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TC Council Packet 06-11-2013 TOWN OF AVON, COLORADO TOWN OF AVON MEETINGS FOR TUESDAY, JUNE 11, 2013 MEETING BEGINS AT 5 PM AVON TOWN HALL, ONE LAKE STREET Avon Council Meeting 13 06 11 Page 1 of 4 PRESIDING OFFICIALS MAYOR RICH CARROLL MAYOR PRO TEM TODD GOULDING COUNCILORS DAVE DANTAS, CHRIS EVANS, JENNIE FANCHER, ALBERT “BUZ” REYNOLDS, JR., JAKE WOLF TOWN STAFF TOWN ATTORNEY: ERIC HEIL TOWN MANAGER: VIRGINIA EGGER TOWN CLERK: PATTY MCKENNY ALL REGULAR MEETINGS ARE OPEN TO THE PUBLIC EXCEPT EXECUTIVE SESSIONS. GENERAL COMMENTS ARE WELCOME DURING PUBLIC COMMENT, AND COMMENTS ARE ALSO WELCOME ON ANY AGENDA TOPIC. PLEASE VIEW AVON’S WEBSITE, HTTP://WWW.AVON.ORG, FOR MEETING AGENDAS AND MATERIALS. AGENDAS ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, AND AVON LIBRARY. THE AVON TOWN COUNCIL MEETS THE 2ND AND 4THTUESDAYS OF EACH MONTH. ______________________________________________________________________________________________________________ 1. CALL TO ORDER & ROLL CALL 2. APPROVAL OF AGENDA 3. EXECUTIVE SESSION a. For the purpose of receiving legal advice pursuant to Colorado Revised Statute §24-6-402(4)(b) related to settlement matters regarding Town of Avon v Traer Creek Metropolitan District, 2008 CV 0385 and Traer Creek, LLC, et.al. v Town of Avon 2010 CV 316 4. AVON URBAN RENEWAL AUTHORITY (BEGIN AT 5:45 PM OR AS SOON THEREAFTER AS POSSIBLE, SEE PAGE 3) 5. AVON LIQUOR AUTHORITY MEETING (BEGIN AT 5:50 OR AS SOON THEREAFTER AS POSSIBLE, SEE PAGE 4) 6. AVON TOWN COUNCIL TO RECONVENE AT 6:00 P.M. OR AS SOON THEREAFTER AS POSSIBLE 7. PUBLIC COMMENT 8. VILLAGE AT AVON 8.1. Settlement Update (Eric Heil, Town Attorney) 8.2. R esolution No. 13-18, Series of 2013, A Resolution approving several documents related to The Village (at Avon) Litigation settlement, including: the Access Easement Agreement; the Wet Well Easement Agreement; the Raw Water Special Warranty Deed; the Raw Water System Operations and Maintenance Agreement; the Amended and Restated Nottingham Dam Easement and Assignment Agreement; the Special Warranty Deed for Tract G, Filing 3; the Bill of Sale for the Nottingham Gulch Storm Sewer; and the Bill of Sale for the Nottingham Gulch Energy Dissipater 9. ACTION ITEMS 9.1. Letter of Agreement for a $7,500 Contribution to the Vail Leadership Institute in support of the Entrepreneurs BaseCamp (Patty McKenny, Assistant Town Manager) 9.2. Public Hearing on Second Reading of Ordinance 13-06, Series of 2013, An Ordinance Approving a Final PUD Amendment for Brookside Park Lot 1, Brookside Park PUD, Eaglewood Subdivision, Town of Avon, Eagle County, Colorado (Jared Barnes, Planner II) 9.3. Public Hearing on Second Reading of Ordinance 13-07, Series of 2013, An Ordinance Approving a Minor PUD Amendment for June Creek Corner on Lot 25, Block 2, Wildridge Subdivision, Town of Avon, Eagle County, Colorado (Matt Pielsticker, Senior Planner) TOWN OF AVON, COLORADO TOWN OF AVON MEETINGS FOR TUESDAY, JUNE 11, 2013 MEETING BEGINS AT 5 PM AVON TOWN HALL, ONE LAKE STREET Avon Council Meeting 13 06 11 Page 2 of 4 9.4. Public Hearing on Resolution No. 13-19, A Resolution to amend the 2013 Town of Avon Budget (Kelly Huitt, Budget Analyst) 9.5.Action on Fee Waiver for Garden Fencing in Wildridge (Jared Barnes, Planner II) 9.6. Approval of Minutes 10. WORK SESSION 10.1. Discussion about Eaglebend Dowd Affordable Housing Corporation (Kayak Crossing) Proposed Multifamily Revenue Bond Refinancing (Gerry Flynn, Polar Star Properties) 10.2. Discussion in regards to filling Town of Avon Board of Director vacancy for the Buffalo Ridge Affordable Housing Corporation, EagleBend Affordable Housing Corporation and Eaglebend Dowd Affordable Housing Corporation (Kayak Crossing ) (Patty McKenny, Assistant Town Manager) 10.3. Council Review and Direction on Recommended 2014 Budget Process and 5 Year Capital Improvement Program, including Scheduling of Council Retreat(s) (Virginia Egger, Town Manager) 11. COMMITTEE MEETING UPDATES: COUNCILORS AND MAYOR 11.1. EGE Air Alliance (Rich Carroll, Mayor) 12. COUNCIL COMMENTS 13. MAYOR REPORT: FUTURE AGENDA ITEMS PROPOSED AGENDA ITEMS FOR JUNE 25, 2013 COUNCIL MEETING: Lake Liner Improvements Contract, IGA with Eagle County for GIS Services, Intergovernmental Agreement with Eagle County Regional Transportation Authority for Leasing of the I-70 Regional Transportation Facility, Action on Kayak Crossing Refinance, Further Discussion on Town Property Options and Funding Scenarios TOWN OF AVON, COLORADO AVON URBAN RENEWAL AUTHORITY MEETING FOR TUESDAY, JUNE 11, 2013 MEETING BEGINS AT 5:45 PM AVON TOWN HALL, ONE LAKE STREET Avon Council Meeting 13 06 11 Page 3 of 4 PRESIDING OFFICIALS CHAIRMAN RICH CARROLL VICE CHAIRMAN TODD GOULDING COMMISSIONERS DAVE DANTAS, CHRIS EVANS, JENNIE FANCHER ALBERT “BUZ” REYNOLDS, JR., JAKE WOLF STAFF EXECUTIVE DIRECTOR / SECRETARY: VIRGINIA EGGER ATTORNEY: ERIC HEIL TREASURER: SCOTT WRIGHT AUTHORITY CLERK: PATTY MCKENNY ALL URBAN RENEWAL MEETINGS ARE OPEN TO THE PUBLIC EXCEPT EXECUTIVE SESSIONS COMMENTS FROM THE PUBLIC ARE WELCOME DURING PUBLIC HEARINGS PLEASE VIEW AVON’S WEBSITE, HTTP://WWW.AVON.ORG, FOR MEETING AGENDAS AND MEETING MATERIALS AGENDAS ARE POSTED AT AVON MUNICIPAL BUILDING AND RECREATION CENTER, ALPINE BANK, AND AVON LIBRARY 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF AGENDA 3. PUBLIC COMMENT 4. ACTION ITEMS 4.1. Approval of the Consolidated, Amended and Restated Annexation and Development Agreement (Eric Heil, Avon Urban Renewal Attorney) 4.2. Minutes from January 8, 2013 5. ADJOURNMENT TOWN OF AVON, COLORADO AVON LIQUOR LICENSING AUTHORITY MEETING FOR TUESDAY, JUNE 11, 2013 MEETING BEGINS AT 5:50 PM AVON TOWN HALL, ONE LAKE STREET Avon Council Meeting 13 06 11 Page 4 of 4 PRESIDING OFFICIALS CHAIRMAN RICH CARROLL VICE CHAIRMAN TODD GOULDING BOARD MEMBERS DAVE DANTAS, CHRIS EVANS, JENNIE FANCHER ALBERT “BUZ” REYNOLDS, JR., JAKE WOLF TOWN STAFF TOWN ATTORNEY: ERIC HEIL TOWN MANAGER: VIRGINIA EGGER TOWN CLERK: PATTY MCKENNY ALL LIQUOR BOARD MEETINGS ARE OPEN TO THE PUBLIC EXCEPT EXECUTIVE SESSIONS COMMENTS FROM THE PUBLIC ARE WELCOME DURING PUBLIC HEARINGS PLEASE VIEW AVON’S WEBSITE, HTTP://WWW.AVON.ORG, FOR MEETING AGENDAS AND MEETING MATERIALS AGENDAS ARE POSTED AT AVON TOWN HALL AND RECREATION CENTER, AND AVON LIBRARY 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF AGENDA 3. PUBLIC COMMENT 4. PUBLIC HEARING ON SPECIAL EVENTS PERMIT APPLICATIONS 4.1. Applicant: Team Evergreen Bicycle Club Inc. Event Name & Location: Triple Bypass; Harry A. Nottingham Park Event Date & Time: July 13, 2013 from 11:00 a.m. until 9:00 p.m. Event Manager: Jenny Anderson Permit Type: Malt, Vinous, Spirituous Liquor 4.2. Applicant: Walking Mountains Science Center Event Name & Location: Taste of Nature; Walking Mountains Science Center Event Date & Time: July 13, 2013 from 5 p.m. until 11:00 p.m. Event Manager: Gina Garrett Permit Type: Malt, Vinous, Spirituous Liquor 5. REPORT OF CHANGES: PUBLIC HEARING ON MODIFICATION OF PREMISES 5.1. Applicant: Fork and Knife, Inc. d/b/a Blue Plate Address: 48 E. Beaver Creek Blvd. Manager: Adam Roustom License Type: Hotel and Restaurant Liquor License 6. REPORT OF CHANGES: CORPORATE NAME CHANGE 6.1. Applicant: East West Resort LLC & Avon Riverfront LLC d/b/a Westin Riverfront Resort & Spa & Cima New Name: Westin Riverfront Resort & Spa & Maya Manager: John Evans License Type: Resort Complex Liquor License 7. MINUTES FROM MAY 28, 2013 MEETING 8. ADJOURNMENT Heil Law & Planning, LLC Office: 303.993.4608 2696 South Colorado Blvd., Suite 550 Fax: 720.836.3337 Denver, CO 80222 E-Mail: meredith@heillaw.com e-mail: ericheillaw@yahoo.com HEIL LAW TO: Chairman Carroll and members of the Avon Urban Renewal Authority Board of Directors FROM: Eric Heil, Esq., Avon Urban Renewal Authority Attorney RE: Approval of Consolidated, Amended and Restated Annexation and Development Agreement DATE: June 6, 2013 Summary: The Avon Urban Renewal Authority (“AURA”) is a signatory to the Consolidated, Amended and Restated Annexation and Development Agreement (“Development Agreement”) for the Village (at Avon). Section 6.7 of the Development Agreement sets forth provisions whereby the AURA may be used to provide funding for public improvements to serve the Lot 1 core area of the Village (at Avon) and offset and reduce the Town’s total tax credit obligation by $10 million in principal. Currently, no area of the Village (at Avon) is within an urban plan area of the AURA. The Development Agreement does not create any obligation of the Town or the AURA to establish an urban renewal plan area for the Village (at Avon) and does not create an obligation to establish tax increment financing through the urban renewal authority powers. Any future urban renewal plan area or imposition of tax increment financing for the Village (at Avon) would be subject the applicable public process at that time. The AURA is included as a signatory on the Development Agreement because certain terms of the Development Agreement address the use of AURA powers and the AURA is technically a separate legal entity from the Town of Avon with regard to executing contracts and financial liabilities. The AURA is defined as a “Limited Party”. Section 7.7(b)(c)(i) states that the AURA shall have no rights arising under the Development Agreement to enforce any obligations of any other Party. The Town Council previously approved the Development Agreement by Ordinance No. 12-10 last November. Pursuant to C.R.S. §31-25-105(b) the AURA has the power to “execute any and all contracts and other instruments which it may deem necessary or convenient to the exercise of its powers.” Neither the statutes nor the AURA Bylaws require approval of a contract by resolution. Approval of the Development Agreement may be made by motion. NOTE: At the time of preparing this memorandum the graphic exhibit of the temporary easement area for a road to Planning Area I across the recently acquired Avon East Forest Service Parcel has not been finalized. This document is Exhibit C to Exhibit C (Form of Covenant and Temporary Easement). Exhibit C does not affect the AURA’s rights or liabilities under the Development Agreement. Requested Action: Approve the Development Agreement by Motion. In order to fully execute the Development Agreement, the AURA must approve and sign the Development Agreement in addition to the Town. Proposed Motion: “I move to approve the Consolidated, Amended and Restated Annexation and Development Agreement attached to this memorandum as Exhibit A including and subject to any revisions which may be approved by the Town of Avon.” Thanks, Eric M EMORANDUM & PLANNING, LLC 1001679.22 FINAL CONSOLIDATED, AMENDED AND RESTATED ANNEXATION AND DEVELOPMENT AGREEMENT FOR THE VILLAGE (AT AVON) THIS CONSOLIDATED, AMENDED AND RESTATED ANNEXATION AND DEVELOPMENT AGREEMENT FOR THE VILLAGE (AT AVON) (as amended from time to time, this “Development Agreement”) is made and entered into as of __________________, 2013 (“Execution Date”) by and among the Parties and the Limited Parties, and with the consent of the Developer Affiliates, BNP and Lenders. RECITALS This Development Agreement is made with reference to the following facts: A.Initially capitalized words and phrases used in this Development Agreement have the meanings set forth in Exhibit F, which definitions are incorporated herein. B.Pursuant to the Original Agreement, the Town and the Original Owners set forth the terms and conditions upon which the land legally described in Exhibit A of the Original Agreement would be annexed into and developed under the jurisdiction of the Town,such legal description having been updated to reflect the Recording of various subdivision plats subsequent to the Original Effective Date and attached as Exhibit A hereto and incorporated herein (the “Property”). C.Town Council approved the Service Plans on August 25, 1998, and on February 3, 1999, TCMD and VMD were legally formed for the general purposes contemplated by the Original Agreement and more specifically described in the Service Plans. D.Subsequent to the Original Effective Date: (i) the other entities comprising the Original Owner were merged into EMD, which became the sole Original Owner; and (ii)pursuant to Section 1.4 of the Original Agreement, EMD specifically granted to TCLLC, in writing, the right to amend the Original Agreement as to all of the Property except Planning Area M as designated in the Original PUD Guide and the Original Agreement (now re- designated Planning Area I pursuant to the PUD Guide), with respect to which EMD retained the right to amend the Original Agreement. E.As of the Execution Date, the current fee owners of the real property comprising the Property are, as their respective interests appear of Record: TC-RP; EMD; TC Plaza; TC-WMT; TC-HD; Alkali Company, a Colorado limited partnership; TCMD; the District Directors;the Town; Buffalo Ridge Affordable Housing Corporation, a Colorado corporation; Buffalo Ridge II LLLP, a Colorado limited liability limited partnership;Eagle River Fire Protection District, a quasi-municipal corporation; Eagle County Health Service District, a quasi-municipal corporation; and Department of Transportation, State of Colorado. F.Other than EMD, each of the Developer Affiliates and other Landowners referred to in Recital E acquired title to the portion of the Property it owns subject to the terms and conditions of the Original Agreement, including, without limitation, Section 1.4 of the Original EXHIBIT A to Heil Memorandum dated June 6, 2013 2 1001679.22 FINAL Agreement. None of the conveyances referred to in Recital E were accompanied by a specific written grant of the power to amend the Original Agreement as provided in Section 1.4 of the Original Agreement. Accordingl y, with the exception of the Town and EMD (by virtue of being parties to the Original Agreement), TCMD (by virtue of becoming a party to the Original Agreement pursuant to the First Amendment thereto) and TCLLC (b y virtue of the assignment described in Recital D), no Landowner or other person or entity has been granted an y power to consent or object to any amendment of the Original Agreement (except for the rights of BNP, derived in its capacity as the issuer of an irrevocable direct pay letter of credit securing the Traer Creek Metropolitan District Variable Rate Revenue Bonds, Series 2002 and the Traer Creek Metropolitan District Variable Rate Revenue Bonds, Series 2004, to consent to TCMD’s execution of any such amendment). As provided in Section 1.4 of the Original Agreement, no person or entity other than the Town, EMD, TCMD and TCLLC is required or has a right to execute or acknowledge this Development Agreement as a condition of this Development Agreement being legally effective and binding on all parties to the Original Agreement and all Landowners. G.For ease of administration and in recognition of the fact the ownership of the Property has and will continue to become diverse as the Project develops, the Developer Affiliates have designated Master Developer to act on their behalf for all purposes in connection with this Development Agreement, including but not limited to negotiation and execution of this Development Agreement and any future amendments hereto. H.Master Developer, certain of the Developer Affiliates, TCMD, the Town and other parties asserted various legal claims in the consolidated cases 2008 CV 385 and 2010 CV 316 (collectively, consolidated as Case No.2008 CV 385, the “Litigation”) and the parties to the Litigation desired to avoid the cost of trial, the cost of a protracted appellate process, the uncertainty and potential costs of remand of portions of the Litigation to the trial court, and the uncertainty of the final outcome of Litigation. Therefore, the parties to the Litigation entered into that certain Settlement Term Sheet made and entered into the 7th day of October, 2011, by and between the Town, BNP, TCMD, TCLLC, TC-RP, TC Plaza, EMD, TC-HD LLC and TC-WMT (the “Settlement Term Sheet”). I.In accordance with the terms and conditions of the Settlement Term Sheet, the Parties have entered into this Development Agreement to implement pertinent terms of the Settlement Term Sheet, to effect a full and final settlement of all disputes pertaining to the Original Agreement which were the subject of the Litigation, and to resolve other potential disputes related to development entitlements, interpretation of Original Agreement, equitable allocation of responsibilities and rights, and other matters which are addressed in this Development Agreement and related documents. The Town’s final non-appealable approval of this Development Agreement establishes and implements specific terms and conditions of the Settlement Term Sheet and shall be binding on the Parties hereto and also shall be binding on all parties to the Settlement Term Sheet. J.Various circumstances and changed conditions require mutual execution and approval of this Development Agreement in order to:(i) clarify and implement the intent of the parties to the Original Agreement to promote development of the Property; (ii)amend and restate EXHIBIT A to Heil Memorandum dated June 6, 2013 3 1001679.22 FINAL the Original Agreement in order to implement the Settlement Term Sheet; and (iii)facilitate dismissal of the Litigation with prejudice and minimize the potential for future legal disputes. K.During the period between the Original Effective Date and the Execution Date and in reliance on the revenue sharing and infrastructure financing arrangements established by the Original Agreement, the Districts, the PICs, Master Developer and/or the Developer Affiliates have made large investments in Public Improvements located both within the Property and outside of the Property. The foregoing has resulted in: (1)Full satisfaction of the following obligations of TCMD under the terms and conditions of the Original Agreement, with the provisions establishing such obligations accordingly deleted from this Development Agreement: (a)Construction of the Interstate 70 Interchange and the Highway 6 Connector Road as defined in § 4.2 of the Original Agreement; (b)Payment of the Chapel Place Exaction as defined in § 4.3(a)(ii) of the Original Agreement, in the amount of $100,000; (c)Construction of the Phase 1 Improvements and the Phase 2 Improvements as defined in § 4.3(b)(i) and (ii) of the Original Agreement; (d)Construction of the Swift Gulch Road Improvements as defined in § 4.3(c) of the Original Agreement; (e)Payment of the Highway 6 Trail Exaction as defined in § 4.3(g) of the Original Agreement; and (f)Those obligations set forth in § 4.3(j) of the Original Agreement. (2)Partial satisfaction of the following obligation of TCMD under the terms and conditions of the Original Agreement, with performance of the remaining obligations waived pursuant to the Settlement Term Sheet and the provisions establishing such obligation accordingly deleted from this Development Agreement: (a)Payment of nine (9) installments, in the amount of $200,000 each, of the ten (10) such installments comprising the East Avon Exaction as defined in § 4.3(a)(i) of the Original Agreement, the obligation to make the final installment being extinguished by this Development Agreement as contemplated in the Settlement Term Sheet. (3)Full satisfaction of the following obligations of Original Owners under the terms and conditions of the Original Agreement,with the provisions establishing such obligations accordingly deleted from this Development Agreement: (a)The two property conveyances comprising the Public Works Dedication as defined in § 4.3(d) of the Original Agreement; EXHIBIT A to Heil Memorandum dated June 6, 2013 4 1001679.22 FINAL (b)Reimbursement to the Town of those costs required to be reimbursed pursuant to § 4.3(e) of the Original Agreement. L.The Town has adopted Ordinance No. 12-10, which approved this Development Agreement, approved the PUD Guide and PUD Master Plan, repealed Ordinance No. 06-17, and took other actions stated in Ordinance No. 12-10 to implement in part the Settlement Term Sheet. M.Continued development of the Project will require substantial additional investments in Public Improvements, and completion of these additional Public Improvements will require substantial additional investments by the Districts, the PICs, Master Developer, the Developer Affiliates and/or other Landowners. All such completed and to be constructed Public Improvements will serve the needs of the Project and the Town. Such prior and future investments can be supported only if there are assurances that development of the Project will be permitted to proceed to ultimate completion as contemplated in this Development Agreement and the PUD Guide. N.The Vested Propert y Rights Statute and the Municipal Code (as in effect on the Execution Date) authorize the Town to enter into development agreements which provide for the vesting of property development rights with a term of greater than three (3) years. O.Town Council has determined that granting Vested Property Rights for the duration of the Vesting Term will promote reasonable certainty, stability and fairness in the land use planning process, stimulate economic growth, secure the reasonable investment-backed expectations of Landowners and foster cooperation between the public and private sectors in the area of land use planning and development. P.Town Council specifically finds that this Development Agreement provides public benefits including but not limited to the following specific public benefits: (i)development of the Property in accordance with the applicable development standards in the Development Plan and, to the extent not controlled by the Development Plan, the Municipal Code (as amended from time to time); (ii)economic development through construction anticipated to occur in connection with development of the Project; (iii) economic development through the development of various commercial and residential uses that enhance, complement and reinforce the Town’s existing economy, commercial base and ad valorem property tax base; (iv) development of housing to meet the needs of the Avon community; (v)development of significant property within the Town’s municipal boundaries which promotes economies of scale in the provision of public services; and (vi) establishment of a public-private cooperative arrangement that promotes the availability of capital for Public Im provements and promotes the competitiveness and viability of private development within the Town and the Project. Q.In exchange for these benefits and the other benefits to the Town contemplated by this Development Agreement, together with the public benefits served by the orderly development of the Property, this Development Agreement and the Vested Propert y Rights established herein are intended to provide assurance to Master Developer, EMD, the Developer Affiliates, other Landowners, the Districts, lenders providing financing for development of the Project from time to time, BNP and purchasers of bonds or holders of other forms of debt issued EXHIBIT A to Heil Memorandum dated June 6, 2013 5 1001679.22 FINAL or to be issued by the Districts that development of the Property pursuant to the terms and conditions of the Development Plan and the Approved SSDPs can occur without impediment or impairment of the Vested Property Rights. R.The Limited Parties have executed this Development Agreement only for the limited purposes expressly set forth herein and with the express understanding that the Limited Parties shall not be construed to have any rights, duties, obligations or remedies arising under this Development Agreement except to the extent expressly set forth herein with respect to each Limited Party and, accordingly, the rights, duties, obligations and remedies of each Limited Party shall be strictly limited to those expressly set forth in this Development Agreement as a right, duty, obligation or remedy of such Limited Party. S.Lenders have executed this Development Agreement for the sole purpose of evidencing their respective consent and subordination to the Recording of this Development Agreement, but without thereby acquiring the status of a Party or otherwise being subject to any obligation or acquiring any enforcement right or remedy arising under this Development Agreement. T.BNP, while not a Party, has executed a written consent to this Development Agreement in order to affirm BNP’s consent to approval of the Financing Plan and related matters addressed in this Development Agreement. Additionally, BNP is an Intended Beneficiary with respect to BNP’s right to enforce certain provisions of this Development Agreement, including but not limited to BNP’s right to have a lawfully eligible candidate designated at the option of BNP to hold the office of director of TCMD, BNP’s right to be conveyed and to hold a property interest sufficient to qualify its designee for holding the position of director until such time as there are no outstanding obligations to BNP under the TCMD Reissue Documents or any subsequent reissue or refunding of such bonds,and BNP’s right to participate on the AURA board of directors with respect to any urban renewal plans for any portion of the Property. U.As between the Town, AURA, TCMD and VMD, this Development Agreement constitutes an intergovernmental agreement pursuant to C.R.S. §§ 29-1-203 and 29-20-105, and such Parties intend their respective obligations hereunder to be enforceable by specific performance and/or other equitable remedies in addition to any remedies otherwise available at law. V.As between the Town, Master Developer, EMD, Developer Affiliates and other current or future Landowners, this Development Agreement constitutes a development agreement granting Vested Property Rights for a period in excess of three (3) years in accordance with Section 24-68-104(2) of the Vested Property Rights Statute. W.The Parties intend this Development Agreement to amend and restate in its entirety the Original Agreement by consolidating the original document and subsequent amendments thereto into a single document for ease of reference, and additionally by incorporating the amendments necessary and desirable to implement applicable terms and conditions of the Settlement Term Sheet. EXHIBIT A to Heil Memorandum dated June 6, 2013 6 1001679.22 FINAL AGREEMENT NOW, THEREFORE, in consideration of the terms, conditions and covenants set forth in this Development Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: ARTICLE1 GENERAL PROVISIONS 1.1 Incorporation of Recitals. The Recitals are incorporated into and made substantive provisions of this Development Agreement. 1.2 Effectiveness and Recording of Development Agreement. This Development Agreement shall be effective as of the Effective Date. Any delay or failure to Record this Development Agreement shall not negate or impair the effectiveness of this Development Agreement as between the Parties and any other parties having notice of this Development Agreement. The effectiveness and/or Recording of this Development Agreement shall not be construed to negate the effectiveness of any approvals granted by Town Council prior to the Effective Date or any actions of Master Developer, EMD, the Districts, the PICs or any other Landowner taken in connection with development of the Project prior to the Effective Date. All such approvals and actions are hereby ratified by the Parties. As of the Effective Date, the Settlement Term Sheet shall be construed to be of no further force or effect, its terms and conditions having been incorporated into and implemented by this Development Agreement, the PUD Guide, the Tank Agreement, the TCMD Reissue Documents and/or otherwise performed in full. As of the Effective Date, the obligations of each party to the Original Agreement to any other party to the Original Agreement are expressly discharged, terminated and of no further force or effect except to the extent such obligations are expressly incorporated and set forth in this Development Agreement. 1.3 Covenants.Upon Recording, the provisions of this Development Agreement shall constitute covenants and servitudes that touch, attach to and run with the land comprising the Property and, except as otherwise provided in Section1.5 with respect to amendments to this Development Agreement,the burdens and benefits of this Development Agreement shall bind and inure to the benefit of all estates and interests in the Property and all successors in interest to the Parties,the Developer Affiliates and any other Landowners as of the Effective Date. 1.4 Ve sting Te rm; Te rm of Development Agreement. Phased development of the Project as contemplated under this Development Agreement and the Development Plan involves significant acreage and density which will require substantial investment and time to complete. (a)Vesting Term. Due to the size and phasing of the Project, the potential for development of the Project to be affected by economic and financial cycles, the effect of national and statewide markets with regard to retailers, accommodations industry and builders, and the limitation of absorption rates by the local market conditions, the term of the Vested Property Rights established pursuant to Section2.4 shall continue through and including October 20, 2039 (“Vesting Term”). If the Term expires prior to expiration of the Vesting Term, the Vesting Term shall continue in full force and effect and shall survive expiration of the Term in accordance with and subject to the terms, conditions and limitations set forth in this Agreement. On October 21, EXHIBIT A to Heil Memorandum dated June 6, 2013 7 1001679.22 FINAL 2039, the Vested Property Rights shall be deemed terminated and of no further force or effect; provided, however, that such termination shall not affect: (i)annexation of the Property to the To wn; (ii)any common-law vested rights obtained prior to such termination; (iii)any right arising from To wn building permits, development approvals or other zoning entitlements for the Property or the Project which were granted or approved prior to expiration of the Ve sting Te rm; or, (iv)any obligation of a Party under this Development Agreement that has not been fully performed as of the date on which the Vesting Te rm expires. (b)Te rm of Development Agreement. Notwithstanding any prior expiration of the Ve sting Te rm (or survival of the Ve sting Te rm after expiration of the Te rm), the term of this Development Agreement and the Parties’obligations hereunder shall commence upon the Effective Date and shall terminate upon expiration of the Term. Upon expiration of the Te rm, the Town is entitled under the terms of this Development Agreement to terminate the Tax Credit. Notwithstanding the foregoing, the To wn may elect to extend the Te rm in accordance with Section 6.1(d). In no event shall the Te rm expire before the To wn’s obligation to maintain the Ta x Credit in effect has terminated as provided in Section 6.1(b). (c)Obligation to Maintain Ta x Credit. Without limitation of the foregoing, the To wn’s obligation to maintain the Ta x Credit in effect pursuant to Sections 4.2(a)and 6.1(b) shall survive expiration of the Ve sting Te rm and shall continue in full force and effect until the conditions set forth in Section 6.1(b)have been fully satisfied. 1.5 Amendment of Development Agreement.This Development Agreement may be amended or terminated only by mutual written consent of the To wn, TCMD and Master Developer (but not by their respective successors or assigns or by any non-Party Landowner) following the public notice and public hearing procedures required for approval of this Development Agreement; provided, however: (a)Specific Grant of Amendment Rights. For purposes of this Section 1.5 only, the term “Master Developer” means TCLLC, EMD and those additional parties, if any, to whom TCLLC or EMD has specifically granted, in writing, the power to enter into such amendments. No entity to whom TCLLC or EMD has granted the power to enter into such amendments may further assign or grant such power to another entity except to the extent expressly stated in the grantee’s original grant from TCLLC or EMD. (b)Limited Parties. The written consent of a Limited Party (other than EMD in its capacity as Master Developer, as otherwise set forth in this Section1.5) shall not be required except to the extent the proposed amendment directly and expressly modifies a provision of this Development Agreement that establishesa right, obligation or remedy of such Limited Party. EXHIBIT A to Heil Memorandum dated June 6, 2013 8 1001679.22 FINAL (c)BNP. The Parties acknowledge that until such time as there are no outstanding obligations to BNP under the TCMD Reissue Documents or any subsequent reissue or refunding of such bonds, TCMD’s agreement to any future amendment to the provisions of this Development Agreement that run in favor of BNP, including without limitation, this Section 1.5(c),Section 1.6,Article 4,Section 5.1(e),Section 5.3(e),Article 6 and Article 7 is subject to BNP Paribas’ (or an y successor or assignee of BNP Paribas pursuant to Section8.11) prior written consent. The Parties further acknowledge that until such time as there are no outstanding obligations to BNP under the TCMD Reissue Documents or any subsequent reissue or refunding of such bonds, TCMD is required by the provisions of the TCMD Reissue Documents to obtain the consent of BNP (or a written acknowledgement that such consent is not required) to any future amendment to the provisions of this Development Agreement, and failure on the part of TCMD to obtain such consent prior to entering into any such amendment will be a default under the TCMD Reissue Documents, as to which BNP will have the right to exercise its remedies. 1.6 Cooperation in Defending Legal Challenges. If, after the Execution Date, any legal or equitable action or other proceeding is commenced by a third party challenging the effectiveness of Ordinance No.12-10, the effectiveness of this Development Agreement and/or the Development Plan, or the validity of any provision of this Development Agreement and/or the Development Plan, the Parties shall in good faith cooperate in defending such action or proceeding and shall each bear their own expenses in connection therewith. Unless the Parties otherwise agree, each Party shall select and pay its own legal counsel to represent it in connection with such action or proceeding. The Parties acknowledge that the obligations of the To wn and TCMD pursuant to this Section 1.6 are subject to compliance with the requirements of Section 20 of Article Xof the Colorado Constitution. Accordingly, the Town and TCMD shall in good faith take such steps as may be available to them in response to the filing of any action or proceeding addressed above to set aside, hold and irrevocably pledge adequate present cash reserves to fund the reasonably anticipated costs of defending such action or proceeding; provided, however, if either the To wn or TCMD is not in a position to fund from present cash reserves all or any portion of the reasonably anticipated costs of defending such action or proceeding, such Party’s obligation pursuant to this Section1.6 shall be subject to annual appropriation. 1.7 Role of Master Developer. For the reasons described in Recital G, the Developer Affiliates have designated Master Developer to act on behalf of themselves and their respective successors in interest with respect to and for all purposes of this Development Agreement. The Developer Affiliates may designate a replacement Master Developer from time to time, or may terminate the role of the Master Developer,by delivery of written notice thereof to the Town and to TCMD which is signed by a majority of the Developer Affiliates owning any part of the Property as of the date of such notice. An y replacement Master Developer must be an entity that is a Developer Affiliate. The designation of a replacement Master Developer or termination of the role of Master Developer by the Developer Affiliates shall not require an amendment to this Development Agreement and shall not require the consent of the Town, TCMD or BNP. EXHIBIT A to Heil Memorandum dated June 6, 2013 9 1001679.22 FINAL 1.8 Rights and Obligations of Limited Parties and Intended Beneficiaries. (a)Limited Parties. As more particularly described in Recital R, each Limited Party is executing this Development Agreement solely with respect to a limited obligation of such Limited Party. With respect to each Limited Party, such obligations, rights and remedies are expressly limited as follows: (i)AURA. AURA’s obligations arising under this Development Agreement are limited to those set forth in Section4.3. AURA’s rights and remedies arising under this Development Agreement are as set forth in Section 7.7(c)(i). (ii)EMD. EMD’s obligations arising under this Development Agreement are limited to those set forth in Section 5.4. EMD’s rights and remedies arising under this Development Agreement are as set forth in Section 7.7(c)(ii). (iii)The Commercial PIC. The Commercial PIC’s obligations arising under this Development Agreement are limited to those set forth in Section 5.2. The Commercial PIC’s rights and remedies arising under this Development Agreement are as set forth in Section 7.7(c)(iii). (iv)The Mixed Use PIC. The Mixed-Use PIC’s obligations arising under this Development Agreement are limited to those set forth in Section 5.2. The Mixed-Use PIC’s rights and remedies arising under this Development Agreement are as set forth in Section 7.7(c)(iv). (b)Intended Beneficiaries. Except to the extent an Intended Beneficiary undertakes obligations as an Applicant in connection with the development of a Site and/or execution of a Public Im provement Agreement as provided in this Development Agreement, no Intended Beneficiary is subject to any obligation arising solely under this Development Agreement. Except with respect to the rights and remedies of such Intended Beneficiaries as set forth in Section 7.7(d), no Intended Beneficiary has acquired any enforcement right or remedy arising solely under this Development Agreement. Notwithstanding the foregoing, TC-RP shall have the obligation set forth in Section 5.5. ARTICLE2 ANNEXATION, ZONING AND VESTED PROPERTY RIGHTS 2.1 Annexation.Annexation of the Property was accomplished in accordance with the Original Agreement and the Colorado Municipal Annexation Act of 1965, as amended (C.R.S. §§ 31-12-101, et seq.) as in effect in 1998. Consistent with the foregoing and in implementation of the Settlement Te rm Sheet, this Development Agreement ratifies annexation of the Property. 2.2 PUD Zoning.Planned unit development (PUD) zoning of the Property was accomplished in accordance with the Original PUD Guide. Consistent with the foregoing and in implementation of the Settlement Te rm Sheet, this Development Agreement ratifies the PUD zoning of the Property pursuant to the Original PUD Guide, ratifies each administrative and each formal amendment to the PUD Guide and/or PUD Master Plan accomplished prior to the EXHIBIT A to Heil Memorandum dated June 6, 2013 10 1001679.22 FINAL Effective Date, and ratifies all development that has occurred within the Property pursuant to the Original PUD Guide. Concurrently with Recording of this Development Agreement, the Parties caused Recording of the PUD Guide. Accordingly, the Property is zoned PUD pursuant to and as set forth in the PUD Guide. 2.3 Permitted Uses/Design Standards. The permitted uses of the Property, the density and intensity of use, the maximum height, bulk and size of proposed buildings, design standards, road profiles and sections, provisions for reservation or dedication of land for public purposes, the general location of roads and trails, the ability of an Applicant to relocate roads, trails and improvements, and other terms and conditions of development applicable to the Property and the Project shall be those set forth in the PUD Guide and in this Development Agreement. 2.4 Ve sting of Property Rights.The Original Agreement and the Original PUD Guide were Site Specific Development Plans with respect to which the To wn granted Ve sted Property Rights for a term of thirty-five (35)years from the Original Effective Date. Consistent with the foregoing and in implementation of the Settlement Te rm Sheet, this Development Agreement ratifies the Ve sted Property Rights established by the Original Agreement and the Original PUD Guide and, as described in Section 1.4(a),extends the term of such Ve sted Property Rights (including with respect to future amendments to any such Approved SSDP) through and including October 20, 2039. Approval of the Development Plan constitutes a vested property right pursuant to Article 68 of Title 24, C.R.S., as amended, and Title 7, Chapter 16, of the Avon Municipal Code as amended. Accordingly, the rights identified below (collectively, the “Vested Property Rights”) are expressly ratified, granted and approved by Town Council: (a)The right to develop, plan and engage in land uses within the Property and the Project in the manner and to the extent set forth in and pursuant to the Development Plan and other Approved SSDPs (if an y). (b)The right to develop, plan and engage in land uses within the Property and the Project in accordance with the densities, physical development standards and other physical parameters set forth in the PUD Guide and other Approved SSDPs (if any). (c)The right to develop the Project in the order, at the rate and at the time as the applicable Developer determines appropriate given market conditions and other factors, subject to the terms and conditions of the Development Plan and other Approved SSDPs (if any). (d)The right to develop and complete the development of the Project including, without limitation,the right to receive all To wn approvals necessary for the development of the Project with conditions, standards and dedications which are no more onerous than those imposed by the To wn upon other developers in the To wn on a uniform, non-discriminatory and consistent basis, and subject only to the exactions and requirements set forth in the Development Plan and other Approved SSDPs (if any); provided that such conditions, standards and dedications shall not directly or indirectly have the effect of materially and adversely altering, impairing, preventing, diminishing, imposing a moratorium on EXHIBIT A to Heil Memorandum dated June 6, 2013 11 1001679.22 FINAL development, delaying or otherwise adversely affecting any of Master Developer ’s , EMD’s, Developer Affiliates’ or any other Landowner’s rights set forth in the Development Plan or other approved SSDPs (if any). (e)The right to prevent (by mandamus, mandatory or prohibitory injunction or other form of legal or equitable remedy) the application to the Property or the Project of any To wn or citizen initiated zoning, land use or other legal or administrative action that would directly or indirectly have the effect of materially and adversely altering, impairing, preventing, diminishing, imposing a moratorium on development, delaying or otherwise adversely affecting any of Master Developer’s ,EMD’s,Developer Affiliates’ or any other Landowner ’s rights set forth in the Development Plan and/or other Approved SSDPs (if any). Section 7.1 of the Town’s Charter precludes citizen-initiated measures regarding certain matters, including the zoning or rezoning of property. In accordance with Section 7.1 of the Town’s Charter, no initiated measure shall be permitted that would have the effect of modifying or negating the To wn ordinance by which To wn Council approved implementation of the Settlement Te rm Sheet,Ordinance No.12-10, or any instrument implementing the Settlement Term Sheet as approved in Ordinance No.12-10, including but not limited to the Development Plan. (f)Notwithstanding any additional or contrary provision of the Municipal Code (as in effect from time to time),and notwithstanding any prior expiration of the Te rm, the Ve sting Term with respect to the Development Plan and other Approved SSDPs (if any) shall not expire, be deemed forfeited, or otherwise limited or impaired prior to October 21, 2039. For the avoidance of doubt and notwithstanding any contrary provision of the Municipal Code (as in effect time to time), the scope of Ve sted Property Rights established by the Development Plan specifically includes the right that all amendments to the Development Plan or other Approved SSDPs (if any)approved by the Town shall be and remain vested through and including October 20, 2039, and includes the right to retain and enjoy the remaining period of the Vesting Term for any amendment to the Development Plan or other Approved SSDPs (if any). Accordingly, during the Ve sting Te rm (and notwithstanding any prior expiration of the Te rm) To wn Council (or other final decision-maker of the To wn) shall not condition approval of any future amendment to the Development Plan or other Approved SSDPs (if any)on, nor shall To wn Council (or other final decision-maker of the To wn) make an y such approval subject to the Applicant’s, Landowner ’s or Master Developer ’s consent to,a reduction of the then-remaining Ve sting Term. 2.5 No Obligation to Develop. (a)Master Developer; Other Landowners. Neither Master Developer nor an y Landowner shall have any obligation arising under this Development Agreement to develop all or any portion of the Project,nor shall Master Developer or any Landowner have any liability to the Town or an y other party arising under this Development Agreement for not developing all or any part of the Project. The Parties contemplate that the Project will be developed in phases as generally driven by market conditions as they exist from time to time. Neither Master Developer nor any Landowner shall have any obligation arising under this Development Agreement to develop all or any portion of any such phase, notwithstanding the development or non-development of any other phase, and neither Master Developer nor any Landowner shall EXHIBIT A to Heil Memorandum dated June 6, 2013 12 1001679.22 FINAL have any liability to the To wn or any other party arising under this Development Agreement for not developing all or any portion of any such phase of the Project. (b)Districts. The Districts’ Service Plans establish the scope of the Districts’ authorized activities and shall not be construed to constitute an obligation of the Districts to cause the development of any particular Public Improvements, or to provide any particular services or to perform any other function for which the Districts have authorization, nor shall such Service Plans be construed to create any obligation of Master Developer or any Landowner to provide any Public Improvements, any services or to otherwise pay any monies or perform any actions on behalf of or for the benefit of the Districts. No District shall have any obligation arising under this Development Agreement to develop all or any portion of the Public Improvements,nor shall any District have an y liability to the To wn or any other party arising under this Development Agreement for not developing all or any part of the Public Improvements. The Parties contemplate that the Project will be developed in phases as generall y driven by market conditions as they exist from time to time. No District shall have any obligation arising under this Development Agreement to develop all or any portion of the Public Improvements pertinent to any such phase, notwithstanding the development or non-development of any Public Improvements for any other phase, and no District shall have any liability to the To wn or an y other party arising under this Development Agreement for not developing all or any portion of the Public Improvements pertinent to any such phase of the Project. The foregoing shall not be construed to relieve any District of any obligation established pursuant to the terms and conditions of a Public Improvements Agreement that is executed by a District as contemplated in Section 3.2(a). (c)Construction and Interpretation. For purposes of this Section2.5 references to Master Developer,Landowners and the Districts shall be construed to include their respective employees, agents, members, officers, directors, shareholders, consultants, advisors, successors, assigns and similar individuals or entities. 2.6 Compliance with General Regulations. Except as otherwise provided in the Development Plan, the establishment of Ve sted Property Rights under this Development Agreement shall not preclude the application on a uniform and non-discriminatory basis of Town ordinances and regulations of general applicability (including, but not limited to, building, fire, plumbing, electrical and mechanical codes, the Municipal Code (as in effect on the Original Effective Date or as amended from time to time), and other To wn rules and regulations) or the application of state or federal regulations, as all of such regulations existed on the Original Effective Date or may be enacted or amended after the Effective Date; provided, however, that To wn ordinances and regulations newly enacted or amended after the Original Effective Date shall not directly or indirectly have the effect of adversely altering, impairing, preventing, diminishing, imposing a moratorium on development, delaying or otherwise adversely affecting any Landowner ’s Vested Property Rights. No Landowner shall be deemed to have waived its right to oppose the enactment or amendment of any such ordinances and regulations. EXHIBIT A to Heil Memorandum dated June 6, 2013 13 1001679.22 FINAL ARTICLE3 PUBLIC IMPROVEMENTS;DEVELOPMENT STANDARDS; EXACTIONS 3.1 Design Review. As contemplated by the Original Agreement and as more particularly described in the PUD Guide, the Design Review Board has been established (and, as required by the Original Agreement, includes a member designated by the Town’s Planning and Zoning Commission), the Design Covenant has been Recorded and the Design Review Guidelines have been promulgated. During the Term, the Design Review Board shall continue to consist of not more than five (5) members, one (1) of whom shall be a member of the Town’s Planning and Zoning Commission designated by the Town from time to time and the remainder of whom shall be appointed as provided in the governing documents of the Design Review Board. The Design Covenant shall govern matters related to use and development of all or any part of the Property. Where any conflict between the Design Review Covenant and the Development Plan may occur, the most restrictive provision shall govern. The Design Review Board shall refer to the Town’s Planning and Zoning Commission, for comment only and not for approval or disapproval: (A)all development proposals submitted to the Design Review Board for portions of the Property located south of Interstate 70; (B)all portions of the Property located north of Interstate 70 other than Planning Areas K and RMF-1 (with respect to which the Design Review Board shall have no obligation to refer to the Town’s Planning and Zoning Commission); and (C) all proposed amendments to the Design Covenant. At Master Developer’s option, separate design review board(s) may be established with respect to Planning Areas RMF-1 and K. Such separate design review board(s), if any,created for Planning Areas RMF-1 and K shall not be required to include any Town official as a member. 3.2 Allocation of Public Improvement Obligations. Except as otherwise expressly set forth in this Development Agreement, the timing of the design, construction and financing of the Public Improvements, as well as the designation of the specific entity responsible for such design, construction and financing, will be addressed in the applicable Public Improvement Agreement(s)as development of the Project takes place in conjunction with the processing of the applicable Development Application (which may or may not be a subdivision application). The Public Improvement obligations described in this Development Agreement are intended to be allocated among, as applicable,the Districts, Master Developer, a Developer and/or an Applicant based on the relationship between the particular Public Improvement(s), the Site owned by the particular Developer and/or Applicant, and the nature of the development occurring on the Site. This Development Agreement does not specifically allocate such Public Improvement obligations, it being the Parties’ intent that the allocation will be set forth in a Public Improvement Agreement executed in connection with the processing and approval of the applicable Development Application. Public Improvements for which a District does not undertake to finance the design, construction, maintenance and operation shall be undertaken by the applicable Developer and/or Applicant. All such Public Improvements, whether undertaken by a District or undertaken by a Developer and/or Applicant, shall be undertaken and provided in accordance with the terms and conditions of the applicable Public Improvement Agreement executed in connection with approval of the pertinent Development Application. (a)Role of Districts. Subject to the availability of funds therefor, District board of directors authorization,the terms and conditions of this Development Agreement,the Districts’ respective Service Plans and state law,and in consideration of the To wn’s performance EXHIBIT A to Heil Memorandum dated June 6, 2013 14 1001679.22 FINAL of its obligations under this Development Agreement (specifically including but not limited to the Financing Plan), the Districts may from time to time (without obligation to do so arising under this Development Agreement) undertake to finance the design, construction, maintenance and operation, as applicable, of the Public Improvements as and when reasonably needed to support development of the Project. References to Master Developer, EMD, Developer Affiliates, Developers, Landowners or Applicants in the context of the Public Improvement obligations addressed in this Development Agreement will be construed to mean and include by reference the applicable Districts to the extent particular Districts have undertaken such obligations pursuant to the terms of a Public Improvement Agreement as contemplated in this Development Agreement. This Development Agreement will not be construed as creating an implied obligation for the Districts to finance or construct any particular Public Improvements prior to such District’s execution of a Public Improvement Agreement pursuant to which the applicable District undertakes specific obligations regarding specific Public Improvements. Any obligation undertaken by a District pursuant to this Section3.2 shall not be construed to constitute a multiple fiscal year obligation of such District, but shall be subject to annual budget and appropriation unless otherwise agreed to in writing by such District. (b)Assurance of Completion. The Applicant for any Development Application submitted after the Effective Date will provide an improvement guarantee assuring completion of the Public Improvements as required by the Municipal Code as then in effect (to the extent not inconsistent with an express provision of this Development Agreement or the PUD Guide), and as more particularly described in the applicable Public Improvement Agreement to be executed in connection with future Development Application approvals. 3.3 Public Roads and Access. (a)General. Access, ingress and egress to, from and within the Project shall be provided as generally described in the Development Plan. As generally described in Recital K, prior to the Execution Date TCMD has fully performed all road construction obligations specifically required pursuant to the Original Agreement. The PUD Master Plan graphically depicts the alignments of existing permanent roads, the alignments of existing temporary roads, and potential conceptual alignments of some future roads. Subject to the availability of District Revenues not pledged or otherwise encumbered by the obligations of the Districts as set forth herein or under an y debt instruments contemplated herein, one or more of the Districts may (as contemplated by and subject to the conditions described in Section 3.2(a)) undertake to finance and/or construct the public roads within the Project. All public roads, whether constructed by or on behalf of a District or a Developer, shall be constructed in accordance with the standards set forth in the PUD Guide and shall be Dedicated to and Accepted by the To wn in accordance with Section 3.3(b). Nothing set forth in the preceding sentence shall prohibit or limit a Landowner ’s right to construct and maintain private roads, or to construct and Dedicate public roads to the To wn or to a District (subject to the availability of sufficient District Revenues to maintain such public roads). (b)Dedication; Acceptance and Maintenance of Public Roads and Rights-of- Wa y. Subject to the specific terms and conditions set forth in Article 4 and Article 6: EXHIBIT A to Heil Memorandum dated June 6, 2013 15 1001679.22 FINAL (i)Existing Public Roads. Contemporaneously with the Effective Date, TCMD conveyed to the To wn all of TCMD’s right, title and interest in and to the existing public road tracts (Swift Gulch Road, Post Boulevard, Fawcett Road and Yo der Av enue),together with the road improvements, streetscape improvements, landscape improvements and drainage improvements located within such rights-of-way. The To wn granted Final Acceptance of all such roadways and related improvements for maintenance without reservation or condition, whether related to warranty periods or otherwise, and released all warranty collateral related thereto. (ii)Main Street. As of the Execution Date, the temporary alignment and road surface of East Beaver Creek Boulevard within Lot 1 (redesignated in the PUD Guide as Main Street) is located within the easement established by the Easements with Covenants and Restrictions Affecting Land, dated April 24, 2002, and Recorded May 8, 2002, at Reception No. 795009, and shall not be Dedicated to the Town until such time as each pertinent phase of the final alignment thereof is completed as more specifically set forth in the PUD Guide. Dedication of each phase of the permanent alignment of Main Street shall be accomplished pursuant to clause (iii)below. During the period prior to Dedication of each phase of the permanent alignment of Main Street, the To wn is and shall remain responsible for snow removal, road maintenance, streetscape maintenance and landscape maintenance within the current East Beaver Creek Boulevard easement. The Parties acknowledge that no streetscape or landscape improvements are located within the East Beaver Creek Boulevard easement as of the Execution Date, but that the To wn shall maintain such streetscape or landscape improvements, if any, that may be installed after the Execution Date. Asphalt overlays shall not be required prior to Dedication of each phase of Main Street and, as set forth in Section 4.2(d), the To wn shall undertake responsibility for asphalt overlays for each phase of Main Street only after Dedication of each such phase of Main Street. From and after Dedication of each phase of the permanent alignment of Main Street, the terms and conditions of clause (iii)below shall apply to such Dedicated phase. (iii)Future Public Roads and Rights-of-Wa y. Future public road rights-of-way (including future phases of the permanent alignments of Main Street and East Beaver Creek Boulevard) shall be Dedicated to the To wn by Recording of the pertinent final plat or, if acceptable to the Town, by Recording of a special warranty deed in the form attached as Exhibit B of this Development Agreement upon generally the same terms and conditions as the conveyances referenced in clause (i)above. Upon completion of construction, Public Improvements located within public road rights-of-way shall be Dedicated to the To wn by bill of sale. Concurrently with the Dedication, the To wn shall grant Preliminary Acceptance of the pertinent property interests and Public Improvements. Upon expiration of the warranty period and resolution of any warranty matters that might arise during the Preliminary Acceptance period, the To wn shall grant Final Acceptance. With respect to the primary road providing access to Planning Area K, the To wn and Master Developer acknowledge it is intended that the road will be a public road from the Post Boulevard roundabout located north of Interstate 70 to a point approximately adjacent to the northwest corner of Lot 73 as indicated on the PUD Master Plan in effect as of the Effective Date, and will be a private road from that point through the remaining area of Planning Area K. The final EXHIBIT A to Heil Memorandum dated June 6, 2013 16 1001679.22 FINAL point of demarcation will be established at the timing of final subdivision plat. The Town shall have no maintenance or snow removal responsibility for the portion of such road that is private. (iv)Sidewalk Snow Removal. The To wn’s obligation pursuant to this Development Agreement to remove snow from sidewalks shall be limited to Post Boulevard, Main Street (in both the interim East Beaver Creek Boulevard alignment existing as of the Ex ecution Dateand the future final Main Street alignment), Swift Gulch Road, Fawcett Road and Yo der Av enue. Maintenance of other sidewalks along public roads shall be in accordance with generally applicable standards set forth the Municipal Code (as amended from time to time) and applied uniformly throughout the To wn. (c)Phased Road Improvements. (i)Generally. All roads, including Main Street and East Beaver Creek Boulevard (as such roads are identified on the PUD Master Plan), may be developed in phases in accordance with the road standards set forth in Exhibit F of the PUD Guide and as warranted based on the applicable traffic study. (ii)Main Street. Without limiting the generality of the foregoing, construction of the final alignment of Main Street shall consist of converting the existing alignment and road surface from temporary to permanent by the phased construction thereof in accordance with the road standards set forth in Exhibit F of the PUD Guide. (iii)East Beaver Creek Boulevard. The Town shall not require completion of East Beaver Creek Boulevard as a through road until the earlier of: (A)such time as it becomes necessary to construct a particular phase of East Beaver Creek Boulevard to provide a means of ingress to and egress from Sites within Lot1 that are undergoing vertical development and do not otherwise have access to a public street; or (B)such time as a particular development proposal within Lot 1 requires completion of the connection in order to preclude the impact of the approved development proposal from reducing the level of service (LOS) on Main Street below a designation of “C” (estimated to be in the range of approximately 8,000 to 11,000 vehicle trips per day) as established by traffic studies to be provided by a traffic engineer or firm licensed in Colorado in connection with the particular approved development proposal. Subject to review by the Town Engineer, the north/south alignment of East Beaver Creek Boulevard within Planning Areas C and D may be established to include an interim or permanent connection to Main Street (e.g., East Beaver Creek Boulevard can connect to Main Street east of Planning Area A and either continue to the roundabout at the southeast corner of Planning Area F in an interim condition or separate from Main Street and connect to the roundabout at the northeast corner of Planning Area F in either an interim or permanent condition) so long as the easterly (roundabout at Post Boulevard) and westerly (where East Beaver Creek Boulevard enters the Project) connections depicted on the PUD Master Plan are maintained and each segment of Main Street is maintained at not lower than LOS “C” (e.g., if the traffic studies demonstrate that LOS “C” can be maintained on the easterly segment of Main Street with an interim connection as described above, EXHIBIT A to Heil Memorandum dated June 6, 2013 17 1001679.22 FINAL completion of the final through connection alignment of East Beaver Creek Boulevard would not be required). (d)Dry Utilities. In connection with the Dedication of any public road rights-of-way (whether by special warranty deed or by final plat),including those rights-of-way Dedicated pursuant to Section 3.3(b)(i)and subject to such reserved rights,Master Developer or the pertinent Landowner shall have the right to reserve the exclusive right to install, own, operate, maintain, repair, replace and control access to all “Dry Utilities” (as defined in the PUD Guide) located or to be located within Dedicated public road rights-of-way; provided, however, that such activities shall be coordinated with the Town and all such Dry Utilities shall be located in such a manner as to comply with Town requirements regarding separation from public utilities located or to be located within such rights-of-way. 3.4 Municipal Water; Water Rights Dedications. Certain water rights have been conveyed to, or otherwise acquired by, the Authority to be used in connection with the development of the Project and to serve uses within the Project, including some of the water rights and historic consumptive use credits decreed in Case No. 97CW306, a prior payment to the Authority equivalent to 200 shares in the Eagle Park Reservoir Company and contract rights to water supplied by the Colorado River Water Conservation District (together with additional water rights, if any, Dedicated to the Town or to the Authority for such purposes after the Effective Date pursuant to Section 3.4(c),the “Water Rights”). Pursuant to and as more particularl y described in the Tank Agreement: (i)as of the Effective Date, TCMD has conveyed to the Town, and the Town has thereafter conveyed to the Authority, certain interests in the Water Rights; (ii) the Water Rights conveyed to the Authority as of the Effective Date are deemed sufficient to provide potable water service up to a maximum of 106.3 acre-feet of consumptive use per year in accordance with depletion factors decreed in Case No.97CW306; and (iii) as of the Effective Date, the Authority is legally obligated to issue taps and to provide the number of single family equivalents (SFE) of potable water service to the Project that is equivalent to 106.3 acre-feet of consumptive use per year, as more fully set forth in the augmentation plan approved in Case No.97CW306. The amount of consumptive use attributable to potable water service pursuant to the depletion factors and other assumptions set forth in the plan for augmentation decreed in Case No.97CW306 is calculated as 180.6 acre-feet per year less 74.3 acre-feet per ye ar reserved by the Town for raw water irrigation and lake evaporation purposes [180.6 –74.3 = 106.3]. The 106.3 acre-feet of consumptive use is referred to for purposes of this Section3.4 as the “potable water allocation” and the 74.3 acre-feet of consumptive use is referred to herein as the “raw (non-potable) water allocation.” Additionally, the Tank Agreement provides that the Town has certain obligations with respect to providing municipal water service to the Project under circumstances where the Authority fails to provide such services due to dissolution or otherwise. (a)Water Bank. Master Developer and the Town shall establish and jointly maintain a cumulative written record (the “Water Bank”) that documents: (i)the total Water Rights, stated as the total “potable water allocation” and the total “raw (non-potable) water allocation;”(ii)the specific portion of the “potable water allocation”that is assigned to particular Sites; (iii)the specific portion of the “raw (non-potable) water allocation”that is assigned to each parcel of irrigated area or lake surface for evaporation replacement within the Property (including such raw water uses as the Town has agreed to serve pursuant to this Development EXHIBIT A to Heil Memorandum dated June 6, 2013 18 1001679.22 FINAL Agreement and the Tank Agreement)and (iv)the “potable water allocation” and the “raw (non-potable) water allocation”remaining available to be assigned for use within the Property. In connection with each final subdivision plat for a Site (whether processed administratively or formally) or building permit (if no water allocation, or insufficient water allocation, has previously been assigned to such Site), and subject to Subsection 3.4(c), Master Developer shall designate the portion of the “potable water allocation” and the “raw (non-potable) water allocation”that is assigned for development of the Site, and concurrently with approval of the pertinent final subdivision plat (or issuance of the pertinent building permit(s))the Water Bank shall be updated to reflect such allocation and to reflect the corresponding reduction in the “potable water allocation” and the “raw (non-potable) water allocation”remaining available for use within the Property. Lot 1 as it is configured on the Effective Date shall be exempt from the foregoing requirement, but parcels within Lot 1 that are created by further subdivision of Lot 1 for purposes of development shall be subject to the foregoing requirement. The amount of consumptive use required to service development shall be based on the estimated demand, depletion factors and other assumptions set forth in the plan for augmentation decreed in Case No. 97CW306. (b)Return of Water Rights to Water Bank. If the amount of the “potable water allocation” and the “raw (non-potable) water allocation”assigned for any particular Site exceeds the amount of the “potable water allocation” and the “raw (non-potable) water allocation”actually required to serve the Site based upon actual development and final build-out thereof (such actual “potable water allocation” and “raw (non-potable) water allocation”demand to be determined in accordance with generally applicable requirements of the Authority and in accordance with the depletion factors decreed in Case No.97CW306), the excess and unused portion of such water allocation shall be returned to the Water Bank and the Water Bank shall be revised to reflect that such excess and unused portion of such water allocation is available for assignment and is no longer assigned to the original Site. Excess and unused water allocation amounts returned to the Water Bank shall be available for allocation in accordance with Section 3.4(a)as though such water allocation amounts had not previously been allocated from the Water Bank to serve a particular Site. The determination of excess portion of any water allocation shall be determined by the Town and subject to the approval of the Authority, pursuant to their respective generally applicable requirements,and shall be based on consumptive use of the final build-out of any Site in accordance with the depletion factors and other provisions of the decree in Case No.97CW306. The Town may require water usage restrictions or maintenance requirements to prevent any future increase of consumptive water use above the amount determined necessary to serve the final build-out of any Site. (c)Additional Water Rights. (i)For the Property. Full build out of the Project as contemplated by the Development Plan may require in excess of 180.6 acre-feet of consumptive use. If the aggregate total Water Rights is insufficient to support full development of the Project in accordance with the decree in Case No.97CW306 and the PUD Guide,and all available water allocations under the Water Rights have been assigned to Sites (whether developed or undeveloped) such that there is no water allocation remaining in the Water Bank, no further development may occur within the Property unless and until, with respect to the water allocation required to support such further development: EXHIBIT A to Heil Memorandum dated June 6, 2013 19 1001679.22 FINAL (A)additional water rights are Dedicated resulting in additional water allocation amounts being available for assignment pursuant to the Water Bank; or (B) payment is made of fees in lieu of additional water rights Dedication; or (C)previously allocated but unused water allocation amounts are re-assigned from the original Site,and/or from raw (non- potable) water uses to potable uses, and returned to the Water Bank in accordance with Section 3.4(b). Acceptance of fees in lieu of additional water rights Dedication shall be subject to the sole discretion of the Town. (ii)For a Specific Site. If the water allocation amounts assigned to a Site in connection with a Development Application are not sufficient to serve the level of development proposed in the Development Application, the Town may condition approval of the Development Application on the Applicant satisfying the water allocation requirements for the Development Application by one or a combination of: (A)obtaining Master Developer’s allocation of additional water allocation amounts from the Water Bank; (B)Dedicating such additional water rights (meeting the generally applicable requirements of the Authority and the Town) as may be required to support the proposed level of development; or (C)paying such fees-in-lieu of water rights Dedication as may be required to fully satisfy the water allocation amounts requirement for the Development Application. The Dedication of additional water rights and the payment of fees-in-lieu of water rights Dedication shall be subject to review by the Town in accordance with the Municipal Code, and subject to approval by the Authority or its successor. Under such circumstances, the additional water rights Dedication or payment of fees-in-lieu shall be a condition precedent to, as applicable, issuance of the building permit or Recording of the final subdivision plat. (iii)Under the circumstances addressed in the foregoing clause (i) and clause (ii), which provisions shall be strictly construed against precluding development, the Town shall have no obligation to Record a final subdivision plat or issue a building permit with respect to a particular Site unless the requisite additional water allocation amounts obligation is satisfied in accordance with this Section 3.4(c). The determination of whether Dedication of additional water rights or payment of fees in lieu shall be in accordance with generally applicable rules and regulations of the Authority and the Town. Dedications of water rights, if required, shall be made in accordance with generally applicable Town rules, regulations and agreements with the Authority as in effect from time to time, it being acknowledged that the Town’s generally applicable rules, regulations and agreements with the Authority in effect as of the Effective Date require Dedication to the Town and conveyance of such water rights by the Town to the Authority. (d)Building Permits; Moratoria. The To wn shall not withhold issuance of building permits, certificates of occupancy or processing/approval of Development Applications, nor shall the Town impose or enforce any moratorium on development within the Project, on the basis of insufficient Dedication of water rights for development which does not exceed the consumptive use of the water rights that have been Dedicated pursuant to the Ta nk Agreement (or which does not exceed the consumptive use of any such additional water rights that may subsequently be Dedicated or otherwise conveyed) at such time. EXHIBIT A to Heil Memorandum dated June 6, 2013 20 1001679.22 FINAL (e)Additional Wa ter Ta nks. If TCMD, any Applicant or any other party undertakes to construct one or more water storage tanks at an elevation higher than the water storage tank to be constructed pursuant to the Tank Agreement, and notwithstanding any contrary provision of the Municipal Code (as in effect from time to time), the To wn shall not require the Applicant to seek a 1041 permit and shall not require the tank site to be a legally subdivided parcel (provided the owner of the water storage tank has an easement for the operation and maintenance thereof, and further provided that the Town may require the tank site easement area to be platted at such time as the pertinent lot(s) or tract(s) within Planning Area K are platted). If construction of an y such water storage tank is undertaken independent and in advance of development of the portion of the property to be served by the water storage tank, the Town shall not require execution of a Public Improvement Agreement or monetary collateral (cash escrow, letter of credit or similar mechanism) for assurance of completion of the water storage tank; provided, however, that the To wn may require a bond for the purpose of ensuring erosion control, mitigation of safety hazards, fencing and other matters related to properly securing the site if construction is discontinued indefinitely prior to completion. If construction of any such water storage tank is undertaken as a condition of approval of a Development Application for development of a Site with respect to which service will be required to be provided from the to be constructed water storage tank, the To wn may require construction of the water storage tank and assurance of completion thereof pursuant to the terms and conditions of a Public Improvement Agreement as otherwise provided in this Development Agreement. The To wn shall have no obligation to issue a temporary or final certificate of occupancy for a habitable structure within any Site with respect to which water service cannot be provided without such water storage tank becoming operational until such time as the pertinent water storage tank becomes operational. The foregoing shall not preclude the To wn from issuing a building permit prior to completion of such a water storage tank if the Town determines such action to be consistent with public health, safety and welfare under circumstances then pertaining (for example, the water storage tank is reasonably anticipated to be operational prior to completion of the improvements for which the building permit is issued and the issuance of the building permit is conditioned on the water storage tank becoming operational prior to issuance of a temporary or permanent certificate of occupancy). (f)Tap Fees; Town Obligations Upon Assuming Authority Obligations. If the Town undertakes to provide water service to the Property in connection with dissolution of the Authority or otherwise, the Town shall charge water tap fees and usage charges to users within the Property on a uniform, non-discriminatory basis with other users within the Town. The Town shall remit monthly to TCMD,subject to annual appropriation to the extent required by Section 20 of Article X of the Colorado Constitution,100% of all water tap fees collected by the Town with respect to providing water service to any user of the Property. Alternatively, the Town may direct that all such users remit water tap fees directly to TCMD. The Town expressly disclaims any right, title or interest in or to any tap fees payable in connection with development within the Property, and acknowledges that all such tap fees constitute District Revenues and are the property of, and shall be due and payable to, TCMD. 3.5 Sanitary Sewer. The Sanitation District, rather than the To wn, provides sanitary sewer service to the Project. The topography of Planning Area K, the size of the lots contained in Planning Area K, the relative remoteness of Planning Area K from the rest of the Project and from the facilities of the Sanitation District, together with the comparative ease of servicing EXHIBIT A to Heil Memorandum dated June 6, 2013 21 1001679.22 FINAL Planning Area K with individual septic tank and leach field systems, render all or designated areas within Planning Area K appropriate for exclusion from the Sanitation District. Accordingly, the Town will not oppose the proposed exclusion from the Sanitation District of all or any part of Planning Area K, whether initiated by Master Developer or the Developer of such portion of Planning Area K. 3.6 Drainage Plans; Stormwater Management. Drainage plans and stormwater management plans required in connection with the processing of any Development Application shall be in accordance with the terms and conditions of the PUD Guide. Wi thout limitation of the foregoing, in processing any Development Application, the To wn shall incorporate the assumptions of the drainage study prepared by David Johnson for the Property with respect to reducing the calculated stormwater flows, management and detention requirements based on the mitigating effect of vegetation within the Property, and the assumptions set forth therein shall govern and control over any conflicting provisions or assumptions in the To wn’s drainage master plan. However, if the To wn amends its drainage master plan, which amendment results in less restrictive or less burdensome provisions than set forth in the David Johnson drainage study, such less restrictive or less burdensome provisions in the To wn’s drainage master plan shall apply to the Property. 