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HomeMy WebLinkAbout2006-12 Approving the Purchase of Land known as Parcel No. 210311415019RESOLUTION NO. 12 Series of 2006 A RESOLUTION APPROVING THE PURCHASE OF LAND IN THE TOWN OF VAIL COMMONLY KNOWN AS PARCEL N0.210311415019 BY THE EAGLE COUNTY ASSESSOR'S OFFICE, AND LEGALLY DESCRIBED AS PARCEL A, A RESUBDIVISION OF TRACT D, A RESUBDIVISION OF VAIL SCHONE FILING NO. 1, TOWN OF VAIL, EAGLE COUNTY, COLORADO WHEREAS, the Town of Vail (the "Town"), in the County of Eagle and State of Colorado is a home rule municipal corporation duly organized and existing under the laws of the State of Colorado and the Town Charter (the "Charter"); and WHEREAS, the members of the Town Council of the Town (the "Council") have been duly elected and qualified; and WHEREAS, the Council considers it in the interest of the public health, safety and welfare to purchase the real property and improvements thereon with the physical address of 2399 N. Frontage Road, Vail, Colorado, commonly known as Parcel No. 210311415019 by the Eagle County Assessor's Office, and legally described as Parcel A, a resubdivision of Tract D, a resubdivision of Vail Schone Filing No. 1, Town of Vail, Eagle County, Colorado (the "Property"); and WHEREAS, the Council's approval of this Resolution No. 12, Series 2006, is required to purchase the Property. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: 1. The agreement to buy and sell the Property is hereby approved by the Council. 2. The Town Manager, Town Attorney and town staff are authorized to take whatever steps are necessary to complete the purchase of the Property by the Town of Vail. 3. This resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Vail held this 18t" day of April, 2006. L S •A~ A~ E~T:ORAD~r~~~~ ~~-~~~~'a.~to~lei Donaldson, Town Clerk 4~- todney .Slifer, Mayor of the Town o Vaii, Colorado t~pr 12 2006 12:25PM Laos Offices Of Gary S. Co 3038639595 L~ A 5 6 7 8 l0 11 12 l3 l4 15 16 l7 18 l9 20 21 22 23 24 25 26 27 28 29 7 The printed portions of this forth, except differentiated additions, have been approved by the Colorado Real Commission. (CBS 2-7-04) THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTII~S ~HAU?G CONSULT LEGAL AND TAX OA OTHER COUNSEL ~FFtlt]~ S~G1Vi~11~,.,~; ;:.-~, ~ :'~`A2 ~ ~~ ~ ~ ~°- ~ , 9 l,. i CONTRACT TO BUY AND SELL Ii~EAL ESTATE ~ ~ ~~ ~ ~~ ~;~ ~ ~'~ ::: COMMERCIAL) Date; ~pri1 l2 , 2006 Purchase Price: $ 2 , 000, 000.. 1. AGREEMENT. Buyer agrees to buy, and the undersigned Seller agrees to sell, the Proi defined below on the terms and conditions set forth in this contract. Z. DEFINED TERMS. a. Buyer. Buyer, Town of Vail, a Colorado Municipal Corporat~9~r title to the real property described below as O Joint Tenants O Tenants In Common Other N/A b. Property. The Property is the following legally described real estate: Vail Dag Schone Filing 1, Parcel A, a resubdivision of Tract D in the County of Ea Ele ,Colorado, j commonly known as t3o, 2399 Borth Frontage Road West, Vail, CO 81657 Street Address City State Zip together with the interests, easements, rights, benefits, improvements and attached fixtures appuriet- t thereto, all interest of Seller in vacated streets and alleys adjacent thereto, oxcept as herein exaludod. c. Dates and Deadlines. Item >vo. 1 2 3 -. ~ 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ° ~`° Reference Sa b Sc Sc Sd Sd S Sd 6a(4) 7a 7c Sc 6 7b 8a 8b Sb 10 l0a 6 lOb s log it 6 l6 16 27 27 Event Loan Application Deadline Loan Commitment Deadline Buyer's Credit Information Deadline Disapproval of Buyer's Credit Deadline Existing Loan Documents Deadline Objection to Existing Loan Documents Deadline Approval of Loan Transfer Deadline Appraisal Deadline Title Deadline Survey Deadline Survey Objection Deadline Document Repuest Deadline Title Objection Deadline Off-Record Matters Deadline Off-Record Matters Objection Deadline Seller's Property Disclosure Deadline Inspection Objection Deadline Resolution Deadline Property Inswance Objection Deadline Closing Date Possession Date Possession Time Acceptance Deadline Date Acceptance Deadline Time Date or De~~i N/A '" Nrr+ N/A N/A ~J' N/A N/A ~ N/A 5/22/06* ~ 1 22/06 5/20/06 5%L1/Ub it CBS 2-7-04 P Tj environmental Aas3 CONTRACT TO BUY AND SELL REAL ESTATE [COMhIERC7AL) 5 /'1 5/22/06 i 5/30/06, ` I~ 5/22/Ub'. C /5 j06 6/19/06 ': N/A s. See >Kxla~~,I. tiPP;: SeerExhibi. 4/14/06 s:UU p,rn ; 6/25/06 w`~ ,~. ~ H~. l Page L at 10 JIl~s' ials p.3 Apr 12 2006 12:25PM Law Offices Qf Gary S. Co 3Q386395SS 'iiu p•'I d~ d. Attachments. The following are a part of this contract: N/A 32 33 34 Note; The following disclosure forms are attached but are not a part of this contract: N/A 35 36 37 e. Applicability of Terms. A check or similar mark in a box means that such provision '~ ; 38 applicable. The abbreviation "NIA" means not applicable. The abbreviation "MEC" (mutual execution 39 this contract) means the latest date upon which both parties have signod this contract. 