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RESOLUTION NO.
(Series of 1988)
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A RESOLUTION OF THE CITY OF ASPEN ADOPTING AN AMENDMENT TO THE DEED
RESTRICTION PLACED UPON THE LANDS UPON WHICH THE HUNTER LONGHOUSE
PROJECT IS BUILT, AND AUTHORIZING THE MAYOR TO EXECUTE ALL
DOCUMENTATION APPROPRIATE TO EFFECTUATE THIS AMENDMENT
WHEREAS, Pitkin County is the owner of a parcel of land near
the Town of Aspen upon which the low and moderate income housing
project known as the Hunter Longhouse Project is located; and
WHEREAS, the City of Aspen has previously authorized, pursuant
to Resolution No. 42, series 1988, the release of a deed
restriction upon the referenced lands, which Release was also made
contingent upon the issuance of the Housing Authority's Bonds on
December 1, 1988; and
WHEREAS, it appears that due to market conditions, the Housing
Authority will not issue the referenced bond until February 15,
1989, and the City is agreeable to the amendment of Release to be
effective upon the issuance of Series 1989 Housing Authority
Revenue Bonds on or before March 15, 1989,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ASPEN, COLORADO as follows:
section 1. The Release of Dedication of Real Property
(Hunter Longhouse) dated as of the 15th of November, 1988, is
hereby amended by the deletion of the date "December 1, 1988" in
the second to last line thereof, and the insertion of "March 15,
1989".
section 2. The Mayor of the City of Aspen is hereby
authorized and directed to execute on behalf of this City council,
any and all documents or conveyances necessary or appropriate in
order to remove the Deed Restriction which is currently placed upon
the Property, which restriction is in Book 500, page 646 et. ~
of the Real Property Records of Pitkin County.
Dated: ~;/}ldA_-U<.-> ~
I, Kathryn S. Loch, duly appointed and acting City Clerk do
certify that the foregoing is a true and accurate copy of that
resolution adopted by the City Council of the City of Aspen,
Colorado, at a meeting held on ,--~~"I! 13, 198~
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Kathryn~ K6ch, City Clerk
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MEMORANDUM
TO:
Mayor and Council
FROM:
Robert S. Anderson, Jr., City Manage~___
Jim Adamski, Tim Whitsitt, Fred Gannett
THRU:
DATE:
February 13, 1989
RE:
Resolution Approving Removal of Dedication of Hunter
Longhouse to Employee Housing Guidelines
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SUMMARY: The Aspen City Council pass Resolution 42, Series 1988
removing the deed restriction on the Hunter Longhouse project. The
resolution stated that bond closing had to take place on December
1, 1989. Due to market conditions the closing did not take place.
We are scheduled to close in February and are requesting that you
amend Resolution 42, series 1988.
PREVIOUS COUNCIL ACTION: The Aspen City Council directed the
Housing Authority to assist the owners of Hunter Longhouse to
research the development of additional housing units. The City
Council provided the funds (payment-in-lieu) for research and
development. An application to rezone .275 acres of the Community
Center site from RS-30 PUD to PMH to accommodate a five unit
addition has been approved by the County P&Z and the BOCC. Final
review is scheduled for March 1989. On November 14, 1988 the City
Council approved a resolution removing the dedication of the Hunter
Longhouse project to employee guidelines.
BACKGROUND: At the time of the bond refinancing by the County of
the Hunter Longhouse proj ect in 1985, one of the concessions
demanded for the protection of the property was a deeded dedication
of the property to use solely as housing in accordance with the low
or moderate category of the Employee Housing Guidelines. This was
deemed necessary in part due to the fact that in the event of
default on the bonds, one of the options was for the bondholders
to take title to or to sell the property as a whole, which would
have not only taken it out of County ownership, but permitted the
units to become free market units.
The Housing Authority has developed a plan to payoff the
outstanding Pitkin County indebtedness on the project by the
issuance of Housing Authority Revenue Bonds. This plan has two
separate goals (1) to refinance the existing debt at a more
favorable interest rate and thus to insure that major rent
increases will not be required at the project over the life of the
bonds and, (2) to provide additional capital for the construction
of five unit addition to the project.
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In preparing for the issuance and marketing of the revenue bonds,
the Housing Authority retained Connie Jungbluth of George K. Baum,
Inc., as bond consultant. It is Connie's opinion that the current
employee housing restrictions on the property will render the bonds
unmarketable. While investors would be willing to purchase the
bonds, they would need the assurance that they might be able to
take the units to free market in order to cover the bond principal
in the event of a default. For this reason the city Council and
the BOCC agreed last year to approve a release of that deed
restriction. That release was made subject to a December issuance
of bonds.
