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Prospector lodge Subd.39A-86PROSPDCTOR LODGE 1986 ,?�4 - % C ASPEN/PITKIN PLANNING OFFICE 130 South Galena Street 39A Aspen, Colorado 81611 (303)925-2020 LAND USE APPLICATION FEES City 00113 - 63721 - 47331 - 52100 GMP/CONCEPTUAL - 63722 - 47332 - 52100 GMP/PRELIMINARY - 63723 - 47333 - 52100 GMP/FINAL - 63724 - 47341 - 52100 SUB/CONCEPTUAL - 63725 - 47342 - 52100 SUB/PRELIMINARY - 63726 - 47343 - 52100 SUB/FINAL - 63727 - 47350 - 52100 ALL 2-STEP APPLICATIONS - 63728 - 47360 - 52100 ALL 1-STEP APPLICATIONS REFERRAL FEES: 00125 - 63730 - 47380 - 52100 ENVIRONMENTAL HEALTH 00123 - 63730 - 47380 - 52100 HOUSING 00115 - 63730 - 47380 - 52100 ENGINEERING SUB -TOTAL County 00113 - 63711 - 47331 -52200 GMP/GENERAL - 63712 - 47332 -52200 GMP/DETAILED - 63713 - 47333 - 52200 GMP/FINAL - 63714 - 47341 -52200 SUB/GENERAL - 63715 - 47342 -52200 SUB/DETAILED - 63716 - 47343 - 52200 SUB/FINAL - 63717 - 47350 -52200 ALL 2-STEP APPLICATIONS - 63718 - 47360 -52200 ALL 1-STEP APPLICATIONS REFERRAL FEES: 00125 - 63730 - 47380 -52200 ENVIRONMENTAL HEALTH 00123 - 63730 - 47380 -52200 HOUSING 00113 - 63731 - 09000 -52200 ENVIRONMENTAL COORD. 00113 - 63732 - 09000 -52200 ENGINEERING SUB -TOTAL PLANNING OFFICE SALES 00113 - 63061 - 09000 - 52200 COUNTY CODE - 63063 - 09000 -52200 ALMANAC - 63062 - 09000 - 00000 COMP. PLAN - 63066 - 09000 - 00000 COPY FEES - 63069 - 09000 - OTHER Name:I ' Address: Check # Additional Billing: SUB -TOTAL TOTAL Phone: 1 Project &✓✓ Date: # of Hours: City of Aspen 2 T fi - ��a _ ✓7 �� I I f DATE RECEIVED: OE NO. DATE RECEIVED 'C PL ETE : )'% i qq STAFF: PROJECT NAME: APPLICANT: 1�� �.! ; n� �' (1' y tIJ) Ph' ne : Applicant. ddresVlckl RE PR ES EN TAT IV E : 1� I lrz Representative Address/Phone": ;", Type of Application: I. GMP/Subdivision/PUD 1. Conceptual Submission 20 $2,730.00 2. Preliminary Plat 12 1,640.00 3. Final Plat 6 820.00 II. Subdivision/PUD 1. Conceptual Submission 1-4 $1,,900.00 2. Preliminary Plat 9 1,220.00 3. Final Plat 6 820.00 III. All "Two Step" Applications✓ 11 $1, 490 .00 IV. All "One Step" Applications 5 $ 680 .00 V. Referral Fees - Environmental Health, Housing Office 1. Minor Applications 2 $ 50.00 2. Major Applications 5 $ 125.00 Referral Fees - Engineering Minor Applications 80.00 Major Applications 200.00 P&Z CC MEETING DATE: A,Oo -� PUBLIC H ING : YES NO �` (,�� 1 DATE REFERRED: INITIALS: ---------------------------------------------------------------------- REFERRALS: V/ City Atty Aspen Consol. S.D. School District City Engineer Mtn. Bell Rocky Mtn. Nat. Gas Housing Dir. Parks Dept. State Hwy Dept (Glenwd) Aspen Water Holy Cross Electric Statellwy Dept (Gr.Jtn) City Electric Fire Marshall Bldg: Zoning/Inspectn Envir. Hlth. Fire Chief 7 Other:��� ^ R. Roaring Fork Transit Roaring Fork Energy Center FINAL ROUTING: DATE ROUTED: IN INITIAL: t� City Atty City Engineer Building Dept. y Other: t� f'`�rti,n;,,.�� Cr�y��+ Other: - FILE STATUS AND LOCATION: SECURITY PACIFIC FINANCE CORP. K. C MEAD EXECUTIVE VICE PRESIDENT �d April 16, 1986 � rr1 �L He n &, ownsend Ace 17 C;[ie okeej Lane - 'Leave bd, , S K622 Dear Prospector Owners Champagne and flowers! Security Pacific extends thanks to you for your patience and cooperation through recent month's adjustments. As you may have heard by now, Security Pacific Finance Corp. is in the process of assuming ownership of the Prospector Resort. Consequently, you may look forward to improvements in the overall appearance of the resort as we upgrade furniture and fixtures in the units, as well as the exterior of the building itself. We intend to bring it up to the standards you anti- cipated at the time of your initial investment. We have reached an agreement with Aspen Ski Club and have paid required dues through February 1987 and are prepaying dues for an additional 2 years. You may expect the Prospector and its staff to compliment your next stay in Aspen, Colorado. We sincerely look forward to continued relations with you. Sincerely, Kenneth C. Mead Executive Vice President Specialized Financing Services KCM/pwr 10059 WILLOW CREEK ROAD SAN DIEGO, CALIFORN14 92131 TELEPHONE (619) 576-6150 SU.9,01— or SECUP", / W c CO.'00 '.O. • Draft to be Dear sent o the in crow Security Pacific Finance Prospector project. We have of the project and have begun timeshare vacation resort. three ,�''� 111YJ1 f - ZG 7 -M Cw0� t� j" 5 Jac Corporation has foreclosed upon The taken over control of the management to revitalize it as a premier The City of Aspen, at our request, has abolished the "rule of eight" under which sales of The Prospector could not be closed until there were eight interval sales in each condominium unit. If the abolition of the "rule of eight" prejudices you in any way, you have the right to rescind your contract to purchase a timeshare interval. Please indicate your desires directly to our property manager Barry Lefkowitz of Aspen Ski Tours in Aspen, 300 South Spring, Aspen, CO 81611, telephone No. (303) 925-9500. If you elect not to purchase, we hope that when you next return to Aspen you will look at the project under new management and once again consider interval ownership at The Prospector. We would appreciate receiving copies of your contract with the developer Merit Investment Co., and a copy of any checks (front and back) you wrote for earnest money deposits. Security Pacific Finance Corp. bc1:lspfc426 fi� 0 I)M�/ PROSPECTOR PERMIT CC LZ AMENDMENT CITY OF ASPEN FPinitiated Statement of Subdivision Exception2Whereas, Security Pacific Finance Corp. (SPFC), a foreclosure upon the Prospector timeshare project, an-J Whereas, SPFC filed an application to amend the permit for the Prospector project as obtained by the initial developer, Merit Investment Co. (of Aspen), Inc., and Whereas, the City Council of the City of Aspen approved the amendments applied for, subject to certain conditions, at its meeting of February 10, 1986, BE IT HEREBY NOTICED AS FOLLOWS: 1. The previously approved Prospector timeshare permit is amended as follows: a. Condition 6 is amended to delete the reference to transportation and lodging gift prohibition; and b. Condition 9 is amended to replace the previous "Plan Manager" with Barry L. Lefkowitz (a licensed Colorado real estate broker) and his firm, Aspen Ski Tours Realty and Management, Inc., the new "Plan Manager", and c. Condition 13, relating to having eight sales in one unit before any closing occurs is deleted. 2. These amendments are adopted subject to the following conditions: a. The applicant shall provide the City Manager's Office with current information about the Prospector's marketing and sales program including: i. The composition of weeks in timeshare packages; ii. Packages remaining unsold, and iii. Management of escrow accounts. This information shall be submitted within sixty (60) days of this approval. b. An amended Statement of Subdivision Exception, reflecting the changes to conditions of approval, Nos. 6, 9 and 13, shall be submitted to the satisfaction of the City Attorney's office. c. SPFC shall disclose these changes to any person • • • whose sale is in escrow and offer such persons the right to rescind if they deem their rights significantly affected by there amendments. Approved: J. Nicholas McGrath, P.C., Attorney for SPFC City attorney's office nml6:prosperm k k J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW 600 EAST HOPKINS AVENUE SUITE 203 ASPEN. COLORADO 81611 September 16, 1986 Mr. Steve Burstein Aspen/Pitkin Planning Office 130 South Galena Aspen, CO 81611 AREA CODE 303 TELEPHONE 925-2612 Re: SPFC-Prospector-minor permit amendment application Dear Steve: Security Pacific Finance Corp., the owner of the Prospector project through a foreclosure, seeks an amendment --we think minor --to the existing Prospector permit, condition 7 (see Exhibit A). As you know, the existing permit requires the sale of a three-week interval, with one week to come from each of three columns of a printed schedule (see Exhibit B). Those schedules of weeks were submitted by the previous developer and approved as part of the original permit, although not required by the Code. SPFC, having engaged in sales through Barry Lefkowitz for several months, would like the permit amended, to give greater flexibility to meet requests of prospective buyers. This request will still satisfy the City Code, by allowing the individual sale of three week interval of any combination