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HomeMy WebLinkAboutLand Use Case.330 E Main St.1983-PD-2HOTEL JEROME - 1983 ` 7] a Promissory Note -�FBDsn� i I� «-7- "11 flu �3 �a4 001 CITY OF ASPEN '�_"fl,#,sT 130 south galena street aspen, colorado 81611 303-925 -Z020 MEMORANDUM DATE: June 2, 1983 TO: Wayne Chapman Kathryn Koch Sheree Sonfield FROM: Gary Esarc. RE: Hotel Jerome Promissory Note Kathryn, attached is the original Hotel Jerome Promissory Note for your custody. According to the P.U.D. Agreement, the Note is to be held by us in escrow until the date of issuance of a building permit for the parking garage or 60 days after the date of issu- ance of a building permit for the Hotel Jerome renovation, which- ever date is later. Also, there are some blanks to be filled in on Pages 1 and 4 of the Note when it comes out of escrow. GSE/mc Attachment (Principal Amount) PROMISSORY NOTE (Effective Date) , 198 FOR VALUE RECEIVED, JOHN GILMORE (hereinafter "Maker") promises to pay to the order of the CITY OF ASPEN, COLORADO, a municipal corporation and home -rule city (hereinafter "Payee"), at 130 South Galena, Aspen, Colorado 81611, the principal sum deter- mined in accordance with the provisions of Paragraph 1 below, together with simple interest thereon from the effective date hereof until fully paid at the rate(s) determined in accordance with the provisions of Paragraph 2 below, such principal and inter- est to be payable in the manner described in Paragraph 3 below. 1. This Note evidences Maker's obligation to reimburse Payee for Maker's proportionate share of the total construction cost of the vehicular parking structure being built by Payee on the Rio Grande property in the City of Aspen, Pitkin County, Colorado. The principal amount hereof shall be determined by multiplying a fraction, the numerator of which is 60 and the denominator of which is the total number of parking spaces being constructed, times the portion of the total construction cost (including design, pre - construction and construction costs, and financing costs including capitalized interest on bonds, reserve funds, and bond issuance costs) which is directly related to the parking garage aspect of such structure, and then subtracting the sum of $100,000.00 as • 0 previously deposited by Maker in escrow with Payee plus all interest earned on such escrowed amount from the date of its deposit with Payee to the effective date of this Note. The said principal amount hereof shall be calculated by Payee in accordance with the foregoing definition, and shall be entered by Payee in the blank provided for such purpose at the top of this Note, at the time and on the date this Note is delivered out of escrow to Payee (ie. on the "effective date" of this Note). 2. Payee (or an alternate issuing authority) has issued a tax increment bond(s) or some other type of bond(s) in at least the principal amount of this Note for purposes of funding Maker's pro- portionate share of the total parking structure construction cost as above defined. The principal amount hereof shall bear simple interest (which interest may be variable) from the effective date hereof until fully paid at the same interest rate(s) as Payee's (or other issuing authority's) bond issue rate(s) under the above - mentioned bond(s). 3. Principal and interest shall be due and payable in con- secutive monthly installments in such amounts as are necessary to cover principal of, redemption premiums, if any, and interest on the Payee's (or other issuing authority's) bond(s) (including refunding bond(s), if any), and other obligations of the issuer pursuant to the bond ordinance, resolution or indenture, and over the same period of time as Payee's (or other issuing authority's) -2- Ll bond(s) (including refunding bond(s)) obligation under the above -mentioned bond(s). Such monthly installments shall commence on the first day of the calendar month following the effective date of this Note, with all remaining principal and unpaid accrued interest being due and payable with the final monthly payment. 4. To the extent permitted by the bond issuing authority and subject to such limitations and requirements as may be imposed by such authority at the time of the issuance of the related bonds(s), Maker shall have the right to make advance, additional or prepay- ments in any amount at any time and from time to time without notice or penalty. Such payments shall be applied first to accrued interest and then to the outstanding principal balance. 5. At the option of Payee, the entire outstanding principal and interest balance of this Note shall become immediately due and payable, without notice or demand, upon the transfer by Maker to a third person or persons (by sale, foreclosure, operation of law, or otherwise) of a controlling interest in the Hotel Jerome property situated in the City of Aspen, Pitkin County, Colorado. 6. In the event Maker defaults in the performance of any of his obligations hereunder, accrued interest and principal shall, from and after the date of such default, bear interest at the rate of eighteen percent (18%) per annum until such default is cured by Maker. In the event that any unpaid balance due under this Note should be collected by an attorney, whether by court action or otherwise, Maker hereby agrees to pay reasonable attorneys' fees and all other costs of any such collection action. -3- 7. This Note shall be governed as to validity, interpreta- tion, construction, effect, and in all other respects by the laws and decisions of the State of Colorado. Maker understands and agrees that the courts of the State of Colorado shall have subject matter jurisdiction to entertain any action brought to enforce or collect upon this Note, and by execution hereof, Maker voluntarily submits to personal jurisdiction of the courts of the State of Colorado, notwithstanding the place of execution hereof, Maker's residence or principal place of business, or the nature or scope of any activities or events which may have occurred in other states. Provided, however, such jurisdiction shall not be exclusive and, at its option, Payee or its assignee may commence such action in any other state exercising concurrent jurisdiction. 8. This Note shall be assignable by Payee to any bond issuing authority. 9. The Maker, endorsers, sureties and guarantors of this note jointly and severally waive presentment for payment, notice of non-payment, protest and notice of protest. 10. This Note is secured by that certain collateral assign- ment and pledge of "transportation charge revenues" being collected by Maker from the operation of the Hotel Jerome as set forth in Paragraph 7(c) of that certain Planned Unit Development Agreement - Hotel Jerome - Renovation and Addition dated April , 1983 and recorded in Book at page of the Pitkin County, Colorado -4- 7j real property records, all pertinent provisions of which P.U.D. Agreement are hereby incorporated herein and made a part hereof by this reference. Said Book and page references shall be filled in by Payee at the time this Note is delivered out of escrow to Payee. Executed this/r day of April, 1983. MAKER: J r F. Gilmore -5- • bfic.444 rvi 0 750 PLANNED UNIT DEVELOPMENT AGREEMENT HOTEL JEROME - RENOVATION AND ADDITION 15J0*73 LO ETTA BANNER PITKIN CTY. RECORDER Kqy N 2 u Pik'83 THIS AGREEMENT, made and entered into this day of April, 1983, by and between the CITY OF ASPEN, COLORADO, a munici- pal corporation and home -rule city (hereinafter referred to as "City"), and JOHN F. GILMORE (hereinafter referred to as "Owner"), W I T N E S S E T H: WHEREAS, Owner has submitted to the City for approval, execu- tion and recording a Final Planned Unit Development (P.U.D.) Plat (hereinafter referred to as the "Plat") pertaining to the develop- ment of a project known as the "Hotel Jerome - Renovation and Addition" (hereinafter referred to as the "Project") on a parcel of real property more particularly described as follows: Lots A, B, C, D, E, F, G, H, I, 0, P, Q, R, S and the East 20 feet of Lot N, Block 79, together with the East 170.78 feet of the vacated alley in said Block 79, City and Townsite of Aspen, County of Pitkin, State of Colorado; and WHEREAS, the P.U.D. application was filed in conjunction with an application for rezoning of a portion of the above -described real property and applications for Growth Management Quota System ("GMP") exemptions; and ( t • E' ,1044• Oki - WHEREAS, the subject property is located within an area of the City zoned CC -Commercial Core (by virtue of the above -refer- enced rezoning); and WHEREAS, the City has fully considered said