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HomeMy WebLinkAboutcoa.lu.ec.Molly Gibson Lodge Condominiumization CASELOAD SUMMARY SHEET Ci ty of Aspen No. 7-'''' Staff: (,.\t-\\~ ::-...., "---" PROJECT NAME, ~c:;.;b:" .~, ~"U~i'~4icrf\ APPLICANT:~f_ ~~!_ Phone: REPRESENTATIVE: 120" ~"l Phone: tll.S. Uoo - 'iYP{ OF APPLICATION : I. GMP/SUBDIVISION/PUD (4 step) (Fee) 1. Conceptual Submission 2. Preliminary Plat 3. Final Plat ($1,840) ($1,120) ($ 560) 11. 'SUBDIVISION/PUD (4 step) 1. Conceptual Submission ($1,290) ($ 830) ($ 560) ./~O.Oo (~l,(l1a) , 2. Preliminary Plat 3. Final Plat y. III. EXCEPTION/EXEMPTION/REZONING (2 step) ,~~"\- ,..~ IV. SPECIAL REVIEW (1 step) M"'....A.... 1. Special Review ($ 465) ,,-,> ' 2. Use Determination 3. Conditional Use REFERRALS: Date Referred: I Iii I V Attorney ~ngineering Dept. -A'ous i ng Water Sanitation District School District -- Mounta i n Be 11 Rocky Mtn. Nat.( State Hgwy. Dep1 Fire Chief Pa rks Holy Cross Electric ~ire Marshall/Building Dept. City E'lectric Other FINAL ROUTI NG: ~- ~torney Anding Da te Rquted: ~10"';~ ' Ath" ""\\ - ~ '<~~ l; .;e, ~. ...... " ......./' , DISPOSITION: CITY P&Z REVIEW: ~ _~p/t()\Je.d lA) ~I 0 (' ~ch'-h o-As. . . (o.-11-n-C'k4- CITY COUNCIL REVIEW: M4 ~'fFrl) \lQ..rl ,J I, 0 C' A:n'"d ;-1-1 c-r\ s:. . I {cdk~ ! t 3. .........- 1. 2. The Building Code violations listed by the Building Department in their memo of February 22, 1984, be corrected to the satisfaction of Jim ~Tilson prior to the sale of any unit or the recording of the plat. The off-street parking area consisting of four (4) spaces to the north of the lodge be retained and maintained so that it is available for use. [ 4. That the standard Housing Authority Employee Dwelling Unit Agreement be ,entered into and recorded and filed with th~, Housing Authority along with a verification of employment. l ~ easement for the existing electrical transformer adjacent ,~o the alley must be supplied and shown on the plat. The on-site areas for trash and utility services should be detailed for and reviewed by the Engineering Department prior to Council review. A condominium plat must be approved by the Engineering Department following the completion of improvements and prior to recordation. 5. 6. 7. A Statement of Subdivision Exception must be recorded which includes the owner's commitment to join future improvement districts. ' 8. A detailed cost accounting of'~reviously expended funds and planned expenditure~. ,',;111 be sul:;r.:.::~::!d for Council review and determination of compliance. 9. Ii" , " The common areas cannot be operated as commercialfClcilities and must be held as general common elements by the' Con'dominium Association. 10. The Condominium Declaration shall be approved as to final form by the City Attorney's Office and recorded. MEllORANDml TO: Aspen City Council FROM: Colette Penne, Planning Office RE: Molly Gibson Lodge Condominiumization DATE: March 19, 1984 LQCATION: Lots 0, P and Q, Block 59, City and Townsite of Aspen (Northwest corner of Hopkins and Garmisch) ZONING: L-3 APPLICANT'S REOUEST: Subdivision exception pursuant to Section 20-23 for the purpose of the condominiumization of the Molly Gibson Lodge. The Lodge will be made a part of the Aspen Ski Lodge condominium association and will be renamed the Aspen Ski Lodge II. REFERRAL COMMENTS: The Building Department/Fire Marshall listed fourteen bUilding code violations that must be improved. The detailed memo is attached. Further, the Zoning Administrator indicates that parking has been provided on the north side of the building but the area does not appear to be plowed or utilized. Also" the applicant submits that approximately $218,000 has been spent in the upgrading of the facility, however, the amount indicated for the valuation of work was $50,000. The Engineering Department asked for the following: "1. Condominiumization should be contingent on recordation of a condominium plat following completion of any improvements. 2. Plans for upgrading of the lodge should be reviewed by this office. Reconstruction of the Smuggler Lodge failed to provide on-site areas for trash and utility services resulting in conflicts with the alley. We would prefer not to see this mistake repeated at the Molly Gibson. 3. The applicant should be required to provide an easement for the existing electric transformer adjacent to the alley. 4. The owners should be required to jOin any future improvement districts per the City Attorney's standard COvenant." " -'" Molly Gibson Lodge Condominiumization March 19, 1984 Page 2 The Housing Office submits that historically, the lodge has provided one employee unit (manager's unit) containing two beds. The unit is approximately 300 sq. ft. and has housed one employee. The applicant has committed to use this unit to house two employees. The Housing Authority recommends that the Molly Gibson Lodge condo- miniumization be approved contingent on the following conditions: 1. That the standard HOusing Authority Employee Dwelling Unit Agreement be entered into and recorded prior to the time of issuance of the bUilding permit and be filed with the Housing Authority. 2. That a verification of employment be completed and filed with the Housing Authority. The City Attorney's Office has the following documentation requirements: 1. A statement of exception will be required if condominiumization is approved, with the usual improvement district requirements; and the following changes and/or additional information needed: 2. Comments on the proposed condomiumization documents will be made after the changes and additions referred to by the applicant in paragraph 4, page 5 of the applicant have been completed. 3. There is no plan of improvements detailing the additional $100,000 that the applicant plans to spend in upgrading the lodge facility as described in paragraph 6, page 3 of the application. 4. Paragraph 5, page 3,of the application refers to the applicant retaining ownership of the deSk, bar, lounge, and conference faCility as a separate commercial unit. We question whether this complies with the intent of Section 20-23(A) (5). The Condo- minium Declaration may eventually handle this. Our intent is to preserve the areas for common use (conferences, etc.). PLANNING OFFICE REVIEW: The Molly Gibson is an L-3 lodge and the condominiumization of it is subject to Section 20-23 of the Municipal Code. Planning Office records show that the present build out on this 9,000 sq. ft. lot is 8376 sq. ft. for an FAR of .93:1. It is the intent of the lodge condominiumization that "the condominium units created shall remain in the Short-term rental market to be used as temporary accommodations available to the general public." Evidence of compliance with this intent is a condominium declaration (which has been submitted) which will be recorded with the Clerk and Recorder's Office. .... -___..........___ n ,-".0 Molly Gibson Lodge Condominiumization March 19, 1984 Page 3 The Sections (a, b and c) of Section 20-23 which limit an owner's personal use of his unit and the assessments to be levied in the case of violation of these limits and the City's rights to require reporting are stipulated verbatim in the Condominium Declaration. One unit (containing two twin beds) of employee housing has been provided for the past 3-year period. This same unit will be maintained for future use, providing two pillows of employee housing. The applicant has submitted an affidavit indicating the following levels of services and amenities provided at the Molly Gibson for the past three years: (a) Continental breakfast. (b) Front desk check in and check out service from 8:00 A.M. to 8:00 P.M. seven days a week during high season. Late arrivals are signed in by the resident manager or a key to the room and a note explaining the room location and time for breakfast are left at the office door. (c) No transportation has been provided. The van service of the Aspen Ski Lodge will be expanded to serve the Molly Gibson if this condominiumization is approved. (d) The front desk times were described above. Check-in time is 3:00 P.M. and check-out time is 10:00 A.M. When guests arrive at the deSk, they are given their room key, signed in and advised of the available amenities and given any additional information. (e) The amenities offered include: (1) Continental breakfast; (2) Outdoor swimming pool; (3) Outdoor jacuzzi; (4) Bar and lounge; (5) Cable T.V., including HBO; (6) Conference room; (7) Daily maid service; and (8) On-site management year-round (reduced hours during off seasons) . The lodge will remain available to the general tourist market and will either be marketed privately or through the ARA. The form of the marketing approach should be submitted for review before final Council approval. The common areas must remain common and will not be diminished in size or quality. The applicant refers to the general common elements -.--.......- . .--,..,....,...- Molly Gibson Lodge Condominiumization March 19, 1984 Page 4 in Item #11 on page 6 of the First Amended Condominium Declaration as "commercial units". The declarant proposes to retain ownership of these areas. The Planning Office wants it to be clear that these general common elements are not commercial units, and should be owned by the Condominium Association. No Commercial Growth Management allotment has ever been given for the square footage or conditional Use approval granted and the units are amenities only for this lodge development. The applicant indicates that approximately $218,000 has been spent in the past year on the upgrading of the faCility. The valuation of work shown on the building permit was $50,000. The Code requires that an amount equal to 30% of the property's assessed value ($98,600) be expended to phYSically upgrade the lodge. In this case, that amount equals $29,580 and the information supplied indicates that the upgrading has exceeded the requirement. A detailed accounting of these improvements will be available at your meeting for your review. The City Council ultimately must accept the information submitted to be proof that the upgrading completed prior to condomin- iumization is sufficient to meet the criteria of Section 20-23 (6) (b). The additional money projected to be spent is over and above that required and will be outlined further by the applicant for Council review. All conditions of Section 20-23 shall be made binding on the applicant, the applicant's successors, heirs, personal representatives and assigns and shall govern the property for the life of the survivor of the present City Council of Aspen plus 21 years. Any modification of this condominiumization shall only be by written agreement to the City Council and the owner or owners of the condominiumized lodge property. The documents creating and governing the condominium shall be modified by the condominium owners only with the prior written approval of the City Council. PLANNING AND ZONIN(J CmllUSSION AND PLANNING OFFICE RECOM~IENDATION: The Planning Office recommends approval of subdivision exception for the purpose of condominiumization of the Molly Gibson Lodge with the following conditions: 1. The BUilding Code violations listed by the BUilding Department in their memo of February 22, 1984, be corrected to the satisfaction of Jim Wilson prior to the sale of any unit or the recording of the plat. 2. The off-street parking area consisting of four (4) spaces to the north of the lodge be retained and maintained so that it is available for use. -- -~'~-'~'--"","-' Molly Gibson Lodge Condominiumization March 19, 1984 Page 5 3. That the standard Housing Authority Employee Dwelling Unit Agreement be entered into and recorded and filed with the Housing Authority along with a verification of employment. 4. An easement for the existing electrical transformer adjacent to the alley must be supplied and shown on the plat. 5. The on-site areas for trash and utility services should be detailed for and reviewed by the Engineering Department prior to Council review. 6. A condominium plat must be approved by the Engineering Department following the completion of improvements and prior to recordation. 7. A Statement of Subdivision Exception must be recorded which includes the owner's commitment to join future improvement dis- tricts. 8. A detailed cost accounting of previously expended funds and planned expenditures shall be submitted for Council review and determination of compliance. 9. The common areas cannot be operated as commercial facilities and must be held as general common elements by the Condominium Association. 10. The Condominium Declaration shall be approved as to final form by the City Attorney's Office and recorded. COUNCIL ACTION: If you concur with the recommendation of the Planning and Zoning Commission and the Planning Office, the appropriate motion is: "I move to approve subdivision exception for the purpose of condominiumization of the Molly Gibson Lodge subject to the following conditions: 1. The Building Code violations listed by the Building Department in their memo of February 22, 1984, be corrected to the satisfaction of Jim Wilson prior to the sale of any unit or the recording of the plat. 2. The Off-street parking area consisting of four (4) spaces to the north of the lodge be retained and maintained so that it is available for use. 3. That the standard Housing Authority Employee Dwelling Unit Agreement be entered into and recorded and filed with the ---~,"' ..~,..._.-..._,~. Molly Gibson Lodge Condominiumization I'larch 19, 1984 Page 6 Housing Authority along with a verification of employment. 4. An easement for the existing electrical transformer adjacent to the alley must be supplied and shown on the plat. 5. The on-site areas for trash and utility services should be detailed for and reviewed by the Engineering Department prior to Council review. 6. A condominium plat must be approved by the Engineering Department following the completion of improvements and prior to recordation. 7. A Statement of Subdivision Exception must be recorded which includes the owner's commitment to jOin future improvement districts. 8. A detailed cost accocl,,~in9 of previously expended funds and planned expenditure,- ~ll be Gut; 'c?d for Council review and determination of compliance. 9. The common areas cannot be operated as commercial facilities and must be held as general common elements by the Condominium Association. 10. The Condominium Declaration shall be apprOved as to final form by the City Attorney's Office and recorded. MEMORANDUM DATE: February 22, 1984 I~:~~ ASPEN I PITKlN CO. PlANHING OfFICE TO: Colette Penne, Planning ~"). FROM: John Ostwald, Building Inspe r '. THROUGH: Jim Wilson, Building Offi . al . RE: Molly Gibson Lodge Condominiumization Fire, Life & Safety Inspection .... The following items are in violation of the applicable codes in force at this time in the City of Aspen: 1) The employee unit lacks an egress window as required by 1~73 Uniform Housing Code, Chapter 8: Every sleeping room below the fourth floor shall have at least one window or exterior door approved for emergency. exit or rescue. Where windows are provided they shall have a sill height not more than 48 inches above the floor. Windows with a net clear openable area of- not less than 5square feet with no dimension less than 22 inches shall be deemed to meet the requirements of this Section provided the sill heights are not bver 48 inches above the floor. 2) The access to the boiler is illegal per Section 1309 of the 1982 Uniform Plumbing Code as adopted by the State of Colorado: Section 1309- Prohibited Locations No water heater which depends on the combustion of fuel for heat shall be installed In any room used or designed to be used for sleep- ing purposes, bathroom. cloth~ closet, Or In any closet or other con-. fined space opening Into 'anY-Nth or bedroOm. 3) There is exposed foam insulation on the boiler room side of the boiler room door which is illegal per section 1717(b)B of the 1979 Uniform Building Code: (b) Specific Requirements. The following requirements shall apply to all uses of foam plastics in or on the walls, ceiling or both, or in attics, roof or floors. crawl spaces or similar areas unless otherwise specifically approved in Section 1717 (c) or by other sections of this code. For trim, see Section n05 (e), I. Foam plastics may be used in the following locations: B. On the room side surface of conforming walls or ceiling or other surfaces referred to in the first sentence of Section 1717 (b). pro- vided the foam plastic is fully protected from the interior of the building by a thermal barrier of Yl-inch gypsum wallboard having a finish rating of not less than 15 minutes or other approved material having an equivalent finish rating a~ determined by V.B.C. Stan- dard No. 43-1. Thermal barriers shall be installed in a manner that they will remain in place for a minimum of 15 minutes under the same test conditions. 4) The electric panel is located illegally in a storage closet in the employee unit per Section 110-16(b) of the 1981 National Electric Code: (b) Clear Spaces. Working space required by this section shall not be used for storage. When normally enclosed live parts are expo&ed for inspection or servicing. the working space, if in a passageway or general open spa~e. shall be suitably guarded. 5) Unless the building is to have a full time manager, the electric panel will become increasingly illegal per Section 240-24(b) of the 1981 National Electric Code: (b) Occupant to Have Ready Access; Each occupant ~hall have ready access to all ovcrcurrent devices protecting the conductors supplying his occupancy. Exception: In a multiple-occupancy building where electric servict! and electrical maintenance arc provided by the building management and where these are under continuous building management supervision, the service overcurrerrt devices and feeder oyercurrent devices supplying mor~ than one occupancy shall be permitted to be accessible to authoriud management personnel only. colette Penne .~ February 22, 1984 ~ Page 2 ..,.,", '".,""~ 6) There is no light in the area housing the electric equipment, which is a violation of section 110-16(e) of the 1981 National Electric Code: ee) illumination. Illumination shall be provided for all working ~ces about service, equipment, switchboards. panel boards, or motor c:antrol centers installed indoors. 7) '1'.'c;-o is only one exit stairway from the second floor in violation of Section 3302(a) of the 1979 Uniform Building Code, as referenced by Chapter 8 of the 1973 Uniform Housing Code: In-all occupancies. noors' above the first story having an occupant load of more than 10 shall have n<:l l.toSS than two exits. 8) The handrails at the interior and exterior do not comply with Section 3305(j) of the 1979 Uniform Building Code: Handrails shall be placed not less than 30 inches nor more than 34 inches above the nosing of treads. They shall be continuous the full length of the stairs and except for private stairways at least one handrail shall ex- lend not less than 6 inches:beyond the top and bottom risers, and ends shall be returned or shall terminate in newel posts or safety terminals. Handrails projecting from a wall shall have a space of not less than l!il. inches between the wall and the handrail. The handgrip portion of hand- rails shall be not less than 11,4 inches nor more than 2 inches in cross-sec- ;3 tional dimension and shall have a smooth surface with no sharp corners. 9) Window openings on the west side were illegal at time of original construction and continue to be based on the 1964 Uniform Building Code, section 1102 *2 in force at time of Certificate of Occupancy: fiRE fiRE RESISTANCE OF OPENINGS IN EXTERIOR I CROUP DESCRIPTlON OF OCCUPANCY ZONE EXTERIOR WALLS WAllS ----- -------,--- ------ 2 hour less thn'n 20 feet Not permitted less th:m 3 [eet , H Ilotpts and apaitlllcllt.hOl,ses 1 1 hour elsewhere Protected less than 20 feet ),'c also Co,}\'cnts, monasteries (each accommodating more than 10 per- Not pcrmitled less than 3 [(.et , Section I sons). ................... 2 1 hour Protected less than 10 f:~!~: 1302 3 ,1 hour less than 5 feet Not permitted less th[lll 3 feet .---.--- - ____.1.. 10) ~ne chainlink fence along the east side is illegal per Section 24-3.7(c) of the Aspen Municipal Code: (c) Fence, hedge or wall. Fences, hedges or walls shall be permitted providing that they shall not exceed six (6) feet above grade, Fences visible from the street shall be constructed of wood, stone, wrought iron or masonry. Plans showing proposed construction, mate- rial, location and height shall be presented to the building inspector before a permit is issued (This was granted a permit by the former city engineer in May of 1968) 11) There are no smoke detectors as required by Section 1210(a) of the 1979 Uniform Building Code: Flre.warnlng and Sprinkler Systems Sec. 12]0. (a) Fire-warning Systems. Every dwelling unit and every guest room in a hotel or lodging house used for sleeping purposes shall be provided with smoke detectors conforming to V.B.C. Standard No. 43-6. In dwelling units, detectors shall be mounted on the ceiling or wall at a !)()int CC;llra1Jy located in the corridor or area giving access to rooms used for sleeping purposes. In an efficiency dwelling unit, hotel sleeping room and in hotel suites, the detector shall be centrally located on the ceiling of the main room or hotel sleeping room. Where sleeping rooms are on an upper level, the dete'ctor shall be placed atthe center of the ceiling directly above t he stairway, All detectors shall be located in accordance with ap- proved manufacturer's instructions. When actuated, the detector shall provide an alarm in the dwelling unit or guest room. Colette Penne cebruary 22, 1984 Page 3 " ."", - -.J 12) fire of the Aspen Municipal Code requires a Section 9-3 (b) (y) alarm system: (y) Section 13,307(a) is hereby amended to read: "Every apartment house, lodging house, dormitory, convent, monastery, rooming house, condominium, or hotel two (2) stories or more in height and containing more than four (4) apartments or guest rooms shall have installed therein an approved automatic or manually operated fire alarm system so designed that all occupants of the building may be warned simultaneously," Ord. No. 13-1977, ~ 3) 13) Section 3802(b)A of the 1979 Uniform Building Lode as referenced by the 1973 Uniform Housing Code, requires a sprinkler system in the basement: A. In every story or basement of all buildings when the floor area exceeds 1500 square feet and there is not provided at least 20 square feet of opening entirely above the adjoining ground level in each 50 lineal feet Dr fraction thereof of exterior wall in the story or base- ment on at least one side of the building. Openings shall have a minimum dimension of not less than 30 inches. Such openings shall be accessible to the fire department from the exterior and shall not be obstructed in a manner that fire fighting or rescue cannot be ac. complished from the exterior. 14) Exit sign in basement confusing; marked erroneously. exiting required per section 3312, 1979 Uniform Building Exit Signs and Illumination Sec. 3312. (a) Exit Illumination. Exits shall ,Qe iJluminated,aLany time the building is occupied with light having an intensity of not less thano'iie footcandle at noor level. ''I' EXCEPTION: Group R, Division) Occupancies. Exit illumination shall be provided with separate circuits or separate sources of power (but not necessarily separate from exit signs) when these are required for exit sign illumination. See Section 3312 (c). (b) Exit Signs. At every required exit doorway and wherever otherwise required to clearly indicate the direction of egress, an exit sign with letters having principal stroke not less than :v. inch wide and at least 6 inches high shall be provided from all areas serving the occupant load specified in this subsection. In interior stairways the noor level leading direct to the ex. '(crior shall be clearly indicated. Exit signs shall be installed in: I. Group A, Division I Occupancies and Groups A, Divisions 2, 2.1, 3 and 4, I and R Division 1 Occupancies with an occupant load of more than 50. 2. All other occupancies serving an oCl;upant load of more than 100. EXCEPTION: Main exterior exit doors which obviously and clearly an; identifiable as exits need not be sign posted when approved by the building nfficia1. Proper Code: -,-' ,_f"'''''-, ~ ~ _'km"o_..~~~~~~~ ~~I~~'T~TION "v~. ~-r&J I '""T-I'")""~"';.Ie 9- ". .N~tJ , f,/l~{1 MAIl.. ,1,001111;$$ PHONE IO/J eNc,. 'Fo<,< 15"5":2... ~ (j~IZ. q~6"'/I101 Joe ADO" ESS IUJ We:61 JiOf~tN~ "'sq 1 ;~i~~-l O~ N~ Q _'WN ~l'l 2 !'-1 J 1.../.:-( ~ rBji.'tJ MAIl.. ADD"ItSS ~ ItO 'v~. 110' ~uJ.5 CONTl'lACTOfll 3 J-I-.o._<> tIA ,,-.j (01-1..,.."" V . 'T ,y~ 'J ARO<JTECT OR OESIGN[" MAll.. ADD"ItSS 4 E"GINEE" MAIl.. AOO"E$$ 5 l..~" 0 ~R MAIl.. ADO"ESS 6 ,"~ 0 F au II.. 0:" G 7 ~0"D<f6. 8 Class of work: DNEW o ADDITION 8"ALTERATION 336t> I o . z " . . o . . o o . " . . O$EE ATTAC1411:0 SHEII:Tj "HONII: '12r-.~~o l..ICENSE NO. 'U'}4. "140NE LICENSE NO. PHONE LICtNSII: NO. 8"ANCH o REPAIR o MOVE o REMOVE Nl.a.\I'J WllJo.lJ.W <.?,.J M,O.jG 'P^~NG, -ro 9 , Describe work: I N.-s-rAc..L.- .), j IDE- Of r,ut(;DttJ4 to Change of use from _ Change of use to _ 11 Valuation of work: $ ~ "100<-'. ~C SPECIAL CONDITIONS: 0- r "~"lICATlOfll ACCEPTED BY p~~y, ~~~Y S'-'2.b~ \ \ NOTICE SEPARATE PERMITS ARE REOUIRED FOR ELECTRICAL, PLUMB, lNG, HEATING, VENTILATING OR AIR CONDITIONING. THIS PERMIT BECOMES NULL AND VOID IF WORK OR CONSTRUC. TION AUTHORIZED IS NOT COMMENCED WITHIN 60 DAYS, OR IF CONSTRUCTION OR WORK IS SUSPENDED OR ABANDONED FDA A rERIOD OF 120 DAYS AT ANY TIME AFTER WORK IS COM- MENCED. I HEREBY CERTIFY THAT I HAVE READ AND EXAMINED THIS APPLICATION AND KNOW THE SAME TO BE TRUE AND CORRECT. ALL PROVISIONS OF LAWS AND ORDINANCES GOVERNING THIS TYPE OF WORK WILL BE COMPLIED WITH WHETHER SPECIFIED HEREIN OR NOT, THE GRANTING OF A PERMIT DOES NOT PRESUME TO GIVE AUTHORITY TO VIOLATE OR CANCEL THE PROVISIONS OF ANY OTHER STATE OR LOCAL LAW REGULATING CO~STRUCTION OR THE PERFORMANCE OF CONSTRUCTION. lLtt 0/i.../. , dlq/<Dl 5IGNATU"ifOFC~ T"rTO" 0" ,,"UTHO"IZEO AGENT (O..Ttl .. "I~ITV T RE.k (1 AT 0 OWNER IF WE" 8UILDER OATt) 5~Oi',}D f' ~ . I N~tt .-sl~, ~arJ A~ PLAN CHECK FEE cl5, 3S 1 PERMIT FEE _:z () .J-' <':.0 Type of Const. Oeeu paney Group Division Size of Bldg_ (Total) Sq. Ft. No. of Stories Max. Occ. Load . Fire Zone Use Fire Sprinklers Zone Required DYes DNo OFFSTREETPARKING SPACES: Covered f Uncovered Required Rec.ivecf Not Required No. of Dwelling Units Special Approvals ZON ING HEALTH DEPT. FIRE DEPT. SOIL REPORT OTHER (Specify) . J"').A-Y PERMIT CK. M.O. ~ ~q po ~q CASH ~40q ~ 8 S' & 8 '" ~. 0' trJ e':::J (; (1) c 5. 0:+ >-t :=. e+Pot:loq:::J e:~o.. l; go." 8. 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"" -. 0 3 '" 0> '" =:l '0 ::r0> 0> 0.. 3;>9: '" '" 0.. '0 '" o 0 .. ;i ... '" ~ "''' '" " " ... '" rD' "'c e.~ ~ ';<: c 0'''' ir3 tt.~ S. :; 0 '" . '" " " '" m '" aq c ... =:l . ::r c 0> 0 ... ... -. ~ ::: - =:l Ol '" ::r=:l ~'" - .., ~'O ~ '" 0.. _. '" '" ~ 0.. .. 0.. o =:l ., " '" 0..... 3 !? -'0 [ .' . 0 0' ~ 3 '0 5'~ ... ... Z~ ... -. p.. ...9 " ~ c -. ... 0 ?