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HomeMy WebLinkAboutcoa.lu.ec. Prospector lodge Subd.39A-86 ~.....~~ ~V&'"~'A. .~LI.&:l&:.ll.&. DATE DATE ( Type of Application: I. GMPjSubdiv ision/PUD 1. Conceptual Submission 2. preliminary Plat 3. Final Plat II. SubdivisionjPUD l. Conce pt ual Submi ssion 2. Pr el imi na ry Plat 3. Final Plat III. All '"Two Step" Appl icationJ IV. All "One Step" Appl ications V. Referral Fees - Env ironmental Heal t h, Housing Office 1. Minor Appl ications 2. Major Applications Referral Fees- Engineering' Minor Applications Major Applications of Aspen 273"1'- I gJ - /7- (tit , ':,: E NO. ,21JlJ!L STAFF: <." 6 ui -) ~. _I' I>'. ;.....Lk..J,l.t:_' !J .~~ L. /,}- 20 12 6 $2,730.00 1,640.00 820.00 1-1 $1,,900.00 ' 9 1,220.00 6 820.00 11 $1, 490 .00 5 $ 680.00 ..-- 2 $ 50.00 5 $ 125.00 80.00 200.00 -*:.3:;..;'= =.~.===~.~~.~..:;;;;,~ ~~'~=~~~ J ::::;d~u~~=;~"= ~~.~.~::..::============ ==== === =::== :.;.;::= =~ ::::==- P&Z @ MEETING DATE: 1\.0\1,'0 ," . (rl;{ ) lily'. DATE REFERRED: ,-" ," ( " II> PUBLIC I;I~, ING: INITIALS: fi~G YES @ ---------------------------------------------------------------------- --------------------------------------------------------------------- Aspen Consolo S. D. School District Mtn. Bell Rocky Mtn. Nat. Gas Parks Dept. _ StateHwy Dept (Glenwdl Holy Cross Electric State!lwy Dept (Gr.Jtnl Fire Marshall Bldg: zoningjInspectn Fire Chief Z Other: 4;..<tc.~ ""'-'\ R. Roaring Fork Transit _____ Roaring Fork Ene~gy Center ---------------------------------------------------------------------- ---------------------------------------------------------------------- FINAL ROUTING: DATE ROUTED: J;;'.'<-Si INITIAL:)~ REFERRALS: / Ci ty Atty Ci ty Engi neer !lousing DiL Aspen ~Iater City Electric Envir. HI th. v" Buil di ng Dept. / City Atty _ City Engineer Other: Rco r:,Tohii I 1\:. "t.,'; Cdj f~/'I;';' FILE STATUS AND LOCATION: Oth er: u '."', ,v SECURITY PACIFIC FINANCE CORP. K.C.MEAD EXECUTIVE VICE PRESIDENT April 16, 1986 Dear Prospector Owners Champagne and flowersl 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 compl iment your next stay in Aspen, Colorado. We sincerely look forward to continued relations with you. , Sincerely, ~~ _,-U/!:L-9- Kenneth C. Mead Executive Vice President Specialized Financing Services KCM/pwr 10009 WIllOW CREEK ~OAD SAN OIEGO, CAUFORNI", 9213' TELEPHONE eet., !i7a-l1!1O ~_o.-.Q.IIOI'V.~lCt:(lOIl'OIIOl\""" ~~- " ," .". #"" Iv 7 ~~Itfr /I.;~W &.eft" Uti J1ML .n')..... tb\.( v: ...Mc.~ f1Ur ~U Security Pacific Finance Corporation has foreclosed upon The Prospector project. We have taken over control of the management of the project and have begun to revitalize it as a premier timeshare vacation resort. ,~ Draft to be sent 0 the three in crow Dear 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 righ~ 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 ~oney deposits. Security Pacific Finance Corp. '. bc1:1spfc426 --"_.__.j-,.__.~~~,._<".,~,~._,,~,-~-,,~._--,._"~--.~'.'"-~. r"' !)vaJ t /",' (( cc " ' 1';J...uJ c; k i € / PROSPECTOR PERMIT AMENDMENT CITY OF ASPEN D ~~awz~ Ii< .ill 2 H4i6 }n }itiated a rU Statement of Subdivision Exception Whereas, Security Pacific Finance Corp. (SPFC), foreclosure upon the Prospector timeshare project, a 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, refl~cting 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 I" '""' . 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 nm16:prosperm ".~,.~-~.~._~.",-~-~~_.~.----,-_._--_.,---_.