3.7 Land Dedications. As generally described in Recital K, prior to the Execution Date the pertinent Landowner fully performed certain land Dedication obligations specifically required to be performed pursuant to the Original Agreement, and all such Dedications shall be deemed to have been granted Final Acceptance. This Section3.7 sets forth the sole unperformed and/or additional obligations of Master Developer, EMD, the Developer Affiliates, or any pertinent Landowner to Dedicate land (subject, however, to adjustment pursuant to Section 3.9(b), if applicable), and the assumptions underlying the Finance Plan are expressly based upon and reliant on the specific land Dedication requirements set forth in this Section3.7. Accordingly, except as otherwise set forth below, during the Te rm and notwithstanding any current or future provision of the Municipal Code to the contrary (except pursuant to Section 3.9(b), if applicable), the To wn shall not impose any land Dedication requirement, impact fee requirement or development exaction of any sort, except for the following, the performance of which together with prior land dedications and related exactions fully satisfies and extinguishes any dedication, impact fee and/or development exaction obligations pertaining to or in connection with development of the Project: (a)School Site Dedication. The Original Agreement set forth certain requirements regarding the Dedication of land or cash in lieu thereof to address the impact of the Project on the school system. Pursuant to the Settlement Term Sheet, the school site provision of the Original Agreement has been modified as set forth in this Section 3.7(a)and, as of the Effective Date, Ordinance No. 06-17 and all conditions and restrictions set forth therein are rendered legall y inoperative, void and of no further force or effect. (i)Parcels to be Conveyed. The following conveyances (collectively, the “School Site Dedication”)shall constitute full satisfaction of all requirements under the Municipal Code (as in effect from time to time)and other current or future Town regulations with respect to mitigation of the Project’s impact on the school system: EXHIBIT A to Heil Memorandum dated June 6, 2013 22 1001679.22 FINAL (A)Concurrently with the Effective Date, TC-RP conveyed to the To wn the approximately 3.536 acre Site designated on the PUD Master Plan as Planning Area E (i.e., Lot 3, The Second Amended Final Plat, Amended Final Plat, The Village (at Avon) Filing 1, a Resubdivision of Lot 1 (as Recorded on the Effective Date)). Neither TC-RP, Master Developer, TCMD, any Developer Affiliate nor any Landowner (other than the To wn or a state accredited educational entity to which the To wn has conveyed such Site) shall have any obligation with respect to provision of any Public Improvements or other on-site or off-site improvements for Planning Area E, all such obligations being the sole responsibility of the To wn. Accordingly, the To wn hereby grants Final Acceptance with respect to Dedication of Planning Area E. (B)EMD (or the Landowner at the pertinent time), shall Dedicate to the To wn an approximately 3.764 acre Site within Planning Area I upon Recording of the initial final subdivision plat within Planning Area I. Neither EMD (or the then-Landowner), TCLLC, TCMD, any Developer Affiliate, or any other Landowner (other than the To wn or a state accredited educational entity to which the To wn has conveyed such Site) shall have any obligation with respect to provision of any Public Improvements for the approximately 3.764 acre Site within Planning Area I. Accordingly, the To wn shall grant Final Acceptance with respect to Dedication of the Planning Area I Site concurrently with Recording of the conveyance documents and no Acceptance, assurance of completion requirement or warranty period requirements shall apply. Access to the Planning Area I Site from a public street and extension of utilities and other Public Improvements shall be addressed through the final subdivision plat process. (ii)Use Restriction. Notwithstanding anything to the contrary set forth in the Municipal Code (as in effect from time to time)or any other statute, ordinance, regulation or the like, use of the School Site Dedication parcels shall be restricted to state accredited education facilities serving grades K through 12 (or any portion of such grades). Each special warranty deed conveying a School Site Dedication parcel shall incorporate the foregoing use restriction, which use restriction shall be independently enforceable as a deed restriction and not merged into or construed to preclude enforcement of the use restriction imposed by this Section 3.7(a)(ii). Any use of the School Site Dedication parcels shall be subject to prior approval by the Design Review Board, including potential future uses including but not limited to pre-school, day care, community education, cultural, and/or are classes, museum, or recreational. (iii)Form of Conveyance. Conveyance of the Planning Area I School Site Dedication parcel shall be by special warranty deed in the form attached as Exhibit B to this Development Agreement, shall be without any reversionary clause, subject to all matters of Record other than monetary liens, and shall contain an express use restriction consistent with the foregoing Section 3.7(a)(ii). Conveyance of the Planning Area E School Site Dedication parcel was effected by Recording of a special warranty deed in the form attached as Exhibit B to this Development Agreement, without any reversionary EXHIBIT A to Heil Memorandum dated June 6, 2013 23 1001679.22 FINAL clause, subject to all matters of Record other than monetary liens, and containing an express use restriction consistent with the foregoing Section 3.7(a)(ii). (iv)Additional Conditions. (A)Any use undertaken and any improvements constructed or installed within the School Site Dedication parcels shall comply with the terms of the Development Plan and shall be subject to review and approval by the Design Review Board. Prior to development of the School Site Dedication parcels for school purposes, the To wn shall be responsible for installing and maintaining any improvements permitted to be made within the School Site Dedication parcels in accordance with the use restriction referenced in Section 3.7(a)(ii). After Dedication of the School Site Dedication parcels to the Town, the Town shall be responsible for controlling all noxious weeds within the School Site Dedication parcels. (B)If Eagle County School District demonstrates a need for a school site within the Project based on the impact of development within the Project, the To wn, Master Developer and EMD shall use best efforts to combine the park land dedicationscontemplated in Section 3.7(d)with the Planning Area I School Site Dedication parcel to create a consolidated site of sufficient size to meet the reasonable needs of the Eagle County School District. The preceding sentence shall not be construed to have the effect of:(i)creating a legal right of Eagle County School District to obtain a school site within Planning Area I or any other area of the Property; (ii) creating any legal obligation of the To wn, EMD, Master Developer or any Landowner or Applicant to provide a school site on Planning Area I or any other area of the Property to the Eagle County School District; or (iii) creating a legal obligation of the To wn, EMD, Master Developer, any Landowner or any Applicant to combine the park land Dedication with the Planning Area I School Site Dedication parcel. Eagle County School District shall not be construed to be, and the Parties expressly intend that Eagle County School District shall not be, an Intended Beneficiary. (C)The To wn may lease or convey such School Site Dedication parcels to educational districts or organizations upon such terms as the To wn determines in its sole discretion provided that: (i)such lease or conveyance shall be for nominal consideration;and (ii)such lease or conveyance shall be expressly subject to the use restriction established pursuant to Section 3.7(a)(ii) and the applicable deed restriction as contemplated by Section 3.7(a)(iii). (b)Dedication of Planning Area B.Concurrently with the Effective Date, TC-RP has conveyed to the Town the approximately 4.1 acre Site designated on the PUD Master Plan as Planning Area B (i.e., Lot 2, The Second Amended Final Plat, Amended Final Plat, The Village (at Avon) Filing 1, a Resubdivision of Lot 1 (as Recorded on the Effective Date)). Neither TC-RP, Master Developer, TCMD nor any Landowner (other than the To wn) shall have any obligation with respect to provision of any Public Im provements or other on-site or off-site improvements for Planning Area B, all such obligations being the sole responsibility of the Town EXHIBIT A to Heil Memorandum dated June 6, 2013 24 1001679.22 FINAL and not of AURA. Accordingly, the To wn hereby grants Final Acceptance with respect to Dedication of Planning Area B.Any construction of buildings or facilities or landscaping improvements on Planning Area B, or any Public Improvements required in connection with the To wn’s development of Planning Area B,shall be subject to prior approval by the Design Review Board. The To wn may create a plan for the development and use of Planning Area B, which may be adopted by the Design Review Board, and which shall then serve as a guide for review of uses and development of Planning Area B by the Design Review Board. Any use or plan for use of Planning Area B shall allow and incorporate the ability to construct for storage and/or augmentation purposes a water feature which can provide at least 2 acre feet of water storage (which shall not exceed a total surface area of 0.6 acres, including inflow and outflow on Planning Area B). Notwithstanding the preceding sentence, the To wn shall have the right to maintain and operate as public open space all or a portion of Planning Area B which is not yet developed in accordance with this Section. Pursuant to the PUD Guide, the To wn shall administratively process and approve subdivision re-platting of Planning Area B to adjust the boundary of Planning Area B in connection with final development of an adjacent Planning Area. The To wn shall not unreasonably deny, condition or delay final action with respect to a Development Application to administratively re-plat Planning Areas B as provided herein. Until such time as Planning Area B is developed or improvements are constructed thereupon that preclude use of Planning Area B for snow storage, the To wn and Master Developer (or its assignee(s)) shall have the right to use Planning Area B for snow storagein accordance with the terms of the Revocable License Agreement. (c)Planning Areas OS-5 and OS-6. EMD (or the Landowner at the pertinent time) shall convey Planning Areas OS-5 and OS-6 to the To wn concurrently with Recording of the initial final subdivision plat for Planning Area I. Neither EMD (or the then-Landowner), Master Developer nor TCMD shall have any obligation with respect to provision of any Public Improvements for Planning Areas OS-5 and OS-6. Accordingly, the To wn shall grant Final Acceptance with respect to Dedication of Planning Areas OS-5 and OS-6 concurrently with Recording of the conveyance documents and no Preliminary Acceptance or warranty period requirement shall apply. Such conveyance shall be by special warranty deed in the form attached as Exhibit B to this Development Agreement, and shall reserve to grantor (or its assigns, including a District) the right to construct a vehicle/pedestrian bridge crossing across Planning Areas OS-5 and/or OS-6 including the ability to construct and maintain bridge abutments and appurtenant roadways. Planning Areas OS-5 and OS-6 shall be conveyed without any reversionary clause, subject to all matters of Record other than monetary liens. The deed shall contain an express use restriction limiting use of the sites to open space and no other purposes (except those uses reserved to grantor as provided above). The To wn shall be responsible for installing and maintaining all improvements to be made within the open space parcels (other than those improvements grantor may cause to be installed per the reservation described above). After Dedication to the To wn, the To wn shall be responsible for controlling all noxious weeds within the open space parcels. Any improvements to be located within Planning Areas OS-5 and/or OS-6 shall be subject to Design Review Board review and approval. (d)Park Site Wi thin Planning Area I, J and/or K. As determined by Master Developer in its sole discretion,Master Developer shall cause the pertinent Developer Affiliate to Dedicate, or EMD (or the Landowner at the pertinent time) shall Dedicate, 5.8 acres of park land to be located within Planning Area I, J and/or K. After Dedication, the To wn shall be EXHIBIT A to Heil Memorandum dated June 6, 2013 25 1001679.22 FINAL responsible for improving and maintaining the park lands Dedicated pursuant to this Section 3.7(d)in the To wn’s sole discretion with regard to timing and appropriations. Neither the then-Landowner, Master Developer nor TCMD shall have any obligation with respect to provision of any Public Improvements for, or otherwise to improve,such Dedicated park land acreage. Accordingly, the To wn shall grant Final Acceptance with respect to Dedication of the park land acreage concurrently with Recording of the conveyance documents and no Preliminary Acceptance or warrant y period requirement shall apply. The foregoing obligation may be accomplished by one or more conveyances totaling not less than 5.8 acres in the aggregate. Such conveyance(s) shall be by special warrant y deed in the form attached as Exhibit B to this Development Agreement, without any reversionary clause, subject to all matters of Record other than monetary liens. The deed(s) shall contain an express use restriction limiting use of the Site(s) to, as applicable to the particular Site,public park purposes and no other purposes,but which may include trail heads, trail connections, dog park, or natural park (i.e., wetland/natural resource protection area, hillside slopes, view planes, streambed/buffer and similar natural condition preservation areas). The To wn shall be responsible for installing and maintaining all improvements to be made within the park site(s), and for controlling all noxious weeds within the park site(s). 3.8 Exactions,Fees and Payments. As generally described in Recital K, prior to the Execution Date development exactions, fees and payments required to be performed and/or made pursuant to the Original Agreement were fully or partially performed and, to the extent partially performed are hereby waived and extinguished pursuant to the Settlement Term Sheet and this Development Agreement. This Section3.8sets forth the sole and exclusive obligations and requirements with respect to exactions, impact fees and payments required in connection with development of the Project during the Te rm (subject, however, to adjustment pursuant to Section 3.9(b), if applicable),and the assumptions underlying the Finance Plan are expressly based upon and reliant on the specific land Dedication requirements set forth in Section3.7. Accordingly, and notwithstanding any current or future provision of the Municipal Code (except pursuant to Section 3.9(b), if applicable), the To wn shall not impose exactions or fees upon development within the Property for impacts related to schools, fire protection, emergency services, municipal facilities, public transit,municipal parks or open space which are in addition to the exactions, fees and payments described in this Development Agreement and/or the PUD Guide,or which have been previously paid or performed under the Original Agreement (such exactions, fees and payments fully satisfying and extinguishing any impact fee and/or development exaction obligations in connection with development of the Project). 3.9 Other Generally Applicable Ta xes, Assessments and Fees. (a)General. All current and future taxes,and all current and future assessments and fees (other than the exactions, development impact fees and payments addressed by Section 3.8), imposed by the Town on a uniform and non-discriminatory basis within the Town and not expressly addressed in this Development Agreement or in the PUD Guide shall apply in the same manner and to the same extent within the Property as within the rest of the Town. (b)Density Increases by PUD Guide Amendment. The land dedication obligations set forth in Section3.7 and the exaction, fee and payment obligations set forth in EXHIBIT A to Heil Memorandum dated June 6, 2013 26 1001679.22 FINAL Section3.8 are, as stated in such provisions, the sole and exclusive obligations with respect to such matters; provided, however, that such obligations are predicated on the maximum residential and commercial densities permitted by the PUD Guide in effect as of the Effective Date (including the minimum residential and commercial densities set forth therein for Planning Area I). Accordingly, to the extent the PUD Guide in effect as of the Effective Date is amended after the Effective Date to increase the maximum commercial and/or residential densities permitted by the PUD Guide (as so amended), the Town shall have the right to evaluate the impacts of such increased densities and to condition approval of such PUD Guide amendment on the imposition of additional land dedication and/or exaction, fee or payment obligations that correspond to the increment of increased density approved in such amendment. The additional requirements, if any, shall be based on the Municipal Code requirements in effect as of the submittal date of the pertinent PUD Guide amendment as applied only to the increment of increased density approved in such PUD Guide amendment. By way of example, if a PUD Guide amendment is approved which increases the maximum commercial density within the Project by 100,000 square feet, the maximum additional obligation with respect to matters addressed in Sections3.7 and 3.8 shall be limited to what would be required to mitigate 100,000 square feet of commercial density under the Municipal Code requirements in effect on the submittal date of the PUD Guide amendment application. With respect to Planning Area I, any future PUD Guide amendment which establishes the minimum residential and commercial densities stated in the PUD Guide in effect as of the Effective Date shall not result in the imposition of an y additional obligations with respect to matters addressed in Sections 3.7 and 3.8, but any amendment which has the effect of approving commercial or residential densities for Planning Area I in excess of the minimum densities stated in the PUD Guide in effect as of the Effective Date may require additional mitigation for the increment of increased density in the manner described above. 3.10 Prioritized Capital Projects. The Parties have identified the subset of Public Improvements set forth in Exhibit D (the “Prioritized Capital Projects”) as having particularly high value in supporting and encouraging the types of development within the areas of the Project that would produce relatively greater District Revenue and Municipal Payment revenues, at relatively less Public Improvement cost, and at a relatively earlier point in the development sequence. It is the Parties’ intent that, subject to market conditions and the terms and conditions of this Development Agreement (including but not limited to Sections2.5 and 3.3), priority will be placed on supporting and encouraging investment in the Prioritized Capital Projects in order to support and encourage development to occur within Planning Areas A, C, D, F and J such that the Supplemental Bond capacit y available pursuant to the Financing Plan is utilized to encourage development that has a relatively greater probability of producing relatively greater increases in District Revenue and Municipal Payments. Accordingl y, unless the Town and Master Developer agree otherwise in writing, the following requirements shall be binding: (a)East Beaver Creek Boulevard. Until such time as AURA has fully funded completion of East Beaver Creek Boulevard as contemplated by Section 6.7(g)(i)or such earlier time as East Beaver Creek Boulevard has been completed as a through road, $6,200,000 (adjusted as stated below) of the Credit PIF Cap shall be reserved to fund completion of East Beaver Creek Boulevard in its permanent alignment in the manner contemplated by and subject to the terms, conditions, phasing,design standards and construction timing obligations set forth in the PUD Guide and Sections 3.3(b)(iii)and 3.3(c)of this Development Agreement. The EXHIBIT A to Heil Memorandum dated June 6, 2013 27 1001679.22 FINAL foregoing amount shall be reduced from time to time in an amount equal to the amount of Capital Project Costs (whether utilizing Credit PIF Revenues or TIF Revenues) for each phase of East Beaver Creek Boulevard that is granted Preliminary Acceptance, excluding from such reduction the Capital Project Costs, if any, attributable to any interim connection that is not incorporated into the permanent alignment of East Beaver Creek Boulevard as a through road pursuant to Section 3.3(c)(iii). Any portion of the foregoing reserved amount that has not been utilized upon completion of the permanent alignment of East Beaver Creek Boulevard as a through road, or upon a determination that the LOS requirement stated in Section 3.3(c)(iii)has been satisfied upon full build-out of Lot 1, shall be released and made available to fund other Cap Amounts as provided in Section 3.10(c). (b)Other Reserved Funds. Of the total Supplemental Bond capacity available under the Credit PIF Cap, a total of $17,500,000 (inclusive of the $6,200,000 reserved pursuant to Section 3.10(a)) shall be reserved to fund Capital Project Costs incurred in connection with construction of the Prioritized Capital Improvements. (c)Balance of Supplemental Bond Capacity. The balance of Supplemental Bond Capacity available under the Credit PIF Cap (after reservation and utilization of the funding capacity as described in clauses (a) and (b) above) may be utilized in TCMD’s discretion to fund other Cap Amounts. 3.11 Landscaping/Visual Mitigation for Hurd Lane/Eagle Bend. In order to provide off-site mitigation for the benefit of the residents of Hurd Lane and Eagle Bend, Master Developer will, subject to receiving the right-of-way license or other form of approval from the Town and as otherwise subject to the terms and conditions of this Section 3.11,cause the following to be installed, in locations mutually determined by Master Developer and the Town, within the Hurd Lane right-of-way (which is owned by the Town): (i) 75 each of 10’ Colorado Spruce Trees (either Blue or Green); (ii)55 each of 6-7’ Lilacs; and (iii)Irrigation –Drip poly tubing with three emitters per plant. Master Developer will be responsible for the cost of the planting materials, delivery of same to the site, labor and equipment for planting of the plant materials, and for parts and installation of the irrigation system. Installation will be undertaken during the planting season in the spring of the year following the Effective Date. The Town will be solely responsible, at its sole expense, to provide the water tap(s) and water rights (from the Town’s water rights inventory) for irrigation of the plant materials, any vaults(s) required for the tap connection, for irrigation of the plant materials, and for maintenance and replacement of the planted materials commencing on the day of installation. Additionally, the Town shall have the obligation to provide a license or other form of legal right as may be necessary to enable Master Developer to perform such plantings, and Master Developer shall have no obligation to perform such plantings unless/until the Town has issued the appropriate license or similar form of approval to perform the work in the right-of-way. From and after the initial installation, Master Developer shall have no further obligation with respect to the plant material or irrigation system, such obligations being fully assumed by the Town as of the date of installation. Master Developer may satisfy this obligation with the Town’s consent by tendering a cash payment to the Town in an amount acceptable to the Town for the sole purpose of purchasing and installing the landscaping/visual mitigation described herein, and if the Town receives and accepts such cash payment then the Town shall provide to Master Developer a written acknowledgement and release that Master Developer has satisfied in full its obligations in this Section 3.11. EXHIBIT A to Heil Memorandum dated June 6, 2013 28 1001679.22 FINAL ARTICLE4 MUNICIPAL SERVICES; OBLIGATIONS OF TOWN AND AURA 4.1 Municipal Services. The Town shall have the ongoing responsibility and obligation to provide all municipal services to the Property and the Project including, without limitation, police protection, snow removal and road maintenance, maintenance (including repair and replacement)of streetscape improvements and landscaping within public road rights-of-way, bus transportation services, asphalt overlay of public roads, building code enforcement and other administrative services equivalent (except as expressly modified or qualified by Sections 3.3(b), 3.4, 4.2(c)and 4.2(d))to those services provided to any other area of the Town on a uniform and non-discriminatory basis (collectively, the “Municipal Services”). The Parties acknowledge the To wn provides public transit services as part of the Municipal Services based on a variety of factors including demand, the To wn’s transit planning policies, funding availability and similar considerations and, accordingly, does not provide public transit service within all areas of the To wn or make a representation or commitment regarding when and to what extent the Town may provide public transit service within the Property. As such, the To wn shall not deny any Development Application based on a lack of transit services or the inability of the To wn to provide transit services, and no approval of a Development Application shall be conditioned upon any party or entity other than the To wn providing transit services. The Town’s receipt of Municipal Payments during the Term as generally described in Section 6.5, together with the additional revenues described in Section 6.16, is in consideration of the Town’s providing Municipal Services. The Municipal Payments and additional revenues described in Section6.16 shall be conclusively deemed and construed to fully offset the Town’s cost of performing its Municipal Services obligations pursuant to this Development Agreement, such that no Party shall assert or claim that such Municipal Payments revenues are either inadequate or excessive, no Party shall assert or claim any right to an increase in or a reduction of such Municipal Payments revenues, and the Town shall not withhold, suspend or terminate the provision of any of the Town’s Municipal Services obligations pursuant to this Development Agreement. After expiration of the Term, the Town shall continue to provide Municipal Services in accordance with the Town’s general obligation to provide municipal services throughout the Town. 4.2 Town Obligations. Without limiting or negating any Town obligation set forth in another Article of this Development Agreement or narrowing by implication the Town’s obligations pursuant to Section 4.1, the Town shall perform the following obligations: (a)Tax Credit. As contemplated by the Original Agreement and codified at Sections 3.08.035, 3.12.065 and 3.28.075 of the Municipal Code (as in effect on the Execution Date), the To wn has established the Ta x Credit. During the Te rm, the To wn shall not take any action to modify, reduce, terminate, suspend or otherwise prevent the Ta x Credit from attaching to Ta xable Tr ansactions occurring within the Project, including but not limited to enacting any amendment to Sections 3.08.035, 3.12.065 and/or 3.28.075, or to any other provision of the Municipal Code, that would have such effect. (b)Cooperation in Implementation of Add-On RSF. As more particularly set forth in Section 6.5(d), the Town will cooperate with the PICs to effect the implementation of the Add-On RSF with respect to existing and future retail businesses within the Project, including but not limited to: (i) assisting in the coordination and implementation of reporting forms; EXHIBIT A to Heil Memorandum dated June 6, 2013 29 1001679.22 FINAL (ii)participating with the PICs in meetings with representatives of such retailers regarding the nature and purpose of the Add-On RSF; and (iii) such other steps and actions as the PICs may request from time to time. (c)Assumption of TCMD Maintenance Obligations. From and after the Effective Date, the To wn shall assume and be responsible for the performance of all of TCMD’s current and future maintenance, repair and replacement obligations with respect to Public Improvements (including but not limited to all Dedicated and Accepted public road right-of-way landscaping, Nottingham Dam, Nottingham-Puder Ditch, irrigation systems and water wells, the wet well located within PA -F, tree replacements and, subject to Section 3.3(b)(iv), snow removal). The To wn shall have sole discretion to determine the appropriate maintenance of Nottingham Dam, which shall include but is not limited to maintenance, repair, replacement, improvement, expansion, decommission, removal and deferral of any activity. Notwithstanding the forgoing, TCMD shall retain responsibility to cause the following obligations to be performed utilizing District Revenues available to it for such purposes: (i)Parking Structures. Maintenance of the existing Traer Creek Plaza public parking structure located within Lot 2, Final Plat, The Village (at Avon) Filing 1, Recorded on May 8, 2002, at Reception No. 795007 (identified as “Unit 1” or the “Parking Unit” in the Condo Plat Map Recorded on the Effective Date)and, except to the extent TCMD and the Town otherwise agree in writing, any additional public parking facilities or structures that TCMD or another District may construct in the future. (ii)Lot 2 Internal Landscaping. Any landscaping maintenance obligation with respect to Lot 2, Final Plat, The Village (at Avon) Filing 1, Recorded on May 8, 2002, at Reception No.795007 to the extent arising from TCMD’s status as owner of the Traer Creek Plaza public parking structure located therein (identified as “Unit 1” or the “Parking Unit” in the Condo Plat Map Recorded on the Effective Date). (iii)Tract E. Maintenance of the park and flag pole located within Tract E, Final Plat, The Village (at Avon) Filing 1, Recorded on May 8, 2002, at Reception No.795007. (d)Asphalt Overlays. Subject to the terms and conditions of the Asphalt Overlay Agreement and Section6.6, the To wn shall perform asphalt overlays for all Dedicated public roads located in the Project subject to the following terms and conditions: (i)Prior to Te rmination of Joint Funding. Until the shared funding contributions terminate pursuant to Section 6.6(b): (A)The Town shall commence overlays on Dedicated roads within the Project at such time as jointly determined necessary by the Town and TCMD. (B)As more particularly set forth in the Asphalt Overlay Agreement (including but not limited to Section 5(b) thereof regarding deemed consent under certain facts), TCMD and the Town each must provide written approval prior to the release of any funds from the Asphalt Overlay Account. EXHIBIT A to Heil Memorandum dated June 6, 2013 30 1001679.22 FINAL (C)The To wn’s obligation to perform asphalt overlays shall be limited to the amount accumulated within the Asphalt Overlay A ccount. (D)The To wn’s obligation to deposit funds into the Asphalt Overlay Account shall be limited to the portion of the Municipal Payments the Add-On RSF Collection Agent deposits on behalf of the To wn pursuant to Section 5.2(c), and the To wn shall have no obligation to contribute funds from any other source. (ii)After Te rmination of Joint Funding. From and after the date upon which the shared funding contributions terminate pursuant to Section 6.6(b): (A)The Town shall be solely responsible for all costs of asphalt overlays for Dedicated public roads in the Project. (B)The Town shall schedule and perform such asphalt overlays in a manner materially consistent and commensurate with other public roads in the To wn having similar characteristics in terms of traffic volume, age of road surface and similar factors. (e)Easement for Access to Planning Area I. As of the Execution Date, the Town has acquired fee title to the Forest Service Village Parcel. The Town agrees and covenants thatthe Town shall provide consent,as the ownerof the Forest Service Village Parcel,to EMD (or to the then-Landowner of Planning Area I) to submit a subdivision application for the Forest Service Village Parcel to plat and dedicate a public road right-of-way and to construct a public road in accordance with the applicable procedures and standards set forth in the PUD Guide and the Municipal Code. The Town has executed the Covenant and Temporary Easement Agreement in the form set forth in Exhibit C and shall cause the Covenant and Temporary Easement Agreement to be Recorded on the Effective Date (or as soon thereafter as practicable)and prior to the Town Recording any conservation easement or any other real estate instrument which may limit the ability to plat a public road right-of-way or construct a public road. The Covenant and Temporary Easement Agreement shall run with the land and any conveyance or grant by the Town of any interest in the Forest Service Village Parcel shall be expressly subject to the Covenant and Temporary Easement Agreement. The Town, as owner of the Forest Service Village Parcel, shall cooperate with EMD (or the then-Landowner of Planning Area I) with respect to establishing the alignment and platting of the right-of-way for the public road over the Forest Service Village Parcel. Construction, Dedication and Acceptance of the public road over the Forest Service Village Parcel shall be pursuant to the pertinent Public Improvement Agreement and the Covenant and Temporary Easement Agreement shall terminate upon Final Acceptance of the pertinent Public Improvements on the Forest Service Village Parcel. Should the Town not have acquired the Forest Service Village Parcel prior to such time as access is needed to commence the process for constructing an access road to Planning Area I, the Town agrees to acknowledge, confirm and represent to the owner of the Forest Service Village Parcel that the PUD Master Plan approved by the Town depicts a road crossing the Forest Service Village Parcel to provide access to Planning Area I. EXHIBIT A to Heil Memorandum dated June 6, 2013 31 1001679.22 FINAL (f)Service Plans. The Town has adopted Ordinance No.12-10 which amends Chapter 18 of the Municipal Code to state that certain that provisions concerning material modification do not apply to TCMD and VMD. During the Term, the Town shall maintain the foregoing amendment to Chapter 18 of the Municipal Code in effect without modification, shall not take an y action to explicitly or implicitly repeal, reinstate, alter or re- impose those provisions of Chapter 18 of the Municipal Code from which TCMD and VMD were exempted by operation of Ordinance No.12-10,and shall not impose other regulations which would have the effect of establishing definitions, requirements or procedures concerning the determination of material modification as applied to TCMD and VMD that are inconsistent with, more rigorous than or otherwise expand the scope of such determination as set forth in Colorado statues as may be amended from time to time. (g)Urban Renewal. If it is determined that Lot 1 will be included within an urban renewal area and if the Town seeks consent of the Master Developer and Landowner(s) in accordance with Section6.7, the Town shall, utilizing all authority legally available toit as a home rule municipality under Colorado law, take such steps as may be necessary to assure compliance with the conditions set forth in Section6.7. 4.3 AURA Obligations. If it is determined that Lot 1 will be included within an urban renewal area and if the Town seeks consent of the Master Developer and Landowner(s) in accordance with Section6.7, AURA shall take such steps as may be necessary to assure compliance with the conditions set forth in Section 6.7 and the related obligations set forth in Section6.17. ARTICLE5 OBLIGATIONS OF DISTRICTS, PICS, MASTER DEVELOPER, EMD AND DEVELOPER AFFILIATES 5.1 Obligations of TCMD. Without limiting or negating any TCMD obligation set forth in another Article of this Development Agreement, TCMD shall perform the following obligations: (a)Asphalt Overlay. TCMD shall perform its obligations with respect to funding of the Asphalt Overlay Account in accordance with the terms and conditions of Section 6.6(a)(iii). (b)Notice of Financings. TCMD shall give to the Town forty-five (45) days’ prior written notice of its intent to finance and/or construct any Capital Projects utilizing Supplemental Bonds. (c)Add-On RSF. TCMD shall cooperate with the PICs to the extent reasonably necessary and appropriate in the imposition and administration of the Add-On RSF. TCMD will cooperate with the PICs to effect the implementation of the Add-On RSF with respect to existing and future retail businesses within the Project, including but not limited to: (i)assisting in the coordination and implementation of reporting forms; (ii)participating in meetings with representatives of such retailers regarding the nature and purpose of the Add-On RSF; and (iii)such other steps and actions as the PICs may request from time to time. During EXHIBIT A to Heil Memorandum dated June 6, 2013 32 1001679.22 FINAL the Term and provided the Town is performing its obligation to maintain the Tax Credit in effect, TCMD shall not take any action to modify, reduce, terminate, suspend or otherwise prevent the Add-On RSF from attaching to applicable retail sales transactions occurring within the Project. (d)Utilization of Credit PIF Revenues. During the Term, TCMD shall utilize Credit PIF Revenues only for the Permitted Uses as set forth in Section 6.2(a)and shall apply Credit PIF Revenues in the priority set forth in Sections 6.9(b),6.9(c)and 6.9(d). (e)Cooperation and Compliance. TCMD shall provide its reasonable cooperation and compliance with applicable legal requirements to allow a lawfully eligible candidate designated at the option of BNP to be elected or appointed as a director of TCMD. 5.2 Obligations of PICs. (a)Credit PIF. During the Term, the PICs shall take all legally available actions to maintain the Credit PIF in effect and shall take no action to modify, terminate, suspend or otherwise interfere with TCMD’s right to receive and utilize the Credit PIF Revenues. (b)Add-On RSF. Concurrently with the Effective Date, the board of directors of each PIC has caused the Recording of an amendment to the respective PIF Covenants having the effect of imposing the Add-On RSF. In order to effectuate the Parties’ intent regarding the collection and remittance of the Add-On RSF Revenues, each PIC, the Town and the Add-On RSF Collection Agent have executed and legally entered into an Add-On RSF Collection Services Agreement. During the Term and provided the Town is performing its obligation to maintain the Tax Credit in effect, each PIC shall: (i)Collection of Add-On RSF. Pursuant to its authority under and in accordance with the terms and conditions of the PIF Covenants,take all legally available actions to maintain the Credit PIF in effect,continue to impose the Add-On RSF and undertake to cause the collection and remittance of the Add-On RSF Revenues by or to the Add-On RSF Collection Agent for disposition in accordance with the applicable Add- On RSF Collection Services Agreement and the terms and conditions of this Development Agreement. (ii)Remittance of Municipal Payments. (A)Undertake to cause the Add-On RSF Collection Agent to remit to the Town all Municipal Payments as and when due pursuant to the terms and conditions of the applicable Add-On RSF Collection Services Agreement and this Development Agreement. (B)Take no action to modify, terminate, suspend or otherwise interfere with the Town’s right to receive and utilize the Municipal Payments in the manner and for the purposes authorized pursuant to this Development Agreement and the applicable Add-On RSF Collection Services Agreement. (c)Asphalt Overlay Account. As more particularly set forth in the Add-On RSF Collection Services Agreement, the PICs (jointly with the Town) shall cause the Add-On EXHIBIT A to Heil Memorandum dated June 6, 2013 33 1001679.22 FINAL RSF Collection Agent to deposit the designated portion of the Municipal Payments into the Asphalt Overlay Account on behalf of the Town as follows: (i)Initial Five Ye ars. Commencing in 2013 and continuing through and including November 1, 2017, the Add-On RSF Collection Agent shall deposit into the Asphalt Overlay Account the first $120,000.00 (ONE HUNDRED TWENTY THOUSAND DOLLARS) of Municipal Payments actually received by the Add-On RSF Collection Agent. (ii)Subsequent Ye ars. Commencing in 2018 and continuing through and including the date on which termination occurs pursuant to Section 6.6(b), the Add- On RSF Collection Agent shall deposit into the Asphalt Overlay Account the first $75,000.00 SEVENTY FIVE THOUSAND DOLLARS) of Municipal Payments actually received by the Add-On RSF Collection Agent. (iii)Post-Te rmination. From and after the date on which termination occurs pursuant to Section 6.6(b), the PICs (jointly with the To wn) shall cause the Add- On RSF Collection Agent to remit all Municipal Payments directly to the To wn as otherwise provided in the Add-On RSF Collection Services Agreement and in accordance with the terms and conditions of Section 5.2(b). 5.3 Obligations of Master Developer. Without limiting or negating any Master Developer obligation set forth in another Article of this Development Agreement, Master Developer shall perform the following obligations: (a)Asphalt Overlay. Master Developer shall perform its obligations with respect to funding of the Asphalt Overlay Account in accordance with the terms and conditions of Section 6.6(a)(iv). (b)Conveyance of Park Site in Planning AreasI, J and/or K. Pursuant to Section 3.7(d), Master Developer shall cause the then-current Landowner to convey to the Town such sites within Planning Areas I, J and/or K as may be determined necessary or desirable in satisfying such obligation. (c)Add-On RSF. Master Developer shall cooperate with the PICs to the extent reasonably necessary and appropriate in the imposition and administration of the Add-On RSF. Master Developer will cooperate with the PICs to effect the implementation of the Add-On RSF with respect to existing retail businesses within the Project, including but not limited to assisting in the coordination and implementation of reporting forms, meetings with representatives of such retailers regarding the nature and purpose of the Add-On RSF and such other steps and actions as the PICs may request from time to time. During the Te rm and provided the Town is performing its obligation to maintain the Tax Credit in effect, Master Developer shall take all legally available action to cause the PICs to impose, collect and remit the Add-On RSF as required pursuant to this Development Agreement, and Master Developer shall not take any action to modify, reduce, terminate, suspend or otherwise prevent the Add-On RSF from attaching to applicable retail sales transactions occurring within the Project. EXHIBIT A to Heil Memorandum dated June 6, 2013 34 1001679.22 FINAL (d)Urban Renewal. If it is determined pursuant to Section 6.7 that Lot 1 will be included within one or more urban renewal areas, Master Developer shall take such steps, and cause Developer Affiliates to take such steps, as may reasonably be necessary to provide timely and full cooperation in establishing such urban renewal area(s) and related urban renewal plan(s), subject to full compliance with the conditions set forth in Section 6.7. The foregoing shall not be construed to constrain any Landowner from pursuing any property tax appeal proceeding or change in tax classification of any portion of the Property, nor shall it be construed to require any Landowner to cause or consent to a change in tax classification of any portion of the Property. (e)Property Interest. Concurrently with the Effective Date, Master Developer has caused the execution and delivery of an instrument conveying to BNP’s designee a property interest sufficient to qualify such BNP designee for election or appointment to hold the office of director of TCMD. Pursuant to this Section 5.3(e)and the terms and conditions of such instrument (and any replacement instrument executed to accommodate a BNP replacement designee or any replacement property interest), Master Developer shall have an ongoing obligation to cause such BNP designee (or any replacement designee) to hold a sufficient property interest until such time as there are no outstanding obligations to BNP under the TCMD Reissue Documents or any subsequent reissue or refunding of such bonds. (f)Landscaping/Visual Mitigation. Master Developer shall perform its obligations with respect to landscaping and visual mitigation as set forth in Section 3.11. 5.4 Obligations of EMD. Without limiting or negating any EMD obligation set forth in another Article of this Development Agreement, EMD shall perform the following obligations: (a)Conveyance of School Site in Planning Area I. Pursuant to Section 3.7(a)(i)(B), EMD or the then-current Landowner shall convey to the Town an approximately 3.764 acre Site within Planning Area I for school purposes. (b)Potential Combination of Park and School Sites. EMD or the then-current Landowner shall undertake the efforts contemplated pursuant to Section 3.7(a)(iv)(B)regarding a potential consolidated school/park Site within Planning Area I. (c)Conveyance of OS Tracts. Pursuant to Section 3.7(c), EMD or the then-current Landowner shall convey to the Town the parcels designated in the PUD Master Plan as OS-5 and OS-6. (d)Conveyance of Park Site in Planning Area I. Pursuant to Section 3.7(d), EMD or the then-current Landowner shall convey to the Town such sites within Planning Area I as may be determined necessary or desirable in satisfying such obligation. 5.5 Obligation of TC-RPRegarding Add-On RSF. Concurrently with the Effective Date, TC-RP, in its capacity as the “declarant” with respect to the PIF Covenants has caused to be recorded amendments to the PIF Covenants to implement the Add-On RSF. During the Term and provided the Town is performing its obligation to maintain the Tax Credit in effect, TC-RP shall take all legally available action to cause the PICs to impose, collect and remit the Add-On PIF as required pursuant to this Development Agreement, and TC-RP shall not take any action to EXHIBIT A to Heil Memorandum dated June 6, 2013 35 1001679.22 FINAL modify, reduce, terminate, suspend or otherwise prevent the Add-On RSF from attaching to applicable retail sales transactions occurring within the Project. ARTICLE6 FINANCING PLAN 6.1 General. The Credit PIF is imposed to generate Credit PIF Revenues for TCMD to finance and construct Capital Projects, to repay the District Debts and to be utilized for other Permitted Uses. The Tax Credit is granted in consideration of the above-stated uses of the Credit PIF. (a)Credit PIF and Town Tax Credit. The PIF Covenants impose the Credit PIF on Taxable Transactions, and the Town has enacted the corresponding Tax Credit. The PICs have pledged the Credit PIF Revenues to TCMD and the Credit PIF Collection Agent collects the Credit PIF Revenues on TCMD’s behalf pursuant to the Credit PIF Collection Services Agreement. (b)Expiration of Term; Termination of Town Tax Credit. Except as otherwise provided in Section 6.1(d), TCMD’s right to receive Credit PIF Revenues, the Town’s right to receive Municipal Payments, and the Town’s obligation to maintain the Tax Credit in effect each shall terminate concurrently with expiration of the Term. Upon expiration of the Term and termination of the Town’s Tax Credit, the Town shall be entitled to impose, receive and retain all Town taxes applicable to Taxable Transactions. (c)Termination of Right to Municipal Payments. The Town’s right to receive the Municipal Payments shall terminate concurrently with expiration of the Term and the termination of the Town’s obligation to maintain the Tax Credit as set forth in Section 6.1(b). If the Declarant (as defined in the PIF Covenants) elects to continue the imposition of the Add-On RSF, in whole or in part, after discontinuation of the PICs’ obligation to remit the Municipal Payments to the Town, then the Add-On RSF Revenues may be used for any purpose permitted under the PIF Covenants. Notwithstanding expiration of the Term, the Town shall be entitled to receive Municipal Payments amounts resulting from application of the Add-On RSF to Taxable Transactions that occurred prior to the date upon which expiration of the Term occurs, such amounts to be collected and remitted in accordance with the terms and conditions of the Add-On RSF Collection Services Agreement. Notwithstanding that the Term shall expire upon full payment of the District Debts, the terms and conditions of this Section 6.1(c)shall survive the expiration of the Term. (d)Continuation of Town Tax Credit. If, after the Town’s obligation to maintain the Tax Credit in effect has been satisfied the Town delivers written notice to the PICs that the Town is precluded from terminating the Tax Credit, and the Town has in good faith pursued and failed to accomplish legally available alternatives for terminating the Tax Credit, then for so long as the Tax Credit remains in effect the PICs shall continue to impose the Credit PIF and shall remit to the Town on a monthly basis all Credit PIF Revenues actually collected, less the costs and expenses incurred by the PICs in connection with collecting such Credit PIF Revenues. In such event, the Town shall have no right or interest in any Add-On RSF Revenues, and neither the PICs, TCMD nor Master Developer shall have any obligation to cause any EXHIBIT A to Heil Memorandum dated June 6, 2013 36 1001679.22 FINAL Municipal Payments to be remitted to the Town. The terms of this Section 6.1(d), if applicable, shall survive termination of this Development Agreement until such time as the Town terminates the Tax Credit. 6.2 Tax Credit; Use of Credit PIF Revenues. As contemplated by the Original Agreement and to partially offset the impact of the Credit PIF, the To wn has established the Ta x Credit in an amount corresponding to the Credit PIF Revenues derived from imposition of the Credit PIF to each Ta xable Tr ansaction. During the Te rm, the To wn shall maintain the Ta x Credit in effect and the Credit PIF Revenues shall be utilized for the Permitted Uses. In implementation of the Settlement Te rm Sheet, the following terms specify uses of Credit PIF Revenues: (a)Permitted Uses. During the Term, TCMD may utilize Credit PIF Revenues to pay the Cap Amounts and the Non-Cap Amounts (collectively, the “Permitted Uses”) and for no other purpose. (b)Credit PIF Cap; Cap Amounts. Subject to reduction by not more than $10,000,000 (Ten Million Dollars) in accordance with Section6.7 and as otherwise set forth below with respect to unfunded Supplemental Bond capacity, the amount of the following obligations to which Credit PIF Revenues can be pledged is $96,000,000 (NINETY SIX MILLION DOLLARS)(the “Credit PIF Cap”). Only Net Proceeds shall be counted against the Credit PIF Cap (as qualified in clause (i) below). If,as of January 2, 2040, the Net Proceeds of all Supplemental Bonds issued on or before January 1, 2040, are less than the otherwise unused portion of the Credit PIF Cap, the Credit PIF Cap will be reduced in equal amount to the unused Credit PIF Cap. The following (collectively, the “Cap Amounts”) shall count against the Credit PIF Cap: (i)$52,100,000 (FIFTY TWO MILLION ONE HUNDRED THOUSAND DOLLARS), which is the original amount of the TCMD bonds refunded pursuant to the TCMD Bond Reissue. (ii)The Net Proceeds of the Tank Project Bonds in the approximate amount of $9,000,000 (the precise amount to be established at the time the Water Tank Bonds are issued). (iii)The Net Proceedsof the Past Developer Advances in the amount stated in Exhibit E. (iv)To the extent issued on or before January 1, 2040,the Net Proceeds of Supplemental Bonds (including Master Developer contributions to the Asphalt Overlay Account only to the extent reimbursable from TCMD using Credit PIF Revenues). (v)Capital Project Costs that TCMD funds directl y from Credit PIF Revenues budgeted and appropriated for such purpose. (c)Non-Cap Amounts. The following costs (collectively, the “Non-Cap Amounts”) are payable from Credit PIF Revenues but do not count against the Credit PIF Cap: EXHIBIT A to Heil Memorandum dated June 6, 2013 37 1001679.22 FINAL (i)Payments of interest and other Bond Requirements incurred with respect to Cap Amounts and any principal of bond obligations included as District Debts which is in excess of the Cap Amounts. (ii)Except as otherwise provided in Section 6.12, the principal amount and Bond Requirements of any refunding bonds or other debt instruments issued to repay, refund and/or defease, in whole or in part,the principal and Bond Requirements of the obligations described in subsections (i), (ii), (iii) and (iv) of Section 6.2(b). (iii)The Avon Receivable and any refunding thereof. (iv)The principal amount and interest of Town cure payments, if an y, pursuant to Section6.13, and any refunding thereof. (v)Deferred Amortization, and any refunding thereof. (vi)TCMD’s contributions to the Asphalt Overlay Account. (vii)The Base O&M Costs. 6.3 Assessment of Public Improvement Fees.Pursuant to the PIF Covenants and as contemplated in the Original Agreement, the PICs have imposed and shall continue for the duration of the Term to impose the Credit PIF and collect the Credit PIF Revenues in accordance with the terms and conditions of the PIF Covenants and applicable provisions of this Development Agreement. Pursuant to the PIF Covenants and in implementation of the Settlement Term Sheet, the PICs have imposed and shall continue for the duration of the Term to impose the Add-On RSF and to collect the Add-On RSF Revenues in accordance with the terms and conditions of the PIF Covenants and applicable provisions of this Development Agreement. (a)Town Real Estate Transfer Tax. In full settlement of any and all claims that could be raised or asserted regarding whether the To wn’s real estate transfer tax and the PICs’ Real Estate Tr ansfer Fee apply to the leases pursuant to which Home Depot and Wal-Mart occup y their present locations within the Project as of the Execution Date or to apply to any extension(s) of such leases: (i)Existing Wal-Mart and Home Depot Leases. The Town’s real estate transfer tax shall not be construed to apply to the leases pursuant to which Home Depot and Wal-Mart occupy their present locations within the Project as of the Execution Date or to apply to the election of lessee to exercise its rights to extend such leases in accordance with the terms of the respective original lease documents as in effect on the Execution Date. (ii)Waiver of Claims. Accordingly, the Town hereby fully and irrevocably waives any and all claim or right to impose its real estate transfer tax, and the Commercial PIC hereby fully and irrevocably waives any and all claim or right to impose the Real Estate Transfer Fee, upon the existing leases (together with extensions and options to extend thereunder) for Wal-Mart and Home Depot. EXHIBIT A to Heil Memorandum dated June 6, 2013 38 1001679.22 FINAL (iii)Applicability of Municipal Code. Contemporaneously with the Execution Date, the Town has adopted Ordinance No.12-11, pursuant to which it has, effective on the Effective Date,amended Chapter 3.12 of the Municipal Code to clarify various matters relating to the circumstances under which a long term lease constitutes a Taxable Transaction for purposes of triggering an obligation to pay the Town’s real estate transfer tax. During the Term, imposition and collection of the Real Estate Transfer Fee shall be administered based Chapter 3.12 of the Municipal Code as amended by Ordinance No.12-11 (in the form and in substance as adopted contemporaneously with the Execution Date) and in effect on the Effective Date. Transactions subject to the Town’s real estate transfer tax shall be subject to the Real Estate Transfer Fee, and payment of the Real Estate Transfer Fee shall result in the automatic and simultaneous application of the Tax Credit. The Real Estate Transfer Fee shall not be construed to be part of the Taxable Transaction, and the Town shall not apply its real estate transfer tax to the Real Estate Transfer Fee. If, notwithstanding the foregoing, the Town is legally required pursuant to state statute to impose and collect its Real Estate Transfer Tax on the Real Estate Transfer Fee during the Term, the Town shall remit to TCMD, subject to annual appropriation to the extent required by Section 20 of Article X of the Colorado Constitution,100% of the Real Estate Transfer Tax revenues actually collected. During the Term, no amendment to Ordinance No.12-11 or to Chapter 3.12 of the Municipal Code shall apply to real estate transactions occurring within the Property except with the prior written consent of Master Developer. (iv)Applicability to Lease Amendments. The exemption and waivers of applicability of the Town’s real estate transfer tax to long term leases executed prior to the Execution Date also shall apply to any amendment to a long term lease that is executed after the Execution Date that does not have the effect of extending the term of such lease. With respect only to amendments or modifications of such existing leases that have the effect of extending the term for a period in excess of 25 years or adding new options to extend the term for a period in excess of 25 ye ars: (A)the Town’s real estate transfer tax shall apply to such 25 year or greater extension period to the extent required by application of Ordinance No.12-11; (B)the consideration upon which the Town’s real estate transfer tax calculation is based shall be based only upon the lease payments (exclusive of common area maintenance, taxes, insurance and similar costs)for the period of the extension greater than 25 years (i.e., the original term of such lease, inclusive of all extension rights thereunder, shall be disregarded such that there is no “look back” beyond the date of the extension which triggers the real estate transfer tax obligation); (C)the Tax Credit shall apply to such lease extensions with respect to which the real estate transfer tax otherwise would apply such that the PICs shall impose and collect the Real Estate Transfer Fee and the Town shall collect no real estate transfer tax as otherwise provided in this Agreement, subject to Section6.18; and (D)the Town and the PICs shall coordinate in advance to establish an agreed upon methodology for calculating the amount and timing of Real Estate Transfer Fee payments due with respect to lease term extensions with respect to which the Town’s real estate transfer tax otherwise would apply. (b)Internet, Mail Order and Similar Remote Taxable Transactions. The Parties intend that retail sales transactions effected remotely should be subject to the Credit PIF EXHIBIT A to Heil Memorandum dated June 6, 2013 39 1001679.22 FINAL and the Tax Credit whether such remote transactions are effected via the internet, by mail order or otherwise delivered into the Project such that the transaction is a Taxable Transaction. However, due to logistical and practical impediments to causing the Credit PIF and the Tax Credit to attach to such transactions or otherwise tracking and allocating such revenues, it has not heretofore been possible to effect the Financing Plan with respect to such remote transactions. The Parties further recognize that national and state laws and business practices of retailers regarding imposition of state and local sales tax are evolving and soon may require retailers to identify and report the address of the point of purchase for internet based retail sales. The Town agrees that if and when address information of the point of sale for retailers is available to the Town such that the Town can determine the internet based retail sales specifically attributable to points of purchase within the Village (at Avon) for which sales taxes are imposed and collected (or another mechanism is identified), the Town shall use best efforts to cooperate with the PICs to impose the Retail Sales Fee and Add-On RSF if possible or,in the alternative if imposition of such fees is not possible, the Town shall cooperate with the PICs to impose, collect and remit the Town’s retail sales tax to the PICs in accordance with Section 6.18. If the Parties identify a method of implementing the intent of this Section 6.3(b), such method may be implemented without the requirement of an amendment to this Development Agreement. 6.4 Rate of Public Improvement Fees. In implementation of the Settlement Term Sheet, the rates of the Public Improvement Fees shall be established as set forth in the PIF Covenants, which require such rates to be set from time to time during the Term at: (a)Credit PIF Rates: (i)Retail Sales Fee. Except to the extent of an increased sales tax rate approved by the To wn for a specific project as set forth in Section 6.4(b)(ii), the same rate as the corresponding To wn sales tax rate as in effect from time to time. As of the Execution Date, the To wn sales tax and the Retail Sales Fee each are set at the rate of 4.0%. (ii)Real Estate Tr ansfer Fee. The same rate as the corresponding To wn real estate transfer tax rate as in effect from time to time. As of the Execution Date, the Town real estate transfer tax and the Real Estate Transfer Fee each are set at the rate of 2.0%. (iii)Accommodations/Lodging Fee. Except to the extent of an increased accommodations/lodging tax rate approved by the To wn for a specific project as set forth in Section 6.4(b)(ii), the same rate as the corresponding To wn accommodations/lodging tax rate as in effect from time to time. As of the Execution Date, the Town accommodations/lodging tax and the Accommodations/Lodging Fee each are set at the rate of 4.0%. (iv)Use Tax. If the Town imposes any use tax on building materials during the Term that is not in effect as of the Execution Date, such use tax shall be automatically incorporated into the definition of Taxable Transaction set forth in Exhibit F without the need of any formal action by the Town. The PICs may establish and impose a building materials use fee, which shall be included in the definition of EXHIBIT A to Heil Memorandum dated June 6, 2013 40 1001679.22 FINAL Credit PIF, corresponding to such use tax and applying to the same transactions and at the same rate as such use tax. The Town may amend its Municipal Code to reflect the automatic Tax Credit for use tax as set forth in this sub-section, but such an amendment shall not be required to implement the automatic Tax Credit. The Parties and an y party obligated to pay, collect or remit such use tax shall be entitled to rely and act upon the Tax Credit being applied to such transactions in order to offset the effect of the Credit PIF in the same manner and to the same extent as the Tax Credit applies to retail sales transactions, real estate transfer transactions and accommodations/lodging transactions. Prior to adopting any such use tax, the Town shall coordinate with the PICs and other Parties regarding the implementation of any such use taxes and application of the Tax Credit thereto. The Credit PIF imposed and collected on such Taxable Transactions shall not be deemed to be part of such Taxable Transaction and shall not be subject to application of the corresponding Town use tax. (b)Add-On RSF Rate. As of the Effective Date, the PICs have set the Add-On RSF rate at 0.75%, to be applied only with respect to retail sales transactions that are Ta xable Tr ansactions. The net proceeds (i.e., after payment of the fees to the Add-On RSF Collection Agent pursuant to the Add-On RSF Collection Services Agreement and application of any other adjustments to such revenues as set forth in this Development Agreement and/or the Add-On PIF Collection Services Agreement) of the Add-On RSF Revenues resulting from imposition of the foregoing 0.75% rate to retail sales transactions that are Ta xable Tr ansactions shall constitute the Municipal Payments. (i)Increase in Town Sales Tax Rate. If the Town increases the Town’s retail sales tax rate above 4.0 % during any period for which Municipal Payments are to be remitted to the Town, the portion of the Add-On RSF Revenues which will be construed to be Municipal Payments shall be reduced in the same degree as any Town sales tax rate increase above 4.0%. For example, if the Town increases its retail sales tax rate by 0.25% (from 4.0% to 4.25%), the portion of the Add-On RSF Revenues construed to be Municipal Payments shall be that amount equivalent to a reduction of 0.25% in the Add-On RSF rate (i.e., the revenue realized from a rate of 0.50% rather than the revenue realized from a rate of 0.75%). As of the Effective Date, the PICs have not imposed an Add-On PIF on transactions other than retail sales transactions that are Taxable Transactions or set the Add-On PIF at a rate higher than the rate of the Add-On RSF required pursuant to this Section 6.4(b). (ii)Exception for “Project-Specific” Town Tax Rate Increase. Notwithstanding an yt hing set forth in Sections 6.4(a)(i), 6.4(a)(iii)and 6.4(b)(i)to the contrary and subject to the terms and conditions set forth in this Section 6.4(b)(ii), the Town shall be entitled to retain the revenues resulting from an increase in the Town’s 4.0% sales tax rate or 4.0% accommodations tax rate as in effect on the Execution Date to the extent: (A)such tax rate increase is duly adopted by the Town after the Effective Date and applies on a uniform basis throughout all areas of the Town; (B) the proceeds of such tax rate increase are specifically dedicated and pledged solely to a specific project identified in connection with such adoption;(C) the financing period for such specific project does not exceed 30 ye ars;and (D) for the purposes of sales tax and not accommodations tax such increased tax rate does not exceed 0.75%. For purposes of the EXHIBIT A to Heil Memorandum dated June 6, 2013 41 1001679.22 FINAL foregoing, a “specific project” shall mean only a specific municipal capital project (by way of example, construction of a municipal building; construction of a library; acquisition of specifically identified parcels of real property that are being acquired by the Town for open space, park or construction of a specific municipal capital project to be constructed on such property; or similar purposes), and expressly excludes tax rate increases for the purpose of providing ongoing municipal services (by way of example, to fund ongoing provision of transit services, trash services or similar open-ended municipal services funding obligations) or for general fund purposes. With respect to tax rate increases for a specific project as set forth above, the Tax Credit shall not apply to such increased rate and the corresponding Credit PIF rate shall not be raised to match the increased tax rate, but the Add-On RSF rate shall be reduced correspondingl y to the increased tax rate as set forth in Section 6.4(b)(i)with respect to retail sales transactions. With respect to an y Town sales tax rate increases that are not for a specific project, the terms and conditions of Section 6.4(b)(i)shall apply. (iii)Increased Add-On PIF Rate. To the extent the PICs at any time after the Effective Date impose an Add-On PIF on transactions other than retail sales transactions that are Taxable Transactions and/or at a rate higher than the Add-On RSF rate, the resulting Add-On PIF Revenues shall not be construed to constitute Add-On RSF Revenues or Municipal Payments. Any Add-On PIF Revenues that do not constitute Municipal Payments pursuant to this Section 6.4(b)may be utilized as set forth in Section 6.5(b)(ii). 6.5 Add-On PIF. In implementation of the Settlement Term Sheet, and in consideration of the Town’s performance of its obligation to provide Municipal Services in accordance with Section4.1 and the Town’s performance of its obligations pursuant to Section4.2 and this Article 6: (a)Collection and Remittance. During the Term, the PICs shall collect, or cause the Add-On RSF Collection Agent to collect, the Add-On RSF Revenues. In accordance with the terms and conditions of the Add-On RSF Collection Services Agreement, the Add-On RSF Collection Agent shall: (i)Separate Account. Maintain Add-On RSF Revenues in a separate account from Credit PIF Revenues. (ii)Remittance of Municipal Payments. Calculate that portion of Add- On RSF Revenues received during each calendar month which comprises Municipal Payments, and after calculating that portion of the Municipal Payments required to be deposited into the Asphalt Overlay A ccount: (A)Deposit the required amount of Municipal Payments into the Asphalt Overlay A ccount; and (B)Remit any remaining Municipal Payments to the To wn. EXHIBIT A to Heil Memorandum dated June 6, 2013 42 1001679.22 FINAL (b)Uses. (i)Municipal Payments. During the Term, the Municipal Payments shall be utilized first to satisfy the Town’s Asphalt Overlay Account funding obligations as set forth in Section 6.6 and thereafter may be utilized by the Town for any lawful purpose. (ii)Additional Add-On PIF Revenues. To the extent the PICs continue to impose and collect the Add-On RSF on retail sales transactions that are Taxable Transactions after expiration of the Term and/or there are from time to time during the Term Add-On PIF Revenues, including any Add-On RSF Revenues, in excess of the Municipal Payments (for example, due to a reduction in such Municipal Payments pursuant to Section 6.4(b)or due to imposition of an Add-On PIF on transactions other than retail sales that are Taxable Transactions), the PICs may retain and utilize such additional Add-On PIF Revenues for any lawful purpose permitted under the terms and conditions of the PIF Covenants. The Town shall have no right or claim to any such Add-On PIF Revenues, including any Add-On RSF Revenues, that do not constitute Municipal Payments. (c)Duration. The Town’s right to receive the Municipal Payments generated through the PICs’ imposition of the Add-On RSF shall terminate concurrently with the termination of the Town’s obligation to maintain the Tax Credit as set forth in Section 6.1(c)of this Development Agreement. (d)Implementation Period. From and after the Execution Date, the Town will cooperate with the PICs, the Add-On RSF Collection Agent, Master Developer and TC-RP (as “declarant” under the PIF Covenants) in implementing the Add-On RSF with existing retailers within the Project, including but not limited to attending meetings with such retailers upon the request of the PICs and Master Developer (and not independently), coordinating with the PICs and the Add-On RSF Collection Agent with respect to preparation and dissemination of reporting forms and similar matters related to the collection and remittance of the Add-On RSF, and such other matters as the PICs, the Add-On RSF Collection Agent, Master Developer and TC-RP (as “declarant” under the PIF Covenants) reasonably request in connection with implementing and facilitating the collection of the Add-On RSF. (e)Effect of Expiration of Term. Except to the extent otherwise set forth in the applicable PIF Covenants, expiration of the Term shall not have the effect of terminating the Add-On RSF or the Add-On PIF and, to the extent the PICs continue to impose the Add-On RSF and/or the Add-On PIF and to collect the Add-On RSF Revenues or any other Add-On PIF Revenues after expiration of the Term, all such Add-On PIF Revenues may be utilized as set forth in Section 6.5(b)(ii). 6.6 Asphalt Overlay Agreement and Asphalt Overlay Account. Concurrently with the Effective Date and in implementation of the Settlement Term Sheet, the Town, TCMD and First Bank, Avon Branch, have legally delivered and entered into the Asphalt Overlay Agreement. Pursuant to the Settlement Term Sheet and the Asphalt Overlay Agreement, the Town has established with First Bank, Av on Branch,a restricted, segregated account (the “Asphalt EXHIBIT A to Heil Memorandum dated June 6, 2013 43 1001679.22 FINAL Overlay Account”) into which the Master Developer, the To wn and TCMD shall deposit funds in the amounts and at the times set forth below. Such funds shall be used exclusively to finance asphalt overlays of public roads located in the Project Dedicated to the To wn as described in Section 4.2(d). The Asphalt Overlay Account shall be subject to and administered in accordance with the terms and conditions of the Asphalt Overlay Agreement and the following terms and conditions: (a)Joint Funding Obligations. Commencing on the Effective Date and continuing until terminated pursuant to Section 6.6(b), Master Developer, the To wn and TCMD each shall contribute funds to the Asphalt Overlay Account as follows: (i)Due Dates. All payments are due and payable on or before November 1 of each year commencing in 2013. (ii)To wn Contribution. Utilizing Municipal Payments to be deposited into the Asphalt Overlay Account in accordance with Sections 5.2(c), 6.5(a)(ii)(A)and 6.5(b)(i): (A)For calendar years 2013 through 2017, the To wn shall contribute $120,000.00 (ONE HUNDRED TWENTY THOUSAND DOLLARS) per year. (B)For calendar years 2018 through and including the date on which termination occurs pursuant to Section 6.6(b), the To wn shall contribute $75,000.00 (SEVENTY FIVE THOUSAND DOLLARS) per year. (iii)TCMD Contribution. Such contributions being Non-Cap Amounts and using available District Revenues: (A)For calendar years 2013 through 2017, TCMD shall contribute $40,000.00 (FORTY THOUSAND DOLLARS) per year. (B)For calendar years 2018 through and including the date on which termination occurs pursuant to Section 6.6(b), TCMD shall contribute $75,000.00 SEVENTY FIVE THOUSAND DOLLARS) per year. (iv)Master Developer Contribution. Such contributions being Cap Amounts only to the extent reimbursable from TCMD using Credit PIF Revenues (and therefore qualifying as Additional Developer Advances): (A)For calendar years 2013 through 2017, Master Developer shall contribute $80,000.00 (EIGHTY THOUSAND DOLLARS) per year. (B)Notwithstanding any continuing obligation of the Town and TCMD to contribute funds to the Asphalt Overlay Account after calendar year 2017, Master Developer shall not have any obligation to contribute funds to the Asphalt Overlay Account after satisfying the obligation set forth in the foregoing clause (A). EXHIBIT A to Heil Memorandum dated June 6, 2013 44 1001679.22 FINAL (b)Te rmination of Joint Funding Obligations. The joint funding obligations of Master Developer (unless earlier satisfied pursuant to Section 6.6(a)(iv)), the To wn and TCMD with respect to the Asphalt Overlay Account shall terminate in the earliest calendar year in which one of the following occurs: (i)80,000 square feet of additional commercial (as defined in the PUD Guide) development have been issued a temporary or permanent certificate of occupancy;or (ii) the total annual Ta xable Transactions have increased by at least $20,000,000 over the actual total annual Ta xable Tr ansactions in 2011. From and after the date that the joint funding obligations terminate as provided herein: (A) the To wn shall be and remain solely responsible for performing and funding asphalt overlays for all public roads within the Project Dedicated to the To wn; (B) Master Developer and TCMD shall have no further obligation with respect to funding of asphalt overlays within the Project; (C) the obligations of Master Developer and TCMD to provide such funding shall not be reinstated upon any subsequent reduction of commercial occupancy or reduction of total annual Ta xable Tr ansactions; and (D) the expenditures and appropriations by the To wn for asphalt overlays in excess of the amounts deposited in the Asphalt Overlay A ccount shall not be counted against the Credit PIF Cap. 6.7 Creation of Urban Renewal Area; Potential Utilization of TIF Revenues. In implementation of the Settlement Term Sheet, the Master Developer and the Landowner(s) of the affected Sites within Lot 1 shall provide their timely, full and reasonable cooperation in assisting the Town and AURA in the creation of an urban renewal plan for Lot 1 in accordance with the terms and conditions of this Section6.7; provided, however, that Master Developer and any other Landowner(s) shall not be required to cooperate in the creation or implementation of such urban renewal plan unless Master Developer has provided its written consent to all terms and conditions of the urban renewal plan prior to its adoption. Master Developer and any other Landowner(s) shall have the right to oppose any urban renewal plan for Lot 1 (or any other area of the Property) that does not include a provision that expressly prohibits the Town or AURA from exercising eminent domain powers or, unless Master Developer has provided its written consent to such urban renewal plan for Lot 1 as contemplated herein, for any other reason permitted under the laws of the State of Colorado. Master Developer or any Landowner(s) of a Site within Lot 1shall have no obligation to cooperate with the formation of an urban renewal plan area for Lot 1 if Master Developer has not provided prior written consent as required above or if the Town and/or AURA fails to adhere to the following terms and conditions. (a)Limited to Lot 1. The area included within the urban renewal plan is limited to Lot 1 or a portion thereof. (b)Reduction of Credit PIF Cap. A maximum amount of $10,000,000 (TEN MILLION DOLLARS) of proceeds available for the payment of Capital Project Costs from bonds or other financial obligations (whether in the form of bonds, direct payments, redevelopment agreement(s) and/or cooperation/funding agreement(s)) issued or incurred by AURA to pay Cap Amounts may be counted against and thereby reduce the remaining Credit PIF Cap; provided, however, that the cost of improvements to or servicing Town-owned properties (by way of example and not limitation, improvements located within, utilities extensions servicing and/or access to and from Planning Area B, Planning Area E, or park/open space areas Dedicated to the Town), whether financed utilizing TIF Revenues or other revenues of the Town or AURA, shall not result in a reduction of the Credit PIF Cap. Nothing in this EXHIBIT A to Heil Memorandum dated June 6, 2013 45 1001679.22 FINAL Section 6.7(b)constitutes a limit on AURA’s ability to finance improvements it deems appropriate. The restriction in this Section 6.7(b)relates only to whether bonds issued by AURA to pay for the costs of such improvements count against the Credit PIF Cap. (c)AURA Board Positions. Prior to or concurrently with the effective date of any action including Lot 1 (or any portion thereof) in an urban renewal area and establishing an urban renewal plan therefore, the Town and AURA shall take action to appoint an individual designated by Master Developer and shall take action to appoint an individual designated by BNP (subject only to BNP’s ability to designate a lawfully eligible individual) to the AURA board. The Master Developer and BNP board members shall be full members of the AURA board with equal rights, duties and responsibilities as other AURA board members with respect to all matters pertaining to any urban renewal area including Lot 1 (or a portion thereof), the redevelopment plan or plans for any urban renewal area including Lot 1 (or a portion thereof) and all AURA activities of any nature that directly or indirectly involve the establishment, implementation and administration of any urban renewal area including or any urban renewal plan affecting Lot 1 (or a portion thereof). The Master Developer and BNP shall comply with statutory requirements regarding conflicts of interest. If the AURA board for activities affecting Lot 1 is constituted as a separate board from that which operates within other areas of the Town, such BNP and Master Developer board members shall be full members for all purposes having equal standing with other board members. If the AURA board is not constituted as a separate board from that with operates within other areas of the Town, the BNP and Master Developer board members shall have no authority or standing to participate in AURA board activities pertaining to areas of the Town other than Lot 1, and shall recuse themselves from all such proceedings. BNP’s right to have a member on the AURA board shall expire and terminate at such time as there are no outstanding obligations to BNP under the TCMD Reissue Documents or any subsequent reissue or refunding of such bonds. (d)TCMD and VMD Taxes. The urban renewal plan for any urban renewal area that includes Lot 1 (or any portion thereof), and all related governing and implementing documents, shall acknowledge that all Project Ad Valorem Taxes are and shall remain the propert y of TCMD and VMD, respectively, and shall require AURA to promptly remit to TCMD and VMD, respectively, that portion of TIF Revenues equivalent to the Project Ad Valorem Taxes revenues TCMD and VMD would otherwise have received but for the inclusion of Lot 1 (or an y portion thereof) within the urban renewal area. No portion of the property tax increment revenues resulting from the Districts’ mill levies shall be retained or utilized by AURA for any purpose, and shall specifically not be pledged or utilized by AURA for repayment of an y bonds issued or other financial obligations entered into by AURA. (e)TIF Revenues; Uses. The urban renewal plan(s) shall not contain any provision for capturing the increment of municipal sales taxes, and shall be expressly limited to capturing the increment of property taxes within the urban renewal area (subject to Section 6.7(d)). AURA shall utilize all TIF Revenues generated from the urban renewal area(s) containing all or any part of Lot 1 solely within the Project. Improvements undertaken or financed utilizing TIF Revenues shall be subject to the Design Covenant and the review and approval of the Design Review Board where applicable. EXHIBIT A to Heil Memorandum dated June 6, 2013 46 1001679.22 FINAL (f)Funding Agreement(s) with Districts. AURA may enter into enforceable multiple fiscal year cooperation/funding agreements with a District providing that the TIF Revenues will be assigned to the District for the purpose of financing, through the District’s issuance of bonds or otherwise, eligible Capital Projects. (g)Priority of Use of TIF Revenues. The priority of AURA’s use of TIF Revenues generated from within the urban renewal plan area(s) established within the Property pursuant to this Section 6.7 are: (i)First, until the Credit PIF Cap reduction contemplated by Section 6.7(b)has been accomplished or unless Master Developer and AURA otherwise agree in writing, to fund any then-uncompleted phases of East Beaver Creek Boulevard as a through road in accordance with Section 3.10(a). (ii)Second, to the extent the Credit PIF Cap reduction contemplated by Section 6.7(b)has not been accomplished by satisfaction of the foregoing clause (i), to fund from the remaining amount of Credit PIF Cap reduction contemplated by Section 6.7(b)the Capital Project Costs of any Prioritized Capital Projects within Lot 1 that have not previously been financed and completed. (iii)Third, in a priority to be determined by AURA: (A)improvements to or servicing Sites that the Town owns within Lot 1 (which may include structured parking within Lot 1 to provide shared public parking for private improvements and public improvements constructed within Planning Area B and other areas of Lot 1);and (B)any other Capital Projects that result in a reduction of the Credit PIF Cap pursuant to the terms and conditions of Section 6.7(b). 6.8 Tank Agreement. Prior to the Effective Date and in implementation of the Settlement Term Sheet, certain parties thereto legally delivered and entered into the Tank Agreement and as required by the Tank Agreement, not later than the Effective Date, the Pledge Agreement has been executed and delivered. As more specifically set forth in the Tank Agreement, the Pledge Agreement and related documentation, as of the Effective Date: (i) TCMD is obligated to remit the Annual Debt Service Obligation to the Authority; and (ii) the Authority is obligated to construct the Tank Project and to utilize the Annual Debt Service Obligation revenues to pay debt service on the Tank Project Bonds. As of the Effective Date, BNP has provided the original letters of credit securing payment of the TCMD Bond Reissue, consented to this Development Agreement and consented to the Tank Agreement in reliance on the Town’s performance of its obligation to maintain the Tax Credit in effect as required pursuant to this Development Agreement, and on the remedies provided for herein for the Town’s breach of its obligation to maintain the Tax Credit. EXHIBIT A to Heil Memorandum dated June 6, 2013 47 1001679.22 FINAL 6.9 TCMD Bond Reissue; Priority Use of District Revenues. In implementation of the Settlement Term Sheet: (a)TCMD Bond Reissue. Concurrently with the Effective Date and with the consent of BNP and Master Developer, TCMD has caused the TCMD Bond Reissue to be effected. Such actions, and BNP’s and Master Developer’s consent thereto, were undertaken in reliance on the Town’s performance of its obligations pursuant to this Development Agreement (specifically including but not limited to the Town’s obligation to maintain the Tax Credit in effect during the Term), and on the remedies provided for herein for the Town’s breach of its obligations under this Development Agreement (including but not limited to the right to obtain an order requiring specific performance of the Town’s obligation to maintain the Tax Credit). The TCMD Reissue Documents encumber and, consistent with the Settlement Term Sheet, establish the terms and conditions of TCMD’s utilization of District Revenues. Prior to the Effective Date, the Town reviewed and approved the TCMD Reissue Documents for consistency with this Development Agreement. (b)Priority of Use of District Revenues. District Revenues are to be utilized to meet TCMD obligations in the following priority: (i)Annual Debt Service Obligation. To the Authority, for the Annual Debt Service Obligation, from such sources, in the amounts and at such times required by the Pledge Agreement. (ii)Other Allowed O&M Expenses. Provided there is no continuing default with respect to its obligations pursuant to the TCMD Bond Documents, to TCMD in the amount of the Base O&M Amount and TCMD’s contributions to the Asphalt Overlay Account. (iii)TCMD Bond Reissue. To TCMD (or the trustee for the TCMD Bond Reissue) for principal repayment or reimbursement and Bond Requirements related to the TCMD Bond Reissue as required by the TCMD Reissue Documents, which includes, without limitation, establishment and, as necessary, replenishment of the required reserve of $3,000,000, and any refunding bonds issued to repay or defease the TCMD Bond Reissue. (iv)Deferred BNP Letter of Credit Fees and Deferred Amortization. To pay Deferred Fees, if any, together with interest thereon, and Deferred Amortization. The prepayment or refinancing of the TCMD Bond Reissue shall require payment in full of, or other extinguishment in full of the payment obligation with respect to, any such Deferred Fees and Deferred Amortization. Payments of Deferred Amortization shall be applied in inverse order of maturity. (v)Use of Excess Revenues. (A)Prepayment of TCMD Bond Reissue. In any year in which any District Revenues remain after the payment of the items set forth in subsections (i)-(iv)above and the Debt Service Coverage Ratio is less than 150%, EXHIBIT A to Heil Memorandum dated June 6, 2013 48 1001679.22 FINAL such excess revenues shall be applied to early payment of principal of the TCMD Bond Reissue in inverse order of maturity. (B)Other Obligations of TCMD. In any year in which any District Revenues remain after the payment of the items set forth in subsections (i)-(iv)above and the Debt Service Coverage Ratio is 150% or greater: 1.Supplemental Bonds. To the extent Supplemental Bonds have been issued (whether in the form of Additional Developer Advances or municipal bonds), for principal repayment or reimbursement and payment of interest and other Bond Requirements related to such Supplemental Bonds in accordance with the terms and conditions thereof and an y refunding bonds issued to repay or defease any such Supplemental Bonds. 