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TC Res. No. 2005-26 APPROVING AN AGREEMENT AND PLANS IN CONNECTIONTOWN OF AVON, COLORADO RESOLUTION NO. 05-26 SERIES OF 2005 A RESOLUTION APPROVING AN AGREEMENT AND PLANS IN CONNECTION WITH THE ACQUISITION OF POTENTIAL FUTURE PHASE, AVON TOWN SQUARE COMMERCIAL CONDOMINIUMS, LOT 2, PHASE II, AND RATIFYING ALL ACTION HERETOFORE TAKEN BY THE STAFF OF THE TOWN WHEREAS, the Town Council has heretofore directed, authorized and budgeted for the acquisition of Potential Future Phase, Avon Town Square Commercial Condominiums, Lot 2, Phase II; and WHEREAS, negotiations have taken place which have resulted in a partial settlement of issues between the Town and the interested parties; NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. The PERMANENT PARKING EASEMENT, a copy of which is filed in the minutes of this meeting, is approved. Section 2. The design plans for construction of a parking lot on a portion of Tract F, Block 2, Benchmark at Beaver Creek, a copy of which is filed in the minutes of this meeting, are approved. Section 3. All action heretofore taken by the staff of the Town of Avon directed toward the forgoing purpose is hereby ratified, approved and confirmed. ADOPTED at a regular meeting of the Town Council of the Town of Avon the 28th day of June, 2005. OF 4;" SHA1. ATTEST: COL Ou® P." ' To C erk I • ' . INI~I~ININIVIIINNNINI~IIIIIIIIYI!Ipl Teak J Sitionton Eagle, CO .173 R 125 PERMANENT PARKING EASEMENT THIS PERMANENT PARKING EASEMENT (this "Easement'") is made this 20 day of_ 2005, by and between AVON TOWN SQUARE., LOT 2, CONDO FOCIATION, a Colorado nonprofit corporation formerly known as Avon Town Square, Lot 2, Commercial Condominiums Association, Inc. and Avon 'own Square, Phase II Commercial Condominium Association, Inc., hereinafter referred to as the "Association", and the TOWN OF AVON, a Colorado municipal corporation, hereinafter referred to as "Town". WHEREAS, the Association is the unit owners' association for the Avon Town Square, Lot 2, Condominiums (the "Condominium"), a condominium common interest community within the meaning of the Colorado Common Interest Ownership Act, and the membership of the Association is comprised exclusively of the owners from time to time of all of the condominium units in the Condominium; and WHEREAS, Town has instituted proceedings to acquire by condemnation a portion, of the common elements of the Condominium, including parking spaces used by members of the Association, their tenants and invitees (the "Condemned Tract"), which proceedings are captioned as Town of Avon v. A.T.S. Joint venture, et al., Case No. 05-CV-1 68 in the District Court of Eagle County, Colorado (the "Condemnation Action"); and WHEREAS, the Association has claimed on behalf of its members in the Condemnati on. Action that, among other things, the units in the Condominium will be damaged by the loss of parking spaces that are required by the ordinances of the T own and are essential to the businesses and other activities conducted in units of the Condominium; and WHEREAS, Town owns fee simple title to the real property legally described on Exhibit "1 ",attached hereto, and referred to herein as the "Easement Tract"; and WHEREAS, to resolve certain compensation and damage claims in the Condemnation Action made by A.T.S. Joint Venture and the Association, Town has offered to the Association to-grant an easement and make covenants and agreements contained in this Easement, including the granting to the Association of a perpetual and exclusive easement upon, over, across, in and through the Easement Tract for the purpose of providing surface parking to replace parking on the Condemned Tract for the permittees of the Association, and for the members of the Association and their respective tenants and the permittees of such members and.tenants, all as more particularly described in this Easement; and WHEREAS, the Town's offer has been accepted; I I I'l _-1, NOW, THEREFORE, in consideration of the premises and the covenants and agreements set forth herein, it is agreed as follows: G:lKf.IIMEE C:OM9AW C "L 1 O f ~ 923949 Page: 1.of 23 07/27/2005 10:55A 00 D 0.00 p. f . Town hereby grants and conveys to the Association and its successors and assigns, for the benefit of the Association and its.successors and assigns, and for the benefit of the members of the Association and its successors and assigns from time to time and the heirs, representatives, successors, and assigns of such members (such benefited parties being the `Benefited Parties"), a perpetual and exclusive easement upon, over, across, in and through the Easement Tract. for the purposes of (a) parking motor vehicles used by the permittees of the Association and its successors and assigns and the members of the Association and its successors and assigns and their respective permittees, including but not limited to employees, invitees and tenants of such members, and employees and invitees of such tenants, and (b) vehicular and pedestrian access, ingress and egress to and from the Condominium and the Easement Tract, and (c) maintenance, repair and replacement of the paving and other improvements to the Easement Tract. 