Plat, the pro- posed development and improvement of the land therein, and the burdens to be imposed upon other adjoining or neighboring proper- ties and the downtown area in general by reason of the proposed development and improvement of land included in the Plat; and WHEREAS, the City, in considering the proposed development site and proposed improvements, has found and hereby does find the following: the area of the proposed P.U.D. is substantially covered by a deteriorated and deteriorating building of historic significance; the development area has a faulty lot layout in relation to adequacy, accessibility and usefulness; the develop- ment area contains potentially unsafe conditions; the development area has a site and improvements subject to further deterioration unless the planned development is carried out; and the development area contains conditions that potentially endanger life and pro- perty by fire and other causes; and WHEREAS, the City also has found and hereby does find that the present condition of the P.U.D. area substantially impairs the sound growth and future potential economic health of the munici- pality and is a potential menace to the public health, safety and welfare unless the planned development is carried out; and 2 EIJC-444 WHEREAS, the City, in considering the proposed development site and proposed improvements, has found and hereby does find the following: that the area of the proposed P.U.D. has a predomi- nance of buildings and improvements that are dilapidated, deteri- orated and deteriorating, aging and obsolescent; the area has con- ditions that potentially endanger life or property by fire and other causes and is presently, on the whole, potentially detri- mental to public health, safety and welfare unless the planned development is carried out; and WHEREAS, the proposed development will eliminate approxi- mately thirty (30) parking spaces from the parking lot behind the Hotel Jerome and from parking spaces along Bleeker and Main Streets and the development of approximately 75,000 square feet of new commercial space and renovation of existing under-utilized commercial space will generate the need for additional parkinq and other municipal improvements in the location and vicinity of the development and elsewhere in the downtown area; and WHEREAS, the downtown Aspen area is presently in need of parking and other physical improvements and the proposed develop- ment will add significantly and impermissibly to these needs if the development does not support such municipal improvements; and WHEREAS, the development (including the development of a contemplated 400-vehicle municipal parking structure and related necessary public improvements) is necessary to prevent the urban blight, potential slum conditions and associated public health, 3 444 !'ArE 0 welfare and safety problems as above -described, and, therefore, the City finds that it is in the public interest to approve the proposed development and its associated municipal improvements; and WHEREAS, the Owner stipulates and agrees to the foregoing findings of the City and acknowledges that the proposed develop- ment, the related municipal improvements and the potential blight and slum conditions are inextricably interrelated; and WHEREAS, the City is willing to approve, execute and accept for recordation said Plat upon the agreement of Owner to the mat- ters hereinafter described, and subject to all the requirements, terms and conditions of the City of Aspen Subdivision and P.U.D. Regulations now in effect and such other laws, rules and regula- tions as are or may become applicable; and WHEREAS, the City has imposed conditions and requirements in connection with its approval, execution and acceptance for record- ation of the Plat, and such matters are necessary to protect, pro- mote and enhance the public health, safety and welfare; and WHEREAS, under the authority of Section 20-16(c) and Section 24-8.1 et seq. of the Aspen Municipal Code, the City is entitled to assurance that the matters hereinafter agreed to will be faith- fully performed by Owner; and WHEREAS, Owner is willing to enter into such agreement(s) with, and to provide such assurance(s) to, the City. 4 444 p.,�• NO�4, THEREFORE, in consideration of the premises, the mutual covenants herein contained, and the approval, execution and accep- tance of the Plat for recordation by the City, it is agreed as follows: 1. Sidewalks, Curb and Gutter. Prior to the issuance of a Certificate of Occupancy for the Project, Owner shall construct new sidewalks along the entire Project frontages on Main, Monarch and Bleeker Streets (8-foot minimum width on Main Street, 6-foot minimum width on Monarch and Bleeker Streets), together with curb and gutter, all as reasonably determined by the City Engineer, in accordance with the Landscape Plan submitted herewith, the appli- cable provisions of Chapters 19 and 20 of the Aspen Municipal Code, as amended, and accepted engineering standards and prac- tices. Pursuant to those obligations, Owner shall repair or replace any existing (or newly installed) sidewalks, curb or gut- ter that may be damaged during construction. The current esti- mated schedule and cost of such improvements is contained in Exhi- bit "A", attached hereto and incorporated herein by this refer- ence. Such cost estimate shall be updated by the City Engineer when Owner actually applies for a Building Permit for the Project and Exhibit "A" shall be amended accordingly at that time. 2. Other Physical Improvements. Prior to the issuance of a Certificate of Occupancy for the Project, Owner shall provide and install such water lines and fire hydrants, sanitary sewer lines, storm drainage improvements and storm sewers, and such other phy- 5 444 r55 sical improvements, as may be reasonably required pursuant to Sec- tion 20-16(a) of the Municipal Code, in connection with the Pro- ject and according to normal City specifications, the schedule and cost of which include, without limitation, those contained in Exhibit "A". Such cost estimate shall be updated by the City Engineer when Owner actually applies for a Building Permit for the Project and Exhibit "A" shall be amended accordingly at that time. The current estimated cost of such improvements does not include sewer and water taps, plant investment fees and related fees, which will be calculated and paid prior to issuance of a Building Permit according to the then -standard practices and charges of the sewer district and water department. 3. Landscaping Improvements. In accordance with Section 24-8.16 of the Municipal Code, all required landscaping shall sub- stantially conform to the "Landscape Plan" annexed to the Plat and incorporated herein by reference, which shows the extent and loca- tion of all plant materials and other landscape features, .flower and shrub bed definition, proposed plant material at mature sizes in appropriate relation to scale, species and size of existing plant material, proposed treatment of all ground surfaces (e.g., paving, turf, qravel, etc.), location of water outlets, and a plant material schedule with common and botanical names, sizes and quantities. Landscaping will he completed in a logical phasing sequence commensurate with the phasing of the improvements contem- plated in the Construction Schedule, but in no event later than 6 44 6 4 rnr (� one (1) year after the date of the Certificate of Occupancy for the Project. The current estimated cost of such landscaping improvements is agreed by the City Engineer to be $10,000.00. Such cost estimate shall be updated by the City Engineer when Owner actually applies for a Building Permit for the Project and Exhibit "A" shall be amended accordingly at that time. It is the mutual understanding of the parties that a Certificate of Occu- pancy may issue for the Project even though the landscaping improvements have not yet been completed, so long as the portion of the guaranty provided for in Paragraph 5 hereof which covers the estimated cost of such unfinished landscaping remains avail- able pursuant to the terms of said Paragraph 5. 