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HomeMy WebLinkAboutlanduse case.lodge lottery.1301 E Cooper Ave.A78-96 CASET`'IAD SUMMARY SHEET - CITY OF SPEN DATE RECEIVED: 11/1/96 CASE# A78-96 DATE COMPLETE: STAFF: Stan Clauson PARCEL ID# 2737-181-37-005 PROJECT NAME: J&B Hotels Small Lottery Project Address: 1301 E. Cooper Ave. APPLICANT: J &B Hotels Address/Phone: 925-7081 REPRESENTATIVE: Joseph Wells Address/Phone: 602 Midland Park, Aspen 81611 RESPONSIBLE PARTY: Applicant Other Name/Address: FEES DUE FEES RECEIVED PLANNING $0 PLANNING $ #APPS RECEIVED ENGINEER $0 ENGINEER $ #PLATS RECEIVED HOUSING $0 HOUSING $ GIS DISK RECEIVED: ENV HEALTH $0 ENV HEALTH $ CLERK $0 CLERK $ TYPE OF APPLICATION TOTAL $ TOTAL RCVD $ Staff Approval Review Body Meeting Date Public Hearing ? P&Z ❑Yes ['No CC ❑Yes ❑No CC (2nd reading) ❑Yes ❑No REFERRALS: ❑ City Attorney ❑ Aspen Fire Marshal ❑ CDOT ❑ City Engineer ❑ City Water ❑ ACSD ❑ Zoning ❑ City Electric ❑ Holy Cross Electric ❑ Housing ❑ Clean Air Board ❑ Rocky Mtn Natural Gas ❑ Environmental Health ❑ Open Space Board ❑ Aspen School District ❑ Parks ❑ Other: ❑ Other: DATE REFERRED: INITIALS: DATE DUE: APPROVAL: Ordinance/Resolution# Date: Staff Approval ,`,,-, _ J o Date: Plat Recorded: Book ' Page C 1�o f/v+�.b� Ck/N-tA CLOSED/FILED DATE: -� /� i INITIALS: c J L--/ ROUTE TO: C Joseph Wells Land Planning, Inc. 602 Midland Park Place Aspen,Colorado 81611 Phone: 970.925.8080 Facsimile: 970.925.8275 November 1, 1996 Mr. Dave Michaelson Aspen Department of Community Development 130 South Galena Street Aspen, Colorado 81611 Hand Delivered Dear Dave: As we previously discussed, I am submitting, on behalf of J & B Hotels, LLC, an application for a lodge unit allocation under the newly established lottery for LP lodges. You previously suggested that in order to allow staff sufficient time to review these applications to determine eligibility prior to the November 5 lottery drawing, we should submit our request by November 1. Please give me a call if you would like to discuss this matter further or if you need any additional information. Sirtceely, Joseph Wells, AICP SMALL LODGE EXPANSION LOTTERY APPLICATION FOR THE CRESTAHAUS LODGE This application requests, on behalf of J & B Hotels, LLC, owners of the Crestahaus Lodge, approval of a lottery allotment for 10 lodge units under the Small Lodge Expansion Lottery established by Ordinance 29, Series of 1996. The Applicant intends to expand the lodge in conjunction with the improvement of the 31 existing lodge units and the expansion of guest amenities and affordable housing. In addition to the 31 lodge units, the lodge presently contains a dining area and kitchen and two lounge areas. Two detached structures include affordable housing. Previously, the owners agreed to deed-restrict 625 square foot of dormitory space and a 270 square foot room for the Manager for affordable housing. The housing director subsequently agreed to the relocation of this housing to an existing detached single-family residence on the site. The previous owner also previously received approval through a GMQS Exemption process to build a structure which contains two deed-restricted studio apartments and a resident-occupied unit. Specifically, the Crestahaus Lodge expansion will consist of the remodeling of 25 of the 31 existing lodge units and approximately 9,047 sq ft. of accessory space, the reconstruction of 6 of the existing lodge units, the addition of 10 new lodge units and approximately 17,137 sq ft. of accessory space and the conversion of 6 of the existing lodge units to deed-restricted studio apartments for employees. There will be a total of 41 lodge units in the facility upon completion of the expansion. Upon receipt of a lodge unit allotment, the applicant will file for "change in use" review as called for by Ordinance 29 and special review as required under Sec. 26-64 of the Code, to establish the external floor area ratio to be allowed, and the open space and parking to be required for the project. The attached narrative addresses the requirements for an application for inclusion in the Small Lodge Expansion Lottery. 1 Application Form (Attachment 1): The application form is attached as Exhibit A. H. Minimum Submission Requirements (Attachment 2): All Lottery Applications shall include, at a minimum, the following information and materials: A. The applicant's name, address and telephone number, contained within a letter signed by the applicant stating the name, address, and-telephone number of the representative authorized to act on behalf of the applicant. A letter from the applicant authorizing Joseph Wells Land Planning to act as representative of the applicant is attached as Exhibit B. B. The street address and legal description of the parcel on which the conversion or expansion is proposed to occur. The street address of the Crestahaus Lodge is 