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HomeMy WebLinkAboutLanduse Case.EX.101 W Main St.59-80 ..---.... _""_~"""',_".._.,__~w_ MEMORANDUM TO: Jim Reents, Housing Director Dan McArthur, City Engineer City Attorney FROM: Sunny Vann, Planning Office RE: Aspen Ski Lodge Subdivision Exception DATE: October 27, 1980 The attached application, submitted by JPW Partners and the Aspen Ski Lodge Associates, requests subdivision exception for the purpose of condominiumi- zation for the Aspen Ski Lodge, located on Main Street. This item is scheduled to come before the Aspen Planning and Zoning Commission on November 18, 1980; therefore, may I please have your written comments regarding this application no later than November 7, 1980? Thank you. . ~' . f\L TA ,"wner's "'olicy - Form B -- Amended 10"17-70 . ,-,-~"._~,~",,,,~~ -,,"..".~.....~~,,,",---~"~, -...., ~~~.,,--~..~-a.j) ~~+<;..A-:'",~""".<;"~.~+""".P ~.:> ~ ~.~.........~.V~ ~ ~>...\-.v.../~ . - - - - .?g~'l- - - __.~~~c - .~.- - - - 1!<t._)'N-- ~~",,~ ",' ','W,,' ~:~ ~;) ~i:;t;J if$ ~J(f,;~, 1"9i ~~,:;~,' ~~ :() f~ ?I ~iI }I;+~ .' -.,.,.~ . ~~I;"': ~/ I '~ ~ ..\ ;~t, '.'. :mJ r~ ~~ "titl t~.!~ ~in;) ',,';:;i ~' ;',A>1.' &'f'll,~ ....."t. <.. "'.. 0' .-.;j ..." , ~:: i o. , <, . ~"'J ~I:" ,~ t ~'m :t@ ~~ ~~~':"',' "+'1'.,' '~ ~;;(,"~' ~~ 4 d' ..". j t. " ~\=. <;-:; '.~ ~! ' '4-'t.,j ~i _ .- . ~.~- ;;{ I ., e". ~ ~l'u\ :~. .\1:, ~. I " ,I ,; . I (f--:z.~ '~.::c.itil '..\:;l~.. . ,~ ---- ~'" ''''-~ t' ':.::~ !ii__:__ . ~:,,-v,,-' \ r The following matters are expressly excluded from the coverage of this policy: ( . ~ 1. Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) restricting or regulating or i,,', ly<~ prohibiting the occupancy, use or enjoyment of the land, or regulating the character, dimensions or location of any improvement now or ~. ..~ hereafter erected on the land, or prohibiting a separation in ownership or a reduction in the dimensions or area of the land, or the e~fect t~ ti:.., of any violation of any such law, ordinance or governmental regulation. ~t.' .~. 2. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the public ;:; . ~. records at Date of Policy. ~. ,> , 3. Defects, liens. encumbrances, adverse claims. or other matters la) created, suffered. assumed or agreed to by the insured claimant, (b) not ti known to the Company and not shown by the public records but known to the insured claimant either at Date of Polley or at the date t t such claimant acquired an estate or interest insured by this policy and not disclosed in writing by the insured claimant to the Company 1,= ~:',... prior to the date such insured claimant became an insured hereunder; Icl resulting in no loss or damage to the insured claimant; (d) _'~ attaching or created subsequent to Date of Policy; or Ie) resulting in loss or damage which would not have been sustained if the insured,~ l~;~ claimant had paid value for the estate or interest insured by this policy. f ':fi: .::~ ~~",. --- ~ '-""'"-- '!~ P.A:> ,.~ ~,.....:> ~.~~ '~ p~~.~.~".~ ~.~, ~ "._ ':"IL':~"~ _t?.:.-.,;. .,.""..... - -.._>~>= ~....'"-=-'"" POLICY OF TITLE INSURANCE ISSUED BY s"'rEWART TITLE GUARANTY COMPANY SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS CONTAINED IN SCHEDULE BAND THE PROVISIONS OF THE CONDITIONS AND STIPULATIONS HEREOF, STEWART TITLE GUARANTY COMPANY, a corporation of Galveston, Texas, herein called the Company, insures, 3S of Date of Policy shown in Schedule A, against loss or damage, not exceeding the amount of insurance stated in Schedule A, and costs, attorneys' fees and expenses which the Company may become obligated to pay hereunder, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested otherwise than as stated therein; 2. Any defect in or lien or encumbrance on such title; 3. 4. Lack of a right of access to and from the land; or Unmarketability of such title IN WITNESS WHEREOF, Stewart Title Guarantv Company has caused this poticV to be signed and sealed by its duly authorized officers as of Date of Policy shown in Schedule A. STK\VAR'l' 'l'I'l'LE 11/IIIfIN//N,-"" \111111 ,lE G "".........,;. ~\\! "\:.........~4~~~ It;:-.,' ~*~ ....<1. '\;v ~~:' c-~RPDR-f "~%'~ s:~ _*_ ~:-<~..:. ~~. 1 9 0 8 i.., r ;'" ..-. ..{ '~l' j:......~ l' ~:;IIJ~llrJJ\.' GUARANTY COMPANY ~~ 'hc~ Chairman of the Board e!~/$~ Countersigned: President EXCLUSIONS FROM COVERAGE ~,,"O;;:'~ ~ Page 1 of 0 Policy Serial No. 3?2905 =-~~ 4~- ~' ., .' " ~;, '11 , , ~" . (" f ~ . 1. DEFINITION OF TERMS , ,.CONDITIONS AND STIPULATIONS The following terms when used in this policy mean: (a) "insured": th~ insured named in Schedu'le A, and, subject to any rights or defenses the Company may have against the named insured, those who succeed to the interest of such insured by operation of law as distinguished from purchase including, but not limited to, heirs, dis- tributees, devisees, survivors, personal representatives, next of kin, or corporate or fiduciary successors. (b) "insured claimant": an insured claiming loss or damage hereunder. (c) "knowledge": actual knowledge, not constructive knowledge or notice which may be imputed to an insured by reason of any public records. (d) "land", the land described, specifically or by reference in Schedule A, and improvements affixed thereto which by law constitute real property; provided, however, the term "land" does not include any property beyond the lines of the area specifically described or referred to in Schedu Ie A, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (el "mortgage": mortgage, deed of trust, trust deed, or other security instrument. (f) "public records": those records which by law impart constructive notice of matters relating to said land, 2. CONTINUATION OF INSURANCE AFTER CON- VEYANCE OF TITLE The coverage of this policy shall continue in force as of Date of Policy in favor of an insured so long as such insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from such insured, or so long as such insured shall have liability by reason of covenants of warranty made bv such insured in any transfer or conveyance of such estate or interest; provided, however, this policy shall not continue in force in favor of any purchaser from such insured of either said estate or interest or the indebtedness secured by a purchase money mortgage given to such insured. 3. DEFENSE AND PROSECUTION OF ACTIONS- NOTICE OF CLAIM TO BE GIVEN BY AN INSURED CLAIMANT (a) The Company, at its own cost and without undue delay, shall provide for the defense of an insured in all litigation consisting of actions or proceedings commenced against such insured, or a defense interposed against an insured in an action to enforce a contract for a sale of its estate or i"nterest in said land, to the extent that such litigation is founded upon an alleged defect, lien, encumbrance, or other matter insured against by this policy. (b) The insured shall notifv the Company promptly in writing (i) in case any action or proceeding is begun or defense is interposed as set forth in (a) above, (ii) in case knowledge shalt come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or interest as insured, and which might cause loss or damage for ,,,,hich the Company may be liable by virtue of this policy or, (iii) if title to the estate or interest, as insured, is rejected as unmarketable. If such prompt notice shall not be given to the Company, then as to such insured all liability of the Company shall cease and terminate in regard to the matter or matters for which such prompt notice is required; provided, however, that failure to notify shall in no case prejudice the rights of any such insUfed under this policy unless the Company shall be prejudiced by such failure and then only to the extent of such prejudice. (c) The Company shall have the right at its own cost tc institute and without undue delay prosecute any action 01 proceeding or to do any other act which in its opinion ma\, be necessary or desirable to establish the title to the estate or interest as insured, and the Company may take any appropriate action under the terms of this policy, whether or not it shall be liable thereunder, and shall not thereby concede liability or waive any provision of this policy. (d) Whenever the Company shall have brought any action or interposed a defense as required or permitted by the provisions of this policy, the Company may pursue any such litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (e) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, the insured hereunder shall secure to the Company the right to so .prosecute or provide defense in such action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of such insu red for such pu rpose. Whenever requested by the Company, such insured shall give the Company all reasonable aid in any such action or proceeding, in effecting settlement, securing evidence, obtaining witnesses, or pros- ecuting or defending such action or proceeding, and the Company shall reimburse such insured for any expense so incurred. 4. NOTICE OF LOSS - LIMITATION OF ACTION In addition to the notices required under paragraph 3(b) of these Conditions and Stipulations, a statement in writing of any loss or damage for which it is claimed the Company is liable under this policy shall be furnished to the Company within 90 days after such loss or damage shall have been determined and no right of action shall accrue to an insured claimant until 30 days after such statement shall have been furnished. Failure to furnish such statement of loss or damage shall terminate any liability of the Company under this policy as to such loss or damage. 5. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS The Company shall have the option to payor otherwise settle for or in the name of an insured claimant any claim insured against or to terminate all 1i2bility and obligations of the Company hereunder by paying or tendering payment of the amount of insurance under this policy together with any costs, attorneys' fees and expenses incurred up to the time of such payment or tender of payment, by the insured claimant and authorized by the Company. ,..1 (continued and concluded on last page of this policy) " ,,. . .. #'~. AL TA OW~ER'S POLICY - Amend~{O!l7/70 SCHEDULE A Order No.: 8374 Policy No.: 0 322905 Date of Policy: JAt~ARY 8, 1979 AT 8:00 A.M. Amount of Insurance: $ 850,000.00 1. Name of Insured: J. P. W., A COLORADO GENERAL PARTNERSHIP 2. The estate or interest in the land'described herein and which is covered by this policy is: IN FEE SIMPLE 3. The estate or interest referred to herein is at Date of Policy vested in: J. P. W., A COLORADO GENERAL PARTNERSHIP 4. The land referred to in this policy is described as follows: Lots E, F, G, H and I, Block 59, CITY AND TOWNSITE OF ASPEN, County of Pitkin, State of Colorado. Page 2 ~'1'E",AHT TITLE (;CARA.~TY CO~I'\'\ r"r I ' SCHEDULE B Order 1'0. 8374 Policy No.: 0 322905 This policy does not insure against loss or damage by reason of the following: 1 Rights or claims of parties in possession not shown by the public records. "} Easements, or claims of easements, not shown by the public records. 3. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, and any facts which 3 correct survey and inspection of the premises would disclose and which are not shown by the public records. 4. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. . 5.Taxes for the year 1978 and thereafter, and any special assessment or charges not yet certified to the office of the County Treasurer. 6.Any tax, assessment, fees or charges by reason of the inclusion of subject property in Aspen Fire Protection District, Aspen Sanitation District, Aspen Street Improve- ment District and the City of Aspen. 7.Terms, conditions, restrictions and obligations as set forth in instrument assigning subject property Historic Designation, recorded December 9, 1976 in Book 321 at page 51. 8.Deed of Trust from Smuggler Lodge Inc., to the Public Trustee of Pitkin County for the use of Lime1ite, Inc., to secure $275,000.00 dated October 15, 1973 and recorded October 16, 1973 in Book 280 at page 509. 9.Security interest under the Uniform Commercial Code affecting the subject property, notice of which is given by Financing Statement from Smuggler Lodge, Inc., debtor to Lime1ite, Inc., Secured party, filed October 16, 1973, as Filing No. 02442. ~o.Deed of Trust from J. P. W., a Colorado corporation, to the Public Trustee of Pitkin County for the use of Smuggler Lodge, Inc., a Colorado corporation, to secure $361,449.00 dated December 14, 1978 recorded December 19, 1978 in Book 360 at page 219. Page 3 STB,\\TART TITLE GUARANTY COMPANY 1"""" -, "",.... ... "..u.....f1U~ efllU cuncluoeo Trom reverse side at Policy Face} 6. DETERMINATION AND PAYMENT OF LOSS (a) The liability of the Company under this policy s.'1all in no case exceed the least of: . (i) the actual loss of the insured claimant; or (iit the amount of insurance stated in Schedule A. (b) The Company will pay, in addition to any loss insured, against by this policy. all costs imposed upon an in!>lIred in litigation carried on by the Company for such inwred, and all costs, attorneys' fees and expenses in litigation carried on by such insured with the written au thorization of the Company. ee) When liability has been definitely fixed in accord- ance with the conditions of this policy, the loss or damage shall be payable within 30 days thereafter. 7. LIMITATION OF LIABILITY No claim shall arise or be maintainable under this policy (al if the Company, after having received notice of an alleged defect, lien or encumbrance insured against hereunder, by I itigation or othe(wise, removes such defect, lienor encumbrance or establishes the title, as insured, within a reasonable time after receipt of such notice; {b} in the event of litigation until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title, as insured, as provided in paragraph 3 hereof; or (c) for liability voluntarily assumed by an insured in settling any claim or suit without prior written consent of the Com- pany. 8. REDUCTION OF LIABILITY All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of the insurance pro tanto. No payment shall be made without producing this policy for endorsement of such payment unless the policy be lost or destroyed, in which case proof of such loss or destruction shall be furnished to the satisfaction of the Company. 9. LIABILITY NONCUMULATIVE It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring either (a) a mortgage shown or referred to in Schedule B hereof which is a lien on the estate or interest covered by this policy, or (b) a mortgage hereafter executed by an insured which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this pOlicy. The Company shall have the option to c,pply to the payment of any such mortgages any amount that otherwise would be payable hereu nder to the insured owner of the estate or interest covered by this policy and the amount so paid shall be deemed a payment under this policy to said insured owner. 10. APPORTIONMENT If the land described in Schedule A consists of two or more parcels which are not used as a single site, and a loss is established affecting one or more of said parcels but not alt, the loss shall be computed and settled on a pro rata basis as Valid Only If Schedules A and B are Attached. if the amount of insurance under this policy was divided pro rata as to the value on Date of Policy of each separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy, unless a liability or value haS otherwise been agreed upon as to each such parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement herein or by an endorsement attached hereto. 11. SUBROGATION UPON PAYMENT OR SETTLE- MENT Whenever the Company shall have settled a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Companv shall be subrogated to and be entitled to ell rights and remedies which such insured claimant would have had against any person or property in respect to such claim had this policy not been issued, and if requ"ested by the Company, such insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect such right of subrogation and shall permit the Company to use the name of such insured claimant in any transaction or litigation involving such rights or remedies, If the payment does not cover the loss of such insured claimant, the Company shall be subrogated to such rights and remedies in the proportion which said payment bears to the amount of said loss. If loss should result from any act of such insured claimant such act shalt not void this policy, but the Company, i~ that event, shall be required to pay only that part of any losses insured against hereunder which shall exceed the amount if any. lost to the Company by reason of the impairment'of the right of subrogation. 12. LIABILITY LIMITED TO THIS POLICY This instrument together with all endorsements and other instruments, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company. Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the title to the estate or interest covered hereby or any action asserting such claim, shall be restricted to the provisions and conditions and stipulations of this policy. No amendment of or endorsement to this policy can be made except by writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company, 13. NOTICES, WHERE SENT All notices required to be given the Company and any statement in writing required to be furnished the Company shall be addressed to it at its main office, P. O. Box 2029, Houston, Texas 77001. 14. The premium specified in Schedule A is the entire charge for acceptance of risk. It includes charges for title search and examination jf same is customary or required to be shown in the state in which the policy is issued. STE'\\'ART TITLE GUARA:'IJTY COMPAXY PEN 130 s MEMORANDUM TO: Jolene Vrchota, Planning Office $5 FROM: Fritz Bruggemeier, Engineering Department RE: Aspen Ski Lodge Subdivision Exception DATE: November 7, 1980 After reviewing the site plan and construction plans submitted by the Aspen Ski Lodge for Subdivision Exception, the Engineering Department finds the site plan missing a designated area for trash collection and removal. The plan is also missing identification of the zoning district in which the structure is located. The Engineering Department feels these items should be included on the site plan. December 3, 1980 To: Aspen City Council From: Perry Harvey Re: provision for two pillows of employee housing until April 15, 1981. Ladies and Gentlemen: As you are aware the Aspen Ski Lodge is requesting Condo- miniumization approval under Ordinance 14 (Series of 1980). As a requirement of the Ordinance, the Lodge must provide two pillows of employee housing. We agree to deed re- strict Unit #10 of the Ski Lodge for employee use. Due to timing of the Application, Unit 10 has been rented for this winter season. In coordination with Jim Reents the Ski Lodge has entered into an agreement to subsidize the rent of two of the Lodge employees to the amount o~$200 monthly for each. These payments shall be made to the employees directly. In the event the employees are fired or voluntarily quit, the subsidy shall be paid to a different employee at the discretion of the management of the Lodge. This agreement shall remain in force until April 15, 1981. Perry Harvey PH:rb cc: Sunny Vann Jim Reents , ~ _. ,<'"' tJ~" fA' ;~., : .- ~ ;' , '.I ' <,' _.~41 ) -- LAW OFFICES OATES, AUSTIN, MCGRATH & ..JORDAN 600 EAST HOPKINS AVENUE LEONARO M. OATES RONALD D. AUSTIN ..I. NICHOLAS MCGRATH, ,JR. WIl..LIAM R. JORDAN ill ROBERT W. HUGHES ASPEN. COLORADO 81611 December 2, 1980 AREA CODE 303 TELEPHONE 925-2600 RICHARD A. I<NEZEVICH DEBORAH QUINN The Honorable Herman Edel and Aspen City council Members 130 S. Galena street Aspen, CO 81611 Re: Condominiumization of The Aspen Ski Lodge Ladies and Gentlemen: As you know by your package with respect to the Aspen Ski Lodge condominiumization, the Planning and zoning Commission unanimously approved the application for subdivision exception on November 18, 1980, subject to two conditions. Those conditions are: 1. That a trash collection area be designated on the site pursuant to recommendation of the Engineering Department; 2. The obtaining of two pillows of employee housing off-site for this winter season, inasmuch as the rooms have been re- served and rented for this winter. With respect to trash collection the Applicant is working with the City Engineering Department and an application has been made for an encroachment agreement with the City allowing the trash receptacle to remain where it has always been, subject to the right of the city to require it to be moved onto the site. The Applicant has agreed to enclose the receptacle. With respect to the employee housing requirement, the Applicant has been working with Jim Reents for an alternative method of supply- ing two pillows of employee housing during this winter season. The Applicant has agreed and the condominium plat will designate a deed restricted unit for future employee housing. The solution that has been arrived at and that we request the Council to approve, is that the Applicant be allowed to subsidize the rent of two existing employees of the Aspen Ski Lodge (see the letter in your package). This would seem to be a most practical way to provide the employee housing during this winter season and following this winter on-site employee housing of two pillows will be provided. ..-', .....' OATES, AUSTIN, MCGRATH a JORDAN December 2, 1980 Page Two As we believe is clear, The Aspen Ski Lodge represents the very essence of the Lodge Condominium Conversion Ordinance and we urge your approval. Sincerely, OATES, AUSTIN, McGRATH & JORDAN By~Id~- Attorneys for Applicant RDA:js YnI"1; i \ II ~ /00 ,-: A~~ S~ ~G7 ~t(J- tu~- /c.?'>V,,/o~~~~ '2. p;//~ _ J ' (T 1~ 0<<--' ......,.. ' _ i\ ~ c~~-f DL .__ L)~ 2ft,'fe. ~ 8-/0 f"'-- (YUi+ B-3) ~ 1)e7~~.J;//l~ #/0 ~'~ - t~ ~~~Jh"5 5c'~- Y/L~'k r/!~ yiV:- "~L ~;.4 jdJl-- - ~(D.J.;,,-, (I) 1/1.tJ.-vL - <<.1;z". >."ee>-. - CL--~,( c~ /1- f f {'0....e. <0 r./ b Lx ~ fo-.- c: ~o {" C:">-c{,.' 7\........-..1 M..- ; (I ) -fy~ C1-)0d~~J' ,1,'5f., ~~~ ( ,) ~~Cr' >, O~ +t~,'fF" ~ ~ ,W + --fI.... "-fl' ~ r ~ rf (f-U-'''1l' S 'A-1f "k *-, """" ...... " RECORD OF PROCEEDINGS 100 Leaves __..!..:.:"':.'-'_.5~__'.'~~:'."~'..~:..!'.:...~:~-----_.---------_.--'-'-__~ .-"-- _u_.____._. - - __..___._____....._ .__._"____n__... ---~------"---------------,..~---..---.-- --.---. -_._-~_..