of weeks, so long as annually the total off season weeks sold is 26% of the total weeks sold, as will be explained below. This change is, we believe, a minor one, because (a) it is entirely consistent with City Code timeshare requirements, and (b) because it is slight in light of changes others (e•g•, potential project buyers) have suggested SPFC seek, such as selling individual weeks, rather than a three-week package, which SPFC has declined to do. The relevant Code provisions require at a minimum either a two week package (on and off-season weeks) or an alternate packaging that "adequately accomplishes the marketing and sales of off-season weeks". The Code provisions are as follows: Section 20-24(B): "(5) 'Off-season' means the time between the date of the closing of Aspen Mountain ski lifts and June 15th of any W ec J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW Mr. Steve Burstein September 16, 1986 Page 2 year and also the time between September 15th to the date of the opening of Aspen Mountain ski lifts in any year." "(6) 'On -season' means any time of year not included in the off-season." Section 20-24(E)(3) "The marketing plan shall satisfactorily demonstrate that off-season timeshare weeks are being packaged and included in the proposed sales packages, and that off- season periods will be adequately marketed and sold. The marketing shall include, at a minimum, a multi -week package including one off-season week sold with one on - season week. A marketing plan may present alternative packaging of weeks to be sold, if it can be proven to the city council that the proposed packaging adequately accomplishes the marketing and sales of off-season weeks." The obvious purpose of the Code sections is to make sure that a developer does not sell the choice weeks, and leave an unsold and unsalable inventory of off-season weeks, with a consequent financial drain upon the then existing individual interval owners, since the owners' assessments pay for the project when that developer is gone. The new plan will insure the sale of off-season weeks. Before illustrating that, let's look at the inconsistencies in the existing three-week schedule (see Exhibits B and C), remembering that the developer sought approval of those schedules --they were not the fault of Council. The three columns supposedly coincide with high Winter/ski season, Spring/Fall off-season, and high Summer season. In fact, depending upon the opening and closing of the lifts, Easter, and miscellaneous other factors, many of the weeks do not fit in a clear category. For example, week 14 is under the "Prime Summer" column; yet it is the first week in April. Similarly, week 50 is in the same column; it is in early December. Under the Code's off-season, on -season definitions, the K �C J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW Mr. Steve Burstein September 16, 1986 Page 3 following is an approximate appropriate categorization of weeks at the Prospector: Ski weeks (prime ski) 20 Summer (prime Summer) 13 Off-season 12 Unsold off-season 3 Maintenance 4 52 Thus, in order to sell the 12 off-season weeks with the 20 on -season ski and 13 on -season Summer weeks, or 33 weeks, out of the total weeks sold over a period of time, 26% (12 divided by 45) should be off-season, and about 74% (33 divided by 45) should be on -season. That ratio would mean the project would properly sell out, all other sales factors being positive (e.g., assuming a demand for timeshare units, etc.). The Prospector would report its sales to the City quarterly, and the 26%/74% ratio would be observed on a yearly basis. If there were a variation, then the City would require and the Prospector would agree the variation to be eliminated in the following year's sales. While such a plan is less precise than "pick one from each of three columns," you can monitor and enforce it nonetheless. By the way, the existing total sales of weeks, without this plan, has less than a 5% variance from it. Total sales to date are 57 on -season ski weeks, 35 on -season Summer weeks and 25 off-season weeks, or 77% on and 21% off. Since the sales efforts by Barry Lefkowitz began, there have been four new sales consistent with the permit. But there are at least six prospective sales that SPFC would like to close, but cannot absent this amendment. These prospective sales include several with two on -season Summer weeks, and an off-season week; several with two Winter on - season and an off-season week, etc. SPFC believes this change will give greater flexibility for sales efforts, and for buyers --thus making the project a more viable one. For example, some buyers interested in the J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW Mr. Steve Burstein September 16, 1986 Page 4 Music Festival may want two on -season Summer weeks; a budget oriented visitor who likes the Fall colors may want two off- season Fall weeks. The sales staff have had inquiries from fly fisherman who return to Aspen each year in off-season Spring weeks (before the run off), and off-season Fall weeks. Sales to meet those interests can not occur under the existing permit. And there are several interested prospective buyers of three ski weeks who have said that will not buy unless they can buy three ski weeks. Those ski week sales could be balanced by sales to those interested as mentioned, in off-season fly fishing and in the Music Festival. We should also mention that some of the recent sales are to existing owners: e.g., one person has purchased four separate intervals. These repeat sales speak well for the project. And several of the sales are to real estate professionals. SPFC has demonstrated its good faith and stewardship by, e.g., paying in excess of $100,000.00 to creditors of Merit, mostly local people, that it was not legally obligated to pay. It has, it believes, achieved the good will of almost all existing owners. It needs, however, this additional assistance for the project and asks for your approval. Sincerely, kk( J. Nicholas McGrath, P.C. cc: Mr. Ron Mitchell Paul Taddune, Esq. 6:lburstei.904 7. The nineteen (19) renovated units found in the Prospector must each be split into fifty-tI-10 (5P) weeks. Seven (7) weeks must be reserved for the maintenance of the project. Four (4) of these seven (7) weeks must be used exclusively for maintenance with no rentals or other uses allowed. Two of the four (4) weekn must be in the spring while the remaining two (2) weeks must be in the fall. The renaining forty-five (45) weeks must be sold as proposed in three (3) week timeshare packages. Each three (3) week package must contain a peak summer/off-winter week, and an off season week in either the spring or the fall. EXHIBIT A Week Selecttou Chart Prospector tractional estate owners have three occupancy weeks each year. The choice of specific weeks is made at the time of purchase. Each owner creates his own package by selecting one week from each season: Prime Ski, Prime Summer and Spring/Fall. Choose One Choose One Choose One Prime Ski Prime Summer Spring/Fall 51 '14 15 52 25 16 1 26 17 2 27 18 3 28 19 ' 4 29 20 5 30 21 6 31 22 7 32 23 8 33 -24 1 9 34 39 10 35 40 11 36 41 12 37- 42 13 38 43 *50 44 45 4 48 49 EXHIBIT a VACAI *(_ , CALENDAR Sunday to Sunday uNrr WEEK 1985 1906 NUMBER Jan. 6 Jan. 13 Jan. 5 Jan. 12 2 Jan. 13 JN• 20 Jan. 12Jan. 19 3 Jan. 20 Jan. 27 Jan. 19 Jan. 26 4 Jan. 27-Feb.3 Jan. 26-Feb.2 5 Feb. 3-Feb.10 Feb. 2-Feb.9 6 Feb. 10-Feb. 17 Feb. 9-Feb. M 7 Feb. l7-Feb.24 Feb. 16-Fcb.23 8 Feb. 24-March 3 1 Feb. 23-Ai2rch 2 9 Much 3-March 10 ALuch 2-March 9 10 Mar.10-Mar.17 NW. 9-Mar.16 11 Mar.17-Mar.24 Nix. 16-Mar.23 12 Mar. 24-Atu.31 NW. 23-M2r.30 13 Mar. 31-Aprll7 Mar. 30-Apol6 14 April 7-Apol14 April 6-Aprll13 CIS April 14-Aprll21 April 13-Apr1120 I April 21-April 28 April 20-April 27 17 April 28-At2y 5 April 27-May 4 18 'May 5-May 12 Ai2y 4-M2y 11 19 May 124ay 19 May 114ay 18 20 May 19-May 26 May 18-May 25 21 May 26-June 2 May 25 June 1 22 June 2-June 9 June 1 June 8 23 June 9 June 16 June B June 15 �24 June 16-June 23 June IS June 22 25 June 23-June 30 June 22 June 29 26 June 30-July 7 June 29-July 6 27 July 7July 14 July 6-July 13 28 July 14 July 21 July 13 July 20 29 July 21July 28 July 20 Juty Z7 .30 July 28-Augira 4 July 27-Augwa 3 31 Aug.4-Aug.11 Aug. 3-Aug. 10 32 Aug. II-Aug.18 Aug.10-Aug.17 33 Aug. l8-Aug.25 Aug. 17-Aug. 24 34 Aug. 25-Sep.I Aug. 24-Aug. 31 35 Sep. i-Sep. 8 Aug. JI-Sep. 7 36 Sep. 8-Sep.15 Sep. 7-Sep.14 37 Sep. 15-Sep. 22 Sep. 14-Sep. 21 38 Sep. 22-Sep. Z9 Sep. 21-Scp. 28 39 Sep. -29-oct. 6 Sep. 28-Oct.5 4o Oct 6-Oct 13 Oct 5-Oct 12 ( 41 Oct 13-Oct. 20 Oct 12-Oct. 19 42 Oct 20-00. 