TC Minutes 12-16-19860 0
MINUTES OF A SPECIAL MEETING OF THE AVON TOWN COUNCIL
HELD DECEMBER 16, 1986 - 12:00 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 12:10 p.m. A roll
call was taken, with Steve Miller, Emilie Harrison, Clint Watkins,
Gloria McRory, Al Connell, and Jerry Davis present. Also present
were Town Manager Bill James, Town Attorney John Dunn, Director of
Public Works/Parks/Recreation Larry Brooks, Director of Engineer-
ing/Community Development Norm Wood, Police Chief Joe Olson, Vail
Town Manager Ron Phillips, and members of the press and public.
The first item of business was Resolution No. 86-30, Series of
1986, A RESOLUTION APPROVING A FINAL SUBDIVISION PLAT AND
CONDOMINIUM MAP OF THE FALCON POINTE CONDOMINIUM, LOT 45, BLOCK 2,
TOWN OF AVON, EAGLE COUNTY, COLORADO AND FINAL SUBDIVISION PLAT
AMENDMENT NO. 4, BENCHMARK AT BEAVER CREEK.
The resolution was tabled at the December 9th meeting, to allow
Council more time to review it.
Mark Mitchell, representing Falcon Pointe, approached the Council.
He stated that the problems with Beaver Creek West had been
resolved. He presented Council with a letter from Beaver Creek
West in support of the Final Plat. The Mayor asked about the
status of the Subdivision Agreement.
Mr. Mitchell stated that the Agreement had been revised to address
the concerns of Mr. Dunn. In response to a question from Council-
man Watkins, Mr. Mitchell stated that A.C.P., Inc., was a wholly-
owned subsidiary of Columbia Savings. A.C.P. would own the
property. He stated that the property had not yet been
transferred.
Councilman Watkins felt the Subdivision Agreement should reflect
the management company's agreement to be liable for payment of the
Time-share Use Tax, if the ordinance regarding that tax was
passed on second reading.
Mr. Dunn stated that the Town's authority to impose liability for
payment of the tax on the management companies and homeowners
associations was being questioned. If the provision was included
in the Subdividers Agreement, liability for payment would become a
matter of contract and would not be contingent upon the Town's
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authority being upheld. He recommended approval of the Final
Plat, subject to his review and approval of the Subdivision Agree-
ment.
Mr. Mitchell saw no problem with including language agreeing to
liability for payment of the tax.
Councilman Watkins was also concerned about the fact that the
property had not yet been transferred.
Mr. Dunn did not see that as a problem, but stated that approval
of the Plat could also be made contingent upon conveyance of the
property.
Councilwoman Harrison moved approval of Resolution No. 86-30,
Series of 1986, contingent upon a provision being added to the
Subdivision Agreement wherein the homeowners association and the
management company accept liability for payment of the Time-share
Use Tax, and contingent upon transfer of the property from
Columbia Savings to A.C.P., Inc.
Councilman Connell seconded the motion, and it carried unanimously.
The Industrial Development Bonds/Landmark Hotel Project was next
on the agenda.
Mr. James stated that the deal would not go through this year,
but the parties involved had not given up and had stated their
intent to pursue the project after the first of the year. They
had thanked Mr. James and the Council for their support.
Mr. James reported on the status of the shopping center.
He stated that the Bendelow team still did not have part of their
total financing in place, and had not closed on the land as of
December 15, the date specified in the agreement.
Mr. James recommended that the Town begin to explore all other
alternatives that may be available, that the Bendelow team be
declared in default of the Developer Agreement, and that the
exclusivity of the team's arrangement with the Town be immediately
terminated.
Councilman Miller agreed, stating that the Town was bound only by
the terms of the Agreement, which was now in default.
Mr. Dunn recommended that Council terminate the Agreement, based
upon the developers' failure to close on the land by the specified
date.
Mr. James stated that consultant Arnie Ray had begun the process
of contacting other developers, and had contacted Wal-mart to
explain the situation. Mr. James felt that another development
team could be put into place fairly quickly.
He asked Council for authorization to contact the land owners
directly, to see if a contract on the land could be obtained, on
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behalf of the Town, without incurring any obligation. He felt
that negotiations should be initiated with at least three
qualified developers.
He stated he should have a number of answers for the Council
within seven days.