4. Construction Schedule. Owner represents to City that an accurate construction schedule cannot be submitted at this time. Owner anticipates that construction of the Project will commence no later than August of 1985 and be completed no later than Decem- ber of 1986. Prior to the issuance of a Building Permit for the Project and as a condition precedent thereto, Owner agrees to pro- vide the City Engineering Department with a detailed construction schedule, to the satisfaction of the City Engineer and Chief Building Official, which shall particularly address how construc- tion phasing and other techniques will best accommodate under the circumstances (a) barricading and provision of pedestrian protec- tion, (b) excavation access and large truck traffic and staging areas, (c) delivery and storage of major materials, (d) construc- 7 N ►. tion equipment access and storage, and (e) contractor vehicle parking. Such construction schedule shall be verified by the signatures of the City Engineer and the Chief Building Official and recorded as a supplementary exhibit hereto. Amendments to the construction schedule, if any, shall be processed in the Project Review process established in Paragraph 10 hereof, verified by signatures of the City Engineer and Chief Building Official, and recorded as supplementary exhibits hereto. 5. Financial Assurances. In order to secure the perfor- mance of the construction and installation of the improvements described in Paragraph 1, 2 and 3 above, and to guarantee one hun- dred percent (100%) of the current estimated cost of such improve- ments agreed by the City Engineer to be $45,058.00 (as such amount may be updated from time to time as herein provided), Owner shall guarantee, by sight draft or letter of commitment or credit from a financially responsible lender (either or both to be irrevocable until such construction is completed), that funds in the amount of such estimated cost are held by it for the account of Owner for the construction and installation of the above -described improve- ments. Said guaranty shall be delivered to the City prior to the issuance to Owner of a building permit for the Project, shall be in a form acceptable to the City Attorney and the City Manager, and shall give the City the unconditional right, upon default by the Owner, to withdraw funds upon demand to partially or fully complete and/or pay for any of such improvements or pay any out- Eu,1.444. w:f 0 758 standing bills for work done thereon by any party, with any excess guaranty funds applicable to additional administrative or legal costs associated with any such default and the repair of any deterioration in improvements already constructed. As portions of the required improvements are completed, the City Engineer shall inspect them, and upon approval and written acceptance, he shall authorize the release from the guaranty delivered by Owner of the agreed estimated cost for that portion of the improvements except that ten percent (10%) of the estimated cost shall be withheld until all proposed improvements are completed and approved by the City Engineer. Provided, that the withheld ten percent (10%) which relates to the improvements described in Paragraphs 1 and 2 above shall be released by City upon completion and approval by the City Engineer of all such Paragraph 1 and 2 improvements and regardless of the stage of completion of landscape improvements described in Paragraph 3 above. The Owner also agrees to deliver to the City, upon demand therefor by the City Engineer, a maintenance bond or other suit- able guarantee for the repair or replacement of any existing muni- cipal improvements damaged during construction of new improve- ments. Furthermore, Owner hereby agrees to and does hereby warranty all such improvements to accepted standards of good workmanship for a period of one (1) year from and after acceptance thereof in writing by the City. In addition to this warranty, the Owner 0 • �',nl 44. Pvr� Q 759 shall obtain from his contractors customary warranties of good workmanship with the City as beneficiary, with respect to all improvements required by Paragraphs 1, 2 and 3. It is the express understanding of the parties that the pro- cedure set forth in Paragraph 13 of this Agreement regarding non- compliance shall not be required with respect to the enforcement and implementation of the financial assurances set forth herein and required by Section 20-16(c) of the Municipal Code. 6. Employee Housing. As an inducement to the City to approve the P.U.D., Owner has agreed to and does hereby acknow- ledge his obligation to provide nineteen (19) "employee housing" bedrooms as described herein and defined by the Code and regula- tions of the City of Aspen or its designee, in connection with the Hotel Project. Prior to the issuance of a Certificate of Occu- pancy for the Project, and as a condition precedent thereto, Owner agrees to and shall provide for use by Hotel employees a minimum of fifteen (15) off -site employee bedrooms, deed restricted to City employee -housing rental and sale price, qualifications and occupancy guidelines in effect at the time such bedrooms are so provided, which bedrooms shall be in income categories, sizes, configurations (including facilities and amenities) and loca- tion(s) as may be acceptable to the City (or its designee, which may be the Aspen/Pitkin Housing Authority), by constructing new deed restricted units or by purchasing existing free market units and converting them to deed restricted "employee housing" status. U111 444- fAf,f 0 r60 Provided, that the Owner shall have the right in future to substi- tute other off -site employee bedrooms for some or all of the fif- teen (15) off -site bedrooms initially provided as above required, so long as (i) the location, size and configuration of such sub- stitute bedrooms is acceptable to the City or its designee, (ii) the minimum number of acceptable employee bedrooms required by this Paragraph 6 remains available at all times, and (iii) the same deed restrictions are imposed upon the substitute units prior to occupancy of the substitute units. Upon the completion of such substitution as above required, the City shall release the deed restrictions upon those off -site bedrooms which have been replaced with substitute bedrooms. In addition to the fifteen (15) off -site employee bedrooms, Owner shall provide, prior to the issuance of a Certificate of Occupancy for the Project and as a condition precedent hereto, four (4) covenant restricted on -site employee bedrooms within the Project itself, each of which bedrooms shall be at least 180 square feet in size and shall be used solely by Hotel employees, and shall deliver to the City an appropriate written covenant covering such bedrooms in a form approved by the City Attorney and acceptable for recording. Should the Owner secure more than fif- teen (15) off -site employee bedrooms, Owner's on -site employee bedroom requirement shall be reduced exactly by the number of off - site units in excess of fifteen (15). 11 Should the Owner, at the time of the Certificate of Occupancy for the Project, not have provided all of the required 15 off -site employee housing bedrooms, he shall, prior to the issuance of the Certificate of Occupancy and as a condition precedent thereto, covenant -restrict that number of bedrooms within the Project necessary to cover any shortfall in the off -site housing require- ments, which temporary restricted bedrooms must meet the same City employee housing guidelines as Owner's off -site housing would have been required to meet under the terms hereof, and which temporary restricted bedrooms shall thereafter be released from said cove- nants when Owner does provide the required number of off -site employee bedrooms in the manner above required. The deed restriction and covenant restriction and release forms shall be approved as to form by the City Attorney prior to recordation. 7. Off -site Parking. A condition of the approvals granted herein and herewith is the requirement that the Owner provide 60 off -site parking spaces in connection with the Project. Thus, as a condition of the approvals granted herein and herewith, Owner agrees to provide 60 off -site parking spaces in connection with the Project in the manner hereinafter described. Owner agrees to participate with the City in the financing, design, construction, operation and maintenance (including necessary capital expendi- tures) of a 400-vehicle parking structure on the Rio Grande pro- perty, to the extent of 60 spaces for Hotel guests and employees. 