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HomeMy WebLinkAboutlanduse case.ts.Prospector Lodge.49A-85`I �• � � � � I I � ;��,�� �l �,,,,.,�-� L T S ASPEN/PITKIN PLANNING OFFICE 130 South Galena Street Aspen, Colorado 81611 (303) 925-2020 LAND USE APPLICATION FEES City 00113 - 63721 47331 52100 GMP/CONCEPTUAL 63722 47332 52100 GMP/PRELIMINARY 63723 47333 52100 GMP/FINAL 63724 47341 52100 SUB/CONCEPTUAL 63725 47342 52100 SUB/PRELIMINARY 63726 47343 52100 SUB/FINAL 63727 47350 52100 EXCEPT/EXEMPTION 63728 47350 52100 REZONING 63729 47360 52100 SPECIAL REVIEW SUB -TOTAL County 00113 - 63711 - 47331 - 52200 GMP/GENERAL 63712 47332 52200 GMP/DETAILED 63713 47333 52200 GMP/FINAL 63714 47341 - 52200 SUB/GENERAL 63715 47342 52200 SUB/DETAILED 63716 47343 52200 SUB/FINAL 63717 • 47350 52200 SPECIAL REVIEW 63718 47350 52200 REZONING 63719 47360 52200 SPECIAL APPROVAL PLANNING OFFICE SALES 00113 - 63061 - 09000 52200 63063 09000 52200 63062 09000 00000 63066 09000 00000 63069 09000 Name: - Address Check No. Additional Billing: SUB -TOTAL COUNTY CODE ALMANAC GMP COPY FEES OTHER SUB -TOTAL TOTAL Phone: Project: Date: No. of Hours: 49�-gs r CASELOAD SUMMARY SHEET City of Aspen DATE RECEIVED: `�'` CASE NO. DATE RECEIVED COMPLETE: `���: STAFF: "5 PROJECT NAME APPLICANT: Applicant.P_ddre REPRESENTATIVE: Representative Type of Application: I. GMP/SUBDIV IS ION/PUD (4 step) Conceptual Submission Preliminary Plat Final Plat II. SUBDIV IS ION/PUD (4 step) Conceptual Submission Preliminary Plat Final Plat •yIII . EXCEPT ION/EXEMPT ION/REZ ON ING (2 step) /IV . SPECIAL REVIEW (1 step) 0, Special Review Use Determination Conditional Use Other ($2,730.00) ($1,640.00) ($ 820.00) ($1,900.00) ($1,220.00) ($ 820.00) ($1,490.00) ($ 680.00) �I,,<< kA.0... P&Z CCU MEETING DATE: �� PUBLIC HEARING•, YES (NO DATE REFERRED: //4=% INITIALS: -� REFERRALS: `zERCity Atty Aspen Consol. S.D. School District City Engineer Mtn. Bell Rocky Mtn. Nat. Gas Housing Dir. Parks Dept. State Hwy Dept (Glenwd) Aspen Water Holy Cross Electric State Hwy Dept (Gr.Jtn) City Electric Fire Marshall Bldg: Zoning/Inspectn Envir. Hlth. Fire Chief Other: - - FINAL ROUTING: DATE ROUTED: -71 INITI City Atty City Engineer Building Dept. • Vl�h �1,���nt ,�iss > L�}) ht;��.� Other �� Other FILE STATUS AND LOCATION: CASE DISPOSITION: f'f-osp-ec or LpdY 11 .a;r,` fe Cond'7'ony t - - — -} �rn�Sn�sYf AP�rc �' Reviewed by: �en P&Z \City Cough + approve amendment of Condition Nos. 6, 9 and 13 of approval for the Prospector Timeshare as follows: I •1. Amend Condition No. 6 to take out reference to transporta- tion and lodging gift prohibition. 2. Condition No. 9 should contain the correct names of the current Plan Manager; 3. Deleted Condition No. 13; and subject to the following conditions: a. The applicant shall provide the City Manager's Office with current information about the Prospector's marketing and sales program including: i. The composition of weeks in timeshare packages; ii. Packages remaining unsold, and iii. Management of escrow accounts. This information shall be submitted within sixty (60) days of this approval. b. An amended Statement of Subdivision Exception, reflecting the changes to conditions of approval, Nos. 6, 9 and 13, • shall be submitted to the satisfaction of the City Attor- ney's office." L !1 {✓�'l QQ �j��/7 �rpr !/��(q ��b�YL/L/Z Ul c�w; c �lr i/.1t� 1 ��il q ,� alnlr .% �.�• 01V tJ.? t.ry h4��� l 6alv� , ,ti�{� ,fdY ,•1, 1YO y 1I J �- �' ��• "�:-� C�,'x-� cY✓: etii �,c .i�'f'•i�'�� :tiL1�• � ..1,�-tl.�-r�-yf GUr?"�'ti'�%...t:,.. VD E 0 • J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW 600 EAST HOPKINS AVENUE SUITE 203 ASPEN, COLORADO 81611 September 16, 1986 Mr. Steve Burstein Aspen/Pitkin Planning Office 130 South Galena Aspen, CO 81611 AREA CODE 303 TELEPHONE 925-2612 Re: SPFC-Prospector-minor permit amendment application Dear Steve: Security Pacific Finance Corp., the owner of the Prospector project through a foreclosure, seeks an amendment --we think minor --to the existing Prospector permit, condition 7 (see Exhibit A). As you know, the existing permit requires the sale of a three-week interval, with one week to come from each of three columns of a printed schedule (see Exhibit B). Those schedules of weeks were submitted by the previous developer and approved as part of the original permit, although not required by the Code. SPFC, having engaged in sales through Barry Lefkowitz for several months, would like the permit amended, to give greater flexibility to meet requests of prospective buyers. This request will still satisfy the City Code, by allowing the individual sale of three week interval of any combination of weeks, so long as annually the total off_ season weeks sold is 26% of the total weeks sold, as will be explained below. This change is, we believe, a -ninor one, because (a) it is entirely consistent with City Code timeshare requirements, and (b) because it is slight in light of changes others (e.g., potential project buyers) have suggested SPFC seek, such as selling individual weeks, rather than a three-week package, which SPFC has declined to do. The relevant Code provisions require at a minimum either a two week package (on and off-season weeks) or an alternate packaging that "adequately accomplishes the marketing and sales of off-season weeks". The Code provisions are as follows: Section 20-24(B): "(5) 'Off-season' means the time between the date of the closing of Aspen Mountain ski lifts and June 15th of any J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW Mr. Steve Burstein September 16, 1986 Page 2 year and also the time between September 15th to the date of the opening of Aspen Mountain ski lifts in any year." "(6) 'On -season' means any time of year not included in the off-season." Section 20-24(E)(3) "The marketing plan shall satisfactorily demonstrate that off-season timeshare weeks are being packaged and included in the proposed sales packages, and that off- season periods will be adequately marketed and sold. The marketing shall include, at a minimum, a multi -week package including one off-season week sold with one on - season week. A marketing plan may present alternative packaging of weeks to be sold, if it can be proven to the city council that the proposed packaging adequately accomplishes the marketing and sales of off-season weeks." The obvious purpose of the Code sections is to make sure that a developer does not sell the choice weeks, and leave an unsold and unsalable inventory of off-season weeks, with a consequent financial drain upon the then existing individual interval owners, since the owners' assessments pay for the project when that developer is gone. The new plan will insure the sale of off-season weeks. Before illustrating that, let's look at the inconsistencies in the existing three-week schedule (see Exhibits B and C), remembering that the developer sought approval of those schedules --they were not the fault of Council. The three columns supposedly coincide with high Winter/ski season, Spring/Fall off-season, and high Summer season. In fact, depending upon the opening and closing of the lifts, Easter, and miscellaneous other factors, many of the weeks do not fit in a clear category. For example, week 14 is under the "Prime Summer" column; yet it is the first week in April. Similarly, week 50 is in the same column; it is in early December. Under the Code's off-season, on -season definitions, the J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW Mr. Steve Burstein September 16, 1986 Page 3 following is an approximate appropriate categorization of weeks at the Prospector: Ski weeks (prime ski) 20 Summer (prime Summer) 13 Off-season 12 Unsold off-season 3 Maintenance 4 52 Thus, in order to sell the 12 off-season weeks with the 20 on -season ski and 13 on -season Summer weeks, or 33 weeks, out of the total weeks sold over a period of time, 26% (12 divided by 45) should be off-season, and about 74% (33 divided by 45) should be on -season. That ratio would mean the project would properly sell out, all other sales factors being positive (e.g., assuming a demand for timeshare units, etc.). The Prospector would report its sales to the City quarterly, and the 26%/74% ratio would be observed on a yearly basis. Tf there were a variation, then the City would require and the Prospector would agree the variation to be eliminated in the following year's sales. While such a plan is 1�_-ss precise than "pick one from each of three columns," you can monitor and enforce it nonetheless. By the way, the existing total sales of weeks, without this plan, has less than a 5% variance from it. Total sales to date are 57 on -season ski weeks, 35 on -season Summer weeks and 25 off-season weeks, or 77% on and 21% off. Since the sales efforts by Barry Lefkowitz began, there have been four new sales consistent with the permit. But there are at least six prospective sales that SPFC would like to close, but cannot absent this amendment. These prospective sales include several with two on -season Summer weeks, and an off-season week; several with two Winter on - season and an off-season week, etc. SPFC believes this change will give greater flexibility for sales efforts, and for buyers --thus making the project a more viable one. For example, some buyers interested in the J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW Mr. Steve Burstein September 16, 1986 Page 4 Music Festival may want two on -season Summer weeks; a budget oriented visitor who likes the Fall colors may want two off- season Fall weeks. The sales staff have had inquiries from fly fisherman who return to Aspen each year in off-season Spring weeks (before the run off), and off-season Fall weeks. Sales to meet those interests can not occur under_ the existing permit. And there are several interested prospective buyers of three ski weeks who have said that will not buy unless they can buy three ski weeks. Those ski week sales could be balanced by sales to those interested as mentioned, in off-season fly fishing and in the Music Festival. We should also mention that some of the recent sales are to existing owners: a.q., one person has purchased four separate intervals. These repeat sales speak well for the project. And several of the sales are to real estate professionals. SPFC has demonstrated its good faith and stewardship by, e•3., paying in excess of $100,000.00 to creditors of Merit, mostly local people, that it was not legally obligated to pay. It has, it believes, achieved the good will of almost all existing owners. It needs, however, this additional assistance for the project and asks for your approval. Sincerely, 1-k, Kk( cC4.a J. Nicholas McGrath, P.C. cc: Mr. Ron Mitchell Paul Taddune, Esq. 6:lburstei.904 7. The nineteen (19) renovated units found in the Prospector must each be split into fifty-two (52) weeks. Seven (7) aieeks must be reserved for the maintenance of the project. roar (4) of these seven (7) .