~ '::( -y J. NICHOLAS MCGRATH. ?C. ATTORNEY ATLAW 600 eAST HOPkiNS AVENUE SOlTE203 ASPEN. COLORADO 81611 AREA CODE 303 TELEPHONE 925-2612 September 16, 1986 o ~~,OW1~ G0. , Mr. Steve Burstein Aspen/Pitkin Planning Office 130 South Galena Aspen, CO 81611 SL ' L:-' J' 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 (~, 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 .,~( ( : J. NICHOLAS MCGRATH.P.C. ATTORNEV 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/Falloff-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 1'"'( ( J. NICHOLAS MCGRATH. P.C. ATTORNEV AT lAW Mr. steve Burstein September 16, 1986 Page 3 following is an approximate appropriate categorization of weeks at the Prospector: Ski weeks Summer Off-season Unsold off-season Maintenance (prime ski) (prime Summer) 20 13 12 3 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 sellout, all other sales factors being positive (~, assuming a demand for timeshare units, ej:c.). 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 ":( r{"' o J. NICHOLAS MCGRATH, P.C, ATTORNEY ATlAW 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: ~, 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, ~, paying in excess of $100,000.00 to creditors of Merit, mostly local people, that it was not legally obligated to pay. rt 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, ~ Me (j..ClC.Xl J. Nicholas McGrath, P.C. cc: Mr. Ron Mitchell Paul Taddune, Esq. 6:lburstei.904 ''''r \. "y " 7. The nineteen (191 renovated units found in the Prospector must each b~ split into fifty-two (5'-) weeks. Seven (1) weeks must be reserved for the maintenance of the project. Four (4) of these seven (7) ,uee~s must be used exclusively for maintenance with no rental a or other uses allowed. Two of the four (4) weekn muat be in the spring while the remaining two (2) weeks must be in the foIl. The reoaining forty-five (45) weeks must be sold as propooed in three (3) week timeshare packages. Elich 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 1\ ~. . ~'( "X . Week Selectlon Cl1art ; Prospector fractional estate owners have three occupancy weeks each year. The choice 01 specific weeks is made at the lime 01 purchase. Each owner creates his own package by selecting one week Irom each season: Prime Ski, Prime Summer and Spring/Fall. . Choose One Choose One Choose One Prlme Ski Plime Summer Sprlng/FaU 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 7 9 34 39 10 35 40 " 11 36 41 12 -37- 42 13 38 43 '50 44 45 . . :~ 48 . ~ . , .f. 49 , - " ) ;. ~ , EXHIBIT B EXHIBIT C c ", , J. NICHOLAS MCGRATH. P.C. ATTORNEY AT LAW 600 EAST HOPKINS AVENUE SUITE 203 ASPEN, COLORADO 81611 AREA CODE 303 TELEPHONE 925-2612 September 23, 1986 IT [g@ rn OWl~Jm, 11 SIP 2 41986 'Ii . ' i8l1 Mr. Steve Burstein Aspen/Pitkin Planning Office 130 South Galena Aspen, CO 81611 Re: SPFC--Prospector--Disclosure Statement Dear Steve: 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 from 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, NtJ,.. J. Nicholas McGrath, P.C. 7:lspfcbur.923 c ""'\ , CITY SECOND AMENDED PROSPECTOR 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 1 c ~ '",..F living space. A twentieth unit is reserved for on employees. The available units feature private decks hot tubs and saunas, wet bars and masonry fireplaces. 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. site with The (f) Restraints on Transfer. There are no restraints on the transfer of a purchaser's Fractional Estate, except that an Owner may not conveyor 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 c """ .# 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 ~ ",.J "'" 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. (0) 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 c ...... (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 requirement. timeshare, and unit rescission period. Sales. The Developer has no minimum The project is already dedicated to sales may close at any time after the (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 c ~ . . 