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TC Minutes 04-28-1987MINUTES OF THE REGULAR AVON TOWN COUNCIL MEETING HELD APRIL 28, 1987 - 7:30 P.M. The regular 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. The meeting was called to order by Mayor Allan Nottingham at 7:42 p.m. A roll call was taken with Emilie Harrison, Clint Watkins, Gloria McRory, Al Connell and Jerry Davis present. Councilman Steve Miller arrived at 8:00 p.m. Also present were Town Attorney John Dunn, Town Manager Bill James, Director of Engineering/Community Development Norm Wood, Director of Public Works/Parks and Recreation Larry Brooks, as well as, members of the press and public. The Mayor called for Citizen Input. David MacIlveen, resident and businessman of the valley, approached the Council. Mr. MacIlveen discussed softball fields. He was requesting that a study be done to see if part of Tract P and Tract G could be utilized for softball. He stated that possibly bring the current ball field up to standard so that it could be used for ball playing this year for men, women, co-ed, Little League, and T-Ball. He felt that there was a need. Mr. MacIlveen suggested initiating a committee to study the issue, and he, for one, would volunteer his time. He felt it would encourage growth for the community if such activities were available for children, as well as, adults. Patricia Watkins, resident and parent, approached the Council. She felt that it was a much needed activity for the community. She felt that there was enough people to be involved throughout the valley that these kinds of activities were needed. She felt it was very much needed for the children in the area. She stated that she too, would volunteer her time for a committee if the Town Council would give them the go ahead. She suggested that possibly have one member of the town staff as a committee member to that person could contribute information and much needed input. She stated that they were willing to go out and ask for donations for time, equipment, whatever it took to get this issue together. She stated that they need the town's support. Greg Miller, business owner and parent, approached the Council. He discussed the youth baseball program. He stated that last year there were 129 children participating in the program. He stated that out of those 129 children, 55% came from the "949" area. 0 0 Mr. Miller discussed the problems that they have in regard to Maloit Park. Larry Brooks stated that the status of the present ball field was that, twice a week the public works crew drags the field, and have put new bases in. He stated that it was poorly graded and that the drainage was very poor. Mr. Brooks stated that monies were not budgeted this year to repair the field.. Mr. Brooks stated that he thought that $48,000 would cover two fields in that area to get them up to playing standards. For a basic playing field, he thought that $5,000 would take care of the drainage and the regrading of that one field in Tract P. Councilman Davis stated that he would support the study, but felt it should be broader than just the fields in Avon, possibly should be incorporated with what the County was doing. After further discussion, Councilman Watkins moved to authorize the committee of David MacIlveen, Patricia Watkins, and Greg Miller, and to have the Town Manager appoint a staff member to serve on that committee. The motion was seconded by Councilwoman McRory and was unanimously carried. Second reading of Ordinance No. 87-8, Series of 1987, AN ORDINANCE TO CONTRACT AN INDEBTEDNESS OF THE TOWN OF AVON, COLORADO, BY AUTHORIZING THE ISSUANCE OF THE TOWN'S GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BONDS, SERIES 1987, IN THE AGGREGATE PRINCIPLE AMOUNT OF $4,045,000; PROVIDING FOR THE LEVY OF GENERAL AD VALOREM TAXES TO THE EXTENT NECESSARY TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS; PROVIDING DETAILS CONCERNING THE BONDS AND FUNDS APPERTAINING THERETO; RATIFYING ACTION PREVIOUSLY TAKEN CONCERNING SAID BONDS; AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH. This was a public hearing. The Town Manager stated that there were some changes of adjustments made to the ordinance over the last two weeks. He stated that they were not going ahead with the refunding, so the amount of the Bond Issue would now be in the amount of $2,040,000.00. The bonds would be dated as of May 15, 1987, and the closing date would be around June 2, 1987. He stated that originally in the Bond Issue, there was a $60,000 reimbursement for the Town's expenses in develop- ing consulting fees, and legal fees that have occurred over the last 18 to 24 months. Mr. James stated that has been reduced by $10,000. He