-~ S' 9~ :TO :T .. '" =:l '" '" / . ') " , . r j I j 1 , i . . , \, I, " >Ii , 'I II ~ I'i :\1 ~ I , I ., , :!! j 1 1 .. ., ., ! . " .. . '., r LAW OFFICES AUSTIN MCGRATH & JORDAN 600 EAST HOPKINS AVENUE SUITE 205 RONALD D. AUSTIN .J. NICHOLAS MCGRATH..JR WILLIAM R. ..JORDAN m ASPEN, COLORADO 81SI/ AREA COOE 303 TELEPHONE 925-2600 GRAY A. YOUNG FREOERICK F. PEIRCE February 1, 1984 Mayor William Stirling Aspen City Council Members The Aspen Planning and Zoning Commission Re: Molly Gibson Lodge Condominiumization Dear Ladies and Gentlemen: As you all know, it has been the stated policy of the City of Aspen for several years now to encourage the small lodges in Aspen to upgrade their facilities. The lodge condominium conversion ordinance was passed specifically with that in mind and the Aspen Ski Lodge was the first project to go through that process. As a consequence what was the old embarrassing Smuggler Lodge became the Aspen Ski Lodge, a facility of which Aspen has been proud. Although the purchasers of the Aspen Ski Lodge were not successful in their marketing program a couple of years ago, the present project is being put together by a truely professional and successful organization that excels in marketing. David Jones, who was the managing partner in the development of the Aspen Ski Lodge is the owner of the Molly Gibson Lodge. Last year David expended considerable funds improving the Molly Gibson Lodge with the idea that it could perhaps be condominiumized to allow for the payment of the financial obligations attendant to the lodge. That possibility has now presented itself in the form of Resort Investment Corporation and its option to purchase the lodge. They will also improve the lodge even more and together the Aspen Ski Lodge and the Molly Gibson Lodge, to be called the Aspen Ski Lodge II, will be an even greater asset to the Aspen lodging community. In considering this application, please keep in mind that these two fine lodges will continue to be operated t AUSTIN MCGRATH & JORDAN Mayor William Stirling Aspen City Council Members The Aspen Planning and Zoning Commission February 1, 1984 Page 2 as small lodge hotels. They will be operated more efficiently and will be even nicer than they presently are if you vote to approve the condominium conversion. Thank you for your consideration. Sincerely, AUSTIN, McGRATH & JORDAN By RDA/mls ~- MEMORANDUM TO: ~ty Attorney, Paul Taddune ~ty Engineering Dept., Jay Hammond ~sing Office, Jim Adamski ~re Marshall, Jim Wilson FROM: Janet Weinstein, Planning Office RE: Molly Gibson Lodge Condominiumization DATE: February 2, 1984 Attached for your review is the application submitted by Ronald Austin on behalf of Resort Investment Corporation for the condo- miumization of the Molly Gibson Lodge located on the northwest corner of Hopkins and Garmisch. This case has been scheduled for review by the Aspen Planning and Zoning Commission on March 6, 1984. Please review the materials and return your referral comments to Colette Penne of the Planning Office no later than February 21, 1984, in order for Colette to have adequate time to prepare for this case's presentation before the Commission. Thank you. ,.,c.., __ J LAW OFFICES AUSTIN MCGRATH & -.JORDAN 600 EAST HOPKINS AVENUE SUITE 205 RONALO O. AU$TI N J. NICHOLAS MCGRATH, JR WILLIAM R. JORDAN In ASPEN, COLORAOO SI6l1 AREA COOE 303 TELEPHONE 925-2600 GRAY A. YOUNG F'REDERICK F. PEtRCE February 1, 1984 Mayor William Stirling Aspen City Council Members The Aspen Planning and Zoning Commission Re: Molly Gibson Lodge Condominiumization Dear Ladies and Gentlemen: As you all know, it has been the stated policy of the City of Aspen for several years now to encourage the small lodges in Aspen to upgrade their facilities. The lodge condominium conversion ordinance was passed specifically with that in mind and the Aspen Ski Lodge was the first project to go through that process. As a consequence what was the old embarrassing Smuggler Lodge became the Aspen Ski Lodge, a facility of which Aspen has been proud. Although the purchasers of the Aspen Ski Lodge were not successful in their marketing program a couple of years ago, the present project is being put together by a truely professional and successful organization that excels in marketing. David Jones, who was the managing partner in the development of the Aspen Ski Lodge is the owner of the Molly Gibson Lodge. Last year David expended considerable funds improving the Molly Gibson Lodge with the idea that it could perhaps be condominiumized to allow for the payment of the financial obligations attendant to the lodge. That possibility has now presented itself in the form of Resort Investment Corporation and its option to purchase the lodge. They will also improve the lodge even more and together the Aspen Ski Lodge and the Molly Gibson Lodge, to be called the Aspen Ski Lodge II, will be an even greater asset to the Aspen lodging community. In considering this application, please keep in mind that these two fine lodges will continue to be operated AUSTIN MCGRATH & JORDAN Mayor William Stirling Aspen City Council Members The Aspen Planning and Zoning Commission February 1, 1984 Page 2 as small lodge hotels. They will be operated more efficiently and will be even nicer than they presently are if you vote to approve the condominium conversion. Thank you for your consideration. Sincerely, AUSTIN, McGRATH & JORDAN By RDA/mls LAW OFFICES AUSTIN MCGRATH & JORDAN 600 EAST HOPKINS AVENUE SUITE 205 RONALD D. AUSTIN .J. NICHOLAS MCGRATH, .JR. WILLIAM R. .JORDAN m ASPEN, COLORADO SI611 AREA CODE 303 TELEPHONE 92S-2600 GRAY A. YOUNG FREDERICK F. PEIRCE ASPEN CITY COUNCIL AND ASPEN PLANNING AND ZONING COMMISSION APPLICATION FOR CONDOMINIUMIZATION OF MOLLY GIBSON LODGE PURSUANT TO ~20-23 NAME OF APPLICANT: Resort Investment Corporation is a wholly owned subsidiary of U. S. Capital Corporation, both Delaware corporations, whose principal offices are located at 1400 Main Street, Columbia, SC 29211. LEGAL COUNSEL: Austin, McGrath & Jordan, 600 E. Hopkins, Suite 205, Aspen, Colorado 81611, Ronald D. Austin and Frederick F. Peirce. PURPOSE OF APPLICATION: This application is made pursuant to ~20-23 of the Municipal Code of the City of Aspen for condominiumization of the Molly Gibson Lodge located on the Northwest corner of Hopkins and Garmisch (Lots 0, P and Q, Block 59, City and Townsite of Aspen, Colorado). If approved, the Molly Gibson will be renamed the Aspen Ski Lodge II and made a part of that condominium association as an expansion of the existing Aspen Ski Lodge. INTRODUCTION: The Molly Gibson Lodge has been owned by David F. Jones since 1975 and has been operated as a lodge for visitors to Aspen for at least nine years. The applicant has entered into an option agreement to purchase the Molly Gibson Lodge and a condition of the agreement is approval of condominiumization of the Molly Gibson by the City of Aspen. The applicant also has entered into an option agreement to purchase the Aspen Ski Lodge located directly across the alley from the Molly Gibson on the Southwest corner of Main Street and Garmisch Street. The Aspen Ski Lodge was condominiumized in December, 1980. Applicant desires to sell AUSTIN MCGRATH & JORDAN condominium units in both the Aspen Ski Lodge and the Molly Gibson (if approved) and operate both as condominium hotels, and to combine the benefits of both into one condominium association. This will allow for more successful marketing of the conference facilities recently put in the Molly Gibson Lodge and for a more efficient lodge operation of both facilities. Each lodge will retain its own on-site front desk operation and will have on-site amenities as are described herein. ABOUT THE APPLICANT: Resort Investment Corporation and its parent, U.S. Capital Corporation, specialize in the construction and/or conversion of resort property into condominiums. The companies are based in Columbia, South Carolina and most of their development experience has been in the East, including Hilton Head Island and Atlantic City, New Jersey. They have recently acquired options on properties in Colorado (including the Holiday Inn at Buttermilk) and are interested in this area. The companies deal only in what they consider to be first class properties and projects. COMPLIANCE WITH CODE PROVISIONS: 1. Short Term Rental Market. The applicant has committed to the tourist market rental provisions required by ~ 20-23 (A) (l) of the Municipal Code. This commitment is reflected in the draft of the proposed Condominium Declaration attached hereto, the final of which will be recorded in the records of the Clerk and Recorder of Pitkin County, Colorado upon approval. 2. Emplotee Housing. As set forth in the attached affidavit o. David F. Jones, the Molly Gibson Lodge has historically provided one employee unit (manager's unit) containing two twin beds. This unit is approximately 300 square feet and is located at the west end of the north wing of the lodge on the lower level. This unit has been used in the past by only one employee. Applicant will commit to continue to use this unit for housing of two employees. This unit will be depicted on the condominium map when prepared. 3. Services and Amenities. The three year performance level of services and amenities available to the guests of the Molly Gibson Lodge is set forth in the attached affidavit of David F. Jones. The applicant agrees to provide, at a minimum, services consistent in quality and quantity to those provided during the high seasons for the -2- AUSTIN MCGRATH & JORDAN three years prior to this application. In addition, applicant agrees to provide or contract for on-site management from 8:00 a.m. to 8:00 p.m. seven days a week during the high season and to provide or contract for on call services twenty-four hours a day consistent with those services provided by the lodge for the previous three years. 4. Availabilit of Units to General Tourist Market. The Mo y Gi son units are genera y availa Ie to the tourist market and Applicant agrees to keep the condominium units (if approved) available to the general tourist market. It is the applicant's standard procedure to operate their projects as hotels or lodges. 5. COUDI1on Areas. The COUDI1on areas currently available to lodge guests include an outdoor swiUDI1ing pool and jacuzzi surrounded by planters and a fence; a wood deck that borders the north side of the pool; and, a conference facility (approximately 650 square feet) and a lounge/bar area with a fireplace (approximately 1750 square feet) located in the lower level of the interior of the building. The conference room and lounge/bar area were substantially upgraded as evidenced by the attached affidavit of David F. Jones. These areas shall remain areas for COUDI1on use although the Applicant plans to retain ownership of the desk, bar and lounge, and conference facility as a separate cOUDI1ercial unit. This is done so that the manager can operate these facilities in an efficient and businesslike way. Owners of units (in both buildings) will be able to use the facilities the same as guests at present with no charge except for the purchase of drinks and/or food. These areas shall be maintained in a manner consistent with its previous character and shall not be diminished in size or quality by applicant. 6. Lodge Upgrade. Within the past several months David F. Jones has spent approximately $218,000.00 upgrading the Molly Gibson Lodge. The attached affidavit of Mr. Jones documents the actual facilities upgraded by these expenditures. The result is a substantial upgrading of the lodge appearance and of its guest facilities in compliance with the spirit and intent of ~20-23 (A) (6) (b) of the ordinance. Although no further upgrading should be necessary, applicant will spend at lease an additional $100,000.00 in upgrading the guest rooms. In connection herewith, the current assessed value of the Molly Gibson Lodge is $98,600.00, less than one-half of the amount expended by Mr. Jones to upgrade the lodge. -3- AUSTIN MCGRATH & JORDAN 7. binding effect Municipal Code Binding Effect. The applicant of the conditions set forth in as required by ~20-23(B). agrees to the ~20-23 of the ADDITIONAL CONSIDERATIONS: 1. Parking. The Molly Gibson Lodge does not have, nor has it ever had, off street parking for its quests. However, this has never posed a problem since most guests arrive by plane or other means of public transportation and the lodge is located within easy walking distance of downtown (4 blocks from the Hyman Avenue Mall). In addition, the lodge is one block from Main Street and thus, the bus route for free busses to Snowmass, Highlands and downtown, as well as the County bus routes. The current van service provided by the Aspen Ski Lodge will be expanded and made available to guests at the Aspen Ski Lodge II as well. 2. Trash Removal. The dumpster for the Molly Gibson Lodge is located in the alley between the lodge and the Aspen Ski Lodge and is easily accessed by the alley which is maintained by the city. Applicant sees no reason why this should be changed. DOCUMENTATION ATTACHED: 1. Proof of Ownership. David F. Jones is the current owner of the Molly Gibson Lodge and copies of his deeds, recorded May 27, 1975 in Book 299 at Page 97 and October 19, 1978 in Book 356 at Page 707, respectively of the real property records in Pitkin County, Colorado, are attached. An Option Agreement to sell the lodge to applicant has been entered into and if condominiumization is approved, applicant will purchase the lodge. 2. Improvement Survey. An improvement survey for the property accompanies this application. 3. Site Inventory. The improvement survey attached hereto depicts the configuration and location of the exterior cornman areas and amenities. The bar/lounge area is located in the lower level of the west wing and the conference center is in the lower level of the north wing of the building. 4. Condominium Documents. Drafts of the proposed condominium documents, consisting of the first amended Condominium Declaration for the Aspen Ski Lodge Condominiums -4- " ", ~ AUSTIN MCGRATH & JORDAN and the first supplement thereto; the Articles of Incorporation for the Aspen Ski Lodge Condominium Association; and, the first amended Bylaws of the Aspen Ski Lodge Condominium Association, accompany this application. Some changes and additions will likely be made to conform to this condominiumization. 5. Affidavit of David F. Jones. The affidavit of David F. Jones attached hereto describes the services previously provided as required by ~20-23(A)(3) and further describes the expenditures and improvements involved in the upgrade of the lodge as required by ~20-23(A)(6)(b) of the Municipal Code. Dated: February 2, 1984 AUSTIN, McGRATH & JORDAN (\--.-/ . V /7') /' ....-:-/':;/,-~~~-".+,,,..~ By / ..../ /;,,:,_ . .,~, "'i:.' ,-~- / Ronald D. Austin / -- Frederick F. Peirce 600 E. Hopkins Ave. Suite 205 Aspen, CO 81611 \ ATTORNEYS FOR APPLICANT -5- , , ,~" < X,_' ....; STATE OF COLORADO ) ) ss. COUNTY OF PITKIN ) AFFIDAVIT OF DAVID F. JONES CONCERNING SERVICES AND UPGRADE AT MOLLY GIBSON LODGE The affiant, DAVID F. JONES, being first duly sworn, upon oath states as follows: 1. I am the owner of the Molly Gibson Lodge located on Lots 0, P and Q, Block 59, City and Townsite of Aspen, and have been since May, 1975. 2. amenities for three years: We have provided the following services and guests of the Molly Gibson Lodge for the last a. Continental Breakfast. b. Front desk check in and check out service from 8:00 a.m. to 8:00 p.m. seven days a week during the high season. Check out time is 10:00 a.m. and check-in time is 3:00 p.m. When guests arrive at the desk, they are given their room key, signed in and advised of the available amenities and given additional information to enhance their visit. Late arrivals, after the desk is closed, are signed in by the resident manager or, if the resident manager is out, a key to the room and a note explaining the location of the room and the time for breakfast are left on the office door. c. No transportation has been provided for guests by the Lodge in the past three years. d. Amenities available to the guests provided by the Lodge have included: 1) Continental breakfast 2) Outdoor swimming pool 3) Outdoor jacuzzi (installed in 1983) 4) Bar and lounge (bar installed in 1983--replaces wine-tasting, sherry and champagne parties) 5) Cable TV, including HBO 6) Conference room (installed in 1983) 7) Daily maid service ,"", ..,-# :) e. On-site management of excellent quality year-round, with reduced hours during offseasons. 3. The Lodge has provided one manager's unit in the past for employee housing, approximately 300 square feet in size, containing two twin beds (two pillows). 4. From October, 1982 through August, 1983, I have spent approximately $218,000.00 in upgrading the Molly Gibson Lodge. Included in the upgrading were: a. Remodeling of fireside lounge (common area) and installation of a new bar for guests in the lounge, with a full liquor license. b. Installation of new conference room and furniture. c. Painting of all doors and frames. d. Installation of additional landscaping, including new planters around jacuzzi. e. Remodeling and refurbishing upstairs guest rooms. f. Improving maintenance systems. g. Installation of outdoor jacuzzi. Back up documentation can be provided if it is deemed necessary. STATE OF COLORADO ) ) S8. COUNTY OF PITKIN ) January, :sJ- Subscribed and sworn to before me this~ day of 1984 by David F. Jones. WITNESS my hand and official seal. My cOr:Ir.1ission expires: Mv CommISSIon eXPires February 19,1985 (r(ftV:C'A'i t );/{;., f ~ Notary P~lic ' Address: 6G800~lVF- sunt 205 ASPEN, alDRADO 11611 -2- "'""- :) '".~ LAW OFFICES AUSTIN MCGRATH & JORDAN BOO EAST HOPKINS AVENUE SUITE 20S RONALD D. AUSTIN J. NICHOLAS MCGRATH, JR. WILLIAM R. JORDAN m ASPEN, COLORADO 81611 AREA COOE 303 TELEPHONE 92S-2BOO GRAY A. YOUNG FREDERICK F. PEIRCE Harch 1, 1984 Aspen City Council The Aspen Planning 130 S. Galena Aspen, CO 81611 Members and Zoning Commission Re: Molly Gibson Lodge Condominiumization Dear Ladies and Gentlemen: As you know, an application for condominiumization of the Molly Gibson Lodge was submitted on behalf of our client, Resort Investment Corporation, on February 2, 1984. We have recently had the opportunity to review the comments and concerns voiced by the referring agencies involved with the application and note that some confusions and misunderstandings have arisen. The purpose of this letter is to attempt to clarify these confusions and, where appropria te, to modify the record as set forth in the application. 1. Money Spent to Upgrade Lodge. Numbered paragraph 6 on page 3 of the referenced application states that David Jones, the current owner of the Molly Gibson Lodge, spent approximately $218,000.00 upgrading the Lodge within the past several months. In a memorandum dated February 8, 1984, Bill Drueding noted that the building permit issued to David Jones on April 22, 1983 valued the work to be performed thereunder at approximately $50,000.00 and was concerned about the discrepancy. The reason for the discrepancy is that a considerable portion of the $218,000.00 spent by David Jones was used to purchase and install carpet, wall paint, lighting fixtures, etc. which is not the subject of a building permit. In addition, approximately $75,000.00 to $85,000.00 of the $218,000.00 total was spent on furniture, furnishings, appliances, linens and the like, all of which, although not the subject of the building permit, resulted in a significant upgrading of the lodge accommodations. Therefore, although the $50,000.00 estimate may have been somewhat lower than the actual hard construction costs, the difference is minor. .-.. :) '-' AUSTIN MCGRATH & JORDAN Aspen City Council Members The Aspen Planning and Zoning Commission March 1, 1984 Page 2 2. Plan of Improvements. In connection with the discussion regarding the amount of money spent by Mr. Jones in upgrading the Lodge, it appears that the referenced application created some confusion with respect to future improvements. Both the city attorney and the engineering departments voiced concern that there was no plan of improvements attached to the application. This is because, for purposes of the municipal code (~20-23(A)(6)(b)), the applicant is relying on prior money spent to upgrade the lodge to qualify for condominiumization. Although it is true that the applicant plans to spend at least another $100,000.00 in the lodge (some of which will be spent bringing the building into compliance with the city building code), the applicant is not relying on these expenditures to obtain condominiumization approvals. Consequently, no plan of improvements is necessary at this time, although the applicant will obviously have to comply with building code provisions in order to obtain a building permit prior to commencing such improvements. 3. Parking. The referenced application states that there has never Deen any off-street parking at the Molly Gibson Lodge. Mr. Drueding, in his memorandum, correctly points out that this is incorrect. In fact, four parking spaces are available on the north side of the property, adj acent to the alley. According to David Jones, those spaces are never used and are not even maintained in the winter, hence his statement that there was no parking. Nevertheless, they do exist and the applicant will continue to preserve them and will maintain them in the wintertime. 4. COlIlIIlercial Units. The City Attorney has raised some concern regarding the retention by the applicant of ownership of the conference area, bar, lounge and desk as commercial units. In effect, the City Attorney seems concerned that this may diminish the size or quality of the common areas. Numbered paragraph 5 on page 3 of the application describes the conference area and bar/lounge area as "colIlIIlon areas currently available to lodge guests". It is obvious, however, that the bar/lounge is not a self-service bar. Rather, pursuant to its liquor license, it is a bar operated by David Jones as the owner of the lodge. Hence, it is available to the guests as a service. Likewise, the conference facility is reserved through the lodge management. Therefore, these areas are availab Ie to Lodge gues ts as common areas. subj ect to Lodge management. Obvious ly, pursuant to its liquor license, the Lodge cannot refuse ;' .... ""' - ..., AUSTIN MCGRATH & JORDAN Aspen City Council Members The Aspen Planning and Zoning Commission March 1, 1984 Page 3 service in the bar to members of the general public. In addition the Lodge has, since the bar/lounge and conference facility were established, made these facilities available to individuals and groups who were not Lodge residents at certain times when such use did not conflict with the operation of the lodge and the comfort and convenience of its guests. Therefore, these areas have not been strictly common areas available only for the use of Lodge guests as the application may have inferred. It is the applicant's intention to continue to keep these areas available for use of lodge guests and condominium owners. It will retain ownership of the areas as commercial units to effectively provide for management and maintenance of the facilities. In addition, it will use the conference facilities and bar/lounge amenity as marketing tools for condominium sales and, since they will retain an interest in the project, for continuing reservations and bookings. They will not advertise or market these facilities for use by members of the general public who are not owners or guests of the Lodge. Perhaps it should also be noted that, since these units will be available as a common area for all guests and lodge owners, but owned by the applicant, the owners and guests will derive the benefit of the use of the areas without the burden of the costs of administrating and maintaining the areas. This scheme will not diminish the size or quality or nature of these areas as common areas since it will, in effect, continue the operation of these areas as it exists now. In addition, it obviously is loyal to the intent of the code to continue to maintain these areas in a manner consistent with their previous character. 5. Building, Housing and Related Code Violations. The building inspector detailed fourteen existing violations of various code provisions at the Lodge. The applicant is willing to rectify these violations. as a condition of condominiumization approval, even though it creates additional costs to the applicant. - -- :) AUSTIN MCGRATH & JORDAN Aspen City Council Members The Aspen Planning and Zoning Commission March I, 1984 Page 4 We hope this has helped to eliminate some of the concern and confusion surrounding the referenced application. Sincerely, AUSTIN, \ By FFP/st cc: Resort Investment Corporation ",.,- ~ ...,/ LAW OF"FICES AUSTIN MCGRATH & JORDAN 600 E....ST HOPKINS ....VENUE SUITE 205 RONALD O. AUSTIN J. NICHOLAS MCGRATH, JR. WILLIAM R. JORDAN III ASPEN. COLORADO 81611 AREA CODE 303 TELEPHONE 925-2600 GRAY A. YOUNG FREDERICK F. PEIRCE ASPEN CITY COUNCIL AND ASPEN PLANNING AND ZONING COMMISSION APPLICATION FOR CONDOMINIUMIZATION OF MOLLY GIBSON LODGE PURSUANT TO ~20-23 NAME OF APPLICANT: Resort Investment Corporation is a wholly owned subsidiary of U. S. Capital Corporation, both Delaware corporations, whose principal offices are located at 1400 Main Street, Columbia, SC 29211. LEGAL COUNSEL: Austin, McGrath & Jordan, 600 E. Hopkins, Suite 205, Aspen, Colorado 81611, Ronald D. Austin and Frederick F. Peirce. PURPOSE OF APPLICATION: This application is made pursuant to ~20-23 of the Municipal Code of the City of Aspen for condominiumization of the Molly Gibson Lodge located on the Northwest corner of Hopkins and Garmisch (Lots 0, P and Q, Block 59, City and Townsite of Aspen, Colorado). If approved, the Molly Gibson will be renamed the Aspen Ski Lodge II and made a part of that condominium association as an expansion of the existing Aspen Ski Lodge. INTRODUCTION: The Molly Gibson Lodge has been owned by David F. Jones since 1975 and has been operated as a lodge for visitors to Aspen for at least nine years. The applicant has entered into an option agreement to purchase the Molly Gibson Lodge and a condition of the agreement is approval of condominiumization of the Molly Gibson by the City of Aspen. The applicant also has entered into an option agreement to purchase the Aspen Ski Lodge located directly across the alley from the Molly Gibson on the Southwest corner of Main Street and Garmisch Street. The Aspen Ski Lodge was condominiumized in December, 1980. Applicant desires to sell ". .". ;#'. '--" ...."./ AUSTIN MCGRATH & JORDAN condominium units in both the Aspen Ski Lodge and the Molly Gibson (if approved) and operate both as condominium hotels, and to combine the benefits of both into one condominium association. This will allow for more successful marketing of the conference facilities recently put in the Molly Gibson Lodge and for a more efficient lodge operation of both facilities. Each lodge will retain its own on-site front desk operation and will have on-site amenities as are described herein. ABOUT THE APPLICANT: Resort Investment Corporation and its parent, U.S. Capital Corporation, specialize in the construction and/or conversion of resort property into condominiums. The companies are based in Columbia, South Carolina and most of their development experience has been in the East, including Hilton Head Island and Atlantic City, New Jersey. They have recently acquired options on properties in Colorado (including the Holiday Inn at Buttermilk) and are interested in this area. The companies deal only in what they consider to be first class properties and projects. COMPLIANCE WITH CODE PROVISIONS: 1. Short Term Rental Market. The applicant has committed to the tourist market rental provisions required by ~20-23(A) (1) of the Municipal Code. This cOlIllIlitment is reflected in the draft of the proposed Condominium Declaration attached hereto, the final of which will be recorded in the records of the Clerk and Recorder of Pitkin County, Colorado upon approval. 2. Emplofee Housing. As set forth in the attached affidavit 0 - David F. Jones, the Molly Gibson Lodge has historically provided one employee unit (manager's unit) containing two twin beds. This unit is approximately 300 square feet and is located at the west end of the north wing of the lodge on the lower level. This unit has been used in the past by only one employee. Applicant will commit to continue to use this unit for housing of two employees. This unit will be depicted on the condominium map when prepared. 3. Services and Amenities. The three year performance level of services and amenities available to the guests of the Molly Gibson Lodge is set forth in the attached affidavit of David F. Jones. The applicant agrees to provide, at a m~n~mum, services consistent in quality and quantity to those provided during the high seasons for the -2- " ,'; AUSTIN MCGRATH & JORDAN * three years prior to this application. In addition, applicant agrees to provide or contract for on-site management from 8:00 a.m. to 8:00 p.m. seven days a week during the high season and to provide or contract for on call services twenty-four hours a day consistent with those services provided by the lodge for the previous three years. 4. Availabilit of Units to General Tourist Market. The Mol y G1 son units are genera y availa Ie to the tourist market and Applicant agrees to keep the condominium units (if approved) available to the general tourist market. It is the applicant's standard procedure to operate their projects as hotels or lodges. 