- -g;;ec-:Ca-.c-r:feetlng----Aspen-noard'of -i\dJu~}?:'1int Apr i ITa,-19;79--- The Aspen Board of Adjustment held a special mc,eting on April 10, 1979, at 3: 00 PM in the City Council Chambers. !1embcrs present ,~ere Remo Lavagnino, Charles Paterson, Fred Smith and Josephine Mann: Also present were Ci~y Building Inspector Clayton Heyring, City Attorney Ronald Stock and City Planning Director Karen Smith. Case No. 79-3, Russell pielstick 7~/ifler toJ6e. This case was tabled from April 5, 1979. Lavagnino read the case. Application is made for a building permit to remodel an existir.g nonconforming lodge. The proposed remodeling will exceed 10% of the current replacement cost of the nonconforming structure. Section 24-12.5(a) of the Zonin'g Ordinance permits ordinary repair and maintenance on a nonconforming structure containing a nonconforming use provided the repair and maintenance does not exceed 10% of the current replacement costs of the nonconforming structure in any period of twelve (12) consecutive months. Lavagnino noted a letter from Russell Pielstick explaining the case. Pielstick asked if they could delay the meeting for the fifth member. Lavagnino said yes, they would continue with the hearing but delay the decision until the fifth member could be present. ' Pielstick explained the series of meetings with the Building Inspector, the Planning Director, the City Attor- ne~ and other city staff to discuss the remodeling of the Smuggler Lodge. He noted that the building predates both ,the building code and the zoning code of Aspen. He noted a letter from the City Attorney dated Harch 28 that states that this application does not fall under Section 24-12.5 since they are not doing repair and maintenance, they are remodeling. He noted that the stair problem must be dealt with by the Board of Appeals since they are nonconforming. He also noted that two rooms have a nonconforming ceiling height that will also be resolved by the Board of Appeals. City Attorney Ronald Stock.noted that he interpreted the application on the basis of the information submitted from the applicant stating that this is for repair of the lodge. He noted that if this application falls under Section 24-12.4 instead of 24-12.5, they will need to renotice the adjacent property owners. He felt the Board needed to determine whether this is "repair" or llremodel".. The meeting recessed into an informal conference. Stock felt he needed more time to research the case but did not feel this fell under 24-12.5. He also noted that the Board djd not have to take his opinion and could continue with the case as submitted. City Planner Karen Smith stated that if the Board finds that this falls "nde Section 24-12.5, she would argue against the granting of a variance since she feels it would undermine the intent of the nonconforming use and structure section. She felt they wish to remodel, not repair. She noted that the planning Office's initial proposal was to zone the existing lodges to lodge but Council felt it WdS sp0L- zoning. 'I'he Office zoning was proposed too maintain the single farnily residential appearance with a mix of urb"tn . "'...... "... -2- April 10, 1979 Spec.ial !1ceting Aspen Boa.rd,~)~clj us t_n1.ent uses including lodges. She felt it more appropriate for Council to reconsider its nonconforming use provisions. David Jones, owner of the lodge, noted that he also owns the Molly Gibson lodge. He has alot of pride in Aspl'n and his lodges. He noted that the Smuggler lodge has a bad reputation in town and with the tourists. He said it is in need of repair and remodel and he wishes to rename it the Aspen Ski Lodge. He felt to deny him to take 33 rooms and reduce it to 32 rooms, reduc.e the beds from 112 to 70, too paint the walls and generally renovate the building would be shameful. He noted that his lodge was as full as any other lodge in Aspen this winter. The lodge is not decaying but'needs repair. Pielstick asked that they continue with the consideration of this variance as it was submitted and if it is found that they need to resubmit an application because they do not fall under that section, they will renotify and rehear the case. He submitted that the part of this application that makes it a special condition and cir- cumstance is that they must comply with the UEC, the UPC, the Housing Code, the City Thermal Code, the Uniform Mechanical Code and the National Electrical Code outside of the Zoning Code. None of these codes existed when the building was built. He felt it was compliance with these codes that puts them over the 10% maximum. Lavagnino asked Meyring if the applicant must comply with the code in all areas if he goes into the building to upgrade it. Meyring said that the present wiring, ete may stay as is if it is not unsafe. If they exceed 50% of the value of the existing structure for repairs, then. they must bring the whole building up to code. Lavagnino asked if the applicant could do the necessary repairs without going over the maximum and stay within the ordinance. pielstick stated that they have elected to bring it up to code. They could do it in 27 months by staying within the 12 month provision. If they just did what would be allowable within the code, they would not exceed the maximum. Stock felt there are three levels of construction that they wish to complete. The first is things such as replacing the carpeting which does not require a buildinc permit. The second is bringing certain things up to code, which he was willing to argue are repair. The third level is remodeling the exterior, changing interiol walls and items that are not necessary to bring the building up to code. F. Smith felt that the proper way to resolve this issue is to have the Council change the code to allow existing lodges to substantially upgrade their buildings. Jones noted that the Nugget was recently painted and remodeled inside. Paterson noted that they did not need a buildin< permit for this and they did not move any interior walls, Paterson felt this is a physical hardship since the building was built in 1954 bef~re the codes were written He noted that they are not adding anything, in fact they are losing a few units to make the building more functional and up to code. Pielstick noted that if the lodge burned down, they could rebuild it to the 1979 standaids. If they dis- continued the use for nine months, they could use it again as a lodge as long as they began ,wibhin one year. _ for,u :-'---:::-~_~~(.~~~_~::':C~:"-: p,pecial }ieeting John Herz Greg Stein Lary Groen , - - -3-. RECORD OF PROCEEDINGS 100 Leaves ,....."=,~oc,'c.c,~~,1 April 10, 1979 ~ i , ----------- Aspen Board of Adjustment They wish to They wish to windows with replace the 1954 toilets with 1979 toilets. insulate the walls, replace the single pane double pane windows. K. Smith said her interpretation of the nonconforming use section of the code was to prevent improvements to nonconforming uses and structures that would extend or prolong the life of that structure. The incentive was to change to a conforming use. She felt that Council's intent may cOnflict with this since they wish to see lodges preserved. Lavagnino asked for comments from the audience. Herz asked what the question was here. Lavagnino said first they have to determine if this case is under the jurisdiction of the Board of Adjustment, is it repairs or remodeling and whether they have a hardship or practical difficulty which is the only grounds on which the board may grant a variance. Stein felt that if the Building Inspector could state that there are no structural changes, the Board could interpret this as remodel and grant the variance. Stock said there are three sections in the nonconforming use code. One talks about a nonconforming structure, the second talks about a nonconforming use and the third is a nonconforming use and structure. pielstick said they are both a nonconforming use and structure. Groen is a neighbor of the Smuggler Lodge and a member of the Historic Preservation Committee. He said one of the purposes of historic zoning on Main Street was to preserve the historic mix of structures and character of Main Street. He asked that the Board keep this in mind when revie\ving cases of this sort. He felt that the Aspen lodges have been a part of the mix and character of Main Street for many years. He also felt this type of lodge serves an important purpose for the skier since not all can afford a condominium. Lavagnino said they do not wish to tear down the lodge but they are stuck with a written ordinance and guideline~ that they must follow in granting a variance. Lavagnino closed the public portion of the meeting. Smith said he would like to see this lodge remodeled and brought up to acceptable standards but felt it was Council's responsibility to amend the code instead of this board granting a variance. Paterson agreed with Smith but feit they have a hardship. He did not feel they should wait for Council to amend the code as it may be years before they pass the ordinanCE He felt that repair and maintenance should include remodel and reconstruction should be another category. He felt the proposed remodeling is much mo:ce functional and desirable. Mann supported Paterson and felt this is an ide~l time """,, -4- Apri'l 10, 1979 ~eeial ilceting Asnen Board' ofAdj ti,s'tmcn t ~--_.-_..._.-._---_._-~_..~ for the Board of Adjustment to see themselvl's as a body for the, relief of difficulties. She felt there were alot of grey areas with the words they were throwing around and because of the grey areas, she would be willing to grant the variance. She did not understand the reason for a time limit on the repair(lO%/calendar year). She felt the biggest grey area is the word "repair" which they must define. She was willing to grant the variance today with a statement about the confusion created in the wording of the code. Lavagnino agreed that there is a hards'hip but not one that could be resolved by the code. He had difficulty with the word "repair". He also questioned what "ordinary repair" means; where can they draw the line? Lavagnino reopened the meeting. Hughes read the powers of the board and felt they had the power to grant this variance. Jones also felt they had the power to grant the variance and asked them not to wait for Council to amend the section. Lavagnino asked if the"applicant would like the board to table the application until the fifth member is present for the vote. Stock noted that it will take at least 3 months to amend the code with the most favorable conditions. Paterson moved to table the application to April 19, 1979 Mann seconded. All in favor, motion approved. Paterson moved to adjourn the meeting, Mann seconded. All in favor, motion approved. Meeting adjourned at 5:00 PH. ~e Shery e~J Deputy City Clerk . , - - , BR"'UrOl>D J't11.U!JHING CQ., Ur:NVI:R RECORD OF PROCEEDlhlGS poard of l\djus!:ment, Regular Meeting.' April 19, .1979, Ci-ty ~:ounG~.~ Chaiul?ers, 4: 00 P!.'!.,--~~- The Aspen Board of Adjustment held a regular meeting on April 19, 1979, in the city Counci.l Chambers at 4:00 PM. Members present were Remo Lavagnino, Charles Paterson, Josphinc Mann, and Francis Whitaker. St.aff rcpresent_atives were city Building Inspector, Clayton t>1cyring, and city Attorney, Ron Stock. APPROVAL OJ!' MINUTES: Lavagnino fisked the members if all of them have read the minutes from the meetin'Js of February 1, February 6, and February 22. Lavagnino asked for a motion to approve the minutes of February 1 and February 6 meetings. Paterson made a motion to approve the minutes as presented. Ms. Mann seconded. All in favor. The minutes from February 1 and February 6 meetings were approved. Ms. Mann moved to approve the February 22 meeting. Whitaker seconded. All in favor. The mintues from the February 22 meeting y,!cre approved as presented. CASE #79-3 RUSSEL PIELSTICK Lavagnino stated that at their last meeting they had a quorum but, they did not have a fifth member which would have 'Jiven the applicant an advantage. They decided to table until this meeting in which again they do not have a fifth member. Lavagnino stated that the applicant has an option to table again or to continue and bring it to a vote. Whitaker stated that he had heard the tapes from the last meetin'J. Stock stated that at this time the staff is recommending a change from their earlier position. Stock stated that they were willing to grant a variance reason being that they had talked to the attorney and the architect in ~~ that they went over the plans very carefully, step by step. They did this for a reason to see if everything that the applicant would do could be code related. city Environmental Health Officer, Tom Dunlop, was consult,ed ror his opinions. Dunlop felt that it was a 'Jood idea for one of the proposed changes which is the changing of the front office to over look the pool. He felt that it would provide supervision of the pool. Stock stated that with these reasons, under Section 12.5, that the staff would recommend granting the variance. This would mean that the Smug'Jler Ladge could do all their repairs at once instead of 10% of the property value in one year. Stock stated that they could prove the necessary hardship thilt is sufficient. For example, if all of their wiring is not up to code standards, and they are only allowed to do some of their wiring; then the cost factor (which would be 'Jrea~) and the code factor would not be fulfilled. f'lo1- Lavagnino stated that the cost shouluAbe a factor to the board. Lavagnino asked stock what he meant by "code related". stock replied that was either a building code, fire code, or some other code that has been adopted for the public health, welfare and safety by the city. Lavagnino asked Stock what the defination of IIstaff" was. Stock replied that it consisted of the Buildin'J Department and the City Attorney's Office. Whitaker stated that he had listened to the tapes and that it was a very difficult and complex case to consider. lie felt that they have gl:-ounds to grant the variance but he would like to do it on a condition that they v.'rite a recommendation to the City Council like the one that they wrote on the trash area. Since the Planning Office, the Building Department, and t::.he city Attorney are 'dilling to IDuke recommendations, he \olOuId be willing to grant the variance. . , - "- " ; Lavagnino stated t,hat \-lhat v'''a~:; not clear to him was the intent of the lO<ci cu_t:"rent replacement cost limitation. To imply intent as a discouragement for continuance of non-comforminq strucLures and uses, appears to undermine the codes not abating provision. But at this time, Lavagnino stated that he would vote affiknativc. Lavagnino told the applicant t.hat they could continue if they wanted to. Pielst.ick stated that they would like to continue. Lavagnino closed the meeting to the public. Whitaker asked Lavagnino if they could have the City Attorney draw up a motion on the Smuggler Lodge variance request. Paterson read the City Environmental Health Offic~r's memo to the committee on granting the Smuggler Lodge variance. This memo can be located in the City Clerk's Office. Ms. Mann felt that they needed to include that letter in the variance, for health, safety and welfare. Lavagnino opened the meeting to the public. Lavagnino wanted the motion into the record, them they would make any changes. Stock read the proposed motion to the committee. WHEREAS, the applicant has submitted a request for the issuance of a building permit to repair the Smuggler Lodge, and WHEREAS, such repair includes repair and replacement of non-bearing walls, fixtures, wiring, or plumbing to the an extent exceeding 10% of the current replacement costs of the structure, and WHEREAS, Section 24-12.5 of the Code of the City of Aspen Colorado restricts and prohibits repair in excess of 10'6 of the current replacement costs of the structure in expenditure of an amount for repair in any 12 consecutive months, and WHEREAS, the repairs are for the purpose of modifying the structure to conform to current fire, building and other codes adopted by the City of Aspen Colorado and to provide security for the occupants for the lodge and to allow for safety supervision of the use of the swimming pool located on the property, and WHEREAS, the Board of Adjustment of the City of Aspen Colorado, finds that the conditions of Section 2-22 of the Code of the City of Aspen Colorado are satisfied, and WHEREAS, the health, safety and welfare of citizens which would be protected by such repairs create special conditions and circumstances, and the Board finds that such special conditions and circumstances exist and that the conditions to be relieved by said repairs were not caused as a result of the actions of the applicant, and WHEREAS, the granting of a variance is essential to the enjoyment of a substantial property of the applicant, and MIEIlliAS, the granting of the variance will not adversely effect the general purpose of the comprehensive plan, NOW THEREFORE, BE IT RESOLVED by the Board of Adjustment of the City of Aspen Colorado, that a variance is hereby granted from the strict provisions of Section 24-12.5 of the Code of the City of Aspen Colorado, that such the applicant will be allowed to expend in 12 consecutive calendar months an amount exceeding 10% of the current replac~lent costs of the structure for said repairs. Paterson would li.ke to change "for health, safety, and welfare of the citizensll to state "for the health, safety and welfare of the public". He feels that it has nothing to do with the citizens and it is the'public that they are talking about. Paterson moved to approve the motion that Stock modification on the motion. Ms. Mann seconded. The Smuggler Lodge variance was granted. wrote with the All in favor. . ./' , , / / CONDOMINIUM DECLARATION FOR THE ASPEN SKI LODGE CONDOMINIUMS (A Condominium) KNOW ALL MEN BY THESE PRESENTS, THAT: WHEREAS, THE ASPEN SKI LODGE ASSOCIATES, a Colorado Limited Partnership, hereinafter called "Declarant," is the owner of that real property situated in the County of Pitkin, State of Colorado, more fully described in Exhibit A attached hereto and made a part hereof; and WHEREAS, Declarant desires to establish a condominimum project under the Condominium Ownership Act of the State of Colorado; and WHEREAS, there is currently constructed on said real property improvements consisting of separately designated residential condominium units and other improvements; and WHEREAS, Declarant does hereby establish a plan for the ownership in fee simple of the real property estates con- sisting of the area or space contained in each of the air space units in the building improvements and the coownership by the individual and separate owners thereof, as tenants in common, of all of the remaining property hereinafter defined and referred to as the General Common Elements; , WHEREAS, Declarant desires to establish this condominium project as a "Condominiumized Lodge" pursuant to the pro- visions of Ordinance No. 14 (Series of 1980), and specifically Section 20-23 adopted by amendment to Chapter 20 of the Munici- pal Code of the City of Aspen, Colorado, as such Ordinance and Municipal Code are presently constituted. NOW, THEREFORE, Declarant does hereby publish and declare that the following terms, covenants, conditions, easements, restrictions, uses, limitations and obligations shall be deemed to run with the land, shall be a burden and a benefit to Declarant, its successors or assigns, and any person or entity acquiring or owning an interest in the real property and improvements, and their devisees or assigns. :1 :1 ;1 ii 'I :1 1. Definitions. provide otherwise: Unless the context shall expressly 1.1 "Unit" means an individual air space unit which is contained within the unfinished perimeter walls, floors, and ceilings of such unit in the building as shown on the Condo- Ii minium Map to be filed for record, together with all fixtures :1'1 and improvements therein contained but not including any of the structural components of the building, or the general Ii common elements. I I I 1.2 title in interest unit. "Condominium Unit" means the fee simple interest and and to a unit, together with the undivided percentage in the general common elements appurtenant to such t~.~;,,~~...., '~""'rr"--"-"<"~<'<"'-----"'--""'- .._- ,-,,_.... 1.3 "General Common Elements" means and includes all portions of the land described in Exhibit A hereto (except the units), and including the structural components of the build- ings; the balconies and parking spaces; and all other parts of such land and the improvements thereon necessary or convenient to its existence, maintenance and safety, which are normally and reasonably in common use, including the air above such land, all of which shall be owned, as tenants in common, by the owners of the separate units, each owner of a unit having an undivided percentage interest in such general common ele- ments as is provided hereinafter. 1.4 "Limited Common Elements" means those parts of the general common elements which are either limited to or reserved for the exclusive use of the owners of one or more, but less than all, of the condominium units. 1. 5 "Condominium Project" means all of the land and improvements initially and subsequently submitted by this Declaration or any supplements or amendments hereto. 1. 6 "Common Expenses" means and includes expenses for maintenance, repair, operation, management and administration, expenses declared common expenses by the provisions of this Declaration and the By-Laws of the Association , and all sums lawfully assessed against the general common elements by the Board of Managers of the Association. 1.7 "Association of Unit Owners" or "Association" means THE ASPEN SKI LODGE CONDOMINIUM ASSOCIATION, A Nonprofit Colorado corporation, its successors and assigns, the Articles of Incorporation and By-Laws of which shall govern the admin- istration of this condominium property, and the members of which shall be all of the owners of the condominium units. 1.8 "Building" means one of the building improvements containing units as shown on the Map or amendments and supple- ments thereto. 