HomeMy WebLinkAbout202025530 Deed Restriction Agreement 1081 Vail View Drive Unit B212 Eagle County,CO 202025530
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DEED RESTRICTION AGREEMENT
Town of Vail Internal Housing Program
THIS DEED RESTRICTION AGREEMENT (the "Agreement") is entered into this
17th day of November , 2020 (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 Ben Treherne and Mallory Baker,
individuals with an address of 2000 Chamonix Lane, Apt. 2, Vail, Colorado 81657 "J
(collectively"Buyer") (each individually a "Party" and collectively the "Parties"). J
WHEREAS, the Town owns the real property described as Condominium Unit B-
212, The Homestake at Vail (A Condominium), Vail, Colorado, with an address of 1081
Vail View Drive, Vail, Colorado 81657 (the "Property"); and
WHEREAS, the Town is selling the Property to Buyer, and desires to restrict the
occupancy, use and resale of the Property, and Buyer wishes to agree to such
restrictions.
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 covenants and
restrictions specified in this Agreement: Condominium Unit B-212,The Homestake at Vail
(A Condominium), Vail, Colorado, with an address of 1081 Vail View Drive, Unit B-212,
Vail, Colorado 81657 (the "Property").
2. Definitions. For purposes of this Agreement, the following terms shall have the
following meanings:
a. Maximum Resale Price means the Purchase Price paid by the last Qualified
Buyer plus: an increase of 1.5% per annum of such Purchase Price (prorated at the rate
of 1/12 for each whole month) from the date of Owner's purchase of the Property to the
date of the Owner's execution of the listing contract, such percentage increase to not be
compounded annually; and the value of Permitted Capital Improvements; and minus the
Town's cost to repair any damage to the Property caused by Owner beyond normal wear
and tear.
b. Non-Qualified Owner means any person who acquires an ownership
interest in the Property who is not a Qualified Owner.
C. Owner means any person who acquires an ownership interest in the
Property.
d. Permitted Capital Improvements means those improvements to the
Property performed by the current Owner as described in the attached Exhibit A, which
shall qualify for inclusion within the calculation of Maximum Resale Price if the Owner
furnishes the Town with the following information, and only to the extent such
improvements were not paid for by the Town by separate agreement:
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i_ Original or duplicate receipts to verify the actual costs expended by the
Owner for the Permitted Capital Improvements;
ii. Affidavit verifying the receipts are valid and correct receipts tendered at the
time of purchase; and
iii. True and correct copies of any building permit or certificate of occupancy
required to be issued by the Town for the Permitted Capital Improvements.
e. 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. In determining what is a Principal Place of Residence, the Town
shall consider the criteria set forth in C.R.S. § 31-10-201(3), as amended.
f. Purchase Price means all consideration paid by a Qualified Buyer for the
Property but excludes: any proration amounts, taxes, costs and expenses of obtaining
financing; costs of furnishings or personal property; lenders' fees; title insurance fees;
closing cost; inspection fees; real estate purchase or sales commission(s); and any credit
granted to the Qualified Buyer for upgrades and improvements to the Property.
g. Qualified Buyer means the Town or a person who, upon purchase of the
Property, will be a Qualified Owner.
h. Qualified Owner means an Owner who is an individual who works an
average of 30 hours or more per week for the Town and earns at least 75%of their income
from their employment with the Town, as well as Owner who is an individual who: was a
Qualified Owner when the individual purchased the Property, but then retired while
owning the Property; was 60 years of age or older at the time of retirement; for the 10
years immediately prior to retirement, was an employee of the Town; and earned at least
75% of their income from their employment with the Town during such 10-year period.
i. Transfermeans any sale, conveyance,assignment or transfer, voluntary or
involuntary, of any interest in the Property, including without limitation a fee simple
interest, a joint tenancy interest, a life estate, a leasehold interest and an interest
evidenced by any contract by which possession of the Property is transferred and an
Owner retains title.
3. Occupancy Restrictions.
a. The Property shall be continuously occupied by at least one Qualified
Owner as their principal place of residence.
b. No business activity shall occur on or in the Property, other than as
permitted within the zone district applicable to the Property.
