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TC Minutes 12-16-19860 0 MINUTES OF A SPECIAL MEETING OF THE AVON TOWN COUNCIL HELD DECEMBER 16, 1986 - 12:00 P.M. A Special Meeting of the Town Council of the Town of Avon, Colorado, was held in the Municipal Building, 400 Benchmark Road, Avon, Colorado, in the Council Chambers. Mayor Nottingham called the meeting to order at 12:10 p.m. A roll call was taken, with Steve Miller, Emilie Harrison, Clint Watkins, Gloria McRory, Al Connell, and Jerry Davis present. Also present were Town Manager Bill James, Town Attorney John Dunn, Director of Public Works/Parks/Recreation Larry Brooks, Director of Engineer- ing/Community Development Norm Wood, Police Chief Joe Olson, Vail Town Manager Ron Phillips, and members of the press and public. The first item of business was Resolution No. 86-30, Series of 1986, A RESOLUTION APPROVING A FINAL SUBDIVISION PLAT AND CONDOMINIUM MAP OF THE FALCON POINTE CONDOMINIUM, LOT 45, BLOCK 2, TOWN OF AVON, EAGLE COUNTY, COLORADO AND FINAL SUBDIVISION PLAT AMENDMENT NO. 4, BENCHMARK AT BEAVER CREEK. The resolution was tabled at the December 9th meeting, to allow Council more time to review it. Mark Mitchell, representing Falcon Pointe, approached the Council. He stated that the problems with Beaver Creek West had been resolved. He presented Council with a letter from Beaver Creek West in support of the Final Plat. The Mayor asked about the status of the Subdivision Agreement. Mr. Mitchell stated that the Agreement had been revised to address the concerns of Mr. Dunn. In response to a question from Council- man Watkins, Mr. Mitchell stated that A.C.P., Inc., was a wholly- owned subsidiary of Columbia Savings. A.C.P. would own the property. He stated that the property had not yet been transferred. Councilman Watkins felt the Subdivision Agreement should reflect the management company's agreement to be liable for payment of the Time-share Use Tax, if the ordinance regarding that tax was passed on second reading. Mr. Dunn stated that the Town's authority to impose liability for payment of the tax on the management companies and homeowners associations was being questioned. If the provision was included in the Subdividers Agreement, liability for payment would become a matter of contract and would not be contingent upon the Town's • • authority being upheld. He recommended approval of the Final Plat, subject to his review and approval of the Subdivision Agree- ment. Mr. Mitchell saw no problem with including language agreeing to liability for payment of the tax. Councilman Watkins was also concerned about the fact that the property had not yet been transferred. Mr. Dunn did not see that as a problem, but stated that approval of the Plat could also be made contingent upon conveyance of the property. Councilwoman Harrison moved approval of Resolution No. 86-30, Series of 1986, contingent upon a provision being added to the Subdivision Agreement wherein the homeowners association and the management company accept liability for payment of the Time-share Use Tax, and contingent upon transfer of the property from Columbia Savings to A.C.P., Inc. Councilman Connell seconded the motion, and it carried unanimously. The Industrial Development Bonds/Landmark Hotel Project was next on the agenda. Mr. James stated that the deal would not go through this year, but the parties involved had not given up and had stated their intent to pursue the project after the first of the year. They had thanked Mr. James and the Council for their support. Mr. James reported on the status of the shopping center. He stated that the Bendelow team still did not have part of their total financing in place, and had not closed on the land as of December 15, the date specified in the agreement. Mr. James recommended that the Town begin to explore all other alternatives that may be available, that the Bendelow team be declared in default of the Developer Agreement, and that the exclusivity of the team's arrangement with the Town be immediately terminated. Councilman Miller agreed, stating that the Town was bound only by the terms of the Agreement, which was now in default. Mr. Dunn recommended that Council terminate the Agreement, based upon the developers' failure to close on the land by the specified date. Mr. James stated that consultant Arnie Ray had begun the process of contacting other developers, and had contacted Wal-mart to explain the situation. Mr. James felt that another development team could be put into place fairly quickly. He asked Council for authorization to contact the land owners directly, to see if a contract on the land could be obtained, on -2- • • behalf of the Town, without incurring any obligation. He felt that negotiations should be initiated with at least three qualified developers. He stated he should have a number of answers for the Council within seven days. Councilman Miller felt the action recommended by Mr. James would send a positive message to Wal-mart Councilwoman McRory moved to declare a default of the Developer