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TC Minutes 04-23-1991MINUTES OF THE-REGULAR MEETING OF THE TOWN COUNCIL,HELD APRIL 23, 1991 - 7:30 P.M. The regular meeting of the Avon Town Council,of the Town of Avon, Colorado, was held in th'e Municipal Building, 400 Benchmark Road, Avon, Colorado, in the Council Chambers. The meeting,was called to order by Mayor Jerry Davis at 7:34 p.m.- A roll call was taken with David Garton, Albert Reynolds, Gloria McRory, Jim Stovall and Tom Ptach present. Councilman Bennett was absent. Also present were-Town Attorney John Dunn, Town Manager Bill-James, Director of Engineering Norm Wood, Director of Municipal Services Larry Brooks, Police Chief Art Dalton, Fire Chief Charlie Moore, Director of Community Development Rick Pylman, Public Relations Officer Teresa Albertson,'Town Clerk Patricia J. Doyle, as well as members of the press and public. The Mayor called for Citizen Input. Debbie Comerford, candidate for the Eagle County School District Board, approached the Council. Ms. Comerford stated that she would like to hear from the Council and listen to their concerns in respect,. to the School Board. Mayor Davis stated that one of the concerns was the issue of the School Finance Act. He felt that the school board needed to join with other- school districts, to lobby legislatures that counties like Eagle should not have to be paying 90-95%-on their own school taxes. He stated that the School Finance Act did equalize money to all districts to take from the rich and give to the poor. He felt that-people have been mislead to'believe that the.school board was responsible for budget cuts. He stated that his other concern was that residents were being taxed more and more and they were receiving less benefits for their children. Councilman Garton had a concern in the schools that English being a second language. He stated that he was one hundred percent against- forcing.Spanish Students to take Spanish. He stated that all their time should be spent on the English language. Councilman-Stovall felt that there was no direction in the School District. Ms. Comerford reviewed her four concerns: 1. The Budget 2. Communication 3. -No direction,-there needed to be stronger guidelines. 4. Need the"best education for the children, there needed to-be a roll model. After some discussion, the Mayor thanked Ms. Comerford for her comments. There being no further Citizen Input, the Mayor closed that portion of the agenda. Second reading of Ordinance No. 91-4, Series of 1991, AN ORDINANCE AMENDING THE WILDRIDGE SPA PLAN BY AMENDING THE LAND USE DESIGNATION OF LOT 38, BLOCK 2, WILDRIDGE SUBDIVISION, FROM DUPLEX USE TO TWO FAMILY LOTS. Rick Pylman stated that there was specific items to this issue. One was Ms. Schneiderman's request, and the other was the general issue of determining a policy on criteria for dividing duplex lots into single family lots. Staff has completed a great deal of research on this issue. He stated that it proved to be a very complex issue and this should be throughly thought through before making any kind of decision. Therefore, staff recommended that Council take action on Ms. Schneiderman's request and then place a moratorium on this issue until a minimum lot size criteria was in place. Staff was requesting input from the Wildridge residents as well as the property owners before making a determination. He stated that Ms. Schneiderman's request did comply with the lot size. It did meet that set backs and site coverage. The Mayor called for public hearing. Derek Pysher, resident of Avon, approached the Council. He felt the Council should take a good look at this issue, the reason being that people who bought in Wildridge bought for a particular purpose, they bought because it was a remote area and not compact as Eagle-Vail was. He stated that this may unbalance property values. He felt that most of the people that were interested in pursuing subdividing their lots, were not really interested in the future of Wildridge. He asked that Council take time to review this issue very carefully. Jerry Vermonti, part owner of Lot 36 of Wildridge, approached the Council. He stated that it was very unprofessional for the Council to approve Ms. Schneiderman's project in lieu of Mr. Pylman's comments. He stated that taking a separate individual, give them approval, and then restrict others in the future, to him, was not proper. He stated that this should be reviewed by the Wildridge property owners. He felt that this issue should be resolved before approving anyone, including Ms. Schneiderman's request. Another resident of Avon and owner of a Lot in Wildridge requested that the Council take their time and evaluate this issue. She was concerned of depleting the open space in Wildridge. -2- Ms. Schneiderman discussed the two issues that were brought up by the property owners. She stated that she did not have a lot to do with their values, or impact that would be caused by her two single family homes. She