12 • buc-444 pp;,, 0 '162 At such time as the City undertakes the construction of this structure, Owner shall and hereby agrees to participate propor- tionately (based on the need for 60 spaces) in the financing, design, construction, operation and maintenance (including neces- sary capital expenditures) of the parking garage aspect thereof, such financial participation to be in the form described below. (A) Owner's proportionate share of the cost of constructing the parking structure shall be determined by multiplying a frac- tion, the numerator of which is 60 and the denominator of which is the total number of parking spaces to be constructed, times the portion of the total construction cost ((including financing costs (including capitalized interest on bonds, reserve funds and bond issuance costs), design, pre -construction and construction costs)) which is directly related to the parking garage aspect of such structure. Owner shall and hereby agrees to finance and pay for such share of the construction cost and to evidence and secure such obligation in the following manner: (a) No later than sixty (60) days following the issu- ance of a Building Permit for construction of the Hotel Pro- ject which is the subject of this Agreement, Owner shall deliver to the City in the form of cash or certified funds the sum of One Hundred Thousand Dollars ($100,000.00) as a down payment on such share. If no Building Permit for a parking garage has been issued prior to the date of this downpayment, the City shall promptly escrow such funds in an interest bearing account with all interest earned thereon to accrue to the credit of owner and be applied to "the balance of Owner's share" in calculating the xxxxxxxxxxxxxxxxxxxxxxxxxxxx 13 VuL '44.4. PA!;Q 7 6 J original principal amount of the below -described Promissory Note until the date of issuance of a Building Permit for the parking structure, on which date this escrow shall be termi- nated and all funds remaining therein shall be delivered to the City. Further in consideration of Owner's agreement here- in to participate (and Owner's actual participation) in the cost of the financing, design, construction, operation and maintenance (including necessary capital expenditures) of a municipal parking structure, City agrees that if a Certifi- cate of Occupancy is issued for the Hotel Project before a Certificate of Occupancy is issued for the parking structure, the City shall provide interim parking in the following man- ner: (i) The City shall in the interim, if any, between the occupancy of the hotel and the occupancy of the parking garage provide for Owner's use and operation fifteen (15) designated parking spaces at the existing Rio Grande lot and forty-five (45) unassigned spaces at the existing Golf Course lot. The right to any such spaces shall expire upon the issuance of a Certificate of Occupancy for the above -referenced parking garage. The right to any spaces in the Rio Grande lot after the issuance of a building permit for the parking garage shall be subject to availability, which may be limited 14 444 0 "16 4 by construction of the parking garage, and City shall make up at the Golf Course lot any such spaces which are lost from the Rio Grande lot. During such interim period, Owner shall be responsible for maintaining ade- quate liability insurance covering all such spaces and for the operation of all such spaces and for the storage and retrieval of the Golf Course lot vehicles and/or passengers and hotel guests and for the supervision of Hotel vehicles in the Rio Grande lot by whatever admin- istrative means (e.g. shuttle buses, etc.) Owner deems appropriate. City shall, however, be responsible for keeping the necessary portions of both lots clear of snow. Owner shall and hereby does indemnify City from and against any and all claims or liabilities for per- sonal injury or property damage arising out of Owner's use of such parking spaces except those claims caused by City's negligence or intentional acts. (ii) The rental market value of the sixty (60) spaces is stipulated to be $2,812.50 per month (such value based on present monthly cost for parking space rental within the City of Aspen at $75.00 for downtown spaces and $37.50 for non downtown spaces). (iii) During any period prior to the issuance of a Building Permit for the parking structure that the Owner is using the City -provided parking spaces, the City 15 *U'1444 PA(IE p 765 shall draw from the escrow account the amount of $2,812.50 per month in compensation for the allowed use of the sixty (60) spaces. (iv) From and after the date of issuance of a Building Permit for the parking structure (and if such Permit is issued within 2 years of the issuance of a Certificate of Occupancy for the Hotel as provided in Paragraph 7(A)(e) hereof), the delivery to the City of the escrowed downpayment funds and Promissory Note shall be deemed compensation in full for any further use by Owner of the 60 interim parking spaces, and all amounts previously withdrawn from the escrow shall be credited back to Owner in determining the "balance of Owner's share" for purposes of calculating the principal amount of the Promissory Note described in paragraph 7(A)(b) below. (b) The "balance of Owner's share" shall be represented by Owner's Promissory Note to the City as holder which Note shall be dated, executed and deposited into escrow with the City as of the date of execution of this Agreement by all parties hereto. The Note shall be delivered out of escrow to the City and become a debt (i.e. its "effective date" shall be) on the date of the issuance of a building permit for the construction of the parking garage or 60 days following the date of issuance of a Building Permit for the Hotel Project, whichever date occurs later. The Note shall be in a form identical to that attached hereto as xxxxxxxxxxxxxxxxxxxxxxxxxxxx 16 WIU,I 444 wi p o 766 Exhibit "B" and bearing simple interest (which interest rate may be variable) at the same interest rate(s) as the City's (or other issuing authority's) bond issue rate(s) under Paragraph 8 hereof and reciting an 18% default interest rate, and payable in consecutive monthly installments of principal and interest in such amounts as are necessary to cover principal of, redemption premiums, if any, and interest on the City's (or other issuing authority's) bond(s) (including refunding bond(s),if any), and other obligations of the issuer pursuant to the bond ordinance, resolution, or indenture and over the same period of time as the City's (or other issuing authority's) bond(s) (including refunding bond(s)) under Paragraph 8 hereof, commencing on the first day of the calendar month following the month in which the Note is delivered with all remaining principal and accrued interest being due and payable with the final monthly payment. To the extent permitted by the bond issuing authority and subject to such limitations and requirements as may be imposed by such authority at the time of the issuance of the bond(s),said Note shall be prepayable in any amount at any time and from time to time without penalty or notice and shall be assignable by City to any bond issuing authority. (c) As security for said Note, Owner hereby covenants and agrees that from and after the date of delivery to the City of said Note, and continuing for so long as any portion of said Note remains unpaid, Owner shall collect as part of the daily room rental rate for all rental rooms at the Hotel not deed -restricted to employee housing a "transportation 17 charge" in the minimum amount of $5.00 per day on every room rental, and shall maintain a separate and accurate accounting of the revenues generated thereby. Owner shall and hereby assigns and pledges to City such transportation charge revenues as collateral for Owner's performance of his Promis- sory Note obligations and agrees to remit to the City each month the portion of such transportation charge revenues necessary to retire that month's Note installment obligation. So long as any portion of said Note remains unpaid, Owner shall maintain a "transportation revenues reserve account" in a responsible banking institution containing sufficient funds to pay one (1) monthly Note installment obligation in advance, but shall otherwise be free to utilize such other transportation charge revenues for his own purposes unless and until such time as City finds it necessary to exercise its collateral pledge rights in the event of Owner's default in the performance of his Promissory Note obligations. In the event Owner shall ever be late in paying a monthly Note installment obligation to the City, the City shall have the right to demand that Owner increase the amount held in such reserve account to cover three (3) monthly Note installment obligations in advance. Owner agrees to comply with such demand and thereafter to maintain the reserve account at the three (3) month level. City shall have the right to examine all records necessary to audit the transportation charge W • *611,, 444 PnrE 0 768 accounting and the related reserve account at any reasonable time or times. The foregoing pledge shall be assignable by City to any bond issuing authority. (d) Owner