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. 6 ("'"' '\.;.,J ....... , (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 (0) 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 108) is the only unit containing a full kitchen. bars and refrigerators are included in the Units. Unit Wet (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 anyone 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 f"" "j ""'" 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: COUNTY OF ) ) ss: ) STATE OF The foregoing instrument was acknowledged before me this day of , 1986, by of Security as Pacific Finance Corp., a Delaware corporation. Witness my hand and official seal. My commission expires: Notary Public discity2.923 8 t.Oeconfedat.:L.!1.t'cIocIILMt'}~i1J8:-'~IHJOR 5I5 mGf390 - ReceplIon Ne2. "I q q - J L/ " LORmA BANNER PITKIN COUNTY RECORDER SEcoND FIft3T AMENDED PROSPECTOR CITY OF ASPEN DISCLOSURE STATEMENT cJefrY 1986 5e7'rE1.I8E~ 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 one4 attached to the Declaration and recorded s ~ in Book 476 at Pages 357-372 of the records of Pitkin .J. I:l '\i , CountyJ.....ee. riJ. F,,~" .IThul^h.e JAab.......... N ltW'bd /.Lv /3wk >6" I- A,SI' '$~O. ..~ -..!)' ~t:1 ::l ~"~ ~ (a) The Developer. Security Pacific Finance Corp. ~ ~ k j (SPFC), a Delaware corporation, is the Developer. Its ~ ~~ ~~ principal offices are in San Diego, California, and it has ~ ~ ~ J ~ppro~im~~~ly 10 offtces in Colorado engaged in various ~ ~ ~ ~~lefiain busIness. SPF as ec ose upon e rospector I..l ~ \(lio! and expe ts to own he Proj t at th~ end of ~atutory '~..1 '~.i:. redemp on peri s, appr imately m a-August 1 aG. It is ~"~~ curr tly a r eiver fo the proj t. No sale will close """ 'S.~ ~ un 1 SPFC 0 s the Pr ect in f from th foreclosure. _~~ ~ T e Prosp tor timeshar project w original a :{ ~ ~ developme of Me t Invest nt Co. (of Aspen), c., a ~ 1 ~ Colorad corpora on, whic was SPF s borrowe. Merit t~ ~ t appea to be efunct, d will ha no intere in the "'~ ~~ proj ct if it oes not, redeemed its interest from .the ,~ fo closure sale. SPFC s a subsidiary corporation of he seventh largest anking 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 d/'B.'a AepoR !lId . t;rQur a Realty--anG 11!ft\t. (or a eerl'ofc.dtlvu t.o he: dggiSA~tgd I;-y hi~ fer kill bLVk.."',, l!<..",.."",)/iS the Plan Manager. He is a licensed Colorado real estate broker. IIE'. :E.~!Itow!:Ell. is. ('!n-~~.ft.tly the. nlQUaytU':f hre)uar fer the F ....v.!pector 13F8j Sll:t r- IIi.... fl.ll.., u3pel.l ~:n;.l TVULr:t, :hu:. , gpQrat~g......a3 tl~6 c.xclt!&1\fe - 1 - . ,..._~~~'..,.' ,...., \,.,-, (,.,) JOK 515 PAGE391 ....\ ( .'."" "<l) I<vv- -=;;:9:~:;;:~~~.d~?, :,~ .A~=~~:~:h::r~~ L. Lefkowitz, A____ __~ Realty ahd Mg",t., ~lJ 50. ,fJ~rin!'J.-4ltreet, 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. '-3(' I G. Hymi!!,nJ (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 conveyor 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 - ,> ,1.. ~r ;'1(; BOOK 515 PAGE39Z 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. - l I- vo....nu c (I J,t.;<Q (/ D tit! ,!/v'1 . /1- , Iii b b) { f I Ai' a" It August: (1,w' c;/fs an SPF does not nticipate that anyone will redeem.' The w. flwdt original Developer granted, in the Condominium Map, a seven ~ rt!Cf?I.)/ foot by ten foot easement for the existence and maintenance ~ . of a transformer which has previously been placed upon the '1 c.,)! \ '& southeast corner of the property by the City of Aspen. A ~ I. license for certain encroachments of The Prospector onto Plt~.