2. Town acknowledges that certain parking areas available ,to the Association have, both formally through a cross easement declaration, and informally, been used in common with certain parking areas available to permittees and members of the unit owners' association for the Avon Town Square Commercial Condominiums (hereinafter referred to as the "Lot 1 Association") and the tenants of such members and their respective permittees. Town expressly consents to the inclusion of any or -all of the parking spaces on the Easement Tract (or in any relocated parking lot described in Section 9) in any such formal or informal arrangement between the Association and the Lot I Association. 3. In full accordance with the design and construction plans attached hereto as Exhibit "2" (which'include relevant drainage and access details), and in full accordance with all ordinances, codes, regulations and other requirements of the Town, Town agrees to construct a surface parking lot, to-serve at least 40 vehicles, on the Easement Tract for the purposes described in this Easement. The Association shall not be required to relinquish possession of the Condemned Tract until such time as this parking lot is fully constructed by Town and available for'immediate use by the Association and its members. -In constructing said parking lot on the Easement Tract, Town's contractors,, shall obtain access, whenever possible, from the Avon Road right-of way area, thereby avoiding access through the existing parking areas serving the Association or the Lot 1 Association. 4. Town acknowledges and agrees that, by virtue-of the rights granted in this Easement, the Condominium will be in full compliance with all applicable ordinances, codes, regulations and other requirements of Town concerning off-street surface parking, without the use of the parking lot on the Condemned Tract, and that the inclusion of any or all of the parking spaces on the Easement Tract (or in any relocated parking lot described in -2- Section 9) in any formal or informal arrangement between the Association and the Lot 1' Association, as described in Section 2, will not result in failure of the Condominium to be in such full compliance. 5. The Association shall maintain the parking surface of the Easement Tract in a smooth and evenly covered condition with the same type of surfacing material which is originally installed or a substitute which shall in all respects be at least equal in quality, use and durability. Any substitute material shall be subject to the prior reasonable approval of the Town. In the event Town determines that the Association has not adequately maintained the parking lot in accordance with the terms of this Easement, Town shall give written notice to the Association to that effect and Association shall have thirty (30) days from receipt of notice within which to perform any necessary maintenance; provided, that if by reason of weather or other factors outside the reasonable control of the Association the necessary work cannot be completed within such 30-day period, the Association shall have such longer period as is reasonably necessary to complete the work. If the Association fails to perform the necessary maintenance within such period, Town may perform such maintenance and bill Association the reasonable cost thereof, which amount shall be paid by the Association. 6. The Association shall remove trash and accumulations of snow and ice from the parking lot constructed by Town on the Easement Tract as required by the general ordinances of the Town. The Town agrees that the Association may move accumulated snow from such Parking Lot and the Easement Tract and store it off of the Easement Tract on the southwestern portion of the remaining Avon Road right-of-way area, as indicated on Exhibit "2". As reflected on Exhibit "2", there are existing utility facilities within the Easement Tract that may be maintained, repaired, or enlarged from time to time by the utility providers. Given this fact, Town agrees to place all reasonable restrictions upon such utility providers in maintaining, repairing or enlarging such facilities that are within the Town's authority to impose, so as to minimize to the greatest extent possible, any interference with parking on the Easement Tract. To this end, Town shall strictly enforce all applicable municipal requirements against such utility providers, as