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HomeMy WebLinkAbout2019-03-12 VLHA Meeting Agenda Vail Local Housing Authority Meeting Results February 26, 2019 3:00 PM Housing Department -West Building, Large Conference Room 75 S. Frontage Road -Vail, Colorado, 81657 Members Present:Members Absent: Steve LindstromMary McDougall James WilkinsMolly Morales Francisco Meza 1.Call to Order 1.1. Lindstrom called the meeting to order at 3:30PM. Members present Lindstrom, Meza, Wilkins. Mary McDougalland Molly Morales absent. Staff present:Lynne Campbell, Housing Coordinator and George Ruther, Housing Director (via conference call). PublicPresent: Jenya Berino Bret Burton 2.Citizen Participation 2.1.Citizen Participation Ms. Berino introduced herself stating is grew up in Vail and has moved back to work as alocal real estate attorney. Sheexpressed her interest to live in Vail. Ms. Berino provided the Authority with details regarding her purchase and desire to place a deed-restriction on this property. Lindstrom thanked Ms. Berino for coming to the meeting and explain how the process is reviewed in executive session as it is a negotiation. Ruther asked if there is a finance contingencyon her purchase. Berino said the sale is contingent upon receiving Vail InDEED funds with the contract deadline ofMarch 22, 2019with closing in April. Citizen participation continued as Bret Burton arrived 3:55PM. He is a Vail InDeed applicant arrived asking if the Board needed anything else from him. He is a local investor who owns st several long term rental properties. Currently he is scheduled to close April 1. He provided additional research regarding the property and explained how the real estate transaction is occurring. Burton was requesting additional funding versus what was offered by the Board at the February 12 the meeting. 3.Approval of Minutes 3.1.Approval of February 12, 2019 Meeting Results MOTION: MezaSECOND:WilkinsVOTE:3-0to approve 4.Main Agenda 4.1.Resolution No. 6, Series of 2019, A Resolution Approving a Deed RestrictionPurchase Agreement. Presenter: Lynne Campbell, Housing Coordinator MOTION: MezaSECOND:WilkinsVOTE:3-0to approve 4.2.Resolution No. 7, Series of 2019, A Resolution Approving the Replacement of a Type II Employee Housing Unit RestrictiveCovenant with a Town of Vail Deed Restriction. Presenter: Lynne Campbell, Housing Coordinator MOTION: MezaSECOND:WilkinsVOTE:3-0to approve 4.3.Discussion of Long Term Funding Source Options. Presenter: David Cunningham, Summit Information Services and David Flaherty, Magellan Strategies David Flaherty with Magellan Strategies was in attendance. He received the uploaded housing documents and copy of finance sheet showing options. Flahertywill compose a survey for the public. He would like to have financial facts at the ready for the Board conversations with 2-3 super voters they know. He says voters want to know how the change will affect them personally. His hope is for the Board to alleviate the unknown of a tax increase. Educate the respondents. Use language the general public understands. The Board asked how theyapproach the Vail educated voters.How does the Board get value information from them? Flaherty will suggest some thoughts how to address super voters. Hewill provide a draft by Friday, March 1. 5.Executive Session 5.1.Executive Session per C.R.S. §24-6-402(4)(a)(e) -to discuss the purchase, acquisition, lease, transfer, or sale of property interests and to determine positions, develop a strategy and instruct negotiators, regarding: submitted Vail InDEED applications and program details. Presenter: Lynne Campbell, Housing Coordinator 5.2Wilkins motioned to exit the regular meeting and enter executive session per C.R.S. §24-6-402(4)(a)(e) -to discuss the purchase, acquisition, lease, transfer, or sale of property interests and to determine positions, develop a strategy and instruct negotiators, regarding: submitted Vail InDEED applications and program details. MOTION: WilkinsSECOND: MezaVOTE: 3-0to approve 5.1. Any Action as a Result of Executive Session. Wilkins recommend staff move forward with Vail In Deed applicationsas reviewed in executive session. 