TC Minutes 06-04-19860 •
MINUTES OF A SPECIAL MEETING OF THE AVON TOWN COUNCIL
HELD JUNE 4, 1986, 4:30 P.M.
A special meeting of the Town Council of the Town of Avon,
Colorado, was held in the Municipal Building, 400 Benchmark Road,
Avon, Colorado, in the Council Chambers.
Mayor Allan Nottingham called the meeting to order at 4:45 p.m. A
roll call was taken with Clint Watkins, Steve Miller, Sheila
Davis, and Al Connell present. Councilmen A.J. Wells and Don
Buick were absent. Also present were Town Manager Bill James, and
members of the press. Town Attorney John Dunn arrived at 4:53 p.m.
Mayor Nottingham stated this was a special meeting, called to
consider the amended shopping center agreement. He then turned
the discussion over to Mr. James.
Mr. James stated that Council had before them revised pages 1
through 3 of the agreement, and a Contract to Buy and Sell Real
Estate that would become an exhibit to the agreement. Due to
concerns he and Mr. Dunn had expressed at the last regular
meeting, the provision requiring a Letter of Credit from the
developer had been deleted. Instead, the agreement provides that
the Town will not issue Bonds until such time as an anchor tenant
is in place, in or around September of 1987. In other words, this
would obligate the Town to buy the land in 1987. The financing
mechanism is being left totally at the discretion of the Town.
Since it can not be determined what the interest rates will be in
1987, the provision to buy the land is contingent upon the Town
being able to secure the financing of its choice at an interest
rate not to exceed 12%. In the event financing is unavailable at
or below 12%, the Town will no longer be obligated to buy the
land. The developer has agreed to negotiate for, and buy, all the
land, now, and the Town will buy the public parking land back
within ninety days of the anchor tenant's opening for business.
The developer has agreed to pay for public improvements to Tract
A. This means the Town will not have to capitalize a year's
interest, and will realize a savings of about $500,000 on a future
Bond issue. Since approval of the agreement commits the Town to a
future purchase, Mr. James and Mr. Dunn recommended the agreement
be adopted by ordinance, and Mr. James stated that one had been
prepared for that purpose. As Mr. Dunn explained later, the Avon
Municipal Code requires that any incurrence of debt on the part of
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the Town be adopted by ordinance. Mr. James stated that, since
the method of financing is left up to the Town, all references to
the Town issuing Bonds have been deleted from the agreement. He
reiterated that the Town will not be obligated to do anything
until an anchor tenant opens for business.
Council agreed that these changes seemed to constitute a much
better deal.
Discussion followed, during which time Council reviewed copies of
the ordinance, No. 86-15, Series of 1986, AN ORDINANCE AUTHORIZING
THE OBLIGATION OF THE TOWN TO ACQUIRE A PORTION OF LOTS 22, 23,
AND 75, BLOCK 2, BENCHMARK AT BEAVER CREEK SUBDIVISION, TOWN OF
AVON, FOR USE BY THE TOWN FOR PARKING PURPOSES.
Mr. Dunn restated the fact that, before the Town will be obligated
to buy the land, the developer must fulfill his obligations under
the agreement and the Town must be able to secure financing at or
below 12% interest. He felt this was important to remember.
Councilman Watkins pointed out a discrepancy on amended page 2,
paragraph "C. Interest". The last two lines of this paragraph
were in conflict with the paragraph directly above. It was agreed
to end paragraph "C" with, "...accrued interest, if any, shall be
retained by the Town." The words, "and may be disposed of as
provided in paragraph B, of this section 1." were deleted. On
amended page 3, Councilman Watkins pointed out the apparent
omission of the word, "before", in the fifth line of paragraph "A"
under Section 4. The sentence should read, "The Town must approve
the form and substance of the agreements before they are signed."
Councilman Watkins questioned the reference to, "acts of third
parties", on page 17, paragraph "F", of the original developer
agreement. He felt it was too vague. It was agreed to delete the
reference.
Further discussion ensued.
It was agreed to schedule second reading of the ordinance, the
public hearing, for the June 24, 1986, regular meeting.
Regarding the transfer of the Holiday Inn project Bonds to the
Wynfield Inn project, Mr. Dunn mentioned he had spoken with Mr.
John Dethman, who was handling the transfer, and had been told
the only thing holding up the closing was the rating of the Bonds.
Once the Bonds were rated, the deal would be closed. Hopefully,
this would occur sometime next week.
At this point, Mr. James reviewed the tentative shopping center
land configuration map with Council, stating that what was shown
on the map would probably change in the future.
Councilman Miller moved approval of Ordinance No. 86-15, Series of
1986, on first reading. Councilwoman Davis seconded the motion.
Those Council members voting "aye" were Al Connell, Sheila Davis,
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Clint Watkins, and Steve Miller. There were no "nay" votes. The
motion carried unanimously.
Mr. Dunn pointed out the fact that the current agreement calls for
payment of the deposit, by the developer, by the 17th of this
month. Since the agreement will not be signed until after second
reading of the ordinance, on June 24th, it was agreed to change
the payment date to no later than June 24, 1986.
There being no further business to come before the Council,
Councilman Connell moved to adjourn. Councilman Watkins seconded
the motion. Mayor Nottingham adjourned the meeting at 5:30 p.m.
Respectfully Su m' ted:
Barbara R. Jose ,
Deputy Town Clerk
APPROVED:
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