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HomeMy WebLinkAboutresolution.council.032-90 'e ,- Ie 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. e e Ie 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. , ~~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. ~Li~Cl"rk l6/DD8 -2- "'. l' Re it - 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. .. 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, "'. ~, Ie Ie 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: ~ C~ ty Cler' ~ . 22/DD7 -2- ,I. ~ lie i_ 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 22/DD7 -2- ~. ~a ". "a I,.. 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") ; , (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 "- /' " , c_ 'e /' I, ~ ...." 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. , (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 thls con-' 11/DD2 -2- ce 1- \e (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. , (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. 11/DD2 -3- -ie i, "'. il '. (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. , 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. ---- 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 1l/DD2 -4- Ii. '. ;:', ~'.. (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: . (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, lltDD2 -5- ,a (~. '. " \' ,a i. , 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 11/DD2 -6-- '~e " " ;. 1';- this Contract before the closlng date shall be deemed to be conllnulng and shall surVlve the closlng. , (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. , (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 1l/DD2 -7- ie 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 -8-- i. (e ;:. 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. 23/DD7 -2- i. ,- (e 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. 23/DD7 -3- (e I'e ". " " (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 23/DD7 -4- e' ,a '. :!i. 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. 23/DD7 -5- s. \' l:e re 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 23/DD7 -6- {e ,;ie (e 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: 23/DD7 -7- ..... " Ie i'e ,'e " , -'.t.......,..L _ ...... J..:_~~" "\.. \ 'Y.~r1"1r'~ _ \ "......".. " . . , . " "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 (~}j", t1. '" t 1',,,1,, t, \("llll\I"I'~~ll 1110..1, 11,,,,\\f~"I\.hl{'lnnl 1'{'Itl1r'IIl""\II\I,,,l(.(~11. -_ -I 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~ ~-t4'"'ftt:1~fHt.j~~~~~il HI' Ill'll'lg-l\~t 1\ \, III d' 1\11\1' d, Ptll hll ,I llhl Cl~ to Ilf'f1h for " ltttll\ 1If\f1\lll1jltlnn If 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 !tlll!",,-, Ihl tit \11111\]), 11l,J-tt"r.t 11.\ ~,1\t!j"ll\ ,,),,j,tl ,\ d IP"" 1'",,1,"~~1 ''-'''C''lllj-. ",,,I \."",C"l'''h t" .1't1\"l1 1"'" \'IILI{I'1! If 11.~.j..I_.l..ql'l\" r \'PIl' \''It t 111 Inulll rl Illllpll' 1\ II I' 'IHll ( !, till' ~. nllllrll(\ Ul/\dllIIlH~t~I~HH"I~1 l;..O.H~4l-l\j It 11\'''I,l ,'h!.l.l1~r...l.u.....tL,..._t..... '"M"" I v ,HllU.....!-...._!-~...J.....~,~__~t.-4..,.............~....~I,- -; I ( ,I t" \ ~ I I d)" filII d, P II \' II ~.~t' t II ~'( lltl H, I II 1 till! ! (ull I'f, .'rn L 1\ t (, f I h, pll 1 1.. h (I,' Lilli tC I l h II l rlllll'lI ( i nh nil nJ:,l t 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.. ..'_ ! ~ . i ) ~ ~ 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....'_ '. " ',I ;:'I.m. 1 " i- t' " 'e ~ t~ l - , , ., - , f-:' .~ . -, , --< '" ( ~ , ~ " -, " -- - c ,- 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 ,