%ieeks must be used exclusively for maintenance with no rentals or other uses allowed. Two of the four (4) weekn must be in the spring while the remaining two (2) weeks must be in the fall. The remaining forty-five (45) weeks must be sold as proposed in three (3) week timeshare packages. Each three (3) week package must contain a peak Summer/off-winter week, and an off season week in either the spring or the fall. EXHIBIT A • Week 8elecLlon Chart Prospector fractional estate owners have three occupancy weeks each year. The choice of specific weeks is made at the time of purchase, Each owner creates his own package by selecting one week from each season: Prime Ski, Prime Summer and Spring/Fall. Choose One Choose One Choose One Prime Ski Prime Summer Spring/Fall 51 *14 15 52 25 16 1 26 17 2 27 18 3 28 19 ' 4 29 20 5 30 21 6 31 22 7 32 23 8 33 _ 24 9 34 39 10 35 40 11 36 41 12 -3-7` 42 13 38 43 '50 44 45 46 --> 47 48 49 EXHIBIT S • VACATIOPOCALENDAR Sunday to Sunday 1mrF NX1?EK NUMIIER 1985 1986 1987 1988 - 1989 I Jan. 6-Jan. 13 Jan. 5 Jan. 12 Jan. 4-Jan I jan. 3-jan. 10 Jan. 1-Jan. 8 2 Jan. 13 Jan. 20 Jan. 12 Jan. 19 Jan. l l Jan. 18 Jan. 10 jan. 17 Jart. 8 Jan. IS 3 Jan. 20- an. 27 1 Jan. 19-Jan. 26 Jan. 18-Jan. 25 Jan. 17-Jan. 24 Jan. 15-Jan. 22 4 Jan. 27-Feb. 3 Jan. 26-reb. 2 Jan. 25-Feb. 1 Jan. 24 Jan. 31 Jan. 22 Jan. 29 5 Feb. 3-Feb.10 Feb. 2-Feb.9 Feb. 1-Feb. B Jan. 31-Feb.7 Jan. 29-reb.5 _ 6 Feb. IO-Feb. 17 Feb. 9-Feb. 16 Feb. 8-reb. 15 Feb. 7-Feb. 14 Feb. 5-Feb. 12 7 8 Felix 17-Feb.24 Feb. 24-March 1 Feb. 16-Feb.23 Feb. 15-Feb.22 Feb. 14-Feb. 21 Feb. 12-reb.19 3 Feb. 23-March 2 Feb. 22-Mauch 1 Feb. 21-Feb. 28 Feb. 19-Feb. 26 9 6brch 3-Narch 10 MLvdt 24tarch 9 Mtuch 1-March 8 Feb. 28-Mardi 6 Feb. 25-March 5 10 Mar. 10-Mar. 17 NW. 9-NW. 16 Mau. 8-Mar. 15 Mardi 6-Mtuch 13 March 5-ALtrch 12 11 Mar. 174ta. 24 Mar, 164Lu. 23 Mtnr. 15-Mtar. 22 Minch 13-March 20 March 124tuch 19 12 Mar. 24-Mtar. 31 Mar. 23-Mar. 30 Mau. 22-Mar. 29 March 20-March 27 Namh 19-March 26 13 Mai. 31-Aprll 7 Nar. 30-April 6 Mar. 29-April 5 Nu-ch 27-April 3 Narch 26-Alxll 2 14 April 7-April 14 April6-April 13 April 5-April 12 April 3-Apr1110 April 2-Aprll9 15 April 14-April21April 13-April 20 April 112-April19 April 10-April 17 Aprll9-Aprll 16 16 April 21-April 28 April 20-April 27 April 19-April 26 April 17-April 24 April 16-April 23 17 April 28-Nay 5 'May April 27-May 4 April 26-Nay 3 April 24-ay 1 April 2�-Aprll 30 18 5-May 12 Nay 4-May 11 May 3-Mary 10 May I -Mary 8 April 304by 7 19 May 12-Mary 19 MLty 11-May 18 May 10-May 17 May 8-Mary 15 May 7-MLry 14 20 May 19-May 26 May 18-May 25 May 17-May 24 May 15-Mary 22 May 14-May 21 21 Nay 26 June 2 May 25 June I May 24-Many 31 May 22-Nay 29 MLry 21-May 28 22 June 2-June 9 June I -June 8 May 31-June 7 Way 29-Jure 5 May 28 June 4 23 June 9-June 16 June 8 June 15 June 7-June 14 June 5-June 12 June 4-June 11 24 June 16-June 23 June 15-June 22 June 14 June 21 June 12-June 19 June 1 I June 18 25 June 23-June 30 June 22-June 29 June 21 June 28 June 19-June 26 June 18-June 25 26 June 30 July 7 June 29-July 6 June 28-July 5 June 26 July 3 June 25 July 2 27 July 7-July 14 July 6-July 13 July 5 July 12 July 3 July 10 July 2 July 9 28 July 14 July 21 July 13 July 20 July 12 July 19 July 10-July 17 July 9 July 16 29 July 21 July 28 July 20-July 27 July 19-July 26 July 17-July 24 July 16-July 23 30 July 28-August 4 July 27-August 3 July 26-August 2 July 24-July 31 July 23-July 30 31 Aug. 4-Aug. 11 Aug. 3-Aug.10 Aug 2-Aug.9 July 31-Aug.7 July 30-Aug.6 32 Aug. II -Aug. 18 Aug. 10-Aug.17 Aug. 9-Aug.16 Aug. 7-Aug. 14 Aug.6-Aug. 13, 33 Aug. 18-Aug. 25 Aug. 17-Mg.24 Aug. 16-Aug. 23 Aug. 14-Aug.21 Aug. 13-Ang.20 31 Aug. 25-Sep. 1 Aug. 24-Arig. 31 Aug. 23-Aug. 30 Aug. 21-Aug 28 Aug 20-Aug. 27 35 Sep. I -Sep. 8 Aug. J1-Sep. 7 Aug. 30-Sep. 6 Aug. 28-Sep. 4 Aug. 27-Sep. 3 36 Sep. 8-Sep.15 Sep. 7-Sep. 14 Sep.6-Sep.13 Sep. 4-Sep.11 Sep. 3-Sep.10 37 Sep. 15-Sep, 22 Sep. 14-Sep. 21 Sep. 13-Sep. 20 Sep. 11-Sep. 18 Sep. 10-Sep. 17 38 Sep. 22-Sep. 29 Sep. 21- Sep. 28 Sep. 20-Sep. 27 Sep. 18-Sep. 25 Sep. 17-Sep.24 39 Sep. 29-oct.6 Sep .28-Oct.5 Sep. 27-Oct.4 Sep. 25-Oct.2 Scp.2.1-Oct.1 40 oct. 6-Oct. 13 Oct 5-Oct. 12 Oct 4-oct. 11 Oct 2-Oct. 9 Oct. I -Oct 8 41 Oct. 13-Oct, 20 Oct. 12-0ct 19 Oct. 11-Oct. 18 Oct. 9-Oct. 16 Oct. 8-Oct. 15 42 Oct. 20-Oc1. 27 Oct 19-Oct. 26 Oct. 18-Oct. 25 Oct. 16-0ct. 23 Oct. 15-Oct. 22 43 Oct. 274Ncrv. 3 Oct. 26-Nw. 2 Oct 254w. I Oct. 23-Oct. 30 Oct. 22-Oct. 29 44 Nov.3-Nuv.10 Nw.2-Nw.9 NM. I-Nw.8 Oct. 30-Nw.6 Oct. 29-Nov.5 45 RN. to-Nw. 17 RN. 9-Nw. 16 MN. B-Ncrv. 15 Nov. 6-Nov. 13 Nov. 5-nm 12 46 Nw. 17-Nov. 24 , Nov. 16-Nov. 23 Nov. 15-Nov. 22 Nov. 13-Nov. 20 Nov. 12-Nov. 19 47 Nov.24-Dec.1 Nov. 23-Nw.30 MN. 22-Nw.29 Nw.20-Nw.27 Nov. 19-Nw.26 48 Dec. 1-Dec. a Nw. 30-Dec, 7 Nov. 29-Dec. 6 Nov. 27-Dec. 4 Nov. 26-Dec. 3 49 Dec. R-Dec. 15 Dec. 7-Dec. 14 Dec. 6-Dec. 13 Dec. 4-Dec. 11 Dec. 3-Dec. 10 50 Dec. 15-Dec. 22 Dec: 14-Dec.21 Dec. 13-Dec. 20 Dec. II -Dec. 18 Dec. 10-Dec. 17 51 Dec. 22-txc.29 Dec. 21-Dec.28 Dec. 20-Dec. 27 Dec. IS -Dec. 25 Dec. 17-Dec.24 52 Dec. 29 Jan. 5 Dec. 28-Jan. 4 Dec. 27 Jan. 3 Dec. 25 Jan. 1 Dec. 24-Dec. 31-Jan 7 EXHIBIT C 0 0 CITY OF ASPEN 6 MEMO FROM STEVE BURSTEIN Koto `to r I wj" no-$- n� Z1444 �,c x �,� s ALtiJ lLfyl,Lt•� �� � 1 �1 L�uY� �jer�•y►� A�� 41.9�1 1� U�-A /Y)41�1R ✓ M A1►�Pj�,A Et iJl�1l r►I ��h �� 6C f�d t �L (, Gj a4 13 Ao " u ti�,�- � w�u(.�, 4ar�u� w ,, G�it�, 2 031 �Ao . u 11 Payee MERIT DEBTS PAID BY SPFC Aspen Club Buzz Fedorka Snowmass Village Sun Impressions of Aspen Aspen Times Sears -Office Furniture Media Brokers Ashley Associates Ashley Advertising Aspen Branch Zap Cleaners KSNO Air Destination Provideo/Aspen Quide Duplicators Federal Express Aspen Activities Marti Sommers Aspen Maintenance The Greenhouse Restaurant Rocky Mountain News David Harris/Neiley Gideon Kaufman Aspen Daily News (trade $2,000 Schacht Electric A.L. Larsen -Co -Lessee KSPN / TV2 (will trade some) Rosendahl Investor Group Pitkin Co. (property taxes due from 1984-1986 - will be paid the next month or two before Total Amount Date Paid Paid $ 17,505.00 5/01 5,000.00 5/11 900.00 5/11 462.87 5/11 2,053.46 5/11 1,056.00 5/11 4,153.28 5/11 2,255.86 5/11 1,338.67 5/11 713.73 5/11 1,400.00 5/11 2,179.75 5/11 2,302.23 5/11 3,000.00 5/11 899.40 5/11 1,834.00 5/11 100.00 5/11 150.00 5/11 186.10 5/11 430.15 5/11 453.60 5/11 3,500.00 5/12 4,757.00 6/04 also) 2,000.00 6/16 331.00 6/06 1,400.00 6/06 0.00 45,069.00 5/10 in sales) 33,000.00 EXHIBIT A $138,431.10 and 6/16 • • a¢ # # # a) W °' # # # v) -v .o ¢ CID rcc = i # # # # # 0 Q o% o .-+ :� # # >• Z -0 cn 00 CL n 10 W'' a s b € ► E # o W N C] sir##* 3 � O t L r cY w Nco U N �1 w -0a . � op 94 .n "� N f• L7 VO f a tom- L O ro F- 0 0 ��►1s•• � z �' o cc W a a) J 15 w O U) O Ala uiL_ F— (1�( V CD Now ,q r f H C 1 J t w n 3 r-, .-, .p LLJ W .�OTC p v7 N a0 uwz CC U J W I O O H m y a N J Q O u m (n u) 3 >- cn z W W J� 1 w n:aoa •�-� ~ --� L m o a w (a d uj • m E co • • J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW 600 EAST HOPKINS AVENUE SUITE 203 ASPEN, COLORADO 81611 June 23, 1986 HAND DELIVERED Mr_. Ron Mitchell Acting City Manager 130 South Galena Aspen, CO 81611 Re: The Prospector Dear Ron: AREA CODE 303 TELEPHONE 925-2612 L�OI&I� ,/IN 2 3�1966 As you know, I represent Security Pacific Finance Corporation (SPFC), which has foreclosed on The Prospector project against its original developer, Merit Investment Company (of Aspen), Inc. The purpose of this letter is to provide additional information to you concerning the current status of the project, as well as to update some information with regard to the information the City requested at the time it amended the rule of eight condition. 1. The foreclosure sale occurred on May 28, 1986. The total amount of indebtedness owed SPFC was $3,995,199.96. We bid $3,000,000.00, which is more than the appraisal we had as to its value. Thus, SPFC has already lost over $1,000,000.00 on the project. Technically we could pursue what is called a deficiency judgment against Merit, but that is currently unlikely as we do not believe it has any assets. 2. Consistent with its representations to the City, SPFC has paid some investors and many local creditors of the project as indicated on the attached Exhibit A. It is important to note that SPFC had no legal obligation to advance that approximately $100,000.00 to pay creditors. The foreclosure would have wiped out those creditors entirely and legally (except of course for the taxes listed on the Exhibit). Nonetheless, SPFC felt that it would like to get off the ground on a positive note and build some goodwill for the project by honoring obligations that did not apply to it. 3. As I have indicated, SPFC intends to begin marketing - 1 - J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW under the old permit for an indefinite period but probably only for summer 1986. Thus the new plan manager for condition number nine will be Barry Lefkowitz, d/b/a Aspen Ski Tours Realty and Mgmt., and a copy of his Colorado broker's license is attached as Exhibit B. 4. The composition of weeks in timeshare packages, as that information was requested in the Council's action of February 10, 1986 (Exhibit C) is attached hereto as Exhibit D. It is the same as approved for use by the prior developer by City Council. As I have indicated we hope to change that and come up with a more flexible plan but various business conditions, the time involved in regard to doing various State and local applications, the foreclosure itself, dealing with creditors, etc., has prevented us from doing that so far. 5. With regard to "packages remaining unsold", as referred to in the same minutes, that is simply a function of the weeks that remain unsold and how they are selected by a purchaser. While Merit appears to have violated the permit in some regard, Barry Lefkowitz on SPFC's behalf will assure the City that any packages sold will be directly from the schedule and valid under permit. We would be happy to provide the City with a weekly update of prospective closings as sales occur if that would make the City more comfortable. Attached hereto as Exhibit E is an updated owners list with the weeks of sale thereon. This list should supersede anything used by Steve Burstein prior to this time. The attached,list I have verified with the SPFC division that handles the financing papers on each unit, as well as with County real property records, and with Barry Lefkowitz, who deals with owners directly because they notify him when they are coming in since he otherwise short term rents their units. Thus we are relatively confident of the attached Exhibit E. So far as we can tell, the few Merit sales that may involve a violation of the existing permit are not all that much of a problem. There are ample off season_m-eeks to balance any on season weeks that could be sold. Steve identifies eight sales by Merit he thought contrary to the permit in his memo to you dated March 26, 1986. In part he based his memo on a "sales report" print-out I had obtained from a them employee of Merit. That list was inaccurate (no fault of Steve or me). However, the response to Steve's then list is as follows: - 2 - J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW Steve's List Response Frischnect 101 50-29-32 No such sale Blake 102 11-12-40 We returned his money -no sale — Ross/Wallace 203 06-07-43 Accurate -Merritt 205 08-09-24 Accurate Smith 207 10-12-23 Accurate Pillon 302 05-06-25 Accurate Prohaska 302 10-11-40 Accurate While Steve is correct that the five sales by Merit marked "accurate" above do not have both a "summer/fringe ski" and a it week (condition 7), and while I do not defend Merit's not following its permit to the "T," I do point out that the violations do not appear major. Indeed, there is some conflict between condition 7 of the permit and the City Code's requirement of one "off-season" week sold with one "on -season" week. See Sections 20-24(B)(5) and (E)(3). In fact, we can address this issue under SPFC's current proposal to market the three weeks intervals under the existing permit, with one small proposal. Barry Lefkowitz would like to be able to sell two summer weeks and an off season week for this limited summer 1986 marketing period. That would help redress the imbalance Steve perceives. 