5. Common Areas. The common areas currently available to lodge guests include an outdoor swimming pool and jacuzzi surrounded by planters and a fence; a wood deck that borders the north side of the pool; and, a conference facility (approximately 650 square feet) and a lounge/bar area with a fireplace (approximately 1750 square feet) located in the lower level of the interior of the building. The conference room and lounge/bar area were substantially up gr aded as ev' ti--tty --t:he- at t ache.d...a.ffiAiPlll..Q.f.Jlaxi.d..E..." ,," _, ese areas shall remain areas for common use although the Applicant plans to retain ownership of the desk, I bar and lounge, and conference facility as a separate".,_-J commercial unit. is is one--so- that-nre-manager--can opera e es acilities in an efficient and businesslike way. Owners of units (in both buildings) will be able to use the facilities the same as guests at present with no charge except for the purchase of drinks and/or food. These areas shall be maintained in a manner consistent with its previous character and shall not be diminished in size or quality by applicant. 6. Lodge Upgrade. Within the past several months David F. Jones has spent approximately $218,000.00 upgrading the Molly Gibson Lodge. The attached affidavit of Mr. Jones documents the actual facilities upgraded by these expenditures. The result is a substantial upgrading of the ~ lodge appearance and of its guest facilities in compliance f'.- ~ith the spirit and intent of ~20-23(A) (6) (b) of the ,,,\,~ ordinance. Al though no further upgrading should be ~-(' necessary, applicant will spend at lease an additional Q.:;~ $100.000.00 in upgrading the guest rooms. In connection ':therewith. the current assessed value of the Molly Gibson v' Lodge is $98,600.00. less than one-half of the amount expended by Mr. Jones to upgrade the lodge. -3- ,......"~ AUSTIN MCGRATH & JORDAN 7 . binding effect Municipal Code Binding Effect. The applicant of the conditions set forth in as required by ~20-23(B). agrees to the ~20-23 of the ADDITIONAL CONSIDERATIONS: 1 1. Parking. The Molly Gibson Lodge does not have, nor has it ever had, off street parking for its quests. However, this has never posed a problem since most guests arrive by plane or other means of public transportation and the lodge is located within easy walking distance of downtown (4 blocks from the Hyman Avenue Mall). In addition, the lodge is one block from Main Street and thus, the bus route for free busses to Snowmass, Highlands and downtown, as well as the County bus routes. The current van service provided ---;>by the Aspen Ski Lodge will be expanded and made available to guests at the Aspen Ski Lodge II as well. 2. Trash Removal. The dumpster for the Molly Gibson Lodge is located in the alley between the lodge and the Aspen Ski Lodge and is easily accessed by the alley which is maintained by the city. Applicant sees no reason why this should be changed. DOCUMENTATION ATTACHED: 1. Proof of Ownership. David F. Jones is the current owner of the Molly Gibson Lodge and copies of his deeds, recorded May 27, 1975 in Book 299 at Page 97 and October 19, 1978 in Book 356 at Page 707, respectively of the real property records in Pitkin County, Colorado, are attached. An Option Agreement to sell the lodge to applicant has been entered into and if condominiumization is approved, applicant will purchase the lodge. 2. Improvement Survey. An improvement survey for the property accompanies this application. 3. Site Inventory. The improvement survey attached hereto depicts the configuration and location of the exterior common areas and amenities. The bar/lounge area is located in the lower level of the west wing and the conference center is in the lower level of the north wing of the building. 4. Condominium Documents. Drafts of the proposed condominium documents, consisting of the first amended Condominium Declaration for the Aspen Ski Lodge Condominiums -4 - ..-'., ....... " .j AUSTIN MCGRATH & JORDAN and the first supplement thereto; the Articles of Incorporation for the Aspen Ski Lodge Condominium Association; and, the first amended Bylaws of the Aspen Ski Lodge Condominium Association, accompany this application. Some changes and additions will likely be made to conform to this condominiumization. 5. Affidavit of David F. Jones. The affidavit of David F. Jones attached hereto describes the services previously provided as required by ~20-23(A)(3) and further describes the expenditures and improvements involved in the upgrade of the lodge as required by ~20-23(A)(6)(b) of the Municipal Code. Dated: February 2, 1984 AUSTIN, McGRATH & JORDAN ~ ~. By_ Rona D. Austin Frederick F. Peirce 600 E. Hopkins Ave. Suite 205 Aspen, CO 81611 ATTORNEYS FOR APPLICANT -5- ,,", -. .-' LAW OFFICES AUSTIN MCGRATH & ,JORDAN 600 EAST HOPKINS AVENUE SUITE 205 RONALD O. AUSTIN J. NICHOLAS MCGRATH, ..JR. WILLIAM R. ..JORDAN m ASPEN, COLORADO SIBil AREA CODE 303 TELEPHONE 925-2600 GRAY A. YOUNG FREDERJCK F. PEIRCE Harch 1, 1984 Aspen City Council The Aspen Planning 130 S. Galena Aspen, CO 81611 Members and Zoning Commission Re: Molly Gibson Lodge Condominiumization Dear Ladies and Gentlemen: As you know, an application for condominiumization of the Molly Gibson Lodge was submitted on behalf of our client, Resort Investment Corporation, on February 2, 1984. We have recently had the opportunity to review the comments and concerns voiced by the referring agencies involved with the application and note that some confusions and misunderstandings have arisen. The purpose of this letter is to attempt to clarify these confusions and, where appropriate, to modify the record as set forth in the application. 1. Money Spent to Upgrade Lodge. Numbered paragraph 6 on page 3 of the referenced application states that David Jones, the current owner of the Molly Gibson Lodge, spent approximately $218,000.00 upgrading the Lodge within the past several months. In a memorandum dated February 8, 1984, Bill Drueding noted that the building permit issued to David Jones on April 22, 1983 valued the work to be performed thereunder at approximately $50,000.00 and was concerned about the discrepancy. The reason for the discrepancy is that a considerable portion of the $218,000.00 spent by David Jones was used to purchase and install carpet, wall paint, lighting fixtures, etc. which is not the subject of a building permit. In addition, approximately $75,000.00 to $85,000.00 of the $218.000.00 total was spent on furniture, furnishings, appliances, linens and the like, all of which, although not the subject of the building permit, resulted in a significant upgrading of the lodge accommodations. Therefore, although the $50,000.00 estimate may have been somewhat lower than the actual hard construction costs, the difference is minor. "....""\ ......""" AUSTIN MCGRATH & JORDAN Aspen City Council Members The Aspen Planning and Zoning Commission March 1, 1984 Page 2 2. Plan of Improvements. In connection with the discussion regarding the amount of money spent by Mr. Jones in upgrading the Lodge, it appears that the referenced application created some confusion with respect to future improvements. Both the city attorney and the engineering departments voiced concern that there was no plan of improvements attached to the application. This is because, for purposes of the municipal code (~20-23(A) (6) (b)), the applicant is relying on prior money spent to upgrade the lodge to qualify for condominiumization. Although it is true that the applicant plans to spend at least another $100,000.00 in the lodge (some of which will be spent bringing the building into compliance with the city building code), the applicant is not relying on these expenditures to obtain condominiumization approvals. Consequently, no plan of improvements is necessary at this time, although the applicant will obviously have to comply with building code provisions in order to obtain a building permit prior to commencing such improvements. 3. Parking. The referenced application states that there has never Deen any off-street parking at the Molly Gibson Lodge. Mr. Drueding, in his memorandum, correctly points out that this is incorrect. In fact, four parking spaces are available on the north side of the property, adjacent to the alley. According to David Jones, those spaces are never used and are not even maintained in the winter, hence his statement that there was no parking. Nevertheless, they do exist and the applicant will continue to preserve them and will maintain them in the wintertime. 4. Commercial Units. The City Attorney has raised some concern regarding the retention by the applicant of ownership of the conference area, bar, lounge and desk as commercial units. In effect, the City Attorney seems concerned that this may diminish the size or quality of the common areas. Numbered paragraph 5 on page 3 of the application describes the conference area and bar/lounge area as "common areas currently available to lodge guests". It is obvious, however, that the bar/lounge is not a self-service bar. Rather, pursuant to its liquor license, it is a bar operated by David Jones as the owner of the lodge. Hence, it is available to the guests as a service. Likewise, the conference facility is reserved through the lodge management. Therefore, these areas are available to Lodge guests as common areas, subj ect to Lodge management. Obviously, pursuant to its liquor license, the Lodge cannot refuse """- '-" AUSTIN MCGRATH & JORDAN Aspen City Council Members The Aspen Planning and Zoning Commission March 1, 1984 Page 3 service in the bar to members of the general public. In addition the Lodge has, since the bar/lounge and conference facility were established, made these facilities available to individuals and groups who were not Lodge residents at certain times when such use did not conflict with the operation of the lodge and the comfort and convenience of its guests. Therefore, these areas have not been strictly common areas available only for the use of Lodge guests as the application may have inferred. It is the applicant's intention to continue to keep these areas available for use of lodge guests and condominium owners. It will retain ownership of the areas as commercial units to effectively provide for management and maintenance of the facilities. In addition, it will use the conference facilities and bar/lounge amenity as marketing tools for condominium sales and, since they will retain an interest in the project, for continuing reservations and bookings. They will not advertise or market these facilities for use by members of the general public who are not owners or guests of the Lodge. Perhaps it should also be noted that, since these units will be available as a common area for all guests and lodge owners, but owned by the applicant, the owners and guests will derive the benefit of the use of the areas without the burden of the costs of administrating and maintaining the areas. This scheme will not diminish the size or quality or nature of these areas as common areas since it will, in effect, continue the operation of these areas as it exists now. In addition, it obviously is loyal to the intent of the code to continue to maintain these areas in a manner consistent with their previous character. 5. and Related Code Violations. The building inspector eta~ e ourteen ex~st~ng v~o ations of various code provisions at the Lodge. The applicant is willing to rectify these violations, as a condition of condominiumization approval, even though it creates additional costs to the applicant. ,..", ....,,- AUSTIN MCGRATH & JORDAN Aspen City Council Members The Aspen Planning and Zoning Commission March 1, 1984 Page 4 We hope this has helped to eliminate some of the concern and confusion surrounding the referenced application. Sincerely, AUSTIN, JORDAN -~ By FFP/st cc: Resort Investment Corporation PAtrL /ilJJ1J Ie see,,'!:9 ~/' I 07 4fJ - !l s: ttJo -- I . J #;(}?)?:> / cTr1 _ a-v-~ / v I; 000,- /01) pro c- d 8'000- / DJ; 671'3 I 10 110/ &>00. -- :Z/3; olJ?J '-J l .2/ orn5-- ~/I cJZYE () f /0 tJtJo,.-~ 2-3 / cnJO 3 / ."".'..... e. On-site management of excellent quality year-round, with reduced hours during offseasons. 3. The Lodge has provided one manager's unit in the past for employee housing, approximately 300 square feet in size, containing two twin beds (two pillows). 4. From October, 1982 through August, 1983, I have spent approximately $218,000.00 in upgrading the Molly Gibson Lodge. Included in the upgrading were: a. Remodeling of fireside lounge (common area) and installation of a new bar for guests in the lounge, with a full liquor license. b. Installation of new conference room and furniture. ,1 , 1 , ;.~ c. Painting of all doors and frames. d. Installation of additional landscaping, including new planters around jacuzzi. e. Remodeling and refurbishing upstairs guest rooms. f. Improving maintenance systems. ;\) ,,;; i;f !l g. Installation of outdoor jacuzzi. Back up _documentation can be provided if it is deemed necessary. ) STATE OF COLORADO ) ) ss. COUNTY OF PITKIN ) Subscribed and sworn to before me this~~ay of 1984 by David F. - Jones. ' r' . . I ~ January, WITNESS my hand and official seal. My commission expires: Mv CommISSIon eXlllre5 February 19. 1985 (fLti-~"'-i ~ J;l, f~ Notary P ic - , Address: 600 EAST HOPKINS AVF.. SUI1l205 ASl'EJI. COI QP&M 81611 -2- . . -- , I.' ~I I \.. L' : I \" \ ' U\ Ii -;-T-- ...,~r~p.r\G\tq<:;':~I~l~--l ~~~I~ ~!~~t:~\l">\--- , I I I I I I I i I ~ I ' ~'.' I I I ,1?l1.tJ\'\,-,y"Ic..,\<tJ~\~.fr>'::O!~~i~:"S: ill' \ I : \~\~ ~il'~I~~~'~!\~ \~ K'~I\':~.~ I, I. I IL,\C. ~I-l....~ ~I! 1~'iifl~:~1 ~ Ii \ I ! \ \:-'\~ ~i~ cl~ ~ ~\~: ;~I~ \ ~ ''\ I . I ! ,ev ~ I\j I . \ i ~.., ~ -s' \ (t>! D \ I I i~iC:S-~1 ,fu,!ti~1 I",-~~~.~t I . ,"" 1 I 1 ~ I (I:l \ ,\." \..... ). 'i L \ ,. \ ; iL.,...'\..\;)'c:..; \.t;I~~ ~.~.\~\I:>;~. ~ . I :D,b~! '''I{1;.,.:-- I ~ ~ .~- <tI I ' ~ I~: i ! ~ I : t..\ . \ ;~' '. L . i 1&;..... ! ! I '\' ,I'. - ~ i \..:::;,: · i .\. 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',-' ,,\.-.l ~".'-.J I' 're ' . , '. ' ., ,.~,," 1,1;), ,- IV jO' ' .--.J..l - I .. . [' ,=--: . ' I ! ~ ',..~ 'i' il_ , LU: \:> '''' \ t:. i\::>: :.' ';;''\,',' 1 r-- \...9',15'\\ U\:c..;-l'~ I I \. 1 \ C> ~ l I.' '-, ,'v I - . .~---';'----~---T--"'- --l---'-~- --;--;-~-!-----.-- ! ,. I I I z~ ? :;.0- - > .-- t I , o ~ ~ n ~ ~ -I 6 Z o ~ .' Ii" ,<: o 7' '" <". -..... ~ --c.J, '" ~. ~. ~ n <:I: >~ rO CC ~r ~ o ~ \..' , --- ; ~ i ,i , _1---- "" o 7' ;< n o - ,. '" C' ~ -< ro. o o~;J n"7l;:' I +-" > :1~Z -~n :r:m .-c--~'-- .---~'\'-- ! I , ...... ::~ co c-()> :> 0- Qe;~> ()G~O o C C'-J 0 - ~ ~n C _ 0 c 3 c; ""-3 =" :> toft (') _..... ""::J o co~',. ::Jo:>O 00....... Q ~.o..o ~ :l - n~ ~=:.o~> ., 3 ::: v !2 o. ~ -.;/ .,.. c n f"'"- :> u- ~-:; g.~ n CJ ;J-I Q Q ;;.-5 <~C'-JZ t;:: Co ~ --"- c.o > g..~nZ o' - if 0 -. 0 0-(') ~ 5-' r-n =. n ~ :l ~ - ~ t:) ""';1 ~ C->. -- ., _ n ~ n > o ~- -t >- :... 0_ ro\ >- -" 0 ." :> - 0 CJ ~. E ;;u 0 08- '"U (') 3 >- C V"' -< /'" 3:: -, m :-:, Z Z :1 -I o " C> ...., = m -i n' o 3 u -< =-- "U -u ~- n o :> c: 5' 5' 0<> '0 x ?; ;:g~~ () ;O'~J I 6C€:: :i Cl ~ ~ n ....., -I -t ~ 7..1 00 v>-l9zz ..., 0:";: -- 7J .. .. 0 Z o >-c __ -f ~ r~' P' - () ., (,.""J -i r" 7-' "Z <J\. o. o -....-.;- ,,, (1 ,--VI " f):> LI.. ~ J ......,.."--,~" .._-._. ._,---.....~_.._~~. .. " , !IE!10Ri".NDUH TO: , Aspen Planning and zoning Commission FROII: Colette Penne, Planning Office RE: Molly Gibson Lodge Condominiumization DATE: l.larch 6, 1984 -.------------ LOCATION: Lots 0, P and Q, Block 59, City and Townsite of Aspen (Northwest corner of Hopkins and Garmisch) ZONING: L-3 APPLICANT'S REOUEST: Subdivision exception pursuant to Section 20-23 for the purpose of the condominiumization of the Molly Gibson Lodge. The Lodge will be made a part of the Aspen Ski Lodge condominium association and will be renamed the Aspen Ski Lodge II. REFERRAL c.ormENTS: The Building Department/Fire Marshall listed fourteen building code violations that must be improved. The detailed memo is attached. Further, the 7,oning Administrator indicates that parking has been provided on the north side of the building but the area does not appear to be plowed or utilized. Also, the applicant submits that approximately $218,000 has been spent in the upgrading of the facility, however, the amount indicated for the valuation of work was $50,000. The Engineering Department asked for the following: "1. Condominiumization should be contingent on recordation of a condominium plat following completion of any improvements. 2. Plans for upgrading of the lodge should be reviewed by this office. Reconstruction of the Smuggler Lodge failed to provide on-site areas for trash and utility services resulting in conflicts with the alley. We would prefer not to see this mistake repeated at the Molly Gibson. 3. The applicant should be required to provide an easement for the existing electric transformer adjacent to the alley. 4. The owners should be required to join any future improvement districts per the City Attorney's standard covenant." ~...............,,_,_w._... ._..<______.__-... . The Housing Office submits that historically, the lodge has provided one employee unit (manager's unit) containing two beds. The unit is approximately 300 sq. ft. and has housed one employee. The applicant has committed to use this unit to house two employees. The Housing Authority recommends that the Molly Gibson Lodge condo- miniumization be approved contingent on the following conditions: 1. That the standard Housing Authority Employee Dwelling Unit Agreement be entered into and recorded prior to the time of issuance of the building permit and be filed with the Housing Authority. 2. That a verification of employment be completed and filed with the Housing Authority. The City Attorney's Office has the following documentation requirements: 1. A statement of exception will be required if condominiumization is approved, with the usual improvement district requirements; and the fOllowing changes and/or additional information needed: 2. Comments on the proposed condomiumization documents will be made after the changes and additions referred to by the applicant in paragraph 4, page 5 of the applicant have been completed. 3. There is no plan of improvements detailing the additional $100,8CG that the applicant plans to spend in upgrading the lodge facility as described in paragraph 6, page 3 of the application. 4. Paragraph 5, page 3,of the application refers to the applicant retaining ownership of the desk, bar, lounge, and conference facility as a separate commercial unit. We question whether this complies with the intent of Section 20-23(A) (5). The Condo- minium Declaration may eventually handle this. Our intent is to preserve the areas for common use (conferences, etc.). PLANNING OFFICE RI;;VIEl:I: The Molly Gibson is an L-3 lodge and the condominiumization of it is subject to Section 20-23 of the Municipal Code. Planning Office records show that the present build out on this 9,000 sq. ft. lot is 8376 sq. ft. for an FAR of .93: 1. It is the intent of the lodge condominiumization that "the condominium units created shall remain in the short-term rental market to be used as temporary accommodations available to the general public." Evidence of compliance with this intent is a condominium declaration (which has been submitted) which will be recorded with the Clerk and Recorder's Office. The Sections (a, b and c) of Section 20-23 which limit an owner's personal use of his unit and the assessments to be levied in the case of violation of these limits and the City's rights to require reporting are stipulated verbatim in the Condominium Declaration. .. ,-.-..-..--""""-.,.... ....-.... One unit (containing two twin beds) of employee housing has been provided for the past 3-year period. This same unit will be maintained for future use, providing two pillows of employee housing. The applicant has submitted an affidavit indicating the following levels of services and amenities provided at the Molly Gibson for the past three years: (a) Continental breakfast. (b) Front desk check in and check out service from 8:00 A.M. to 8:00 P.M. seven days a week during high season. Late arrivals are signed in by the resident manager or a key to the room and a note explaining the room location and time for breakfast are left at the office door. (c) No transportation has been provided. The van service of the Aspen Ski Lodge will be expanded to serve the Molly Gibson if this condominiumization is approved. (d) The front desk times were described above. Check-in time is 3:00 P.M. and check-out time is 10:00 A.M. When guests arrive at the desk, they are given their room key, signed in and advised of the available amenities and given any additional information. (e) The amenities offered include: (1) Continental breakf ast; (2) Outdoor swimming pool; (3) Outdoor jacuzzi; (4) Bar and lounge; (5) Cable T.V., including HBO, (6) Conference room; (7) Daily maid service; and (8) On-site management year-round (reduced hours during off seasons) . The lodge will remain available to the general tourist market and will either be marketed privately or through the ARA. The form of the marketing approach should be submitted for review before final Council approval. The common areas must remain common and will not be diminished in size or quality. The applicant refers to the general common elements in Item #11 on page 6 of the First Amended Condominium Declaration as "commercial units". The declarant proposes to retain ownership of these areas. The Planning Office wants it to be clear that these general common elements are not commercial units, and should be owned by the Condominium Association. No Commercial Growth Management allotment has ever been given for the square footage or conditional use approval granted and the units are amenities only for this lodge development. The applicant indicates that approximately $218,000 has been spent ----._._.__.~- _.-..~,..-_."".....-, .~._.' -......-...-......--..... in the past year on the upgrading of the facility. The valuation of work shown on the building permit was $50,000. The Code requires that an amount equal to 30% of the property's assessed value ($9B,600) be expended to physically upgrade the lodge. In this case, that amount equals $29,580 and the information supplied indicates that the upgrading has exceeded the requirement. A detailed accounting of these improvements will be available at your meeting for your review. The City Council ultimately must accept the information submitted to be proof that the upgrading completed prior to condomin- iumization is sufficient to meet the criteria of Section 20-23(6) (b). The additional money projected to be spent is over and above that required and will be outlined further by the applicant for Council review. All conditions of Section 20-23 shall be made binding on the applicant, the applicant'S successors, heirs, personal representatives and assigns and shall govern the property for the life of the survivor of the present City Council of Aspen plus 21 years. Any modification of this condominiumization shall only be by written agreement to the City Council and the owner or owners of the condominiumized lodge property. The documents creating and governing the condominium shall be modified by the condominium owners only with the prior written approval of the City Council. .3. \ ;1 PLANNING OFFICE RECOMMENDATION: The for the Planning Office recommends approval of subdivision exception the purpose of condominiumization of the Molly Gibson Lodge with following conditions: 1. The Building Code violations listed by the Building Department in their memo of February 22, 1984, be corrected to the satisfaction of Jim Wilson prior to the sale of any unit or the recording of the plat. C<:" s" ,If/" The off-street parking area/to the north of the lodge and maintained so that it is available for use. be retained 2. 3. That the standard Housing Authority Employee Dwelling Unit Agreement be entered into and recorded and filed with the Housing Authority along with a verification of employment. 4. An easement for the existing electrical transformer adjacent to the alley must be supplied and shown on the plat. 5. The on-site areas for trash and utility services should be detailed for and reviewed by the Engineering Department prior to Council review. 6. A condominium plat must be approved by the Engineering Department following the completion of improvements and prior to recordation. 7. A Statement of Subdivision Exception must be recorded which includes the owner's commitment to join future improvement dis- tricts. ........-...."'..~..__..,.--,_...--.,........'----,-_..,._.-._<...._._..._",~ . 8. A detailed cost accounting of previously expended funds and planned expenditures shall be submitted for Council review and determination of compliance. 9. The common areas cannot be operated as commercial facilities and must be held as general common elements by the Condominium Association. ~ The method of marketing shall be submitted for Council review. ,O~ The Condominium Declaration shall be approved as to final form by the City Attorney's Office and recorded. t. \.' ,I I \, \ ,,-'\...:t: , , r-.) L Il I "1- " I E.,' I / \' , \ 'I \ \', .1 i / I' 1 ......-...-- .'-" - CIT ree t 1611 MEMORANDUH TO: Planning Office Colette P~~ City Attorne~ <---- February 22, 1984 FROH: DATE: RE: Molly Gibson Lodge Condominiumization We have reviewed your memorandum and enclosures of February 2, 1984 and have the following comments: 1. Paragraph 5, page 3, of the application refers to the applicant retaining ownership of the desk, bar, lounge, and conference facility as a separate commercial unit. We question whether this complies with the intent of Sec. ~~ 20-23(A) (5), particularly as to the conference facility.~ As a practical matter, it may not be sensible to have the association own the bar and lounge; but, it merits discussion. //2. A statement of exception will be required if condo- miniumization is approved. ~3. We defer to engineering on the adequacy of the improvement survey and site inventory for the project. ~ 4. We will comment on the proposed condominiumization documents after the changes and additions referred to by the applicant in paragraph 4, page 5, of the application have been completed. vI';. The usual improvement district requirements may be a condition to condominiumization. ~ 6. There is no plan of improvements detailing the additional $100,000.00 that the applicant plans to spend in upgrading the lodge facility as described in paragraph 6, page 3, of the application. 51 f iio- CbviX>, W, U( 4j fV t':>>'r;IA 11-f.... ~ r-f'rift,Lt- Tri6. (7tAt2.- l~ IS- ~ ~!?f.~ .J:lfE /ff1;1-.5 I"b"e- COUAtf1oAJ u!::ErcoJfHLfAXtS) . ~ MEMORANDUM TO: Colette Penne, Planning Office FROM: Jay Hammond, City Engineering ~ DATE: February 17, 1984 RE: Molly Gibson Condominiumization --------------------------------------------------------- Having reviewed the above application, and made a site inspection, the City Engineering Department would offer the following comments: ~: Condomi~i~mizationfshOUl? be contin~ent on rec~rdation of a condomlnlum plat ollowlng completlon of any lmprove- ments. ~. Plans for upgrading of the lodge should be reviewed by this office. Reconstruction of the Smuggler Lodge failed to provide on-site areas for trash and utility services resulting in conflicts with the alley. We would prefer not to see this mistake repeated at the Molly Gibson. ....... ~. for '.. The applicant should be required to provide an easement the existing electric transformer adjacent to the alley. ~< The owners should be required to join any future improvement districts per the City Attorney's standard covenant. 5. A more imaginative name than Aspen Ski Lodge II would be nice. JH/CO rr.:Jf1-::K-;J\7)7s";j:!" n 0, r:.lll;',J~,JI, \", ' ',I'! 'y- A':-'-~~.-'_.- I' ( - .... . , : I , ',II " FES 2210')' :j' f. . vu'-t i! ~ JI' 1,.,..:'_ _ I">DFN / PiTKIN CO. "V~ OFFiCE 506 east main street aspen, colorado 81611 M M M 0 RAN 0 0 ~cJl1/' TO: Housing Authority of the City of Aspen and Pitkin County Board pitkin county FROM: James L. Adamski, Director DATE: February 21, 1984 RE: Molly Gibson Lodge Condominiumization Applicant: Resort Investment Corporation of South Carolina. Nature of Project: Resort Investment Corp. is making application pursuant to Sub-section 20-23 of the municipal code of the City of Aspen for the Condominiumization of the Molly Gibson Lodge, which will be re-named the Aspen Ski Lodge II and will incorpor- ate into the condo association as an expansion of the existing Aspen Ski Lodge. Historically, Molly Gibson (managers unit) containing 300 sq. ft. and has housed Lodge has provided one employee unit 2 beds. The unit is approximately one employee. The applicant has committed to use this unit to house 2 employees. Housing Office Recommendation: The application was reviewed and a decision was made based on Sub-Section 20-22 Condominiumization and 20-23 Condominiumization, Lodge, of the municipal code of the City of Aspen. Subject to this review it is the recommendation of the Housing Authority that the Molly Gibson Lodge Condominiui- zation be approved contingent on the fOllowing conditions: 1) That the standard Housing Authority Employee Dwelling Unit Agreement be entered into and recorded prior to the time of issuance of the building permit and be filed with the Housing Authority. 