HomeMy WebLinkAboutresolution.council.032-90
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RESOLUTION NO. 3~
(Series of 1990)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO,
APPROVING AND AUTHORIZING AN ASSIGNMENT OF A CONTRACT FOR THE
ACQUISITION OF REAL PROPERTY TO THE ASPEN/PITKIN COUNTY HOUSING
AUTHORITY
WHEREAS, the Clty has entered lnto a Contract for the
purchase of certain real property located wi thin the Cl ty of
Aspen and known as the "Austin Property"; and
WHEREAS, the Aspen City Council desires to assign ltS rlghts
under the Contract to the Aspen/Pl tkin County Housing Authority
and the Housing Authorlty has agreed to accept such asslgnment In
order to facilltate the acqulsltlon, development and resale of
the property descrlbed in the Contract for affordable housing
purposes.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF ASPEN, COLORADO:
Section 1
That the Agreement for the Asslgnment of Contract Rights,
lncludlng all exhlbi ts thereto, which are attached hereto and
lncorporated herein by this reference, lS hereby approved by the
Aspen City Council and the Mayor lS authorlzed to execute same on
behalf of the Aspen Clty Councll.
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INTRODUCED, READ AND ADOPTED as provlded by law by the Clty
Council of the City of Aspen on the A'7 day of a~
1990.
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~~ti~~:)
I, Kathryn S. Koch, duly appointed and actlng City Clerk, do
certify that the foregoing is a true and accurate copy of that
resolutlon adopted by the Clty coun.lA Of. ,.the Clty of Aspen,
Colorado, at a speclal meetlng held ~ ~~ ,1990.
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AGREEMENT FOR THE
ASSIGNMENT OF CONTRACT RIGHTS
/7 This Agreement lS made and entered lnto thls .;::?.;z'-h:.---day of
~~ ' 1990 by and between the City of Aspen, a Colorado
munlc~al corporatlon (hereinafter "City"), and the Aspen/Pltkln
County Houslng Authorlty, a multl-Jurlsdictlonal houslng authorl-
ty pursuant to Colorado law (hereinafter "Authorlty") .
RECITALS
1. The City has entered into a Contract with FranClS
Austin as Seller, for the purchase of certain real property
located wi thin the City of Aspen, a copy of WhlCh lS attached
hereto as Exhibit A, lncorporated hereln by thls reference, and
referred to hereln as the "Contract".
2. The Cl ty desires to assign l ts rights under the Con-
tract to the Authorlty and the Authorlty deslres to accept
asslgnment of such Contract In order to facllitate the acqulsl-
tlon, development and resale of the real property descrlbed
thereln, referred to as the "Property", subJect to the terms and
condltlons hereof.
NOW, THEREFORE, the partles agree as follows:
1. Asslgnment. The C:Lty hereby asslgns to the Author:Lty
all of its right, tltle and lnterest in and to the Contract. The
Authorl ty agrees to accept asslgnment of the Contract and to
proceed dlllgently to acqulre the Property in accordance wlth the
terms of the Contract.
2. Fundlng. The C:Lty agrees to loan to the Authorlty such
funds as Illll be requlred In order to complete the acqulsi tlon of
the Property pursuant to the Contract. The loan w:Lll be eVl-
denced by a loan agreement and option, In the form attached
hereto as Exhlblt Band lncorporated hereln by this reference, to
be executed by the partles prlor to Closlng under the Contract.
3. Development program. The Authority agrees to commence
and dlligently pursue the development of the Property generally
In accordance wlth the followlng outllne:
a. Flle and process an application to rezone the
Property frOM ltS present classlflcation to Affordable Houslng.
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b. Arrange for and secure such debt financlng as may
be required In order to complete acqulsltlon and constructlon of
affordable houslng unlts and arrange for and secure permanent
flnanclllg In the event that tltle to the Property lS to be
retalned by the Authorl ty subJ ect to land leases. The terms,
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conditions and requlrements of any such financlng shall be
determlned In cooperatlon wlth and subJect to the approval of the
Clty Councll.
C. Followlng rezon:Lng, determlne the actual develop-
ment program to be undertaken and prepare requests for de-
sign/build proposals. The terms, conditlons and speclflcatlons
of the proposal shall be determlned :Ln cooperatlon w:Lth and
subJect to the approval of the Clty Councll.
d. Establlsh the Cr:Lterla for and method of sale or
lease of the Property and the dwelling units to be constructed
thereon, includlng priclng and buyer qualifications. Such
crlterla and methodology shall be determlned In cooperatlon wlth
and subject to the approval of the Clty Councll.
4. Disclaimer. By virtue of ltS assignment of the Con-
tracts hereunder, the City shall not be estopped to deny the
antlclpated rezonlng appllcatlon or to lmpose cond:Ltlons thereon
as the public interest and the standards of the Aspen Land Use
regulatlons may requlre.
Executed In duplicate origlnals the day and year above flrst
wrltten.
CITY OF ASPEN
ASPEN/PITKIN COUNTY
HOUSING AUTHORITY
BY:~~~
By:
ATTEST:
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C~ ty Cler'
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conditions and requirements of any such financlng shall be
netermined In cooperatlon with and subJect to the approval of the
Clty Councll.
c. Following rezonlng, determine the actual develop-
ment program to be undertaken and prepare requests for de-
slgn/build proposals. The terms, condi tlons and specifications
of the proposal shall be determined In cooperatlon with and
subJect to the approval of the Clty Councll.
d. Establlsh the criterla for and method of sale or
lease of the Property and the dwelllng unlts to be constructed
thereon, lncludlng prlclng and buyer quallfications. Such
crlterla and methodology shall be determlned In cooperatlon wlth
and subJect to the approval of the Clty Councll.
4. Dlsclalmer. By virtue of l ts asslgnment of the Con-
tracts hereunder, the City shall not be estopped to deny the
antlclpated rezoning application or to impose condltions thereon
as the publlc lnterest and the standards of the Aspen Land Use
regulations may require.
Executed In dupllcate orlglnals the day and year above flrst
written.
CITY OF ASPEN
ASPEN/PITKIN COUNTY
HOUSJG AUTHORITY
By: ~e-:J G, ~+';7
(.t"",r FI')'7V>
By:
ATTEST:
Clty Clerk
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ADDeNDUM
TillS Addendum is attached to and forms a part of the
Resldentlal Contract to Buy and Sell Real Estate, clated June 8,
]990, between Lhe City of Aspen, a Colorado munlclpal corpora-
tlon, or asslgns, as Purchaser, and Frances Austin, as Seller.
The provisions of tins Addcndum are hereby made a part of
the above-referenced contract. To the extent that the provlslons
contained ln tins Addendum are inconslstent wlth those of the
above-referenced contract, the provlsions of this Addendum shall
control. The single lnstrument collectlvely comprised of the
above-referenced contract and thlS Addendum shall be referred to
herein as the "Contract".
A. Documents to be Dellvered by Seller to Purchaser Prior
to Closlng.
(1) Tltle Documents. Withln ten
after acceptance of the Contract, Seller, at
del:Lver Lo Purchaser the followlng ltems
Property:
(10) calendar days.
1 ts e::pense, shall
relatlng to the
(a) Tltle Insurance
insurance commltment as requlred
Contract (the "Tltle Commltment");
Commitment. An
under paragraph
ALTA tltJe
9 of the
(b) ,Encumbrance Documents. Coples of all deeds
of trust, llens, easements, rlghts of 'day, protectlve covenants
and other encumbrance documents agalI1st the Property as revealed
by the Tltle Commltment, or agalnst any personal property located
at or used In the operatlon of the Property (the "Encumbrance
Documents") ;
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(c) EXlstlng Survey and Appralsal. A copy of
Seller's most recent survey of the Property and any appralsals of
value, whlch the Seller may have;
(d) Certlficate and Statement of Taxes Due. A
current certlflcate of taxes due coverlng the Property and a
statement of personal property taxes due, both prepared by the
Pltkin County Treasurer;
(e) Leases.
for the eXlstlng buildlng.
