HomeMy WebLinkAboutminutes.council.19740708Regular Meeting Aspen City Council July 8, 1974
Meeting was called to order by Mayor Stacy Standley at 5:00 p.m., with Councilmembers
James Breasted, Ramona Markalunas, Jenifer Pedersen, Pete DeGregorio, City Attorney
Sandra Stuller and City Manager Dr, Philip Mahoney.
MINUTES
Councilwoman Pedersen moved to approve the minutes of June 17th and 24th as prepared
and distributed by the City Clerk. Seconded by Councilman DeGregorio. All in favor,
motion carried.
ACCOUNTS PAYABLE
Council request copies of the contract with the golf pro be submitted to Councilmembers
Councilwoman Pedersen moved to approve the accounts payable as submitted. Seconded
by Councilman Breasted. All in favor, motion carried.
Councilman Michael Behrendt arrived.
CITIZEN PARTICIPATION
a. - Citizen was present to register his complaint of the Mall Commission and his lall Com.
lack of understanding of the functions and necessity for a Mall Commission.
Stated he felt the Commission was an encumbrance, Council must approve the actions
of the Mall Commission anyway. Some members of the Mall Commission are against the
mall therefore, are opposed to any requests. Suggest Council repeal the ordinance
establishing the commission and the mall co-ordinator become an office under the
administration. Mr. Curt Baar, member of the Mall Commission, stated different
viewpoints are a desirable thing with any board or commission.
b. Mr. Robert Stevens request from Council his permit for construction be tabled ~ldg. Permit
until next spring and during the interium would donate 20 parking spaces to the Extension
City. Property located at the corner of Original and Durant. Also barricades would
have to be in the right-of-way longer than allowed by code.
City Attorney stated the Council does'not have the authority to extend or put a hold
on a building permit. Permission for extension on barricades would come from the
City Engineer.
COUNCILMEMBER COMMENTS
a. - Mayor Standley informed Council of the memorial service for Mr. Bill ~Beyer, past Beyer Memorial
councilmember.
b. - Correspondence was read from Hal Clark, County Building Inspector relating to the ~uto Pollution
lack of enforcement of auto air pollution. Council agreed to meet with Mr. Clark and
Sanitarian James Roark.
c. - Councilwoman Markalunas stated another survey seems to be in process, this time Post Office
by the post office. Post office informed Council there would be door to door delivery Survey
this summer. Ask that the City Manager check into when mail delivery will go into
effect.
d. - City Manager reported on the meeting with Mr. Prosence of the State Highway
Department. Discussed with the State and they offered a contract to the City to Highway Maint.
sweep the bikepath to Difficult; they agreed to participate in the installation of
the antique lights in the amount of 1/3rd of the cost if the City provides the
materials; if the City provides the material they will install iron work on the
two bridges to replace the chain fence that now exists (it was pointed out there are
no funds for the materials); State offered $1,000 per mile per year to the City to
do the maintenance of Highway 82. Street Superintendent stated $1,000 is not enough.
e. Councilman Behrendt reported there is a no parking sign on Mill Street between
St. Signs the alley and Durant on the east side Believe the sign is a left over from the
winter bus stops.
f. - Councilman Behrendt request American Theatre Institute be added to the agenda.
Amer. Theat~ Seconded by Councilman Breasted. All in favor, motion carried.
Institut~
Request of $1300 for the Institute was Submitted. Council request the City Manager
check on the availability of funds and this item be discussed at the next meeting.
g. - Councilman DeGregorio questioned why the number of Councilmembers was not on this
~ouncilmembers agenda. Council request the City Attorney draft the recommendation in ordinance form
for consideration at the next meeting.
h ~ Councilwoman Pedersen request the administration proceed with cleaning of the
Alley Maint. alleys, they are a mess.
i. Councilman Breasted suggested the City council meet with the MAA on August 19th
MAA to discuss their problems, i.e. housing etc., and also their feelings on a performing
arts center.
j. - Councilman Breasted suggested Council pass a resolution commending Henry Stein
Stein, Sculptur for the piece of sculpture placed across from the Bank of Aspen.
k. Councilman Breasted stated he has received complaints in that you cannot see the
St. Signs stop signs at Cooper and Hunter and also Spring and Cooper. City Manager to check out.