6. SPFC sent a letter to each of the owners explaining the status of the project and the like and has so far received nothing but favorable comment on its participation. A sample of such a letter is attached hereto as Exhibit F. 7. At the time the rule of eight was amended (Exhibit C), SPFC also offered to allow any purchaser in escrow to rescind a sale if that purchaser felt the change in the rule of eight affected his or her rights. Attached hereto as Exhibit G is a sample of such a letter. Dealing with this issue has been a bit of a problem because there is virtually no communication with the prior developer, Merit. We have asked on numerous occasions for information as to escrow sales, copies of contracts, and the like. Several weeks ago, Merit sent unsorted boxes of materials to SPFC in San Diego, and we are presently reviewing those documents. As best we have been able to determine there were only three sales in escrow and a forth to whom a check was returned (Blake). We are still trying to ascertain that - 3 - J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW information and its accuracy. It does not appear to be a significant problem either numerically or otherwise, and we have not received any complaints that have not been dealt with fairly and promptly. 8. As the attached owners' list (Exhibit E) reflects, in fact there were 47 sales out of 285 intervals (19 units X 45 weeks/3 weeks). Letters went out to each of those 47 owners and we have received several favorable comments. About 13 of those owners are in default upon their financing papers to SPFC and we are negotiating with those owners as to taking a deed in lieu of foreclosure or having them get back in good standing because of our increased participation in the project. 9. We were also asked at the February Council meeting to provide some information on the "management of escrow accounts." Again that has been a difficult problem primarily because of the defaults of Merit. We requested for some five months the actual escrow accounts and information as to them from Merit. What we finally received was, as to any escrow accounts other than for sales, information that indicated there were no sums whatsoever in any escrow or reserve account. With regard to the escrow account Merit maintained for sales, I now have in my trust account the sum of $13,501.26. Frankly, we have been unable to determine whose money that is, but we are communicating with various people in attempt to find out. We believe those funds belong to the three people who may be in escrow and again are attempting to communicate with them and with others to find out who they are. We have been unable to obtain that information from Merit. Barry Lefkowitz has set up a Prospector operating account for assessments and the payment of bills. He is currently also establishing an Interior Reserve Escrow Account, an Exterior Reserve Escrow Account, and will open a Sales Escrow Account at Pitkin County Title for any deposits. I have advised my client that it has a legal right to proceed under the existing permit including the three changes made by Council on February 10. While Steve Burstein focuses on some problems of Merit, he does not seem to understand that SPFC isn't Merit. SPFC from the start has done everything it can to improve the situation and provide a solution to a problem and hopefully we can continue along those lines with you on Wednesday. SPFC is highly desirous of beginning to market. It wishes - 4 - 1-1 • J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW to refurbish other units with a better furniture package and do other improvements to the project. However, when it is already over $1,000,000.00 in the hole, and with little or no cash flow coming in, it is harder and harder to justify with directors, auditors, and examiners of the bank, the advancing of additional funds to improve the project. Thus the necessity to begin marketing. cc: Mr. Steve Burstein sh3:lmit623 Sincerely, J. Nicholas McGrath, P.C. - 5 - 5 City OF ASPEN MEMO FROM STEVE BURSTEIN tilU), A m bit i A if J txa D n CbJhCit ell f"cwv,.`' ds l� A 114 LtC t,jhll h) 5Df1^'. VA ��.re JAI„) elAd • ! OVA l✓�E• 1�1 rVll'�. • • J. NICHOLAS MCGRATH, P.0 ATTORNEY AT LAW 600 EAST HOPKINS AVENUE SUITE 203 ASPEN, COLORADO 81611 June 12, 198 Mr. Steve Burstein Aspen/Pitkin County Planning Office 130 S. Galena Aspen, CO. 81611 Re: Security Pacific -Prospector -Marketing Plan Dear Steve: 2612 Security Pacific is anxious to begin the sales process, and thus proposes to begin sales under the existing permit and marketing plan. Barry Lefkowitz, d/b/a Aspen Ski Tours Realty and Management Company, has a Colorado broker's license and will be the marketing agent. Since at least in this interim period (prior to seeking changes and City approvals), only the marketing agent is being changed, from Timber Run Realty and Terry Liming (see par. 9) in the original permit to Mr. Lefkowitz, please tell me if there is anything else the City needs. The only thing I can think of is some sort of writing by which SPFC and Mr. Lefkowitz agree to market in accordance with that permit. SPFC will not close any sales under after August 12, when the redemption period is over in its foreclosure, so that it will be able to convey clear title to any purchaser. Even if there are no such sales, the sales and advertising process can begin and that will benefit the project. SPFC will also soon be filing a revised marketing plan with greater flexibility in weeks that can be sold, for which it will also file a permit amendment application. Since the condominium documents may require amendment, and since SPFC will not be the owner entitled to amend those documents under Colorado condominium law until after approximately August 12, realistically SPFC's only choice is to begin some marketing under the existing permit, while processing the changes it believes are necessary to make the project viable. - 1 - J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW If you have any questions, please let me know. Perhaps it might be beneficial to have a meeting with you, Ron Mitchell, and Paul Taddune? Sincerely yours, 0V't- ia "G J. Nicholas McGrath, P.C. cc: Messrs Mitchell, Taddune, Mead, Meyer & Brody nml 5: spper6 0 5 - 2 - C1TY,,OF;!,',,`!,A,"SPEN 130 south galena s reet n. aspen; co'tora4o 81611 303-925-2020 May 7, 1986 Mr. Nicholas McGrath, Jr. P.C. 600 East Hopkins Avenue Suite 203 Aspen, Colo. 81611 Dear Nick: r 7� 0 W C i M.AY - 6 1986 I have reviewed your letter dated April 30, 1986, concerning the Prospector six sales that currently is in escrow. Your suggestion to wait to take action until after you file you marketing plan would seem to be the appropriate course of action. If you are granted more flexibility in selling different packages, the current sales that are in violation would be corrected. If you have any questions, give me a call. Sincerely, Ronald L. Mitchell, Acting City Manager RLM:kjm.151 xc: Steven Burstein v v SECURITY PACIFIC FINANCE CORP. K.0 MEAD EXECUTIVE VICE PRESIDENT Helen & Townsend Ace 8017 Cherokee Lane Leawood, ZS 66202 Dear Prospector Owner: Champagne and flowerst thanks to you for your patience recent month's adjustments. April 16, 1986 Security Pacific extends and cooperation through As you may have heard by now, Security Pacific Finance Corp, is in the process of assuming ownership of the Prospector Resort. Consequently, you may look forward to improvements in the overall appearance of the resort as we upgrade furniture and fixtures in the units, as well as the exterior of the building itself. We intend to bring it up to the standards you anti- cipated at the time of your initial investment. We have reached an agreement with Aspen Ski Club and have paid required dues through February 1987 and are prepaying dues for an additional 2 years. You may expect the Prospector and its staff to compliment your next stay in Aspen, Colorado. We sincerely look forward to continued relations with you. Sincerely, Kenneth C. Mead Executive Vice President Specialized Financing Services KCM/pwr OU le - sets a l 1W89 WILLOW CREEK ROAD SAN DIEGO, CALIFORN14 92131 TELEPHONE (619) 579-0150 SUBSIDIARY Os SECU-1 PACIFIC MIRDAAnON EXHIBIT F Dear Draft to be sent to the three in escrow 9 Security Pacific Finance Corporation has foreclosed upon The Prospector project. We have taken over control of the management of the project and have begun to revitalize it as a premier timeshare vacation resort. The City of Aspen, at our request, has abolished the "rule of eight" under which sales of The Prospector could not be closed until there were eight interval sales in each condominium unit. If the abolition of the "rule of eight" prejudices you in any way, you have the right to rescind your contract to purchase a timeshare interval. Please indicate your desires directly to our property manager Barry Lefkowitz of Aspen Ski Tours in Aspen, 300 South Spring, Aspen, CO 81611, telephone No. (303) 925-9500. If you elect not to purchase, we hope that when you next return to Aspen you will look at the project under new management and once again consider interval ownership at The Prospector. We would appreciate receiving copies of your contract with the developer Merit Investment Co., and a copy of any checks (front and back) you wrote for earnest money deposits. bcl:lspfc426 Security Pacific Finance Corp. EXHIBIT C- 0 LJ J. NICHOLAS MCGRATH, JR., P.C. ATTORNEY AT LAW 600 EAST HOPKINS AVENUE SUITE 203 ASPEN, COLORADO 81611 April 14, 1986 Mr. Steve Burstein Aspen/Pitkin County Planning Office 130 South Galena Aspen, CO 81612 Dear Steve, AREA CODE 303 TELEPHONE 925-2612 � ! APR 151986 Security Pacific Finance Corporation desires an extension of time within which to file its marketing plan for the Prospector. As you may recall a new marketing plan was technically due about April 11. We request a month and a half extension to June 1. There is no prejudice involved to the City or to the public, as we are not currently engaged in any marketing efforts. Security Pacific Finance Corporation has retained the services of Barry Lefkowitz, a licensed real estate broker, and Aspen Ski Tours to manage the property and begin the drafts of the marketing plan. If you have any questions, please let me know. Sincerely, IV1 C `JL J. Nicholas McGrath, Jr., P.C. cc: Mr. Ron Mitchell shl:lbers414 �J J. NICHOLAS MCGRATH, JR., P.C. ATTORNEY AT LAW 600 EAST HOPKINS AVENUE SUITE 203 ASPEN, COLORADO 81611 March 27, 1986 Mr. Ron Mitchell Assistant City Manager 130 S. Galena Street Aspen, CO 81611 Re: Security Pacific-Prospecto Dear Ron: AREA CODE 303 TELEPHONE 925-2612 With regard to Steve's memo of March 26, which points out that apparently the developer and its sales staff may have sold certain intervals in violation of The Prospector permit in seven instances, I did want to indicate that while Security Pacific or its marketing agent will certainly address that "problem" as requested by Steve's memo, Security Pacific of course had no responsibility whatsoever for this or any other violations of the permit by Merit, the developer. We will check into the facts and provide further information to you, but I did want to make sure that everyone was clear that Security Pacific was simply a lender on the project and had nothing to do with marketing or sales, and hence with possible past violations. Sincerely, J. Nicholas McGrath, Jr., P.C. enclosure cc: Mr. Steve Burstein Mr. Fred D. Meyer Mark Brody, Esq. Mr. Barry Lefkowitz Mr. Michael Butler pm9:lron0327 MEMORANDUM TO: Ron Mitchell, Asst. City Manager FROM: Steve Burstein, Planning Office RE: Propsector Timeshare Package DATE: March 26, 1986 Attached is the sales report for the Propsec tor submitted by Attorney Nick McGrath to the Planning Office on February 4, 1986 in association with the Prospector application for amendments to conditions of approval. The packageS with orange marks next to them are in violation of Condition #7 of the Prospector's approval in that they do not contain a summer/fringe ski week and a spring/fall week as required. I have identified seven such mismatched packages. It is important that the current marketing and sales program, to be submitted to the City Manager's Office within 60 days of approval due by April 10, 1986, should address this problem. cc: Nick McGrath V R N nco � s i; i�� ►. �� n Is n S a a n n� a a it .� � e n a• a •• u ._ �u u i i i i• �• i•••• i i i i i i i i i i• i i i i • i �� i� �• a it it L. H N rn C1 c'1 O r• V1 �1 O •-• •D •-• O �t o0 t�l � ^ ^ � � �j � r'''1 r�l O f� N C0 GO O r'l •O o0 r`l r� r1 00 O r!1 N r p Qp� p �D N o3 � prn� - O �j .p 'SO O� �O "� 7 ^ N �i Vl d S Q� , t�l N N M r'1 Co C ZO} N iR � N ^ t� N t/f N yV�] L1 Cl trY�/n r�/I , � .? C1 � � !`l to � N tj N V, Coll Q` ICIA C� 0� -o---- 0o0 O �0 0000...�p0�+-� �, Ln %n v, rn rn .n Ln Ln u, '^ � co ao000oaoao000\00\00`0ww� �A r,rn�s� � N.. N Cl O 0`0 -A .--r Cl -'+ .-� N N O Cl N o�ppp c�r�� N C�1- c� o�ppp�� p�ppp��aa -+ Q� gyppp' .-r C3 � 0 00 00•-,O•-i^�00� 000�000000 00�-00 00p00�O^' •-�•-•O 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O Cj 0 0 0 0 �TRj �81V810�Q �prp ._ M�p�_^ppppop N N c"1 Ln �" •" '" N N CI N 1 Cl N M t�"1 Cl m M r`1 ON m N N Cl t�l N N N N C1 rn Q� M ID 7 f�Orl Nl .. � N i � � "^ Nu�l' i/N'�/ N N � N .,},' � ��7` n �p N({ ;l,-, ��MCl M cy1l. 11 b ,sal: ; N n ,1 1 � N t` — b cb N �!1 !"�� NO ^O pIp t3 C3 �. �. .�- O O N o o r-1 27 •-• W ern O r 1 6 "C�' _ 1. — C� r= •ti ti N Cl `8 `8 `8 O p mp O rn O O �pp �pp Q� O Ln n O LQ O O O CD O CDO ^o O O O O O O O O O -- „y N N N fV N N N N N c" N �" N "' N N N N N N N N N N N N N 0 z E� a• � L2 �90 J � � G1 � CJ • RRR ID r4 Cyl N (7, N 0 o O '' •. 0-0 m00 OOp0C1 � .-+ H H H O H O Q SSH808HH8 cat ccn N �O N N N! `'A p N N CA N l•1 M !'1 M H t+1 • e • • • r+ z R � i •_ � r • 0 p110SPECTOR TIMESHARE MIENUMEHI Steve Burstein, planning office, said this is a request to amend end some of the conditions of the Prospector timeshare approval. main request is to eliminate the condition that 8 timeshare units out of 15 be sold prior to closing on the unit. Burstein said at the time the Prospector was approved, Council was very cautious about timeshare, and had passed some strict laws. Council felt this condition wthis cs to ondition Isrotect counterproductive urstein said and has applicant claims , jeopardized the viability to the project. Burstein said staff feels this condition may hamper the cash flow; however, there are probably other contributing factors to the problems of the Prospector. Burstein recommended eliminating this condition. Nick McGrath, representing Security Pacific, told Council they have filed a foreclosure on the Prospector. McGrath said the conditions are acceptable to his client and they believe the relaxation of the rule of 8 will assist in marketing. McGrath said they feel there were cancellation of sales because owners could not close on and use their units. This money can repay some of the loan and increase the accumulation of interest. Councilman Isaac asked about the other timeshare project if they have the same condition. Burstein said the other project has to ilwoman coer ml 5 out munitiesf 15 have tillss-typeoofc restriction. Burst inasked i saidl�lie com 15 XHI- C 0 • -' I• -•' • .� • 1 talked to Vail, and they do not have these restrictions. McGrath told Council Security Pacific is a 100 per cent lender on this project. Mayor Stirling said there are other factors and this rule of 8 is not the only reason that this project may or may not have succeeded. McGrath agreed with that. Mayor Stirling said the real estate market was very slow when this project went through, and the project may have been under capitalized. Mayor Stirling asked if this bank has any other experience in integral ownership. McGrath said they have interests in 29 other timeshare projects. David White, P & Z member, said one of the reasons this was a condition was to get local people both managing and selling the projects to get consistency. McGrath said his client intends to do a marketing plan to cover these concerns. The city staff has to approve any marketing plan. Councilwoman Fallin moved to approve amendment of condition numbers 6, 9 and 13 subject to conditions a and b in the planning office memorandum of February 4, 1986; seconded by Councilman Isaac. Councilman Isaac asked if this project now fails and Council has changed the requirements, can the present owners came back to Council. Taddune said there is a disclaimer in the timeshare documents stating there is no liability on behalf of the city for any representations. McGrath said there are only 4 current sales in escrow and would make full disclosure to these people that the rule of 8 is changing and if they want out, they may get out. McGrath said all the present owners have objected to the rule of 8. Councilwoman Fallin amended her motion to add a condition (c ) that the existing contracts in escrow be notified of these changes; seconded by Councilman Isaac. All in favor, `motion carried. Week Selection Chart PROSPECTOR FRACTIUTAL ESTATE MIERS HAVE THREE OCCUPANCY WEEKS EAM YEAR. THIS EIMLES EVERYONE TD BE NUAL UWNER.S. TIRE CHOICES OF WEEKS ARE MADE M A FIRST COI!=, FIP,ST SERVED BASIS AT THE TIME OF PURCIHASE. EACN OWNER CREATES HIS O414 PACKAGE BY US11IC UIE WEEK FROM EACH SEASO11: PRIME SKI, SUIVER/FRINGE SKI A14D SPRIIJG/FALL. 0W,"-E ME CHOOSE MY ONE CHOOSE A14Y ONE PR114E SKI SUIVIER/FRINGE SKI SPRING/FALL 51 *14 APRI L 35 APR1 L 52 U{RIS11M 25 JME 16 1 26 17 2 27 18 MAY 3 28 JULY 19 4 29 29 5 21 JME 6 f®RUARY 3 AUGUST 22 7 2 23 8 33 24 9 34 39 SEPTEM3ER 30 WARM 35 40 11 36 SEPTEITER 41 OCTOBER 3.2 37 42 13 38 43 *50 DECEM3ER 44 45 fVVERBER 46 47 48 DECEMER 49 *EXCEPTItth PURCHASERS OF WEEPS 13 OR 51 HAVE FIRST CHOICE REGARDING 3A OR 50 RESPECTIVELY. EXHIBIT D `CALENDAR YEAR Unit Week ; Number 1883 IQ"/9115 1988 1987 I1 I Jon. 2- Jan. 9 Jan. 1- Jan. 8 2 3 4 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 ` 31 ' 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 Jan. 9 -Jan. 18 Jan. 16 - Jan. 23 Jan. 23 - Jan. 30 Jan. 30 - Feb. 6 Feb. 6 - Feb. 13 Feb. 13 - Feb. 20 Feb. 20 - Feb. 27 Feb. 27 - Mar. 6 Mar. 6 - Mar. 13 Mar. 13 - Mar. 20 Mar. 20- Mar. 27 Mar. 27 - Apr. 3 Apr. 3 - Apr. 10 Apr. 10 - Apr. 17 Apr. 17 - Apr. 24 Apr. 24 - May 1 May 1 - May 8 May 8 - May 15 May 15 - May 22 May 22 - May 29 May 29 - June 5 June 5 - June 12 June 12 -June 19 June 19 - June 26 June 26 - July 3 July 3 - July 10 July 10 - July 17 July 17 - July 24 July 24 - July 31 July 31 - Aug. 7 Aug. 7 - Aug. 14 Aug. 14 - Aug. 21 Aug .21- Aug. 28 Aug. 28 - Sep. 4 Sep. 4 -Sep. 11 Sep. 11 -Sep. 18 Sep. 18 - Sep. 25 Sep. 25 - OcL 2 Oct. 2 - Oct. 9 Oct. 9 - Oct. 16 OcL 16 - OcL 23 Oct. 23 - Oct. 30 Oct. 30 - Nov. 6 Nov. 8 - Nov. 13 Nov. 13 - Nov. 20 Nov. 20 - Nov. 27 Nov. 27 - Dec. 4 Dec. 4 - Dec. 11 Dec. 11 - Dec. 18 Dec. 18 - Dec. 25 Dec. 25 - Jan. 1 Jan. 8 - Jan. 15 Jan. 15 - Jan. 22 Jan. 22 - Jan. 29 Jan. 29 • Feb. 5 Feb. 5 - Feb. 12 Feb. 12 - Feb. 19 Feb. 19 - Feb. 26 Feb. 26 - Mar. 4 Mar. 4 - Mar. 11 Mar. 11 - Mar. 18 Mar. 18 - Mar. 25 Mar. 25 - Apr. 1 Apr. 1 - Apr. 8 Apr. 8 - Apr. 15 Apr. 15 - Apr. 22 Apr. 22 - Apr. 29 Apr. 29 - May 6 May 6 - May 13 May 13 - May 20 May 20 - May 27 May 27 - June 3 June 3 - June 10 June 10 - June 17 June 17 - June 24 June 24 - July i July 1 - July 8 July 8 - July 15 July 15 - July 22 July 22 - July 29 July 29 - Aug. 5 Aug. 5 - Aug. 12 Aug. 12 - Aug. 19 Aug. 19 - Aug. 26 Aug. 26 - Sep. 2 Sep. 2 - Sep. 9 Sep. 9 - Sep. 16 Sep. 16 - Sep. 23 Sep. 23 - Sep. 30 Sep. 30.Oct. 7 Oct. 7 - Oct. 14 Oct. 14 - Oct. 21 Oct. 21 - Oct. 28 Oct. 28 - Nov. 4 Nov. 4 - Nov. 11 Nov. 11 - Nov. 18 Nov. 18 - Nov. 25 Nov. 25 - Dec. 2 Dec. 2 - Dec. 9 Doc. 9 - Dec. 16 Dec. 16 - Doc. 23 Dec. 23 - Dec. 30 Dec. 30 - Jan. 8 Jan. 8 - Jan. 13 Jan. 13 - Jan. 20 Jan. 20 - Jan_ 27 Jan. 27 - Feb. 3 Feb. 3 - Feb. 10 Feb. 10 - Feb. 17 Feb. 17 - Feb. 24 Feb. 24 - Mar. 3 Mar. 3 - Mar. 10 Mar. 10 - Mar. 17 Mar. 17 - Mar. 24 Mar. 24 - Mar. 31 Mar. 31 - Apr. 7 Apr. 7 - Apr. 14 Apr. 14 - Apr. 21 Apr. 21 - Apr. 28 Apr. 28 - May 5 May 5 - May 12 May 12 - May 19 May 19 - May 26 May 26 - June 2 June 2 - June 9 June 9 - June 16 June 16 - June 23 June 23 - June 30 • June 30 - July 7 July 7 - July 14 July 14 - July 21 July 21 - July 28 July 28 - Aug. 4 Aug. 4 -Aug. 11 Aug. 11 -Aug. 18 Aug. 18 - Aug. 25 Aug. 25 - Sep. 1 Sep. 1 - Sep. 8 Sep. 8 - Sep. 15 Sep. 15 - Sep. 22 Sep. 22 - Sep. 29 Sep. 29.Oct. 6 Oct. 6. Oct 13 Oct. 13 - Oct 20 Oct. 20 - OcL 27 Oct. 27 - Nov. 3 Nov. 3 - Nov. 10 Nov. 10 - Nov. 17 Nov. 17 - Nov. 24 Nov. 24 • Dec. 1 Dec. 1 - Dec. 8 Dec. 8 - Dec. 15 Dec. 15 - Dec. 22 Dec. 22 - Dec. 29 Dec. 29 - Jan. 5 Jan. 5 - Jan. 12 1 Jan. 4 - Jan, 11 1 Jan. 12 -Jan. 19 Jan. 19 - Jan. 26 Jan. 28 - Feb. 2 Feb. 2 - Feb. 9 Feb. 9 - Feb. 16 Feb. 16 - Feb. 23 Feb. 23 - Mar. 2 Mar. 2 - Mar. 9 Mar. 9 - Mar. 16 Mar. 16 - Mar. 23 Mar. 23 - Mar. 30 Mar. 30 - Apr. 6 Apr. 6 - Apr. 13 Apr. 13 - Apr. 20 Apr. 20 - Apr. 27 Apr. 27 - May 4 May 4 - May 11 May 11 - May 16 May 18 - May 25 May 25 - June 1 June 1 - June 8 June 8 - June 15 June 15 - June 22 June 22 - June 29 June 29 - July 6 July 6 - July 13 July 13 - July 20 July 20 - July 27 July 27 - Aug. 3 Aug. 3 - Avg. 10 Aug. 10 - Aug. 17 Aug. 17 - Aug. 24 Aug. 24 - Aug. 31 Aug. 31 - Sep. 7 Sep. 7 - Sep. 14 Sep. 14 - Sep. 21 Sep. 21 - Sep. 28 Sep. 28 - Oct. 5 Oct. 5 - Oct. 12 Oct. 12 - Oct. 19 Oct. 19 - Oct. 26 Oct. 26 - Nov. 2 Nov. 2 - Nov. 9 Nov. 9 - Nov. 16 Nov. 16 - Nov. 23 Nov. 23 - Nov. 30 Nov. 30 - Dec. 7 Doc. 7 - Dec. 14 Dec. 14 - Dec. 21 Dec. 21 - Dec. 20 Dec. 28 - Jan. 4 Jan. 11 • Jan. 18 Jan. 18 - Jan. 25 Jan. 25 - Feb. 1 Feb. 1 - Feb. 8 Feb. 8 - Feb. 15 Feb. 15 - Feb. 22 Feb. 22 - Mar. 1 Mar. 1 - Mar. 8 Mar. 8 - Mar. 15 Mar. 15 - Mar. 22 Mar. 22 - Mar. 29 Mar. 29 - Apr. 5 Apr. 5 - Apr. 12 Apr. 12 - Apr. 19 Apr. 19 - Apr. 26 Apr. 26 - May 3 May 3 - May 10 May 10 - May 17 May 17 - May 24 May 24 - May 31 May 31 - June 7 June 7 - June 14 June 14-June 21 June 21 - June 28 June 28 - July 5 July 5 - July 12 July 12 - July 19 July 19 - July 26 July 26 - Aug. 2 Aug. 2 - Aug. 9 Aug. 9 - Aug. 16 Aug. 16 - Aug. 23 Aug. 23. Aug. 30 Aug. 30 - Sep. 6 Sep. 6 - Sep. 13 Sep. 13 - Sep. 20 Sep. 20 - Sep. 27 Sep. 27. Oct. 4 Oct. 4 - Oct. 11 Oct. 11 - Oct. 18 Oct. 18 - Oct. 25 Oct. 25 - Nov. 1 Nov. 1 - Nov. 8 Nov. 8 - Nov. 15 Nov. 15 - Nov. 22 Nov. 22 - Nov. 29 Nov. 29 - Dec. 6 Dec. 6 - Dec. 13 Dec. 13 - Dec. 20 Dec. 20 - Dec. 27 Dec. 27 - Jan. 3 . J � - -- - 'I.. `..