A copy of current leases, if any,
B. Covenants, Representatlons and Warranties of Seller.
Seller hereby covenants, represents and warrants to Purchaser the
followlng, all of whlch shall be true, accurate and complete as
of the date hereof and as of the date of closlng:
(1) Status and Authority. Seller has the rlght, legal
capaclty and authorlty to enter lnto and perform its obllgations
under this Contract and the documents to be executed and
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dellvered pursuant hereto, WhlCh shall constltute Sellpr's
and blnding obll ga t lons en forceable In accordance w 1 th
terms.
VillH1
the~r
(2) Lltlgatlon. No material actlon, suit or
proceeding' is j'Jendlng or, to the best of Seller's knowledge,
threatened against Seller or affecting ltS lnterests ln, manage-
ment, or other actlvltles wlth respect to, the Property. Seller
lS not in default wlth respect to any order of any court, arbl-
trator or governmental body.
(3) Zonlng and Compliance I'ith Law. The Property lS
currently belng operated and villI contlnue to be operated ln
compllance Ylith all zonlng and land use requirements pendlng
closing hereunder.
(4) )'0 Confllct. The executlon and delivery of tIllS
Contract and the documents requlred hereunder and the
consummation of Lhe transactions contemplated hcrei n ,-"ill not
(a) confl:Lct Yllth or be ln contravenllon of any provlsion of any
lall, ol-der, rule or regulatlon appllcable to Seller or the
Property; (b) result ln the breach of any of the terms or pro-
V1Slons of, or constltule a default under, any agreement or other
lnstrument to winch Seller lS a party or by loIhlCh It or uny
portlon of Lhe Property may be bound or affected; (c) permlt any
j'Jarty to terminate any such agreement or lnstrument or to accel-
erate the maturlty of any lndebtedness or other obllgation of
Seller; or (d) resl!'lt In any llen, charge or encumbrance of any
nal\1u, on the Property olher than ilS pl'nnltted hy Lhl r, ContrilcL.
(5) Use of Property Penctlng Closlng.
of thlS Contract and the closlng date, Seller.
Betlleen the date
(a) shall not dispose of any lnterest In the
Property;
(bl shall keep the Property adequately insured
agalnst ull hazards;
(c) shall malntaln the Property ln ltS condltlon
as last observed by Purchaser, normal wear and tear excepted; and
(d) shall conduct all operations affectlng the
Property only ln the ordlnary course of buslness and In the
manner that the operatlons have been conducted to date.
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(6) No Contracts. There are no contracts or
agreements, oral or wrltten, which affect the Property Ylhlch will
surVlve closlng, except those WhlCh may be speclflcally
ldentlfled by Seller and accepted by Purchaser.
C. Condltlons Precedent to purchaser's Performance.
obllgatlon of Purchaser to purchase the Property under
Contract lS subJect to the satlsfactlon of the followlng
dl t.lons precedent:
The
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(l) Ratlflcatlon of Contract. In order to be blnchng
on the Clty, thlS Contract must be ratifled by the Aspen Clty
Councll. Hatiflcallon shall be ln the form of a resolution
approving and accepting the Contract WhlCh passes by a maJorlty
vote. If ratlflcatlon has not occurred on or before the 10th day
-,fter acceptance by the Seller, tillS Contract shall be null and
void and all earnest money shall be returned to Purchaser.
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(2) Approval of Purchase. On or prlor to 5:00 p.m. on
45th day followlng acceptance of this Contract by the Seller,
Purchaser shall have the absolute rlght to terminate and cancel
L1llS Contract by deliverlng ln person or by deposlt in the Ull1tecl
States mall, certlfled, return receipt requested, notice to the
effect that Purchaser chooses not to proceed witll thls Contract.
If the 45th day falls on a Saturday or Sunrlay, the approval
perlod shall be extended to the following ~londay. Such option
shall be exerclsable at the sole dlscretlon of Purchaser. Upon
dellvery of such llotlce, Seller shall return to Purchaser the
full amOUn t 0 f the earnes t money depo~;l t ($ 2 5,000.00), together
vll th all lnterest accrued thereon, ln accordance \1i th the
provisions of paragraph r(ll, below, and this Contract shall be
of no further force or effect. If such notlce lS not glven, thlS
r1ght to termlnate and cancel shall be deemed walved, the'
ConlracL shall continue 111 full force and effecL, and clos:Lng
shall occur on the date set forth ln paragraph D, below.
(3) R1 ght to Inspect. Purchaser's performance hereun-
der shall be contll\gent upon and subJect to purchaser's rlght to
lnspect the Property durlng the approval perlod descrlbed ln
C (2), above. In order to permit Purchaser Lo make a thorough
invest:Lgatlon of the Property, Seller shall all0\1 Purchaser and
hlS or ltS agents, representatlves and deslgnees to have full and
free access to the Property at reasonable tlmes and upon
reason~h~e advance notlce to Seller or Seller's deslgnated agent.
PurchasE't"' s completion of any such investlgatlon or lnspectlon
shall not cons tl tu te a wa 1 ver by Purchaser 0 f any 0 f Seller's
re[Jreselltutlons or v..arrantles contalned ln thls Contract.
Purchaser dgl-ees to lndemnlfy, defend and hold Seller harmless
agalnst any mechan~cs' llens or other clalms or demands that may
be asserted by purchaser's agents as a result of physical In-
spectlons of the Property; and Purchaser agrees to indemnlfy
Seller in the event of any material loss 1ncurred 1n connection
wlth purchaser's lnvestigatlon of the Property.
(4) Rezoning Purchaser, or lts assignee, shall have
the rlght prlor to clos~ng, and at ltS expense, to process an
applicatlon to rezone the Property from ats present
classlflcatlon to "Affordable Houslng". However, no such
rezonlng shall be effectlve prior to closlng hereunder. If
Purchaser fa~ls to close or chooses not to proceed wlth the
Contract, the applicatlon for rezonlng wlIl be wlthdrawn and any
actlon \-Ihlch may have been taken by the Aspen Planning & Zonlng
Commlsslon or Clty Counc~l shall be rescinded or repealed.
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(5) Pre-c los ing Documen ts . On or be fore the dates
specifled 1n paragraph A of thlS Addendum, ap may be extended ln
purchaser's sole dlscretlon, Purchaser shall have recelved all of
the documents and lnstruments to be clellvered by Seller pursuant
to paragraph A.
(6) No Na ter ia 1 Adverse Chan~. Our ing
from the date of thls Contract to the closing date,
have been no materlal adverse change ln the Property.
the per iod
there shall
(7) Covenants, Representations and Warranties. On and
as of the c] osing date, Seller shall have ::omplied ,nth each of
the covenants, proml.ses and unclertaklngs ')11 1 ts part hereunder,
and each of Seller's representations and warrantles, as set forth
here:Ln, sha 11 remaln true, accurate and correct in all mater ial
respects.
(8) Tltle. On and as of the closlng date, Seller
shall own and convey to Purchaser good dnd marketable title to
the Property, free of all llens and encumbLdl1ees except those set
forth on Lhe '1'i tIe Conuni tment Hhich do not, in Purchaser's
dlscretlon, render tl tIe unmerchantable, and which are obJected
to ln \vrlting HiLhin seven (7) days after recelpt by Purchaser of
th., Tltle Comrnl.tment.
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If any of the conditions set forth ln subparugraphs 1 through 8
above are not sat1sf:Lecl, Purchaser may t_errnlnate thls Contract
and have the earnest money deposlt returned to It; prov1ded,
however, that lf the fa1lure to satlsfy any of such conditions lS
a result of a breach by Seller of the terms and condltlons of
thlS Contract, Purchaser shall also have the remedles set forth
In paragraph 17 of thl.s Contract. Purchaser may Halve any of the
condltlons set forth ln this paragraph Conly ln a wrltlng
deslgnated as a walver or a~endment to th1S Contract.