further agrees that the subject Promissory Note shall contain a provision to the effect that in the event that controlling interest in the Hotel Project is transferred from John F. Gilmore to a third person or persons (by sale, foreclosure, operation of law, or otherwise), while said Note remains unpaid, the City shall have the right (but not the obligation) to declare the entire remaining balance of said Note immediately due and payable as of the effective date of such transfer. (e) Should the City fail to obtain a Building Permit for the construction of a parking structure within two years of the issuance of a certificate of occupancy for the Hotel Project, Owner shall have the right and option to implement an alternative plan for the provision of the required 60 parking spaces, or to demand that the City negotiate, in good faith, a long term lease (no less than 15 years) for the 60 parking spots on the Rio Grande and Golf Course Parking Lots. In this event, any balance in the funds escrowed pursuant to Paragraph 7(A)(a) (iii) (being principal plus accrued inter- est minus monthly rental payments made) shall be credited to Owner in any new lease arrangement or refunded to him if an alternative parking plan is adopted, and in either case the 19 roc► 444 rAt,E 0 769 escrowed Promissory Note shall be redelivered to and can- celled by Owner. (B) In addition, Owner shall be responsible for his propor- tionate share of the annual costs, expenses, and necessary capital expenditures of operating, maintaining and repairing the parking garage aspect of the parking garage structure following its com- pletion. Owner hereby further assigns and pledges unto City the "transportation charge" revenues collected from time to time by Owner pursuant to Paragraph 7(A)(c) above as collateral for Owner's performance of his obligation to pay a proportionate share of such annual operational, maintenance and repair costs, expenses and necessary capital expenditures. The foregoing pledge shall be assignable by the City to any garage operating authority. (C) In consideration of the above -described financial parti- cipation and subsequent operational cost sharing, Owner shall be entitled to the perpetual use and enjoyment of a defined block of sixty (60) parking spaces in the structure, free of parking fees. Should the City deem it appropriate to condominiumize the parking spaces in the parking structure, City shall deed to Owner his 60 spaces together with his proportionate undivided interest in appurtenant general common elements. 8. Tax Increment Financing and/or Industrial Development Bond Financing. Owner shall and hereby consents to the City's (or 20 444 pm;( 0 770 other governmental or quasi -governmental entity or non-profit corporation) issuance, if possible, of a "tax increment bond(s)", or other type of bond, in at least the amount of the balance of Owner's share of the parking structure construction cost (including design, pre -construction and construction costs and financing costs such as capitalized interest costs, if any, reserve funds, and bond issuance costs), the proceeds of which bond(s) may be applied by the City to the construction of the subject parking structure and for any other lawful improvement project. Such bond(s) shall bear simple interest at a rate(s) to be determined by the issuer, shall be retirable over a period of not more than 25 years (or other lawful term), and shall be secured by a pledge by the City (or other issuing authority) of the increase in real property taxes and/or sales tax assessed to the Hotel Jerome property which will occur as a normal consequence of the renovation and expansion thereof contemplated by this Agreement (or by other lawful security available to the City or other issuing authority). However, the bonding itself will cause no additional takes or other charges to be imposed upon Owner other than the above -referenced "balance of Owner's share", and the consent of Owner provided for herein shall not be interpreted as a consent to any form of special assessment district that would result in an increase in the real property taxes being levied upon the hotel property. City will, of course, be reimbursed on a continuing basis for its bond retirement obligations relating to the Hotel share of the parking structure by the monthly installment payments being made by Owner under the above -described Promissory Note. 21 '+ 444 FAr 0 7 71 The Owner further agrees that if Owner has in fact decided to proceed with the development of the Project approved hereunder, Owner shall use his best efforts to cooperate with the City (or other governmental or quasi -governmental entity) in the issuance and sale of any Industrial Development Bonds in connection with the financing of the parking structure, so long as Owner's parti- cipation, if necessary, in any such industrial development bonding effort complies with all applicable laws and restrictions. 9. Planter Encroachments. Owner agrees to obtain such approvals and/or licenses as may be necessary with respect to planters which encroach into public sidewalks, prior to the issu- ance of a building permit for such planters. 10. Periodic Project Reviews. Owner agrees that every six (6) months following the date of final City approval of this Pro- ject until the construction thereof is complete, he will meet with the City Planning Office for the purpose of informing the Planning Office as to his progress in developing the Project pursuant to the terms and provisions of this Agreement. If the Planning Office deems it necessary, the Planning Office will report to the City Planning and Zoning Commission on the outcome of one or more of these meetings. The Owner and the City recognize that these meetings are not opportunities for the Owner to avoid complying with the requirements of this Agreement but are for purposes of providing progress reports and developing mutually acceptable W ' • • ojc-444 rnt 0 772 solutions to any problems that may be encountered during the con- struction period. 11. Permanent Care and Maintenance of Landscaping. Owner agrees that it shall be the perpetual responsibility of the owner or owners from time to time of the Hotel Jerome property to main- tain, care for, and replace when necessary, all trees, shrubs, plants, and other landscaping features which may be planted in connection with or which are otherwise incorporated in the Hotel Jerome Project pursuant to the Landscape Plan submitted to the City as a part of the Final Plat. 12. Use and Maintenance of Open Space. Owner shall occupy the Project Open Space (i.e. the exterior patio and pool areas shown on the Landscape Plan) for such uses as may from time to time be deemed appropriate by Owner, provided that such occupancy and uses shall at all times be in compliance with the then -appli- cable provisions of the Aspen Municipal Code. Owner agrees that it shall be the perpetual responsibility of the owner or owners from time to time of the Hotel Jerome property to maintain in a clean and attractive condition and in a good state of repair all such Open Space contained within the Project. 13. Non -Compliance and Request for Amendments or Extensions by Owner. In the event that the City Council determines that the Owner is not acting in substantial compliance with the terms of this Agreement, the City Council may issue and serve upon the Owner a written order specifying the alleged non-compliance and 23 0 buc. 44.4 PAt;t 0773 requiring the Owner to cease and desist from such non-compliance and rectify the same within such reasonable time as the City Coun- cil may determine. Within twenty (20) days of the receipt of such order, the Owner may file with the City Council either a notice advising the City Council that it is in compliance or a written petition requesting a hearing to determine any one or both of the following matters: (a) Whether the alleged non-compliance exists or did exist, or (b) Whether a variance, extension of time or amendment to this Agreement should be granted with respect to any such non-compliance which is determined to exist. Upon the receipt of such petition, the City Council shall promptly schedule a hearing to consider the matters set forth in the cease and desist order and in the petition. The hearing shall be convened and conducted pursuant to the procedures normally established by the City Council for other hearings. If the City Council determines by a preponderance of the evidence that a non- compliance exists which has not been remedied, it may issue such orders as may be appropriate; provided, however, no order termi- nating any approval granted