2) That a verification of employment be completed and filed with the Housing Authority. ASPEN.PITKI~4REGIONAL BUILo.."'\IG DEPARTMENT MEMORANDUM .... n;' .'-',"-' ~;? ~;~:~\ ,: ~) jl " .....,< FROM: Colette Penne, Plannin:.~ Bill Drueding, Zoning ~J " i:, TO: Frp o'~ .....{:} '.. """";; -f 1.~":Yt c__. .'<"'-~F:\j / :\1 C/1. DATE: February 8, 1984 :,::C RE: Molly Gibson Lodge Condominiumization On page 4 of the application, the applicant states it does not have, nor has it had, off-street parking for its guests. Was the previous parking or the existing parking for employees? The Molly Gibson was issued a building permit (#3365) on May 26, 1981. This permit indicates "move parking to north side". During application of April 22, 198! building permit #6029, I recall that the applicant was denied certain building requests in order to preserve the parking adjacent to the alley. A site visit indicated that this space was still there but was not plowed or being utilized. Building permit #6029, issued April 22, 1983, indicates a valuation of work at $50,000. Did the applicant underestimate the work he would do, or did he upgrade a much greater amount than he indicated to the Building Department? Do you want the Building Department to conduct a Health, Life & Safety inspection? cc: Jim Wilson, Building Official Patsy Newbury, Zoning Official City Attorney WD/ar offices: 110 East Hallam Street Aspen, Colorado 81611 303/925-5973 mail address: 506 East Main Street Aspen, Colorado 81611 lo...,..- ......... BUILDING PERMIT APPLICATI """-'-~---- 50--S='E:BBt Main Street; Aopen, Colorado 81611 3C3/925-S973 /-, General Construction Permit 1 ABPEN.PITKIN REGIONAL BUILOING OEPARTMENT Jurisdiction of fE.O---.p Applicant to complete numbered spaces only. .,DDRESS TRACT OR SUBDIVISION / z.o lit tt!. IJ-spezJ LEGAL 1. DESCR. LOT NO. BLOCK 6029 NO. MOLLY &1&00 LolJb6 (U SEE ATTACHED SHEET) 2, fY\'-!IO e ARCHITECT OR DESIGNER L-AV f:1VOc:K:- MAIL ADDRESS ZIP PHONE 120 (,,-<J, rtJPICI..<..JS r='bJ 'Z- PHONE LICENSE NO. Zo. 3 ~ev MAIl,. ADDRESS PHONE LICENSE NO. /iJi:eJetO;(!s, r..vA1E.o. ./lVe-. /~). to. OWNER JoIJ6S CONTRACTOR .-- ?--c:; 3, 4, MAIL ADDRESS [~JGINEER 5. .- USE OF BUILDING _ 6 LODbc:- 7. Class 01 work o NEW o ADDITION I<f'AlTERATIDN 8 Chilnge ot use from Chilnge of use to PHONE LICENSE NO. o REPAIR o MOVE o WRECK PLAN CHECK FEE \ O.SO PERMIT FEE 0. - 9. Valuation of work: $ 10, REMARKS: ~ n., see..; .L.~ I -It 1.LO'Tt<. ~ C. 0 . :~ NOTICE S;::;'i\RATE PERMITS ARE REOU1RE5""" FOR ELECTRICAL, PLUMBING, ~i[',\TING, VENTILATING OR AIR CONDITIONING. I !W~ PERMIT 13ECOMES NULL AND VOID IF WORK OR CONSTRUCTION i\'. .:rHQRIZED IS NOT COMMENCED WITHIN 120 DAYS, OR IF CONSTRUC- -;'ION OR WORK IS SUSPENDED OR ABANDONED FOR A PERIOD OF 120 [J,wS AT ANY TIME AFTER WORK IS COMMEN,CED. I i..f.REBY CERTIFY THAT I HAVE READ AND EXAMINED THIS APPLICATION ,\:;[J KNOW THE SAME TO BE TRUE AND CORRECT. ALL PROVISIONS OF LAWS .HH} ORDINANCE:S GOVERNING THIS TYPE OF WORK WILL BE COMPLIED WITH WHETHER SPECIFIED HEREIN DR NO . THE GRANTING OF A PERMIT DOES NOT PRESUME TO GIVE AUTHORIT IOlATE OR CANCEL THE PROVISIONS OF ANY OTH STATE OR lOC EGUlATING CONSTRUCTION OR THE PER. FORMA CONSTRUCT N. """"S';-:C;'J SIGNATURE F OWNER IF OWNER BUILDER A Type of Construction Occupancy Group Olvislon - I -J-\.f2.- JZ-- \ No.ofStoriU z.- -3 U"Z02._3 FlreSPrlnkl~~qUlre(l o Ves /\'""0 MIx. OCC. LOld NO. of Dwellin9 Unit~ OFFSTREET PARKING SPACES: CoV<!!red Uncovered Special Approvals REOUIRED AUTHORIZED BY DATE ZONING 6.:k' W-I:J ~ HEALTH DEPT. FIRE DEPT. SOIL REPORT PARK DEDICATION WATER TAP ENG. DEPT. I THIS FORM IS A PERMITONL Y WHEN VALIDATED _,_,~ TARTED WITHOUTJ"~(1'f~.t;~f dOUBLf FEE ! r~'\(Co( '1 lId ;~ I~..s L: :-l~Ij::F~I~:'. Y-l-Z-Y:> PERMIT VALIDATION CK. M.O.O VALIDATION CASH 0 PLAN CHECK VALIDATION CK. M.O.O CASH 0 WI.HH _ INSPECTOR'S copy YELLOW - ASSESSOR'S copy PINK - BUILDING DEPARTMENT FILE GOLD - CUSTOMER'S COPY , ,~'"' ......"..; FIRST AMENDED CONDOMINIUM DECLARATION FOR THE ASPEN SKI LODGE CONDOMINIUMS (A Condominium) KNOW ALL MEN BY THESE PRESENTS, THAT: WHEREAS, RESORT INVESTMENT CORPORATION, a Delaware corporation, 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, representing an aggregate ownership interest of at least 83% of the general common elements of the Aspen Ski Lodge Condominiums, an existing condominium organized pursuant to the Colorado Condominium Ownership Act of the State of Colorado, ~38-33-101, et~, C.R.S.; and, WHEREAS, Declarant desires to amend the Condominium Declaration for the Aspen Ski Lodge Condominium recorded on December 30, 1980, in Book 402 at Page 236 of the Pitkin County real property records in accordance with paragraph 19 of said Condominium Declaration; and, WHEREAS, said Condominium Declaration for the Aspen Ski Lodge Condominiums established a plan for the ownership in fee simple of the real property estates consisting 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; and, WHEREAS, the Aspen Ski Lodge Condominiums were established as a "Condominiumized Lodge" pursuant to ~20-23 of the Municipal Code of the City of Aspen, Colorado; and, WHEREAS, Declarant, in this Amended Condominium Declaration for the Aspen Ski Lodge Condominiums, desires to maintain the integrity of the Aspen Ski Lodge Condominiums as es tablished NOW, THEREFORE, Declarant does hereby amend the Condominium Declaration for the Aspen Ski Lodge Condominiums by publishing and recording this First Amended Condominium Declaration for the Aspen Ski Lodge Condominiums and repealing the Condominium Declaration recorded December 30, 1980 in Book 402 at Page 236 and further, 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. Definitions. Unless the context shall expressly provide otherwise: 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- minium Map to be filed for record, together with all fixtures and improvements therein contained but not including any of the structural components of the building, or the general common elements. 1. 2 "Condominium Unit" means the fee simple interest and title in and to a unit, together with the undivided percentage interest in the general common elements appurtenant to such unit. 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 buildings; 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 elements 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 Proj ect" 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 prov~s~ons 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 administration of this condominium property, and the members of which shall be all of the owners of the condominium units. 1.8 "Building" means one improvements containing units as shown on. and supplements thereto. of the building the Map or amendments 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. More than one Condominium Map or supplement thereto may be recorded and without limiting the generality of the foregoing, separate condominium maps may be recorded for each condominium building and/or for each supplement to this Declaration. If more than one Condominium Map or supplements thereto are recorded, then the terms "Condominium Map" shall collectively mean and refer to all such condominium maps and supplements. 1.10 "Owner" means a person, persons, firm, corporation, partnership, association or other legal entity, or any combination thereof, who own(s) an interest in one or more condominium units. 1.11 "Declaration" means this First Amended Condominium Declaration for the Aspen Ski Lodge Condominiums and any supplements hereto. -2- ,. -..",,"", 2. Condominium Map. The Map may be filed for record in whole or in parts, sections or supplements, as construction of the units and other improvements are substantially completed. The Map (or any part or section thereof) depicting units shall not be filed for record until the building in which the units are located has been substantially completed in order to permit the location thereof, both horizontally and vertically. Each such Map shall be filed for record prior to the conveyance of the condominium units shown thereon. 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 horizontally and vertically; the thickness of the common walls between or separating the units; the location of any structural components or supporting elements of a unit located within a building; and the building and unit designations; and, a designation of which Common Elements contained in a Condominium Building are Limited Common Elements. The Map shall contain the certificate of a registered Colorado land surveyor or licensed architect, or both, certifying 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 constructed, the building number or symbol, and that such Map was prepared subsequent to substantial completion of the improvements. Any amendment to the Map shall set forth a like certificate when appropriate. In interpreting the Map the existing physical boundaries of each separate unit as constructed shall be conclusively presumed to be its boundaries. Declarant hereby reserves unto itself the right, from time to time, without obtaining the consent or approval of any Owner or First Mortgagee, to amend any Condominium Map in order to conform such Condominium Map to the actual location of any improvement (s) constructed, installed or erected on the Property and to establish and designate any Common Elements as Limited Common Elements; provided, however, that in the event parking spaces are assigned to specific Condominium Units, said assignment shall be permanent unless individual Owners agree to exchange assigned parking spaces. The rights accorded to Declarant to this Section 2 shall expire upon the conveyance by Declarant of the last Condominium Unit owned by it which is neither rented, leased nor otherwise occupied to the first Owner thereof (other than Declarant). 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 designated 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 itself, its grantees. successors or assigns 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- ""'''' ,../ 3.4 Divide into separate units the space of one unit. 3.5 The aggregate or divided undivided interests in the general conunon elements resulting from any of the provisions of paragraphs 3.2, 3.3 and 3.4 shall be reflected by an amendment to Exhibit B hereof and to the Map, consistent with the requirements set forth in this Declaration. 3.6 Declarant acknowledges that this Declaration is subject to the provisions and requirements of Section 20-23 of the Municipal Code of the City of Aspen, Colorado, as such Municipal Code is presently constituted. Pursuant to Section 20-23 thereof, the following is made a part of this Declaration: (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 unrentab Ie. Occupancy of a unit by a lodge manager or staff employed by the lodge, however, shall not be restricted by this section. (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 conunon elements of the condominium. All sums assessed against an owner for violation of the owner's personal use restriction and unpaid shall constitute a lien for the benefit of the condominium association 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 foreclosure on an owner's condominium unit by the association in like manner as a mortgage or deed of trust on real property. The condomini.um association's failure to enforce the owner's personal use restriction shall give the City of Aspen the right to enforce the restriction 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 collected as a result of the assessment for the violation. In the event litigation results from the enforcement of the restriction, as part -4- ,..-'-""", ~ ',--.",/ of its reward to the prevailing party, the court shall award such party its court costs together with reasonable attorney's fees incurred. (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 referred to as "limited common elements." The limited common elements so reserved shall be identified on the Map. (Any balcony or balconies which are accessible only from within, associated only with and which adjoin a single unit shall, 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 proj ect, if any. No reference thereto, whether such limited common elements are exclusive or nonexclusive, need be made in any deed, instrument of conveyance, or other instrument. 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 unit. 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 , Aspen Ski Lodge Building, THE ASPEN SKI LODGE CONDOMINIUMS, according to the First Amended Condominium Declaration recorded on , 1984 in Book , at Page , and Condominium Map appearing in the recordsDr the County Clerk and 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 ownership of a condominium unit and all the limitations on such ownership as described in this Declaration and any amendments hereto. 7. Se arate Assessment and Taxation Notice to Assessor. Dec arant s a g~ve wr~tten not~ce to t e 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 -5- "'..nF owner shall pay his proportionate share thereof in accordance with his percentage ownership of the general cOlllIIlon elements. 8. Ownership Title. A condominium unit may be held and owned by more than one person as joint tenants or as tenants in COlllIIlon, or in any real property tenancy relationship recognized under the laws of the State of Colorado. 9. Non-Partitionabilit of Elements. The genera cOlllIIlon e ements s a e owne in cOlllIIlon 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 cOlllIIlon elements. 10. The Use of General and Limited COlllIIlon Elements. Each owner shall be entitled to exclusive ownership and possession of his unit. Each owner may use the general and limited cOlllIIlon 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. Any Occupant may use the COlllIIlon Elements reserved for the use of the Unit he occupies during the time such Occupant is actually in residence in the Unit. Guests and invitees of an Occupant of a Unit and the Unit Owner of a Unit (while another occupies his Unit) may only use the COlllIIlon Elements with the express permission of the Board of Managers and subject to such terms and conditions as the Board of Managers may specify in its sole discretion, including the payment of a fee for the use thereof. 11. COlllIIlercial Units. The units designated as cOlllIIlercial units on the Map shall be owned by Declarant. Declarant shall be responsible for maintaining the cOlllIIlercial units and for keeping them available for use by unit owners and/or their guests or invitees. Declarant shall pay its share of condominium assessments by virtue of its ownership of the cOlllIIlercial units. In addition, Declarant may contract with any independent company or individual for the lease and/or management of the cOlllIIlercial units. Notwithstanding anything contained to the contrary in this paragraph 11, Declarant shall not exclude unit owners from the reasonable use of the cOlllIIlercial units, subj ect to such rules or regulations or reservation schedules as Declarant may from time to time impose on the use of such units. 12. Other Liens. Declarant states in accordance with the requirements of the Colorado Condominium Ownership Act, that it is possible that liens other than mechanic's liens, assessment liens and tax liens, may be obtained against the cOlllIIlon elements, including judgment liens and purchase money mortgage liens. 13. Easements for Encroachments. If any portion of the general cOlllIIlon 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 cOlllIIlon elements, or upon an adj oining 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 -6- ~ , ....",,'" 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. 14. Termination of Mechanic's Lien Rights and Indemnification. Subsequent to the completion of the improvements described on the Map, no labor performed or materials furnished 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 elements. 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 incorporated 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 17. 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. 15. Administration and Mana ement; Mana in A ent. The administrat~on an management 0 t ~s con om~n~um 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 Association 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. 16. 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. 17. Reservation for Re air and Emergencies. T e owners s a ave t e ~rrevoca e 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. -7- .,. ." "'",,,,;' 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 elements, 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. 18. Owner's Maintenance Res onsibilit of Unit, Balconies Park~n an Stora e Areas. or purposes 0 maintenance, repa~r, a terat on an 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 in good condition and repair his unit, all interior surfaces and the entire exterior of his unit and shall maintain and repair the fixtures and equipment therein. 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 mainte- nance or repairs to any limited common elements, except as caused or permitted by the owner shall be at the expense of all of the owners. 19. of Declaration, Articles and ssoc~at~on. ac owner s a 1 camp y str~ct y w~t t e prov~s~ons 0 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 -8- , . "'-...' 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. 20. Revocation or Amendment to Declaration. This Declaration 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 instrument(s) 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 amendment, which consent shall not be unreasonably withheld, 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 Declaration (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 20 shall be construed to preclude or in any way limit the right of Declarant to supplement this Declaration and/or the Condominium Map if otherwise permitted herein. 21. Additions, Alterations, and Improvements of General and 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 elements requiring an expenditure in excess of Five Thousand Dollars ($5,000.00) in anyone calendar year without prior approval of a majority of the owners in writing or as 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 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 event that any such approved alterations, additions or improvements 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 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 -9- 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. The Board of Managers shall determine the exterior color scheme of all buildings and all exterior and interior color scheme(s) of the Common Elements (subject to the approval rights of the Association), and shall be responsible for the maintenance thereof. No Owner shall paint an exterior wall, door, window or any exterior surface or place anything thereon or affix anything thereto without the written consent of the Board of Managers (provided, however, nothing herein contained shall be construed to relieve an Owner of the requirement to maintain any Limited Common Element exclusively (or substantially exclusively) for the benefit of his Unit (and/or other Units). The Association shall be responsible for the maintenance and repair and replacements of the Common Elements not required to be maintained and/or repaired and/or replaced by individual Owners. Notwithstanding each Owner's duty of maintenance, repair, replacement and other responsibilities to his Unit, the Association, through its Board of Managers, may enter into an agreement with such firm(s) or company(ies) as it may determine from time to time to provide certain services and/or maintenance for and/or on behalf of the Owners whereby maintenance and services are provided on a regularly scheduled basis, such as air conditioning maintenance services, exterminating services and other types of maintenance and services as the Board of Managers deems advisable and for such periods of time and on such basis as it determines. Further, the Board of Managers may lease equipment (such as telephone systems, MATV or Cable TV service) and grant easements for the location and/or installation of the same if it determines advisable. Said agreements shall be on behalf of each of the Owners and the Monthly Assessment due from each Owner for Common Expenses shall be increased by such sum as the Board of Managers deems fair and equitable under the circumstances in relation to the monthly charge for said equipment maintenance or services. Each Owner shall be deemed a party to such agreement with the same force and effect as though said Owner has executed said agreement. It is understood and agreed that the Association through its Board of Managers shall execute said agreements as the agent for each Owner. The aforesaid assessment shall be deemed to be an assessment under the provisions of paragraph 22 of this Declaration. 22. Assessment for Common Expenses. All owners shall be obligated to pay the assessments, either estimated or actual, 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 elements as is set forth in Exhibit B; provided however that notwithstanding anything else herein contained to the contrary, for so long as the Employee Unit, as described in paragraph 33.2, is deed restricted as described in paragraph 33.2, the owner of that unit, i.e., the Association, shall not be assessed for common expenses. Regardless of the foregoing, the owner of the Enployee Unit and the unit's occupants, tenants and guests shall be entitled to use all of the common elements to the same extent as any other owner, occupants, tenants and guests. In the event that the deed restriction on the Employee Unit is ever terminated, then the owner of that unit shall thenceforth be assessed for common expenses. Except as otherwise herein provided, the limited common elements shall be maintained as general common elements, and owners having -10- , exclusive use thereof shall not be subject to any special charges or assessments for the repair or maintenance thereof. Assessments for the estimated c01lllll0n expenses shall be made at least semiannually and shall be due i1lllllediately upon receipt. The Managing Agent or Board of Managers shall prepare and deliver or mail to each owner a statement for the estimated or actual c01lllll0n expenses. In the event the ownership of a condominium unit by grant from the Declarant c01lllllences on a day other than the first of the month, the assessment for that month shall be prorated. The assessments made for c01lllll0n 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 c01lllll0n elements, which sum may include, but shall not be limited to, expenses of management; taxes and special assessments until separately assessed; premiums for fire insurance with extended coverage and vandalism 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 elements or materials comprising a part of the units) casualty and public liability and other insurance premiums; landscaping and care of grounds; snow removal; c01lllll0n electricity, c01lllll0n water, c01lllll0n sewer, c01lllll0n lighting and c01lllll0n heating; repairs and renovations; trash 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 reason of this Declaration and the By-Laws of the Association; for any deficit arising or any deficit remaining from a previous period; the creation of reasonable contingency, reserves, working capital, and sinking funds as well as other costs and expenses relating to the general c01lllll0n elements. The omission or failure of the Board of Managers to fix the assessment for any period shall not be deemed a waiver, modification or a release of the owners from their obligation to pay the same. All costs of maintenance, repair and replacements of C01lllll0n Elements (including General C01lllllon Elements and Limited C01lllll0n Elements) necessitated by the negligence or misuse by any Owner of a Unit shall be borne solely by the Owner of such Unit and the Board of Managers shall have the right to assess such Owner for such costs. 23. Insurance. The Board of Managers of the Association shall obtain insurance upon the Condominium Project insuring it (including both C01lllll0n Elements and all Units) against all risks, all premiums of which shall be included as part of the C01lllll0n Expenses. The provisions of this Article shall relate to all residential Units and all C01lllllon Elements. 23.1 The Board of Managers, on behalf of the Association, shall obtain extended insurance coverage (by policies, each having, if such can be obtained, a term of not less than three (3) years) upon the Condomium Project and improvements thereon, including the Units and C01lllll0n Elements, insuring the Owners and their mortgagees against -11- .f '" ""'., j loss from fire, earthquake, flood (if available), vandalism and the elements (windstorm, etc.), as well as any other risks the Institutional Mortgagees described in Section 23.2 (if any) may deem it reasonable to require, in amount(s) sufficient to completely restore and replace the damage and/or destroyed elements in the event of loss, or in the event the improvements are not to be repaired or replaced (as described in Section 23.6), sufficient, after pro rata division among the Units to provide funds to payoff all outstanding mortgages held by Institutional Mortgagees upon Units in the Condominium, whichever is greater. In the event such coverage as obtained contains deductible (s) and/or is insufficient to so restore or replace, the Insurance Trustee (as hereafter described), with the advice of the Board of Managers shall determine the amount (s) necessary to cover such deductible(s) and/or deficiencies and establish a self-insurance fund to provide insurance to cover the same. Such self-insurance fund shall be established and funded in the same manner as are escrow payments for insurance premiums as hereafter described. Such self-insurance fund shall have the same loss payee as the policies obtained (i.e. the Insurance Trustee for the benefit of the Owners and their mortgagees, etc.). Such self-insurance fund and any increase and/or replacement(s) thereto shall be funded by assessment of all of the Owners by the Insurance Trustee acting on behalf of the Board of Managers which shall be, when so assessed, an item of Common Expense. Such funds so maintained (except for excess funds, which shall be distributed as provided in Section 23.4), together with interest thereon (if any) may be expended only in the event of: (i) a loss which such funds insure against; (ii) in the obtaining of other insurance to cover such deductible(s) and/or insufficiency (ies) ; (Hi) the consent of all Owners and their mortgagees; or (iv) upon termination of the Condominium. In the event of distribution of such funds for any of the latter three events, such funds so expended and/or distributed shall be considered as, owned as and distributed on a prorata basis among the Owners according to the percentage of Common Elements appurtenant to each Unit. 23.2 Any Institutional Mortgagees holding mortgages encumbering Units in the Condominium having collectively an aggregate of original principal balances of $3,000,000 or more shall have the right to approve all such insurance policy or policies, the company or companies, insurance upon such insurance coverage, the amount (s) thereof and, if appropriate, self-insurance sufficient to cover deductibles. Declarant reserves the right to, by amendment, change the aggregate principal amount of mortgages which must be held in order for an Institutional Mortgagee to qualify for the rights granted herein. 