2.Cure Payments. To the extent the Town has exercised any cure rights pursuant to Section 6.13 to cure a deficiency in payment of principal or the Bond Requirements of the Tank Project Bonds or the TCMD Bond Reissue, to reimburse the Town for the amount of such payments and interest thereon at the non-default interest rate commensurate with the interest paid to bondholders at the time of the cure payment. 3.Past Developer Advances and Avon Receivable. To satisfy TCMD’s payment obligations with respect to the Past Developer Advances (including amounts payable to Buffalo Ridge Affordable Housing Corporation) and the Avon Receivable, subject to the following: I.The Past Developer Advances (including any Replacement Bonds issued to repay or defease all or a portion of the Past Developer Advances) and the Avon Receivable shall be paid in the order in which TCMD incurred the obligations, with the oldest obligation to be paid first, except to the extent such priority of payment conflicts with the priority and terms of the instrument creating the obligation in which case such priority and terms shall control. With respect to the Past Developer Advances, the obligations shall be deemed to have been incurred as of the dates set forth in the instruments creating the obligations. With respect to the Avon Receivable, the obligation shall be deemed to have been incurred as of the dates on which payments were due under the terms of the Original Agreement and/or any Municipal Service Invoice (as the Original Agreement defined such term). The Past Developer Advances, the Avon Receivable, and the dates on which such obligations were incurred are more particularly described in Exhibit E. EXHIBIT A to Heil Memorandum dated June 6, 2013 49 1001679.22 FINAL II.Simple interest at the rate of 1.5%shall accrue on the principal amount of the Avon Receivable commencing on the Effective Date and continuing until the expiration of the Term or payment in full, whichever first occurs. III.Except to the extent stated in this Section6.9(b)(v)(B)3.III, the interest rate applicable to the Past Developer Advances shall be as stated in the instruments creating such obligations (as identified in Exhibit E). Notwithstanding the foregoing or any contrary provision of the instruments creating such obligations, the interest rate on certain Past Developer Advances payable to Master Developer or any Developer Affiliate shall: (A)with respect to a principal amount equal to the principal amount of the Avon Receivable be limited to 1.5% simple interest per annum, commencing on the Effective Date; and (B)such reduced interest rate shall be applied first to the principal balance of the latest (i.e., most recently executed) such instrument and then to each subsequent (i.e., next most recently executed) instrument until a principal amount equal to the principal amount of the Avon Receivable is obtained. IV.The rate of interest and priority of payment with respect to that portion of the Past Developer Advances payable to Buffalo Ridge Affordable Housing Corporation shall be as set forth in the document creating such obligation, shall not be modified in any manner by the terms and conditions of this Development Agreement, and shall remain in full force and effect in accordance with the existing terms except to the extent as may be modified by mutual agreement of TCMD, Master Developer and Buffalo Ridge Affordable Housing Corporation. Such agreement to modify the interest rate, priority of payment or other terms is expressly not a condition of this Development Agreement. (C)Direct Payment of Capital Project Costs. After the obligations of Sections 6.9(b)(i), (ii), (iii), (iv), (v)(A)and (v)(B)are fully satisfied and to the extent not expressly precluded by any provision of this Development Agreement, that portion of available Credit PIF Revenues shall be deposited to an escrow account to be used exclusively for direct payment of Capital Project Costs. (c)Other Legally Permissible Uses of District Revenues. Subject to the limitations in the Service Plans, the Tank Project Bonds documents and the TCMD Reissue Documents, nothing herein shall be construed as prohibiting the Districts from utilizing District Revenues for any other uses not enumerated above or from imposing a mill levy and retaining the revenues derived therefrom for the purpose of paying for Capital Project Costs and/or of paying the Districts’ operation, maintenance and administrative expenses to the extent that such costs exceed the Allowed O&M Expenses; provided, however, that the portion of District EXHIBIT A to Heil Memorandum dated June 6, 2013 50 1001679.22 FINAL Revenues comprising Credit PIF Revenues shall be limited solely to the Permitted Uses as set forth in Section 6.2(a). (d)Continuation of Priority of Use. If TCMD issues any form of replacement or refunding bonds for the TCMD Bond Reissue and/or issues Supplemental Bonds, TCMD shall cause the pertinent documentation executed in connection therewith to incorporate the general prioritization set forth in Section 6.9(b). The Town shall have the right to review and approve such documentation at least forty-five (45) days prior to issuance of such replacement or refunding bonds for the limited purpose of confirming conformance with the general prioritization set forth in Section 6.9(b). 6.10 Supplemental Bonds. If TCMD issues Supplemental Bonds on or before January 2, 2040, TCMD shall continue to receive Credit PIF Revenues until expiration of the Term. If TCMD has not issued Supplemental Bonds prior to January 2, 2040: (i)the Town shall have no further obligation with respect to any unissued Supplemental Bonds capacity; (ii)the Tax Credit shall be maintained in effect until all District Debts payable from Credit PIF Revenues and outstanding as of January 2, 2040,are fully paid and the Term expires as provide in Section 6.1(b); and (iii)TCMD shall be entitled to retain and utilize all Credit PIF Revenues it has received prior or subsequent to January 2, 2040, for servicing District Debts or direct payment of Capital Project Costs. The District shall make commercially reasonable efforts to obtain the lowest cost of borrowing when issuing Supplemental Bonds. The District may issue Supplemental Bonds (other than Additional Developer Advances)at fixed interest rates without the Town’s consent so long as the interest rate for such bonds does not exceed the Municipal Market Data rate (or, if the foregoing index is no longer published,then the Bond Buyer Revenue Bond index rate), for a term most closely related to the term of the Supplemental Bonds being issued,for Baa investment grade fixed interest rate bonds plus 150 basis points. The issuance of Supplemental Bonds (other than Additional Developer Advances)which bear interest at a fixed rate higher than that set forth in the preceding sentence,or which are variable rate bonds,shall require the prior written consent of the Parties. 6.11 Replacement Bonds. Subject to any applicable terms and conditions of the TCMD Reissue Documents,on or after the Effective Date TCMD shall have the ongoing right to issue Replacement Bonds to extinguish, replace, refund or defease Past Developer Advances. The principal amount of the Past Developer Advances being extinguished, replaced, refunded or defeased by such Replacement Bonds shall be deducted from and reduce the amount counted against the Credit PIF Cap. The principal amount of the Replacement Bonds shall not exceed $12.4 million without the Town’s prior written approval, and the interest rate of such Replacement Bonds shall bear a lower interest rate than such Past Developer Advances. For the purposes of determining the maximum allowable interest rate of Replacement Bonds, the interest rate of Past Developer Advances which are extinguished, replaced, refunded or defeased with Replacement Bonds (but excluding from such calculation those Past Developer Advances with respect to which the interest rate has been reduced to 1.5% pursuant to Section 6.9(b)(v)(B)3.II) shall be averaged with regard to the respective interest rate and amount of principal. The interest rate of Past Developer Advances (excluding those Past Developer Advances with respect to which the interest rate has been reduced to 1.5% pursuant to Section 6.9(b)(v)(B)3.II)shall be as determined by this Development Agreement on the Effective Date. To the extent the accrued and unpaid interest payable under the terms of the Past Developer Advance documents is not EXHIBIT A to Heil Memorandum dated June 6, 2013 51 1001679.22 FINAL capitalized in or paid from the proceeds of the Replacement Bonds, the unpaid interest shall be carried forward as an accrued and unpaid interest obligation under the terms of the Past Developer Advance documents, the unpaid interest obligation shall not bear any interest, and the unpaid interest obligation shall not be discharged until paid in full. 6.12 Refunding and Refinancing. As set forth in Section 6.2(c)(ii), and subject to the limitations set forth in this Section6.12, TCMD shall have the ongoing right to issue refunding bonds or other debt instruments to repay, refund and/or defease, in whole or in part, the principal and Bond Requirements of the obligations described in subsections (i), (ii), (iii) and (iv) of Section 6.2(b).The principal and Bond Requirements of such refunding bonds or other debt instruments shall not count against the Credit PIF Cap. Notwithstanding the foregoing, if the principal amount of any bonds or other debt instruments issued to repay, refund and/or defease or otherwise refinance the TCMD Bond Reissue exceeds the then outstanding principal amount of the TCMD Bond Reissue, only that portion of the increased principal which is in excess of $52,100,000 (FIFTY TWO MILLION ONE HUNDRED THOUSAND DOLLARS) shall be included in the Cap Amounts and count against the Credit PIF Cap. The interest rates on refunding bonds are subject to the requirements governing interest rates for Supplemental Bonds set forth in Section6.10. Without the Town’s prior written consent, the aggregate principal and interest due on fixed rate refunding bonds or other debt instruments with fixed interest rates, from their date of issuance to final maturity (disregarding any option to redeem prior to maturity),shall be less than or equal to the aggregate principal and interest due on the debt to be repaid, refunded, defeased or otherwise refinanced, from the date of the refunding to final maturity (disregarding any option to redeem prior to maturity). 6.13 Town Cure Payment Rights. As contemplated by the Settlement Term Sheet, the Town shall have the right, but not the obligation, to cure any TCMD payment default under the Tank Project Bonds, the TCMD Reissue Bonds or any Supplemental Bonds and to receive reimbursement of any such cure payments in accordance with the terms and conditions of Section 6.9(b)(v)(B)2. 6.14 Town Funding of Credit PIF Cap. At any time after the TCMD Bond Reissue obligations have been fully satisfied (including through payment by the Town pursuant to this Section6.14), the Town shall have the right, but not the obligation, to pay off all or a portion of the then-outstanding District Debts and/or satisfy the Town’s obligation with respect to funding the full Credit PIF Cap as follows: (a)Full Funding of Credit PIF Cap. The Town shall have the right to fully fund the Credit PIF Cap by: (i) paying off all then-outstanding District Debts; and (ii)remitting to TCMD the amount, if any, of available but unutilized Credit PIF Cap capacity as of the date of payoff. The total obligation to TCMD shall not exceed the Credit PIF Cap. For example, if the sum of the Net Proceedsof previously retired TCMD Bond Reissue obligations and other District Debts retired by the Town totals $80 million, the amount of unutilized Credit PIF Cap capacity to be paid by the Town to TCMD would be $16 million [$96 million -$80 million = $16 million]. Upon remitting the funds to fully fund the payoff amounts pursuant to the foregoing terms and conditions, the Town shall be entitled to terminate the Tax Credit. Simultaneously with Town’s exercise of its right to terminate the Tax Credit, the PICs’ obligation to cause the Municipal Payments to be remitted to the Town pursuant to the terms and EXHIBIT A to Heil Memorandum dated June 6, 2013 52 1001679.22 FINAL conditions of this Development Agreement, and all right or claim of the Town to receive any portion of the Add-On RSF Revenues imposed after the date which Town exercises its right to terminate the Tax Credit, shall automatically and without the requirement of further action terminate, be of no further force or effect, and be forever extinguished. (b)Partial Funding of Credit PIF Cap. Alternatively, the Town may elect to pay off the then-outstanding District Debts but not to advance the funds required to fund the unutilized Credit PIF Cap capacit y remaining available to TCMD. In such event and as otherwise provided in this Development Agreement, the Tax Credit shall continue in effect for the duration of the Term,the PICs shall continue to impose the Credit PIF and cause the collection of the Credit PIF Revenues, and the PICs shall continue to cause the Municipal Payments to be remitted to the Town. All Credit PIF Revenues available to TCMD (for example, not otherwise encumbered by and required to service debt on Supplemental Bonds issued after the date of the Town’s payoff) shall be placed in escrow by TCMD and applied from time to time toward Supplemental Bonds and/or direct payment of Capital Project Costs. The Credit PIF Revenues placed into escrow shall be subject to an agreement which grants the Town the right to enforce, restrict and limit the use of such escrow funds for payment of Capital Project Costs. 6.15 Other Taxes Town May Not Collect. The Town shall not be entitled to impose, collect, receive, retain, expend or utilize Town taxes imposed upon Public Improvement Fees as described herein. In the event that the Town is legally required by municipal, state or federal law to impose the Town’s tax on a PIC fee as described herein, the Town shall, subject to annual appropriation to the extent required by Section 20 of Article X of the Colorado Constitution, remit the full amount of the Town tax imposed upon the PIC fee to TCMD and such revenues shall be included with and be subject to the same terms, conditions and restrictions as Credit PIF Revenues. (a)Use Tax. If the Town enacts and imposes a use tax on building materials, the Town shall not impose such Town use tax on any Use Fee. (b)Real Estate Transfer Tax. The Town’s real estate transfer tax shall not apply to the Real Estate Transfer Fee. 6.16 Other Taxes Town May Collect. The Town is entitled to collect, receive, retain, expend and utilize for any lawful Town purpose in the Town’s discretion the following tax revenues: (a)Sales Tax Applied to PIF. The Retail Sales Fee and the Add-On RSF added to each retail sales transaction shall be included in the Taxable Transaction. The Retail Sales Fee and Add-On RSF shall be subject to the Town’s municipal sales tax and the Town is entitled to collect, receive, retain, expend and utilize such sales tax revenues. (b)Accommodations Tax Applied to PIF. The Accommodations/Lodging Fee shall be included in the Taxable Transaction. The Accommodations/Lodging Fee shall be subject to the Town’s accommodations tax and the Town is entitled to collect, receive, retain, expend and utilize such sales tax revenues. EXHIBIT A to Heil Memorandum dated June 6, 2013 53 1001679.22 FINAL (c)Town Ad Valorem Taxes. The Town is entitled to collect, receive, retain, expend and utilize all ad valorem property tax revenues resulting from imposition of the Town’s propert y tax mill levy within the Project. (d)Town Share of Eagle County Sales Taxes. The Town is entitled to collect, receive, retain, expend and utilize any portion of Eagle County’s sales tax revenues generated by transactions occurring within the Project that the Town is entitled to receive pursuant to any agreements with Eagle County in effect from time to time. (e)Future Taxes, Assessments and Fees. The Town is entitled to collect, receive, retain, expend and utilize in the Town’s discretion all future taxes, assessments and fees imposed by the Town and not addressed in this Development Agreement which are imposed uniformly and non-discriminately throughout the Town. 6.17 Books and Records. The Town, AURA, the PICs and the Districts each shall maintain adequate books and records to accurately perform and account for their respective obligations under this Development Agreement. Each such Party or Limited Party shall, upon request of any other such Party or Limited Party, permit representatives of such requesting entity reasonable access during normal business hours to review and, at the requesting entity’s expense, audit such books and records in order to permit such requesting entity to determine compliance with the terms of this Development Agreement or the accuracy of an y information contained in any statement, notice, invoice or report required to be provided under this Development Agreement. All such Parties and Li mited Parties shall use their best efforts to resolve any issues, discrepancies, or inaccuracies discovered in an y such statement, notice, invoice or report or in such requesting entity’s review or audit of the applicable books and records. For so long as BNP is providing a Letter of Credit to secure the TCMD Bond Reissue or any amounts are due and owing to BNP in connection with the TCMD Bond Reissue, BNP shall have the same right to reasonable access to review and audit books and records to determine compliance with the terms of this Development Agreement or the accuracy of any information as set forth above with respect to the Town, AURA, the PICS and the Districts. 6.18 Cooperation Regarding Delinquent Public Im provement Fees. If the PICs are unable to collect any portion of the Public Improvement Fees due to delinquency, deficiency, or failure to file, the PICs may promptly notify the Town in writing, and the Town shall institute the procedures authorized under the Municipal Code to enforce and collect the corresponding Town tax, interest, penalties and costs. The Town shall then remit, subject to annual appropriation to the extent required by Section 20 of Article X of the Colorado Constitution, such tax revenues to the PICs or to the District, subject to the following conditions: (a) the Town shall retain an amount equal to its costs incurred in enforcing its collection of taxes under the Municipal Code, as well as an administrative fee equal to 20% of any tax and/or penalty actually collected; (b) the obligation is subject to any prior lien on such Town taxes securing the Town’s sales tax revenue bonds outstanding as of the date of the Original Agreement; (c) the Town will have no responsibility to collect Public Improvement Fees which are in excess of the corresponding Town tax or which are assessed against any transaction that is exempt from the corresponding Town tax under the Municipal Code as then in effect; and (d) the Town does not guarantee or insure that it will be able to collect any delinquent or deficient Public Improvement Fees. Under no circumstances shall the Town be subject to any legal liability to the PICs or to the Districts on EXHIBIT A to Heil Memorandum dated June 6, 2013 54 1001679.22 FINAL account of the Town’s failure to collect some or all of the delinquent or deficient Public Improvement Fees on behalf of such entities. The Town acknowledges that if the person or entity which failed to timely remit such Public Improvement Fees subsequently remits such Public Improvement Fees to the applicable PIC, such payment shall result in the application of the Tax Credit (if applicable) against such person or entity’s corresponding tax obligation (if any),which Tax Credit shall fully satisfy any corresponding tax liability to the Town. The Town shall nevertheless be entitled to recover from the PICs the administrative fee and any costs incurred in the enforcement and recovery of such Public Improvement Fees. 6.19 Creation of Additional PICs and/or Districts. Master Developer reserves the right to create such additional PICs as may be necessary or desirable from time to time. With the prior written consent of BNP (for so long as there are outstanding obligations to BNP under the TCMD Reissue Documents or any subsequent reissue or refunding of such bonds) and Master Developer, the applicable Landowner(s) may petition for the creation of additional Districts to provide services and/or Public Improvements and/or other forms of improvements benefiting all or any portion of the Property. The Town shall reasonably cooperate with Master Developer and such Landowners, as applicable, with respect to the creation of such additional PICs and/or Districts. 6.20 Operation of PICs and Districts. The formation documents of the PICs and the Districts, together with contracts entered into by and between the PICs and the Districts, require the PICs and the Districts to honor their obligations under this Development Agreement, including the obligation of the PICs to cause the Credit PIF Revenues and the Add-On RSF Revenues to be imposed, collected, remitted and utilized as required by the terms of this Development Agreement. The Town shall cooperate with the operation of the Districts, and with implementation of the Financing Plan. 6.21 Dissolution of Districts. Unless Master Developer requests the Town to do so earlier, the Town shall not initiate or pursue any proceeding to dissolve any District until after the earlier to occur of either: (a)the twenty-fifth (25th) anniversary of the first issuance of bonds by either District; or (b)such time as all infrastructure improvements and public amenities contemplated in the service plans for the Districts have been constructed and no issued general obligations or revenue obligations of the Districts remain outstanding with respect thereto. Any dissolution of any District shall be conducted in accordance with the provisions and procedures set forth in Colorado Revised Statutes §§32-1-701, et seq., as in effect as of the Original Effective Date. ARTICLE7 Default; Remedies 7.1 Default by Town. A “breach” or “default” by the Town shall be defined as: (i)any zoning, land use or other action or inaction, direct, indirect or pursuant to an initiated measure, taken without Master Developer’s and the affected Landowner’s or Landowners’ consent, that alters, impairs, prevents, diminishes, imposes a moratorium on development, delays or otherwise adversely affects any development, use or other rights of the Landowners under this Development Agreement or the Development Plan; or (ii) the Town’s failure to fulfill or perform any obligation of the Town that is expressly set forth in this Development Agreement. EXHIBIT A to Heil Memorandum dated June 6, 2013 55 1001679.22 FINAL 7.2 Default by TCMD. A “breach” or “default” by TCMD shall be defined as TCMD’s failure to fulfill or perform any obligation of TCMD that is expressly set forth in this Development Agreement. 7.3 Default by Master Developer. A “breach” or “default” by Master Developer shall be defined as Master Developer’s failure to fulfill or perform any obligation of Master Developer that is expressly set forth in this Development Agreement. 7.4 Default by Limited Party. A “breach” or “default” by a Limited Party shall be defined as such Limited Party’s failure to fulfill or perform any obligation of such Limited Party that is expressly set forth in this Development Agreement. 7.5 No Cross-Defaults. No default by a Party or a Limited Party that is asserted or judicially determined to exist under this Development Agreement shall be construed to constitute a default of any other Party or Limited Party under this Development Agreement. No default of a Party or a Limited Party that is asserted or judicially determined to exist under this Development Agreement shall be construed to constitute a default of such Party or Limited Party under any other agreement to which such Party or Limited Party is a party. No default of a Party or a Limited Party that is asserted or judicially determined to exist under another agreement to which such Party or Limited Party is a party shall be construed to constitute a default by such Party or Limited Party under this Development Agreement. 7.6 Notices of Default. In the event of a default by a Party or by a Limited Party under this Development Agreement, anon-defaulting Party, non-defaulting Limited Party and/or Intended Beneficiary may deliver written notice to the defaulting Party or defaulting Limited Party (with a copy to each other Party, Limited Party and Intended Beneficiary) of such default, at the address specified in Section 8.12, and the defaulting Party or defaulting Limited Party shall have 30 days from and after receipt of such notice to cure such default. If such default is not of a type which can be cured within such 30-day period and the defaulting Party or defaulting Limited Party gives written notice to each non-defaulting Party, non-defaulting Limited Party and Intended Beneficiary within such 30-day period that it is actively and diligently pursuing such cure, the defaulting Party or defaulting Limited Party shall have a reasonable period of time given the nature of the default following the end of such 30-day period to cure such default, provided that such defaulting Party or defaulting Limited Party is at all times within such additional time period actively and diligently pursuing such cure. Failure or delay in the delivery of a notice of default pursuant to this Section7.6 shall not be construed to constitute a waiver of any such default, and such notice of default may be delivered at any time during which a default has occurred and not been cured. The defaulting Party’s or defaulting Limited Party’s obligation to cure shall not arise until such notice of default has been delivered as provided herein, and no claim shall be filed with respect to a default prior to delivery of a default notice and expiration of the cure period as set forth above. 7.7 Remedies. (a)General. If any default under this Development Agreement is not cured as described in Section 7.6, any non-defaulting Party,any non-defaulting Limited Party and/or Intended Beneficiary shall, except to the extent otherwise limited by an express provision of this EXHIBIT A to Heil Memorandum dated June 6, 2013 56 1001679.22 FINAL Development Agreement, be entitled to enforce the provisions and any remedy provided in this Development Agreement at law or in equity, and relief in the nature of injunctive relief, mandamus, specific performance or damages or a combination may be awarded. The remedies available shall include, but not be limited to, ex parte applications for temporary restraining orders, preliminary injunctions and permanent injunctions and actions for specific performance of the defaulting Party’s or defaulting Limited Party’s obligations and/or damages. All of the remedies permitted or available under this Development Agreement, at law, by statute or in equity shall be cumulative and not in the alternative, and invocation of any such right or remedy shall not constitute a waiver or election of remedies with respect to any other permitted or available right or remedy. For the avoidance of doubt and in order to clarify the effect of the foregoing as it relates to the Financing Plan: (i)the Town hereby forever waives and relinquishes any claim or right to terminate the Tax Credit for so long as any District Debts remain outstanding; and (ii)in consideration of this Development Agreement constituting an intergovernmental agreement by and among the Town, AURA, TCMD and VMD pursuant to C.R.S. §§ 29-1-203 and 29-20-105, each such governmental or quasi governmental entity expressly acknowledges that the Town, AURA, TCMD and VMD each shall have standing to enforce this Development Agreement, including specific performance, and affirms its intent that the obligations of each such governmental or quasi-governmental entity are to be enforced in accordance with their terms and each such entity expressly waives an y right to object to or assert any defense against the entry of an order requiring specific performance (or other mandatory or prohibitory injunctive relief) of such obligations. (b)Impairment of Vested Property Rights. The Town acknowledges that this Development Agreement and the Development Plan constitute a development agreement which confers rights beyond those provided by the three (3) year statutory vesting approach described in the Vested Property Rights Statute. In the event of an uncured breach or default by the Town, in addition to any other remedies, Master Developer and any affected Landowner shall be entitled to: (i)recover from the Town the Past Developer Advances and any other damages that would have been specifically available pursuant to C.R.S. §24-68-105(1)(c) as in effect on the Effective Date, plus any other and additional damages provable at law. (ii)cause the Property, or any portion thereof designated by Master Developer and the pertinent Landowner, to be disconnected from the Town. (c)Limited Parties. The Limited Parties’ remedies shall be as follows: (i)AURA. AURA shall have no rights arising under this Development Agreement to enforce any obligation of any other Party or to obtain any remedy against any Party. (ii)EMD. EMD shall have all rights and remedies available to Master Developer. EXHIBIT A to Heil Memorandum dated June 6, 2013 57 1001679.22 FINAL (iii)The Commercial PIC. The Commercial PIC’s rights arising under this Development Agreement to enforce any obligation of any other Party or to obtain any remedy against any Party shall be limited to the following rights and remedies: (A)Pursuant to Sections 4.2(a)and 6.2, the right to enforce the Town’s obligations to maintain the Tax Credit in effect. (B)Pursuant to Section 4.2(b), the right to require the Town’s cooperation in implementing the Add-On RSF. (C)Pursuant to Sections 6.3(a)and 6.3(b), the right to enforce the Town’s obligations with respect to application of the real estate transfer tax and Real Estate Transfer Fee, and with respect to retail sales transactions that are effected remotely. (D)Pursuant to Section 6.5(b), the right to enforce the Town’s obligations with respect to use of the Municipal Payments and the Credit PIF Revenues that do not constitute Municipal Payments. (iv)The Mixed Use PIC. The Mixed-Use PIC’s rights arising under this Development Agreement to enforce any obligation of any other Party or to obtain any remedy against any Party shall be limited to the following rights and remedies: (A)Pursuant to Sections 4.2(a)and 6.2, the right to enforce the Town’s obligations to maintain the Tax Credit in effect. (B)Pursuant to Section 4.2(b), the right to require the Town’s cooperation in implementing the Add-On RSF. (C)Pursuant to Sections 6.3(a)and 6.3(b), the right to enforce the Town’s obligations with respect to application of the real estate transfer tax and Real Estate Transfer Fee, and with respect to retail sales transactions that are effected remotely. (D)Pursuant to Section6.5(b), the right to enforce the Town’s obligations with respect to use of the Municipal Payments and the Credit PIF Revenues that do not constitute Municipal Payments. (d)Intended Beneficiaries. Each of the following Intended Beneficiaries shall have the right to enforce specified provisions of this Development Agreement, as described below. (i)BNP. For so long as there are outstanding obligations to BNP under the TCMD Reissue Documents (or any subsequent reissue or refunding of such bonds), BNP shall have all rights and remedies available to a Party with respect to enforcement of the following Town and/or AURA and/or other expressly identified obligations: EXHIBIT A to Heil Memorandum dated June 6, 2013 58 1001679.22 FINAL (A)Generally, the obligations set forth in Article 4 and Article 6. (B)Pursuant to Sections 4.2(a)and 6.2, the Town’s obligation to maintain the Tax Credit in effect. (C)Pursuant to Sections 6.3(a)and 6.3(b), the right to enforce the Town’s obligations with respect to application of the real estate transfer tax and Real Estate Transfer Fee, and with respect to retail sales transactions that are effected remotely. (D)Pursuant to Section 6.7(c), BNP’s right to participate on the AURA board of directors with respect to any urban renewal plans for any portion of the Property. (E)Pursuant to Sections 5.1(e)and 5.3(e), BNP’s right to participate on the TCMD board of directors and right for its designee to hold a property interest sufficient to qualify for appointment or election to be a TCMD director. (ii)VMD. (A)Pursuant to Section 6.7(d), VMD’s right with respect to any urban renewal plans for any portion of the Property located within VMD’s service area to enforce the obligations of AURA and the Town with respect to VMD’s ad valorem property taxes and the uses of all tax increment revenues collected by AURA. (B)Pursuant to Section 4.2(f), VMD’s right to enforce the Town’s obligation regarding waiver of Chapter 18.01 of the Municipal Code (as in effect from time to time). (iii)Developer Affiliates and Landowners. Each Developer Affiliate and each Landowner shall have all rights and remedies available to Master Developer. ARTICLE8 Miscellaneous 8.1 Applicable Law. This Development Agreement shall be construed and enforced in accordance with the laws of the State of Colorado. 8.2 No Joint Venture or Partnership. No form of joint venture or partnership exists between the Town, Master Developer, AURA, the PICs, the Districts and/or BNP, and nothing contained in this Development Agreement shall be construed as making any of the Parties, Limited Parties and/or Intended Beneficiaries joint venturers or partners. 8.3 Expenses. Except as otherwise provided in this Development Agreement, Master Developer, EMD, TCMD, each Developer Affiliate, each Limited Party, each Intended EXHIBIT A to Heil Memorandum dated June 6, 2013 59 1001679.22 FINAL Beneficiary and the Town shall each bear their respective costs and expenses associated with entering into, implementing and enforcing the terms of this Development Agreement. 8.4 Waiver. No waiver of one or more of the terms of this Development Agreement shall constitute a waiver of other terms. No waiver of any provision of this Development Agreement in any instance shall constitute a waiver of such provision in other instances. 8.5 Town Findings. Town Council hereby finds and determines that execution of this Development Agreement provides a public benefit to the Town and its citizens, is in the best interests of the public health, safety, and general welfare, and the provisions of this Development Agreement are consistent with all applicable development laws, regulations and policies of the Town. Town Council further specificall y finds: (i) the Town’s approval of this Development Agreement and the Development Plan generally is pursuant to the authority of the Vested Property Rights Statute and the Municipal Annexation Act of 1965 set forth at CRS § 31-12-101, et seq.,and, to the extent permitted by law, the Town is acting in a proprietary capacity in approving the Financing Plan and therefore shall bind the Town with regard to the Town’s rights and obligations during the Term, particularly with regard to the Town’s obligation to maintain the Tax Credit in effect, in accordance with the terms and remedies set forth in this Development Agreement; (ii) the Financing Plan and the Town’s agreement to forego the collection of sales tax revenues, real estate transfer tax revenues and accommodations/lodging tax revenues by maintaining the Tax Credit in effect during the Term does not constitute the creation of a multiple-fiscal year direct or indirect debt or other financial obligation of the Town, and does not constitute a new tax, tax rate increase or tax policy change directly causing a net tax revenue gain to the Town; and (iii)nothing in this Development Agreement constitutes (A) a pledge of the Town’s credit, (B)special legislation under Article V, section 25 of the Colorado Constitution, or (C)a grant in aid under Article XI, sections 1 and 2 of the Colorado Constitution. 8.6 Severability. If a final order issued by a court of competent jurisdiction holds any term, provision, covenant or condition of this Development Agreement to be invalid, void or unenforceable, the remaining provisions of this Development Agreement shall, unless amended or modified as provided in Section1.5, continue in full force and effect so long as enforcement of the remaining provisions would not deprive the Party(ies) or Limited Party(ies) against whom they are being enforced of a material benefit of the bargain under this Development Agreement or otherwise be inequitable to such Party or Limited Party under the facts and circumstances then pertaining. For the avoidance of doubt, a determination that the Town’s obligation to maintain the Tax Credit in effect in accordance with the terms and conditions of the Financing Plan, or a determination that the Town’s right to receive the Municipal Payments,is invalid, void, unenforceable or that the remedy of specific performance is not available with respect to the Town’s obligations under the Financing Plan or the Town’s right to receive the Municipal Payments: (i) shall be construed as depriving the adversely affected Parties and Limited Parties of a material benefit of the bargain and being otherwise inequitable to such Parties and Limited Parties; and (ii)this Development Agreement shall be deemed void and of no further effect unless modified by the Parties as provided in Section 1.5 or judicially reformed in such a manner that the Town’s obligations and commitments set forth in the Financing Plan, and/or the Town’s right to receive Municipal Payments, as applicable,can be materially performed and complied with by alternative means. Unless amended or reformed as provided herein, entry of a final order holding the Town’s obligation to maintain the Tax Credit in effect invalid or unenforceable EXHIBIT A to Heil Memorandum dated June 6, 2013 60 1001679.22 FINAL shall entitle Master Developer and affected Landowners to entry of an order enforcing the remedy set forth in Section 7.7(b)(ii)and, correspondingly, entry of a final order holding the Town’s right to receive Municipal Payments invalid or unenforceable shall entitle the Town to disconnect the Property. 8.7 Further Assurances. Each Party shall undertake such actions and shall execute and deliver to the other all such other further instruments and documents as may be reasonably necessary to carry out this Development Agreement in order to provide and secure to the other Party the full and complete enjoyment of its rights and privileges under this Development Agreement. 8.8 TCMD Obligations. Except with respect to funding of the Asphalt Overlay Account in accordance with the terms and conditions of Section 6.6(a)(iii)and funding of the Annual Debt Service Obligation, all obligations of TCMD under this Development Agreement to pay money are subject to annual budget and appropriation, and are subordinate to any bonds issued by TCMD. 8.9 Complete Agreement. This Development Agreement constitutes the final, complete and exclusive statement of the terms of the agreement among the Parties pertaining to the subject matter of this Development Agreement and supersedes all prior and contemporaneous understanding or agreements of the Parties. This Development Agreement may not be contradicted by evidence of any prior or contemporaneous statements or agreements, including but not limited to the Settlement Term Sheet, the Original Agreement and any oral or written communications exchanged during the public review process leading to approval of this Development Agreement. 8.10 Construction. Each Party has participated fully in the review and revision of this Development Agreement. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply to interpreting this Development Agreement. The language in this Development Agreement shall be interpreted as to its fair meaning and not strictly for or against any Party. 8.11 Assignment. This Development Agreement shall be binding upon and, except as otherwise provided in this Development Agreement, shall inure to the benefit of the successors in interest or the legal representatives of the Parties. Master Developer shall have the right to assign or transfer all or any portion of its interests, rights or obligations under this Development Agreement to third parties acquiring an interest or estate in the Property, including, but not limited to, purchasers or long term ground lessees of individual lots, parcels, or of any improvements now or hereafter located within the Property, provided that to the extent Master Developer assigns any of its obligations under this Development Agreement, the assignee of such obligations shall expressly assume such obligations. The express assumption of any of Master Developer’s obligations under this Development Agreement by its assignee or transferee shall thereby relieve Master Developer of any further obligations under this Development Agreement with respect to the matter so assumed. BNP Paribas shall provide written notice to the Parties of any successor or assignee entity that assumes BNP’s rights and obligations pursuant to this Development Agreement. EXHIBIT A to Heil Memorandum dated June 6, 2013 61 1001679.22 FINAL 8.12 Notices. All approvals, consents, notices, objections, and other communications (a “Notice” and, collectively, “Notices”) under this Development Agreement shall be in writing and shall be deemed properly given and received when personally delivered, or sent by overnight courier, or by email (pdf), or by registered or certified United States mail, postage prepaid, addressed to the respective Parties, Limited Parties or Intended Beneficiaries at their respective addresses as set forth below. Notices shall be deemed effective: (i) if personally delivered, when actually given and received; or (ii) if by overnight courier service, on the next business day following deposit with such courier service; or (iii) if by email (pdf), on the same day if sent before 5:00 P.M. Mountain Time, or on the next business day if sent after 5:00 P.M. Mountain Time; or (iv)if by registered or certified United States mail, postage prepaid, three (3) business days after mailed. All Notices shall be addressed as follows (or to such other address as may be subsequently specified by Notice given in accordance herewith): To the Town: To wn of Av on P.O. Box 975 One Lake Street Av on, Colorado 81620 Attention: To wn Manager Te lephone: (970) 748-4452 Email: vegger@avon.org Wi th a required copy to: To wn of Av on P.O. Box 975 One Lake Street Av on, Colorado 81620 Attention: To wn Attorney Te lephone: (970) 748-4000 Email: townattorney@avon.org To TCMD: Traer Creek Metropolitan District 141 Union Boulevard, Suite 150 Lakewood, CO 80228 Attn:Lisa Jacoby Te lephone: (303) 987-0835 Email: ljacoby@sdmsi.com EXHIBIT A to Heil Memorandum dated June 6, 2013 62 1001679.22 FINAL Wi th a required copy to: McGeady Sisneros, P.C. 450 E. 17th Av enue, Suite 400 Denver, Colorado 80202-1214 Attn: Mary Jo Dougherty Te lephone: (303) 592-4380 Email: mjdougherty@mcgeadysisneros.com To Master Developer: Traer Creek LLC P.O. Box 9429 0101 Fawcett Road, Suite 210 Av on, CO 81620 Attn: Marcus Lindholm, Manager Te lephone: (970) 949-6776 Email: marcuslindholm@traercreek.com Wi th a required copy to: Otten, Johnson, Robinson, Neff & Ragonetti, P.C. 950 17th Street, Suite 1600 Denver, Colorado 80202 Attention: Munsey L. Ay ers Te lephone: 303.825.8400 Email: munsey@ottenjohnson.com EMD Limited Liability Company c/o Lava Corporation P.O. Box 9429 0101 Fawcett Road, Suite 210 Av on, CO 81620 Attn: Michael Lindholm, President Te lephone: (970) 949-6776 Email: michaellindholm@traercreek.com Wi th a required copy to: Otten, Johnson, Robinson, Neff & Ragonetti, P.C. 950 17th Street, Suite 1600 Denver, Colorado 80202 Attention: Munsey L. Ay ers Te lephone: 303.825.8400 Email: munsey@ottenjohnson.com EXHIBIT A to Heil Memorandum dated June 6, 2013 63 1001679.22 FINAL To the Limited Parties: Av on Urban Renewal Authority P.O. Box 975 One Lake Street Av on, Colorado 81620 Attention: To wn Manager Te lephone: (970) 748-4452 Email: vegger@avon.org Wi th a required copy to: Av on Urban Renewal Authority P.O. Box 975 One Lake Street Av on, Colorado 81620 Attention: To wn Attorney Te lephone: (970) 748-4000 Email: townattorney@avon.org The Village (at Av on) Mixed-Use Public Improvement Company 141 Union Boulevard, Suite 150 Lakewood, CO 80228 Attn:Lisa Jacoby Te lephone: (303) 987-0835 Email: ljacoby@sdmsi.com Wi th a required copy to: Otten, Johnson, Robinson, Neff & Ragonetti, P.C. 950 17th Street, Suite 1600 Denver, Colorado 80202 Attention: Munsey L. Ay ers Te lephone: 303.825.8400 Email: munsey@ottenjohnson.com The Village (at Av on) Commercial Public Improvement Company 141 Union Boulevard, Suite 150 Lakewood, CO 80228 Attn:Lisa Jacoby Te lephone: (303) 987-0835 Email: ljacoby@sdmsi.com EXHIBIT A to Heil Memorandum dated June 6, 2013 64 1001679.22 FINAL Wi th a required copy to: Otten, Johnson, Robinson, Neff & Ragonetti, P.C. 950 17th Street, Suite 1600 Denver, Colorado 80202 Attention: Munsey L. Ay ers Te lephone: 303.825.8400 Email: munsey@ottenjohnson.com To the Intended Beneficiaries: BNP Paribas, an International Bank 787 Seventh Av enue, 9th Floor New Yo rk, NY 10019 Attn:Barbara Eppolito Te lephone: 212.841.3607 Email: barbara.eppolito@us.bnpparibas.com Wi th a required copy to: Faegre Baker Daniels 3200 Wells Fargo Center 1700 Lincoln Street Denver, CO 80203-4532 Attn: Brandee Caswell Te lephone: (303) 607-3826 Email: Brandee.Caswell@faegrebd.com Developer Affiliates c/o Tr aer Creek LLC [Utilizing the Master Developer contact and required copy information set forth above.] The Vi llage Metropolitan District 141 Union Boulevard, Suite 150 Lakewood, CO 80228 Attn:Li sa Jacoby Te lephone: (303) 987-0835 Email: ljacoby@sdmsi.com Wi th a required copy to: McGeady Sisneros, P.C. 450 E. 17th Av enue, Suite 400 Denver, Colorado 80202-1214 Attn: Mary Jo Dougherty Te lephone: (303) 592-4380 Email: mjdougherty@mcgeadysisneros.com EXHIBIT A to Heil Memorandum dated June 6, 2013 65 1001679.22 FINAL 8.13 Counterparts. This Development Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. IN WITNESS WHEREOF, the Parties and the Limited Parties have executed this Development Agreement as of the Execution Date, with the intent that this Development Agreement shall be legally binding on each such signatory and legally attach to and encumber the Property upon the occurrence of the Effective Date. [SIGNATURE AND NOTARY PAGES FOLLOW THIS PAGE] EXHIBIT A to Heil Memorandum dated June 6, 2013 66 1001679.22 FINAL Signature and Notary Pages for Consolidated, Amended and Restated Annexation and Development Agreement for The Village (at Av on) PARTIES: TOWN: THE TOWN OF AVON, a home rule municipal corporation of the State of Colorado By: Name: Title: Approved as to legal form by: Eric J. Heil, Esq., Town Attorney STATE OF COLORADO ) )ss. COUNTY OF ______________) The foregoing instrument was acknowledged before me this ____ day of _________, 2013, by _____________________ as __________________ of THE TOWN OF AVON, a home rule municipal corporation of the State of Colorado. Witness my hand and official seal. My commission expires: Notary Public (SEAL) EXHIBIT A to Heil Memorandum dated June 6, 2013 67 1001679.22 FINAL TCMD: TRAER CREEK METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado By: Name: Daniel J. Leary Title: President STATE OF COLORADO ) )ss. COUNTY OF ______________) The foregoing instrument was acknowledged before me this ____ day of _________, 2013, by Daniel J. Leary as President of TRAER CREEK METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado. Witness my hand and official seal. My commission expires: Notary Public (SEAL) EXHIBIT A to Heil Memorandum dated June 6, 2013 68 1001679.22 FINAL MASTER DEVELOPER: TRAER CREEK LLC, a Colorado limited liability company By: Name: Marcus Lindholm Title: Manager STATE OF COLORADO ) )ss. COUNTY OF ______________) The foregoing instrument was acknowledged before me this ____ day of _________, 2013, by Marcus Lindholm as Manager of TRAER CREEK LLC, a Colorado limited liability company. Witness my hand and official seal. My commission expires: Notary Public (SEAL) EXHIBIT A to Heil Memorandum dated June 6, 2013 69 1001679.22 FINAL EMD LIMITED LIABILITY COMPANY, a Colorado limited liability company By: Lava Corporation, a Colorado corporation, its Manager By: Name: Michael Lindholm Title: President STATE OF COLORADO ) )ss. COUNTY OF ______________) The foregoing instrument was acknowledged before me this ____ day of _________, 2013, by Michael Lindholm as President of Lava Corporation, a Colorado corporation, Manager of EMD LIMITED LIABILITY COMPANY, a Colorado limited liability company. Witness my hand and official seal. My commission expires: Notary Public (SEAL) EXHIBIT A to Heil Memorandum dated June 6, 2013 70 1001679.22 FINAL LIMITED PARTIES: AURA: THE AVON URBAN RENEWAL AUTHORITY, a body corporate duly organized and existing as an urban renewal authority under the laws of the State of Colorado By: Name: Title: Approved as to legal form by: Eric J. Heil, Esq., Town Attorney STATE OF COLORADO ) )ss. COUNTY OF ______________) The foregoing instrument was acknowledged before me this ____ day of _________, 2013, by _____________________ as _____________________ of THE AVON URBAN RENEWAL AUTHORITY, a body corporate duly organized and existing as an urban renewal authority under the laws of the State of Colorado. Witness my hand and official seal. My commission expires: Notary Public (SEAL) EXHIBIT A to Heil Memorandum dated June 6, 2013 71 1001679.22 FINAL MIXED USE PIC: THE VILLAGE (AT AVON) MIXED USE PUBLIC IMPROVEMENT COMPANY, a Colorado non profit corporation By: Name: Title: STATE OF COLORADO ) )ss. COUNTY OF ______________) The foregoing instrument was acknowledged before me this ____ day of _________, 2013, by _____________________ as ________________________ of THE VILLAGE (AT AVON) MIXED USE PUBLIC IMPROVEMENT COMPANY, a Colorado non profit corporation. Witness my hand and official seal. My commission expires: Notary Public (SEAL) EXHIBIT A to Heil Memorandum dated June 6, 2013 72 1001679.22 FINAL COMMERCIAL PIC: THE VILLAGE (AT AVON) COMMERCIAL PUBLIC IMPROVEMENT COMPANY, a Colorado non profit corporation By: Name: Title: STATE OF COLORADO ) )ss. COUNTY OF ______________) The foregoing instrument was acknowledged before me this ____ day of _________, 2013, by _____________________ as ________________________ of THE VILLAGE (AT AVON) COMMERCIAL PUBLIC IMPROVEMENT COMPANY, a Colorado non profit corporation. Witness my hand and official seal. My commission expires: Notary Public (SEAL) EXHIBIT A to Heil Memorandum dated June 6, 2013 73 1001679.22 FINAL ACKNOWLEDGEMENT AND CONSENT OF BNP PARIBAS The undersigned representatives of BNP Paribas, an international bank (as defined in the foregoing Development Agreement, “BNP”), in its capacit y as the issuer of irrevocable direct pay letter(s) of credit securing the Traer Creek Metropolitan District Variable Rate Revenue Bonds, Series 2002, and the Traer Creek Metropolitan District Variable Rate Revenue Bonds, Series 2004, hereby acknowledge and consent to the foregoing Consolidated, Amended and Restated Annexation and Development Agreement for The Village (at Avon). BNP PARIBAS: By: Name: Title: BNP PARIBAS: By: Name: Title: STATE OF NEW YORK ) )ss. COUNTY OF _______________) The foregoing instrument was acknowledged before me this ____ day of _________, 2013, by _____________________ as ________________________ of BNP Paribas. Witness my hand and official seal. My commission expires: Notary Public (SEAL) EXHIBIT A to Heil Memorandum dated June 6, 2013 74 1001679.22 FINAL STATE OF NEW YORK ) )ss. COUNTY OF _______________) The foregoing instrument was acknowledged before me this ____ day of _________, 2013, by _____________________ as ________________________ of BNP Paribas. Witness my hand and official seal. My commission expires: Notary Public (SEAL) EXHIBIT A to Heil Memorandum dated June 6, 2013 A-1 1001679.22 FINAL EXHIBIT A Legal Description of the Property Lots 2, 3 and 4,and Tracts B and E, Final Plat, The Village (at Avon) Filing 1,according to the plat thereof recorded in the office of the Eagle County, Colorado, Clerk and Recorder under Reception No.795007; Lots 1, 5 and 6,and Tracts A, C, D, F and G, Amended Final Plat, The Village (at Avon) Filing 1, according to the plat thereof recorded in the office of the Eagle County, Colorado, Clerk and Recorder under Reception No.898173; Lots 1 through 5, inclusive, and Tracts A through H, inclusive, Final Plat, The Village (at Avon) Filing 2, according to the plat thereof recorded in the office of the Eagle County, Colorado, Clerk and Recorder under Reception No.796831; Tracts A, D, E, G and H, Final Plat, The Village (at Avon) Filing 3, according to the plat thereof recorded in the office of the Eagle County, Colorado, Clerk and Recorder under Reception No.882776; and Tracts B and F, Amended Final Plat, The Village (at Avon) Filing 3, A Reconfiguration of Tracts B and F, according to the plat thereof recorded in the office of the Eagle County, Colorado, Clerk and Recorder under Reception No.200712166. TOGETHER WITH THE FOLLOWING PARCEL (OS5): That part of the NE 1/4 of Section 17, Township 5 South, Range 81 West of the Sixth Principal Meridian, Eagle County, Colorado, according to the Dependent Resurvey of said Township and Range, accepted November 1, 1943 by the Department of the Interior General Land Office in Washington, D.C., lying north of the Denver & Rio Grande Western Railroad right-of-way line, described as follows: Beginning at the N 1/4 corner of said Section 17; thence S8923'36"E 526.76 feet, along the northerly line of said NE 1/4 of Section 17, to the northerly right-of-way line of the Denver & Rio Grande Western Railroad; thence, departing said northerly line of Section 17, the following two courses along the northerly right-of-way line of the Denver & Rio Grande Western Railroad, said northerly right-of-way line being parallel with and 50 feet northerly of the centerline of the existing railroad tracks: (1)S8036'27"W 267.66 feet; (2)263.93 feet along the arc of a curve to the right, having a radius of 2486.03 feet, a central angle of 0604'58", and a chord which bears S8338'57"W 263.81 feet, to the westerly line of said NE 1/4 of Section 17; thence N0020'55"W 78.44 feet, along said westerly line, to the point of beginning containing 0.53 acres, more or less. TOGETHER WITH THE FOLLOWING PARCEL (OS6): That part of the NE 1/4 of Section 17, Township 5 South, Range 81 West of the Sixth Principal Meridian, Eagle County, Colorado, according to the Dependent Resurvey of said Township and Range, accepted November 1, 1943 by the Department of the Interior General Land Office in Washington, D.C., lying south of the Denver & Rio Grande Western Railroad right-of-way line and north of the centerline of the Eagle River, described as follows: Beginning at the Northeast corner of said Section 17; thence S0141'49"E 96.93 feet, along the easterly line of said Section 17, to the True Point of Beginning; thence, continuing along said EXHIBIT A to Heil Memorandum dated June 6, 2013 A-2 1001679.22 FINAL easterly line, S0141'49"E 73.07 feet, to the centerline of said Eagle River; thence the following four courses along said centerline (Filum aquce): (1)N8924'49"W 1037.9 feet; (2)N8607'49"W 472.00 feet; (3)N8929'49"W 538.00 feet; (4)S8233'11"W 595.15 feet, to the westerly line of said NE 1/4; thence N0020'55"W 49.18 feet, along said westerly line to the southerly right-of-way line of the Denver & Rio Grande Western Railroad; thence, departing said westerly line of Section 17, the following five courses along the southerly right-of-way line of the Denver & Rio Grande Western Railroad, said southerly right-of-way line being parallel with and 50 feet southerly of the centerline of the existing railroad tracks: (1)279.72 feet along the arc of a curve to the left, having a radius of 2586.03 feet, a central angle of 0611'51", and a chord which bears N8342'23"E 279.58 feet; (2)N8036'27"E 350.86 feet; (3)686.44 feet along the arc of a curve to the right, having a radius of 3171.27 feet, a central angle of 1224'07", and a chord which bears N8648'31"E 685.10 feet; (4)S8659'25"E 1216.38 feet; (5)112.54 feet along the arc of a curve to the right, having a radius of 2549.33 feet, a central angle of 0231'46". and a chord which bears S8543'31"E 112.53 feet, to the True Point of Beginning, containing 5.28 acres, more or less. TOGETHER WITH THE FOLLOWING PARCEL (EAST PARCEL): Those parts of Sections 7, 8, 9 & 10, Township 5 South, Range 81 West of the Sixth Principal Meridian, Eagle County, Colorado, according to the Dependent Resurvey of said Township and Range, accepted November 1, 1943 by the Department of the Interior General Land Office in Washington, D.C., described as a whole as follows: Beginning at the Northwest corner of said Section 8; thence the following four courses along the northerly line of said Section 8: (1)N8840'41"E 1379.49 feet, to the W 1/16 corner of said Section 8 and Section 5 of said Township and Range; (2)N8840'41"E 1379.49 feet, to the 1/4 corner of said Sections 8 and 5; (3)N8842'58"E 1385.36 feet, to the E 1/16 corner of said Sections 8 and 5; (4)N8842'58"E 1385.36 feet, to the corner of said Sections 5, 8 and 9 and Section 4 of said Township and Range; thence the following four courses along the northerly line of said Section 9: (1)N8329'30"E 1386.63 feet, to the W 1/16 corner of said Sections 9 and 4; (2)N8329'30"E 1386.64 feet, to the 1/4 corner of said Sections 9 and 4; (3)N8324'12"E 1386.30 feet, to the E 1/16 corner of said Sections 9 and 4; (4)N8324'12"E 1386.30 feet, to the corner of said Sections 4, 9 and 10 and Section 3 of said Township and Range; thence the following two courses along the northerly line of said Section 10: (1)N8639'24"E 1381.29 feet, to the W 1/16 corner of said Sections 10 and 3; (2)N8639'24"E 1299.94 feet; thence, departing said northerly line, S0134'07"W 2699.66 feet, to the east-west centerline of said Section 10; thence, along said east-west centerline, S8632'23"W 1304.06 feet, to the W 1/16 corner of said Section 10; thence S0132'50"W 1349.33 feet, along the easterly line of the NW 1/4 SW 1/4 of said Section 10, to the SW 1/16 corner of said Section 10; thence S8632'47"W 1384.91 feet, along the southerly line of said NW 1/4 SW 1/4, to the S 1/16 corner of said Sections 10 and 9; thence S7710'15"W 1413.37 feet, along the southerly line of the NE 1/4 SE 1/4 of said Section 9, to the SE 1/16 corner of said Section 9; thence S0133'02"W 1475.32 feet, along the easterly line of the SW 1/4 SE 1/4 of said Section 9, to the E 1/16 corner of said Section 9 and Section 16 of said Township and Range; thence S7220'31"W 1450.43 feet, along the southerly line of said SW 1/4 SE 1/4, to the 1/4 corner of said Sections 9 and 16; thence N0134'18"E 1601.52 feet, to the CS 1/16 corner of said Section 9; thence S8607'30"W 1378.19 feet, along the southerly line of the NE 1/4 SW 1/4 of said Section 9, to the SW 1/16 corner of said Section 9; thence S0133'13"W 1506.37 feet, along the easterly line of the SW 1/4 SW 1/4 of said Section 9,to the W 1/16 corner of said Sections 9 and 16; thence N89°55’04”W 1371.96 feet, along the southerly line of said SW 1/4 SW 1/4 to the section corner of said Sections 8, 9, EXHIBIT A to Heil Memorandum dated June 6, 2013 A-3 1001679.22 FINAL 16, and 17 of said Township and Range; thence N01°32’00”E 3.82 feet, along the westerly line of Section 9, to the northerly right-of-way line of the Denver & Rio Grande Western Railroad, said northerly right-of-way line being parallel with and 50 feet northerly of the centerline of the existing railroad tracks; thence the following two courses along said northerly right-of-way line: (1)104.48 feet along the arc of a curve to the left, having a radius of 2649.33 feet, a central angle of 02°15’34”, and a chord which bears N85°51’36”W 104.47 feet; (2)N86°59’25”W 1213.28 feet, to the westerly line of the SE 1/4 SE 1/4 of said Section 8; thence N00°51’07”E 1337.77 feet, along said westerly line, to the SE 1/16 corner of said Section 8; thence N8954'54"W 1333.58 feet, along the southerly line of the NW 1/4 SE 1/4 of said Section 8, to the CS 1/16 corner of said Section 8; thence N8958'35"W 1366.46 feet, along the southerly line of the NE 1/4 SW 1/4 of said Section 8, to the SW 1/16 corner of said Section 8; thence S0001'37"E 919.47 feet, along the easterly line of the SW 1/4 SW 1/4 of said Section 8, to the northerly right-of-way line of Interstate Highway No.70, as described in the deed recorded in Book 223 at Page 982 in the office of the Eagle County, Colorado, Clerk and Recorder; thence the following ten courses along said northerly right-of-way line: (1)N6530'20"W 249.79 feet; (2)N7847'50"W 317.2 feet; (3)N8308'20"W 506.7 feet; (4)772.2 feet along the arc of a curve to the right, having a radius of 1462.0 feet, a central angle of 3015'52", and a chord which bears N5457'56"W 763.3 feet; (5)N3437'50"W 331.1 feet; (6)N3444'20"W 368.5 feet; (7)804.9 feet along the arc of a curve to the left, having a radius of 1812.0 feet, a central angle of 2527'04", and a chord which bears N5129'50"W 798.3 feet; (8)N6824'50"W 399.7 feet; (9)N4947'20"W 213.6 feet; (10)N7020'50"W 765.1 feet, to the northerly line of the SE 1/4 of said Section 7; thence the following two courses along said northerly line: (1)N8950'40"E 1194.46 feet, to the CE 1/16 corner of said Section 7; (2)N8950'40"E 1378.25 feet, to the 1/4 corner of said Sections 7 and 8; thence the following two courses along the westerly line of said Section 8: (1)N0010'53"W 1369.09 feet, to the S 1/16 corner of said Sections 7 and 8; thence N0010'53"W 1369.10 feet, to the point of beginning. EXCLUDING from above The Village (at Avon) Filing 3 according to the plat thereof recorded in the office of the Eagle County, Colorado, Clerk and Recorder under Reception No.882776. Said East Parcel containing 1366.95 acres, more or less, with The Village (at Avon) Filing 3 area subtracted. EXHIBIT A to Heil Memorandum dated June 6, 2013 B-1 1001679.22 FINAL EXHIBIT B Form of Special Warranty Deed for Conveyances to To wn SPECIAL WARRANTY DEED [STATUTORY FORM –C.R.S. § 38-30-115] [TRAER CREEK METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado](“Grantor”), whose street address is [141 Union Boulevard, Suite 150, c/o Special District Management, Lakewood, CO 80228-1898, County of Jefferson], State of Colorado, for the consideration of Ten and 00/100 Dollars ($10.00) and other good and valuable consideration, in hand paid, hereby sells and conveys to THE TOWN OF AVON, a home rule municipal corporation of the State of Colorado (“Grantee”), whose street address is 400 Benchmark Road, Avon, Colorado 81620, County of Eagle, State of Colorado (“Grantee”), the real property that is described on Exhibit A attached hereto and made a part hereof, with all its appurtenances, and warrants the title to the same against all persons claiming under Grantor, subject to the matters set forth on Exhibit B attached hereto and made a part hereof. [TRAER CREEK METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado] By: Name: Title: STATE OF ___________) ) ss: COUNTY OF _________) The foregoing instrument was acknowledged before me this ____ day of ____________________, 200__, by _________________________ as ________________ of _____________________________, a ____________________. Witness my hand and official seal. My commission expires: Notary Public EXHIBIT A to Heil Memorandum dated June 6, 2013 B-2 1001679.22 FINAL EXHIBIT A TO SPECIAL WARRANTY DEED Description of the Property [insert description of property or property interest to be conveyed] EXHIBIT A to Heil Memorandum dated June 6, 2013 B-3 1001679.22 FINAL EXHIBIT B TO SPECIAL WARRANTY DEED Restrictions and/or Reservations Restrictions: Conveyance of the Property pursuant to the foregoing Special Warranty Deed is subject to the following restrictions, which restrictions shall be binding on Grantee and all successors and assigns of Grantee, and which Grantor and its successors and assigns shall have the right to enforce by an action for specific performance, mandamus, mandatory or prohibitory injunction or other equitable or legal remedy: 1.[insert applicable use/other deed restrictions or state non applicable] Reservations: Conveyance of the Property pursuant to the foregoing Special Warranty Deed is subject to Grantor’s reservation of the following rights with respect to the Property: 1.[insert applicable reservations or state non applicable] EXHIBIT A to Heil Memorandum dated June 6, 2013 C-1 1001679.22 FINAL EXHIBIT C Form of Covenant and Temporary Easement Agreement COVENANT AND TEMPORARY EASEMENT AGREEMENT THIS COVENANT AND TEMPORARY EASEMENT AGREEMENT (this “Easement Agreement”) is made and entered into as of this _____ day of _________________, 2013 (“Effective Date”), by and between the TOWN OF AVON, a home rule municipal corporation of the State of Colorado (together with its successors and assigns, “Grantor”); and EMD LIM ITED LIABILITY COMPANY, a Colorado limited liability company (together with its successors and assigns, “Grantee”). Recitals A.Grantor is the owner of certain real property located in Eagle County, Colorado, legally described on EXHIBIT A: LEGAL DESCRIPTION OF FS VILLAGE PARCEL attached hereto and incorporated herein by this reference, which property is generally referred to as the Forest Service Village Parcel (“FS Village Parcel”). B.Grantee is the owner of certain real property located in Eagle Count y, Colorado, legally described on EXHIBIT B: LEGAL DESCRIPTION OF PLANNING AREA I attached hereto and incorporated herein by this reference, which property is designated as Planning Area I (“Planning Area I”) pursuant to The Village (at Avon) PUD Master Plan, Formal Amendment Two as recorded in the real propert y records of Eagle County, Colorado on ______________, 2013 at Reception No. ______________ (“PUD Master Plan”). C.Exhibit F of The Village (at Avon) Amended and Restated PUD Guide dated as of _______________, 2013 and recorded in the real property records of Eagle County, Colorado on _______________, 2013 at Reception No. __________________ (“PUD Guide”), establishes the applicable design and improvement standards (“Design Standards”) for construction of an extension of Swift Gulch Road as a rural local roadway (“Planning Area I Access Road”) over, across and through the FS Village Parcel to provide access to Planning Area I from Planning Area J. D.Grantor and Grantee are parties to that certain Consolidated, Amended and Restated Annexation and Development Agreement for The Village (at Avon) dated as of _____________, 2013 and recorded in the real property records of Eagle County, Colorado on ______________, 2013 at Reception No. ______________ (“Development Agreement”). E.Pursuant to Section 4.2(e) of the Development Agreement: (i) Grantor is legally obligated to execute and deliver this Easement Agreement to Grantee (or to the then- Landowner(s)of Planning Area I)within three (3)business days after acquiring title to the FS Village Parcel, but in any event prior to permitting the recordation of a conservation easement or similar instrument limiting potential development within the FS Village Parcel or any other conveyance by the Town of the FS Village Parcel or any EXHIBIT A to Heil Memorandum dated June 6, 2013 C-2 1001679.22 FINAL interest therein; and (ii) this Easement Agreement shall be recorded as a prior interest to any conservation easement or similar instrument, and any such subsequent conveyance or grant by the Town shall be expressly subject and subordinate to this Easement Agreement. F.Prior to actual construction of the Planning Area I Access Road, the alignment of the Planning Area I Access Road and the Temporary Easement (as defined in Paragraph 2) are intended to be conceptual and to assure Grantee’s legal right to construct the Planning Area I Access Road in an alignment to be finally established at the time of construction drawing review and approval by Grantor in its governmental capacity in connection with future development application review for Planning Area I. G.Grantor and Grantee intend that execution, delivery and recording of this Easement Agreement shall constitute satisfaction of Grantor’s obligations pursuant to Section 4.2(e) of the Development Agreement and shall be construed and enforced in that manner which enables Grantee’s enjoyment of the rights granted to Grantee in this Easement Agreement, including but not limited to the future construction,operation and maintenance of the Facilities (as defined in Paragraph 2) in accordance with the terms and conditions of the Design Standards, the PUD Guide and the Development Agreement. AGREEMENT NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged,Grantor and Grantee agree as follows: 1.Covenant to Consent to Applications.If Grantor acquires fee title to the FS Village Parcel, Grantor agrees and covenants that Grantor shall provide consent as the owner of the FS Village Parcel to Grantee, including providing a properly acknowledged power of attorney to Grantee,that Grantee may submit a subdivision application pursuant to Avon Municipal Code §7.16.020(b)(1) for the FS Village Parcel to plat and dedicate a public road right-of-way. The grant of this covenant shall not restrict or diminish the Grantor’s rights to review a subdivision application and/or application for road construction, an accompanyi ng pedestrian/recreational trail facility or other associated public improvements in accordance with the Design Standards and other applicable standards and procedures of the PUD Guide and the Avon Municipal Code. 2.Grant of Temporary Easement. Grantor hereby grants, bargains, sells and conveys to Grantee, together with its engineers, contractors, employees and similar consultants to Grantee and/or its assigns as may be necessary or desirable (collectively, “Permittees”),a temporary, non-exclusive, easement appurtenant to Planning Area I(“Temporary Easement”)over, under, through and across that portion of the FS Village Parcel which is graphically depicted in EXHIBIT C: GRAPHIC DESCRIPTION OF TEMPORARY EASEMENT AREA (“Temporary Easement Area”) for the right to enter upon the Temporary Easement Area and such adjacent areas of the FS Village Parcel thereto as may reasonably be necessary to survey, conduct geotechnical and similar physical investigation related to construction of the Roadway Facilities and the Utility Facilities, as each are defined in Paragraph 3 below (collectively, the EXHIBIT A to Heil Memorandum dated June 6, 2013 C-3 1001679.22 FINAL “Facilities”). The Temporary Easement shall commenceon the date of execution of this Easement Agreement and shall continue through the date on which the Planning Area I Access Road is constructed and dedicated to the Town in accordance with the applicable provisions of the Development Agreement, the PUD Guide and the Avon Development Code, whereupon the Temporary Easement and this Easement Agreement shall terminate and shall be of no further force and effect.Nothing contained herein shall obligate Grantee to install, or cause to be installed,any or all of the Facilities or to otherwise provide for any such use. 3.Temporary License Agreement. Upon the approval by Grantor of a properly submitted subdivision application establishing and dedicating a public road right-of-way within the FS Village Parcel as contemplated by the Development Agreement and this Easement Agreement, and an approval by Grantor of a properly submitted application and public improvements agreement for construction of the Facilities within such dedicated public road right-of-way, Grantor and Grantee will execute a Temporary License Agreement to allow construction of the Facilities in accordance with the Design Standards and other applicable procedures and standards set forth in the Development Agreement, the PUD Guide and the Avon Development Code. The Temporary License Agreement shall permit the Grantee to enter upon the FS Village Parcel and to: (i)construct and install drive lanes, roadways, landscaping, sidewalks, bike paths, recreational trail, retaining walls, and other access facilities necessary or desirable for such access, and all fixtures and devices reasonably used or useful in the operation of such facilities (collectively, the “Roadway Facilities”); (ii)construct and install water lines, sanitary sewer lines, storm drainage facilities, electrical lines, gas lines, telephone lines, fiber optic lines, cable television lines and similar utilities and utility facilities, together with all sleeves, conduit, junction boxes, vaults,fixtures and devices reasonably used or useful in the operation of such facilities, whether publicly or privately owned (collectivel y, the “Utility Facilities”); and, (iii)stage construction materials and equipment within designated areas on the Temporary Easement Area as may be approved by the Town. The form of Temporary License Agreement is attached as EXHIBIT D: FORM OF LICENSE AGREEMENT. 4.Entry; Site Investigation; Construction Staging; Restoration of Surface. In conducting the design and construction of the Facilities, including but not limited to surveying, geotechnical testing, other physical inspection and similar matters, it will be necessary or desirable for Grantee and/or the Permittees to enter upon and/or cause disturbances to the surface of the Temporary Easement Area and potentially to the surface of adjacent areas of the FS Village Parcel. Grantee shall provide not less than five (5) business days’ written notice to Grantor of any planned entrance upon and/or conduct of physical testing or inspection of the Temporary Easement Area and/or adjacent areas of the FS Village Parcel. Grantor shall coordinate with Grantee regarding the scope, nature and duration of such activities, but shall not unreasonably object to or interfere with Grantee’s and/or Permittees’ conduct of such activities. To the extent such activities disturb vegetation or otherwise disturb the surface, Grantee shall promptly cause revegetation and/or otherwise cause restoration of the affected area to a condition reasonabl y consistent with its condition prior to Grantee’s and/or Permittees’ conduct of such activities. 5.Grantor’s Reserved Rights. Grantor reserves the right to grant additional non-exclusive easement interests within the Temporary Easement Area and the FS Village Parcel so long as such interests do not adversely affect,increase the cost of, or otherwise interfere with Grantee’s EXHIBIT A to Heil Memorandum dated June 6, 2013 C-4 1001679.22 FINAL or Permittees’ full exercise of Grantee’s rights in this Easement Agreement, including but not limited to the rights set forth in the Temporary Easement and the Temporary License Agreement. Grantor reserves the right to use and occupy the FS Village Parcel and the Temporary Easement Area for any and all purposes not inconsistent with the rights and privileges granted herein, including the grant and conveyance of such conservation easements or other real property interests in and to the FS Village Parcel and the Temporary Easement Area so long as all such interests and conveyances are made expressly subject and subordinate to Grantee’s rights under this Easement Agreement. 6.Title Matters; No Warranties. This Easement Agreement is subject to all prior easements, restrictions, reservations, rights-of-way, encumbrances and similar matters of record as of the Effective Date. Grantor makes no representations or warranties regarding the status of title to the FS Village Parcel or the Temporary Easement Area as of the Effective Date, and the grant of easements and other rights pursuant to this Easement Agreement is in the nature of a bargain and sale conveyance. Except with Grantee’s prior written consent, all matters affecting title to the FS Village Parcel and the Temporary Easement Area after the Effective Date shall be subordinate to the terms and conditions of this Easement Agreement. 7.Covenants. Each and every benefit and burden of this Easement Agreement shall inure to and be binding upon Grantor, Grantee and their respective successors and assigns. The burdens and benefits hereof shall run with title to the FS Village Parcel and the Temporary Easement Area, and shall run with title to Planning Area I. Any person or entity that acquires any interest in the FS Village Parcel and/or the Temporary Easement Area,and any person or entity that acquires any interest in Planning Area I, shall be bound by the burdens and entitled to the benefits of this Easement Agreement. The burdens and benefits of this Easement Agreement constitute covenants that run with and encumber title to the FS Village Parcel, the Temporary Easement Area and Planning Area I. 8.Assignment. To the extent Traer Creek Metropolitan District or another District (as defined in the Development Agreement) undertakes to construct all or part of the Facilities pursuant to Section 3.2(a) of the Development Agreement, Grantee shall have the right to assign to Traer Creek Metropolitan District or such other District (in whole or in part) its rights and obligations arising pursuant to this Easement Agreement. 9.Legal Fees and Costs.The prevailing party in any legal action with respect to this Easement Agreement shall be awarded it reasonable costs and attorneys' fees incurred with respect thereto. 10.Counterparts. This Easement Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. EXHIBIT A to Heil Memorandum dated June 6, 2013 C-5 1001679.22 FINAL IN WITNESS WHEREOF, Grantor and Grantee have executed this Easement Agreement as of the date first written above. GRANTOR: TOWN OF AVON, a home rule municipal corporation of the State of Colorado By:___________________________ Attest:______________________________ Rich Carroll, Mayor Patty McKenny, Town Clerk STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this _____ day of _______________, 2013, by Rich Carroll, as Mayor of the TOWN OF AVON, a home rule municipal corporation of the State of Colorado. Witness my hand and official seal.____________________________________ Notary Public My commission expires: ______________________________. GRANTEE: EMD LIMITED LIABILITY COMPANY, a Colorado limited liability company By: Lava Corporation, a Colorado corporation, its Manager By: Name: Michael Lindholm Title: President STATE OF COLORADO ) ) ss. COUNTY OF __________) The foregoing instrument was acknowledged before me this _________ day of ______________________, 2013 by Michael Lindholm, President of Lava Corporation, a Colorado corporation, as Manager of EMD LIMITED LIABILITY COMPANY, a Colorado limited liability company. Witness my hand and official seal.___________________________________ Notary Public My commission expires: EXHIBIT A to Heil Memorandum dated June 6, 2013 C-6 1001679.22 FINAL EXHIBIT A LEGAL DESCRIPTION OF THE FS VILLAGE PARCEL Sixth Principal Meridian, Colorado T. 5 S. R. 81 W., sec. 8, lots 1 and 2 EXHIBIT A to Heil Memorandum dated June 6, 2013 C-7 1001679.22 FINAL EXHIBIT B LEGAL DESCRIPTION OF PLANNING AREA I Planning Area I is that portion of the following legal description which is depicted on the PUD Master Plan and designated as Planning Area I. EXHIBIT A to Heil Memorandum dated June 6, 2013 C-8 1001679.22 FINAL EXHIBIT C GRAPHIC DEPICTION OF TEMPORARY EASEMENT AREA EXHIBIT A to Heil Memorandum dated June 6, 2013 C-9 1001679.22 FINAL EXHIBIT D FORM OF TEMPORARY LICENSE AGREEMENT AN AGREEMENT BY AND BETWEEN THE TOWN OF AVON AND _________________________ FOR THE GRANT OF A TEMPORARY LICENSE TO INSTALL AND CONSTRUCT A ROAD ON TOWN-OWNED PROPERTY 1.Parties. The parties to this agreement (“Agreement”) are the TOWN OF AVON, COLORADO, a Colorado home rule municipality (the “Town”) and ___________________________ (the “Licensee”). This Agreement is effective upon execution by the Licensee and following execution by the Town Manager on the date indicated below. 2.Recitals and Purpose. (a)The Town is the owner of certain property located in the Town of Avon, Eagle County, Colorado, commonly known as the ________________________ (“Town Property”). (b)The Licensee desires to encroach upon and occupy the Town Property for the purpose of installing and constructing certain Roadway Facilities and Utility Facilities (collectively referred to as “Facilities”) as described in the Covenant and Temporary Easement Agreement dated _____, (“Easement Agreement”). (c)The Town and Licensee have agreed to enter into this temporary license agreement under the terms and conditions as hereinafter specified in this Agreement provided that nothing in this Agreement shall waive or modify any obligation to seek building permits, variances, or other approval necessary to meet any obligation imposed by law. The Licensee remains obligated to apply for and obtain all necessary permits and approvals, pay all required fees, and comply with all applicable local laws, including but not limited to an y applicable provisions of this Agreement, Exhibit F of The Village (at Avon) Amended and Restated PUD Guide dated as of____________, 20[__] and recorded in the real property records of Eagle County, Colorado on _______, 20[__] at Reception No. __________, (“PUD Guide"), and the Consolidated, Amended and Restated Annexation and Development Agreement for The Village (at Avon) dated as of ____________, 20[__] and recorded in the real propert y records of Eagle County, Colorado on__________, 20[__] at Reception No. _______ (“Development Agreement”). 3.Terms and Conditions. (a)License Granted. The Town hereby grants to the Li censee a temporary license for the encroachment and occupation as described in the public improvements agreements approved by the Town to construct the Facilities;provided, however, that nothing in this Agreement is intended to waive, alter, modify, or permit any violation of any local law applicable within the Town of Avon. Except for the encroachment and occupation of the Facilities,no other encroachment, structure, improvement, vehicle, EXHIBIT A to Heil Memorandum dated June 6, 2013 C-10 1001679.22 FINAL fence, wall, landscaping, or any other real or personal property shall be erected, installed, constructed, parked, stored, kept, or maintained in any way or fashion on the Town Property. (b)Term and Termination. This Agreement shall continue until the Roadway Facilities are dedicated to the Town and the applicable portions of the Utility Facilities are dedicated to the respective utility providers in accordance with the procedures and timeframes established in the public improvements agreement to construct the Facilities. Upon dedication and final acceptances of the Facilities this Agreement is terminated. In the event that the Licensee fails to comply with the construction timeframe, procedures or other provisions of the public improvements agreement the Town may elect to provide notice of default in writing to the Licensee. If the Town has provided such notice of default and Li censee is unable to cure the default within ninety (90) days after receipt of a notice of default, then Town may terminate this Agreement. In the event that Li censee has failed to complete the Facilities as required by the public improvements agreement and the Town has elected to utilize the financial security to complete the Facilities, then Town may immediately terminate this Agreement. (c)Indemnification. The Licensee expressly agrees to, and shall, indemnify and hold harmless the Town and any of its officers, agents, or employees from any and all claims, damages, liability,or court awards, including costs and attorney’s fee that are or may be awarded as a result of any loss, injury or damage sustained or claimed to have been sustained by anyone, including but not limited to, any person, firm, partnership, or corporation, in connection with or arising out of any omission or act of commission by the Licensee or any of its employees, agents, partners, or lessees, in encroaching upon the Town Property. In particular and without limiting the scope of the foregoing agreement to indemnify and hold harmless, the Licensee shall indemnify the Town for all claims, damages, liability, or court awards, including costs and attorney’s fees that are or may be awarded as a result of any loss, injury or damage sustained or claimed to have been sustained by anyone, including but not limited to, any person, firm, partnership, or corporation, in connection with or arising out of any claim in whole or in part that all or any portion of the Facilities and encroachment permitted by this Agreement constitutes a dangerous and/or unsafe condition within a public right-of-way. (d)Insurance. The Licensee agrees to procure and maintain, at its own cost, a policy or policies of insurance protecting against injury, damage or loss occurring on the licensed premises in the minimum amount of $600,000.00 per occurrence. Such policy or policies shall name the Town as an “additional insured”. However, the Licensee’s failure to take such steps to insure the premises shall not waive, affect, or impair any obligation of the Li censee to indemnify or hold the Town harmless in accordance with this Agreement. 