C. If a Qualified Owner ceases to occupy the Property as their principal place
of residence, the Qualified Owner shall immediately contact the Town to Transfer the
Property pursuant to Section 4 hereof. An Owner shall be deemed to have changed their
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principal place of residence by becoming a resident elsewhere or residing in the Property
for fewer than 9 months per calendar year.
d. If at any time a Qualified Owner also owns any interest alone or in
conjunction with others in any developed residential property or dwelling unit located in
Eagle County, Colorado, the Qualified Owner shall immediately list said other property or
unit for sale to sell the Qualified Owner's interest in such property at a sales price
comparable to like units or properties in the area in which the property or dwelling unit is
located. If said other property or unit(s) has not been sold by the Qualified Owner within
120 days of its listing,the Qualified Owner shall immediately contact the Town to Transfer
the Property pursuant to Section 4 hereof.
e. No later than February 18i of each year, the Owner shall submit one copy of
a sworn affidavit, on a form provided by the Town, verifying that the Property is occupied
in accordance with this Agreement.
f. Should a Qualified Owner become disabled and, because of such disability,
be unable to meet the requirements of a Qualified Owner under this Agreement, such
Owner shall notify the Town, in writing, of the nature of the disability. If the disability is
permanent, such Owner shall remain a Qualified Owner despite the disability. if the
disability is temporary and the Qualified Owner becomes able to return to work, to remain
a Qualified Owner, the Qualified Owner must return to work when the disability ceases.
Notwithstanding anything to the contrary in this Agreement, the Town will make all
reasonable accommodations necessary under the Americans with Disability Act.
4. Transfer.
a. The Owner shall notify the Town that the Owner wishes to Transfer the
Property, and the Town shall have the first option to purchase the Property.
b. The Property shall be transferred only to the Town or a Qualified Buyer,
andshall not be sold for more than the Maximum Resale Price. The date of closing shall
be determined by the Town in consultation with the Owner and the Qualified Buyer.
C. Prior to or at closing, the Owner shall pay the Town a nonrefundable listing
fee equal to 2% of the Maximum Resale Price, if the Town incurs a listing fee. The Town
may instruct the title company to pay said fee to the Town out of the funds held for the
Owner at the closing.
d. At closing, the Qualified Buyer shall execute, in a form satisfactory to the
Town and for recording with the Eagle County Clerk and Recorder, a document
acknowledging this Agreement and expressly agreeing to be bound by it.
5. Effect of Transfer to a Non-Qualified Owner.
a. If for any reason the Property is transferred to a Non-Qualified Owner or a
Qualified Owner becomes a Non-Qualified Owner due to termination of employment or
otherwise, the Non--Qualified Owner shall immediately contact the Town to Transfer the
Property pursuant to Section 4 hereof.
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b. The Non-Qualified Owner shall execute any and all documents necessary
for the Transfer.
C. The Town shall have the right and option to purchase the Property,
exercisable within a period of 15 days after receipt of notice pursuant to Subsection a.
hereof, and if the Town exercises its right and option, the Town shall purchase the
Property from the Non-Qualified Owner for a price equal to 95% of the Maximum Resale
Price, or the appraised market value, whichever is less.
6. Transfer by Devise or Inheritance.
a. If a Transfer occurs by devise or inheritance due to death of an Owner, the
personal representative of the Owner's estate or the person inheriting the Property (the
"Inheriting Owner") shall provide written notice to the Town within 30 days of the date of
death.
b. If the Inheriting Owner is a Qualified Owner, they shall provide the Town
with documentation proving their status as such, and the Town may determine if the
Inheriting Owner is in fact a Qualified Owner. If the Inheriting Owner fails to provide the
required documentation, they shall be deemed a Non-Qualified Owner. If the Inheriting
Owner is a Qualified Owner, they shall succeed to the Qualified Owner's interest and
obligations under this Agreement.
C. If the Inheriting Owner is a Non-Qualified Owner, the Inheriting Owner shall
contact the Town to Transfer the Property pursuant to Section 4 hereof.
7. Rental. The Property shall not be rented, unless the Town assumes ownership of
the Property, and in such case, the Town may rent the Property in the Town's discretion.
8. Breach.
a. It is a breach of this Agreement for an Owner or Qualified Buyer to 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.
b. If the Town has reasonable cause to believe that an Owner or Qualified
Buyer is violating this Agreement, the Town may inspect the Property between the hours
of 8:00 a.m. and 5:00 p.m.,Monday through Friday, after providing the Owner or Inheriting
Owner with 24 hours written notice. This Agreement shall constitute permission to enter
the Property during such times upon such notice.
c_ If the Town discovers a violation of this Agreement, the Town shall notify
the Owner or Qualified Buyer of the violation and allow 15 days to cure; provided that, if
a Qualified Owner's employment with the Town is terminated, that Owner shall have 90
days to initiate the Transfer process set forth in Section 4 without being in breach of this
Agreement.