6.Adjournment 6.1.Adjournment 5:00PM MOTION: WilkinsSECOND: MezaVOTE: 3-0to approve 7.Future Agenda Items Housing Data East Vail ParcelUpdate West Vail Master Plan Discussion Housing Sites Civic Area Plan 8.Next Meeting Date 8.1.Next Meeting Date March 12, 2019 Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail websitewww.vailgov.com. All housing authority meetings are open to the public. Times and order of agenda are approximate, subject to change, and cannot be relied upon to determine at what time the Vail Local Housing Authority will discuss an item. Please call (970) 479-2150 for additional information. Please call 711 for sign language interpretation 48 hours prior to meeting time. Housing Department March 19, 2019 Mayor and Vail Town Council Town of Vail 75 South Frontage Road West Vail, CO. 81657 Re: Vail Local Housing Authority Support for Use of Vail InDEED Deed Acquisition Program Funds Dear Mayor Chapin and the members of the Vail Town Council, The availability of housing for year round Vail residents remains the #1 most critical issue facing the long term success and viability of the Vail community. One needs to not look too deeply to see first hand the negative impacts created when homes for Vail residents are scarce or otherwise non-existent. To that end, the Vail Town Council adopted the Vail Housing 2027 Strategic Plan, in part, to maintain and sustain community within Vail. The purpose of this letter is to express the unanimous support of the Vail Local Housing Authority for the expenditure of up to $1M of Vail INDEED Acquisition Program Funds in 2019 for the acquisition of up to 45 deed-restrictions at the proposed East Vail Parcel development. Additional expenditures would be supported in future years subject to annual appropriations of the Vail Town Council. The Vail InDEED Deed- Restriction Acquisition Program has proven to be overwhelming successfully in helping to achieve Vail’s housing goal. The Vail InDEED Program, and its bold, innovative and non- regulatory approach to addressing the housing need in Vail, is unprecedented. There is no other program in place across the mountain resort communities that produces the results of protecting and preserving existing homes, and makes home ownership a reality for so many, in such a cost effective manner, as the Vail InDEED Program. We remain hopeful the Vail InDEED Program, and its many successes, is not allowed to diminish by the lack of adequate funding in future years. Again, we wish to express the unanimous support of the Vail Local Housing Authority for the expenditure of up to $1M of Vail INDEED Acquisition Program Funds in 2019 for the acquisition of up to 45 deed-restrictions at the proposed East Vail Parcel development. Regards, Steve Lindstrom Mary McDougall Molly Morales Francisco “Paco” Meza James Wilkins Vail Local Housing Authority RESOLUTION NO. 8 Series of 2019 RESOLUTION APPROVING THE PURCHASE OF A DEED RESTRICTION INTEREST IN PROPERTY (TYPE III DEED RESTRICTION) IN THE TOWN OF VAIL LEGALLY DESCRIBED ASCONDOMINIUM UNIT 4, LION’S MANE PHASE II, CONDOMINIUM UNITS, EAGLE COUNTY, COLORADO WITH A PHYSICAL ADDRESS OF 1063 VAIL VIEW DRIVE UNIT 4, VAIL COLORADO; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Vail Local Housing Authority (the “Authority”), in the Town of Vail, County of Eagleand State of Colorado is dulyorganized and existing under the laws of the State of Colorado; and WHEREAS, the members of the Authority have been duly appointed and qualified; and WHEREAS, the Authority considers it in the interest of the public health, safety and welfare to purchase a Type III Deed Restriction (the “Deed Restriction”) on the property legally described as Condominium Unit 4, Lion’s Mane Phase II Condominium Units, Town of Vail, Eagle County, Coloradowith a physical address of 1063 Vail View Drive Unit 4, Vail Colorado (the “Property”); and NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: 1.The purchase ofthe Deed Restrictionon the Property is hereby approved by the Authorityat themaximum purchase price of $60,000. 2.The Chairman of the Vail Local Housing Authorityis hereby authorized to execute, on behalf of the Town, an agreement to purchase the Deed Restriction and to take whatever steps are necessary to complete the purchase of the Deed Restrictionon the Property. 3.This resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Vail Local Housing Authorityof the Town of Vail held this12dayofMarch, 2019. Steve Lindstrom, Chairman Vail Local HousingAuthority ATTEST: Lynne Campbell, Secretary Vail Local Housing Authority ResolutionNo. 8,Series of 2019 RESOLUTION NO. 9 Series of 2019 RESOLUTION APPROVING THE PURCHASE OF A DEED RESTRICTION INTEREST IN PROPERTY (TYPE III DEED RESTRICTION) IN THE TOWN OF VAIL LEGALLY DESCRIBED ASVAIL DASSCHONEFILING2, BLOCKG, LOT3B, EAGLE COUNTY, COLORADO WITH A PHYSICAL ADDRESS OF 2458 GARMISCH DRIVE UNIT B, VAIL COLORADO; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Vail Local Housing Authority (the “Authority”), in the Town of Vail, County of Eagleand State of Colorado is dulyorganized and existing under the laws of the State of Colorado; and WHEREAS, the members of the Authority have been duly appointed and qualified; and WHEREAS, the Authority considers it in the interest of the public health, safety and welfare to purchase a Type III Deed Restriction (the “Deed Restriction”) on the property legally described as Vail Das Schone Filing 2, Block G, Lot 3B,Town of Vail, Eagle County, Colorado with a physical address of 2458 Garmisch Drive Unit B as depicted on Exhibit A,Vail Colorado (the “Property”); and NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: 1.The purchase ofthe Deed Restrictionon the Property is hereby approved by the Authorityat themaximum purchase price of $122,864. 