stated that a precedent had already been set when the Commission allowed the developer to subdivde a multi-family lot into twelve single family homes. This was taken on a per case merit basis. She stated that her particular lot did lend itself toward this. She did not want to be living on top of someone else. She stated that there were no minimum or maximum square footage buildable criteria anywhere in Avon. In the Town of Avon floor, where there were duplexes built within the setback to each other, it had created very little open space and with that issue not being addressed, she felt it was hypocritical not to approve her project even with a 20 foot set back, which would give more green space then if someone built a duplex and filled the entire lot. The homes would be approximately 1700 square feet and the side and back set back would be 20 to 25 feet. She stated the second home would also be less than 2000 square feet, it would be a two story home. The Mayor closed the public hearing and entertained a roll call. Councilman Garton moved approval of Ordinance No. 91-4, Series of 1991 on second reading contingent upon the owner making the 20 foot set back on the side and back lot lines. The motion was seconded by Councilman Reynolds. The Mayor called for a roll call. Those Councilmembers voting aye were David Garton, Gloria McRory, Albert Reynolds and Jim Stovall. Councilman Ptach opposed. The motion carried by a 4 to 1 vote. Resolution No. 91-10, Series of 1991, A RESOLUTION APPROVING FINAL PLAT OF LOT 38, BLOCK 2, WILDRIDGE SUBDIVISION, TOWN OF AVON, EAGLE COUNTY, COLORADO Councilwoman McRory moved approval of Resolution No. 91-10, Series of 1991. The motion was seconded by Councilman Reynolds and was unanimously carried. Resolution No. 91-11, Series of 1991, A RESOLUTION IN RESPECT TO A MORATORIUM FOR APPLICATIONS FOR THE RESUBDIVISION OF DUPLEX LOTS WITHIN THE WILDRIDGE SPECIALLY PLANNED AREA The Town Council felt that November 1, 1991 moratorium and suggested that the resolution 1991. was too long for this be change to read July 1, -3- • • After some discussion, Councilwoman McRory moved approval of Resolution No. 91-11, Series 1991. After further discussion Councilwoman McRory withdrew her motion. Councilman Ptach moved approval of Resolution No. 91-11, Series of 1991 contingent upon the amendments in items 2 and 3, changing the date from November 1, 1991 to July 1, 1991, adding all multi-family lots to the resolution. Also with the exception for the lots that have committed official application and paid their fees for review. The motion was seconded by Councilman Stovall and was unanimously carried. First reading of Ordinance No. 91-5, Series of 1991, AN ORDINANCE CONCERNING THE ACQUISITION OF A FACILITY TO BE USED FOR MUNICIPAL OFFICES AND OTHER PURPOSES OF THE TOWN OF AVON, COLORADO; AUTHORIZING AND APPROVING A LEASE-PURCHASE AGREEMENT, A COMMERCIAL CONTRACT TO BUY AND SELL REAL ESTATE AND RELATED DOCUMENTS AND TRANSACTIONS; RATIFYING ACTION HERETOFORE TAKEN AND RELATING TO SUCH FACILITY AND LEASE-PURCHASE AGREEMENT; PROVIDING OTHER MATTERS RELATING THERETO; AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH. Bill James stated that there was considerable discussion on this issue at the Council work shop. He stated that Dennis Craig, representing Peregrine Group was present. Jerry Butler and Bill Barbush also were present. They were the owners of the Grand-on-Avon. The potential lender for a new loan, Michael Blumenthal was also present to answer any questions that the Council may have. Mr. James stated that hopefully it was at a point where the Council could consider first reading of Ordinance No. 91-5, which provided that the Town of Avon could help complete the building by purchasing 10,000 square feet of commercial space in the amount of one million dollars. It was the Town's intent to use that space for municipal purposes, for at least 5,000 square feet and possibly another 2,000 square feet for offices. Mr. James reviewed a key document, which was an addendum to the commercaial contract to buy and sell real estate (See addendum attached to these minutes). Mr. James stated that there were a couple of concerns that were not included in the document: 1. To research to see if the Bonds could be taxable or not taxable, the reason being that the Town would consider leasing out some of that space. 2. Could there be a third Deed of Trust so the Town could re-sell the space back to the Grand-On-Avon at a later date. 3. To determine the value of commercial space in the Avon area. 4. There was concern of parking. 