23.3 Insurance premiums are and shall be a part of the Common Expenses; provided, however, they shall be paid separately to the Insurance Trustee by each Owner at such address as it shall designate. The Insurance Trustee shall notify the Owners of the place of payment and monthly payment amount, which shall be due and payable by the first day of each month by each Owner. The amount collected monthly from each Owner shall be an amount equal to his percentage share in the Common Expenses multiplied by not less than 1/12th of the annual premiums of all insurance policies maintained upon the Condominium. Further, the Insurance Trustee is hereby subrogated to and assigned the lien rights of the Association as to each Owner failing to pay any payment due from him to the Insurance Trustee for insurance premiums or self-insurance to the extent of the amounts due and owing but unpaid, which rights include the -12- right to file notice of, perfect and foreclose upon a lien(s) against such Owner(s) as granted to the Association by this Declaration. Sufficient funds shall be collected and maintained, if necessary in advance, by the Insurance Trustee (as hereinafter defined) such that with monthly installments received by it, it will have sufficient funds to pay the next annual premium on each policy maintained under Section 23.1 hereof not less than sixty (60) days prior to the date such premium on such policy is due and payable. Such funds so held shall be disbursed and used by it solely to pay premiums on said insurance policies described in Section 23.1. Unless such insurer fails to meet the requirements of Section 23.13 hereof or unless otherwise instructed by the Board of Managers and agreed to by the Institutional Mortgagees described in Section 23.2, the Insurance Trustee shall renew each policy with and pay the renewal premium to the same carrier then carrying said coverage. Such funds shall not be otherwise used or disbursed except upon written instruction of the Board of Managers consented to by all of the Institutional Mortgagees within the classification described in Section 23.2. 23.4 U.S. Capital Mortgage Corporation, formerly known as Capital Acceptance Corporation, a Delaware corporation authorized to do business in Colorado, its successors and assigns, is hereby appointed and designated Insurance Trustee. The Insurance Trustee shall receive all funds designated for the self-insurance fund (if any) described in Section 23.1 hereof, to be held in trust for the benefit of the Owners and their mortgagees, to be dis tributed as provided, and only as provided, in this paragraph 23. The funds comprising such self-insurance fund shall be placed in one or more demand accounts of a federally insured bank or trust company (which shall be interest bearing account(s) if allowed by such institution and permitted by law). To the extent such funds exceed those required (as defined in Section 23.1), they shall be paid over to the Association. 23.5 The Insurance Trustee is hereby designated and appointed as agent for the Association, its Board of Managers, each and every present and future Owner thereof and each and every beneficiary of a deed of trust (if any) of each and every such Owner for the purposes of this paragraph 23. Any Person, by acquiring any ownership or security interest whatsoever in any Unit, shall be deemed to have appointed the Insurance Trustee as his, her or its agent for the purposes of this paragraph 23. Further, such appointment is and shall be irrevocable; provided, however, the present Insurance Trustee may designate a successor upon the acceptance by a successor insurance trustee of all rights, powers and duties herein granted the Insurance Trustee and, further, provided such successor must be a federally insured bank or other federally insured depository having a corporate trust department, and must be acceptable to all Institutional Mortgagees with the classification described in Section 23.2. In its capacity as agent, the Insurance Trustee shall cause itself, as Insurance Trustee, to be designated as named insured and loss payee, for the benefit of those for whom it is herein designated as agent, of the insurance policies procured pursuant to Section 23.1, and in such capacity to receive all proceeds from such policies and execute as duly authorized agent such releases, endorsements or other documents or things as may be necessary to be able to receive such proceeds. In the event of any casualty or loss which is less than 2/3rds (as defined in Section 23.6), the Board of Managers shall be responsible to accomplish substantial reconstruction, replacement and repair, provided the Insurance Trustee shall -13- ,.- '" ,'" ., , collect the proceeds of insurance (and to the extent appropriate, from the self-insurance fund) and distribute such proceeds (by, if appropriate, a percentage of completion basis) to the parties entitled thereto upon satisfying itself as to the effectuation of such repairs, replacement and reconstruction. In the event reconstruction is not required (in accordance with the provisions of Section 23.6), the Insurance Trustee shall receive the proceeds and shall divide them, pro rata, among the Units according to the percentage of Common Elements appurtenant to each Unit. The Insurance Trustee shall then pay over to the mortgagee (and, if more than one, in order of priority of lien) of that Unit, the share of proceeds appurtenant thereto up to the amount of indebtedness due such mortgagee upon his mortgage, . and any balance then remaining to the Owner thereof. If there be no mortgagee or other lien holder of that Unit, the entire proceeds allocable to that Unit shall be paid over to the Owner thereof. The Insurance Trustee shall not be required to distribute any funds until it is satisfied in its sole judgment or assured of the parties entitled to such proceeds and the amounts to which they are entitled. 23.6 The proceeds of any such insurance shall be applied to reconstruct the improvements as provided in the Act; provided, however, reconstruction shall not be compulsory where it comprises the whole or more than two-thirds of the Condominium Project. In such event, and in the further event that at least three-fourths (3/4ths) of the Owners and their Institutional Mortgagees agree in writing not to reconstruct, the proceeds shall be divided pro rata among the Units according to the share of Common Elements appurtenant to each and distributed by the Insurance Trustee as provided herein. Otherwise, the Owners shall proceed with reconstruction. In the event of pro rata division, the Institutional First Mortgagee of record shall have first claim upon such insurance proceeds delivered to the Owner of the Unit upon which such Institutional Mortgagee holds a mortgage lien to the extent of the indebtedness due and owing upon the debt which such mortgage secures. 23.7 If the Condomium Project is not insured or if the insurance proceeds are insufficient to cover the costs of reconstruction, rebuilding costs shall be paid by all of the Owners directly affected by the damage and each shall be responsible for a share equal to the total cost times a fraction, the numerator of which is one and the denominator of which is the number of Units so directly affected. Failure or refusal of payment of any of the Owners so affected shall result in a lien upon his Unit in favor of the Association in such amount and may be enforced in the manner provided for collection of unpaid Assessments herein. 23.8 Nothing herein contained or contained in the By-Laws shall prevent or prejudice the right of each Owner and/or his mortgagee(s) from insuring his Unit on his account and for the benefit of himself and/or his mortgagee(s). 23.9 Any repair and/or restoration must be substantially in accordance with the plans and specifica- tions for the original building and improvements or as the building or improvements were last constructed or according to plans approved by the Board of Managers and all Institutional Mortgagees of record, which approval shall not be unreasonably withheld. -14- 23.10 The Insurance Trustee is further hereby irrevocably appointed agent for each Unit Owner, the Association, its Owners and their mortgagees for the purpose of compromising and settling claims arising under insurance policies purchased under the provisions of this paragraph 23 and to execute and to deliver releases therefor upon the payment of claims. 23.11 Should the Association fail to pay insurance premiums when due or should the Association fail to comply with other insurance requirements required herein or imposed by Institutional Mortgagees having the right to impose the same, said Institutional Mortgagees or anyone of them shall have the right to obtain insurance policies and to advance such sums as are required to maintain or procure such insurance and to the extent of the monies so advanced said mortgagee(s) shall be subrogated to the Assessment and lien rights of the Association and its Board of Managers against the individual Owners for reimbursement of such sums. 23.12 The Board of Managers of the Association is authorized and directed to purchase such additional insurance and for such additional purposes, including liability insurance (in an amount of not less than $500,000 per occurrence) and, if required by law or deemed advisable by it, workmen's compensation insurance, to carry out its purposes and/or to protect itself, the Condominium, its Common Elements, Units, the Owners thereof and their mortgagees. 23.13 Any and all insurance coverage (s) obtained under Section 23.1 above by the Association must be obtained from an insurance carrier(s) admitted and authorized to do business in the State of Colorado, and having an Alfred M. Best Financial Rating of at least "A+15" , which company(ies) shall be affirmatively presumed to be a good and responsible company(ies) provided same are so rated and are so licensed, admitted and approved to do business and provide such coverage in the State of Colorado. 24. Owner's Personal Obligation for Payment of Assessments. The amount of the common expenses assessed against each condominium unit shall be the personal and individual 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 (187.) 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. The Board of Managers shall have the duty, right, power and authority to prohibit the 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. 25. assessed but chargeable to Assessment Lien and Foreclosure. All sums unpaid for the share of common expenses any condominium unit shall constitute a lien -15- 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 condominium 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 foreclosure 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, conveyor 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. 26. Liabilit~ for Common Expenses Upon Transfer of Condominium Unit is Jo~nt. Upon payment to the Managing Agent, or if there is no Managing Agent, then to the Association of a reasonable fee, and upon the written request of any owner or any 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 condominium 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 ?rant or conveyance, without prejudice to the grantee s right to -16- , recover from the grantor the amounts paid by the grantee therefor; provided, however, that upon payment of a reasonable fee, as is hereinabove provided, and upon written request, any such prospective grantee shall be entitled to a statement from the Managing Agent, or if there is no Managing Agent, then from the Association, setting forth the amount of the unpaid assessments, 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 assessments, prepaid items, such as insurance premiums, which statements shall be conclusive upon 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. 27. Mortgagin~ a Condominium Unit - Priority. An owner shall have the rig t 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 encumbrances on the following conditions: 27.1 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 Association. 27.2 That the mortgagee under any junior mortgage shall release, for the purpose of restoration of any improvements upon the mortgaged premises, all of his right, title and interest in and to the proceeds under all insurance policies 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. 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 respective interests in the general common elements, and such interest 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 -17 - ........, " "1".-/ by certified mail, postage prepaid, addressed in the name of the owner at such registered mailing address. If more than one person or entity owns a Unit, the Unit Owner shall register one address only with the Association and that address shall be deemed the registered address for all Owners of that Unit. 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 Association in Pitkin County, Colorado. 30. Period of Condominium Ownershi~. The separate condominium estates created by this Declarat~on and the Map shall continue until this Declaration is revoked or terminated in the manner provided in this Declaration. 31. General Reservations. Declarant reserves the right to establish easements, reservations, exceptions and exclusions consistent with the condominium ownership of the condominium proj ect and for the best interests of the condominium unit owners and the Association in order to serve the entire condominium project. Notwithstanding any other provisions herein, so long as the Declarant continues to own any of the Units, the following provisions shall be deemed to be in full force and effect, none of which shall be construed so as to relieve the Declarant from any obligations as an Owner to pay assessments as to each Unit owned by the Declarant after the construction of said Unit has been completed and it is included in the Condominium. 31.1 The Declarant shall have the right at any time to sell, transfer, lease or re-Iet any residential Unit (s) which the Declarant continues to own after this Declaration has been recorded, without regard to any restrictions relating to the sale, transfer, lease or form of lease of Units contained herein and without the consent or approval of the Association or any other Owner being required. 31. 2 Without limiting the foregoing, the Declarant shall have the power, but not the obligation, acting alone, at any time (and from time to time) so long as the Declarant owns at least one Unit to amend the Declaration to cause the same to conform to the requirements of the Federal National Mortgage Association and/or the Federal Loan Mortgage Corporation, as set forth, respectively, in "FNMA Conventional Home Mortgage Selling Contract Supplement" and "Seller's Guide Conventional Mortgages," as the same may be amended from time to time. 31.3 The Declarant shall have the rights: (i) to use or grant the use of a portion of the Common Elements for the purpose of aiding in the sale or rental of Units; (ii) to use portions of the Condominium Project for parking for prospective purchasers or lessees of Units and such other parties as the Declarant determines; (iii) to erect and display signs, billborads and placards and store and keep the same on the Condominium Project; (iv) to distribute audio and visual promotional material upon the Common Elements; and (v) to use any Unit which it owns as a sales and/or rental office, management office or laundry and maintenance facility. 31.4 In order to provide the Condominium with, among other things, adequate and uniform water service, sewage disposal service, utility services and television reception, the Declarant reserves the exclusive right to contract for the provision of such services. The Declarant, as agent for the Association and the Owners, has -18- r , ~, entered into or may enter into arrangements, binding upon the Association and the Owners, with governmental authorities or private entities for furnishing such services. The charges therefor will be Common Expenses. 31.5 The Declarant reserves the right to enter into, on behalf of and as agent for the Association and the Owners, agreements with other Persons for the benefit of the Condominium, the Association and the Owners. The provisions of any such Agreement shall bind the Association and the Owners. The Declarant, as agent for and on behalf of the Association and the Unit Owners, has entered into an agreement with Capital Telecommunications Corporation, pursuant to which it will provide a color television set in each Unit together with antenna television reception service and maintenance and service therefor. This agreement, a copy of which is attached as Exhibit C and incorporated herein by reference is binding upon the Association and the Owners. The fees for rental of such television sets and for such services (initially $13.00 plus applicable taxes per Unit per month) shall be Common Expenses. If the Association fails to pay the amounts due under the agreement with Capital Telecommunications Corporation, the latter, if it duly performs its obligations under such agreement, shall be subrogated to all rights of the Association as to Common Expenses. The agreement with Capital Telecommunications Corporation may be amended only by a written amendment executed by the Board of Managers and Capital Telecommunications Corporation. The Declarant has also entered into an agreement with Capital Telecommunications Corporation, pursuant to which it will provide a telephone in each Unit tied to a central PBX system and maintenance and service therefor. This agreement, a copy of which is attached as Exhibit D and incorporated herein by reference, is binding upon the Association and the Owners to the extent allowed by law. The fees for rental of such telephone sets and service ($50.00 installation fee plus service charge plus applicable taxes per Unit per month) shall be Common Expenses. The service charge may be escalated pursuant to the increase in the Consumer Price Index on an annual basis. If the Condominium fails to pay the amounts due under the agreement with Capital Telecommunications Corporation, the latter, if it duly performs its obligations under such agreement, shall be subrogated to all rights of the Association as to Common Expenses. The agreement with Capital Telecommunications Corporation may be amended only by a written amendment executed by the Board of Managers and Capital Telecommunications corporation. 31.6 THE DECLARANT SPECIFICALLY DISCLAIMS ANY INTENT TO HAVE MADE ANY WARRANTY(IES) OR REPRESENTATIONS(S) IN CONNECTION WITH THE CONDOMINIUM PROJECT (INCLUDING ANY WARRANTIES AS TO MERCHANTABILITY OR FITNESS FOR USE OR FITNESS FOR A PARTICULAR PURPOSE) OR THE DOCUMENTS ESTABLISHING OR GOVERNING THE CONDOMINIUM, EXCEPT THOSE WARRANTIES AND REPRESENTATIONS (IF ANY) EXPLICITLY SET FORTH HEREIN. NO PERSON SHALL BE ENTITLED TO RELY UPON ANY WARRANTY OR REPRESENTATION NOT EXPLICITLY SET FORTH HEREIN. STATEMENTS (IF ANY) AS TO COMMON EXPENSES, TAXES, ASSESSMENTS OR OTHER CHARGES MADE BY THE DECLARANT OR ANY REPRESENTATIVE THEREOF ARE ESTIMATES ONLY AND NO WARRANTY, GUARANTEE OR REPRESENTATION IS MADE THAT THE ACTUAL AMOUNT OF SUCH COMMON EXPENSES, ASSESSMENTS OR OTHER CHARGES WILL CONFORM WITH SUCH ESTIMATES. 32. Recreational Facilities. The major recreational facilities which are currently common elements are as follows: swimming pool and jacuzzi. The recreational facilities are available for use by the owners, -19- , their guests, tenants, family, and invitees, subject to the requirements of this Declaration, the By-Laws, and the Rules and Regulations. There shall be no fees or charges for such use in addition to the assessments described herein. 33. Maintenance of Lodge Facility. Declarant for itself and its grantees, successors and assigns hereby acknowledges that by virtue of the establishment of this condominium project as a "Condominiumized Lodge" [pursuant to the provisions of Section 20-23 of the Municipal Code of the City of Aspen, Colorado, as such Municipal Code is presently constituted] use and maintenance of the common elements are restricted by the provisions of the Code which restrictions are fully set forth in this paragraph 33; use of the Units are restricted by such Code, which restrictions are fully set forth in paragraph 3.6, above, and in this paragraph 33; maintenance of the Condominium Project as a lodge facility is required by such Code, which requirements are fully set forth in this paragraph 33; and, availability of the Units to the general tourist market is required by such Code, which requirements are fully set forth in paragraph 3.6, above, and in this paragraph 33. 33.1 The Units shall remain in the short-term rental market to be used as temporary accommodations available to the general tourist market. This condition may be met by inclusion of the Units, at comparable rates, in any local reservation system for the rental of lodge units in the City of Aspen, Colorado. Paragraph 3.6, above, sets forth the restrictions relative to a Unit owner's personal use of a Unit. 33.2 The Association shall provide a minimum of two (2) pillows of employee housing. As used herein, "pillow" means sleeping accommodations for one (1) person. The Unit designated on Exhibit B and on the Condominium map as the "Employee Unit" shall be purchased by the Association from the Declarant (purchase price shall be $80,000.00, with 100% financing at 9% per annum amortized over a ten year period with equal monthly installments) and shall be deed restricted so as to provide for the employee housing as required by this paragraph 33.2. Such Employee Unit shall be utilized solely for the purposes hereinabove set forth and shall not be utilized for rental purposes. 33.3 The Association shall provide on-site management and maintenance and other tourist accommodation services for the management and operation of the common elements and for the compliance with the provisions and restrictions of such Code, consistent in quality and quantity to those provided by The Aspen Ski Lodge as of the date of this Declaration. Specifically, the following minimum tourist services shall be provided by the Association or contracted for by the Association in order to comply with the requirements of such Code, all of which services shall be deemed condominium common expenses: (a) On-site management from 8:00 a.m. to 8:00 p.m. seven days a week between December 1 and March 31, and between June 1 and September 15 of each year; (b) Twenty-four hour services on call between December 1 and March 31, and between June 1 and September 15 of each year; (c) A continental breakfast between December 1 and March 31, and between June 1 and September 15 of each year; -20- 33.6 In order to comply with the prov~s~ons of such Code, and in order that the Condominium Project may be maintained as a first class lodge facility as contemplated by such Code, the Declarant agrees for itself, and its successors, grantees and assigns, that the following requirements will be complied with: (a) If a Unit owner desires to sell a Unit, the showing of the Unit to prospective purchasers shall be done through appointment with the front desk management only, in order that any lodge guests in the Unit not be inconvenienced. (b) A Unit owner's choice of days to be utilized for personal use during any given high season as set forth in paragraph 3.6 shall be delivered in writing to the Board of Managers prior to the first day of the month of July preceding commencement of such high season. 33.7 No violation or breach of, or failure to comply with, any provision of this paragraph 33 and no action to enforce any such provision shall affect, defeat, render invalid or impair the lien of any mortgage, deed of trust or other lien on any Condominium Unit taken in good faith and for value and perfected by recording in the office of the County Clerk and Recorder of Pitkin County, Colorado, prior to the time of recording in said office of an instrument describing the Condominium Unit and listing the name or names of the owner or owners of fee simple title to the Condominium Unit and giving notice of such violation, breach or failure to comply; nor shall such violation, breach or failure to comply or action to enforce, affect, defeat, render invalid or impair the title or interest of the holder of any such mortgage, deed of trust, or other lien or the title or interest acquired by any purchaser upon foreclosure of any such mortgage, deed of trust or other lien or result in any liability, personal or otherwise, of any such holder or purchaser. Any such purchaser on foreclosure shall, however, take subject to this Declaration except only that violations or breaches of, or failures to comply with, any provisions of this paragraph 33 which occurred prior to the vesting of fee simple title in such purchaser shall not be deemed breaches or violations hereof or failures to comply herewith with respect to such purchaser, his heir, personal representatives, successors or assigns. 34. Reservation to Enl~rge and Supplement Condominium Project. 34.1 Declarant intends to enlarge this condominium project by making additions thereto of condominium units and improvements for the common use of all of the owners, and which shall be submitted in one or more phases. To facilitate such enlargement(s) of this project, Declarant reserves the right to so enlarge by submitting additional real property and/or improvements thereto by a duly recorded Supplement(s) to this Declaration and by filing for record a Supplement to the Map. All improvements, intended for common use of all of the owners of condominium units in this project, shall be depicted on the Supplement(s) to the Map, and such use denoted thereon. 34.2 Each such Supplement to this Declaration shall provide for a division of such additionally submitted -22- ,'..... ~, real property and improvements into condominium units similar in method and form to the division made of the real property and improvements in this Declaration. Each unit shall be separately designated, and each building shall be identified by a symbol or designation dissimilar to any other building in the condominium project. The undivided interest in and to the general Common Elements appurtenant to each such Unit shall not be a part of the general Common Elements of the condominium units described and initially created by this Declaration and the Map nor a part of the general Common Elements of subsequently submitted condominium units; provided, however, that all owners of condominium units in this Condominium Project shall have a non-exclusive right in common with all of the other Owners to use of the sidewalks, pathways, driveways and all other general Common Elements with this entire Condominium Proj ect. 34.3 Except as may be otherwise provided by the provisions of such Supplement(s) to this Declaration, all of the provisions contained in this Declaration shall be applicable to such additional condominium units submitted to this Condominium Project. 34.4 The common expenses of each separate building complex shall be kept and maintained separately, and such separate common expenses shall be the expense of (only) those owners within each separate building complex. The expenses for maintenance, repairs and/or operation of those items or facilities which are intended for common use shall be the expense of all of the owners of the entire project. Such expenses shall be divided equally among all of the condominium unit owners in the entire project based upon the total number of units in the entire project. 34.5 The insurance coverage referred to in paragraph 23 shall be in the form of a policy(ies) covering all of the improvements in the entire condominium project. In order to assess that portion of the premium attributable to each of the separate buildings, the Insurance Trustee shall request and obtain from the insurance agent or underwriter a written memorandum of premium cost which shall identify the premium cost to each separate building. The owners within each such separate building shall pay the premiums attributable to their separate building according to the assigned percentage interest in the general Common Elements appurtenant to each Unit. Further reference is made to those provisions of paragraph 23 which relate to the payment of insurance settlement proceeds to the condominium unit owners under the conditions therein provided. A condominium unit owner shall be entitled to share (only) in the insurance settlement proceeds which are atrributable to the building within which his condominium unit is located, and such share of said proceeds shall be based upon the assigned percentage interest in and to the general Common Elements appurtenant to his Unit. 34.6 Notwithstanding the provisions herein contained relating to enlargement of this project, Declarant's reservations shall not obligate Declarant nor create a duty to in any way enlarge this Condominium Project. 