herein shall be granted without a finding of the City Council that substantial evidence warrants such action and affording the Owner a reasonable time to remedy such non-compliance. A final determination of non-compliance which has not been remedied or for which no variance has been 24 boor; 444 PAGE 77444 granted shall, at the option of the City Council, and upon written notice to the Owner, terminate any of the approvals contained herein. In addition to the foregoing, the Owner or its successors or assigns may, on its own initiative, petition the City Council for an amendment to this Agreement or the Plat or to extend any of the time periods required for performance. With respect to the Con- struction Schedule, the Owner has made various assumptions, in- cluding the following: (1) Final approval of the Plat and related documentation prior to May 1, 1983; (2) Negotiation, arrangement and completion of pre -construc- tion activity by Owner, including construction borrowing, bidding, contractor selection and contractor mobilization prior to the pro- jected starting date of no later than August 31, 1985; (3) Ratification of the estimated construction and develop- ment schedule by the selected lender and contractors. (4) Prompt availability of the required labor forces and construction materials at all necessary phases throughout the construction period. (5) No interruption in construction operations through the winter months during the actual construction period by acts of God or other matters beyond the control of the Owner. The City Council shall not unreasonably refuse to extend the time periods for performance indicated in the Construction Sche- 25 0 • L,oi;, 444 PAGk 0775 dule if Owner demonstrates by a preponderance of the evidence that the reasons for said extension are beyond the control of the Owner, despite good faith efforts on his part to accomplish the same. 14. Notice. Notices to be given to the parties to this Agreement shall be deemed given if personally delivered or if deposited in the United States Mail to the parties by registered or certified mail at the addresses indicated below, or at such other addresses as may be substituted upon written notice by the parties or their successors or assigns: City of Aspen: City Manager 130 South Galena Street Aspen, Colorado 81611 Owner: John F. Gilmore Hotel Jerome 330 East Main Street Aspen, Colorado 81611 with a copy to: Holland & Hart 600 East Main Street Aspen, Colorado 81611 15. Binding Clause. The provisions hereof shall run with and constitute a burden upon the title to the subject property, and shall be binding upon and shall inure to the benefit of the Owner and the City and their respective heirs, personal repre- sentatives, successors and assigns. 16. Applicable Law. This Agreement shall be subject to and construed in accordance with the laws of the State of Colorado and the Municipal Code of the City of Aspen. 26 roc► 444 r-vct 0 776 17. Severability. If any of the provisions of this Agree - meet or any paragraph, sentence, clause, phrase, word or section or the application thereof in any circumstances is invalidated, such invalidity shall not affect the validity of the remainder of the Agreement and the validity of any such provision, paragraph, sentence, clause, phrase, word or section under any other circum- stances shall not be affected thereby. 18. Incorporation of Recitals. The City and Owner hereby stipulate and agree that the Recitals preceding this Agreement are part of the Agreement and are to be deemed incorporated herein as though fully set forth. 19. Entire Agreement; Amendment. This Agreement contains the entire understanding and agreement between the parties herein with respect to the transactions contemplated hereunder and may be altered or amended from time to time only by written instrument executed by each of the parties hereto. 20. Acceptance of Plat. Upon execution of this Agreement by all parties hereto, the City agrees to approve and execute the Final Planned Unit Development Plat for the Hotel Jerome -Renova- tion and Addition, and to accept the same for recordation in the Recording Office of Pitkin County, Colorado, upon payment of the recordation fee and costs to the City by Owner. IN WITNESS WHEREOF, the parties here hereunto set their hands and seals the day and year first above written. THE CITY OF ASPEN, COLORADO, 27 L,fj,,,- 444 ►gat;{ 0777 A Municipal Corporation ``1tp►UrNr, .. By H man EdeI, Mayor ATTEST: _ Kathryn S. och, Vity Clerk APPROVED AS TO FORM: Paul J. Tad une, City Attorney OWNER: Jo STATE OF COLORADO ) ss. County of Pitkin ) moxe ..... The foregoing was acknowledged before me this day of , 1983, by Herman Edel, as Mayor, and Kathryn S. Koch, as City Clerk, of the City of Aspen, State of Colorado. Witness my hand and official seal. My commission expires: Notary Public , Address W.* • E STATE OF COLORADO L (As 4 rat,- c 778 ) ss. County of Pitkin ) The foregoing was acknowledged before me this ��,, day of 1983, by John F. Gilmore. Witness my hand and official seal. ss�� My commission expires.. )otary Public Address 29 11 EXHIBIT "A" ry ry b U 444 r�1:c: 0 � a 9 The following is a breakdown of estimated costs for construc- tion of improvements on the City rights -of -way around the Hotel Jerome. The figures are 1983 dollars and are generally based on 1982 bids for City work. 1. Sidewalks, Curb and Gutter New walks Main Street 8' x 180' @ 3.50/s.f. _ $ 5,040 Bleeker Street 6' x 300' @ 3.50/s.f. = 6,300 Monarch Street 6' x 120' @ 3.50/s..f. = 2,520 Damaged sidewalk 20' x 8' @ 3.50/s.f. = 560 New curbs Main Street 200 l.f. @ 10.25/l.f. = 2,050 Bleeker Street 30 l.f. @ 10.25/l.f. = 308 Damaged curb 40 l.f. @ 10.25/l.f. = 410 Total sidewalk, curb and gutter = $17,188 2. Other Phvsical Improvements Water System Compensation to tie in to Monarch St. 12" _ $ 2,750 Furnish and install 8" GV & VB 2 ea. @ 600 = 1,200 Furnish and install 8" cl 52 D.I. pipe 240 l.f. @ 28/l.f. = 6,720 8" x 6" tee 1 ea. 325 6" cl 52 D.I. pipe 20' @ 24/l.f. = 480 6" GV & VB 1 ea. = 425 6" fire hydrant 1 ea. = 1,200 8" plug and kickblock 1 ea. = 125 13,225 Contingency fees @ 20% 2,645 Total water lines $15,870 Reset property pins 2,000 Total other physical improvements $17,870 3. Landscaping The estimated cost of landscaping in the right-of-way is $10,000. CITY OF ASPEN ENGINEERING DEPARTMENT Daniel A. McArthu City Engineer EXHIBIT "B" (Page 1 of 5) PROMISSORY NOTE buu.444 pikU $ 198_ (Principal Amount) (Effective Date) FOR VALUE RECEIVED, JOHN GILMORE (hereinafter "Maker") j 8 0 promises to pay to the order of the CITY OF ASPEN, COLORADO, a municipal corporation and home -rule city (hereinafter "Payee"), at 130 South Galena, Aspen, Colorado 81611, the principal sum deter- mined in accordance with the provisions of Paragraph 1 below, together with simple interest thereon from the effective date hereof until fully paid at the rate(s) determined in accordance with the provisions of Paragraph 2 below, such principal and inter- est to be payable in the manner described in Paragraph 3 below. 1. This Note evidences Maker's obligation to reimburse Payee for Maker's proportionate share of the total construction cost of the vehicular parking structure being built by Payee on the Rio Grande property in the City of Aspen, Pitkin County, Colorado. The principal amount hereof shall be determined by multiplying a fraction, the numerator of which is 60 and the denominator of which is the total. number of parking spaces being constructed, times the portion of the total construction cost (including design, pre - construction and construction costs, and financing costs including capitalized interest on bonds, reserve funds, and bond issuance costs) which is directly related to the parking garage aspect of such structure, and then subtracting the sum of $100,000.00 as bouF,444 PAGE previously deposited by Maker in escrow with Payee plus all interest earned on such escrowed amount from the date of its deposit with Payee to the effective date of this Note. The said principal amount hereof shall be calculated by Payee in accordance with the foregoing definition, and shall be entered by Payee in the blank provided for such purpose at the top of this Note, at the time and on the date this Note is delivered out of escrow to Payee (ie. on the "effective date" of this Note). 2. Payee (or an alternate issuing authority) has issued a tax increment bond(s) or some other type of bond(s) in at least the principal amount of this Note for purposes of funding Maker's pro- portionate share of the total parking structure construction cost as above defined. The principal amount hereof shall bear simple interest (which interest may be variable) from the effective date hereof until fully paid at the same interest rate(s) as Payee's (or other issuing authority's) bond issue rate(s) under the above - mentioned bond(s). 