2.The Chairman of the Vail Local Housing Authorityis hereby authorized to execute, on behalf of the Town, an agreement to purchase the Deed Restriction and to take whatever steps are necessary to complete the purchase of the Deed Restrictionon the Property. 3.This resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Vail Local Housing Authorityof the Town of Vail held this12dayofMarch, 2019. Steve Lindstrom, Chairman Vail Local HousingAuthority ATTEST: Lynne Campbell, Secretary Vail Local Housing Authority ResolutionNo. 9,Series of 2019 DEED RESTRICTIONAGREEMENT THIS DEED RESTRICTIONAGREEMENT(the "Agreement")is entered into this ____ day of_______________, 2019(the "Effective Date") by and between the Town of Vail, Colorado, a Colorado home rule municipality with an address of 75 South Frontage Road, Vail, Colorado 81657 (the "Town"), and Bret Burton, an individual with an address ofP.O.Box 8623,Vail, Colorado 81657 ("Owner") (each a "Party" and collectively the "Parties"). WHEREAS, in exchange for compensationas set forth in a Deed Restriction Purchase Agreement, Owner has agreedto place certain restrictions on the use of the Property for the benefit of the Town by requiring occupancy of the Property by at least one qualified resident, as defined below. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is mutually acknowledged, the Parties agree as follows: 1.Property. The following real property is hereby burdened with the covenantsand restrictions specified in this Agreement: 2458 Garmisch Drive,Unit B, Vail, Colorado 81657, and legally described asVail Das Schone Filing 2, Block G, Lot 3B (the "Property"). Theportion of the Property governed by this Agreement shall be the residential dwelling unitdepicted on Exhibit A, attached hereto and incorporated by this reference, consisting ofapproximately 1,512 square feet (the "Unit"). The Parties acknowledge that the otherresidential dwelling unit on the Property is subject to a separate Deed RestrictionAgreement. 2.Definitions.For purposes of this Agreement, the following terms shall have the following meanings: a.Personmeans a natural person,and excludes any type of entity. b.Principal Place of Residence means the home or place in which one's habitation is fixed and to which one has a present intention of returning after a departure or absence therefrom. To determinea person'sPrincipal Place of Residence, the criteria set forth in C.R.S. § 31-10-201(3)shall apply. c.Qualified Householdmeans one Qualified Resident or a group of persons that contains at least one Qualified Resident. A Qualified Household may have occupants that are not Qualified Residents as long as at least one occupant is a Qualified Resident. d.Qualified Residentmeans a person who works an average of 30 hours or more per week at a business in Eagle County, Colorado that holds a valid and current business license, or pays sales taxes, or is otherwise generally recognized as a legitimate business. For example, if a person worked 60 hours per week for one half of the year at such a business in Eagle County, Colorado, and worked elsewhere forthe 1 3/5/2019 S:\\HOUSING\\VAIL INDEED -DEED RESTRICTION PURCHASE PROGRAM\\APPLICATIONS\\BURTON_2458 GARMISCH DR B\\UPDATED DOCS\\DEED RESTRICTION UPPER-A022819.DOCX other half of the year, such person would constitute a Qualified Resident.To determine thata person is a Qualified Resident, the Qualification Guidelines set forth in Exhibit B, attached hereto and incorporated herein by this reference, shall apply. 3.Occupancy Restrictions. a.At least one Qualified Resident shall continuously occupy the Property as his or her principal place of residence. b.Owner may rent the Property as long as the Property is continuously occupied by a Qualified Household. c.A Qualified Resident may lease a room or rooms in the Property to one or more persons, provided that the Qualified Resident still occupies the Property as his or her principal place of residence. d.No business activity shall occur on or in thePropertyother than as permitted within the zonedistrict applicable to the Property. st 4.Annual Verification. No later than February 1of each year, beginning in the year following the first year of occupancy of the Property, Owner shall submit a written statement to the Town including the following information and stating that such information is true and correct to the best of Owner's knowledge and belief: a.Evidence to establish that the Property was occupied by a Qualified Householdduring all of the prior calendar year; b.If applicable, a copy of the lease form currently used for the Property; and c.If applicable, a list of tenants who occupied the Property in the prior calendar yearand the evidence submitted by eachtenant to establish that they were a Qualified Resident, as set forth in the Qualification Guidelines. 