identified in Chapter 12.04 of the Town's Municipal Ordinances, including, but not limited to, application, permitting, notice, and restoration and repair requirements. Town further agrees in keeping with the exclusive nature of this Easement, that any utility provider not currently having utilities within the Easement Tract not be permitted to install such utilities without the prior written consent of the Association, which consent cannot be unreasonably withheld. -3- 7. Town shall maintain the landscaping on and around the Easement Tract within the Avon Road right-of-way. For the purposes of this provision, the Town's maintenance responsibilities shall include maintaining landscaping within the area between the edge of the surfaced parking lot and the boundaries of the Easement Tract. 8. Town agrees. to stripe the parking spaces in the Easement Tract substantially in the pattern shown on Exhibit "2" attached hereto, and the Association, when necessary, will re-stripe the same.. 9. Town shall have the right, in its discretion and at its own cost and expense, to relocate all or-'any portion of the parking lot located on the Easement Tract to any Town controlled parking lot (surface or structured) that will (a) be reasonably accessible to and from the Condominium and not be separated from it by any material barrier to pedestrian traffic, `(b) contain parking spaces for at least forty (40) vehicles which are allocated to the exclusive use and enjoyment of the Association and the other Benefited Parties of this Easement, (c) contain no parking spaces (allocated for the exclusive use of the Association and the other Benefited Parties) that are more than 300 feet from the nearest property line of the Condominium, and (d) not result in a failure of the Condominium to comply with all applicable ordinances, codes, regulations and other requirements of Town concerning off-street parking. Said relocated parking lot shall be comparable in practical utility to the parking on the Easement Tract and shall result in no increase in the Association's overall costs for providing and maintaining parking. Upon the construction and availability of the new parking lot for the Association's use, and the execution of a new Permanent Parking Easement to address the use of the new parking lot, this Easement shall terminate. In any event, should the parties mutually agree in writing that there is no longer a need to use the Easement Tract for parking, this Easement shall terminate. 10. The Association will maintain liability insurance insuring against liability for its activities described in this Easement on or about the Easement Tract. Such insurance coverage shall include workers compensation insurance as required by statute, and general commercial liability insurance in the amounts of not less than $ 1,000,000 per occurrence and $2,000,000 in the aggregate. The Town will be named an additional insured on the commercial liability policy. 1 l . Land Title Guarantee Company ("Land,Title") shall issue a title policy for the easement created by this Easement identifying the Association as insured for a coverage amount of $2,000,000. Town shall pay the premium for $600,000 of this insurance amount (approximately $813.00) with the Association paying the balance. The premium amount to be paid by Town is a compromise figure which is not intended by Town to -4- represent the amount of parking damages resulting, from the condemnation of the,Condemned Tract. Title Commitment Order No. VC50010162-4 identifies, as Exception No. 11, certain Declarations,'Protective Covenants and amendments thereto, as contained within an instrument recorded April 7, 1975 in Book 239 at page 249; an instrument recorded July 19, 1979 in Book 288 at page 567; an instrument recorded April 23, 1985 in Book 411 at page 960; and an instrument recorded February 7, 1990 in Book 522, at page 721, all in the Clerk and Recorder's Office of Eagle County (the "Protective Covenants'). Land Title has agreed to insure over Exception No. 11 for a fee of $191.00, which shall be paid by the Association. Town understands that the primary purpose of this Easement is to allow for the use and enjoyment of the Easement Tract for parking purposes by the Association and the other Benefited Parties in accordance with this Easement, and that the Association has waived compensation and damages in the pending condemnation action in reliance upon this Easement providing adequate and comparable replacement parking for the parking lot being taken in that action. Should the Town's right to convey, this Easement or the use of the Easement Tract for parking purposes be challenged by any persons or entities as being in contravention of or in violation of the terms and conditions of the Protective Covenants, Town agrees to