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Home My WebLink Aboutresolution.council.130-25RESOLUTION #130 (Series of 2025) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A CITY OF ASPEN/APCHA V. CENTENNIAL SETTLEMENT TERM SHEET AGREEMENT AND AUTHORIZING THE MAYOR TO EXECUTE SAID SETTLEMENT TERM SHEET AGREEMENT ON BEHALF OF THE CITY OF ASPEN, COLORADO, WHEREAS, there has been submitted to the City Council a Settlement Term Sheet Agreement by and between the City of Aspen and Aspen Pitkin County Housing Authority (APCHA), and the Centennial Owners Association, a true and accurate copy of which is attached hereto as Exhibit "A". NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, That the City Council of the City of Aspen hereby approves the Settlement Term Sheet Agreement by and between the City of Aspen and Aspen Pitkin County Housing Authority, and the Centennial Owners Association, a copy of which is annexed hereto and incorporated herein, and authorizes the Mayor of the City Aspen to execute such agreement on behalf of the City of Aspen. INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the 9th day of September 2025. I, Nicole Henning, duly appointed and acting City Clerk do certify that the foregoing is a true alld accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held on the 9th day o Septem 2025. Nicol Henning, City Clerk City of Aspen/APCHA v. Centennial S 1. The City and/or APCHA shall purchase two pa depicted on attached Parcel Map, Exhibit A) fi ement Term Sheet Agreement is totaling approximately 2.25 acres of land (as Centennial for $7,529,530. The City will conduct a formal survey to definitively measure the acreage of the parcels and to establish legal descriptions for the parcels. The purchase price will not change in the event that the survey changes the total acreage to be purchased. 2. Centennial agrees to devote the purchase proceeds to complete repairs outlined in the Building Science Corporation report titled Building Enclosure Investigation and Analysis, dated July 22, 2010 and the Charles Taylor Engineers' Opinion' of Cost to Repair dated October 14, 2024 and revised January 29, 2025. The parties settlement agreement and release will set forth, at a 3. 5. 6. minimum, the scope of work, the time frame f owner's representative to review and approve premises, payments to such contractor and sta In the event that funds paid by the City of Aspe paragraph one, above, shall exceed the cost of construction and repairsthe hiring of an , e contract for construction or repair of the I procedures for construction. and/or APCHA ($7,529,530), as set forth in pairs completed pursuant to paragraph two, above, the balance of funds shall be placed in a�capitol reserve account and shall be restricted to future repairs to the portions of buildings that are common elements, for repairs to the structures and building envelopes for life safety; and livability. None of these funds shall be distributed directly or indirectly to any individual or individuals and such funds shall not be used to enrich the owners or make finish upgrades in the private dwelling units. These funds shall be held in escrow and drawn onlyto pay for costs described above. All accounting of these expenditures shall be transparent and available' CA ounty Housing uthority (APCHA). for review by representatives of Aspen Pitkin The land purchased pursuant to purchase and sale agreement will not be developed while any of the current owners own and occupy their units or forty years from the date of the acquisition of the property by the City, whichever is earlier. Development shall not occur until the last current owner has ceased to occupy their home or such owner or owners have waived the right to this limitation. Centennial and the City will enter into a lease -back arrangement that allows Centennial continued use of the conveyed parcels and requires that Centennial adequately maintain those parcels for their current uses. The City agrees to not utilize the conveyed parcels for purposes other than planning its contemplated development for the parcels. The City and its representatives may initiate subdivision and land use applications for development of this property in the interim. C not, formally or informally, object to such futu requested by the City and the HOA will encoui applications. In the event that the sums paid pursuant to pa the repairs outlined in Paragraph 2 above, the tennial agrees that as an organization, it will development proposals on the Property e its individual owners not to oppose these ph one, above, are not sufficient to complete �nnial HOA shall contribute the remaining amount necessary to complete repairs. Centennial has full discretion on how it shall fund any 1 shortfall to complete repairs so long as the funding mechanism is not intentionally structured to disproportionately defer repayments to future unit owners, By way of example, Centennial agrees that it would not create an assessment that would start or increase five years in the future or obtain an interest only repayment obligation with a future balloon payment. 7. The value of the property to be conveyed will be confirmed by a professional appraisal or opinion of value, recognizing the difficulty of valuing land for affordable housing development. The selection and costs of the survey and appraisal work will be the responsibility of the City. 8. The obligations of the City and Centennial set forth herein are contingent on the approval of a final Settlement Agreement and Purchase and Sale Agreement in a public meeting by the Aspen City Council after review of the appraisal 9. Centennial unit owners that are subject to APCHA deed restrictions with fihe same of similar expiration terms set forth in Exhibit B agree to restrictions for their unit set forth in Exhibit C. term is set forth in Exhibit D. The updated deE of the parcel conveyance in paragraph 1. the most current form of APCHA deed non-exclusive list of unit owners covered by this restrictions will be executed by the closing date 10. The current City Council for the City represents that it has no interest in exercising its power of condemnation on the Centennial property. 11. The final Settlement Agreement will include provisions that require that the Centennial H matters and claims set forth in the various fil any claims that could have been asserted aris HOA units and common areas. 12. This Term Sheet Agreement must be approved HOA. 13. After approval, these terms will be incorp and a subsequent settlement agreement. ndard waiver of claim and covenant to not sue waive claims on behalf of its unit owners for the complaints in Case No. 2016CV30158 as well as out of the physical defects of the Centennial the Aspen City Council and by the Centennial into subsequent real estate contracts, deeds CENTENNIAL O WNERS ASSOCIATION By: Its Chairman of the Board of Managers APPROVED AS TO FORM: FOSTER GRAHAM MILSTEIN & CALISHER LLP s/John A. Chapin John A. Chapin 360 S. Garfield Street, Suite 600 Denver, CO 80209 Phone: (303) 333-9810 Fax: (303) 333-9786 jchanin a,fostergraham.com Attorney for Plaintiff �'he Centennial Owners'Association CITY OF ASPEN ASPEN PITKIN COUNTY HOUSING AUTHORITY By: Its Chairperson of the Board of Directors APPROVED AS TO FORM: BERG HILL GREENLEAF RUS CITTI LLP s/Josh A. Ma�•ks Josh A. Marks 1712 Pearl Street Boulder, CO 80302 Phone: (303) 402-1600 Fax: (303) 402-1601 ial�� a,bh�rlaw.com Attorney for Defendants Aspen Pitkin County HozcsingAuthority and the City of Aspen 3 CENTENNIAL OWNERS ASSOCIATION Its Chairman of the Board of IVlanagers APPROVED AS TO FORM: FOSTER GRAHAM MILSTEIN 8c CALISHER LLP s/John A. Chapin John A. Chapin 360 S. Garfield Street, Suite 600 Denver, CO 80209 Phone: (303) 333-9810 Fax: (303) 333-9786 �champLa fostergraham com Attorney for Plaint The Centennial Owners' Association CITY OF ASPEN Mayor ASPEN PITI�iN COUNTY HOUSING ITKORMP�7 By: Cdrsv� �Sclnr•+�-rz Its Chairperson of the Board of Directors APPROVED AS TO FORM: BERG HILL GREENLEAF RUSCITTI LLP s/Josh A. Marks Josh A. Marks I71:?. Pearl Street Boulder, CO 80302 Phone: (303) 402-1600 Fax: (303) 4024 601 am i ,bhgrlaw.com Attoa•ney for Defendants Aspen Pitkin County Hou,-ing.4uthoriryapd the Ciry ofAspen 3