Councilman Miller felt the action recommended by Mr. James would
send a positive message to Wal-mart
Councilwoman McRory moved to declare a default of the Developer
Agreement, and to declare the Agreement void. Councilman Connell
seconded the motion.
Mr. Dunn pointed out that the Agreement also called for an
additional $25,000 to be deposited with the Town by December 15th,
and recommended that failure to make the deposit be included in
the motion as grounds for termination, along with failure to close
on the land.
Councilwoman McRory agreed to add the words, "based upon failure
to close and failure to pay the additional $25,000", to her
motion, after the word, "void". Councilman Connell re-seconded,
and the amended motion passed unanimously.
Mr. Nick Dalba approached the Council, and asked how the
developers to be considered would be chosen. He stated his desire
to be considered as a developer.
Mr. James stated that a limited number of developers would be
considered, on the basis of qualifications, experience, contacts
with Wal-mart, and financial capability to complete the deal.
He stated that the Town had to maintain strict control over the
process.
Mr. James stated that anyone wishing to be considered had to go
through him, first and only. He stated that any parties
contacting Arnie Ray or Wal-mart without his specific direction
would be automatically disqualified.
The Council agreed that Mr. James must be able to control the
process, and granted the authorization he requested.
The last item of business was a presentation by Vail Town Manager
Ron Phillips, regarding the Town of Vail's efforts to buy the
Singletree Golf Course.
Mr. Phillips stated that the Town of Vail had determined, some two
years ago, that there were problems with the quality and
availability of play on the Vail Golf Course. Since that time,
they had been exploring ways to correct the situation. He stated
that the June Creek Ranch Company was first contacted about the
possibility of buying Singletree during the week of Thanksgiving,
this year. The Town of Vail's primary consideration was to make
golf more available to guests and visitors in the area.
He stated that no contracts had been signed, and nothing was in
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writing. They hoped, however, to close by the end of this year.
Mr. Phillips then reviewed Vail's preliminary plans for delegation
and reservation of playing time. They planned to reserve half of
all rounds played for the lodging community; the rest of the
available rounds would be reserved for Singletree property owners
and Vail pass-holders. The public would have last priority.
Councilman Davis asked what Mr. Phillips thought the Vail
Council's attitude might be toward including another party in the
purchase. Mr. Phillips stated he had not discussed it with them,
and felt the Council's attitude would depend on the specific
proposal made.
Councilman Davis felt that whatever action was taken, it should be
positive action that would encourage cooperation and communication
between the two towns.
Lengthly discussion followed.
Kevin Payne, Executive Director of the Western Vail Valley Resort
Association, felt that Vail's purchase of Singletree would be a
blow to Avon's guests and its lodging community. He hoped that
something could be worked out between the two Councils so that
that the interests of the entire valley could be served.
Nick Dalba, a local developer, felt that the impacts of Vail's
purchase on Avon's future annexation plans should be discussed, in
addition to the matter of who was going to get to play the most
golf.
Ken Sortland, an Avon Metro Board member, felt that it was
important to encourage summer and off-season activities in the
area, and felt the Vail Council should approach the purchase with
that in mind. He stated that cooperation should be encouraged,
not competition.
Mr. James stated that Avon's position needed to be established,
and a specific proposal arrived at, before the Avon Council's
meeting with the Vail Council later in the day.
Further discussion followed.
Mr. Phillips thanked the Council for the opportunity to be present
at the meeting, and for the opportunity to discuss the matter with
them.
As the time for the joint meeting with Vail's Council was
approaching, it was agreed to continue on with this meeting to try
to work out some sort of a proposal to offer the Town of Vail.
Councilman Davis moved to have some sandwiches brought in to the
meeting. Councilman Connell seconded the motion, and it carried
by a 5 to 1 vote.
Council recessed briefly at 1:35 p.m., and reconvened at 1:50 p.m.
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Mr. James stated there was another item regarding the shopping
center to be discussed. He stated that the Bendelow team had
deposited $75,000 with the Town to guarantee their performance.
During negotiations, it was agreed that the Town would keep
$20,000, to cover its expenses, regardless of the outcome of the
deal, and the rest would be returned to Bendelow. It was Mr.
Dunn's opinion, however, that, in light of the default that has
occured, the agreement provides for the Town to keep the whole
amount. Mr. James felt that the deposit money should be used to
obtain a total release from the Bendelow team; if Bendelow agreed
to completely release the Town, he would get all but $20,000 back.