1.9 "Map" or "Supplemental Map" means and includes the engineering survey of the land locating thereon all of the improvements, the floor and elevation plans and any other drawing or diagrammatic plan depicting a part of or all of the improvements and land. 2. Condominium Map. The Map shall depict and show at least the following: The legal description of the land and a survey thereof; the location of the buildings; the floor and elevation plans; the location of the units within the buildings, both horizon- tally and vertically; the thickness of the common walls between or separating the units; the location of any struc- tural components or supporting elements of a unit located within a building; and the building and unit designations. The Map shall contain the certificate of a registered Colorado land surveyor or licensed architect, or both, certi- fying that the Map substantially depicts the location and the horizontal and vertical measurements of the buildings, the units, the unit designations, the dimensions of the units, the elevations of the unfinished floors and ceilings as con- structed, the building number or symbol, and that such Map was prepared subsequent to substantial completion of the improve- ments. Any amendment to the Map shall set forth a like -2- ...... "",... I ,I certificate when appropriate. In interpreting the Map the . existing physical boundaries of each separate unit as con- structed shall be conclusively presumed to be its boundaries. Declarant reserves the right to amend the Map, from time to time, to conform the same according to the actual location of any of the constructed improvements, and to establish, vacate and relocate easements, access road easements and on-site parking areas. 3. Division of Property Into Condominium Units. The real property is hereby divided into the following fee simple estates, each such estate consisting of the separately desig- nated units and the undivided interest in and to the general common elements appurtenant to each unit as is set forth on the attached Exhibit B, which by this reference is made a part hereof. Each such unit shall be identified on the Map by number and building symbol as shown on Exhibit B. 3.1 Declarant reserves the right to themselves, their successors, heirs, personal representatives, and grantees, to: 3.2 Physically combine the space within one unit with the space within one or more adjoining units, and 3.3 Combine a part of or combination of parts of the space within one unit with part or parts of the space within one or more adjoining units, and 3.4 Divide into separate units the space of one unit. 3.5 The aggregate or divided undivided interests in the general common elements resulting from any of the provisions of paragraphs 3.2, 3.3 and 3.4 shall be reflected by an amend- ment to Exhibit B hereof and to the Map, consistent with the I requirements set forth in this Declaration. ,I II , , 3.6 Declarant acknowledges that this Declaration is subject to the provisions and requirements of Ordinance No. 14, Series of 1980, and specifically Section 20-23 adopted by amendment to Chapter 20 of the Municipal Code of the City of Aspen, Colorado, as such Ordinance and Municipal Code are presently constituted. Pursuant to Section 20-23 thereof, the following is made I a part of this Declaration: ,I I' (a) An owner's personal use of his unit shall be restricted to fourteen (14) days or less during the seasonal period of December 18 through March ,20. This seasonal period is hereinafter referred to as "high season". "Owner's personal use" shall be defined as owner occupancy of a unit or nonpaying guest of the owner or taking the unit off the rental market during the seasonal periods referred herein for any reason other than necessary repairs which cannot be postponed or which make the unit unrent- able. Occupancy of a unit by a lodge manager or staff employed by the lodge, however, shall not be restricted by this section. I ,I II I -3- -----T ..._--_.--.,...:..-....~~._._.,,-,....:...__..-......_......._.~_., ..---~....._.......--.."~""'<...,,.~~~....--->--'-.......-"'""'-,..~.....,...,...- ~~......" ,,'''--.. I I I[ (b) A violation of the owner's personal use restriction by a unit owner shall subject the owner to a daily assessment by the condominium association of three (3) times the daily rental rate for the unit, at the time of the violation, which assessment, when paid, shall be deposited in the general funds of the condominium association for use in upgrading and repairing the common elements of the condominium. All sums assessed agains't an owner for violation of the owner's personal use restriction and unpaid shall constitute a lien for the benefit of the condominium associa- tion on that owner's unit, which lien shall be evidenced by written notice placed on record in the office of the clerk and recorder of pitkin County, Colorado, and may be collected by fore- closure on an owner's condominium unit by the association in like manner as a mortgage or deed of trust on real pro- perty. The condominium association's failure to enforce the owner's personal use restriction shall give the City of Aspen the right to enforce the restric- tion by the assessment and the lien provided for hereunder. If the City of Aspen enforces the restriction, the City of Aspen shall receive the funds col- lected as a result of the assessment for the violation. In the event litigation results from the enforcement of the restriction, as part of its reward to the prevailing party, the court shall award such party its court costs together with reasonable attorney's fees incurred. I II II (c) The City of Aspen shall have the right to require from the condominium association an annual report of owner's personal use during high season for all the condominium units. 4. Limited Common Elements. A portion of the general common elements is reserved for the exclusive use of the individual owners of the respective units, and such areas are I, referred to as "limited common elements." The limited common Ii elements so reserved shall be identified on the Map. (Any Ii balcony or balconies which are accessible only from within, il associated only with and which adjoin a single unit shall, 'i without further reference thereto, be used in connection with such unit to the exclusion of the use thereof by the other owners of the general common elements, except by invitation.) All of the owners of condominium units in this condominium project shall have a nonexclusive right in common with all of the other owners to use of sidewalks, pathways, roads and streets located within the entire condominium project, if any. No reference thereto, whether such limited common elements are exclusive or nonexclusive, need be made in any deed, instru- ment of conveyance, or other instrument. -4- ". ~'....- ~. "".. "'-"~'I-- > ..--.......,' ,. .>;.~'"'..-"~_.>....'~_.....,.,........"',~_.""-,..:,~.. .-C~..._,..._.._,."._ .~._.....'_,~...._,_.__..,..._.__._______,~~""',,_......"-.'"'..---"'-........._.:.~..,,'~""'___ _,_ 5. Inseparability of a Condominium Unit. Each unit, the appurtenant undivided interest in the general common elements and the appurtenant limited common elements, shall together comprise one condominium unit, shall be inseparable and may be conveyed, leased, devised or encumbered only as a condominium uni t. 6. Method of Description. Every contract for the sale of a condominium unit and every other instrument affecting title to a condominium unit may describe that condominium unit by the unit number and building designation shown on the Condominium Map appearing in the records of the County Clerk and Recorder of Pitkin County, Colorado, in the following fashion: Condominium Unit , THE ASPEN SKI LODGE CONDOMINIUMS, according to the Condominium Map appearing in the records of the County Clerk amd Recorder of pitkin County, Colorado, in Book , at Page . - - Such description will be construed to describe the unit, together with the appurtenant undivided interest in the common elements, and to incorporate all the rights incident to owner- ship of a condominium unit and all the limitations on such ownership as described in this Declaration and any amendments hereto. 7. Separate Assessment and Taxation Notice to Assessor. Declarant shall give written notice to the Assessor of the County of Pitkin, Colorado, of the creation of condominium ownership in this property, as is provided by law, so that each unit and the undivided interest in the general common elements appurtenant thereto shall be deemed a parcel and subject to separate assessment and taxation. In the event that for a period of time any taxes or assessments are not separately assessed to each unit owner, but are assessed on the property as a whole, then each unit owner shall pay his proportionate share thereof in accordance with his percentage ownership of the general common elements. 8. Ownership Title. A condominium unit may be held and owned by more than one person as joint tenants or as tenants in common, or in any real property tenancy relationship recog- nized under the laws of the State of Colorado. 9. Non-Partitionability of General Common Elements. The general common elements shall be owned in common by all of the owners of the units and shall remain undivided, and no owner shall bring any action for partition or division of the general common elements. 10. The Use of General and Limited Common Elements.Each owner shall be entitled to exclusive ownership and possession of his unit. Each owner may use the general and limited common elements in accordance with the purpose for which they are intended, without hindering or encroaching upon the lawful rights of the other owners, subject to such reasonable rules and regulations as may, from time to time, be established pursuant to the By-Laws of the Association. 11. Use and Occupancy. All condominium units shall be used and occupied solely for lodging and residential purposes by the owner, by the owner's family or the owner's guests and tenants. Leasing and renting of the units for residential purposes shall not be considered a violation of this covenant. -5- '''"'':'':'~'-*''''><"'~''''''''''~''''-'''''''''--''''''''''-'''_''~'"...,~,..."...;,..>...,.,-'>'-"----.;.""---..,~~.,-"".. -~-~._..~._..._--~..'.. .;,.;"._".....,.'"'...-.>._....~.~.~.__~ _...-,~.'"'-.~.........,.."._,...__.~_,..;.._......_-..-....'-"-...-_-..o-..."""' ~ ." -..~ " .~" I I 12. Easements for Encroachments. If any portion of the general common elements encroaches upon a unit or units, a valid easement for the encroachment and for the maintenance of same, so long as it stands, shall and does exist. If any portion of a unit, as shown on the map, encroaches upon the general common elements, or upon an adjoining unit or units, a valid easement for the encroachment and for the maintenance of same, so long as it stands, shall and does exist. In the event that anyone or more of the units or buildings or other improvements comprising part of the general common elements are partially or totally destroyed and are then rebuilt or reconstructed in substantially the same location and as a result of such rebuilding any portion thereof shall encroach as provided in the preceding sentence, a valid easement for such encroachment shall and does exist. Such encroachments and easements shall not be considered or determined to be encumbrances either on the general common elements or on the units. 13. Termination of Mechanic's Lien Rights and Indemni- fication. Subsequent to the completion of the improvements described on the Map, no labor performed or materials furn- ished and incorporated in a unit with the consent or at the request of the unit owner or his agent or his contractor or subcontractor shall be the basis for filing of a lien against the unit of any other unit owner not expressly consenting to or requesting the same, or against the general common ele- ments. Each owner shall indemnify and hold harmless each of the other owners from and against all liability arising from the claim of any lien against the unit of any other owner or against the general common elements for construction performed or for labor, materials, services or other products incor- porated in the owner's unit at such owner's request. The provisions herein contained are subject to the rights of the Managing Agent or Board of Managers of the Association as is set forth in paragraph 16. Notwithstanding the foregoing, any mortgagee of a condominium unit who shall become an owner of a condominium unit pursuant to lawful foreclosure sale or the taking of a deed in lieu of foreclosure shall not be under any obligation to indemnify and hold harmless any other owner against liability for claims arising prior to the date such mortgagee becomes an owner. 14. Administration and Management; Managing Agent. The administration and management of this condominium property shall be governed by the Articles of Incorporation and By-Laws of the Association. An owner of a condominium unit, upon becoming an owner, shall be a member of the Association and shall remain a member for the period of his ownership. The Association shall be initially governed by a Board of Managers as is provided in the By-Laws of the Association. The Associ- ation may delegate by written agreement any of its duties, powers and functions to any person or firm to act as Managing Agent at an agreed compensation; provided however, that no such delegation shall relieve the Association or the Board of Managers of their responsibilities under this Declaration. 15. Certificate of Identity. There shall be recorded from time to time a certificate of identity which shall include the addresses of the persons then comprising the management body (Managers and Officers) together with the identity and address of the Managing Agent. Such certificate shall be conclusive evidence of the information contained therein in favor of any person relying thereon in good faith regardless of the time elapsed since the date thereof. -6- ..{,...:.,'.Af'".:,,"'.-"'".. ,~._.._..~____~'';''N':'''''''._'''''''''~'~''''.--'''''''''''_'"__''-'-.'~~""'","''''.,_~,.....",":.''''''''~C.........,-,.",';';;.. ,........, 16. Reservation for Access for Maintenance, Repair and Emergencies. The owners shall have the irrevocable right, to be exercised by the Managing Agent or Board of Managers of the Association, to have access to each unit from time to time during reasonable hours under the particular circumstances as may be necessary for the maintenance, repair or replacement of any of the general common elements therein or accessible therefrom or for making emergency repairs therein necessary to prevent damage to the general common elements or to another unit or units. Damage to the interior or any part of a unit or units resulting from the maintenance, repair, emergency repair or replacement of any of the common elements or as a result of emergency repairs within another unit at the instance of the Association shall be a common expense of all of the other owners; provided, however, that if such damage is the result of the misuse or negligence of a unit owner, then such owner shall be responsible and liable for all of such damage. All damaged improvements shall be restored to substantially the same condition of such improvements prior to damage. All maintenance, repairs and replacements as to the common ele- ments, whether located inside or outside of units (unless necessitated by the negligence or misuse of a unit owner, in which case such expense shall be charged to such unit owner), shall be the common expense of all of the owners. 17. Owner's Maintenance Responsibility of Unit, Balconies, Parking and Storage Areas. For purposes of maintenance, repair, alteration and remodeling, an owner shall be deemed to own the interior non-supporting walls, the materials (such as, but not limited to, plaster, gypsum dry wall, paneling, wallpaper, paint, wall and floor tile and flooring, but not including the sub-flooring) making up the finished surfaces of the perimeter walls, ceilings and floors within the unit, including the unit doors and windows. The owner shall not be deemed to own lines, pipes, wires, conduits, or systems (which for brevity are herein and hereafter referred to as utilities) running through his unit which serve one or more other units except as a tenant in common with the other owners. Such utilities shall not be disturbed or relocated by an owner without the written consent and approval of the Board of Managers. Such right to repair, alter and remodel is coupled with the obligation to replace any finishing or other materials removed with similar or other types or kinds of materials. An owner shall maintain and keep in repair the interior of his own unit, including the fixtures thereof. All fixtures and equipment installed within the unit commencing at a point where the utilities enter the unit shall be maintained and kept in repair by the owner thereof. An owner shall do no act nor any work that will or may impair the structural soundness or integrity of the building or impair any easement or hereditament without the written consent of the Board of Managers of the Association, after first proving to the satisfaction of the Board of Managers that such structural soundness or integrity , will be maintained during and after any such act or work shall be done or performed. Any expense to the Board of Managers for investigation under this Paragraph 17 shall be borne by the owner. However, nothing herein contained shall be construed to permit structural modification and any decision relating thereto shall be in the absolute discretion of the Board of Managers, including, but not limited to the engaging of a structural engineer at the owner's expense for the purpose of obtaining his opinion. An owner shall also keep the balcony area and patio area, if any, appurtenant to his unit in a clean and sanitary condition and free and clear of snow, ice and any accumulation of water. All other maintenance or -7- -;: ]....~'~...".""'.....~...-'........;........-"-_. '.~ ...,~.'_~"A_.h ~~'~'..~--.,,~,' .~_.'_ _.-..~..-_~""'.......;.___...~....;;~,.,:;,_-'...<.,~:..",-.................;,.-..,.~;~,,,~_''''''''''''''''''~ "'--'-'-"- ...... '.....---' repairs to any limited common elements, except as caused or permitted by the owner shall be at the expense of all of the owners. 18. Compliance With Provisions of Declaration, Articles and By-Laws of the Association. Each owner shall comply strictly with the provisions of this Declaration, the Articles of Incorporation and By-Laws of the Association, and the decisions and resolutions of the Association adopted pursuant thereto as the same may be lawfully amended from time to time. Failure to comply with any of the same shall be grounds for an action to recover sums due, for damages or injunctive relief or both, and for reimbursement of all costs and attorneys' fees incurred in connection therewith, which action shall be maintainable by the Managing Agent or Board of Managers in the name of the Association in behalf of the owners or, in a proper case by an aggrieved owner. 19. Revocation or Amendment to Declaration. This Decla- ration shall not be revoked unless all of the owners and all of the holders of any recorded first mortgage or deed of trust covering or affecting any or all of the condominium units unanimously consent and agree to such revocation by instru- mentIs) duly recorded. This Declaration shall not be amended unless the owners representing an aggregate ownership interest of seventy-five percent (75%), or more, of the general common elements, unless a different percentage for the amendment of a specific provision hereof is herein provided, in which case that provision shall govern, and all of the holders of any recorded first mortgage or deed of trust covering or affecting any or all condominium units consent and agree to such amend- ment by instrument(s) duly recorded; provided, however, that the percentage of the undivided interest in the general common elements appurtenant to each unit, as expressed in this Decla- ration (or in any supplements hereto) shall have a permanent character and shall not be altered, except as a result of expansion of the Project if otherwise permitted herein, in which event the percentage of the undivided interest in the general common elements shall be computed in the same manner as originally computed in this Declaration, and shall be set forth in a Supplemental Declaration without the consent of all of the unit owners expressed in an amended Declaration duly recorded. Nothing contained in this paragraph 19 shall be construed to preclude or in any way limit the right of Declarant to supplement this Declaration and/or the Condo- minium Map if otherwise permitted herein. 20. Additions, Alterations, and Improvements of General ans Limited Common Elements. There shall be no additions, alterations or improvements by the Board of Managers or the Managing Agent of or to the general and limited common ele- ments requiring an expenditure in excess of Five Thousand Dollars ($5000.00) in anyone calendar year without prior approval of a majority of the owners in writing or as reflec- ted in the minutes of a regular or special meeting of the owners. Such limitation shall not be applicable to the replacement, repair, maintenance or obsolescence of any general common element or common property. An individual unit owner shall do no alterations, additions, or improvements (for his individual benefit or for the benefit of his Unit) to the general common elements or the limited common elements without the approval of the Board of Managers or the approval of a majority of the owners in writing or as reflected in the minutes of a regular or special meeting of the owners. In the -8- ~;,'>i4;.~~J.:,.i...~"-....;"';"';"'"''''_'___''' ~__:..~." :::,_,,,,,,,,",,,_.__.~.._..............~,,-,.,. """"~-'-'_:"".''''.'-~' .~... "" .;.,.,.., ,--","--_"".'-',-.'",~,-,,'-,,"-' ...-" ..---.-......~.."-."..,'-........,,,-_....>., ...-..,._...-.:..,;.;..........~,.,~~ , "'",',,'" "-.