~ property of the City of Aspen was approved by the Aspen CcI.W~ 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. (h) Notice of Liens, Title Defects or E ~t the ime SPFC instituted ~s foreClos*r there were sevetal dg ents liens ainJt the origin 1 deye16per (M~ti , al of ~t were ubsetent ~/prior ty/t6t' PFCJs dee of t ust ther fo those art~s may h ve/red ptio ts. ss ing t se redempti -~ights are not ex rcise - 3 - l.,...., '<-)OOK 515 ffiliE393 ~~:s :6~u~. i~n;r;{i~ e~~~~Phe~~gU~~ vo untari ~ald m;n~~~al cr~~tors ~ ........ 7/U\$ m~ Y (i) Notice of Legal Actions. 'EHee~.g--s.tated- b~ (','j'(~Jn1 ~ imm!aiatllly a~ the Developer has He ItH81T Q err RIlti8e SClhe la....~/.(,f<, ~llev<., e of any 'pending.or anl;i.eipatea h'get! a<:l:.io"~ bRat art; Ihvdv.,,~ t1..:< lore,;\f Amaterial to thel timesQare units or Iplan. P' ,.,' ,~fV,.I"fei- ...- plUleit, tf\J/ 'th~ Df.'1i... f.~e( t (j) purchaser's Financial Obligation. The total /w.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. and SPFC re 196 , t ose }rtdgm a itio, FC ha Meri to (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 provide financing to rates. The financing attached hereto. of Financing. The initial purchasers package is outlined Developer will at favorable in an Exhibit (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 - 4 - /--' /~, BOOK 515 PAGE394 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. (0) 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 - (~' )..,)' BtlOK 515 PAGE:J95 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 requirement. The timeshare, and unit -Q~:e.lnpp.T" --:Orte' Uc.CI ~,*:l.fipllt:ea~1fill be Sales. The Developer has no minimum project is already dedicated sales may close at any time after a .p1019lie tr1istee' B dee&,-wMGh 1" AuguoL 1986. sales to the H refl<;<;/C/\"- pc>nc(l. (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 occ~pant 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 - , I ~( ~ -, BUOK 515 PAGE3n6 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 / W~J the purchaser pays for an off-season week, it is very, Ilu likely to be used. - Ot'~,"kfer , ~ has. n'l'f'l,u/ (v) Exchange Programs. All Fractional Estates in the I If. C t-: cf Project will be able to participate in an exchange program, 'l It 1"''' but participation will not be required. /J~ren <o/l~L (/'CWliQ In JI<, (w) Unusual and Material Characteristics. The only lJ.uR. ~ IlJ unusual and material circumstances, feature and/or" l .. characteristic of or affecting The Prospector is its allvul tnR designation in the Historic Overlay, which requires HPC ~41e d (lPJ- approval for exterior building changes. lI,ru. /(.ld> f- (x) Insurance. The Developer has obtained casualty f"C~fJe..1 ,10 insurance for The Prospector at full replacement value for k'l1.:J (l~ Cll., <71) the Property. At the time the Association becomes al1I"olJ.i1/'l..e,i operational, all policies will be assigned to it. The h L. insurance provision is Article XVIII of the Declaration. t'IS/S /,fU 5e/le () r 1'1l- (y) On-site Amenities. Located on the deck attached to ,SellsOn (#;,f)h- each Unit is a separate hot tub and sauna for exclusive use tt...d SUjJI/ll~') of the Owners of that particular Unit. General common. t~;s elements, for the use and enjoyment of all Fractional ~( (.~ Owners, include: the sun deck attached to the third floor (lft~"n;'l.';'A1f,' , on the east side of the building, all on-site parking'7 7t" u; spaces, the lobby area and the laundry facilities which are /vl...