4.Assignment. This Agreement shall not be assigned by the Licensee without the prior written consent of the Town which may withhold its consent for any reason; provided that the Town EXHIBIT A to Heil Memorandum dated June 6, 2013 C-11 1001679.22 FINAL encourages the Licensee to inform any purchaser of the Licensee’s property or interests of the existence of this Agreement and the Town will promptly consider any request by the Licensee for assignment of this Agreement to such subsequent purchaser. 5.Notices. Any notice required or permitted by this Agreement shall be in writing and shall be deemed to have been sufficiently given for all purposes if personally served or if sent by certified mail or registered mail, postage and fees prepaid, addressed to the party to whom such notice is to be given at the address set forth on the signature page below, or at such other address as has been previously furnished in writing, to the other party or parties. Such notice shall be deemed to have been given when deposited in the United States Mail. 6.Integration and Amendment. This Agreement represents the entire agreement between the parties and there are no oral or collateral agreements or understandings; provided, however, the Easement Agreement shall remain in effect in accordance with its terms. This Agreement may be amended only by an instrument in writing signed by the parties. If any other provision of this Agreement is held invalid or unenforceable, no other provision shall be affected by such holding, and all of the remaining provisions of this Agreement shall continue in full force and effect. Invalidation of the Agreement in its entirety shall revoke any authorization, whether explicit or implied to the continuing use and occupancy of the Town Propert y for the Facilities. 7.Governing Law and Venue. This Agreement shall be governed by the laws of the State of Colorado and venue for any action arising under this agreement shall be in the appropriate court for Eagle County, Colorado. 8.Waiver of Breach. A waiver by any party to this Agreement of the breach of any term or provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by either party. 9.Binding Effect. This Agreement shall inure to the benefit of, and be binding upon, the parties, their respective legal representatives, successors, heirs, and assigns; provided, however, that nothing in this paragraph shall be construed to permit the assignment of this Agreement except as otherwise expressly authorized herein. 10.Underlying Intent and Scope. It is the intent of this Agreement that the Town shall incur no cost or expense attributable to or arising from the construction, maintenance, or operation of the Facilities and encroachment permitted by this Agreement and that, in all instances, the risk of loss, liability, obligation, damages, and claims associated with the encroachment shall be borne by the Licensee. This Agreement does not confer upon the Licensee any other right, permit, license, approval, or consent other than that expressly provided for herein and this Agreement shall not be construed to waive, modify, amend, or alter the application of any other federal, state, or local laws, including laws governing zoning, land use, property maintenance, or nuisance. EXHIBIT A to Heil Memorandum dated June 6, 2013 C-12 1001679.22 FINAL 11.Authority to Bind Party. The undersigned persons represent that they are expressly authorized to execute this Agreement on behalf of the Parties and to bind their respective Parties and that the Parties may rely upon such representation of authority. 12.Legal Fees and Costs. The prevailing party in any legal action with respect to this Easement Agreement shall be awarded it reasonable costs and attorneys’ fees incurred with respect thereto. DATED THIS ____________ DAY OF _______________, 20____. TOWN OF AVON: By: ________________________________ Town Manger ATTEST:Approved as to Form: _________________________________________________________ Town Clerk or Deputy Town Clerk For Town Attorney’s Office LICENSEE: By: ________________________________ Print Name: _________________________ Address: ___________________________ ___________________________________ STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this ________ day of ____________________, 20____, personally b y _______________________________. ___________________________________ Notary Public (SEAL)Commission expires: ____________________________ EXHIBIT A to Heil Memorandum dated June 6, 2013 D-1 1001679.22 FINAL EXHIBIT D Prioritized Capital Projects Prioritized Capital Projects List Budgetary Cost Estimates Item Lot 1 East Beaver Creek Blvd. Lot 1 Main Street Lot 1 North/South Roads (2) Planning Area J (east) East/West Road General Conditions 750,000 715,000 560,000 280,000 Demolition 39,825 1,726,900 166,650 266,675 Earthwork 1,108,275 119,685 123,390 187,440 Roadway 1,630,990 1,349,930 393,310 719,465 Utilities 894,300 1,129,900 227,600 356,800 Erosion Control 27,000 27,000 16,600 9,500 Landscaping 340,238 311,890 128,800 180,050 Electrical & Lighting 347,280 289,400 115,760 185,216 Roundabouts 000 2,000,000 000 000 Subtotal 5,137,908 7,669,705 1,732,110 2,185,146 20% Contingency 1,027,582 1,533,941 346,422 437,029 Total 6,200,000 9,200,000 2,100,000 2,600,000 EXHIBIT A to Heil Memorandum dated June 6, 2013 E-1 1001679.22 FINAL EXHIBIT E Schedule of Past Developer Advances and Av on Receivable Priority of Repayment Contract Date Repayment Party Principal Amount Accrued Interest Total2 Developer Advances Amended and Restated Funding and Reimbursement Agreement1 05/08/2002 Traer Creek LLC $ 3,476,752 $ 2,457,459 $ 5,934,211 Facilities Acquisition Agreement3 05/29/2002 See Note 3 below 4,029,786 2,193,749 6,223,535 2003 Funding and Reimbursement Agreement, as amended03/25/2004 Traer Creek LLC 2,560,673 1,672,846 4,233,519 2006 Operation Funding Agreement 01/26/2006 Traer Creek LLC 576,310 249,048 825,358 2007 Operation Funding Agreement 11/30/2006 Traer Creek LLC 841,980 335,769 1,177,749 2008 Operation Funding Agreement 12/14/2007 Traer Creek LLC 279,116 88,079 367,195 2009 Operations Advance 12/14/2007 Traer Creek LLC 87,694 15,161 102,855 2010 Operations Advance 12/14/2007 Traer Creek LLC 122,743 10,188 132,931 2011 Operations Advance 12/14/2007 Traer Creek LLC 72,682 - 72,682 Total Developer advances 12,047,736 7,022,299 19,070,035 Avon Receivable 2008 Avon Receivable various see attached Town of Avon 482,642 - 482,642 2009 Avon Receivable various see attached Town of Avon 1,064,062 - 1,064,062 2010 Avon Receivable various see attached Town of Avon 1,126,649 - 1,126,649 2011 Avon Receivable various see attached Town of Avon 848,956 - 848,956 Total Avon receivable 3,522,309 - 3,522,309 Grand Total $ 15,570,045 $ 7,022,299 $ 22,592,344 1The net credit for amounts owed to the District by the Developer for Cable TV Filing 1; Utilities Filing 3; and the Parking Structure (645k) with accumulated interest that were in excess of the additional developer advances not captured above for the Dirt Removal Agreement ($417k)was applied against the accrued interest for the Amended and Restated Funding and Reimbursement Agreement 2All totals are as of December 31, 2011. 3The District's records reflect that the amount outstanding under the Facilities Acquisition Agreement are as follows: Traer Creek-RP LLC $ 2,440,000 $ 1,328,296 $ 3,768,296 Buffalo Ridge Affordable Housing Corporation, Buffalo Ridge II, LLLP 1,589,786 865,453 2,455,239 Total amount outstanding at December 31, 2011 $ 4,029,786 $ 2,193,749 $ 6,223,535 Repayment of amounts due under the Facilities Acquisition Agreement will be allocated equally (on a pari passu basis) as funds are available after reimbursement to Traer Creek LLC under the Amended and Restated Funding and Reimbursement Agreement dated May 8, 2002, as amended. EXHIBIT A to Heil Memorandum dated June 6, 2013 E-2 1001679.22 FINAL Priority of Repayment Date Obligation Was Incurred Repayment Party Principal Amount Accrued Interest Total 2 2002 Funding and Reimbursement Agreement 5/7/2002 Traer Creek LLC $ 3,476,752 $ 2,457,459 $ 5,934,211 2003 Funding and Reimbursement Agreement 9/17/2003 Traer Creek LLC 860,673 1,672,846 2,533,519 2003 Funding and Reimbursement Agreement 10/22/2003 Traer Creek LLC 500,000 - 500,000 2003 Funding and Reimbursement Agreement 11/30/2003 Traer Creek LLC 950,000 - 950,000 2003 Funding and Reimbursement Agreement 1/19/2004 Traer Creek LLC 250,000 - 250,000 Facilities Acquisition Agreement 3 3/10/2005 Traer Creek-RP LLC / Buffalo Ridge 4,029,786 2,193,749 6,223,535 2006 Operation Funding Agreement 4/18/2006 Traer Creek LLC 45,016 249,048 294,064 2006 Operation Funding Agreement 5/24/2006 Traer Creek LLC 227,197 - 227,197 2006 Operation Funding Agreement 8/9/2006 Traer Creek LLC 69,255 - 69,255 2006 Operation Funding Agreement 9/1/2006 Traer Creek LLC 66,832 - 66,832 2006 Operation Funding Agreement 9/19/2006 Traer Creek LLC 5,842 - 5,842 2006 Operation Funding Agreement 10/19/2006 Traer Creek LLC 30,922 - 30,922 2006 Operation Funding Agreement 11/22/2006 Traer Creek LLC 80,195 - 80,195 2006 Operation Funding Agreement 1/8/2007 Traer Creek LLC 15,505 - 15,505 2006 Operation Funding Agreement 1/8/2007 Traer Creek LLC 8,938 - 8,938 2006 Operation Funding Agreement 1/17/2007 Traer Creek LLC 26,608 - 26,608 2007 Operation Funding Agreement 7/20/2007 Traer Creek LLC 79,980 335,769 415,749 2007 Operation Funding Agreement 8/17/2007 Traer Creek LLC 165,980 - 165,980 2007 Operation Funding Agreement 10/3/2007 Traer Creek LLC 151,980 - 151,980 2007 Operation Funding Agreement 10/30/2007 Traer Creek LLC 152,000 - 152,000 2007 Operation Funding Agreement 12/14/2007 Traer Creek LLC 292,040 - 292,040 2008 Operation Funding Agreement 1/31/2008 Traer Creek LLC 13,168 88,079 101,247 2008 Operation Funding Agreement 2/28/2008 Traer Creek LLC 12,500 - 12,500 2008 Operation Funding Agreement 3/31/2008 Traer Creek LLC 12,500 - 12,500 2008 Operation Funding Agreement 4/30/2008 Traer Creek LLC 30,450 - 30,450 2008 Operation Funding Agreement 5/31/2008 Traer Creek LLC 30,450 - 30,450 2008 Operation Funding Agreement 6/30/2008 Traer Creek LLC 30,450 - 30,450 2008 Operation Funding Agreement 7/31/2008 Traer Creek LLC 30,450 - 30,450 2008 Operation Funding Agreement 8/31/2008 Traer Creek LLC 31,575 - 31,575 2008 Avon Receivable 9/1/2008 Town of Avon EA 46,813 - 46,813 2008 Avon Receivable 9/1/2008 Town of Avon MS 58,206 - 58,206 2008 Avon Receivable 9/1/2008 Town of Avon STSF 37,276 - 37,276 2008 Operation Funding Agreement 9/30/2008 Traer Creek LLC 30,450 - 30,450 2008 Avon Receivable 10/1/2008 Town of Avon EBC 58,206 - 58,206 2008 Avon Receivable 10/1/2008 Town of Avon MS 37,276 - 37,276 2008 Operation Funding Agreement 10/31/2008 Traer Creek LLC 30,450 - 30,450 2008 Avon Receivable 11/1/2008 Town of Avon MS 58,206 - 58,206 2008 Avon Receivable 11/1/2008 Town of Avon STSF 39,276 - 39,276 2008 Operation Funding Agreement 11/30/2008 Traer Creek LLC 12,500 - 12,500 2008 Avon Receivable 12/1/2008 Town of Avon EBC 49,901 - 49,901 2008 Avon Receivable 12/1/2008 Town of Avon MS 58,206 - 58,206 2008 Avon Receivable 12/1/2008 Town of Avon STSF 39,276 - 39,276 2008 Operation Funding Agreement 12/31/2008 Traer Creek LLC 14,173 - 14,173 2009 Avon Receivable 1/1/2009 Town of Avon MS 10,920 - 10,920 2009 Avon Receivable 1/1/2009 Town of Avon STSF 39,276 - 39,276 2009 Avon Receivable 2/1/2009 Town of Avon MS 10,920 - 10,920 2009 Avon Receivable 2/1/2009 Town of Avon STSF 39,276 - 39,276 EXHIBIT A to Heil Memorandum dated June 6, 2013 E-3 1001679.22 FINAL Priority of Repayment Date Obligation Was Incurred Repayment Party Principal Amount Accrued Interest Total 2 2009 Avon Receivable 3/1/2009 Town of Avon MS 10,920 - 10,920 2009 Avon Receivable 3/1/2009 Town of Avon STSF 39,276 - 39,276 2009 Avon Receivable 4/1/2009 Town of Avon MS 10,920 - 10,920 2009 Avon Receivable 4/1/2009 Town of Avon STSF 39,276 - 39,276 2009 Avon Receivable 5/1/2009 Town of Avon MS 48,407 - 48,407 2009 Avon Receivable 5/1/2009 Town of Avon STSF 39,276 - 39,276 2009 Avon Receivable 6/1/2009 Town of Avon MS 48,407 - 48,407 2009 Avon Receivable 6/1/2009 Town of Avon STSF 39,276 - 39,276 2009 Avon Receivable 7/1/2009 Town of Avon MS 48,407 - 48,407 2009 Avon Receivable 7/1/2009 Town of Avon STSF 39,276 - 39,276 2009 Avon Receivable 8/1/2009 Town of Avon MS 48,407 - 48,407 2009 Avon Receivable 8/1/2009 Town of Avon STSF 186,467 - 186,467 2009 Avon Receivable 9/1/2009 Town of Avon MS 48,407 - 48,407 2009 Avon Receivable 9/1/2009 Town of Avon STSF 54,098 - 54,098 2009 Avon Receivable 9/1/2009 Town of Avon EBC 48,897 - 48,897 2009 Avon Receivable 10/1/2009 Town of Avon MS 48,407 - 48,407 2009 Avon Receivable 10/1/2009 Town of Avon STSF 54,098 - 54,098 2009 Avon Receivable 11/1/2009 Town of Avon MS 3,251 - 3,251 2009 Avon Receivable 11/1/2009 Town of Avon STSF 54,098 - 54,098 2009 Avon Receivable 12/1/2009 Town of Avon MS - - - 2009 Avon Receivable 12/1/2009 Town of Avon STSF 54,099 - 54,099 2009 Operations Advance 12/31/2009 Traer Creek LLC 87,694 15,161 102,855 2010 Avon Receivable 1/1/2010 Town of Avon MS 42,204 - 42,204 2010 Avon Receivable 1/1/2010 Town of Avon STSF 54,098 - 54,098 2010 Avon Receivable 2/1/2010 Town of Avon MS 42,204 - 42,204 2010 Avon Receivable 2/1/2010 Town of Avon STSF 54,098 - 54,098 2010 Avon Receivable 3/1/2010 Town of Avon MS 42,204 - 42,204 2010 Avon Receivable 3/1/2010 Town of Avon STSF 54,098 - 54,098 2010 Avon Receivable 4/1/2010 Town of Avon MS 42,204 - 42,204 2010 Avon Receivable 4/1/2010 Town of Avon STSF 54,098 - 54,098 2010 Avon Receivable 5/1/2010 Town of Avon MS 42,204 - 42,204 2010 Avon Receivable 5/1/2010 Town of Avon STSF 54,098 - 54,098 2010 Avon Receivable 6/1/2010 Town of Avon MS 42,204 - 42,204 2010 Avon Receivable 6/1/2010 Town of Avon STSF 54,098 - 54,098 2010 Avon Receivable 7/1/2010 Town of Avon MS 42,204 - 42,204 2010 Avon Receivable 7/1/2010 Town of Avon STSF 54,098 - 54,098 2010 Avon Receivable 8/1/2010 Town of Avon MS 42,204 - 42,204 2010 Avon Receivable 8/1/2010 Town of Avon STSF 92,181 - 92,181 2010 Avon Receivable 9/1/2010 Town of Avon MS 42,204 - 42,204 2010 Avon Receivable 9/1/2010 Town of Avon STSF 56,403 - 56,403 2010 Avon Receivable 10/1/2010 Town of Avon MS 42,204 - 42,204 2010 Avon Receivable 10/1/2010 Town of Avon STSF 56,403 - 56,403 2010 Avon Receivable 11/1/2010 Town of Avon MS 8,126 - 8,126 2010 Avon Receivable 11/1/2010 Town of Avon STSF 56,403 - 56,403 2010 Avon Receivable 12/1/2010 Town of Avon MS - - - 2010 Avon Receivable 12/1/2010 Town of Avon STSF 56,407 - 56,407 2010 Operations Advance 12/31/2010 Traer Creek LLC 122,743 10,188 132,931 2011 Avon Receivable 1/1/2011 Town of Avon MS 29,725 - 29,725 2011 Avon Receivable 1/1/2011 Town of Avon STSF 56,403 - 56,403 EXHIBIT A to Heil Memorandum dated June 6, 2013 E-4 1001679.22 FINAL Priority of Repayment Date Obligation Was Incurred Repayment Party Principal Amount Accrued Interest Total 2 2011 Avon Receivable 2/1/2011 Town of Avon MS 29,725 - 29,725 2011 Avon Receivable 2/1/2011 Town of Avon STSF 56,403 - 56,403 2011 Avon Receivable 3/1/2011 Town of Avon MS 29,725 - 29,725 2011 Avon Receivable 3/1/2011 Town of Avon STSF 56,403 - 56,403 2011 Avon Receivable 4/1/2011 Town of Avon MS 29,725 - 29,725 2011 Avon Receivable 4/1/2011 Town of Avon STSF 56,403 - 56,403 2011 Avon Receivable 5/1/2011 Town of Avon MS 29,725 - 29,725 2011 Avon Receivable 5/1/2011 Town of Avon STSF 56,403 - 56,403 2011 Avon Receivable 6/1/2011 Town of Avon MS 29,725 - 29,725 2011 Avon Receivable 6/1/2011 Town of Avon STSF 56,403 - 56,403 2011 Avon Receivable 7/1/2011 Town of Avon MS 29,725 - 29,725 2011 Avon Receivable 7/1/2011 Town of Avon STSF 56,403 - 56,403 2011 Avon Receivable 8/1/2011 Town of Avon MS 29,725 - 29,725 2011 Avon Receivable 8/1/2011 Town of Avon STSF 42,721 - 42,721 2011 Avon Receivable 9/1/2011 Town of Avon MS 29,724 - 29,724 2011 Avon Receivable 9/1/2011 Town of Avon STSF 57,082 - 57,082 2011 Avon Receivable 10/1/2011 Town of Avon MS 29,724 - 29,724 2011 Avon Receivable 10/1/2011 Town of Avon STSF 57,084 - 57,084 2011 Operations Advance 12/31/2011 Traer Creek LLC 72,682 - 72,682 Grand Total $ 15,570,045 $ 7,022,299 $ 22,592,344 EXHIBIT A to Heil Memorandum dated June 6, 2013 F-1 1001679.22 FINAL EXHIBIT F Definitions 1.Accept(ed)/Acceptance means the Town’s acceptance of Dedicated real property interests and Public Improvements located therein for purposes of ownership and maintenance, consisting of Preliminary Acceptance followed by Final Acceptance and accomplished in accordance with the procedures set forth in Section 7.32.100 of the Municipal Code (as in effect from time to time)as modified and or exempted by the Development Plan; subject, however, to the terms and conditions of Section 4.2(d)regarding asphalt overlays. 2.Accommodations/Lodging Fee means the Credit PIF imposed pursuant to the PIF Covenants on accommodations/lodging transactions occurring within the Project which, subject to application of the Ta x Credit, are Ta xable Tr ansactions. The Accommodations/Lodging Fee shall be construed to be part of a Ta xable Tr ansaction, and shall be subject to the To wn’s tax on accommodations/lodging transactions. 3.Additional Developer Advances means funds advanced after the Effective Date for Capital Project Costs by Master Developer, EMD, a Developer Affiliate or another Landowner to or on behalf of TCMD or another District (whether the corresponding Capital Projects are undertaken directly by such District or acquired by such District after construction by the party entitled to reimbursement for the costs thereof), which advances are subject to reimbursement by such District utilizing Credit PIF Revenues, together with simple interest at a rate equal to the Municipal Market Data rate (or, if the foregoing index is no longer published,then the Bond Bu yer Revenue Bond index rate), for a term most closely related to the term of the particular Additional Developer Advance being made,for Baa investment grade bonds on the date of such advance plus 375 basis points, and which are secured by such District’s issuance of an instrument (note, bond, funding/reimbursement agreement or similar form of instrument) evidencing such District’s financial obligation to repay such advances; provided, however, that Master Developer’s contributions to the Asphalt Overlay Account pursuant to Section 6.6(a)(iv) shall be construed to be Additional Developer Advances only to the extent reimbursable from a District using Credit PIF Revenues. 4.Add-On PIF means that portion of the Public Im provement Fees with respect to which the Ta x Credit does not apply or attach. As of the Effective Date, the Add-On PIF consists only of the Add-On RSF, although the PICs may, in accordance with the PIF Covenants, elect in the future to impose the Add-On PIF on other types of transactions and/or at a rate in excess of the Add-On RSF rate required by this Development Agreement. 5.Add-On PIF Revenues means the gross revenues actually collected from imposition of the Add-On PIF in accordance with the PIF Covenants, which may consist of Add-On RSF Revenues, Municipal Payments and other revenues derived from imposition of the Add-On PIF on transactions other than retail sales that are Ta xable Transactions or at rates in excess of the Add-On RSF rate. 6.Add-On RSF means the imposition of the Add-On PIF only to retail sales transactions that are Ta xable Transactions at the rate set forth in Section 6.4(b)and in accordance with the terms and conditions of the Financing Plan. EXHIBIT A to Heil Memorandum dated June 6, 2013 F-2 1001679.22 FINAL 7.Add-On RSF Collection Agent means Special District Management Services, Inc., or any successor entity engaged from time to time,to administer the collection and distribution of the Add-On RSF Revenues on behalf of the PICs. 8.Add-On RSF Collection Services Agreement(s)means one or more agreements entered into from time to time by and between the PICs, the To wn and the Add-On RSF Collection Agent providing for the administration,collection and distribution of the Add-On RSF Revenues. 9.Add-On RSF Revenues means the gross revenues actually collected from imposition of the Add-On RSF in accordance with Section 6.5, a portion of which shall be Municipal Payments to be remitted to the Town during the Term as set forth in Section6.5 and the remainder of which (including any such revenues the PICs continue to collect after the Te rm) shall be utilized for other lawful purposes otherwise authorized by the PIF Covenants. 10.Allowed O&M Expenses means the amount of District Revenues to be remitted to and retained by TCMD in each calendar year during the Term for payment of: (i)TCMD’s annual contribution to the Asphalt Overlay Account; (ii) the Annual Debt Service Obligation; and (iii)the annual Base O&M Amount. For each full calendar year during the Term, the Allowed O&M Expenses (in each case, to be reduced in an amount equal to the amount, if any, by which the Annual Debt Service Obligation is less than $500,000 per year)shall be: (A) for calendar years 2013 through 2017, $1,000,000 (One Million Dollars); (B) for calendar year 2018 and each subsequent calendar ye ar including the calendar year in which the Town assumes sole responsibility for all costs of asphalt overlays in accordance with Section 6.6(b), $1,025,000 (One Million Twenty-Five Thousand Dollars); and (C)for each calendar ye ar after the year in which the Town assumes sole responsibility for all costs of asphalt overlays in accordance with Section 6.6(b), $950,000 (Nine Hundred Fift y Thousand Dollars) per year. 11.Annual Debt Service Obligation has the meaning and is subject to the terms, conditions, restrictions and requirements set forthin the Pledge Agreement. 12.Applicant means the Landowner of the real property comprising the Site for which a Development Application is submitted, or an individual or entity whom the Landowner has designated in writing as its authorized representative for the purpose of representing the Landowner and/or acting upon any Development Application or submittal for development of the pertinent Site (which may be a contract purchaser or owner of an option to purchase fee simple ownership of the Site or portion thereof with the fee owner’s written consent to any such application or submittal, or which may be an owners’association for a condominium project or like common interest ownership project). Notwithstanding any additional or conflicting provision of the Municipal Code (whether as in effect on the Execution Date or as amended from time to time), the definition of “Applicant” shall not be construed to mean any person or entity owning, holding or possessing an easement interest, a leasehold interest, a license,a security interest or an y other form of interest in the Site, whether possessory or otherwise, other than fee simple ownership of the Site as reflected in the official records of the Eagle County Ta x Assessors office. 13.Approved SSDP(s)means, individually or collectively: (i) the Development Agreement; (ii) the PUD Guide; and; (iii) Development Applications (if any) that, after the Effective Date, EXHIBIT A to Heil Memorandum dated June 6, 2013 F-3 1001679.22 FINAL To wn Council approves (or otherwise approved by the To wn including, for example, an administratively approved final plat, an administratively approved amendment to the PUD Guide or similar previously approved Site Specific Development Plan) and designates as a Site Specific Development Plan that establishes Ve sted Property Rights, together with amendments (if any) to such approved Development Applications. 14.Article refers to a numbered Article of the Development Agreement, unless otherwise stated. 15.Asphalt Overlay Agreement means that certain Asphalt Overlay Escrow Account Agreement entered into concurrently with the Effective Date by and among the To wn, TCMD and First Bank, Avon Branch and which establishes the terms and conditions upon which funds shall be deposited into, held in escrow, and disbursed from the Asphalt Overlay Account as generally provided in Section 6.6. 16.Asphalt Overlay Account means a restricted escrow account established pursuant to the Asphalt Overlay Agreement into which Master Developer, the To wn and TCMD shall deposit funds for asphalt overlays of public roads in the Project in accordance with the terms and conditions set forth in Sections 4.2(d), 5.1(a), 5.2(c), 5.3(a), 6.5(a)(ii)and 6.6. 17.AURA means the Av on Urban Renewal Authority, a body corporate duly organized and existing as an urban renewal authority under the laws of the State of Colorado. 18.Authority means the Upper Eagle Regional Wa ter Authority, a quasi-municipal corporation and political subdivision of the State of Colorado, together with any successor water service provider (whether pursuant to dissolution of the Authority or otherwise). 19.Avon Receivable means TCMD’s past due payment obligation to the Town in the principal amount of $3,522,309.08 (THREE MILLION, FIVE HUNDRED TWENTY TWO THOUSAND, THREE HUNDRED NINE DOLLARS AND EIGHT CENTS), together with interest thereon as provided in Section 6.9(b)(v)(B)3.II (such principal amount inclusive of $98,798.46 of expenses incurred by the Town in connection with design work for the East Beaver Creek Boulevard Phase 3 obligation as defined in the Original Agreement, which East Beaver Creek Boulevard Phase 3 obligation is extinguished by this Development Agreement). 20.Base O&M Amount means the amount of District Revenues available each year for TCMD’s payment of ongoing operation, maintenance, administrative and other legally authorized costs, which amount shall be equal to that portion of the total Allowed O&M Expenses which is the remainder of the total Allowed O&M Expenses for such year after subtracting: (i) the Annual Debt Service Obligation; and (ii) TCMD’s contribution to the Asphalt Overlay A ccount. 21.BNP means BNP Paribas, an international bank, together with its successors and assigns. 22.Bond Requirements means the following costs incurred in connection with the issuance of any District Debts other than principal payments (including mandatory sinking fund payments): (a)interest payments on the outstanding principal of District Debts; (b)payments to replenish bond reserve accounts, provided that a bond reserve for any District Debts shall not EXHIBIT A to Heil Memorandum dated June 6, 2013 F-4 1001679.22 FINAL exceed maximum annual debt service on such District Debts; (c)periodic fees related to credit enhancements (including, without limitation, the Deferred Fees, if any);(d)prepayment premiums; (e)arbitrage rebate payments;(f)fees and expenses of any bond trustee, bond registrar, paying agent, authenticating agent, rebate analyst or consultant, calculation agent, remarketing agent;(g)payments to any rating agency for maintaining a rating on the District Debt;(h)payments due to any provider of an interest rate swap or interest rate cap;and (i)any other amount approved by the Town. Notwithstanding the foregoing, Bond Requirements on the Wa ter Ta nk Bonds shall be limited as provided in the Pledge Agreement. Bond Requirements does not include any such costs which are capitalized and paid with the Net Proceeds of District Debts. 23.Cap Amounts has the meaning set forth in Section 6.2(b). 24.Capital Projects means: (i) Public Improvements required by the Town as a condition of approving a Development Application (for example, public streets; wet utilities such as water, sewer, storm drainage; related grading and landscaping, etc.), and specifically including the Prioritized Capital Projects; and (ii) even if not specifically required as a condition of approving a Development Application, Public Improvements that serve or benefit the Project and which are eligible to be financed by the Districts and/or AURA under applicable laws. 25.Capital Project Costs means all costs and expenses incurred in connection with the design and construction of Capital Projects, including but not limited to design, engineering, surveying, soils testing, geologic hazard analysis, traffic studies, legal and other professional consultant fees, and application and permit fees related thereto, but not including, if any,Bond Requirements or an y costs described in the first sentence of the definition of Bond Requirements which are capitalized and incurred in connection with issuance of District Debts with respect to such Capital Projects. 26.Commercial PIC means The Village (at Avon) Commercial Public Im provement Company, a Colorado non-profit corporation. 27.Credit PIF means, collectively, the Real Estate Transfer Fee, the Accommodations/Lodging Fee and the Retail Sales Fee with respect to each of which the Ta x Credit applies and attaches in accordance with Section 6.1, as implemented by Sections 3.08.035 (with respect to sales tax), 3.12.065 (with respect to real estate transfer tax) and 3.28.075 (with respect to public accommodations tax) of the Municipal Code (as in effect on the Execution Date), and a building materials use fee if adopted in accordance with Section 6.4(a)(iv). 28.Credit PIF Cap has the meaning set forth in Section 6.2(b). 29.Credit PIF Collection Agent means Special District Management Services, Inc., or an y successor entity engaged from time to time,to administer the collection and distribution of the Credit PIF Revenues on behalf of the PICs. 30.Credit PIF Collection Services Agreement(s)means one or more agreements between the Credit PIF Collection Agent, the PICs, Master Developer and TCMD providing for the administration,collection and distribution of the Credit PIF Revenues. EXHIBIT A to Heil Memorandum dated June 6, 2013 F-5 1001679.22 FINAL 31.Credit PIF Revenues means the gross revenues actually collected from imposition of the Credit PIF. 32.Debt Service Coverage Ratio means, for any calendar year until there are no outstanding obligations to BNP under the TCMD Reissue Documents or any subsequent reissue or refunding of such bonds, the Net Revenue received by or on behalf of both Districts during such period divided by Debt Service for such year. For the purposes of calculating the Debt Service Coverage Ratio: (a)“Net Revenue” means, for each such calendar year, that portion of the total of all District Revenues received by the Districts which is the remainder of the total of all such District Revenues received in such year minus: (i) TCMD’s annual contribution to the Asphalt Overlay Account; (ii) the annual Base O&M Amount; (iii) proceeds from Additional Developer Advances; and (iv) Net Proceeds from Supplemental Bonds (other than Additional Developer Advances). (b)“Debt Service” means, for any such calendar year, the sum of the amounts to be paid or deposited for the purpose of paying, pursuant to the requirements of the documents under which such obligations are issued: (i) principal, interest and any other Bond Requirements due in such year on (A)the TCMD Bond Reissue and (B)Supplemental Bonds; plus (ii) the Annual Debt Service Obligation; plus (iii) the Deferred Amortization and Deferred Fee amounts due in such year (which shall be a cumulative total of the Deferred Amortization and Deferred Fee due from prior years, if any, and the current year). 33.Dedicate(d)/Dedication means the conveyance, whether by plat or by special warranty deed in the form attached as Exhibit B, to the To wn or other appropriate governmental or quasi- governmental entity of real property for a specified purpose, together with Public Improvements installed thereupon, if any, free and clear of all monetary liens and those non-monetary encumbrances that are not materially inconsistent with the purpose(s) for which To wn or other governmental or quasi-governmental entity is acquiring the real property and related Public Improvements. 34.Deferred Amortization means, (i) in any year until there are no outstanding obligations to BNP under the TCMD Reissue Documents or any subsequent reissue or refunding of such bonds, the difference between the principal amount due on the TCMD Bond Reissue and the principal amount that was due in that year under the financing documents governing the TCMD Variable Rate Revenue Bonds, Series 2002 or the TCMD Variable Rate Revenue Bonds, Series 2004, as applicable; and (ii) as of any date of computation, the sum of all amounts determined as set forth in clause (i), for years prior to and including (but not subsequent to) the date of computation, that have not been paid as of that date. 35.Deferred Fees means, until there are no outstanding obligations to BNP under the TCMD Reissue Documents or any subsequent reissue or refunding of such bonds, any Facility Fees (as defined in the Reimbursement Agreement between TCMD and BNP entered into in connection with the TCMD Bond Reissue) that are not required to be paid when accrued in accordance with the terms of the Reimbursement Agreement, including interest thereon calculated at the rate of 2.5% per annum. EXHIBIT A to Heil Memorandum dated June 6, 2013 F-6 1001679.22 FINAL 36.Design Covenant means the Declaration of Master Design Review Covenants For The Village (at Avon) dated May 8, 2002 and Recorded on May 8, 2002 at Reception No. 795011, as amended by the First Amendment to Declaration of Master Design Review Covenants For The Village (at Avon) dated June 4, 2008 and Recorded on June 10, 2008 at Reception No. 200812112 and by the Second Amendment and Ratified First Amendment to Declaration of Master Design Review Covenants For The Village (at Avon) dated September 16, 2010 and Recorded on September 16, 2010 at Reception No. 201018341, and as may be further amended from time to time. 37.Design Review Board means The Village (at Avon) Design Review Board as appointed or elected in accordance with the Design Covenant. 38.Design Review Guidelines means the sole and exclusive architectural design, landscape design, urban design and Site design and use standards applicable within the Property as set forth in The Village (at Avon) Design Review Guidelines with an effective date of March 15, 2011, together with any amendment(s) the Design Review Board may approve after providing notice thereof in accordance with Section3.1, as prepared, approved and promulgated by the Design Review Board from time to time. 39.Developer(s)means, with respect to any Site, the individual or entity which is causing the development of infrastructure and/or or vertical improvements within such Site to be performed. 40.Developer Affiliate(s)means, individually or collectively as the context dictates, TC-RP, TC Plaza, TC-HD and TC-WMT, together with any other entity with respect to which TCLLC or EMD is the managing member and which acquires title to any portion of the Property after the Execution Date. 41.Development Agreement has the meaning set forth in the initial paragraph of the Consolidated, Amended and Restated Annexation and Development Agreement for The Vi llage (at Av on) to which this Exhibit Fis attached and incorporated into. 42.Development Application means any form of application or submittal to the To wn for review and approval of any form of development within the Property, including but not limited to an application or submittal regarding an amendment to the PUD Guide, an amendment to the PUD Master Plan, a preliminary subdivision plan, a final subdivision plat, a grading permit, a building permit or similar matters. 43.Development Plan means, collectively: (a)the Development Agreement; and (b)the PUD Guide. 44.District(s)means, individually or collectively as the context dictates,TCMD, VMD and any additional metropolitan district(s) that may be formed subsequent to the Execution Date for the purpose of providing services and/or Public Improvements and or other forms of improvements benefiting all or any portion of the Property. EXHIBIT A to Heil Memorandum dated June 6, 2013 F-7 1001679.22 FINAL 45.District Debts means, collectively, the following financial obligations of TCMD (and any refunding thereof accomplished in accordance with the Development Agreement), the full payment of which shall result in expiration of the Term (unless the Town elects to continue the Tax Credit pursuant to Section 6.1(d)): (i) the principal and Bond Requirements of the obligations described in subsections (i), (ii), (iii) and (iv) of Section 6.2(b); and (ii) the Deferred Amortization. 46.District Director(s)means, individually or collectively, the individuals who from time to time hold a seat on the board of directors of a District. 47.District Revenues means, collectively, the Credit PIF Revenues, the Project Ad Valorem Taxes (and related specific ownership taxes), proceeds of Supplemental Bonds (other than Additional Developer Advances), proceeds from Additional Developer Advances and any other lawful revenues of the Districts, including but not limited to revenues from service charges, development fees, impact fees, tap fees (net of amounts required to be remitted to Eagle-Vail Metropolitan District)or similar sources of revenue to the Districts, if any. 48.Effective Date means the date on which the Development Agreement is Recorded. 49.EMD means EMD Limited Liability Company, a Colorado limited liability company. 50.Execution Date has the meaning set forth in the initial paragraph of the Development Agreement. 51.Exhibit means the following exhibits to the Development Agreement, all of which are incorporated by reference into and made a part of the Development Agreement: Exhibit A-Legal Description of Property Exhibit B -Form of Special Warranty Deed for Conveyances to the To wn Exhibit C -Form of Covenant and Temporary Easement Agreement Exhibit D -Prioritized Capital Projects Exhibit E-Schedule of Past Developer Advances and Av on Receivable Exhibit F-Definitions 52.Final Acceptance means the Town’s undertaking of full responsibility for all operations maintenance, repair, and capital replacement obligations (including but not limited to maintenance and snow removal of roadways, water and sewer lines, storm drainage improvements, maintenance of streetscape improvements within the Dedicated rights-of-way, management of noxious weeds and similar matters in accordance with To wn’s generally applicable procedures and standards)with respect to Dedicated Public Improvements upon expiration of the warranty period and resolution of any warranty matters arising during the period of Preliminary Acceptance; subject, however, to the terms and conditions of Section 4.2(d)regarding asphalt overlays. EXHIBIT A to Heil Memorandum dated June 6, 2013 F-8 1001679.22 FINAL 53.Financing Plan means the arrangements, obligations and rights set forth in Article 6 with respect to the financing of Capital Projects and other Public Improvements in the manner and for the purposes described in the Development Agreement. 54.Forest Service Village Parcel means that parcel of land located between Planning Areas I and J which, as of the Execution Date, is owned by the U.S. Forest Service. 55.Intended Beneficiary(ies)means, as more particularly described in and subject to the terms and limitations of Section 1.8(b), BNP, VMD, Developer Affiliates and Landowners other than those who are Parties. No other party or entity shall be construed to be an intended beneficiary or to have any legal right to enforce or rely on any provision, obligation, term or condition of the Development Agreement. 56.Landowner(s)means the fee owner of any real property comprising the Property or any portion thereof. 57.Lender(s)means those entities having a security interest in any portion of the Property as of the Execution Date and which have executed the Acknowledgement and Consent form attached to and incorporated within the Development Agreement. 58.Limited Party(ies)means, individually or collectively as the context dictates and as more particularly described in and subject to the terms and limitations of Section 1.8(a), AURA, EMD, the Commercial PIC and the Mixed-Use PIC. 59.Litigation has the meaning set forth in Recital H. 60.Lot 1 means Lot 1, Amended Final Plat, The Village (at Avon) Filing 1, according to the plat thereof Recorded at Reception No. 898173, and amended by The Second Amended Final Plat, Amended Final Plat, The Village (at Avon) Filing 1, a Resubdivision of Lot 1 (as Recorded on the Effective Date). 61.Master Developermeans EMD (with respect to Planning Area I only) and TCLLC (in all other respects), which entities (or any successor entities), as more specifically described in Section1.7, are designated and authorized to act on behalf of all Developer Affiliates. 62.Mixed-Use PIC means The Village (at Avon) Mixed-Use Public Improvement Company, a Colorado non-profit corporation. 63.Municipal Code means the To wn’s municipal code as in effect from time to time unless otherwise stated in the Development Agreement. 64.Municipal Payment(s)means, as more particularly described in Sections 6.4(b)and 6.5 and in implementation of the Settlement Term Sheet, that portion of the Add-On RSF Revenues (net of the costs of collection as set forth in the Add-On RSF Collection Services Agreement) derived from application of the Add-On RSF to retail sales transactions only (and not to any other Taxable Transactions) which the Town requires to provide a reliable revenue source with growth potential to compensate the Town, and which the Town is entitled to receive, for: (i)providing Municipal Services (whether prior to or after the Effective Date); (ii) releasing EXHIBIT A to Heil Memorandum dated June 6, 2013 F-9 1001679.22 FINAL TCMD (and all other parties to the Litigation) from the sales tax indemnity obligations (as such obligations were set forth in the Original Agreement); and (iii)assuming TCMD’s maintenance obligations pursuant to Section 4.2(c). 65.Municipal Services has the meaning set forth in Section 4.1. 66.Net Proceeds has the following meanings:(i) for the Water Tank Bonds, the amount of bond proceeds available for payment of Capital Project Costs;(ii) for Past Developer Advances and any Additional Developer Advances, the full amount of the advances made to TCMD or another District for Capital Project Costs; and (iii) for Supplemental Bonds issued in the form of obligations other than Additional Developer Advances, the Total Repayment Cost Comparison amount calculated as follows: (A)if the Total Repayment Cost Comparison amount is a positive number, the Net Proceeds of such Supplemental Bonds shall be defined as the amount that is equal to the amount of the proceeds available from such Supplemental Bonds for payment of Capital Project Costs; and (B)if the Total Repayment Cost Comparison amount is a negative number, the Net Proceeds of such Supplemental Bonds shall defined as the amount that is equal to the sum of the amount of bond proceeds available from such Supplemental Bonds for payment of Capital Project Costs plus the Total Repayment Costs Comparison amount expressed as a positive number. 67.Non-Cap Amounts has the meaning set forth in Section 6.2(c). 68.Original Agreement means that certain Annexation and Development Agreement executed by and between the Town and the Original Owners as of October 13, 1998 and Recorded on November 25, 1998 at Reception No. 67774, as amended by: (i) pursuant to Ordinance 01-16, the First Amendment to Annexation and Development Agreement dated as of November 13, 2001, and Recorded on December 10, 2001 at Reception No. 779049; (ii) pursuant to Ordinance 03-08, the Second Amendment to Annexation and Development Agreement dated as of May 27, 2003, and Recorded on July 30, 2003 at Reception No. 842248; and (iii) pursuant to Ordinance 04-17, the Third Amendment to Annexation and Development Agreement dated as of October 26, 2004, and Recorded on December 22, 2004 at Reception No. 901429. 69.Original Effective Date means October 13, 1998. 70.Original Owners means EMD, PVRT NOTT I LLC, a Colorado limited liability company, PVRT NOTT II LLC, a Colorado limited liability company, and PVRT NOTT III LLC, a Colorado limited liability company, which entities owned the Property as of the execution date of and were defined as “Owners” in the Original Agreement (TCLLC being the successor entity to the PVRT entities as described in the Third Amendment of the Original Agreement). 71.Original PUD Guide means The Village (at Avon) PUD Guide dated October 13, 1998 and recorded in the real property records of Eagle County, Colorado, on November 25, 1998 at Reception No. 677744, as amended by: (i) PUD Development Plan Administrative Amendment No. 1 (amending the PUD Master Plan only), dated May 21, 2001, and recorded in the real propert y records of Eagle County, Colorado, on July 31, 2001 at Reception No. 763439; EXHIBIT A to Heil Memorandum dated June 6, 2013 F-10 1001679.22 FINAL (ii)PUD Guide Administrative Amendment No. 2, dated February 13, 2002, and recorded in the real property records of Eagle County, Colorado, on February 29, 2002 at Reception No. 786254; (iii)PUD Guide Administrative Amendment No. 3, dated May 15, 2002, and recorded in the real property records of Eagle County, Colorado, on May 15, 2001 at Reception No. 795806; (iv)PUD Guide Administrative Amendment No. 4, dated May 15, 2002, and recorded in the real property records of Eagle County, Colorado, on May 15, 2002 at Reception No. 795805; and (v)Formal Amendment Number One to The Village (at Avon) PUD Guide, dated January 25, 2007, and recorded in the real property records of Eagle County, Colorado, on March 2, 2007 at Reception No. 200705491. 72.Party(ies)means, individually or collectively as the context dictates, the To wn, TCMD and Master Developer. 73.Past Developer Advance(s)means, collectively and as more specifically set forth in Exhibit E, the following TCMD obligations incurred prior to the Effective Date: (i) the principal payable to certain of the Developer Affiliates, together with interest thereon at the rate set forth in the documents creating such obligations; and (ii) the principal balance payable to the Buffalo Ridge Affordable Housing Corporation, together with interest thereon at the rate set forth in the documents creating such obligation 74.Permitted Uses has the meaning set forth in Section 6.2(a). 75.PIC(s)means, individually or collectively as the context dictates, the Commercial PIC and/or the Mixed-Use PIC and/or any other public improvement company established for the Property from time to time. 76.PIF Covenants means, collectively and as amended from time to time (specifically including those amendments to be Recorded contemporaneously with the Effective Date), the Declaration of Covenants for The Village (at Avon) Commercial Areas Recorded May 8, 2002 at Reception No. 795012 and the Declaration of Covenants for The Village (at Avon) Mixed Use Areas Recorded May 8, 2002 at Reception No. 795013. 77.Planning Area(s)means the portion(s)of the Property described in the PUD Guide and depicted in the PUD Master Plan as “Planning Areas” or identified therein as “PA -[x].” 78.Pledge Agreement means that certain Water Tank Bonds Pledge Agreement made and entered into by and among TCMD, VMD and the Authority, and having an effective date concurrent with the Effective Date. 79.Preliminary Acceptance means the Town’s Acceptance of ownership of Dedicated Public Improvements (including real property interests and/or improvements constructed thereupon) and undertaking of full responsibility for all operations maintenance, repair and capital replacement obligations (including but not limited to maintenance and snow removal of roadways, water and sewer lines, storm drainage improvements, maintenance of streetscape improvements within the Dedicated rights-of-way, management of noxious weeds and similar matters in accordance with To wn’s generally applicable procedures and standards)with respect to Dedicated Public Improvements, subject to the warranty period (as set forth in the Municipal Code as in effect from time to time) and the applicable Developer’s or District’s resolution of EXHIBIT A to Heil Memorandum dated June 6, 2013 F-11 1001679.22 FINAL any warranty matters arising during such period of Preliminary Acceptance; subject, however, to the terms and conditions of Section 4.2(d)regarding asphalt overlays. 80.Prioritized Capital Projects has the meaning set forth in Section 3.10. 81.Project means the mixed-use project proposed to be developed on the Property with the uses, densities and development standards more particularly described in the Development Plan. 82.Project Ad Va lorem Ta xes means the tax revenues resulting from imposition of the respective mill levies of TCMD and VMD, net of the costs of collection retained by the Eagle County treasurer. 83.Property has the meaning set forth in Recital B. 84.Public Improvement(s)has the meaning ascribed to such term in the PUD Guide, and includes but is not limited to all such improvements specifically or generally described in the Service Plans. 85.Public Improvement Agreement(s)means a public improvement agreement (as such term generally is used in Section 7.32.100 of the Municipal Code (as in effect from time to time), subject to the terms and conditions of the Development Plan modifying and/or exempting application of said Section 7.32.100) that is executed, either prior or subsequent to the Effective Date, in connection with the proposed development of a portion of the Property. 86.Public Improvement Fee(s)means the Credit PIF, the Add-On RSF and any future Add-On PIF other thanthe Add-On RSF, which are privately imposed fees (and not taxes) imposed on Taxable Transactions (and such other transactions as may be set forth in the PIF Covenants from time to time) in accordance with the terms and conditions of the PIF Covenants and the Development Agreement. 87.PUD Master Plan means The Vi llage (at Av on) P.U.D. Development Plan/Sketch Plan dated November 7, 2012, attached as Exhibit B of the PUD Guide, as amended from time to time, which constitutes the approved sketch plan and master plan for development within the Property. 88.PUD Guide means the Amended and Restated PUD Guide for the Property (and all exhibits thereto, including but not limited to the PUD Master Plan)dated November 7, 2012, as amended from time to time. 89.Real Estate Transfer Fee means the Credit PIF imposed pursuant to the PIF Covenants on real estate transfer transactions occurring within the Project which, subject to application of the Ta x Credit, are Ta xable Tr ansactions. The Real Estate Tr ansfer Fee shall not be construed to be part of a Ta xable Tr ansaction, and shall not be subject to the To wn’s tax on real estate transfer transactions. 90.Recital(s)means, individually or collectively as the context dictates, the information set forth in the provisions of the “Recitals” section of the Development Agreement. EXHIBIT A to Heil Memorandum dated June 6, 2013 F-12 1001679.22 FINAL 91.Record(ed/ing)means to file, having been filed or appearing in the real property records of the Eagle County Clerk and Recorder’s office. 92.Replacement Bonds means bonds that TCMD may issue after the Effective Date for the purpose of extinguishing, replacing, refunding or defeasing all or portions of the Past Developer Advances which: (i) bear a lower effective interest rate than the effective interest rate of the Past Developer Advances, (ii) are not secured by (and cannot be paid from) Credit PIF Revenues; and (iii)unless otherwise agreed to by the Town in writing, do not exceed a par value of $12.4 million in principal; and (iv) do not result in an increase of, or count against, the Credit PIF Cap. 93.Retail Sales Fee means the Credit PIF imposed pursuant to the PIF Covenants on retail sales transactions occurring within the Project which, subject to application of the Tax Credit, are Ta xable Transactions and,pursuant to Section 6.4(a)(iv), shall be imposed on the use of building materials within the Project to the extent the To wn in the future enacts a municipal use tax on building materials. 94.Revocable License Agreement means that certain Revocable Li cense Agreement for Snow Storage executed concurrently with the Effective Date by and among EMD-CM LLC, a Colorado limited liability company, TC-RP (such entities being assignees of Master Developer’s rights pursuant to Section 3.7(b)) and the Town,with respect to the rights and obligations of the parties thereto regarding the use of Planning Area B (i.e., Lot 2, The Second Amended Final Plat, Amended Final Plat, The Village (at Avon) Filing 1, a Resubdivision of Lot 1 (as Recorded on the Effective Date))for snow storage. 95.Sanitation District means the Eagle River Water & Sanitation District. 96.School Sites Dedicationhas the meaning set forth in Section 3.7(a). 97.Section refers to a numbered section of the Development Agreement, unless otherwise stated. 98.Service Plan(s)means, individually or collectively as the context dictates and as may be amended from time to time, the Service Plan for TCMD and VMD, each dated August 25, 1998, and approved by the To wn Council in accordance with Part 2, Article 1, Title 32, C.R.S., together with any other service plan(s) that To wn Council may approve for such additional District(s) as may be organized for the Project in the future. 99.Settlement Term Sheet has the meaning set forth in Recital H. 100.Site has the meaning ascribed to such term in the PUD Guide. 101.Site Specific Development Plan means a “site specific development plan”as defined in the Vested Property Rights Statute, but for avoidance of doubt shall not be construed to include a preliminary plat, a grading permit, a building permit, or the continuation of a temporary use beyond the term contemplated therefor in the approval. 102.Supplemental Bonds means additional financial obligations of TCMD in a cumulative amount up to the portion of the otherwise unfunded portion of the Credit PIF Cap (including EXHIBIT A to Heil Memorandum dated June 6, 2013 F-13 1001679.22 FINAL bonds issued by TCMD and/or Additional Developer Advances) issued at any time during the period commencing on the Effective Date and continuing through and including January 1, 2040: (i) which are payable in whole or in part from Credit PIF Revenues; and (ii)some or all of the proceeds of which are utilized to finance Capital Projects and/or to refund and defease Replacement Bonds. 103.Tank Agreement means that certain Traer Creek Water Storage Tank Agreement and Second Amended Water Service Agreement made and entered into as of [insert effective date] by the Authority, the Town, TCMD, Master Developer and certain “Limited Parties” as defined therein. 104.Ta nk Project has the meaning set forth in the Ta nk Agreement. 105.Tank Project Bonds has the meaning set forth in the Tank Agreement. 106.Ta x Credit means the To wn’s obligation to provide tax credits as described in Section 4.2(a)and in Article 6, which obligation is implemented by and codified in the Municipal Code (as in effect on the Execution Date) at Sections 3.08.035 (with respect to retail sales), 3.12.065 (with respect to real estate transfers) and 3.28.075 (with respect to public accommodations). 107.Taxable Transaction(s)means a retail sales transaction, a real estate transfer transaction, or an accommodations/lodging transaction occurring within the Property which, subject to application of the Tax Credit as set forth in the Development Agreement, is subject to the Town’s sales tax, the Town’s real estate transfer tax or the Town’s accommodations/lodging tax. If the Town imposes any use tax on building materials during the Term that is not in effect as of the Execution Date such use tax shall be automatically and without the need of any formal action incorporated into the foregoing definition. 108.TC-HD means Traer Creek-HD LLC, a Colorado limited liability company. 109.TCLLC means Traer Creek LLC, a Colorado limited liability company. 110.TCMD means Traer Creek Metropolitan District, a quasi-municipal corporation and political subdivision of the State of Colorado. 111.TCMD Bond Reissue means bonds issued by TCMD on or prior to the Effective Date to refund its Va riable Rate Revenue Bonds, Series 2002, and its Va riable Rate Revenue Bonds, Series 2004, in implementation of the Settlement Te rm Sheet, including but not limited to any refunding bonds issued to repay or defease such bonds as to which BNP is a credit enhancer, letter of credit provider or bondholder. 112.TCMD Reissue Documents means the indenture, the custodial agreement and related documentation executed in connection with closing of the TCMD Bond Reissue and which establish, inter alia, the priority of uses for which District Revenues can be utilized. 113.TC Plaza means Traer Creek Plaza LLC, a Colorado limited liability company. EXHIBIT A to Heil Memorandum dated June 6, 2013 F-14 1001679.22 FINAL 114.TC-RP means Traer Creek-RP LLC, a Colorado limited liability company. 115.TC-WMT means Traer Creek-WMT LLC, a Colorado limited liability company. 116.Term means the period commencing on the Effective Date and continuing through and including the date upon which payment in full of all issued and outstanding District Debts occurs (or the Town has exercised its option to fully fund the Credit PIF Cap pursuant to Section 6.14(a)); provided, however, the Term shall not be deemed to have expired prior to January 2, 2040, unless, prior to January 2, 2040: (i) (A) TCMD has issued Supplemental Bonds up to the full amount of the Credit PIF Cap; and (B) all such Supplemental Bonds and all other District Debts have been fully paid; or (ii) the Town has exercised its option to fully fund the Credit PIF Cap pursuant to Section 6.14(a). 117.TIF Revenues means the net revenues actually received by AURA from the property tax increment resulting from creation of one or more urban renewal area(s) including all or any part of Lot 1. For purposes hereof, the term “net revenues” means the revenues remaining available for use by AURA after remitting: (i) to the Districts, 100% of the tax increment revenues resulting from the Project Ad Valorem Taxes; and (ii) to any other taxing authorities having territory within the Property, such portions of the tax increment revenues resulting from the mill levies of the other taxing authorities as AURA may be required to remit pursuant to the terms of separate agreements with such taxing authorities, if any. 118.Total Repayment Cost Comparison means the Total Repayment Costs of Additional Developer Advances minus the Total Repayment Cost of Supplemental Bonds issued in the form of obligations other than Additional Developer Advances. 119.Total Repayment Cost of Additional Developer Advance means (i) the amount available to pay Capital Project Costs from the proceeds of the Supplemental Bonds for which the Total Repayment Cost Comparison is being calculated plus (ii) the total amount of interest which would accrue from the date of issuance of such Supplemental Bonds to the respective maturity dates of such Supplemental Bonds calculated by multiplying the Principal Amount Maturing by the Municipal Market Data rate (or, if the foregoing index is no longer published,then the Bond Bu yer Revenue Bond index rate), for a term most closely related to the term of the Supplemental Bonds being issued,for Baa investment grade bonds on the date of issuance of such Supplemental Bonds plus 375 basis points. For purposes of this calculation, Principal Amount Maturing means the principal amount maturing on each maturity date for such Supplemental Bonds multiplied by the percentage obtained by dividing the amount available to pay Capital Project Costs from such Supplemental Bonds by the total principal amount of such Supplemental Bonds. For purposes of this calculation, a maturity date is the date on which principal is scheduled to be paid including a mandatory sinking fund date. 120.Total Repayment Cost of Supplemental Bonds means, with respect to Supplemental Bonds issued in the form of obligations other than Additional Developer Advances, the sum of: (i)the total principal amount of such Supplemental Bonds less the amount of the principal, if any, representing capitalized interest as identified in the indenture of trust or other financing document governing the payment of such Supplemental Bonds,plus (ii) the total amount of interest to accrue on the Supplemental Bonds from their date to their respective maturities EXHIBIT A to Heil Memorandum dated June 6, 2013 F-15 1001679.22 FINAL calculated by multiplying the principal amount maturing on each maturity date by the applicable TRC In terest Rate, plus (iii) the sum of any other known Bond Requirements that will be required to administer the Supplemental Bonds. 121.To wn means the Town of Avon, a home rule municipal corporation of the State of Colorado. 122.To wn Council means the Town Council of the Town. 123.TRC Interest Rate means, with respect to Supplemental Bonds issued in the form of obligations other than Additional Developer Advances: (i)if the interest rate is fixed during the term of such Supplemental Bonds, the stated rate; and (ii) if the interest rate is variable (subject to the Town’s consent as set forth in Section 6.10), the 30-year average, as of the issuance/closing date,of the interest rate index used to determine the variable rate on such Supplemental Bonds as stated in the documents governing the issuance of such Supplemental Bonds plus any adjustment or spread to such index. 124.Ve sted Property Rights Statute means C.R.S. §§ 24-68-101 et seq. as in effect on the Original Effective Date. 125.Vested Property Rights has the meaning set forth in Section2.4. 126.Vesting Term has the meaning set forth in Section 1.4(a). 127.VMD means The Village Metropolitan District, a quasi-municipal corporation and political subdivision of the State of Colorado. 128.Water Bank has the meaning set forth in Section 3.4(a). 129.Water Rights has the meaning set forth in Section3.4. EXHIBIT A to Heil Memorandum dated June 6, 2013 TOWN OF AVON, COLORADO MINUTES FOR THE URBAN RENEWAL AUTHORITY MEETING FOR JANUARY 8, 2013 AVON TOWN HALL, ONE LAKE STREET CALL TO ORDER AND ROLL CALL Chairman Carroll called the meeting to order at 5:15 PM. A roll call was taken and Board members present were Dave Dantas, Chris Evans, Jennie Fancher, Todd Goulding, and Jake Wolf. Buz Reynolds arrived at 5:20 PM. Also present were Executive Director/Secretary Virginia Egger, Town Attorney Eric Heil, Authority Clerk Patty McKenny, Community Relations Officer Jaime Walker, as well as other staff members and the public. APPROVAL OF AGENDA The agenda was approved. PUBLIC COMMENT There were no public comments. CONSENT AGENDA a) Minutes from November 13, 2012 Board member Goulding moved to approve the minutes; Board member Dantas seconded the motion and it passed unanimously by those present (Board member Reynolds absent at this time; Board members Evans, Wolf and Fancher abstained as they were not at meeting). b) Resolution No. 13-01, Series of 2013, Resolution to Designate a Public Place within the Boundaries of the Authority where Notices of Meetings of the Authority’s Board of Commissioners shall be Posted There was some discussion about the posting locations identified. There was consensus from the Board to remove Alpine Bank as a location and use only public buildings and not private locations. There was interest in using Avon Elementary School as a posting location; staff was asked to review this location as an official posting location. Board member Evans moved to approve Resolution No. 13-01, Series of 2013, Resolution to Designate a Public Place within the Boundaries of the Authority where Notices of Meetings of the Authority’s Board of Commissioners shall be Posted; Board member Fancher seconded the motion and it passed unanimously (Reynolds abstained from voting due to late arrival). There being no further business to come before the Authority, the meeting adjourned at 5:25 PM. RESPECTFULLY SUBMITTED: _________________________________ Patty McKenny, Authority Clerk APPROVED: Rich Carroll ________________________________ Dave Dantas ________________________________ Chris Evans ________________________________ Jennie Fancher ________________________________ Todd Goulding ________________________________ Albert “Buz” Reynolds ________________________________ Jake Wolf ________________________________ Heil Law & Planning, LLC Office: 303.975.6120 2696 South Colorado Blvd., Suite 550 Fax: 720.836.3337 Denver, CO 80222 E-Mail: eric@heillaw.com e-mail: ericheillaw@yahoo.com H EIL L AW TO: Honorable Mayor Carroll and Town Council Members FROM: Eric J. Heil, Town Attorney RE: Village (at Avon) Settlement Implementation Update DATE: June 7, 2013 Summary: This memorandum provides an update on the settlement implementation for the Village (at Avon) litigation. Bond Issuance: A significant issue has arisen. A tax ruling was issued this week in Florida holding that a district which has a board of directors controlled by a private developer does not qualify as a governmental subdivision which can issue federal tax exempt bonds. This tax ruling directly effects the proposed bond issue by Traer Creek Metropolitan District. Kutak Rock, the bond counsel for Traer Creek Metropolitan District, has said that due to the tax ruling this week, they cannot provide an opinion that Traer Creek Metropolitan District can issue tax exempt bonds. Several meetings have been held this week to discuss options and alternatives, including the issuance of taxable bonds by Traer Creek Metropolitan District as well as approving the issuance of tax exempt bonds by The Village Metropolitan District on behalf of Traer Creek Metropolitan District. Attorneys for all parties and the financial underwriter are focused on analyzing this new tax ruling and determining potential options. This turn of events has a strong potential to delay the scheduled June 27, 2013 bond closing. This topic will be discussed further at the June 11, 2013 Council meeting and I hope to provide an update on potential options and solutions to this new challenge. Status Conference with Court: A Status Conference was held on Thursday, June 6, 2013. The discussion was focused on the impact of the recent Tax Advisory Memorandum on the ability of Traer Creek Metropolitan District to issue tax-exempt bonds. The next Status Conference is scheduled for Thursday, June 13, 2013 at 2:30 p.m. Water Tank Bids: The Upper Eagle River Water Authority sent out bid documents on May 10, 2013 to fourteen pre-qualified contractors. Bids are due on June 10, 2013. Revocable License Agreement for Snow Storage: Additional revisions are desired to the License Agreement for Snow Storage on Lot 2; however, representatives of Traer Creek and I have not had the opportunity to discuss additional revisions. Remaining Documents for Approval: Resolution 13-18 approves all other documents required to be approved by Council prior to closing. Resolution 13-18 and the remaining documents to be approved are discussed in a separate memorandum. Requested Action: No Council action is requested at this time except those matters which are on the Council’s agenda and which are addressed in separate memoranda. Thank you, Eric M EMORANDUM & PLANNING, LLC Heil Law & Planning, LLC Office: 303.993.4608 2696 South Colorado Blvd., Suite 550 Fax: 720.836.3337 Denver, CO 80222 E-Mail: meredith@heillaw.com HEIL LAW TO: Honorable Mayor Carroll and Town Council Members CC: Virginia Egger, Town Manager THRU: Eric Heil, Esq., Town Attorney FROM: Meredith Van Horn, Esq., Assistant Town Attorney RE: Approval of Agreements and Improvement Conveyances to the Town DATE: June 6, 2013 Summary: This memorandum describes the various agreements and asset conveyance documents to be approved by Resolution 13-18, which constitute the remaining documents which the Avon Town Council must approve to fully implement the settlement to the Village (at Avon) litigation. The documents to be approved by Resolution No. 13-18 include: 1. Access Easement Agreement (Previously approved in Ord. No 12-10, but revised and resubmitted for approval by Resolution); 2. Wet Well Easement Agreement (Previously approved in Ord. No 12-10, but revised and resubmitted for approval by Resolution); 3. Special Warranty Deed conveying raw water rights to the Town; 4. Raw Water System Operation and Maintenance Agreement; 5. Amended and Restated Nottingham Dam Easement Agreement (Previously approved in Ord. No 12-10, but revised and resubmitted for approval by Resolution); 6. Special Warranty Deed for Tract G, Filing 3 (Previously approved in Ord. No 12-10, but revised and resubmitted for approval by Resolution); 7. Bills of Sale for the Nottingham Gulch Storm Sewer; and, 8. Bill of Sale for the Nottingham Gulch Energy Dissipater. Access Easement Agreement: This Agreement conveys an easement to the Town for access from East Beaver Creek Boulevard to Lot 2/Planning Area B. The version of the Agreement attached to Ordinance 12-10 was titled “Roadway Easement Agreement”. On the Second Amended Final Plat, Amended Final Plat, The Village (at Avon) Filing 1, A Resubdivision of Lot 1 the title of the easement is “Access Easement.” The title of the Agreement is revised to “Access Easement Agreement” for consistency with the Lot 1 Re-Plat. The Agreement has been updated to change all dates to 2013, to correct an incorrect cross-reference to the CARADA, and to include an “Approved as to legal form by” signature block. Paragraph 1 provides the basic parameters of the easement. The width of the easement is reduced from fifty (50) feet to forty (40) feet. In addition, Traer Creek-RP, LLC revised the Agreement to exclude the installation of Communications Utilities from the permitted uses under the easement. Communications Utilities include such utilities as cable television cables, telephone cables, fiber optic cables, and the pipes are defined as “(a) cable television cables, wires, lines, plugs, connections, junction boxes, access boxes, vaults, switches, terminals and similar M EMORANDUM & PLANNING, LLC Avon Town Council Agreements and Asset Conveyances June 6, 2013 Page 2 of 4 improvements; (b) telephone and communication cables, fiber-optic cables, wires, lines, plugs, connections, junction boxes, access boxes, vaults, switches, terminals, jacks and similar improvements; (c) data cables, fiber-optic cables, wires, lines, plugs, connections, junction boxes, access boxes, vaults, switches, terminals, jacks and similar improvements; and (d) utility conduit, pipe, sleeve, trough or similar enclosures for the purpose of holding, running or containing the facilities described in clauses (a) through (c).” Paragraph 2 of the Agreement is revised to allow termination of the easement in addition to the options of relocating, adjusting or repositioning its location. The revision notes that the configuration of Future Main Street in the PUD Master Plan shows that it will abut Lot 2/Planning Area B and thus will provide legal access to Lot 2/Planning Area B without the need of the Easement. The revision states that “at no time shall Planning Area B be without legal access to Future Main Street or another public right-of-way.” Paragraph 4 is revised to allow Traer Creek-RP, LLC to use the easement area for snow dumping and storage. Paragraph 6 is a new paragraph regarding indemnification and insurance and states that the Town will indemnify Traer Creek-RP, LLC against any claims that arise from the Town’s use of the easement, with the exclusion of any negligence or willful misconduct by Traer Creek-RP, LLC. In addition, the Town shall maintain insurance coverage “as reasonably determined by” the Town. This language was reviewed and approved by Town’s insurer, CIRSA. Exhibit C to the Agreement is the Legal Description which has also be revised to include the reception information for the Amended Plat for Lot 1 and to refer to Lot 2 as “Lot 2” and not “Proposed Lot 2”. Wet Well Easement Agreement: The Wet Well Easement Agreement conveys an easement to the Town for access from East Beaver Creek Boulevard to the wet well located on Lot 1 near Post Boulevard. The easement may also be used for construction and maintenance of the wet well. Although various provisions have been relocated within the document, no major substantive revisions are made with the exception of deletion of the section on termination of the easement. Section 2 allows Traer Creek-RP to grant additional non-exclusive easements within the easement area so long as they do not conflict with the Town’s use of its easement. Sections 3 and 4 state that the Town is responsible for restoration of the area and for the maintenance of the Wet Well “at its sole cost and expense.” Section 6 allows the easement area to be relocated at the sole discretion of Traer Creek-RP and when the easement is relocated the Town and Traer Creek-RP will execute an amendment to the easement agreement. Section 19 was added in response to requests by Traer Creek-RP to permit continued service of raw water for private irrigation use for four (4) connections designated in Exhibit B to the Agreement. Special Warranty Deed Conveying Raw Water: Attached is a Special Warranty Deed conveying raw water rights. This conveyance is coordinated with the Raw Water System Operations and Maintenance Agreement and the Nottingham Dam Easement. The Village (At Avon) Raw Water System Operations and Maintenance Agreement: The Raw Water System Operations and Maintenance Agreement (“Raw Water O&M Agreement”) outlines the operations and maintenance of the Raw Water System and the future Village (at Avon) Lake Nos. 1 and 2. Section 1 states that the Town assumes the operations and maintenance of the raw water system which includes “the Nottingham and Puder Ditch, and any and all diversion ditches, pipelines, headgates and structures, pumps, casings, wet wells and other improvements associated with or used in connection with the raw (non-potable) water system that serves or will serve the Property”. TCMD shall continue to operate and maintain the part of the raw water system that provides water for use in irrigating Tract E but Town agrees to provide raw water to Tract E. If Village (at Avon) Lake Nos. 1 and 2 are constructed at some point in the future, Section 2 outlines the maintenance and operation of those water bodies. If the lakes are constructed as “part of the development of the Avon Town Council Agreements and Asset Conveyances June 6, 2013 Page 3 of 4 Property” then the maintenance will be the responsibility of TCMD or the Developer. If the lakes are constructed as a public amenity for the Town then the lakes will be the responsibility of the Town. The Raw Water O&M Agreement in Section 3 also requires that the Town provide an accounting for all diversions at the Nottingham and Puder Ditch and the two wet wells, the total number of acres irrigated and diversions from and releases into Lake Nos. 1 and 2. Section 4, 5 and 6 address future filings in the Water Court, the need for augmentation for additional irrigation, and the use of any unused historic consumptive use credits. Amended and Restated Nottingham Dam Easement and Assignment Agreement: This Agreement assigns the responsibility for the maintenance of the Nottingham Dam from TCMD to the Town and grants the Town an easement to access the Dam. Under Development Agreement Section 4.2(c) this responsibility of the Town is subject to the Town’s sole discretion to determine appropriate maintenance of the Dam. The easement is not exclusive and may be used by the Developer, so long as no damage is done to the Dam, to construct improvements and structures on the Dam property and adjacent property. Although the maintenance is subject to the Town’s sole discretion, the Agreement states that Town shall maintain the Nottingham Dam in accordance with the minimum requirements of the Colorado Division of Water Resources which regulates dams. Special Warranty Deed [Tract G – Filing 3]: This Special Warranty Deed was reviewed by Town Council as an Exhibit to Ordinance 12-10. This Tract is a drainage tract located north of I-70 that is owned by Traer Creek-RP, LLC. Revisions were made to note “All exceptions of record” in Exhibit B to the Special Warranty Deed. The previous version only noted one exception. Bills of Sale for Nottingham Gulch Storm Sewer and Nottingham Gulch Energy Dissipater: The Nottingham Gulch Storm Sewer and the Nottingham Gulch Energy Dissipater are two improvements to be conveyed to the Town that were not conveyed by the earlier bills of sale from TCMD. The Storm Sewer runs from just north of I-70, under I- 70, across Lots 4, 5, and 6 in Filing 1 and down to the Eagle River. The Nottingham Gulch Energy Dissipater is located where the storm sewer meets the Eagle River on the McGrady Acres Open Space and is a water dissipater. Approval: The Raw Water System Operations and Maintenance Agreement is an intergovernmental agreement with Traer Creek Metropolitan Districts which lasts for more than 10 years, therefore, this Resolution, or at least this IGA, must be approved by the concurring vote of five (5) Council members. Requested Action: Approve Resolution No. 13-18 “A RESOLUTION APPROVING SEVERAL DOCUMENTS RELATED TO THE VILLAGE (AT AVON) LITIGATION SETTLEMENT, INCLUDING: THE ACCESS EASEMENT AGREEMENT; THE WET WELL EASEMENT AGREEMENT; RAW WATER SPECIAL WARRANTY DEED; THE RAW WATER SYSTEM OPERATIONS AND MAINTENANCE AGREEMENT; THE AMENDED AND RESTATED NOTTINGHAM DAM EASEMENT AND ASSIGNMENT AGREEMENT; SPECIAL WARRANTY DEED FOR TRACT G, FILING 3; THE BILL OF SALE FOR THE NOTTINGHAM GULCH STORM SEWER; AND THE BILL OF SALE FOR THE NOTTINGHAM GULCH ENERGY DISSIPATER” Thanks, Meredith Attachments:  Resolution No. 13-18 with Exhibits  Access Easement Agreement Comparison of Version attached to Ordinance 12-10 and June 5, 2013 Version Avon Town Council Agreements and Asset Conveyances June 6, 2013 Page 4 of 4  Wet Well Easement Agreement Comparison of Version attached to Ordinance 12-10 and June 5, 2013 Version  Amended and Restated Nottingham Dam Easement and Assignment Agreement Comparison of Version attached to Ordinance 12-10 and June 6, 2013 Version Res. 13-18 Approving Several Documents Related to The Village (at Avon) Litigation Settlement June 6, 2013 Page 1 of 2 TOWN OF AVON RESOLUTION NO. 13-18 Series of 2013 A RESOLUTION APPROVING SEVERAL DOCUMENTS RELATED TO THE VILLAGE (AT AVON) LITIGATION SETTLEMENT, INCLUDING: THE ACCESS EASEMENT AGREEMENT; THE WET WELL EASEMENT AGREEMENT; RAW WATER SPECIAL WARRANTY DEED; THE RAW WATER SYSTEM OPERATIONS AND MAINTENANCE AGREEMENT; THE AMENDED AND RESTATED NOTTINGHAM DAM EASEMENT AND ASSIGNMENT AGREEMENT; SPECIAL WARRANTY DEED FOR TRACT G, FILING 3; THE BILL OF SALE FOR THE NOTTINGHAM GULCH STORM SEWER; AND THE BILL OF SALE FOR THE NOTTINGHAM GULCH ENERGY DISSIPATER WHEREAS, on October 7, 2011 the Town of Avon and other parties entered into the Settlement Term Sheet (“Settlement Term Sheet”) in an effort to resolve pending litigation No. 2008 CV 385 and 2010 CV 316, Eagle County District Court; WHEREAS, as partial implementation of the Settlement Term Sheet, the Avon Town Council approved the Consolidated, Amended and Restated Annexation and Development Agreement (“Development Agreement”) by Ordinance No. 12-10 which states in Section 4.2(c) that the Town of Avon will assume certain maintenance obligations of Traer Creek Metropolitan District; WHEREAS, the Town, Traer Creek Metropolitan District, Traer Creek development entities and other parties to the litigation desire to clarify and document the transfer public improvement assets to the Town for which the Town accepts responsibility to maintain according to the Development Agreement and desires to adopt various agreements which address additional details concerning the rights and obligations of parties to those agreements; WHEREAS, Section 4 of Ordinance 12-10 authorizes the Town Council to approve amendments and/or revisions to the documents conveying property to the Town in Section 4 of Ordinance No. 12-10 by resolution; WHEREAS, the Town of Avon may generally act by resolution to approve agreements and acceptance of property conveyed to the Town pursuant to Avon Town Charter Section 6.1; and, WHEREAS, the Avon Town Council approved the Receipt and Escrow Agreement Pertaining to the Village (at Avon) Settlement Implementation (“Closing Escrow Agreement”) by Ordinance No. 12-10 which set forth various terms concerning the execution and deposit of documents and agreements into escrow and the effectiveness or voiding of such documents and agreements. Res. 13-18 Approving Several Documents Related to The Village (at Avon) Litigation Settlement June 6, 2013 Page 2 of 2 NOW, THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON: Section 1. The following agreements and asset conveyances are hereby approved by the Town of Avon subject to the terms and conditions of the Closing Escrow Agreement: (a) The Access Easement Agreement, attached hereto as Exhibit A; (b) The Wet Well Easement Agreement, attached hereto as Exhibit B; (c) Special Warranty Deed conveying water storage rights and direct flow rights, attached hereto as Exhibit C; (d) The Village (at Avon) Raw Water System Operations and Maintenance Agreement, attached hereto as Exhibit D; (e) The Amended and Restated Nottingham Dam Easement and Assignment Agreement, attached hereto as Exhibit E; (f) Special Warranty Deed [Tract G – Filing 3], attached hereto as Exhibit F; (g) The Bill of Sale (Nottingham Gulch Storm Sewer), attached hereto as Exhibit G; and (h) The Bill of Sale (Nottingham Gulch Energy Dissipater), attached hereto as Exhibit H. ADOPTED this JUNE 11, 2013 TOWN COUNCIL ATTEST: By:_________________________________ By:________________________________ Rich Carroll, Mayor Patty McKenny, Town Clerk 1014138.9 RECORDING REQUESTED BY AND WHEN RECORDED PLEASE RETURN TO: Town of Avon P.O. Box 975 Avon, CO 81620 attn: Patty McKenny, Town Clerk ACCESS EASEMENT AGREEMENT THIS ACCESS EASEMENT AGREEMENT (this “Easement Agreement”) is made and entered into as of this _____ day of _________________, 2013 (“Effective Date”), by and between the TOWN OF AVON, a home rule municipal corporation of the State of Colorado (together with its successors and assigns, “Grantee”); and TRAER CREEK-RP LLC, a Colorado limited liability company (together with its successors and assigns, “Grantor”). Recitals A. Grantor is the owner of certain real property located in Eagle County, Colorado, legally described on Exhibit A attached hereto and incorporated herein by this reference (“Lot 1”). B. Grantor and Grantee are parties to that certain Consolidated, Amended and Restated Annexation and Development Agreement for The Village (at Avon) made and entered into as of _____________, 2013 and recorded in the real property records of Eagle County, Colorado (the “Records”) on or about even date herewith (“Development Agreement”). C. Pursuant to Section 3.7(b) of the Development Agreement, concurrently with the “Effective Date” (as defined in the Development Agreement) of the Development Agreement, Grantor shall dedicate and convey, or has dedicated and conveyed, to Grantee certain real property located in Eagle County, Colorado, legally described on Exhibit B attached hereto and incorporated herein by this reference (“Planning Area B”), which property is designated as Planning Area B pursuant to The Village (at Avon) PUD Master Plan (the “PUD Master Plan”), being Exhibit B to that certain The Village (at Avon) Amended and Restated PUD Guide recorded in the real property Records on or about even date herewith (the “PUD Guide”). D. As of the Effective date, there is no legal access to Planning Area B from a public right-of-way. E. In connection with the conveyance and dedication of Planning Area B to Grantee, Grantor desires to Grant, and Grantee desires to accept, an access easement from that certain 80- foot wide right-of-way known as East Beaver Creek Boulevard (as recorded in the Records at Reception No. 795007) to Planning Area B for the purpose of Grantee’s enjoyment of the Permitted Uses (as defined in Paragraph 1), including but not limited to the future construction, operation and maintenance of the Facilities (as defined in Paragraph 1) in accordance with the terms and conditions of the PUD Guide and the Development Agreement, and as set forth below. 