-~ event that any such approved alterations, additions or improve- ments create encroachments by a Unit upon the common elements or by the common elements upon a Unit, a valid easement for such encroachment and for the maintenance of same, so long as it stands, shall and does exist. The assessments made for common expenses shall be based upon the cash requirements of the Condominium Project as the Managing Agent, or if there is no Managing Agent, then the Board of Managers of the Association shall from time to time determine. The assessments shall provide for the payment of all estimated expenses growing out of or connected with the maintenance, repair, operation, additions, alterations, and improvements of and to the general common elements, which sum may include, but shall not be limited to, expenses of manage- ment; taxes and special assessments until separately assessed; premiums for fire insurance with extended coverage and van- dalism and malicious mischief with endorsements attached issued in the amount of the maximum replacement value of all of the condominium units (including all fixtures; interior walls and partitions; decorated and finished surfaces of , perimeter walls, floors and ceilings; doors, windows and other I elements or materials comprising a part of the units) casualty I and public liability and other insurance premiums; landscaping ,I and care of grounds; snow removal; common electricity, water, II sewer, lighting and heating; repairs and renovations; trash I collections; legal and accounting fees; management and rental fees; expenses and liabilities incurred by the Managing Agent and Board of Managers on behalf of the unit owners under or by I reason of this Declaration and the By-Laws of the Association; for any deficit arising or any deficit remaining from a pre- vious period; the creation of reasonable contingency, reserves, working capital, and sinking funds as well as other costs and expenses relating to the general common elements. The omission or failure of the Board of Managers to fix the The cost of any additions, alterations or improvements to the general and limited common elements undertaken by the Board of Managers shall be assessed as common expenses. Any such additions, alterations or improvements, regardless of by whom undertaken, shall be owned by the unit owners in the same proportion as their ownership interest in existing general and limited common elements and shall not affect any unit owner in reference to his voting power in the Association. II 21. Assessment for Common Expenses. All owners shall be ! obligated to pay the assessments, either estimated or actual, II imposed by the Board of Managers of the Association to meet the common expenses. The assessments shall be made according to each owner's percentage interest in the general common I elements as is set forth in Exhibit B. Except as otherwise I herein provided, the limited common elements shall be main- I tained as general common elements, and owners having exclusive I use thereof shall not be subject to any special charges or assessments for the repair or maintenance thereof. Assess- I ments for the estimated common expenses shall be made at least semiannually and shall be due immediately upon receipt. The I Managing Agent or Board of Managers shall prepare and deliver II, or mail to each owner a statement for the estimated or actual I' common expenses. II I I Ii II II I i I Ii In the event the ownership of a condominium unit by grant from the Declarant commences on a day other than the first of the month, the assessment for that month shall be prorated. -9- ;,..J:;.-'"'..........;-,-_.,~ ,_.'-._'~_"'" -_i....,,........~,_...._-_,~.-,"'--.:"-".l".-."._k'....._.,_,C. _-".<<__.....~.,.'._~.~.....,,~._ _,. ,.-_...~_.~, .~--V",......~..".,_.,.__""'"..~_-.-"..,,__~.-_. , ~..__. ,__.......'....-...~'"-'._..."..,~~'._,~~.~..;........~,.:..-:..._ . " assessment for any period shall not be deemed a waiver, modi- fication or a release of the owners from their obligation to pay the same. I I I I 22. Insurance. 22.1 The Board of Managers of the Association shall obtain and maintain at all times, to the extent obtainable, policies involving standard premium rates, written with com- panies licensed to do business in Colorado, covering the risks set forth below. To the extent possible, the Board of the Association shall not obtain any policy where: (i) under the terms of the insurance company's charter, by-laws or policy, contributions or assessments may be made against any mort- gagee, the Association or the Unit owners; or (ii) by the terms of the carrier's charter, by-laws or policy, loss pay- ments are contingent upon action by the company's Board of Directors, policyholders or members; or (iii) the policy includes any limiting clauses (other than insurance condi- tions) which could prevent mortgagees, the Association or the Unit owners or the mortgagor from collecting insurance pro- ceeds. The types of coverages to be obtained and risks to be covered are as follows, to wit: , i i I I I I I 22.1.1 Fire insurance with extended coverage and all risk endorsements, which endorsements shall include endorsements for vandalism, malicious mischief, boiler explo- sion and machinery if appropriate. Said casualty insurance shall insure the entire condominium project and any property, the nature of which is a common element (including all of the Units, fixtures therein initially installed by the Declarant but not including furniture, furnishings or other personal property supplied by or installed by Unit Owners) together with all service equipment contained therein in an amount equal to the full replacement value, without deduction for depreciation. All policies shall contain a standard non- contributory mortgage clause in favor of each mortgagee of a Condominium Unit, which shall provide that the loss, if any, thereunder, shall be payable to the Association, for the use and benefit of mortgagees as their interest may appear. 22.1.2 If the condominium project is located in an area identified by the Secretary of Housing and Urban Develop- ment as an area having special flood hazards and the sale of Flood Insurance has been made available under the National Flood Insurance Act of 1968 or any successor acts, a "blanket" policy of flood insurance on the Condominium Project in an amount equal to the full replacement value of the insurable improvements, if available in that amount. 22.1.3 Public liability and property damage insur- ance in such limits as the Board of Directors of the Associa- tion may from time to time determine, but not in an amount less than $100,000.00 per person, and $300,000.00 per occur- rence, covering all claims for bodily injury or property damage. Coverage shall include, without limitation, liability for personal injuries, operation of automobiles on behalf of the Association, and activities in connection with the owner- ship, operation, maintenance and other use of the project. 22.1.4 Workmen's Compensation and employer's lia- bility insurance and all other similar insurance with respect to employees of the Association in the amounts and in the forms now or hereafter required by law. -10- ; .~ "":1.;.,""""_.""'......'"..~"_'"' .'--.;;..'~;.. '.,....."'...-"""'""',.....,...........--'-""".'._,,-._...____......,_.~. ..'.N...."'''.._'.,..-__.._..,_._ .~._._ __........,..~.__.'_____~~...._,~..._ -'-~'~"'-'.- -,....~..,..~....',--". .<~........_,-----'"'-'.,'---~,._"'~,:,:..>,'''''''-- "~--- 22.1.5 The Association may obtain insurance against such other risks, of a similar or dissimilar nature, as it shall deem appropriate with respect to the Condominium Pro- ject, including plate or other glass insurance and any personal property of the Association located thereon. 22.2 All policies of insurance to the extent obtainable shall contain waivers of subrogation and waivers of any defense based on invalidity arising from any acts of a Condo- minium Unit owner and shall provide that such policies may not be cancelled or modified without at least ten (10) days prior written notice to all of the insureds, including mortgagees. Duplicate originals of all policies and renewals thereof, together with proof of payments of premiums, shall be delivered to all mortgagees requesting same at least ten (10) days prior to expiration of the then current policies. The insurance shall be carried in blanket form naming the Associ- ation as the insured, as attorney-in-fact for all of the Condominium Unit owners, which policy or policies shall identify the interest of each Condominium Unit owner (owner's name and Unit number designation) and first mortgagee. 22.3 Prior to obtaining any policy of fire insurance or renewal thereof, the Board of Managers of the Association shall obtain an appraisal from a duly qualified real estate or insurance appraiser, which appraiser shall reasonably estimate the full replacement value of the entire Condominium Project, without deduction for depreciation, for the purpose of deter- mining the amount of the insurance to be effected pursuant to the provisions of this insurance paragraph. In no event shall the insurance policy contain a co-insurance clause for less than ninety percent (90%) of the full replacement cost. Determination of maximum replacement value shall be made annually by one or more written appraisals to be furnished by a person knowledgeable of replacement cost, and each mortgagee requesting a copy shall be furnished with a copy thereof, within thirty (30) days after receipt of such written appraisals. Such amounts of insurance shall be contemporized annually in accordance with their currently determined maximum replacement value. 22.4 Unit owners may carry other insurance for their benefit and at their expense, provided that all such policies shall contain waivers of subrogation, and provided further that the liability of the carriers issuing insurance obtained by the Board of Managers shall not be affected or diminished by reason of any such additional insurance carried by any Unit owner. 22.5 Insurance coverage on furnishings, including carpet, draperies, oven, range, refrigerator, wallpaper, disposal and other items of personal or other property belonging to an owner and public liability coverage within each Unit shall be the sole and direct responsibility of the Unit owner thereof, and the Board of Managers, the Association and/or the Managing Agent shall have no responsibility therefor. 22.6 In the event that there shall be any damage or destruction to, or loss to a Unit which exceeds $1,000.00 or any damage or destruction to, or loss to the common elements which exceeds $10,000.00, then notice of such damage or loss shall be given by the Association to each first mortgagee of said Condominium Unit within ten (10) days after the occur- rence of such event. -11- ._'-]---_. .........>>.'...,..,.. ._-_....,... _...~-"... I I I I I I I ...............,""-".v_.,....".. .~~.....""...~"..__<.,,.._..,~__,Tr._._...,__.__..___........____.__ r .....',... ... 23. OWner's Personal Obligation for Payment of Assessments. The amount of the common expenses assessed against each condominium unit shall be the personal and indi- vidual debt of the owner thereof. No owner may exempt himself from liability for his contribution towards the common expenses by waiver of the use or enjoyment of any of the common elements or by abandonment of his unit. Both the Board of Managers and Managing Agent shall have the responsibility to take prompt action to collect any unpaid assessment, which remains unpaid more than fifteen (15) days from the due date for payment thereof. In the event of default in the payment of the assessment, the unit owner shall be obligated to pay interest at the rate of eighteen percent (18%) per annum on the amount of the assessment from the due date thereof, together with all expenses, including attorney's fees incurred, together with such late charges as provided by the By-Laws of the Association. Suit to recover a money judgment for unpaid common expenses shall be maintainable without foreclosing or waiving the lien securing same. 24. Assessment Lien and Foreclosure. All sums assessed but unpaid for the share of common expenses chargeable to any condominium unit shall constitute a lien on such unit superior to all other liens and encumbrances, except only for tax and special assessment liens on the unit in favor of any assessing unit, and all sums unpaid on a first mortgage or first deed of trust of record, including all unpaid obligatory sums as may be provided by such encumbrance. To evidence such lien, the Board of Managers or the Managing Agent shall prepare a written notice of lien assessment setting forth the amount of such unpaid indebtedness, the name of the owner of the condo- minium unit and a description of the condominium unit. Such a notice shall be signed by one of the Board of Managers or by one of the officers of the Association or by the Managing Agent and shall be recorded in the office of the Clerk and Recorder of pitkin County, Colorado. Such lien for the common expenses shall attach from the date of the failure of payment of the assessment. Such lien may be enforced for the fore- closure of the defaulting owner's condominium unit by the Association in like manner as a mortgage or deed of trust on real property subsequent to the recording of a notice or claim thereof. In any such proceedings the owner shall be required to pay the Association the assessments for the condominium unit during the period of foreclosure, and the Association shall be entitled to a receiver to collect the same. The Association shall have the power to bid in the condominium unit at foreclosure or other legal sale and to acquire and hold, lease, mortgage, vote the votes appurtenant to, convey or otherwise deal with the same. Any encumbrancer holding a lien on a condominium unit may pay, but shall not be required to pay, any unpaid common expenses payable with respect to such unit, and upon such payment such encumbrancer shall have a lien on such unit for the amounts paid of the same rank as the lien of his encumbrance. Upon request of a mortgagee, the Association shall report to the mortgagee of a condominium unit any unpaid assessments remaining unpaid for longer than twenty-five days after the same are due; provided, however, that a mortgagee shall have furnished to the Managing Agent or the Board of Managers notice of such encumbrance. 25. Liability for Common Expenses Upon Transfer of Condominium Unit is Joint. Upon payment to the Managing Agent, or if there is no Managing Agent, then to the Associa- tion of a reasonable fee not to exceed Twenty-Five Dollars ($25.00), and upon the written request of any owner or any -12- .....'-.~4_..C ~.__~ ,'..*'......_.,.. _. _"--..~..~...__._....-........~.d._~_._."..'_ __"_.' ..__._~._.. _.. _.. _ __ _.___ ... . ...._.. _+~~_ ......>"..._".".~_ _.........,~_~,~,~. '''_''>'''~'._",.,.-.."".''",,",..,_~,._.,,,.,_,,__~'-';'''.' ,_..,.~.'.._', ....,.....,.,..."""_~ ............ '.....".>IF mortgagee or prospective mortgagee of a condominium unit, the Association, by its Managing Agent, or if there is no Managing Agent then by the financial officer of the Association shall issue a written statement setting forth the amount of the unpaid common expenses, if any, with respect to the subject unit, the amount of the current assessment and the date that such assessment becomes due, credit for any advanced payments of common assessments, for prepaid items, such as insurance premiums, but not including accumulated amounts for reserves or sinking funds, if any, which statement shall be conclusive upon the Association in favor of all persons who rely thereon in good faith. Unless such request for a statement of indebtedness shall be complied with within ten (10) days, all unpaid common expenses which become due prior to the date of making such request shall be subordinate to the rights of the person requesting such statement. The grantee of a condo- minium unit, except for any first mortgagee who comes into possession of a condominium unit pursuant to the remedies provided in its mortgage or becomes an owner of a condominium unit pursuant to foreclosure of its mortgage or by the taking of a deed in lieu thereof, shall be jointly and severally liable with the grantor for all unpaid assessments against the latter for the unpaid common assessments up to the time of the grant or conveyance, without prejudice to the grantee's right to recover from the grantor the amounts paid by the grantee therefor; provided, however, that upon payment of a reasonable fee not to exceed Twenty-Five Dollars ($25.00), as is here- inabove provided, and upon written request, any such prospec- tive grantee shall be entitled to a statement from the Manag- ing Agent, or if there is no Managing Agent, then from the Association, setting forth the amount of the unpaid assess- ments, if any, with respect to the subject unit, the amount of the current assessment, the date that such assessment becomes due, and credits for any advanced payments of common assess- ments, prepaid items, such as insurance premiums, which state- ments shall be conclusive UDon the Association. Unless such request for such a statement shall be complied with within ten (10) days of such request, then such requesting grantee shall not be liable for, nor shall the unit conveyed be subject to a lien for any unpaid assessments against the subject unit. The provisions set forth in this paragraph shall not apply to the initial sales and conveyances of the condominium units made by Declarant, and such sales shall be free from common expenses to the date of conveyance made or to a date as agreed upon by Declarant and Declarant's grantee. 26. Mortgaging a Condominium Unit - Priority. An owner shall have the right from time to time to mortgage or encumber his interest by deed of trust, mortgage or other security instrument. A first mortgage shall be one which has first and paramount priority under applicable law. The owner of a condominium unit may create junior mortgages, liens or encum- brances on the following conditions: 26.1 That any such junior mortgages shall always be subordinate to all of the terms, conditions, covenants, restrictions, uses, limitations, obligations, liens for common expenses and other obligations created by this Declaration, the Articles of Incorporation and the By-Laws for the Associa- tion. 26.2 release, upon the interest That the mortgagee under any junior mortgage shall for the purpose of restoration of any improvements mortgaged premises, all of his right, title and in and to the proceeds under all insurance policies -13- ""~"""",""~,_,,.:._..'""..,..-........,,,,'--'-o 1--- - - ._-_.._--~"..'-~'~'-' .....- .,~-""''''~ ,-""",:...,...",.,~,.,,,,,,,_.~_........:t"';;-,...,",,--~""",,,,,"_~__ .'-' ,........ iI'ii::~-< -"- , " upon said premises by the Association. Such release shall be furnished forthwith by a junior mortgagee upon written request of one or more of the members of the Board of Managers of the Association. 27. Association as Attorney-in-fact. does hereby make mandatory the irrevocable attorney-in-fact to deal with the property destruction or obsolescence. This Declaration appointment of an upon its damage, Title to any condominium unit is declared and expressly made subject to the terms and conditions hereof, and accep- tance by any grantee of a deed or other instrument of con- veyance from the Declarant or from any owner or grantor shall constitute appointment of the attorney-in-fact herein pro- vided. All of the owners irrevocably constitute and appoint the Association their true and lawful attorney in their name, place and stead for the purpose of dealing with the property upon its damage, destruction or obsolescence as is hereinafter provided. As attorney-in-fact, the Association, by its Presi- dent and Secretary or Assistant Secretary, shall have full and complete authorization, right and power to make, execute and deliver any contract, deed or any other instrument with respect to the interest of a condominium unit owner which are necessary and appropriate to exercise the powers herein granted. Repair and reconstruction of the improvements as used in the succeeding subparagraphs means restoring the improvements to substantially the same condition in which they existed prior to the damage, with each unit and the general and limited common elements having substantially the same vertical and horizontal boundaries as before. The proceeds of any insurance collected shall be available to the Association for the purpose of repair, restoration or replacements unless the owners and all first mortgagees agree not to rebuild in accordance with the provisions set forth hereinafter. 27.1 In the event of damage or destruction due to fire or other disaster, the insurance proceeds, if sufficient to reconstruct the improvements, shall be applied by the Associ- ation, as attorney-in-fact, to cause the repair and restora- tion of the improvements. 27.2 If the insurance proceeds are insufficient to repair and reconstruct the improvements, such damage or destruction shall be promptly repaired and reconstructed by the Associ- ation, as attorney-in-fact, using the proceeds of insurance and the proceeds of an assessment, if the insurance proceeds are insufficient, to be made against all of the owners and their condominium units. Such deficiency assessment shall be a common expense and made pro rata according to each owner's percentage interest in the general common elements and shall be due and payable within thirty (30) days after written notice thereof. The Association shall have full authority, right and power, as attorney-in-fact, to cause the repair or restoration of the improvements using all of the insurance proceeds for such purpose notwithstanding the failure of an owner to pay the assessment. The assessment provided for . herein shall be a debt of each owner and a lien on his condo- minium unit and may be enforced and collected as is provided in paragraph 24. In addition thereto, the Association, as attorney-in-fact, shall have the absolute right and power to sell the condominium unit of any owner refusing or failing to pay such deficiency assessment, within the time provided, and if not so paid, the Association shall cause to be recorded a notice that the condominium unit of the delinquent owner shall -14- N.,..;;:."'....';~\~,~..'.,', _,.,..'~.,.~.........' __,,'~.~..._~'".,.-.~.~ ___. __~_,..~_.~#....~~"~;"'-'~___.______.__",._.........~,__'~._." --..._...;......._J...,.,.-'."'.:...""._.,.........~.,_,. ~_,.._,.,....-.--,_.__....:.-;...~_'"""".~.~~....~"".