1. - Councilman Breasted reported the grass at Herren Park is dieing, additional water-
Herren Park ing required.
PLANNING GRANT, WRIGHT-MCLAUGHLIN
Aspen Metro Mr. John Hopkins was present and submitted memorandum which requests support of the
Grant City Council to obtain a grant thru COG for the Aspen Metro Sanitation District and
Snowmass Water and Sanitation District.
$50,000 has tenatively been awarded for 1974 and 1975, $100,000 for design and $900,000
for construction. Funds will be used for run-off problems; up-grading existing
facilities; sludge problems etc. Request further that someone from the City sit in
on the meetings.
Councilwoman Markalunas moved to resolve that the City Council supports the planning
grant for the Aspen Metro Sanitation District. Seconded by Councilwoman Pedersen.
[ . All in favor, motion carried.
Council authorized Larry Simmons, Economist for the City to attend the meetings.
FIRE DEPARTMENT, FUND REQUEST
Fireworks Mr. Dick Miller of the Fire Department request $100 donation by the City toward the
Funds expense of the fireworks which were held on the 4th of July.
Councilwoman Markalunas moved to approve $100 for the fireworks display. Seconded by
Councilman Behrendt. All in favor, motion carried.~
TIME OUT, INC. STOCK TRANSFER
Time O~t City Clerk reported file is in order with the exception of the $200 hearing fee.
Stock Transfer
Councilman Breasted moved to approve the stock transfer subject to submission of the
$200 hearing fee. Seconded by Councilwoman Pedersen. All in favor, motion carried.
ORDINANCE ~21, SERIES OF 1974
Land Transfer Mayor Standley opened the public hearing.
Tax
Breakdown of transfers of land was submitted by Larry Simmons, Economist including
breakdown of buyers who are City residents, Pitkin County Residents and out of the
county residents. Of all transfers, 4 out of every 5 buyers were not listed as City
residents. Sixteen percent gave their residence as Pitkin County. Two out of every
3 transfers are by non-residents.
Mr. Tony Scheer, representing the Board of Realtors stated this was discussed with the
Mayor and City Manager and the following was discussed as items of concern: (1) is it
equitable - should be a pitkin county wide tax; (2) is the performing arts center
project a ~riority item of the Council; (3) has private funds been investigated for ~
performing arts center. Mr. Scheer stated a motion was made to support the tax, motion
died for a lack of second, therefore, the Board of Realtors opposes the tax.
ii mr. Whitney Miller stated he felt more homework needed to be done as relates to a
civic center and/or performing arts center. Such an endeavor will affect the entire
valley. Feel the County Should be contacted as to their views, do not agree with this
being just a City project.
Mayor Standley pointed out the reason fOr going ahead on this now is because it takes
a vote of the people. The City does not want to proceed further if the citizens do
not want it.
Mr. Hans Gramiger stated he would support the tax if only one project were earmarked
for utilization of the funds.
Question arose as to the City increasing the tax at a later date. City Attorney
reported to increase the tax would require another election.
Mr. Tony Scheer pointed out the majority of the people voting on this issue do Land Transfer
not own property in the community, therefore would nOt be affected by the tax. Tax
County Attorney Leonard Oates stated there are problems in making the County Clerk
and Recorder the enforcement officer. She does not have the authority to act in
this capacity. County would be willing to provide the City with a daily recording
service of all transactions. This could go to the Board of Appeals as a test case
and if they feel that this is a proper function for that office, the Commissioners
would be willing to contract with the City.
City Attorney Stuller suggest Council table second reading of the ordinance and a
change be made relating to enforcement and collection of the tax.
Mr. Fritz Benedict suggest a district be formed rather than the City going into this
project. Perhaps a convention center would be better than a performing arts center.
There being no further comments, Mayor Standley closed the public hearing.
Council discussed restricting and earmarking of the funds as outlined in the
ordinance. Concensus was to leave the ordinance as it stands.
ORDINANCE ~22, SERIES OF 1974
Mayor Standley opened the public hearing. There being no comments, Mayor Standley
closed the public hearing. ~onservation Trus~
Fund
Councilwoman Pedersen moved to read Ordinance #22, Series of 1974 on second reading.
Seconded by Councilman Behrendt. ~11 in favor, motion carried.