1301 East Cooper Avenue. The legal description of the parcel on which the expansion is proposed to occur is attached to the title commitment attached as Exhibit C. C. A disclosure of ownership of the small lodge on which the conversion is proposed to occur, consisting of a current certificate from a title insurance company, or attorney licensed to practice in the State of Colorado, listing the names of all owners of the property, and all mortgages, judgments, liens, easements, contracts and agreements affecting the parcel, and demonstrating the owner's right to apply for the Lottery. A title commitment prepared by Stewart Title Company is attached as Exhibit C. D. An 8.5" x 11.0" vicinity map locating the subject Lodge within the City of Aspen. A vicinity map locating the subject Lodge within the City of Aspen is attached as Exhibit D. III. Specific Submission Requirements (Attachment 3): A lottery application shall consist of three (3) copies of the following information: 2 A. A written description of the proposed development including statements addressing the following: 1. The total development area of the proposed project; the type of housing, commercial or lodge expansion proposed; total number of units and bedrooms, including employee housing; and a tabular analysis outlining the proposed development's compliance with the dimensional and use requirements of the appropriate zone districts. Since some underlying zone districts allow mixed uses, and an applicant may request inclusion in the commercial, residential and lodge expansion lotteries. a. Total development area of the proposed project. Total development area of the proposed project is 56,192 sq.ft. b. Type of housing, commercial or lodge expansion proposed. The existing 31 lodge unit facility is proposed to be expanded by the addition of 10 lodge units, to 41 lodge units. Accessory commercial space and other common areas of the lodge are proposed to be expanded from approximately 5,291 sq. ft. to approximately 12,240 sq. ft. Affordable housing to be provided for the lodge is to be expanded from approximately 895 sq. ft. to approximately 2,946 sq. ft. c. Total number of units and bedrooms, including employee housing. Following expansion, the lodge will include 41 lodge units with 41 lodge bedrooms, 8 deed-restricted studio apartments for affordable housing for the lodge and a one-bedroom apartment deed restricted to resident occupancy. d. Tabular analysis outlining the proposed development's compliance with the dimensional and use requirements of the appropriate zone districts: - - - - - i. Purpose: The expansion of the lodge is consistent with the purpose of the Lodge Preservation (LP) Overlay Zone District, which is "to provide for and protect small lodge uses in areas historically used for lodge accommodations, to permit expansion of these lodges when such expansions are compatible with neighboring properties, and provide an 3 incentive for upgrading existing lodges on-site or onto adjacent properties." ii. Permitted uses: The expanded lodge will include the following uses, which are permitted as of right in the LP Overlay zone district: (a) Lodge units. (b) Accessory use facilities intended for guests of permitted lodge units, which are commonly found in association and are for guests only, including office, lounge, kitchen, dining room, laundry and recreational facilities. (c) Affordable housing for employees of the lodge. (d) Accessory buildings and uses. iii. Conditional uses. The following use which is permitted as a conditional use in the LP Overlay zone district, subject to the standards and procedures established in Chapter 26.60, is proposed to be maintained within the expanded lodge: (a) Restaurant included within a lodge operation serving guests and others. iv. Dimensional requirements. The expansion will be in compliance with the following dimensional requirements which apply to all permitted and conditional uses in the LP Overlay zone district: (a) Minimum lot size: No requirement. Minimum lot size is not applicable to the project. (b) Minimum lot area per dwelling unit: No requirement. Minimum lot area per dwelling unit is not applicable to the project. (c) Minimum lot width: No requirement. Minimum lot area per dwelling unit is not applicable to the project. (d) Minimum front yard: 10 feet. A minimum front yard setback of 10 feet will be maintained for the expansion. 