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HomeMy WebLinkAboutResponse to RFP - June 18, 2007SOLARIS PROPERTY OWNER, LLC Attn: Reed Weily 2211 North Frontage Road, Suite A Vail, Colorado 81657 June 18, 2007 BY HAND DELIVERY AND E -MAIL Stanley Zemler Vail Reinvestment Authority 75 Frontage Road Vail, Colorado 81657 Re: Request for Proposals ( "RFP ") with a Required Response Date of June 18, 2007, issued by the Vail Reinvestment Authority (the "Authority ") for Purchase of the "Crossroads Property" Dear Stan: This correspondence constitutes the required transmittal letter for and submission of a proposal (this "RFP Proposal ") by Solaris Property Owner, LLC ( "Solaris "), as a "Respondent" pursuant to the RFP, to acquire and redevelop the Crossroads Property for the "Project" as defined in the RFP (and sometimes referred to herein as the "Crossroads Project "). Solaris and certain affiliated or related parties, namely Crossroads East One, LLC; Crossroads West One, LLC; Crossroads 2E, LLC; Knobel Children's Investment Trust; and Spraddle Creek, LLC (collectively, the "Solaris Affiliates "), were collectively the owners of the Crossroads Property when it was acquired by the Authority in condemnation proceedings (District Court, Eagle County, Colorado, Case Number 2007CV143, Division 2). Solaris plans to develop the Project in accordance with the governing development approvals that Solaris has obtained from the Town of Vail, including Special Development District No. 39 and Town of Vail Ordinance No. 5, Series of 2006. This RFP Proposal addresses the "Qualification Conditions" in the RFP and Solaris' satisfaction thereof. First Oualification Condition (first bullet point in paragraph 3 of the RFP): "The Respondent (by itself or together with its affiliates) must have first -class experience and expertise in developing and operating premier hotel/lodging accommodations and real estate developments in the State of Colorado, and preferably in the Vail Valley." The Respondent's property manager, Gemini Resorts Management, LLC ( "Gemini "), has over thirty years of experience in developing and operating premier hotel /lodging accommodations in Vail, Colorado. Gemini currently manages the Vail Mountain Lodge and Spa and the Lodge Tower at the Lodge at Vail. Gemini also managed the development, Stanley Zemler June 18, 2007 Page 2 construction, marketing and sale of "The Residences at the Vail Mountain Lodge and Spa," a fractional residence club located in Vail Village. Further, through its affiliates, the Respondent has designed, built, marketed and sold over $25 million in private residences in the Vail Valley. Solaris also contends that its extensive, singular experience with the Crossroads Project to date gives it a unique advantage for proceeding with and prosecuting the Crossroads Project. To date, Solaris and Solaris Affiliates have expended over $8 million in architectural, engineering, legal and other consulting fees for the Crossroads Project. No other developer can pretend to have anywhere near the same working knowledge and understanding of the Crossroads Project as Solaris. Second Qualification Condition (second bullet point in paragraph 3 of the RFP): "The Respondent and/or its affiliates maintain significant business ties in the Town of Vail, including an active ongoing business including real property ownership, development and/or management, and owns other development projects or sites within the Town." The Respondent's property management affiliates, including, without limitation, Vail PBK, LLC, own and manage over 30 private residences valued at over $15 million in the Town of Vail. These properties generate over $700,000 in annual revenue. In addition, the Respondent's affiliates own a number of redevelopment sites in the Town of Vail. Third Qualification Condition (third bullet point in paragraph 3 of the RFP): Not Applicable. Under the RFP, Solaris, as a Respondent, will receive full credit against the required "Purchase Price" (as defined in the RFP) for the Crossroads Property, to be not less than $160,000,000. If the Authority selects another party as the successful Respondent to the RFP, then the Purchase Price paid by that successful Respondent must be immediately paid to Solaris. The Solaris Affiliates acknowledge and confirm, by their execution of this RFP Proposal, that they have sold, assigned and conveyed to Solaris all of their right, title and interest in and to the Purchase Price credit, any Purchase Price paid by a third -party Respondent, and any other proceeds or economic benefits derived or to be derived from the Authority's condemnation of the Crossroads Property. As required by the terms of the RFP, Solaris is enclosing 15 copies of this proposal by hand delivery. Solaris looks forward to the completion of the RFP process. [Signature block of Solaris Property Owner, LLC, follows on next page.] c Stanley Zemler June 18, 2007 Page 3 Very truly yours, SOLARIS PROPERTY OWNER, LLC By: Name: eed ei ry Title: Authorized Agent [Signature blocks of Solaris Affiliates follow on next page.] c Stanley Zemler June 18, 2007 Page 4 The Solaris Affiliates join in this response solely for purposes of confirming the sale, assignment and conveyance to Solaris of all condemnation interests as set forth in this RFP Proposal. CROSSROADS EAST ONE, LLC B N* . K nobel Title: Authorized Agent CROSSROADS 2E, LLC N eter B. Knobel Title: Authorized Agent KNOBEL CHILDREN'S INVESTMENT 1996 B kPeter NKnobel Title: Trustee SPRADDLE CREEK, LLC m ter B. Knobel Title: Authorized Agent