ORDINANCE #22, SERIES OF 1974, AN ORDINANCE ESTABLISHING A CONSERVATION TRUST FUND
PURSUANT TO COLORADO HOUSE BILL 1084 AND AUTHORIZING THE DIRECTOR OF FINANCE TO
CERTIFY THE SAME TO THE DEPARTMENT OF REVENUE was read by title by the City Clerk.
Councilwoman Pedersen moved to adopt Ordinance 922, Series of 1974 on second reading.
Seconded by Councilman DeGregorio. Roll call vote - Councilmembers Breasted aye;
Markalunas aye; Pedersen aye; Behrendt aye; DeGregorio aye; Mayor Standley aye.
Motion carried.
ORDINANCE ~23, SERIES OF 1974
Councilwoman Pedersen moved to read Ordinance ~23, Series of 1974 on second reading.
Seconded by Councilman Behrendto Ail in favor, motion carried.
~. Exam. &
ORDINANCE 923, SERIES OF 1974, AN ORDINanCE AMENDING SECTION 7-22 OF THE ASPEN Appeals
MUNICIPAL CODE WHICH AMENDMENT MODIFIES THE QUALIFICATIONS OF APPOINTEES TO THE
BOARD OF EXAMINERS AND APPEALS SO THAT IN THE EVENT A QUALIFIED ARCHITECT,
ENGINEER, GENERAL CONTRACTOR, MASTER OR JOURNEYMAN PLUMBER, OR MASTER OR JOURNEYMAN
ELECTRICIAN IS NOT AVAILABLE FOR APPOINTMENT, ANY QUALIFIED PRIVATE PERSON MAY
BE APPOINTED BY THE ASPEN CITY COUNCIL IN LIEU THEREOF was read by title by the
City Clerk.
Councilwoman Pedersen moved to adopt Ordinance ~23, Series of 1974 on second reading.
Seconded by Councilman DeGregorioo Roll call vote - Councilmembers DeGregorio aye;
Behrendt aye; Pedersen aye; Markalunas aye; Breasted aye; Mayor Standley aye.
Motion carried.
ORDINANCE #24, SERIES OF 1974
Mayor Standley opened the public hearing, there being no comments, Mayor Standley Woerndle
closed the public hearing.
Mayor Standley reported second reading will be tabled pending annexation of the
area.
GALENA STREET ACCESS CONSIDERATIONS
Assistant Planner John Stanford reviewed with Council the access provided for Galena St.
Obermeyer and the private access to the courthouse and RBH building. Mr. Hal
Clark, County Building Inspector stated the letters of consent have not been gained
from the adjacent property owners. Council agreed to table a decision on this
item until such time as the County submits letters of consent.
POST OFFICE ALTERNATIVES
Post Office
Assistant Planner Stanford reviewed with Council two alternatives - (1) post office
site west of Spring Street immediatly north of Obermeyers, leaving access route
between post office proposed site and Obermeyers; (2) post office site which would
allow Spring Street to go between the post office site and Obermeyers, post office
on the east side of Spring Street extended. Recommend alternate 42 because (a)
would leave more property along the river; (b) better utilization of land adjacent
to the river, i.e. eliminate berm which is shown in alternate #1; (c) efficiency
from the standpoint Spring Street alignment serves as immediate access to the
Courthouse and RBH property.
Councilman Breasted moved to adopt Alternate ~2 alignment as outlined by the Planning
Office. Seconded by Councilwoman Pedersen. All in favor, motion carried.
HANS GRAMIGER REQUEST
Mr. Gramiger stated to Council the land donated to the City by the Ski Corporation
(Lift 41 area) should be put to beneficial use. The gift to the City states the
land be used for park or other municipal purposes. The HPC is saying the area
should remain as it now exists with towers etc.. Photos were shown to Council of
Lift ~1 area what exists. Mr. Gramiger suggest the aHea be landscaped, recreation equipment
be placed there, could have underground parking, tennis courts etc.. Number 3
tower is on Mr. Awery's property. Mr. Gramiger stated he would put in a bid to
salvage the structures that now exist there. Feel recognition should be given
to the Ski Corporation for the gift. Feel the City should proceed with an option
on adjacent land.
Councilman DeGregorio stated it could be an attractive park, as it exists it is
not attractive.