D. Clos1ng. The 010S1 ng of the purchase and sale trans-
aot:Lon contemplated by t ill-s Contract shall be held on or before
the 90th day after aC'ceptanc'2 of tins Contract by Seller, at a
2-ocatlon to be deternuned by Purchaser In Aspen, Colorado. If
the 90th day falls on a Saturday or SunddY, the closlng shall be
the followlng Monday.
(l) Seller's C1.n51ng Documents. On the closing date,
Seller shal I execute "nd dell ver or obtain and de 11 ver to Pur-
chaser the following, all of \,Inch shall be in form and, substance
satlsfactory to Purchaser:
(a)
Dee>d.
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general
deed
to
the
A
warranty
Property;
(b) 1', 1.1~_..Insurance Policy. An ALTA OHner' s
Form B Tltle Insuran'_,,~ J'ol ,'" wlth standard prlnted exceptlons
deleted, in the arnouDt nf t~2 Purchase Price and lssued pursuant
to the Tltle Corrunltmc'nt as approved ancl accepted by Purchaser;
and
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(c) Other Documen ts. Such other rea sonable ano
customary closing documents, and any other lnstruments or
agreements "5 may be reasonably necessary to close the purchase
al10 sale tral1sactlon contemplated by tins Contract.
(2) Purchaser's C los lng
date, Purchaser- shall execute and
to Seller the followlng, all of
substance satisfactory to Seller:
Documents. On the closing
dellver or obtaln and deliver
which shall be ln form and
(a) Purchase Funds. An amount equal to the
ba lance due on the Purchase Pr lce, subJ ect to c los lng set tlemen t
adJustments, shall be pald by Purchaser in cash or certifled or
Wire transferred funds made payable to Seller unless both
PurchaseL' dnd Seller have agreed, ln writ1ng, to other terms; and
(b) Other Documents.
custom,l ry closing documents, and any
ment as H\3Y be reasonably necessary
sale tr;,nsactlon contemplated by tillS
Such other reasonable and
other lnstrument or agree-
to close the purchase and
Contract.
(J) Proratlons. The followlng ltems shall be
credited, debited or prorated between the partles as of the
closing dau.!, and shall be deducted from or aoded to the cash
portlon of the balance of the Purchase Prlce due on the closlng
date, dS the case may be:
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(al ,Ta);es and assessments for all years prior to
1990 shall be pald by Seller. General real estate taxes and
personal property taxes assessed agalnst the Property or the
Personal Property, or any portlon thereof for the period from
January 1, 1990 through the closlng date, shall be deblted to
Seller dnd credited to Purchaser and shall be based upon the most
recent available mlll levy applled to the most recent avallable
assessments.
contracts for
\lh~ch closlng
(bl Any contract fees due to ma~ntenance or other
serVlces assumed by Purchaser, for the month 111
occurs, shall be prorated to the date of clos1ng.
(c) Any prepa1d rent and/or deposits in the
possession of Seller shall be asslgned to Purchaser.
(d) Any and all accounts recelvable of the
Seller, as of the date of closing, shall contlnue to be property
of Seller and may be collected and retained by Seller. All of
Seller's i'lCCollnts payable shall be pald 1n full on or before the
date of closlng and otherWlse shall constitute a contlnulng
obligatlon of Seller.
E. Repurchase Option. If, at any tlme prlor to one year
after clOSIng, the Purchaser or lts asslgns should determlne that
lt \vould be lnappropl iate or impractlcal to develop affordable
hous1ng on the Pro~erty and, follow~ng such determlnatlon,
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d~( l~es to offer'the Property for sale wlthout restriction,
1 ,_'~l:.ation or requlrements wlth respect to the development of
Eo ,- [u)-dable houslng on the Property, the Seller shall have the
i,~st right, but not the obligatlon, to repurchase the Property.
The repurchase prlce sh2l1 be $:'85,000. Prlor to offerlng the
pz OpE_rty for resale, notlce to that effect shall be given to
Eeller and Seller shall have thlrty (30) days to elect to
<?}..erClse her rlghts hereunder by dellverlng a "Notice of Intent"
LO Lhe Purchaser. Seller sholl tender the repurchase prlce
wlthin ninety (90) days following the date of the "Notice of
Intent" and the Property shall be reconveyed to Seller by general
.'arran+:y deed, subJect only to those llens and encumbrances WlllCh
a flected the ProperLy a t the tu.,e of Lhe conveyance hereunder.
lollowLng the expiratlon of one year after the date of closlng,
tnls repurchase rlght shall automatlcally explre and shall
the" ea[l-er be of no force or effect. This right to repurchase
bllaJ l be for the sole and excluslve beneflt of the Seller,
rlun~es Aust:Ln, and shall not be assigned or devised wlthout the
expr~.3 wrltten consenL of the Purchaser.
F. Miscellaneous.
()) Deposlt of r:arl!.cst llonc.:(_ Upon acceptance of tins
('Cln'tact, Lhe earnest looney dC!JGSlLcd of $25,000.00 shilll he
cleE'osited into an lnterest-bearlng account fOl" the beneflt of
l'ul chaser. All lnterest earned thereon untll such time as the
carnest money becomes nonrefundable shall be due and payable to
Purchaser. Seller' agrees that lf Purchaser termlnates thls
Contract and demands rl'turn of the earnest money, as provlclcd
hereln, Seller \ViII return sald earnest money by flrst class
J'lall, hand dellvery, or Wlre transfer wlthin three (3) buslness
clay" after recelpt of Purchaser's notlce.
(2) IndemnlflGatlOI1. Purchaser and Seller hereby
i:lgree to lndemnlfy and hold each other harmless agalnst and In
respect of any and all clalms, demands, losses, expenses,
obllgations, llabllltles, damages and deflciencies, lncludlng,
'!lthout llmltatlon, lnterest, penaltles and reasonable attorneys'
fees that elther Purchaser or Seller shall lncur or suffer
arlsing from, resultlng from, or relatlng to any materlal breach
of, or materlal fallure by the other party to perform any of ltS
repreSej,tations, warrarrtles and covenants under this Contract.
he security for the indemnlty obllgation of Seller set forth ln
thlS paragraph, Purchaser shall have the rlght, In addltlon to
any other right or remedy avallable to It at law or In equlty, to
offset the amount or value of Seller I s obligations hereunder
agalnst the balance of the Purchase Prlce due from Purchaser at
closlng untll the lndemniflcatlon obllgatlons of Seller have been
satlsfled in full.
(3) Survlval of Covenants, Representatlons and \>lar-
.:c:"d2U:2::~' The representaLlons, Ilarrantles and lndemnltles made by
Lhe partles to thls Contract and the covenants and agreements to
De performed or compIled .nth by the respectlve parties under
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this Contract before the closlng date shall be deemed to be
conllnulng and shall surVlve the closlng.
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(4) Cooperatlve Efforts. Purchaser shall cooperate
\'lth Seller in revlewlng promptly all matters requirlng purchas-
eL s approval and consent under this Contract, and will use lts
best efforts to notlfy Seller ln wrlting of its approval, consent
or disapproval of such matters as soon as reasonably possiole
after recelpt of the documents submitted to lt for its reVlew.
Nothing in thlS paragraph, however, shall reduce the time perlods
for review and approval of documents or final approval of the
purchase of the Property as speclfically set forth ln this
Contract.
(5) Effect of Headings. The subject headlngs
~aragraphs and subparagraphs of thlS Addendum are lncluded
l- urposes of convenlence only, and shall not affect the
structlon or interpretation of any of its provlsions.
of
for
con-
(6) Entire Agreement. ThlS Contract constltutes the
entlre agreement bet~leen the parties hereto and supercedes all
prlor and contemporaneous agreements, representations and under-
standings of the parlies regardlng the subJect matter of tIns
Contract. No supplement, modlflcatlon or amendment of the
Contract shall be blnd ing unle S s executed in writing by the
rartles hereto.
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(7) Counterparts. This Contract may be e:<ecuted ln
one or more counte:cparts, each of WhlCh shall be deemed an
orlglnal, but all o~ whlch together shall constitute one and the
same lnstrument.
