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HomeMy WebLinkAbout20140805 ltr to assessor.v2.Chooper.8.11.14August 5, 2014 VIA ELECTONIC MAIL Mark D. Chapin Eagle County Assessor’s Office P.O. Box 449 500 Broadway Eagle, CO 81631 RE: Timber Ridge Housing Project; Property Tax Exemption Dear Mark: As you know, this office serves as legal counsel to a potential developer of a portion of the Timber Ridge property. Thank you for your call this morning. I am writing to memorialize that conversation, and obtain your acknowledgement to a slight change to the structure of the Timber Ridge transaction, which we do not believe has an effect on the property tax exemption. In my April 21, 2014 letter to you, I attached the Agreement Regarding Lion’s Ridge Apartment Homes Project (“Agreement”), which has been agreed to and signed by the Developer, the Town of Vail, and the Vail Local Housing Authority (“Authority”). I again include the Agreement with this letter for your convenience. Although the Agreement does not mention nor require that ownership of all improvements constructed as part of the development revert to the Town of Vail, the text of my April 21 letter did mention this. The terms of the Ground Lease from the Town of Vail to the Developer have changed, however, and now include an option to purchase the Timber Ridge property in favor of the Developer. Therefore, it is possible that the improvements will not revert to Town of Vail ownership. Notwithstanding this, we believe that the structure of this transaction, based solely upon the fact that VLHA will own an interest in the development entity, will satisfyies the terms of C.R.S. § 29-4-227 concerning housing authority property-tax exemptions. your letter dated December 9, 2013, titled “Re: Timber Ridge Housing Project” as well as my April 21, 2014 letter to you. We would appreciate your execution of this letter below to acknowledge that fact and assure the developer, any lender and any investor in the development project that, assuming the VLHA maintains an ownership interest in the development entity (or any subsequent entity that might own the development) and the statutory exemption provisions remain unchanged by the legislature, the terms of the Agreement are satisfied, the portions of the development that are residentially occupied by persons of low income will be entitled to exemption from property taxes pursuant to CRS § 29-4-227. Please let us know if you have any questions or would like to discuss further. Thank you. Sincerely, / Gregory W. Perkins cc: Matt Mire, Vail Town Attorney Jen Wright Gary Gorman Bill Cummings ACKNOWLEDGED AND AGREED, this _____ day of August, 2014. Mark D. Chapin Eagle County Assessor