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HomeMy WebLinkAboutordinance.council.058-87 ORDINANCE NO. '58 (Series of 1987) AN ORDINANCE APPROVING A MODIFICATION TO PARAGRAPH 8.1(ii) (3) TO THAT "AGREEMENT OF PURCHASE AND SALE OF THE CASTLERIDGE APART- MENTS ENTERED INTO BETWEEN THE CITY OF ASPEN AND CASTLERIDGE ASSOCIATES, LTD., ON OR ABOUT AUGUST 20, 1982, INCLUDING AN AMENDMENT TO THE "DECLARATION OF COVENANTS, RESTRICTIONS AND CONDITIONS FOR THE CASTLERIDGE APARTMENTS" REFERRED TO IN SAID AGREEMENT AND FILED OF RECORD, SO AS TO REFLECT THE ACTUAL COSTS OF THE PROJECT IN 1983 AS A BASE FOR PROJECTING OPERATING EXPENSES WHEREAS, on or about August 20, 1982, the City of Aspen, as Seller, and Castleridge Associates, Ltd., as Buyer, entered into that "Agreement of Purchase and Sale of the Castleridge Apartments" (hereinafter "Castleridge Agreement"), which agree- ment is incorporated herein by this reference. WHEREAS, Paragraph "8.1(ii) (3)" of the Castleridge Agreement estimated the total operating expenditures (including real estate taxes, repairs and replacements) for the project to be $144,400.00 for the calendar year 1982 on an annualized basis. Said expenditures were projected to increase at an annual rate of ten percent (10%) thereafter, in accordance with the projected expenditures for the years 1982 through 2000 attached as Exhibit "H" . WHEREAS, based on the actual experience of the parties as reflected by actual costs for 1983 in the amount of $118,760.00 and the City Council desires to enter into that Modification Agreement appended hereto for the purpose of amending Paragraph "8.1(ii) (3)" of the castleridge Agreement to reflect said actual operating expenses for the year 1983 on an annualized basis, and to replace Exhibit "H" appended to the Castleridge Agreement with "substitute Exhibit 'H'" and similarly amend the Declaration of Covenants, Restrictions and Conditions for the Castleridge Apartments. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section 1 City Council does hereby approve that Modification Agreement attached hereto and does hereby authorize the Mayor to execute said agreement and any other document referred to therein, upon approval as to form by the City Attorney. Section 2 If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 3 Nothing in this ordinance shall be construed to affect any right, duty or liability under any ordinances in effect prior to the effective date of this ordinance, and the same shall be continued and concluded under such prior ordinances. 2 section 4 A public hearing on the ordinance shall be held on the'~~~ day of "'/' / --/(;- ..;:. e ,. r;;c !l.i:.-j j , 1987, in the City Council Chambers, Aspen City Hall, Aspen, Colorado. INTRODUCED, READ AND ORDERED PUBLISHED as provided by law by the City Council of the City of Aspen on the ~'~k-/ day of '-. j~;- ...", /l- 'L ' 1987 /-1 '-' v'.t: //,-.!. {. .~ ,. ~ ~ ATTEST: <~))d' d~ Kathryn S~ och, City Clerk FINALLY adopted, passed and approved this ~~ day of ~A.._) A'rTEST: 3 MODIFICATION AGREEMENT THIS MODIFICATION AGREEMENT made effective and as of , 1987, between the City of Aspen, Colorado, a municipal corporation and home rule city organized under the laws of the State of Colorado (hereinafter "Seller") and Castleridge Associates, Ltd., a Colorado limited partnership with WILLIAM M. LONDOFF of st. Louis, Missouri, as its general partner (hereinafter "Buyer"). R E C I TAL S 1. On or about August 20, 1982, Seller and Buyer entered into that "Agreement of Purchase and Sale of the Castleridge Apartments" (hereinafter "Castleridge Agreement"), which agree- ment is hereby made a part hereof and incorporated herein by this reference. 2. Paragraph "8.1(ii) (3)" of the Castleridge Agreement estimated the total operating expenditures (including real estate taxes, repairs and replacements) for the project to be $144,400.00 for the calendar year 1982 on an annualized basis. Said expenditures were projected to increase at an annual rate of ten percent (10%) thereafter, in accordance with the projected expenditures for the years 1982 through 2000 attached to the Castleridge Agreement as Exhibit "H". 3. Based on the actual experience of the parties, as reflected by actual costs for 1983 in the amount of $118,760.00, the parties desire to amend Paragraph "8.1(ii) (3)" of the agree- ment to reflect said actual operating expenses for the year 1983 on an annualized basis, and to replace Exhibit "H" appended to the agreement with "substitute Exhibit 'H'" appended hereto. 