4 (e) Minimum side yard: 5 feet. Minimum side yard setbacks of 5 feet will be maintained for the expansion. (f) Minimum rear yard: 10 feet. A minimum rear yard setback of 10 feet will be maintained for the expansion. (g) Maximum height: 25 feet. A maximum height of 25 feet will be maintained for the expansion. (h) Minimum distance between principal and accessory buildings: 10 feet. A minimum distance of 10 feet between principal and accessory buildings will be maintained for the expansion. (i) Percent of open space required for building site: 35 percent (can be varied by special review pursuant to Section 26.64). The percentage of open space proposed to be provided for the building site which complies with the current open space definition is approximately 30 percent. Therefore, the open space requirement must be approved by special review, as provided under Ordinance 29, Series of 1996. (j) External floor area ratio: Established by special review pursuant to Chapter 26.64, not to exceed 1:1. The FAR square footage of the expanded facility, which must be established by special review, is approximately 0.62:1 (34,613 FAR sq. ft. on a 56,192 sq. ft site). (k) Internal floor area ratio: (1) Lodge rental space: Maximum of 0.75:1,which can be increased to 1:1 internal FAR of lodge rental space provided 33.3% of the additional floor area is approved for residential use restricted to affordable housing for employees of the lodge. The ratio of the lodge rental space to all uses in the expanded facility- approximately 17,137 sq, ft. of a total of approximately 5 34,613 sq. ft.- is 0.50:1. This is a reduction from the present internal floor area ratio for lodge rooms of 0.57:1 and results from the proposed expansion of the accessory uses and affordable housing in the facility. v. Off-street parking requirement: The expansion will be in compliance with the following off-street parking requirements in the LP Overlay zone district, subject to the provisions of Chapter 26.32: (a) Lodge use: 0.7 spaces/bedroom, of which 0.2 space/bedroom can be provided via a payment in lieu pursuant to Chapter 26.64. The requirement for a 41 lodge room facility is 29 spaces. (b) All other uses: 4 spaces/1,000 square feet of net leasable area. No additional parking will be proposed for the common areas within the lodge because these areas are accessory to the lodge facility. (c) Parking requirements for affordable housing: to be established by special review. Under the provisions of Sec. 26.32.010, the off-street parking requirements for all affordable housing "shall be established by special review pursuant to Chapter 26.64". Pending further discussions with staff, it is the applicant's intention to request a reduction in the number of off-street parking spaces from that required to be provided for residential development because of the proximity of the housing to the employee's workplace. The applicant is requesting inclusion only in the lodge expansion lottery. ii. The method by which affordable housing will be provided,based on analysis of previous employee generation and expected employee generation following conversion. If necessary, a description of the type and amount of such housing shall also be provided. The applicant will propose to convert 6 existing lodge units to studio apartments and deed restrict the studios to use for affordable housing for lodge employees. The applicant will also propose to assign the two existing 6 deed-restricted studios in the triplex which were previously approved through a GMQS Exemption process to use for lodge employees only. The previous owner was allowed to relocate the 895 sq. ft. of housing previously required to be provided within the original lodge facility to the existing detached residential structure on the property. Since this building will be removed under the proposal to expand the lodge, this housing will proposed to be replaced by a portion of the housing described above. Preliminary staffing plans for the present lodge facility and the proposed lodge as expanded are attached as Exhibit E. These plans are subject to further review by the owners and may be revised in the subsequent submission as a result of such discussions. 7 LAND USE APPLICATION FORM EXHIBIT A Project Name Ldre ,/ Project Location ` ®/ °� °�` �` ' " 1e/ j 1,6/` / ‹9/ c��fGJ�iG�7 a � v f�,rr�v�i 7////e_-/Wdce.- Indicate street address, lot&block number, legal description where appropriate) /z2,/i Present Zoning Lot Size SG /9Z APPLICANT IFS ,7 S; Phone# 9ZS-708/ Address L5e9/ REPRESENTATIVE � ..5'-ep ,76Vi ‹2/--(///Gp/&G Phone# 9 -1 8a�o Address /2(// /0iicc/ � y�c /q�C� �p g/al Type of Application(please check all that apply): • fEr Conditional Use L o/ ) ❑ Conceptual PUD ❑ Conceptual Historic Devt. ❑ Condominiumization O Final PUD(&PUD Amendment) ❑ Final Historic Development ❑ Design Review Appeal ❑ Conceptual SPA. ❑ Minor Historic Devt. • GMQS Allotment ❑ Final SPA(& SPA Amendment) ❑ Historic Demolition GMQS Exemption( 1 7)f) Special Review(74/ s) 0 Historic Designation ❑ Lot Line Adjustment ❑ Subdivision ❑ Text/Map Amendment [] Lot Split ❑ Temporary Use El Other: ❑ ESA - 8040 Greenline, Stream ,l Small Lodge Conversion/ Margin, Hallam Lake Bluff, Expansion Mountain View Plane Description of Existing Uses(number and type of existing structures; approximate square feet;number of bedrooms; any