3. . Principal and interest shall be due and payable in con- secutive monthly installments in such amounts as are necessary to cover principal of, redemption premiums, if any, and interest on the Payee's (or other issuing authority's) bond(s) (including refunding bond(s), if any), and other obligations of the issuer pursuant to the bond ordinance, resolution or indenture, and over the same period of time as Payee's.(or other issuing authority's) -2- A • 444 rar_, 0 782 bond(s) (including refunding bond(s)) obligation under the above -mentioned bond(s). Such monthly installments shall commence on the first day of the calendar month following the effective date of this Note, with all remaining principal and unpaid accrued interest being due and payable with the final monthly payment. 4. To the extent permitted by the bond issuing authority and subject to such limitations and requirements as may be imposed by such authority at the time of the issuance of the related bonds(s), Maker shall have the right to make advance, additional or prepay- ments in any amount at any time and from time to time without notice or penalty. Such payments shall be applied first to accrued interest and then to the outstanding. principal balance. 5. At the option of Payee, the entire outstanding principal and interest balance of this Note shall become immediately due and payable, without notice or demand, upon the transfer by Maker to a third person or persons (by sale, foreclosure, operation of law, or otherwise) of a controlling interest in the Hotel Jerome property situated in the City of Aspen, Pitkin County, Colorado. 6. In the event Maker defaults in the performance of any of his obligations hereunder, accrued interest and principal shall, from and after the date of such default, bear interest at the rate of eighteen percent (18%) per annum until such default is cured by Maker. In the event that any unpaid balance due under this Note should be collected by an attorney, whether by court action or otherwise, Maker hereby agrees to pay reasonable attorneys' fees and all other costs of any such collection action. -3- 444 7. This Note shall be governed as to validity, interpreta- tion, construction, effect, and in all other respects by the laws and decisions of the State of Colorado. Maker understands and agrees that the courts of the State of Colorado shall have subject matter jurisdiction to entertain any action brought to enforce or collect upon this Note, and by execution hereof, Maker voluntarily submits to personal jurisdiction of the courts of the State of Colorado, notwithstanding the place of execution hereof, Maker's residence or principal place of business, or the nature or scope of any activities or events which may have occurred in other states. Provided, however, such jurisdiction shall not be exclusive and, at its option, Payee or its assignee may commence such action in any other state exercising concurrent jurisdiction. 8. This Note shall be assignable by Payee to any bond issuing authority. 9. The Maker, endorsers, sureties and guarantors of this note jointly and severally waive presentment for payment, notice of non-payment, protest and notice of protest. 10. This Note is secured by that certain collateral assign- ment and pledge of "transportation charge revenues" being collected by Maker from the operation of the Hotel Jerome as set forth in Paragraph 7(c) of that certain Planned Unit Development Agreement - Hotel Jerome - Renovation and Addition dated M — , 1983 and recorded in Book at page 150 o-f the Pitki.n County, Colorado -4- • 444 p U real property records, all pertinent provisions of which P.U.D. Agreement are hereby incorporated herein and made a part hereof by this reference. Said Book and page refere Oescr illed in by Payee at the time this Note is delive d out.to Payee. Executed this day of 1, 1.9 3. MAKER: -5- Jag/F. Gilmore • HOTEL JP�,ROW:, PROPOS L September 15, 1976 The Hotel Jerome is seeking to remodel and enlarge its facilities in order to remain a viable downtown hotel for the City of Aspen. The existing hotel may only last for a short period of time without a major overhaul of all its facilities. Jt is the desire of the owner. John Gilmore, to preserve the historic character of the existing hotel, provide new amenties for guests and the public and create an atmosphere for a Class 'A' hotel. As a part of the remodeling the existing guest rooms will be redone to include new heating and air conditioning / and new plumbing and electrical service. The high ceilings will refrain, along with the original furniture and light fixtures. In addition, a new multi -use, passive type living room is planned for the current dining room. Such a room can serve for quiet gatherings, receptions, conversation, etc. An additional public -hotel social gathering space will be the new Garden Room created by the connection from the old building into the new. This space which is the transition from the old to the new provides a location f or interaction of hotel guests and the public. It will be a greenhouse -type space with a view to the west garden and a prelude to entering the new restaurant and the existing historic lobby. The new addition will house a minimum of 48 rooms, a speciality restaurant, kitchen, a coffee shop, health facilities, hotel commercial, banquet rooms, mechanical, electrical, laundry, receiving, hotel storage etc. The west garden is to be preserved as open space retaining the large pine and blue spruce trees on the west property line. A new entry will be provided dmu1 to the existing nightclub. .The bulk of the site where the present swimming pool is located will remain open space with new landscape features along with a new pool. Employee housing for approximately eleven persons will be provided above a garage housing limousine storages at the west end of the site at the intersection of Monarch Street and the alley. The current zoning is 'CCon the front part of the property, and the rear portion from the alley to Bleeker Street is zoned 'O'. Due to the lack of uses permitted under the 'O' district and the limitations of the area and bulk requirements of . the 'O' zone, we are seeking a re -zoning from the 'O' district to the 'CL' district. This will zone both parts of the property the same and will allow the hotel as a conditional use under the -'CL'district with the associated permitted uses. We will be asking for a variance to the height limitation under the area and bulk requirements for the 'CL' zone, Section 24-3-4, since the proposed addition, although no higher than the existing hotel, does exceed these limitations on Bleeker Street due to the fall in grade of both Bleeker and Mill Street. It should be noted that the addition is being designed to be as compacted as possible per- mitting the greater amount of open space toward Monarch Street and the adjacent R-6 district while preserving views to the mountains through the west garden from both Main and Bleeker Streets. In addition, the proposal would seek to apply the Historic Preservation Overlay District throughout the entire site, extenuing it from the alley ndrth to Bleeker, between Mill and Monarch St. i -3 - The proposal is outlined as follows: 1. Property size: 47,712 sq. ft. 2. Allowable floor area: 2:1 95,424 sq. f_t. 3. Existing building 44,000 sq. ft. excludes basement storage 4. New building- approximately 60, 547 sq. ft. 5. Open space, 25 percent requires 11,928 sq. ft. 6. The uses and approximate size of guest and public services contained in the existing hotel. LOBBY FLOOR Jerome Dar 1050 sq. ft. Uriah Heeps 704 sq. ft-. Shops 840 sq. f t. Restaurant, service 1900 sq. ft. Kitchen, storage 1434 sq. ft.. Total 5,928 sq. ft. BASE IfiI.NT FLOOR Night Club 2300 sq. ft. KSPN 114i4sq. ft. Art Gallery 2070 sq. ft. Antique Rugs 480 sq. ft. Toal 5, 994 sq. ft. 7. The uses and approximate size of guest and public services contained in the new addition. Refer to Square footage and area computations on Sheet u 9. Proposed Uses: Retail Uses Antique shop, art gallery, bookstore, camera shop, candy and tobacco, florist shop, gif t shop and liquor outlet, jewerly & women Is boutique, newstand & books. Service type Uses .Business offices, Barber and Beauty Shop, Radio Broadcasting, Bar, Cabaret and Nightclub, Massage and facilities, Travel Agency.Public Steno, Ballet West and IDCA Offices. Conclusion: The added expansion of the Jerome Hotel is needed in order to preserve the original historic hotel. This preservation is not for a facade alone but rather facilitates the preservation and extension of an historic use, namely, a first class hotel which presently does not exist but which was originally conceived. It will provide not only enjoyment for guests but will be a host to those of us who appreciate a more sophisticated atmos- phere in which to relax, talk, drink, dine, view gardens, and appreciate historic surroundings. TEROME HOTEL Answers to questions from the Planning Commission Meeting of September 21, 1976. 