stated that the Town's participation in buying the public parking was now $1,601,000.00. He stated that this was be- cause during a certain period of time there was interest earned, which was now to be deducted from the total amount. Mr. James stated that the bonds were insured for $33,000, a discount payable to Boettcher and Company of $51,000, and cost of issuance in the amount of $89,000. -2- 0 Mr. James stated that when the Bond Ordinance becomes adopted on second reading, the Council would be approving, along with the ordinance, the Registrar Agreement, the Acquisition Escrow Agreement, the Bond Purchase Agreement, and the Official Statement. He stated that one action would approve all of those documents. He stated that the only document that was not included in those documents was the Exhibit to the Escrow Agreement, which was the Maintenance Agreement of Tract A. This would follow. Linda Clark with Boettcher and Company, approached the Council. Mrs. Clark discussed the interest rates and the process of the bonding procedure. She stated that Capitol Guarantee Insurance Company was insuring the bonds. They were triple A rated by S&P. The Mayor then entertained a motion. Councilman Miller moved approval of ordinance No. 87-8, Series of 1987 on second reading. The motion was seconded by Councilwoman Harrison. The Mayor then opened the meeting for public hearing. Ken Sortland, resident and contractor of the area, approached the Council. He stated that this project would hopefully bring in some revenue to the Town and also jobs. He had hoped that there were some safeguards for the Town that if the funding did not go through, the Town would be protected. He stated that the Town Manager confirmed that those concerns were safeguarded, but also stated that there are risks in everything. Mr. Sortland also stated that he would encourage the developer to use local contractors to help on the project. The Town Manager again, reviewed the Developers Agreement with the Council and the public in regard to the safeguards of the Town. Steve Szymanski of Palmer Development, approached the Council. He stated that they felt that the project was going to work, and that they were proceeding forward, that they would take the risk of $135,000. There being no further discussion, the Mayor closed the public hearing. The Mayor called for a roll call on the motion. Those Councilmembers voting aye were Emilie Harrison, Steve Miller, Clint Watkins, Gloria McRory, Al Connell and Jerry Davis. There were no nay votes. The motion was unanimously carried. Second reading of Ordinance No. 87-10, Series of 1987, AN ORDINANCE AMENDING CHAPTER 3.32 OF THE MUNICIPAL CODE OF THE TOWN OF AVON AS IT RELATES TO THE TAX ON THE USE OF TIME-SHARE UNITS AND PROVIDING PENALTIES FOR THE VIOLATION THEREOF. This was a public hearing. -3- • The Town Attorney stated that there was some discussion at the last meeting of submitting this ordinance to the Council for second reading pending discussion with the representatives that would be responsible for payment of the increased fee. Mr. Dunn recommended that the matter be brought up for public hearing for any comment by representatives of Christie Lodge. He felt that tabling the ordinance would be in order for the fact that the figure established in the ordinance was one of a figure to start discussions. Councilman Watkins moved approval of Ordinance No. 87-10, Series of 1987 on second reading. The motion was seconded by Councilman Connell. the Mayor opened the meeting for public hearing. There being no one wishing to be heard, the Mayor closed the public hearing. Councilman Miller moved to table Ordinance No. 87-10, Series of 1987. The motion was seconded by Councilman Connell and was unanimously carried. First reading of Ordinance No. 87-11, Series of 1987, AN ORDINANCE CONCERNING TOWN OF AVON, COLORADO, THE TOWN CENTER MALL IMPROVEMENT DISTRICT; CONFIRMING A NEW ASSESSMENT ROLL TO'`INCLUDE WITHIN SAID DISTRICT A CERTAIN TRACT OMITTED THEREFROM; ASSESSING THE COSTS OF THE MALL AND PARK IMPROVEMENTS THEREIN AGAINST SAID OMITTED TRACT; AND PROVIDING OTHER DETAILS IN CONNECTION THEREWITH. The Town Attorney stated that this was a public hearing on the report of the Engineer and Assessment Roll. He stated that by an Order entered on March 18, 1987, District Judge Jones found that the property description by which Avon Center was included as part of the Town Center Mall Special Improvement District was erroneous, and therefore that particular property was in fact, not included within the District, and not subject to the lien for the Assessment which was levied. He stated that five weeks ago, in response to that decision, a resolution (87-9) was adopted on March 24, 1987, which gave legal notice that on April 28, 1987 at 7:30 p.m. the Town Engineer would report to the Council the amount of which would be borne by the Tract determined by the District Court to have been omitted from the assessment and to make a new assessment roll in an equitable manner with reference to the benefits received. A certified copy was mailed to the owner of the property, which was called, Avon Center. Mr. Dunn stated that the Council had before them a proposed ordinance which would be adopted on first reading and then second reading would be held two weeks from now. Mr. Dunn stated that the hearing on the assessment was being held at the present time. Norm Wood, Engineer for the Town of Avon, approached the Council. He stated that a Mall Agreement was approved on April 16, 1981. The Mall includes the -eastern end of Tract G, which is a narrow strip that runs between the Avon Center property, and the Peregrine Project. It is also boardered by Lots 61 and 56. The Mall varies from 50 feet wide, and encompasses the detention pond and the tennis court. -4- 0 0 The original Mall Agreement established a cost of the Mall of $600,000, and also allocated costs between the various properties along the Mall to establish a method of assessing. Following the original Mall Agreement there was a First Amendment to the Mall Agreement. That Amendment revised the planning and construction cost to $1,136,000. He stated of that amount, $226,000 was to come from the Town of Avon and $910,000 from the land owners adjacent to the Mall. The First Amendment also provided for Special Assessment Bonds to provide for the portion of the private financing for that part of the project. He stated that Ordinance No. 81-26 created the Town Center Mall Improvement District and provided the levying of the assessements for the cost of the Mall Improvements and also provided that the land owners have the option of either making semi-annual payments-70r, pay the initial assessment. He stated that in addition to that, the mall assessments were to be made by commerical properties if it was a mixed use project, which was covered in paragraph 4, in the Mall Agreement. He stated that in the Avon Center Declarations it provided that the mall payments--We-re--limited.-.to the commercial limited-common elements by way of responsibility for the mall assessment. He stated that Avon Center made._,a total of four payments on the original assessment of $456,820, which was based upon total mall boundary for the purposes of assessment of 1973.92 feet with Avon Center having the frontage on the mall of 991.59 feet, or 50.20. The total assessment or responsibility of the Avon Center property was 50.20 of the total of $910,000 for $456,820. Of that $456,820, four payment were made for a total of $114,205 on the principal, leaving a balance due of $342,615 at the stipulated interest rate of 13.25% and from the date that this amount first became past due, a total interest has accrued of $71,515.02 for a total balance due today of, $414,130.02. Councilman Miller moved approval of Ordinance No. 87-11, Series of 1987 on first reading. The motion was seconded by Councilman Davis. The Mayor noted as per the Town Attorney that the meeting would be open for public hearing on the Assessment Roll. Daniel Frost, Attorney representing Western Gulf Savings and Loan Association, approached the Council. Also with Mr. Frost was Mr. Jim Lindsey, a consultant for Western Gulf. Mr. Lindsey was representing the other participants in the loan, which was being foreclosed. Mr. Frost and Mr. Lindsey were requesting that Council not adopt Ordinance No. 87-11. He stated that Western Gulf felt very strong about this matter and were prepared to contest. He stated that they were before the Council in the spirit of cooperation and good faith. He stated that Western Gulf had already picked up a tremendous burden when they took over the property. He stated that when the budgeted amounts were paid, Western Gulf and its participants would be putting in over $800,000 into the property. -5- He stated that this reassessment would be an additional burden that would be too much for Western Gulf to bear. Mr. Frost stated that Western Gulf felt that the assessment was something that occurred after the fact. He stated that Western Gulf was not aware of the assessment when they made the loan. They felt that it was unfair that after the loan was made, after it was disbursed, after the loan did not materialize, that they then learned of this assessment and a pick up of an excess of $300,000 liability that they were not aware of. They felt it was not fair. They also felt it was unfair to reassess