previous approvals gra,nted to the property): h /-'u/0 f a/ cfvr-- 1e7Z her/fir7r 0‘-10 G-57`ede.74 . Description of Development Application: �Gts/6yi D tb/odre UI /77/37 g/�67a ,f.S"' > e, . .Due/ c e o G e J' / 42 te-S7/721-e-e/ 1162asiii Have you attached the following? • Response to Attachment 2, Minimum Submission Contents y� • Response to Attachment 3, Specific Submission Contents • Response to Attachment 4, Review Standards for Your Application �eS • ✓'°` i qP t aiE B Hotels, LLC EXHIBIT B October 30, 1996 Mr. Stan Clauson Director of Community Development, City of Aspen 130 S. Galena Street Aspen, CO 81611 Dear Mr. Clauson: I am writing to you on behalf of J & B Hotels, LLC, current owner of the Crestahaus Lodge located at 1301 East Cooper Avenue, Aspen. My letter is confirm that J & B Hotels, LLC has authorized Joseph Wells Land Planning, Inc. to file on our behalf the attached application for a lottery allocation to allow the owner to proceed with a conditional use request for a ten-unit expansion of the lodge. During the processing of this request, please contact Joe Wells at 925-8080 if you have any questions or need additional information. Sincerely yours, AblVIZAIIIVI Jeffr- t: d Manager 1301 E. Cooper Ave., Aspen, Colorado • (970)925-7081 FAX (970)925-1610 ALTA OWNER'S POLICY- 10-17-92 EXHIBIT C POLICY OF TITLE INSURANCE ISSUED BY STEWART TITLE GUARANTY COMPANY SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, STEWART TITLE GUARANTY COMPANY, a Texas corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. IN WITNESS WHEREOF, Stewart Title Guaranty Company has caused this policy to he si_ned and sealed by its duly authorized officers as of the Date of Policy shown in Schedule A. IP STEWART TITLE A GUARANTY COMPANY _�■ t,StE a;+ / mar q044.,, c; *.`99y�+, /� 1 `� • • Chairman of th 3f��eR*��r,2" President 19oa ;o .' N• Countersigned: *., #. ; _ rfxas • • Authot`-izd Countersignature (;} STEWART TITLE OF ASPEN,INC. J Agent ID#06011A J EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage,costs, attorneys' fees or expenses which arise by reason of: 1. (a)Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances,or regulations) restricting, regulating, prohibiting or relating to (i)the occupancy,use, or enjoyment of the land; (ii)the character,dimensions or location of any improvement now or hereafter erected on the land; (iii)a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or(iv)environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect,lien or encumbrance resulting , from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b)Any governmental police power not excluded by (a)above,except to the extent that a notice of the exercise thereof or a notice of a defect,lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances,adverse claims or other matters: (a)created, suffered,assumed or agreed to by the insured claimant; (b)not known to the Company, not recorded in the public records at Date of Policy,but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d)attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 4. Any claim, which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency,or similar creditors'rights laws; that is based on: (a)the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer;or (b)the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (i)to timely record the instrument of transfer;or(ii)of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. Serial No. 0-9701-4795 CONDITIONS AND STIPULATIONS • 1. DEFINITION OF TERMS. The following terms when used in this policy mean: (a) "insured": the insured named in Schedule A, and, subject to any rights or defenses the Company would have had against the named insured, those who succeed to the interest of the named insured by operation of law as distinguished from purchase including,but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate or fiduciary successors. (b) "insured claimant": an insured claiming loss or damage. (c) "knowledge" or "known": actual knowledge, not constructive knowledge or notice which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land. (d) "land": the land described or referred to in Schedule A, and improvements affixed thereto which by law constitute real property. The term "land" does not include any property beyond the lines of the area described or referred to in Schedule A, nor any right,title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (e) "mortgage": mortgage, deed of trust, trust deed,or other security instrument. (f) "public records": records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. With respect to Section 1(a) (iv)of the Exclusions From Coverage, "public records" shall also include environmental protection liens filed in the records of the clerk of the United States district court for the district in which the land is located. (g) "unmarketability of the title": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have liability by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest. This policy shall not continue in force in favor of any purchaser from the insured of either(i)an estate or interest in the land, or(ii)an indebtedness secured by a purchase money mortgage given to the insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The insured shall notify the Company promptly in writing(i) in case of any litigation as set forth in Section 4(a) below, (ii)in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or interest,as insured,and which might cause loss or damage for which the Company may be liable by virtue of this policy,or(iii) if title to the estate or interest, as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company,then as to the insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO COOPERATE. (a)Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations,the Company,at its own cost and without unreasonable delay, shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the title or interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice(subject to the right of the insured to object for reasonable cause)to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action which allege matters not insured against by this policy. (b)The Company shall have the right, at its own cost,to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (c)Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceed- ing, the insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of the insured for this purpose. Whenever requested by the Company, the insured, at the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence,obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest as insured. If the Company is prejudiced by the failure of the insured to furnish the required cooperation, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any Litigation, with regard to the matter or matters requiring such cooperation. ALTA OWNER'S POLICY SCHEDULE A Order Number: 00022907 Policy No.: 0-9701-4795 Date of Policy: June 05, 1996 at 4:10 P.M. Amount of Insurance: $ 1. Name of Insured: J & B HOTELS, L.L.C., A LIMITED LIABILITY COMPANY 2. The estate or interest in the land which is covered by this policy is: FEE SIMPLE 3. file to the estate or interest in the land is vested in: J & B HOTELS, L.L.C., A LIMITED LIABILITY COMPANY 4. The land referred to in this policy is described as follows: See Attached Legal Description SCHEDULE A Order Number: 00022907 LEGAL DESCRIPTION A parcel of land being part of the Riverside Addition to the City and Townsite of Aspen, Colorado, said parcel is more fully described as follows: Beginning at a point being a plastic cap on a No. 5 rebar stamped L. S. 2376 whence corner 8 of the Riverside Placer U.S.M.S. No. 3905 A.M. being a brass cap dated 1954 bears North 85°08' West 544.05 feet, thence North 15°41 ' West 92.08 feet; thence North 14°06'59" West 122.02 feet; thence North 13°13 '32" East 40.54 feet; thence North 78°22'05" East 33.31 feet; thence North 37°34 '04" East 56.45 feet thence North 68°24 '15" East 27.55 feet; thence South 50°37' East 77.76 feet; thence South 34°21 ' East 150.08 feet; thence 93.50 feet along a curve to the right having the radius 760.00 feet (the chord of which bears South 24°03' East 93.00 feet); thence South 77°45'50" West 235.32 feet to the point of beginning. COUNTY OF PITKIN, STATE OF COLORADO • ALTA OWNER'S POLICY SCHEDULE B Order Number: 00022907 Policy No.:0-9701-4795 This policy does not insure against loss or damage (and the Company will not pay costs, attorneys'fees or expenses) which arise by reason of: 1. Rights or claims of parties in possession, not shown by the public records. 2. Easements, or claims of easements, not shown by the public records. 3. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, and any facts which a correct survey and inspection of the premises would disclose and which are not shown by the public records. 4. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. 5. Unpatented mining claims; reservations or exceptions in patents, or an act authorizing the issuance thereof; water rights claims or title to water. 6. Taxes and Assessments for the year 1996, not yet due and payable, and subsequent years and any special assessments not yet certified on the tax rolls of Pitkin County. 7. Any vein or lode of quartz or other rock in place bearing gold, silver, cinnabar, lead, tin, copper or other valuable deposit claimed or known to exist on March 23, 1885, and right of a proprietor of a vein or lode to extract and remove his ore therefrom, should the same be found to penetrate or intersect the premises, as reserved by Patent recorded June 17, 1949 in Book 175 at Page 246. 8. Terms, conditions obligations and restrictions as set forth in Occupancy and Rental Deed Restrictions and Agreement recorded December 16, 1987 in Book 553 at Page 206 as Reception No. 295853. 