The bonds were not issued in December but have recently been placed
with a single private investor. The placement was made on the
basis of that investor's ability to take the project to market
prices in the event of an uncured default in order to more fully
secure the investment. For this reason the Release of Deed
Restriction authorized by the Aspen City Council last fall by
Resolution 42, Series 1988 and must be amended to become effective
upon the issuance of the Series 1989 bonds. This amendment was
approved by the BOCC at first reading on February 6, 1989 and will
be confirmed on February 13, 1989.
ALTERNATIVES/OPTIONS:
1. Approve the resolution.
2. Disapprove the resolution.
RECOMMENDATION: In order to obtain the funding required for the
Hunter Longhouse addition and to retire the current Series 1985
bonds on this project approve the amended resolution.
PROPOSED MOTION: I move for adoption of Resolution
(Series of 1989) approving the releasing of deed restrictions
the Hunter Longhouse Complex.
CITY MANAGER RECOMMENDATION: J ~~ ~ 7~
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AMENDED
RELEASE OF DEDICATION
OF REAL PROPERTY
(HUNTER LONGHOUSE)
THIS AMENDED RELEASE OF DEDICATION, is made and entered into
as of this 15th day of February, 1989, by and between Pitkin
County, Colorado, a Home Rule Charter County, and the City of
Aspen, Colorado, a home Rule Municipal Corporation, sometimes
hereinafter referred to jointly as "the Grantors", and the
Aspen/Pitkin County Housing Authority, a multi-jurisdictional
Housing Authority established pursuant to Intergovernmental
Agreement and C.R.S. 1973, section 24-1-203, sometimes referred to
hereinafter as "the Grantee," for the purposed of amending a
restriction which appears in the original Release of Deed
Restriction between these parties and recorded in Book 578 at Page
873, Pitkin County Public Records.
WHEREAS, the Grantors and Grantee, by a Dedication dated
December 2, 1985, and recorded in Book 500 at Page 646, Pitkin
County Public Records, did restrict and dedicate that certain
parcel of land referenced therein, and known generally as the
"Hunter Longhouse Site" as permanent low and moderate income
housing; and
WHEREAS, Grantors have determined that said dedication has
adversely affected the Grantee from marketing its Revenue Bonds
which would be used to refinance and to expand the employee housing
on the reference site.
NOW, THEREFORE, Grantors do hereby, in consideration of the
sum of Ten Dollars ($10.00) in hand paid by Grantee and other good
and valuable consideration, the receipt and sufficiency of which
is acknowledged by Grantors, bargain, sell, and grant to Grantee
a release of all interests or rights which they may now have
arising out of that certain "Dedication of Real Property To
Employee Housing Restrictions and Guidelines (Hunter Longhouse),"
da ted December 2, 1985 , and recorded in Book 500 a t Page 646,
Pitkin County Public Records, provided, however, that said grant
is specifically conditioned upon the issuance by Grantee of its
Housing Authority Revenue Bonds, Series of 1989, on or before
February 15, 1989. This release is granted by Grantors with
respect to all of the property or lands described in the referenced
Dedication.
ATTEST:
BOARD OF COUNTY COMMISSIONERS
OF PITKIN COUNTY, COLORADO
By:
Jeanette Jones
Deputy Clerk & Recorder
Colette Penne, Chairperson
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ATTEST:
THE CITY OF ASPEN, COLORADO
By:
william L. Stirling, Mayor
Kathryn Koch, City Clerk
STATE OF COLORADO
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SSe
COUNTY OF PITKIN
The foregoing Correction Release of Deed of Restriction was
acknowledged before me this ____ day of , 1989, by
Colette Penne, Chairperson and Jeanette Jones, Deputy Clerk and
Recorder of the Board of County Commissioners of Pitkin County,
Colorado.
witness my hand and official seal.
My commission expires:
Notary Public
Address:
STATE OF COLORADO
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SSe
COUNTY OF PITKIN
The foregoing Correction Release of Deed of Restriction was
acknowledged before me this ____ day of , 1989, by
William L. Stirling, Mayor, and Kathryn Koch, City Clerk.
Witness my hand and official seal.
My commission expires:
Notary Public
Address:
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