2 1014138.9 Agreement NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, Grantor and Grantee agree as follows: 1. Grant of Easement. Grantor hereby grants, bargains, sells and conveys to Grantee, a perpetual, non-exclusive, forty (40)-foot wide easement appurtenant to Planning Area B (the “Easement”) over, under, through and across that portion of Lot 1 which is legally described and depicted in Exhibit C attached hereto and incorporated herein by this reference (the “Easement Area”) for the purpose of Grantee’s, together with its engineers, contractors, employees and similar consultants to Grantee and/or its assigns (collectively, “Permittees”), conducting of the following activities (collectively, the “Permitted Uses”): (i) vehicular and pedestrian ingress to and egress from Planning Area B; (ii) constructing, installing, using, operating, maintaining, repairing and replacing drive lanes, roadways, landscaping, sidewalks, bike paths, retaining walls and other access facilities necessary or desirable for such ingress and egress, and all fixtures and devices reasonably used or useful in the operation of such facilities (collectively, the “Roadway Facilities”); (iii) constructing, installing, using, operating, maintaining, repairing and replacing water lines, sanitary sewer lines, storm drainage facilities, electrical lines, gas lines and similar utilities and utility facilities, excluding the Communications Utilities (defined below), together with all sleeves, conduit, junction boxes, vaults, fixtures and devices reasonably used or useful in the operation of such facilities, whether publicly or privately owned (collectively, the “Utility Facilities,” and together with the Roadway Facilities, the “Facilities”); and (iv) the right to enter upon the Easement Area and such immediately abutting areas of Lot 1 thereto as may reasonably be necessary to survey and conduct geotechnical and similar physical investigations. As set forth in the PUD Guide and Section 3.7(b) of the Development Agreement, any construction of the Facilities shall be subject to the prior written approval of the “Design Review Board” (as defined in the PUD Guide). Nothing contained herein shall obligate Grantee to install, or cause to be installed, any or all of the Facilities or to otherwise provide for any such use. For purposes of this Easement Agreement, “Communications Utilities” shall mean, collectively, (a) cable television cables, wires, lines, plugs, connections, junction boxes, access boxes, vaults, switches, terminals and similar improvements; (b) telephone and communication cables, fiber-optic cables, wires, lines, plugs, connections, junction boxes, access boxes, vaults, switches, terminals, jacks and similar improvements; (c) data cables, fiber-optic cables, wires, lines, plugs, connections, junction boxes, access boxes, vaults, switches, terminals, jacks and similar improvements; and (d) utility conduit, pipe, sleeve, trough or similar enclosures for the purpose of holding, running or containing the facilities described in clauses (a) through (c). 2. Termination or Relocation of Easement Area. In connection with future development of Lot 1, including without limitation, the construction of permanent Main Street in the configuration as generally contemplated by the PUD Master Plan or such other final alignment as shall be set forth in the applicable Public Improvements Agreement(s) (as defined in the PUD Guide) between the Town and applicable constructing party(ies) (“Future Main Street”), Grantor and Grantee acknowledge that future design, engineering, construction and/or general development of Lot 1 and/or Future Main Street may be inconsistent with the rights granted hereunder in the Easement Area, and that it may be necessary or desirable that the 3 1014138.9 Easement Area be, in whole or in part, adjusted, repositioned, relocated or terminated to accommodate such future development of Lot 1 and/or Future Main Street, provided that at no time shall Planning Area B be without legal access to Future Main Street or another public right- of-way. Grantor and Grantee further acknowledge and agree that, as generally contemplated by the PUD Master Plan, the configuration of Future Main Street abuts Planning Area B and could provide direct legal access from Future Main Street to Planning Area B without the necessity of any easement or grant of other right to provide for such access. Accordingly, if Future Main Street or other public right-of-way is designed and constructed in a manner that provides direct legal access from Future Main Street or other public right-of-way to Planning Area B, upon the Town’s preliminary acceptance pursuant to the applicable Public Improvements Agreement of the street improvements for the portion of Future Main Street or other public right-of-way that provides such legal access to Planning Area B, this Agreement and the Easement granted hereunder shall automatically terminate and be extinguished and of no further force or effect without any further act of either Grantor or Grantee. Notwithstanding the foregoing, upon and after such termination at the written request of Grantor, Grantee shall deliver to Grantor an executed termination of this Agreement in recordable form, which Grantor may record against the Easement Area to provide record notice of such termination. Further, if Grantor determines, in its sole discretion, that it is necessary or desirable that the Easement Area be relocated for purposes of accommodating future development of Lot 1 and/or Future Main Street, Grantor and Grantee agree (a) Grantor shall have the right to provide for an alternative alignment and configuration or relocation of the Easement Area (the “Relocated Easement Area”) and Grantee shall not unreasonably deny, condition or delay approval with respect to the Relocated Easement Area; (b) Grantor and Grantee shall each execute an amendment to this Easement Agreement substituting the surveyed legal description for the alignment and configuration of the Relocated Easement Area as Exhibit C to this Easement Agreement; and (c) Grantor shall cause the recordation of such amendment in the Records. Recordation of such amendment in the Records shall have the legal effect of terminating the prior boundaries of the Easement Area and establishing the boundaries of the Relocated Easement Area as the new boundaries of the Easement Area for all purposes under this Easement Agreement. If, prior to the recordation of such amendment, the Design Review Board previously has approved, and Grantee previously has installed and/or constructed, Facilities within the Easement Area, Grantor shall have the obligation, at Grantor’s sole cost and expense, to relocate such Facilities to, or install and/or construct such Facilities within, the Relocated Easement Area. 3. Entry; Site Investigation; Restoration. In conducting the Permitted Uses related to design and construction of the Facilities, including but not limited to surveying, geotechnical testing, other physical inspection and similar matters, if it is necessary or desirable for Grantee and/or the Permittees to enter upon and/or cause disturbances to the surface of the abutting areas of Lot 1, Grantee shall provide not less than five (5) business days’ written notice to Grantor of any planned entrance upon and/or conduct of physical testing or inspection of the Easement Area and/or abutting areas of Lot 1. Grantor shall coordinate with Grantee regarding the scope, nature and duration of such activities, but shall not unreasonably object to or interfere with Grantee’s and/or Permittees’ conduct of such activities. To the extent such activities disturb vegetation on the surface or otherwise disturb any improvements upon or within the Easement Area or abutting areas of Lot 1, Grantee shall promptly cause revegetation and/or otherwise cause restoration of the affected area and improvements to a condition materially consistent with their condition prior to Grantee’s and/or Permittees’ conduct of such activities. Upon completion of any construction 4 1014138.9 activities within the Easement Area, Grantee shall promptly cause revegetation and/or restoration of any areas of Lot 1 located outside of the Easement Area that have been disturbed by the construction activities, including without limitation, restoration or repair to damaged improvements. 4. Grantor’s Reserved Rights. Grantor reserves the right to grant additional non-exclusive easements and/or other interests within the Easement Area and Lot 1 so long as such interests do not adversely affect, increase the cost of, or otherwise interfere with Grantee’s or Permittees’ full exercise of the Permitted Uses. Grantor reserves the right to use and occupy Lot 1 and the Easement Area for any and all purposes not inconsistent with the rights and privileges granted herein, including without limitation, snow dumping and storage. 5. Title Matters; No Warranties. This Easement Agreement is subject to all prior easements, restrictions, reservations, rights-of-way, encumbrances and similar matters of record as of the Effective Date. Grantor makes no representations or warranties regarding the status of title to Lot 1 or the Easement Area as of the Effective Date, and the grant of easements and other rights pursuant to this Easement Agreement is in the nature of a bargain and sale conveyance. 6. Indemnity. Grantee shall indemnify, protect, defend and hold Grantor (and its officers, directors, employees, consultants and representatives) harmless from and against any and all claims (including, without limitation, claims for mechanic’s liens or materialmen’s liens), causes of action, demands, obligations, losses, damages, liabilities, judgments, costs and expenses (including, without limitation, reasonable attorneys’ fees) (collectively, “Claims”) in connection with or arising out of Grantee’s exercise of its rights hereunder and use and enjoyment of the Easement Area; provided, however, such indemnity shall exclude any Claims caused by negligence or willful misconduct of Grantor or its officers, directors, employees and representatives. 7. Insurance. At all times while this Easement Agreement is in effect, Grantee shall obtain, keep in force and maintain liability insurance protecting against bodily injury and property damage claims relating to Grantee’s exercise of its rights hereunder and use and enjoyment of the Easement Area, which coverage shall have a minimum limit of $1,000,000 each occurrence; provided, however, that Grantor shall have full benefit of any greater limits maintained by Grantee. Such insurance policy shall name Grantor as an additional insured, shall apply on a primary and non-contributory basis and shall be endorsed with a clause providing that the insurer waives all rights of subrogation which such insurer might have against Grantor. 8. Covenants. Each and every benefit and burden of this Easement Agreement shall inure to and be binding upon Grantor, Grantee and their respective successors and assigns. The burdens and benefits hereof shall run with title to the Easement Area and Planning Area B. Any person or entity that acquires any interest in the Easement Area, and any person or entity that acquires any interest in Planning Area B, shall be bound by the burdens and entitled to the benefits of this Easement Agreement. The burdens and benefits of this Easement Agreement constitute covenants that run with and encumber title to the Easement Area and Planning Area B. 9. Severability. Any provision of this Easement Agreement which is declared by a court of competent jurisdiction to be illegal, invalid, prohibited or unenforceable shall be 5 1014138.9 ineffective only to the extent of such illegality, invalidity, prohibition or unenforceability, without invalidating or otherwise affecting the remaining provisions of this Easement Agreement, each of which shall continue in full force and effect, unless modified by mutual consent of the parties, for so long as their enforcement would not be inequitable to the party against whom they are being enforced under the facts and circumstance then pertaining. 10. Captions. The titles, headings and captions used in this Easement Agreement are intended solely for convenience of reference and shall not be considered in construing any of the provisions of this Easement Agreement. 11. Modification. This Easement Agreement may not be modified, amended or terminated, except by an agreement in writing executed by Grantor and Grantee. 12. Governing Law. The terms and provisions of this Easement Agreement shall be construed and enforced in accordance with the laws of the State of Colorado. 13. Counterparts. This Easement Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. [Signature pages follow this page.] 6 1014138.9 IN WITNESS WHEREOF, Grantor and Grantee have executed this Easement Agreement as of the Effective Date. GRANTEE: THE TOWN OF AVON, a home rule municipal corporation of the State of Colorado By: Name: Rich Carroll Title: Mayor Approved as to legal form by: Eric J. Heil, Esq., Town Attorney GRANTOR: TRAER CREEK-RP LLC, a Colorado limited liability company By: Traer Creek LLC, a Colorado limited liability company, its Manager By: Name: Marcus Lindholm Title: Manager 7 1014138.9 STATE OF COLORADO ) ) ss. COUNTY OF _______________ ) The foregoing instrument was acknowledged before me this _____ day of _______________, 2013, by ________________, as _________ of the TOWN OF AVON, a home rule municipal corporation of the State of Colorado. Witness my hand and official seal. Notary Public My commission expires: ______________________________. STATE OF COLORADO ) ) ss. COUNTY OF _______________ ) The foregoing instrument was acknowledged before me this _________ day of ______________________, 2013, by Marcus Lindholm, as Manager of Traer Creek LLC, a Colorado limited liability company, as Manager of TRAER CREEK-RP LLC, a Colorado limited liability company. Witness my hand and official seal. Notary Public My commission expires: ______________________________. A-1 1014138.9 EXHIBIT A LEGAL DESCRIPTION OF LOT 1 Lot 1, Second Amended Final Plat, Amended Final Plat, The Village (at Avon) Filing 1, A Resubdivision of Lot 1, County of Eagle, State of Colorado. B-1 1014138.9 EXHIBIT B LEGAL DESCRIPTION OF PLANNING AREA B Lot 2, Second Amended Final Plat, Amended Final Plat, The Village (at Avon) Filing 1, A Resubdivision of Lot 1, County of Eagle, State of Colorado. C-1 1014138.9 EXHIBIT C LEGAL DESCRIPTION AND DEPICTION OF EASEMENT AREA Page 1 of 10 Version 9 RECORDING REQUESTED BY AND WHEN RECORDED PLEASE RETURN TO: Town of Avon P.O. Box 975 Avon, CO 81620 attn: Patty McKenny, Town Clerk WET WELL EASEMENT AGREEMENT THIS WET WELL EASEMENT AGREEMENT (“Agreement”) is entered into as of this _____ day of ________________, 2013 (“Effective Date”), by and between TRAER CREEK-RP LLC, a Colorado limited liability company (together with its successors and assigns, “Grantor”), and the TOWN OF AVON, a home rule municipal corporation of the State of Colorado (together with its successors and permitted assigns, “Grantee”). 1. Grant. In consideration of the covenants and agreements hereinafter set forth and other good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged by Grantor, Grantor hereby grants, bargains, sells, and conveys to Grantee the following perpetual non-exclusive easements: (a) A perpetual non-exclusive easement in, through, over, under and across that certain parcel of real property located in the Town of Avon, Eagle County, Colorado, as more particularly described on Exhibit A attached hereto and incorporated herein by this reference (“Easement Area”) for (i) vehicular and pedestrian ingress and egress to the Improvements (as defined below); and (ii) construction, reconstruction, operation, use, maintenance, repair, replacement and/or removal of certain water lines and mains, manholes, conduits, ventilators, access doors, cables, landscaping improvements, wells, well casings, tanks, motors, pumps, electrical facilities and apparatus, meters, and related improvements and appurtenances thereto (collectively, the “Improvements”), provided that all such improvements shall be located underground or on the surface of the Easement Area and shall not be located above the surface of the Easement Area, subject and pursuant to the terms and conditions set forth herein (“Easement”); and 2. Grantor’s Reserved Rights. Grantor reserves the right to grant additional non-exclusive easements and/or other interests within the Easement Area so long as such grants do not unreasonably interfere with Grantee’s full exercise of the Easement. Grantor reserves the right to use and occupy the Easement Area for any and all purposes not inconsistent with the rights and privileges granted herein. 3. Restoration; Repair. Upon completion of any of its activities which disturb or damage the surface of the Easement Area or any of Grantor’s improvements, including without limitation, landscaping improvements, Grantee shall restore the affected Easement Area and/or improvements to the condition they were in immediately prior to such disturbance, except as necessarily modified to accommodate the Improvements. 4. Maintenance. Grantee shall maintain the Improvements at its sole cost and expense. Grantor shall have no obligation to maintain the Improvements. 5. Insurance; Indemnity. Page 2 of 10 Version 9 (a) Insurance. Grantee shall require that all of its contractors and permittees entering upon the Easement Area obtain and maintain in effect for the duration of their respective periods of work (i) workers’ compensation insurance with statutory limits, and (ii) public liability insurance with commercially reasonable limits as may be required by Grantee from time to time as part of its capital construction and maintenance program. (b) Indemnity. To the extent permitted by law, Grantee agrees to indemnify, defend and hold the Grantor harmless from and against all losses, claims, damages, liabilities or expenses, including without limitation reasonable attorneys’ fees arising from Grantee’s, its contractors’ and permittees’ exercise of the Easement or use of the Easement Area; provided, however, such indemnity shall not extend to any claims to the extent arising from Grantor’s negligence or willful misconduct. 6. Relocation of Easement Area. In connection with Grantor’s future development of the Easement Area and Grantor’s real property adjacent to the Easement Area known as The Village (at Avon) (the “Project”), Grantor and Grantee acknowledge that future design, engineering, construction and/or general development of the Project may be inconsistent with the rights granted hereunder in the Easement Area, and that it may be necessary or desirable that the Easement Area be, in whole or in part, adjusted, repositioned or relocated to accommodate such future development of the Project. If Grantor determines, in its sole discretion, that it is necessary or desirable that the Easement Area, or any portion thereof, be relocated for purposes of accommodating future development of the Project, Grantor and Grantee agree (a) Grantor shall have the right to provide for an alternative alignment and configuration or relocation of the Easement Area (the “Relocated Easement Area”) and Grantee shall not unreasonably deny, condition or delay approval with respect to the Relocated Easement Area; (b) Grantor and Grantee shall each execute an amendment to this Agreement substituting the surveyed legal description for the alignment and configuration of the Relocated Easement Area as Exhibit A to this Agreement; and (c) Grantor shall cause the recordation of such amendment in the real property records of the clerk and recorder for Eagle County, Colorado. Recordation of such amendment shall have the legal effect of terminating the prior boundaries of the Easement Area and establishing the boundaries of the Relocated Easement Area as the new boundaries of the Easement Area for all purposes under this Agreement. In connection with any such relocation, Grantor shall have the obligation, at Grantor’s sole cost and expense, to relocate the Improvements to, or install and/or construct such Improvement within, the Relocated Easement Area. 7. No Dedication; No Third-Party Beneficiaries. Nothing contained in this Agreement shall be deemed to be, and shall not be, a dedication of the Easement or Easement Area to the general public, or to any other person or entity, and no third-party shall have the right to exercise the Easement or enforce the terms of this Agreement. 8. Notices. All notices, demands, requests or other communications sent by one party to the other hereunder or required by law shall be in writing and shall be deemed to have been validly given or served by delivery of same in person to the addressee or by courier delivery via Federal Express or other nationally recognized overnight air courier service or by depositing same in the United States certified mail, postage prepaid, addressed as follows: Page 3 of 10 Version 9 To Grantee: Town of Avon One Lake Street P.O. Box 975 Avon, Colorado 81620 Attention: Town Manager With a copy to: Town of Avon One Lake Street P.O. Box 975 Avon, CO 81620 Attn: Town Attorney To Grantor: Traer Creek-RP LLC Physical Address: Avon, CO 81620 Mailing Address: P.O. Box 640 Vail, CO 81658 Attn: Marcus Lindholm With a copy to: Otten, Johnson, Robinson, Neff & Ragonetti, P.C. 950 17th Street, Ste. 1600 Denver, CO 80202 Attn: Munsey L. Ayers All notices, demands, requests or other communications shall be effective (a) upon personal delivery; (b) if deposited with Federal Express or other nationally recognized overnight air courier service, one (1) business day after such deposit; or (c) if deposited in the United States certified mail, postage prepaid, three (3) business days after such deposit. By giving the other party hereto at least ten (10) days written notice thereof in accordance with the provisions hereof, such party shall have the right from time to time to change its address. 9. Subjacent and Lateral Support. Grantee shall have the right of subjacent and lateral support for the Improvements, and Grantor shall not take any action which would impair the lateral or subjacent support for the Improvements. Grantor shall have the right of subjacent and lateral support for its improvements located within and adjacent to the Easement Area, and Grantee shall not take any action which would impair the lateral or subjacent support for such Grantor improvements. 10. Assignment. Grantee shall have the right and authority to assign to any appropriate local governmental or quasi-governmental entity any and all rights to use, and all obligations associated with, the Easement as are granted to and accepted by the Grantee herein. 11. Title Matters; No Warranties. This Agreement is subject to all prior easements, restrictions, reservations, rights-of-way, encumbrances and similar matters of record as of the Effective Date. Grantor makes no representations or warranties regarding the status of title to the Page 4 of 10 Version 9 Easement Area as of the Effective Date, and the grant of the Easement and other rights pursuant to this Agreement is in the nature of a bargain and sale conveyance. 12. Binding Effect; Runs With Land. Each and every benefit and burden of this Agreement shall inure to and be binding upon Grantor, Grantee and their respective successors and assigns. The burdens and benefits hereof shall run with title to the Easement Area. Any person or entity that acquires any interest in the Easement Area shall be bound by the burdens and entitled to the benefits of this Agreement. The burdens and benefits of this Agreement constitute covenants that run with and encumber title to the Easement Area. 13. Severability. Any provision of this Agreement which is declared by a court of competent jurisdiction to be illegal, invalid, prohibited or unenforceable shall be ineffective only to the extent of such illegality, invalidity, prohibition or unenforceability, without invalidating or otherwise affecting the remaining provisions of this Agreement, each of which shall continue in full force and effect, unless modified by mutual consent of the parties, for so long as their enforcement would not be inequitable to the party against whom they are being enforced under the facts and circumstance then pertaining. 14. Attorneys’ Fees. In the event either party seeks to enforce its rights hereunder through litigation, arbitration or another legal proceeding, the court or panel shall award to the prevailing party in such litigation, arbitration or other legal proceeding, as part of its judgment or award, its reasonable attorneys’ fees and costs. 15. Section Headings. The titles, headings and captions used in this Agreement are intended solely for convenience of reference and shall not be considered in construing any of the provisions of this Agreement. 16. Modification. This Agreement may not be modified, amended or terminated, except by an agreement in writing executed by Grantor and Grantee. 17. Governing Law. The terms, covenants and provisions hereof shall be governed by and construed under the applicable laws of the State of Colorado. 18. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 19. Access to Raw Water. Grantor shall have the right during this Agreement to access raw water from the raw water irrigation system dedicated by Traer Creek Metropolitan District to the Town pursuant to the following terms: a. The connection shall be limited to four (4) connections to the Town’s raw water irrigation system described as (i) the Connection for Lot 2, (ii) the Tap for Trees on Post Blvd., (iii) the Connection West side of Property and (iv) For Trees along Post Blvd (“Raw Water System Connections”) as depicted in Exhibit B; b. The Raw Water System Connections may be relocated at the expense of the property owner served by such Raw Water System Connections provided that the areas to be Page 5 of 10 Version 9 irrigated shall not be wholly relocated and that any adjustment or expansion of the irrigation area shall require Town’s prior review and approval; c. The Raw Water System Connections shall only serve to irrigate the same areas as irrigated and but not to exceed a total of two million gallons of usage per year and subject to the actual availability of raw water in the raw water irrigation system; d. The Grantor or property owner served by the Raw Water System Connections shall install water meters acceptable to the Town at no expense to the Town by May 1, 2014; e. The Town shall not charge any plant investment fees, raw water system tap fees, or any user fees for the Raw Water System Connections; and f. The Town reserves the right to charge such raw water system tap fees, user fees and assessments as determined appropriate by the Town for any additional connections or expansion of water use through existing connections to the Town’s raw water irrigation system. [Signature Page Follows] Page 6 of 10 Version 9 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first set forth above. GRANTOR: TRAER CREEK-RP LLC, a Colorado limited liability company By: Traer Creek LLC, a Colorado limited liability company, its Manager By:__________________________ Marcus Lindholm, Manager STATE OF COLORADO ) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _____ day of __________, 2013, by ___________________, as ____________ of Traer Creek LLC, a Colorado limited liability company, as Manager of Traer Creek-RP LLC, a Colorado limited liability company. Witness my hand and official seal __________________________________________ [ S E A L ] My Commission Expires:______________________ Page 7 of 10 Version 9 GRANTEE: TOWN OF AVON, a home rule municipal corporation of the State of Colorado By:_______________________________ Attest:________________________________ Rich Carroll, Mayor Patty McKenny, Town Clerk STATE OF COLORADO ) )ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this _____ day of __________, 2013, by Rich Carroll, as Mayor and Patty McKenny, as Town Clerk of the Town of Avon, of the State of Colorado. Witness my hand and official seal __________________________________________ [ S E A L ] My Commission Expires:______________________ Page 8 of 10 Version 9 EXHIBIT A Easement Area Page 9 of 10 Version 9 Page 10 of 10 Version 9 EXHIBIT B Connections to Wet Well {00225779 / 1 } SPECIAL WARRANTY DEED This Special Warranty Deed dated this ______ day of ________________, 2013, is from the Traer Creek Metropolitan District, a quasi-municipal corporation and political subdivision of the State of Colorado (“Grantor”), to the Town of Avon, a home rule municipal corporation of the State of Colorado (“Grantee”), whose address is P.O. Box 975, One Lake Street, Avon, Colorado 81620. For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor hereby grants, bargains, sells and conveys to Grantee all of Grantor’s right, title and interest in and to the water rights described in Exhibit A, located in Eagle County, Colorado (the “Water Rights”), free and clear of all liens and encumbrances, together with the associated rights and benefits of the changes of water rights, plan for augmentation and exchange decreed by the District Court in and for Water Division No. 5 in Case No. 97CW306 (the “Augmentation Plan”) as such decree relates to the water rights in Exhibit A. Together with all diversion ditches, dams, spillways, spillway channels, pipelines, headgates and structures, pumps, casings and other improvements and easements associated or used in connection with the Water Rights (including without limitation rights of access thereto) as becomes necessary from time to time to provide municipal water service or raw water irrigation service to the Property described in the attached Exhibit B (“Appurtenances”), subject to The Village (at Avon) Raw Water System Operations and Maintenance Agreement being executed by Grantor and Grantee of even date herewith. Grantor, for itself, its successors and assigns, covenants and agrees that it will warrant title and forever defend the Water Rights and Appurtenances in the quiet and peaceable possession of Grantee, its successors and assigns, against all and every person or persons claiming the whole or any part thereof, by, through, or under Grantor. TRAER CREEK METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado By: ______________________________________ Name: ____________________________________ Title: _____________________________________ {00225779 / 1 } STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this ___ day of ____________, 2013 by ________________________, as President of the Traer Creek Metropolitan District. Witness my hand and official seal. My commission expires: _________________. [SEAL] ___________________________________ Notary Public {00225779 / 1 } EXHIBIT A TO SPECIAL WARRANTY DEED FROM TRAER CREEK METROPOLITAN DISTRICT TO TOWN OF AVON Description of Water Rights 1. Water Storage Rights. A. Nottingham Reservoir: In Case No. 94CW113, Water Division No. 5, Nottingham Reservoir was conditionally decreed for 22 acre-feet for domestic, commercial, industrial, augmentation and other uses with an appropriation date of May 31, 1994, and an adjudication date of December 31, 1994. In the same case, the reservoir was also decreed 22 acre-feet absolute for irrigation and stock watering. Nottingham Reservoir is an on-channel reservoir located on Nottingham Gulch, a tributary of the Eagle River. The point of intersection of the Nottingham Dam axis with the centerline of the easterly spillway is located in the SW1/4 of the NW1/4 of Section 8, T. 5 S., R. 81 W., at a point whence the northwesterly corner (BLM Brass Cap) of said Section 8 bears N. 27°34′30″W. 1800 feet. Nottingham Reservoir has been decreed as an augmentation source in Case No. 97CW306. B. The Village (at Avon) Lake Nos. 1 and 2: The Village (at Avon) Lake Nos. 1 and 2, with an adjudication date of December 31, 1997, and an appropriation date of May 20, 1997, as decreed by the District Court, Water Division No. 5, State of Colorado, in the decree of the Water Court in Case No. 97CW306 entered on April 9, 2001, for a combined total of 27 acre-feet, conditional, with the right to fill and refill, and with the following legal descriptions: The Village (at Avon) Lake No. 1: This lake is located in the S1/2 SE1/4 NE1/4 and the N1/2 NE1/4 SE1/4 of Section 12, T. 5 S., R. 82 W. of the 6th P.M., Eagle, County, Colorado. The Village (at Avon) Lake No. 2: This lake is located in the NW1/4 SE1/4 of Section 7, T. 5 S., R. 81 W. of the 6th P.M., Eagle County, Colorado. The Village (at Avon) Lake Nos. 1 and 2 are decreed to fill and refill from the Nottingham and Puder Ditch, limited to a diversion rate of 5 c.f.s. 2. Direct Flow Rights. Any and all direct flow rights and other water rights associated with the raw (non- potable) water system approved as part of the plan for augmentation and exchange decreed by the District Court, Water Division No. 5, State of Colorado, in Case No. 97CW306 entered on April 9, 2001, including the right to divert raw (non-potable) water through the Nottingham and Puder Ditch for irrigation, flow through and recreational purposes. {00225779 / 1 } EXHIBIT B PARCEL 1 DESCRIPTION That part of the E 1/2 of Section 12, Township 5 South, Range 82 West of the Sixth Principal Meridian, Eagle County, Colorado, according to the Dependent Resurvey and Survey of said Township and Range, accepted September 7, 1977 by the Department of the Interior Bureau of Land Management in Washington, D.C., together with parts of Sections 7, 8, 9 & 17, Township 5 South, Range 81 West of the Sixth Principal Meridian, Eagle County, Colorado, according to the Dependent Resurvey of said Township and Range, accepted November 1, 1943 by the Department of the Interior General Land Office in Washington, D.C., described as a whole as follows: Beginning at the Northwest corner of said Section 7; thence along the northerly line of said Section 7, N88°49’24”E 2791.46 feet, to the North 1/4 corner of said Section 7; thence, departing said northerly line, along the easterly line of the NW 1/4 of said Section 7, S00°11’12”E 2621.00 feet, to the northerly right-of-way line of Interstate Highway No. 70, as described in the deed recorded in Book 223 at Page 982 in the office of the Eagle County, Colorado, Clerk and Recorder; thence, along said northerly right-of-way line, S69°28’35”E 196.48 feet, to the northerly line of the SE 1/4 of said Section 7; thence, along said northerly line, N89°50’40”E 2572.71 feet, to the West 1/4 corner of said Section 8; thence, along the westerly line of said Section 8, N00°10’53”W 2738.19 feet to the Northwest corner of said Section 8; thence, along the northerly line of said Section 8, N88°40’41”E 2758.98 feet, to the North 1/4 corner of said Section 8; thence, continuing along said northerly line, N88°42’58”E 850.00 feet; thence, departing said northerly line, S56°30’00”E 1274.62 feet; thence S17°38’30”E 1593.20 feet; thence S27°39’30”W 2121.59 feet; thence South 899.93 feet; thence East 2595.53 feet, to the easterly line of the SW 1/4 SW 1/4 of said Section 9; thence, along said easterly line S01º33’13”W 603.34 feet, to the Southeast corner of said SW 1/4 SW 1/4; thence, along the southerly line of said Section 9, N89º55’04”W 1371.96 feet, to the Southwest corner of said Section 9; thence, along the easterly line of said Section 17, S01°41’49”E 170.00 feet, to the centerline of the Eagle River; thence the following four courses along said centerline (Filum aquce): (1) N89°24’49”W 1037.90 feet; (2) N86°07’49”W 472.00 feet; (3) N89°29’49”W 538.00 feet; (4) S82°33’11”W 595.15 feet, to the westerly line of the NE 1/4 of said Section 17; thence, along said westerly line, N00°20’55”W 227.74 feet, to the North 1/4 corner of said Section 17; thence, along the northerly line of said Section 17, S89°23’36”E 1316.69 feet, to the Southwest corner of the SE 1/4 SE 1/4 of said Section 8; thence, along the westerly line of said SE 1/4 SE 1/4, N00°51’07”E 1398.90 feet, to the SE 1/16 corner of said Section 8; thence, along the southerly line of the NW 1/4 SE 1/4 of said Section 8, N89°54’54”W 1333.58 feet, to the CS 1/16 corner of said Section 8; thence, along the southerly line of the NE 1/4 SW 1/4 of said Section 8, N89°58’35”W 1366.46 feet, to the SW 1/16 corner of said Section 8; thence, along the easterly line of the SW 1/4 SW 1/4 of said Section 8, S00°01’37”E 1376.08 feet, to the Southeast corner of said SW 1/4 SW 1/4; thence, along the southerly line of said Section 8, N89°32’28”W 529.28 feet, to the northerly right-of-way line of the Denver and Rio Grande Western Railroad; thence the following ten courses along said northerly right-of-way line: (1) 132.91 feet along the arc of a curve to the right, having a radius of 2033.48 feet, an internal angle of 03°44’42”, and a chord that bears N70°30’09”W 132.89 feet; (2) N68°37’48”W 527.88 feet; (3) 231.12 feet along the arc of a curve to the left, having a radius of 5779.70 feet, an internal angle of 02°17’28”, and {00225779 / 1 } a chord that bears N69°46’32”W 231.09 feet; (4) S00°14’31”E 21.20 feet; (5) 1142.50 feet along the arc of a curve to the left, having a radius of 5759.70 feet, an internal angle of 11°21’55”, and a chord that bears N76º32’02”W 1140.63 feet; (6) N82°13’00”W 1136.53 feet; (7) 548.06 feet along the arc of a curve to the right, having a radius of 1880.00 feet, an internal angle of 16°42’10”, and a chord that bears N73°51’55”W 546.11 feet; (8) N00°12’23”W 22.04 feet; (9) 28.04 feet along the arc of a curve to the right, having a radius of 1860.00 feet, an internal angle of 00°51’50”, and a chord that bears N64º47’55”W 28.04 feet; (10) N64°22’00”W 377.10 feet; thence, departing said northerly right-of-way line, S25°38’00”W 100.00 feet, to the southerly right-of-way line of the Denver and Rio Grande Western Railroad, also being on the existing Town of Avon Boundary; thence, along said southerly right-of-way line and existing Town of Avon Boundary the following three courses along the northerly line of the parcel annexed to the Town of Avon: by Ordinance 86-10: (1) N64°22’00”W 2064.00 feet; (2) 968.59 feet along the arc of a curve to the left, having a radius of 34327.50 feet, an internal angle of 01°37’00”, and a chord that bears N65°10’30”W 968.56 feet; (3) N65°59’00”W 527.60 feet; thence, continuing along said southerly right-of-way line and existing Town of Avon Boundary the following course along the northerly line of the parcel annexed to the Town of Avon by Ordinance 81-38, N65°58’08”W 677.83 feet; thence, departing said southerly right-of-way line and continuing along the boundary of the parcel annexed to the Town of Avon by Ordinance 81-38, N24°01’52”E 100.00 feet, to the northerly right-of-way line of the Denver and Rio Grande Western Railroad and the Southeast corner of Lot 22, Benchmark at Beaver Creek; thence, departing said northerly right-of-way line and continuing along the existing Town of Avon Boundary the following two courses along the easterly line of the parcel originally incorporated as the Town of Avon as defined in Ordinance 78-4: (1) N18°59’40”E 995.99 feet; (2) a calculated distance and bearing of N23°55’02”W 268.23 feet (record distance and bearing of N25°10’03”W 235.72 feet), to the southerly line of the NE 1/4 NE 1/4 of said Section 12; thence, along said southerly line and existing Town of Avon Boundary the following course along the southerly line of the parcel annexed to the Town of Avon by Ordinance 81-20, a calculated distance and bearing of S89°58’41”E 1192.32 feet (record distance and bearing of S89°57’07”E 1184.14 feet), to the westerly line of said Section 7; thence, along said westerly line and existing Town of Avon Boundary the following course along the easterly line of the parcels annexed to the Town of Avon by Ordinance 81-20 and Ordinance 81-34, a measured distance and bearing of N00°11’27”W 1321.54 feet (record distance and bearing of N00º10’14”W 660.82 feet per Ordinance 81-20 and record distance and bearing of N00°10’14”W 660.83 per Ordinance 81-34), to the point of beginning, containing 967.07 acres, more or less, EXCEPTING FROM the foregoing parcel description all portions of the described property that constitute the Interstate Highway No. 70 Right-of-Way and the Denver Rio Grande Western Railroad Right-of-Way, which portions contain 99.24 acres, more or less. The net area of the parcel being included in this annexation is 867.83 acres, more or less. {00225779 / 1 } PARCEL 2 DESCRIPTION That part of Sections 8, 9 & 10, Township 5 South, Range 81 West of the Sixth Principal Meridian, Eagle County, Colorado, according to the Dependent Resurvey of said Township and Range, accepted November 1, 1943 by the Department of the Interior General Land Office in Washington, D.C., described as follows: Beginning at the North 1/4 corner of said Section 8; thence along the northerly line of said Section 8, N88°42’58”E 850.00 feet, to the True Point of Beginning; thence, continuing along said northerly line, N88°42’58”E 1920.72 feet, to the Northwest corner of said Section 9; thence, along the northerly line of said Section 9, N83°29’30”E 2773.27 feet, to the North 1/4 corner of said Section 9; thence, continuing along said northerly line, N83º24’12”E 2772.60 feet, to the Northwest corner of said Section 10; thence, along the northerly line of said Section 10, N86°39’24”E 2681.23 feet; thence, departing said northerly line, S01º34’07”W 2699.66 feet, to southerly line of the SE 1/4 NW 1/4 of said Section 10; thence, along the southerly line of said SE 1/4 NW 1/4, S86°32’23”W 1304.06 feet, to the Center West 1/16 corner of said Section 10; thence, along the easterly line of the NW 1/4 SW 1/4 of said Section 10, S01°32’50”W 1349.33 feet, to the Southwest 1/16 corner of said Section 10; thence, along the southerly line of said NW 1/4 SW 1/4, S86º32’47”W 1384.91 feet, to the South 1/16 corner of said Sections 9 & 10; thence, along the southerly line of the NE 1/4 SE 1/4 of said Section 9, S77º10’15”W 1413.37 feet, to the Southeast 1/16 corner of said Section 9; thence, along the easterly line of the SW 1/4 SE 1/4 of said Section 9, S01º33’02”W 1475.32 feet, to the East 1/16 corner of said Section 9 and Section 16 of said Township 5 South, Range 81 West of the Sixth Principal Meridian; thence, along the southerly line of said SW 1/4 SE 1/4, S72º20’31”W 1450.43 feet, to the South 1/4 corner of said Section 9; thence, along the westerly line of said SW 1/4 SE 1/4, N01°34’18”E 1601.52 feet, to the Center South 1/16 corner of said Section 9; thence, along the southerly line of the NE 1/4 SW 1/4 of said Section 9, S86º07’30”W 1378.19 feet, to the Southwest 1/16 corner of said Section 9; thence, along the easterly line of the SW 1/4 SW 1/4 of said Section 9, S01º33’13”W 903.02 feet, to the existing Town of Avon Boundary; thence, departing said easterly line, the following five courses along said existing Town of Avon Boundary: (1) West 2595.53 feet; (2) North 899.93 feet; (3) N27°39’30”E 2121.59 feet; (4) N17°38’30”W 1593.20 feet; (5) N56°30’00”W 1274.62 feet, to the True Point of Beginning, containing 922.16 acres, more or less. {00201284 / 5 }{00201284 / 5 } 1 THE VILLAGE (AT AVON) RAW WATER SYSTEM OPERATIONS AND MAINTENANCE AGREEMENT This The Village (at Avon) Raw Water System Operations and Maintenance Agreement (the “Agreement”) is made and entered into as of this _____ day of __________________, 2013, by and between the Town of Avon, a home rule municipal corporation of the State of Colorado (the “Town”), and the Traer Creek Metropolitan District, a quasi-municipal corporation and political subdivision of the State of Colorado (“TCMD”). RECITALS A. WHEREAS, the Town, TCMD and other parties entered into that certain Settlement Term Sheet dated October 7, 2011, in order to settle litigation among the parties in consolidated civil action Case No. 2008CV385, Eagle County District Court, arising from various disputes concerning The Village (at Avon) real estate development which property is legally described in the attached Exhibit A (the “Property”). Pursuant to paragraph 3(e) of the Settlement Term Sheet, TCMD agreed to convey to the Town certain water rights that service the Property, which in turn are to be conveyed from the Town to the Upper Eagle Regional Water Authority (“Authority”). The Town, TCMD, the Authority and other parties subsequently entered into that certain Traer Creek Water Storage Tank Agreement, dated ________________________, 2013, which set forth, among other things, which water rights would be conveyed and the specific terms and conditions for the conveyance; and B. WHEREAS, TCMD has conveyed to the Town by Special Warranty Deeds the water rights described in the attached Exhibits B and C (the “Water Rights”), together with the rights and benefits of the plan for augmentation and exchange related to said water rights as decreed for the Property by the District Court for Water Division No. 5 in Case No. 97CW306 (the “Augmentation Plan”), and the historic consumptive use credits dedicated to the Augmentation Plan described in the attached Exhibit D (the “HCU Credits”). The Augmentation Plan allows for both potable and raw (non-potable) water service to be provided to the Property using a combination of the Water Rights and the HCU Credits; and C. WHEREAS, by another Special Warranty Deed, the Town has conveyed to the Authority the Water Rights that provide potable water service to the Property (e.g. the direct flow rights decreed to the Metcalf Ditch and Raw Water Booster Pump), along with the HCU Credits dedicated to the Augmentation Plan, reserving unto the Town up to 74.3 acre-feet of the HCU Credits allocated to replace out-of-priority diversions from raw (non-potable) water irrigation of 38.27 acres and evaporation from up to 2.7 surface acres of lakes on the Property, in accordance with the assumptions and depletion factors set forth in Schedules A, B and C of the Augmentation Plan; and D. WHEREAS, pursuant to paragraph 6(D)(2) of the Case No. 97CW306 decree, up to 5 cfs of raw (non-potable) water may be diverted at the Nottingham and Puder Ditch for filling and refilling The Village (at Avon) Lake Nos. 1 and 2. Alternatively, up to 5 cfs may be diverted by augmentation, in which case the stored water is accounted for against the HCU Credits. {00201284 / 5 }{00201284 / 5 } 2 Pursuant to paragraph 7(E) of the Augmentation Plan, raw (non-potable) water may also be diverted through the Nottingham and Puder Ditch for irrigation, flow through and recreational purposes, in which case the depletions from such use are augmented by the HCU Credits; and E. WHEREAS, the Town has agreed to operate the raw (non-potable) water system for the Property described in the Case No. 97CW306 decree, including the Nottingham and Puder Ditch and The Village (at Avon) Lake Nos. 1 and 2, subject to the terms and conditions of this Agreement, and with the understanding that the Town is not obligated to construct, maintain or repair The Village (at Avon) Lake Nos. 1 and 2. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and TCMD do hereby state and agree as follows: AGREEMENT 1. Operation and Maintenance of the Raw (Non-Potable) Water System. The Town will operate and maintain the raw (non-potable) water system for the Property as decreed in Case No. 97CW306, including the Nottingham and Puder Ditch, and any and all diversion ditches, pipelines, headgates and structures, pumps, casings, wet wells and other improvements associated with or used in connection with the raw (non-potable) water system that serves or will serve the Property, except that TCMD will operate and maintain any part of the raw (non- potable) water system that solely benefits the portion of the Property known as Tract E, Final Plat, The Village (at Avon) Filing 1, Recorded on May 8, 2002, at Reception No. 795007 (“Tract E”). The maintenance costs for which TCMD will continue to be responsible include the Tract E wet well, and any other pipes, valves, pumps, or other fixtures required to deliver water to irrigate and operate the water feature on Tract E. The Town will be solely responsible for all other costs incurred to operate and maintain the raw (non-potable) water system, including any costs for repairs and maintenance of the Nottingham and Puder Ditch and its appurtenances. The Town reserves the right to establish reasonable fees and charges and to impose regulations for the operation of the raw (non-potable) water system for irrigation of areas which are not owned by the Town or included in road right-of-ways dedicated to the Town. However, the Town shall not require the provision or dedication of new water rights as a condition of providing raw (non- potable) water service for the irrigation of up to 38.27 acres and lake evaporation from up to 2.7 surface acres of lakes on the Property so long as the decree in Case No. 97CW306 is applicable to determine the water needed for such uses. TCMD will continue to utilize the Nottingham and Puder Ditch water right conveyed to the Town for irrigating Tract E and any other areas mutually agreed to by the parties and will report its total water usage to the Town under this right. 2. Operation and Maintenance of The Village (at Avon) Lake Nos. 1 and 2. The Village (at Avon) Lake Nos. 1 and 2 have not been constructed and the precise location or ownership of the reservoir structures has not yet been determined. If The Village (at Avon) Lake Nos. 1 and 2 are constructed as part of the development of the Property, then the construction, repair and maintenance of The Village (at Avon) Lake Nos. 1 and 2 will be the responsibility of TCMD or the developer. However, if The Village (at Avon) Lake Nos. 1 and 2 are built as a public amenity by the Town, then the construction, repair and maintenance will be the {00201284 / 5 }{00201284 / 5 } 3 responsibility of the Town. The Town and TCMD may also wish to dedicate one lake to the Town and one lake to TCMD. The Town and TCMD will mutually determine the location of The Village (at Avon) Lake Nos. 1 and 2, subject to the approval of the developer. Once The Village (at Avon) Lake Nos. 1 and 2 reservoir structures are completed, the Town will be responsible for keeping the structures full of water at all times practicable, either by diverting under the 5 cfs right decreed to fill the structures in Case No. 97CW306 when water is available in priority or with the HCU Credits allocated to replace evaporation from the lakes if the junior right is out of priority. Water stored in The Village (at Avon) Lake Nos. 1 and 2 will not be used for augmentation purposes without the written consent of both parties to this Agreement. 3. Accounting. The Town will be responsible for reporting to the Authority all diversions at the Nottingham and Puder Ditch and the two wet wells connected to the Nottingham and Puder Ditch for the raw (non-potable) water irrigation system, total acreage irrigated by the raw (non-potable) water system and diversions to storage in and releases from the Village (at Avon) Lake Nos. 1 and 2. The parties anticipate that the Authority will be responsible for all accounting, recording and reporting for operation of the Augmentation Plan. 4. Future Water Court Filings. The parties anticipate that the Authority will file and prosecute all diligence applications and/or applications to the Water Court to make water rights absolute for the conditional water rights decreed in Case No. 97CW306. The Town may join any such applications as a Co-Applicant with the Authority, as was the practice with TCMD and the Authority in Case No. 07CW83. TCMD will cooperate with the Authority and the Town to provide all information regarding the activities taken by TCMD during the subject diligence period towards putting the subject water rights to beneficial use. 5. Additional Irrigated Area or Irrigation Consumption. The Augmentation Plan contemplated that up to 38.27 acres of the Property would be irrigated by the raw (non-potable) water system. Pursuant to the assumptions and depletion factors decreed in Case No. 97CW306, irrigation of 38.27 acres will require approximately 68.9 acre-feet per year of augmentation water and keeping The Village (at Avon) Lake Nos. 1 and 2 full will require up to 5.4 acre-feet of augmentation water for evaporation replacement from a maximum of 2.7 acres of lake surface area. Therefore, up to 74.3 acre-feet of the HCU Credits have been reserved to the Town and are dedicated to such uses and shall not be available for any other uses under the Augmentation Plan without the written consent of the parties to this Agreement. If more than 38.27 acres of the Property is to be irrigated by the raw (non-potable) water system and there are not enough HCU Credits available under the Augmentation Plan to provide both potable and raw (non-potable) water service to the Property based on the current or anticipated build-out of the Property, TCMD will be responsible for providing or causing to provide any and all water rights necessary to irrigate the additional area or otherwise to make up the shortfall. 6. Reduced Irrigation or Lake Evaporation. If the entire 74.3 acre-feet of HCU Credits reserved by the Town is not needed to fully augment the full extent of raw (non-potable) water uses on the Property after full build-out, or if it is otherwise determined that there are excess HCU Credits reserved by the Town that are not necessary for augmenting out-of-priority depletions from the raw (non-potable) water system on the Property under the depletion factors {00201284 / 5 }{00201284 / 5 } 4 and other assumptions decreed in the Augmentation Plan, the excess of the reserved HCU Credits may be reallocated to augment potable uses as allowed for under the Augmentation Plan, subject to written approval of the parties to this Agreement, such approval to not be unreasonably withheld and subject to the approval of the Authority. Upon such approvals of the reallocation of excess HCU Credits from the raw (non-potable) water system to potable water uses, the Town will convey by special warranty deed the approved amount of such excess HCU Credits to the Authority. 7. Remedies. In the event of a breach or threatened breach of this Agreement, the non-breaching party shall be entitled to an immediate injunction restraining the breaching party from such breach or threatened breach, including both preliminary and final injunctions. Such remedy shall be in addition to all other remedies available at law or in equity, including but not limited to, damages, costs and reasonable attorneys’ fees. The prevailing party in any litigation arising out of or related to this Agreement shall be awarded its reasonable attorneys’ fees and costs through all appeals in addition to any other remedy provided. 8. Waiver. The failure of a party to insist upon strict performance of any of the provisions contained in this Agreement shall not be deemed a waiver of any rights or remedies that such party may have, and shall not be deemed a waiver of any subsequent breach or default of the performance of any of the obligations contained herein for the same or any other party. 9. Amendment. This Agreement may be amended only in a writing executed by the parties, their heirs, successors or assigns. To be effective, any amendment must be recorded in the real property records of Eagle County, Colorado. 10. Severability. If any of the provisions of this Agreement or any paragraph, sentence, clause, phrase, word or section, or the application thereof, is in any circumstances invalidated, such invalidity shall not affect the validity of the remainder of this Agreement, and the application of such provision in any other circumstances shall not be affected thereby. 11. Duration. This Agreement shall run with title to the Water Rights and Augmentation Plan, shall be binding upon any current or future owners of the Water Rights and Augmentation Plan, and their successors and assigns, and shall be perpetual. 12. Governing Law. This Agreement will be construed under and be governed by the laws of the State of Colorado. Any legal action relating to this Agreement will be instituted and prosecuted in the District Court in and for Eagle County, Colorado. 13. Recording. This Agreement shall be recorded in the real property records of Eagle County, Colorado. IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above written. (remainder of page left intentionally blank) {00201284 / 5 }{00201284 / 5 } 5 THE TOWN: THE TOWN OF AVON, a home rule municipal corporation of the State of Colorado By: Name: Title: STATE OF COLORADO ) ) :ss COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this ___ day of _____________, 2013, by ________________________, as ________________ of the Town of Avon. Notary Public My Commission expires: TCMD: TRAER CREEK METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado By: Name: Daniel J. Leary Title: President STATE OF COLORADO ) ) :ss COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this ___ day of _____________, 2013, by Dan Leary, as President of the Traer Creek Metropolitan District. Notary Public My Commission expires: Amended and Restated Nottingham Dam Easement and Assignment Agreement June 6, 2013 Page 1 of 1 RECORDING REQUESTED BY AND WHEN RECORDED PLEASE RETURN TO: Town of Avon P.O. Box 975 Avon, CO 81620 attn: Patty McKenny, Town Clerk AMENDED AND RESTATED NOTTINGHAM DAM EASEMENT AND ASSIGNMENT AGREEMENT THIS AMENDED AND RESTATED NOTTINGHAM DAM EASEMENT AND ASSIGNMENT AGREEMENT (“Agreement”) is made and entered into as of this ____ day of __________, 2013 (“Effective Date”) by and between TRAER CREEK-RP LLC, a Colorado limited liability company (“Developer”), whose address is P.O. Box 9429, 0101 Fawcett Road, Suite 210, Avon, CO 81620, TRAER CREEK METROPOLITAN DISTRICT, a quasi- municipal corporation and political subdivision of the State of Colorado (“TCMD”) c/o Special District Management Services, Inc., 141 Union Boulevard, Suite 150, Lakewood, Colorado 80228, and the TOWN OF AVON, a home rule municipal corporation of the State of Colorado (“Town”), whose address is P.O. 75, 1 Lake Street, Avon, CO 81620 (collectively, the “Parties”). RECITALS WHEREAS, Developer and TCMD entered into that certain Nottingham Dam Easement Agreement, dated June 9, 2004 and recorded August 25, 2004 at Reception No. 888905 of the real property records of Eagle County, Colorado, (“Original Easement Agreement”); WHEREAS, Developer, TCMD, Town and certain other parties entered into a Settlement Term Sheet, dated October 7, 2011, to settle and resolve various legal claims asserted in consolidated cases 2008 CV 384 and 2010 CV 316 in the district court for Eagle County, Colorado (“STS”). The STS includes, among other terms, an obligation of the Town to assume certain maintenance obligations of TCMD, including assumption of TCMD’s maintenance obligations related to Nottingham Dam, which maintenance obligations to be assumed by Town are defined as stated in Section 4.2(c) of the Consolidated, Amended and Restated Annexation and Development Agreement for the Village (at Avon), dated ____________, 2013 (“Development Agreement”); and, WHEREAS, for the purpose of implementing the pertinent terms of the STS and the Development Agreement related to Town’s assumption of TCMD’s maintenance obligations for the Nottingham Dam, Developer and TCMD desire to amend certain terms of the Original Easement Agreement, as more fully set forth herein, and TCMD desires to assign all of its rights, title, interests and obligations in, under and to the Original Easement Agreement to Town, and Town desires to assume all such rights, title, interests and obligations from TCMD as amended and stated herein, and Developer desires to consent to such assignment in accordance with the terms stated herein. Amended and Restated Nottingham Dam Easement and Assignment Agreement June 6, 2013 Page 2 of 2 NOW, THEREFORE, in consideration of the premises, the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: COVENANTS AND AGREEMENT 1. Assignment. TCMD hereby assigns all of its rights, title, interests and obligations to the Town as set forth and established in the Original Easement Agreement, Developer hereby consents and agrees to such assignment of the Original Easement Agreement, and Town hereby accepts such assignment of the Original Easement Agreement, subject to the terms and conditions set forth in this Agreement. By this Agreement becoming effective, Developer, TCMD and Town hereby agree that TCMD shall have no further rights, title, interests or obligations under the Original Easement Agreement. 2. Amended and Restated Nottingham Dam Easement Agreement. Developer hereby amends and restates the Original Easement Agreement in its entirety as stated in this Agreement, and Town agrees and accepts the rights, title, interests and obligations to the Nottingham Dam as stated in this Agreement. To the extent the Original Easement Agreement established any rights, title, interests or obligations which are more or less than as stated in this Agreement, Developer and Town agree that the rights, title, interests and obligations conveyed to and assumed by Town shall only be to the extent stated in this Agreement, that Developer and Town hereby release any rights and obligations of the Original Easement Agreement which are inconsistent with this Agreement, and that the intent and effect is that this Agreement shall replace and supersede the Original Easement Agreement in its entirety. 3. Grant of Easement. Developer grants, sells and conveys to Town, its successors and assigns a non-exclusive easement on, over, across, upon and through the Nottingham Dam property, in the location generally depicted on Exhibit A attached hereto (the “Nottingham Dam Easement”) to access, maintain, repair, replace, improve, reconstruct, expand, reduce, decommission and/or remove the Nottingham Dam and impoundment area. The Nottingham Dam Easement shall also include a non-exclusive easement on, over, across, upon and through such additional real property located adjacent to the real property described on Exhibit A as may be reasonably necessary for Town to exercise its rights herein. Notwithstanding the foregoing or any other provision of this Agreement, Developer and Town agree that Town’s obligations assumed by Town under this Agreement shall be construed, interpreted and applied such that Town shall have sole discretion to determine the appropriate maintenance of the Nottingham Dam in accordance with the minimum requirements of the State of Colorado Division of Water Resources as determined by the Dam Safety Engineer or other appropriate State official, which maintenance discretion shall include but not be limited to maintenance, repair, replacement, improvement, reconstruction, expansion, reduction, decommission, removal and deferral of the Nottingham Dam and any activity related to the Nottingham Dam in accordance with Section 4.2(c) of the Development Agreement. Developer acknowledges that the Town is not the current designated owner of the Nottingham Dam according to the records of the Dam Safety Branch, Division of Water Resources, and Developer agrees to reasonably cooperate with Town as Amended and Restated Nottingham Dam Easement and Assignment Agreement June 6, 2013 Page 3 of 3 necessary to allow Town to work directly with the Division of Water Resources with regard to maintenance of the Nottingham Dam and performance of Town’s duties under this Agreement. Developer further acknowledges and agrees that Town shall not be liable or responsible for maintenance of the Nottingham Dam to the extent that Developer or Piney Valley Ranches Trust fails to reasonably cooperate or unreasonably interferes with Town’s actions to work directly with the Division of Water Resources and such failure to cooperate or interference inhibits, restricts or prohibits the Town’s ability to maintain the Nottingham Dam in accordance with the terms of this Agreement. Town agrees to promptly provide to Developer any correspondence to or from the Division of Water Resources and agrees to invite a representative of the Developer to any meetings with the Division of Water Resources to the extent such correspondence or meetings are related to the Nottingham Dam. The Town acknowledges that this Nottingham Dam Easement is non-exclusive and that Developer may seek to develop areas located uphill and downhill of the Nottingham Dam Easement; therefore, this Agreement shall not be construed to restrict Developer’s right to cross the Nottingham Dam Easement area created by this Agreement provided that Developer does not damage the Nottingham Dam structure. In the event that Town decommissions or abandons the Nottingham Dam Town shall comply with any regulatory requirements of the Division of Water Resources concerning decommissioning of the Nottingham Dam. Developer may request that Town release and terminate this Agreement in writing if the Town decommissions or abandons the Nottingham Dam and Town shall not unreasonably refuse such request. 4. Subjacent and Lateral Support. Town shall have the right of subjacent and lateral support for the Nottingham Dam improvements including, without limitation, improvements to the dam, outlet structure(s), spillway and spillway channel, impoundment area and any other improvement deemed necessary in the reasonable discretion of the Town or as required by the Division of Water Resources over the Nottingham Dam and related improvements. Developer shall not take any action which would impair the lateral or subjacent support for said improvements. 5. Access. The Nottingham Dam Easement includes a non-exclusive right of reasonable vehicular and pedestrian ingress, egress and access, for use by Town and its employees, agents and contractors in connection with the Nottingham Dam, on, over, upon, across and along the existing dirt road located on the Nottingham Dam property and the adjacent property in the location generally depicted on Exhibit A attached hereto (“Nottingham Dam Access Easement”). 6. Improvement of the Nottingham Dam Property. A. Except as specifically set forth herein, the Nottingham Dam Easement does not include any right to construct any new roads, improvements or structures, on, over, across, through or upon any portion of the Nottingham Dam property or the adjacent property. Any such construction shall be subject to the prior written consent of Developer, which consent shall not be unreasonably withheld or delayed. B. Developer, and its respective successors and assigns, shall have the right to use the Nottingham Dam Easement property and the adjacent property and the right to Amended and Restated Nottingham Dam Easement and Assignment Agreement June 6, 2013 Page 4 of 4 construct improvements and structures within the Nottingham Dam Easement property and the adjacent property, including the right to construct roads on, across, over or under the Nottingham Dam structure and improvements, so long as any such Developer improvements or structures do not degrade the structural integrity of the Nottingham Dam structure or otherwise unreasonably interfere with the Nottingham Dam Easement or the Nottingham Dam Access Easement. 7. Maintenance of the Nottingham Dam Easement. Town, and its successors and assigns, shall maintain the Nottingham Dam Easement in accordance with the minimum requirements of the Division of Water Resources, including repairing any damage to any portion of the Nottingham Dam, other than any damage resulting from the acts or omissions of Developer. Town, and its successors and assigns, shall be solely responsible for, and bear the entire cost and expense of, any such maintenance, repair and/or replacement associated with the Nottingham Dam. In addition, Town shall keep the Nottingham Dam and its banks in an attractive condition and shall re-grade and remove vegetation and debris from the banks of the Nottingham Dam. Town’s obligations in this Paragraph 7 shall be subject to the limitations of Town’s obligations stated in Paragraph 3 above and as stated in Section 4.2(c) of the Development Agreement. Town’s obligations in this Paragraph 7 shall be subject to annual budget and appropriation by Town. Notwithstanding the foregoing, Town sole’s discretion shall not be interpreted as a right to avoid compliance with the minimum requirements of Division of Water Resources. The failure of Town to budget and appropriate funds in order to perform Town’s obligations stated in this Paragraph 7 shall not constitute a default or breach of this Agreement. 8. No Public Dedication. Nothing contained in this Agreement shall be deemed to be a dedication of any portion of the Nottingham Dam Easement, the adjacent property or the Nottingham Dam Access Easement to the general public or for the general public or for any public purpose whatsoever, it being the intent of the Parties that the Nottingham Dam Easement, the adjacent property and the Nottingham Dam Access Easement are and shall continue to be private unless and until all or any portion of the same are dedicated by separate instrument. 9. Covenant Running With the Land. Each and every obligation of the Parties contained herein is made for the benefit of the other. All of the provisions of this Agreement shall be deemed a covenant running with the land pursuant to applicable law, and shall be binding upon the successors and assigns of each of the Parties hereto. Notwithstanding the foregoing and subject to Paragraph 24, if any party sells all or any portion of its interest in property subject to this Agreement, such party shall thereupon be released and discharged from any and all obligations arising under this Agreement and in connection with the property sold by it after the sale and conveyance of title but shall remain liable for all obligations arising under this Agreement prior to the sale and conveyance of title. The new owner of any such property or portion thereof (including, without limitation, anyone who acquires its interest by foreclosure, trustee sale or otherwise) shall be liable for all obligations arising under this Agreement with respect to such property or portion thereof after the date of sale and conveyance of title. 10. Covenants. Developer, TCMD and Town each covenant for and on behalf of each of the other Parties that they have taken or performed all requisite acts or actions which may be Amended and Restated Nottingham Dam Easement and Assignment Agreement June 6, 2013 Page 5 of 5 required by their organizational or operational documents to confirm their respective authority to execute, deliver and perform each of their obligations under this Agreement. 11. Title. Developer represents and warrants that it owns the property upon which the Nottingham Dam Easement is granted and the adjacent property in fee simple and has full power and lawful authority to grant, sell, and convey the same in manner and form as aforesaid. Developer, for itself, its heirs, personal representatives, successors and assigns, does covenant and agree that it shall warrant and forever defend Town in its quiet and peaceful possession of the Nottingham Dam Easement and the Nottingham Dam Access Easement against all and every person or persons lawfully claiming title to the property, whether in whole or in part, by, through or under Developer. 12. Default. A party shall be deemed in default of this Agreement only upon the expiration of thirty (30) days from receipt of written notice from the non-defaulting party specifying the particulars on which such party has failed to perform its obligations under this Agreement. However, such party shall not be deemed to be in default if such failure (except the failure to pay money) cannot be rectified within said 30-day period and such party is using good faith and all reasonable efforts to rectify the particulars specified in the notice of default and in fact completes the cure of such default within a reasonable period of time not to exceed ninety (90) days, which ninety (90) day period may be extended, in the event the party in default is exercising good faith and reasonable efforts, to a maximum of two hundred seventy (270) days. Notwithstanding the foregoing, in the event an emergency occurs necessitating immediate repair or maintenance of the Nottingham Dam, any party may undertake such repairs or maintenance without such thirty (30) day written notice and shall be entitled to reimbursement for all reasonable costs and expenses incurred from the party otherwise responsible for repair or maintenance of the Nottingham Dam Easement hereunder. 13. Remedies. Upon breach of any provision of this Agreement, delivery of written notice and the expiration of thirty (30) days as set forth in Paragraph 12 above, the non-breaching party shall be entitled to enforce the provisions of this Agreement, in law or in equity, and relief in the nature of specific performance or damages or both may be awarded, subject to the provisions of the laws of the State of Colorado. The prevailing party in any legal or administrative action shall be awarded its reasonable costs and expenses of such action, through all appeals, including without limitation, reasonable attorneys’ fees. 14. Waiver. The failure of a party to insist upon strict performance of any of the provisions contained in this Agreement shall not be deemed a waiver of any rights or remedies that such party may have, and shall not be deemed a waiver of any subsequent breach or default of the performance of any of the obligations contained herein for the same or any other party. 15. Estoppel Certificate. Each party, so long as it has an interest in the property encumbered by this Agreement, agrees upon receipt of written request from the other party to certify in writing for a prospective purchaser or lienholder that this Agreement is in full force and effect, that it has not been amended, except as set forth in such certificate, and that the other party is not in default of any of the terms, covenants, conditions, or agreements contained in this Agreement (or, if a default does exist, specifying the nature of such default). Amended and Restated Nottingham Dam Easement and Assignment Agreement June 6, 2013 Page 6 of 6 16. Indemnity. With regards to this Agreement, Town agrees to indemnify, defend and hold harmless Developer, its subsidiaries and its directs and indirect affiliates, and their respective agents, officers, directors, servants, consultants, advisors and employees of and from any and all reasonable costs, expenses (including, without limitation, reasonable attorney’s fees), liability, claims, liens, demands, actions and causes of action whatsoever arising out of or related to any loss, cost, damage or injury, including death of any person or damage to property of any kind, which damage, loss or injury is caused by the acts or negligent acts, errors or omissions of Town, its subcontractors or any person directly or indirectly employed by Town. With regards to this Agreement, Developer agrees to indemnify, defend and hold harmless Town and its officers, agents and employees of and from any and all reasonable costs, expenses (including, without limitation, reasonable attorney’s fees), liability, claims, liens, demands, actions and causes of action whatsoever arising out of or related to any loss, cost, damage or injury, including death of any person or damage to property of any kind, which damage, loss or injury is caused by the acts or negligent acts, errors or omissions of Developer, its respective subsidiaries and affiliates, and their respective agents, officers, directors, servants, consultants, advisors and employees. 17. Notices. All notices to be given hereunder shall be in writing, and may be given either in person to the authorized representative of the noticed party or by registered or certified United States mail, return receipt requested, with such notice being addressed as specified in the introductory paragraph of this Agreement. Unless otherwise stated in this Agreement, notice deposited in the mail, in accordance with the provisions hereof, shall be effective from and after the fourth (4th) day following the date postmarked on the envelope containing such notice, or when actually received, whichever is earlier. Notice given in any other manner shall be effective only if and when received by the party to be notified. By giving the other party at least seven (7) days written notice thereof, the Parties shall have the right to change their respective addresses and specify as their respective addresses for the purposes hereof any other address in the United States of America. 18. Headings. The headings of the various paragraphs of this Agreement have been inserted for convenience of reference only and shall not have the effect of modifying, amending or changing the express terms and provisions of this Agreement. 19. Severability. If any of the provisions of this Agreement or any paragraph, sentence, clause, phrase, word or section, or the application thereof, is in any circumstances invalidated, such invalidity shall not affect the validity of the remainder of this Agreement, and the application of such provision in any other circumstances shall not be affected thereby. 20. No Representations or Warranties. Other than as set forth in Paragraphs 10 and 11 of this Agreement, no representations or warranties of any nature have been made by the Parties, and none of the Parties hereto have entered into this Agreement in reliance upon any such representations or warranties, except as expressly set forth herein. 21. Entire Agreement. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter described herein, and further replaces and supersedes all prior agreements, rights and obligations between the Parties with respect to the subject matter hereof. Amended and Restated Nottingham Dam Easement and Assignment Agreement June 6, 2013 Page 7 of 7 22. Amendment. No variations or modifications of, or amendments to, the terms of this Agreement shall be binding upon the parties unless reduced to writing and signed by the Parties. 23. Assignment. This Agreement shall not be assigned by Town without the prior written consent of Developer, which consent shall not be unreasonably withheld. The express assumption, in writing, of this Agreement shall thereby relieve the applicable assignor to the matters so assumed by the assignee. 24. Legal Fees and Costs. Except for arbitration as set forth in paragraph 25 below, in the event that a party institutes an action or proceeding for a declaration of rights of Town and Developer under this Agreement, for injunctive relief, for an alleged breach or default of this Agreement, or any other action arising out of this Agreement, or the transactions contemplated hereby, the prevailing party shall be entitled to its actual reasonable costs and attorney’s fees. Pursuant to Section 1, TCMD shall not be a party to any legal or arbitration proceeding that doesn’t regard anything before the Effective Date. Town and Developer agree to waive their respective rights to a jury trial in any civil legal proceeding. 