(8) Bindlng Effect/Assignment. This Contract shall be
bl!\dlng on and shall lnure to the beneflt of the parties to lt
cwd their respec tive successors and asslgns. Purchaser may, ln
ll" sole dlscretlon and Wl"thout the prlor consent of Seller,
2ssi<)n all of Purchaser's rlghts hereunder to, or cause tltle to
the ProperLY to be taken ln the name of, a nomlnee selected by
Purchaser, lncludlng, but not Ilm:J.ted to, a partnership,
corporatlon or other entity for~ed for the purpose of ownlng and
neveloplng the Property or the Aspen/Pltkin County Housing
i\utILOrity.
(g) Hotlces. All notices and other cornmunlcations
under this Contract shall be ln wrlting and shall be deemed to
have been duly glven when personally dellvered, or on the thlrd
n~y after malllng, If malled reglstered or certlfled mall,
postage prepald and properly addressed as follows:
'ro Purchaser at:
The City of Aspen
c/o Myler, Stuller & Schwartz
106 S. Mill Street, SUlte 202
Aspen, Colorado 81611
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To Seller at:
Frances Austln
c/o Scheer & Assoclates
555 East Durant
Aspen, CO 81611
(10; Governlng Lc~~. This Contract shall be governed by
-,nd construed In accordanc'2 \Iith the laws of State of Colorado.
(11) Severablllty. If any provision of tIns Contract
1-S held by a court of comp(d:ent jurisd~ction to be ~nvalid, void
ur unenforce:'ble, the rerr, " I ncler of the provisions of this Con-
i ract shall 1 efllain ln ful1 "-crce and effect and shall in no way
,y= affected, l,npalred or ll,validated.
IN IHTNE:1S WHeREOF, t',F,' partles hereby consent to the terms
," thls Ildden-,'l;) and lncorc ITate the same lnto the above-refer-
enced C~ntLact as of the d,~e set forth In sald contract.
SELLER:
PURCHASER:
-=-~;:.: /} --I-
,- '-d -'71-cJ. _./ C:::>':'1:"_~/' /(....., I
(e, l'lanc~S-Aust.il~v
,
THE CITY OF ASPEN
a Colorado Munlclpal Corporation
By~ ~~C:?/~
Ci ty r1anager /"
(e
11!DfJ2
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EXHIBIT B
LOAN AGREEMENT AND OPTION
THIS LOAN AGREEMENT AND OPTION lS made and entered lnto thlS
___ day of , 1990, by and between the CITY OF
ASPEN, a Colorado munlclpal corporatlon (the "Clty"), and the
ASPEN/PITKIN COUNTY HOUSING AUTHORITY, a multi-Jurlsdlctional
houslng authority (the "Authority").
R E C I TAL S:
1. The Authorl ty lS the owner of certaln real property
located In the County of PltJ~ln, Clty of Aspen, whlch lS referred
to ~eI81n as the "Property" and lS more particularly descrlbed In
Eylublt "A", attached hereto and lncorporated hereln by thls
retErence.
2. Pursuant to an Agreement for the Asslgnment of Contract
Plghts enLered lnto by and between the City and Lhe Authorlty on
1990 (the "Asslgnment Agreement"), the City has
approprlated funds to be advanced to the Authorlty for the
purpose of acqulrlng the Property. Furthermore, the Cl ty wlll
approprlate such funds as are necessary to payoff the purchase
money note payable to the Seller of the Property upon maturlty.
The funds to be advanced for both the down payment and the payoff
of the purchase money note are ldentl[ied below and referred to
h~reln as tile "Loan Punds".
3. As contemplated in the Asslgnment Agreement, the
partles deslre to set forth hereln the terms on WhlCh the Author-
lty shall be obllgated to repay the Loan Fun~s and the rlghts and
remcdlcs of the partles vll th respect to the development of the
Property for affordable housing.
NOW, THEREFORE, in conslderation of the agreements and
matters set forth hereln, the pdrtles agree as follows:
1. Recelpt and Use of Loan Funds.
A. Down Payment:. '['he Authority
recelpt of Loan Funds in the amount of $
the Se ller as the dO\m payment for the
Property.
hereby acknowledges
to be pald to
acqulsltion of the
B. Payoff of Purchase Money Note. The City agrees to
approprlate ann advance to the Authorlty addltlonal Loan Funds In
an amount sufflcient to pay when due the prlnclpal and lnterest
on the purchase money note payable to Francls Austln by the
Authorlty In the original prlnclpal amount of $ , WhlCh
~0te was glven to the Seller In connectlon wlth the acquisltlon
of the Property (the "Purchase Money Note"). The Authorlty
agrees to acknowledge recelpt of such addltlonal Loan Funds and
~-
:ie.
f.
b,
to apply such funds only to the payment of the Purchase Money
Note.
2. Repayment of Loan Funds. SubJect to the prOV1Slons of
thlS Agreement, the Authorlty promlses to pay to the Clty the
"I~ount of ,the Loan Funds, together Wl th 1 rlterest thereon at the
Y<lte of 9.25% per annum, whlch amount shall be due and payable on
the "Payment Date" set forth below. 'l'he Clty acknowledges that
the sole source of repayment of Lhe Loan Funds and the interest
due thereon shall be limlted to the Net Proceeds derlved from the
sale, lease or other dlSposltlon of the Property and/or as a
ref,U 1 t of any permanent flnanclng secured by the Property, as
more partlcularly descrlbed below.
Net Proceeds are defined as any funds recelved by the
~uthority from the sale of the Property an%r the lmprovements
i_o be constructed thereon, and/or any fclnds dlsbursed to the
Authorlty pursuant to a loan or bond secured by the Property and
completed lmprovements (the "Permanent Loan"), less all costs
lncuyred by the AuLhorlty In the development of sald lmprove-
ments, lncludlng, but not llmlted to, plannlng, legal, archltec-
tural, englneering, lnterest and financlng costs, and all costs
of constructlon, includlng materlals and labor (the "ProJect
Costs") .
If the Property and improvements are sold to qualifled
buyers as affordable housing, the "Payment Date" shall be the
tenth (lOth) day followlng the last sale of a dwelllng unlt.
Upon recelpt of the Net Proceeds, any balance of the Loan Funos
and accrued lnterest remalnlng due s]Lill be forglven and the
Authorlty shall be released from any further repayment obllgatlon
hereunder.
If the Property and the lmprovements are leased as afford-
aLl e houslng to quallfled occupants, the Authority \nll arrange
for and secure a Permanent Loan In the maXlmum amount whlch can
leasonably be servlced by the antlclpated rental lncome and shall
pay to the Clty the amount of Loan Proceeds over and above those
requlred to payoff the ProJect Costs. Such proceeds shall be
pald to the Clty In partlal satlsfactlon of the repayment
obllga tlon I'll thln ten (10) days after receipt.. Thereafter, the
repayment obllgatlon shall remain In effect and shall be sat-
is[.Led by (a) the payment to, the City of net operating income
from rental of the improvements withln ten (lO) days of the close
of each fiscal year, less debt serVlce and a reasonable reserve
for repair, malntenance and vacancy; and (b) by payment to the
City of the proceeds from the sale of any dwelling unlt on the
Property, less the ordinary and customary costs of sale (i.e.,
commlssions and closlng costs). Upon the recelpt of sald loan
proceeds, net operatlng lncome and/or sale proceeds, the balance
of the Loan Funds and accrued lnterest due shall be forglven and
the Authority shall be released from any further repayment
obllgatlon hereunder.