the property when an Appeal from the previous assessment was still pending. They felt that the value to the property of the pedestrian mall was not in the $400,000 range as it had been assessed. He stated that he had in his possession, an appraisal which indicated the property of Avon Center, today, was worth a little more than three and a half million dollars, which was substantially lower than the value that was attributed to this property at the time of the assessment. He then presented the Town Attorney with a Written Objection, which detailed how they felt about the proposed ordinance. Mr. Lindsey stated that the appraisal that was done, was on the two commercial floors; the retail and office floor and the vacant land. Councilman Davis stated that it would appear that the property would become a lot more valuable to someone purchasing it, if there was an ongoing mall situation, that they would be able to develop the remainder of that property and provide the kind of quality, that someone purchasing the property would want. He stated that he would like to hear some other alternatives. Mr. Lindsey stated that Western Gulf would no longer be the lead lender after April 29th. He stated that Western Gulf would be participating, but would not be the lead participant. He stated that the property would be cleaned up, the incomplete construction would be finished, and adequate parkifig would be brought to the property. Discussion followed. Mr. Frost recommended that the ordinance be tabled, and that they be able to return to the Council in a week or two with the concrete proposals about how the Town and the Avon Center could make the best of a bad situation. Councilman Miller stated that he was not sympathetic to tabling the ordinance on first reading based on the testimony of Mr. Frost and Mr. Lindsey stating that, they did not know of the assessment. He stated that he was ready to take action on the ordinance. Councilman Connell stated that he was willing to give them two weeks. Councilman Watkins stated that he agreed, but so far the Council had not seen any indication of a willingness that they would return with a payment plan. Councilman Davis agreed with Mr. Connell if, they would return in two weeks with a concrete proposal. Councilman Connell moved to table p>r:dinanc.e. No. 87-11, Series of 1987 until the next regular meeting. The motion was seconded by Councilman Davis. -6- 0 0 The Town Attorney stated that he requested that he wanted placed in the record, three exhibits in regard to the Assessment Roll and the Ordinance, which were: 1. The Condominium Declaration of Avon Center at Beaver Creek I; 2. The Mall Agreement dated April 16, 1981; 3. The First Amendment to the Mall Ageement dated September 8, 1981. A copy of these documents would be placed in the Council's packets for their information. The Mayor called for a motion to table. The vote on the motion was Councilmen Davis and Connell voting in favor. Councilmembers Harrison, Watkins, Miller, McRory opposed. The motion died. The Mayor called for a roll call on the original motion. Those Councilmembers voting aye were: Gloria McRory, Steve Miller, Clint Watkins, Emilie Harrison. Those Councilmembers voting nay were: Jerry Davis and Al Connell. The Ordinance passed on first reading, public hearing and,second reading would be heard in two weeks. Resolution No. 87-10, Series of 1987, A RESOLUTION APPROVING FINAL PLAT OF MOUNTAIN CENTER, A RESUBDIVISION OF LOTS 26 AND 27, BLOCK 1, TOWN OF AVON, EAGLE COUNTY, COLORADO, AND FINAL SUBDIVISION PLAT AMENDMENT NO. 4, BENCHMARK AT BEAVER CREEK. Norm Wood stated that Vail Building Arts Association and Colorow Squaw Creek submitted a Final Plat for Mountain Center. The Plat vacates the common lot line and utility easement between Lots 26 and 27, Block 1. He stated that the town staff reviewed the information and found it to be in general conformance with the Town's Subdivision Regulations. Mr. Wood recommended that Resolution No. 87-10 be approved subject to amending the #1 condition, that the letter from Holy Cross Electric Association agreeing to the vacation of the utility easements be deleted, and to insert that a letter from Upper Eagle Valley Sanitat Qn:-. District was needed instead; #2, that the completion and execution of all certificates in a manner satisfactory to the Town Attorney prior to filing with the Clerk and Recorder of Eagle County. Councilman Miller moved approval of Resolution No. 87-10, Series of 1987 with the amendment to condition #1 be made. The motion was seconded by Councilwoman Harrison and was unanimously carried. The Town Attorney requested that the Council refer back to ordinance No. 87-11 for reconsideration