5.Consensual Lien; Right to Redeem. For the purpose of securing Owner’s performance under the Deed Restriction and creating in favor of the Town a right to redeem in accordance with Part 3 of Article 38 of Title 38, C.R.S., as amended, Owner hereby grants to Town a consensual lien on the Property. Such lien shall not have a lien amount. 6.Town's Option.Owner shall first notify the Town if Owner wishes to sell the Property. The Town shall have the first option to purchase the Property. 7.Breach. a.Itisa breach of this Agreementfor Ownerto violate any provision of this Agreement, or to default in payment or other obligations due to be performed under a promissory note secured by a first deed of trust encumbering the Property. Owner shall 2 3/5/2019 S:\\HOUSING\\VAIL INDEED -DEED RESTRICTION PURCHASE PROGRAM\\APPLICATIONS\\BURTON_2458 GARMISCH DR B\\UPDATED DOCS\\DEED RESTRICTION UPPER-A022819.DOCX notify the Town, in writing, of any notification received from anylender of past due payments or defaults in payments or other obligations within 5 days of receipt. b.If the Town has reasonable cause to believe Owneris violating this Agreement, the Town may inspect the Propertybetween the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, after providing Ownerwith 24 hours written notice. This Agreement shall constituteOwner's permission to enter the Property during such times upon such notice. 8.Remedies. a.The Town shall have any and all remedies provided by law and in equity for a violation of this Deed Restriction, including without limitation: (i) damages; (ii) specific performance; and (iii) injunctions, including without limitation an injunction requiring eviction of the occupant(s) and an injunction to prohibit the occupancy of the Property in violation of this Deed Restriction. All remedies shall be cumulative. b.The cost to the Town of any activity taken in response to any violation of this Deed Restriction, including reasonable attorney fees, shall be paid promptly by Owner. 9.Foreclosure. a.In the event of aforeclosure,acceptance of adeed-in-lieu of foreclosure, or assignment, this Agreementshall remain in full force and effect. b.Owner shallgive immediate notice to the Town: of any notice of foreclosureunder the first deed of trustor any other subordinate security interestin the Property; orwhenany payment on any indebtedness encumbering the Propertyis required toavoid foreclosure of the first deed of trustor other subordinate security interestin the Property. c.Within 60 days after receipt of any notice described herein, the Town may (but shall not be obligated to) proceed to make any payment required to avoid foreclosure.Upon making any such payment, the Town mayplace a lien on the Property in the amount paid to cure the default and avoid foreclosure, including all fees andcostsresulting from suchforeclosure. d.The Town shall have 30 days after issuance of the public trustee's deed or the acceptance of a deed in lieu of foreclosure by the holder in which to purchase by tendering to the holder, in cash or certified funds, an amount equal to the redemption price which would have been required of the borrower or any person who might be liable upon a deficiency on the last day of the statutory redemption period(s) and any additional reasonable costs incurred by the holder related to the foreclosure. 3 3/5/2019 S:\\HOUSING\\VAIL INDEED -DEED RESTRICTION PURCHASE PROGRAM\\APPLICATIONS\\BURTON_2458 GARMISCH DR B\\UPDATED DOCS\\DEED RESTRICTION UPPER-A022819.DOCX 10.Miscellaneous. a.Modification. This Agreement may only be modified by subsequent written agreement of the Parties. b.Integration. This Agreement and any attached exhibits constitute the entire agreement between Ownerand the Town, superseding all prior oral or written communications. c.Runs with the Land.The benefits and obligations of the Parties under this Agreement shall run with the land, and Owner's obligations hereunder shall be binding on any subsequent holder of an ownership interest in the Property. d.Severability. If any provision of this Agreement is determined to be void by a court of competent jurisdiction, such determination shall not affect any other provision hereof, and all of the other provisions shall remain in full force and effect. e.Governing Law and Venue. This Agreement shall be governed by the laws of the State of Colorado, and any legal action