--.._----.:..._ " :1 I I be required to pay the Association the costs and expenses for filing the notices, interest on the amount of the assessment at the rate of eighteen percent (18%) and all reasonable attorneys' fees and costs incident to a sale. The proceeds derived from the sale of such condominium unit shall be used and disbursed by the Association, as attorney-in-fact, in the following order: 27.2.1 For payment of taxes and special assessments liens in favor of any assessment entity and customary expense , of sale; I I i , I II I , ii II I I i ,I I' " II I' II II II II I II I I' ,I II il i I I " Ii 'I Ii 'I 'I Ii 'i I, 'I I, I' 27.2.2 For payment of the balance of the lien of any first mortgage; 27.2.3 For payment of unpaid common expenses and all costs, expenses and fees incurred by the Association; 27.2.4 For payment of junior liens and encumbrances in the order of and to the extent of their priority; and 27.2.5 unit owner. The balance, if any, shall be paid to the " , i I , ,i 'I II II 27.3 Notwithstanding Section 27.2, supra, if the insur- ance proceeds are insufficient to repair and reconstruct the improvement(s), all of the owners and the first mortgagees of record may agree not to repair or reconstruct the improve- ments; and in such event, the Association shall forthwith record a notice setting forth such fact or facts, and upon the recording of such notice by the Association's President and Secretary or Assistant Secretary, the entire Condominium Project shall be sold by the Association pursuant to the provisions of this paragraph, as attorney-in-fact for all of the owners, free and clear of the provisions contained in this Declaration, the Map, Articles of Incorporation and By-Laws. Assessments for common expenses shall not be abated during the period prior to sale. The insurance settlement proceeds shall be collected by the Association, and such proceeds shall be divided by the Association according to each owner's interest in the common elements, and such divided proceeds shall be paid into separate accounts, each such account representing one of the Condominium Units. Each such account shall be in the name of the Association, and shall be further identified by the Condominium Unit designation and the name of the owner. From each separate account the Association, as attorney-in- fact shall forthwith use and disburse the total amount of each of such accounts, without contribution from one account to another, toward the partial or full payment of the lien of any first mortgagee encumbering the Condominium Unit represented by such separate account. Thereafter, each such account shall be supplemented by the apportioned amount of the proceeds obtained from the sale of the entire property. Such appor- tionment shall be based upon each Condominium Unit owner's interest in the common elements. The total funds of each account shall be used and disbursed, without contribution, from one account to another by the Association, as attorney~ in-fact, for the same purposes and in the same order as is provided in subparagraphs (27.2.1) through (27.2.5) of this paragraph. 27.4 The owners representing an aggregate ownership interest of seventy-five percent (75%), or more, of the general common elements may agree that the general common elements are obsolete and adopt a plan for the renewal and reconstruction, which plan has the unanimous approval of all II -15- ."'....,...;.._,.-....-.,.~.....--'...~.__.__.- .._.~ ;"'_"_~'~"'---'''''~'''_ ~...^..........._.,.~~'_. _. ,. __>>. ...-.,~'~~,_.....~. "".. ~.-, ...,. .~_ ~,_.. ...,."_..~~..._..'_.,,.-._., .- __._",_,., . ,.~.',., _'.-~ ~_.o.. __,;', ..._. ;......~.....M'-'-......'_~__....""'_"--__~____.__.,.. first mortgagees of record at the time of the adoption of such plan. If a plan for the renewal or reconstruction is adopted, notice of such plan shall be recorded, and the expense of renewal and reconstruction shall be payable by all of the owners as common expenses; provided, however, that an owner not a party to such a plan for renewal or reconstruction may give written notice to the Association within fifteen (15) days after the date of adoption of such plan that such unit shall be purchased by the Association for the fair market value thereof. The Association shall then have thirty (30) days (thereafter) within which to cancel such plan. If such plan is not cancelled, the condominium unit of the requesting owner shall be purchased according to the following pro- cedures. If such owner and the Association can agree on the fair market value thereof, then such sale shall be consummated within thirty (30) days thereafter. If the parties are unable to agree, the date when either party notifies the other that he or it is unable to agree with the other shall be the "commencement daten from which all periods of time mentioned herein shall be measured. Within ten (10) days following the commencement date, each party shall nominate in writing (and give notice of such nomination to the other party) an appraiser. If either party fails to make such a nomination, the appraiser nominated shall, within five (5) days after default by the other party, appoint and associate with him another appraiser. If the two designated or selected appraisers are unable to agree, they shall appoint another appraiser to be umpire between them, if they can agree on such person. If they are unable to agree upon such umpire, each appraiser previously appointed shall nominate two appraisers, and from the names of the four appraisers so nominated one shall be drawn by lot by the appraiser appointed by the owner in the presence of the other appraiser, and the person whose name was so drawn shall be the umpire. The nominations from whom the umpire is to be drawn by lot shall be submitted within ten (10) days of the failure of the two appraisers to agree, which, in any event, shall not be later than twenty (20) days following the appoint- ment of the second appraiser, The decision of the appraisers as to the fair market value, or in the case of their disagree- ment, then the decision of the umpire, shall be final and binding. The expenses and fees of such appraisers shall be borne equally by the Association and the owner. The sale' shall be consummated within fifteen (15) days thereafter, and the Association, as Attorney-in-fact, shall disburse the proceeds for the same purposes and in the same order as is provided in subparagraph 27.2.1 through 27.2.5 of this para- graph, except as modified herein. ' 27.5 The owners representing an aggregate ownership interest of seventy-five (75%), or more, of the general common elements, with the consent of all first mortgagees of record at that time, may agree that the condominium units are obsolete and that the same should be sold. In such instance, the Association shall forthwith record a notice setting forth such fact or facts, and upon the recording of such notice by the Association's President and Secretary or Assistant Secre- tary, the entire premises shall be sold by the Association, as Attorney-in-fact for all of the owners, free and clear of the provisions contained in this Declaration, the Map and the By-Laws. The sales proceeds shall be apportioned between the owners on the basis of each owner's percentage interest in the general common elements, and such apportioned proceeds shall be paid into separate accounts, each such account representing one (1) condominium unit and each such account shall be in the name of the Association and shall be further identified by the -16- ....oS _.. ........,.,'""'-...........,.....:.- -..-". "'-,,"~,-;-~..-- -._~~~~~." "._-..........~"----"'......,...,,.,~._..-...._~......'~..~.,.... ""'~~......-.....,-'>- Condominium unit designation and the name of the owner. From each separate account, the Association, as Attorney-in-fact, shall use and disburse the total amount (of each) of such accounts, without contribution from one account to another, for the same purposes and in the same order as is provided in subparagraph 27.2.1 through 27.2.5 of this paragraph. 28. Personal Property for Common Use. The Association, as Attorney-in-fact for all of the owners, may acquire and hold for the use and benefit of all of the condominium unit owners, real, tangible and intangible personal property and may dispose of the same by sale or otherwise. The beneficial interest in any such property shall be owned by all of the condominium unit owners in the same proportion as their respec- tive interests in the general common elements, and such inter- est therein shall not be transferable except with a transfer of a condominium unit. A transfer of a condominium unit shall transfer to the transferee ownership of the transferor's beneficial interest in such property without any reference thereto. Each owner may use such property in accordance with the purpose for which it is intended without hindering or encroaching upon the lawful rights of the other owners. The transfer of title to a condominium unit under foreclosure shall entitle the purchaser to the beneficial interest in such personal property associated with the foreclosed condominium unit. 29. Registration of Mailing Address. Each owner shall register his mailing address with the Association, and all notices or demands, except routine statements and notices, intended to be served upon an owner shall be sent by certified mail, postage prepaid, addressed in the name of the owner at such registered mailing address. All notices, demands or other notices intended to be served upon the Board of Managers of the Association or the Association shall be sent certified mail, postage prepaid, to the mailing address of the Asso- ciation in Pitkin County, Colorado. 30. Period of Condominium Ownership. minium estates created by this Declaration continue until this Declaration is revoked the manner provided in this Declaration. The separate condo- and the Map shall or terminated in 31. General Reservations. Declarant reserves the right to establish easements, reservations, exceptions and exclu- sions consistent with the condominium ownership of the condo- minium project and for the best interests of the condominium unit owners and the Association in order to serve the entire condominium project. 32, Recreational Facilities. The major recreational facilities which are currently common elements are as follows: swimming pool and jacuzzi. 33. General. 33.1 If any of the provlslons of this Declaration or any paragraph, sentence, clause, phrase or word, or the appli- cation thereof in any circumstance be invalidated, such invalidity shall not affect the validity of the remainder of the Declaration, and the application of any such provision, paragraph, sentence, clause, phrase or word in any other circumstances shall not be affected thereby. -17- ~"""l....."l"">",-,',,,"'-^'._ ,. '..~. _<~-:''''-'. .....~"',~'.,,'~;, '-'u..., ."......."......______....~.....;__"".~..,.~,=_,',..~~___.""_ .... > -".....~o.,.... .~. _" .,.........._"-,... .,' .'"~'.~_'~" _,..-<>-._ ..________~~~.._-._..,.."....___.....;.,....... 33.2 The provisions of this Declaration shall be in addition to and supplemental to the Condominium Ownership Act of the State of Colorado and to all other provisions of law. 33.3 Whenever used herein, unless the context shall otherwise provide, the singular number shall include the plural, the plural the singular, and the use of any gender shall include all genders. 33.4 The provisions of this Declaration shall be liber- ally construed to effectuate its purpose. IN WITNESS WHEREOF, Declarant has duly executed this Declaration this day of , 198 Declarant: THE ASPEN SKI LODGE ASSOCIATES, a Colorado Limited Partnership By: PERRY A. HARVEY, a General Partner By: FARRELL KAHN, a General Partner BEING ALL OF THE GENERAL PARTNERS STATE OF COLORADO ) ) ss. ) COUNTY OF PITKIN The foregoing day of FARRELL KAHN as all LODGE ASSOCIATES, a instrument was acknowledged before me this , 1980, by PERRY A. HARVEY and of the General Partners of THE ASPEN SKI Colorado Limited Partnership. Witness my hand and official seal. My co~mission expires: Notary Public -18- '---"~""!I-'-'---'-" , :1 I' II Ii " i I i I I I ,I II il Ii i! -'~",,-~,,-,,"'""'~~'~ ' ",..--'".'.......~'......~~.,._..~....-....._~~~._~....~. -~-,.~">,, -...,.,~_....._$~.-."""""'"~. " EXHIBIT A Condominium Declaration for THE ASPEN SKI LODGE CONDOMINIUMS Lots E, F, G, H and I, Block 59, City and Townsite of Aspen, Pitkin County, Colorado II I i I II I II I -19- t;....,.,;,.". ..._..,~[-,. .- " __0........___ ___.-._-."."""_....-o,..-.._____,~.__' _, .___.b,.....~.-c~. . ..._..~d~~ _"_' _.V,."....__.___~-"-__,........""'_~__.~_~.~_.,~~._~.....'" I I I ,I I[ II Ii 'I ARTICLES OF INCORPORATION OF THE ASPEN SKI LODGE CONDOMINIUM ASSOCIATION The undersigned, acting as Incorporator of a corpor- ation under the Colorado Non-Profit Corporation Act, signs and acknowledges the following Articles of Incorporation for such corporation. Ii Ii ii II I ARTICLE I NAME The name of the corporation shall be THE ASPEN SKI LODGE CONDOMINIUM ASSOCIATION, hereinafter called the "Association". ARTICLE II II ,I II :1 , Ii ii ~., as from time to time it is amended, supplemented or I ,\ , ;1 I PURPOSE The purpose for which the Association is organized is to provide an entity pursuant to C.R.S. 1973, 38-33-101 et succeeded, (hereinafter called the "Condominium Act") and pursuant to C.R.S. 1973, 7-20-101, et ~, as from time to time it is amended, supplemented or succeeded (hereinafter i !I called "the Nonprofit Corporations Act"), for the " " , , 'I I, Ii 11 'I I, Ii operation of THE ASPEN SKI LODGE CONDOMINIUMS, (hereinafter called "the property") a condominium located on Lots E, F, G, H and I, Block 59, City and Townsite of Aspen, pitkin County, ii " l ~ Ii !i ii il Colorado. ARTICLE III POWERS 1. The Association shall have all of the common law and statutory powers of a non-profit corporation which are not II in conflict with the terms of these Articles. , ~ ,',".' .,.,."".,;..... .-..4_'<_,,,-,, ~...~ ._....,.~ __," ..........'........:..-.....___,__..-._.. ..-..,-~"",-"",;,-...,,,--,.,..,.~._.:.-.-.........._....,,,..-..,. . ....~_ ,.. ^'~. ,,' .~".~--'.". ..,," _~......,' ,,.~, _, -4......~~~ . -,"._",,,-,-,,.',~----,,,,.--,,,,,-,,''''--'';''-'~''_-- ~.._- . .-. ~ '._.~,...~",,~--~.-~.~,.~ 2. The Association shall have all of the powers and duties set forth in the Condominium Act except as limited by these Articles and the Condominium Declaration (hereinafter called the "Declaration") for the property and all of the powers and duties reasonably necessary to operate the Associa- tion as set forth in the Declaration and as it may be amended from time to time, including but not limited to the following: 2.1 To make and collect assessments against members to defray the costs, expenses and losses of the Association. 2.2 To use the proceeds of assessments in the exercise of its powers and duties. 2.3 To maintain, care for, repair, replace, and operate the condominium property. 2.4 To purchase insurance upon the condominium property and to provide protection for the Association and its members as provided by the Declaration. 2.5 To reconstruct improvements after casualty and to further improve the property. 2.6 To make and amend reasonable rules and regu- lations respecting the use of the Association's property. 2.7 To enforce by legal means the provisions of the Condominium Act, the Nonprofit Corporation Act, the Decla- Ii II II , ration, these Articles, the By-Laws of the Association, and the rules and regulations for the use of the condominium property. 2.8 To contract for the management of the condo- II I I I I minium property and to delegate to such manager all powers and duties of the Association except as such are specifically required by the Declaration to have approval of the Board of Managers or the membership of the Association. 2.9 To contract for the management or operation of portions of the common elements susceptible to separate management or operation and to lease such portions. -2- '.........""'.~.....-4.;.;.' -"_"''''', ,. '..........__.~'.__.... ,.-_,~ "".V,'",' ~..._.,_....._._~ "_~,_'~"",_,-,,,,,,_,,^' ,- .,~ ........-... -"'~,,~-~..---~....~.~. "........-A ._,~_ '"..--".,....,-~.,.-....~""..~'"""',.-,-,.;.~....'.-,..~~..---'. ,,-.....----<........--:.:.....~ 2.10 To employ personnel to perform the services required for proper operation of the Association and of the condominium property. 2.11 To collect delinquent assessments by suit or otherwise and to enjoin or seek damages from an owner as is provided in the Declaration and By-Laws. 2.12 To protect and defend in the name of the ,I I' Association any part or all of the condominium project from loss and damages by suit or otherwise. 2.13 To borrow funds in order to pay for any expen- diture or outlays required pursuant to authority granted by provisions of the Declaration and By-Laws, and to execute all such instruments (evidencing such indebtedness) deemed neces- sary. 2.15 To execute contracts to carry out the duties and powers of the Association. II :, hereafter be allowed or permitted by law for a non-profit 1 ! , , , 2.16 To engage in activities which may now or corporation to actively foster, promote and advance the common ,j interests of the condominium unit owners. I II I! 'i il I' Ii 3. All funds and the titles of all properties acquired by the Association and the proceeds thereof shall be held in trust for the members of the Association in accordance Ii with the provisions of the Declaration, these Articles, and !I if II 'I 11 'I 'I I, Ii il 11 I: Ii ,I II II the ByLaws of the Association. 4. The powers of the Association shall be subject to and shall be exercised in accordance with the provisions of the Declaration and the By-Laws of the Association. ARTICLE IV MEMBERS 1. The members of the Association shall consist solely of all record owners of condominium units of the Asso- ciation. -3- ",~_"""""'.4:,',,,,,'" .'""",..."_ _.__u-'_ __.. ','~_'. _.."..',~"..-,~._,~_.~. ...."._...~~ ",_,<~"._'_'.~'~~.' _,~,_.~""...~"-<'~"""-"~'. .......-...... .'-'--'~~_.' ".',-.,,<.-,. -~,,~..,,_.,..'_..._.............._~~.,,-.- "-.-"- ----,'"'-.,... 2. Change of membership of the Association shall be effected and established by the recording in the public records of Pitkin County, Colorado, of a deed or other instru- ment establishing a change in record title to a condominium unit and the delivery to the Association of a certified or machine copy of such instrument. The membership of the prior owner shall thereby be terminated. 3. The share of a member in the funds and assets of the Association cannot be assigned, hypothecated, or trans- ferred in any manner except as an appurtenance to his condo- minium unit. 4. The members of the Association shall be entitled to vote for each condominium unit owned by them. The exact number of votes to be cast by owners of a condominium unit and the manner of exercising voters' rights shall be determined by the By-Laws of the Association. ARTICLE V ! :1 :1 II II II III more than seven (7) Managers, and in the absence of such II I, II :i II , I i I ! BOARD OF 11ANAGERS 1. The affairs of the Association will be managed by a Board consisting of the number of Managers as shall be determined by the By-Laws, but not less than three (3) nor determination shall consist of three (3) Managers. 2. Managers of the Association shall be elected at the annual meeting of the members in the manner determined by the By-Laws. Managers may be removed and vacancies on the Board of Managers shall be filled in the manner provided by the By-Laws. 3. The Managers herein named shall serve until the first election of Managers and any vacancies in their number occurring before the first election shall be filled by the remaining Managers. -4- . ~ l-~<.~;"';",.......__ ~......'--'-'__ _.";'~~___.~....";_".~-,,-,_,...,~_ .,..c..,......."~~.".m.....-;.__' .----'......',,- ....,' .'.,_.._ _._.~"'"_~._.~~ .c..~,..,..-:.,."-'~.'._...,,'.....~~, _.~~~~_-.-. ___ 4. The names and addresses of the members of the first Board of Managers who shall hold office until their successors are elected and have qualified, or until removed, are as follows: 1. Perry A. Harvey 710 E. Durant Aspen, Colorado 81611 2. David Jones 120 W. Hopkins Aspen, Colorado 81611 3. Danielle Longet 310 S. 7th Aspen, Colorado 81611 ARTICLE VI OFFICERS The affairs of the Association shall be administered by officers elected by the Board of Managers at its first meeting following the annual meeting of the members of the Association, which officers shall serve at the pleasure of the Board of Managers. The names and addresses of the officers who shall serve until their successors are designated by the Board of Managers are as follows: President: Perry A. Harvey 710 E. Durant Aspen, Colorado 81611 Secretary: Danielle Longet 310 S. 7th Aspen, Colorado 81611 I Ii 'I I I I ARTICLE III REGISTERED OFFICE The registered office of the Association shall be 710 E. Durant, Aspen, Colorado 81611, and the Registered Agent of the Association, whose address is identical to that of the Registered Office of the Association, shall be PERRY A. HARVEY. -5- _l.<-~"''''''''-,^<ffl'-\'''''>;:,__'~_~ ~.~...._,,^, .,. ~..~.._......",",--....._,.,. .,.."",~.. .,'~_ "...~..___,_,,,,,,,,,",w_..,.._.~,,",",. ~... ..c ~. ."..~..,.__.. ". _..._~,. '-'-' .~.._-~".....--..-. --..--- -_.-...... --_.........-- .-_. ARTICLE VIII INDEMNIFICATION Every Manager and every officer of the Association shall be indemnified by the Association against all liabili- ties, including counsel fees, reasonably incurred or imposed upon him in connection with any proceeding, or any settlement thereof, to which he may be a party, or in which he may become involved, by reason of his being or having been a Manager or officer of the Association, whether or not he is a Manager or officer at the time such expenses are incurred, except in such cases wherein the Manager or officer is adjudged guilty of willful misfeasance or malfeasance in the performance of his duties; provided that in the event of a settlement, the indemnification herein shall apply only when the Board of Managers approves such settlement and reimbursement as being for the best interests of the Association. The foregoing right of indemnification shall be in addition to and not exclusive of all other rights to which such Manager or officer may be entitled. ARTICLE IX BY-LAWS The first By-Laws of the Association shall be adopted by the Board of Managers, and may be altered, amended or revoked in the manner provided by the By-Laws. ARTICLE X II i proposed and adopted pursuant to and as required by the terms i I I AMENDMENTS Amendments to the Articles of Incorporation shall be of the Nonprofit Corporation Act, as amended from time to time. ARTICLE XI TERM The term of the Association shall be perpetual, unless the Association is terminated sooner by the unanimous -6- 4Lc~~'~~'~:"":'r............-- . --",-"~"---,~-",-,,--,"--~,-----,,,-_.,-,~,,-,,",--,,-,,~--,----,,,,'._-"~~-~-"'----._-""--:;'; ._<:- - action of its members. The Association shall be terminated by the termination of the condominium in accordance with the provisions of the Declaration. ARTICLE XII NONPROFIT ASSOCIATION This Association is not organized for profit. No member, member of the Board of Managers, officer or person from whom the Association may receive any property or funds shall receive or shall be lawfully entitled to receive any pecuniary profit from the operation thereof, and in no event shall any part of the funds or assets of the Association be paid as salary or compensation to, or distributed to, or inure to the benefit of any member of the Board of Managers, officer or member, provided, however, always (a) that reasonable i , , i I I I' I! II II I' II I I I I I , compensation may be paid to any member, Manager, or officer while acting as an agent or employee of the Association for services rendered in effecting one or more of the purposes of the Association, and (b) that any member, Manager, or officer may, from time to time, be reimbursed for his actual and reasonable expenses incurred in connection with the admini- stration of the affairs of the Association. ARTICLE XIII INCORPORATOR The name and address of the incorporator of these Articles of Incorporation is: RONALD D. AUSTIN, 600 E. Hopkins, Aspen, Colorado 81611. IN WITNESS WHEREOF, the Incorporator has hereunto affixed his signature on this day of , 198 . RONALD D. AUSTIN -7- ~;"". "~~i.Io<;,.:-'".',"-__".",~.....