25. Governing Law and Venue. This Agreement shall be governed and construed under the laws of the State of Colorado. Venue for any legal action relating to this Agreement shall be the State District Court in and for the County of Eagle, Colorado. Each party shall also have the right to obtain a declaratory judgment, whether the issue is ripe or not. If a court will not issue a declaratory judgment, because the issue is not ripe, the Town and Developer agree to submit any disputes under this Agreement to the Judicial Arbiter’s Group (“JAG”) for binding resolution in accordance with the Colorado Uniform Arbitration Act. Pursuant to Section 1, TCMD shall not be a party to any legal or arbitration proceeding that doesn’t regard anything before the Effective Date. 26. Execution. This Assignment may be executed in counterparts as originals or by facsimile copies of executed originals; provided however, if executed and evidence of execution is made by facsimile copy, then an original shall be provided to the other Parties within seven (7) days of receipt of said facsimile copy. [SIGNATURE PAGE FOLLOWS] Amended and Restated Nottingham Dam Easement and Assignment Agreement June 6, 2013 Page 8 of 8 DEVELOPER: TRAER CREEK-RP LLC, a Colorado limited liability company By: Traer Creek LLC, a Colorado limited liability company, its Manager By:_______________________________ Name: Marcus Lindholm Title: Manager STATE OF COLORADO ) )ss. COUNTY OF ______________________ ) The foregoing instrument was acknowledged before me this _____ day of __________, 2013, by Marcus Lindholm, as Manager of Traer Creek LLC, a Colorado limited liability company and Manager of Traer Creek-RP LLC, a Colorado limited liability company. Witness my hand and official seal. My commission expires: Notary Public Amended and Restated Nottingham Dam Easement and Assignment Agreement June 6, 2013 Page 9 of 9 TRAER CREEK METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado By:______________________________________ Name: Daniel J. Leary Title: President STATE OF COLORADO ) )ss. COUNTY OF ______________________ ) The foregoing instrument was acknowledged before me this _____ day of __________, 2013, by Daniel J. Leary, as President of Traer Creek Metropolitan District. Witness my hand and official seal. My commission expires: Notary Public Amended and Restated Nottingham Dam Easement and Assignment Agreement June 6, 2013 Page 10 of 10 TOWN OF AVON, a home rule municipal corporation of the State of Colorado By:______________________________________ Name:____________________________________ Title:_____________________________________ STATE OF COLORADO ) )ss. COUNTY OF ______________________ ) The foregoing instrument was acknowledged before me this _____ day of __________, 20_____, by ____________________, as ____________________ of ____________________ [and by ____________________ as ____________________ of ____________________]. Witness my hand and official seal. My commission expires: Notary Public EX-D-10 Conveyance of Tract G by Special Warranty Deed, Oct 22, 2012 RECORDING REQUESTED BY AND WHEN RECORDED PLEASE RETURN TO: Town of Avon P.O. Box 975 Avon, CO 81620 attn: Patty McKenny, Town Clerk SPECIAL WARRANTY DEED [Tract G – Filing 3] [STATUTORY FORM – C.R.S. § 38-30-115] TRAER CREEK-RP, LLC, a Colorado limited liability company (“Grantor”), whose street address is, P.O. Box 9429, 0101 Fawcett Road, Suite 210, Avon, CO 81620, [Address as listed on Secretary of State website] for the consideration of Ten and 00/100 Dollars ($10.00) and other good and valuable consideration, in hand paid, hereby sells and conveys to the TOWN OF AVON, a home rule municipal corporation of the State of Colorado (“Grantee”), whose street address is One Lake Street, P.O. Box 975, Avon, Colorado 81620, County of Eagle, State of Colorado, the real property that is described on Exhibit A attached hereto and made a part hereof. TO HAVE AND TO HOLD the said premises above bargained and described with the appurtenances, unto Grantee, and Grantee's heirs, successors and assigns forever. Grantor, for itself and its heirs, successors and assigns, does covenant and agree that Grantor shall and will WARRANT AND FOREVER DEFEND the above bargained premises in the quiet and peaceable possession of Grantee, and Grantee’s heirs, successors and assigns, against all and every person or persons claiming the whole or any part thereof, by, through or under Grantor, subject to the matters set forth on Exhibit B attached hereto and made a part hereof. TRAER CREEK-RP, LLC, a Colorado limited liability corporation By: Traer Creek LLC, a Colorado limited liability company, its Manager By: Marcus Lindholm, Manager STATE OF ___________ ) ) ss: COUNTY OF _________ ) The foregoing instrument was acknowledged before me this ____ day of ____________________, 200__, by _________________________ as ________________ of Traer Creek LLC, a Colorado limited liability company. Witness my hand and official seal. My commission expires: Notary Public {00234769.DOCX v:1 } A-1 EXHIBIT A TO SPECIAL WARRANTY DEED Description of the Property Tract G, Village (at Avon) Filing No. 3, according to the plat thereof recorded on June 29, 2004 at Reception No. 882176 in the office of the Clerk and Recorder of Eagle County, Colorado. {00234769.DOCX v:1 } B-1 EXHIBIT B TO SPECIAL WARRANTY DEED Exceptions and /or Reservations Exceptions: Conveyance of the property pursuant to the foregoing Special Warranty Deed is subject to the following exceptions, which exceptions shall be binding on Grantee and all successors and assigns of Grantee, and which Grantor and its successors and assigns shall have the right to enforce by an action for specific performance, mandamus, mandatory or preliminary injunction or other equitable or legal remedy: 1. All exceptions of record. Reservations: Conveyance of the property pursuant to the foregoing Special Warranty Deed is subject to Grantor’s reservation of the following rights with respect to the Property: 1. Not applicable. EX-D-2 Roadway Easement Agreement for Planning Area B, Oct 22, 2012 Page 1 of 9 1014138.9 RECORDING REQUESTED BY AND WHEN RECORDED PLEASE RETURN TO: Town of Avon P.O. Box 975 Avon, CO 81620 attn: Patty McKenny, Town Clerk ROADWAYACCESS EASEMENT AGREEMENT THIS ROADWAYACCESS EASEMENT AGREEMENT (this “Easement Agreement”) is made and entered into as of this _____ day of _________________, 20122013 (“Effective Date”), by and between the TRAER CREEK-RP LLC, a Colorado limited liability company (together with its successors and assigns, “Grantor”); and TOWN OF AVON, a home rule municipal corporation of the State of Colorado (together with its successors and assigns, “Grantee”).”); and TRAER CREEK-RP LLC, a Colorado limited liability company (together with its successors and assigns, “Grantor”). Recitals A. Grantor is the owner of certain real property located in Eagle County, Colorado, legally described on Exhibit A attached hereto and incorporated herein by this reference (“Lot 1”). B. Grantor and Grantee are parties to that certain Consolidated, Amended and Restated Annexation and Development Agreement for The Village (at Avon) datedmade and entered into as of _____________, 20122013 and recorded in the real property records of Eagle County, Colorado (the “Records”) on ______________, 2012 at Reception No. ______________or about even date herewith (“Development Agreement”). C. Pursuant to Section 3.87(b) of the Development Agreement, concurrently with the “Effective Date” (as defined in the Development Agreement) of the Development Agreement, Grantor shall dedicate and convey, or has dedicated and conveyed, to Grantee certain real property located in Eagle County, Colorado, legally described on Exhibit B attached hereto and incorporated herein by this reference (“Planning Area B”), which property is designated as Planning Area B pursuant to The Village (at Avon) PUD Master Plan, Formal Amendment Two (the “PUD Master Plan”), being Exhibit B to that certain The Village (at Avon) Amended and Restated PUD Guide recorded in the real property records of Eagle County, Colorado on ______________, 2012 at Reception No. ______________Records on or about even date herewith (the “PUD Guide”). D. As of the Effective date, there is no legal access to Planning Area B from a public right-of-way. E. On or about the Effective Date, Grantor has or shall convey and dedicate Planning Area B to Grantee. F.E. In connection with the conveyance and dedication of Planning Area B to Grantee, Grantor desires to Grant, and Grantee desires to accept, a roadwayan access easement from that certain 80-foot wide right-of-way known as East Beaver Creek Boulevard (as recorded in the EX-D-2 Roadway Easement Agreement for Planning Area B, Oct 22, 2012 Page 2 of 9 1014138.9 Records at Reception No. 795007) to Planning Area B for the purpose of Grantee’s enjoyment of the Permitted Uses (as defined in Paragraph 1), including but not limited to the future construction, operation and maintenance of the Facilities (as defined in Paragraph 1) in accordance with the terms and conditions of the PUD Guide and the Development Agreement, and as set forth below. Agreement NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, Grantor and Grantee agree as follows: 1. Grant of Easement. Grantor hereby grants, bargains, sells and conveys to Grantee, together with its engineers, contractors, employees and similar consultants to Grantee and/or its assigns as may be necessary or desirable (collectively, “Permittees”), a perpetual, non- exclusive, fifty forty (40)-foot (50’) wide easement appurtenant to Planning Area B (the “Easement”) over, under, through and across that portion of Lot 1 which is legally described and depicted in Exhibit C (the “Easement Area”) for the purposes ofattached hereto and incorporated herein by this reference (the “Easement Area”) for the purpose of Grantee’s, together with its engineers, contractors, employees and similar consultants to Grantee and/or its assigns (collectively, “Permittees”), conducting of the following activities (collectively, the “Permitted Uses”): (i) vehicular and pedestrian ingress to and egress from Planning Area B; (ii) constructing, installing, using, operating, maintaining, repairing and replacing drive lanes, roadways, landscaping, sidewalks, bike paths, retaining walls and other access facilities necessary or desirable for such ingress and egress, and all fixtures and devices reasonably used or useful in the operation of such facilities (collectively, the “Roadway Facilities”); (iii) constructing, installing, using, operating, maintaining, repairing and replacing water lines, sanitary sewer lines, storm drainage facilities, electrical lines, gas lines and similar utilities and utility facilities, excluding the Communications Utilities (defined below), together with all sleeves, conduit, junction boxes, vaults, fixtures and devices reasonably used or useful in the operation of such facilities, whether publicly or privately owned (collectively, the “Utility Facilities,” and together with the Roadway Facilities, the “Facilities”); and (iv) the right to enter upon the Easement Area and such immediately abutting areas of Lot 1 thereto as may reasonably be necessary to survey and conduct geotechnical and similar physical investigations. As set forth in the PUD Guide and Section 3.87(b) of the Development Agreement and in the PUD Guide, any construction of the Facilities shall be subject to the prior written approval of the “Design Review Board” (as defined in the PUD Guide). Nothing contained herein shall obligate Grantee to install, or cause to be installed, any or all of the Facilities or to otherwise provide for any such use. For purposes of this Easement Agreement, “Communications Utilities” shall mean, collectively, (a) cable television cables, wires, lines, plugs, connections, junction boxes, access boxes, vaults, switches, terminals and similar improvements; (b) telephone and communication cables, fiber-optic cables, wires, lines, plugs, connections, junction boxes, access boxes, vaults, switches, terminals, jacks and similar improvements; (c) data cables, fiber-optic cables, wires, lines, plugs, connections, junction boxes, access boxes, vaults, switches, terminals, jacks and EX-D-2 Roadway Easement Agreement for Planning Area B, Oct 22, 2012 Page 3 of 9 1014138.9 similar improvements; and (d) utility conduit, pipe, sleeve, trough or similar enclosures for the purpose of holding, running or containing the facilities described in clauses (a) through (c). 2. Termination or Relocation of Easement Area. In connection with future development of Lot 1, including without limitation, the construction of permanent Main Street in the configuration as generally contemplated by the PUD Master Plan or such other final alignment as shall be set forth in the applicable public improvements agreement(sPublic Improvements Agreement(s) (as defined in the PUD Guide) between the Town and applicable constructing party(ies) (“Future Main Street”), Grantor and Grantee acknowledge that future design, engineering, construction and/or general development of Lot 1 and/or Future Main Street may be inconsistent with the rights granted hereunder in the Easement Area, and that it may be necessary or desirable that the Easement Area be adjusted, repositioned or otherwise relocated to accommodate such future development of Lot 1 and/or Future Main Street. Accordingly, in whole or in part, adjusted, repositioned, relocated or terminated to accommodate such future development of Lot 1 and/or Future Main Street, provided that at no time shall Planning Area B be without legal access to Future Main Street or another public right-of-way. Grantor and Grantee further acknowledge and agree that, as generally contemplated by the PUD Master Plan, the configuration of Future Main Street abuts Planning Area B and could provide direct legal access from Future Main Street to Planning Area B without the necessity of any easement or grant of other right to provide for such access. Accordingly, if Future Main Street or other public right-of-way is designed and constructed in a manner that provides direct legal access from Future Main Street or other public right-of-way to Planning Area B, upon the Town’s preliminary acceptance pursuant to the applicable Public Improvements Agreement of the street improvements for the portion of Future Main Street or other public right-of-way that provides such legal access to Planning Area B, this Agreement and the Easement granted hereunder shall automatically terminate and be extinguished and of no further force or effect without any further act of either Grantor or Grantee. Notwithstanding the foregoing, upon and after such termination at the written request of Grantor, Grantee shall deliver to Grantor an executed termination of this Agreement in recordable form, which Grantor may record against the Easement Area to provide record notice of such termination. Further, if Grantor determines, in its sole discretion, that it is necessary or desirable that the Easement Area be relocated for purposes of accommodating future development of Lot 1 and/or Future Main Street, Grantor and Grantee agree (a) Grantor shall have the right to provide for an alternative alignment and configuration or relocation of the Easement Area (the “Relocated Easement Area”) and Grantee shall not unreasonably deny, condition or delay approval with respect to the Relocated Easement Area; (b) Grantor and Grantee shall each execute an amendment to this Easement Agreement substituting the surveyed legal description for the alignment and configuration of the Relocated Easement Area as Exhibit C to this Easement Agreement; and (c) Grantor shall cause the recordation of such amendment in the Records. Recordation of such amendment in the Records shall have the legal effect of terminating the prior boundaries of the Easement Area and establishing the boundaries of the Relocated Easement Area as the new boundaries of the Easement Area for all purposes under this Easement Agreement. If, prior to the recordation of such amendment, the Design Review Board previously has approved, and Grantee previously has installed and/or constructed, Facilities within the Easement Area, Grantor shall have the obligation, at Grantor’s sole cost and expense, to relocate such Facilities to, or install and/or construct such Facilities within, the EX-D-2 Roadway Easement Agreement for Planning Area B, Oct 22, 2012 Page 4 of 9 1014138.9 Relocated Easement Area. [NOTE: STS states that “TOA shall not unreasonably refuse reasonable requests by Developer to adjust or replat Planning Areas B or C”. Town has proposed that this right should sunset when Planning Area B and the surrounding area has been developed. Developer objects to any sunset of the Developer’s right relocate this easement and amend the plat for Planning Area B.] 3. Entry; Site Investigation; Restoration. In conducting the Permitted Uses related to design and construction of the Facilities, including but not limited to surveying, geotechnical testing, other physical inspection and similar matters, if it is necessary or desirable for Grantee and/or the Permittees to enter upon and/or cause disturbances to the surface of the abutting areas of Lot 1, Grantee shall provide not less than five (5) business days’ written notice to Grantor of any planned entrance upon and/or conduct of physical testing or inspection of the Easement Area and/or abutting areas of Lot 1. Grantor shall coordinate with Grantee regarding the scope, nature and duration of such activities, but shall not unreasonably object to or interfere with Grantee’s and/or Permittees’ conduct of such activities. To the extent such activities disturb vegetation on the surface or otherwise disturb any improvements upon or within the Easement Area or abutting areas of Lot 1, Grantee shall promptly cause revegetation and/or otherwise cause restoration of the affected area and improvements to a condition materially consistent with their condition prior to Grantee’s and/or Permittees’ conduct of such activities. Upon completion of any construction activities within the Easement Area, Grantee shall promptly cause revegetation and/or restoration of any areas of Lot 1 located outside of the Easement Area that have been disturbed by the construction activities, including without limitation, restoration or repair to damaged improvements. 4. Grantor’s Reserved Rights. Grantor reserves the right to grant additional non-exclusive easements and/or other interests within the Easement Area and Lot 1 so long as such interests do not adversely affect, increase the cost of, or otherwise interfere with Grantee’s or Permittees’ full exercise of the Permitted Uses. Grantor reserves the right to use and occupy Lot 1 and the Easement Area for any and all purposes not inconsistent with the rights and privileges granted herein. [NOTE: The reservation of Grantor to occupy the Roadway Easement Access creates potential for conflict between future surface uses of this access easement by the Town and by Grantor.], including without limitation, snow dumping and storage. 5. Title Matters; No Warranties. This Easement Agreement is subject to all prior easements, restrictions, reservations, rights-of-way, encumbrances and similar matters of record as of the Effective Date. Grantor makes no representations or warranties regarding the status of title to Lot 1 or the Easement Area as of the Effective Date, and the grant of easements and other rights pursuant to this Easement Agreement is in the nature of a bargain and sale conveyance. 6. Indemnity. Grantee shall indemnify, protect, defend and hold Grantor (and its officers, directors, employees, consultants and representatives) harmless from and against any and all claims (including, without limitation, claims for mechanic’s liens or materialmen’s liens), causes of action, demands, obligations, losses, damages, liabilities, judgments, costs and expenses (including, without limitation, reasonable attorneys’ fees) (collectively, “Claims”) in EX-D-2 Roadway Easement Agreement for Planning Area B, Oct 22, 2012 Page 5 of 9 1014138.9 connection with or arising out of Grantee’s exercise of its rights hereunder and use and enjoyment of the Easement Area; provided, however, such indemnity shall exclude any Claims caused by negligence or willful misconduct of Grantor or its officers, directors, employees and representatives. 7. Insurance. At all times while this Easement Agreement is in effect, Grantee shall obtain, keep in force and maintain liability insurance protecting against bodily injury and property damage claims relating to Grantee’s exercise of its rights hereunder and use and enjoyment of the Easement Area, which coverage shall have a minimum limit of $1,000,000 each occurrence; provided, however, that Grantor shall have full benefit of any greater limits maintained by Grantee. Such insurance policy shall name Grantor as an additional insured, shall apply on a primary and non-contributory basis and shall be endorsed with a clause providing that the insurer waives all rights of subrogation which such insurer might have against Grantor. 6.8. Covenants. Each and every benefit and burden of this Easement Agreement shall inure to and be binding upon Grantor, Grantee and their respective successors and assigns. The burdens and benefits hereof shall run with title to the Easement Area and Planning Area B. Any person or entity that acquires any interest in the Easement Area, and any person or entity that acquires any interest in Planning Area B, shall be bound by the burdens and entitled to the benefits of this Easement Agreement. The burdens and benefits of this Easement Agreement constitute covenants that run with and encumber title to the Easement Area and Planning Area B. 7.9. Severability. Any provision of this Easement Agreement which is declared by a court of competent jurisdiction to be illegal, invalid, prohibited or unenforceable shall be ineffective only to the extent of such illegality, invalidity, prohibition or unenforceability, without invalidating or otherwise affecting the remaining provisions of this Easement Agreement, each of which shall continue in full force and effect, unless modified by mutual consent of the parties, for so long as their enforcement would not be inequitable to the party against whom they are being enforced under the facts and circumstance then pertaining. 8.10. Captions. The titles, headings and captions used in this Easement Agreement are intended solely for convenience of reference and shall not be considered in construing any of the provisions of this Easement Agreement. 9.11. Modification. This Easement Agreement may not be modified, amended or terminated, except by an agreement in writing executed by Grantor and Grantee. 10.12. Governing Law. The terms and provisions of this Easement Agreement shall be construed and enforced in accordance with the laws of the State of Colorado. 11.13. Counterparts. This Easement Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. [Signature pages follow this page.] EX-D-2 Roadway Easement Agreement for Planning Area B, Oct 22, 2012 Page 6 of 9 1014138.9 IN WITNESS WHEREOF, Grantor and Grantee have executed this Easement Agreement as of the Effective Date. GRANTEE: THE TOWN OF AVON, a home rule municipal corporation of the State of Colorado By: Name: Rich Carroll Title: Mayor Approved as to legal form by: Eric J. Heil, Esq., Town Attorney GRANTOR: TRAER CREEK-RP LLC, a Colorado limited liability company By: Traer Creek LLC, a Colorado limited liability company, its Manager By: Name: Marcus Lindholm Title: Manager GRANTEE: TOWN OF AVON, a home rule municipal corporation of the State of Colorado By: Name: Rich Carroll Title: Mayor EX-D-2 Roadway Easement Agreement for Planning Area B, Oct 22, 2012 Page 7 of 9 1014138.9 STATE OF COLORADO ) ) ss. COUNTY OF _______________ ) The foregoing instrument was acknowledged before me this _____ day of _______________, 20122013, by Rich Carroll,________________, as Mayor_________ of the TOWN OF AVON, a home rule municipal corporation of the State of Colorado. Witness my hand and official seal. Notary Public My commission expires: ______________________________. STATE OF COLORADO ) ) ss. COUNTY OF _______________ ) The foregoing instrument was acknowledged before me this _________ day of ______________________, 20122013, by Marcus Lindholm, as Manager of Traer Creek LLC, a Colorado limited liability company, as Manager of TRAER CREEK-RP LLC, a Colorado limited liability company. Witness my hand and official seal. Notary Public My commission expires: ______________________________. A-1 1014138.9 EXHIBIT A LEGAL DESCRIPTION OF LOT 1 Lot 1, Second Amended Final Plat, Amended Final Plat, The Village (at Avon) Filing 1, A Resubdivision of Lot 1, according to the plat thereof recorded at Reception No. ________________, County of Eagle, State of Colorado. EX-D-2 Roadway Easement Agreement for Planning Area B, Oct 22, 2012 Page B-1 of 9 1014138.9 EXHIBIT B LEGAL DESCRIPTION OF PLANNING AREA B Lot 2, Second Amended Final Plat, Amended Final Plat, The Village (at Avon) Filing 1, A Resubdivision of Lot 1, according to the plat thereof recorded at Reception No. ________________, County of Eagle, State of Colorado. EX-D-2 Roadway Easement Agreement for Planning Area B, Oct 22, 2012 Page C-1 of 9 1014138.9 EXHIBIT C LEGAL DESCRIPTION AND DEPICTION OF EASEMENT AREA EXHIBIT E – FORM OF ACCESS EASEMENT TO PLANNING AREA I 1009777.3 1009777.5 1014138.9 [to be inserted] EX-D-8 Wet Well Easement Agreement – Oct. 22, 2012 Page 1 of 15 Version 9 RECORDING REQUESTED BY AND WHEN RECORDED PLEASE RETURN TO: Town of Avon P.O. Box 975 Avon, CO 81620 attn: Patty McKenny, Town Clerk WET WELL EASEMENT AGREEMENT THIS WET WELL EASEMENT AGREEMENT (“Agreement”) is entered into as of this __________________ day of_________, 2012, ________________, 2013 (“Effective Date”), by and between TRAER CREEK-RP LLC, a Colorado limited liability company, whose address is P.O. Box 640, Vail, CO 81658 (“ (together with its successors and assigns, “Grantor”)”), and the TOWN OF AVON, a home rule municipal corporation of the State of Colorado, whose address is (together with its successors and permitted assigns, “One Lake Street, P.O. Box 975, Avon, Colorado 81620 (“Grantee”). 1. Grant. FOR AND IN CONSIDERATIONIn consideration of the sum of Ten Dollars ($10.00)covenants and agreements hereinafter set forth and other good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged by the Grantor, the Grantor hereby grants, bargains, sells, and conveys to Grantee and its successors and assigns athe following perpetual non-exclusive easements: 1.(a) A perpetual non-exclusive easement (“Easement”), in, toin, through, over, under and across that certain parcel of real property located in the Town of Avon, Eagle County, Colorado, as more particularly described inon Exhibit A attached hereto and incorporated herein by this reference (“PremisesEasement Area”) for (i) vehicular and pedestrian ingress and egress to the Improvements (as defined below); and (ii) to construct, reconstruct, operateconstruction, reconstruction, operation, use, maintainmaintenance, repair, replacereplacement and/or removeremoval of certain water lines and mains, manholes, conduits, ventilators, access doors, cables, landscaping improvements, wells, well casings, tanks, motors, pumps, electrical facilities and apparatus, meters, and related improvements and appurtenances thereto (collectively, the “Improvements”) in, to, through, over, under”), provided that all such improvements shall be located underground or on the surface of the Easement Area and across the Premisesshall not be located above the surface of the Easement Area, subject and pursuant to the terms and conditions set forth herein. (“Easement”); and 2. Limitations on Use. The Grantor shall not construct or place any structure or building, fencing, streetlight, power pole, yard light, mailbox or sign, whether temporary or permanent, or plant or locate any landscaping features, trees or shrubs, on any part of the Premises without having first obtained the prior written consent of the Grantee, which consent shall not be unreasonably withheld if Grantor’s proposed improvements will not interfere with the Improvements or the Grantee’s use of the Easement granted hereby. Any structure or building, fencing, streetlight, power pole, yard light, mailbox or sign, whether temporary or permanent, or any landscaping features, trees or shrubs situated on the Premises as of the date of this Agreement or subsequently placed thereon without such prior written consent may be removed by the Grantee without liability for damages arising therefrom. Additionally, if the Grantor EX-D-8 Wet Well Easement Agreement – Oct. 22, 2012 Page 2 of 15 Version 9 violates these restrictions or if Grantor's actions cause damage to Grantee's Improvements, the Grantor will be liable for the cost to correct such violation or damage. 3. Access. The Grantee, its agents, contractors, successors and assigns, shall have the right of perpetual ingress and egress in, to, through, over, under, and across the Premises for any purpose necessary and at any and all times necessary or convenient for the full enjoyment of the rights granted to it in this Agreement. 2. Grantor’s Reserved Rights. Grantor reserves the right to grant additional non-exclusive easements and/or other interests within the Easement Area so long as such grants do not unreasonably interfere with Grantee’s full exercise of the Easement. Grantor reserves the right to use and occupy the Easement Area for any and all purposes not inconsistent with the rights and privileges granted herein. 4.3. Restoration; Surface Impact.Repair. Upon completion of any of its activities which disturb or damage the surface of the Premises, theEasement Area or any of Grantor’s improvements, including without limitation, landscaping improvements, Grantee shall restore the Premisesaffected Easement Area and/or improvements to the condition it wasthey were in immediately prior to such disturbance, except as otherwise provided herein or as necessarily modified to accommodate the Improvements. Grantor expressly acknowledges that certain of the Improvements, including but not limited to vent pipe(s) and access door(s) may, from time to time, be on or above the surface of the Premises. 5.4. Maintenance. Grantee shall maintain the Improvements at its sole cost and expense. Grantor shall have no obligation to maintain the Improvements. 6.5. Insurance; Indemnity. (a) Insurance. The Grantee shall require that all of its contractors and permittees entering upon the PremisesEasement Area obtain and maintain in effect for the duration of their respective periods of work (i) workers’ compensation insurance with statutory limits, and (ii) public liability insurance with commercially reasonable limits as may be required by Grantee from time to time as part of its capital construction and maintenance program. (b) Indemnity. To the extent permitted by law, the Grantee agrees to indemnify, defend and hold the Grantor harmless from and against all losses, claims, damages, liabilities or expenses, including without limitation reasonable attorneys’ fees arising from Grantee’s negligent construction, operation or maintenance, its contractors’ and permittees’ exercise of the ImprovementsEasement or the negligent use of the Premises by Grantee, its successors and assignsEasement Area; provided, however, such indemnity shall not extend to any claims to the extent arising from Grantor’s negligence or willful misconduct. 7. Termination of Easement. The Easement shall not be terminated unless deemed abandoned. The Easement shall not be presumed abandoned unless and until the Grantee has failed to use the Easement for any purpose described in Section 1 of this Easement for a continuous period of two years and the Grantee intends to abandon the Easement. If Grantor EX-D-8 Wet Well Easement Agreement – Oct. 22, 2012 Page 3 of 15 Version 9 believes the Easement has been abandoned by Grantee or that the Easement is not being used as described in Section 1 above, Grantor shall give written notice to Grantee. If Grantee agrees with Grantor, Grantee shall promptly execute all documents necessary to reconvey the Easement to Grantor. However, if Grantee disagrees with Grantor's assertion that the Easement is no longer being used for its intended purpose and that Grantee intends to abandon the Easement, Grantee shall give Grantor written notice within forty-five (45) days of the Grantee's receipt of Grantor's notice. If Grantor and Grantee are not able agree as to whether the Easement has been abandoned as abandonment is defined in this paragraph, Grantor may elect to arbitrate the dispute and shall provide written notice to Grantee that Grantor elects to arbitrate the dispute. The dispute shall be settled by binding arbitration before any retired Colorado Supreme Court Justice or Colorado Court of Appeals Judge employed by JAG. The arbitration proceeding shall be conducted in accordance with the Colorado Rules of Civil Procedure then in effect. Each party to the dispute shall deliver to the other party, within ten (10) days of the Grantee's demand for arbitration, a complete, concise statement of issues to be arbitrated. Grantor and Grantee shall select a single JAG arbitrator in accordance with the applicable rules of JAG. The arbitration proceedings shall be conducted at JAG in Denver, Colorado, and shall continue in the absence of any party who, after notice given pursuant to this Section, fails to participate in the proceedings. The decision of the arbitrator shall be final and binding upon the parties to this Agreement whether such party(ies) participate in the proceedings or not, and a judgment thereon may be entered in any court having jurisdiction. 6. Relocation of Easement Area. In connection with Grantor’s future development of the Easement Area and Grantor’s real property adjacent to the Easement Area known as The Village (at Avon) (the “Project”), Grantor and Grantee acknowledge that future design, engineering, construction and/or general development of the Project may be inconsistent with the rights granted hereunder in the Easement Area, and that it may be necessary or desirable that the Easement Area be, in whole or in part, adjusted, repositioned or relocated to accommodate such future development of the Project. If Grantor determines, in its sole discretion, that it is necessary or desirable that the Easement Area, or any portion thereof, be relocated for purposes of accommodating future development of the Project, Grantor and Grantee agree (a) Grantor shall have the right to provide for an alternative alignment and configuration or relocation of the Easement Area (the “Relocated Easement Area”) and Grantee shall not unreasonably deny, condition or delay approval with respect to the Relocated Easement Area; (b) Grantor and Grantee shall each execute an amendment to this Agreement substituting the surveyed legal description for the alignment and configuration of the Relocated Easement Area as Exhibit A to this Agreement; and (c) Grantor shall cause the recordation of such amendment in the real property records of the clerk and recorder for Eagle County, Colorado. Recordation of such amendment shall have the legal effect of terminating the prior boundaries of the Easement Area and establishing the boundaries of the Relocated Easement Area as the new boundaries of the Easement Area for all purposes under this Agreement. In connection with any such relocation, Grantor shall have the obligation, at Grantor’s sole cost and expense, to relocate the Improvements to, or install and/or construct such Improvement within, the Relocated Easement Area. 8.7. No Dedication.; No Third-Party Beneficiaries. Nothing contained in this Agreement shall be deemed to be, and shall not be, a dedication of the Easement or Easement Area to the EX-D-8 Wet Well Easement Agreement – Oct. 22, 2012 Page 4 of 15 Version 9 general public, or to any other person or entity of the fee interest of the property underlying any easement interest hereby granted and conveyed, it being the intent of the parties that Grantor's fee interest in the Premises shall continue to be private unless and until Grantor, at its sole option and election, completes the dedication of such interest to an eligible governmental or quasi- governmental entity or other third party, in accordance with all applicable laws, rules, regulations and ordinances., and no third-party shall have the right to exercise the Easement or enforce the terms of this Agreement. 9.8. Notices. All notices, demands, requests or other communications to be sent by one party to the other hereunder or required by law shall be in writing and shall be deemed to have been validly given or served by delivery of same in person to the addressee or by courier delivery via Federal Express or other nationally recognized overnight air courier service or by depositing same in the United States certified mail, postage prepaid, addressed as follows: To Grantee: Town of Avon One Lake Street P.O. Box 975 Avon, Colorado 81620 Attention: Town Manager With a copy to: Heil Law & Planning LLCTown of Avon One Lake Street2696 S. Colorado Blvd., Ste 550 P.O. Box 975 DenverAvon, CO 8020281620 Attn: Eric J. HeilTown Attorney To Grantor: Traer Creek-RP LLC Attn: Magnus Lindholm Physical Address: 322 E. Beaver Creek Blvd. Avon, CO 81620 Mailing Address: P.O. Box 640 Vail, CO 81658 Attn: Marcus Lindholm With a copy to: Michael J. RepucciOtten, Johnson, Robinson, Neff & Ragonetti, P.C. Johnson & Repucci LLP950 17th Street, Ste. 1600 2521 Broadway, Suite A BoulderDenver, CO 8030480202 Attn: Munsey L. Ayers All notices, demands, requests or other communications shall be effective (a) upon such personal delivery or one (1) business day after being; (b) if deposited with Federal Express or other EX-D-8 Wet Well Easement Agreement – Oct. 22, 2012 Page 5 of 15 Version 9 nationally recognized overnight air courier service or three (3, one (1) business daysday after such deposit; or (c) if deposited in the United States certified mail., postage prepaid, three (3) business days after such deposit. By giving the other party hereto at least ten (10) days written notice thereof in accordance with the provisions hereof, each of the partiessuch party shall have the right from time to time to change its address. 10. Certain Reserved Rights. Except as otherwise provided in this Agreement, the Grantor reserves the rights to use the Premises and to grant further easement interests in the Premises to other grantees so long as such interests and uses do not materially or unreasonably interfere with the use of the Grantee, its successors and assigns as permitted herein. 11.9. Subjacent and Lateral Support; Earth Cover. The. Grantee shall have the right of subjacent and lateral support for the Improvements. The, and Grantor shall not take any action which would impair the lateral or subjacent support for the Improvements or the earth cover over any installed lines, mains or other underground Improvements. . Grantor shall have the right of subjacent and lateral support for its improvements located within and adjacent to the Easement Area, and Grantee shall not take any action which would impair the lateral or subjacent support for such Grantor may request Grantee's specific written permission to modify the earth cover over any installed underground lines, mains or other Improvements but recognizes that such written permission may be withheld by the Grantee in its sole and absolute discretion. If Grantee renders such specific written permission, it shall be conditioned upon, among other things, the reimbursement to the Grantee for the cost of any alterations to any of its Improvements made necessary by such earth cover modification.improvements. 12.10. Assignment. The Grantee shall have the right and authority to assign to any appropriate local governmental or quasi-governmental entity any and all rights to use, and all obligations associated with, the Easement as are granted to and accepted by the Grantee herein. 13. Title. The Grantor represents and warrants that it owns the Premises in fee simple and has full power and lawful authority to grant, bargain, sell, and convey the same in manner and form as aforesaid. The Grantor, for itself, its heirs, personal representatives, successors and assigns, does covenant and agree that it shall warrant and forever defend the Grantee in its quiet and peaceful possession of the Premises against all and every person or persons lawfully claiming or to claim the whole or any part thereof, by, through or under Grantor. 11. InurementTitle Matters; No Warranties. This Agreement is subject to all prior easements, restrictions, reservations, rights-of-way, encumbrances and similar matters of record as of the Effective Date. Grantor makes no representations or warranties regarding the status of title to the Easement Area as of the Effective Date, and the grant of the Easement and other rights pursuant to this Agreement is in the nature of a bargain and sale conveyance. 12. Binding Effect; Runs With Land. Each and every one of the benefitsbenefit and burdensburden of this Agreement shall inure to and be binding upon the partiesGrantor, Grantee and their respective legal representatives, heirs, administrators, successors and assigns. The rightsburdens and responsibilities set forth in this Agreement are intended to be covenants on the Premises and are tobenefits hereof shall run with title to the Easement Area. Any person or EX-D-8 Wet Well Easement Agreement – Oct. 22, 2012 Page 6 of 15 Version 9 entity that acquires any interest in the landEasement Area shall be bound by the burdens and entitled to the benefits of this Agreement. The burdens and benefits of this Agreement constitute covenants that run with and encumber title to the Easement Area. 14.13. Severability. Any provision of this Agreement which is declared by a court of competent jurisdiction to be illegal, invalid, prohibited or unenforceable shall be ineffective only to the extent of such illegality, invalidity, prohibition or unenforceability, without invalidating or otherwise affecting the remaining provisions of this Agreement, each of which shall continue in full force and effect, unless modified by mutual consent of the parties, for so long as their enforcement would not be inequitable to the party against whom they are being enforced under the facts and circumstance then pertaining. 15.14. Attorneys’ Fees. In the event either party seeks to enforce its rights hereunder through litigation, arbitration or another legal proceeding, the court or panel shall award to the prevailing party in such litigation, arbitration or other legal proceeding, as part of its judgment or award, its reasonable attorneys’ fees and costs. 16.15. Section Headings. The sectiontitles, headings contained hereinand captions used in this Agreement are includedintended solely for convenience of reference purposes onlyand shall not be considered in construing any of the provisions of this Agreement. 16. Modification. This Agreement may not be modified, amended or terminated, except by an agreement in writing executed by Grantor and Grantee. 17. Governing Law. The terms, covenants and provisions hereof shall be governed by and construed under the applicable laws of the State of Colorado. EX-D-8 Wet Well Easement Agreement – Oct. 22, 2012 Page 7 of 15 Version 9 18. Special Provisions Regarding Relocation. The parties agree that the special provisions contained in this Section 18 shall supersede and control over any conflicting provisions of this Agreement. Grantor has advised Grantee that future development of the real property within which the Premises is located may necessitate the relocation of the Improvements or portions thereof to other real property owned by Grantor. Grantee shall reasonably cooperate with respect to any necessary relocation, provided that (i) Grantor shall give Grantee written notice of such proposed relocation not less than ninety (90) days before any such relocation is to occur, (ii) the relocation site(s) must be reasonably acceptable to the Grantee and shall, at a minimum, reasonably accommodate the integration of the Improvements of and into the balance of the Grantee’s non-potable water system, and (iii) Grantor and Grantee shall execute and deliver an amended or replacement easement agreement wherein the easement premises is the relocation site, with such amended or replacement easement agreement and the title burdens to the relocation site being reasonably acceptable to the Grantee and its legal counsel. The parties agree that the costs for such relocation shall be borne exclusively and entirely by the Grantor. In the event of any such relocation, the Grantee agrees to execute and deliver to the Grantor an instrument in recordable form evidencing the termination of the Easement as to the portion of the Premises no longer necessary to accommodate the Improvements. 18. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 19. Access to Raw Water. Grantor shall have the right during this Agreement to access raw water from the raw water irrigation system dedicated by Traer Creek Metropolitan District to the Town pursuant to the following terms: a. The connection shall be limited to four (4) connections to the Town’s raw water irrigation system described as (i) the Connection for Lot 2, (ii) the Tap for Trees on Post Blvd., (iii) the Connection West side of Property and (iv) For Trees along Post Blvd (“Raw Water System Connections”) as depicted in Exhibit B; b. The Raw Water System Connections may be relocated at the expense of the property owner served by such Raw Water System Connections provided that the areas to be irrigated shall not be wholly relocated and that any adjustment or expansion of the irrigation area shall require Town’s prior review and approval; c. The Raw Water System Connections shall only serve to irrigate the same areas as irrigated and but not to exceed a total of two million gallons of usage per year and subject to the actual availability of raw water in the raw water irrigation system; d. The Grantor or property owner served by the Raw Water System Connections shall install water meters acceptable to the Town at no expense to the Town by May 1, 2014; e. The Town shall not charge any plant investment fees, raw water system tap fees, or any user fees for the Raw Water System Connections; and EX-D-8 Wet Well Easement Agreement – Oct. 22, 2012 Page 8 of 15 Version 9 f. The Town reserves the right to charge such raw water system tap fees, user fees and assessments as determined appropriate by the Town for any additional connections or expansion of water use through existing connections to the Town’s raw water irrigation system. [Signature Page Follows] EX-D-8 Wet Well Easement Agreement – Oct. 22, 2012 Page 9 of 15 Version 9 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first set forth above. GRANTOR: TRAER CREEK-RP LLC, a Colorado limited liability company By: Traer Creek LLC, a Colorado limited liability company, its managerManager By:__________________________ MagnusMarcus Lindholm, Manager STATE OF COLORADO ) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this __________ day of __________, 2012__________, 2013, by ___________________, as ____________ of Traer Creek LLC, a Colorado limited liability company, as Manager of Traer Creek-RP LLC, a Colorado limited liability company. Witness my hand and official seal __________________________________________ [ S E A L ] My Commission Expires:______________________ EX-D-8 Wet Well Easement Agreement – Oct. 22, 2012 Page 10 of 15 Version 9 GRANTEE: TOWN OF AVON, a home rule municipal corporation of the State of Colorado By:_______________________________ Attest:________________________________ Rich Carroll, Mayor Patty McKenny, Town Clerk STATE OF COLORADO ) )ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this __________ day of __________, 2012__________, 2013, by Rich Carroll, as Mayor and Patty McKenny, as Town Clerk of the Town of Avon, of the State of Colorado. Witness my hand and official seal __________________________________________ [ S E A L ] My Commission Expires:______________________ EX-D-8 Wet Well Easement Agreement – Oct. 22, 2012 Page 11 of 15 Version 9 EXHIBIT A EX-D-8 Wet Well Easement Agreement – Oct. 22, 2012 Page 12 of 15 Version 9 Premises Easement Area EX-D-8 Wet Well Easement Agreement – Oct. 22, 2012 Page 13 of 15 Version 9 EX-D-8 Wet Well Easement Agreement – Oct. 22, 2012 Page 14 of 15 Version 9 EX-D-8 Wet Well Easement Agreement – Oct. 22, 2012 Page 15 of 15 Version 9 EXHIBIT B Connections to Wet Well EX-D-7 Amended and Restated Nottingham Dam Easement and Assignment Agreement, Oct. 22, 2012 June 6, 2013 Page 1 of 11 RECORDING REQUESTED BY AND WHEN RECORDED PLEASE RETURN TO: Town of Avon P.O. Box 975 Avon, CO 81620 attn: Patty McKenny, Town Clerk AMENDED AND RESTATED NOTTINGHAM DAM EASEMENT AND ASSIGNMENT AGREEMENT THIS AMENDED AND RESTATED NOTTINGHAM DAM EASEMENT AND ASSIGNMENT AGREEMENT (“Agreement”) is made and entered into as of this ____ day of __________, 20122013 (“Effective Date”) by and between TRAER CREEK-RP LLC, a Colorado limited liability company (“Developer”), whose address is P.O. Box 9429, 0101 Fawcett Road, Suite 210, Avon, CO 81620, TRAER CREEK METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado (“TCMD”) c/o Special District Management Services, Inc., 141 Union Boulevard, Suite 150, Lakewood, Colorado 80228, and the TOWN OF AVON, a home rule municipal corporation of the State of Colorado (“Town”), whose address is P.O. 75, 1 Lake Street, Avon, CO 81620 (collectively, the “Parties”). RECITALS WHEREAS, Developer and TCMD entered into that certain Nottingham Dam Easement Agreement, dated June 9, 2004 and recorded August 25, 2004 at Reception No. 888905 of the real property records of Eagle County, Colorado, (the “(“Original Easement Agreement”); and WHEREAS, Developer, TCMD, Town and certain other parties entered into a Settlement Term Sheet, dated October 7, 2011, to settle and resolve various legal claims asserted in consolidated cases 2008 CV 384 and 2010 CV 316 in the district court for Eagle County, Colorado, which included (“STS”). The STS includes, among other terms, an obligation of the Town to assume certain maintenance obligations of TCMD, including assumption of TCMD’s maintenance obligations related to Nottingham Dam, which maintenance obligations to be assumed by Town are defined as stated in Section 4.2(c) of the Consolidated, Amended and Restated Annexation and Development Agreement for the Village (at Avon), dated _____________, 2012____________, 2013 (“Development Agreement”); and, WHEREAS, for the purpose of implementing the pertinent terms of the Settlement Term SheetSTS and the Development Agreement related to the Town’s assumption of TCMD’s maintenance obligations for the Nottingham Dam, the Developer and TCMD desire to amend certain terms of the Original Easement Agreement, as more fully set forth herein, and TCMD desires to assign all of its rights, title, interests and obligations in, under and to the Original Easement Agreement to Town, and Town desires to assume all such rights, title, interests and EX-D-7 Amended and Restated Nottingham Dam Easement and Assignment Agreement, Oct. 22, 2012 June 6, 2013 Page 2 of 11 obligations from TCMD as amended and stated herein, and Developer desires to consent to such assignment in accordance with the terms stated herein. NOW, THEREFORE, in consideration of the premises, the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: COVENANTS AND AGREEMENT 1. Assignment. TCMD hereby assigns all of its of rights, title, interests and obligations to the Town as set forth and established in the Original Easement Agreement, Developer hereby consents and agrees to such assignment of the Original Easement Agreement, and Town hereby accepts such assignment of the Original Easement Agreement, subject to the terms and conditions set forth in this Agreement. By this Agreement becoming effective, Developer, TCMD and Town hereby agree that TCMD shall have no further rights, title, interests or obligations under the Original Easement Agreement. 2. Amended and Restated Nottingham Dam Easement Agreement. Developer hereby amends and restates the Original Easement Agreement in its entirety as stated in this Agreement, and Town agrees and accepts the rights, title, interests and obligations to the Nottingham Dam as stated in this Agreement. To the extent the Original Easement Agreement established any rights, title, interests or obligations which are more or less than as stated in this Agreement, Developer and Town agree that the rights, title, interests and obligations conveyed to and assumed by Town shall only be to the extent stated in this Agreement and that the intent, that Developer and Town hereby release any rights and obligations of the Original Easement Agreement which are inconsistent with this Agreement, and that the intent and effect is that this Agreement shall replace and supersede the Original Easement Agreement in its entirety. 3. Grant of Easement. Developer grants, sells and conveys to Town, its successors and assigns, a non-exclusive, easement on, over, across, upon and through the Nottingham Dam Propertyproperty, in the location generally depicted on Exhibit A attached hereto (the “Nottingham Dam Rehabilitation Easement”).”) to access, maintain, repair, replace, improve, reconstruct, expand, reduce, decommission and/or remove the Nottingham Dam and impoundment area. The Nottingham Dam Rehabilitation Easement shall also include a non- exclusive, easement on, over, across, upon and through such additional real property located adjacent to the real property described on Exhibit A as may be reasonably necessary for Town’s construction staging activities associated with the “Nottingham Dam Rehabilitation Project” (as hereinafter defined). The Nottingham Dam Rehabilitation Easement may be used by Town, its employees, agents and contractors in accordance with the terms of this Agreement and only in connection with the rehabilitation of the spillway, outlet and dam crest of the Nottingham Dam as approved by the State of Colorado in Water Division 5, DAMID: 370119, Construction File No. C-1610A (the “Nottingham Dam Rehabilitation Project”).Town to exercise its rights herein. Notwithstanding the foregoing or any other provision of this Agreement, Developer and EX-D-7 Amended and Restated Nottingham Dam Easement and Assignment Agreement, Oct. 22, 2012 June 6, 2013 Page 3 of 11 Town agree that Town’s obligations assumed by Town under this Agreement shall be construed, interpreted and applied such that Town shall have the sole discretion to determine the appropriate maintenance of the Nottingham Dam, which in accordance with the minimum requirements of the State of Colorado Division of Water Resources as determined by the Dam Safety Engineer or other appropriate State official, which maintenance discretion shall include but not be limited to maintenance, repair, replacement, improvement, reconstruction, expansion, reduction, decommission, removal and deferral of the Nottingham Dam and any activity related to the Nottingham Dam in accordance with Section 4.2(c) of the Development Agreement. This Agreement shall constitute a non-exclusive, permanent easement for the operation, maintenance, repair and replacement of the improvements constructed, or to be constructed, if any, as part of the Nottingham Dam Rehabilitation Project and no further easement will be required. In the event that the Town decommissions or abandons the Nottingham Dam, Developer may request that Town release and terminate this Agreement in writing and Town shall not unreasonably refuse such request.Developer acknowledges that the Town is not the current designated owner of the Nottingham Dam according to the records of the Dam Safety Branch, Division of Water Resources, and Developer agrees to reasonably cooperate with Town as necessary to allow Town to work directly with the Division of Water Resources with regard to maintenance of the Nottingham Dam and performance of Town’s duties under this Agreement. Developer further acknowledges and agrees that Town shall not be liable or responsible for maintenance of the Nottingham Dam to the extent that Developer or Piney Valley Ranches Trust fails to reasonably cooperate or unreasonably interferes with Town’s actions to work directly with the Division of Water Resources and such failure to cooperate or interference inhibits, restricts or prohibits the Town’s ability to maintain the Nottingham Dam in accordance with the terms of this Agreement. Town agrees to promptly provide to Developer any correspondence to or from the Division of Water Resources and agrees to invite a representative of the Developer to any meetings with the Division of Water Resources to the extent such correspondence or meetings are related to the Nottingham Dam. The Town acknowledges that this Nottingham Dam Easement is non- exclusive and that Developer may seek to develop areas located uphill and downhill of the Nottingham Dam Easement; therefore, this Agreement shall not be construed to restrict Developer’s right to cross the Nottingham Dam Easement area created by this Agreement provided that Developer does not damage the Nottingham Dam structure. In the event that Town decommissions or abandons the Nottingham Dam Town shall comply with any regulatory requirements of the Division of Water Resources concerning decommissioning of the Nottingham Dam. Developer may request that Town release and terminate this Agreement in writing if the Town decommissions or abandons the Nottingham Dam and Town shall not unreasonably refuse such request. 4. Subjacent and Lateral Support. Town shall have the right of subjacent and lateral support for the Nottingham Dam improvements constructedincluding, without limitation, improvements to the dam, outlet structure(s), spillway and/or installed as part spillway channel, impoundment area and any other improvement deemed necessary in the reasonable discretion of the Town or as required by the Division of Water Resources over the Nottingham Dam Rehabilitation Projectand related improvements. Developer shall not take any action which would impair the lateral or subjacent support for said improvements. EX-D-7 Amended and Restated Nottingham Dam Easement and Assignment Agreement, Oct. 22, 2012 June 6, 2013 Page 4 of 11 5. Access. The Nottingham Dam Rehabilitation Easement includes a non-exclusive right of reasonable vehicular and pedestrian ingress, egress and access, for use by Town and its employees, agents and contractors in connection with the Nottingham Dam Rehabilitation Project, on, over, upon, across and along the existing dirt road located on the Nottingham Dam Propertyproperty and the adjacent property in the location generally depicted on Exhibit A attached hereto (“Nottingham Dam Access Easement”). 6. Improvement of the Nottingham Dam Property. A. Except as specifically set forth herein, and except as reasonably required in connection with the Nottingham Dam Rehabilitation Project, the Nottingham Dam Rehabilitationthe Nottingham Dam Easement does not include any right to construct any new roads, improvements or structures, on, over, across, through or upon any portion of the Nottingham Dam Propertyproperty or the adjacent property. Any such construction shall be subject to the prior written consent of Developer, which consent shall not be unreasonably withheld or delayed. B. Developer, and its respective successors and assigns, shall have the right to use the Nottingham Dam PropertyEasement property and the adjacent property and the right to construct improvements and structures within the Nottingham Dam PropertyEasement property and the adjacent property, including the right to construct roads on, across, over or under the Nottingham Dam structure and improvements, so long as any such Developer improvements or structures do not degrade the structural integrity of the Nottingham Dam structure or otherwise unreasonably interfere with the Nottingham Dam Rehabilitation Project, the Nottingham Dam Rehabilitation Easement,Easement or the Nottingham Dam Access Easement. 7. Maintenance of the Nottingham Dam Rehabilitation Easement. Town, and its successors and assigns, shall maintain the Nottingham Dam Rehabilitation Easement in a safe condition,accordance with the minimum requirements of the Division of Water Resources, including repairing any damage to any portion of the Nottingham Dam altered as part of the Nottingham Dam Rehabilitation Project from any source or cause whatsoever, other than any damage resulting from the acts or omissions of Developer, all for the stated purpose and intent of protecting the Nottingham Dam Property and all properties located down-gradient of the Nottingham Dam Property that may be affected by a dam failure.. Town, and its successors and assigns, shall be solely responsible for, and bear the entire cost and expense of, any such maintenance, repair and/or replacement associated with the Nottingham Dam Rehabilitation Project.. In addition, Town shall keep the Nottingham Dam and its banks in an attractive condition and shall re-grade and remove vegetation and debris from the banks of the Nottingham Dam following completion of the Nottingham Dam Rehabilitation Project.. Town’s obligations in this Paragraph 7 shall be subject to the limitations of Town’s obligations stated in Paragraph 3 above and as stated in Section 4.2(c) of the Development Agreement. Town’s obligations in this Agreement, including but not limited to Town’s obligations stated in this Paragraph 7Paragraph 7 and Town’s obligations to provide reimbursement stated below in Paragraph 13, shall be subject to annual budget and appropriation by the Town.Town. Notwithstanding the foregoing, EX-D-7 Amended and Restated Nottingham Dam Easement and Assignment Agreement, Oct. 22, 2012 June 6, 2013 Page 5 of 11 Town sole’s discretion shall not be interpreted as a right to avoid compliance with the minimum requirements of Division of Water Resources. The failure of Town to budget and appropriate funds in order to perform the Town’s obligations stated in this AgreementParagraph 7 shall not constitute a default or breach of this Agreement. 8. No Interference with Nottingham Dam Rehabilitation Project. Developer, for itself and its successors and assigns, agrees that it shall not interfere with or otherwise obstruct the Nottingham Dam Rehabilitation Project without the prior written consent of Town. Such consent shall not be unreasonably withheld or delayed. 9.8. No Public Dedication. Nothing contained in this Agreement shall be deemed to be a dedication of any portion of the Nottingham Dam Property, the Nottingham Dam Rehabilitation Easement, the adjacent property or the Nottingham Dam Access Easement to the general public or for the general public or for any public purpose whatsoever, it being the intent of the partiesParties that the Nottingham Dam Property, the Nottingham Dam Rehabilitation Easement, the adjacent property and the Nottingham Dam Access Easement are and shall continue to be private unless and until all or any portion of the same are dedicated by separate instrument. 10.9. Covenant Running With the Land. Each and every obligation of the Parties contained herein is made for the benefit of the other. All of the provisions of this Agreement shall be deemed a covenant running with the land pursuant to applicable law, and shall be binding upon the successors and assigns of each of the partiesParties hereto. Notwithstanding the foregoing and subject to Paragraph 24, if any party sells all or any portion of its interest in property subject to this Agreement, such party shall thereupon be released and discharged from any and all obligations arising under this Agreement and in connection with the property sold by it arising under this Agreement after the sale and conveyance of title but shall remain liable for all obligations arising under this Agreement prior to the sale and conveyance of title. The new owner of any such property or portion thereof (including, without limitation, anyone who acquires its interest by foreclosure, trustee sale or otherwise) shall be liable for all obligations arising under this Agreement with respect to such property or portion thereof after the date of sale and conveyance of title. 11.10. Covenants. The Developer, TCMD and Town each covenant for and on behalf of each of the other partyParties that they have taken or performed all requisite acts or actions which may be required by their organizational or operational documents to confirm their respective authority to execute, deliver and perform each of their obligations under this Agreement. 12.11. Title. Developer represents and warrants that it owns the property upon which the Nottingham Dam PropertyEasement is granted and the adjacent property in fee simple and has full power and lawful authority to grant, sell, and convey the same in manner and form as aforesaid. Developer, for itself, its heirs, personal representatives, successors and assigns, does covenant and agree that it shall warrant and forever defend Town in its quiet and peaceful possession of the Nottingham Dam Rehabilitation Easement and the Nottingham Dam Access Easement against all and every person or persons lawfully claiming ortitle to claim the property, whether in whole or anyin part thereof, by, through or under Developer. EX-D-7 Amended and Restated Nottingham Dam Easement and Assignment Agreement, Oct. 22, 2012 June 6, 2013 Page 6 of 11 13.12. Default. A party shall be deemed in default of this Agreement only upon the expiration of thirty (30) days from receipt of written notice from the non-defaulting party specifying the particulars on which such party has failed to perform its obligations under this Agreement. However, such party shall not be deemed to be in default if such failure (except the failure to pay money) cannot be rectified within said 30-day period and such party is using good faith and all reasonable efforts to rectify the particulars specified in the notice of default and in fact completes the cure of such default within a reasonable period of time not to exceed ninety (90) days., which ninety (90) day period may be extended, in the event the party in default is exercising good faith and reasonable efforts, to a maximum of two hundred seventy (270) days. Notwithstanding the foregoing, in the event an emergency occurs necessitating immediate repair or maintenance of the Nottingham Dam, any party may undertake such repairs or maintenance without such thirty (30) day written notice and shall be entitled to reimbursement for all reasonable costs and expenses incurred from the party otherwise responsible for repair or maintenance of the Nottingham Dam Rehabilitation Easement hereunder. 14.13. Remedies. Upon breach of any provision of this Agreement, delivery of written notice and the expiration of thirty (30) days as set forth in Paragraph 1312 above, the non-breaching party shall be entitled to enforce the provisions of this Agreement, in law or in equity, and relief in the nature of specific performance or damages or both may be awarded, subject to the provisions of the laws of the State of Colorado. The prevailing party in any legal or administrative action shall be awarded its reasonable costs and expenses of such action, through all appeals, including without limitation, reasonable attorneys’ fees. 15.14. Waiver. The failure of a party to insist upon strict performance of any of the provisions contained in this Agreement shall not be deemed a waiver of any rights or remedies that such party may have, and shall not be deemed a waiver of any subsequent breach or default of the performance of any of the obligations contained herein for the same or any other party. 16.15. Estoppel Certificate. Each party, so long as it has an interest in the property encumbered by this Agreement, agrees upon receipt of written request from the other party to certify in writing for a prospective purchaser or lienholder that this Agreement is in full force and effect, that it has not been amended, except as set forth in such certificate, and that the other party is not in default of any of the terms, covenants, conditions, or agreements contained in this Agreement (or, if a default does exist, specifying the nature of such default). 16. Indemnity. With regards to this Agreement, Town agrees to indemnify, defend and hold harmless Developer, its subsidiaries and its directs and indirect affiliates, and their respective agents, officers, directors, servants, consultants, advisors and employees of and from any and all reasonable costs, expenses (including, without limitation, reasonable attorney’s fees), liability, claims, liens, demands, actions and causes of action whatsoever arising out of or related to any loss, cost, damage or injury, including death of any person or damage to property of any kind, which damage, loss or injury is caused by the acts or negligent acts, errors or omissions of Town, its subcontractors or any person directly or indirectly employed by Town. With regards to this Agreement, Developer agrees to indemnify, defend and hold harmless Town and its officers, agents and employees of and from any and all reasonable costs, expenses (including, without EX-D-7 Amended and Restated Nottingham Dam Easement and Assignment Agreement, Oct. 22, 2012 June 6, 2013 Page 7 of 11 limitation, reasonable attorney’s fees), liability, claims, liens, demands, actions and causes of action whatsoever arising out of or related to any loss, cost, damage or injury, including death of any person or damage to property of any kind, which damage, loss or injury is caused by the acts or negligent acts, errors or omissions of Developer, its respective subsidiaries and affiliates, and their respective agents, officers, directors, servants, consultants, advisors and employees. 17. Notices. All notices to be given hereunder shall be in writing, and may be given, served or made by depositing the same either in the person to the authorized representative of the noticed party or by registered or certified United States mail, return receipt requested, with such notice being addressed as specified in the introductory paragraph of this Agreement, postpaid and registered or certified with return receipt requested or by delivering the same in person to the said authorized representative of such party. Notice. Unless otherwise stated in this Agreement, notice deposited in the mail, in accordance with the provisions hereof, shall be effective unless otherwise stated in the Agreement from from and after the thirdfourth (4th) day next following the: date postmarked on the envelope containing such notice, or when actually received, whichever is earlier. Notice given in any other manner shall be effective only if and when received by the party to be notified. By giving the other party at least seven (7) days written notice thereof, the parties heretoParties shall have the right to change their respective addresses and specify as their respective addresses for the purposes hereof any other address in the United States of America. 18. Headings. The headings of the various paragraphs of this Agreement have been inserted for convenience of reference only and shall not have the effect of modifying, amending or changing the express terms and provisions of this Agreement. 19. Severability. If any of the provisions of this Agreement or any paragraph, sentence, clause, phrase, word or section, or the application thereof, is in any circumstances invalidated, such invalidity shall not affect the validity of the remainder of this Agreement, and the application of such provision in any other circumstances shall not be affected thereby. 20. No Representations or Warranties. Other than as set forth in Paragraphs 1110 and 1211 of this Agreement, no representations or warranties of any nature have been made by the parties heretoParties, and none of the partiesParties hereto have entered into this Agreement in reliance upon any such representations or warranties, except as expressly set forth herein. 21. Entire Agreement. This Agreement constitutes the entire agreement between the partiesParties with respect to the subject matter described herein, and further replaces and supersedes all prior agreements, rights and obligations between the partiesParties with respect to the subject matter hereof. 22. Amendment. No variations or modifications of, or amendments to, the terms of this Agreement shall be binding upon the parties unless reduced to writing and signed by the parties heretoParties. EX-D-7 Amended and Restated Nottingham Dam Easement and Assignment Agreement, Oct. 22, 2012 June 6, 2013 Page 8 of 11 23. Governing Law, Interpretation and Venue. It is the intention of the parties hereto that all questions with respect to the construction and interpretation of this Agreement and the rights and liabilities of the parties hereunder Assignment. This Agreement shall not be determined in accordance with the laws of the State of Colorado. In addition, this Agreementassigned by Town without the prior written consent of Developer, which consent shall not be deemed to have been prepared jointly by the parties.unreasonably withheld. The forumexpress assumption, in writing, of this Agreement shall thereby relieve the applicable assignor to the matters so assumed by the assignee. 24. Legal Fees and Costs. Except for resolution of arbitration as set forth in paragraph 25 below, in the event that a party institutes an action or proceeding for a declaration of rights of Town and Developer under this Agreement, for injunctive relief, for an alleged breach or default of this Agreement, or any and all disputes other action arising hereunderout of this Agreement, or the transactions contemplated hereby, the prevailing party shall be the entitled to its actual reasonable costs and attorney’s fees. Pursuant to Section 1, TCMD shall not be a party to any legal or arbitration proceeding that doesn’t regard anything before the Effective Date. Town and Developer agree to waive their respective rights to a jury trial in any civil legal proceeding. 23.25. Governing Law and Venue. This Agreement shall be governed and construed under the laws of the State of Colorado. Venue for any legal action relating to this Agreement shall be the State District Court in and for Eaglethe County, State of Eagle, Colorado. Each party shall also have the right to obtain a declaratory judgment, whether the issue is ripe or not. If a court will not issue a declaratory judgment, because the issue is not ripe, the Town and Developer agree to submit any disputes under this Agreement to the Judicial Arbiter’s Group (“JAG”) for binding resolution in accordance with the Colorado Uniform Arbitration Act. Pursuant to Section 1, TCMD shall not be a party to any legal or arbitration proceeding that doesn’t regard anything before the Effective Date. 24.26. Execution. This Assignment may be executed in counterparts as originals or by facsimile copies of executed originals; provided however, if executed and evidence of execution is made by facsimile copy, then an original shall be provided to the other Party and the Service ProviderParties within seven (7) days of receipt of said facsimile copy. [SIGNAUTRESIGNATURE PAGE FOLLOWS] EX-D-7 Amended and Restated Nottingham Dam Easement and Assignment Agreement, Oct. 22, 2012 June 6, 2013 Page 9 of 11 DEVELOPER: TRAER CREEK-RP LLC, a Colorado limited liability company By: Traer Creek LLC, a Colorado limited liability company, its Manager By:_______________________________ Name:_____________________________ Name: Marcus Lindholm Title:______________________________: Manager STATE OF COLORADO ) )ss. COUNTY OF ______________________ ) The foregoing instrument was acknowledged before me this _____ day of __________, 20_____,2013, by ____________________,Marcus Lindholm, as ____________________Manager of ____________________ [Traer Creek LLC, a Colorado limited liability company and by ____________________ as ____________________Manager of ____________________].Traer Creek-RP LLC, a Colorado limited liability company. Witness my hand and official seal. My commission expires: Notary Public EX-D-7 Amended and Restated Nottingham Dam Easement and Assignment Agreement, Oct. 22, 2012 June 6, 2013 Page 10 of 11 TRAER CREEK METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado By:______________________________________ Name:____________________________________ Title:_____________________________________ Name: Daniel J. Leary Title: President STATE OF COLORADO ) )ss. COUNTY OF ______________________ ) The foregoing instrument was acknowledged before me this _____ day of __________, 20_____,2013, by ____________________,Daniel J. Leary, as ____________________President of ____________________ [and by ____________________ as ____________________ of ____________________].Traer Creek Metropolitan District. Witness my hand and official seal. My commission expires: Notary Public EX-D-7 Amended and Restated Nottingham Dam Easement and Assignment Agreement, Oct. 22, 2012 June 6, 2013 Page 11 of 11 TOWN OF AVON, a home rule municipal corporation of the State of Colorado By:______________________________________ Name:____________________________________ Title:_____________________________________ STATE OF COLORADO ) )ss. COUNTY OF ______________________ ) The foregoing instrument was acknowledged before me this _____ day of __________, 20_____, by ____________________, as ____________________ of ____________________ [and by ____________________ as ____________________ of ____________________]. Witness my hand and official seal. My commission expires: Notary Public Heil Law & Planning, LLC Office: 303.993.4608 2696 South Colorado Blvd., Suite 550 Fax: 720.836.3337 Denver, CO 80222 E-Mail: meredith@heillaw.com HEIL LAW TO: Honorable Mayor Carroll and Town Council Members CC: Virginia Egger, Town Manager THRU: Eric Heil, Town Attorney FROM: Meredith Van Horn, Assistant Town Attorney RE: Approval of Agreements and Improvement Conveyances to the Town DATE: May 31, 2013 Summary: This memorandum describes the documents to be approved by Resolution 13-18. This includes revisions to a document previously approved by Town Council, the Roadway Easement Agreement, a new agreement, the Raw Water System Operation and Maintenance Agreement, the Special Warranty Deed conveying raw water rights to the Town, and Bills of Sale for two improvements to be conveyed to the Town, the Nottingham Gulch Storm Sewer and the Nottingham Gulch Energy Dissipater. Access Easement Agreement: This agreement conveys an easement to the Town for access from East Beaver Creek Boulevard to Lot 2/Planning Area B. The version of the agreement attached to Ordinance 12-10 was titled “Roadway Easement Agreement”. On the Second Amended Final Plat, Amended Final Plat, The Village (at Avon) Filing 1, A Resubdivision of Lot 1 the title of the easement is Access Easement. The title of the agreement is revised to “Access Easement Agreement” to ensure that it has the same title as on the re-plat. The Agreement has been updated to change all dates to 2013, to correct an incorrect cross-reference to the CARADA, and to include an “Approved as to legal form by” signature block. Paragraph 1 provides the basic parameters of the easement. The width of the easement is reduced from fifty (50) feet to forty (40) feet. In addition, Traer Creek-RP, LLC provided revisions which exclude the installation of Communications Utilities from the permitted uses under the easement. Communications Utilities include such utilities as cable television cables and sires, telephone cables, fiber optic cables, and the pipes are defined as “(a) cable television cables, wires, lines, plugs, connections, junction boxes, access boxes, vaults, switches, terminals and similar improvements; (b) telephone and communication cables, fiber-optic cables, wires, lines, plugs, connections, junction boxes, access boxes, vaults, switches, terminals, jacks and similar improvements; (c) data cables, fiber-optic cables, wires, lines, plugs, connections, junction boxes, access boxes, vaults, switches, terminals, jacks and similar improvements; and (d) utility conduit, pipe, sleeve, trough or similar enclosures for the purpose of holding, running or containing the facilities described in clauses (a) through (c).” Paragraph 2 of the Agreement is revised to allow termination of the easement in addition to the options of relocating, adjusting or repositioning its location. The revision notes that the configuration of Future Main Street in the PUD Master Plan shows that it will abut Lot 2/Planning Area B and thus will provide legal access to Lot 2/Planning Area B without the need of the Easement. The revision states that “at no time shall Planning Area B be without legal access to Future Main Street or another public right-of-way.” Paragraph 4 is revised to allow Traer Creek-RP, LLC to use the easement area for snow dumping and storage. Paragraph 6 is a new paragraph regarding indemnification and insurance and states that the Town will indemnify Traer Creek-RP, LLC against any claims that arise from the Town’s use of the easement, with the exclusion of any negligence or willful misconduct by Traer Creek-RP, LLC. In addition, the Town shall maintain insurance coverage “as reasonably determined by” the Town. Exhibit C to the Agreement is the Legal Description which has also be revised to include the reception information for the Amended Plat for Lot 1 and to refer to Lot 2 as “Lot 2” and not “Proposed Lot 2”. M EMORANDUM & PLANNING, LLC Avon Town Council Asset Conveyances May 31, 2013 Page 2 of 2 The Village (At Avon) Raw Water System Operations and Maintenance Agreement and Special Warranty Deed: The Raw Water System Operations and Maintenance Agreement (“Raw Water O&M Agreement”) outlines the operations and maintenance of the Raw Water System and the future Village (at Avon) Lake Nos. 1 and 2. Section 1 states that the Town is assuming the operations and maintenance of the raw water system which includes “the Nottingham and Puder Ditch, and any and all diversion ditches, pipelines, headgates and structures, pumps, casings, wet wells and other improvements associated with or used in connection with the raw (non-potable) water system that serves or will serve the Property”. TCMD shall continue to operate and maintain the part of the raw water system that provides water for use in irrigating Tract E. If Village (at Avon) Lake Nos. 1 and 2 are constructed at some point in the future, Section 2 outlines the maintenance and operation of those water bodies. If the lakes are constructed as “part of the development of the Property” then the maintenance will be the responsibility of TCMD or the Developer. If the lakes are constructed as a public amenity for the Town then the lakes will be the responsibility of the Town. The Raw Water O&M Agreement in Section 3 also requires that the Town provide an accounting for all diversions at the Nottingham and Puder Ditch and the two wet wells, the total number of acres irrigated and diversions from and releases into Lake Nos. 1 and 2. Section 4, 5 and 6 address future filings in the Water Court, the need for augmentation for additional irrigation, and the use of any unused historic consumptive use credits. Accompanying this Raw Water O&M Agreement is a Special Warranty Deed conveying the raw water rights of TCMD to the Town. Bills of Sale for Nottingham Gulch Storm Sewer and Nottingham Gulch Energy Dissipater: The Nottingham Gulch Storm Sewer and the Nottingham Gulch Energy Dissipater are two improvements to be conveyed to the Town that were not conveyed by the earlier bills of sale from TCMD. The Storm Sewer runs from just north of I-70, under I- 70, across Lots 4, 5, and 6 in Filing 1 and down to the Eagle River. The Nottingham Gulch Energy Dissipater is located where the storm sewer meets the Eagle River on the McGrady Acres Open Space and is a water dissipater. Requested Action: Approve Resolution No. 13-18 “A RESOLUTION APPROVING THE VILLAGE (AT AVON) RAW WATER SYSTEM OPERATIONS AND MAINTENANCE AGREEMENT, SPECIAL WARRANTY DEED, ACCESS EASEMENT AGREEMENT, THE BILL OF SALE (NOTTINGHAM GULCH STORM SEWER), AND THE BILL OF SALE (NOTTINGHAM GULCH ENERGY DISSIPATER)” Thanks, Meredith Res. 13-18 Approving Asset Conveyances TOWN OF AVON RESOLUTION NO. 13-18 Series of 2013 A RESOLUTION APPROVING THE VILLAGE (AT AVON) RAW WATER SYSTEM OPERATIONS AND MAINTENANCE AGREEMENT, SPECIAL WARRANTY DEED, ACCESS EASEMENT AGREEMENT, THE BILL OF SALE (NOTTINGHAM GULCH STORM SEWER), AND THE BILL OF SALE (NOTTINGHAM GULCH ENERGY DISSIPATER) WHEREAS, on October 7, 2011 the Town of Avon and other parties entered into the Settlement Term Sheet (“Settlement Term Sheet”) in an effort to resolve pending litigation No. 2008 CV 385 and 2010 CV 316, Eagle County District Court; WHEREAS, as partial implementation of the Settlement Term Sheet, the Avon Town Council approved the Consolidated, Amended and Restated Annexation and Development Agreement (“CARADA”) by Ordinance No. 12-10 which in Section 4.2(c) the Town of Avon will assume maintenance obligations of Traer Creek Metropolitan District; WHEREAS, Section 4 of Ordinance 12-10 allows the Town Council to approve amendments and/or revisions to the documents conveying property by resolution; WHEREAS, the Town of Avon may act by resolution to provide approval of agreements and conveyances of property to the Town pursuant to Avon Town Charter Section 6.1; and, WHEREAS, the Avon Town Council approved the Closing Escrow Agreement by Ordinance No. 12-10 which set forth various terms concerning the execution and deposit of documents and agreements into escrow and the effectiveness or voiding of such documents and agreements. NOW, THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON: Section 1. The following agreements and asset conveyances are hereby approved by the Town of Avon subject to the terms and conditions of the Closing Escrow Agreement: (a) The Village (at Avon) Raw Water System Operations and Maintenance Agreement, attached hereto as Exhibit A; (b) The Special Warranty Deed conveying water storage rights and direct flow rights, attached hereto as Exhibit B; (c) The Access Easement Agreement, attached hereto as Exhibit C; (d) The Bill of Sale (Nottingham Gulch Storm Sewer), attached hereto as Exhibit D; and Res. 13-18 Approving Asset Conveyances (e) The Bill of Sale (Nottingham Gulch Energy Dissipater), attached hereto as Exhibit E. ADOPTED this JUNE 11, 2013 TOWN COUNCIL ATTEST: By:_________________________________ By:________________________________ Rich Carroll, Mayor Patty McKenny, Town Clerk {00201284 / 5 }{00201284 / 5 } 1 THE VILLAGE (AT AVON) RAW WATER SYSTEM OPERATIONS AND MAINTENANCE AGREEMENT This The Village (at Avon) Raw Water System Operations and Maintenance Agreement (the “Agreement”) is made and entered into as of this _____ day of __________________, 2013, by and between the Town of Avon, a home rule municipal corporation of the State of Colorado (the “Town”), and the Traer Creek Metropolitan District, a quasi-municipal corporation and political subdivision of the State of Colorado (“TCMD”). RECITALS A. WHEREAS, the Town, TCMD and other parties entered into that certain Settlement Term Sheet dated October 7, 2011, in order to settle litigation among the parties in consolidated civil action Case No. 2008CV385, Eagle County District Court, arising from various disputes concerning The Village (at Avon) real estate development which property is legally described in the attached Exhibit A (the “Property”). Pursuant to paragraph 3(e) of the Settlement Term Sheet, TCMD agreed to convey to the Town certain water rights that service the Property, which in turn are to be conveyed from the Town to the Upper Eagle Regional Water Authority (“Authority”). The Town, TCMD, the Authority and other parties subsequently entered into that certain Traer Creek Water Storage Tank Agreement, dated ________________________, 2013, which set forth, among other things, which water rights would be conveyed and the specific terms and conditions for the conveyance; and B. WHEREAS, TCMD has conveyed to the Town by Special Warranty Deeds the water rights described in the attached Exhibits B and C (the “Water Rights”), together with the rights and benefits of the plan for augmentation and exchange related to said water rights as decreed for the Property by the District Court for Water Division No. 5 in Case No. 97CW306 (the “Augmentation Plan”), and the historic consumptive use credits dedicated to the Augmentation Plan described in the attached Exhibit D (the “HCU Credits”). The Augmentation Plan allows for both potable and raw (non-potable) water service to be provided to the Property using a combination of the Water Rights and the HCU Credits; and C. WHEREAS, by another Special Warranty Deed, the Town has conveyed to the Authority the Water Rights that provide potable water service to the Property (e.g. the direct flow rights decreed to the Metcalf Ditch and Raw Water Booster Pump), along with the HCU Credits dedicated to the Augmentation Plan, reserving unto the Town up to 74.3 acre-feet of the HCU Credits allocated to replace out-of-priority diversions from raw (non-potable) water irrigation of 38.27 acres and evaporation from up to 2.7 surface acres of lakes on the Property, in accordance with the assumptions and depletion factors set forth in Schedules A, B and C of the Augmentation Plan; and D. WHEREAS, pursuant to paragraph 6(D)(2) of the Case No. 97CW306 decree, up to 5 cfs of raw (non-potable) water may be diverted at the Nottingham and Puder Ditch for filling and refilling The Village (at Avon) Lake Nos. 1 and 2. Alternatively, up to 5 cfs may be diverted by augmentation, in which case the stored water is accounted for against the HCU Credits. {00201284 / 5 }{00201284 / 5 } 2 Pursuant to paragraph 7(E) of the Augmentation Plan, raw (non-potable) water may also be diverted through the Nottingham and Puder Ditch for irrigation, flow through and recreational purposes, in which case the depletions from such use are augmented by the HCU Credits; and E. WHEREAS, the Town has agreed to operate the raw (non-potable) water system for the Property described in the Case No. 97CW306 decree, including the Nottingham and Puder Ditch and The Village (at Avon) Lake Nos. 1 and 2, subject to the terms and conditions of this Agreement, and with the understanding that the Town is not obligated to construct, maintain or repair The Village (at Avon) Lake Nos. 1 and 2. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and TCMD do hereby state and agree as follows: AGREEMENT 1. Operation and Maintenance of the Raw (Non-Potable) Water System. The Town will operate and maintain the raw (non-potable) water system for the Property as decreed in Case No. 97CW306, including the Nottingham and Puder Ditch, and any and all diversion ditches, pipelines, headgates and structures, pumps, casings, wet wells and other improvements associated with or used in connection with the raw (non-potable) water system that serves or will serve the Property, except that TCMD will operate and maintain any part of the raw (non- potable) water system that solely benefits the portion of the Property known as Tract E, Final Plat, The Village (at Avon) Filing 1, Recorded on May 8, 2002, at Reception No. 795007 (“Tract E”). The maintenance costs for which TCMD will continue to be responsible include the Tract E wet well, and any other pipes, valves, pumps, or other fixtures required to deliver water to irrigate and operate the water feature on Tract E. The Town will be solely responsible for all other costs incurred to operate and maintain the raw (non-potable) water system, including any costs for repairs and maintenance of the Nottingham and Puder Ditch and its appurtenances. The Town reserves the right to establish reasonable fees and charges and to impose regulations for the operation of the raw (non-potable) water system for irrigation of areas which are not owned by the Town or included in road right-of-ways dedicated to the Town. However, the Town shall not require the provision or dedication of new water rights as a condition of providing raw (non- potable) water service for the irrigation of up to 38.27 acres and lake evaporation from up to 2.7 surface acres of lakes on the Property so long as the decree in Case No. 97CW306 is applicable to determine the water needed for such uses. TCMD will continue to utilize the Nottingham and Puder Ditch water right conveyed to the Town for irrigating Tract E and any other areas mutually agreed to by the parties and will report its total water usage to the Town under this right. 2. Operation and Maintenance of The Village (at Avon) Lake Nos. 1 and 2. The Village (at Avon) Lake Nos. 1 and 2 have not been constructed and the precise location or ownership of the reservoir structures has not yet been determined. If The Village (at Avon) Lake Nos. 1 and 2 are constructed as part of the development of the Property, then the construction, repair and maintenance of The Village (at Avon) Lake Nos. 1 and 2 will be the responsibility of TCMD or the developer. However, if The Village (at Avon) Lake Nos. 1 and 2 are built as a public amenity by the Town, then the construction, repair and maintenance will be the {00201284 / 5 }{00201284 / 5 } 3 responsibility of the Town. The Town and TCMD may also wish to dedicate one lake to the Town and one lake to TCMD. The Town and TCMD will mutually determine the location of The Village (at Avon) Lake Nos. 1 and 2, subject to the approval of the developer. Once The Village (at Avon) Lake Nos. 1 and 2 reservoir structures are completed, the Town will be responsible for keeping the structures full of water at all times practicable, either by diverting under the 5 cfs right decreed to fill the structures in Case No. 97CW306 when water is available in priority or with the HCU Credits allocated to replace evaporation from the lakes if the junior right is out of priority. Water stored in The Village (at Avon) Lake Nos. 1 and 2 will not be used for augmentation purposes without the written consent of both parties to this Agreement. 3. Accounting. The Town will be responsible for reporting to the Authority all diversions at the Nottingham and Puder Ditch and the two wet wells connected to the Nottingham and Puder Ditch for the raw (non-potable) water irrigation system, total acreage irrigated by the raw (non-potable) water system and diversions to storage in and releases from the Village (at Avon) Lake Nos. 1 and 2. The parties anticipate that the Authority will be responsible for all accounting, recording and reporting for operation of the Augmentation Plan. 4. Future Water Court Filings. The parties anticipate that the Authority will file and prosecute all diligence applications and/or applications to the Water Court to make water rights absolute for the conditional water rights decreed in Case No. 97CW306. The Town may join any such applications as a Co-Applicant with the Authority, as was the practice with TCMD and the Authority in Case No. 07CW83. TCMD will cooperate with the Authority and the Town to provide all information regarding the activities taken by TCMD during the subject diligence period towards putting the subject water rights to beneficial use. 5. Additional Irrigated Area or Irrigation Consumption. The Augmentation Plan contemplated that up to 38.27 acres of the Property would be irrigated by the raw (non-potable) water system. Pursuant to the assumptions and depletion factors decreed in Case No. 97CW306, irrigation of 38.27 acres will require approximately 68.9 acre-feet per year of augmentation water and keeping The Village (at Avon) Lake Nos. 1 and 2 full will require up to 5.4 acre-feet of augmentation water for evaporation replacement from a maximum of 2.7 acres of lake surface area. Therefore, up to 74.3 acre-feet of the HCU Credits have been reserved to the Town and are dedicated to such uses and shall not be available for any other uses under the Augmentation Plan without the written consent of the parties to this Agreement. If more than 38.27 acres of the Property is to be irrigated by the raw (non-potable) water system and there are not enough HCU Credits available under the Augmentation Plan to provide both potable and raw (non-potable) water service to the Property based on the current or anticipated build-out of the Property, TCMD will be responsible for providing or causing to provide any and all water rights necessary to irrigate the additional area or otherwise to make up the shortfall. 6. Reduced Irrigation or Lake Evaporation. If the entire 74.3 acre-feet of HCU Credits reserved by the Town is not needed to fully augment the full extent of raw (non-potable) water uses on the Property after full build-out, or if it is otherwise determined that there are excess HCU Credits reserved by the Town that are not necessary for augmenting out-of-priority depletions from the raw (non-potable) water system on the Property under the depletion factors {00201284 / 5 }{00201284 / 5 } 4 and other assumptions decreed in the Augmentation Plan, the excess of the reserved HCU Credits may be reallocated to augment potable uses as allowed for under the Augmentation Plan, subject to written approval of the parties to this Agreement, such approval to not be unreasonably withheld and subject to the approval of the Authority. Upon such approvals of the reallocation of excess HCU Credits from the raw (non-potable) water system to potable water uses, the Town will convey by special warranty deed the approved amount of such excess HCU Credits to the Authority. 7. Remedies. In the event of a breach or threatened breach of this Agreement, the non-breaching party shall be entitled to an immediate injunction restraining the breaching party from such breach or threatened breach, including both preliminary and final injunctions. Such remedy shall be in addition to all other remedies available at law or in equity, including but not limited to, damages, costs and reasonable attorneys’ fees. The prevailing party in any litigation arising out of or related to this Agreement shall be awarded its reasonable attorneys’ fees and costs through all appeals in addition to any other remedy provided. 8. Waiver. The failure of a party to insist upon strict performance of any of the provisions contained in this Agreement shall not be deemed a waiver of any rights or remedies that such party may have, and shall not be deemed a waiver of any subsequent breach or default of the performance of any of the obligations contained herein for the same or any other party. 9. Amendment. This Agreement may be amended only in a writing executed by the parties, their heirs, successors or assigns. To be effective, any amendment must be recorded in the real property records of Eagle County, Colorado. 10. Severability. If any of the provisions of this Agreement or any paragraph, sentence, clause, phrase, word or section, or the application thereof, is in any circumstances invalidated, such invalidity shall not affect the validity of the remainder of this Agreement, and the application of such provision in any other circumstances shall not be affected thereby. 11. Duration. This Agreement shall run with title to the Water Rights and Augmentation Plan, shall be binding upon any current or future owners of the Water Rights and Augmentation Plan, and their successors and assigns, and shall be perpetual. 12. Governing Law. This Agreement will be construed under and be governed by the laws of the State of Colorado. Any legal action relating to this Agreement will be instituted and prosecuted in the District Court in and for Eagle County, Colorado. 13. Recording. This Agreement shall be recorded in the real property records of Eagle County, Colorado. IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above written. (remainder of page left intentionally blank) {00201284 / 5 }{00201284 / 5 } 5 THE TOWN: THE TOWN OF AVON, a home rule municipal corporation of the State of Colorado By: Name: Title: STATE OF COLORADO ) ) :ss COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this ___ day of _____________, 2013, by ________________________, as ________________ of the Town of Avon. Notary Public My Commission expires: TCMD: TRAER CREEK METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado By: Name: Daniel J. Leary Title: President STATE OF COLORADO ) ) :ss COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this ___ day of _____________, 2013, by Dan Leary, as President of the Traer Creek Metropolitan District. Notary Public My Commission expires: {00225779 / 1 } SPECIAL WARRANTY DEED This Special Warranty Deed dated this ______ day of ________________, 2013, is from the Traer Creek Metropolitan District, a quasi-municipal corporation and political subdivision of the State of Colorado (“Grantor”), to the Town of Avon, a home rule municipal corporation of the State of Colorado (“Grantee”), whose address is P.O. Box 975, One Lake Street, Avon, Colorado 81620. For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor hereby grants, bargains, sells and conveys to Grantee all of Grantor’s right, title and interest in and to the water rights described in Exhibit A, located in Eagle County, Colorado (the “Water Rights”), free and clear of all liens and encumbrances, together with the associated rights and benefits of the changes of water rights, plan for augmentation and exchange decreed by the District Court in and for Water Division No. 5 in Case No. 97CW306 (the “Augmentation Plan”) as such decree relates to the water rights in Exhibit A. Together with all diversion ditches, dams, spillways, spillway channels, pipelines, headgates and structures, pumps, casings and other improvements and easements associated or used in connection with the Water Rights (including without limitation rights of access thereto) as becomes necessary from time to time to provide municipal water service or raw water irrigation service to the Property described in the attached Exhibit B (“Appurtenances”), subject to The Village (at Avon) Raw Water System Operations and Maintenance Agreement being executed by Grantor and Grantee of even date herewith. Grantor, for itself, its successors and assigns, covenants and agrees that it will warrant title and forever defend the Water Rights and Appurtenances in the quiet and peaceable possession of Grantee, its successors and assigns, against all and every person or persons claiming the whole or any part thereof, by, through, or under Grantor. TRAER CREEK METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado By: ______________________________________ Name: ____________________________________ Title: _____________________________________ {00225779 / 1 } STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this ___ day of ____________, 2013 by ________________________, as President of the Traer Creek Metropolitan District. Witness my hand and official seal. My commission expires: _________________. [SEAL] ___________________________________ Notary Public {00225779 / 1 } EXHIBIT A TO SPECIAL WARRANTY DEED FROM TRAER CREEK METROPOLITAN DISTRICT TO TOWN OF AVON Description of Water Rights 1. Water Storage Rights. A. Nottingham Reservoir: In Case No. 94CW113, Water Division No. 5, Nottingham Reservoir was conditionally decreed for 22 acre-feet for domestic, commercial, industrial, augmentation and other uses with an appropriation date of May 31, 1994, and an adjudication date of December 31, 1994. In the same case, the reservoir was also decreed 22 acre-feet absolute for irrigation and stock watering. Nottingham Reservoir is an on-channel reservoir located on Nottingham Gulch, a tributary of the Eagle River. The point of intersection of the Nottingham Dam axis with the centerline of the easterly spillway is located in the SW1/4 of the NW1/4 of Section 8, T. 5 S., R. 81 W., at a point whence the northwesterly corner (BLM Brass Cap) of said Section 8 bears N. 27°34′30″W. 1800 feet. Nottingham Reservoir has been decreed as an augmentation source in Case No. 97CW306. B. The Village (at Avon) Lake Nos. 1 and 2: The Village (at Avon) Lake Nos. 1 and 2, with an adjudication date of December 31, 1997, and an appropriation date of May 20, 1997, as decreed by the District Court, Water Division No. 5, State of Colorado, in the decree of the Water Court in Case No. 97CW306 entered on April 9, 2001, for a combined total of 27 acre-feet, conditional, with the right to fill and refill, and with the following legal descriptions: The Village (at Avon) Lake No. 1: This lake is located in the S1/2 SE1/4 NE1/4 and the N1/2 NE1/4 SE1/4 of Section 12, T. 5 S., R. 82 W. of the 6th P.M., Eagle, County, Colorado. The Village (at Avon) Lake No. 2: This lake is located in the NW1/4 SE1/4 of Section 7, T. 5 S., R. 81 W. of the 6th P.M., Eagle County, Colorado. The Village (at Avon) Lake Nos. 1 and 2 are decreed to fill and refill from the Nottingham and Puder Ditch, limited to a diversion rate of 5 c.f.s. 2. Direct Flow Rights. Any and all direct flow rights and other water rights associated with the raw (non- potable) water system approved as part of the plan for augmentation and exchange decreed by the District Court, Water Division No. 5, State of Colorado, in Case No. 97CW306 entered on April 9, 2001, including the right to divert raw (non-potable) water through the Nottingham and Puder Ditch for irrigation, flow through and recreational purposes. {00225779 / 1 } EXHIBIT B PARCEL 1 DESCRIPTION That part of the E 1/2 of Section 12, Township 5 South, Range 82 West of the Sixth Principal Meridian, Eagle County, Colorado, according to the Dependent Resurvey and Survey of said Township and Range, accepted September 7, 1977 by the Department of the Interior Bureau of Land Management in Washington, D.C., together with parts of Sections 7, 8, 9 & 17, Township 5 South, Range 81 West of the Sixth Principal Meridian, Eagle County, Colorado, according to the Dependent Resurvey of said Township and Range, accepted November 1, 1943 by the Department of the Interior General Land Office in Washington, D.C., described as a whole as follows: Beginning at the Northwest corner of said Section 7; thence along the northerly line of said Section 7, N88°49’24”E 2791.46 feet, to the North 1/4 corner of said Section 7; thence, departing said northerly line, along the easterly line of the NW 1/4 of said Section 7, S00°11’12”E 2621.00 feet, to the northerly right-of-way line of Interstate Highway No. 70, as described in the deed recorded in Book 223 at Page 982 in the office of the Eagle County, Colorado, Clerk and Recorder; thence, along said northerly right-of-way line, S69°28’35”E 196.48 feet, to the northerly line of the SE 1/4 of said Section 7; thence, along said northerly line, N89°50’40”E 2572.71 feet, to the West 1/4 corner of said Section 8; thence, along the westerly line of said Section 8, N00°10’53”W 2738.19 feet to the Northwest corner of said Section 8; thence, along the northerly line of said Section 8, N88°40’41”E 2758.98 feet, to the North 1/4 corner of said Section 8; thence, continuing along said northerly line, N88°42’58”E 850.00 feet; thence, departing said northerly line, S56°30’00”E 1274.62 feet; thence S17°38’30”E 1593.20 feet; thence S27°39’30”W 2121.59 feet; thence South 899.93 feet; thence East 2595.53 feet, to the easterly line of the SW 1/4 SW 1/4 of said Section 9; thence, along said easterly line S01º33’13”W 603.34 feet, to the Southeast corner of said SW 1/4 SW 1/4; thence, along the southerly line of said Section 9, N89º55’04”W 1371.96 feet, to the Southwest corner of said Section 9; thence, along the easterly line of said Section 17, S01°41’49”E 170.00 feet, to the centerline of the Eagle River; thence the following four courses along said centerline (Filum aquce): (1) N89°24’49”W 1037.90 feet; (2) N86°07’49”W 472.00 feet; (3) N89°29’49”W 538.00 feet; (4) S82°33’11”W 595.15 feet, to the westerly line of the NE 1/4 of said Section 17; thence, along said westerly line, N00°20’55”W 227.74 feet, to the North 1/4 corner of said Section 17; thence, along the northerly line of said Section 17, S89°23’36”E 1316.69 feet, to the Southwest corner of the SE 1/4 SE 1/4 of said Section 8; thence, along the westerly line of said SE 1/4 SE 1/4, N00°51’07”E 1398.90 feet, to the SE 1/16 corner of said Section 8; thence, along the southerly line of the NW 1/4 SE 1/4 of said Section 8, N89°54’54”W 1333.58 feet, to the CS 1/16 corner of said Section 8; thence, along the southerly line of the NE 1/4 SW 1/4 of said Section 8, N89°58’35”W 1366.46 feet, to the SW 1/16 corner of said Section 8; thence, along the easterly line of the SW 1/4 SW 1/4 of said Section 8, S00°01’37”E 1376.08 feet, to the Southeast corner of said SW 1/4 SW 1/4; thence, along the southerly line of said Section 8, N89°32’28”W 529.28 feet, to the northerly right-of-way line of the Denver and Rio Grande Western Railroad; thence the following ten courses along said northerly right-of-way line: (1) 132.91 feet along the arc of a curve to the right, having a radius of 2033.48 feet, an internal angle of 03°44’42”, and a chord that bears N70°30’09”W 132.89 feet; (2) N68°37’48”W 527.88 feet; (3) 231.12 feet along the arc of a curve to the left, having a radius of 5779.70 feet, an internal angle of 02°17’28”, and {00225779 / 1 } a chord that bears N69°46’32”W 231.09 feet; (4) S00°14’31”E 21.20 feet; (5) 1142.50 feet along the arc of a curve to the left, having a radius of 5759.70 feet, an internal angle of 11°21’55”, and a chord that bears N76º32’02”W 1140.63 feet; (6) N82°13’00”W 1136.53 feet; (7) 548.06 feet along the arc of a curve to the right, having a radius of 1880.00 feet, an internal angle of 16°42’10”, and a chord that bears N73°51’55”W 546.11 feet; (8) N00°12’23”W 22.04 feet; (9) 28.04 feet along the arc of a curve to the right, having a radius of 1860.00 feet, an internal angle of 00°51’50”, and a chord that bears N64º47’55”W 28.04 feet; (10) N64°22’00”W 377.10 feet; thence, departing said northerly right-of-way line, S25°38’00”W 100.00 feet, to the southerly right-of-way line of the Denver and Rio Grande Western Railroad, also being on the existing Town of Avon Boundary; thence, along said southerly right-of-way line and existing Town of Avon Boundary the following three courses along the northerly line of the parcel annexed to the Town of Avon: by Ordinance 86-10: (1) N64°22’00”W 2064.00 feet; (2) 968.59 feet along the arc of a curve to the left, having a radius of 34327.50 feet, an internal angle of 01°37’00”, and a chord that bears N65°10’30”W 968.56 feet; (3) N65°59’00”W 527.60 feet; thence, continuing along said southerly right-of-way line and existing Town of Avon Boundary the following course along the northerly line of the parcel annexed to the Town of Avon by Ordinance 81-38, N65°58’08”W 677.83 feet; thence, departing said southerly right-of-way line and continuing along the boundary of the parcel annexed to the Town of Avon by Ordinance 81-38, N24°01’52”E 100.00 feet, to the northerly right-of-way line of the Denver and Rio Grande Western Railroad and the Southeast corner of Lot 22, Benchmark at Beaver Creek; thence, departing said northerly right-of-way line and continuing along the existing Town of Avon Boundary the following two courses along the easterly line of the parcel originally incorporated as the Town of Avon as defined in Ordinance 78-4: (1) N18°59’40”E 995.99 feet; (2) a calculated distance and bearing of N23°55’02”W 268.23 feet (record distance and bearing of N25°10’03”W 235.72 feet), to the southerly line of the NE 1/4 NE 1/4 of said Section 12; thence, along said southerly line and existing Town of Avon Boundary the following course along the southerly line of the parcel annexed to the Town of Avon by Ordinance 81-20, a calculated distance and bearing of S89°58’41”E 1192.32 feet (record distance and bearing of S89°57’07”E 1184.14 feet), to the westerly line of said Section 7; thence, along said westerly line and existing Town of Avon Boundary the following course along the easterly line of the parcels annexed to the Town of Avon by Ordinance 81-20 and Ordinance 81-34, a measured distance and bearing of N00°11’27”W 1321.54 feet (record distance and bearing of N00º10’14”W 660.82 feet per Ordinance 81-20 and record distance and bearing of N00°10’14”W 660.83 per Ordinance 81-34), to the point of beginning, containing 967.07 acres, more or less, EXCEPTING FROM the foregoing parcel description all portions of the described property that constitute the Interstate Highway No. 70 Right-of-Way and the Denver Rio Grande Western Railroad Right-of-Way, which portions contain 99.24 acres, more or less. The net area of the parcel being included in this annexation is 867.83 acres, more or less. {00225779 / 1 } PARCEL 2 DESCRIPTION That part of Sections 8, 9 & 10, Township 5 South, Range 81 West of the Sixth Principal Meridian, Eagle County, Colorado, according to the Dependent Resurvey of said Township and Range, accepted November 1, 1943 by the Department of the Interior General Land Office in Washington, D.C., described as follows: Beginning at the North 1/4 corner of said Section 8; thence along the northerly line of said Section 8, N88°42’58”E 850.00 feet, to the True Point of Beginning; thence, continuing along said northerly line, N88°42’58”E 1920.72 feet, to the Northwest corner of said Section 9; thence, along the northerly line of said Section 9, N83°29’30”E 2773.27 feet, to the North 1/4 corner of said Section 9; thence, continuing along said northerly line, N83º24’12”E 2772.60 feet, to the Northwest corner of said Section 10; thence, along the northerly line of said Section 10, N86°39’24”E 2681.23 feet; thence, departing said northerly line, S01º34’07”W 2699.66 feet, to southerly line of the SE 1/4 NW 1/4 of said Section 10; thence, along the southerly line of said SE 1/4 NW 1/4, S86°32’23”W 1304.06 feet, to the Center West 1/16 corner of said Section 10; thence, along the easterly line of the NW 1/4 SW 1/4 of said Section 10, S01°32’50”W 1349.33 feet, to the Southwest 1/16 corner of said Section 10; thence, along the southerly line of said NW 1/4 SW 1/4, S86º32’47”W 1384.91 feet, to the South 1/16 corner of said Sections 9 & 10; thence, along the southerly line of the NE 1/4 SE 1/4 of said Section 9, S77º10’15”W 1413.37 feet, to the Southeast 1/16 corner of said Section 9; thence, along the easterly line of the SW 1/4 SE 1/4 of said Section 9, S01º33’02”W 1475.32 feet, to the East 1/16 corner of said Section 9 and Section 16 of said Township 5 South, Range 81 West of the Sixth Principal Meridian; thence, along the southerly line of said SW 1/4 SE 1/4, S72º20’31”W 1450.43 feet, to the South 1/4 corner of said Section 9; thence, along the westerly line of said SW 1/4 SE 1/4, N01°34’18”E 1601.52 feet, to the Center South 1/16 corner of said Section 9; thence, along the southerly line of the NE 1/4 SW 1/4 of said Section 9, S86º07’30”W 1378.19 feet, to the Southwest 1/16 corner of said Section 9; thence, along the easterly line of the SW 1/4 SW 1/4 of said Section 9, S01º33’13”W 903.02 feet, to the existing Town of Avon Boundary; thence, departing said easterly line, the following five courses along said existing Town of Avon Boundary: (1) West 2595.53 feet; (2) North 899.93 feet; (3) N27°39’30”E 2121.59 feet; (4) N17°38’30”W 1593.20 feet; (5) N56°30’00”W 1274.62 feet, to the True Point of Beginning, containing 922.16 acres, more or less. 1014138.9 ACCESS EASEMENT AGREEMENT THIS ACCESS EASEMENT AGREEMENT (this “Easement Agreement”) is made and entered into as of this _____ day of _________________, 2013 (“Effective Date”), by and between the TOWN OF AVON, a home rule municipal corporation of the State of Colorado (together with its successors and assigns, “Grantee”); and TRAER CREEK-RP LLC, a Colorado limited liability company (together with its successors and assigns, “Grantor”). Recitals A. Grantor is the owner of certain real property located in Eagle County, Colorado, legally described on Exhibit A attached hereto and incorporated herein by this reference (“Lot 1”). B. Grantor and Grantee are parties to that certain Consolidated, Amended and Restated Annexation and Development Agreement for The Village (at Avon) made and entered into as of _____________, 2013 and recorded in the real property records of Eagle County, Colorado (the “Records”) on or about even date herewith (“Development Agreement”). C. Pursuant to Section 3.7(b) of the Development Agreement, concurrently with the “Effective Date” (as defined in the Development Agreement) of the Development Agreement, Grantor shall dedicate and convey, or has dedicated and conveyed, to Grantee certain real property located in Eagle County, Colorado, legally described on Exhibit B attached hereto and incorporated herein by this reference (“Planning Area B”), which property is designated as Planning Area B pursuant to The Village (at Avon) PUD Master Plan (the “PUD Master Plan”), being Exhibit B to that certain The Village (at Avon) Amended and Restated PUD Guide recorded in the real property Records on or about even date herewith (the “PUD Guide”). D. As of the Effective date, there is no legal access to Planning Area B from a public right-of-way. E. In connection with the conveyance and dedication of Planning Area B to Grantee, Grantor desires to Grant, and Grantee desires to accept, an access easement from that certain 80- foot wide right-of-way known as East Beaver Creek Boulevard (as recorded in the Records at Reception No. 795007) to Planning Area B for the purpose of Grantee’s enjoyment of the Permitted Uses (as defined in Paragraph 1), including but not limited to the future construction, operation and maintenance of the Facilities (as defined in Paragraph 1) in accordance with the terms and conditions of the PUD Guide and the Development Agreement, and as set forth below. Agreement NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, Grantor and Grantee agree as follows: 1. Grant of Easement. Grantor hereby grants, bargains, sells and conveys to Grantee, a perpetual, non-exclusive, forty (40)-foot wide easement appurtenant to Planning Area B (the “Easement”) over, under, through and across that portion of Lot 1 which is legally 2 1014138.9 described and depicted in Exhibit C attached hereto and incorporated herein by this reference (the “Easement Area”) for the purpose of Grantee’s, together with its engineers, contractors, employees and similar consultants to Grantee and/or its assigns (collectively, “Permittees”), conducting of the following activities (collectively, the “Permitted Uses”): (i) vehicular and pedestrian ingress to and egress from Planning Area B; (ii) constructing, installing, using, operating, maintaining, repairing and replacing drive lanes, roadways, landscaping, sidewalks, bike paths, retaining walls and other access facilities necessary or desirable for such ingress and egress, and all fixtures and devices reasonably used or useful in the operation of such facilities (collectively, the “Roadway Facilities”); (iii) constructing, installing, using, operating, maintaining, repairing and replacing water lines, sanitary sewer lines, storm drainage facilities, electrical lines, gas lines and similar utilities and utility facilities, excluding the Communications Utilities (defined below), together with all sleeves, conduit, junction boxes, vaults, fixtures and devices reasonably used or useful in the operation of such facilities, whether publicly or privately owned (collectively, the “Utility Facilities,” and together with the Roadway Facilities, the “Facilities”); and (iv) the right to enter upon the Easement Area and such immediately abutting areas of Lot 1 thereto as may reasonably be necessary to survey and conduct geotechnical and similar physical investigations. As set forth in the PUD Guide and Section 3.7(b) of the Development Agreement, any construction of the Facilities shall be subject to the prior written approval of the “Design Review Board” (as defined in the PUD Guide). Nothing contained herein shall obligate Grantee to install, or cause to be installed, any or all of the Facilities or to otherwise provide for any such use. For purposes of this Easement Agreement, “Communications Utilities” shall mean, collectively, (a) cable television cables, wires, lines, plugs, connections, junction boxes, access boxes, vaults, switches, terminals and similar improvements; (b) telephone and communication cables, fiber-optic cables, wires, lines, plugs, connections, junction boxes, access boxes, vaults, switches, terminals, jacks and similar improvements; (c) data cables, fiber-optic cables, wires, lines, plugs, connections, junction boxes, access boxes, vaults, switches, terminals, jacks and similar improvements; and (d) utility conduit, pipe, sleeve, trough or similar enclosures for the purpose of holding, running or containing the facilities described in clauses (a) through (c). 2. Termination or Relocation of Easement Area. In connection with future development of Lot 1, including without limitation, the construction of permanent Main Street in the configuration as generally contemplated by the PUD Master Plan or such other final alignment as shall be set forth in the applicable Public Improvements Agreement(s) (as defined in the PUD Guide) between the Town and applicable constructing party(ies) (“Future Main Street”), Grantor and Grantee acknowledge that future design, engineering, construction and/or general development of Lot 1 and/or Future Main Street may be inconsistent with the rights granted hereunder in the Easement Area, and that it may be necessary or desirable that the Easement Area be, in whole or in part, adjusted, repositioned, relocated or terminated to accommodate such future development of Lot 1 and/or Future Main Street, provided that at no time shall Planning Area B be without legal access to Future Main Street or another public right- of-way. Grantor and Grantee further acknowledge and agree that, as generally contemplated by the PUD Master Plan, the configuration of Future Main Street abuts Planning Area B and could provide direct legal access from Future Main Street to Planning Area B without the necessity of any easement or grant of other right to provide for such access. Accordingly, if Future Main Street or other public right-of-way is designed and constructed in a manner that provides direct legal access from Future Main Street or other public right-of-way to Planning Area B, upon the 3 1014138.9 Town’s preliminary acceptance pursuant to the applicable Public Improvements Agreement of the street improvements for the portion of Future Main Street or other public right-of-way that provides such legal access to Planning Area B, this Agreement and the Easement granted hereunder shall automatically terminate and be extinguished and of no further force or effect without any further act of either Grantor or Grantee. Notwithstanding the foregoing, upon and after such termination at the written request of Grantor, Grantee shall deliver to Grantor an executed termination of this Agreement in recordable form, which Grantor may record against the Easement Area to provide record notice of such termination. Further, if Grantor determines, in its sole discretion, that it is necessary or desirable that the Easement Area be relocated for purposes of accommodating future development of Lot 1 and/or Future Main Street, Grantor and Grantee agree (a) Grantor shall have the right to provide for an alternative alignment and configuration or relocation of the Easement Area (the “Relocated Easement Area”) and Grantee shall not unreasonably deny, condition or delay approval with respect to the Relocated Easement Area; (b) Grantor and Grantee shall each execute an amendment to this Easement Agreement substituting the surveyed legal description for the alignment and configuration of the Relocated Easement Area as Exhibit C to this Easement Agreement; and (c) Grantor shall cause the recordation of such amendment in the Records. Recordation of such amendment in the Records shall have the legal effect of terminating the prior boundaries of the Easement Area and establishing the boundaries of the Relocated Easement Area as the new boundaries of the Easement Area for all purposes under this Easement Agreement. If, prior to the recordation of such amendment, the Design Review Board previously has approved, and Grantee previously has installed and/or constructed, Facilities within the Easement Area, Grantor shall have the obligation, at Grantor’s sole cost and expense, to relocate such Facilities to, or install and/or construct such Facilities within, the Relocated Easement Area. 3. Entry; Site Investigation; Restoration. In conducting the Permitted Uses related to design and construction of the Facilities, including but not limited to surveying, geotechnical testing, other physical inspection and similar matters, if it is necessary or desirable for Grantee and/or the Permittees to enter upon and/or cause disturbances to the surface of the abutting areas of Lot 1, Grantee shall provide not less than five (5) business days’ written notice to Grantor of any planned entrance upon and/or conduct of physical testing or inspection of the Easement Area and/or abutting areas of Lot 1. Grantor shall coordinate with Grantee regarding the scope, nature and duration of such activities, but shall not unreasonably object to or interfere with Grantee’s and/or Permittees’ conduct of such activities. To the extent such activities disturb vegetation on the surface or otherwise disturb any improvements upon or within the Easement Area or abutting areas of Lot 1, Grantee shall promptly cause revegetation and/or otherwise cause restoration of the affected area and improvements to a condition materially consistent with their condition prior to Grantee’s and/or Permittees’ conduct of such activities. Upon completion of any construction activities within the Easement Area, Grantee shall promptly cause revegetation and/or restoration of any areas of Lot 1 located outside of the Easement Area that have been disturbed by the construction activities, including without limitation, restoration or repair to damaged improvements. 4. Grantor’s Reserved Rights. Grantor reserves the right to grant additional non-exclusive easements and/or other interests within the Easement Area and Lot 1 so long as such interests do not adversely affect, increase the cost of, or otherwise interfere with Grantee’s or Permittees’ full exercise of the Permitted Uses. Grantor reserves the right to use and occupy 4 1014138.9 Lot 1 and the Easement Area for any and all purposes not inconsistent with the rights and privileges granted herein, including without limitation, snow dumping and storage. 5. Title Matters; No Warranties. This Easement Agreement is subject to all prior easements, restrictions, reservations, rights-of-way, encumbrances and similar matters of record as of the Effective Date. Grantor makes no representations or warranties regarding the status of title to Lot 1 or the Easement Area as of the Effective Date, and the grant of easements and other rights pursuant to this Easement Agreement is in the nature of a bargain and sale conveyance. 6. Indemnity. Grantee shall indemnify, protect, defend and hold Grantor (and its officers, directors, employees, consultants and representatives) harmless from and against any and all claims (including, without limitation, claims for mechanic’s liens or materialmen’s liens), causes of action, demands, obligations, losses, damages, liabilities, judgments, costs and expenses (including, without limitation, reasonable attorneys’ fees) (collectively, “Claims”) in connection with or arising out of Grantee’s exercise of its rights hereunder and use and enjoyment of the Easement Area; provided, however, such indemnity shall exclude any Claims caused by negligence or willful misconduct of Grantor or its officers, directors, employees and representatives. 7. Insurance. At all times while this Easement Agreement is in effect, Grantee shall obtain, keep in force and maintain liability insurance protecting against bodily injury and property damage claims relating to Grantee’s exercise of its rights hereunder and use and enjoyment of the Easement Area, which coverage shall have a minimum limit of $1,000,000 each occurrence; provided, however, that Grantor shall have full benefit of any greater limits maintained by Grantee. Such insurance policy shall name Grantor as an additional insured, shall apply on a primary and non-contributory basis and shall be endorsed with a clause providing that the insurer waives all rights of subrogation which such insurer might have against Grantor. 8. Covenants. Each and every benefit and burden of this Easement Agreement shall inure to and be binding upon Grantor, Grantee and their respective successors and assigns. The burdens and benefits hereof shall run with title to the Easement Area and Planning Area B. Any person or entity that acquires any interest in the Easement Area, and any person or entity that acquires any interest in Planning Area B, shall be bound by the burdens and entitled to the benefits of this Easement Agreement. The burdens and benefits of this Easement Agreement constitute covenants that run with and encumber title to the Easement Area and Planning Area B. 9. Severability. Any provision of this Easement Agreement which is declared by a court of competent jurisdiction to be illegal, invalid, prohibited or unenforceable shall be ineffective only to the extent of such illegality, invalidity, prohibition or unenforceability, without invalidating or otherwise affecting the remaining provisions of this Easement Agreement, each of which shall continue in full force and effect, unless modified by mutual consent of the parties, for so long as their enforcement would not be inequitable to the party against whom they are being enforced under the facts and circumstance then pertaining. 10. Captions. The titles, headings and captions used in this Easement Agreement are intended solely for convenience of reference and shall not be considered in construing any of the provisions of this Easement Agreement. 5 1014138.9 11. Modification. This Easement Agreement may not be modified, amended or terminated, except by an agreement in writing executed by Grantor and Grantee. 12. Governing Law. The terms and provisions of this Easement Agreement shall be construed and enforced in accordance with the laws of the State of Colorado. 13. Counterparts. This Easement Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. [Signature pages follow this page.] 6 1014138.9 IN WITNESS WHEREOF, Grantor and Grantee have executed this Easement Agreement as of the Effective Date. GRANTEE: THE TOWN OF AVON, a home rule municipal corporation of the State of Colorado By: Name: Rich Carroll Title: Mayor Approved as to legal form by: Eric J. Heil, Esq., Town Attorney GRANTOR: TRAER CREEK-RP LLC, a Colorado limited liability company By: Traer Creek LLC, a Colorado limited liability company, its Manager By: Name: Marcus Lindholm Title: Manager 7 1014138.9 STATE OF COLORADO ) ) ss. COUNTY OF _______________ ) The foregoing instrument was acknowledged before me this _____ day of _______________, 2013, by ________________, as _________ of the TOWN OF AVON, a home rule municipal corporation of the State of Colorado. Witness my hand and official seal. Notary Public My commission expires: ______________________________. STATE OF COLORADO ) ) ss. COUNTY OF _______________ ) The foregoing instrument was acknowledged before me this _________ day of ______________________, 2013, by Marcus Lindholm, as Manager of Traer Creek LLC, a Colorado limited liability company, as Manager of TRAER CREEK-RP LLC, a Colorado limited liability company. Witness my hand and official seal. Notary Public My commission expires: ______________________________. A-1 1014138.9 EXHIBIT A LEGAL DESCRIPTION OF LOT 1 Lot 1, Second Amended Final Plat, Amended Final Plat, The Village (at Avon) Filing 1, A Resubdivision of Lot 1, County of Eagle, State of Colorado. B-1 1014138.9 EXHIBIT B LEGAL DESCRIPTION OF PLANNING AREA B Lot 2, Second Amended Final Plat, Amended Final Plat, The Village (at Avon) Filing 1, A Resubdivision of Lot 1, County of Eagle, State of Colorado. C-1 1014138.9 EXHIBIT C LEGAL DESCRIPTION AND DEPICTION OF EASEMENT AREA TOWN COUNCIL REPORT To: Honorable Mayor Rich Carroll and Avon Town Council From: Patty McKenny, Assistant Town Manager Date: June 6, 2013 Agenda Topic: Letter of Agreement with Vail Leadership Institute for Funding of the Entrepreneurs BaseCamp Program The Vail Leadership Institute (“VLI”) submitted a request to the Town of Avon during the 2013 budget cycle for a $7,500 investment in their new educational initiative, the Entrepreneurs Basecamp. The attached Executive Summary describes the new BaseCamp programming which is essentially a business accelerator program that blends leadership development with business planning. Early discussions with this group included their interest in locating in Avon at the Seasons building. The Town Council approved this funding investment as part of the 2013 Economic Development Program Budget, and as a means of helping the Vail Leadership Institute with its broader mission of trying to create an environment for job growth and building a more vibrant economy and community. The structure of the organization and the funding supporting the BaseCamp is an entity called the “Peak Performers Fund L3C”, which was created as a low-profit limited liability company under the laws of the State of Wyoming. Investors, foundations and governmental entities who want to support the effort join as a member and then contribute seed funding through this arrangement. The structure provides the potential for a “return on the investment” within an established period of time. At the time of budget approval, Council envisioned executing an operating agreement under these premises, to participate in the Peak Performers Fund L3c. In reviewing the draft Operating Agreement, Town staff determined that a one-time funding contribution might be a more efficient and productive means of supporting this initiative and reduce on-going administrative costs to the Town. In conversation with both John Horan-Kates & Ross Iverson of the VLI about presenting this alternative to the Town Council, and they are supportive of this approach. Recommendation: Town staff recommends approval, by motion and vote, of the “Letter of Agreement” included in this packet. This Agreement outlines the arrangement for the Town to make a one-time contribution to the Vail Leadership Institute as seed money for the Entrepreneurs BaseCamp. The final decision would not have any budget ramifications. Attachments: A: Letter of Agreement B: Executive Summary for Entrepreneurs BaseCamp Program C: Request for Funding Letter dated 9/27/12 Post Office Box 975 1 Lake Street Avon, CO 81620 970-748-4000 970-949-9139 Fax 970-845-7708 TTY Letter of Agreement This Letter of Agreement is entered into by the Vail Leadership Institute, whose business address is PO Box 7210, Avon, Colorado, 81620 and the Town of Avon, Colorado, a Home Rule Municipality of the State of Colorado, whose address is PO Box 975, Avon, Colorado, 81620. The Town of Avon has received a solicitation to support the Vail Leadership Institute’s new Entrepreneurs BaseCamp, a business accelerator program that blends leadership development with a business planning program. The new BaseCamp Program has been developed in an effort to generate jobs and help build a more vibrant economy in Eagle County. The Town of Avon agrees to support this economic development effort with a $7,500 contribution to the Vail Leadership Institutes’ project’s capital investment fund that will support the opening of the facility to be located at the Seasons in Avon at 137 W. Benchmark Road, Avon, Colorado, 81620. The Town of Avon understands that a capital campaign effort is underway and final plans for relocation will be made in the near future. The Town will submit payment upon receipt of Vail Leadership Institutes’ written commitment to lease space from the Seasons for its programming operations. If the capital funding is not achieved and the relocation does not occur, this Letter of Agreement shall become null and void. This Letter of Agreement is executed and made effective upon approval of the Avon Town Council on the _____________ day of ____________, 2013. Town of Avon: Vail Leadership Institute: ___________________________________ ___________________________________ Rich Carroll, Mayor John Horan-Kates, President ___________________________ ___________________________ Date Date TOWN COUNCIL REPORT To: Honorable Mayor Rich Carroll and Avon Town Council From: Jared Barnes, Planner II Date: June 11, 2013 Agenda Topic: Second Reading of Ordinance 13-06, Approving a Final PUD Amendment for Lot 1, Brookside Park PUD, Eaglewood Subdivision Introduction Rick Pylman of Pylman & Associates, the Applicant, representing Riverview Park Associates, the Owner, is requesting a Planned Unit Development (PUD) amendment to modify the allowed uses to include up to twenty-four (24) residential dwelling units (The “Application”) on Lot 1, Brookside Park PUD, Eaglewood Subdivision (the Property). The application is being processed as a Preliminary PUD amendment. Attached to this memo are a Vicinity Map (Attachment A), Brookside Park PUD Amendment Application (Attachment B), Town Council Finding of Fact for Preliminary PUD Amendment (Attachment C), Public Input (Attachment D), PZC “Finding of Fact, Record of Decision, and Recommendation” (Attachment E), Financial Analysis Memo from Scott Wright, Finance Director (Attachment F), and Draft Ordinance 13-06 (Attachment G). Update At their May 28th, 2013 meeting the Town Council approved the first reading of Ordinance 13-06. The discussion during that meeting centered on the modifications made to the application between the approval of the preliminary PUD application and the final PUD application. Application Process (§7.16.020, AMC) PUD Process The Brookside Park PUD amendment is being processed as a Preliminary PUD Amendment and subsequent Final PUD Amendment. During the fall of 2012, the Town processed a Preliminary PUD Amendment for the subject property. The Preliminary PUD Amendment included two (2) public hearings before the PZC and three (3) public hearings before the Town Council. The Application is requesting a Final PUD Amendment approval. Agency Referrals Pursuant to AMC §7.16.020(c)(2), Staff referred the Application to Eagle County Planning Department, Eagle River Water and Sanitation District, and the Eagle River Fire Protection District for Comments. Comments were received from the Eagle River Water and Sanitation District and Eagle River Fire Protection District and are included as Attachment D. Public Notification In order to comply with the Public Hearing and pertinent noticing requirements, a mailed notice was provided to all property owners within 300’ of the property. In addition, a notice was published in the Vail Daily newspaper on Friday, May 17, 2013. Lot 1, Brookside Park PUD – Brookside Park Final PUD Amendment Page 2 Public Hearings The PZC held a public hearing at their April 16th, 2013 meeting. The PZC review and recommendation is outlined in this report. The Council will make the final decision on this Application after two (2) public hearings. Background The Brookside Park PUD was approved via Ordinance 96-8. The Brookside Park PUD allowed the development of forty-six (46) dwelling units and 30,000 square feet (sq. ft.) of commercial space. The PUD development plan and accompanying plat subdivided the parcel into three (3) lots. Lot 1 consists of the Brookside Center office building, which contained the entirety of the allowed commercial square footage, as well as the pool and hot tub amenities for the entire PUD. Lot 2 is comprised of the Lodge at Brookside Park, which was to be developed with thirty-two (32) multi-family dwelling units. Lot 3 contained the Townhomes at Brookside Park and was developed with fourteen (14) townhome dwelling units. A regional trail and associated easement along the Eagle River was provided as a public benefit with this approval. The Brookside Park PUD was first amended via Ordinance 97-3 which increased the total allowed dwelling units from forty-six (46) to fifty-four (54) and the maximum height for Lot 2 from sixty (60) feet to sixty- three (63) feet. The additional eight (8) units were added to Lot 2 increasing it to forty (40) condominium units. The amendment included a public benefit of a four (4) foot wide sidewalk along the southern property line from the site entrance on Highway 6 to the eastern property line and then along CDOT right- of-way to W. Beaver Creek Blvd, as well as three (3) deed-restricted housing units. The Brookside Park PUD was amended a second time via Ordinance 97-13. This amendment included “restaurants” as an allowed use for Lot 1. The Brookside Park PUD was amended a third time via Ordinance 10-04. The amendment only pertained to Lots 2 and 3 and modified the PUD to include “short term rentals” as a use by right. The attached application document (Attachment B) includes the original PUD including the two (2) 1997 amendments (Ordinances 97-3 and 97-13) as well as the proposed PUD amendment. Proposed PUD Amendment The Application proposes to amend the PUD to allow future flexibility to convert a portion or all of the Brookside Center office building to residential dwelling units. The application proposes a maximum of twenty-four (24) dwelling units in a loft style consisting of two (2) and three (3) bedroom configurations. The amended PUD Guide (Attachment B) includes the above mentioned modifications as well as other minor amendments, as discussed below. Within the first few paragraphs of the proposed PUD, the applicant has modified language to: (1) correct the legal description; (2) update the total allowed dwelling units to include the requested twenty-four (24) additional units; and, (3) include residential in the intention of the PUD. The first substantive amendment is the inclusion of Short Term Rentals as an allowable use by right. This inclusion formalizes and expands upon Ordinance 10-04, as it only applied to Lot 2 and 3. The uses by right are limited to Multi-Family dwelling units and Short Term Rentals, while timeshares and other forms of interval ownership are not allowed. Lot 1, Brookside Park PUD – Brookside Park Final PUD Amendment Page 3 The next amendment is the inclusion of Section I. This section provides a maximum density allocation per lot for the Brookside PUD. As exhibited in this section, Lot 1 is allocated twenty-four (24) dwelling units, Lot 2 is allocated forty (40) dwelling units, and Lot 3 is allocated fourteen (14) dwelling units. To better link this with the mixed use development option, Section I(1) includes a caveat that the maximum density is subject to Section J. The final amendment is the addition of Section J. This section provides parameters for how the existing Brookside Center building may convert to partial residential or completely residential. As stated in the proposed PUD guide, Brookside Center would be limited to the following options if this application is approved: 1. Up to 30,00 sq. ft. of useable commercial space; 2. A residential building of up to 24 dwelling units; or, 3. Commercial on the first floor and residential on the second floor. Preliminary PUD Amendment As discussed previously in this report, the process for the Application is two (2) steps: Preliminary PUD Amendment; and, Final PUD Amendment. The Application is predicated on the previous approved Preliminary PUD Amendment, which was approved by the Town Council pursuant to their Finding of Fact (Attachment C). This approval allowed the Applicant to progress to the Final PUD Amendment process and submit the Application. The Town Council made findings related to the review criteria and public benefit as presented in Attachment C and also included conditions of approval as stated below: (a) The proposed PUD Guide be amended to limit the number of residential units allowed to sixteen (16) only in the instance the second story converts to residential uses, while the first floor remains commercial. (b) The proposed PUD Guide section H be amended to clarify the requested maximum density of seventy-eight (78) dwelling units. (c) A majority of the parking row adjacent to the southerly property line be the first section of parking removed and landscaped with a full conversion from Commercial office to Residential uses. The Application substantially complies with the Preliminary PUD Amendment application. The only modifications from that application were to addresses the conditions of approval from the Town Council and none of which materially alter the application. PZC Review The PZC held a public hearing on April 16th, 2013 regarding the Application. They discussed the proposed Application with respect to compliance with the Preliminary PUD, the public benefit criteria, and the appropriateness of commercial uses in the Town Core. Ultimately the PZC approved a “Findings of Fact, Record of Decision, and Recommendation” (Attachment E) with six (6) findings and one (1) condition. Staff Analysis Staff supports the above mentioned amendments as they provide greater clarity to the allowed uses throughout the PUD as well as provide strict density allocations to each Lot. The inclusion of Section J also assists in clarifying how Lot 1 would transition to include residential uses. Staff is of the opinion that the Lot 1, Brookside Park PUD – Brookside Park Final PUD Amendment Page 4 amendment from commercial uses to residential uses will result in a reduced impact on the neighboring properties as well as the Town as a whole for the reasons discussed below in this report. First, the proposed modifications will ultimately result in a reduction in required parking due to the less restrictive requirements of residential land uses. The chart below outlines the parking provided as of today, while also depicting the required parking for the mixed-use building option and the full residential building option. Full Commercial Building 1st Floor Commercial/ 2nd Floor Residential Full Residential Building Parking Required • 120 (@ 4 per 1,000 SF); • 90 (@ 3 per 1,000 SF) • Commercial: 60 (@ 4 per 1,000 SF); • Residential: 37 (@ 2 per unit + 5 guest spaces) • Total: 97 spaces • 54 (@ 2 per unit + 6 guest spaces) Parking Proposed 122 spaces (35 garage + 87 surface spaces) • 97 spaces (35 garage remaining) • 27 surface spaces converted to a landscaped area • 54 spaces (35 garage remaining) • 68 surface spaces converted to a landscaped area. As seen in the above table, the applicant is indicating that when a conversion occurs some of the existing surface spaces will be removed and replaced with a landscaped area or pocket park. The Application has been revised from the Preliminary PUD review to indicate that the row of parking adjacent to Highway 6 will be either mostly removed or removed in its entirety depending on the conversion scenario and as exhibited in Attachment B. In either instance, the current provided parking is sufficient to allow a conversion of uses to occur on the site and reduce the overall need for parking spaces. Second, as exhibited by Attachment B, the conversion from commercial office to residential uses will reduce the traffic demand on the property. An analysis performed by Gary Brooks, Alpine Engineering, states that a reduction in overall traffic volume will occur from one hundred and one (101) to thirty-five (35) vehicle trips per day. He also quantifies the reduction in average vehicle trips per day for AM and PM Peak Hours. In summary, the impact on traffic is less for residential uses than for commercial uses. Third, a conversion from commercial uses to residential uses will result in a reduced need for attainable housing. Section 7.20.100, Employee Housing Mitigation, sets forth the formulas for calculating attainable housing requirements based on types of development, such as commercial, lodging/hotels, and residential/property management. Although this section of code does not apply to a PUD amendment, it provides a comparison on the intensity of uses with regard to housing needs and employee generations. Lot 1, Brookside Park PUD – Brookside Park Final PUD Amendment Page 5 Full Commercial Building 1st Floor Commercial/ 2nd Floor Residential Full Residential Building Brookside Park PUD Size of Development 30,000 SF 15,000 SF and 16 Units 24 units 78 units Jobs Generated (30000*2.8)/1000 = 84 jobs (15000*2.8)/1000 = 42 (16*0.4) = 6.4 Total of 48.4 Jobs (24*0.4) = 9.6 Jobs (78*0.4) = 31.2 Jobs Employees Generated (84/1.2) = 70 Employees (48.4/1.2) = 40.33 Employees (9.6/1.2) = 8 Employees (31.2/1.2) = 26 Employees Households Generated (70/1.8) = 38.88 Households (40.33/1.8) = 22.41 Households (8/1.8) = 4.44 Households (26/1.8) = 14.44 Households Units Required (38.88*0.1) = 3.88 Units (22.41*0.1) = 2.24 Units (4.44*0.1) = 0.44 Units (14.44*0.1) = 1.44 Units As is exhibited in the table above, a reduction in commercial square footage has a direct result in a reduced need for attainable housing. The existing commercial building would create the need for four (4) attainable housing units, while the partial conversion would only create the need for two (2) units and the full residential conversion would create the need for zero (0) units. Furthermore, if the same formulas were applied to the entire Brookside Park PUD the total seventy-eight (78) units would require only a single attainable housing unit. As stated previously in this report, the applicant has already provided three (3) deed restricted housing units, which exceeds the amount required by the formula in the Municipal Code. The proposed modification will result in a need for additional water rights. Currently, the Brookside Center building is allocated ten and three-tenths (10.3) single family equivalents (SFE). If the entire building converts to twenty-four (24) dwelling units as proposed, the building will need twenty-four (24) SFEs. If the project contains both commercial and residential uses, the SFE requirement will be more complicated to calculate, but will likely result in a need for additional SFEs in an amount less than the full conversion option. The applicant will be required to provide proof of sufficient water rights, through either dedication or payment-in-lieu from the Upper Eagle Regional Water Authority (UERWA) prior to any issuance of a building permit for conversion to residential uses. Staff has reviewed the public comment received from the Eagle River Fire Protection District (ERFPD). The Applicant has acknowledged that a review of the fire alarms and fire sprinklers will be addressed during a building permit process. Staff has determined that the permissible uses pursuant to the PUD Guide would not allow an industrial application; therefore the second concern is inapplicable. Staff has also performed a financial analysis (Attachment F). In summary, the conversion from Commercial uses to residential uses will result in a decrease in property taxes of approximately one-third (1/3). The conversion will provide an initial increase in Real Estate Transfer Tax, which will have an on-going component to it as properties are resold. The inclusion of short-term rentals, as an allowable use, will increase the sales and accommodation taxes the Town receives, but there is no metric to quantify that amount. Lot 1, Brookside Park PUD – Brookside Park Final PUD Amendment Page 6 PUD Review Criteria Pursuant to §7.16.060(e)(4), Review Criteria, AMC, the PZC shall consider a number of review criteria when evaluating the Application. The following criteria must be considered when forming the basis of a recommendation: (i) The PUD addresses a unique situation, confers a substantial benefit to the Town, and/or incorporates creative site design such that it achieves the purposes of this Development Code and represents an improvement in quality over what could have been accomplished through strict application of the otherwise applicable district or development standards. Such improvements in quality may include, but are not limited to: improvements in open space provision and access; environmental protection; tree/vegetation preservation; efficient provision of streets, roads, and other utilities and services; or increased choice of living and housing environments. Staff Response: The stated purposes of §7.04, Development Code, AMC, and §7.16.060, PUD, AMC, include statements regarding the implementation of the Comprehensive Plan; regulating intensity of use; avoiding increased demands on public services and facilities; and provide for compatibility with the surrounding area, among other statements. PUD zoning by nature of its composition inherently affords opportunities to provide creative site design and planning. The proposed amendment provides flexibility going forward as it allows for both residential and commercial uses, but provides a set amount of commercial square footage and maximum number of residential units. The amendment to this zone district brings the standards more in line with mixed-use districts that allow both commercial and residential uses. During the Preliminary PUD review the Town Council determined through their recommendation (Attachment C) that the Application confers a substantial benefit to the Town: by lessening the impact on the need for attainable housing; the reduction is surface parking and its replacement with landscaped areas; and that the previously provided public benefits: three (3) deed restricted units; a regional trail and associated easements; and, a sidewalk along the southern property line, were sufficient for the PUD. (ii) The PUD rezoning will promote the public health, safety, and general welfare; Staff Response: The Application does not negatively affect the public health, safety and welfare. The inclusion of residential uses modifies the Brookside Center building to become more compatible with the immediately adjacent multi-family residential uses. (iii) The PUD rezoning is consistent with the Avon Comprehensive Plan, the purposes of this Development Code, and the eligibility criteria outlined in §7.16.060(b); Staff Response: The proposed PUD amendment appears to meet all of the eligibility criteria as outlined in §7.16.060(b). §7.16.060(b)(5), Public Benefit, states: “A recognizable and material benefit will be realized by both the future residents and the Town as a whole through the establishment of a PUD, where such benefit would otherwise be infeasible or unlikely.” As was previously discussed in Review Criteria #1, the Town Council determined during the Preliminary PUD that substantial public benefits were already provided. Furthermore, the determination of the PZC and Town Council was the Application reduced the impacts on the property. The Avon Comprehensive Plan includes this property within District 20: River Residential District. It is a low priority district and some of the planning principals include: Lot 1, Brookside Park PUD – Brookside Park Final PUD Amendment Page 7 • Encourage redevelopment to take into consideration the objectives of the Eagle River Watershed Management Plan including river setbacks and best practices for development in proximity of the river; • Encourage the further connection and enhancement of the ECO Trail; • Plant indigenous trees and shrubs to screen existing large residential buildings along US Highway 6 and provide landforms and landscaping between residences and US Highway 6; • Enhance the pedestrian experience by adding sidewalks along all roads on the valley floor. The current development and PUD takes into consideration these planning principals. The previous PUD establishment and amendments provided a development plan that included a regional trail along the Eagle River, a sidewalk along the southern property line, and a development configuration that responded to the river and adjacent properties. The Future Land Use map included in the Comprehensive Plan identifies Lot 1 as “Neighborhood Commercial”. The intent of this district is to allow for a mix of residential, small-scale neighborhood serving commercial and civic uses. It specifically states that townhouse and multi-family units are allowed within this district. The dimensional standards do not specify a maximum density or units per building, but the subsection discussing water rights dedication identifies seven and one-half (7.5) dwelling units (DU) per acre. The PUD amendment proposes eleven and four-tenths (11.4) DU/acre, which exceeds the maximum density for the NC district. The zoning code allows maximum densities as follows: Residential Low Density (RLD) – seven and one-half (7.5) DU/acre; Residential Medium Density (RMD) – fifteen (15) DU/acre; Residential High Density (RHD) – twenty (20) DU/acre; Residential High Density Commercial (RHDC) – twenty (20) DU/acre. As seen the proposed density falls within the RMD district and is less than the previous zoning on the property, RHDC. Furthermore, it is compatible with the surrounding properties’ density, as follows: Sunridge Phase II – approximately twenty (20) DU/acre; Lodge at Brookside – thirty-three (33) DU/acre; and, Townhomes at Brookside – eleven (11) DU/acre. Following is a list of Goals and Policies from the Comprehensive Plan to consider when reviewing in light of this amendment request: Goal C1. Provide a balance of land uses that offers a range of housing options, diverse commercial and employment opportunities, inviting guests accommodations, and high quality civic and recreational facilities, working in concert to strengthen Avon’s identity as both a year-round residential community and as a commercial, tourism and economic center. Policy C.2.1. Promote a wide range of residential uses including single family, duplex, multifamily, and vertically integrated residential units (housing on the upper floors of mixed-use buildings) throughout the town. Policy D.2.3. Improve the streetscape along US Highway 6 to strengthen Avon’s overall community image and to stimulate future development and redevelopment by providing a more attractive and cohesive street edge. Policy E.1.2. Permit home occupations and live/work opportunities where there is minimal negative impact to the neighborhood to reduce traffic/commuting impacts in the community and provide affordable options for local entrepreneurs. Staff Response: The proposed PUD amendment will increase the opportunities for housing options by allowing an additional twenty-four (24) multi-family dwelling units as well as guest accommodations through the inclusion of Short Term Rentals as an allowed use. The lack of Lot 1, Brookside Park PUD – Brookside Park Final PUD Amendment Page 8 inclusion of Timeshare uses, will ensure that these units are wholly owned and could increase their potential for year-round residents. The allowance for conversion of the second story to residential uses, while maintaining the commercial uses on the first floor, will create the vertically integrated residential units discussed in Policy C.2.1. As stated previously in this report, the conversion from commercial uses to residential uses will result in a reduction in required parking and the Application proposed to reduce the amount of surface parking and return some of the area to a landscaped state, specifically along US Highway 6. Although the PUD amendment doesn’t commit to a specific live/work design, the allowance for the second story residential units with the ground level commercial office provides an opportunity for live/work scenarios. (iv) Facilities and services (including roads and transportation, water, gas, electric, police and fire protection, and sewage and waste disposal, as applicable) will be available to serve the subject property while maintaining adequate levels of service to existing development; Staff Response: As proposed, the PUD amendment has no effect on most services. As mentioned previously in this report, Staff believes additional water rights will be required to adequately serve the Property when a conversion to residential units begins. (v) Compared to the underlying zoning, the PUD rezoning is not likely to result in significant adverse impacts upon the natural environment, including air, water, noise, storm water management, wildlife, and vegetation, or such impacts will be substantially mitigated; Staff Response: The property was rezoned in 1996 from Residential High Density Commercial (RHDC) to PUD. Ordinance 96-8 clearly states that the RHDC zoning and any of its associated development rights were eliminated with this rezoning, therefore no underlying zoning exists. When compared to the existing PUD, the proposed PUD amendment will not result in any adverse impacts upon the natural environment as setbacks from the Eagle River have been established and are preserved. In addition, the reduction of asphalt and increase of landscaped area should reduce the demand on the storm water management that exists on the property. (vi) Compared to the underlying zoning, the PUD rezoning is not likely to result in significant adverse impacts upon other property in the vicinity of the subject tract; and Staff Response: The approval of the PUD amendment would reduce any adverse impacts that commercial office has on adjacent residential properties. In addition, the increase in residential uses is consistent with adjacent properties including: Lodge at Brookside Park, Townhomes at Brookside Park, and Sunridge Condominiums. (vii) Future uses on the subject tract will be compatible in scale with uses or potential future uses on other properties in the vicinity of the subject tract. Staff Response: As proposed, the Application will either increase the compatibility with uses or potential future uses on other properties in the vicinity, or will result in no change to uses as currently exist. Lot 1, Brookside Park PUD – Brookside Park Final PUD Amendment Page 9 Council Action: If the Council is satisfied with the PZC recommendation and Application, they should approve the Second Reading of Ordinance No: 13-06 after conducting a public hearing. Attachments: A: Vicinity Map B: Application Materials C: Town Council approved “Findings of Fact” D: Public Comment E: PZC “Findings of Fact, Record of Decision, and Recommendation” F: Financial Analysis Memo from Scott Wright, Finance Director G: Draft Ordinance 13-06 At t a c h m e n t A Atttachment B Atttachment B Atttachment B Atttachment B Atttachment B Atttachment B Atttachment B Atttachment B Atttachment B Atttachment B Atttachment B Atttachment B Atttachment B Atttachment B Atttachment B Atttachment B Atttachment B Atttachment B Brookside Park PUD Guide as proposed for Final PUD revision June 2012January 2013 (revisions indicated in a strikethrough/underline format) The following Planned Unit Development Guide will serve as the governing regulations which will control development on Lot 1, Eaglewood Subdivision, Brookside Park, A Resubdivision of Lot 1, Eaglewood Subdivision, Town of Avon, Eagle County, Colorado, known as the Brookside Park PUD. This PUD Guide is intended to become a part of the Brookside Park Planned Unit Development and serve as the “Zone District Regulations” for the PUD as required by Section 17.20.110.1 of the Municipal Code of the Town of Avon. The Brookside Park PUD authorizes a total 54 78 dwelling units and 30,000 useable square feet of commercial space on 4.7 acres of land within the Town of Avon, Eagle County, Colorado. Development within the PUD is administered by the Town of Avon through the provisions of this PUD Guide. Building construction within the PUD is governed by the applicable Town of Avon ordinances, rules and regulations. Intention The intention of the Brookside Park PUD is to provide for an architecturally integrated residential or mixed use residential and commercial campus with appropriate uses, development standards and regulatory controls. B. Definitions All terms used in this PUD Guide shall be as defined in Chapter 7, Development Code of the Town of Avon Municipal Code unless otherwise defined in this section of the PUD Guide. C. Allowable Uses by Right – Residential 1. Multiple Family dwelling units including townhomes, condominiums and apartments. 2. Short term rentals D. Allowable Uses by Right – Commercial Building A contains 30,000 useable square feet that is designated as commercial space. The following uses are allowed within the areas designated as commercial on the Building A floor plans that are incorporated within this PUD Development Plan. 1. Professional Offices including Design Studios 2. Medical Outpatient Offices 3. Retail/Wholesale Furniture Stores and Showrooms 4. Retail/Wholesale Home Furnishing Stores and Showrooms 5. Retail/Wholesale Architectural Products Stores and Showrooms Atttachment B 6. Retail/Wholesale Household Appliance Product Stores and Showrooms 7. Antique Stores and Showrooms 8. Art Galleries/Frame Shops 9. Restaurants E. Allowable Uses By Right – General 1. Recreation Amenities including swimming pools and hot tubs F. Special Review Uses 1. Home Occupations 2. Retail Stores not specifically listed as a Use by Right. 3. Church 4. On-Site Rental Office G. Accessory Uses 1. Interior and Exterior uses customarily accessory to residential and Commercial uses shall be allowed. H. Development Standards Maximum Density: 54 78 dwelling units Maximum Useable Commercial Area: 30,000 Square Feet Building Height: 60 feet Minimum Building Setbacks: Front: 25 Feet Side: 7.5 Feet Rear: 10 Feet Eagle River: 30 Feet as defined in Section 17.50.110 of the Town of Avon Municipal Code. Building setbacks shall apply to the PUD perimeter property line only. Internal lines created for phasing delineation of for individual unit ownership shall not apply. Maximum Site Coverage: 50% Minimum Landscape Area: 20% Parking: Residential: 2 spaces per dwelling unit 10 guest spaces Commercial: 4.3 spaces per 1,000 square feet of useable floor area I. Density Allocation Lot 1, Brookside Center 24 dwelling units (subject to Section J) Lot 2 The Lodge at Brookside Park 40 dwelling units Lot 3 The Townhomes at Brookside Park 14 dwelling units Formatted: List Paragraph, Numbered + Level: 1 + Numbering Style: I, II, III, … + Start at: 1 + Alignment: Left + Aligned at: 0.5" + Indent at: 1" Formatted: Bullets and Numbering Atttachment B J. Brookside Center The Brookside Center building may consist of up to 30,000 square feet of useable commercial space or as a residential building of up to 24 dwelling units, or may be a mixed use option of the allowed commercial uses on the first floor and residential on the second floor. In the mixed use option described in the preceding paragraph the maximum density shall be no more than 16 units located on the second floor of the building. The units shall be restricted to a maximum of 8 studio units and 8 one-bedroom units, or in a configuration that creates a residential parking demand of no more than 29 parking spaces. Formatted: List Paragraph, Indent: Left: 1", First line: 0" Formatted: Indent: Left: 1" Formatted: Font: Not Italic Atttachment B FINDINGS OF FACT AND RECOMMENDATIONS BROOKSIDE PARK PRELIMINARY PLANNED UNIT DEVELOPMENT AMENDMENT Page 1 of 3 AVON TOWN COUNCIL FINDINGS OF FACT CONCERNING THE PRELIMINARY PLANNED UNIT DEVELOPMENT AMENDMENT APPLICATION FOR THE BROOKSIDE PARK PUD The following findings of fact and recommendations are made in accordance with Avon Municipal Code Section 7.16.060(e)(3), Reviewing Authority: 1. Application Submitted. A preliminary PUD Application (the “Application”), consisting of an Amended Planned Unit Development Guide for Brookside Park (“Amended PUD Guide”), was submitted to the Community Development Department of the Town of Avon (the “Town”) on June 20, 2012 by Rick Pylman of Pylman & Associates, representing the owners of the Brookside Center building (the “Applicant”). 2. Determination of Completeness. Pursuant to Avon Municipal Code (“AMC”) §7.16.020(c)(1), a determination of completeness was submitted to the Applicant by phone from Jared Barnes of the Community Development Department on June 29, 2012, within ten (10) days of the application submittal. 3. Referral to other Agencies. The Amended PUD Guide was referred electronically via the Town’s website, www.avon.org/referral, to other agencies for review and comment on July 17, 2012 pursuant to AMC §7.16.020(c)(2). The following agency was notified for referral: Town of Avon Engineering Department. 4. Notice of Public Hearing. On July 27, 2012, pursuant to §7.16.020(d), a notice of public hearing was published in The Vail Daily for the August 7, 2012 Planning & Zoning Commission meeting to review the Brookside Park Preliminary Planned Unit Development application. In addition, a mailed notice was sent to all property owners within 300 feet of the property boundaries. 5. Staff Report to PZC. Jared Barnes submitted a Staff Report to the PZC dated August 3, 2012. 6. Preliminary Public Hearing before the Planning and Zoning Commission. On August 7, 2012 the PZC held a public hearing on the Application. 7. Continued Preliminary Public Hearing before the Planning and Zoning Commission. On August 21, 2012 the PZC held a continued public hearing on the Application. The PZC took action to provide the recommendation, findings, and conditions to the Town Council. Attachment C FINDINGS OF FACT AND RECOMMENDATIONS BROOKSIDE PARK PRELIMINARY PLANNED UNIT DEVELOPMENT AMENDMENT Page 2 of 3 8. Notice of Public Hearing. On August 31, 2012, pursuant to §7.16.020(d), a notice of public hearing was published in The Vail Daily for the September 11, 2012 Town Council meeting to review the Brookside Park Preliminary Planned Unit Development application. In addition, a mailed notice was sent to all property owners within 300 feet of the property boundaries. 9. Staff Report to Town Council. Jared Barnes submitted a Staff Report to the Town Council dated September 11, 2012. 10. Preliminary Public Hearing with Town Council. On September 11, 2012 the Avon Town Council held a public hearing on the Application and reviewed the Application. 11. Continued Preliminary Public Hearing before the Town Council. On September 25, 2012 the Avon Town Council held a continued public hearing on the Application. The Avon Town Council took action to provide the recommendation, findings, and conditions for the Application. 12. Review Criteria. The Avon Town Council has considered the Review Criteria for a Preliminary PUD application set forth in Avon Municipal Code §7.16.060(e)(4). 13. Findings of Fact related to the Application. The Town Council has considered the Staff Report from Jared Barnes dated September 25, 2012, public comments, applicant testimony, and makes the following Findings of Fact related to the Preliminary PUD Application: Specific Findings: (1) The PUD is established and the previously provided public benefits, as well as the proposed public benefits, satisfy the requirement for public benefits as outlined in §7.16.060(b)(5); (2) The PUD amendment meets the review criteria for a Preliminary PUD as outlined in §7.16.060(e)(4) for the reasons stated in Jared Barnes’ memorandum dated October 5, 2012. (3) The reduction in surface parking and addition of a pocket park and/or landscaping is a public benefit for the residents of the Brookside Park PUD; (4) The reduced impact on the need for attainable housing is a public benefit for the Town of Avon; and, (5) The Town Council finds that the PUD Amendment will not create additional impacts if the conditions below are satisfied, that the original public benefits were sufficient for the PUD as originally approved, and that therefore, the Town Council finds that there is no need to require the applicant to provide additional public benefits. Attachment C FINDINGS OF FACT AND RECOMMENDATIONS BROOKSIDE PARK PRELIMINARY PLANNED UNIT DEVELOPMENT AMENDMENT Page 3 of 3 Conditions: (a) The proposed PUD Guide be amended to limit the number of residential units allowed to sixteen (16) only in the instance the second story converts to residential uses, while the first floor remains commercial. (b) The proposed PUD Guide section H be amended to clarify the requested maximum density of seventy-eight (78) dwelling units. (c) A majority of the parking row adjacent to the southerly property line be the first section of parking removed and landscaped with a full conversion from Commercial office to Residential uses. Attachment C 1 Jared Barnes From:Gail Mcfarland <gmcfarland@eagleriverfire.org> Sent:Wednesday, March 13, 2013 2:40 PM To:Jared Barnes Cc:karl bauer Subject:FW: Brookside Park PUD Referral Attachments:L1 Brookside Park PUD Referral 021513.pdf Good Afternoon Jared, Here are our comments for the project at Brookside Park PUD: 1. With the extent of the remodel proposed, both the fire alarm and fire sprinkler systems will need to be evaluated and brought up to current codes. 2. If live/work units are approved, then the work portion of the units should be limited to office or professional type services only. No industrial applications or hazardous materials storage should be allowed. Please contact me with any questions. Thanks and have a great day.     Gail McFarland, Fire Inspector, PIO Eagle River Fire Protection District PO Box 7980 Avon, Co 81620 Phone: 970-748-4739 Fax: 970-949-7965 www.eagleriverfire.org       Eagle River Fire Protection District is a professional fire service agency and proudly serves Camp Hale, Tennessee Pass,  Redcliff, Minturn, EagleVail, Avon, Mountain Star, Wildridge, Beaver Creek (Contractual agreement), Bachelor Gulch,  Arrowhead, Homestead, Edwards, Lake Creek, Singletree, Pilgrim Downs, Cordillera, Bellyache Ridge, Red Sky Ranch and  the portions of I‐70, Hwy 6 & 24. The District does NOT serve the Town of Vail, nor are the two departments associated  with one another.      