9. Terms, conditions, obligations and restrictions as set forth in instruments entitled " occupancy Deed Restriction and Agreement/ Affordable Dwelling Unit. . . " recorded August 3, 1992 in Book 685 at Page 208 as Reception No. 347308, and in Book 685 at Page 211 as Reception No. 347309, and in Book 685 at Page 216 as Reception No. 347310. 10. A Deed of Trust dated June 1, 1996, executed by J & B Hotels, LLC, to the Public Trustee of Pitkin County, to secure an indebtedness of $2,800,000.00, in favor of Active Mortgage Corp. , a California corporation, recorded June 5, 1996 as Reception No. 393376. ,NDITIONS AND STIPULATIONS Continued 5.PROOF OF LOSS OR DAMAGE. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company,a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in,or lien or encumbrance on the title,or other matter insured against by this policy which constitutes the basis of loss or damage and shall state,to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage,the Company's obligations to the insured under the policy shall terminate,including any liability or obligation to defend,prosecute,or continue any litigation,with regard to the matter or matters requiring such proof of loss or damage. In addition,the insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying,at such reasonable times and places as may be designated by any authorized representative of the Company,all records. books,ledgers,checks,correspondence and memoranda,whether bearing a date before or after Date of Policy,which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company,the insured claimant shall grant its permission,in writing, for any authorized representative of the Company to examine,inspect and copy all records,books,ledgers,checks,correspondence and memoranda in the custody or control of a third party,which reasonably pertain to the loss or damage. All information designated as confidential by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless,in the reasonable judgment of the Company,it is necessary in the administration of the claim. Failure of the insured claimant to submit for examination under oath. produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph shall terminate any liability of the Company under this policy as to that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS;TERMINATION OF LIABILITY. In case of a claim under this policy,the Company shall have the following additional options: (a)To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the amount of insurance under this policy together with any costs, attorneys'fees and expenses incurred by the insured claimant,which were authorized by the Company,up to the time of payment or tender of payment and which the company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations to the insured under this policy,other than to make the payment required,shall terminate,including any liability or obligation to defend,prosecute,or continue any litigation, and the policy shall be surrendered to the Company for cancellation. (b)To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. (i)to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy,together with any costs. attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay;or (ii)to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy,together with any costs,attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs(b)(i)or(ii),the Company's obligations to the insured under this policy for the claimed loss or damage,other than the payments required to be made,shall terminate, including any liability or obligation to defend,prosecute or continue any litigation. 7.DETERMIINATION,EXTENT OF LIABILITY AND COINSURANCE. This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a)The liability of the Company under this policy shall not exceed the least of: (i)the Amount of Insurance stated in Schedule A;or, (ii)the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect,lien or encum- brance insured against by this policy. (b)In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate or interest or the full consideration paid for the land,whichever is less,or if subsequent to the Date of Policy an improvement is erected on the land which increases the value of the insured estate or interest by at least 20 percent over the Amount of Insurance stated in Schedule A.then this Policy is subject to the following: (i)where no subsequent improvement has been made,as to any partial loss,the Company shall only pay the loss pro rata in the proportion that the amount of insurance at Date of Policy bears to the total value of the insured estate or interest at Date of Policy;or (ii)where a subsequent improvement has been made,as to any partial loss,the Company shall only pay the loss pro rata in the proportion that 120 percent