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9. Remedies.
a. Any Transfer in violation of this Agreement shall be wholly null and void and
shall confer no title whatsoever upon the purported buyer. Each and every Transfer, for
all purposes, shall be deemed to include and incorporate by this reference the covenants
contained in this Agreement, even if the Transfer documents fail to reference this
Agreement.
b. The Town may pursue all available remedies for violations of this
Agreement, including without limitation specific performance or a mandatory injunction
requiring a Transfer of the Property, with the costs of such Transfer to be paid out of the
proceeds of the sale.
C. Upon request by the Town, each Owner authorizes the holder of any
mortgage or deed of trust against the Property to disclose to the Town if any payments
due are delinquent and the duration and amount of such delinquency.
d. Any violation of this Agreement shall cause the Maximum Resale Price to
freeze and remain fixed until the date such violation is fully cured.
. e. In addition to the specific remedies set forth herein, the Town shall have all
other remedies available at law or equity, and the exercise of one remedy shall not
preclude the exercise of any other remedy.
10. Foreclosure.
a. An Owner shall notify the Town, in writing, of any notification received from
a lender of past due payments or defaults in payments or other obligations within 5 days
of receipt of such notification.
b. An Owner shall immediately notify the Town, in writing, of any notice of
foreclosure under the first deed of trust or any other subordinate security interest in the
Property, or when any payment on any indebtedness encumbering the Property is
required to avoid foreclosure of the first deed of trust or other subordinate security interest
in 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 shall place a lien on the Property in the amount
paid to cure the default and avoid foreclosure, including all fees and costs resulting from
such foreclosure.
d. Notwithstanding any other provision of this Agreement, in the event of a
foreclosure, acceptance of a deed-in-lieu of foreclosure, or assignment, this Agreement
shall remain in full force and effect, including without limitation Section 4 hereof, restricting
Transfer of the Property.
e. 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
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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.
11. Miscellaneous.
a. Modification. This Agreement may only be modified by subsequent written
agreement of the Parties, provided that the Town may unilaterally release this Agreement
at any time without the consent of any other person.
b_ Integration_ This Agreement and any attached exhibits constitute the entire
agreement between Buyer and the Town, superseding all prior oral or written
communications.
C. Binding Effect_ This Agreement shall be binding upon and inure to the
benefit of the Parties and their respective heirs, successors and assigns.
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. Assignment. There shall be no transfer or assignment of any of the rights
or obligations of Buyer under this Agreement without the prior written approval of the
Town_
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 this Agreement.
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. The benefits and obligations of the Parties under this Agreement shall run
with the land,and shall be binding on any subsequent holder of an interest in the Property.
k. 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, and protections
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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 or employees.
I. Subject to Annual Appropriation. Consistent with Article X, § 20 of the
Colorado Constitution, any financial obligation of the Town not performed during the
current fiscal year is subject to annual appropriation,shall extend only to monies currently
appropriated, and shall not constitute a mandatory charge, requirement, debt or liability
beyond the current fiscal year.
M. 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.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
Effective Date.
Docusigned by:
QWN OFYPLIL, COLORADO
1jaw, (Jwt,t&
DocuSigned by: EW&3NAbAkW3...
--ATTEST:
7)- V 4Wn Clerk
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BUYER
II
STATE OF COLORADO
COUNTY OF EAGLE
The foregoing instrument was subscribed, sworn to and ackpowledged before me
this_�Jcday of 2020, by Ben Treherne.
Witness my hand and official seal.
Notary Public
My commission expires:
I ct:ILAH E GORDON BUYER
moTARY PUBLIC
iTATE OF COLORADO
.4jTARy ID I 9N4003113
.S
) ss.
COUNTY OF EAGLE
The forego nstrument was subscribed, sworn to and acknowledged before me
this l-o day of t!t<— 2020, by Mallory Baker.
Witness my hand and official seal.
Notary Public
My commission expires: >
-9—HEILAH E GORDON
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 19994003113
My COMMISSION EXPIRES 02/412023
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