35. General. 35.1 If any of the prov~s~ons of this Declaration or any paragraph, sentence, clause, phrase or word, or the application thereof in any circumstance be invalidated, such -23- 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. 35.2 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. 35.3 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. 35.4 The provisions of this Declaration shall be liberally construed to effectuate its purpose. 35.5 The sale or lease of a Condominium Unit shall be subject to the covenants, restrictions and requirements contained in this Declaration and the Bylaws, but there are no rights of first refusal on sale. IN WITNESS WHEREOF, Declarant has duly executed this Declaration this day of , 1984. Declarant: RESORT INVESTMENT CORPORATION, a Delaware corporation (SEAL) By: . President ATTEST: . Secretary STATE OF COLORADO ) )ss. COUNTY OF PITKIN ) The foregoing instrument was acknowledged before me this day of , 1984, by as President and , as Secretary of Resort Investment Corporation, a Delaware corporation.. Witness my hand and official seal. My commission expires: Notary Public -24- ~ EXHIBIT A First Amended 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 ~.'" ..... EXHIBIT B CONDOMINIUM DECLARATION FOR THE ASPEN SKI LODGE CONDOMINIUMS Appurtenant Undivided Interest in General Unit Building Designation Common Elements 3 Aspen Ski Lodge 1/59 4 Aspen Ski Lodge 1/59 5 Aspen Ski Lodge 1/59 6 Aspen Ski Lodge 1/59 7 Aspen Ski Lodge 1/59 8 Aspen Ski Lodge 1/59 9 Aspen Ski Lodge 1/59 10 (employee unit) Aspen Ski Lodge 1/59 13 Aspen Ski Lodge 1/59 14 Aspen Ski Lodge 1/59 15 Aspen Ski Lodge 1/59 16 Aspen Ski Lodge 1/59 17 Aspen Ski Lodge 1/59 18 Aspen Ski Lodge 1/59 19 Aspen Ski Lodge 1/59 20 Aspen Ski Lodge 1/59 21 Aspen Ski Lodge 1/59 22 Aspen Ski Lodge 2/59 23 Aspen Ski Lodge 2/59 24 Aspen Ski Lodge 2/59 29 Aspen Ski Lodge 2/59 30 Aspen Ski Lodge 2/59 31 Aspen Ski Lodge 2/59 32 Aspen Ski Lodge 2/59 33 Aspen Ski Lodge 2/59 34 Aspen Ski Lodge 2/59 1 Aspen Ski Lodge 3/59 ") Aspen Ski Lodge 3/59 4 11 Aspen Ski Lodge 3/59 12 Aspen Ski Lodge 3/59 25 Aspen Ski Lodge 3/59 26 Aspen Ski Lodge 3/59 27 Aspen Ski Lodge 3/59 28 Aspen Ski Lodge 3/59 #'_., EXHIBIT C " #" STATE OF COLORADO COUNTY OF PITKIN TELEVISION LEASE AGREEMENT THIS AGREEMENT, made and entered into this day of , 1983, by and between CAPITAL TELECOMMUNICATIONS CORPORATION (hereinafter referred to as "Capital"), and MOLLY GIBSON UNIT OWNER'S ASSOCIATION, on behalf of itself and each and every Unit Owner thereof (hereinafter referred to as "Lessee"). WIT N E SSE T H : Capital and Lessee do hereby mutually agree as follows: 1. Capital will furnish and lease unto Lessee, and Lessee does hereby lease from Capital, for the term and under the terms and conditions herein set forth, the number and type of television sets and/or equipment herein specified. Said equipment shall be delivered by Capital (with the exception of conduit which is to be supplied by Lessee at its expense), in rooms located upon premises owned or leased or otherwise lawfully operated by Lessee located in MOLLY GIBSON, a condominium, (the "Condominium"), County of Grand, State of Colorado. Capital shall not be liable for delay in, or failure to make, delivery of equipment or installation caused by circumstances beyond its reasonable control, including, but not limited to, acts of God, fire, flood, wars, accidents, labor or different contingencies. The number and types of television sets and/or equipment leased under the terms hereof are as follows and are the model, type and design selected by the Lessee as suitable, in its jUdgment, for lessee's purpose. (a) One (1) 19-inch-Solid State Television for each residential Unit included in the Condominium; (b) One locking furniture swivel for each television set so provided; and (c) Cable, antenna systems, distribution equipment and amplification equipment for signal distribution. All equipment to be prepaid by Capital. 2. SERVICE: Capital shall keep and maintain, or cause to be kept and maintained, at its sole expense, said leased equipment in good operating order, condition and repair during the full term hereof except for damage to or repair to such equipment as might be made necessary by the negligent acts or omissions of the Lessee, its agents and/or employees. Capital shall promptly replace any defective set or injured part or parts thereof; provided, however, that in the event replacement of any defective set or sets shall occur, such substituted equipment shall be subject to all the terms hereof. It is the obligation of the Lessee to notify Capital of any deficiency in service as rendered by Reception or its service representative. Capital shall not be liable to Lessee for any loss, damage or expense of any kind or nature directly or indirectly caused by the television equipment covered hereby, or because of any failure thereof, or because of any interruption of service or loss of use or for any loss of business or damage whatsoever or howsoever caused, and Capital shall in no event be liable for any special or consequential damages. Lessee further agrees there shall be no abatement of rental during the time that may be required for repair, adjustment, servicing or replacement of equipment covered hereby. CONDOMINIUM DECLARATION FOR THE ASPEN SKI LODGE CONDOMINIUMS '- 3. NON-ASSIGNMENT OF LEASE: The equipment leased hereunder shall not be transferred, delivered or sublet to any other person, firm or corporation, and this agreement shall not be assigned by Lessee except upon prior written consent of Capital. 4. LOCATION: Lessee shall not remove said equipment or any part thereof from the premises where installed nor sellar encumber any of said leased equipment. Lessee further agrees to make no alteration in or repairs to said equipment except through the authorized service representative of Capital. 5. TERM: The term hereof Shall be for a period of on~ hundred twenty (120) months beginning on the date of the completion of the delivery of the equipment on the premises of Lessee, said date to be confirmed in writing by Lessee upon request of Capital. 6. RENT PAYMENTS: As rental for said equipment, Lessee shall pay to Capital, at Columbia, South Carolina, during the full term hereof, the sum of Dollars per set delivered per month as "Base Rental" plus tax. Upon each anniversary from the date of this agreement during the term of this agreement and any renewals hereof, the Base Rental may be adjusted by Capital in accordance with and by the same percentage as the percentage change in the cost of living index shown by the Consumer Price Index (or similar government index) for the proceeding twelve month period, whichever is less; provided, further, in no event shall the Base Rental during the term of this agreement and any renewals hereof ever be less than $13.00 (plus tax) per month. Base Rental payments plus tax are due on or before the first day of the month, the first of which shall be due on or before the first day of the month following the delivery of equipment. In the event that Lessee requests partial delivery of equipment, Lessee agrees to pay billing on an interim basis, with such billing based on rates for equipment in use, and upon completion of delivery, the full term of this lease shall commence. 7. OWNERSHIP: The equipment, together with wiring, reception and distribution facilities, leased under the terms hereof shall at all times be the sole property of Capital, its successors and assigns, and Lessee shall have no property interest therein, except under any conditions herein contained. Said equipment shall remain personal property and, no matter how connected with or attached to the premises of Lessee, will not become a part of the realty or fixtures therein, and Lessee, if so requested by Capital, will obtain written consent of any other party holding a mortgage, encumbrance or lien on the premises of Lessee, or of any purchaser of the premises of Lessee in the event of sale of same, that said equipment shall remain personal property. Lessee shall not at any time during the term hereof transfer, assign, mortgage or otherwise encumber any interest in said personal property. 8. DELIVERY: Should LeSsee and/or his agent order delivery of equipment and installation on specified dates and the Lessee's premises are not ready for installation of same, Lessee assumes full responsibiity for storage, insurance and any redelivery charges on equipment. 9. INSPECTION: Lessee grants unto Capital the right to inspect said equipment at all reasonable times during the full term hereof. 10. INDEMNITY: Lessee shall be responsible to all third parties, including paying guests, for any injury received as a result of the installation of said television sets in or about the premises of Lessee and shall carry public liability insurance to save Capital harmless in the event of such injury, except such personal injury or property damage as may be occasioned solely by negligent acts or omissions of agents or employees of Capital. 11. INSURANCE: Capital agrees during the term of this lease to replace or repair any of its equipment, including television sets in guest rooms, which is stolen, burglarized, damaged by fire or maliciously damaged while on the premises of Lessee, excepting television sets or equipment in storage awaiting use of service, providing, however: (a) Lessee reports within 48 hours of occurrence any such loss or damage to Capital and to local law enforcement authorities--notice of loss to be sent to Capital by Certified Maill (b) Lessee furnishes in such report all available information regarding such loss, including name and address of last occupant of room and room number in which loss occurred (if applicable), auto license number and other pertinent information which would assist in recovery of loss; (c) Lessee and its employees, agents and representatives cooperate fully with Capital and local law enforcement authorities in their subsequent efforts to effect recovery and prosecution if necessary. LeSsee agrees to notify Capital immediately in the event of subsequent recovery of property covered by any and all loss reports. Lessee agrees at all times to maintain and exercise due care, caution and watchfulness in the protection and accounting for the equipment under lease. Failure to cooperate in providing such care, caution and watchfulness shall make the terms and provisions of Item 11 "INSURANCE" null and void and LeSsee shall be responsible for the replacement of and/or repair to equipment for which such insurance is provided. In the event loss or damage proves to have been caused by employees, agents or representatives of Lessee, or if Lessee fails to comply with (a), (b) or (c) above, it shall be the responsibility of the Lessee to pay Capital for its cost of replacement or repair of Capital's equipment involved in such loss. In the event that service by Capital is not included in this agreement, Lessee agrees to maintain the theft equipment installed hereunder; otherwise, theft and burglary insurance will be null and void in the event of any losses while the equipment is inoperative. 12. TAXES: Lessee agrees to be responsible for the collection and payment of any local, state and federal fees, sales, use or property taxes or penalties that may be applicable now or any time during the term of this lease to the property covered hereby or the use or rental thereof. 13. RENEWAL: At the expiration of the term hereof, this lease agreement shall be automatically renewed for additional terms of two (2) years, unless either party hereto should give written notice to the other party hereto at least sixty (60) days prior to the expiration of the term hereof, or at least sixty (60) days prior to the expiration of any additional term of two (2) years thereafter, of the desire of such party to terminate this agreement. 14. DEFAULT: In the event that any payment of rental shall have become due as herein provided and shall remain unpaid for ten (10) days, or in the event of any other breach of the terms or conditions of this lease by Lessee, which breach shall not have been cured within ten (10) days after notice thereof by mail postage prepaid to Lessee's last known address, or should LeSSee be adjudged as bankrupt or there be filed against LeSsee a petition under the bankruptcy laws, or if any inSOlvency proceeding is initiated by or against Lessee, or if any equipment covered hereby is attached, seized or taken under any judicial process, all of the entire remaining unpaid rental payments shall, at the option of Capital, become immediately due and payable. If Lessee does not (a) pay the entire remaining rental payments under the lease or (b) cure its breach of the provisions of this lease, then and in that event Capital shall have the right, without giving further notice to Lessee, to remove the property thereby without liability and Lessee shall forthwith pay any and all damages, including attorneys' fees, suffered by Capital. Further, in the event of non-payment, Capital shall be, and hereby is, subrogated to the lien rights of the Condominium as to each Unit Owner failing to pay his share of Common Expenses necessary to make the rental payments herein required to the extent of the amount(s) due and owing to Capital, but unpaid, which shall include the right to file notice of and perfect a lien(s) against such Unit Owner(s) as granted to Lessee by the North Carolina Unit Ownership Act; PROVIDED, HOWEVER, such right and any lien filed thereunder shall be subordinate in lien and interest recorded prior to the recording of such notice of lien. Lessee agrees to pay late charges of five ($.05) cents per dollar in addition to the regular monthly payment or installment if payments hereunder are not made within ten (10) days after due date, but not exceeding One Hundred and No/IOO ($100.00) Dollars, or the lawful maximum, if any. Capital's failure to exercise a right or remedy under this lease or to require strict performance by the Lessee or any provision of this lease shall not waive or diminiSh Capital's right thereafter to demand strict compliance with any such right or provision or with any other rights or provisions. Waiver by Capital of any default by the Lessee shall not constitute waiver of any other or subsequent default. 15. SURRENDER: Upon expiration of this lease, Lessee shall remove the leased equipment from the premises referred to herein and surrender such equipment in good operating condition to Capital or its assignee and if the Lessee fails to so remove and surrender the leased equipment, Capital shall have the right to enter any premises where the leased equipment may be located and take possession and remove all such equipment either with or without permission and without prejudice to any other rights or remedies of Capital. If Capital determines, upon termination or expiration of the lease agreement, that, as a result of causes other than its failure to provide service as expressly required herein, the equipment covered hereby is not in good operating condition, reasonable wear and tear excepted, the Lessee shall upon demand by Capital either: (a) restore the equipment in good operating condition at its sole expense or (b) reimburse Capital for the reasonable expense of so restoring the equipment. 16. Should the equipment leased herein be covered by a Conditional Sales Contract, Chattel Mortgage or Security Agreement on which Capital is the purchaser or obligor, it is understood and agreed that this lease is subject and subordinate to the terms and conditions of said Conditional Sales Contract, Chattel Mortgage or Security Agreement. 17. NOTICE: Any notice required to be given by one party hereto to the other party hereto shall be in writing and sent by Certified Mail, addressed, postage prepaid, to the mailing address which shall be provided by the other party. 18. AMENDMENTS: This agreement constitutes the entire and only agreement between the parties with respect to leasing the equipment covered hereby and any representation, promise or conditions with respect to said leasing not set forth in this agreement or such amendments as may be accepted in writing by the designated officers of either party, shall not be binding on either party. 19. COLORADO LAW: Should any question arise as to the validity, construction, interpretation or performance of this lease agreement in any court of any State of the United States, or of Canada, it is agreed that the laws of the State of Colorado shall govern without reference to the place of execution or performance of same. The invalidity of any prOV1Slon of this agreement shall not affect the validity of any other provision hereof. agreement and any amendment hereto shall become binding upon parties hereto when executed by a duly authorized officer or of Lessee. This the ~~t 20. EASEMENTS: Lessee on behalf of itself and each and every of the Unit Owners does hereby grant to Capital during the term hereof and any renewals each and every such easement through, over, ,under and across the Submitted Property, the structures on and to be located thereon, including individual Units, as may be necessary and/or appropriate, for the' purposes of location, installation, maintenance and service of the cable, antenna systems, distribution equipment and amplification equipment herein leased, as well as the locking furniture swivels and television sets. 21. ASSIGNS: All rights, remedies and powers reserved or given to Capital shall inure to the benefit of Capital's assigns. 22. INTERIM BILLING: Lessee shall be billed per terms herein on the first day of the month following delivery of each television increment, and when units are delivered, the 120-month lease term will commence. IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the day and year first above written. SIGNED, SEALED & DELIVERED In The Presence Of: MOLLY GIBSON UNIT OWNER'S ASSOCIATION By_ CAPITAL TELECOMMUNICATIONS CORPORATION By_ EXHIBIT D STATE OF COLORADO COUNTY OF PITKIN TELEPHONE LEASE AGREEMENT THIS AGREEMENT, made and entered into as of the day of , 19 , by and between CAPITAL TELECOMMUNICATIONS CORPORATION (hereinafter referred to as "Capital"), and MOLLY GIBSON UNIT OWNER'S ASSOCIATION, on behalf of itself and each and every Unit Owner thereof (hereinafter referred to as "Lessee"). WIT N E SSE T H : Capital and Lessee do hereby mutually agree as follows: 1. Capital will furnish and lease unto Lessee, and Lessee does hereby lease from Capital, for the term and under the terms and conditions herein set forth, the telephones and equipment herein specified. Said equipment shall be delivered by Capital (with the exception of conduit which is to be Supplied by Lessee at its expense), upon premises and in Units located upon said premises owned or leased or otherwise lawfUlly operated by Lessee located in MOLLY GIBSON, a condominium (the "Condominium"), located in the County of Pitkin, State of Colorado. Capital shall not be liable for delay in, or failure to make, delivery of equipment or installation caused by circumstances beyond its reasonable control, inClUding, but not limited to, acts of God, Eire, flood, wars, accidents, labor or different contingencies. The number and types of telephone sets and equipment leased and installed under the terms hereof are as follows and are the model, type and design selected by Lessee as suitable, in its judgment, for lessee's purpose. (a) One (1) touch tone telephone for each residential Unit included in the Condominium mounted upon suitable bracket; (b) Non-exclusive use of one (1) central PBX system providing limited message forwarding and security; and (c) Cable and distribution equipment. 2. SERVICE: Capital shall keep and maintain, or cause to be kept and maintained, at its sole expense, said leased equipment in good operating order, condition and repair during the full term hereof except for damage to or repair to such equipment as might be made necessary by the negligent acts or omissions of the Lessee, its agents and/or employees. Capital Shall promptly replace any defective set or injured part or parts thereof; provided, however, that in the event replacement of any defective telephone set or sets shall occur, such substituted equipment shall be subject to all the terms hereof. It is the obligation of the Lessee to notify Capital of any deficiency in service as rendered by Capital or its representative(s). Capital shall not be liable to Lessee for any loss, damage or expense of any kind or nature directly or indirectly caused by the telephone sets or equipment covered hereby, or because of any failure thereof, or because of any interruption of service or loss of use or for any loss of business or damage whatsoever or howsoever caused, and Capital Shall in no event be liable for any special or consequential damages. Lessee further agrees there shall be no abatement of rental during the time that may be required for repair, adjustment, servicing or replacement of equipment covered hereby. 3. NON-ASSIGNMENT OF LEASE: The equipment leased hereunder shall not be transferred, delivered or sublet to any other person, firm or corporation, and this agreement Shall not be assigned by Lessee except upon prior written consent of Capital. CONDOMINIUM DECLARATION FOR THE ASPEN SKI LODGE CONDOMINIUMS 4. LOCATION: Lessee shall not remove said equipment or any part thereof from the premises where installed nor sellar encumber any of said leased equipment. Lessee further agrees to make no alteration in or repairs to said equipment except through the authorized service representative of Capital. 5. TERM: The term hereof shall be for a period of one hundred twenty (120) months beginning on the date of the comoletion of the delivery of the equipment on the premises of Lessee, said date to be confirmed in writing by Lessee upon request of Capital. 6. RENT PAYMENTS: Lessee shall pay to Lessor an installation fee of Fifty ($50.00) Dollars per Unit in which a telephone set is installed. In addition to the Fifty ($50.00) Dollar installation fee per Unit, as rental for said equipment LeSsee shall pay to Capital, at Columbia, South CarOlina, during the full term hereof, the sum of () Dollars per telephone set delivered per month as "Base Rental" plus applicable taxes. Upon each anniversary from the date of this agreement during the term of this agreement and any renewals hereof, the Base Rental may be adjusted by Capital in accordance with and by the same percentage as the percentage change in the cost of living index shown by the Consumer Price Index (or similar government index) for the proceeding twelve month period, whichever is less; provided, further, in no event shall the Base Rental during the term of this agreement and any renewals hereof ever be less than $15.00 (plus applicable taxes) per month. Base Rental payments plus tax are due on or before the first day of the month, the first of which shall be due on or before the first day of the month following the delivery of equipment. In the event that Lessee requests partial delivery of equipment, Lessee agrees to pay billing on an interim basis, with such billing shall be based on rates for equipment in use, and upon completion of delivery, the full term of this lease shall commence. The rent charged herewith shall include local telephone service but not charges for long distance service, which shall be in addition to the base rental charge, if available. 7. OWNERSHIP: The equipment, together with PBX switch- board wiring, reception and distribution facilities, leased under the terms hereof shall at all times be the sole property of Capital, its successors and assigns, and Lessee shall have no property interest therein, except under any conditions herein contained. Said equipment shall remain personal property and, no matter how connected with or attached to the premises of Lessee, will not become a part of the realty or fixtures therein, and Lessee, if so requested by Capital, will obtain written consent of any other party holding a mortgage, encumbrance or lien on the premises of Lessee, or of any purchaser of the premises of LeSsee in the event of sale of same, that said equipment shall remain personal property. Lessee shall not at any time during the term hereof transfer, assign, mortgage or otherwise encumber any interest in said personal property. 8. DELIVERY: Should LeSsee and/or his agent order delivery of equipment and installation on specified dates and the Lessee's premises are not ready for installation of same, Lessee assumes full responsibiity for storage, insurance and any redelivery charges on equipment. 9. INSPECTION: Lessee grants unto Capital the right to inspect said equipment at all reasonable times during the full term hereof. 10. INDEMNITY: Lessee shall be responsible to all third parties, including paying guests, for any injury received as a result of the installation of said telephone sets and system in or about the premises of Lessee and shall carry public liability insurance to save Capital harmless in the event of such injury, . except such personal injury or property damage as may be occasioned solely by neglig~nt acts or omissions of agents or employees of Capital. > 11. INSURANCE: Capital agrees during the term of this lease to replace or repair any of its equipment, including telephone sets in Units, which is stolen, burglarized, damaged by fi~e or maliciously damaged while on the premises of Lessee, excepting telephone sets or equipment in storage awaiting use of service, providing, however: (a) Lessee reports within 48 hours of occu~rence any such loss or damage to Capital and to local law enfo~cement authorities--notice of loss to be sent to Capital by Ce~tified Mail; (b) Lessee furnishes in such report all available information regarding such loss, including name and address of last occupant of room and room number in which loss occurred (if applicable), auto license number and other pertinent information which would assist in recovery of loss; (c) Lessee and its employees, agents and representatives cooperate fUlly with Capital and local law enforcement authorities in their SUbsequent efforts to effect recovery and prosecution if necessary. Lessee agrees to notify Capital immediately in the event of subsequent recovery of property covered by any and all loss reports. Lessee agrees at all times to maintain and exercise due care, caution and watchfulness in the protection and accounting for the equipment under lease. Failure to cooperate in providing such care, caution and watchfulness shall make the terms and provisions of Item 11 "INSURANCE" null and void and Lessee shall be responsible for the replacement of and/or repair to equipment for which such insurance is provided. In the event loss or damage proves to have been caused by employees, agents or representatives of Lessee, or if Lessee fails to comply with (a), (b) or (c) above, it shall be the responsibility of the Lessee to pay Capital for its cost of replacement or repair of Capital's equipment involved in such loss. In the event that service by Capital is not included in this agreement, Lessee agrees to maintain the theft equipment installed hereunder; otherwise, theft and burglary insurance will be null and void in the event of any losses while the equipment is inoperative. 12. TAXES: Lessee agrees to be responsible for the collection and payment of any local, state and federal fees, sales, use or property taxes or penalties that may be applicable now or any time during the term of this lease to the property covered hereby or the use or rental thereof. 