concerning the provisions hereof shall be brought in Eagle County, Colorado. f.Agreement Binding; Assignment. This Agreement, and the terms, covenants, and conditions herein contained, shall inure to the benefit of and be binding upon the heirs, personal representatives, successors, and assigns of the Parties. g.Third Parties. There are no intended third-party beneficiaries to this Agreement. h.No Joint Venture. Notwithstanding any provision hereof, the Town shall never be a joint venture in any private entity or activity which participates in this Agreement, and the Town shall never be liable or responsible for any debt or obligation of any participant in thisAgreement. i.Notice. Any notice under this Agreement shall be in writing, and shall be deemed sufficient when directly presented or sent pre-paid, first class United States Mail to the Party at the address set forth on the first page of this Agreement. j.Recording. This Agreement shall be recorded with the Eagle County Clerk and Recorder. k.Savings Clause. If any of the terms, covenants, conditions, restrictions, uses, limitations, obligations or options created by this Agreement are held to be unlawful or void for violation of: the rule against perpetuities or some analogous statutory provision; the rule restricting restraints on alienation; or any other statutory or common law rules imposing like or similar time limits, then such provision shall continue only for the period of the lives of the current duly elected and seated members of the Vail Town Council, their now living descendants, if any, and the survivor of them, plus 21 years. 4 3/5/2019 S:\\HOUSING\\VAIL INDEED -DEED RESTRICTION PURCHASE PROGRAM\\APPLICATIONS\\BURTON_2458 GARMISCH DR B\\UPDATED DOCS\\DEED RESTRICTION UPPER-A022819.DOCX l.Governmental Immunity. The Town and its officers, attorneys and employees, are relying on, and do not waive or intend to waive by any provision of this Agreement, the monetary limitations or any other rights, immunities or protections provided by the Colorado Governmental Immunity Act, C.R.S. § 24-10-101, et seq., as amended, or otherwise available to the Town and its officers, attorneys or employees. IN WITNESS WHEREOF, the Parties have executed thisAgreementas of the Effective Date. TOWN OF VAIL, COLORADO _______________________________ Dave Chapin, Mayor ATTEST: ______________________________ Tammy Nagel, Town Clerk OWNER ________________________________ STATE OF COLORADO) )ss. COUNTY OF EAGLE) The foregoing instrument was subscribed, sworn to and acknowledged before me this___ day of ______________, 2019, by Bret Burton. Witness my hand and official seal. Notary Public (S E A L) My commission expires: 5 3/5/2019 S:\\HOUSING\\VAIL INDEED -DEED RESTRICTION PURCHASE PROGRAM\\APPLICATIONS\\BURTON_2458 GARMISCH DR B\\UPDATED DOCS\\DEED RESTRICTION UPPER-A022819.DOCX EXHIBIT A DEPICTION OF UNIT 6 3/5/2019 S:\\HOUSING\\VAIL INDEED -DEED RESTRICTION PURCHASE PROGRAM\\APPLICATIONS\\BURTON_2458 GARMISCH DR B\\UPDATED DOCS\\DEED RESTRICTION UPPER-A022819.DOCX EXHIBIT B QUALIFICATION GUIDELINES 1.Purpose. The purpose of these Qualification Guidelines is to set forth the occupancy requirements for the Property pursuant to the Deed Restriction. 2.Definitions. All capitalized terms herein shall have the meanings set forth in the Deed Restriction. 3.Application. To become a Qualified Resident, a person must provide the following information: a.Verification (e.g., wage stubs, employer name, address, telephone number and other appropriate documentation) of the person's current employment with a business in Eagle County that holds a valid and current business license, or pays sales taxes, or is otherwise generally recognized as a legitimate business; b.Evidence that theapplicant has worked, or will work, an average of 30 hours per week or more per year for one or more of such businesses; c.A valid form of identification, such as a driver's license, state-issued identification, passport or military identification; and d.A signed statement certifying and acknowledgingthat all information submitted in such application is true to applicant's best knowledgeand authorizing verification ofall information submitted. 