Member of the Athletic Club stated they have had two sprinklers stolen this summer,
so have had problems with watering the grass. Planters have been installed. Further
stated there are many people who do visit the site and have answered questions
relating to the towers etc.. So far the Club has put $3,000 into the premises,
would like to paint the exterior of the building with the City's permission.
Councilwoman Markalunas stated the plaque that exists now is only an informational
plaque. The City would have to but up something as relates to the gift from the
Ski Corporation. The Historical Society has offered to set up an exhibit up
there but the space is not available. The grass is mowed by the City.
JAKE'S HITCHING POST
Hitching Posts Mr. Robert Sproull was present to request permission to install a hitching post
in the sidewalk right-of-way. Stated this request stems from his employees who
would like to ride their horses to work (5). Two parking spaces would be lost.
Councilman DeGregorio moved to approve the request. Seconded by Councilman
Breasted.
Clean-up was discussed, Mr. Sproull s~ated they would help with the clean-up but
did not want the total responsibility, feel the City should have the responsibility.
City
Attorney Stuller stated there would be three conditions which would have to
be met prior to the City approving an encroachment on public right-of-way. (1)
applicant would be responsible for exclusively maintaining the area; (2) indemnify
the City; (3) provide insurance coverage.
Council pointed out the horses that would be tied there would be those of employees
thus taking away parking spaces of clientele. Also concern was mentioned relating
to horses being tied for four hours at a time, feeding etc.. Council request City
Attorney research as to other requirements that may have to be met under this
request.
Councilmem DeGregorio and Breasted aye; Councilmembers Pedersen, Behrendt, Markatunas
and Mayor Standley nay. Motion not carried.
Councilman Breasted moved to instruct the City Attorney to look into the legality
of hitching posts. Seconded by Councilman DeGregorio. All in favor, motion
carried.
MALL ADMINISTRATOR
Mall Admin. Mall Co-ordinator Rich Wilde informed Council the authorized 20 hours a week is
insufficient. Feel the position requires a 40 hour week.
Councilman Breasted moved to extend the time to 40 hours a week until the 30th of
September. Seconded by Councilwoman Pedersen. All in favor, motion carried.
Plan for extending the mall on Galena Street between Hyman and Cooper was submitted
by Mr. Wilde. Reported the Mall Commission has reviewed the plan but has made no
comments or recommendations to Council. Council request comments etc., be obtained
from the adjacent property owners, comments from James Adams and Police Chief
relating to circulation, consideration of Sinclair station relocation. Mr. Barrel,
Planner, stated the Sinclair Station is a prerequisite for expansion of the malls.
Mentioned also is the drainage problems.
Council concurred to meet with the Mall Commission during one of their meetings
to discuss Council objectives relating to the mall, and expansion thereof.
4TH OF JULY EXPENSE
Watermelons
Manager Mahoney request funds to pay for the watermelons given out free on the
4th of July by the City Council.
Council authorized City Manager to take such funds from the Mall Commission
budget.
MANAGER RESIDENCE
Manager Mahoney request permission of Council to live outside City limits. Manager
Councilwoman Markalunas moved to allow the City Manager to live outside of the Residence
City limits. Seconded by Councilman Breasted. All in favor, motion carried.
PTARMIGAN LEASE
Council agreed to meet on Thursday at 5:00 p.m. for consideration of this item.
TENNIS COURT ESTIMATES
Parks & Recreation Director Armstrong submitted memo outlining the number of Tennis Courts
reservations for the two existing courts: 818 people actually played,
568 requests for reservations which could not be filled. Total revenue todate
from lessons $1,040.00.
Bid from Malott & Peterson-Grundy $25,100.00 for two courts. Council request
the City Manager and City Attorney check as to the availability of funds for
the project~ Recreation Director Armstrong to check on a discount if more
courts were considered.
DOWNZONING PROCEDURES
Mr. Bartel reported the proposed zoning maps are in recommendation form. Code Downzoning
first draft has been given to Council, P & Z has had a rough draft for several
weeks. The summary report for justification of the downzoning is also ready.
Feel direction should be given to the P & Z on this item.