27 Oct. 19-0ct. 26 43 Oct 27-Nov. 3 Oct. 26-Nw. 2 44 Nw.3-Nov.10 Nw.2-Nvv.9 45 Nw.10-Nw.17 Nw.9-Nw.16 46 Nw. 17-Nw. 24 , Nw. 16-Nw. 23 47 Nw.24-Dec.I Nov. 23-Nw.30 48 Dec. I-Dec.8 Nov.30-Dec.7 49 Dee. 8-Dec 15 Dec. 7-Dec. 14 50 Dec 15-Dec. 22 Dec: 14-Dec. 21 51 Dec. 22-Dec. 29 Dec. 21-Dec. 28 52 Dec 29 J2n. 5 Dec. 28-Jan 4 19W Jan 4 Jan 11 Jan. 11 Jan. 18 Jan. 18-Jan. 25 Jan. 25-Feb. 1 Feb. 1-Feb. 8 Feb. 8-Feb. 15 Feb. 15-Feb. 22 Feb. 22-M2rch I March 1-March 8 Mar. 8-Mar. 15 Afar. 15-Mar. 22 Mar. 22-Aiar. 29 Mu. 29-April 5 April 5-April 12 April 12-April 19 April 19-Apol 26 April 26-May 3 May 3-May 10 May 104tay 17 May 17-May 24 May 244tay 31 May 31 June 7 June 7-june 14 June 14 June 21 June 21-June 28 June 28-July 5 July 5 July 12 July 12July 19 July 19July 26 July 26-August 2 Aug. 2-Aug. 9 Aug. 9-Aug, 16 Aug. 16-Aug. 23 Aug. 23-Aug, 30 Aug. 30-Sep. 6 Sep. 6-Sep. 13 Sep. 13-Sep. 20 Sep. 20-Sep. 27 Sep. 27-Oct. 4 Oct 4-01. 11 Oct 11-Oct. 18 Oct. 18-0d. 25 Oct 25-Nw. Nov. I -NM. 8 Nw. 8-Nw. 15 Nw. 15-Nw. 22 RN. 22-Nw. 29 Nov. 29-Dec. 6 Dec. 6-Dec. 13 Dec. 13-Dec. 20 Dec. 20-Dec. 27 Dec. 27 Jan. 3 19M Jan. 3--Um 10 Jan. 10-jam 17 Jan. 17 Jan. 24 Jan 24 Jan. 31 Jan. 31-Feb. 7 Feb. 7-Feb. 14 Feb. 14-Fcb. 21 Feb. 21-Feb. 28 1989 Jan. 1 J2n. 6 Jan. 8-Jan. 15 Jan. 15-Jan. 22 J2n. 22 Jan. 29 Jan. 29-Feb. 5 Feb. 5-Feb. 12 Feb. 12-Feb. 19 Feb. 19-Feb. 26 Feb. 28-ht2rdh 6 Feb. 25-March 5 March 6-Much 13 March 5-Mardi 12 March 13-March 20 March 12-March 19 Much 20-March 27 March 19-M2rch 26 Mu h 27-April 3 March 26-April 2 April 3-Apol10 April 2-"19 April 10-April 17 April 9-Apr1116 April 17-April24 April 16-Apol23 April 24-ary I April 2!l-Aprll 30 May I -May 8 April 30-May 7 Athy 8-May 15 May 7-May 14 May 15-May 22 Ai2y 14-May 21 May 22-May 29 May 21-May 28 'Al2y 29 June 5 May 28June 4 June 5--June 12 June 4 June I June 12June 19 June 11 June 18 June 19 June 26 June 10 June 25 June 26 July 3 June 25 July 2 July 3-July 10 July 2July 9 July 10-July 17 July 9 July 16 July 17July 24 July 16-July 23 July 24 July 31 July 23 July 30 July 31-Aug. 7 July 30-Aug. 6 Aug. 7-Aug.14 Aug. 6-Aug.13- Aug. 14-Aug.21 Aug. 13-Atig. 20 Aug. 21-Aug. 28 Aug. 20-Aug. 27 Aug. 28-Sep.4 Aug. 27-Sep.3 Sep. 4-Sep.11 Sep. 3-Sep.10 Sep, 11-Sep. 18 Sep. 10-Sep. 17 Sep. 18-Sep. 25 Sep. 17-Sep. 24 Sep. 25-Oct.2 Sep. 24-oct.I Ott 2-Oct. 9 Oct. I -Oct 8 Oct. 9-Oct.16 Oct. 8-Oct.15 Oct. 16-Oct. 23 Oct. 15-Oct. 22 Oct. 23-Oct. 30 Oct. 22-Oct 29 Oct 30-Nw.6 Oct. 29-Nov.5 Nw.6-Nw.13 Nw.5-Nov.12 Nov.13-Nov.20 Nov. 12-Nw.19 Nov. 20-Nw.27 MN. 19-Nw.26 Nw; 27-Dec. 4 Nov. 26-Dec. 3 Dec. 4-Dec.II Dec.3-Dec.10 Dec. 11-Dec. 18 Dec. 10-Dec. 17 Dec. 18-Dec.25 Dec. 17-Dec. 24 Dec. 25 Jan I Dec. 24-Dec. 31-Jan 7 EXHIBIT C • 9 J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW 600 EAST HOPKINS AVENUE SUITE 203 ASPEN. COLORADO 81611 September 23, 1986 Mr. Steve Burstein Aspen/Pitkin Planning Office 130 South Galena Aspen, CO 81611 Re: SPFC--Prospector--Disclosure Statement Dear Steve: AREA CODE 303 TELEPHONE 925-2612 I enclose a second amended Prospector City of Aspen Disclosure Statement, which I will record when I receive the signed copy back from Security Pacific and unless I otherwise hear frora you. The only changes are (1) to change the language referring to SPFC having a certificate of purchase that would ripen into title when a public trustee's deed issued, since in fact a deed issued on August 12 and Security Pacific now has clear title; and (2) Barry Lefkowitz is the plan manager not Barry d/b/a Aspen Ski Tours, and thus I took out the language about Aspen Ski Tours. Also enclosed is a copy showing my handwritten changes before they were typed so you can see exactly what the changes were. Sincerely, �tGV� J. Nicholas McGrath, P.C. 7:lspfcbur.923 • 0 SECOND AMENDED PROSPECTOR CITY OF ASPEN DISCLOSURE STATEMENT SEPTEMBER 1986 This Disclosure Statement is promulgated pursuant to the requirements of Section 20-24(F) of the Municipal Code of the City of Aspen, Colorado (the "Ordinance"). The lettered paragraphs below correspond to the lettered subparagraphs of section (F) which require certain specific disclosures about a timeshare project, its developer and the way in which it will be marketed and operated. Capitalized terms in this Disclosure Statement are defined in the Fractional Estate Declaration for The Prospector or in the Ordinance. This Disclosure Statement supersedes and replaces the one attached to the Declaration and recorded in Book 476 at Pages 357-372 of the records of Pitkin County, and the First Amended statement recorded in Book 515 at Page 390. (a) The Developer. Security Pacific Finance Corp. (SPFC), a Delaware corporation, is the Developer. Its principal offices are in San Diego, California, and it has approximately 10 offices in Colorado engaged in various lending business. SPFC owns the project by virtue of a deed dated August 12, 1986, and recorded in Book 518 at Page 301 of the records of Pitkin County. SPFC is a subsidiary corporation of the seventh largest banking corporation in the United States. It has been a lender on over 30 timeshare projects around the country. Its address is: Security Pacific Finance Corp., Attn: Specialized Financial Services, 10089 Willow Creek Road, San Diego, CA 92131. Resumes of its principal officers having to do with this project are attached hereto as Exhibits. (b) The Plan Manager. Barry Lefkowitz is the Plan Manager. He is a licensed Colorado real estate broker. His address is: Mr. Barry L. Lefkowitz, Broker, 301 East Hyman, Aspen, CO 81611. He has been in the tour operator, property management and rental business in excess of 10 years. His resume is attached hereto as an Exhibit. (c) The marketing entity. The Prospector is being marketed by SPFC and Barry Lefkowitz, as described above. (d) The Timeshare Unit. The Prospector was newly rebuilt in 1982-83 and contains nineteen (19) lodge units available for timesharing which average 756 square feet of u • living space. A twentieth unit is reserved for on site employees. The available units feature private decks with hot tubs and saunas, wet bars and masonry fireplaces. The Project is complete and is not a phased project. (e) Description of the Project. The Prospector Lodge was issued a certificate of occupancy in January, 1983, and was dedicated to timeshare use upon receipt of governmental approvals by recording the "Fractional Estate Declaration for The Prospector, a Condominium" in the Office of the Clerk and Recorder of Pitkin County, Colorado, which document was recorded on November 7, 1984 in Book 476 at Pages 322, et seq., and amended in Book 479, at Pages 568-568. The provisions pertinent to the timeshare plan are found in Article XXVIII of the Declaration. Copies of the Condominium Documents accompany the delivery to the purchaser of the Disclosure Statement. (f) Restraints on Transfer. There are no restraints on the transfer of a purchaser's Fractional Estate, except that an Owner may not convey or encumber less than his Fractional Estate (see (g) below). Although an Owner may purchase multiple Fractional Estates in the same Unit, the City of Aspen restricts occupancy in a Unit to not more than thirty (30) days between December 18 and March 20. (g) The Timeshare Ownership Plan. Each Unit in the Project is divided into fifteen (15) fractional estates. A "Fractional Estate" means a time -span estate consisting of an undivided interest of not less than one -fifteenth (1/15), as tenant -in -common, in fee simple in a Fractional Unit, together with the right to possession and occupancy of the Fractional Unit during the Use Weeks assigned to the Fractional Estate in the Deed from Declarant to the Purchaser. A Fractional Estate includes a minimum of three (3) Use Weeks per year in the Owner's specific unit. A "Use Week" is a period of exclusive possession and occupancy of a Fractional Unit, computed in the manner set forth in the Declaration. The sum of the Use Weeks and Maintenance Weeks in a Fractional Unit dedicated to Fractional Estate ownership shall equal fifty-two (52) weeks. The Owner's rights in the Fractional Unit include: use, occupancy or rental of the unit during his or her use weeks, subject to any governmental restrictions, including but not limited to the Ordinance, and