7 3/5/2019 S:\\HOUSING\\VAIL INDEED -DEED RESTRICTION PURCHASE PROGRAM\\APPLICATIONS\\BURTON_2458 GARMISCH DR B\\UPDATED DOCS\\DEED RESTRICTION UPPER-A022819.DOCX RESOLUTION NO. 10 Series of 2019 RESOLUTION APPROVING THE PURCHASE OF A DEED RESTRICTION INTEREST IN PROPERTY (TYPE III DEED RESTRICTION) IN THE TOWN OF VAIL LEGALLY DESCRIBED ASVAIL DAS SCHONE FILING 2, BLOCK G, LOT 3B, LION’S MANE PHASE II,CONDOMINIUM UNITS, EAGLE COUNTY, COLORADO WITH A PHYSICAL ADDRESS OF 2458 GARMISCH DRIVE UNIT B, VAIL COLORADO; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Vail Local Housing Authority (the “Authority”), in the Town of Vail, County of Eagleand State of Colorado is dulyorganized and existing under the laws of the State of Colorado; and WHEREAS, the members of the Authority have been duly appointed and qualified; and WHEREAS, the Authority considers it in the interest of the public health, safety and welfare to purchase a Type III Deed Restriction (the “Deed Restriction”) on the property legally described as Condominium Unit 4, Lion’s Mane Phase II Condominium Units, Town of Vail, Eagle County, Coloradowith a physical address of 2458 Garmisch Drive Unit Bas depicted on Exhibit A, Vail Colorado(the “Property”); and NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: 1.The purchase ofthe Deed Restrictionon the Property is hereby approved by the Authorityat themaximum purchase price of $62,316. 2.The Chairman of the Vail Local Housing Authorityis hereby authorized to execute, on behalf of the Town, an agreement to purchase the Deed Restriction and to take whatever steps are necessary to complete the purchase of the Deed Restrictionon the Property. 3.This resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Vail Local Housing Authorityof the Town of Vail held this12dayofMarch, 2019. Steve Lindstrom, Chairman Vail Local HousingAuthority ATTEST: Lynne Campbell, Secretary Vail Local Housing Authority ResolutionNo. 10,Series of 2019 DEED RESTRICTIONAGREEMENT THIS DEED RESTRICTIONAGREEMENT(the "Agreement")is entered into this ____ day of_______________, 2019(the "Effective Date") by and between the Town of Vail, Colorado, a Colorado home rule municipality with an address of 75 South Frontage Road, Vail, Colorado 81657 (the "Town"), and Bret Burton, an individual with an address ofP.O.Box 8623,Vail, Colorado 81657 ("Owner") (each a "Party" and collectively the "Parties"). WHEREAS, in exchange for compensationas set forth in a Deed Restriction Purchase Agreement, Owner has agreedto place certain restrictions on the use of the Property for the benefit of the Town by requiring occupancy of the Property by at least one qualified resident, as defined below. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is mutually acknowledged, the Parties agree as follows: 1.Property. The following real property is hereby burdened with the covenantsand restrictions specified in this Agreement: 2458 Garmisch Drive,Unit B, Vail, Colorado 81657, and legally described asVail Das Schone Filing 2, Block G, Lot 3B (the "Property"). Theportion of the Property governed by this Agreement shall be the residential dwelling unitdepicted on Exhibit A, attached hereto and incorporated by this reference, consisting ofapproximately 768square feet (the "Unit"). The Parties acknowledge that the otherresidential dwelling unit on the Property is subject to a separate Deed RestrictionAgreement. 2.Definitions.For purposes of this Agreement, the following terms shall have the following meanings: a.Personmeans a natural person,and excludes any type of entity. b.Principal Place of Residence means the home or place in which one's habitation is fixed and to which one has a present intention of returning after a departure or absence therefrom. To determinea person'sPrincipal Place of Residence, the criteria set forth in C.R.S. § 31-10-201(3)shall apply. c.Qualified Householdmeans one Qualified Resident or a group of persons that contains at least one Qualified Resident. A Qualified Household may have occupants that are not Qualified Residents as long as at least one occupant is a Qualified Resident. d.Qualified Residentmeans a person who works an average of 30 hours or more per week at a business in Eagle County, Colorado that holds a valid and current business license, or pays sales taxes, or is otherwise generally recognized as a legitimate business. For example, if a person worked 60 hours per week for one half of the year at such a business in Eagle County, Colorado, and worked elsewhere for the 1 3/5/2019 S:\\HOUSING\\VAIL INDEED -DEED RESTRICTION PURCHASE PROGRAM\\APPLICATIONS\\BURTON_2458 GARMISCH DR B\\UPDATED DOCS\\DEED RESTRICTION LOWER-A022819.DOCX other half of the year, such person would constitute a Qualified Resident.To determine thata person is a Qualified Resident, the Qualification Guidelines set forth in Exhibit B, attached hereto and incorporated herein by this reference, shall apply. 