~..... ,...,.."-~...;,"'-_"_.-..,, " ARTICLES OF INCORPORATION OF THE ASPEN SKI LODGE CONDOMINIUM ASSOCIATION STATE OF COLORADO ) ) ss. ) County of Pitkin I, , a Notary Public in and for said County, in the State aforesaid, do hereby certify that, RONALD D. AUSTIN, whose name is subscribed and annexed to the foregoing Articles of Incorporation, appeared before me this day in person and acknowledged that he signed, sealed and delivered the said instrument in writing as his free and voluntary act, for the uses and purposes therein set forth. day of Given under my hand and notarial seal this , 198 . My commission expires: Witness my hand and official seal. Notary Public ,I il I , -8- CASELOAD SUMMARY SHEET . City of Aspen 1. DATE SUBMITTED: STAFF: <;ilt1(\Y \!tli1n 2. APPLICANT: ,Jv\J 1?fu'~~ IJ~ As~\CI.~f.S -""""\ ",,; "'... No. C)cr 80 3. REPRESENTATIVE: ~tvry ~ ! [and' l<ihV\ - 4. PROJECT NAME:~!'\. 5kJ Lo~f SL,()dl'JiC,IOh &CCphDh 5. LOCATION: 6. TYPE OF APPLICATION: Rezoning P.U.D. Special Review Growth Management HPC ( C~)JJ,\\\\I~I \^i\\\l!~:h6,j V Subdivi sion ''f... Excepti on Exemption 70:30 Residential Bonus ____Stream Margin ____8040 Greenline View Plane Conditional Use ____Other 7. REFERRALS: 'I-. Attorney ~Engineering Dept. ~ousing Water ____City Electric Sanitation District ____School District Fire Marshal ____Rocky Mtn. Nat. Gas Parks ____State Highway Dept. Holy Cross Electric ____Other Mountai n Be 11 8. REVIEW REQUIREMENTS: f'x(pr-n'ik.- p+ -:& LL Uk C12 P -/va I -h' "'- ""I 9. DISPOSITION: p & z /' Approved V Denied Date JJ() tj, /8, /7150 r At its regular meeting on November 18, 1980, the Aspen Planning and Zoning Commission recommended subdivision exception (wajve conceptual approval before City Council and -preliminary before P&Z) for condominiumj.zation of the Aspen Ski Lodge (formerly SmuRb1er -Lodge) located on Lots E,F,G,H,I; Block 59, Aspen Townsite, conditioned on: (l)Designation of a trash collection and removal area on the site plan, to meet Engineering Office approval. (2)Identification on the site plan of the zoning district in which the structure is located. (3)Provision of proof of ownership. Counci 1 J S",Il,~~ ~ \. ~ o.,te,<..J"o' '\- 0 (L 6'k ~.~ Q.v. ~ ~ 1. ~,\..,' ., G\..... (.0 ~ ,\ _0 ~, APproved! ~ Denied Date '\)Q.c "'b \"",,0 . ~ ~.~J o~ ~ o <;0\\."'...., c.<>,~,\,o~" \ 0<;' C\-... c...V'U\..<l"J... .",j ~v~e..j \(l..,,~ "\M,\ -\i l,ll.."\\A,\..J) ,I;- t>. \l.o-\\~'" 1)"-;" ~~'G:1 "",A '0.- () ~ Q. V'^. ~ \., "'y, ~ '-C, "'_), LA I{~ ~(1\'(."'\\<' s.~"- ~\f>,~~~ &",,,._ ,~ ~ Eo' ~ \ + '^"e.'--o ",(. \.\ \.\21<'" LD~'S Q.."- ~ Lc.:\ . c' 10. ROUTING: J Attorney .I Buil di ng ~ Engineering Other /,.","" ".,....., AGREEMEN'r THIS AGREEMENT made and entered into this 8th day of December , 1980, by and between the City of Aspen" Pitkin County, Colorado, hereinafter referred to as "Aspen" and The Aspen Ski Lodge Condominiums hereinafter referred to as "Licensee". , WHEREAS, Licensee is the [owner/lessee] of the following described property located in the City of Aspen, Pitkin County, Colorado: The Aspen Ski Lodge Condominiums Lots E, F, G, H, I, Block 59 City and Townsite of Aspen WHEREAS, said property abuts the following described public right(s)-of-way: Garmisch Street WHEREAS, Licensee desires to encroach upon said right(s)-of- way feet parallel and adjacent to the property above described for the following purpose: To place an enclosed and screened trash pick-up area at the SE corner of Lot I on the city right of way. WHEREAS, Aspen agrees to the grant of a private license of encroachment subject to certain conditions. THEREFORE, in consideration of the mutual agreement herein- after contained, Aspen and licensee covenant and agree as fol- lows: 1. A private license is hereby granted to Licensee to occupy, maintain and utilize the above-described portion of public right-of-way for the sole purpose described. . 2. This license is granted for a perpetual term subject to being terminated at any time and for any reason at the sole dis- cretion of the City Council of the City of Aspen. ",." ,..-,~,....~ ',. ,," 3. This license is made subordinate ,to the riyht of Aspen to i \ , use said area for any public purpose. ;. 4. Licensee is respon~ible for the lI\aintenance and repair of the public right-of-way, together with improvements constructed therein, which Aspen, in the exercise of its discretion, shall determine to be necessary to keep the same in a safe and clean condition. 5. Licensee shall at all times during the term hereof, carry public liability insurance against personal injury and property damage protectiny Aspen against any and all claims as a result of or arising out of the use and maintenance by Licensee of said property. 6, Licensee shall hold Aspen whole and harmless against any and all claims for damages, costs and expenses, to persons or property that may arise out of, or be occasioned by the use, occupancy and maintenance of said property by Licensee, or from any act or omission of any representative, agent, customer and/or employee of Licensee. 7. This license may be terminated by Licensee at any time and for any reason on thirty (30) days' written notice of [its, her, his, their] intent to cancel. This license may be terminated by Aspen at any time and for any reason by resolution duly passed by the City Council of the City of Aspen. Upon termination License~ shall, at [its, his, her, their] expense, remove any improvements or encroachments from said property. The property shall be restored to a condition satisfactory to Aspen. 8. This license is subject to all state law, the provisions of the Charter of the City of Aspen as it now exists, or as may hereafter be adopted or amended, and the ordinances of the City of Aspen now in effect or those which may hereafter be passed and adopted. 9. Nothin;j herein. shall be construed so as to prevent Aspen from grantiny to anyone such additional licenses or property interests in or affecting said property as it deems necessary. 10. The conditions hereof imposed o~ the granted license of encroachment shall constltute covenants running with the land, and binding upon Licensee, [its,' his, her, their] heirs, successors and assigns. IN WITNESS ImEREOF, the parties executed this agreement at Aspen the day and year first written. THE CITY OF ASPEN, COLORADO By Herman Edel Mayor ATTEST: Kathryn S. Koch City Clerk Licensee t - ...... -- MEMORANDUM TO: Aspen Planning & Zoning Commission Aspen City Council FROM: Jolene Vrchota/Sunny Vann, Planning Office RE: Aspen Ski Lodge (formerly Smuggler Lodge) Condominiumization DATE: November 12, 1980 Zoning: Location: Lot Size: Hi story: Application Request: Engineering Comments: Attorney's Comments: Housing ~irector's Comments: Planning Office Recommendation: Lot E, F, G, H, (101 W. Main St.) '~.A.L/ O-Office with Hi 15,000 sq. ft. On April 10, 1979 the Board of Adjustment granted a variance from the provisions of Section 24-12.5 so Smuggler Lodge would be able to make repairs to meet code requirements in an amount greater than 10 percent of current replacement costs per year. The attached resolution approving variance shows no conditions were attached to the approval. The current application (made by potential new buyers) is for condominiumization of the renovated Aspen Ski Lodge (34 units). Ordinance No. 14 (Series of 1980) amends Section 20-23 of the Municipal Code to allow lodge condomi- niumization when specific requirements are met. The appli- cant has carefully laid out his application to address the requirements. (See attached copies of application and Ordi- nance 14.) See attached memo for two conditions to be met prior to City Council's final approval consideration. See attached memo from Robert Edmondson dated November 11, 1980. Except for providing proof of ownership, the applicant has provided documents complying with requirements of Section 20-23. No comments received. Note that the affidavit of David E. Jones assures that the lodge will provide two (2) pillows of employee housing following condominiumization, as supplied prior to condominiumization. See Section 20-23(a)(2). The Planning Office has determined that the applicant has met the intent and requirements for lodge condominiumization, as amended in Section 20-23 of the Aspen Code. The Planning Office recommends subdivision exception (waiving conceptual approval before City Council and preliminary before P&Z) for condominiumization of the Aspen Ski Lodge. Based on the written documents which have been reviewed, approval should be conditioned on: (1) Designation of a trash collection and removal area on the sitev to meet Engineering Office approval. pia....) (2) Identification of the zoning district in which the structure is located (also on the site plan). (3) Provision of proof of ownership. P & Z Recommendation: Council Action: r", '-' ,......." At its regular meeting on November 18, 1980, the Aspen Planning and Zoning Commission recommended subdivision exception (waive conceptual approval before City Council and preliminary before P8oZ) for condominiumization of the Aspen Ski Lodge (formerly Smuggler Lodge) located on Lots E,F,G,H,I; Block 59, Aspen Townsite, conditioned on: (l)Designation of a trash collection and removal area on the site plan, to meet Engineering Office approval. (2)Identification on the site plan of the zoning district in which the structure is located. (3)Provision of proof of ownership. (4)Provision of off-site employee housing for two employees for the winter of 1981. In response to the, conditions recommended by P & Z at its November 18, 1980 meeting, the applicant has provided the Planning Office with proof of ownership and a letter of agreement that they will subsidize the rent of two of the lodge employees for the winter of 1981. In addition, they have met with the Engineering Department with respect to the provision of trash collection and removal facilities and an encroachment agreement for the location of same is included in your packet. Should Council concur with the Planning Office and P & Z's recommendation, the appropriate motion is as follows: "I move to except the Aspen Ski Lodge from full compliance with the subdivision regulations for purposes of condominiumization subject to the following conditions: 1. The execution of the attached encroachment agreement for the Lodge's trash facilty. 2. The execution of a letter of agreement with respect to the provision of employee housing. 3. Revision of the applicant's site plan consis- tent with the Engineering Department's memorandum dated November 7, 1980." , ,...:.........~;,-_.......,"~.,,' I I I I , I Ii , !I II 6. ii I' " Ii " ji ,I Ii II Ii " _~....-...-.....,.,......,..............._.o:-.......-~....._-'""'__..~__....___.._..........-~~---..~-_.....--,-~.......~~".,.".......,.............~.,-""",............;. ASPEN CITY COUNCIL AND ASPEN PLANNING AND ZONING COMMISSION 1. Purpose: Application for condominiumization of THE ASPEN SKI LODGE. 2. Code Provision: This application is made pursuant to S20-23 of the Municipal Code of the City of Aspen. 3. Applicant: The Aspen Ski Lodge Associates, a Colorado limited partner- ship. 4. Introduction: The Aspen Ski Lodge was formerly the Smuggler Lodge. In 1978 the Smuggler Lodge was purchased by JPW Partners and through application to the City an extensive remodel and upgrading was approved and carried out. There is no question that the lodge is of the highest quality in every respect. It was during the renovation of the lodge that the lodge condominium conversion ordinance was conceived and passed. The Applicant has contracted to purchase the lodge from JPW Partners, and a condition of the contract is approval of condominium- ization by the City of Aspen. 5. Services and Amenities: The three year performance level of services and amenities is set forth in the attached Affidavit of David F. Jones, the managing partner of JPW Partners, the existing owners, as to the services provided. The Applicant agrees to provide services consistant with that, which are substantially greater services, management, maintenance and the like than provided prior to the Aspen Ski Lodge. Tourist Market: By virtue of the rental restrictions required in S20-23 of the Municipal Code, which have been included in the draft of the Condominium Declaration, attached hereto, and which will be recorded in the records of Pitkin County, Colorado, the Applicant has committed to tourist market rentals. This commitment is restated here. , 7 ;! . Common Areas: I' Ii , Submitted with this application is a plan showing the common areas and elements. These areas shall remain the same and shall not be diminished. 8. Upgrading of the Lodge: JPW Partners purchased the Smuggler Lodge in 1978 for $850,000.00 and expended $1,550,000.00 in the remodel and upgrading of the Lodge, creating the finest quality lodge in Aspen. The lodge facility that has been created is of a much better quality than the pre-existing lodge. The upgrading of the lodge far surpasses the requirements of the ordinance and completely complies with the spirit of improving the lodge. -eioilioL~."","",",,"'~' ....~~',,"J "~'o.-~ ...-,-.....-. ., "~.. ~..~.._- ,., ....... "0.,-; The resulting condominiumized lodge will be managed in the same style and atmosphere as the Aspen Ski Lodge has been managed during the past year. 9. Binding Effect: The Applicant agrees to the binding conditions as set forth in the Ordinance in ~20-23(b). 10. Information and Documentation Required: (a) Proof of Ownership. JPW Partners is the record owner of the property (deed attached). A contract of sale to The Aspen Ski Lodge Associates has been entered into and if condominiumization is approved that limited partnership (Perry Harvey is one of the general partners) will purchase the lodge. (b) An improvement survey accompanies this application. (c) A site inventory accompanies this application. (d) Drafts of the this application. be made to conform proposed condominium documents accompany Some changes and additions will likely to this new form of condominiumization. (e) The Affidavit of David F. Jones concerning services accompanies this application. I ! (f) One employee unit with two pillows is designated on I the site inventory. Ii il (g) Improvements and costs are included in paragraph 8 'I hereof. II " Ii This application is submitted by Counsel for Applicant, !I Oates, Austin, McGrath & Jordan. " Dated: October 27, 1980. OATES, AUSTIN, McGRATH & JORDAN Ronald D. Austin William R. Jordan, III 'I I I, " :1 By C?fftiffJ) -!k-J.~ :1 Ii ii " il , i: Ii Ii Ii Ii II I! ii Ii I I I -2- r._,._..~......."".~.,.~.-. .,..,;",_~.,....,_~_'. ~-.,~..,_.'m__'_' .... _'--,"'.,.~_ ,,-.,.-,..-.'.- "^...~ ,..~...';;..,.~ w..... .~_ .'- .. :..~.;"..... ..y.,_,.......",...,~.~,"'."'..".,--r.""."':"'"",""....,,.....,......,.,..<",.'-...-......~,.....~..""~.., .. /"'", !..-........ ".,.,/ , STATE OF COLORADO ) ) ss. COUNTY OF PITKIN ) AFFIDAVIT OF DAVID F. JONES CONCERNING SERVICES A THE ASPEN SKI LODGE The affiant, DAVID F. JONES, being first duly sworn, upon his oath states: 1. I am the managing partner of JPW Partners, and have been managing the Smuggler Lodge since December 15, 1978, when we purchased it and The Aspen Ski Lodge since it opened on December 15, 1979; 2. Prior to December 15, 1978, the lodge was known as the Smuggler Lodge and was owned by another party and operated in a fashion much different than The Aspen Ski Lodge; 3. The past year has set the standard by which we would operate the lodge and The Aspen Ski Lodge Associates is bound by our agreement to continue this type of operation; 4. In response to the specific provisions of the I ordinance, we have provided and agree to provide in the future :1 I I the following: (a) On-site management from 8:00 a.m. to 8:00 p,m. seven (7) days a week during the high season; (b) Twenty-four (24) hour services on call during high season; (c) A continental breakfast; (d) An eight (8) passenger van providing trans- portation to and from the airport; (f) Check-in time is published to be 3:00 p.m. I II ': 'I The procedure is that guests present themselves at the front I I I I desk, sign the registration form, and are advised of amenities and information to enchance their visit. Late arrivals, after the desk is closed, are signed in and given a room key by the Aspen Security or similar entity. (g) Amenities available to the guests are: continental breakfast, wine and cheese (during the winter only) several times per week, swimming pool, jacuzzi and cable and HBO television; ~""J'~~~!~'>~:......w-':':;j.$.;i;"~., ~..;;;;,.c..;...:;...";,,,;'i~-;"'~'" <, :.'~';"-~......~.........",,,,->..:-::,,----~...;;,,; ", . ..... ...." . '. '--.'" . ..:.;..-~..;,...;:;'--....__...._.-.._~~.........:..-~~,--;.;:...~........ . .~_.:. - (h) On-site management exists in a very high standard of excellence and on a year-around basis, with reduced I hours I , , during the off-season. 5. Prior to the current ownership, I know of my own knowledge that the Smuggler Lodge provided one manager's unit for two employees. Subscribed and sworn to before ,f.~ this J'1 day of ~ , 1980, by DAVID F. JONES. WITNESS my hand and official seal. My commission expires: /C:J/.;)..(j/gif II , .:' . I. . I 'I II '! I. ,q II ":1 , 'I I, " , Ii II I' I! II II 'I ! ,; " :1 Ii ,i i' " " " !i Ii I II i: Ii " , i' ii i' il I' !, !. " ,I 'I i: I' i' ! I, II II I I ~~ - t2 . ,. -2- o """'\ .....1 M E MaR AND U M TO: Sunny Vann FROM: Robert B. Edmondson, Acting City Attorney RE: The Aspen Ski Lodge Condo DATE: November 11, 1980 ------------------------------------------------------------ Comments - The Aspen Ski Lodge Condo The Condominium Declaration complies with the provisions of said section for (a) use during the high season (b) assessment for violations. Also, according to the affidavit of David E. Jones, the lodge will provide (2) pillows of employee housing and prior to condominiumization two pillows had been provided. The affiant also states that the on-site management will be provided in accordance with the applicable statute. The application states that proof of ownership has been provided. At this time, I do not have that information. The applicant, according to the documents, have complied with the remaining requirements of Section 20-23 of the Code. " '~ .' . BY-LAWS OF THE ASPEN SKI LODGE CONDOMINIUM ASSOCIATION ARTICLE I OBJECT 1. The purpose for which this non-profit Association is formed is to govern the condominium property which has been or will be submitted to the provisions of the Condom~nium Owner- ship Act of the State of Colorado by the recording of the declaration and supplements thereto and maps and supplements thereto bearing the name associated with this Association. 2. All present or future owners, tenants, future tenants, or any other person that might use or have an interest in any manner in the faciliti~s of the project located on the property therein described are subject to the regulations set forth in these By-Laws. The mere acquisition or rental of any of the condominium units (hereinafter referred to as "units") or the, mere act of occupancy of any of said units will signify that these By-Laws are accepted, ratified, and will be complied with. ARTICLE II MEMBERSHIP, VOTING, MAJORITY OF OWNERS, QUORUM, PROXIES 1. Membership: Except as is otherwise provided in these By-Laws, ownership of a condominium unit is required in order to qualify for membership in this Association. Any person on becoming an owner of a condominium unit shall automatically become a member of this Association and be subject to these By-Laws. Membership shall terminate without any formal Association action whenever a person ceases to own a condo- minium unit. Provided, however, such termination shall not relieve or release any such former owner from any liability or obligation incurred under or in any way connected with this Association during the period of such ownership and membership in the Association. Termination shall not impair any rights or remedies which the unit owners have, either through the Board of Managers or the Association or directly, against such former owner and member arising out of or in any way connected with ownership and membership and the covenants and obli- gations incident thereto. 2. Voting: Voting shall be based upon the percentage of the undivided interest owned by each unit owner in all of the general common elements. The ownership interest allocable to each unit shall be set forth in the Condominium Declaration. The aggregate of all of the undivided interests in the general common elements shall be considered one hundred (100%) percent for voting purposes. cumulative voting is prohibited. Unless specifically set forth herein to the contrary, when a vote of the members requires that a certain percentage of votes be cast for approval, it shall be a percentage of the undivided interests in the general common elements, not a percentage of the total members in the Association. 3. Majority of Unit Owners: As used in these By-Laws the term "majority of unit owners" shall mean more than fifty (50%) percent of the undivided ownership of the general common elements. 4. Quorum: Except as otherwise provided in these By-Laws, the presence in person or by proxy of a majority of unit owners shall constitute a quorum. Unless otherwise specifically set forth herein to the contrary, an affirmative vote of a majority of the unit owners present, either in person or by proxy, shall be required to transact the business of the meeting, and the acts or decisions thereby undertaken shall be binding on all unit owners. -2- 5. Proxies: votes may be cast in person or by proxy. Proxies must be filed with the Secretary before the appointed time of each meeting. ARTICLE III ADMINISTRATION 1. Association Responsibilities: The owners of the units will constitute the Association of unit owners, herein- after referred to as "Association", who will have the respon- sibility of administering the project through a Board of Managers. 