Agreement, and to declare the Agreement void. Councilman Connell seconded the motion. Mr. Dunn pointed out that the Agreement also called for an additional $25,000 to be deposited with the Town by December 15th, and recommended that failure to make the deposit be included in the motion as grounds for termination, along with failure to close on the land. Councilwoman McRory agreed to add the words, "based upon failure to close and failure to pay the additional $25,000", to her motion, after the word, "void". Councilman Connell re-seconded, and the amended motion passed unanimously. Mr. Nick Dalba approached the Council, and asked how the developers to be considered would be chosen. He stated his desire to be considered as a developer. Mr. James stated that a limited number of developers would be considered, on the basis of qualifications, experience, contacts with Wal-mart, and financial capability to complete the deal. He stated that the Town had to maintain strict control over the process. Mr. James stated that anyone wishing to be considered had to go through him, first and only. He stated that any parties contacting Arnie Ray or Wal-mart without his specific direction would be automatically disqualified. The Council agreed that Mr. James must be able to control the process, and granted the authorization he requested. The last item of business was a presentation by Vail Town Manager Ron Phillips, regarding the Town of Vail's efforts to buy the Singletree Golf Course. Mr. Phillips stated that the Town of Vail had determined, some two years ago, that there were problems with the quality and availability of play on the Vail Golf Course. Since that time, they had been exploring ways to correct the situation. He stated that the June Creek Ranch Company was first contacted about the possibility of buying Singletree during the week of Thanksgiving, this year. The Town of Vail's primary consideration was to make golf more available to guests and visitors in the area. He stated that no contracts had been signed, and nothing was in -3- • 0 writing. They hoped, however, to close by the end of this year. Mr. Phillips then reviewed Vail's preliminary plans for delegation and reservation of playing time. They planned to reserve half of all rounds played for the lodging community; the rest of the available rounds would be reserved for Singletree property owners and Vail pass-holders. The public would have last priority. Councilman Davis asked what Mr. Phillips thought the Vail Council's attitude might be toward including another party in the purchase. Mr. Phillips stated he had not discussed it with them, and felt the Council's attitude would depend on the specific proposal made. Councilman Davis felt that whatever action was taken, it should be positive action that would encourage cooperation and communication between the two towns. Lengthly discussion followed. Kevin Payne, Executive Director of the Western Vail Valley Resort Association, felt that Vail's purchase of Singletree would be a blow to Avon's guests and its lodging community. He hoped that something could be worked out between the two Councils so that that the interests of the entire valley could be served. Nick Dalba, a local developer, felt that the impacts of Vail's purchase on Avon's future annexation plans should be discussed, in addition to the matter of who was going to get to play the most golf. Ken Sortland, an Avon Metro Board member, felt that it was important to encourage summer and off-season activities in the area, and felt the Vail Council should approach the purchase with that in mind. He stated that cooperation should be encouraged, not competition. Mr. James stated that Avon's position needed to be established, and a specific proposal arrived at, before the Avon Council's meeting with the Vail Council later in the day. Further discussion followed. Mr. Phillips thanked the Council for the opportunity to be present at the meeting, and for the opportunity to discuss the matter with them. As the time for the joint meeting with Vail's Council was approaching, it was agreed to continue on with this meeting to try to work out some sort of a proposal to offer the Town of Vail. Councilman Davis moved to have some sandwiches brought in to the meeting. Councilman Connell seconded the motion, and it carried by a 5 to 1 vote. Council recessed briefly at 1:35 p.m., and reconvened at 1:50 p.m. -4- E r Mr. James stated there was another item regarding the shopping center to be discussed. He stated that the Bendelow team had deposited $75,000 with the Town to guarantee their performance. During negotiations, it was agreed that the Town would keep $20,000, to cover its expenses, regardless of the outcome of the deal, and the rest would be returned to Bendelow. It was Mr. Dunn's opinion, however, that, in light of the default that has occured, the agreement provides for the Town to keep the whole amount. Mr. James felt that the deposit money should be used to obtain a total release from the Bendelow team; if Bendelow agreed to completely release