the Restrictive and Affirmative Covenants in Article XXVII of the Declaration; the right to vote in the Association; and other rights more fully described in the Bylaws of the 2 Association and Declaration as well as those incident to real property ownership. Owner responsibilities include payment of the assessments described in Section 20.2 of the Declaration and compliance with the provisions of the Declaration and the Articles of Incorporation and Bylaws of The Prospector Fractional Owner's Association. (h) Notice of Liens, Title Defects or Encumbrances. The Developer is the owner of the property by virtue of a deed dated August 12, 1986, and recorded in Book 518 at Page 301 of the records of Pitkin County. The original Developer granted, in the Condominium Map, a seven foot by ten foot easement for the existence and maintenance of a transformer which has previously been placed upon the southeast corner of the property by the City of Aspen. A license for certain encroachments of The Prospector onto property of the City of Aspen was approved by the Aspen City Council on November 8, 1982. It is anticipated that this license will be memorialized by means of a written agreement with the City of Aspen which, when executed, will be recorded in the real property records of Pitkin County, Colorado. None of these liens or encumbrances is considered to adversely affect any purchaser's title to a Fractional Unit. (i) Notice of Legal Actions. There may be pending some lawsuits involving the prior developer of the project, but the Developer believes none are material to the project, the timeshare units or the plan. (j) Purchaser's Financial Obligation. The total financial obligation of the purchaser is the sales price of the Fractional Estate plus the one-half percent (1/2%) Aspen Real Estate Transfer Tax, which is paid by the purchaser. There are no additional charges to which the purchaser may be subject in purchasing the unit, other than usual and customary closing costs and prorations. The Association shall require an Owner to deposit an amount equal to three (3) months of the assessment for Common Expenses described in (k) below with the Association for working capital and/or replacement reserves. (k) Estimate of Periodic Expenses. Each Fractional Owner will be obligated to pay a pro rata assessment. Included in this amount are maintenance expenses, management fees, property taxes, replacement costs, utility charges, insurance and any other expenses incurred in the normal operation of the Project and attributable to the Fractional 3 0 • Estate. The elements of this assessment and the method by which it is assessed are explained in Article XX of the Declaration. A current budget estimating each Fractional Estate's share of the assessment will be delivered to each Purchaser prior to execution of a Purchase Contract. Attached as an Exhibit is the current budget for the Association. (1) Availability of Financing. The Developer will provide financing to initial purchasers at favorable rates. The financing package is outlined in an Exhibit attached hereto. (m) Warranties. Each Fractional Owner purchasing a Fractional Estate from the Developer will be the beneficiary of a one year limited warranty of habitability covering the unit and common elements, as described in the Purchase Contract. The warranty is limited to repair or replacement of defective items. Any manufacturer's warranties for furnishings or appliances in the units will be assigned to the Association. (n) Escrow of Deposits. A title company will act as escrow agent for deposits made in connection with the purchase of Fractional Estates. The title company will hold the deposited funds until closing of the transaction, or until purchaser's default under the Purchase Contract. The title company will be a neutral third party not having any interest in the purchase and sale transaction. (o) Fees or Charges for Use of Facilities. There are no current or expected fees or charges to be paid by Fractional Owners for the use of any facilities at The Prospector. Part ownership of, and the right to use, the facilities of The Prospector is included in the purchase price. Extraordinary expenses for long distance phone calls, damages or special service will be separately invoiced as set forth in Section 17.6 of the Declaration. Each owner of a Fractional Estate will obtain a membership which will entitle the Owner, his family and guests to use The Aspen Club, a health and physical fitness facility, at such time as said persons occupy the Owner's unit, for the period December 1, 1984 through February 28, 1987. Until that date the costs are paid entirely by the developer. Thereafter, the cost will be paid by the Fractional Owners Association and assessed as common expenses; that expense is estimated to be $131.66 per interval owner per year. 4 • (p) Tax or Other Lien on the Timeshare Unit. A Fractional Owner who suffers or allows a lien to be placed against his Fractional Estate or the entire unit must indemnify, defend and hold each of the other Fractional Owners harmless from and against all liability or loss arising from the claim of such lien. The Association may require the Fractional Owner to deposit cash or negotiable securities to be held by the Association pending final outcome. This protection is more fully described in Section 28.4 of the Declaration and Section 9.3 of the Bylaws. The Association is responsible for the payment of property taxes on and maintenance of the Fractional Unit from the proceeds of the assessment for Common Expenses. The Association's failure to pay such taxes or failure to pay for maintenance work performed may result in a tax sale of the entire Fractional Unit or a mechanic's lien being filed against it. (q) Mutual Right of Rescission. A statement that there is a ten (10) calendar day mutual right of rescission from the execution of the Purchase Contract by both Purchaser and Seller is contained in the Purchase Contract. (r) Minimum Sales. The Developer has no minimum sales requirement. The project is already dedicated to timeshare, and unit sales may close at any time after the rescission period. (s) Maintenance. Maintenance services for the Unit are provided for in Article XVII of the Declaration. In addition to the routine maintenance services provided, a minimum of seven (7) weeks per year are be set aside as Maintenance Weeks during which the Association will provide major maintenance, repair and replacement service to the Unit. Four of these seven Maintenance Weeks will be used exclusively for maintenance with no rentals or other uses allowed. Of the seven (7) Maintenance Weeks, a minimum of two (2) will be designated in the fall and two (2) in the spring. (t) Hold -over Occupants. Section 28.4 of the Declaration provides remedies to the rightful occupant in the event that a Unit is not promptly surrendered at the end of a Use Week. The hold -over occupant is deemed to have waived any notices required by law with respect to eviction or 5 • 0 ejection. Further_, he must pay to the rightful occupant a sum equal to two hundred percent (200%) of the daily fair rental value of the Fractional Unit, as determined by the Fractional Owners' Association in its Unit, as determined by the Fractional Owners' Association in its sole discretion, for each day during which the Unit is wrongfully occupied. Damages also include costs and reasonable attorneys' fees incurred in the enforcement of this provision. (u) High and Low Season Marketing. Aspen Mountain is typically open for skiing between Thanksgiving and early April. In 1987, it is scheduled to close, depending in part on snow conditions, on April 19. Use Weeks for The Prospector are selected by choice of one week from each of three (3) groups: prime ski weeks, summer/fringe ski weeks, and spring/fall weeks. The price of the Fractional Estate is largely determined by the prime ski week in the three-week package. Because of this three-week combination marketing program, and the indivisibility of the Fractional Estate, off-season weeks are sold to each purchaser. Since the purchaser pays for an off-season week, it is very likely to be used. The developer has applied to the City of Aspen for a change in its permit to allow the sale of any three-week package, so long as on an annualized basis the sale of on - season (winter and summer) weeks is approximately 74% of the total weeks sold, and off-season weeks is approximately 26% of total weeks sold. The City has not yet acted upon the proposal. (v) Exchange Programs. All Fractional Estates in the Project will be able to participate in an exchange program, but participation will not be required. (w) Unusual and Material Characteristics. The only unusual and material circumstances, feature and/or characteristic of or affecting The Prospector is its designation in the Historic Overlay, which requires HPC approval for exterior building changes. (x) Insurance. The Developer has obtained casualty insurance for The Prospector at full replacement value for the Property. At the time the Association becomes operational, all policies will be assigned to it. The insurance provision is Article XVIII of the Declaration. 