+►.... �.a...+.._... - - .:uv.- - - ..uL.r �-- - - - - .+.1.tt�J..�.res.=���. - - - - -..:.tea. _...._... J. N. McGrath, P.C. Law Offices SECURITY PACIFIC - CONVEYANCES ACCORDING TO TITLE RECORDS Unit Weeks ------- Name/Address Date Book Page GS D 106 01,24,25 -- ------------------------ Vierk 02-02-85 ---------------- 482 834 GS Lafayette, IN 106 03933,47 Schiavone/Fischer 08-18-84 482 813 GS no address 106 09,19935 Kugler 01-14-85 482 839 D Sterling, CO 106 11,51,52 Rosendahl/Eigel 10-15-85 499 213 Colo. Springs, CO 106 13914,48 Barish/Friedman 12-01-84 482 898 GS NJ/PA 106 30,31,49 Frischknecht 03-14-85 482 823 GS Morrison, CO 106 08,22,38 Taylor 01-15-85 482 818 D Omaha, NB 106 05,3209 Lancaster 10-04-84 482 828 GS VT 203 04,05,24 Potaks/Riloff 10-09-85 499 225 D NJ 203 06,07,43 Ross/Wallace 10-09-85 499 237 GS Beth, MD 203 10,11,37 Boss/Wallace 10-09-85 499 221 GS Beth, MD 203 2801,49 Coon/Low 10-09-85 499 238 D Morrison, CO 203 30,38939 Ross/Wallace 10-09-85 499 233 GS 14D 203 09942952 Johnson 10-09-85 499 229 G3. NJ 205 08909,24 Merritt 03-01-85 486 315 GS WI 205 02,31945 Skrzypczak 04-30-86 486 320 D Breckenridge, CO 205 0504,41 Zukoski 04-30-85 486 325 D Phoenix, AZ 205 06,27,40 Atwater 04-30-85 486 330 D Winter Park, CO 205 03,33947 Rose 04-30-85 486 335 D L.A., CA 205 10925926 Merritt 09-24-85 499 220 WI 205 1209952 Calkins 03-24-85 486 340 GS Concord, Mass. 205 0707,44 Fisher 04-30-85 486 345 D Los Gatos, CA 205 49,50,51 Meneses 04-30-85 486 351 GS Venezuela EXUBIT E 207 05906938 Cargill/Wolf 05-16-86 486 350 GS CT 207 02922,37 Hargreaves/Turek 02-11-85 481 986 GS IL 207 03,27942 Peterson/Nelson 11-09-84 477 501 GS TX 207 04,30939 Boyle 08-12-84 476 489 D Denver, CO 207 07931940 Kamen 10-21-84 476 468 GS IL 207 08924,33 Kaufman 09-02-84 476 479 GS NY, NY 207 09,29947 Smith 08-26-84 476 499 GS Prescott, AZ 207 10,12,23 Smith 10-31-84 477 506 GS Carrollton, TX 207 11925,44 Hansen 09-19-84 476 474 D Scottsdale, AZ 207 28932949 Coon/Low 08-18-84 476 484 Morrison, CO 207 35,36,48 Ace 09-14-84 476 469 GS Leawood, KS 207 43,50,51 Kelley/Carr 01-28-85 487 434 GS W. Lafayette, ID 207 26941,52 Stevens 08-17-84 (illegible) GS Greely, CO 302 0405949 Goldman 09-15-84 478 465 D Denver, CO 302 05,06925 Dillon 03-01-85 483 365 GS Bryn Mawr, PA 302 09922,27 Ruehr 12-14-84 479 556 GS Billings, MT 302 10,11940 Prohaska 11-27-84 478 480 GS' Santa Fe, NM 302 13,14939 Stevenson► 07-16-85 491 441 GS Cohasset, I -IS 302 31,32,47 Perls 12-19-85 478 490 GS Albuquerque, NM 302 29948,52 Ziegler 09-06-84 478 495 D Denver, CO 302 23950951 Morrison 09-22-84 478 485 GS Rolling hills Est., CA' 302 12,30943 Palmer 12-02-84 478 500 Denver, CO 302 08,24933 Shelton 10-23-84 478 470 GS Tucson, AZ 302 07928,41 Sartain 11-17-84 478 475 GS Lake Jackson, TX pm9:forclos2 • CITY OF ASPE • j6 MEMO FROM STEVE BURSTEIN To: Nit,1C Mc�rx' r"or %feve UUYS+-e;" R e . 6 (Urh L4 f (i/ -6w 04,71 s Ohio- (o>1f�er1 �f fh 06fe . r'jAut s, I q�� dM �4 � 91 I q$ s 64)1 Ft," W m, "�" rv— ,— Pic,, q� A "'d 9 ME PROSPECIGR/ASPEN SALES REPORT OCTOBER 18th, 1985 PURCHASE DATE OF CLOSED OR 0 PURCHASER UNIT WEEKS PRICE CONTRACT TERMS NC7T CLOSED FRISQH�'� 101 50-29-32 26268.00 08/12/85 OSYRS, 14.9%, P I5S498.83 NOT CLOSED FRISQHNECHT 101 49-30-31_ 26268.00 06/12/85 05YRS, 14.9%, PYMLSS498.83 NDT CLOSED 102 49-50-51- 32500.00 12/19/84 02YRS, 0.0%, PY.►.=1000.00 NOT CLOSED DNS 102 11-12�+0 33000.00 03/29/85 14.9% 10YRS, , F?CSS424.31 NDT CLOSED cBQ2 B� 103 49-50-51 35500.00 12/31/84 JOYRS, 14.9%, PYMI5S456.45 N7T CLOSED �TgpO BARISH/FREIDMAN 106 13-14-48 " 29500.00 12/01/84 JOYRS, 14.9%, PiMM189.65 CLOSED g lvQk 106 03-33-47 23500.00 08/18/84 05YRS, 12.9%, PVM5426.80 CLOSED ./FICSHER xiGLgt 106 09-35-19 29500.00 01/14/85 JOYRS, 14.97., PYIIISS379.31 CLOSED 106 05-32-39' 23825-00 10/03/84 CASH SATE. CLOSED LANCADER PALMER* 106 28-29-42' 19900.00 08/02/85 10YRS, 12.9%, PYM-S$236.76 NOT CLOSED TA=R 106 08-38-22 29500.00 01/ 15/85 10YRS, 14.9%, P NTSS379.31 CLOSED VIERK 106 01-24-25 23500.00 01/02/85 05YRS, 12.9%, PYCSS426.80 CLOSED BAIRD* 203 03-13-36 38750.00 09/15/85 JOYRS, 12.97., FMSS461.04 -3dB-ttOSID- .� C00N* 203 31-49-28. 26440.00 08/10/85 lOYRS, 12.9%, P)MM314.58 -1�F- - 203 09-52-42 46979.00 07/22/85 03YRS, O.007.., P)I-=848.23 -NDT`ffil&� ,IOHNSON* PpT7K-k 203 04-05-24 31000.00 08/07/85 05YRS, 11.4%, PY M544.17 a ROSS/WALiACE 203 10-11-37 ` 29500.00 03/24/85 JOYRS, 14.07., PY =297.72 NOT 6993EQ- ROSS/WALIACE 203 30-38-39 29500.00 03/24/85 JOYRS, 14.07, P)I-=297.73 -109� G696@ ROSS/WAIIACE 203 06-07-43 06-27-40- 25000.00 31500.00 08/10/85 04/20/85 CASH SALE JOYRS, 14.9%, P)NTSS405.02 NaT sip CLOSED p,TWAM CAUCLNS 205 205 52-12-39 39600.00 03/24/85 10)M , 14.9%, FIffM$509.12 CLOSED *-FISHER. 205 07-37-" 31500.00 01/29/85 JOYRS, 14.97., P)I,=405.02 CLOSED MENESFS 205 51-50-49 31950.00 12/30/84 CASH SALE MERRITT 205 10-25-26 08-09-24: 26000.00 38760.00 09/01/85 02/04/85 CASH SALE 05YRS, 12.07., FitMS560.43 CLOSED MERRITT X ROSE 205 205 03-33-47 29500.00 02/11/85 JOYRS, 14.9%, P`MM379.31 CLOSED SjTZ)T= 205 02-31-45 29500.00 04/30/85 JOYRS, 14.97., PTM$379.31 CLOSED *Z maa 205 05-34-41 31500.00 01/24/85 JOYRS, 14.97., P`!t=405.02 CLOSED A,(E 207 35-36-48 23440.00 09/14/84 Ol)m , 0.0%, Fffl SS976.67 CLOSED BOYLE 207 04-30-39 26500.00 08/12/84 10YRS, 14.9%, PYtn'SS340.73 CLOD CARGILL 207 05-%-38 28500.00 03/14/85 CASH SAIL CLOSED 207 51-50-43, 30875.00 01/31/85 CASH SALE CLOSED 207 11-25-u4 30500.00 09/19/84 10TYS, 14.97., P�.S392.16 CLOSED ,HANSEN HARGREAVES/Tb?TK. 207 02-37-22 26500.00 02/14/85 JOYRS, 14.9%, F--CSS340.73 CLOSED CLOSED KXlN 207 07-31-40 27075.00 10/24/84 OlYR, 0.07., PYPIISS1128.18 KAUFMAN 207 08-33-24 28500.00 08/24/84 JOYRS, 17.07., PYMTSS299.65 CLOSED _ PETFR.SON/NELSON 207 03-27-42 26500.00 11/09/84 lOYRS, 14.0%, PYMTS3194.08 PlMrSS320.10 CLOSED CLOSED gMITH,AL 207 10-12-21 34616.00 10/31/84 lOYRS, 14.07., SMITH, PAT 207 09-29-47 30500.00 08/26/84 JOYRS, 14.9%, PYMTSS392.16 CLOSED r 0 clo5�ci / noi' c)ovil 4+l 5- UnJOY CL Ali VZz s ^lu a l - l 3 00 OB/18/84 01YRS, 0,07, P`d'C:SS1,345.16 CLOSE CLOSED STEMS 207 302 52-26-41 0,, 0 Z5 34600.00 02/ 23/ 85 18/84 CASH SALE 07YFtS, 13.9X, PYMTSS426.01 CLOSED IJIIl1)N 302 04-35-�49 28500.00 345p0.00 09/ 09/19/84 1pYELS, 14.9�, PAS 443.60 CLOSED CLOSED GCLUAAN302 MORRISON 51-50-23 12-30-43 30500.00 12/02/84 lo,.MS 14.9%, ptnSS392.1 USED PALMER 302 � 31-32-47 25040.00 08/13/84 11/27/94 lOYRS, 14.�, P�QSS443.60 1O�S, CLOSED PEA PRE 302 10-11-40 37500.00 32500.00 12/ 14/84 1p`gtS, 14.9z, P1T1155 417.88 P`a'=392.1 CLOSED QDSm MJEHR 302 302 09-27-22" 08-33-24 _ 30500.00 11/01/84 11/17/84 lOYRS, 14.9z, 07Y25, 13.97., p�Q5S440.96 QD� SE�mN SARR 302 07-ZE$-4l _ 29500.00 40700.00 03/ 27/ 85 03YRS, O.00tL, P`�15=' 847.92 Pt-QSS515.70 CLOSED CLOSED SAKEA 3SC� smmz 302 302 13-14-39 52-29-48 27600.00 09/07/84 07YEtS, 13.9%, 05YRS, �� 681.06 N� CLOSED zan.ER12.9Z, AEDEPS 304 52-49-32- 37500.00 27144.00 12/29/84 07/26/85 03`�, O.00X, � 603.22 Fn`SS46�`.80 K7T CLOSED Nn CIDSED tMRE•�` 304 15-40-48 39056.30 07/25/85 lo)YS, 12.97., • 1650896.30 TUTA1., SALES �— *wm: SALES n'AT HAVE NJT PASSED imasacN. MEMORANDUM TO: Aspen City Council TH RU: Hal Schilling, City Manag FROM: Steve Burstein, Planning O�eC4 RE: Prospector Lodge Timeshare - Request for Amendment to Timeshare Conditions DATE: February 4, 1986 SUMMARY: The Planning Office recommends amending Conditions 6, 9 and 13 of the Prospector Timeshare approval as requested subject to the two conditions listed below. APPLICANTS' REQUEST: The applicants, Security Pacific Finance Corporation and Merit Investment Company, request: ( 1 ) to eliminate the requirement that eight (8) timeshare packages out of 15 be sold prior to closing, set in Condition No. 13; (2) amend Condition No. 6 to reflect the Code amendment regarding inspection trip approval through Ordinance No. 67, Series of 1985; (3) delete Condition No. 9 naming the party responsible for the marketing program; and (4) amend Condition No. 27 to allow rental money from the rent of unsold units to be used for payment of debt as well as maintenance. BACKGROUND: In 1983 and 1984, the Prospector Lodge Timesharing proposal received a recommendation of approval by the Planning and Zoning Commission but was denied by City Council. On May 29, 1984, Council reconsidered and approved the timeshare project. Thirty-four (34) conditions of approval (see Attachment "A") were attached to approval of the condominiumization plat. During the Annual Timeshare Review conducted by the Planning Commission on August 20, 1985 and City Council on September 9, the Prospector management requested some general response to eliminating the closing requirement, labeled the "rule of eight". Both the Planning Commission and Council indicated willingness to consider easing the requirement through an appropriate applica- tion for a change in the conditions of approval. An application was received during the discussion of Ordinance No. 67, Series of 1985, which amended the timeshare ordinance with regard to inspection trip limitations and the annual licensing fee. APPLICABLE SECTIONS OF THE CODE: Section 20-24 of the Municipal Code establishes regulations of timesharing as a particular type of condominiumization -- and more broadly, subdivision -activity. Section 20-24(E) states the standards and review criteria for timesharing according to which the effect of amendments should be examined. The legal vehicle for timesharing is the condominiumi- zation map, as described in Section 20-23(A), Lodge Condominiumi- zation. The application before you is for an amendment to the conditions attached to the approved condominiumization map. Timeshare is a conditional use in the Commercial Core zone district. Section 24-3.3(c) provides that the Planning Director can make the determination that the proposed modifications are not substantial, do not have significant land use implications and need not be reviewed at a hearing before the Planning Commission, therefore, the request has been handled as a one step subdivision exception application for City Council review. PROBLEM DISCUSSION: When the Prospector applied for timesharing in 1983-84, City Council had recently passed the Timeshare Ordinance and was very cautious about the potential harm of such