40 3. INCLUSIONS AND EXCLUSIONS. The Purchase Price includes the following ite 41 (Inclusions): 42 a. Futures. If attached to the Property on the date of this contract, lighting, heatu 43 plumbing, ventilating, and air conditioning fixtures, inside telephone wiring and connecting blocks/jac 44 plants, mirrors, floor coverings, in SeemEx~it~~~.,t Qrinkler systems and controls; and 45 ~xh 46 47 b. Exclusions. The following attached ues are e~ccluded fro»t this sgle; 48 ~~ 49 c. Personal Property. If on the Property whether attachod or not on the dgGG ~f t1l~S ~~; . 50 storm windows, storm doors, window and porch shades, awnings, blinds, screens, window coverings, c 51 rods, d~e_ry rods, storage sheds, and a71 keys. If checked, the following are included: f~ISmoke/F 52 Detectors Security Systems; and ca Rh registers excluded 53 54 d. Transfer of Personal Property. The Personal Property to be conveyed at Closing shall b 55 conveyed, by Seller, free and clear of all taxos, (except personal property taxes for the year of closing), lie 56 and encumbrances; except 57 i Conveyance shall be by bill of sale or other applicable legal instrument. e. Trade Fixtures. With respect to trade fixtures, Seller and Buyer agree as follows: 60 61 See Exhibit A 62 63 4. PURCHASE PRICE AND TERMS. The Purchase Price set forth below shall be payable in U. 64 Dollars by Buyer as follows; b5 Item 1'~0. Reference Item Amount Amou 't I § 4 Purchase Price $ 2 000 000 2 ~ 4a Earnest Money $ 25 ,~ 3 § 4b(1) New First Loan 4 ~ 4b(2) New Second Loan 5 § 4c Assumption Balance ~~ "'" ` ~~ " 6 § 4d Seller or Private Financing - «: = :°~ ' 'rt"~ a: , 8 9 "' & 4e Cash at Closing ~ 1, 975 0° 10 TOTAL $ 2, 000 , 000 $ 2 , OO~I 66 Note: If there is an inconsistency between the Purchase Price on the first page and this § 4, the amount; i 67 ~ 4 shall control. ~ ~ . 68 a. Earnest Money. The 8amest Money set forth in this section, in the form of. g T tatl 6 ~ a: b9 is part payment of the Purchase Price and shall be payable to and held by Land Title Guaran~ee ~ TO (Earnest Money Holder), in its trust account, on behalf of both Seller and Buyer. The Earnest Money depos ~ , 71 shall be tendered with this contract unless the parties mutually agree and set forth a different deadline ~ 72 writing for its payment. The parties authorize delivery of the Earnest Money deposit to the closing compa~h 73 if any, at or before Closing. In the event Earnest Money Holder has agreed to have interest an earnest move , ' deposits transferred to a fund established for the purpose of providing affordable housing to Colored residents, Seller and Buyer acknowledge and agree chat any interest accruing on the Earnest Money deposite' 76 with the Earnest Money Holder in this transaction shall ba transforred to such fund. CBS 2-7-04 CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 2 of 111 1 i:h~eck Rpr 12 2006 12:26PM Law Offices 0f Gard S. Co 3038639595 77 78 0 81 82 83 84 BS 86 87 88 89 90 91 92 93 94 9S 96 97 96 99 100 101 102 103 104 las 106 l~II vrJ 110 112 113 lla Il5 11b 117 118 119 120 121 122 123 124 125 126 l27 128 129 130 131 132 133 134 135 b. New Loan. N/A 1) New First LOan. Buyer shall obtain a new loan set forth in this section follows: ^ Conventional ^ Other This loan vKill be secured by a (1st, 2nd, etc.) deed oftrust. The total Loan amount, not in excess of $ ,shall be amortized over period of years at approximately S per month including principal and interest no to exceed % per annum, plus, if required by Buyer's fender, a monthly deposit of l/l~ of tit estimated annual real estate taxes and property insurance premium, if the loan is alt adjustable i~tt~rtst tsxQ,lr! graduated payment loan, the monthly payments and interest rate initially shall not exceed the f!(~tl.S~ srtf .,. above. Loan discount points, if any, shall be paid to lender at Closing and shall not exceed °lo of total loan amount. Notwithstanding the loan's interest rate. the first ,_,,, loan discount points shall be paid by and the balance, if any, shall be paid by b dyer shall timely pay Buyer's loan costs and a loan origination fee not to exceed % of th~ loan arhount. 2) New Second Loan. Buyer shall obtain a new foan set forth in this section asl follows: N/A This loan will be securod by a (2nd, etc.) deed of trust. The total loan amount, not in excess of $ ,shall be amortized over a period of years at approximately $ per month including principal and interest not to exceed % per annum. 1P the loan is an adjustable interest rate or graduated payment loan, the monthly payments and interest rate initially shall not exceed the figures set forth above. Loan discount points, if any, shall be paid to lender at Closing and shall not exceed % of the total loan amount. Notwithstanding the loan's interest rate. the first ~ loan discount points shall be paid by and the balance, if any, shall be pard by Buyer shall timely pay Buyer's loan costs and a loan origination fee not to exceed % of the loan amount. c. Assumption. Buyer agrees to assume and pay an existing loan in the approximate amount of the Assumption Balance set forth in this section, presently payable at $ /A per month including principal, interest presently at ____°rf° per annum. and also including escrow for the following as indicated: O Real Estate Taxes ^ Property Insurance Premium and Buyer egrets to pay a loan transfer fee not W exceed $ At the time. p(' assumption, the new interest rate shall not exceed _% per annum and the new monthly I?,ayrAGllt sb~l ru~# exceed $ principal and interest, plus escrow, if any, If the actual pttincip~l brtlal~tce of >, existing loan at Closing is less than the Assumption Balance, which causes the amount of c>tslt rGqu,ilre~,a.