HomeMy WebLinkAboutresolution.council.056-08RESOLUTION NO. 56 2008
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO,
ADOPTING POLICIES AS THEY RELATE TO SINGLE FAMILY LOT SUBSIDIES AND
UNIT RESALE CAPS AT BURLINGAME RANCH AFFORDABLE HOUSING.
WHEREAS, Burlingame Ranch was established and developed by the City of Aspen to
provide for affordable housing opportunities for the workforce in Pitkin County; and
WHEREAS, the initial offering at Burlingame Ranch was the sale of 7 single family lots;
and
WHEREAS, the City sold employee owners who qualified under the "Resident
Occupied" Category ("RO Owners") of the Aspen/Pitkin County Affordable Housing Guidelines
Lots 1-5, Block 1, Filing I of Burlingame Ranch Subdivision ("RO Lots") for $150,000 per lot
plus stub-out fees in the sum of $4380.00; and
WHEREAS, the City sold employee owners who qualified under the "Category 6"
Category ("Category 6 Owners") of the Aspen/Pitkin County Affordable Housing Guidelines
Lots 6-7, Block 1, Filing I of Burlingame Ranch Subdivision ("Category 6 Lots") for $119,400
per lot plus stub-out fees in the sum of $4,380.00; and
WHEREAS, subsequent to the sale of these lots the City determined that an inequity in
the subsidy afforded the lots versus the multi-family units at Burlingame Ranch occurred, and
that the owners of the lots would have difficulty building affordable housing on the lots to
contribute to the City's affordable housing inventory due to high costs of construction and the
cost of the lots, tap fees and certain carrying costs associated with the purchase of the lots; and
WHEREAS, in order to correct this inequity and to reverse the consequences of the
transaction between itself and the owners of single family lots the City desires to provide a
subsidy in the sum of $189,500 for RO Owners and $344,000 for Category 6 Owners and to
waive payment of tap fees and building permit fees for each Lot and to pay the Community
Development Department or applicable water or sanitation district fees for such permits and tap
fees out of the Housing Fund to correct the original purchase and sale of the Lots and to amend
and restate the terms of the settlement of the purchase of the aforesaid single family lots; and
WHEREAS, it is the intent of the City that the subsidy and payment of tap fees and
building permit fees shall be a corrective measure and not a taxable event; and
WHEREAS, the City finds that such adjustment will preserve its public policy regarding
affordable housing, which is in the best interests of the community; and
WHEREAS, the City Council has further determined that relief in the maximum resale
price of the lot is wan•anted, and
WHEREAS, being fully apprised in the matters relevant hereto,
NOW, THEREFOR, BE IT RESOVED BY THE CITY COUNCIL OF THE CITY OF
ASPEN, COLORADO THAT:
1. Additional subsidies for Lots 1 through 5 of Block I, and Lots 1 and 2, Block 2
Burlingame Ranch PUD Phase I, as determined by APCHA category placement shall be
provided to the lot owners as follows, Category 6 - $344,000.00, and Category RO -
$189,500.00. In addition, tap fees and building permit fees for each Lot shall be paid out
of the Housing Fund. Further, all additional subsidies will only be paid directly to the
Community Development Department or applicable water or sanitation district or
released to a licensed escrow agent; no subsidy will be given directly to the homeowner.
Additionally, subsidies will only be released contingent upon receipt by the City a
properly executed security interest as approved by the City Attorney.
2. Resale caps shall be established for each Lot at the time of issuance of the original
certificate of occupancy and any subsequent certificate of occupancy or certificate of
completion for such lot for expansion of liveable space using the following formula: total
cost of acquisition of the lot plus the costs of construction of all improvements on the Lot,
including but not limited to architect, engineer, consultant and general contractor fees and
the costs of labor and materials for buildings, landscaping, hardscaping and related
infrastructure. The resale cap shall not include the initial subsidy received from the City
of Aspen as identified in Paragraph 1 above. Initial Sales Price caps determined at the
issuance of the original certificate of occupancy for any Lot shall not exceed $995,000 for
RO Lots or $840,500 for Category 6 Lots, recognizing that these amounts are Not To
Exceed amounts and that the actual deed restriction resale cap will be reflective of actual
costs of construction, as defined above.
The Housing Authority shall release existing deed restrictions against the Lots containing
references to $454,000 caps for Category 6 Lots and $640,000 caps for Resident
Occupied Lots and record new deed restrictions that comply with the requirements of this
Resolution. All requirements of the existing deed restrictions not in conflict with this
Resolution shall remain in effect.
Lot Owners affected by this Resolution shall agree to the amended and restated terms of
the Resolution as a condition of final approval of the subsidy and a condition of the
issuance of the certificate of occupancy for that lot.
RESOLVED, APPROVED AND ADOPTED this 28th day of July, 2008, by the City
Council for the City of Aspen, Colorado.
I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a
true and accurate copy of that resolution adopted by the City Council of the City of
Aspen, Colorado at a meeting held July 28, 2008.
Kathryn S. K ,City Clerk