11 (y) On -Site Amenities. Located on the deck attached to each Unit is a separate hot tub and sauna for exclusive use of the Owners of that particular Unit. General common elements, for the use and enjoyment of all Fractional Owners, include: the sun deck attached to the third floor on the east side of the building, all on -site parking spaces, the lobby area and the laundry facilities which are planned for the Project. These amenities and any other Common Elements will not be owned by the Association; rather a Fractional Estate will include a pro rata fractional share of the Common Elements. The Developer will not own, nor charge any fee for the use of, any amenities. This is prohibited by Article VI of the Declaration. As set forth in subparagraph (o) above, each Owner will pay, as a part of the assessment for Common Expenses, a portion of the cost of a membership in The Aspen Club. (z) Kitchen Facilities. The Employee Housing Unit (Unit 108) is the only unit containing a full kitchen. Wet bars and refrigerators are included in the Units. (aa) Limitations on Occupancy. Although the Units in The Prospector are spacious enough to accommodate more than six (6) persons according to the Aspen building codes, the Developer believes that optimum comfort for the occupants will be insured by limiting their number at any one time to six (6). Therefore, the Association will promulgate a rule restricting occupancy to this number. (bb) Agent for Notice. Article IX of the Articles of Incorporation for The Prospector Fractional Owners' Association and Article XXIX of the Declaration designate the Association as the Owner's designated agent for the service of process or legal notices pertaining to the Fractional Estates. The Registered Agent for service of process is either as specified with the Colorado Secretary of State, or if none is so specified, then the Developer's attorney, J. Nicholas McGrath, 600 E. Hopkins Ave., Suite 203, Aspen, CO 81611. (cc) Applicability of this Disclosure Statement. All Fractional Estates in The Prospector are expressly subject to the requirements and representations set forth in this Disclosure Statement and any amendments to it, recorded in the office of the Pitkin County Clerk and Recorder. The Developer, Security Pacific Finance Corp., hereby 7 affirms under oath that all of the above disclosures are true and accurate to the best of its knowledge and belief. SECURITY PACIFIC FINANCE CORP., a Delaware corporation By: STATE OF ) ss: COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of , 1986, by as Pacific Finance Corp., a Delaware corporation. Witness my hand and official seal. My commission expires: discity2.923 Notary Public A of Security �tecorded � _dc� l� Recepflm No ../.�+■ r�r� � wr.r LORETTA BANNER PITKIN COUNTY RECORDER r Ca C w�`j" F RIaT AMENDED PROSPECTOR CITY OF ASPEN DISCLOSURE STATEMENT 3b'frY 19 8 6 S,-PTEMAt X This Disclosure Statement is promulgated pursuant to the requirements of Section 20-24(F) of the Municipal Code of the City of Aspen, Colorado (the "Ordinance"). The lettered paragraphs below correspond to the lettered subparagraphs of section (F) which require certain specific disclosures about a timeshare project, its developer and the way in which it will be marketed and operated. Capitalized terms in this Disclosure Statement are defined in the Fractional Estate Declaration for The Prospector or ° in the Ordinance. This Disclosure Statement supersedes and replaces the oned attached to the Declaration and recorded ^� in Book 476 at Pages 357-372 of the records of Pitkin C ti County, tk; Flr,;1. /}nti ve(,e E' d6 CG►t4'ttr Ai L e%,e& at' u�. 13tL, k S / S (a) The Developer. Security Pacific Finance Corp. (SPFC), a Delaware corporation, is the Developer. Its principal offices are in San Diego, California, and it has approximately 10 _offices in Colorado engaged in various �---lending business. SPFCIj as orec ose upon fie Prospector Y and expts to own,the Proj Ct at the end of statutory L ;k redemption periods, appr imately mid -August 1 86. It is .� currently a redeiver fo the Projedt. No sale will close z until SPFC owns the Pr ect in f e from th foreclosure. The Prospector as timeshar project w s origina�y' a > developme of Merit Invest nt Co. (of Aspen), c., a Colorad corporation, whic was SPF s borrowe Merit ^-J �, appear to be/Aefunctr acid will hay no interep in the pro ct if it oes not .'redeemed its interest from the foreclosure sale. SPFC is a subsidiary corporation of he seventh largest banking corporation in the United States. It has been a lender on over 30 timeshare projects around the country. Its address is: Security Pacific Finance Corp., Attn: Specialized Financial Services, 10089 Willow Creek Road, San Diego, CA 92131. Resumes of its principal officers having to do with this project are attached hereto as Exhibits. (b) The Plan Manager. Barry Lefkowitz -' bia Aspen 91-i a—e-permtfon ' - 4GG4g - b.�m fAo� urvk='°5--3t nse ) .,the Plan Manager. He is -E7e kewitq i s a licensed Colorado real estate broker. �__ii - _ #e-snag #ng br��''h e—Praa p eeter ---e i e - 1 - JOK 515 PAGE39.1 Fj no ►cep -r-e t-aI-agent- for the-llro peeler=— and —tts-owners-,and--has so - sp4ara- ainee-the-Fai-t- f1 85r- His address is: Mr. Barry L . Le f kowi t z , AsPws�.-S�Fis:ettre�Rea 1 d- -' C' I tp-trn �-Mgmt • , �60—sa . Aspen, CO 81611. He has been in the tour Y operator, property management and rental business in excess of 10 years. His resume is attached hereto as an Exhibit. (c) The marketing entity. The Prospector is being marketed by SPFC and Barry Lefkowitz, as described above. (d) The Timeshare Unit. The Prospector was newly rebuilt in 1982-83 and contains nineteen (19) lodge units available for timesharing which average 756 square feet of living space. A twentieth unit is reserved for on site employees. The available units feature private decks with hot tubs and saunas, wet bars and masonry fireplaces. The Project is complete and is not a phased project. (e) Description of the Project. The Prospector Lodge was issued a certificate of occupancy in January, 1983, and was dedicated to timeshare use upon receipt of governmental approvals by recording the "Fractional Estate Declaration for The Prospector, a Condominium" in the Office of the Clerk and Recorder of Pitkin County, Colorado, which document was recorded on November 7, 1984 in Book 476 at Pages 322, et seq., and amended in Book 479, at Pages 568-568. The provisions pertinent to the timeshare plan are found in Article XXVIII of the Declaration. Copies of the Condominium Documents accompany the delivery to the purchaser of the Disclosure Statement. (f) Restraints on Transfer. There are no restraints on the transfer of a purchaser's Fractional Estate, except that an Owner may not convey or encumber less than his Fractional Estate (see (g) below). Although an Owner may purchase multiple Fractional Estates in the same Unit, the City of Aspen restricts occupancy in a Unit to not more than thirty (30) days between December 18 and March 20. (g) The Timeshare Ownership Plan. Each Unit in the Project is divided into fifteen (15) fractional estates. A "Fractional Estate" means a time -span estate consisting of an undivided interest of not less than one -fifteenth (1/15), as tenant -in -common, in fee simple in a Fractional Unit, together with the right to possession and occupancy of the Fractional Unit during the Use Weeks assigned to the Fractional Estate in the Deed from Declarant to the - 2 - eooK 515 PAGE39? Purchaser. A Fractional Estate includes a minimum of three (3) Use Weeks per year in the Owner's specific unit. A "Use Week" is a period of exclusive possession and occupancy