Councilwoman Pedersen moved that the City Council initiate the rezoning as
recommended by the planning Office as incorporated in the proposed maps and
first draft of the proposed code for the City of Aspen and re'enactment of
Chapter 24; further move that the City Council direct the Planning and Zoning
Commission to present to the City Council their recommendations and report
by September 1st and further move the City Attorney draft ordinance extending
Ordinance ~19 to November 1, 1974 and present ordinance for first reading at
the July 22nd Council meeting. Seconded by Councilman Breasted. All in favor
with exception of Councilwoman Markalunas who voted nay. Motion carried.
PETITION TO VACATE NORTH STREET
Councilwolman Pedersen moved to table this petition. Seconded by Councilman ~orth St.
Behrendt. All in favor, motion carried.
't
RESOLUTION ~19, SERIES OF 1974
Councilman DeGregorio moved to read Resolution ~19, Series of 1974. Seconded by License Plates
Councilwoman Pedersen. All in favor, motion carried.
Resolution relating to individualized license plates and encourage legislation
by the State was read in full by the City Clerk. Copy on file in City Clerk's
Office.
Councilman DeGregorio moved to adopt Resolution ~19, Series of 1974. Seconded
by Councilwoman Pedersen. All in favor, motion carried.
RESOLUTION ~20, SERIES OF 1974
City Attorney Stuller read correspondence from Don Piper which he received from
the post office representatives. It was pointed out it is obvious the post office Land Transfer
is not willing to follow the City's land use regulations and other regulations Post Office
of the City. Discussed making the sale contract subject to mail delivery.
Councilman Breasted moved that there be a condition of the sale, condition being
that mail delivery will be provided to all door to door within the City limits
prior to contracting with the post office people for land. Seconded by
Councilwoman Markalunas. All in favor with exception of Councilman Behrendt
who voted nay. Motion carried.
Councilman Breasted moved to read Resolution ~20, Series of 1974. Seconded by
Councilman DeGregorio. All in favor, motion carried.
Resolution calling and scheduling an election for the transfer of land for post
office was read by the City Attorney in full. Copy on file in City Clerk's office.
Councilman Breasted moved to adopt Resolution ~20, Series of 1974. Seconded by
Councilwoman Pedersen. All in favor, motion carried.
ORDINANCE ~27, SERIES OF 1974
Councilwoman Pedersen moved to read Ordinance ~27, Series of 1974 on first reading.
Seconded by Councilman DeGregorio. All in favor, motion carried.
ORDINANCE 927, SERIES OF 1974, AN ORDINANCE ESTABLISHING PROCEDURES FOR LETTING Bidding ProcedUrei
OF CITY CONTRACTS IN EXCESS OF $500.00; CREATING SIMPLIFIED PROCEDURES FOR THOSE
LESS THAN $10,000.00 PROVIDED OPPORTUNITY FOR PROTEST IS GIVEN; LISTING
EXCEPTIONS TO COMPETITIVE BIDDING REQUIREMENTS; PROHIBITING THE SPLITTING OF
PROJECTS TO AVOID THE CONSEQUENCES OF THE ORDINANCE; EXCLUDING PROFESSIONAL
CONTRACTS; PROVIDING FOR THE DISPOSAL OF OBSOLETE CITY PROPERTY; AND DEFINING
"LOWEST RESPONSIBLE BIDDER", was read by title by the City Clerk
Councilman DeGregorio moved to adopt Ordinance #27, Series of 1974 on first
reading. Seconded by Councilwoman Pedersen. Roll call vote - Councilmembers
Breasted aye; Markalunas aye; Pedersen aye; Behrendt aye; DeGregorio aye; Mayor
Standley aye. MotiOn carried.
TWIN LAKES LITIGATION
Twin Lakes
City Attorney Stuller reported to Council they are not willing to accept the
City's condition of 300,000 acre feet - minimum stream flow. It was pointed out
the advantages to the City to fight and litigate are out weighed by the spending
of those funds for preservation of the city's water rights. Suggestion was made
the City support the County in their litigation with Twin Lakes. City Attorney
was instructed to draft a resolution supporting the County ($5,000).
Councilwoman Pedersen moved to continue the meeting to Thursday at 5:00 p.m.
Seconded by Councilman Breasted. All in favor, motion carried.
Meeting adjourned at 8:40 p.m.