5. The concern of the timing of completion. If the building was not completed by a certain date, the Bond Issue would no longer exist. -4- • Jerry Butler gave a brief history summary of the Peregrine/Grand-On- Avon project. Dennis Craig gave a brief history of the building. He stated that there were 32 companies that formed the Joint Venture Group that worked on the original project, and foreclosed seven separate S&L's out that went into receivership. Councilwoman McRory had a concern of the parking for the building. She suggested that the owners look at assigned parking for the 10,000 square feet. Bill Barbush had a concern with that request. He stated that if that were given, they would have to provide assigned parking for each marchant. He stated that they would look at that. Councilman Garton moved approval of Ordinance No. 91-5, Series of 1991 on first reading. The motion was seconded by Councilman Reynolds. The Mayor called for a roll call. Those Councilmembers voting aye were David Garton, Albert Reynolds, Gloria McRory, Jim Stovall and Tom Ptach. There were no nay votes. The motion was unanimously carried. The Council recessed at 9:05 p.m. and reconvened at 9:15 p.m. Resolution No. 91-9, Series of 1991, A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES FOR EACH FUND AND AMENDING THE 1991 BUDGET FOR THE TOWN OF AVON, COLORADO. The amendment to the budget of $5,000 was in respect to miscellaneous expenses for the Wildwood Townhomes. Mr. James stated that instead of amending the budget for $5,000, he would like to approach it to begin to pay the fees into a Accounts Receivable Fund. This would be an easier way to handle this item. It was the consensus of the Council to void this resolution. Next on the agenda was the final draft of the Zoning Revisions. Rick Pylman stated that they had set the following schedule: April 30th, 1991, was a public meeting in which the public would be invited for their input; May 7th, the zoning revisions would be taken to the Planning and zoning Commission for formal review; May 14th, the zoning revisions would be brought before the Council for first reading of the ordinance and then second reading would take place on May 28th. He stated that there were a couple issues that needed to be discussed that were not included in the code. 1. The accessary apartment square footage ratio in the shopping center district and the neighborhood commerical district. -5- 2. Single family lots size - they have increased that size from 5,000 square feet to 7,500 square feet. 3. A concern of the Planning Commission was to allow employee housing in a Park District. Possibly go to two different districts; one for municipal buildings and employee housing and one for park uses. 4. In the duplex zone district, which was basically on West Beaver Creek Boulevard, they were allowing a caretaker unit within the duplexes. The way it was worded previously, was two accessory units per duplex unit. Mr. Pylman suggested that the Council may want to change that to one accessory unit. Next on the agenda was discussion of the Forest Service Land Exchange. Mr. James stated that he had met with the Forest Service representative and Harold Williamson to review the possibilities of a land exchange between the two of them and the Town. He stated that the Forest Service recommended that the Town have a preliminary appraisal completed on the two properties. The appraisal would run between $7,000 to $10,000. The Council directed Mr. James to meet with the appraiser to see if that cost could be cut, possibly to $5,000. It was the consensus of the Council to allow staff to destroy the Council recording tapes and the Planning and Zoning Commisssion's recording tapes after a two year period of time. Also, that the recording of the work sessions be deleted. John Dunn's report was next presented to the Council. Mr. Dunn stated that there was a Hearing in District Court in Eagle in Judge Jones's Court on Immediate Possession of the second Confluence parcel to be acquired. Immediate Possession was granted. The Court required a deposit of $4,906.80. -6- • • The Mayor report was next on the agenda. Mayor Davis stated that the Transportation Task Force meeting was scheduled for April 24, 1991 at 8:30 a.m. The Colorado Municipal League Conference was scheduled for June, 1991. All Councilmembers and staff were invited. The Mayor had received a letter from Governor Romer. He was requesting that the Town of Avon consider donating a street light or some streetscape item to the Town of Limon. The Council directed the Town Manager to call the Town of Limon to see what they might need. There was a Transportation Meeting to be held in Grand Junction on Monday, April 29, 1991. Larry Brooks would attend. Under other business: Mr. James presented the Council with a draft of the Financial Statement for 1990. The auditors would be at the work session of May 14th to answer any questions the Council may have. Rick Pylman presented the Council with a copy of the Transportation Master Plan. This document would be presented to the public on Monday, May 13, 1991 and then to Council on May 14th. The Financial Matters were next presented to the Council. Councilman Ptach moved to receive items 7#1 through #4. The motion was seconded by Councilwoman McRory and was unanimously carried. Councilman Ptach moved approval of the General Fund of Accounts Payable for April 23, 1991. The motion was seconded by Councilwoman McRory and was unanimously carried. Councilman Ptach moved approval of the Reconciliation Sheet of Accounts Payable for April 23, 1991. The motion was seconded by Councilwoman McRory and was unanimously carried. -7- w Councilwoman McRory moved approval meeting minutes as presented. The Ptach and was unanimously carried. 