2. Place of Meeting: Meetings of the Association shall be held at such place within the State of Colorado as the Board of Managers may determine. 3. Annual Meetings: The first meeting of the Association shall be held on the first Friday during the month of March in the year following the incorporation of this Association. \ Thereafter, the annual ~eetings of the Association shall be held on the first Friday during the month of March of each succeeding year, or on a more convenient date as determined by the Board of Managers. At such meeting there shall be elected, by ballot of the owners, a Board of Managers in accordance with the requirements of Section 5 of Article IV of these By-Laws. The owners may also transact such other business of the Association as may properly come before them. 4. Special Meetings: The President may call a special meeting of the owners upon his own initiative or as directed by resolution of the Board of Managers or upon receipt of a petition signed by at least one-third (1/3) of the owners. The notice of any special meetings shall state the time and place of such meeting and the purpose thereof. No business except as stated in the notice shall be transacted at a special meeting unless by consent of two-thirds (2/3) of the owners present, either in person or by proxy. Any such meeting shall -3- ~.~ ~../ be held at such place and time as the President determines within thirty (30) days after receipt by the President of such resolution or petition. 5. Notice of Meetings: The Secretary shall mail or deliver a notice of each annual or special meeting, stating the purpose thereof as well as the time and place it is to be held, to each owner of record, at least ten (10) but not more than thirty (30) days prior to such meeting. The mailing of a notice in the manner provided in this paragraph or the delivery of such notice shall be considered notice served. 6. Adjourned Meetings: If any meeting of owners cannot be organized because a quorum has not attended, the owners who are present, either in person or by proxy, may adjourn the meeting, from time to time, until a quorum is obtained. 7. Order of Business: The order of business at the annual meetings of the owners of units shall be as follows: (a) Roll call and certifying proxies. (b) Proof of notice of meeting or waiver of notice. (c) Reading and/or disposal of unapproved minutes. (d) Reports of officers. (e) Reports of committees. (f) Election of managers. (g) Unfinished business. (h) New business (i) Adjournment. 8. Performance of Functions ~ Declarant: Notwithstanding the provisions of paragraph 3 of Article III, the rights, duties and functions of the Board of Managers shall, at the Declarant's option, be exercised by the Declarant until three- fourths (3/4) of all condominium units have been sold and conveyed. -4- ARTICLE IV BOARD OF MANAGERS 1. Number and Qualification: At the first meeting there shall be elected from among the unit owners three (3) members of the Association to the Board of Managers who shall thereafter govern the affairs of this Association until their successors have been duly elected and qualified. The number of Managers on the Board may be changed from time to time by vote of the members, but the Board shall never consist of more than seven (7) or less than three (3) members. 2. Powers and Duties: The Board of Managers shall have the powers and duties necessary for the administration of the affairs of the Association and for the operation and maintenance of the condominium project as a first class residential condomin~ ium property. The Board of Managers may do all such acts and things except as by law or by these By-Laws or by the Condominium \ Declaration may not be delegated to the Board of Managers. 3. Other Powers and Duties: Such powers and duties of the Board of Managers shall include, but shall not be limited to, the following, all of which shall be done for and in behalf of the owners of the condominium units: (a) To administer and enforce the covenants, condi- tions, restrictions, easements, uses, limitations, obligations and all other provisions set forth in the Condominium Decla- ration submitting the property to the provisions of the Condo- minium Ownership Act of the State of Colorado, the By-Laws of the Association and supplements and amendments thereto. (b) To establish, make and enforce compliance with such rules and regulations as may be necessary for the operation of the condominium complex and for the operation, rental, use and occupancy of all of the condominium units with the right to amend same from time to time. A copy of such rules and regulations shall be delivered or mailed to each member upon the adoption thereof. -5- (c) To incur such costs, and expenses as may be necessary to keep in good order, condition and repair all of the general and limited common elements and all items of common personal property. (d) To insure and keep insured all of the insurable common elements of the property in an amount equal to the maximum replacement value. To insure and keep insured all of the common fixtures, common equipment and common personal property for the benefit of the owners of the condominium units and their first mortgagees. Further, to obtain and maintain comprehensive liability insurance covering the entire premises in amounts not less than $100,000.00 per person and $300,000.00 per accident and $50,000.00 property damages. (e) To prepare, according to generally accepted accounting principles, a budget for the condominium at least annually, in order to determine the amount of the common assessments payable by~he unit owners to meet the common expenses of the condominium project. To allocate and assess such common charges among the unit owners according to their respective common ownership interests in and to the general common elements. To cause the Association to provide for, among other things, the following services to be paid for out of the regular assessments (or special assessments if neces- sary): the maintenance, repair, operation, additions, altera- tions and improvements of and to the common elements, includ- ing expenses of management; insurance relative to the common elements; common electricity, common heating, common water, and common sewer; trash collections; legal and accounting relative to the common elements and the Association; snow removal; and other services deemed necessary by the Board of Managers for the maintenance of the common elements and opera- tion of the Association. By majority vote of the Board to adjust, decrease or increase the amount of the quarterly or -6- monthly assessments, and remit or return any excess of assess- ments over expenses, working capital, sinking funds and reserve (for deferred maintenance and for replacement) to the owners at the end of each operating year. To levy and collect special assessments whenever in the opinion of the Board it is necessary to do so in order to meet increased operating or maintenance expenses or costs, or additional capital expenses, or because of emergencies. (f) To collect delinquent assessments by suit or otherwise and to enjoin or seek damages from an owner as is provided in the Declaration and these By-Laws. To enforce a late charge of not more than $20.00 per month. To collect interest at the rate of eighteen (18%) percent per annum in connection with assessments remaining unpaid more than fifteen (15) days from due date for the payment thereof, together with all expenses, including attorney's fees incurred. The Board of Managers shall have" the duty, right, power and authority to prohibit use of the limited and general common elements by an owner, his guests, tenants, lessees and invitees in the event that any assessment made remains unpaid more than thirty (30) days from the due date for payment thereof. (g) To protect and defend in the name of the Asso- ciation any part or all of the condominium project from loss and damage by suit or otherwise. (h) To borrow funds in order to pay for any expend- iture or outlay required pursuant to the authority granted by the provisions of the recorded Declaration and these By-Laws, and to execute all such instruments evidencing such indebted- ness as the Board of Managers may deem necessary and give security therefor (including security which may be liens upon the common elements). Such indebtedness shall be the several obligation of all of the owners in the same proportion as their interest in the general common elements. -7- (i) To enter into contracts to carry out their duties and powers. (j) To establish a bank account or accounts for the common treasury and for all separate funds which are required or may be deemed advisable. (k) To maintain the general and limited common elements; to make or cause to be made repairs, replacements, additions, alterations and improvements to the general and limited common elements consistent with managing the condominium project in a first class manner and consistent with the best interest of the unit owners. However, there shall be no additions, alterations or improvements by the Board of Managers or the Managing Agent of or to the general and limited common elements requiring an expenditure in the excess of Five Thousand Dollars ($5,000.00) in anyone calendar year without prior approval of a majority of the owners in writing or a~ reflected in the minutes of a regular or special meeting of the owners. Such limitation shall not be applicable to the replacement, repair, maintenance or obsolescence of any general or limited common element or common property. (1) To keep and maintain full and accurate books and records showing all of the receipts, expenses or disburse- ments and to permit examination thereof at convenient weekday business hours by each of the owners, or their mortgagees, if applicable. (m) To prepare and deliver annually to each owner a statement showing receipts, expenses or disbursements since the last such statement. (n) To meet at least semi-annually. (0) To designate and remove the personnel necessary for the maintenance, operation, repair or replacement of the common elements. -8- . (p) In general, to carryon the administration of this Association and to do all of those things necessary and reasonable in order to carry out the governing and the opera- tion of this condominium property. (q) To control and manage the use of all parking areas. (r) To employ for the Association a Managing Agent who shall have and exercise all of those powers granted to the Board of Managers from time to time by the Declaration and By-Laws which may be delegated to such Managing Agent by the Board of Managers; provided, however, that no such delegation shall relieve the Board of Managers of its responsibility under the Declaration. 4. No Waiver of Riqhts: The ommission or failure of the Association or any condominium unit owner to enforce the covenants, conditions, restrictions, easements, uses, limitations, obligations or other provisions of the Condominium Declaration, the By-Laws or the house rules and regulations adopted pursuant thereto, shall not constitute or be deemed a waiver, modification or release thereof, and the Board of Managers or the Managing Agent shall have the right to enforce the same thereafter. 5. Election and Term of Office: At the first meeting of the Association the term of office of one Manager shall be fixed for three (3) years; the term of office of one Manager shall be fixed for two (2) years; and the term of office of one Manager shall be fixed at one (1) year; provided, however, that the terms of office for not less than 1/3 of the members of the board shall expire annually. At the expiration of the initial term of office of each respective Manager, he shall serve until his successor shall have been elected and the Board of Managers shall hold their first meeting thereafter, except as is otherwise provided. -9- 6. Vacancies: Vacancies in the Board of Managers caus~d by any reason other than the removal of a Manager by a vote of the Association shall be filled by vote of the majority of the remaining Managers, even though they may constitute less than a quorum 1 and each person so elected shall be a Manager until a successor is elected at the next annual meeting of the Association. 7. Removal of Managers: At any regular or special meeting duly called, anyone or more of the Managers may be removed with or without cause by a two-thirds (2/3) majority of the owners present in person or by proxy. Thereupon a successor may then and there be elected to fill the vacancy thus created. Any Manager whose removal has been proposed by the owners shall be given an opportunity to be heard at the meeting. 8. Organization Meeting: The first meeting of a newly \ elected Board of Managefs following the annual meeting of the unit owners shall be held immediately following the annual meeting at such place as shall be fixed by the Managers at the meeting at which such Managers were elected. No notice shall be necessary to the newly elected Managers in order legally to constitute such meeting, providing a majority of the whole Board be present. 9. Regular Meetings: Regular meetings of the Board of Managers may be held at such time and place as shall be deter- mined, from time to time, by a majority of the Managers, but at least one such meeting shall be held every six months. One such meeting per annum may be held by telephone. Notice of regular meetings of the Board of Managers shall be given to each Manager, personally or by mail, telephone or telegraph, at least seven (7) days prior to the day named for such meeting. 10. Special Meetings: Special meetings of the Board of Managers may be called by the President on three (3) days -10- notice to each Manager, given personally or by mail, telephone or telegraph, which notice shall state the time, place (as hereinabove provided) and purpose of the meeting. Special meetings of the Board of Managers shall be called by the President or Secretary in like manner and on like notice on the written request of two or more Managers. Special meetings may be held by telephone. 11. waiver of Notice: Before or at any meeting of the Board of Managers, any Manager may, in writing, waive notice of such meeting and such waiver shall be deemed equivalent to the giving of such notice. Attendance by a Manager at any meeting of the Board shall be a waiver of notice by him of the time and place thereof. If all of the Managers are present at any meeting of the Board, no notice shall be required and any business may be transacted at such meeting. 12. Board of Manaqers' Quorum: At all meetings of the Board of Managers, a majority of the Managers shall constitute a quorum for the transaction of business, and the acts of the majority of the Managers present at a meeting at which a quorum is present shall be the acts of the Board of Managers. If, at any meeting of the Board of Managers, there be less than a quorum present, the majority of those present may adjourn the meeting from time to time. At any such adjourned meeting, any business which might have been transacted at the meeting as originally called may be transacted without further notice. 13. Fidelity Bonds: The Board of Managers may require that all officers and employees of the Association and the Managing Agent handling or responsible for Association funds shall furnish adequate fidelity bonds. The premiums on such bonds shall be a common expense. 14. Compensation: No member of the Board of Managers shall receive any compensation for acting as such, but shall -11- be entitled to reimbursement for any actual outofpocket expenses incurred in the performance of his duties. ARTICLE V FISCAL MANAGEMENT The provision for fiscal management of the condominium units for and on behalf of all of the unit owners as set forth in the Condominium Declaration shall be supplemented by the following provisions contained in this Article V. The funds and ,expenditures of the unit owners by and through the Association shall be credited and charged to accounts under the following classifications as shall be appropriate, all of which expenditures shall be common expenses: (a) Current expenses: shall include all funds and expenditures within the year for which the funds are budgeted, including a reasonable allowance for contingencies and working funds, except expenditures chargeable to reserves or to addi- tional improvements. (b) Reserve for deferred maintenance: shall include funds for maintenance items which occur less frequently than annually. (c) Reserve for replacement: shall include funds for repair or replacement required because of damage, wear or obsolescence. ARTICLE VI OFFICERS 1. Designation: The officers of the Association shall be a President, a Vice President, a Secretary and a Treasurer, all of whom shall be elected by the Board of Managers, and such assistant officers as the Board of Managers shall, from time to time, elect. Except for the President who shall be, such officers need not be, members of the Board of Managers, but each shall be an owner of a condominium unit in this ,', -12- condominium project, or the Declarant(s) or their representa- tive(s). The office of President and/or Vice-President shall not be combined with the offices of Treasurer and/or Secretary or held by the same person, but the offices of Treasurer and Secretary may be combined and held by the same person. 2. Election of Officers: The officers of the Association shall be elected annually by the Board of Managers at the organization meeting of each new Board and shall hold office at the pleasure of the Board. 3. Removal of Officers: Upon an affirmative vote of a majority of the members of the Board of Managers or a two-thirds (2/3) majority vote of the members, any officer may be removed, either with or without cause. His successor may be elected at any regular meeting of the Board of Managers, or at any special meeting of the Board called for such purpose. 4. President: The President shall be the chief executive officer of the Association. He shall preside at all meetings of the Association and of the Board of Managers. He shall have all of the general powers and duties which are usually vested in the office of president of an association, including but not limited to the power to appoint committees from among the owners from time to time as he may in his discretion decide is appropriate to assist in the conduct of the affairs of the Association or as may be established by the Board or by the members of the Association at any regular or special meetings. 5. vice President: The Vice President shall have all the powers and authority and perform all the functions and duties of the President in the absence of the President or his inability for any reason to exercise such powers and functions or perform such duties. 6. Secretary: The Secretary shall keep all the minutes of the meetings of the Board of Managers and the minutes of -13- all meetings of the Association; he shall have charge of such books and papers as the Board of Managers may direct; and he shall, in general, perform all the duties incident to the office of Secretary and as is provided in the Declaration and the By-Laws. The Secretary shall compile and keep up to date at the principal office of the Association a complete list of members and their last known addresses as shown on the records of the Association. Such list shall also show opposite each member's name the number or other appropriate designation of the unit owned by such member and the undivided interest in the general common elements. Such list shall be open to inspection by members and other persons lawfully entitled to inspect the same at reasonable times during regular business hours. 7. Treasurer: The Treasurer shall have responsibility for Association funds and shall be responsible for keeping , full and accurate accourts of all receipts and disbursements in books belonging to the Association. He shall be responsible for the deposit of all monies and other valuable effects in the name, and to the credit, of the Association in such deposi- tories as may from time to time be designated by the Board of Managers. In the event a Managing Agent has the responsibility of collecting and disbursing funds, the Treasurer shall review the accounts of the Managing Agent not less often than once each calendar quarter. ARTICLE VII INDEMNIFICATION OF OFFICERS, MANAGERS AND MANAGING AGENT 1. Indemnification: The Association shall indemnify every Manager, officer, Managing Agent, their respective successors, personal representatives and heirs, against all loss, costs and expenses, including counsel fees, reasonably incurred by him in connection with any action, suit or proceeding arising out of his or their conduct on behalf of the Association, -14- except that the indemnification shall not apply if the Court determines such person was guilty of gross negligence or willful misconduct. In the event the Court determines such gross negligence or malfeasance to have occurred, the person shall reimburse the Association for all sums advanced to defend the suit or proceeding. In the event of a settlement, indemnification shall be provided only in connection with such matters covered by the settlement as to which the Association is advised by counsel that the person to be indemnified has not been guilty of gross negligence or willful misconduct in the performance of his duty as such Manager, officer or Managing Agent in relation to the matter involved. The foregoing rights shall not be exclusive of other rights to which such Manager, officer or Managing Agent may be entitled. All liability, loss, damage, cost and expense incurred or suffered by the Association by reason or arising out of or in connection with the foregoing ind~~nification provisions shall be treated and handled by the Association as common expenses; provided, however, that nothing in this Article VII contained shall be deemed to obligate the Association to indemnify any member or owner of a condominium unit, who is or has been a Manager or officer of the Association, with respect to any duties or obligations assumed or liabilities incurred by him as a member or owner under and by virtue of the Condominium Declaration. 