3.Occupancy Restrictions. a.At least one Qualified Resident shall continuously occupy the Property as his or her principalplace of residence. b.Owner may rent the Property as long as the Property is continuously occupied by a Qualified Household. c.A Qualified Resident may lease a room or rooms in the Property to one or more persons, provided that the Qualified Resident still occupies the Property as his or her principal place of residence. d.No business activity shall occur on or in thePropertyother than as permitted within the zonedistrict applicable to the Property. st 4.Annual Verification. No later than February 1of each year, beginning in the year following the first year of occupancy of the Property, Owner shall submit a written statement to the Town including the following information and stating that such information is true and correct to the best of Owner's knowledge and belief: a.Evidence to establish that the Property was occupied by a Qualified Householdduring all of the priorcalendar year; b.If applicable, a copy of the lease form currently used for the Property; and c.If applicable, a list of tenants who occupied the Property in the prior calendar yearand the evidence submitted by eachtenant to establish that they were a Qualified Resident, as set forth in the Qualification Guidelines. 5.Consensual Lien; Right to Redeem. For the purpose of securing Owner’s performance under the Deed Restriction and creating in favor of the Town a right to redeem in accordance with Part 3 of Article 38 of Title 38, C.R.S., as amended, Owner hereby grants to Town a consensual lien on the Property. Such lien shall not have a lien amount. 6.Town's Option.Owner shall first notify the Town if Owner wishes to sell the Property. The Town shall have the first option to purchase the Property. 7.Breach. a.Itisa breach of this Agreementfor Ownerto violate any provision of this Agreement, or to default in payment or other obligations due to be performed under a promissory note secured by a first deed of trust encumbering the Property. Owner shall 2 3/5/2019 S:\\HOUSING\\VAIL INDEED -DEED RESTRICTION PURCHASE PROGRAM\\APPLICATIONS\\BURTON_2458 GARMISCH DR B\\UPDATED DOCS\\DEED RESTRICTION LOWER-A022819.DOCX notify the Town, in writing, of any notification received from anylender of past due payments or defaults in payments or other obligations within 5 days of receipt. b.If the Town has reasonable cause to believe Owneris violating this Agreement, the Town may inspect the Propertybetween the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, after providing Ownerwith 24 hours written notice. This Agreement shall constituteOwner's permission to enter the Property during such times upon such notice. 8.Remedies. a.The Town shall have any and all remedies provided by law and in equity for a violation of this Deed Restriction, including without limitation: (i) damages; (ii) specific performance; and (iii) injunctions, including without limitation an injunction requiring eviction of the occupant(s) and an injunction to prohibit the occupancy of the Property in violation of this Deed Restriction. All remedies shall be cumulative. b.The cost to the Town of any activity taken in response to any violation of this Deed Restriction, including reasonable attorney fees, shall be paid promptly by Owner. 9.Foreclosure. a.In the event of aforeclosure,acceptance of adeed-in-lieu of foreclosure, or assignment, this Agreementshall remain in full force and effect. b.Owner shallgive immediate notice to the Town: of any notice of foreclosureunder the first deed of trustor any other subordinate security interestin the Property; orwhenany payment on any indebtedness encumbering the Propertyis required toavoid foreclosure of the first deed of trustor other subordinate security interestin the Property. c.Within 60 days after receipt of any notice described herein, the Town may (but shall not be obligated to) proceed to make any payment required to avoid foreclosure.Upon making any such payment, the Town mayplace a lien on the Property in the amount paid to cure the default and avoid foreclosure, including all fees andcostsresulting from suchforeclosure. d.The Town shall have 30 days after issuance of the public trustee's deed or the acceptance of a deed in lieu of foreclosure by the holder in which to purchase by tendering to the holder, in cash or certified funds, an amount equal to the redemption price which would have been required of the borrower or any person who might be liable upon a deficiency on the last day of the statutory redemption period(s) and any additional reasonable costs incurred by the holder related to the foreclosure. 