0 of the April 9, 1991 Council motion was seconded by Councilman Councilwomlan McRory moved to continue the Council Meeting until April 30, 1991. The motion was seconded by Councilman Ptach. The meeting was continued until April 30, 1991. The Council then retired at 9:50 p.m. -8- The Council reconvened on April 30, 1991 at 6:00 p.m. A roll call was taken with David Garton, Albert Reynolds, Gloria McRory, Jim Stovall Mayor Jerry Davis and Tom Ptach present. Councilman Bennett was absent. The meeting continued with the Council interviewing applicants for the Planning and Zoning Commission vacant seats. At the conclusion of the interviews, the Council appointed the following to the Planning and Zoning Commission: Patti Dixon, Albert Reynolds, Jr., Henry Vest and Derek Pysher. Their terms would be for two years. There being no further business to come before the Council, Council- woman McRory moved to adjourn. The motion was seconded by Councilman Ptach. The meeting was adjourned by Mayor Davis at 7:00 p.m. -9- ADDENDUM TO COMMERCIAL CONTRACT TO BLTY AND SELL REAL ESTATE DATED APRIL __9 19919 BY AND BETWEEN THE TOWN OF AVON, A COLORADO MUNICIPAL CORPORATION, PURCHASER, AND GRAND ON AVON, A MINNESOTA GENERAL PARTNERSHIP, SEDER This Addendum to Commercial Contract to Buy and Sell Real Estate ("Addendum') supplements and amends that certain form Commercial Contract to Buy.and Sell Real Estate (the "form Contract!). In the event of a conflict between this Addendum and the form Contract the provisions of this Addendum shall prevail. Together, this Addendum and the form Contract are sometimes referred to as "this Contract". 1. Payment of Purchaser's Costs. Purchaser hereby acknowledges receipt from Seller of the sum of 5500.00 to be used for Seller's costs in connection with preparing this Contract, and with obtaining related legal and financial advice. Seller agrees that when the Purchaser has drafted an ordinance authorizing this transactippn and the financing thereof and such ordinance has been passed at first reading, Seller snail` immediately thereafter pay to Purchaser an additional $5,000.00 to be used by Seller for the same purposes. In the event that for any 'reason Purchaser and Seller are unable to enter into this Contract or the Contract is terminated, Purchaser shall refund to Seller any unused portion of .such funds, and shall provide to Seller a written accounting of its use of the remainder of such funds. 2. Deposit of 9hase Pace into Escrow. When the ordinance authorizing this transaction and the financing thereof has been finally adopted, Purchaser shall' diligently work to complete its financing and upon closing of such financing shall deposit into escrow the amount of 51,000,000, to be used for the purchase price, in accordance With the terms and conditions of an escrow agreement agreed to by the parties (the "Escrow Agreement"). Among other terms and conditions, the Escrow Agreement shall include the following provisions: a. The escrow funds shall be deposited in an interest-bearing account or accounts acceptable to Purchaser, with all interest or other income thereon for the benefit of Purchaser. b. Concurrently with the deposit of the escrow funds, Seller shall (i) .pay 'to Purchaser an amount equal to its costs and expenses to date related to the Purchaser's proposed financing, including the costs of legal and financial advice, and Purchaser's carrying costs in connection with such money, and (ii) agree to pay any additional costs and expeases in connection therewith as and when incurred, provided Seller's obligations under this subparagraph shall not exceed $60,000. Seller's payment obligations shall be adequately secured to Purchaser's satisfaction. C. The escrow funds shall be used at the closing of this transaction provided all of the conditions of this Contract are fulfilled and Seller is ready, wiling and able to perform its obligations at closing; otherwise, the escrow funds shall be released to Purchaser. d. If at anytime after the escrow is established and prior, to the closing, Seller is in breach of this Contract or the Escrow Agreement, or if Purchaser reasonably concludes that the closing conditions set forth in paragraph 3 hereof will not or cannot within a reasonable time be fulfilled, . Purchaser may at Purchaser's sole discretion terminate the escrow and the escrow funds, together with any interest thereon, shall be promptly returned to Purchaser. 