of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and the amount expended for the improvement. The provisions of this paragraph shall not apply to costs,attorneys' fees and expenses for which the Company is liable under this policy,and shall only apply to that portion of any loss which exceeds,in the aggregate, 10 percent of the Amount of Insurance stated in Schedule A. (c)The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8.APPORTIONMENT. If the land described in Schedule A consists of two or more parcels which are not used as a single site,and a loss is established affecting one or more of the parcels but not all,the loss shall be computed and settled on a pro rata basis as if the amount of insurance under this policy was divided pro rata as to the value on Date of Policy of each separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy, unless a liability or value has otherwise been agreed upon as to each parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement attached to this policy. (continued and concluded on last page of this policy) (ALTA Owner's Policy) 9.LIMITATION OF LIABILITY. (a)If the Company establishes the title, or removes the alleged defect,lien or encumbrance, or cures the lack of a right of access to or from the land,or cures the claim of unmarketability of title,all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b)In the event of any litigation,including litigation by the Company or with the Company's consent,the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction,and disposition of all appeals therefrom,adverse to the title as insured. (c)The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. 10. REDUCTION OF INSURANCE;REDUCTION OR TERMINATION OF LIABILITY. All payments under this policy, except payments made for costs,attorneys' fees and expenses,shall reduce the amount of the insurance pro tanto. 11. LIABILITY NONCUMULATIVE. It is exprssly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed,assumed,or taken subject,or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A,and the amount so paid shall be deemed a payment under this policy to the insured owner. 12. PAYMENT OF LOSS. (a)No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed,in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b)When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations,the loss or damage shall be payable within 30 days thereafter. 13. SUBROGATION UPON PAYMENT OR SETTLEMENT. (a)The Company's Right of Subrogation. Whenever the Company shall have settled and paid a claim under this policy,all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company,the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue,compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant,the Company shall be subrogated to these rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss. If loss should result from any act of the insured claimant,as stated above, that act shall not void this policy,but the Company,in that event,shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any,lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (b)The Company's Rights Against Non-insured Obligors. The Company's right of subrogation against non-insured obligors shall exist and shall include,without limitation,the rights of the insured to indemnities,guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. 14. ARBITRATION Unless prohibited by applicable law, either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to,any controversy or claim between the Company and the insured arising out of or relating to this policy,any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. All arbitrable matters when the Amount of Insurance is$1,000,000 or less shall be arbitrated at the option of either the Company or the insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys'fees only if the laws of the state in which the land is located permit a court to award attorneys'fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 15. LIABILITY LIMITED TO THIS POLICY;POLICY ENTIRE CONTRACT. (a)This policy together with all endorsements, if any,attached hereto by the Company is the entire policy and contract between the insured and the Company. In interpreting any provision of this policy,this policy shall be construed as a whole. (b)Any claim of loss or damage, whether or not based on negligence,and which arises out of the status of the title to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President,a Vice President,the Secretary, an Assistant Secretary,or validating officer or authorized signatory of the Company. 16. SEVERABILITY. In the event any provision of the policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect. 17. NOTICES, WHERE SENT. All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company at P.O. Box 2029, Houston,Texas 77252-2029. 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