the Town, he would get all but $20,000 back. If the Town could not get a total release, it would keep the entire $75,000. Mr. Dunn stated that, under the agreement, the developers' failure to close on the land entitled the Town to keep the entire deposit, release or no release. He felt negotiations on the matter should be initiated. Councilman Davis suggested that a performance deposit be required of any other developers wishing to become involved, as a condition for being considered. Mr. James felt that the three finalists for developer should be required to put up $100,000, up front. Council agreed with Mr. James' recommendation for handling Bendelow's deposit money, and with his suggestion regarding the deposit that would be required of other potential developers. The Council then went back to the Singletree issue. Mr. James stated he spoke with Don Klinger, of the Berry Creek Metro District, and with most of the Council, about the Town going in with Berry Creek Metro to buy the golf course. He stated the Council should consider the course's performance figures when making a decision. He stated that, if a deal could be made with the Berry Creek Metro District, it would probably be a 50-50 deal. Mr. James then reviewed some of the possible alternatives with the Council. He stated that Mr. Klinger would be more familiar with what would have to be offered to Fred Green and the June Creek Ranch Company to get them to seriously consider selling to Avon. Mr. James went over the preliminary financial projections he had compiled. Mr. James stated that, if the numbers he had were close to being realistic, Council would then have to consider a number of other things: how it would affect some of the other things Council has considered, whether it was a higher priority than the Community Center; whether it was a higher priority than maintaining some of -5- • • the roads in Wildridge; how the purchase would affect the proposed Public Works facility and the proposed street lighting program? He felt that the Town's ability to do those things could be affected by the purchase. He stated that the Council had to consider whether there would be any other opportunity to put in a municipal golf course, some time in the future, also. Mr. Don Klinger approached the Council. He stated that his comments were his own, and did not necessarily represent the rest of the Metro Board. He stated that his main consideration was to try and keep the golf course for the Singletree property owners. He outlined the deal offered by the Town of Vail, as he understood it. He stated he was very interested in anything that would enable Singletree to maintain some of its ownership. He stated that the Metro District has a contract giving it the first right of refusal for the purchase. He stated that they would have 30 days, after Vail submitted something in writing, to try to match or better the offer. Lengthly discussion followed, during which Mr. Klinger reviewed some projected figures and possible alternatives. He emphasized that the information was based upon an incomplete knowledge of all the facts. He also outlined some of his personal ideas on how the deal could be made to work. Councilman Miller felt that the information presented represented more than enough reason to pursue the matter. Mr. Klinger felt very strongly that the course could make money, if it was run correctly. Further discussion followed. Mr. James stated that the next Berry Creek Metro District Board meeting was scheduled for this Thursday, at 8:00 a.m., at the June Creek Sales office. If Council was interested in pursuing the matter, he felt the meeting should be attended by some or all of the Council members. Mr. James felt that Avon should pursue the alternatives with both the Town of Vail and Berry Creek. The Mayor stated that Avon had to offer the sellers something that the Town of Vail could not. Mr. Klinger stated that co-ownership would be the only thing Avon should offer, at this point. Further discussion followed. Councilman Davis felt that Mr. James should go the the Town of Vail's meeting and ask them if they would consider a joint purchase with the Town of Avon and, at the same time, should inform them that Avon would be pursuing some sort of an arrange- ment with Berry Creek. The Mayor agreed. Councilman Connell felt Avon should keep its intentions to itself. Mr. James agreed with Councilman Davis and the Mayor. He also felt -6- 0 • that some Council members should attend Vail's meeting, but did not feel it was necessary for the whole Council to attend. After more discussion, it was agreed that Mr. James would offer the Town of Vail a 50-50 deal for the purchase of the golf course, and would tell Vail that Avon would want 50% of the rounds played. There being no further business to come before the Council, Councilman Davis moved to adjourn. Councilman Miller seconded the motion, and it carried unanimously. Mayor Nottingham adjourned the meeting at 3:15 p.m. Respectfully Submitted: /s/ Barbara R. Joseph, Deputy Town Clerk G' -7- APPROVED: 0 0