From: karl bauer Sent: Wednesday, February 20, 2013 8:08 PM Attachment D At t a c h m e n t E At t a c h m e n t E  Page 1 TOWN COUNCIL REPORT To: Honorable Mayor Rich Carroll and Avon Town Council From: Scott Wright, Finance Director Date: May 21, 2013 Re: Financial Analysis of Proposed Amendment to Brookside Park, Lot 1 PUD Summary: The following revenue analysis of the proposed conversion of Brookside Park is based upon the following assumptions: • Total first floor units – 10; total square footage – 15,190 • Total second floor units 10, total square footage – 14,474 • Price per square foot - $400 The financial analysis below assumes conversion of the entire building from commercial to residential. If only one floor of the building is converted, the impacts are approximately one-half of the amounts stated below. The summary below provides the financial analysis of the following revenues: property taxes, public accommodations taxes and sales taxes, and real property transfer taxes. Financial Analysis: Property Taxes Brookside Park, Lot 1 currently is assessed in 2013 as commercial with a total market value of $6,013,530 and an assessed value of $1,743,920. Based on Avon’s general operating mill rate of 8.956, property taxes generated in 2014 will equal $15,618. Based on an estimate of $400 per square foot, the current land value of $2,009,590, and a total residential square footage of 29,664, the market value of the converted property would be $14,423,260. Based on the residential assessment ratio of 7.96% the assessed value would be $1,148,091 and the estimated property taxes generated for the Town would be $10,282 or a decrease of approximately $5,336. Attachment F  Page 2 Real Estate Transfer Tax Assuming a sale price of $400 per square foot approximately $237,312 in real estate transfer taxes will be generated on the first-time sales of the residential units. This figure could be lower if purchasers are eligible for the exemption for full-time residents of up to $3,200 per unit. Sales and Accommodation Taxes Currently the Brookside Park, Lot 1 PUD does not allow for short-term rentals. If the PUD is amended to allow for short-term rentals, the Town’s 4% sales tax and 4% public accommodations tax would apply to room rentals for stays of 30 days or less. There is not data available to estimate the amount of sales tax and accommodations tax that might be collected. However, it should be noted that the Residences at Brookside and the Lodge at Brookside both have units that are actively rented out on a short-term basis. Municipal Costs of Services With only 20 residential units proposed with this conversion, and no impact to Town infrastructure, the Town’s budget for operations and maintenance costs are not expected to be impacted. Attachment F Ord 13-06 Brookside Park Final PUD Amendment May 28, 2013 Page 1 of 6 TOWN OF AVON, COLORADO ORDINANCE 13-06 SERIES OF 2013 AN ORDINANCE APPROVING A FINAL PUD AMENDMENT FOR BROOKSIDE PARK ON LOT 1, BROOKSIDE PARK PUD, EAGLEWOOD SUBDIVISION, TOWN OF AVON, EAGLE COUNTY, COLORADO WHEREAS, the Town of Avon (“Town”) is a home rule authority municipal corporation and body politic organized under the laws of the State of Colorado and possessing the maximum powers, authority and privileges to which it is entitled under Colorado law; and WHEREAS, Rick Pylman, Pylman & Associates (the “Applicant”) on behalf of Riverview Park Associates (the “Owner”) has submitted a Final PUD Application (the “Application”) to modify the approved PUD development rights to allow for the conversion of commercial office space to either (a) 24 dwelling units, or (b) 16 dwelling units and 15,000 square feet of commercial office space; and WHEREAS, the Planning and Zoning Commission held public hearings on April 16, 2013 after posting notice of such hearings in accordance with the requirements of Section 7.16.020(d), Step 4: Notice, Avon Municipal Code, and considered all comments provided before taking action; and WHEREAS, the Planning and Zoning Commission recommended to the Town Council approval of the Application through the Planning and Zoning Commission Findings of Fact, Record of Decision, and Recommendations dated April 16, 2013; and WHEREAS, pursuant to Section 7.16.060(f)(5), Review Criteria, and Section 7.16.060(e)(4), Review Criteria, Avon Municipal Code, the Town Council has considered the applicable review criteria for the Application; and WHEREAS, the Town Council held public hearings on May 28, 2013 and June 11, 2013 after posting notice of such hearing in accordance with the requirements of Section 7.16.020(d), Step 4: Notice, Avon Municipal Code, and considered all comments provided before taking action; and WHEREAS, the Town Council finds that the health, safety and welfare of the Avon community will be enhanced and promoted by the adoption of this Ordinance; and WHEREAS, approval of this Ordinance on first reading is intended only to confirm that the Town Council desires to comply with the requirements of the Avon Home Rule Charter by setting a public hearing in order to provide the public an opportunity to present testimony and evidence regarding the application and that approval of this Ordinance on first reading does not constitute a representation that the Town Council, or any member of the Town Council, supports, approves, rejects, or denies this ordinance. Ord 13-06 Brookside Park Final PUD Amendment May 28, 2013 Page 2 of 6 NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO, the following: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Town Council. Section 2. Brookside Park PUD Amendment. The Brookside Park final PUD amendment application for Lot 1, Brookside Park PUD, Eaglewood Subdivision is hereby approved as follows: A. The Brookside Park PUD is amended for Lot 1, Brookside Park PUD, Eaglewood Subdivision to modify the allowable uses and densities as presented in Exhibit A. B. Prior to the issuance of a Building Permit, the Applicant shall provide proof of adequate water rights from the Upper Eagle Regional Water Authority. C. Prior to conversion, the Applicant shall apply for a Minor Design and Development application proposing site modifications that are in substantial conformity to the conceptual site plans as presented during the Final PUD Amendment Application. Section 3. Correction of Errors. Town Staff is authorized to insert proper dates, references to recording information and make similar changes, and to correct any typographical, grammatical, cross-reference, or other errors which may be discovered in any documents associated with this Ordinance and documents approved by this Ordinance provided that such corrections do not change the substantive terms and provisions of such documents. Section 4. Severability. If any provision of this Ordinance, or the application of such provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. The Town Council hereby declares that it would have passed this Ordinance and each provision thereof, even though any one of the provisions might be declared unconstitutional or invalid. As used in this Section, the term “provision” means and includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term “application” means and includes an application of an ordinance or any part thereof, whether considered or construed alone or together with another ordinance or ordinances, or part thereof, of the Town. Section 5. Effective Date. This Ordinance shall take effect thirty days after final adoption in accordance with Section 6.4 of the Avon Home Rule Charter. Section 6. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town of Avon, that it is promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The Town Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Ord 13-06 Brookside Park Final PUD Amendment May 28, 2013 Page 3 of 6 Section 7. Publication by Posting. The Town Clerk is ordered to publish this Ordinance by posting notice of adoption of this Ordinance on final reading by title at the Avon Town Hall, Avon Recreation Center and Avon Public Library, which notice shall contain a statement that a copy of the ordinance in full is available for public inspection in the office of the Town Clerk during normal business hours. The Town Clerk is further ordered to publish a notice stating a vested property right has been created in accordance with Section 7.16.140(d)(2) of the Avon Municipal Code. Section 8. Final Action. Approval and final adoption of this Ordinance on second reading constitutes the Town’s final action for the purposes of any appeal, legal challenge or referendum seeking reconsideration of the decision of the Town Council with respect to this Ordinance and matters approved hereby in accordance with Section 7.16.020(f)(5) of the Avon Municipal Code and in accordance with Chapters VI and VII of the Avon Home Rule Charter. [EXECUTION PAGE FOLLOWS] Ord 13-06 Brookside Park Final PUD Amendment May 28, 2013 Page 4 of 6 INTRODUCED, APPROVED, PASSED ON FIRST READING, ORDERED POSTED on May 28, 2013 and a public hearing on this ordinance shall be held at the regular meeting of the Town Council on June 11, 2013, at 5:30 P.M. in the Council Chambers, Avon Municipal Building, One Lake Street, Avon, Colorado. ____________________________ Rich Carroll, Mayor Published by posting in at least three public places in Town and posting at the office of the Town Clerk at least seven days prior to final action by the Town Council. ATTEST: APPROVED AS TO FORM: ____________________________ ____________________________ Patty McKenny, Town Clerk Eric Heil, Town Attorney INTRODUCED, FINALLY APPROVED, AND PASSED ON SECOND READING, AND ORDERED PUBLISHED BY POSTING on 11th day of June, 2013. ____________________________ Rich Carroll, Mayor Published by posting by title in at least three public places in Town and posting by title at the office of the Town Clerk. ATTEST: __________________________ Patty McKenny, Town Clerk Ord 13-06 Brookside Park Final PUD Amendment May 28, 2013 Page 5 of 6 Exhibit A to Ordinance 13-06 Brookside Park PUD Guide The following Planned Unit Development Guide will serve as the governing regulations which will control development on Brookside Park, A Resubdivision of Lot 1, Eaglewood Subdivision, Town of Avon, Eagle County, Colorado, known as the Brookside Park PUD. This PUD Guide is intended to become a part of the Brookside Park Planned Unit Development and serve as the “Zone District Regulations” for the PUD as required by Section 17.20.110.1 of the Municipal Code of the Town of Avon. The Brookside Park PUD authorizes a total 78 dwelling units and 30,000 useable square feet of commercial space on 4.7 acres of land within the Town of Avon, Eagle County, Colorado. Development within the PUD is administered by the Town of Avon through the provisions of this PUD Guide. Building construction within the PUD is governed by the applicable Town of Avon ordinances, rules and regulations. A. Intention The intention of the Brookside Park PUD is to provide for an architecturally integrated residential or mixed use residential and commercial campus with appropriate uses, development standards and regulatory controls. B. Definitions All terms used in this PUD Guide shall be as defined in Chapter 7, Development Code of the Town of Avon Municipal Code unless otherwise defined in this section of the PUD Guide. C. Allowable Uses by Right – Residential 1. Multiple Family dwelling units including townhomes, condominiums and apartments. 2. Short term rentals D. Allowable Uses by Right – Commercial Building A contains 30,000 useable square feet that is designated as commercial space. The following uses are allowed within the areas designated as commercial on the Building A floor plans that are incorporated within this PUD Development Plan. 1. Professional Offices including Design Studios 2. Medical Outpatient Offices 3. Retail/Wholesale Furniture Stores and Showrooms 4. Retail/Wholesale Home Furnishing Stores and Showrooms 5. Retail/Wholesale Architectural Products Stores and Showrooms 6. Retail/Wholesale Household Appliance Product Stores and Showrooms 7. Antique Stores and Showrooms 8. Art Galleries/Frame Shops 9. Restaurants E. Allowable Uses By Right – General 1. Recreation Amenities including swimming pools and hot tubs Ord 13-06 Brookside Park Final PUD Amendment May 28, 2013 Page 6 of 6 F. Special Review Uses 1. Home Occupations 2. Retail Stores not specifically listed as a Use by Right. 3. Church 4. On-Site Rental Office G. Accessory Uses 1. Interior and Exterior uses customarily accessory to residential and Commercial uses shall be allowed. H. Development Standards Maximum Density: 78 dwelling units Maximum Useable Commercial Area: 30,000 Square Feet Building Height: 60 feet Minimum Building Setbacks: Front: 25 Feet Side: 7.5 Feet Rear: 10 Feet Eagle River: 30 Feet as defined in Section 17.50.110 of the Town of Avon Municipal Code. Building setbacks shall apply to the PUD perimeter property line only. Internal lines created for phasing delineation of for individual unit ownership shall not apply. Maximum Site Coverage: 50% Minimum Landscape Area: 20% Parking: Residential: 2 spaces per dwelling unit 10 guest spaces Commercial: 4.3 spaces per 1,000 square feet of useable floor area I. Density Allocation Lot 1, Brookside Center 24 dwelling units (subject to Section J) Lot 2 The Lodge at Brookside Park 40 dwelling units Lot 3 The Townhomes at Brookside Park 14 dwelling units J. Brookside Center The Brookside Center building may consist of up to 30,000 square feet of useable commercial space or as a residential building of up to 24 dwelling units, or may be a mixed use option of the allowed commercial uses on the first floor and residential on the second floor. In the mixed use option described in the preceding paragraph the maximum density shall be no more than 16 units located on the second floor of the building. The units shall be restricted to a maximum of 8 studio units and 8 one-bedroom units, or in a configuration that creates a residential parking demand of no more than 29 parking spaces.     TOWN COUNCIL REPORT      To:   Honorable Mayor Rich Carroll and Avon Town Council  From:   Matt Pielsticker, AICP, Senior Planner       Date:   June 6, 2013  Agenda Topic:  Second Reading of Ordinance 13‐07, Approving a Minor PUD Amendment for Lot 25,     Block 2, Wildridge Subdivision    Introduction  The Applicant, George Plavec, is requesting a Planned Unit Development (PUD) Amendment  (“the Application”) to modify the allowed building type for Lot 25, Block 2, Wildridge Subdivision  (“the Property”).  Currently, four (4) dwelling units, in the form of a Fourplex building, is  permitted by right.   The proposal is for the ability to develop the Property with two (2) duplexes.   The application is being processed as a Minor PUD Amendment.      Attached to this report is a Vicinity Map (Attachment A), the Application (Attachment B), PZC  “Finding of Fact, Record of Decision, and Recommendation” (Attachment C), written Public  Comments (Attachment D), and draft Ordinance (Attachment E) No. 13‐07, which reflects PZC’s  recommendation.    On May 28, 2013 Council approved the first reading of Ordinance No. 13‐07 with direction to make  minor changes to the allowable building footprint sizes.  Council directed Staff to return for a  Public Hearing and second reading on June 11, 2013.     Application Process (§7.16.020, AMC)  Minor PUD Amendment Process  This Application is processed under §7.16.060(h), Amendments to a Final PUD, Avon Municipal  Code (“AMC”).  This code section refers to §7.16.020(g), Minor Amendments, AMC; which allows  the Director to refer the Application to both the PZC and Town Council for public hearings.    Agency Referrals  Pursuant to AMC §7.16.020(c)(2), Referral to Other Agencies, AMC, Staff referred the Application  to the Eagle County Planning Department, Eagle River Water and Sanitation District, and the  Eagle River Fire Protection District for Comments.  No outside agency comments were received.    Public Notification  In order to comply with the Public Hearing and pertinent noticing requirements, a mailed notice  was provided to all property owners within 300’ of the property.  The list of adjacent property  owners is included within the Application.  Additionally, a notice was published in the Vail Daily  Ordinance 13‐07, Second Reading   Lot 25, Block 2, Wildridge – June Creek Corner PUD Amendment  Page 2  newspaper.   Two written comments were received in response to the mailed notice.   These  comments are attached to this report as Attachment C.    Public Hearings  The PZC held a public hearing at their May 7th, 2013 meeting.  The PZC review and  recommendation is outlined elsewhere in this report.  The Council will make the final decision on  this Application after two public hearings.      Background  Benchmark Properties created the Wildridge Subdivision in 1979, shortly after the incorporation  of the Town of Avon on February 28, 1978.  The Plat was amended a few times with the most  recent version being “Wildridge Replat No. 2”.  According to the Wildridge Final Plat for Wildridge  and Wildwood Subdivisions (currently Mountain Star PUD and Subdivision), the overall  development concept was for “abundant open space recreation areas around lots” with a  density of “barely one dwelling unit per acre”.    Proposed PUD Amendment  The Property is zoned PUD and is included in the Wildridge Subdivision.  Included in the Wildridge  Subdivision and PUD Plat is a Land Use Summary table, which breaks down the number of units  for each individual lot, and also summaries the type of construction permitted on each property.   On the following page (Exhibit 1) is an excerpt from the Wildridge PUD, with the pertinent  Property information highlighted in yellow.  The Property is entitled four (4) units in the form of  one (1) Fourplex structure.        The Application (Attachment B) would modify the Land Use Summary table (Exhibit 1) to include  “2 Duplexes” instead of “Fourplex,” similar to Lot 39, Block 4, which is permitted “2 duplexes or 1  Fourplex.”  All other zoning standards (i.e. setbacks, building height, and site coverage) would  remain the same; this property contains 25’ front setbacks, 10’ side/rear setbacks and a 35’  maximum allowable height.  There are two fronts to the Property as it abuts two roads, Old Trail  and June Creek Roads.        The Application materials (Attachment B) includes a narrative, response to the mandatory review  criteria, and preliminary level design plans for a two (2) duplex development scenario.  Also  included are two (2) Fourplex options with varied layouts intended to provide a massing  comparison of the proposal to the underlying zoning for the Property.                                          Ordinance 13‐07, Second Reading   Lot 25, Block 2, Wildridge – June Creek Corner PUD Amendment  Page 3      Exhibit 1 –Wildridge Replat No. 2 – Land Use Summary      PZC Review  The PZC held a public hearing on May 7th, 2013 regarding the Application.  They discussed the  proposed Application with respect to the existing zoning, impacts on the property and  neighboring property, public input, and compliance with the applicable codes.       There were two public comments (Attachment C) received: one from Chad Anderson and one  from Larry Wolfe, both neighboring property owners.  Chad voiced support for separating the  Fourplex into two (2) structures, and requested that the units be spread further apart to afford  views of the ski resort and New York Mountains.  He also preferred a different driveway  configuration. Larry Wolfe voiced support for the Application as submitted.  Ordinance 13‐07, Second Reading   Lot 25, Block 2, Wildridge – June Creek Corner PUD Amendment  Page 4    Public comments were also received from Guy Cutia, representing Scott Black, an adjacent  property owner.  His concerns were over building height and the possibility of restricting views.   The PZC discussed the public comments and recognized that there were no protected view  corridors in the subdivision.  The Commission acknowledged that the building setbacks and the  building height were not changing with the proposal.      Ultimately the PZC approved a “Findings of Fact, Record of Decision, and Recommendation”  (Attachment D) with six (6) Findings and two (2) conditions.  The conditions are as follows:  (1) The building footprints are limited to 3,400 gross sq. ft. (including garages).  (2) Building separation will be at least fifteen feet (15’) between structures.    The recommended conditions of approval were added to guarantee that the “light and air” and  resulting advantages of separating the building into two structures are realized when the  property is developed.  The footprint limitation for each structure is slightly larger than the  conceptual footprint design in the Application materials; the recommended building separation  (15’) is a Development Code requirement and approximately four feet (4’) more separation than  shown in the architectural plans.  The conceptual duplex design in the Application shows a ten  foot, nine inch (10’9”) building separation.      Staff Analysis  After the initial review of the Application, Staff worked with the Applicant to define acceptable  limitations on building footprint sizes, which would create operative building envelopes.  This  type of approach not only affords the property owner some flexibility in the location of the  structures once detailed access design and building design are pursued, but these limitations also  ensure that increased space between structures will be realized.    Staff supports the Application as it would result in a reduced impact on the neighboring  properties, and allows for a flexible development pattern in the form of two (2) structures in  place of one (1).  The massing is improved with more opportunity for building articulation and the  introduction of light and air between units.  After reviewing the PUD review criteria below, Staff  (and PZC) finds the Application in conformance with the purpose of the development code; there  appears to be no added impact to neighboring properties.  The development pattern in the area  is diverse, with emphasis on clustered single‐family construction, duplexes, and one triplex  immediately to the south.        PUD Review Criteria   Pursuant to §7.16.060(e)(4), Review Criteria, AMC, the Council shall consider a number of review  criteria.  The following criteria must be considered when acting on a PUD Amendment:  (i) The PUD addresses a unique situation, confers a substantial benefit to the Town, and/or  incorporates creative site design such that it achieves the purposes of this Development Code  and represents an improvement in quality over what could have been accomplished through  strict application of the otherwise applicable district or development standards. Such  Ordinance 13‐07, Second Reading   Lot 25, Block 2, Wildridge – June Creek Corner PUD Amendment  Page 5  improvements in quality may include, but are not limited to: improvements in open space  provision and access; environmental protection; tree/vegetation preservation; efficient  provision of streets, roads, and other utilities and services; or increased choice of living and  housing environments.  Staff Response:  The stated purposes of §7.04, Development Code, AMC, and §7.16.060, PUD,  AMC, includes statements regarding the implementation of the Comprehensive Plan;  regulating intensity of use; avoiding increased demands on public services and facilities; and  providing for compatibility with the surrounding area, among other statements.         The proposed amendment does not increase demands on public services, and provides  compatible building layouts with the surrounding area.  The Application also represents an  improvement in quality over what could have been accomplished through the strict  application of the “Fourplex” designation in the existing PUD.                (ii) The PUD rezoning will promote the public health, safety, and general welfare;  Staff Response:  The Application does not negatively affect the public health, safety and  welfare.  The inclusion of duplex structures on the Property is compatible with the adjacent  single‐family, duplex, and multi‐family residential uses.    (iii) The PUD rezoning is consistent with the Avon Comprehensive Plan, the purposes of this  Development Code, and the eligibility criteria outlined in §7.16.060(b);  Staff Response: The proposed PUD amendment is part of an established PUD, and is therefore  not subject to the eligibility criteria, or Public Benefit requirements, outlined in §7.16.060(b).   Consistency with the Comprehensive Plan is required and analysis is provided below.      The Comprehensive Plan includes this property within District 24: Wildridge Residential District.   The planning principals specific to this property include the following:     Redesign the intersection of Metcalf and Nottingham Roads, and implement the other recommendations for District 4 to enhance the entry to Wildridge and provide more direct access from the Town Center to Wildridge.  Construct bicycle lanes along Metcalf and Wildridge Roads.  Promote a trail system through open space areas in Wildridge to provide alternatives to the roadways for pedestrian circulation and greater connection to the surrounding open space.  Preserve and enhance the existing open space trails and explore the possibility of developing additional parcels into pocket parks.  Acquire and maintain as public open space the U.S. Forest Service-owned parcel adjacent to Wildridge that includes Beaver Creek Point. Ordinance 13‐07, Second Reading   Lot 25, Block 2, Wildridge – June Creek Corner PUD Amendment  Page 6   Add an alternative or second access route to Wildridge (perhaps forest service road during the spring and summer).  Identify and delineate all open space parcels and public trails.  Site buildings of varying sizes along the street to maximize sun exposure, protect views, be compatible with existing surrounding development, and break up building bulk. Except for the last planning principle, the majority of the planning principles for the Wildridge  District deal more with enhancing open space and non‐motorized access options. This PUD  Amendment maximizes sun exposure and breaks up the building bulk that could be  experienced with the underlying “4 Unit ‐ Fourplex” zoning.  Approval could enhance  compatibility with existing surrounding development.    (iv) Facilities and services (including roads and transportation, water, gas, electric, police and  fire protection, and sewage and waste disposal, as applicable) will be available to serve the  subject property while maintaining adequate levels of service to existing development;  Staff Response: The PUD amendment has no incremental impact on public facilities or services.       (v) Compared to the underlying zoning, the PUD rezoning is not likely to result in significant  adverse impacts upon the natural environment, including air, water, noise, storm water  management, wildlife, and vegetation, or such impacts will be substantially mitigated;  Staff Response:   When compared to the existing zoning, the proposed PUD amendment will  not result in any adverse impacts upon the natural environment, wildlife, vegetation, air, or  stormwater management.     (vi) Compared to the underlying zoning, the PUD rezoning is not likely to result in significant  adverse impacts upon other property in the vicinity of the subject tract; and  Staff Response:  As discussed herein, the approval of the PUD amendment would not result in  significant adverse impacts upon other property in the vicinity.  The setbacks and building  height would remain in place.  Breaking the building into two separate buildings could result in  fewer impacts to other properties in the area.      (vii) Future uses on the subject tract will be compatible in scale with uses or potential future  uses on other properties in the vicinity of the subject tract.  Staff Response: As proposed, the Application will either increase the compatibility with uses or  potential future uses on other properties in the vicinity, or will result in no change to uses as  currently exist.          Ordinance 13‐07, Second Reading   Lot 25, Block 2, Wildridge – June Creek Corner PUD Amendment  Page 7  Council Action:  If the Council is satisfied with the PZC recommendation and minor changes to the Ordinance,  they should approve the Second Reading of Ordinance No. 13‐07 (Attachment E) after  conducting a Public Hearing.    Attachments:  A: Vicinity Map  B: Application Materials dated April 11, 2013  C: Public Comment  D: PZC Findings of Fact, Record of Decision, and Recommendation  E: Ordinance 13‐07      At t a c h m e n t A  1    Minor PUD Amendment Lot 25, Block 2, Wildridge Subdivision, Avon CO 2900 June Creek Trail Submitted by George “Tripp” Plavec 4/11/2013 Attachment B  2    A: Introduction Applicant George “Tripp” Plavec would like to request a minor PUD amendment to the Plat of Wildridge for Lot 25, Block 2, Wildridge Subdivision located at 2900 June Creek Trail, corner of Old Trail Road and June Creek Trail. Lot 25 is currently zoned for 4 units which traditionally would be a large tall single building consisting of 4 dwellings. We believe that the community and town would be better served if 2 separate buildings of two units each were constructed. Our intension, is to construct a project very similar, with only minor modifi- cations for esthetic and code reasons to the architectural details provided in this application. Our desire is not to gain approval for a generic separation of a 4 unit lot to be constructed in two two unit buildings but to seek preliminary approval for the project proposed. Our project of 2376 square feet per unit aims to provide a smaller intimate home for the middle income level of Wildridge. The design incorporates a roof height of approximately 32-33 ft. This will be a definite benefit to the homes to the north and east. The Town of Avon, Future Residents of the property and the neighborhood would benefit by such a pro- posal because of the fallowing: Smaller, human scale structures Structures of the same scale as the neighboring duplex homes Two buildings would provide a view corridor between units giving more air and light. It would and provide better drainage between the buildings Storm water and snow storage will be more easily managed with two buildings Creating an angle between the units adds architectural interest Landscaping between the buildings would break the massing and provide a nice feature on the Old Trail road side of the property No increase in density Each unit would be equal to the others without having the inner unit syndrome B: Background Through the history of Wildridge there has been a desire by the community to create more individual homes to mix with the larger duplexes. Duplexes in Wildridge are only restricted in size by the set back and height limitations. During the last economic boom many duplexes became excessively massive with no limits to size. We feel the current trend of allowing flexibility in separating units gives the neighborhood more character and provides for a stable construction industry with more options available. Attachment B  3  In developing a plan for Lot 25 we looked at several options. Three single family buildings, two duplex buildings, and one fourplex building. With a reduction of units the economic feasibility would force the sizes of the three single buildings to be larger, more expensive to build and purchase. Our desire was not build what would have to be three large homes. We instead wanted to produce more affordable homes that complements the smaller structures of Shepard's Ridge to the south west but still has common ele- ments that relate to each of the other fourplexes of Stonebriar and 2929 June Creek across June Creek Trail. C: Goal and purpose of application Our intension with this application was to show how four units could be separated in an esthetically pleas- ing way that complies with The Town of Avon Development code. The design of the concept of two buildings for a four unit lot had to be developed enough so that an intelligent analysis could be made by the planning and zoning commission and ultimately the town council. We are at a point now with a design we consider feasible economically and architecturally. If we are given the approval for this type of design uti- lizing two separate buildings we will complete details of siding, colors and minor modifications for a com- plete design review. On pages 6-13 you will find our current design. Pages 14-17 are fourplex options of the same layouts Thank you for taking the time to consider my project George “Tripp” Plavec To note: Before submitting for design review some minor modifications are necessary to the entry of unit 3 and decks to all units but the square footage, general structural design and heights will remain relatively the same. Attachment B  4  D: From Avon Development Code several aspects pertaining to our objectives 7.28.090 Design Standards (a) Purpose. The general intent of the design standards is to implement the Avon Comprehensive Plan vision of an attractive, efficient, and livable community that features stable neighborhoods and promotes a mix of uses in well-designed community focal points. (1) To achieve the proper and efficient use of the land by promoting an appropriate balance between the built environment and the preservation and protection of open space and natural resources; (4) To provide appropriate standards to ensure a high quality appearance for residents and visitors of Avon and promote good design while also allowing flexibility, individuality, creativity, and artistic expression; (5) To protect and enhance the unique mountain character and economic development of Avon by encouraging physical development that is of high quality and is compatible with the character, scale, and function of its surrounding area; The separation in the buildings is a more attractive and livable design which provides buildings that are more in scale with the surrounding neighborhood. Having space between the buildings provides more balance with the built environment and open natural space. 7.28.090 Design Standards  (e) Design Standards for the Wildridge Subdivision 3) Building Design (i) Buildings shall have street-facing architectural details and elements which provide a human scale to the façade. Flat, monotonous facades shall be avoided. (A) The design of a structure shall create variety and interest along the street elevation. A significant alteration of the massing and composition (not just the exterior colors and materials) of each house or each townhouse or duplex unit must be accomplished. Our street facing details are all architectural with out the view of garages and entries, thus allowing for landscaping and separation of the buildings breaks the massing more than any alteration of physical elements can.   Attachment B  5  704.030 Purposes (e) Promote adequate light, air, landscaping and open space and avoid undue concentration or sprawl of population; n) Achieve a diverse range of attainable housing which meets the housing needs created by jobs in the Town of Avon, provides a range of housing types and price points to serve a complete range of life stages, and promotes a balanced, diverse, and stable full time residential community which is balanced with the visitor economy; The separation in our buildings promote light, air and landscaping. The lower price point of these units will provide for a range of life styles for a diverse, stable residen- tial community. 7.28.090 Design Standards 2) Site Design (i) The location of structures and access shall complement the existing topography and views of the site. (ii) New buildings should respond to the climate of Avon and the Eagle River Valley through their orientation, massing, construction, and their choice of passive environmental control strategies and active environmental control systems.  (v) Buildings shall be oriented to optimize solar access. Access to the site from behind hides many of the day to day requirements of the property owner leav- ing street side view of landscape and architecture. Our project optimizes views from the units as well as being more interesting architecturally. The sep- aration has a sense of environmental control with drainage through the units. Solar gain is optimized by the use of windows facing south and west and with the use of Low emissiv- ity glass. The orientation captures solar gain in the winter with low angle solar radiation penetrating the glass and reflects these same high angle solar rays of summer.   Attachment B  6  Preliminary proposed design for lot 25 next 8 pages Attachment B  7  Attachment B  8  Attachment B  9  Attachment B  10  Attachment B  11  Attachment B  12  Attachment B  13  Attachment B  14  Attachment B  15  Attachment B  16  Attachment B  17  Attachment B 1 Matt Pielsticker From:Larry Wolfe <wolfe@vail.net> Sent:Tuesday, May 28, 2013 3:04 PM To:Matt Pielsticker Subject:Lot 25, Block 2, Wildridge Subdivision Hi Matt, I'm unable to make it to tonight's meeting so I just wanted to drop you a quick note to express my support for  Tripp Plavec's development concept on the parcel. As an area property owner, I am very much in favor of two duplex structures on the parcel (as he is proposing)  rather than one large, 4‐plex structure.  My feeling is that a single, 4‐unit structure would simply feel too  massive and architecturally imposing on such a visible site.  I also believe that accessing the site from June  Creek Trl (as he is proposing) is preferable to coming off of Old Trail given the safety issues associated with an  Old Trail curb cut's proximity to the rise in the road at Bear Trap and the pocket park's parking. Thanks for listening.   Larry Wolfe 2901‐B June Creek Trail 970‐390‐2525 wolfe@vail.net Attachment C 1 Matt PielstickerSubject:FW: 2900 June Creek Trail PUD Amendment   From: Chad Anderson [mailto:CMAnderson@vailresorts.com] Sent: Tuesday, May 07, 2013 2:13 PM To: Jared Barnes Cc: The Wife (ShawnacAnderson@comcast.net); Chad Anderson Subject: 2900 June Creek Trail PUD Amendment Jared, Thanks for calling me back yesterday regarding the PUD Amendment for the Upcoming Construction on the Lot Adjacent to ours at 2920 June Creek Trail. I found the PDF on-line and have some feedback for Today's meeting: 1.) Do to the Location of our Deck and View of Beaver Creek, BG and New York Mountain, we would prefer the 2 Separate Duplexes over the 4 Plex. 2.) We would like to see the units spaced further apart on the Lot to let us retain at least a partial view of the Ski Resort. 3.) We would like to see the Driveway on the South Side of the Lot, with the exit on Old Trail. This would keep us from having to look directly at a Driveway and Garage Doors. Having it on the North Side will also cause problems for the New Owners with Ice and Snow Build up, due to lack of sunshine. 4.) We would like to see as low of a profile possible to not hinder our current great views of the Mountain. Feel free to pass along my comments to George Plavec. Thanks, Chad Anderson Beaver Creek Mountain Dining Senior Manager F&B Spruce Saddle Lodge & Red Tail Camp Office - 970-754-5521 Cell - 970-331-1758 Fax - 970-754-5519 Spruce Saddle Lodge Facebook Page Red Tail Camp Facebook Page Sent from Office Outlook Web Access The information contained in this message is confidential and intended only for the use of the individual or Attachment C At t a c h m e n t D At t a c h m e n t D       Ord. 13‐07 June Creek Corner PUD Amendment – Lot 25, Block 2, Wildridge    June 11, 2013 Town Council Meeting  Page 1 of 4     TOWN OF AVON, COLORADO ORDINANCE 13-07 SERIES OF 2013 AN ORDINANCE APPROVING A MINOR PUD AMENDMENT FOR “JUNE CREEK CORNER” ON LOT 25, BLOCK 2, WILDRIDGE SUBDIVISION, TOWN OF AVON, EAGLE COUNTY, COLORADO WHEREAS, the Town of Avon (“Town”) is a home rule authority municipal corporation and body politic organized under the laws of the State of Colorado and possessing the maximum powers, authority and privileges to which it is entitled under Colorado law; and WHEREAS, George Plavec (the “Applicant” and the “Owner”) has submitted a Minor PUD amendment ( the “Application”) to modify the platted development rights to allow for the construction of two (2) duplex structures on the subject property in the place of one (1) fourplex structure; and WHEREAS, the Planning and Zoning Commission held a public hearing on May 7, 2013 after posting notice of such hearings in accordance with the requirements of Section 7.16.020(d), Step 4: Notice, Avon Municipal Code, and considered all comments provided before taking action; and WHEREAS, the Planning and Zoning Commission recommended to the Town Council approval of the Application through the Planning and Zoning Commission Findings of Fact, Record of Decision, and Recommendations, signed May 9, 2013; and WHEREAS, pursuant to Section 7.16.060(e)(4), Review Criteria, and Section 7.16.070(f), Final Plat Review Criteria, Avon Municipal Code, the Town Council has considered the applicable review criteria for the Application; and WHEREAS, the Town Council held public hearings on May 28, 2013 and June 11, 2013 after posting notice of such hearing in accordance with the requirements of Section 7.16.020(d), Step 4: Notice, Avon Municipal Code, and considered all comments provided before taking action; and WHEREAS, the Town Council finds that the health, safety and welfare of the Avon community will be enhanced and promoted by the adoption of this Ordinance; and WHEREAS, approval of this Ordinance on first reading is intended only to confirm that the Town Council desires to comply with the requirements of the Avon Home Rule Charter by setting a public hearing in order to provide the public an opportunity to present testimony and evidence regarding the application and that approval of this Ordinance on first reading does not constitute a representation that the Town Council, or any member of the Town Council, supports, approves, rejects, or denies this ordinance. Attachment E       Ord. 13‐07 June Creek Corner PUD Amendment – Lot 25, Block 2, Wildridge    June 11, 2013 Town Council Meeting  Page 2 of 4     NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO, the following: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Town Council. Section 2. June Creek Corner Minor PUD Amendment. The June Creek Corner Minor PUD Amendment application for Lot 25, Block 2, Wildridge Subdivision is hereby approved subject to the following conditions: (1) The building footprints are limited to 3,600 gross sq. ft. (including garage). (2) Building separation will be at least fifteen feet (15’) between structures. Section 3. Correction of Errors. Town Staff is authorized to insert proper dates, references to recording information and make similar changes, and to correct any typographical, grammatical, cross-reference, or other errors which may be discovered in any documents associated with this Ordinance and documents approved by this Ordinance provided that such corrections do not change the substantive terms and provisions of such documents. Section 4. Severability. If any provision of this Ordinance, or the application of such provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. The Town Council hereby declares that it would have passed this Ordinance and each provision thereof, even though any one of the provisions might be declared unconstitutional or invalid. As used in this Section, the term “provision” means and includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term “application” means and includes an application of an ordinance or any part thereof, whether considered or construed alone or together with another ordinance or ordinances, or part thereof, of the Town. Section 5. Effective Date. This Ordinance shall take effect thirty days after final adoption in accordance with Section 6.4 of the Avon Home Rule Charter. Section 6. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town of Avon, that it is promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The Town Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Section 7. Publication by Posting. The Town Clerk is ordered to publish this Ordinance by posting notice of adoption of this Ordinance on final reading by title at the Avon Town Hall, Avon Recreation Center and Avon Public Library, which notice shall contain a statement that a copy of the ordinance in full is available for public inspection in the office of the Town Clerk during normal business hours. The Town Clerk is further ordered to publish a notice stating a Attachment E       Ord. 13‐07 June Creek Corner PUD Amendment – Lot 25, Block 2, Wildridge    June 11, 2013 Town Council Meeting  Page 3 of 4     vested property right has been created in accordance with Section 7.16.140(d)(2) of the Avon Municipal Code. Section 8. Final Action. Approval and final adoption of this Ordinance on second reading constitutes the Town’s final action for the purposes of any appeal, legal challenge or referendum seeking reconsideration of the decision of the Town Council with respect to this Ordinance and matters approved hereby in accordance with Section 7.16.020(f)(5) of the Avon Municipal Code and in accordance with Chapters VI and VII of the Avon Home Rule Charter. [EXECUTION PAGE FOLLOWS] Attachment E       Ord. 13‐07 June Creek Corner PUD Amendment – Lot 25, Block 2, Wildridge    June 11, 2013 Town Council Meeting  Page 4 of 4     INTRODUCED, APPROVED, PASSED ON FIRST READING, ORDERED POSTED on May 28, 2013 and a public hearing on this ordinance shall be held at the regular meeting of the Town Council on June 11, 2013, at 5:30 P.M. in the Council Chambers, Avon Municipal Building, One Lake Street, Avon, Colorado. ____________________________ Rich Carroll, Mayor Published by posting in at least three public places in Town and posting at the office of the Town Clerk at least seven days prior to final action by the Town Council. ATTEST: APPROVED AS TO FORM: ____________________________ ____________________________ Patty McKenny, Town Clerk Eric Heil, Town Attorney INTRODUCED, FINALLY APPROVED, AND PASSED ON SECOND READING, AND ORDERED PUBLISHED BY POSTING on 11th day of June, 2013. ____________________________ Rich Carroll, Mayor Published by posting by title in at least three public places in Town and posting by title at the office of the Town Clerk. ATTEST: __________________________ Patty McKenny, Town Clerk Attachment E AEC Fee Waiver for Fencing June 11, 2013 Town Council Page 1 of 1 TOWN COUNCIL REPORT To: Honorable Mayor Rich Carroll and Avon Town Council From: Jared Barnes, Planner II Date: June 11, 2013 Agenda topic: Fee Waiver for Garden Fencing in Wildridge Background Mayor Rich Carroll, in response to citizen interest, has requested Community Development Staff to review the Avon Municipal Code (AMC) as it pertains to garden fencing to keep deer out in the Wildridge Subdivision. During the zoning and platting of the Wildridge Subdivision a Covenant Committee was established to act as a Design Review Board. The Covenant Committee established a set of design guidelines for the subdivision that discouraged fencing and set forth limiting standards for fencing. After the Covenant Committee became defunct, the Town of Avon assumed design review responsibilities in Wildridge and incorporated many of the Wildridge Design Guidelines into the Town of Avon’s Design Guidelines, including the fencing requirements. Those standards were incorporated into the Design Standards (Chapter 7.28, Avon Municipal Code (AMC)) with the adoption of the Development Code (Title 7, AMC). Along with discouraging fencing on properties as an aspiration, the purpose of the Wildridge fencing requirements was twofold: (1) to address the aesthetic impacts of fences and provide consistency; and, (2) to protect the migration corridors and enhance the use of private and public open space in Wildridge for wildlife. Wildridge property owners, who cannot meet the existing code, may apply for an alternate fence design by filing a Minor Design and Development Plan application for design review, and an Alternative Equivalent Compliance (AEC). The AMC allows for the concurrent processing and review by the Planning and Zoning Commission (PZC) of a Minor Design and Development Plan application and AEC application. The fee for each application are as follows: Minor Design and Development Plan - $75; AEC - $250. Discussion Pursuant to §7.05.100, Fees, AMC, the Town Council has the authority to either reduce/waive fees or extend the time period for payment of fees for any application type. In order to facilitate the review of this particular request without causing undue burden to the applicant(s), Staff recommends that Council waive the $250 fee for home garden fences for a limited period of time. There is no guarantee that once an application is filed that the PZC will approve or deny it. If approved, the fence can remain as approved until the owner decides to remove or amend it. Landscaping amendments to the AMC are included in the Work Plan and this specific amendment, consideration of allowing garden fences to keep out wildlife, including deer, could be developed at that time. Code amendments should be ready for review and recommendation to Council no later than March, 2014. In the meantime, Council can authorize the waiver of AEC fees for a limited time. Council Action By motion, Council can authorize Staff to either reduce or waive the $250 AEC application fee related to garden fence applications in the Wildridge PUD through March 31, 2014. TOWN OF AVON, COLORADO MINUTES FOR AVON REGULAR MEETING FOR TUESDAY, MAY 28, 2013 AVON TOWN HALL, ONE LAKE STREET Avon Council Meeting 13.05.28.Minutes Page 1 1. CALL TO ORDER & ROLL CALL Mayor Carroll called the meeting to order at 3 PM. A roll call was taken and Council members present were Dave Dantas, Jennie Fancher, Todd Goulding, and Buz Reynolds. Councilors Evans and Wolf arrived a few minutes after Roll Call. Also present were Town Manager Virginia Egger, Town Attorney Eric Heil, Assistant Town Manager/Town Clerk Patty McKenny, Finance Director Scott Wright, Senior Planner Matt Pielsticker and Planner II Jared Barnes, Town Engineer Justin Hildreth, as well as other staff members and the public. 2. APPROVAL OF AGENDA There were no changes to the agenda. 3. PUBLIC COMMENT There were no public comments at this time. 4. WORK SESSION 4.1. Overview of Town Properties: Use Options Virginia Egger, Town Manager, presented an overview on this topic with reference to the council packet memo. 4.2. Site walk: Main Street; Mall, Town Properties The tour began at 3:30 PM and finished at 4:15 PM. The Town Council, town staff, and members of the public toured the park and mall area. Some follow up comments included from the tour included the following:  Discussion about Parking garage locations  Get businesses engaged in the pedestrian mall  Try not to overbuild  Stage location input included support of staff’s suggested location per the plan  What size stage would be necessary  Does council see selling town hall land for hotel or inn use; there was not great support for this concept  Either use the field actively all summer or repurpose it  Plans would include to use the park very actively for three major music venues; update park equipment  Propose parking garage in the area of the library and fire station 4.3. Preliminary Report on 5-year Capital Improvements Program Both Stan Bernstein, (Bernstein and Associates), and Jonathan Heroux (Piper Jaffrey), along with Scott Wright presented information about financing options for capital projects, with information provided about certificates of participation, General Obligation Bonds, and use of the Urban Renewal Authority. Mike Cacioppo, Avon resident, asked about the financing options specifically the certificates of participation; he would prefer that the voters be asked before moving forward with large capital improvements. Some Council direction included the following:  No town hall on lot 5, understand the long term use of lot 5  Keep town hall centrally located and try to leverage partnerships with other agencies, i.e. place Library and town hall together  Support for trolley system for east & west connection  Highlight street maintenance program in CIP program; protect streets with new layer of a sand seal TOWN OF AVON, COLORADO MINUTES FOR AVON REGULAR MEETING FOR TUESDAY, MAY 28, 2013 AVON TOWN HALL, ONE LAKE STREET Avon Council Meeting 13.05.28.Minutes Page 2 to the roads  Reduce lighting of signs  Reviewed 2015 list of improvements 4.4. Review and Direction on Term Sheet for leasing space in I-70 Regional Transportation Operations Facility (Jane Burden, Transit Operations Supervisor) The Town Council was asked to provide direction on the calculation methodologies used for the Term Sheet for leasing space in the new transit facility. The Town continues to negotiate leasing the space with ECO, Beaver Creek, and CDOT. There were some questions related to the 7% discount for those agencies who would use the fleet services provided by the town. It was suggested that maybe the discount would apply for a certain number of years. There was a question about Eagle County getting a return on the $238K investment provided at the outset of the project and it was noted that this should be consistent for all partners in the project. Staff was directed to analyze the cost differentiation for the payback to Eagle County for the predesign costs. 5. AVON LIQUOR AUTHORITY MEETING (MINUTES DRAFTED SEPARATELY) 6. ACTION ITEMS 6.1. Public Hearing for Amplified Sound Permit for Outdoor Movie for Vail Valley Professionals Association (Patty McKenny, Asst. Town Manager) Mayor Pro Tem Goulding recused himself from consideration of this agenda item due to a conflict of interest. The memo was reviewed by staff and the applicant Wendy Goulding was present to highlight the event. Mayor Carroll opened the public hearing on this matter, no comments were made and the hearing was closed. Councilor Evans moved to approve the sound permit for Vail Valley Young Professionals Association; Councilor Fancher seconded the motion and it passed by those present (Mayor Pro Tem Goulding recused). 6.2. Acceptance of Town of Avon 2012 Comprehensive Annual Financial Report and Single Audit (Paul Backus, McMahan & Associates) Mayor Pro Tem Goulding joined the meeting at this time. The Town’s 2012 Comprehensive Annual Financial Report and Single Audit were presented by McMahan & Associates with an overview of why an audit is conducted for municipal entities. Mayor Carroll moved to accept the 2012 Comprehensive Annual Financial Report and Single Audit; Councilor Evans seconded the motion and it passed unanimously. 6.3.Buffalo Ridge Affordable Housing Corporation: Refinancing Multifamily Housing Project Revenue Bonds with action on Resolution No. 13-17, Series of 2013, Resolution Approving the Execution and Delivery by Buffalo Ridge Housing Corporation of a Mortgage Loan and Subordinate Notes; Authorizing Certain Amendments and Authorizing Incidental Action (Calvin Hansen, Sherman & Howard, Gerry Flynn, Polar Star Properties) Councilor Evans stepped down at this time due to a conflict of interest. The Town Council was provided some background about the Buffalo Ridge Affordable Housing Corporation noting the proposal for refinancing the multifamily housing project revenue bonds. Calvin Hansen, Sherman and Howard Law Firm, and Gerry Flynn, Polar Star Properties, presented the topic. There was some discussion about the following TOWN OF AVON, COLORADO MINUTES FOR AVON REGULAR MEETING FOR TUESDAY, MAY 28, 2013 AVON TOWN HALL, ONE LAKE STREET Avon Council Meeting 13.05.28.Minutes Page 3  The amended and restated project agreement that the town would sign; further revisions would be made to the agreement in the coming days  The resolution approves the new HUD financing and new subordinate notes  Timeline of the Refinancing which is slated to close June 27th  Update on the performance of the Buffalo Ridge project with regard to financing information and leasing of units, capital improvements asset management  Would the Board consider issuing revenue bonds vs the HUD financing; it was noted that the HUD financing was the best rate for this kind of project Councilor Reynolds move to approve Resolution No. 13-17, Series of 2013, Resolution Approving the Execution and Delivery by Buffalo Ridge Housing Corporation of a Mortgage Loan and Subordinate Notes; Authorizing Certain Amendments and Authorizing Incidental Action with the conditions that the amount does not exceed $822K and a change is made to the signature block to include the Mayor & not the Mayor Pro Tem. Mayor Pro Tem Goulding seconded the motion and it passed unanimously by those present (Councilor Evans abstained due to conflict). 6.4. Council Member Goulding's Residency Qualification and Membership on the Council (Eric Heil, Town Attorney) This item was considered by Avon Town Council; the Town Attorney reviewed the town’s Charter requirements and State Statutes and case law addressing this topic. He noted that it would be a council determination as to whether or not to allow the residency qualification. Councilor Dantas moved to extend Councilor Goulding’ s residency qualification and membership on the Avon Town Council to June 1, 2014 based upon a determination that Council member Goulding intends to regain a home or place of abode within the Town of Avon prior to June 1, 2014. There is not a need to create a Findings of Fact document or additional records because the reasons recognized by Council to determine intent will be documented on the recording of the Avon Town Council and such recording will be preserved for the next year. 6.5. Approval of Minutes from April 23, 2013 Councilor Evans moved to approve the minutes; Mayor Pro Tem Goulding seconded the motion and it passed unanimously. 6.6. Public Hearing on First Reading of Ordinance 13-06, An Ordinance Approving a Final PUD Amendment for Brookside Park Lot 1, Brookside Park PUD, Eaglewood Subdivision, Town of Avon, Eagle County, Colorado (Jared Barnes, Planner II) The application submitted by Riverview Park Associates was reviewed with some of the following highlights related to the PUD process, the Agency Referrals, public notification, and the PZC public hearing. It was noted that the application proposes to amend the PUD to allow future flexibility to convert a portion or all of the Brookside Center office building to residential dwelling units. The application proposed a maximum of twenty-four (24) dwelling units in a loft style consisting of two (2) and three (3) bedroom configurations. The amended PUD Guide (Attachment B) in the council packet also described other minor amendments that were proposed. Staff continued a review of the memo that addressed some of their analysis with regard to parking, traffic demands on the property, affordable housing impact, need for additional water rights, ERFPD concerns, and the financial analysis on the property tax collection impact. Rick Pyleman, Pylman & Associates, representing the applicant was present to address questions. The TOWN OF AVON, COLORADO MINUTES FOR AVON REGULAR MEETING FOR TUESDAY, MAY 28, 2013 AVON TOWN HALL, ONE LAKE STREET Avon Council Meeting 13.05.28.Minutes Page 4 public hearing was opened, no comments were made and the hearing was closed. Councilor Dantas moved to approve on first reading Ordinance 13-06, An Ordinance Approving a Final PUD Amendment for Brookside Park Lot 1, Brookside Park PUD, Eaglewood Subdivision, Town of Avon, Eagle County, Colorado. Councilor Evans seconded the motion and it passed unanimously. 6.7. Public Hearing on First Reading of Ordinance 13-07, An Ordinance Approving a Minor PUD Amendment for June Creek Corner on Lot 25, Block 2, Wildridge Subdivision, Town of Avon, Eagle County, Colorado (Matt Pielsticker, Senior Planner) The application submitted by George Plavec requested an amendment to modify the allowed building type for Lot 25, Block 2, and allow for the ability to develop the property with two duplexes rather that a fourplex. The council packet addressed the minor PUD amendment process, the agency referrals, public notification, the PZC hearings. Staff analysis included a review of the land use in Wildridge, a review of the building footprint and building envelopes and related impacts on the neighborhood, which were found to be minimal. George Plavec, applicant was present to answer questions and provide reasons why the request for the amendment. The public hearing was opened. Mayor Carroll read an email from Larry Wolf, resident on June Creek Trail, who wrote in support of the minor PUD amendment. Councilor Evans moved to approve on first reading Ordinance 13-07, An Ordinance Approving a Minor PUD Amendment for June Creek Corner on Lot 25, Block 2, Wildridge Subdivision, Town of Avon, Eagle County, Colorado. Mayor Pro Tem Goulding seconded the motion and it passed unanimously. 7. VILLAGE AT AVON 7.1. Settlement Update (Eric Heil, Town Attorney) A review of the update memo was made related to the status conference, the water tank bids, the bond issuance, the amendments to the service plans, the conveyance documents, the receipt and closing escrow agreement and the revocable license agreement for snow storage. 7.2. Public Hearing for Second Reading of Resolution No. 13-02, Series of 2013, Resolution Approving First Amended and Restated Service Plan for Traer Creek Metropolitan District Eric Heil, Town Attorney, noted that council action was not necessarily required tonight on the two resolutions but that final action would be required no later than the June 11th meeting. Kathy Canda, McGeady Sisneros, representing the TCMD and VMD summarized the changes that would fall into the following descriptive category: 1) Request was to keep amendments to a minimum, 2) Reconciliations were made between the development agreement and the service plans, 3) Revisions were made in order to clarify language and avoid any future disputes. There was some discussion about the versions provided with v22 and v23. Mayor Carroll opened the public hearing for Resolution No. 13-02, no comments were made and the hearing was closed. Mayor Carroll then opened the public hearing for Resolution No. 13-03, no comments were made and the hearing was closed. Councilor Evans moved to approve Resolution No. 13-02, Series of 2013, Approving Amendments to Traer Creek Metropolitan District Service Plan that is labeled as version 22 with changes outline in the memo dated May 22, 2013. Mayor Pro Tem Goulding seconded the motion and it passed unanimously. TOWN OF AVON, COLORADO MINUTES FOR AVON REGULAR MEETING FOR TUESDAY, MAY 28, 2013 AVON TOWN HALL, ONE LAKE STREET Avon Council Meeting 13.05.28.Minutes Page 5 7.3. Public Hearing for Second Reading of Resolution No. 13-03, Series of 2013, Resolution Approving First Amended and Restated Service Plan for The Village Metropolitan District Councilor Evans moved to approve Resolution No. 13-03, Series of 2013, Resolution Approving Amendment to Village Metropolitan District Service Plan submitted as version 5. Mayor Pro Tem Goulding seconded the motion and it passed unanimously. 7.4. Resolution No. 13-16, Series of 2013, Resolution Approving the Receipt and Escrow Agreement Pertaining to the Village (at Avon) Settlement Implementation and Special Warranty Deed (Lot 6 – Filing 1) Town Attorney Eric Heil noted that there were minor revisions to the documents made from last fall. Mayor Pro Tem Goulding moved to approve Resolution No. 13-16, Series of 2013, Resolution Approving the Receipt and Escrow Agreement Pertaining to the Village (at Avon) Settlement Implementation and Special Warranty Deed (Lot 6 – Filing 1). Councilor Dantas seconded the motion and it passed unanimously. 8. WORK SESSION 8.1. Discussion on Summer/Fall Regular Town Council Meeting Schedule (Rich Carroll, Mayor) Mayor Carroll reviewed the information and questions related to scheduling council meetings over the next few months. Council input included the following:  All supported the 5 pm start time as great  It was noted that land use applications may change agendas  There was input to not make one meeting per month the norm; it would be important to meet publicly on a routine basis  Suggestion to use one meeting per month as a work session  Suggestion to take more time with council to better understand what council would like for council reports  Electronic packets are difficult to read when longer documents exist  The meeting agendas do not include budget sessions  Include operational topic updates from employees  Review strategic plan with retreat  Need branding exercise in a retreat setting 8.2. Financial Matters (Kelly Huitt, Budget Analyst) Report Only There was a request to include a number that would combine March & April 2013 sales tax for the next report comparison because of the timing of Easter. 9. COMMITTEE MEETING UPDATES: COUNCILORS AND MAYOR 9.1. VVF meeting Update Update about meeting with VVF to continue discussion about Avon’s role in 2015 events planning 9.2. UERWA Meeting Updates (Todd Goulding, Mayor Pro Tem) Highlights included that UERWA would charge TOA to fill lake in the fall because of the timing & a c hange in board membership. 9.3. Mayors / Managers Meeting (Rich Carroll, Mayor) Highlights included that Senator Bennett spoke with the group about education and Regional collaboration group was working on transit TOWN OF AVON, COLORADO MINUTES FOR AVON REGULAR MEETING FOR TUESDAY, MAY 28, 2013 AVON TOWN HALL, ONE LAKE STREET Avon Council Meeting 13.05.28.Minutes Page 6 9.4. EGE Air Alliance (Rich Carroll, Mayor) It was noted that the group continues to raise $ to fund new flights. Mayor Carroll informed council that a celebration on the land exchange closing would occur on June 5th at 4 pm at Beaver Creek Point, a celebration for the dedication of open space for the West Avon Preserve aka West Avon Parcel. There being no further business to come before the Council, the regular meeting adjourned at 10:10 PM. RESPECTFULLY SUBMITTED: _________________________________ Patty McKenny, Town Clerk APPROVED: Rich Carroll ________________________________ Dave Dantas ________________________________ Chris Evans ________________________________ Jennie Fancher ________________________________ Todd Goulding ________________________________ Albert “Buz” Reynolds ________________________________ Jake Wolf ________________________________ TOWN COUNCIL REPORT To: Honorable Mayor Rich Carroll and Avon Town Council From: Patty McKenny, Assistant Town Manager Date: June 5, 2013 Agenda topic: Eaglebend Dowd Affordable Housing Corporation: Proposed Refinancing Discussion Gerry Flynn, Managing Partner of Polar Star Properties and Board member of Eaglebend Dowd Affordable Housing Corporation, will attend the Council meeting next Tuesday to discuss the proposed refinancing effort underway for Kayak Crossing Apartments located at Dowd Junction. This is a current refunding of its Multifamily Housing Revenue Bonds, Series 2003A in the original principal amount of $9,520,000. There is an agenda attached from Gerry that outlines the topics to be reviewed with the Town Council; he plans to address the current financial situation, the structure of the corporation, and a refinancing proposal. This refinancing transaction will require approval by the Town of Avon as a sponsor of the 6320 entity issuing new debt. Once the final documents are prepared, this item will be scheduled at a future meeting, possibly June 25th. Please note that the Eaglebend Down Affordable Housing Corporation, a nonprofit corporation, was formed in 1998 in an effort to assist the operation, maintenance and development of property used to provide housing at affordable rental rates to both individuals and families at a low or moderate income. Polar Star Properties was established in 2004 as a company that helps provide and manage affordable housing to the work force and families of resort communities. Eaglebend Dowd Affordable Housing Corporation (dba Kayak Crossing Apartments) Town of Avon Work Session June 11, 2013 Proposed Refinancing Agenda 1. Current Situation a. US Bank owns $8.235 million face value bonds due in 2018 b. Bonds have been in technical default since 2010, due to a continuing Debt Service Coverage shortfall. c. Current debt service is approximately $600,000 per year, including $205,000 of principal reduction. Interest on current debt is $4.89% i. US Bank has been unable to approve a reasonable debt restructure d. EDAHC has 13 subordinate bondholders holding $1.6 million face value of subordinate bonds issues in 1998. Interest was paid through January 2011, at which time it was suspended by agreement of the majority of bondholders. i. Bondholders were originally involved as landholders of the Kayak site or in the development of the project. The subordinate bonds represent deferred payment of development fees or land purchase price. e. Kayak has deferred payment of the TOA issuer fee since 2011. Accrued but unpaid fee now totals $21,169 2. EDAHC nonprofit structure a. EDAHC was formed in 1998 for the purpose of developing and managing the Kayak Crossing Apartments “on behalf of” the Town of Avon, its municipal sponsor. b. Organized under the guidelines of Revenue ruling 1963-20, which allows public purpose improvements to be financed separately from its municipal sponsor, with no financial exposure to the sponsor (TOA) c. Certain Town Rights are included in the 1998 Project Agreement between TOA and EDAHC which include: i. Town’s right to approve the initial debt and any replacement debt ii. Town’s rights to cure a default or to pay off the existing debt at any time and take title to the property. iii. Town’s reversionary right to acquire fee simple interest to the property after all of the debt is paid off. 3. Refinancing Proposal. a. FirstBank has issued a commitment for an $8.5 million loan to be used to pay off the existing US Bank owned bonds, including all accrued interest and transaction costs. b. Loan is to be secured by a first lien on the property (currently US bank collateral) and certain cash balances held by FirstBank on Eaglebend Affordable Housing (“EBAHC”) reserve accounts. i. The board of EBAHC has agreed to support this transaction, consistent with its own affordable housing mandate. EBDAHC Agenda Page 2 of 2 c. Proposed terms are a three year bridge loan at 4%, interest only, intended to bridge the financing until Kayak can secure reasonable long term financing based on continuation of its current operating performance. d. Annual debt service saving are projected at approximately $260,000. i. Excess cash after setting aside reasonable reserves will be used to pay down principal ii. Deferred TOA issuer fees will be paid from loan proceeds iii. No payments will be made on subordinate bonds until debt is paid down and EBAHC collateral is released e. Permanent refinance is expected in 2015 or 2016 based on stabilized NOI of $675,000 i. Current NOI is $575,000; increase is based on elimination of current lease concessions 4. Formal Request (to come) a. TOA approval of new debt to pay off existing US Bank Debt b. Don’t anticipate any changes to existing Project Agreement 5. Other a. 1998 Series B and C subordinate bonds will remain in place i. No payments until $660,000 of new debt is paid down (cash collateralized portion) b. Draft Documents should be available in time for the June 25th Council Agenda c. EDAHC is paying all legal fees and other transaction costs 1 | Page + TOWN COUNCIL REPORT To: Honorable Mayor Rich Carroll and Avon Town Council From: Patty McKenny, Assistant Town Manager Date: June 5, 2013 Agenda Topic: Appointment of Town of Avon Board of Director to fill vacancy for the Buffalo Ridge Affordable Housing Corporation, EagleBend Affordable Housing Corporation and Eaglebend Dowd Affordable Housing Corporation The Town Council will need to appoint a new director to each of the three housing boards that provide oversight to several affordable housing projects sponsored by the Town. The Town has been involved for many years with these three separate Colorado Non Profit Corporations that were formed to acquire property in order to provide affordable housing facilities for the benefit and on behalf of the Town of Avon and its residents as follows:  EagleBend Affordable Housing Corporation (“EBAHC”) oversees the EagleBend Apartments  Eaglebend Dowd Affordable Housing Corporation (“EBDAHC”) oversees the Kayak Crossing Apartments  Buffalo Ridge Affordable Housing Corporation (“BRAHC”) oversees the Buffalo Ridge Apartments Former Town Manager Larry Brooks served on each of these boards as a Director. With his departure from the town, the Town Council will need to appoint a new member to serve in his place. Sections 3.2, 3.3 and3.4 of each of the bylaws outline the manner in which vacancies are filled; some highlights from these sections include the following:  The number of directors shall be from 3 to 7 people as determined by the Board of Directors  Directors are elected or reelected at each annual meeting Each director holds office until the next annual meeting  Directors must be at least 18 years old but need not be residents of Colorado There is one difference in that the Buffalo Ridge Bylaws indicate that “one director shall be appointed by the Town of Avon, and the balance of the board of directors shall be elected or reelected by the board of directors at each annual meeting, with 15 days advance notice to the Town of Avon of any new director. If the Town of Avon does not object to any such director within such 15-day period, it shall be deemed to have confirmed the appointment”. I spoke with Gerry Flynn about this discrepancy and he noted that it has been the intent and practice of each of the other Boards to appoint an Avon representative as recommended by the Town Council to both the EBAHC and EBDAHC boards. Currently, Gerry Flynn, Jeff Spanel, Craig Ferraro, Michele Evans, and Larry Brooks serve as directors on all three boards. The Town Council could recommend appointing a council member, Town Manager or community member. If Council wants to pursue a community member, a public notice inquiry could be advertised. The only qualification identified is that a director must be at least 18 years old. This agenda item was scheduled to provide an opportunity for the Council to discuss “how” to proceed with the appointment. Final action on the appointment would not occur until July after the financing opportunities for two of the projects have been completed. Attachment: Summary of Bylaw Sections for each Corporation Housing Board ByLaws Summary Attchment A Eaglebend Affordable Housing Corporation Bylaws Adopted November 20, 1997 Section 3.2 Number, Election, Tenure & Qualifications The number of directors of the corporation shall be from three to seven, as determined by the Board of Directors from time to time. Directors shall be elected or reelected by the Board of Director at each annual meeting, and each director shall hold office until the next annual meeting of the board of directors and thereafter until the director's successor shall have been elected and qualified, or until the director's earlier death, resignation or removal. Directors must be at least 18 years old but need not be residents of Colorado. Any Director may be removed at any time, with or without cause, by a vote of three-fourths of the other directors then in office. Section 3.3 Vacancies Any director may resign at any time by giving written notice to the President or to the Secreatary of the corporation. Such resignation shall take effect at the time specified therein, and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. Any vacancy occurring in the board of directors may be filled by the affirmative vote of a majority of the remaining directors though less than a quorum. A director elected to fill a vacancy shall be elected for the unexpired term of such director's predecessor in office. Any directorship to be filled by reason of an increase in the number of directors shall be filled by the affirmative vote of a majority of the directors then in office, and a director so chosen shall hold office until the next election of directors and thereafter until the director's successor shall have been elected an qualified, or until the director's earlier death, resignation or removal. Section 3.4 Regluar Meetings A regular annual meeting of the board of directors shall be held during the month of April at the time and place, either within or outside Colorado, determined by the board, for the purpose of electing directors and officers and for the transaction of such other business as may come before the meeting. The board of directors may provide by resolution the time and place, either within or outside Colorado, for the holding of additional regular meetings. Eaglebend Dowd Affordable Housing Corporation Bylaws Adopted April 1, 1998 Section 3.2 Number, Election, Tenure & Qualifications The number of directors of the corporation shall be from three to seven, as determined by the Board of Directors from time to time. Directors shall be elected or reelected by the Board of Director at each annual meeting, and each director shall hold office until the next annual meeting of the board of directors and thereafter until the director's successor shall have been elected and qualified, or until the director's earlier death, resignation or removal. Directors must be at least 18 years old but need not be residents of Colorado. Any Director may be removed at any time, with or without cause, by a vote of three-fourths of the other directors then in office. Section 3.3 Vacancies Any director may resign at any time by giving written notice to the President or to the Secreatary of the corporation. Such resignation shall take effect at the time specified therein, and unless otherwise specified therein, the acceptance of such ersignation shall not be necessary to make it effective. Any vacancy occurring in the board of directors may be filled by the affirmative vote of a majority of the remaining directors though less than a quorum. A director elected to fill a vacancy shall be elected for the unexpired term of such director's predecessor in office. Any directorship to be filled by reason of an increase in the number of directors shall be filled by the affirmative vote of a majority of the directors then in office, and a directo so chosen shall hold office until the next election of directors and thereafter until the director's successor shall have been elected an qualified, or until the director's earlier death, resignation or removal. Section 3.4 Regluar Meetings A regular annual meeting of the board of directors shall be held during the month of April at the time and place, either within or outside Colorado, determined by the board, for the purpose of electing directors and officers and for the transaction of such other business as may come before the meeting. The board of directors may provide by resolution the time and place, either within or outside Colorado, for the holding of additional regular meetings. Buffalo Ridge Affordable Housing Corporation Adopted November 16, 2001 Section 3.2 Number, Election, Tenure & Qualifications The number of directors of the corporation shall be from three to seven, as determined by the Board of Directors from time to time. One director shall be appointed by the Town of Avon, and the balance of the board of directors shall be elected or reelected by the board of directors at each annual meeting, with 15 days advance notice to the Town of Avon of any new director. If the Town of Avon does not object to any such director within such 15-day period, it shall be deemed to have confirmed the appointment. Each director shall hold office until the next annual meeting of the board of directors and thereafter until the director's successor shall have been elected and qualified, or until the director's earlier death, resignation or removal. Directors must be at least 18 years old but need not be residents of Colorado. Any Director may be removed at any time, with or without cuase, by a vote of three-fourths of the other directors then in office. Section 3.3 Vacancies Any director may resign at any time by giving written notice to the President or to the Secreatary of the corporation. Such resignation shall take effect at the time specified therein, and unless otherwise specified therein, the acceptance of such ersignation shall not be necessary to make it effective. Any vacancy occurring in the board of directors may be filled by the affirmative vote of a majority of the remaining directors though less than a quorum. A director elected to fill a vacancy shall be elected for the unexpired term of such director's predecessor in office. Any directorship to be filled by reason of an increase in the number of directors shall be filled by the affirmative vote of a majority of the directors then in office, and a directo so chosen shall hold office until the next election of directors and thereafter until the director's successor shall have been elected an qualified, or until the director's earlier death, resignation or removal. Section 3.4 Regluar Meetings A regular annual meeting of the board of directors shall be held during the month of April at the time and place, either within or outside Colorado, determined by the board, for the purpose of electing directors and officers and for the transaction of such other business as may come before the meeting. The board of directors may provide by resolution the time and place, either within or outside Colorado, for the holding of additional regular meetings.  Page 1 TOWN COUNCIL REPORT To: Honorable Mayor Rich Carroll and Avon Town Council From: Virginia Egger, Town Manager Date: June 4, 2013 Re: Recommended Process for the Development & Adoption of the 2014 Budget & 5-Year Capital Improvement Program Please find following this cover memo a recommended schedule and process for the preparation of the 2014 budget and the Town of Avon 5-Year Capital Improvement Program. The recommendation has been developed with Finance Director Scott Wright, with review by department heads. The approach recommended, that of moving towards preparing a performance based budget, is intended to fully align the Town’s budget with Town Council’s adopted 2013-2014 Strategic Plan, as may be amended, and other Council priorities. This articulation of priorities is the first step in the budget process and intentionally drives resource allocation based upon what is of the greatest value to the Avon, as articulated by the Town Council. The end result is a budget with defined outcomes, which can be monitored and, where relevant, identified metrics. The proposed process also seeks to have clear direction from Council on how revenues should be projected. A three-year projection is recommended so that new expenditures planned in 2014 can be evaluated for future funding support in subsequent years. For the 2015 budget preparation, I would like to expand this multi-year projection to all funds, as is now done for capital improvements. For example, two-year Strategic Plans would be matched with two-year budgets, the first year for adoption and the second year for review, update and adoption. This approach also respects Council terms and thereby supports respective Council members’ desired outcomes. Bringing personnel compensation costs to the forefront of Council’s attention happens early in the budget process. With national healthcare implementation; management’s goal to provide a step pay system which implements the average regional market pay ranges in 5-years; a critical look at vacation accrual limits as unfunded liabilities and overall commitment to professional development funding, this aggregation of costs will represent the largest percentage of town funding and direction from Council is warranted. Budget presentations are organized in meetings based upon department operations, which are most closely aligned. Department detail would be formatted to include: Mission Statement of the department Organizational Chart List of Major Programs/Operations and FTE for each 2013 Accomplishments 2014 Key Work Plan Initiatives Budget Line Item Work Sheet Detail - Description of line item - 2012 Actual - 2013 Amended Budget - 2013 Final Revised Budget - Recommended 2014 Budget - Percent Change The budget work sessions, public hearing and adoption meeting are planned into Council’s 2nd and 4th Tuesdays of the month meeting schedule, with one special meeting planned on September 18th. Staff looks forward to discussing this process and schedule with you. Tuesday, August 13, 2013 COUNCIL BUDGET RETREAT ( 4 hours) - Performance Based Budget - Approach & Outcomes - 2013/14 Update and Situational Analysis - Review and updating of 2013-2014 Strategic Plan REVENUES: Review & Direction - All taxes, fees, charges for services - 3 - Year Projection FUND BALANCES & CONTINGENCIES: Policy Direction Tuesday, September 10, 2013 COUNCIL BUDGET WORK SESSION (2 hours) - Employee Compensation Plan: Pay for Performance; Health Insurance; General Benefits - 2014 Enterprise Funds: Fleet & Transit - Affordable Housing Fund Wednesday, September 18, 2013 COUNCIL BUDGET WORK SESSION Presentation of Funding Requests from Outside Agencies Special Council Contract Review Tuesday, September 24, 2013 COUNCIL BUDGET WORK SESSION ( 2 hours) - Capital Projects Fund + 5 Year Capital Improvement Program (Began May 28th) - Urban Renewal Authority - Community Enhancement Fund - Water Fund - Town Center West Mainenance Fund - Facilities Reserve Fund - Equipment Replacement Internal Service Fund - General Fund - Engineering Division - Debt Service Fund Tuesday, October 08, 2013 BUDGET WORK SESSION (2 - 3 hours) - General Fund: Parks & Recreation - General Fund: Roads & Bridges Wednesday, October 16, 2013 BUDGET WORK SESSION (2 hours) - General Fund: General Governement, Finance, Community Development, Police Tuesday, November 12, 2013 BUDGET WORK SESSION (2 hours) - FINAL Recommended 2014 Budget, 5-Year Capital Improvement Plan, URA Monday, November 18, 2013 Notice of Public Hearing published Tuesday, November 26, 2013 PUBLIC HEARING & ADOPTION Tuesday, December 10, 2013 Certification of Mill Levy to County Commissioners PROPOSED BUDGET PROCESS FOR PREPARATION OF THE 2014 BUDGET & 5-YEAR CAPITAL PROGRAM