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HomeMy WebLinkAboutminutes.council.19870717Special Meeting - -- Aspen City Council ?1~1 v 17 . 1987 Mayor Stirling called the special meeting to order at 5:10 p. m. All five Council members waived and signed notice of special meeting. Councilmembers Isaac, Fallin, Gassman and T uite present. PU RCH A~ E ~ OF Z OL ~i~E PRf3PE RTY Councilwoman Fallin moved to read Ordinance #30, Series of 1987; seconded by Councilman Gassman. All in favor, motion carried. ORDINANCE #30 (Series of 1987) AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, PURSUANT TO SECTION 4.11 OF THE CITY CHARTER APPROVING THE ACQUISITION BY THE CITY OF ASPEN FOR OPEN SPACE PURPOSES OF THAT PROPERTY LOCATED WITHIN SECTION 2 AND SECTION 11 T. 10 S. , R. 85 W. OF THE SIXTH P. M., COUNTY OF PITKIN, COMMONLY KNOWN AS THE "ZOLINE FOUNDATION PARCEL", MORE PARTICULARLY DESCRIBED AS PARCEL A ON THE PLAT ANNEXED AS EXHIBIT "A", IN ACCORDANCE WITH THE PROPOSED FARM AND RANCH CONTRACT TO BUY AND SELL REAL ESTATE ANNEXED AS EXH IB IT "B" , THE TERMS OF WHICH ACQUISITION INCLUDE: 1. CONVEYANCE TO THE CITY OF APPROXIMATELY 45.48 ACRES (PLUS OR MINUS THREE ACRES); 2. COMPENSATION TO THE OWNER OF SAID PROPERTY OF $1,375,000.00 (SUBJECT TO CUSTOMARY PRORATIONS) TO B E PAID AS FOLLOWS a. $50,000.00 UPON THE EXECUTION OF THE PURCHASE AND SALE AGREEMENT; b. AN ADDITIONAL $250,000.00 AT CLOSING; c. EXECUTION AT CLOSING OF A NON- RECOURSE PROMISSORY NOTE IN TH E PRINCIPAL AMOUNT OF $1,075,000.00 SECURED BY A FIRST DEED OF TRUST ON THE PROPERTY WITH INTEREST AT THE RATE OF 10~ PER ANNUM, PAYABLE WITH QUARTERLY INTEREST PAYMENTS ONLY FOR THE FIRST FIVE YEARS, AND EQUAL INSTALLMENTS OF PRINCIPAL OF $107,500.00 AND QUARTERLY INSTALL- MENTS OF INTEREST THEREAFTER FOR 10 1 Special -M~et~nct - - Aspen City Council July 17. 1887 YEARS, AT THE END OF WHICH PERIOD OF T IME THE ENT IRE BALANCE SHALL BE DUE AND PAYABLE; THERE SHALL BE NO PREPAYMENT PENALTY; AND AUTHORIZING BOTH THE MAYOR AND CITY MANAGER TO EXECUTE ON BEHALF OF THE CITY OF ASPEN SUCH DOCUMENTS AS ARE NECESSARY TO CONSUMMATE THE ACQUISITION was read by the city clerk Councilwoman Fallin moved to adopt Ordinance #30, Series of 1987; seconded by Councilman Isaac. Mayor Stirling asked about annexation of this property. Assis- tant City Manager Mitchell answered this will be a separate agreement to be worked out with Joe Zoline on his property. The foundation property is not contiguous to the city; Zoline's property is. Mayor Stirling asked if this should be a condition of the farm and ranch contract. Mitchell said this cannot be a condition of the contract because it is the foundation property that the city is purchasing, and Zoline cannot make an agreement that will be in his own best interest. Mayor Stirling said the current understanding is that the annexation is not contingent upon any development rights on the other Zoline parcel. Mitchell suggested at the second reading of this ordinance, staff will come up with a letter agreement dealing with annexation. Mayor Stirling asked about obligation related to the expenses of the auction. Mitchell said these are the foundation's obliga- tions. Mayor Stirling asked if there is likely to be any real estate commission dispute. Mitchell answered no. Mitchell asked Zoline if he would be agreeable about a letter of understanding prior to second reading regarding annexation. Zoline said he would. Councilman Isaac asked, if the city purchases this land, will it have an open space obligation on it. Mitchell said it will have the same obligation the rest of the city's open space does, and should the city desire to change the use, it will require a voter of the people. Mayor Stirling asked how much right-of-way the highway department would require to four lane highway 82. Charles Fagan said the worst case is 375 feet. Councilman Isaac asked what the annual maintenance costs would be. Mitchell said initially Zoline will continue to irrigate and maintain the property in exchange for being able to remove the hay. Mayor Stirling asked how senior the water rights are on the Herrick and Willow ditches. City Attorney Taddune said the water rights ought to be a concern because of the necessity of these rights to maintain the property. Taddune told Council he has 2 S~?e c a- - e-e t---rr~a ---- -- - - - -- --As~e n City -Co unt i i ~ulv 17 . 19 87 tried to work out an arrangement where the seller would represent there are so many water rights tied to the property. Zoline will represent in the contract that he has good and record title to a certain quantity of water rights, which are 1.28 cfs out of Herrick and 1.5 cfs out of Willow Creek ditches. Taddune told Council he has not been able to consult with the city's water counsel on these rights. Taddune said the understanding is implicit there are water rights available for irrigating and maintaining the property. Zoline told Council he has been irrigating and maintaining the property for 32 years and has never had the water rights ques- tioned by anyone. Zoline said he is reluctant to guarantee the merchantable title because of the general situation of water rights and people attacking these. Zoline said he has good, record title to water rights. Councilman Gassman said it would be derelict to future genera- tions not to do this, and the cost is not important. Councilman Isaac asked how the city is going to pay for this. Mitchell said it will be paid for out of the land fund, and this requires the sale of the Red Roof Inn. Mitchell reminded Council the PCPA indicated they will contribute $100,000. Taddune pointed out there is an encroachment problems on the western boundaries, which is why the ordinance reads "plus or minus three acres". Taddune showed where the boundary dispute is along the fence line. Taddune told Council Zoline was amenable to a non-recourse promissory note on the outstanding balance of $1,075,000. Taddune pointed out Zoline's foundation will be responsible for all taxes up to the date of closing. Taddune said the seller will be fully responsible for the brokerage commissions, except for any incurred by the city. Taddune is requesting some warranties that are standard, such as there are no debts against the property, no violation of law with respect to the property, etc. Taddune pointed out there is a reserv a- tion to Zoline to enter on the property for the purpose of fixing and cleaning and ditches that access his property. Roll call vote; Councilmembers Gassman, yes; Tuite, yes; Isaac, yes; Fallin, yes; Mayor Stirling, yes. Motion carried. Councilwoman Fallin moved to call a special meeting for Monday, July 20, 1987, at 5:00 p.m. ; seconded by Councilman Tuite. All in favor, motion carried. Councilwoman Fallin moved to adjourn at 5:55 p.m.; seconded by Councilman Isaac. All in favor,,y~notion Carrie _ ~_ Kathryn S' Koch, City Clerk 3