1. Employee Housing. We are providing rooms for eleven of our employees. 2. Evaluate the pattern of Guest Arrivals and Departures along with Local Patronage patterns. The loading and discharging of hotel guests today is uncomplicated because of the limited number of rooms ie, approximately 34 rooms in use and the maximum number of beds of 73. The staggered time of arrival and departures also tends to dispurse guests thereby avoiding any congestion within the hotel. Any congestion that occurs outside the hotel is usually brought about by the existing parking condi- tions, that is parking is permitted too close to the Jerome entrance which constricts the space allowed for the discharge and pick up of guests as well as limiting the space for vehicular movement. The problem is further magnified due to the fact that our freight elevator in the rear of the building has been inoper- able for some years thereby forcing beer trucks, and service vehicles to load and unload at our front entrance. The new Hotel Jerome we hope will have approximately 82 rooms and a guest capacity of approximately 164. When one analyses the applicable statistics documented by the Aspen Chamber and is cognizant of our program of a Class A Hotel, it would seem to our interpretation to say that arrival and departure will not be unduly complicated. Study information attached. See Memo of 12/1/76. A further consideration is that we believe that a Class A Hotel of our program will exceed the norm in length of stay, and will increase the number of guests arriving in Aspen by plane, no exclusivity given to Saturday -Sunday business and no general group business. TEROME HOTEL, Evaluation of 7#2 continued. Our limousine service with approximately 2 vehicles will meet all incoming air guests and Jeparting guests will be tGken to the airport. These services will be on a call basis. We expect this service to be expanded by guest requests for special limousine service. Physically the loading and unloading may be so constructed, expanded and adapted to facilitate the hotel operation to not interfere with Main Street traffic. In addition no delivery of goods will be permitted at the front entrance. 3. Parking Considerations. According to our figures, the limited number of guests arriving and departing by automobile will not represent a serious problem. Auto guests will be serviced by a Hotel attendant . It is estimated that 15% of our guests will arrive by automobile, i.e. 25 persons using eight cars. In fact the use of the car is not required within the City due to the central location for walking and with the availability of public transportation not to mention expanded limousine service for Hotel guests. Employee parking will be controlled by Hotel Management. 4. Determine Building Shadows. See drawing, HOTEL JEROME PROJECTIONS 1. We expect our guests to arrive in Aspen by this method: 10%n private plane; 15% automobile; 75% commercial air. 2. Will guests use a car while in Aspen: 15% yes; 85% will not. 3. Is a car needed: 32.8 did not answer yes ) Chamber of Comrreme 38.4 no ) statistics 4. If air travel were unavailable on a Saturday to Saturday basis, what other time period would you consider for a vacation: (statistics from Chamber of Commerce). 26.0%u Sunday to Sunday 2. 6% Thursday to Thursday 10. 6% Monday to Monday 11.1% Friday to Friday 1. 7% Tuesday to Tuesday 8. 4% No other period 3. 6% Wednesday to Wednesday 1. 70/0 Would go to another resort 34.3%, Makes no difference. Our conclusion is a staggered booking is desirable. S. How many nights will be spent in Aspen: 35% six to seven days; 65% to to fourteen days. 6. How many are in your group: 45% one to three; 55% four to eight. • 0 October 12, 1976 Memo To The Planning Commission On October. the 5th9 1976 the Hotel Jerome presented a memo to the Planning Commission with reference to ques- tions of September 21, 1976's meeting. Our memo of October the 5th, 1976 was a consolidation of informations obtained from the .Aspen C�,amber of Commerce Study of 1974 and additional information sub- sequently provided by the Chamber. We selected eleven questions that were in the survey which we believe v.'ere apropos to our program of a Clays A hotel. The questions that we selected are attached to this memo. We have ad jus ted the re sul t s of the se f igure s f or our use and guidance, recognizing that we will have a unique business and that our cliental will expect, deserve and receive full service. Our advertising program will incorporate the fact that we are centrally located, have public transportation available and have our special limousine service. It is our plan that our limousine service will meet airline arrivals, will deliver to the airport departures, will deliver our cliental to restaurants beyond walking distance of the Hotel Jerome and will deliver cliental to the slopes during the hour of 10:00 AM, as well as pick-up service after 3:00 PM. There should be no need for our clients to have possession of a car while in Aspen and we will advertise this as a special ammenity. Sincerely, John F. Gilmore 0 MEMORANDUM TO: Aspen City Council FROM: Planning Staff (JS) RE: Conceptual PUD - Jerome Hotel DATE: December 9, 1976 The Planning and Zoning Commission has recommended conceptual approval of the PUD plan for renovation and expansion of the Jerome Hotel. Approval was conditioned upon the following points: a) That further alterations in the architectural design and massing with respect to height of the structure are needed and subject to the approval of the Planning and Zoning Commission, b) That the applicant provide additional data to demonstrate that the proposed limosine service can adequately address all the transportation needs of hotel guests, will not result in the proposal creating additional congestion, and that parking requirements generated by hotel guests with automobiles can be provided on private property, c) That new commercial developments,be uses that are traditionally and reasonably associated with the operation of a first class hotel and that commercial developments have access from public areas within the hotel structure rather than direct access from the street, d) That the approval be subject to City Engineer's approval of the proposal with respect to proposed regrading of Mill Street, e) That the applicant submit a financial analysis of the proposed renovation and expansion to indicate a reasonable rate of return, f) That the detailed building drawings more adequately delineate the accurate floor area ratio, and g) That the applicant agree to restore, if appropriate, the exterior of the Jerome Hotel by'removing the paint to expose the original brick and stonework. The Planning Office agrees with the Planning and Zoning Commission's conditional approval. The next step in the PUD process, preliminary drawings, will afford a more specific and detailed review of the project where each of the conditions of the conceptual approval will have to be resolved before approval can be given. In addition, the preliminary stage requires a public hearing and review by the City Engineer for more technical aspects of the proposal. MEMO CITY COUNCIL JEROME PUD CONCEPTUAL December 9, 1976 The primary issue facing Council is the expansion of the Jerome Hotel for tourist lodging. It is a well know fact that the excess tourist beds in relationship to the capacity of Aspen Mountain is a problem - particularly with respect to transportation and congestion. It has also been informally discussed that Aspen presently cannot offer the tourist a first rate Class "A" hotel. Given the facts that the Jerome Hotel. is an important social and physical landmark in the City, that the structure has always been a hotel, and that the proposal represents expansion of an existing facility versus an entirely new structure, it is the opinion of the Planning and Zoning Commission and the Planning Office that this location should receive first priority if a first class lodging facility is to be encouraged.