„ Buyer at Closing to be increased by more than $ ,then O Buyer May Terminate this contract effective upon receipt by Seller of Buyer's written notice oftermination or O . sSalber ^ 5hali D Shall Not be released from liability on said loan. If applicable, compliance with the requirements for releasr from liability shall be evidenced by delivery at Closing of an appropriate letter of commitment from lender. Cost payable for release of liability shall be paid b~~ in an amount not to exceed $ d. Salter or Private Financing. Buyer agrees to execute apromissory note payable to: N/A as ^ Joint Tenants ^ Tenants fn Common ^ Other, , on the note form as indicated: O (tfCCC - No Default Rste) NTD 82-5-04 ^ (Default Rate)NTD 8]-5-04 Other secured by a (Ist, 2nd, etc.) deed of trust encumbering the Property, using the form as indicated: Q Strict pue-On-Sale (TD 72-5-04) Creditworthy (TD 73-5-04) ^ Assumable -Not Due On Sale lTp 74-5-04) ^ Other The promissory note shall be amortized on the basis of ^ Years ^ Months, payable at per month including principal and interest at the rate of % per annum. Payments: shall commence and shall be due on the day of each succeeding month. (f not sooner paid, the balance of principal and accrued interest shall be due and payable after Closing. Payments ^ 5haU O Shall Not be increased by I /12 of estimated annual real estate taxes, and ^ Shalt ^ Shall Not be increased by 1l12 of estimated annual property insurance premium. The loan shall also contain the following terms: (I) if any payment is not received within , Calendar days after its due date, a late charge of `% of such monthly payment shall be due, (2) interest on lender disbutsernettts under the deed of trust shall be % per annum, (3) default interest rate shall be ,,,,,,,~,% per annum, (9~)~ Buyer may prepay without a penalty except and (~) Buyer ^ Shall D Shall Not execute and deliver. at Closing, a Security Agreement and UCH*1 p.5 C[iS 2-7.114 CONTRACT TO IIUY AND SELL REAL ESTATE (COMMERCIAL) Page 3 of LO w t~pr 12 2006 12:27PM Law Offices Of Gary S. Co 3038639595 138 Financing Statement granting the holder of the promissory note a f 1st, 2nd, etc.) lien on the pGCSOr 39 grope{~included in this sale. 0 Buyer ^ Shall ^ Shall Not provide a mortgagee's title insurance policy, at Buyer's expense. 41 e. Cash at Closing. All amounts paid by Buyer at Closing including Cash at Closing, ply 142 Buyer's closing costs, shall be in funds which comply with all applicable Colorado laws, which include cos 143 electronic transfer funds, certified check, savings and loan teller's check and cashier's check (Good Funds). l44 S. FINANCING CONDITIONS AND OBLIGATIONS. N/A 145 n. Loan Application. If Buyer is to pay all or part of the Purchase Price by obtaining a n~ 146 loan, or if an existing loan is not to be released at Closing, Buyer, if required by such lender, shall make 147 verifiable application by Loan Application Deadline (§ 2c). Buyer shall cooperate with Seller end lender 148 obtain loan approval, diligently and timely pursue same in good faith, execute all documents and furnish e 149 information and documents required by lender, and, subject to § 4b (1 }and (2) and § 4q timely pay the cos 150 of obtaining such loan or lender consent. Buyer agrees to satisfy the reasonable requiremearts of lender, at I S l shall not withdraw the loan or assumption application, nor intentionally cause any change in circumstanoi 152 that would prejudice lender's approval of the loan application or funding of the loan. Buyer may obta~ 153 different financing provided Seller incurs no additional delay, cost or expense, and provided Buyer 154 approved for such substitute loan. 1 SS b• Loan Commitment. [f Buyer is to pay all or part of the Purchase Price by obtaining a ne~ 156 loan as specified in § 4b, this contract is conditional upon Buyer obtaining awrittea loan commitment. Th 157 condition shell be deemed waived unless Seller receives from Buyer, no later than LoAa Coramitmea 158 Deadline (§ 2c), written notice of Buyer's inability to obtain such loan commitment. If svyar so aotilftt 159 Seller, this contract shall terminate. IF SELLER DOES NOT RECENE WRt• i,t.N.1110TICF Tl 160 •. TERMINATE AND BUYER DOES NOT CLOSE, BUYER SHALL $E AY DEFAULT. 