13. RENEWAL: At the expiration of the term hereof, this lease agreement shall be automatically renewed for additional terms of two (2) years, unless either party hereto should give written notice to the other party hereto at least sixty (60) days prior to the expiration of the term hereof, or at least sixty (60) days prior to the expiration of any additional term of two (2) years thereafter, of the desire of such party to terminate this ag reemen t. 14. DEFAULT: In the event that any payment of rental Shall have become due as herein provided and shall remain unpaid for ten (10) days, or in the event of any other breach of the terms or conditions of this lease by Lessee, which breach shall not have been cured within ten (10) days after notice thereof by mail postage prepaid to Lessee's last known address, or should LeSsee be adjudged as bankrupt or there be filed against Lessee a petition under the bankruptcy laws, or if any insolvency proceeding is initiated by or against Lessee, or if any equipment covered hereby is attached, seized or taken under any judicial process, all of the entire remaining unpaid rental payments shall, at the option of Capital, become immediately due and payable. If Lessee does not (a) pay the entire remaining rental payments under the lease or (b) cure its breach of the provisions of this lease, . , then and in that event Capital shall have the right, without giving further notice to Lessee, to remove the property thereby without liability and Lessee shall forthwith pay any and all damages, including attorneys' fees, suffered by Capital. Further, in the event of non-payment, Capital shall be, and hereby is, subrogated to the lien rights of the Condominium as to each Unit Owner failing to pay his share of Common Expenses necessary to make the rental payments herein required to the extent of the amount(s) due and owing to Capital, but unpaid, which shall include the right to file notice of and perfect a lien(s) against such Unit Owner(s) as granted to Lessee by the North Carolina Unit Ownership Act; PROVIDED, HOWEVER, such right and any lien filed thereunder shall be subordinate in lien and interest recorded prior to the recording of such notice of lien. Lessee agrees to pay late charges of five ($.05) cents per dollar in addition to the regular monthly payment or installment if payments hereunder are not made within ten (10) days after due date, but not exceeding One Hundred and No/IOO ($100.00) Dollars, or the lawful maximum, if any. Capital's failure to exercise a right or remedy under this lease or to require strict performance by the Lessee or any provision of this lease shall not waive or diminish Capital's right thereafter to demand strict compliance with any such right or provision or with any other rights or provisions. Waiver by Capital of any default by the Lessee shall not constitute waiver of any other or subsequent default. 15. SURRENDER: Upon expiration of this lease, LeSsee shall remove the leased equipment from the premises referred to herein and surrender Such equipment in good operating condition to Capital or its assignee and if the Lessee fails to so remove and surrender the leased equipment, Capital shall have the right to enter any premises where the leased equipment may be located and take possession and remove all Such equipment either with or without permission and without prejudice to any other rights or remedies of Capital. If Capital determines, upon termination or expiration of the lease agreement, that, as a result of caUSes other than its failure to provide service as expressly required herein, the equipment covered hereby is not in good operating condition, reasonable wear and tear excepted, the Lessee shall upon demand by Capital either: (a) restore the equipment in good operating condition at its sole expense or (b) reimburse Capital for the reasonable expense of so restoring the equipment. 16. Should the equipment leased herein be covered by a Conditional Sales Contract, Chattel Mortgage or Security Agreement on which Capital is the purchaser or obligor, it is understood and agreed that this lease is subject and subordinate to the terms and conditions of said Conditional Sales Contract, Chattel Mortgage or Security Agreement. 17. NOTICE: Any notice required to be given by one party hereto to the other party hereto shall be in writing and sent by Certified Mail, addressed, postage prepaid, to the mailing address which shall be provided by the other party. 18. AMENDMENTS: This agreement constitutes the entire and only agreement between the parties with respect to leasing the equipment covered hereby and any representation, promise or conditions with respect to said leasing not set forth in this agreement or such amendments as may be accepted in writing by the designated officers of either party, shall not be binding on either party. . , 19. COLORADO LAW: Should any question arise as to the validity, construction, interpretation or performance of this lease agreement in any court of any State of the United States, or of Canada, it is agreed that the laws of the State of Colorado shall govern without reference to the place of execution or performance of same. The invalidity of any provision of this agreement Shall not affect the validity of any other provision hereof. This agreement and any amendment hereto shall become binding upon the parties hereto when executed by a duly authorized officer or agent of Lessee. 20. EASEMENTS: Lessee on behalf of itself and each and every of the Unit Owners does hereby grant to Capital during the term hereof and any renewals each and every such easement through, over, under and across the Submitted Property, the structures on and to be located thereon, including individual Units, as may be necessary and/or appropriate, for the purposes of location, installation, maintenance and service of the cable, transmission and distribution equipment and switchboard and PBX equipment herein leased, as well as the telephone sets and mounting brackets; and in addition thereto, to provide electricity and such other utility services to Capital as may be necessary to operate Capital's equipment leased hereby, at such locations upon the premises as are required by Capital, and at no cost to Capital. 21. ASSIGNS: All rights, remedies and powers reserved or given to Capital shall inure to the benefit of Capital's assigns. 22. INTERIM BILLING: Lessee shall be billed per terms herein on the first day of the month following delivery of each telephone set increment, and when all sets are delivered, the 120-month lease term will commence. IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the day and year first above written. SIGNED, SEALED & DELIVERED In The Presence Of: MOLLY GIBSON UNIT OWNER'S ASSOCIATION By Its CAPITAL TELECOMMUNICATIONS CORPORATION By Its ,..,.- FIRST SUPPLEMENT TO FIRST AMENDED CONDOMINIUM DECLARATION FOR THE ASPEN SKI LODGE CONDOMINIUMS (A Condominium) KNOW ALL MEN BY THESE PRESENTS THAT: WHEREAS, RESORT INVESTMENT CORPORATION, a Delaware Corporation. hereinafter called "Declarant", caused to be recorded the First Amended Condominium Declaration for the Aspen Ski Lodge Condominiums in Book at Page of the real property records in Pitkin County, Colorado; and WHEREAS. the provisions of paragraph 34 of the recorded First Amended Declaration reserve to Declarant the right to enlarge this condominium proj ect by submitting thereto adjoining real property, such addition to this condominium project to be expressed in and by a supplement to said First Amended Declaration and a supplement to the Condominium Map; and WHEREAS, Declarant does hereby submit to this condominium project additional improvements and real property hereinafter described; 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, it's successors or assigns, and any person or entity acquiring or owning an interest in the real property and improvements, their grantees, heirs, executors, administrators, devisees, successors or assigns. 1. Division of Property into Condominium Units. The real property described in Exhibit A and the improvements thereon are hereby divided into the following fee simple estates, each such estate consisting of the separately designated units and the undivided interest in and to the general common elements appurtenant to each unit as is set forth in Exhibit B annexed hereto and by this reference made a part hereof. Each such unit shall be identified on the supplement to the Condominium Map by number and building as shown on Exhibit B. 1.1 Declarant reserves the right to itself, its grantees, successors or assigns to: (i) physically combine the space within on unit with the space with one or more adjoining units; (ii) 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; or, (iii) divide into separate units the space of one unit. Any such physical changes to units shall be reflected by an amendment to Exhibit B and the supplement to the Condominium Map, which amendments shall set forth the reapportioned undivided interests of the affected units; provided, however, that no such physical changes shall be made without the written consent of the mortgagee(s) of the affected unit(s); and provided, further, that the cost and expense incurred for legal, architecture or engineering fees relative. to preparation or such amendment shall be born by that person requesting such physical change to the unites). 2. 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 referred to as "limited common elements". The limited common elements so reserved shall be identified on the supplement to the Condominium Map. (Any patio, balcony or deck which is accessible only from within, associated only with and which adjoins a single unit shall, 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 the use of sidewalks, pathways, driveways, streets and other facilities and improvements intended for common use located within the entire condominium project. No reference thereto, whether such limited common elements are exclusive or non-exclusive, need to be made in any deed, instrument of conveyance or other instrument. 3. Supplement to Condominium Map. The supplement to the Condominium Map depicting the locat~on of each unit, both horizontally and vertically, together with the engineering and other data as is provided by the provisions of paragraph 2 of the recorded First Amended Declaration shall be filed for record prior to the conveyance of the condominium units shown thereon. All of the provisions of paragraph 2 of the recorded First Amended Declaration are incorporated herein by this reference. 4. Description of Condominium Unit. Every contract for the sale of a condominium unit which is described in this First Supplement and every other instrument affecting title to any such condominium unit may describe that condominium. unit by the unit number and building designation shown on the supplement to the Condominium Map appearing in the records of the County Clerk and Recorder of Pitkin County, Colorado, in the following fashion: Condominium Unit ,Aspen Ski Lodge Building II, THE ASPEN'SKI LODGE CONDOMINIUMS, according to the First Amended Declaration recorded on , 1984, in Book at Page and the First Supplement to Declaration rE;COrded on , 1984, in Book at Page and the First Supplemental Condominium Map appearing in the records of the County Clerk and 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 ownership of a condominium unit and all the limitations on such ownership as described in the First Amended Declaration and this First Supplement to Declaration and any amendments hereto. 5. Revocation or Amendment to First Amended Declaration and First Supplement. The First Amended Declaration and this First Supplement thereto 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 instrument(s) duly recorded. The First Amended Declaration and this First Supplement thereto shall not be amended unless the owners representing an aggregate ownership interest of seventy-five percent (757.), or more, of the general common elements within the project, unless a different percentage for the amendment of a specific provision is provided, in which case that provision shall govern, and all of the holders of any -2- recorded first mortgage or deed of trust covering or affecting any or all condominium units consent and agree to such amendment, which consent shall not be unreasonably withheld, by instrument(s) duly recorded; provided, however, that the percentage of the undivided interest in the general common elements appurtenant to each unit 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 the First Amended Declaration and this First Supplement thereto, without the consent of all of the unit owners expressed in an amended declaration duly recorded. 6. General Reservations. Declarant reserves the right to establish easements, reservations, exceptions and exclusions consistent with the condominium ownership of the condominium project and for the best interests of the condominium unit owners and the Association in order to serve the entire condominium project. Notwithstanding any other provisions herein, so long as the Declarant continues to own any of the Units, the following provisions shall be deemed to be in full force and effect, none of which shall be construed so as to relieve the Declarant from any obligations as an Owner to pay assessments as to each Unit owned by the Declarant after the construction of said Unit has been completed and it is included in the Condominium. 6.1 The Declarant shall have the right at any time to sell, transfer, lease or re-let any residential Uni t (s) which the Declarant continues to own after this Declaration has been recorded, without regard to any restrictions relating to the sale, transfer, lease or form of lease of Units contained herein and without the consent or approval of the Association or any other Owner being required. 6.2 Without limiting the foregoing, the Declarant shall have the power, but not the obligation, acting alone, at any time (and from time to time) so long as the Declarant owns at least one Unit to amend the Declaration to cause the same to conform to the requirements of the Federal National Mortgage Association and/or the Federal Loan Mortgage Corporation, as set forth, respectively, in "FNMA Conventional Home Mortgage Selling Contract Supplement" and "Seller's Guide Conventional Mortgages," as the same may be amended from time to time. 6.3 The Declarant shall have the rights: (i) to use or grant the use of a portion of the Common Elements for the purpose of aiding in the sale or rental of Units; (ii) to use portions of the Condominium Project for parking for prospective purchasers or lessees of Units and such other parties as the Declarant determines; (iii) to erect and display signs, billboards and placards and store and keep the same on the Condominium Project; (iv) to distribute audio and visual promotional material upon the Common Elements; and (v) to use any Unit which it owns as a sales and/or rental office, management office or laundry and maintenance facility. 6.4 In order to provide the Condominium with, among other things, adequate and uniform water service, sewage disposal service, utility services and television reception, the Declarant reserves the exclusive right to contract for the provision of such services. The Declarant, as agent for the Association and the Owners, has entered into or may enter into arrangements, binding upon the Association -3- and the Owners, with governmental authorities or private entities for furnishing such services. The charges therefor will be Common Expenses. 6.5 The Declarant reserves the right to enter into, on behalf of and as agent for the Association and the Owners, agreements with other Persons for the benefit of the Condominium, the Association and the Owners. The provisions of any such Agreement shall bind the Association and the Owners. The Declarant, as agent for and on behalf of the Association and the Unit Owners, has entered into an agreement with Capital Telecommunications Corporation, pursuant to which it will provide a color television set in each Unit together with antenna television reception service and maintenance and service therefor. This agreement, a copy of which is attached as Exhibit C and incorporated herein by reference is binding upon the Association and the Owners. The fees for rental of such television sets and for such services (initially $13.00 plus applicable taxes per Unit per month) shall be Common Expenses. If the Association fails to pay the amounts due under the agreement with Capital Telecommunications Corporation, the latter, if it duly performs its obligations under such agreement, shall be subrogated to all rights of the Association as to Common Expenses. The agreement with Capital Telecommunications Corporation may be amended only by a written amendment executed by the Board of Managers and Capital Telecommunications Corporation. The Declarant has also entered into an agreement with Capital Telecommunications Corporation, pursuant to which it will provide a telephone in each Unit tied to a central PBX system and maintenance and service therefor. This agreement, a copy of which is attached as Exhibit D and incorporated herein by reference, is binding upon the Association and the Owners to the extent allowed by law. The fees for rental of such telephone sets and service ($50.00 installation fee plus service charge plus applicable taxes per Unit per month) shall be Common Expenses. The service charge may be escalated pursuant to the increase in the Consumer Price Index on an annual basis. If the Condominium fails to pay the amounts due under the agreement with Capital Telecommunications Corporation, the latter, if it duly performs its obligations under such agreement, shall be subrogated to all rights of the Association as to Common Expenses. The agreement with Capital Telecommunications Corporation may be amended only by a written amendment executed by the Board of Managers and Capital Telecommunications corporation. 6.6 THE DECLARANT SPECIFICALLY DISCLAIMS ANY INTENT TO HAVE MADE ANY WARRANTY(IES) OR REPRESENTATIONS(S) IN CONNECTION WITH THE CONDOMINIUM PROJECT (INCLUDING ANY HARRANTIES AS TO MERCHANTABILITY OR FITNESS FOR USE OR FITNESS FOR A PARTICULAR PURPOSE) OR THE DOCUMENTS ESTABLISHING OR GOVERNING THE CONDOMINIUM, EXCEPT THOSE WARRANTIES AND REPRESENTATIONS (IF ANY) EXPLICITLY SET FORTH HEREIN. NO PERSON SHALL BE ENTITLED TO RELY UPON ANY WARRANTY OR REPRESENTATION NOT EXPLICITLY SET FORTH HEREIN. STATEMENTS (IF ANY) AS TO COMMON EXPENSES, TAXES, ASSESSMENTS OR OTHER CHARGES MADE BY THE DECLARANT OR ANY REPRESENTATIVE THEREOF ARE ESTIMATES ONLY AND NO WARRANTY, GUARANTEE OR REPRESENTATION IS MADE THAT THE ACTUAL AMOUNT OF SUCH COMMON EXPENSES, ASSESSMENTS OR OTHER CHARGES WILL CONFORM WITH SUCH ESTIMATES. 7. Acce tance of Provisions of all Documents. The conveyance or encum rance 0 a con om~n~um un~t s a be deemed to include the acceptance of all of the provisions of the First Amended Declaration, this First Supplement thereto, the Articles of Incorporation and By-Laws of the Aspen Ski -4- Lodge Condominium Association, and such Rules and Regulations as may be in effect from time to time, and shall be binding upon each grantee or encumbrancer without the necessity of inclusion of such an express provision in the instrument of conveyance. 8. General. 8.1 Except as is otherwise provided by the provisions of the First Supplement to Declaration, all of the provisions contained in the First Amended Declaration are made a part of this First Supplement. 8.2 If any of the provisions of this First Supplement to the First Amended Declaration or any paragraph, sentence, clause, phrase or work, or the application thereof in any circumstance be invalidated, such invalidity shall not affect the validity of the remainder of this instrument, and the application of any such provisions, paragraph, sentence, clause, phrase or word in any other circumstances shall not be affected thereby. 8.3 "Declarant" as used herein means the named Declarant, its successors and assigns. 8.4 The provisions of this First Supplement to the 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. 8.5 That whenever used herein, unless the context shall otherwise provide, singular number shall include the plural, the plural the singular, and the use of any gender shall include all genders. 8.6 Paragraph titles are for convenience of reference and are not intended to limit, enlarge or change the meaning of the contents of the various paragraphs. IN WITNESS WHEREOF, Declarant has duly executed this First Supplement to First Amended Condominium Declaration this ____ day of , 1984. Declarant: (SEAL) RESORT INVESTMENT CORPORATION, a Delaware corporation ATTEST: By: , President , Secretary STATE OF COLORADO ) )ss. COUNTY OF PITKIN ) The foregoing this day of as President and Investment Corporation, instrument was acknowledged before me , 1984, by as Secretary of Resort a Delaware corporation. Witness my hand and official seal. My commission expires: Notary Public -5- EXHIBIT A First Supplement to First Amended Condominium Declaration for THE ASPEN SKI LODGE CONDOMINIUMS Lots 0, P and Q, Block 59, City and Townsite of Aspen, Pitkin County, Colorado EXHIBIT B FIRST SUPPLEMENT TO FIRST AMENDED CONDOMINIUM DECLARATION FOR THE ASPEN SKI LODGE CONDOMINIUMS Unit Building Designation Aspen Ski Lodge II Appurtenant Undivided Interest in General Common Elements Ii 'I Ii ... II " ~r-C;i,:'rlf,lJ'( DO: "':rilE.' --II' ";'f::;'>~"f. J. ['; : ~9 ~O: ~ Il. 11 F\ ~ . ~ ~ l!~ l. - ';.. ,I NOT fOR PKUtU. .......... /It! I r--- I' / Z. f' /"\ '- (j cg (), 'Sr_, 'fC ~,? ..../ I.' V 0,,' , ,.... (.,.... ASSOC~~IbN--'C , ,. $'C" i" r;;Oo ARTICLES OF IN:ORPO~~TION OF THE ASPEN SKI LODGE CONDOMINIUM 'i II II :: 1: I' ;! :; The undersigned, acting as Incorporator of a corpor- , ii ation under the Colorado Non-Profit Corporation Act, signs and Ii ,I ackno\~ledges the following Articles of Incorporation for such il Ii corporation. Ii i! ARTICLE I Ii Ii NAME il 1'1 The name of the corporation shall be THE ASPEN SKI II LODGE CONDOMINIUM ASSOCIATION, hereinafter called the i Ii :1 ii II II It " Ii 'I I, i' ,I il +I Ii i!~" I I, I, " Ii 'i Ii II 'I :! "Association". ARTICLE II PURPOSE The purpose for which the Association is organized is to provide an entity pursuant to C.R.S. 1973, 38-33-101 et as from time to time it is amended, supplemented or 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 " :t called "the Nonprofit Corporations Act"), for the :! i! :: operation of THE ASPEN SKI LODGE CONDOMINIUMS, (hereinafter I :1 ,. called "the property") a condominium .located on Lots E, F, G, ,t '. H and I, Block 59, City and Townsite of Aspen, Pitkin County, I, Colorado. " I: ARTICLE III POl'lERS r II I I: " II II ii i , 2. The Association shall have all of the powers and duties set forth in the Condominium Act except as limited by Ii " '. these Articles and the Condominium Declaration (hereinafter ca lIed the "Declaration") for the property and all of the " powers and duties reasonably necessary to operate the Associa- I! I: I! :' i; !: ii tion as set forth in the Declaration and as it may be amended from time to time, including but not limited to the following: I' Ii " Ii 'I II Ii Ii II II !! 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 :i :: members as provided by the Declaration. ii I: " I; I' 2.5 To reconstruct improvements after casualty and to further improve the property. 2.6 To'make and amend reasonable rules and regu- I' Ii Ii Ii P ,I Ii I: Ii I' :! Ii 'I I 1: Ii " !I " I: ,: Ji " I ;1 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- 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- minium property and to delegate to such manager all powers and " il duties of the Association except as such are specifically " I' " :i " I, I' I! , required by the Declaration to have approval of the Board of Managers or the membership of the Association. " " il Ii Ii !: II Ii !i I' II I' !I :j I' !; ;1 Ii ,: 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- Ii \i 'I II I[ !, I! 2.10 To employ personnel to perform the services required for proper operation of the Association and of the , II " ij II " condominium property. :: 2.11 To collect delinquent assessments by suit or Ii otherwise and to enjoin or seek damages from an owner as is i: i: I: provided in the Declaration and By-Laws. , i ': 2.12 To protect and defend in the name of the II Association any part or all of the condominium project from :i I' loss and damages by suit or otherlV'ise. Ii " :1 2.13 To borrow funds in order to pay for any expen- ~ : " ii diture or outlays required pursuant to authority granted by ,I I' " Ii Ii II I' " :1 provisions of the Declaration and By-Laws, and to execute all such instruments (evidencing such indebtedness) deemed neces- sary. " " 1; II and powers of the Association. .1 " 2.15 To execute contracts to carry out the duties 2.16 To engage in activities which may now or II hereafter be allowed or permitted by law for a non-profit 'I I, I. II I) corporation to actively foster, promote and advance the common i! interests of the condominium unit owners. Ii ;! ,: ii Ii !I I! 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 " Ii with the provisions of the Declaration, these Articles, and " ii " I' ,I ii 'i i! 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 Ii " 1: the Declaration and the By-Laws of the Association. I !! ARTICLE IV MEMBERS I. The members of the Association shall consist [I solely of all record owners of condominium units of the Asso- I ciation. -3- I: I: L I' i: " " I 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 i, I; " " I. " Ii 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. ij j! i 3. The share of a member in the funds and assets of the Association cannot be assigned, hypothecated, or trans- fer red in any manner except as an appurtenance to his condo- Ii 'I I' II I. I! d p " I; Ii " ,: " II " I: :I I ! i 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 BOARD OF MANAGERS I. The affairs of the Association will be managed by a Board consisting of the number of Managers as shall be Ii II Ii I' Ii ii ii Ii ,. I! " I' " I: Ii , i: \: I' II i " Ii ,- i! determined by the By-Laws, but not less than three (3) nor more than seven (7) Managers, and in the absence of such 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 Ii I: !! Ii !: " :1 " " II " Ii Ii " I' :I " ,i :: remaining Managers. 4. The names and addresses of the members of the f~rs~ Board of Mar.age~s who shall hold office until their -4- Ii Ii , j: ;: " " Ii I successors are elected and have qualified, or until removed, are as follows: , !; Ii :1 " II I! il 1. Perry A. Harvey 710 E. Durant Aspen, Colorado 81611 2. Lawrence Dempsey P.O. Box 5171 400 Wood Road Snowmass Village, Colorado 81615 I, " ': II I: 3. William Heldman c/o Mason and Morse P.O. Box 5039 Snowmass Village, Colorado 81615 i; 1 ~ 'I I] II II " Ii I: !i ARTICLE VI OFFICERS The affairs of the Association shall be administered 'i I, !I I, I' I' I li i1 ,: II I: Ii !! i: il " I: II II if II " i! 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: William Heldman c/o Mason and Morse P.O. Box 5039 Snowmass Village, Colorado 81615 " II ]. " 1 11 il ~ i II I, II 'I !\ Secretary-Treasurer Lawrence Dempsey P.O. Box 5171 400 Wood Road Snowmass Village, Colorado 81615 ARTICLE VII !i , " !i . REGTSTERED OFFICE The registered office of the Association shall be I: " " 400 Wood Road, Snowmass Village, Colorado, 81615, and the Registered Agent of the Association, whose address is identical ': ! ~ to that of the Registered Office of the Association, shall be !J'.T,u!>.r:NC:E DEMPSEY. L 1 1: -5- II Ii Ii II Ii Ii " ," ~ Ii ARTICLE VIII " " " il " INDEMNIFICATION " !i Every Manager and every officer of the Association shall be indemnified by the Association against all liabili- I I: " ii ,I II Ii I, I ties, including counsel fees, reasonably incurred or imposed upon him in connection with any proceeding, or any settlement !; ii il 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 Ii :i q Ii Ii I' ,I " II II I Ii " I' II 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 ii Managers approves such settlement and reimbursement as being I for the best interests of the Association. The foregoing I , q right of indemnification shall be in addition to 'and not " !i Ii exclusive of all other rights to which such Manager or officer :i I: I' I' il i! may be entitled. ARTICLE IX " !i Ii I! i: adopted by the Board of Managers, and may be altered, amended " BY-LAWS The first By-Laws of the Association shall be II or revoked in the manner provided by the By-Laws. " i: " ARTICLE X I! I: AMENDMENTS :i Amendments to the Arti.cles of Incorporation shall be Ij !i proposed and adopted pursuant to and as required by the terms 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- i I I tI Ii II Ii , action of its members. The Association shall be terminated by the termination of the condominium in accordance with the " :, Ii Ii Ii :! provisions of the Declaration. ARTICLE XII NONPROFIT ASSOCIATION Ii I; This Association is not organized for profit. No l' member, member of the Board of l-Ianagers, officer or person ii 'I I, " from whom the Association may receive any property or funds ,: t! " I: II !I I' 'i Ii II II I, Ii Ii ,! Ii 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 compensation may be paid to any member, Manager, or officer ji Ii I' I, ii II while acting as an agent or employee of the Association for services rendered in effecting one or more of the purposes of i, Ii Ii ,I Ii , the ~ssociation, 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- !' ii " I; I' Ii " !: 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 Incoroorator hes hereun'to dY da~ Of~P~~~ affixed his signature on this 198 D q~{s~aJ.:: -7- II I' Ii I' !I II il " ;1 Ii Ii " " / A~TICLES OF INCORPORATION OF i i, THE ASPEN SKI LODGE CONDOMINIUM ASSOCIATION I Ii I, , I' " I: 1\ " STATE OF COLORADO ) ) ) ss. Ii d Ii [! :! " II I: II County of Pitkin I, WI/-",,,,., A. :In!tlM,I w: , a Notary Publ ic 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. I' Ii :1 " I' Ii I Given under my hand and notarial seal this ~~ day ofOeC. , 198 . My commission expires: 1~~/tf-3'/ " " I: " i: I Ivitness my hand and official seal. ii I; i: II " ii Ii Ii ?V/i4-~ Notary Public ~ :i " I' ,I I' ,I " I! I: ,I " II 'I II :1 " " ii -8- " , / / FIRST AMENDED BY-LAWS OF THE ASPEN SKI LODGE CONDOMINIUM ASSOCIATION ARTICLE I OBJECT 1. These First Amended By-Laws are adopted by Resort Investment Corporation as the owner of at least 83% of the undivided interest in the general common elements of the Aspen Ski Lodge Condominiums pursuant to Article VIII of the original By-Laws of the Aspen Ski Lodge Condominium Association dated which By-Laws are hereby repealed and superceded by these First Amended By-Laws. 2. 