defend against such claims at no cost or expense to the Association, and, subject to the limitations imposed by the Colorado Governmental Immunity Act, C.R.S. §24-10-101, et. seq., Town also agrees to indemnify and hold harmless the Association, its successors and assigns and other Benefited Parties from and'against any and all claims, judgments, liens, losses, damages, costs and'expenses, including without ,limitation reasonable attorney fees, arising out of such claims. Notwithstanding the Town's defense of such claims, should it be determined that the Easement Tract cannot be used for parking purposes in accordance with this Easement because such use is in violation of the Protective Covenants, the Town shall, at its exclusive cost and expense, seek to condemn the Protective Covenants so that they no longer preclude the use of the Easement Tract for parking purposes. - In the event the Town is unsuccessful in condemning said Protective Covenants; the Town shall immediately provide replacement parking for the Association in keeping with all of the terms, conditions and requirements, of paragraph 9 above. In the event that such replacement parking is not available, Town shall pay the Association any and all damages suffered by the Association or any of the other Benefited Parties in connection with the loss of parking due to the inability to use the Easement Tract in accordance with this Easement and the impact that'such loss has on the Association's remaining property, on the remaining property in the Condominium, on the Condominium units and on the Condominium unit owners. Said damages shall be resolved either by way of settlement or, if settlement is not possible, by a court proceeding. -5- 12. In any action to enforce or contest any provision of this Easement, or to obtain a declaration of the rights or responsibilities of any party ("Easement related action"), the prevailing party shall be entitled to recover all costs and expenses, including reasonable attorneys' fees, incurred by such party in connection with such action. The following shall apply with respect to any Easement related action filed on behalf of the Benefited Parties under this Easement: (a) Subject to the provisions of this Section 12, any Easement related action may be filed only by the Association or its successor as the unit owners' association for the Condominium, or, if neither the Association nor any such successor exists, then only by such person or entity as may have been designated in writing by a majority in interest (and not a majority in number) of the then existing owners of the property now comprising the Condominium. (The Association or other person or entity authorized to file an Easement related action on behalf ofthe Benefited Parties pursuant to the preceding sentence is referred to as the "Enforcing Party.") (b) In the event that an Enforcing Party files an Easement related action, the Town, for itself and its successors and assigns, hereby waives and agrees not to assert any defense or claim in the Easement related action, to the effect that such Enforcing Party does not have capacity or standing to file such an action or is not the real party in interest, or that any other Benefited Party is necessary or indispensable to the action. (c) If the Town or its successor or assign breaches'any of the terms of Subsection (b) of this Section 12, an Easement related action may then and thereafter be filed directly by any of the Benefited Parties. (d) The purpose and intent of this Section 12 is to provide for an orderly and efficient procedure for handling any Easement related action under this Easement, and this Section 12 shall not, and shall not be construed to limit or otherwise adversely affect any of the substantive rights of the Benefited Parties under this Easement. 13. This Easement may be modified or terminated only by a written instrument executed by both Town and the Association. 14. Ongoing financial obligations of the Town shall be subject to annual appropriation as part of the Town's budgetary process. It is declared to be the present intention of the Town and its Town Council that the obligations of the Town under this Easement be included in its budget for the duration of this Easement. Nothing contained in this Section 13 and no failure of the Town to appropriate funds to fulfill any of its obligations -6- under this Easement shall limit or otherwise affect any of the provisions of this Easement, which shall continue in force notwithstanding any such failure to appropriate funds. 