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3, Securlty/Subordlnatlo~. As securlty for the perfor-
mance of ltS obligatlons hereunder, the Authority hereby grants
and asslgns, for collateral purposes, all of lts rlght, tltle and
lnterest 1.1 and to any proceeds which the Authorlty recelves from
any of the following sources: (a) resale of the Property; (b)
sal" of tbe Property together with lmprovements constructed
thereon; (e) the leaslng of the land with or wlthout improve-
ment-s; (d) the sale of lmprovements subJect to a land lease; (e)
the proceeds of a Permanent Loan secured by the Property, the
lmprovements thereon and any leases of the Property and/or
lmprovements thereon; or (f) from any other Slmllar source. The
Clty aJrees to subordlnate the foregolng securlty lnterest to a
loan 0~ ~und for the constructlon of improvements on the
Property, provlded that the type of lmprovements, the terms of
such 10cHl cr bond, and the plan for the resale and/or lease of
the 1)'1):. covements have been approved by the City as provided in
the ASQ~gllIn~nt Agreement.
4. f'c?
shall us'" - j;,d
the prnV.LSlOnS
and Development of the Property. The Authority
develop the Property strlctly in accordance Wl th
of Paragraph 3 of the Asslgnment Agreement.
5. Events of Default and Remedles.
A. Default.
events of default:
The following shall be considered
(1) Fallure of the Clty ano Authority
to agree upon a "development program" for the
Property, as contemplated and descrlbed In
Paragraph 3 of the Asslgnment Agreement,
wlthln a reasonable tlme follovllng the date
of Lhls Agre~ment.
(2) Fallure of the Authorlty to under-
taJ;e or dlllgently pursue the agreed-upon
aevelopment program approved by the Clty.
(3) If, after commencement
dev810pment program, there lS any
of activity thereunder for a perlod
ot thlrty (30) days.
of the
cessation
In excess
(4) Any materlal
development program or
proved by the Clty.
deviatlon
marketlng
from
plan
the
ap-
(5) Any pledge, hypothecatlon, or grant
of a mortgage, deed of trust, or securl ty
lnterest In t.he Property except to secure a
loan for ProJect. Costs, wlthout the advance
wriL1..en consent of the Clty.
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(6) The flllng of any mechanlc's liens
or suits whlch would result In a llen on the
Property.
(7) If the Clty determlnes that the
r0st to complete the development program wlIl
~''=' ln excess of the amount commltted pursuant
Lo a constructlon loan commltment.
(8 )
falls to
l\greement
If the Authorlty is in default or
perform any provlslon of thls
whlch lt lS requlred to perform.
P. Notlce, Rlght to Cure. In the event that the
Clty v2lleves thaL the Authorlty is in default with
re~rert to the performance of this Agreement, as
rlefLDed above, the Clty shall provlde wrltten notlce of
such dEfault to the Authorlty. The Authority shall
have i'l perlod of flfteen (15) days to provide evidence
to the satlsfactlon of the Clty that the default has
been cured or \vlll be cured wltlnn a reasonable amount
of t1ffiC. If the Clty 1S satlsfled that the default has
been cured or wlII be cured, thlS Agreement shall
remaln In full force and effect. Otherwlse, the Clty
shaLL have the remed1es set forth below.
C. Remedles.
occu rand sha 11 not
of->l:lon, may:
of default
Clty, at its
shall
sole
If
be
any event
cured, the
,
(1) In addition to any other remedles
whlch the City may have under thlS Agreement
or by statute or by rule of law, enter upon
the Property and construct, equlp and com-
plete any and all of the lmprovements contem-
plated in t.he development program or such
amendments thereLo as the City may from tlme
to tlme, and ln l ts sole d1scretlon, deem
approprlate. The Cl ty shall have the right
at any and all times to dlscontlnue any work
commenced by lt 1n respect to such lmprove-
ments or to change any course of action
undertaken by it and shall not be bound by
any llmltatlons or requlrements of time
\,hether set forth hereln or otherwlse. The
Clty shall have the rlght and power at ltS
optlon to assume any contract made by or on
behalf of the Authorlty In any way relatlng
to the constructlon of sald lmprovements and
Lo take over and use all or any part or parts
of t.he labor, materlals, supplles and equlp-
Tnent contracted f or by or on behalf of the
.;ut.horl ty, lncludlng such equipment and
supplles as havc2 theretofore been dellvered
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to the Property or stored
lncorporatlon lnto the
lmprovements, all In the
dlscretion of the City.
In any fnclllty for
Property or sald
sole and absolute
(2) In connectlon III th the completlon
of the development program, the CiLy may:
(a) engage LUllders, contractors, archltects,
englneers and others for the purpose of
furnlshlng labor, materials and equipment in
connectlon Wl th the completlon of the im-
provements contemplated In the development
program; (b) pay, settle or compromlse all
bllls or clalms whlch may become llens
against the Property or the lmprovements, or
both, or which have been or may be lncurred
.tn any manner ln connect~on I'll th completlon
of the lmprovements or for the dlscharge of
liens, encumbrances, or defects In the tltle
of the Properly and/or the lmprovements;
(c) take such actlon as 1 t may determu1e to
protect the Property or lmprovements and/or
supplles dellvered tor incorporatlon lnto the
Property or lmprovements.
D. Attorney-in-Fact. For the purpose of faclI-
Jt~tlng enforcement of the remedles provlded above, the
AutJ'Orl ty hereby lrrevocaLly constl tutes and appolnts
Lh8 Clty ltS true and lawful attorneY-ln-fact to
execute, acknowledge and del~vcr any instruments and to
do and perform any acts relatlng to completlon of the
development program for and on behalf of the Authorlty
and In lts name and place. ThlS pOIVer of attorney
shall be deemed to be a power coupled wlth an interest
dnd lS lrrevocable. The Clty, as such dttor-
neY-ln-fact, shall also have the power to prosecute and
dofend all actlons or proceedlngs In connection wlth or
affectlng the Property or the development of lmprove-
ments thereon.
E. Remedies Cumulative. All powers and remedies
given by this sectlon shall be cumulat:Lve and not
exclusive of one another or of any other right, remedy
or of any other powers avallable to the Clty by appli-
cable law to enforce the performance or observance of
the covenants and agreements of the Authorlty contalned
In thlS Agreement. No delay or omlSSlon of the Clty to
exerClse dny rlght, remedy or power arlslng upon any
default shall ~mpair any such rlght, remedy or power
with respect to any other subsequent default. Every
power, right and remedy glven to the Clty may be
ex"rclsen from tlme to tlme and as often as may be
ueem2d necessary by the City.
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6. Recordlng of thls Agreement. ThlS Agreement, or a
memorandum thereof, may be placed in the records of the Clerk and
Recorder of Pltkln County, Colorado.
7. Other Documentatlon. Either the City or
shall exec-ute such other documentatlon as may
requlred In order to effectuate thlS Agreement.
the Authorlty
reasonably be
8. 9pt.lon Lo Purchase. Any of the foregolng provlsions to
the contrary, notlnthstandlng, lf the partles determine that the
Authority vill either enter into land leases wlth the purchasers
of the lmprovements to be constructed on the Property, or wlIl
lease the lmprovLments, the Clty shall have the rlght, but not
the obllgation, to acqulre the Property from the Authorl Ly,
subJect to any and all liens and encumbrances, for the purchase
prlce of $10.00. The foregolng optlon to purchase shall be
uncGnc 1 tlonal and lrrevocable. In acqulring the Property
pursuant to thls option, the Clty shall take tltle subJect to the
terms of any land leases whlch are in effect at the time the
optlon lS exerc:Lsed and subJect to any mortgages or deeds of
trust IllllCh have Leon granted ln connecLion vnth the flnanclng of
the co"t of lmprovements constructed thereon, and shall release
and indemnlfy the Authorlty from and agalnst any and all further
llablllty wlth respect to such obllgatlons.
9. Mlscellaneous Provlslons.
A. Walver. No waiver at any time of the pro-
VlSlons or condltlons of thls Agreement or of any other
documents executed in connection therewlth shall be
consldered as a walver of any of the other provisions
or condl tions hereof, nor shall a walver of any pro-
\Jsion or condltion be construed as a rlght to a
subsequent walver of any other provlslons or cond:Ltlons
(Jr be construed as a rlght to a subsequent walver of
th6 same provlslon or condltion.