4. In view of the amendment to Paragraph 8.1(ii) of the Castleridge Agreement, the parties similarly desire to amend the Declaration of Covenants, Restrictions and Conditions for Castleridge Apartments appended as Exhibit "G". NOW, THEREFORE, in consideration of the mutual covenants, consent and agreement of the parties hereto, the Castleridge Agreement is hereby modified, altered and changed in the follow- ing respects only: 1. Paragraph "8.1(ii) (3)", including subparagraphs "(a)" and "(b)", commencing on line 16, page 9 thereof and ending with line 10, page 10 thereof shall be deleted, and the following shall be inserted in its place: "(3) The buyer has estimated the total operating expenditures (including real estate taxes, repairs and replacements) for the project to be $118,760.00 for the calendar year 1983 on an annualized basis. Said expenditures have been projected to increase at an annual rate of ten percent (10%) thereafter; a copy of such projected expenditures for the years 1983 through 2000 is attached hereto as 'substitute Exhibit "H"'. (a) If, at the end of any calendar year the cumulative expenditures (including real estate taxes, repairs and replacements) actually incurred for such year and all prior years, commencing with 1982, shall exceed the cumulative projected expenditures for the 2 same. As per 'substitute Exhibit "H" ("Increased Differential")' the owner shall, in addition to the rental increases provided for in subparagraph (2) above, be entitled to increase the rental for the next succeeding year in an amount equal to such Increased Differential, after seller's verification of such Increased Differential, as provided in subparagraph 8.1(ii) (4) below. (b) If, at the end of any calendar year, the cumulative expenditures (including real estate taxes, repairs and replacements) actually incurred for such year and all prior years commencing with 1982 shall be less than the cumulative projected expenditures for the same period as per 'substitute Exhibit "H" ("Decreased Differential") " the owner shall reduce the rentals provided in subparagraph (2) above for the next succeed- ing year in an amount equal to such Decreased Differential after seller's verification of such Decreased Differential, as provided in subparagraph 8.1(ii) (4) below." 2. That "Declaration of Covenants, Restrictions and Conditions for the Castleridge Apartments", attached to the Castleridge Agreement as Exhibit "G", the original of which was executed on the 20th day of August, 1982, by Castleridge Associates, Ltd. and filed of record on in Book at Page , office of the Pitkin County Clerk and Recorder, shall be, and is hereby modified, altered, and changed in the following respects only to read: Subparagraph "(c)" beginning on line 10, page 3, and ending with line 8 on page 4, and insert in its place the following: 3 "(c) The buyer has estimated the total operating expenditures (including real estate, repairs and replacements) for the project to be $118,760.00 for calendar year 1983 on an annualized basis. Said expenditures have been projected to increase at an annual rate of ten percent (10%) thereafter. (1) If, at the end of any calendar year, the cumulative expenditures (including real estate taxes, repairs and replacements) actually incurred for such year and all prior years commencing with 1983 shall exceed the cumulative projected expenditures for the same period ("Increased Differential"), the covenantor shall, in addition to the rental increases provided for in subparagraph (b) above, be entitled to increase the rental for the next succeeding year in an amount equal to such Increased Differential, after seller's verification of such Increased Differential, as provided in subparagraph (4) (d) below. (2) If, at the end of any calendar year, the cumulative expenditures (including real estate taxes, repairs and replacements) actually incurred for such year and all prior years commencing with 1983 shall be less than the cumulative projected expenditures for the same period ("Decreased Differential"), the owner shall reduce the rentals provided for in subparagraph (b) above for the next succeeding year in an amount equal to such Decreased Differential, after seller's verification of such Decreased Differential, as provided in subparagraph (4) (d) below." 4 IN WITNESS WHEREOF, the parties hereto have set their hands and seals this /~ day of A~L) , 1987. CITY OF ASPEN, COLORADO By william L. ATTEST: ~d4~ Kathryn Koch, City Clerk CASTLERIDGE ASSOCIATES, LTD. By william M. Londoff ATTEST: 5