of a Fractional Unit, computed in the manner set forth in the Declaration. The sum of the Use Weeks and Maintenance Weeks in a Fractional Unit dedicated to Fractional Estate ownership shall equal fifty-two (52) weeks. The Owner's rights in the Fractional Unit include: use, occupancy or rental of the unit during his or her use weeks, subject to any governmental restrictions, including but not limited to the Ordinance, and the Restrictive and Affirmative Covenants in Article XXVII of the Declaration; the right to vote in the Association; and other rights more fully described in the Bylaws of the Association and Declaration as well as those incident to real property ownership. Owner responsibilities include payment of the assessments described in Section 20.2 of the Declaration and compliance with the provisions of the Declaration and the Articles of Incorporation and Bylaws of The Prospector Fractional Owner's Association. (h) Notice of Liens, Title Defects or E umbrances. V,rh, c� The Developer is the owner of the property by cer=i7cate of p rch a from the Publ rustee ofi-P tkin ,_Co nty, subj o recce pt on rich f the or in�dev Loper �Lu Ik �> Mer Inv stmdnt Co pan�of A pen) Inc and or ertain li >'iold ,s/ The edemption ri ht expir 1n August 1986 ^r an SPF does not%nticipate that anyone will redeem. i The original Developer ranted in the Condominium Ma #_i- rev �ivl P granted, p, a seven foot by ten foot easement for the existence and maintenance of a transformer which has previously been placed upon the 41 southeast corner of the property by the City of Aspen. A J�J c��° license for certain encroachments of The Prospector onto plHt - property of the City of Aspen was approved by the Aspen CCLIAA I�CN City Council on November 8, 1982. It is anticipated that this license will be memoralized by means of a written agreement with the City of Aspen which, when executed, will be recorded in the real property records of Pitkin County, Colorado. None of these liens or encumbrances is considered to adversely affect any purchaser's title to a Fractional Unit. At the ime SPFC instituted foreclosur there were seve�`al dg ents �n8)liens t the origin 1 develdper (Mefit , Vus:t f tiic were ubseent in prior ty td SPFC's dee of ther fo those arties may h vt 4edg�nptio o ts. uming t se redempti -'rights are not exorcise - 3 - 400K 515 Pa:39 3 and a SPFC rd ives a pub is trustee' deed�i Augus 198 , t ose j.dd' gm nts a6d iens will b extingu hed,' I ac� itio , SPFC ha vo untari paid many Eal cr d�.tors Merit. \S Ind ( i ) Notice of Legal Actions. Hmeept - -as—stated- be ,,141n1 m -in mbe�ej the Developer r -ao4"e �, 0,e,,)al,;u, fs dke� <3 --ar�Y pending -© --ent sipa eel— —acts#ertr-that JV%V %% "-9 do material to the timeshare units orplan. �, ,a,P, ,: lep-,- P���p` he c F .t-kR (j) Purchaser's Financial Obligation. The total lx,L_ financial obligation of the purchaser is the sales price of the Fractional Estate plus the one-half percent (1/2%) Aspen Real Estate Transfer Tax, which is paid by the purchaser. There are no additional charges to which the purchaser may be subject in purchasing the unit, other than usual and customary closing costs and prorations. The Association shall require an Owner to deposit an amount equal to three (3) months of the assessment for Common Expenses described in (k) below with the Association for working capital and/or replacement reserves. (k) Estimate of Periodic Expenses. Each Fractional Owner will be obligated to pay a pro rata assessment. Included in this amount are maintenance expenses, management fees, property taxes, replacement costs, utility charges, insurance and any other expenses incurred in the normal operation of the Project and attributable to the Fractional Estate. The elements of this assessment and the method by which it is assessed are explained in Article XX of the Declaration. A current budget estimating each Fractional Estate's share of the assessment will- be delivered to each Purchaser prior to execution of a Purchase Contract. Attached as an Exhibit is the current budget for the Association. (1) Availability of Financing. The Developer will provide financing to initial purchasers at favorable rates. The financing package is outlined in an Exhibit attached hereto. (m) Warranties. Each Fractional Owner purchasing a Fractional Estate from the Developer will be the beneficiary of a one year limited warranty of habitability covering the unit and common elements, as described in the Purchase Contract. The warranty is limited to repair or replacement of defective items. Any manufacturer's M.M BOOR 515 FAGt394 warranties for furnishings or appliances in the units will be assigned to the Association. (n) Escrow of Deposits. A title company will act as escrow agent for deposits made in connection with the purchase of Fractional Estates. The title company will hold the deposited funds until closing of the transaction, or until purchaser's default under the Purchase Contract. The title company will be a neutral third party not having any interest in the purchase and sale transaction. (o) Fees or Charges for Use of Facilities. There are no current or expected fees or charges to be paid by Fractional Owners for the use of any facilities at The Prospector. Part ownership of, and the right to use, the facilities of The Prospector is included in the purchase price. Extraordinary expenses for long distance phone calls, damages or special service will be separately invoiced as set forth in Section 17.6 of the Declaration. Each owner of a Fractional Estate will obtain a membership which will entitle the Owner, his family and guests to use The Aspen Club, a health and physical fitness facility, at such time as said persons occupy the Owner's unit, for the period December 1, 1984 through February 28, 1987. Until that date the costs are paid entirely by the developer. Thereafter, the cost will be paid by the Fractional Owners Association and assessed as common expenses; that expense is estimated to be $131.66 per interval owner per year. (p) Tax or Other Lien on the Timeshare Unit. A Fractional Owner who suffers or allows a lien to be placed against his Fractional Estate or the entire unit must indemnify, defend and hold each of the other Fractional Owners harmless from and against all liability or loss arising from the claim of such lien. The Association may require the Fractional Owner to deposit cash or negotiable securities to be held by the Association pending final outcome. This protection is more fully described in Section 28.4 of the Declaration and Section 9.3 of the Bylaws. The Association is responsible for the payment of property taxes on and maintenance of the Fractional Unit from the proceeds of the assessment for Common Expenses. The Association's failure to pay such taxes or failure to pay for maintenance work performed may result in a tax sale of the entire Fractional Unit or a mechanic's lien being - 5 - eouox 515 rom'395 filed against it. (q) Mutual Right of Rescission. A statement that there is a ten (10) calendar day mutual right of rescission from the execution of the Purchase Contract by both Purchaser and Seller is contained in the Purchase Contract. (r) Minimum Sales. The Developer has no minimum sales requirement. The project is already dedicated to timeshare, and unit sales may close at any time after the re(,155►c►L� -De-ve-l-op.e�_receives___a--pu44ic-emugt^^-uaed-,--which-J-= - <'r►c;d. -arrtie4pates wi+1<be--trr-August-+964-s-- (s) Maintenance. Maintenance services for the Unit are provided for in Article XVII of the Declaration. In addition to the routine maintenance services provided, a minimum of seven (7) weeks per year are be set aside as Maintenance Weeks during which the Association will provide major maintenance, repair and replacement service to the Unit. Four of these seven Maintenance Weeks will be used exclusively for maintenance with no rentals or other uses allowed. Of the seven (7) Maintenance Weeks, a minimum of two (2) will be designated in the fall and two (2) in the spring. (t) Hold -over Occupants. Section 28.4 of the Declaration provides remedies to the rightful occupant in the event that a Unit is not promptly surrendered at the end of a Use Week. The hold -over occupant is deemed to have waived any notices required by law with respect to eviction or ejection. Further, he must pay to the rightful occupant a sum equal to two hundred percent (200%) of the