B. Amendments. Neither this Agreement nor any
~rovlslons hereof may be changed, walved, dlscharged or
tcrmlndted orally and may only be modlfled or amended
by an lnstrument In wrlting, signed by both partles
hereto.
C. Notices. All notlces shall be in writing and
shal I be deemed to have been sufficiently given or
"erved when presented personally or when .deposlted In
the Unlted States mall, reglstered or certified mall,
addressed to the partles as follows:
'Eo the Cl ty:
City of Aspen
Attentlon: City Manager
130 South Galena
Aspen, CO 81611
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To the Authority:
Aspen/Pltkin County
Houslng Authorlty
Attent~on: Dlrector
Truscott Place
39551 Hlghway 82
Aspen, CO 81611
D. Interpretation.
lnatteL," relat~ng thereto
construed and interpreted
of the State of Colorado.
This Agreement and
shall be governed by
In accordance with the
all
and
laws
. rlttell.
EX'eC'\.t, d in dupllcate orlglnals the day and year above flrst
CITY OF ASPEN
ATTES'r:
By:
;:'ity Clnk
ASPEN/PITKIN COUNTY
HOUSING AUTHORITY
By:
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...... J..:_~~" "\.. \
'Y.~r1"1r'~ _
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. . ,
.
" "i't "J::,r /'I.
~~I16~_ _,,_
nus IS ,t[O~L tHSTlIUMlIH IF HOT UHDfllHOOII nUL 'AX
OR OHlER COUNSEl SHOULD BE CONSUlTED BEfORESIGHIHti
Tht' prlnlt<l fll>rtll>n~ r,( lhll 'orm "ppr...t'd by Iht'
Cotorado Hul E~I.lt' CommlUlon(SC %0:' 511
RESIDENTIAL
CONTRACT TO BUY AND SELL REAL ESTATE
(Seller's remedy 11ll1lled to Liquidated Damages)
"-
~,
The llndel s~gned ng-cnl hereb}- ackno\\ ledges hu\ Ing received from the Ci ty_ of A~pen
'" thesumof$ 25,000.00
'\ ,to be held b,--.SillaeLJLl\sSQ91a tes
June 8
1990
. -
a check
,In the form of
,
broh.er, In brol-.er's escrov. or trustee account, n,> earnest mone\ nnd
estntclnthe_ Clty of Aspen Count\o[ Pltk.1.n
part pavlllent for the followlllg descTlbed
I Colorado, to wit
real
Lots 3 , 4, 5 and 6, Eames Addition to the Clty a'^ , PI J 1
-, -, I --::)
of Aspen,
together \lJlth ntllOlPI ovcmcnls thereon and .i11 (I'lures of a permanent nature currently on the pi Clnlses e'cept as
herelnnftel pi 0\ Ideli, In their pI escnt condition, Of dlnar~ \~e.lr and teal e>.cepled, hnown as No
,nnd hcrclnaflcJ called the PropcllY
(SlrO'l't AJdrL~' LII) lip)
2 Subject to the IH O\'ISlons of pal ag-I aph 17, the undel slgned~;:'Q\1Q:~rmm..1~:iI29L.90XJ2Q:rat:lOn 1 the
-Cl.t}1 of A<;~. or ilS5.lgnS (X;}j:QJ.nCC>":!-CKKHl<i'<lli}lO!}QJ],;OOiUlJ{),
hereinafter called Purchn<;el, heleby a~rees to bu, the Plopertv, ,1nd the lllHiel51g-ned o\...ner(<;l. hereinafter called
Sellcl, hel cl/\ .1/..:"IPC<; to sell the Propel t\ upon the t(>1 /Tl<; and condition') stilled herein
3 The pUI chase price shall be U S $ 575 (000.00 ,pa\ able as follows; 25,000. oq,erebl' recelpled for.
the relance, subJect to adJusITnents as provlded hereln:
a. 525,000.00 in cash or certlfled funds at clos:Lng.
b. The relance ln the form of a prOffilssory note, payable ln a swgle
payment on January 2, 1991, togeth~r IVlth lnterest at the rate of 9% per drumm.
'The note shall be secured by a flrst deed of trust on the Prorerty.
4 Price to Include any of the follOWing Item'i current" on the Propel t, llg-htlng', heatIng', plumlHng-, ventilatIng,
<1nd (..cntral nlr condltlonlng' fl\tUl es, <lttached T\ antennas nlH],or \\ ater softener (If owned b) Seller), all outdoor
plants. wlndo\\ and porch shades, venetian blind". <;torlll \\lndows. storm cioor", screens, cllrtnln rocis, draper\ r()ds,
attached !1llflOIS, linoleum, rIOOI tilc, n\\tlln~<;. flleplace screen and g-lrLte, built-In kitchen appliances, w.dl-to-wall
carpeting
all In their prc')ellt condition, Lonvcyetl free .tnd denr of,1I tn...cs. liens I\nd enCUtrlblfU1L('<; c:....c(..p_~~<; pro'lde~~~__~____
pnr.q~iraIlb 11, pi 0\ lued. ho,\ ever, th1 t the follo\~ I rlg- flxtUI PS of .l perm 'ln~~nt l~-~t~ Ie n f ,. .......;:;:Tildl Ii i, ~Jll t I, 's <; ,le .......
Pel ~(}Ilnl pi Opf'rtv <;11,"1 hf"' COl1vc\'cd In 11111 of~.dc
o rflltllWI'illtlll Illldlllllll 11,\ 11111,1,,1,1 (I 'l""tlulrl]-...lt"l'dl(ll",\.J "hl{c-.t"I"'I,>tnl'lh /lnd,'hllj-.,-"ll, (I,)
"Ill, (",.-"U-t+r-+llHI (I It q{ ,,11/""\.111\'1 "t ""Jf",,, ],,,Ih-nf,,,,,,,,t..,,,'n,l,I\,..Io\ lot ,"'j"Tt-t~~. ), I t"'--fH-l"f1
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i:'. _ _ ,11 IM'irr",,"+I'Hl.-I".r,rif--t'~III~t~lp 1il\11l\".;1 d".HI~r\lllt.H>M~Mi ,h,,1l6ll1lill "".1 v",J~11-1",,.,"...,,"-,..1
h'lfI'H'.,.......,........t>I~P''-'-.1 t 1.1 ..1I1t11.. I~. II lIt 1 t llllllLd It 111/1 1 l~
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NI[IlUlllllldllh'1 '\ 11l11l"(I)llJ"IItI!I"n (,1 f.. II..I!,,\., ,,!r__~_ _ ______ ___ l"d\olJr..I\\llt,~~~
Iwkt.u..,,,,,,"1 11'101111\.111\ Iftll,l nnl\11 Olllltt\ldllllll''''II\'nl'\t'II(''r!\II'__~I'lll'''r''II,J:.l~dde
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ae " I 1J:;lInlIl' h' PIII'I'h(lf I'll "'lill!/llI V'lltt....1\ {1I11ll11l nf c;.,.lIH!-.
" ,,' 'It:~; ;'l\~';':.~,:'iJ;::J/';~~}:~):~~,t:\' ~;.r;iRk1:f,~~~~&'~-ii1?h"R'<'~~t~~;e-: .~:;U-'; j.~
H "', ~"\f.(,1~7H"'~\.-f~:'7i"y'iW~~!~.I"{'.::'\(t~~~r;"~J ~~ .....~-.,... ~~t~;r:.::_"'r~.~1::,~~k t ~~. \ ~
~ 8. Cost of any appraiaal (or 1()l.n purposes to b.O obhlned .lter lhh dat.e aha.lI be paid by ~ Purchiiser-' ~;A~~ !'1.~ 'J
'/ - - 1 l-..,:....' , ~;,... t~ P:r"':'~'~~ ~...' "Lt4".!~A~-1....,:.; -,-; - -- ;:.#..s.rrf,..)'..JJ;;.~#1~i~~Yr!-' r.:;~f
I - I '<t ."-'.t~ ~_. ) ",~ l~ f.I.",~~"r~r~j5..~il.t/~{J:'J-i~y~~~~1 ~::A \ .,r;~"f1rr'ff,t'fr'\r!.tL~f~. '~~ r~
'. .It 9~bat-r~H:ttt(. to t.ll~'~ ..l>..<'$>; Urri;,'~~cr'current commitment (or title In~urance"pohcy in ftn flj . "J...