161 G Credit information. If Buyer is to pay all or part of the Purchase PtticG by >>,~,g 162 promissory note in favor of Seller or if an existing loan is ant to be released at Closing, this Gt]IIt1'gClr; 163 conditional upon Seller's approval of Buyer's futancial ability and creditworthiness, which approval shall k 164 at Selpxttc~sole and absolute discretion. In such case: (I) Bayer shall supply to Seller by Buyer's Cred 165 Information Deadline (§ 2c), at Buyer's expense, information and documents concerning $uyers finanoia 166 employment and credit condition; (2) Buyer consents that Seller may verify Buyer's financial ability creditworthiness (including obtaining a currant credit report); (3) any such information and documen~ received by Seller shall be held by Seller in confidence, and not released to others except to protect Seller 9 interest in this transaction; (4) if Seller does not provide written notice of Sellers disapproval to Buyer b 170 Disapproval of Buyer's Credit Deadline (§ 2c), then Sellarwaives~this condition. If Seller does provid 171 written notice of disapproval to Buyer on or before said date, this contract shall terminate. 172 d. Existing Loan Review. If an existing loan is not to be released at Closing, Seller shn 173 provide copies of the loan documents (including note, deed of trust, and any modifications) to Buyer b 174 Existing Loan Documents Deadline (§ 2c). This contract is conditional upon Buyer's review and approve 175 of the provisions of such loan documents. If written notice of objection to such loan doctments, signed b 17G Buyer, is not received by Seller by the Objection to Existing Loan Documents Deadline (§ 2c), Buye 177 accepts the terms and conditions of the documents. [f the lenders approval of a transfer of the Properly i 178 required, this contract is conditional upon Buyer obtaining such approval without change in the terms of sue 179 loan, except as set forth in § 4c. If lender's approval is not obtained by Approval o[ Loan Tranafia l80 Deadline (§ 2c), this contract shall terminate an such date. If Seller is to be released from liability uncle 181 such existing loan and Buyer does not obtain such compliance as set forth in § 4c, this contracx may b 182 terminated at Seller's option. 183 6. APPRAISAL PROVISIONS. N/A 184 a. Appraisal Condition. This subsection a. D Shall ®Shall Not apply. 185 ., Buyer shall have the sole option and election to terminate this contract if the PlitfchaSO ~fite{1 GiLGG&Jl 186 the Property's valuation determined by an appraiser engaged by TItO. Gotttl~t sbe~ 187 terminate by Buyer giving Seller written notice of termination and either a copy of such appraBaJ of write 188 ~totice.from lender that confirms the Property's valuation is less than the Purchase Price, received oa a 189 beforeA~lpsrnisal Deadline (§ 2c). If Seller does not receive such written notice of termination on or befor 190 Appraisal Deadline (§ 2c), Buyer waives any right to terminate under this subsection. 91 b. Cost of AppralsaL Cost of any appraisal to be obtained after the date of this contract slaw 192 be timely paid by $?:Buyer ^ Seller. 193 i. EVIDENCE OF TITLE. l94 a. Evidence of Title. On or before Title Deadline (§ 2c), Seller shall cause to bo furnished t 195 Buyer, at Seller's expense, a current commitment for owner's title insurance policy (Title Commitment) in a amount equal to the Purchase Price, or if this box is checked, ^ An Abstract of title certified to a currer date. At Sellers expense, Seller shall cause the title insurance policy to be issued and delivered to Buyer e CIIS 2-7-(14 CONTRACT TO HUY AND SELL REAL ESTATE (COMMERCIAL) Psge 4 of 10 r~~r t Is p.6 Rpr 12 2006 12:28PM Law Offices Of Gary S. Co 3038639595 198 soon as practicable at or after Closing. If a title insurance commitment is furnished, it ~ Shall ^ Shall N~ 99 commit to delete or insure over the standard exceptions which relate to:0 (1) parties in possession, O1 (2) unrecorded easements, 202 (3) survey matters, 203 (4) any unrecorded mechanic's liens, 204 (5) gap period (effective date of commitment to date deed is recorded), and 205 (6) unpaid taxes, assessments and unredeemed tax sales prior to the year of Closing. 206 Any additional premium expense to obtain this additional coverege shall be paid by ^ Buyer I 207 Seller. 208 b. Copies of Exceptions. On or before Title Deadline (§ 2c), Seller, at Seller's expense, sht 209 fumishto Buyer and , (l) a cgpy ~.~ 210 •~ plats, declarations, covenants, conditions end restrictions burdening the Property,~and (2) if a t(kle i~tulslr~ 211 camtnitment is required to be furnished, snd if this box is checked [~ Coplea of upy Other Docllmants (q 2l2 if illegible, summaries of such documents) listed in the schedule of exceptions (Exceptions). Eve11 if the i?G 2l3 is not-checked, Seller shall have file obligation to furnish Q;~.,:: documents pursuant to this subsection 214 reques~~y Buyer any time on ar beforo Document Ret(uest Deadline (§ 2c). This requirement sha 215 pertain only to documents as shown of record in the offices of the clerk and recorder. The abstract or till 216 insurance commitment, together with any copies or sununarics of such documents famished pursuant to thi 217 section, constitute the title documents (Title Documents). 