2. Other: Contracts or other commitments made by the Board of Managers, officers or the Managing Agent shall be made as agent for the unit owners, and they shall have no personal responsibility on any such contract or commitment (except as unit owners), and the liability of any unit owner on any such contract or commitment shall be limited to such proportionate share of the total liability thereof as the common interest of each unit owner bears to the aggregate common interest of all of the unit owners, except that any -15- losses incurred because of an inability to collect such propor- tionate amount of the total liability owed by an owner shall be shared proportionately by the other owners in the same ratio as the common interest of each unit owner from whom such proportionate amount was collected bears to the aggregate common interest of all unit owners from whom such proportionate amount was collected. ARTICLE VIII AMENDMENTS TO BY-LAWS AND ARTICLES 1. Amendments to By-Laws: These By-Laws may be amended by the Association at an annual meeting or at a duly constituted special meeting for such purpose; provided, however, that the particulars set forth in Section 38-33-106, C.R.S. 1973, and as the same may be amended, shall always be embodied in the By-Laws. The vote of a two-thirds (2/3) majority of the owners present in person or by proxy shall be required for amendment. 2. Amendments to Articles of Incorporation. The Board of Managers shall adopt a resolution setting forth the proposed amendment to the Articles of Incorporation and directing that it be submitted to a vote at either the annual, or a special, meeting of the members. Written notice setting forth the proposed amendment or amendments shall be given to each member entitled to vote at such meeting in person or by proxy. No amendment prohibited' by applicable laws; including but not limited to, federal tax laws, the Colorado Nonprofit Corporation Act, or the Colorado Condominium Act, may be adopted. The proposed amendment shall be adopted upon receiving at least two-thirds of the votes which members present at such meeting or represented by proxy are entitled to cast. ARTICLE IX MORTGAGES 1. Notice to Association: An owner who mortgages his unit shall notify the Association through the Managing Agent, -16- if any, or the Secretary of the Board of Managers, giving the name and address of his mortgagee. 2. Notice of Unpaid Common Assessments: The Board of Managers, upon ten days written notice of request and payment of the required fee (in a reasonable amount as established by the Board of Managers) by a unit owner or his mortgagee shall promptly prepare a statement of account setting forth the amount of any unpaid assessments or other charges due and owing from such unit owner. 3. Notice of Default: The Board of Managers, when giving notice to a unit owner of a default in paying common assessments or other default, shall send a copy of such notice to each holder of a mortgage covering such condominium unit whose name and address has theretofore been furnished to the Board of Managers. 4. Examination of Books: Each unit owner and each mortgagee of a condominium unit shall be permitted to examine the books of account of the condominium at reasonable times, on business days, but not more often than once each month. ARTICLE X EVIDENCE OF OWNERSHIP, REGISTRATION OF MAILING ADDRESS AND DESIGNATION OF VOTING REPRESENTATIVE 1. Proof of Ownership: Except for those owners who initially purchase a condominium unit from Declarant, any person on becoming an owner of a condominium unit shall furnish to the Managing Agent or Board of Managers a machine or a certified copy of the recorded instrument vesting that person with an interest or ownership in the condominium unit, which copy shall remain in the files of the Association. 2. Registration of Mailing Address: The owners or several owners of an individual condominium unit shall have one and the same registered mailing address to be used by the .:-";,_')1-:: Association for mailing of monthly statements, notices, demands, -"~.::Hi'/ .OJ;''' "',," -17- and all other communications. Such registered address shall be the only mailing address of a person or persons, firm, corporation, partnership, association or other legal entity or any combination thereof to be used by the Association. Such registered address of a condominium unit owner or owners shall be furnished by such owners to the Managing Agent or Board of Managers within fifteen (15) days after transfer of title, or after a change of address, and such registration shall be in written form and signed by all of the owners of the condominium unit or by such persons as are authorized by law to represent the interest of all of the owners thereof. 3. Designation of Voting Representative - Proxy: If a condominium unit is owned by one person, his right to vote shall be established by the record title thereto. If title to a condominium unit is held by more than one person or by a firm, corporation, partnership, association, or other legal entity, or any combination thereof, such owners shall execute a proxy appointing and authorizing one person or alternate persons to attend all annual and special meetings of members and thereat to cast whatever vote the owner himself might cast if he were personally present. Such proxy shall be effective and remain in force unless voluntarily revoked, amended or sooner terminated by operation of law; provided, however, that within thirty (30) days after such revocation, amendment or termination, the owners shall reappoint and authorize one person or alternate persons to attend all annual and special meetings as provided by this paragraph 3. 4. Delinquency: No owner shall have the right to vote in person or by proxy at an annual or special meeting of the members of the Association who is delinquent in the payment of an assessment made against him. 5. Good Standing to Vote: The requirements herein contained in this Article X shall be first met before an owner -18- of a condominium unit shall be deemed in good standing and entitled to vote at any annual or special meeting of members. ARTICLE XI OBLIGATIONS OF THE OWNERS 1. Assessments: All owners shall be obligated to pay the monthly or quarterly assessments imposed by the Association to meet the common expense. The assessments shall be made pro-rata according to percentage or fractional interest in and to the general common elements, and shall be due in advance. 2. Notice of Lien 2E Suit: An owner shall give notice to the Association of every lien or encumbrance upon his condominium unit, other than for taxes and special assessments, and notice of every suit or other proceeding which may affect the title to his condominium unit, and such notice shall be given in writing within five (5) days after the owner has knowledge thereof. 3. Maintenance ~ Repair: (a) Every owner must perform promptly, at his own expense, all maintenance and repair work within his own unit which, if omitted, would affect the appearance of or the aesthetic integrity of part or all of the condominium project. (b) All the repairs of internal installations of the unit (non-common element installations) such as water fixtures, light fixtures, gas fixtures, power fixtures, toilet and bath fixtures, telephones, sanitary installations, electrical fixtures and all other accessories, equipment and fixtures shall be at the owner's expense. Repairs to doors and windows shall be at owner's expense, utilizing materials approved by the Association. (c) An owner shall be obligated to reimburse the Association promptly upon receipt of its statement for any expenditures incurred by it in repairing or replacing any general or limited common element damaged by his negligence or by the negligence of his tenants or agents or guestS. -19- 4. Mechanic's Lien: Each owner agrees to indemnify and to hold each of the other owners harmless from any and all claims of mechanic's lien filed against other units and the appurtenant general common elements for labor, materials, services or other products incorporated in the owner's unit. In the event such a lien is filed and/or a suit for foreclosure of mechanic's lien is commenced, then within ten (10) days thereafter such owner shall be required to deposit with the Association cash or negotiable securities equal to one and one-half of the amount of such claim plus interest at the rate of eighteen percent (18%) per annum for one year plus a sum equal to ten (10%) percent of the amount of such claim but not less than One Hundred Fifty ($150.00) Dollars, which latter sum may be used by the Association for any costs and expenses incurred, including attorney's fees incurred for legal advice and counsel. Except as is otherwise provided, such sum or securities shall be held by the Association pending final adjudication or settlement of the claim or litigation. Dis- bursement of such funds or proceeds shall be made by the Association to insure payment of or on account of such final judgment or settlement. Any deficiency, including attorney's fees incurred by the Association, shall be paid forthwith by the subject owner, and his failure to so pay shall entitle the Association to make such payment, and the amount hereof shall be a debt of the owner and a lien against his condominium unit which may be foreclosed as is provided in the Condominium Declaration. All advancements, payments, costs and expenses, including attorney's fees, incurred by the Association shall be forthwith reimbursed to it by such owner(s), and the owner shall be liable to the Association for the payment of interest at the rate of eighteen (18%) percent per annum on all such sums paid or incurred by the Association. -20- ,If", '--.", -^~."-".~-'<----"- -------- 5. General: (a) Each owner shall comply strictly with the provisions of the recorded Condominium Declaration and these ByLaws and amendments thereto. (b) Each owner shall always endeavor to observe and promote the cooperative purposes for the accomplishment of which this condominium project was built. 6. Use of Units; Internal Changes: (a) All units shall be utilized only for residential purposes as is provided in the Condominium Declaration. (b) An owner shall not make structural modifi- cations or alterations to his unit or installations located therein without the written approval of the Board of Managers, and then only in accordance with the provisions of the Condo- minium Declaration. The Board of Managers shall be notified in writing of the intended modifications through the Managing Agent, or, if no Managing Agent is employed, then through the President of the Board of Managers. The Association shall have the obligation to answer an owner's request within fifteen (15) days after such notice, and failure to do so within such time shall mean that there is no objection to the proposed modifications or alterations. 7. Use of General Common Elements and Limited Common Elements: Each owner may use the general common elements, those limited common elements which he is entitled to use, sidewalks, pathways, roads and streets and other common elements located within the entire condominium project in accordance with the purpose for which they were intended without hindering or encroaching upon the lawful rights of the other owners, and subject to the rules and regulations contained in these ByLaws and established by the Board of Managers as is provided in paragraph 9 of this Article. -21- 8. Right of Entry: (a) An owner shall and does grant the right of entry to the Managing Agent or to any other person authorized by the Board of Managers in case of any emergency originating in or threatening his unit, whether the owner is present at the time or not. (b) An owner shall permit other owners, or their representatives, to enter his unit for the purpose of performing installations, alterations or repairs to the mechanical, electrical or utility services which, if not performed, would affect the use of other unit(s), provided that requests for entry are made in advance and that such entry is at a time convenient to the owner. In case of emergency, such right of entry shall be immediate. Managers, are annexed hereto and made a part hereof as Schedule "A'l. (b) The Board of Managers reserves the power to establish, make and enforce compliance with such additional reasonable house rules as may be necessary for the operation, use and occupancy of this condominium project with the right to amend same from time to time. 10. Destruction and Obsolescence: Each owner, upon becoming an owner of a condominium unit, thereby grants his power of attorney in favor of the Association, irrevocably appointing the Associaton his attorneyinfact to deal with the owner's condominium unit upon its damage, destruction or obsolescence, all as is provided in the Condominium Declaration. -22- ARTICLE XII COMMITTEES 1. Designation: The President may, but shall not be required to, appoint an executive committee. 2. Executive Committee: The executive committee shall consist of three (3) persons who are members of the Board of Managers and who shall be appointed by the President from the members of the Board. The President shall be one (1) member. The executive committee shall supervise the affairs of the Association and shall regulate its internal economy, approve expenditures and commitments, act and carry out the established policies of the Association and report to the Managers at each meeting of the Board. The executive committee may hold regular meetings, monthly or as it may in its discretion determine. Special meetings may be called at any time by the chairman of the committee or by any of its members, either personally or \ by mail, telephone or t~legraph, and a special meeting may be held by telephone. 3. Nominating Committee: Before each annual meeting, the President shall appoint a committee of three members who shall nominate candidates for the Board. The names of the candidates shall be submitted on or before thirty (30) days before the election. Members may submit names of candidates other than those submitted by the nominating committee at least ten (10) days prior to the election. Unless such names are submitted, either by the nominating committee or by the members, no person shall be elected whose name is not so submitted unless no nominations are made, in which event the names of candidates shall be submitted at the election by the members. 4. Vacancies: A vacancy in any committee shall be filled by the President. -23- ARTICLE XIII ASSOCIATION - NOT FOR PROFIT 1. Association ~ for Profit: This Association is not organized for profit. No members, member of the Board of Managers, officer or person from whom the Association may receive any property or funds or shall receive or shall be lawfully entitled to receive any pecuniary profit from the operation thereof, and in no event shall any part of the funds or assets of the Association be paid as salary or compensation to, or distributed to, or inure to the benefit of any member of the Board of Managers, officer or member; provided, however, always (1) that reasonable compensation may be paid to any member, Manager or officer while acting as an agent or employee of the Association for services rendered in effecting one or more of the purposes of the Association, and (2) that any for his actual and officer may, from time to time, be reimbursed \ rea~onable expenses incurred in connection member, Manager or with the administration of the affairs of the Association. Rent receipts received by the Managing Agent shall be deemed the property of the owner, and deposits to the Association bank account shall be deemed only as a convenience to owners. ARTICLE XIV MORTGAGEES AS PROXIES 1. Mortgagees as Proxies: Condominium unit owners shall have the right to irrevocably constitute and appoint a mortgagee or the beneficiary of a trust deed their true and lawful attorney to vote their unit membership in this Association at any and all meetings of the Association and to vest in such mortgagee or beneficiary or his nominee any and all rights, privileges and powers that they have as unit owners under the Certificate of Incorporation and By-Laws of this Association or by virtue of the recorded Condominium Declaration. Such proxy shall become effective upon the filing of a notice by -24- - -~- :..-""'-',.............-;,,o;,.;,'.,~,,;:.....r-;.....;;w:;." '. -. ..--..' -." .;.'...............,,~_._,~--._~...... the mortgagee or beneficiary with the Secretary of the Associa- tion at such time or times as the mortgagee or beneficiary shall deem its security in jeopardy by reason of the failure, neglect or refusal of the Association, the Managing Agent or the unit owners to carry out their duties as set forth in the Condominium Declaration. A release of the mortgage or deed of trust shall operate to revoke such proxy. Nothing herein contained shall be construed to relieve condominium unit owners, as mortgagors, of their duties and obligations as condominium unit owners or to impose upon the mortgagee or beneficiary of the deed of trust the duties and obligations of a unit owner. ARTICLE XY VOTING BY MAIL The Board of Managers may determine that an election for a member or for members of the Board, for an amendment or amendments to the Articles, or for a proposed plan of merger, consolidation, or dissolution be by votes of members by mail. In the event such election be held by mail for a member of the Board of Managers, it shall require for a valid election an affirmative vote of a majority of the votes members are entitled to cast, as defined in Article II, paragraphs 2, 3 and 4. Election by mail for proposed amendments to the Articles or for a proposed plan of merger, consolidation, or dissolution shall require to be valid the affirmative votes of two-thirds of the votes that members are entitled to cast in such an election, as defined in Article II, paragraphs 2, 3 and 4. ARTICLE XYI COMMON ELEMENTS AND RECREATIONAL FACILITIES 1. The major recreational facilities which are common elements are: swimming pool and jacuzzi. 2. New additions of general and limited common elements may be ~ade by the Declarant (as defined by the -25- ,r"" '. Condominium Declaration) or by the Declarant's successors, if permitted by the recorded Condominium Declaration and if the expense for installation of such additions are paid for by the Declarant or the Declarant's successors. New additions of general and limited common elements may be made by the Associa- tion subject to the provisions of Articles IV, paragraph 3(k). A unit owner's ownership interest in any new or existing common elements shall be appurtenant to such unit. In the event of the addition of new common elements, a unit owner's voting power in the Association will not be changed other than to reflect additional unit owners in the event that additional units are added to the condominium complex. In the event of the addition of units, the number of votes which the owners of existing units are entitled to cast shall not be reduced and the number of votes which the owners of the new units shall be entitled to cast shall be computed on the same basis as was \ the number of votes to which the existing unit owners are entitled (as designated in the Condominium Declaration). IN WITNESS WHEREOF, the undersigned initial Board of Managers have hereunto set their hands this day of , 198 . BOARD OF MANAGERS: PERRY A. HARVEY DAVID JONES DANIELLE LONGET -26- The undersigned Secretary of this Association does hereby certify that the above and foregoing By-Laws were duly adopted by the Managers as the By-Laws of said Association on , 198 . (CORPORATE SEAL) ATTEST: Secretary -27- SCHEDULE "An RULES AND REGULATIONS 1. Any common sidewalks, driveways, entrances, halls, stairways and passageways shall not be obstructed or used by any unit owner for any other purpose than ingress to and egress from the units. 2. Except as to the areas termed limited common elements, no article shall be placed on or in any of the general common elements except for those articles of personal property which are the common property of all of the unit owners. 3. Unit owners, members of their families, their guests, residents, tenants or lessees shall not use sidewalks, driveways, entrances, halls, stairways and passageways as play area(s). 4. No vehicle belonging to or under the control of a unit owner or a member of the family or a guest, tenant, lessee or employee of \~ unit owner shall be parked in such manner as to impede or prevent ready access to any entrance to or exit from a building. Vehicles shall be parked within designated parking areas. Any traffic flow markings and signs regulating traffic on the premises shall be strictly observed. Vehicles parked on common elements shall be moved by the vehicle owners whenever necessary in order to permit main- tenance and snow removal. No unused, abandoned or damaged vehicles shall be left on common elements. No car, truck, motorcycle or any other motor vehicle shall be repaired any- where on the condominium property. No person shall live or sleep in any recreational vehicle of any size on the common elements. 5. No work of any kind shall be done upon the exterior building walls or upon the general or limited common elements by any unit owner. Such work is the responsibility of the Association. -28- 6. No owner, resident or lessee shall install wiring for electrical or telephone installations or for any other purpose, nor shall any television or radio antennae, machines or air conditioning units be installed on the exterior of the project, including any part of any balcony or patio, or that protrude through the walls or the roof of the condominium improvements except as may be expressly authorized by the Association. 7. Owners and occupants shall exercise reasonable care to avoid making or permitting to be made loud, disturbing or objectionable noises, and in using or playing or permitting to be used or played musical instruments, radios, phonographs, television sets, amplifiers and any other instruments or devices in such manner as may disturb or tend to disturb owners, tenants or occupants of other units. 8. Disposition of garbage and trash shall be only by the use of garbage disposal units or by use of common trash and garbage facilities. 9. The balconies, terraces, decks or patios, if any, shall be used only for the purposes intended and shall not be used for hanging garments or other articles or for cleaning rugs, household articles or other items. No rugs or other materials shall be dusted from windows, balconies, decks or patios by beating or shaking. Patios and balconies shall be kept free of garbage, debris, trash, bicycles, tires, animal droppings, laundry, or other unsightly storage. 10. The Association assumes no liability for nor shall it be liable for any loss or damage to articles stored in any common or other storage area. 11. Any damage to the general common elements or common personal property caused by the owner or a child.or children of a unit owner or their guests or the guests of a unit owner shall be repaired at the expense of that unit owner. -29- . -30-