, Ie' amount eq~.lit~~\h~l~\.ir~h_li;;Jl#I' t\:8.1!.ri~:1~~il~Y~'ndl..xP'nae, ahnll be furnlahed to P~lrcl~.8~!:~~1\1,~~..h~f~t~ ~.=~
E.VI _, A (1) (a) O~'. t1~ Aik:l;e.r.dliqt.j). ~ifC~lIe!dcd~ \c. (Jll'dd, ul,ld tltl~ \l\ "..I, "II'-\,. \"V\IlI"I~'''"Cllh Selle~y.'111 '.11;:: ~~~j
dehver the title 'naur-~~~f'p()lk7urpn In'~'ratt'1~cl;;~ng and pay the preml\lm tnereon ~ - ( , ~"" ~ __I~.......1l..,
.. 'II . I J 'II ~;r .r"'ll ~~"4-'" "'" .... I I d I I'
, 10, The dal-G or clollnl,ahan'biollh' ~.tiC:rtor...deHv,~ry oC deed ns pro'" ( (! n JICtI rwrAp 1 11 111(~ 11lHlr urad pll'ce of
clo'ln!: .hall be ~.d..llPl.te~~::in "flrrnm;mrp 0 th p;'lri'lgraplL[LOLUlC-Ar.ltlcllUUm.
, 11. Tille .hall ~ m;;ch"'nlabl"in'8~UeIj 'e.xcept 111I statcd In Hus paragraph Rlld III pnrn~rnphs 12 nnd 13 SubJect'" .-- or>:..
to payment or lend;r"a.'~bo,; p~o'W~d;d ~nd compliance by Purc:hoscr With the other t{'rlll" nnd provIsion,> Ill'l cc..f,
Seller shaH execute ~ and Tdei"'~;;:';:~od and .8UfClclent -.9.gng.f?.1 wnl:'rnntv deed to PurchAser on
the date of clos;TV"I r"v:'-" ....*./.-;: b mutual agreement. at an enrller dale, conveymg the Propert.,. free ann
.............. j':t':I_or. y
Clltltu' tJflllll".ltee ~)[('eI'Llllu san.;;..1 t..lIl'.... (pr Hul' )'pllr pC tloswv.. nnd::dXW?K .
(re d I C'1111 ( 'II'" hieuls!lIsltdlutlllsUrlht!1I11lrofl'\Ilrhllhl'I'11tdl:IIHI1l11'he Il't1l1,whl'lhl!r
can c ea.r 0 a en! or apec a ImrrQve . .
assessed or not. lret and clearol.lllaen:!' Rnd encumbrances except those d1.sclosed by the tltl e
carmibrent 'w!rich do:not, in Purchaser's discretion, render tltle unnerchantable
(see paragraph C(8):of the Addendum),
X t d d di t easemcnts for telephone, electricity, waler, sonltary sewer, and ensements for
e cep recor e an or aplJaren
1-
:e
te
except the (ollo\l,lngrestrlctlve c:ovennnts v..lllch do not contain 0 rlg-ilt of I cvertcl
None
and subject to budding and zonll1g" reglllatlOns
12 Except ns stated In paragraphs 11 and 13, Iftlllc IS not merchantnble nnd written notIce ofdcfect(s) IS Riven b\
Purchaser or Purchaser's agcntlo Scllcl or Seller's n~ellt on or bef{1l e dale of clo!:.lng, Seller shall use reasonable
effort to correct saId ddect<.,) pTlor to d,lte of C10'>lllr; If Sedler IS unllhl(' to con eel ~r\ld dcfect(~) on or before c1ntQ of
clOSIng, at Sell(>r's option find upon \\ lltlen Ilot!(e to Purchn~el or I'llrlhll'>CI '" ng-ent on 01 llcfore dntc of t1o~ln!;, the"
date ofclosll1g' shall be cxtel1dul thll t\ da\ <; fOI the purpo~e of correctlllr. snld dcfect{~) E).cept as <;tuted In pnrnJ.;raph
]3, If title IS not rcndcnd lllcl(,hnntaule n~ pI oVldcd In thl" Jlilrng-rnpll 12, lit Pm chaser's ol)Uon, thl'> contract ~hnll Lc
VOId find of 110 dft'(t nllt! (',1(,11 p,1l t\ h('lctCl "hall bf..' lclcn<;(.d f10lll 1111 uhlq,:-ntlOtls hCIClllldcl Hnrl all pn)lllcnts and
thllWs of... nlu C I f..'(,l'IVl'd III r l'\Illdel .,hnll hc l Pllll llcd lo 1'111 ell a ',!..' I
13 Am CIIL\lIllIJl.IlIl(! IlCjlillCd to Ill' pi1ld 111.1~ uc IHIIt! nl the llllle of scttlenH'nt flOlll the fllort'C'd::. of tlll~
,
trnnsactlon or from nil' other source !)ro\H\{'d, 110\\C\CI, at the. option of clthcr pally, 1f the. LotnlllHleuted!\pss
~ecUl ed 1)\ ilcns on the PIOJlert~ exceed" the purchn<;e pllce thl<; contr.lcl sh,ill be VOid find of no effect nnd f!ach part\
hereto shall be} eleao;ed from all obilgatlons liel cundel and nllll:1\ ments and t1l1ngs of value receIved hereunder shall
be returned to Purchaser
14 Genel nl tn"\e" fOl the \ e"ll of cloSlnf', ba<;cd on the mo,;1 I ecent J~\ V and the tno<;t rcc('nt n<;,>essTllC'nt, prep:,lld
rents, \\ ater I ellts. !:.e\\'el rents, rIIA 1l10t trnre I [l'=>U I ,Illee pt emHJ11I0; and Intt.} (st on cllcuml)! ,1IlCCS, If 1\11\, :>DU:__
shall be apportIOned to date of del1verv of deed
15 Possession of the Propert\ shall be ddl\ ered to Purchaser on the date of closlng,
subject to tbe follo\\ 1l1~~ lenses or tel).lllCle<; Uone.