218 c. Survey. On or before Survey Deadline (§ 2c) Q Seller Buyer shall cause Buyer an 219 the issuer of the Title Commitment or the provider of the opi-~ion of title if an abstract, to receive a canner 220 Q Improvement Survey Plat Q Improvement Location Certificate .'^'~,~],~B Survev 221 (the description checked is known es Survey). An amount not to exceed $ ~ , UUU for Survey shall. b 222 paid by ~ Buyer ^ Seller. If the cost exceeds this amount, Buyer shall pay th 223 excess on or before Closing. 224 8. TITLE AND SURVEY REVIEW. 225 a. Title Review. Buyer shall have the right to inspect the Title Documents. Written notice b 226 Buyer of unmerchantability of title, form or content of Title Commitment or of any other unsatisfactory tiCl 227 condition shown by the Title Documents, notwithstanding § 12, shall be signed by or on behalf of Buyer an given to Seller on or before Title ObJecNoa Deadline (§ 2c), or within five (5) calendar days after receipt. b Buyer of any change to the Title Documents or endorsement io the Title Commitment together with a copy c 230 the document adding any new Exception to title. If Seller does not receive Buyer's notice by the dot 23 i specified above, Buyer accepts the condition of title as d isclosed by the Title Documents as satisfactory. 232 b. Matters not Shown by the Public Records. Seller shall deliver t0 Buyer, on or befor 233 Off-Record Matters Deadline (§ 2c) true copies of aU leases and surveys in Seller's possession pectairlirlg t 234 the Property and shall disclose to Buyer all easements, liens (including, without limitation, SoveNmRliiti 235 ~ improvements approved, but not yet installed) or other title ntattr;rs (including, without limitation, w•ights G 236 first refusal, and options) not shown by the public records of which Seller has actual knowledge. ~uyef s>fia; 237 have the right to inspect the Property to determine if any third party has any right in the Property not show 238 by the-public records (such as an unrecorded easement, unrecorded lease, or boundary line discrepancy; 239 Written ~nmtia of any unsatisfactory condition disclosed by Seller or revealed by such inspection 24D notwithstanding § 12, shall be signed by or on behalf of Buyer and given to Seller on or before Off-Recdri 241 Matters Objection Deadline (§ 2c). If Seller does not receive Buyers notice by said date, Buyer accept 242 title subject to such rights, if arty, of third parties of which Buyer has actual knowledge. 243 c. Survey Review. Buyer shall have the right to inspect Survey. If written notice by or o; 244 behalf of Buyer of any unsatisfactory condition shown by Survey, notwithstanding § Sb or § 12, is receive 245 by Seller on or before Survey Objection Deadline (§ 2c) then such objection shall be deemed ~a 24G unsatisfactory title condition. If Seller does not receive Buyer's notice by Survey Objection Deadline 247 2c), Buyer accepts Survey as satisfactory. 248 d. Special Taxing Districts. SPECIAL TAXING DISTRICTS MAY BE SUBJECT TI 249 GENERAL OBLIGATION INDEBTEDNES3 THAT IS PAID BY REVENUES PRODUCED FROM AKNUAI 250 TAX LEVI1:5 ON THE TAXABLE PROPERTY WITHIN SUCH DISTRICTS. PROPERTY OWNERS I1 25] SUCH DISTRICTS MAY BE PLACED AT RISK FOR INCREASED t11LL LEVIES AND EXCESSIVE TAd 252 IitURDENS TO SUPPORT THE SERVICING OF SUCH DEBT WHERE CIRCUMSTANCES AR1,`5] 253 RESULTING IN TIIE INABILITY OF SUCH A DISTRICT TO DISCHARGE SCCH INDEBTEDNESI 254 WITHOUT SUCH AN INCREASE IN MILL LEVIES. BUYER SHOULD INVESTIGATE THE DES' 255 FINANCING REQLJIREMENTS OF THE AUTHORIZED GENERAL OBLIGATION INDEBTEDNESS OI SUCH DISTRICTS, EXISTING MILL LEVIES OF SUCK DISTRICT SERVICING SUCH INDEBTEDNESS AID THE POTENTIAL FOR AN INCREASE IN SUCH MILL LEVIES. DS 2-7-(14 CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page S otlQ " " ` L f'. p.7 e~ flpr 12 2006 12:28PM Law Offices Of Gary S. Co 3038639595 258 In the event the Property is located within a special taxing district and Buyer deslros to tt7migg X59 this contract as a result, if written notice is received by Seller on or before OII'•RceArd M+ttt~rti Qpj~ctitl 0 ~~ Deadline (§ 2c), this contract shall than terminate. If Seller does not receive Buyer's ngtioa by such d1sNl I Buyer accepts the effect of the Property's inclusion in such special taxing district attd waived the right 2G3 terminate. 2G3 .A a Right to Object, Cure. Buyer's right to object shall include, but not be Mtrited to thos 2G4 matters I~ed in § 12. If Seller receives notice of unmerchantability of title or any other unsatisfactory titl 2G5 condition or commitment terms as provided in subsections 8 a, b, c and d above, Seller shall use reasoaabl 2GG efforts to correct said items and boar any nominal expense to correct the same prior to Closing. If sue 2G7 unsatisfactory title condition is not corrected to Buyer's satisfaction on or before Closing, this contract shat 2G8 then terminate; provided, however, Buyer may, by written notice received by Seller on or before Closih 2G9 waive objection to such items. 