daily fair rental value of the Fractional Unit, as determined by the Fractional Owners' Association in its Unit, as determined by the Fractional Owners' Association in its sole discretion, for each day during which the Unit is wrongfully occupied. Damages also include costs and reasonable attorneys' fees incurred in the enforcement of this provision. (u) High and Low Season Marketing. Aspen Mountain is typically open for skiing between Thanksgiving and early April. In 1987, it is scheduled to close, depending in part on snow conditions, on April 19. Use Weeks for The Prospector are selected by choice of one week from each of three (3) groups: prime ski weeks, summer/fringe ski weeks, and spring/fall weeks. The price of the Fractional Estate - 6 - Pus 51.5 PAGE396 is largely determined by the prime ski week in the three-week package. Because of this three-week combination marketing program, and the indivisibility of the Fractional Estate, off-season weeks are sold to each purchaser. Since the purchaser pays for an off-season week, it is very /�LX likely to be used. ----- AldcPer (v) Exchange Programs. All Fractional Estates in the 11i15 orpbe",/� �� �;�� c,f /� Project will be able to participate in an exchange program, ,� but participation will not be required. h?f) �Z� cL (l�CLuC (w) Unusual and Material Characteristics. The only � �v unusual and material circumstances, feature and/or 1 )1% 1 characteristic of or affecting The Prospector is its efl!c(-- designation in the Historic Overlay, which requires HPC ,'ale el 0M approval for exterior building changes. u �llee c�.�vk (x) Insurance. The Developer has obtained casualty Pckocje_-/ ,'C' insurance for The Prospector at full replacement value for kp9 04 cat- �7�1 the Property. At the time the Association becomes Ctnnud 1cLr ci operational, all policies will be assigned to it. The insurance provision is Article XVIII of the Declaration. 1���515 chi ln- (y) On -Site Amenities. Located on the deck attached to,SFasCn each Unit is a separate hot tub and sauna for exclusive use 'ct"d S�cuti�ir�) of the Owners of that particular Unit. General common wets i5 elements, for the use and enjoyment of all Fractional �nrn��k,a�;�� Owners, include: the sun deck attached to the third floor on the east side of the building, all on -site parking �`i��L'-J spaces, the lobby area and the laundry facilities which are hArk "", k5 planned for the Project. These amenities and any other SJ1jJ, ALJ Common Elements will not be owned by the Association; rather a Fractional Estate will include a pro rata GU�Qks �s fractional share of the Common Elements. The Developer will not own, nor charge any fee for the use of, any amenities. �TI'3'►L�'��'alf�� This is prohibited by Article VI of the Declaration. As set;zt c'k lL�t�l forth in subparagraph (o) above, each Owner will pay, as a k,�,ctke, 4,10i, part of the assessment for Common Expenses, a portion of the cost of a membership in The Aspen Club. ))at- Yfr (z) Kitchen Facilities. The Employee Housing Unit �cc! �cl u rt,� (Unit 108) is the only unit containing a full kitchen. Wet TL� P11;"-'L I1• bars and refrigerators are included in the Units. (aa) Limitations on Occupancy. Although the Units in The Prospector are spacious enough to accommodate more than six (6) persons according to the Aspen building codes, the - 7 - 515 wi[397 Developer believes that optimum comfort for the occupants will be insured by limiting their number at any one time to six (6). Therefore, the Association will promulgate a rule restricting occupancy to this number. (bb) Agent for Notice. Article IX of the Articles of Incorporation for The Prospector Fractional Owners' Association and Article XXIX of the Declaration designate the Association as the Owner's designated agent for the service of process or legal notices pertaining to the Fractional Estates. The Registered Agent for service of process is either as specified with the Colorado Secretary of State, or if none is so specified, then the Developer's attorney, J. Nicholas McGrath, 600 E. Hopkins Ave., Suite 203, Aspen, CO 81611. (cc) Applicability of this Disclosure Statement. All Fractional Estates in The Prospector are expressly subject to the requirements and representations set forth in this Disclosure Statement and any amendments to it, recorded in the office of the Pitkin County Clerk and Recorder. The Developer, Security Pacific Finance Corp., hereby affirms under oath that all of the above disclosures are true and accurate to the best of its knowledge and belief. SECURITY PACIFIC FINANCE CORP., a Delaware corporation STATE OF CALIFORNIA ) ss: COUNTY OF SAN DIEGO ) The foregoing instrument was acknowledged before me this 30t1i day of June r 1986 by K.C. MEAD as Executive Vice President_ of Security Pacific Finance Corp., a Delaware corporation. Witness my hand and official seal. My commission expires: October 16, 1987 ..----- OFFICIAL SEAL •� PEGGIE EAGLE NOTARY "LIC CALIFORNIA t P"CIPAI OFFICE IN SAN plEr:• COUNTY _ 8 _ • My Commission Expires Ott. 16. 1987 Not Public (Pegg e Eagle) • MEMORANDUM TO: City Attorney Assistant City Manager FROM: Steve Burstein, Planning Office RE: Prospector Subdivision Exception DATE : October 7, 1986 We would appreciate your review and comments of the application: submitted by Nick McGrath on behalf of Securitiy Pacific Finance Corporation requesting approval of an amendment to the existing Prospector Timeshare permit, Condition #7 with respect to the composition of the timeshare interval packages. Since Nick has already directly sent you a copy of his request we are not sending you an additional referral. If you cannot locate the letter, please let us know and we will make you another. Please review this material and return your referral comments to the Planning Office no later than October 27, 1986 in order to allow Steve Burstein adequate time to prepare for its presentation before City Council on November 10, 1986 Thank you. D MEMORANDUM OCT 5 W6 338-86 TO: Steven Burstein, Planner FROM: Ronald L. Mitchell, Assistant City Man�age,r/' Administrative Services Director rG� DATE: October 13, 1986 RE: PROSPECTOR SUBDIVISION EXCEPTION I have reviewed the application submitted by Nick McGrath on behalf of Security Pacific Finance Corporation requesting approval of an amendment to the existing Prospector Timeshare permit, Condition #7 with respect to the composition of the timeshare interval packages. Their proposed changes appears reasonable and I would recommend approval of the requested amendment. klm CITY OANSPEN 130 ;h'th galena street aspen, colorado 81611 303-925-2020 MEMORANDUM DATE: October 20, 1986 TO: Steve Burstein, Planning Office FROM: City Attorney RE: Prospector Subdivision Exception g t —;�jw e IF I have reviewed the application submitted on behalf of Security Pacific Finance Corporation regarding the Prospector and find no legal impediment to the composition of timeshare interval packages as requested. PJT/mc TO: TH RU : FROM: RE: DATE MEMORANDUM Aspen City Council Robert S. Anderson, Jr., City Manager Steve Burstein, Planning Office . /2,tU .1 Prospector Lodge Timeshare Subdivision Exception November 5, 1986 SUMMARY: The Planning Office recommends that the requested change to the conditions of approval be denfe-&. Pvj, 4'' vU APPLICANT'S REQUEST: Security Pacific Finance Corporation owner of the Prospector project, requests a change in condition 7 of its permit to allow the sale of three week intervals in any combination of weeks so long as annually the total off season weeks sold is 26% of the total weeks sold. PREVIOUS COUNCIL ACTION: On May 29, 1984 Council approved the Prospector timeshare project, subject to thirty-four conditions attached to the condominiumization plat. An amendment to condition was approved by Council on February 10, 1986 to accomplish: elimination of the requirement that 8 out of 15 timeshare packets be sold prior to closing on a unit, removing reference to the transportation and lodging gift prohibition, and correcting the name of current plan manager. Council also adopted Ordinance No. 67, Series of 1985 to amend the timeshare ordinance with regard to inspection trip limitation and reducing the annual licensing fee, at the request of the Prospector and Shadow Mountain timeshare operations. Applicable Section of the Municipal Code: Section 20-24 E(3) states the applicable restrictions on packaging of on -season and off-season timeshare weeks, and is quoted in Nick McGrath's September 16, 1986 letter of application. Sections 20-24 B(5) and B (6) define "off-season" and "on -season" for purposes of timeshare week packaging. PROBLEM DISCUSSION: A. Referral Comments: 1. City Managers Office: Assistant City Manager Ron Mitchell stated in an October 13, 1986 memorandum that the proposed changes appear reasonable and he would recommend approval of the requested amendment. 