projects on the economy, reputation, and land use patterns of the City of Aspen. The Ordinance contains strict requirements and the conditions of approval for the Prospector incorporate safeguard measures intended to ensure that the project would be properly operated and marketed. Most of these conditions of approval directly reflect provisions of the Ordinance. Condition No. 13 was passed primarily to give Council a comfort level with the economic viability of the Prospector project. Council's concern was protection for the buyers and developer in the case that either the developer walked away from the project or other timeshare package purchases walked, leaving the remain- ing purchasers and the developer to shoulder the costs of operation. The applicant claims that this requirement is counter -productive and actually jeopardizes the viability of the project. The applicant believes that with free reign over the use of sales money, a greater commitment to the project operation and payment of debts can be made. Furthermore, there are State consumer laws and the policies of lending institutions to address the protection of parties involved in real estate transactions. According to information provided by Merit Investment last July and by the applicant's attorney in February, the following characteristics of the Prospector project are tabulated: • 0 Project Summary Project Sales Summary July 1985 Feb. 1986 Units 19 Timeshare Packages 285 285 Units Closed 4 Timeshare Packages 92 46 Sold Timeshare Packages Closed 37 37 Timeshare Packages Under 55 9 Contract Percentage of Total 32% 16% Project Sold Eased on the decreased number of timeshare packages under contract, it is obvious that the Prospector is in a more precari- ous situation now than it appeared to be last July. We suggest that one reason may be the closing restriction; and that elimina- tion of this restriction; may be even more needed than previously to help the project. On the other hand, elimination of the restriction may cause those buyers with packages under contract to totally lose their investment if the project fails, when the money would be in escrow otherwise. We present this analysis so that Council can evaluate these risks and the potential benefits in making a decision on the applicaitons request. It appears that there are other problems in selling Prospector timeshare packages besides Condition No. 13, "Rule of Eight", including a soft market and possibly the marketing techniques employed. However, at this time the City's interest appears to be served by easing restrictions on closing to help the project succeed. If the project continues to be used and maintained, taxes are paid, and local debts are paid in part or full, then it appears that the community's welfare is being served. We are not guaranteed that by granting their request that these benefits would all be realized. Given other protection in the City timeshare ordinance, City conditions of approval, State statutes, and bank policies, we feel that the effect of doing away with this requirement would not unduly jeopardize the public welfare. The applicant should disclose current information about their marketing and sales program including how packages are composed of intervals, packages remaining for sale and management of escrow accounts so that the City can ensure that the Code and the other conditions of approval are being adhered to. Regarding the other requests by the applicant, we have the following comments. The Planning Office agrees that Condition No. 6 should be amended to reflect Ordinance 67, Series of 1985 amendments. "Giving of transportation, lodging . . . " should be deleted. Condition No. 9 should be changed to name the current Plan Manager. As the management is likely to change again soon, the names should be left open until the new manager is under employ- ment. No change is necessary in Condition No. 27. It presently allows the developer to use rental money for non -maintenance expenses as long as "any maintenance which may be necessary" is paid for first. ADVISORY COMMITTEE VOTE: This case is being handled as an expedited review, therefore, no review or recommendation from P&Z was accomplished. RECOMMENDED MOTION: "Move to approve amendment of Condition Nos. 6, 9 and 13 of approval for the Prospector Timeshare as follows: 1. Amend Condition No. 6 to take out reference to transporta- tion and lodging gift prohibition. 2. Condition No. 9 should contain the correct names of the current Plan Manager; 3. Deleted Condition No. 13; and subject to the following conditions: a. The applicant shall provide the City Manager's Office with current information about the Prospector's marketing and sales program including: i. The composition of weeks in timeshare packages; ii. Packages remaining unsold, and iii. Management of escrow accounts. This information shall be submitted within sixty (60) days of this approval. b. An amended Statement of the changes to conditions shall be submitted to the ney's office." SB. 8:jlr Subdivision Exception, reflecting of approval, Nos. 6, 9 and 13, satisfaction of the City Attor- 4 1. The applicant will amend the condominium plat to include the following: encroachment • ense granted by Council a. Reference for the rock facade stairs on the north frontage; b. Indicate book and page of easements for the transformer in any vaults or pedestals on the property; 2. The applicant's landscape plan will require final approval of compliance by the Parks Director. The plan should be augmented to include the following: a. The additional sidewalk spur on the west end of the alley; b. Irrigation of the planting areas along the west and north frontages to maintain trees in those locations. 3. The applicant must provide sixteen (15) on -site underground parking spaces. 4. The project must include amenities as proposed including a sundeck on the third floor, on -site parking, lobby, and unit amenities including a hot tub, sauna, wet bar and masonry fireplace. 5. Occupancy by a timeshare owner is limited to thirty (30) days between December 18 and I;arch 26. G. 14o prohibited marketing practices will be allowed including the giving of gifts in a deceptive manner, use of public malls or streets for sale, phone solicitations to visitors at other lodges, or the giving of transportation, lodging or other gifts valued in eycess of $100.00. 7. The nineteen (19) renovated units found in the Prospector must each be split into fifty-two (52) weeks. Seven (7) weeks must be reserved for the maintenance of the project. Four (4) of these seven (7) weeks must be used exclusively for maintenance with no rentals or other uses allowed. Two of the four (4) weeks must be in the spring while the remaining two (2) weeks must be in the fall. The remaining forty-five (45) weeks must be sold as proposed in three (3) week timeshare packages. Each three (3) week package must contain a peak summer/off-winter week, and an off season week in either the spring or the fall. 8. No right -to -use timeshare leasehold �-Iill be allowed. All Prospector timeshare interest sales must be on a fee ownership basis. 9. Timber Run Realty and Terry Liming as Plan Manager and local contact will be responsible for the marketing program for the Prospector. The marketing program identified in the timeshare application must be adhered to. 10 • As proposedaccounts for/operation of the tthesbudget establish system�.r Proof banking these accounts have been established must be documented as M gage 3 12. 13 14. 15. ts are est�.blished. to the City of Aspen when such accoun ill ient The issuance of Certifinc cate Se otiona 20-2�4 (F)U(2)ufofc the to meet the req useful life of mechanical and electrical Code regarding the equipment in the Prospector. The mandatory tyro (2.) month deposit and anv down payments made in conjunction with the purchase of a timeshare unit an escrovr account until closing or the must be held in er a neutral issuance of a Certificate of Occupancy, whichever is later. The escrow agent must be a title comrany in Aspen, third party. Of No Closing will be allowed until aac4 lee�tareghsol(d)for the total fifteen (15) timeshare p g any given unit. timeshare 16. 17. 18. 19 20 21 2 When closing occurs, the declarant as well as new assessment owners must then begin to pay their quarterly fees for that unit. For any unsold units the developer is responsible for operating costs. erve Fund, terior Res The Inter expenditures itemized serve Fund and he mathe xi ten nce/assessment both expenditure fees, cannot be reduced or suspended during the first five (5) years after the first closing. A1.1 other exp items used in the he approval of ttion of the assessment fees can be adjusted with the app must ays The money designated for the �s esery needed ifor Jinterior`oinng be held in escrovr to be used Hated monies g ey:terior repairs and maintenance. Desig per year) cannot into the reserve fund (estimated at $10,000 be reduced or eliminated until the fund has accumulated $50,000. The Prospector timeshare units are limited to sip: (6) occupants at any one time. The applicant will submit a fifty (50) year aced -restriction ee unit (f108) meeting the form and standards for the employ of the Attorney's Office. The owners are required to own the common areas and common amenities in the Prospector Lodge and this must be reflected in the appropriate documents. The Board of tlanaaers Host designate a local r:.anaging agent. • One deed must be conveyed for each three week package so that weeks are never sold individually. �lication and References must be made throughout the aect is subject exhibits attached to indicate chat ctiothe nr20-24 W011 as in to all of the req the State Timeshare Laws which are already P the application and attachments. 2„ The financing for the Prospector must be expressly subject to all restrictions placed on the project. 23, The applicant must provide satisfactbory handicap access to the first level of. the Prospector Lodge y installation of a handicap lift or by such other means as may be appi rtment. In addition, the cant by the Aspen T3uilding Depa shall make two (2.) units on the first level of the Prroo spector Lodge suitable for handicap use. for and 24. The plan manager or the managingol agent must apply show evidence to the City of a Corado State Sales Tay; A W r • !age 4 be applicable to any short term rental of these units. A required real estate transfer tax will apply to initial and subsequent sales of the timeshare interest and will be collected as is done in any other real estate transaction. 25. The Prospector Disclosure Statement, the Prospector Condominium Documents entitled Fractional Estate Declaration, the Prospector Articles of Incorporation of the Fractional Cwners Association, and the Cy -Laws of. the Association as well as a sample purchase contract must all be amended to reflect the conditions of approval placed on the Prospector through the approval process. The PlanningOffice and the City t,ttorney's Office must both review and approve the final documents to ensure the changes and clarifications are accurately made. 26. Any further updating or amending of the approved timeshare documents must be approved through the City according to the requirements of Section 20-24 of the subdivision regula- tions. 