HomeMy WebLinkAboutordinance.council.019A-95
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ORDINANCE NO. t c)
Series of 1995
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO,
APPROVING A PURCHASE AGREEMENT AND AGREEMENT FOR COVENANTS AND
OCCUPANCY RESTRICTIONS FOR CERTAIN PROPERTY COMMONLY KNOWN AS
THE SHADOWWOOD APARTMENTS AS MORE FULLY DESCRIBED IN EXHIBITS" A"
AND "B"; AUTHORIZING THE CITY MANAGER TO EXECUTE ON BEHALF OF THE
CITY OF ASPEN SAID AGREEMENTS AND SUCH OTHER DOCUMENTS AS MAY ,BE
NECESSARY TO CONSUMMATE THE AGREEMENTS; APPROPRIATING FUNDS FOR
SAID PURCHASE; AND, DECLARING AN EMERGENCY IN ACCORDANCE WITH
SECTION 4.11 OF THE ASPEN CITY CHARTER.
This ordinance has been adopted as an emergency ordinance in accordance with Section 4.11 of
the City of Aspen Charter. The facts showing such urgency and need are set forth below.
WHEREAS, Shadowwood Corporation is the owner of real property and improvements
located at 100, 200, and 300, Shadowwood Road as more fully described in Exhibits "A" and
"B" appended hereto; and
WHEREAS, the Property is currently improved with 3 apartment buildings,
containing a total of: 7 studio apartments; 8 one bedroom apartments; 4 two bedroom
apartments; and, I three bedroom apartment ("Existing Units"); and,
WHEREAS, the Existing Units are free market rental units, free from any deed restrictions
regarding rental, and are currently being rented by Shadowwood Corporation for long-term
rentals to residents and employees of the Aspen/Pitkin County area; and,
WHEREAS, Shadowwood Corporation desires to construct additional improvements upon
the Property for rental purposes (the "New Units")j and,
WHEREAS, the City and Pitkin County desire to convert the Property and Existing Units
into deed restricted employee housing to come under the auspices of the Aspen/Pitkin County
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Housing Authority ("APCHA") to the extent provided in the appended agreements and, further,
desire the New Units to be deed restricted employee housing under the auspices of the APCHA
to the extent provided herein; and,
WHEREAS, Shadowwood Corporation has agreed to so restrict the Property and the
Existing and any New Units for a fee and subject to the terms, conditions, covenants and mutual
promises contained in the appended agreements; and,
WHEREAS, the City Council has determined that the acquisition of additional deed
restricted rental units for employee housing would further the goals of the Aspen Area
Community Plan, adopted on February 2, 1993, by Resolution No.6, Series of 1993; and
WHEREAS, the private development of the Property as single family luxury homes
would not assure the development of much needed affordable housing; and,
WHEREAS, the City Council has determined that the uncontrolled private development
of the Property imperils the continued vitality and growth of the Aspen area and the unique
community values which now exist; and
WHEREAS, immediate acquisition of the covenants and restrictions as set forth in the
appended agreements by the City of Aspen in partnership with Pitkin County, followed by the
opportunity to gain additional deed restricted employee housing on the Property, is hereby
determined by the City Council to be necessary for the preservation of the public health, peace,
safety and welfare of the City of Aspen, its citizens and visitors, and the City Council desires
to approve and authorize the Purchase Agreement and Agreement for Covenants and Occupancy
Restrictions in accordance wit\! the terms and conditions of said Agreements; and
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WHEREAS, Pitkin County has committed $450,000.00 and a private individual has
committed $300,000.00 towards the total purchase price; and
WHEREAS, under the terms of the Purchase Agreement the closing date for the
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consummation of the transaction is established no later than March 31, 1995; and,
WHEREAS, Shadowwood Corporation has offered to execute the Purchase Agreement
for a total price of $1,250,000.00 only if closing occurs prior to March 31, 1995, in order to
take advantage of an IRS Section 1031 Tax Free Exchange of property; and
WHEREAS, the City Council deems it necessary to approve, as an emergency ordinance
for the reasons hereinabove stated, the Agreements appended hereto, and the authorization for
the City Manager to execute on behalf of the City of Aspen said Agreements, as well as such
other documents as may be necessary to consummate the contemplated transactions; and,
WHEREAS, the City Manager has certified to the City Council that there are available
for appropriation revenues identified in the 1995 budget to meet the expenses referenced herein;
and,
WHEREAS, the City Council has determined that it is financially prudent to make an
emergency appropriation from the City's Housing and Day Care Fund to meet a public
emergency affecting property and the wellbeing of the citizens of Aspen.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ASPEN, COLORADO:
Section 1 .
That the City Council does hereby declare an emergency pursuant to Section 4.11 of the
Aspen City Charter for the preservation of public property, health, peace, and safety of the City
of Aspen, its citizens and visitors, inasmuch as an opportunity for the City of Aspen to deed
restrict, 20 rental units for employee housing at a reduced cost will be lost if the City Council
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does not act with urgency.
Section 2.
That the City Council does hereby approve the Purchase Agreement and Agreement for
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Covenants and Occupancy Restrictions for Shadowwood Apartments, or substantially similar
agreements, appended hereto as Exhibit "A" and "B" respectively, and authorizes the City
Manager to execute said Agreements on behalf of the City of Aspen and such other documents
as may be necessary.
Section 3.
That the City Council does hereby authorize as an emergency appropriation from the
City's Housing and Day Care Fund the amount of $950,000.00 to be used as follows: (1)
$500,000.00 for the cash payment referenced in the appended Purchase Agreement, and (2)
$450,000.00 as a short term loan not to exceed one month to Pitkin County if necessary for
Pitkin County to meet its financial obligation in accordance with the Purchase Agreement.
Section 4.
This ordinance shall not have any effect on existing litigation and shall not operate as an
abatement of any action or proceeding now pending under or by virtue of the ordinances
amended as herein provided, and the same shall be construed and concluded under such prior
ordinances.
Section 5.
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 hereof.
Second reading of this emergency ordinance shall be held on the _th day of March,
1995, at .m., in the City Council Chambers, Aspen City Hall, Aspen, Colorado.
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INTRODUCED AND READ as provided by law by the City Council of the City of
Aspen on the 27th day of March, 1995.
John S. Bennett, Mayor
ATTEST:
Kathryn S. Koch, City Clerk
FINALLY adopted, passed and approved this
day of
,1995.
John S. Bennett, Mayor
ATTEST:
Kathryn S. Koch, City Clerk
shadowwd.ord
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