2. City Attorney: The City Attorney stated in an October 20, 1986 memorandum that he finds no legal impediment to the composition of timeshare interval package as requested. B. Planning Office Comments: The purposes for the off-season sales requirement in timeshare projects are as follows: 1) To not leave the least desirable inventory of off- season units unsold and consequently create a drain upon the existing interval owners and threaten the financial security of the project/individual units (as formulated in Mr. McGrath's letter) . 2) To bring visitors into Aspen during our shoulder seasons to increase the economic (and social) vitality of the community. 3) To encourage the timeshare visitors who enjoy the off- season to tell others of the merits of that time and further bolster the shoulder period. Staff feels that these purposes are still valid and alterna- tive intervals packaging should not substantially compromise this positive aspect of our timeshare projects. Section 20-24 (E) (5) requires that one off-season week must be sold with each on -season week in a timeshare interval package. Dividing a year into the on -season and off-season weeks, minus the four non -rental weeks that must be used for maintenance, 69% of the year is composed of on -season weeks and 31% of the year is composed of off-season weeks. The approved Prospector marketing plan conforms to this ratio of 69% on -season week sales and 31% off-season week sales. The applicant reports that actual sales total 79% on -season week sales and 21% off-season week sales, which reflects vio- lations in their marketing plan. At this time the applicant requests a formula of 74% on - season to 26% off-season week sales. This represents a reduction in the need to sell off-season weeks intervals below the Code guidelines by five percent (5%) . The on- season/off-season imbalance would likely become more pronounced. Furthermore, it does not appear to be feasible for the City to require the "variation to be eliminated in the following year's sales", as the applicant has suggested. While it is reasonable for the applicant to seek a more workable marketing plan, we believe that this proposal would 2 C� create a large is contrary to requirement. inventory of unsold off-season weeks, which the intent of our off-season week sales The timeshare ordinance does allow for more than 1 off- season week to be sold in a package; and we would have no problem allowing the Prospector to amend their plan to allow for such sales (for fisherman and other, as suggested) . ALTERNATIVES: Council could 1) approve the change as requested, 2) allow 31% off-season week sales depending upon an enforceable procedure to bring the off-season into annual compliance, or 3) deny the requested amendment. RECOMMENDED NOTION: "Move to -de -ay the requested amendment to the Prospector interval sales plan% Sib 4 -�- F_A , 5�,�, "_Q") S B . 5 4 � � �--� c��. � S..o c^.� •�Q �S/,�\ _�-s ..,-�"1 � ^�-�,,, � -c-Q �i y (�.� C , � � �k �i a � �..� �. 3 • J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW 600 EAST HOPKINS AVENUE SUITE 203 ASPEN, COLORADO 81611 November 6, 1986 Aspen City Council 130 South Galena Aspen, CO 81611 AREA CODE 303 TELEPHONE 925-2612 Re: Security Pacific Finance Corporation --Prospector Dear Mayor and Council Members: This is in the nature of a status report to you, as well as to demonstrate SPFC's good faith with regard to the Prospector project, to the extent that is relevant to your granting SPFC additional feasibility concerning the sale of intervals at the Prospector. SPFC has already lost $1,000,000.00 with regard to the loan on this project. That is, its loan exceeded the value of the project at the time of the foreclosure by approximately $1,000,000.00. While it has the right to pursue Mr. Schober, Mr. Cagle, and Merit Investment, the developers, to its present knowledge they do not have assets to warrant a deficiency suit. SPFC has paid local creditors of Merit and other bills of Merit on this project to the extent of approximately $130,000.00 to date (see attachment). It was not legally obliged to pay any of these except the real property taxes that had not been paid by Merit for two years. It was not obliged to pay creditors of Merit since its loan was ahead of any liens of creditors. It did so in good faith and as part of a pledge to the City to do what was necessary and appropriate to make the project a credit to the City, to those who had purchased at the Prospector, and the like. As you know, SPFC took over the project through foreclosure. There had been approximately 37 sales by Merit, and most of those were based upon promissory notes which were assigned to SPFC. Two dozen of those were in default. Merit could have foreclosed upon those notes and required payment by those individual purchasers. Instead, it persuaded some to become interested in the project again. And it took quit claim deeds back from seven purchasers who no longer wanted to remain in the project, and let them walk from their obligations under the assigned notes because that seemed appropriate to generate the kind of good faith and interest in the project that the Bank hoped the project merited. That reduced the number of owners, and thus reduced the number of 0 J. NICHOLAS MCGRATH, P.C. ATTORNEY AT LAW Aspen City Council November 6, 1986 Page 2 those who share in the maintenance and upkeep costs that the Bank is also now paying. The bank received $13,100.00 in escrow deposits from the prior developer. However, more claims were made upon that money than money received from the developer, and to date the bank has advanced $7,500.00 of its own to generate good faith with those people. It could have simply told them to sue the prior developer. SPFC, through Buzz Fedorka and Barry Lefkowitz, has sold 9 fractions of 3 week intervals. Of these, three were additional sales to existing owners. While SPFC would greatly desire a higher number of sales since the project is still a great financial drain to it, it nonetheless appreciates and believes that it is a good sign that existing owners wish to buy further fractions. Three of the nine were to parties that had purchased several years ago but had never closed. Thus, there has been three "new" sales since August 1. It would seem evidence SPFC need some additional flexibility as to what combinations can be sold; the plan before you may not be the best plan, but some experimentation or change needs to be done, and this is a start. Sincerely, J. Nicholas McGrath, P.C. 8:spctcn06.ltr 0 MERIT DEBTS PAID BY SPFC Payee Aspen Club Buzz Fedorka Snowmass Village Sun Impressions of Aspen Aspen Times Sears -Office Furniture Media Brokers Ashley Associates Ashley Advertising Aspen Branch Zap Cleaners KSNO Air Destination Provideo/Aspen Quide Duplicators Federal Express Aspen Activities Marti Sommers Aspen Maintenance The Greenhouse Restaurant Rocky Mountain News David Harris/Neiley Gideon Kaufman Aspen Daily News (trade $2,000 also) Schacht Electric A.L. Larsen -Co -Lessee KSPN / TV2 (will trade some) Rosendahl Investor Group Pitkin Co. (property taxes due from 1984-1986 - will be paid in the next month or two before sales) Total Amount Paid $ 17,505.00 5,000.00 900.00 462.87 2,053.46 1,056.00 4,153.28 2,255.86 1,338.67 713.73 1,400.00 2,179.75 2,302.23 3,000.00 899.40 1,834.00 100.00 150.00 186.10 430.15 453.60 3,500.00 4,757.00 2,000.00 331.00 1,400.00 0.00 45,069.00 33,000.00 $138,431.10 Date Paid 5/01 5/11 5/11 5/11 5/11 5/11 5/11 5/11 5/11 5/11 5/11 5/11 5/11 5/11 5/11 5/11 5/11 5/11 5/11 5/11 5/11 5/12 6/04 6/16 6/06 6/06 5/10 and 6/16 CASE DISPOSITION: PQ J" ( t ;�c.,�f�� vt'di•���^ ��/`I�:n Reviewed by: A_On P&Z City Coun —� ��i; ���j�t?^_�:,�1i��t�� �nr�f�I 1��:�✓t��p?���r�9 1�. /,fC�:i,�� .� %:4'/4jj 1 ji„^N/ i �„%�.�f 0; �l''E.� �1 ,r f „✓1;� �-�l.f�%�ii i ,-�{.�=' l,6'�.�.r'b�- • 4°; �?`I, !•:1%` ^' ��='V-'�'F'1 A u°T-�.��•�•. I � J , j, Yf ^ / 1.*f7M � 'n of V', � 4ti�1 /!/ QQiI y�f . 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