3 3/5/2019 S:\\HOUSING\\VAIL INDEED -DEED RESTRICTION PURCHASE PROGRAM\\APPLICATIONS\\BURTON_2458 GARMISCH DR B\\UPDATED DOCS\\DEED RESTRICTION LOWER-A022819.DOCX 10.Miscellaneous. a.Modification. This Agreement may only be modified by subsequent written agreement of the Parties. b.Integration. This Agreement and any attached exhibits constitute the entire agreement between Ownerand the Town, superseding all prior oral or written communications. c.Runs with the Land.The benefits and obligations of the Parties under this Agreement shall run with the land, and Owner's obligations hereunder shall be binding on any subsequent holder of an ownership interest in the Property. d.Severability. If any provision of this Agreement is determined to be void by a court of competent jurisdiction, such determination shall not affect any other provision hereof, and all of the other provisions shall remain in full force and effect. e.Governing Law and Venue. This Agreement shall be governed by the laws of the State of Colorado, and any legal action concerning the provisions hereof shall be brought in Eagle County, Colorado. f.Agreement Binding; Assignment. This Agreement, and the terms, covenants, and conditions herein contained, shall inure to the benefit of and be binding upon the heirs, personal representatives, successors, and assigns of the Parties. g.Third Parties. There are no intended third-party beneficiaries to this Agreement. h.No Joint Venture. Notwithstanding any provision hereof, the Town shall never be a joint venture in any private entity or activity which participates in this Agreement, and the Town shall never be liable or responsible for any debt or obligation of any participant in thisAgreement. i.Notice. Any notice under this Agreement shall be in writing, and shall be deemed sufficient when directly presented or sent pre-paid, first class United States Mail to the Party at the address set forth on the first page of this Agreement. j.Recording. This Agreement shall be recorded with the Eagle County Clerk and Recorder. k.Savings Clause. If any of the terms, covenants, conditions, restrictions, uses, limitations, obligations or options created by this Agreement are held to be unlawful or void for violation of: the rule against perpetuities or some analogous statutory provision; the rule restricting restraints on alienation; or any other statutory or common law rules imposing like or similar time limits, then such provision shall continue only for the period of the lives of the current duly elected and seated members of the Vail Town Council, their now living descendants, if any, and the survivor of them, plus 21 years. 4 3/5/2019 S:\\HOUSING\\VAIL INDEED -DEED RESTRICTION PURCHASE PROGRAM\\APPLICATIONS\\BURTON_2458 GARMISCH DR B\\UPDATED DOCS\\DEED RESTRICTION LOWER-A022819.DOCX l.Governmental Immunity. The Town and its officers, attorneys and employees, are relying on, and do not waive or intend to waive by any provision of this Agreement, the monetary limitations or any other rights, immunities or protections provided by the Colorado Governmental Immunity Act, C.R.S. § 24-10-101, et seq., as amended, or otherwise available to the Town and its officers, attorneys or employees. IN WITNESS WHEREOF, the Parties have executed thisAgreementas of the Effective Date. TOWN OF VAIL, COLORADO _______________________________ Dave Chapin, Mayor ATTEST: ______________________________ Tammy Nagel, Town Clerk OWNER ________________________________ STATE OF COLORADO) )ss. COUNTY OF EAGLE) The foregoing instrument was subscribed, sworn to and acknowledged before me this___ day of ______________, 2019, by Bret Burton. Witness my hand and official seal. Notary Public (S E A L) My commission expires: 5 3/5/2019 S:\\HOUSING\\VAIL INDEED -DEED RESTRICTION PURCHASE PROGRAM\\APPLICATIONS\\BURTON_2458 GARMISCH DR B\\UPDATED DOCS\\DEED RESTRICTION LOWER-A022819.DOCX EXHIBIT A DEPICTION OF UNIT 6 3/5/2019 S:\\HOUSING\\VAIL INDEED -DEED RESTRICTION PURCHASE PROGRAM\\APPLICATIONS\\BURTON_2458 GARMISCH DR B\\UPDATED DOCS\\DEED RESTRICTION LOWER-A022819.DOCX EXHIBIT B QUALIFICATION GUIDELINES 1.Purpose. The purpose of these Qualification Guidelines is to set forth the occupancy requirements for the Property pursuant to the Deed Restriction. 2.Definitions. All capitalized terms herein shall have the meanings set forth in the Deed Restriction. 3.Application. To become a Qualified Resident, a person must provide the following information: a.Verification (e.g., wage stubs, employer name, address, telephone number and other appropriate documentation) of the person's current employment with a business in Eagle County that holds a valid and current business license, or pays sales taxes, or is otherwise generally recognized as a legitimate business; b.Evidence that theapplicant has worked, or will work, an average of 30 hours per week or more per year for one or more of such businesses; c.A valid form of identification, such as a driver's license, state-issued identification, passport or military identification; and d.A signed statement certifying and acknowledgingthat all information submitted in such application is true to applicant's best knowledgeand authorizing verification ofall information submitted. 7 3/5/2019 S:\\HOUSING\\VAIL INDEED -DEED RESTRICTION PURCHASE PROGRAM\\APPLICATIONS\\BURTON_2458 GARMISCH DR B\\UPDATED DOCS\\DEED RESTRICTION LOWER-A022819.DOCX