15. Subject to any limitations imposed by the'Colorado Governmental Immunity Act, C.R.S. § 24-10-101, et seq., Town hereby agrees to indemnify and hold harmless the Association and its successors and assigns and the other Benefited Parties from and against any and all claims, judgments, liens, losses, damages, costs,and expenses, including without limitation reasonable attorney fees, arising out of or related to the initial design, engineering, construction or other work for the Parking Lot to be constructed by Town on the Easement Tract pursuant to this Easement, or any injury or death to any person, or damage to any property, occurring in connection with any such work. 16. All provisions of this Easement shall be personal covenants binding on Town and the Association and their respective successors and assigns, and also real covenants, which shall run in perpetuity with the land and the ownership of the Easement Tract and shall be binding upon Town and its successors and assigns, including its successors in interest to the fee simple title to the Easement Tract or any part thereof. All provisions of this Easement shall inure to the benefit of the Association' and its successors and assigns and the other Benefited Parties. 17: If any terms or provisions of this Easement shall to any extent be determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Easement shall not be affected thereby, and each term and provision of this Easement shall be valid and enforceable to the fullest extent permitted -by law. 18. This Easement shall be governed by the laws of the State of Colorado. -7- A ~ ST: AVON, TOWN SQUARE, LOT 2, CONDOMINIUM ASSOCIATION, a Colorado nonprofit corporation formerly known as Avon Town Square, Lot 2, Commercial Condominiums Association, Inc. and Avon Town Square, Phase II Commercial Condominium Association, Inc. TOWN OF AVON ~a By: (.r 7 By: ~ ~ f 1 Name: lfred H. Williams Title: resident, Avon Town Square, Lot 2, Condominium Association STATE OF COLORADO COUNTY OF EAGLE ss. t~ The foregoing instrument was acknowledged before me this day of kl. , 2005, by Ronald C. Wolfe as Mayor and Patty McKenny as Town Clerk o the Town of Avon, a Colorado municipal corporation. \E~ hand and official seal. aQ;' My co on expires: . nl I- ~•.VBL~G POD N9 Ic OF CO`~Q► of lic ssion Expires 04MM . -8- STATE OF COLORADO COUNTY OF EAGLE ss. The foregoing instrument was acknowledged before me this 7" day of 2005, by Alfred H. Williams as President of Avon Town Square, L , C dominium Association, a Colorado nonprofit corporation formerly known as Avon Town Square, Lot 2, Commercial Condominiums Association, Inc. and Avon Town Square, Phase II Commercial Condominium Association, Inc. Witness my hand and official seal. 1 I 1 L~ I ;Skcc teary Public DNVRI:60303918.17 7/5/05 3:03 PM -9- ` EXHIBIT 1 ® Page 1 of 2 r1 Inter=Mountain Engineering Ud- REAL PROPERTY TO BE AQUIRED FOR PERMANENT EASEMENT FROM THE TOWN OF AVON LEGAL DESCRIPTION: RECEIVED, JUN 1 7 2005 COMMU i Development A parcel of land located in the Town of Avon, State of Colorado, containing 0.384 acres, more or less, situated in Tract F, Block 2, Benchmark at Beaver Creek Subdivision, as recorded in the Office of the Clerk and Recorder of Eagle County, Colorado, at Book 274 Page 701, on September 5, 1978, and being more particularly described as follows; Commencing at the southwest comer of said Tract F; - Thence N10°26'15" E along the westerly line of said Tract F (Avon Road), common to the northerly right of way of the Denver and Rio Grande Western Railroad, and the southeast corner- of Lot 2, The Lodge at Avon, a distance of 2.68 feet to the True Point of Beginning; Thence continuing N 10°26' 15" E along said westerly, line a distance of 239.06 feet to a point; Thence S 79133'45" E a distance of 70.00 feet to a point; Thence S 10°26' 15" W a distance of 239.06 feet to a point; Thence N 79°33'45" W a distance of 70.00 feet to the True Point of Beginning. The above described parcel contains 16,734 square feet (0.384 acres), more or less. I hereby state that t e above described, legal description has been prepared by me or under my d' 4 jpglp v°~~ o Q g 37055 Date Ron A. Mahon P.L.S. 37055 _ P 41, Prepared by In in Engineering on June 16, 2005 P.O. Box 978 Avon, Co. 81620 Ron A. Mahon P.L.S. 37055 J: \pro j ects\05005 6/survey/easm. doc 8392 Continental Divide Road, Suite 107 • Littleton, Colorado 80127 • Phone: (303) 948-6220 • Fax: (303) 948-6526 40801 U.S. Hwy 6, Suite 203 • PO Box 978 • Avon, Colorado 81620 • Phone: (970) 949-5072 • Fax: (970) 949-9339 Toll Free: (800) 856-2258 k 0561Wn~y4S00.5ee66mWner awa 1W,71M x73101014 EXHIBIT 1 Page 2 of 2 y \ S7y,3,j'¢S«E ~ 1 tb AQ 00' 1 . r p A g ~ I w I o°cl ~ ~ I COI to I gal l~- ~ a I o O N7g • 45 ~4' A000, I ~',S~NO~~o I I D ~ I TOWN OF AVON PERMANENT EASEMENT £XH/BlT TRACT F, BLOCK 2, BENCHMARK AT BEAKER CREEK o Fi LEOAL DEBORFTION g PART OF TRACT F (AVON ROAD) IItafa ~nC~l~, D 5~ Z BLOCK 2, BENCHMARK AT BEAVER CREEK jr-tv"W"Kulm TOWN OF AVON. 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