for the purpose of two amendments to the ordinance. He stated that there was a substantial difference between Ordinance No. 87-11 and the report of the engineer as to the amount of the assessment. He stated that the total assessment be changed to "$414,130.02". He stated that there was also an error in the description that Avon Center was using in their Deeds. He stated that according to the Plat on file at the town, Condominium Unit "1112/1113" was to be changed to "1113". -7- The Town Attorney recommended that Council move to reconsider the adoption of the ordinance, then Council move to amend the amount of the assessment in the ordinance and change the description, then move to re-adopt the ordinance on first reading. Councilman Watkins moved to reconsider Ordinance No. 87-11. The motion was seconded by Councilman Miller and was carried with Councilman Connell opposing. Councilman Miller moved to amend the ordinance by changing the amount of the assessment to "$414,130.02", and to change the description from Condominium Unit "1112/1113", to "1113". The motion was seconded by Councilman Watkins. A roll call was taken and was unanimously carried. It was stated that the Town Attorney was to redraft the ordinance for posting, and to forward a revised copy to Mr. Frost. Councilman Miller moved approval of the adoption of Ordinance No. 87-11, Series of 1987 on first reading. The motion was seconded by Councilwoman McRory. A roll call was taken with Emilie Harrison, Steve Miller, Clint Watkins, Gloria McRory and Jerry Davis voting aye. Councilman Connell voted nay. The motion carried to adopt Ordinance No. 87-11 on first reading by a 5 to 1 vote. The Town Attorney reported on the PPL Litigation. He stated that a Chapter Eleven Petition was filed two weeks ago in Bankruptcy Court. He stated that it was filed the day before the scheduled Public Trustee Sale was to occur. He stated that he has been in contact with the attorneys for Magnet Bank. Magnet Bank was first to file in Bankruptcy Court for the relief of Automatic Stay, and the Town has filed a similar Motion. Mr. Dunn stated that the Motion filed was requesting that the Stay be lifted, and to proceed with the Foreclosure Assessment on the grounds, that the Town's ability to pay its bonds off would be impaired by the effect of the bankruptcy laws. The hearing for the Bankruptcy Court was set for May 14, 1987. He stated that at that hearing, the Town had to show what the property was worth, and that would be done by an appraisal of the property. He stated that the total figure for that project was around Thirty Million dollars, but the appraisal would probably show around Ten Million dollars. Discussion followed. Council was not comfortable with the Town spending money for an appraisal and felt it was the obligation of the other party involved. The Town Attorney stated that he could not rely on Magnet Bank having an appraisal done on the project, he stated that the Town had to have its own appraisal done. -8- Councilman Miller moved approval of participation of an appraisal, and also to have Jack Schroeder of Van Scoonerveld and Associates to participate in the hearing, and to approve such expenses that may occur as necessary for expert witnesses in connection with the bankruptcy hearing. The motion was seconded by Councilman Watkins and was unanimously carried. Next on the agenda was the appointments of four, out of fourteen applicants, to sit on the Planning and Zoning Commission Board. The Council voted by closed ballots. After a second count, because of a mis-count and a tie between two of the applicants, Councilman Miller moved to appoint the following to two year terms: Pat Cuny, Mark Donaldson, Tom Landauer; re-appointments, and Frank Doll was a new member. The motion was seconded by Councilman Davis and was unanimously carried. Councilman Connell moved that a resolution be drafted in appreciation of Jeffrey Maddox for his services to the Planning and Zoning Commission Board, and that letters be sent to the other applicants. The motion was seconded by Councilman Davis and was unanimously carried. The next item on the agenda was discussion of an Editorial that appeared in the Avon/Beaver Creek Times in regard to fishing in Nottingham Lake. The Town Manager stated that Cliff Thompson wrote an article in respect to possibly putting some restrictions on fishing in Nottingham Lake, possibly use lures and flies only, and to possibly set some guidelines. He stated that they have not had a chance to review this matter with Bill Andre, who was responsible for stocking the lake. He stated that they may have some concerns. Councilman Davis stated that he was not totally in favor of limiting