If Sellcr fads to dell' ('r pns<;esslon on the dnte herein specIfied, Sellcr sbnll be suuJeclto eVIction nnd shall be liable for
a dtllh rental of S- 100000 until possessIon IS dellvend
16 In the event the Propcrt\ shall be damnged b, fIre or other cnsunlt\' prior to time of closlIlg, 10 an amount of
not more than ten percent of the total purchase price, Seller shall be obligated to reprUf the same before the date
h"reln pi 0\ lCled fOI dell\ er\ of decd In the evellt <;lich dnm"lJ!c IS not or cannot be repaired \\lthln saId tlTl1e or If the
damages e,<cced such <;um, thl<; contrncl nU1\ be tcrnllllatc.d at the optlOll of Purchaser and nil pn\'mctlt'i nnd tlllng-c; of
\ Blue rec€I\'ed hereunder shall be returned to Purchaser Should Purchaser elect to cnrn' out thIS contract despite
such damage. Purchaser shall be entitled to all the credit for the lIlsurance proceeds resultlllg from such damage, not
c)"cccdmg, ho\\e\'er, the total purchase price Should am fn,tures or senlc.es fail bet\.\een the dnte of th1S contract
and the datc of possessIOn or the date of dehven of deed, \\hlche\'er shall be earher. thell Seller shall be hnble for the
repaIr or replacement of such fl',tures or scn Ice<; \\ Ith a unit of slnlllar Size, ng€ and qllaltt), or an eqUl\ alent cred1t
17 Tlllle IS of the essence hereof If an" note or chech received as car nest mone\ hereunder or nn" other pavITlent
due hereunder IS not prlld, honored or tendered \\ hen due, or If am other obligation hereunder IS not performed as
herein pro\ Ided, there shall oe the f01l0\\ Ing' remedlcs
(n) IF PURCHASER IS IN DEFAUL1. then all payments Rnd things of value received hereunder shall be
forfeIted b\ PUI chnser and reuuned on bcdwlf of Sellcl and both parties shnll thercnfter be relenc;ed from all
oblll::-i1tlOl1S hcreunder It 1<, nj;lcc.d th,lt such pa\ment" and tllll1f'l:. of \'nlue arc LIQUIDATeD DAl\lAGES and
(c,ccpt ns pro\lded III sllLpnr.q;rnpil (c)) are the SELLEn'S SOLt: AND ONLY REl\lEDY for the Purcha'5er's
fnllule to p~-ror'n the obngat1ons of t.!1IS c~lDtract Seller e"\pressb WDlves the remedIes of speCifiC perf 01 mnnce
lInd addl!.lon..-1 d'1.nuqrcs
--~-~__....-..;o
(b) IF' SELLER IS IN DErAULT, (1) Purchaser mn\ elect to trent tlll~ cant] nct no; ternlJnntcd.ln \d\Jch case
nil pn\ Illcnts. nnd thlnJ:o; of \ nlue receJ\ cd he) eundcr c:;hall be returned to PUT chn~cl:' find Purchn<;cr mn\' reco\ or
such damng-es as. Inn\ be proper. or (2) Purchaser nUl\' !;'lect to treat this ccmtrnct no; bell1g- III full force nnd effect
and Pm chuF-I'r ::;hnll hn\'t' lhc nr,-ht to fin fiction fOJ <:;peclflc pc:rfoTlllnnce Clr dnmnr.es, or hoth
(c) Al\..tlllll~ to th~ cOlltlnr" Iltlldll 1l0l\\lth"'lllrHlll\(:;, III tha I:Vl:!nL of tll\\' IltlJ,ttlllon nrln,ll1f.' nUt vf t.llu
eontrnel, lhe eOllrt mnl' nil nl d ta the pre\'nllln~ pnl t)' nil rensonnhle eo,t, nnd e~Jlcnsc, lncludtn~ attarne\'" fees.
18 Purchase! and SeHer ng-rce that, In the e-'cnt of an\ contro\'el s, reg-ardinl! the earnest mane" held b\ broker,
unl('''iS mutual \\ I ILt{,rl III')tt lIctlOfl 1<; r(>('(:I\ cd h\ hroher, hroker o;hall not he reqlllreo to tn\((" OIl\' fict10n hut mn\' nwalt
/1n\ pI Ol("{ (Jill!" 01 flltll Ol{l'l '<, option and dl<;crctlOn, Illn\ II1\e1 Ille,lIlnn:- lllOllt'VS or 111l11J.:<; of \ llllle Into Lourt IIntl mll\
reCQ\'cr court costs and reasonable f1ttornc~'s' fees
~- -- ~-~....~ ,......._"'..,.p\l.\.............. ._~fI'.'''''''''"tl''',..,> ''('7 ."'-~, .,....,-~'.." i'll:""""'.:'"
~=r;.,.!"",q;;"i?.;iJl'."'-""'':;''_''-'-:T "~~i<",!,.P.fi~- - f'1F'<_.",,"~"?'="'!f.l,~"""".';:-"<;""ii'~a'.:>et"""''''''-<;{''F'-''-'P''' '~"l~<::"",l'n,',_
.- ~ . [' f- ... I.~-"I'o .j)" ,~ \ T~"'I.........~;,,~':~:"-.~ '~!~~{".....!... .....-1.:.l:;:.t...::...~yC!.,.L;trc..'"2"_,T~:.A'........~'~~J..1..~o,..
" '.h.lo,,""'I......T\...... ....1...~;:::....:..:...:l..:.............'l'f-....~"':::.,- .tl "~l'l""." :r .....r..:.~~;;~.:....\.-r
. . f ~ .... .... ..(......'.-.- ,'''.; ._.-- ,,,,_. ' . . ..
. .. :, ~'- ,I ,;,~,. 'r ,of .
. . ~.. . \ 1, , _. I.. ..'_
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19 Add,tlo".1 provl.lon.: :~; 1'M l\dden::l~;~,which is attad1ed hereto, is hereby incorporate-
herein by this.reference'{as 'if'setJforth'rVerbatim.
, 1_ \ r.#_ 'l-t.I'y .~~'l1'" ,"'I" v.. "",,~" ~-t-'.. 'fl.,.~ \ \ ..~, ,
.~ ;.~.;:-t1-~'~~~~~~T~"'~~.L~WI}..I.;.t:\t .""S' I,: '"
'.... ,......'&<.. ~,,("I.i'""A&\llIt;~.:t\"r":J.Ii(1J ,(" r l':>"../'" '" '~lT' .
I...., ....... i'Y""'""':'ii~1 'r. Il'"vUT'.""''';.' ("'t..-,t\J' ,I. '
;>- ...t"....AI'...d,.,..8t~~....'t.~.,L'~...1.....""~;J....;-.- _~, ~-
.;- ".. .t:~.l'".,...~,....:~'tc--~.lr......,l~{*r~::~:.;n;'-.' .~. ,I: ....
" . ;-':.t~ ""..r '~f~~~'fZ.....&-,p ~..;(,.-\ (")-1!"~l,_'';~;.',,'
~. ..~ ;; ~ !:::!',;"_...r..' ':'~~'~-'''''''t:.1''''.,,=",,''r ->-,.::: ~-;-r:., ~-.
. -~ ,,::.1 .--:;:-; ~-:;_:;:'::L~.. _ ....._~,.~'ff:"1~~_!JI1 ~ ~tl.': .~/ _ '~:'t
.~f -.......,. n.~~''f;':"''.Q-'''~t''r..';....~:~';'{''-:. l.,i. ..
~ , ....... .. "t" .""1--- ." _.l..<.,~, I ;..."',. I '.. .... 'J " ..'
'" .... ",,'l'" ,"'I ..., l 4 ..,. ......,...,' "1,,.j, I~;' ~......., . ,
,_.f...... .... ......... "h.~'~~ '>0-, '-o1~t...'I~ f -. >:: f ~' (
,I ., ;.'~~~~ _~:"'H~,\:~I.
: ..., ~ '..:'_" ;" -~ -r ....::;. r....'_
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20 If thIs proposnlls accepted b~ Seller In ",riling and Purchnser receives notice of such ncceptance on 01 before
on June 20 I 19_9J)_, this Instl umcnt shall become a contract b )'\'een Seller find Purchaser nnd shall
Inure to the benefit of the belrs, successors nnd assIgns of such parties, e'(ccpjj1ated In pnr~~'j _ <<
, Bloher ') UU'.C/! 1 a~'~d:i4 ~
PUrcha~er Dale
/7' /J
(~i/-;j7 ~&1
106 S. MiI~SUlts 202, Aspo~,
::~~'i/~
p""h~er D,'.
B\
Purchaser's Address
c/o !'lyler, Stuller & SChl-ia:L'tz,
co 816
(rhe (0110\' In~ <:.ectJon 10 bc completed b\ Seller nnd Ltstlnl; Af:cnt)
21 Seller accepts the abo\ e proposal till!; I r.; IA d.J\ of ---LL-c. ~// s:- ,199 t? and ug-rees
to lJa) a commiSSion of f:. C;c of tbe purchase pnce fOI sel "Ices In thIS transaction, and ar;rees that, In
the C'l.ent of forfeIture of pa' ments and things of \ alue received hereunder, such pa' ments and thmgs of \'alue shall
be diVided between i1sttng bloher and Seller, one-halflhereof to said bl ohel, but not to e>..ceed the commlSSlOn, and the
balance to Seller
tlv.Jt-u
-::J
0,,' /,..{7fl1/~ "/
s.lI" ' Frances Austill
S~lIl'r
Seller's Address
c/o Scheer & Assoclates, 555 East Durant, Aspen, CO 81611.
Ll<;tang: Eroher's Name and Address
,