270 f. Title Advisory. The Titre Documents affect the title, ownership and use of the Propa 271 and should be reviewed carefully. Additionally, other matters not reflected in the Title Documents rna 272 affect the title, ownership and use of the Properly, including without limitation boundary lines an 273 encroachments, area, zoning, unrecorded easements and claims of easeTrtents, leases and other unrecorde 274 agreements, and various laws and governmental regulations concerning land use, development an 275 environmental matters. The surface estate may be owned separately from the underlyitogmineral estat 27G and transfer of the surface estate does not necessarily include transfer of the mineral rights. Thir 277 pArties may hold interests in oil, gas, other minerals, geothermal energy or water on or under th 278 Property, which interests may give them rights to enter and use the Property. Such matters may 279 excluded from the title insurance policy. Buyer is advised to timely consult legal counsel with respect to al i 280 such matters as there aze strict time limits provided in this contract (e.g., Title Objection Deadline [¢ 2c] t3tt 281 Off-Record Matters Objection Deadline [§ 2c]). 282 4. LEAD-BASED PAINT. Unless exempt, if the improvements on the Property include oao or to 283 residential dwellings for which a building permit was issued prior to January I, 1978, this contract shall 284 void unless a completed Lead-Based Paint Disclosure (Sales) form is signed by Seller and l~G t~quiced rGg 285 restate licensees, which must occur prior to the parties signing this contract. 28G 1 D. PROPERTY DISCLOSURE, INSPECTION AND INSURABILITY; BUYER DISCI~QSUR~ 287 On or before Seller's Property Disclosure Deadline (§ 2c), Seller agrees to provide Buyer with a writs . disclos~r~e of adverse matters regarding the Property completed by Seller to the best of Seller's current actual knowledge. 290 a. Inspection Objection Deadline. Buyer shall have the right to have inspections of th 291 physical condition of the Property and Inclusions, at Buyer`s expense. [f the physical condition of tine 292 Property or inclusions is unsatisfactory in Buyer's sabjective discretion, Buyer shall, an ar before Inspeetit-n 293 Objection Deadline (~+ 2c}: 294 (1) notify Seller in writing that this contract is terminated, or 295 (2) provide Seller with a written description of any unsatisfactory physical condition 29G which Huyer requires Seller to correct (Notice to Correct}, 297 if written notice is not received by Seller on or before Inspection Objection Deadline (§ 2c), the 298 physical condition of the Property and Inclusions shall be deemed to be satisfactory to Buyer. 299 b. Resolution Deadline. If a Notice to Correct is received by Seller and if Buyer and Seller 300 have not agreed in writing to a settlement thereof on or before Resolution Deadline (§ 2c), this contract shill 301 terminate one calendar day following the Resolution Deadline (§ 2c), unless before such termiaation Seller 302 receives Buyer's written withdrawal of the Notice to Correct. 303 c. Insurnbility. This contract is conditioned upon Buyer's satisfaction, in Buyer's subjective 304 discretion, with the availability, terms, conditions and premium for property insurance. This contract shall 305 terminate upon Seller's receipt, on or before Property Insurance Objection Deadline (§ 2c) of Buyer's 30G written notice that such insurance was not satisfactory to Buyer. [f said notice is not timely received, Buyar 307 shall have waived any right to terminate under this provision. ~ 308 d. Damage, Liens and Indemnity. Buyer is responsible for payment for all inspectivl~s, 309 surveys, engineering reports or for any other work performed at Buyers request 8nd shall play for arty dlltttt3j~ 3 I 0 ~' which occurs tv the Property and inclusions as a result of such activities. Buyer shall not permit GI~&ittt3;Ot 3I I liens of any kind against the Property for inspections, surveys, engineering reports and for any other work 312 performed on the Property at Buyer's request. Buyer agrees to indemnify, protect and hold Seller harmless 313 From aid against any liability, damage, cost ar expense incurred by Seller in connection with any sut;tt 314 inspection, laim, or lien, This indemnity includes Seller's right to recover all costs and expenses incurred by 3 I S Seller to enforce this subsxtion, including Seller's reasonable attorney and legal fees. The provisions of ti~is 3 I G subsection shall survive the termination of this contract. 