it all together, but was not opposed to consider it either. Mrs. Mark Donaldson stated that the lake and park was a family oriented, and to have restrictions for fishing in Nottingham Lake would deprive the children of having the thrill of catching fish out of that lake. She was not in favor of the restrictions. The Mayor agreed that you cannot deprive the children of fishing. No action was taken. Next on the agenda was a report on the 1041 hearings. Norm Wood reviewed the hearings with the Council. He stated that they have recessed the hearings until May 14th and 15th, 1987. At that time, hopefully, the Town would be heard. The Mayor suggested that the Town take a position on this issue. It was suggested to draft a resolution to show the Town's opposition to the 1041. -9- 0 0 Next was the report on the Avon/Frisco Land Exchange. Mr. James reported that he had met with the Colorado Wildlife Division and the Regional Wildlife Division on April 16, 1987. He stated that he has had further discussions with Tom Glass. Mr. James stated, other than any further direction from the Town Council, he felt the solution to their problems were between the developer and Western Land Exchange. If they want to deal with development on six acres, they should resolve those issues between themselves, and then at the time they request zoning with the Council, the developer should come in to request specific zoning with those limitations, and that the Town Council would consider those at that time. No action was taken. Contracting out Bus Service was next reported to the Council. Mr. James stated he had reviewed a Letter of Intent that Vail Associates had given Resort Express. He stated that the Town would probably have a similar Letter of Intent presented to the Council at the next meeting. No action was taken. Councilman Davis moved approval of extension of time for filing Final Plat for Eagle Bend Subdivision requested by Jeff Spanel. The extension was for an additional sixty days. The motion was seconded by Councilman Miller and was unanimously carried. The Mayor stated that he would be absent for the next Council Meeting, but would return for the May 26th meeting. The Financial Matters were next presented to the Council. Councilman Miller moved approval of the Cosgriff, Dunn and Abplanalp bill. The motion was seconded by Councilman Connell and was unanimously carried. Councilman Miller moved approval of for April 28, 1987. The motion was and was unanimously carried. the General Fund of Accounts Payable seconded by Councilman Connell Councilman Miller moved approval of for April 28, 1987. The motion was and was unanimously carried. the Transit Fund of Accounts Payable seconded by Councilwoman Harrison -10- 0 0 Councilman Miller moved approval of the Reconiliation Sheet of Accounts Payable for April 28, 1987. The motion was seconded by Councilwoman Harrison and was unanimously carried. The minutes of the April 14, 1987 Council Meeting was next presented to the Council. Councilman Miller moved approval of the April 14th meeting as presented. The motion was seconded by Councilman Connell and was unanimously carried. Councilman Miller congratulated Larry Brooks and staff on a very well organized Easter Egg Hunt. Councilman Watkins stated that he would like to form a committee to look into the possibility of Charter Amendments to be included in the next election. He asked if anyone would like to sit on that committee. There being no one, Councilman Watkins stated he would start on the research, and would entertain any input from the Councilmembers. Councilman Miller stated that in regard to the Mountain Man Triathlon Summer proposal, that Ted Martin should appear before the Council in a form of proposing the date of possibly July 12, 1988. Councilman Miller felt it was too short of time of putting all these events in any kind of proper order in such a short time. Councilman Connell agreed, and felt it should be discussed in a meeting. Mr. James stated that in regard to the softball fields. ball field could be ready for this summer as to, T-Ball League. Mr. Brooks stated that the one field was ready drainage problem. It was the consensus of the Council The Council would like one good playing field for this the committee worry about the scheduling, but the Town assistance if time allowed. More time should be taken locations. The Council agreed. He asked if the and Little except for the to go ahead. year, and let would give with other -11- There being no Watkins moved Connell. The APPROVED: 0 it further business to come before the Council, Councilman to adjourn. The motion was seconded by Councilman meeting was adjourned by Mayor Nottingham at 10:20 p.m. -12-