27. The declarant may rent unsold units but the rental money must go toward any maintenance which may be necessary as a result of the unit's use as a rental. 28. The applicant must clarify throughout the timeshare application references to timeshare units versus references to timeshare interests. 29. Thirty percent (30%) of the qualified voters (present or represented by proxy) of the Factional Owners Association must be present to obtain a quorum. 30. The owners may not lease the common elements or amenities (excluding the employee unit) which they own as was proposed in the application. 31. To ensure compliance with the proposed marketing program, the applicant agrees to post with the City suitable security in the amount of a $20,000 irrevocable letter of credit. 32. Full details of the RCI exchange program (cost, procedures, other projects involved, confirmation percentages, etc.) must be provided to the purchasers of Prospector timeshare interests. 33. Assessment fees cannot be increased without written notice being given to the owners thirty (30) days prior to the effective date of the increase. Such written notice must explain the reason for the increase and document the need for the increase. 34. The applicant must submit to the Finance Director the license fee required by Section 20-24(S) of the Municipal Code, to be paid on a pro rata basis for the remainder of 1984, currently estimated at $2950.00. Prior to obtaining the license from the Finance Director, the applicant must first pay the outstanding fees owed to the Planning Office, currently estimated at $2990.00. The applicant shall annually obtain a new license from the Finance Director on or before January 1st of each subsequent year. CITY OF ASPEN 130 south galena street aspen, colorado 81611 303-925 -2020 MEMORANDUM DATE: January 20, 1986 TO: Planning Office FROM: City Attorney RE: Prospector Lodge - Request for Amendment to Timeshare Conditions The request appears appropriate in view of the problems which apparently have resulted from the condition and the City Council's willingness to relieve the project of this imposition. PJT/mc 3F HENDRAPDUN TO: City Attorney FROM: Steve Burstein, Planning Office RE: Prospector Lodge - Request for Amendment to Timeshare Conditions DATE: January 8, 1986 Attached for your review an application submitted by Nick McGrath on behalf of his client The Prospector Lodge (Security Pacific Finance Corp.), requesting an. amendment to Condition No. 13 of the Conditional Use (timeshare) and Subdivision approval grant by City Council on May 29, 1984 to The Prospector Lodge. This condition allows that no closing may take place until eight (8) of a total of fifteen (15) timeshare packages are sold for any given unit. Please review this material and return your comments to the Planning Office no later than January 28, 1986, in order to give this office adequate time to prepare for its presentation before City Council Thank you. 0 0 Last Telephone Unit Frischnecht 303-236-1394 101 Frischnecht 303-697-8129 101 WK WK WK Clos 49 30 31 N N%4 50 29 32 N -3-85 L- 11-4 Barish/Friedman 609-921-3022 106 13 14 48 Y Kugler 106 9 35 19 Y Lancaster 802-672-5201 106 _ 5 32 39 Y Palmer 106 28 29 42 _ N 8-,2-15 Shivoane/Fische Taylor _ 402-455-1348 I e - w Baird 106 106 106 203 3 8 1 3 33 38 24 13 _47Y 32 25 36 ? I-IS-gS -Y—'- ? NIA Coon 303-697-1633 203 Johnson 210-297-5070 203 9 52 42 Y s_ rvavn 203 4 524 Y Ross/Wallace 203 6 7 43 _ ?.��45 _- Ross/Wallace 1-469-9699 203 10 11 37 ? H-3-45 Ross/Wallace 203 30 38 39 ? -3 — Atwater 303-726-5775 205 6 27 40 Y Calkins 617-732-1407 205 52 12 39 Y Fisher 408-375-1470 265 7 37 44 Y eneses 305-454-8718 205 51 50 49 Y Merritt Merritt 715-839-5222 205 205 8 10 9 25 24 26 _ ? Y Rose 213-473-7796 205 3 33 47 Y Skrzypczak ?&3 ysi -s3'o 205 2 31 45 Y uKO Ace 913-649-1328 207 35 36 48 Y oy a 303-750-5384 207 4_30 39 Y _ _ __- Cargill 203-367-4400 207 5 6 38 Y arr 207 51 50 43 Y Hansen. 602-998-0442 207 11 25 44 Y argreaves/ture amen 1-4332-7248 207 7 31 40 Y au man 207 8 33 24 Y Peterson/Nelson - 4- 11 207 3 27 42 Y Smith, -Al- 14-689-5766 207 10 12 23 Y _ Smith, Pat 207 9 29_ 47 _Y evens i I lon 302 5 6 25 Y Uoldman - - 877 302 4 35 49 Y fflorr I son 302--- 51 50 . 23 Y Palmer _ _ 302 12 30 43 _Y Perls 505-268-8721 302 31 32 47 Y Prohaska 505-881-1100 302 10 11 40 Y Ruehr 406-256-4049 302 9 27 22 Y Sartain 409-238-4292 302 7 28 41 Y e on 302 8 33 24,-Y-- �— - Stevenson — 617-786-1600 302 _ 13 14 39 Y Ziegler 303-388-2883 302 52 29 48 Y _ Anders 817-478-4446 304 52 49 32 N 1-1�1H 5 10 Lit, In -Do Last Telephone Unit WK WK WK Clos Moore 713-333-2669 304 15 36 48 N 7 - z (-- ss Nash 205-837-9060 304 ___- 50 W 40 09 N 7. 2 4-45 ��„ 0 0 ON - Security Pacific Finance Corp. 10089 WILLOW CREEK ROAD • TELEPHONE (619) 578-6150 • SAN DIEGO, CALIFORNIA 92131-1690 December 30, 1985 Mr. Steve Burstein Director ASPEN/PITKEN COUNTY PLANNING OFFICE 130 South Galena Aspen, CO 81611 Re: Application of December 19, 1985, to Amend The Prospector Lodge Conditional Use Permit Dear Steve: Security Pacific Finance Corp. hereby applies for the referred Subject as it pertains to the elimination of the so-called Rule of 8 Sales of 15 from the Conditional Use Permit and other items made a part of the December 19, 1985 application by Attorney Nicholas McGrath, Jr. We enclose a check for $680 representing the fee involved. It is our understanding, after talking to Thomas Schober of Merit Investment Co. (of Aspen), Inc., that he will be joining Security Pacific in this application. Your assistance in effecting code changes as they affect The Prospector has been appreciated. Sincerely, Fred er Project dministrator Resort & Real Estate Financing FDM:klr Enclosure cc: Gary M. Linnabary J. Nicholas McGrath, Esq. Thomas Schober SUBSIDIARY: SECURITY PACIFIC CORPORATION • • or�, b AJ December 24, 1985 Aspen/Pitken County Planning Office 130 South Galena Aspen, CO 81611 Attention: Steve Burstein Re: Application to Amend Prospector Lodge Conditional Use Permit Dear Mr. Burstein: Merit Investment Co. (of Aspen), Inc., joins in the application of Security Pacific Finance Corp., dated December 19, 1985. Very truly yours, \0 ��Ichober,Prelsident, Merit Investment Co. (of Aspen), Inc. TS:nek r , TBECC, 78-5[ J. NICHOLAS MCGRATH, JR., P.C.ATTORNEY AT LAW600 EAST HOPKINS AVENUE SUITE 203ASPEN, COLORADO 81611 December 19, 1985 Aspen/Pitkin County Planning Office Attn: Mr. Steve Burstein 130 South Galena Aspen, Co. 81611 Re: Application to Amend Prospector Lodge Conditional Use Permit Dear Steve: I represent Security Pacific Finance Corp., which is the lender to the extent of over 3 million dollars on the Prospector Lodge timesharing project. This application is to amend the Prospector conditional use and subdivision approval permit as adopted on May 14, 1984. We anticipate that the developer Merit Investment Co. of Aspen will join application but ask that it be considered whether or not that be the case. By way of background, Security Pacific's note and deed of trust is in default, with over $600,000 in interest currently due. Security Pacific's desire to have the permit amended is a reflection of its security position. The principal reason for the application is to amend condition number 13 that allows no closings until eight of a total of 15 timeshare packages are sold for any given unit. Since Security Pacific's acquisition and development loan is repaid to the extent of approximately 40 percent of the proceeds of each sale this means that money is tied up without paying down that loan. Thus, interest is increasing; in order to recoop the interest, the developer must raise prices, which has an opposite effect of what is intended. We believe there is no sound reason for this so-called rule of eight. As you know it was applied on an ad hoc basis and does not appear in the timeshare ordinance itself. Since once there is any closing and parts of units are therefore timeshared all of the remainder must be timeshared as well under the city's ordinance. Hence, there is no reason of consumer protection or otherwise to maintain this particular condition, which works a hardship upon Security Pacific and the developer as well. By the way, several of the owners who are in limbo, that is who have purchased timeshare intervals but have not been able yet to close - 1 - LAW OFFICES J. NICHOLAS MCGRATH, JR. because of that rule have also expressed their view that the condition should be changed on the ground that it ties up their money without the ability to use the units, etc. All in all we would like that condition amended to eliminate any requirement for number of intervals in a particular unit being sold before a closing. The owner benefits by being able to close in the ordinary course and use his interval, the developer benefits by being able to use its approximately 60 percent for sales expenses (and many local sales expenses have been unpaid), and the like, and the lender (my client Security Pacific) benefits by being partially repaid on its loan. It is our understanding that there may be as many as 25 or 30 contracts that are not closed some of which may be lost by the mere passage of time. As long as we are seeking a change to the rule of eight, or condition 13 of the Prospector Lodge conditional use permit, there are a few other amendments we would desire. They are as follows: Condition Amendment 6 Amend the prohibited marketing practice and gifts by deleting it. The new amendment to the timesharing ordinance you will consider in January on second reading will provide the standards in this area. 9 Should be deleted as Timberline Realty and Terry Lining are no longer associated with the project. 13 The rule of eight; discussed above. 