11. CLOSING. Delivery of deed from Seller to Buyar shall be at closing (Closing). Closing shall be pn the date specified as Closing Date (§ 2c) or by mutual agreement at an earlier data. Tha hour and place!of IIS 2-7-U4 CONTRACT TO t3UY AND SELL REAL ESTATE (COM1ttt1ERCtAL) Page 6 0110 f p. e e e.o Rpr 12 2006 12:29PM Law Offices Of Gary S. Co 3038639595 319 i~` 3 22 323 324 3 25 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 Closing shall be as designated by Land Title Guarantee 12. TRANSFER OF TITLE. Subject to tender or payment at Closing as required herein a compliance by Buyer with the other terms and provisions Hereof, Seller shall execute and deliver a good a sufficient general warranty deed to Buyer, at Closing, conveying the Property free and clear of ~ taxes except the genera] taxes for the year of Closing. Except as provided herein, title shall be conveyed fr and clear of all liens, including any governmental liens for special improvements installed as of the date Buyer's signature hereon, whether assessed or not. Title shall be conveyed subject to: , a. those specific Exceptions described by reference to recorded documents as reflected in~ t Title Documents accepted by Buyer in accordance with § Ba (Titlt Review), b. distribution utility easements, c. those specifically described rights of third parties not shown by the public records of whip Buyer has actual knowledge and which were accepted by Buyer in accordance with § Sb (Matters not Shvr by the Public Records) and § Be (Survey Review), d. inclusion of the Property within any special taxing district, e. the benefits and burdens of any declaration and party wall agreements, if any, end f. other~l/A 13. PAYMENT OF ENCUMBRANCES. Any encumbrance required to be paid shall be paid at before Closing from the proceeds of this transaction or from any other source. ' 14. CLOSING COSTS, DOCUMENTS AND SERVICES. Buyer and Seller shall pay, in Gb~ Funds, it respective Closing costs and all other items required to be paid at Closing, except as othen~ui provided herein. Buyer and Seller shall sign and complete all customary or reasonably, required documentsorbeforeClosing. Fees for real estate Closing services shall be paid at Closing by ~ One-half by Buys and One-half by Seller ^ Buyer ^ Seller ^ Other ; The local transfer tax of 1\'/A % of the Purchase Price shall be aid at Closing by ^ One by Buyer and One-half by Seller ^ Buyer ^ Seller ^ Other Town ofp Vail is exempt f Any sales and use tax that may accrue because of this transaction be paid when due by ^ Buyer~Seller. 15. PRORATIONS. The following shall be prorated to Clasing Date (§ 2c), except as othe provided: a. Taxes. Personal property taxes, if any, and general real estate taxes for the year of Clc based on ^ Taxes for the Calendar Year Immediately Preceding Closing ~ Most Recent Mill and Moat Recent Assessment ^ Other b. Rents. Rents based on ^ Rents Actually Received ^ Accrued. Security deposits by Seller shall be credited to Buyer. Seller shall assign all leases to Buyer and Buyer shall assume leases. N/A c. Other Prorations. Water and sewer charges; interest on any continuing loan, and d. Rival Settlement. Unless otherwise agreed in writing, these proratians shall be final. 16. POSSESSION. Possession of the Property shall be delivered to $uyer on Passessipp Date Posae.salon Tiroe (§ 2c), subject to the following leases or tenancies: See Exhibit A t,l~eller, a8er Closing, fails to deliver possession as specified, Seller shall be subject to eviction shall be additionally liable to Huyer for payment of $ 500 per day from the Possession Date (§ 2c) i possession is delivered. 17. NOT ASSIGNABLE. This contract shall not be assignable by Buyer without Seller's prior wr consent, Except as so restricted, this contract shall inure to the benefit of and be binding upon the h personal representatives, successors and assigns of the parries. 18. INSURANCE; CONDITION OF, DAMAGE TO PROPERTY AND INCLUSIONS. Excel otherwise provided in this contract, the Property, Inclusions or both shall be delivered in the condi existing as of the data of this contract, ordinary wear and tear excepted. a. Casualty Insurance. In the event the Property or Inclusions shall be damaged by fir other casualty prior to Closing, in an amount of not more than ten percent of the total Purchase Price, S~ shall be obligated to repair the same before the Closing Date (§ 2c). In the event such damage is repaired within said time or if the damages exceed such sum, this contract may be terminated at the optio Huyer by delivering to Seller written notice of termination. Should Buyer elect to carry out this cone despite such damage, Buyer shall be entitled to a credit, si Closing, for all the insurance proceeds resu] from such damage to the Property and Inclusions payable to Seller but not the owners' association, if N/~iA ne r star rans p.9 CHS 2-7-04 CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 7 of LO Rpr 12 2006 12:30PM Law Offices Of Gary S. Co 3038639595 379 plus the amount of any deductible provided for in such insurance policy, such credit not to exceed the tpta0PurchasePrice. 1 b. Damage, Inclusions and Services. Should any Inclusion or service (including systkrn 82 and components of.the Property, e.g. heating, plumbing, etc.) fail or be damaged between the date of 1 383 contract and Closing or possession, whichever shall be earlier, then Seller shall be liable far the r~pgi~q384 ~ replacement of such Inclusion or service with a unit of similar size, age and quality, ar an equivalent cxedit 365 but only to the extent that the maintenance or replacement of such llaclusion, service or fixture is not~hl386respo>Zsibility of the owners' association, if any, less any insurance proceeds received by Buyer coverings cl 387 repair placement. 