{ v.c.' is planned for the Project. These amenities and any other S~Il") ~~,,{ Common Elements will not be owned by the Association; olJ-SI'{J'"C>> rather a Fractional Estate will include a pro rata k ~ fractional share of the Common Elements. The Developer will l~1 S I f & not own, nor charge any fee for the use of, any amenities. arV'nN.IUl~ e ( This is prohibited by Article VI of the Declaration. As set:l-b ~ (.11- /"')/1.C forth in subparagraph (0) above, each Owner will pay, as a ~ks 4/.1al. part of the assessment for Common Expenses, a portion ofilu:- (it.. hil\. the cost of a membership in The Aspen Club. ~ ~ /1P Yf 1 Unit (lJ."J urm Wet 1tv- pn;pt,c,<ll. (z) Kitchen Facilities. The Employee Housing (Unit 108) is the only unit containing a full kitchen. 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 - ~ .,) 80011 515 PAGE397 Developer believes that optimum comfort for the occupants will be insured by limiting their number at anyone 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 By: ;;(J/:~(~~ , KI' I 1;- , , '~ / f f!IIO" V I -- . ~ -.. '.' .... f. STATE OF CALIFORNIA ) ) ss: ) COUNTY OF SAN DIEGO The foregoing this 30th day K.C. MEAD Pacific Finance instrument of as Corp. , was acknowledged June , Executive Vi~p- PrPAinpn~ a Delaware corporation. before me 1986 by of Security Witness my hand and official seal. My commission expires: October 16, 1987 . OfTIC'AlSE"l . ,.".' PEGGIE EAGLE . NOfARV ~lIt CAl1JOf'NI'" PftttIC'flAt OfFlC( IN ..... SAN Dlml COt}HTY My C.mmissill1 bpim Oct. 16, 1981 - 8 - , MEMORANDUM FROM: Ci ty Attorney Assistant City Manager Steve Burstein, Planning Office TO: RE: Prospector Subdivision Exception DATE: October 7 I 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 17 with respect to the composi tion of the timeshare interval packages. Since Nick has already directly sent you a copy of his request we are not sending you an addi tional 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. c "'"' 338-86 D [g@[gu'W~~ ocr '51006 .) III MEMORANDUM TO: Steven Burstein, Planner FROM: Ronald L. Mitchell, Assistant City Administrative Services Director Manager! ~ J-~ 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 - <<"." 130 asp MEMORANDUM trn@ffiG~rg ~ )1 112.. I\D 1\ \\~ DATE: October 20, 1986 TO: steve Burstein, Planning Office FROM: city Attorney RE: Prospector Subdivision Exception 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. PJTjmc ,.... ""- ,,~ ....'."h, MBIK>RAROOM ~ ~A-tl ~ ~,(\.., l..o~c-o~ . A.. ') ",,-WI ~-.J TO: Aspen Ci ty COuncil FROM: Robert S. Anderson, Jr., City Manager Steve Burstein, planning Office AA Prospector Lodge Timeshare Subdivision Exception November 5, 1986 THRU: RE: DATE: ---------------------------------------------------------------- ---------------------------------------------------------------- SUMMARY: The Planning Office recommends that the requested change to the conditions of approval be aenied. /l>-jl(h.cv...! . 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 conCIL AC'.rION: On May 29, 1984 COuncil approved the Prospector timeshare project, subject to thirty-four condi tions attached to the condom~niumization 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. App1icabic:i 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: I) 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 communi ty. 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 posi tive 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 appl!cant 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 .'... ~.,_......~,~.".~_.O~~'~"~.M...N__'~~"_"._"'___ _~,...___,~,~._._ , .. ".'... .. ...'. ,...."".- _...