27 The use of rents solely for maintenance ought to be broader so that the condition says rent should be applied first toward maintenance then towards reduction of debt. It is our understanding that this amendment is both of a conditional use permit and of subdivision approval and therefore should go to the Planning and Zoning Commission and thereafter to City Council. - 2 - LAW OFFICES J. NICHOLAS MCGRATH, JR. Thank you very much. I look forward to meeting with you soon to discuss this. Naturally, in the circumstances, we would appreciate very prompt processing. cc: Paul Taddune, Esq. pm2:lberl219 Sincerely, I Nt.t -tt, Lkic"R-L J. Nicholas McGrath, Jr., P.C. - 3 - EADY n­ CARE M E D I CA L C L I N I C November 7, 1985 Prospector Lodge Attention: Mr. Buzz Fedorka 301 East Hyman Aspen, Colorado 81611 RE: My unit #304 that I purchased in December of 1984 RE: Rule of * 8 that must presently be sold out of 15 before closing can take place. Dear Buzz; I am very unhappy that I cannot use my condominium unit #304 yet because of some rule that requires 8 out of the 15 time slots to be sold before your company can "close-out" the unit and completely furnish the unit with the furniture, et cetera. As you know, I have already paid a substantial down -payment and have alread paid the closing costs that amounted to a total thus far of almost $8.000.00 (see copy of my receipts attached). I feel that the city ordinance that requires 8 out of 15 be "sold" is very unfair as it makes it impossible for me to use my property until 8 slots are sold in my unit. I therefore can't use the unit that I have already paid almost $8,000 for for my Winter ski trip, for trips to Aspen during the summer, et cetera. Not only is the city ordinance rule unfair to us owners of units, it is also unfair to the Aspen business community because the business community will be losing out on a lot of business if my family and friends can'-t use the unit until some time in the future when 8 out of 15 slots sell. If we are able to start using the unit, I am sure the other owners of units in the Prospector will have their family and friends coming to Aspen year-round to spend money in the Aspen business community. I am very pleased with my purchase of the unit and with you and your staff's professional attitude. Ya'11 have been very helpfu- thus far and I want you to do whatever you can to try and convince the City Of Aspen to repeal the unfair rule. Please let me know if there is anything that I can do from here to help. Sincerely, Dr. Steve Anders FAF :LY, INDUSTRIAL & MINOR EMERGENCY MEDICINE 4101 AIRPORT FREEWAY, SUITE* 101 • BEDFORD, TEXAS 76021 • 8 AM. - 9 P.M. 7 DAYS A WEEK • 283.5888 (METRO) 540-4333 MEMBER Or odn ASSOC{atlOn U W. KA,7 C,,,, B.S., D.D.S., M.S.D. dontlsts Practice Limited to Orthodontics __ Robertson Bldg., Room 207 M N. 4th Street — — P. 0. Boz 25 Lafayette, Indiana 47902 November 4, 1985 Mr. C. Welton Anderson Chairperson, Aspen Planning and zoning Conutission 130 S. Galena Street Aspen, Colorado 81611 Re: Timeshare Code Amendments November 19, 1985 Dear Mr. Anderson: (317) 742-2556 As an owner of weeks 43, 50 and 51, Unit 207 in The Prospector Lodge, I would request you favorably consider Amendments 1 and 2 to Section 20-24--Timesharing of the Aspen Municipal Code. In regards to Amendment 3, I would view the $5,000 annual license to not be unreasonable since it: 1) Is another way of collecting sales tax or preventing loss of revenue from owners living outside of Colorado who might not report from rentals made and collected out of state, and 2) since Point (S), Subpoint (6) says "Licenses shall be granted only if the project is in cc0pliance with the regulations of this section ......" indicates costs will be incurred by the City of Aspen in seeing the Prospector project is complying with subdivision code 20-24, I have read the Aspen subdivision code 20-24 very carefully and do not see any restriction in the code requiring 8 of 15 units to be sold (escrowed) before allowing closing of the sales. The copy of the subdivision code I have was given to me by the Aspen Planninq Office in Aspen, Octnher 31; 1985. If this restriction does in fact apply, then I believe it should have been in the code section with the numerous other restrictions. My wife, a City Council member in West Lafayette, Indiana, advises me that a restriction of this type would be in the code section of their City Code. My wife further tells me she would be afraid of passing a restriction of this type as being a restraint of trade. Are your restrictions on the number of units which have to be sold before closing the same on the other Timeshare project (Shadow Mountain Lodge)? The Aspen Daily News, Saturday, November 2, 1985 is reporting Shadow Mountain Lodge is only required to sell five fractions before closing. A principal of zoning and planning is an "across the board" application of the code or regulations. Are you developing and enforcing your code and regulations equitably? My wife, myself, and two children have been coming to Aspen for many years. I have been skiing here since 1958. As a family we have spent 9 of the last 11 Christmases in various locations in Aspen. My son has been in Aspen for all of the last eleven A Smile is Happiness Page 2 November 4, 1985 Christmases. Our visit to The Prospector at the end of October in the "off season" took place because of our ownership of a Timeshare unit at The Prospector. Our particular unit was occupied by another owner the previous week. Neither of our two groups of people would have spent time or money in Aspen this fall, if we did not own a Timeshare at The Prospector. Timesharing does seem to increase economic activity in Aspen in the "off season". lease help support the viability of The Prospector project by actions which support The Prospectors developer's opportunity to succeed in his project while also protecting the many absentee owners of units. Aspen is a lovely, wonderful place. Although we travel often and widely, it is the only place where we have ever wanted to go back to so often that we were willing to purchase a Timeshare. We are quite happy with our Timeshare unit overlooking Wagner Park. Sincerely, ;1 � LQf)?�� W. Ke114 Carr WKC:pas CC: Mayor of Aspen Mr. Tom Schober, President Merit Investment Co. Businesses visited during our stay. Budget Rent-A-Car, Karl's Drug Store, Aspen Drug Store, Crossroads Drug Store, Aspen Mine Co., Little Annie's, Chart House, Red Onion, Hickory House, Hills Photo Gallery, Aspen Sport, Guido Sport, Jraelin Ski, The next ski shop with an Italian type name, LaCantina, Cliff's Bakery, City Market, Andre's, Cookie Shop, and several women's shops. t ' • • MEMBER ���Of�IStS W. Kelle7 Garr, B.S., D.D.S., M.S.D. Practice United to OrtLodont►a. Ro6ertsou BId8.. Roo. 207 M N. 4tL Street P. O. Bo. 25 LaEaTette, Indiana 47902 November 4, 1985 Mr. C. Welton Anderson Chairperson, Aspen Planning and Zoning Commission 130 S. Galena Street Aspen, Colorado 81611 Re: Timeshare Code Amendments November 19, 1985 Dear Mr. Anderson: (317) 742-1556 As an owner of weeks 43, 50 and 51, Unit 207 in The Prospector Dodge, I would request you favorably consider Amendments 1 and 2 to Section 20-24--Timesharing of the Aspen Municipal Code. In regards to Amendment 3, I would view the $5,000 annual license to not be unreasonable since it: 1) Is another way of collecting sales tax or preventing loss of revenue from owners living outside of Colorado who might not report from rentals made and oollected out of state, and 2) since Point (S), Subpoint (6) says "Licenses shall be granted only if the project is in compliance with the regulations of this section ........ indicates costs will be incurred by the City of Aspen in seeing the Prospector project is couplying with subdivision code 20-24. I have read the Aspen subdivision code 20-24 very carefully and do not see any restriction in the code requiring 8 of 15 ,mits to be sold (escrowed) before allowing closing of the sales. The copy of the subdivision code I have was given to me by the Aspen Pl,-rul g Office in Aspen, October 31, 1985. If this -restriction does in fact apply, then I believe it should have been in the oode section with the numerous other restrictions. My wife, a City Council member in West Lafayette, Indiana, advises me that a restriction of this type would be in the code section of their City Code. My wife further tells me she would be afraid of passing a restriction of this type as being a restraint of trade. Are your restrictions on the number of units which have to be sold before closing the same on the other Timeshare project (Shadow MounLain Lodge) ? The Aspen Daily News, Saturday, November 2, 1985 is reporting Shadow Mountain Lodge is only required to sell five fractions before closing. A principal of zoning and planning is an "across the board" application of the code or regulations. Are you developing and enforcing your cone and regulations equitably? My wife, myself, and two children have been coming to Aspen for many years. I have been skiing here since 1958. As a family we have spent 9 of the last 11 Christmases in various locations in Aspen. My son has been in Aspen for all of the last eleven ASmile is Happiness • • Page 2 Novenber 4, 1985 Christmases. Our visit to The Prospector at the end of October in the "off season" took place because of our ownership of a Timeshare unit at The Prospector. Our particular unit was occupied by another owner the previous week. Neither of our two groups of people would have spent time or money in Aspen this fall, if we did not own a Timeshare at The.Prospector. Timesharing does seem to increase econcrdc activity in Aspen in the "off season". Please help support the viability of The Prospector project by actions which support The Prospectors developer's opportunity to succeed in his project while also protecting the many absentee owners of units. Aspen is a lovely, wonderful place. Although we travel often and widely, it is the only place where we have ever wanted to go back to so often that we were willing to purchase a Timeshare. We are quite happy with our Timeshare unit overlooking Wagner Park. Sincerely, W. KeLe-y Carr WKC:pas CC: Mayor of Aspen - Mr. Tcxn Schober, President Merit investment Co. ,t1� ! - .. _ 1. - . Businesses visited during our stay. Budget Rent-A-Car, Karl's Drug Stare, Aspen Drug Store, Crossroads Drug Store, Aspen Mine Co., Little Annie's, Chart House, Red Onion, Hickory House, Hills Photo Gallery, Aspen Sport, Guido Sport, Haelin Ski, The next ski shop with an Italian type name, LaCantina, Cliff's Bakery, City Market, Andre's, Cookie Shop, and several women's shops. U Ei FG EH' 'Cr_L P.u::wood Ct. 7429 clmhurs....re. N.W. v3alo 4SO17 N. Csndon, 6:4-76-$7uJ i,SPLn City Council ".spen Colorado 81612 Attn: President of City Council or Mayor • Dav:on, C::ic Sep; ember 26, 1985 Sus;�ct: Proposed Changes in Timeshare Ordinance ve.. •Ierr.en; :.Ote with interest your discussions conC:el:. -ati the above Ors 111ii1C.: ` 5 e=fect on buyers of Timeshare units. This was reportca in t'.: ._' _•:. i:.sue of the Aspen Times t•o which we subscribe. -va ...�oilt be interested in the effects on tile such as IGysell . ` Y --se of the inordinate delays in ciosiar; we are unabia to def-174 _'• 1aa our Spring vacations with our children a_:k: our fr_o.-.;s s; ::ce uo �:.a:,:e to definitely confirm that we vs--: - -ave ac,. , ss to our unit i e :_ave closed. This will mean that per.iaps 8 people will::ot b'a i.. cver t::e 2 weeks period with loss of inco...2 for merchaats and the We :Pave had $11,550•.00 plus closing- costs ci :'"'77.37 tied up for v.:.__-_:,- pariods beginning last March . Obviously we could ..se this money fo-- psrposcs. It is our understandina_it_is`e=_~ held ___escrow and we r.cl- should be earning interest to our account.____________ .eve - a --------------------�------------------------- T..e delays also interfere with our payout plans to off our in future deliberations please consider these effects on other buy,2s, c• .potential buyers,and the way it impL.-ts on the developers ability to se: a�.(Aizional units and promote e whole concept. My family , and friends, are lookingforward o - the use o� our u :�t :,�-:_;. Ynarch 4 nd hope we will not have to g� eIS--here. We are ta-Zillec at -Le prospects of owning a piece of Aspen if f,,.. several weeks. After 'u„ years of visiting it would be great to '—.,L "Our Own :lace." cc:Buss Fedorka; We are still looking for the List of furnishings for the unit. Sincerely : ___ .ar_e Blake