3. Conditions of Closing. a. Approval of Condominium Map and Documents. The parties acknowledge that the Property to be acquired by Purchaser shall be a commercial condominium unit in a to-be-formed condominium regime. All aspects of such condominium regime, including the map, the exact location and dimensions of the Property, the articles of incorporation, the by-laws and any rules and regulations, shall be subject to Purchaser's written approval, which approval may be granted or denied in Purchaser's sole discretion. 'Such right of approval shall include, without limitation, the use of common areas within and around the Building and the allocations of common area costs and expenses. At, the closing, the condominium association must be operating, with adequate reserves established for taxes, insurance, replacements and, maintenance- The hazard and fire insurance for the Building shall be in effect and the policies therefor shall be subject to Purchaser's approval. b. Environmental Matters. Seller shall deliver to Purchaser any and all reports, surveys or, information available to Seller related to the environmental condition of the Building and the Building Land and the existence of any environmental waste or hazardous . materials located on or in any way affecting the Building or Building Land. In this connection, and as an inducement to Purchaser to enter into this Contract, Seller hereby warrants that the Budding and Building Land are free and clear of any hazardous waste or material, that no asbestos has been used in connection with the construction of any of the improvements on the Building Land, and no use of such property is in violation of any enviro=ental or land use' laws, rules or regulations. has occurred, is occurring or will be permitted. In Purchaser's sole discretion, it may obtain an environmental audit of the Building and Building Land, and if for any reason Purchaser is dissatisfied with the environmental condition thereon Purchaser may terminate this Contract. C. Ty-free Financing. The parties acknowledge that Purchaser intends to finance its purchase of the Property with tax-free financing. Purchaser's obligations hereunder are specifically conditioned upon its obtaining such financing in a timely manger at such rates and upon terms and conditions as are acceptable to Purchaser in its sole discretion. d. Completion of Building. In the event the Building is not yet completed when escrow opens, Purchaser shall have the right to approve the plans and specifications and budget for the completion of the Building, and shall be satisfied in its sole discretion that Seller has the ability and adequate financing to assure the timely completion of the Budding in accordance with the approved plans and specifications. Prior to closing, Seller shah provide such evidence as may be -reasonably required that there is no violation at the Property or theBuilding of zoning, building, fire, air pollution or health laws or regulations, and that there are no suits pending or threatened which could affect the Building or the Property. e. Buindout of Property. Prior to closing Setter shall have completed at Seller's expense the improvements of 5,400 square feet of the Property in accordance with plans and specifications approved by Purchaser is its sole discretion. Purchaser shall have inspected and be satisfied with the completed construction and an unconditional certificate of occupancy shall have been issued for the Property, and Purchaser shall be able to fully utilize the Property for its intended purpose without any conditions or delay whatsoever. Lien waivers shall have been obtained for all labor, and material used in connection with such improvements. f Further Agreements of Seller. Seller shall deliver into escrow, to be delivered to Purchaser at closing, written agreements in form and substance satisfactory to, Purchaser, whereby Seller is obligated to pay to Purchaser after closing (i) for each year from 1991 through, 1995, inclusive, an amount equal to the lesser of (a) $75,000 or (b) one-half of the purchaser's annual debt-service obligations in connection with the financing described in subparagraph Ic. hereof, and (ii) during each year until such time as the Building is completed, assessed for property taxes purposes and taxed at full value, the amount, if any, by which $100,000 exceeds the amount of property taxes payable to the Town of Avon on account of the Building and the Building Land. Such obligations of Seller Shan be adequately secured to Purchaser's satisfaction. 4: Seller's Warranties and Representations. Effective as of the date hereof Seller warrants and represents as follows: Authority: Seller is the sole owner of the Property and possesses an right, authority and power to execute and perform this Agreement. ' Leases: There are no Leases, recorded or unrecorded, affecting the Property. 5. Binding . This Contract shall be binding on Purchaser only when it has been authorized by all necessary action of the government of the Town of Avon. This Contract shall inure to the benefit of and be binding upon all permitted assigns and successors of the parties. ~pnxl on^ononr. .^.o n._~o_n~ n•n- ~xr ~n~