~~~lerk
Continued Meeting Aspen City Council July 15, 1974
Meeting reconvened at 5:10 p.m. with Mayor Stacy Standley, Councilmembers Ramona
Markalunas, Jenifer Pedersen, Michael Behrendt, Pete DeGregorio, City Manager
Dr. Philip Mahoney, City Attorney Sandra Stuller and Acting Finance Director
Don Rogers present.
PTARMIGANLEASE
Members present representing the Dan Wiegner Group were Dan Wiegner, Attorney
Charles Stoddard and Realtors Richard Fitzgerald and Gene Mechling.
The City Attorney opened the discussiOns by itemizing those points of objection
by the Wiegner group to the tendered draft of the lease. Two objections are
significant. The first concerns the $150,000 guarantee of expenditure for
improvements. The second concerns the prohibition against transfer of corporate
shares without the prior approval of the City Manager. DiscuSsion first centered
on the improvement requirement.
The relevant section is 6.4 of the lease which requires leasee to, within three
years, expend not less than $150,000 for "alterations, additions, repair,
replacement or structural imrpovements all by way of capital improvements to
the premises." Charles Stoddard, representing Dan Wiegner, requested deletion
of the underlined wording. The City Attorney objected to the deletion unless
it were truly the intent of the Council that repairs, replacements, additions
or alterations, other than in the nature of capital improvement, are to be
included as part of the guaranteed expenditure.
Dan Wiegner felt that expenditure for improvements such as carpeting, painting
(exterior and interior), drapes, equipment and fixtures should be included. The
City Attorney felt that the conservative definition of "capital improvement"
would require that it be limited to physical permanent changes to the structure
such as a change in the bar location, installation of saunas, or replacement of
the heating or electrical system. Dan Wiegner, after discussing the matter
with his architect, felt there was little that would be done in terms of
structural changes. It was his intention to include in the $150,000 requirement
the cost of replacing carpets, wall papering, replacing drapes and room
furniture within the first year of the lease, but not again in th e 2nd and 3rd
years. The needed flexibility in the first year to upgrade the premises warranted
allowing the deduction but he would consider this type of activity after the
first three years as maintenance items.
The City Attorney then noted that under other provisions of the lease the leasee
has full responsibility for furnishing the premises and the cost thereof was to
be construed as so much additional rent. This provision is in conflict with Mr.
Wiegner's interpretation of Section 6.4. Mr. Wiegner agreed with this and made
note his objection to the wording referred to.
Attorney Stoddard stated his position that anything that will be left in the
building whether personal property or an improvement affixed to the premises, e.g.
painting, carpeting, etc., should be considered an improvement under the terms
of the guarantee. The City Attorney reminded the Council that under other pro-
visions of the lease the City, on recovery of the premises before the end of
twenty years, would have to reimburse leasee for the unamortized cost of these
improvements.
Mayor Standley asked Dan Wiegner what improvements would have to be made to the
Ptarmigan in the near future. He responded that a new heating system would
probably be necessary in about 6 or 7 years, the pool will need about $5,000 in
repair, saunas installed at a cost of $1,800, exterior painting at $10,000, and
the balance of the guarantee would be expended on furniture, fixtures, painting,
carpeting, etc.
The majority of the Council agreed to assuem the Wiegner group interpretation of
the requirement and directed the City Attorney to delete the phase "all by way of
capital improvements to the premises" and the reference in the lease that expend-
itures for furnishings shall be deemed so much additional rent.
Section 12.11. Wiegner Group submitted alternate wording which included reasonable
causes to be given as relates to transfer of stock. There concern being that a
future City Manager may arbitrarily say no. Councilmembers stated their concern
of new stockholders taking over majority of the stock without the City being aware
of the new stockholder. Mayor Standley suggest there be no sales of stock allowed
until all improvements have been made. City Attorney stated her concern that if
the causes are listed, this restricts the City, also the problem of anticipating
what the causes might be over a 20 year Period.
Wiegner suggested the causes be listed and also provide for arbitration. City
replied appeal with Council always exists if a decision by the City Manager is not
satisfactory. Wiegner further suggest the paragraph remain as it stands in effect
for four years and thereafter reasonable causes and arbitration come into effect.
Don Rogers stated the Council will be losing control after the fourth year.
Arbitration is looked at by the courts only in an economic vain. One cause mentioned
by Council was that they did not want any type of chain operation.