If the Town could not get a total release, it would keep the
entire $75,000.
Mr. Dunn stated that, under the agreement, the developers' failure
to close on the land entitled the Town to keep the entire deposit,
release or no release. He felt negotiations on the matter should
be initiated.
Councilman Davis suggested that a performance deposit be required
of any other developers wishing to become involved, as a condition
for being considered.
Mr. James felt that the three finalists for developer should be
required to put up $100,000, up front.
Council agreed with Mr. James' recommendation for handling
Bendelow's deposit money, and with his suggestion regarding the
deposit that would be required of other potential developers.
The Council then went back to the Singletree issue.
Mr. James stated he spoke with Don Klinger, of the Berry Creek
Metro District, and with most of the Council, about the Town going
in with Berry Creek Metro to buy the golf course.
He stated the Council should consider the course's performance
figures when making a decision. He stated that, if a deal could
be made with the Berry Creek Metro District, it would probably be
a 50-50 deal.
Mr. James then reviewed some of the possible alternatives with the
Council. He stated that Mr. Klinger would be more familiar with
what would have to be offered to Fred Green and the June Creek
Ranch Company to get them to seriously consider selling to Avon.
Mr. James went over the preliminary financial projections he had
compiled.
Mr. James stated that, if the numbers he had were close to being
realistic, Council would then have to consider a number of other
things: how it would affect some of the other things Council has
considered, whether it was a higher priority than the Community
Center; whether it was a higher priority than maintaining some of
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the roads in Wildridge; how the purchase would affect the proposed
Public Works facility and the proposed street lighting program?
He felt that the Town's ability to do those things could be
affected by the purchase. He stated that the Council had to
consider whether there would be any other opportunity to put in a
municipal golf course, some time in the future, also.
Mr. Don Klinger approached the Council. He stated that his
comments were his own, and did not necessarily represent the rest
of the Metro Board. He stated that his main consideration was to
try and keep the golf course for the Singletree property owners.
He outlined the deal offered by the Town of Vail, as he understood
it. He stated he was very interested in anything that would enable
Singletree to maintain some of its ownership.
He stated that the Metro District has a contract giving it the
first right of refusal for the purchase. He stated that they
would have 30 days, after Vail submitted something in writing, to
try to match or better the offer.
Lengthly discussion followed, during which Mr. Klinger reviewed
some projected figures and possible alternatives. He emphasized
that the information was based upon an incomplete knowledge of all
the facts. He also outlined some of his personal ideas on how the
deal could be made to work.
Councilman Miller felt that the information presented represented
more than enough reason to pursue the matter.
Mr. Klinger felt very strongly that the course could make money,
if it was run correctly.
Further discussion followed.
Mr. James stated that the next Berry Creek Metro District Board
meeting was scheduled for this Thursday, at 8:00 a.m., at the June
Creek Sales office. If Council was interested in pursuing the
matter, he felt the meeting should be attended by some or all of
the Council members.
Mr. James felt that Avon should pursue the alternatives with both
the Town of Vail and Berry Creek.
The Mayor stated that Avon had to offer the sellers something that
the Town of Vail could not.
Mr. Klinger stated that co-ownership would be the only thing Avon
should offer, at this point.
Further discussion followed.
Councilman Davis felt that Mr. James should go the the Town of
Vail's meeting and ask them if they would consider a joint
purchase with the Town of Avon and, at the same time, should
inform them that Avon would be pursuing some sort of an arrange-
ment with Berry Creek.
The Mayor agreed.
Councilman Connell felt Avon should keep its intentions to itself.
Mr. James agreed with Councilman Davis and the Mayor. He also felt
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that some Council members should attend Vail's meeting, but did
not feel it was necessary for the whole Council to attend.
After more discussion, it was agreed that Mr. James would offer
the Town of Vail a 50-50 deal for the purchase of the golf course,
and would tell Vail that Avon would want 50% of the rounds played.
There being no further business to come before the Council,
Councilman Davis moved to adjourn. Councilman Miller seconded the
motion, and it carried unanimously.
Mayor Nottingham adjourned the meeting at 3:15 p.m.
Respectfully Submitted:
/s/
Barbara R. Joseph,
Deputy Town Clerk
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APPROVED:
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