~,- , I"'" "'" create a large inventory of is contrary to the intent requirement. The timeshare ordinance does allow for more than 1 off- season week to' be sold in a package 7 and we would have no problem allowing the Prospector to amend their plan to allow for such sales (for fisherman and other, as suggested). unsold off-season weeks, which of our off-season week sales 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. RECOMIIBRDED MOTION: P<:eq'-Avt. -Move to ~ the requested amendment to the Prospector interval sales plan"'" <,v\'p -\-. ~ "'ff~\.u..~ ~,\,"'" \""J.., "'-""-J ~,-..~'w..Nl. &..'-~~~-^> ~ "'4 ">L ~u.,~ ~'\ C'4. L,\.- d 4-\\-0""" .\". SB.54 I W\ ~ .. ~ '\ "-,--~,\",,,~ "'-\."o-'-Io'{~ """,--\-., \.\ ...-..",,~,J "~~~Al~, 3 "" -,",,/ -- J, NICHOLAS MCGRATH. P,C, ATTORNEY AT LAW 600 fAST HOPKINS AVENUE SUITE 203 ASPEN, COLORADO 81611 "IUA CODe 303 TELEPHONE 925.2612 November 6, 1986 Aspen City Council 130 South Galena Aspen, CO 81611 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 ~ot 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 ,.... ........ ....., 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 - "'"" MERIT DEBTS PAID BY SPFC Amount Date Payee Paid Paid Aspen Club $ 17,505.00 5/01 and 6/16 Buzz Fedorka 5,000.00 5/11 Snowmass Village Sun 900.00 5/11 Impressions of Aspen 462.87 5/11 Aspen Times 2,053.46 5/11 Sears-Office Furniture 1,056.00 5/11 Media Brokers 4,153.28 5/11 Ashley Associates 2,255.86 5/11 Ashley Advertising 1,338.67 5/11 Aspen Branch 713.73 5/11 Zap Cleaners 1,400.00 5/11 KSNO 2,179.75 5/11 Air Destination 2,302.23 5/11 Provideo/Aspen Quide 3,000.00 5/11 Duplicators 899.40 5/11 Federal Express 1,834.00 5/11 Aspen Activities 100.00 5/11 Marti Sommers 150.00 5/11 Aspen Maintenance 186.10 5/11 The Greenhouse Restaurant 430.15 5/11 Rocky Mountain News 453.60 5/11 David Harris/Neiley 3,500.00 5/12 Gideon Kaufman 4,757.00 6/04 Aspen Daily News (trade $2,000 also) 2,000.00 6/16 Schacht Electric 331.00 6/06 A.L. Larsen-Co-Lessee 1,400.00 6/06 KSPN / TV2 (will trade some) 0.00 Rosendahl Investor Group 45,069.00 5/10 Pitkin Co. (property taxes due from 1984-1986 - will be paid in the next month or two before sales) 33,000.00 Total $138,431.10 =====:::===== Reviewed by: Pm j Pccl,{ ~d;r AC:n P&Z T",,,,, I" '" ...bdl~'~ft~ tXr.tf1:(1~ I !~d,,,~Ir....,.., J CASE DISPOSITION: "3 C Ci ty Counl,... O r,~ 1..1 r.-0'..I", I r, I',; I I.^ ,4 (^ J v :,\~./.~1 ^ Ii iLJi ,. ""-to")' ;:jJ,f'J'I'{o, -I: . 0 j' / ~tL:1_t~1.~t/ lY1'.1"Kf. J.. , , p Eevie\'lCC; D~T: t~8per: P&Z Ci t~l Council --,._.<.'----.,.."..~....._--_.......__.,-~.._.,..<- ,...... r, I~ PfVr>J>..- Arwrk-iJ _ . ,)..{, J; ", '.. ~x l-rlf"~ (11/01) CITY OF ASPEN. r MEMO FROM STEVE BURSTEIN - 11 ("j 1-# To. f 11.;,) I t4.;w J c{1.j A U{iI'^0 F'D" : S-te,~ Q)U'~"" rt..,.,'14:, 6tt'v> R I.:.: f"",~~ 'ii1.6.Y'.f'f 1 '1.Jrt~~",_~ I': }.(r-tc-,' [)C[te: t~ ')1111~ t It a:ti,)) ~t'Y'<i'.f 11,J,t.k:..r~ I:.;'o/t",,; '>>.1.,1;, ~,J..L J ;11, Offr"c"J 1:U" n1-M,~ t(fo ' -- TI31 -/P f}-(Jj ASPEN/PITKIN PLANNING OFFICE I 130 South Galena Street 3111 310 Aspen, Colorado 81611 (303) 925-2020 LAND USE APPLICATION FEES City 00113 .63721 - 47331 - 52100 GMPtCONCEPTUAL - 63722 - 47332 - 52100 GMP/PREUMINARY - 53723 - 47333 - 52100 GMP/FINAL - 63724 - 47341 - 52100 SUB/CONCEPTUAL - 63725 - 47342 - 52100 SUB/PRELIMINARY - 63726 - 47343 - 52100 SUB/FINAL - 63727 - 47350 - 52100 ALL 2-$TEP APPLICATIONS - 63728 - 47360 - 52100 ALL l-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/OETAlLED - 63713 - 47333 - 52200 GMP/FlNAL - 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 - 0??oo COMP. PLAN - 63066 - 09000 - 0??oo COPY FEES - 63069 - 09000 OTHER SUB-TOTAL TOTAL .:t h XI ), .;J J, (r,!(( ), v~ Name f\ I (i- \ I'" (1 /I Ii) I ", Address; ~ , t-- - I v-. nil .,} I, .11, (1-. I ... lto; , ,I I x .:t /..xf', c6 Phone: c; - ~I~ . If iQ3proi,::,t1 ......1 Ol d:rr " . .. II I '/1 r-v / - Date: ;,.,- 1 ( # of Hours: 5" Check # Additional Billing: }'lIllk