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 Condominium Ownership 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. 3. All present or future owners, tenants, future tenants, or any other person that might use or have an interest in any manner in the facilities 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 condominium 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 obligations 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 conunon elements, not a percentage of the total members in the Association. - 3. Majority of ~ Owners: As used in these By-Laws the term "majority of utlrt owners" shall mean more than fifty (507.) 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. 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, hereinafter referred to as "Association", who will have the responsibility 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 meetings 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 Board of Managers and the President may call special meetings of the owners upon their own initiative. Also, upon receipt of a petition signed by unit owners who own at least one-third (1/3) of the undivided interest in the general conunon elements calling for a special meeting, the President shall call a special meeting of 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 be held at such place and time as the President determines within thirty (30) days after receipt by the President of such petition. 5. Notice of Meetinfs: The Secretary shall mail or deliver a notice of each annua 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. Action without Meeting: Any action required by law to be taken at a meeting of the Association or any action which may -2- '0, ~ be taken in a meeting of the Association may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by unit owners who hold not less than 2/3 of the undivided interest in the general common elements and further provided the same is not otherwise prevented by these By-Laws, the First Amended Declaration or Colorado law. 7. Adjourned Meetings: If any meeting of owners cannot be organized because a quorum has not attended, a special Board meeting may be called by the President or the Secretary and by action of two-thirds of the entire membership of the Board of Managers a quorum may be declared provided there are owners who hold at least one third (1/3) of the undivided interest in the general common elements present and that the business to be conducted at such meeting does not require that a greater number of owners be present. Otherwise, the owners who are present, either in person or by proxy, may adjourn the meeting, from time to time, until a quorum is obtained. 8. Order of Business: The order of business at the annual meetings of tnE!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. 9. Performance of Functions ~ Declarant: Notwithstand- ing the provisions of paragraph 3 of Article III, the rights, duties and functions of the Board of Managers, at the option of Declarant (as defined in the First Amended Condominium Declaration for the Aspen Ski Lodge Condominiums), shall be exercised by the Declarant until three-fourths (3/4) of all condominium units have been sold and conveyed. ARTICLE IV BOARD OF MANAGERS 1. Number and Qualification: At the first meeting there shall be elected frorillimong 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 dutiesnecessary for the administration of the affairs of the Association and for the operation and maintenance of the condominium project as a first class residential condominium 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- If" ". (d) Transportation (minimum size of eight passenger van) to and from the Pitkin County Airport between December 1 and March 31, and between June 1 and September 15 of each year; (e) The following amenities shall be available to the lodge guests: continental breakfast, wine and cheese (during high season only) several times per week, swimming pool, jacuzzi and cable television. (f) Front desk service between 8:00 a.m. and 8:00 p.m. seven days per week between December 1 and March 31 and between June 1 and September 15 of each year, which service shall include check-in, key pick-up, check-out and telephone switchboard. (g) Maid service for the lodge guests on a daily basis between December 1 and March 31 and between June 1 and September 15 of each year. 33.4 The common areas of the Condominium Project shall remain common areas and the Condominium Project shall be maintained in a manner consistent with its character as of the date of this Declaration. Any changes, alterations or renovations made to common areas shall not diminish the size or quality of the common areas. 33.5 In order to comply with the provisions of such Code, the Declarant agrees for itself and its successors, grantees and assigns that the personal property, furniture and fixtures (including, but not limited to furniture, fixtures, decorations, wall surfacing, window covers, bathroom fixtures and carpeting) contained with each Unit shall be maintained in a uniform, first class condition comparable to such condition as of the date of this Declaration. The Board of Managers of the Association shall decide when and how such personal property, furniture and fixtures shall be maintained and/or replaced and the respective Unit owners shall comply with such decisions of the Board. The Board shall notify a Unit owner of any such decisions and such Unit owner shall have thirty days within which to commence compliance with such decisions, and full compliance shall be made within the ensuing sixty day period. Payment for the maintenance and replacement of such furniture, fixtures and personal property within the Units shall be the responsibility of each respective Unit owner. The Association shall not be responsible for such payment and the common elements shall not be subject to lien as a result of nonpayment by any Unit owner. In the event that a Unit owner fails to comply with the decisions of the Board, as required by this paragraph 33.5, the Association may replace and/or maintain the said furniture, fixtures or personal property within a Unit in order to maintain such uniform and first class condition. In such event, the Unit owner shall reimburse the Association for all monies expended thereby, including a service charge in the amount of twenty percent of such monies expended, within three days of delivery of notice to the Unit owner of such monies expended by the Association on behalf of the Unit owner. In the event a Unit owner does not so timely reimburse the Association, the Association shall have a lien on the Unit foreclosable pursuant to the provisions contained in paragraph 25, above. -21- " , .... 3. Other Powers and Duties: Such powers and duties of the Board of Managers shall-rnclude, 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 Declaration submitting the property to the provisions of the Condominium 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. (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 cOlIDllon elements and all items of connnon personal property. (d) To provide for insurance coverage through the Insurance Trustee as described in the First Amended Declaration for all of the insurable cOlIDllon elements of the property in an amount equal to the maximum replacement value, and for all of the connnon fixtures, cOlIDllon equipment and cOlIDllon personal property for the benefit of the owners of the condominium units and their first mortgagees. Further. to provide for 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 cOlIDllon assessments payable by the unit owners to meet the cOlIDllon expenses of the condominium project. To allocate and assess such cOlIDllon charges among the unit owners according to their respective cOlIDllon ownership interests in and to the general cOlIDllon 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 necessary): the maintenance, repair, operation, additions, alterations and improvements of and to the connnon elements, including expenses of management; insurance relative to the connnon elements; cOlIDllon electricity, connnon heating, cOlIDllon water, and cOlIDllon sewer; trash collections; legal and accounting relative to the cOlIDllon elements and the Association; snow removal; and other services deemed necessary by the Board of Managers for the maintenance of the connnon elements and operation of the Association. By majority vote of the Board to adjust. decrease or increase the amount of the quarterly or monthly assessments, and remit or return any excess of assessments 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 First Amended 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 -4- .,...._" , " ',.,,,, 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 cOUDIlon 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 First Amended Declaration and these By-Laws, and to execute all such instruments evidencing such indebtedness as the Board of Managers may deem necessary and give security therefor (including security which may be liens upon the cOUDIlon elements). Such indebtedness shall be the several obligation of all of the owners in the same proportion as their interest in the general cOUDIlon elements. (i) To enter into contracts to carry out their duties and powers. (j) To establish a bank account or accounts for the cOUDIlon treasury and for all separate funds which are required or may be deemed advisable. (k) To maintain the general and limited cOUDIlon elements; to make or cause to be made repairs, replacements, additions, alterations and improvements to the general and limited cOUDIlon 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 cOUDIlon 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 as 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 cOUDIlon element or cOUDIlon property. (1) To keep and maintain full and accurate books and records showing all of the receipts, expenses or disbursements 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 COUDIlon elements. (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 operation of this condominium property. (q) To control and manage the use of a11.parking areas. (r) who shall have and Board of Managers To employ for the Association a Managing Agent exercise all of those powers granted to the from time to time by the First Amended -5- r '.. ..~".... 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. (s) To enter into such agreements as it deems desirable to provide common services or to lease equipment for the use and enjoyment of the Owners or anyone or more Owners. Such rights shall include but not be limited to the right to enter into lease and/or use and/or purchase agreements with third parties to provide recreational equipment and facilities and/or to install, sell and/or lease to the Condominium an MATV system and/or cable television system and/or television sets and/or telephone systems and sets. Furthermore, Declarant (as defined in the First Amended Declaration) shall have the right to enter into such agreements on behalf of and for the Association, its Board and the Owners which agreement(s) shall be binding upon the Association and each and every Owner. 4. No Waiver of Rights: The omission or failure of the Association or-any condomTnium unit owner to enforce the covenants, conditions, restrictions, easements, uses, limitations, obligations or other provisions of the First Amended 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 terDlOf 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. 6. Vacancies: Vacancies in the Board of Managers caused 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; 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 Managers 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. ~ular Meetings: Regular meetings of the Board of Managers may be-held at such time and place as shall be determined, from time to time, by a majority of the Managers, but at least one such meeting shall be held every six (6) 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 -6- '.."\ "'-'" '............. 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 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~anager 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. Action without Meeting: Any action required by law to be taken at any meeting of the Board of Managers or any action which may be taken in a meeting of the Board of Managers may be taken without a meeting if a consent in writing setting forth the action so taken shall be signed by two thirds of the Managers. 13. Board of Managers' ~uorum: At all meetings of the Board of Managers, a majority of t e 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. 14. 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. 15. Compensation: No member of the Board of Managers shall receive any compensation for acting as such, but shall be entitled to reimbursement for any actual out-of-pocket 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 extenses: shall include all funds and expenditures within the year or which the funds are budgeted, including a reasonable allowance for contingencies and working funds, except expenditures chargeable to reserves or to additional improvements. -7- ''''", ~"'" - (b) Reserve for deferred maintenance: shall include funds for maintenance items which occur less frequently than annually. (c) Reserve for re~lacement: shall include funds for repair or replacement require because of damage, wear or obsolescence. ARTICLE VI OFFICERS 1. Desi~nation: The officers of the Association shall be a President, a ice 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 condominium project, or the Declarant(s) or their representative(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 memberSlof 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 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 -8- ....'"'"''' / '\ "",.,,,$ 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 accounts 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 depositories 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. The Treasurer shall render a financial report to each regular meeting of the Board and to the Annual Meeting of the Association. 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, 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 indemnification 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 First Amended 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 losses incurred because of an inability to collect such proportionate 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. -9- ~,. ',> f ~ . ARTICLE VIII AMENDMENTS TO BY-LAWS AND ARTICLES AND DISSOLUTION I. 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 shall be required for amendment. No amendment may be enacted affecting the security or rights of an Institutional Mortgagee without express written consent of such Institutional Mortgagee. No Amendment may be enacted affecting any right of the Declarant without consent of the Declarant. 2. Amendments to Articles of Incortoration: The Board of Managers shall adopt a resolution setting orth any 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. 3. Dissolution: Termination of the Condominium shall automatically dissolve this Association. It may also be dissolved in the manner provided by law. Upon dissolution those funds held by the Association for the Owners shall be turned over to the Association's successor as governing entity of the Condominium, or if the Condominium be terminated, after payment of all debts and expenses, divided as provided according to the percentage ownership interests of the Owners in the Common Elements and disbursed as provided by law and/or the First Amended Declaration, provided, however, the residual of any property of any nature owned by the Association not held by it on behalf of the Owners or any of them, shall, if appropriate, be turned over to one or more organizations which, themselves, are exempt from Federal Income Tax as organizations described in Sections S01(e) (3) and 170(c) of the Internal Revenue Code and from Colorado Income Tax, or to the Federal, State or Local Government for exclusively public purposes. ARTICLE IX MORTGAGES 1. Notice to Association: An owner who mortgages his unit shall notify the-Xssociation through the Managing Agent, if any, or the Secretary of the Board of Managers, giving the name and address of his mortgagee. 2. Notice of Unraid Common Assessments: The Board of Managers, upon ten days wr tten 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 g~v~ng notice to a umt 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. -10- " " '" ~" 4. Examination of Books: Each unit owner and each mortgagee of a condominiumllnit 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 OWNERSHIPN REGISTRATION OF MAILING ADDRESS AND DESIGNATIO OF VOTING REPRESENTATIVE 1. Proof of Ownership: Except for those owners who initially purchase alCOndominium unit from Declarant, any person on becoming an owner of a condominium unit shall furnish to the Managing Agent or Board of Managers a 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 Association for mailing of monthly statements, notices, demands 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. Desi~nation of Voting Representative - Proxy: If a condominium unit 1S ownedl)y 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 snall~first met before an owner 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 expenses. The assessments shall be made pro-rata -11- according to percentage or fractional interest in and to the general common elements, and shall be due in advance. 2. Notice of Lien or Suit: An owner shall give notice to the Association or everYL~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 and Repair: (a) Every owner must perform promptly, at his own expense, all maintenance and repair work required of individual owners by the First Amended Declaration of these By-Laws 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. 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 adjudi- cation or settlement of the claim or litigation. Disbursement 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 First Amended 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. 5. General: (a) Each owner shall comply strictly with the prov~s~ons of the recorded First Amended Condominium Declaration and these By-Laws and amendments thereto. -12- r~''''_ , ~ "" ..-" (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) Each Unit, other than any Unit owned by Declarant or designated as a commercial Unit, shall be utilized for residential purposes only; provided, however, such shall not prevent rent or lease of a Unit by an Owner to a lessee or renter to use for residential purposes. (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 First Amended 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: Each owner mayusethe 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 By-Laws and established by the Board of Managers as is provided in paragraph 9 of this Article. 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. 9. Rules and Regulations: (a) The initial rules and regulations, which shall until amended or supplemented by the Board of annexed hereto and made a part hereof as Schedule A. be effective Managers, are (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 condrnrrrnium unit, thereby grants his power of attorney in favor of the Association and/or the Insurance Trustee, as appropriate, irrevocably appointing the Association and/or the Insurance Trustee his attorney-in-fact to deal with the owner's condominium unit upon its damage, destruction or -13- /' ""," obsolescence, all as is provided in the First Amended Condominium Declaration. 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 telegraph, 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. ARTICLE XIII ASSOCIATION - NOT FOR PROFIT 1. Association Not 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 member, Manager or officer may, from time to time, be reimbursed for his actual and reasonable expenses incurred in connection 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. -14- ,F' ''"'' ..... --' ARTICLE XIV MORTGAGEES AS PROXIES 1. Mort~agees as Proxies: Condominium unit owners shall have the right to ~rrevocaoly 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 First Amended Condominium Declaration. Such proxy shall become effective upon the filing of a notice by the mortgagee or beneficiary with the Secretary of the Association 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 First Amended 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 XV 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 XVI COMMON ELEMENTS AND RECREATIONAL FACILITIES 1. elements are: The major recreational facilities which are common swimming pool and jacuzzi. 2. New additions of general and limited common elements may be made by the Declarant (as defined by the First Amended Condominium Declaration) or by the Declarant's successors, if permitted by the recorded First Amended 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 Association 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 -15- ~ , units shall be entitled to cast shall be as was the number of votes to which the entitled (as designated in the First Declaration). computed on the same basis existing unit owners are Amended Condominium IN WITNESS WHEREOF, the undersigned has hereunto set its hand and official seal this ____ day of , 1984. RESORT INVESTMENT CORPORATION, INC.. a Delaware corporation (SEAL) Attest: By: President , Secretary STATE OF COLORADO ) )ss. COUNTY OF PITKIN ) The foregoing First Amended By-Laws of the Aspen Ski Lodge Condominium Association were acknowledged before me this day of 1984 by as President and as Secretary of Resort Investment Corporation, Inc. My commission expires: Witness my hand and official seal. Notary Public Address: -16- , ,'.- -, SCHEDULE A 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 a 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 maintenance 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, without the express written consent of the Board of Managers. Such work is the responsibility of the Association. 6. No owner, resident or lessee shall install wiring for electrical or telephone installations or for any other purp~se, nor shall any television or radio antennae, machines or a~r 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. -17- .", '" 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. 12. the units or driveways and No pets or animals of on the general common sidewalks. any kind shall be permitted in elements, including lawns. 13. Pools and jacuzzis are for the exclusive use of owners and their guests only. Children under the age of 16 years may use the recreational facilities only if accompanied by a responsible adult over the age of 21 years. The recreational facilities are for the use of the owners and their guests in residence. Guests or renters are not allowed to have guests who are not staying on the premises. No owner may have more than three guests under the age of 16 years use the recreation facilities at any time and guests must at all times be accompanied by the owner. No individual may use the pool between the hours of 10 p.m. and 10 a.m. All individuals are to conduct themselves in such a manner as to promote a healthy, safe, quiet environment for the recreational areas. At no time shall any glass bottles, containers or drinking glasses be permitted on pool decks. No running or horseplay is allowed on pool decks. All persons in the recreation areas shall refrain from making loud or boisterous noises. 14. With the consent of an owner the Managing Agent, or if there is no Managing Agent, then the Board of Managers, may retain a pass key to each unit. In the event that the owner does not so permit retention of a pass key, the Managing Agent or, if there be none, the Board of Managers, its employees and/or agents may make a forcible entry into such unit when the Managing Agent or Board of Managers believes that an emergency requiring such entry exists. So long as such entry is made upon a bona fide belief of emergency, the owner shall have no recourse for any such forcible entry against the Managing Agent or Board of Managers or the person or persons who actually effect such forcible entry. The foregoing Rules and Regulations are subj ect to amendment and to the promulgation of further regulations. -18- '---".-- STATE OF COLORADO ) ) ss. COUNTY OF PITKIN ) AFFIDAVIT OF DAVID F. JONES CONCERNING SERVICES AND UPGRADE AT MOLLY GIBSON LODGE The affiant, DAVID F. JONES, being first duly sworn, upon oath states as follows: 1. I am the owner of the Molly Gibson Lodge located on Lots 0, P and Q, Block 59, City and Townsite of Aspen, and have been since May, 1975. 2. amenities for three years: We have provided the following services and guests of the Molly Gibson Lodge for the last a. Continental Breakfast. b. Front desk check in and check out service from 8:00 a.m. to 8:00 p.m. seven days a week during the high season. Check out time is 10:00 a.m. and check-in time is 3:00 p.m. When guests arrive at the desk, they are given their room key, signed in and advised of the available amenities and given additional information to enhance their visit. Late arrivals, after the desk is closed, are signed in by the resident manager or, if the resident manager is out, a key to the room and a note explaining the location of the room and the time for breakfast are left on the office door. c. No transportation has been provided for guests by the Lodge in the past three years. d. Amenities available to the guests provided by the Lodge have included: 1) Continental breakfast 2) Outdoor swimming pool 3) Outdoor jacuzzi (installed in 1983) 4) Bar and lounge (bar installed in 1983--replaces wine-tasting, sherry and champagne parties) 5) Cable TV, including RBO 6) Conference room (installed in 1983) 7) Daily maid service ".' " e. On-site management of excellent quality year-round, with reduced hours during offseasons. 3. The Lodge has provided one manager's unit in the past for employee housing, approximately 300 square feet in size, containing two twin beds (two pillows). 4. From October, 1982 through August, 1983, I have spent approximately $218,000.00 in upgrading the Molly Gibson Lodge. Included in the upgrading were: a. Remodeling of fireside lounge (common area) and installation of a new bar for guests in the lounge, with a full liquor license. b. Installation of new conference room and furniture. c. Painting of all doors and frames. d. Installation of additional landscaping, including new planters around jacuzzi. e. Remodeling and refurbishing upstairs guest rooms. f. Improving maintenance systems. g. Installation of outdoor jacuzzi. Back up documentation can be provided if it is deemed necessary. STATE OF COLORADO ) ) ss. COUNTY OF PITKIN ) January, sJ- Subscribed and sworn to before me this~ day of 1984 by David F. Jones. WITNESS my hand and official seal. l~ My commission expires: MvCommlSSlOlllXlIIres FebnJII'Y 11. ~'f ~ ;;l, t1r Notary P ic - Address: IlltfMrMCII!IlIlIlI"- "-11IU .. 4llILG1\llIIO -2-