approval, and
has thereby clouded the issue of who the principals are, Mr.
Bendelow was presented with six conditions, as follows: (1)
present parties must agree to any assignments, in writing; (2)
Wal-mart must endorse the new arrangement; (3) qualifications,
experience, and references for all new parties must be provided,
and the Town must have the right to check all references; (4) a
clear definition of the principals and their roles must be
provided; (5) approved financing, acceptable to the Town, must be
provided, without any extraordinary conditions; (6) Mr. Colodny,
or his agent, was asked to attend this meeting.
Mr. Ray stated that an agent of Mr. Colodny's was present, and
stated that some of the points had already been addressed by the
Bendelow team.
Ted Bendelow approached the Council. He introduced John Elletson,
Project Manager with Indeco Holdings, Ltd., to the Council.
Mr. Bendelow stated that a commitment for twelve million dollars
was provided, yesterday. It contained provisions that had been
questioned, that he was not prepared to address, that he felt
could be worked out before the deadline for closing on the land.
He saw no problems with providing clarification and definitions on
the new parties.
Mr. Elletson gave a brief overview of Indeco Holdings, a real
estate development company with its corporate office in Glenwood
Springs.
Brief discussion followed.
The Mayor asked for a motion to retire into Executive Session.
Councilwoman McRory so moved; Councilman Miller seconded the
motion. The motion carried by a 5 to 1 vote, with Councilman
Watkins voting "nay".
Council retired into Executive Session at 3:05. p.m.
Following the Council's Executive Session, and a hearing of the
Town's Liquor Licensing Authority, the Special Meeting of the Town
Council was reconvened by Mayor Nottingham at 7:17 p.m.
With the exception of Councilman Miller, and the addition of Town
Attorney John Dunn, attendance was the same.
Mr. Bendelow stated that an agreement
had been reached that he
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hoped would be mutually acceptable. It was presented to Council
in the form of Resolution No. 86-28, Series of 1986, which set
forth the conditions listed above and established three new
deadlines.
The resolution called for a developers' package to be presented to
the Town by 12/3/86, to include the six items listed above; it
called for Avon to respond to such package by 12/4/86; it called
for a financing commitment, signed by the lender and the
developer, to be provided to Avon by 12/9/86; and it restated the
deadline for a cash closing as 12/15/86.
Mr. James stated that any change to the dates agreed to should
be construed as automatic default.
Councilman Davis felt the resolution was a good compromise.
It was agreed by all to add the following words to #3 on the
second page of the resolution. After the word, "commitment", add,
"in the same form as that presented to the Town on December 1,
1986".
Councilman Watkins moved approval of Resolution No. 86-28, Series
of 1986, with the addition to #3 as written above. The motion was
seconded by Councilwoman Harrison, and carried unanimously.
Mr. Bendelow thanked the Council for their consideration.
There being no further business to come before the Council,
Councilman Davis moved to adjourn. Councilwoman McRory seconded
the motion, and it carried unanimously. Mayor Nottingham
adjourned the meeting at 7:30 p.m.
APPROVED:
Respectfully Submitted:
arbara R. Joseph
Deputy Town Clerk
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