Attorney Stoddard stated the Council's concern seems to be that at this point the
City is dealing with Dan Wiegner and the City wants to make sure that does not
change. Stockholders should have the right to change their stock without alot of
hassle. Council suggest the City have the right of first refusal when stock becomes
available. Mr. Wiegner stated there are 50 shares of stock. List of stockholders
was submitted. This proposal was objected to as being not legally possible.
Councilwoman Markalunas pointed out Mr. Wiegner seems to be the center of dis-
cussion, he will be only the manager, not a stockholder. There is no guarantee
Mr. Wiegner will remain with the corporation. Manager Mahoney stated the manager
could be a bigger problem than the stockholders.
Manager Mahoney questioned Mr. Gene Mechling if he had any claim on the corporation.
Mr..Wiegner pointed out Mr. Mechling is an incorporator, Fitzgerald Real Estate
does have a claim which will be negotiated once the lease is signed. Mahoney
questioned Wiegner Group as to what claims there will be against the corporation
once the lease is signed. Attorney Stoddard stated he is an incorporator and
charging for his fees on an hourly basis.
Councilwoman Markalunas moved that Section 12.11 be amended to read as folloQs:
"The first foUr years shall remain as contract now exists, if at anytime after the
fourth year during the term of this lease or renewals thereof, any corporate share
shall be transferred by sale, assignment, bequest or inheritance (other than to
spouses and children), operation of law or other disposition, without the prior
written consent of the City Manager, which consent maybe withheld for the following
reasons, (to be inserted by the City Attorney), but which reasons shall not be
exclusive, leasor may terminate this lease by giving the notice otherwise herein
required to declare a breach of this lease. If consent is withheld, on request
the City Manager shall make known his reasons for denial of consent, and such
denial may be appealed to City Council. Seconded by Councilman DeGregorio. All in
favor except for Councilwoman Pedersen who voted nay. Motion carried.
Section 1.2 It was agreed the words tennis courts be striken from Section 1.2
so that guests of the lodge would not be allowed to play 'for free or at reduced
rates on City tennis courts.
Section 3.6 Councilman Behrendt moved to direct City Attorney to redraft the
section to read, "except for another lodge or restaurant operation. Seconded by
CouncilmanDeGregorio.
Parks & Recreation Director Armstrong stated his concern that the City may want to
keep restaurant and bar open for City recreation facilities in that area. It was
stated sandwichs would not be considered as a full restaurant operation.
All in favor except for Councilwoman Pedersen who voted nay. Motion carried.
Section 7.6 Discussed a time limit on restoration by the City under the insurance
provision, It was agreed committment to rebuild or actual restoration would be
made within 18 months. Also rent insurance would be over an 18 month period on
the minimum. Suggestion was made that the section also include the wording, "barring
acts of god".
Section 3.5 - Councilwoman Pedersen stated the wording in the first draft shoDld be
included, "as required to be kept in repair by this lease". Section rela~es to the
state of the property upon its return to the City when lease expires. All parties
agreed to this insertion.
Manager Mahoney questioned who would be signing for the corporation. Wiegner reported
Graham Loving would be signing as President and Ludwig Cserhat as Secretary.
Question was raised by the City as to who has authority to act as agent for the
corporation. It was reported Attorney Stoddard. City Manager questioned if any
promises have been made to the stock holders except for divident claims. Answer
was no. Leasee also stated there would be no complimentary rooms except the two
rooms for employees already agreed upon in the contract. City Attorney was directed
to amend the lease to provide for no complimentary rooms without permission from
the City Manager. City Manager questioned if there were anyone who will or has a
claim against the corporation who will be signing the lease other than Fitzgerald
Real Estate, Stoddard and list of stockholders as submitted. Answer was not that they
knew of.
1599
Continued Meeting Aspen City Council July 15, 1974
It was reported the officers have been selected but the organizational meeting
has not been held.
Councilman Behrendt moved to approve the lease as amended. Seconded by Council-
woman Markalunas. All in favor, except for Councilwoman Pedersen who voted nay.
Motion carried.
Councilman Behrendt moved to adjourn at 7:20 p.m., seconded by Councilman DeGregorio
All in favor, meeting adjourned.
~/~orraine Graves, City Clerk