388 G Walk-Through and Verification otCondition. Buyer, upon reasonable notice, shall h~v~389 the right to walk through the Property prior to Closing to verify that the physical condition of the Propr3rt~ 390 and inclusions complies with this contract. 391 l9. KECOMMENDATION OF LEGAL AND TAX COUNSEL. By signing this document, Bu~+e~ 392 and Seller acknowledge that the respective broker has advised that this document has important 1 393 consequences and has rec~,,...,ended the examination of title and consultation with legal and tax or ot~es394counselbeforesigningthiscontract. ~~ 395 20. TIME OF ESSENCE, DEFAULT AND REMEDIES. Time is of the essence hereof. If any nbt~ 396 or check received as Earnest Money hereunder or any other payment due hereunder is not paid, honored o~397 tendered when due, or if any other obligation hereunder is not performed or waived as herein provided, th r 398 shall be the following remedies: 349 a. if Buyer is in Default: 400 ^ (1) Specific Performance. Seller may elect to treat this contract as canceled, i 401 which case all payments and things of value received hereunder shall be forfeited and retained on behal o 402 Seller, and Seller may recover such damages as may be proper, or Seller may elect to treat this contrac ~ 403 being in full force and effect and Seller shall have the tight to specific performance or damages, or both. 404 ~ (2) Liquidated Damages. All payments and things of value received hereunder s 405 be forfeited by Buyer and retained on behalf of Seller aad both parties shall thereafter be released from al 40G obligations hereunder. It is agreed that such payments and things of value are LIQUJDATED DAMAG 407 and (except as provided in subsection c) are SELLER'S SOLE AND ONLY REMEDY for Buyer's fail 408 perform the obligations of this contract. Sailer expressly waives the remedies of specific performance additional damages. b. iPSeller is in Default: Buyer nlay elect to treat this contract as canceled, in which cast; al 41 I payments and things of value received hereunder shall be returned and Buyer may recover such damag 412 may be~o~er, or Buyer may elect to treat this contract as being in full force and effect and Buyer shall h v 413 the right to specific performance or damages, or both. 414 c. Costs and Expenses. In the event of any arbitration or litigation relating to this conic 415 the arbitrator or court shall award to the prevailing party all reasonable casts and expenses, including atto e 41G and legal fees. 417 21. MEDIATION. If a dispute arises relating to this contract, prior to ar after closing, and is o 418 resolved, the parties shall first proceed in good faith to submit the matter to mediation. Mediation i 419 process in which the parties meet with an impartial person who helps to resolve the dispute informally 420 confidentially. Mediators cannot impose binding decisions. The parties to the dispute must agree before y 421 settlement is binding, The partial will jointly appoint an acceptable mediator and will share equally in h 422 cost of such mediation. The mediation, unless otherwise agreed, shall terminate in the event the en 'r 423 dispute is not resolved within 30 calendar days of the date written notice requesting mediation is sent by n 424 parry to the other at the party's last known address. This section shall not alter any date in this contr , 425 unless otherwise agreed. 426 22. EARNEST MONEY DISPUTE. In the event of arty controversy regarding the Earnest Money d' 427 things of value (notwithstanding any termination of this contract or mutual written instructions), Earn s 428 Money Holder shall not be required to take any action. Earnest Money Holder may await arty proceeding~or429atitsoptionandsolediscretion, interplead all parties and deposit any money or things of value into a cow~Il o 430 competent jurisdiction and shall recover court costs and reasonable attorney and legal fees. 431 23. TERMINATION. In the event this contract is terminated, all payments and things of v u ~ 432 received hereunder shall be returned and the parties shall be relieved of all obligations hereunder, subject to 433 ¢§ I Od, 21 and 22. 434 ~' 24. ADDITIONAL PROVISIONS. (The following additional provisions have not been approved 435 the Colorado Real Estate Commission.) 436 A~.,o See Exhibit A C[iS Z-7-04 CONTRACT TO BIIV AND SELL REAL ESTATE (COMMERCIAL) Page 8 of 10 In i Is p. 10 Rpr 12 2006 12:31PM Law Offices Of Gary S. Co 3038639595 e a.o 440 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 S II~Y, 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 4B7 468 469 490 491 492 493 494 495 496 1~ 25. ENTIRE AGREEMENT, MODIFICATION, SURVIVAL. This agreement oonstilutes the er~tir c..~.u4ct between the parties relating to the subject hereof, and any prior agreements pertaining ther~tcwhetheroralorwritten, have been merged and integrated into this contract. No subsequent modificatio a any of the terms of this contract shall be valid, binding upon the parties, or enforceable unless made i. writing and signed by the parties. Any obligation in this contract that, by its terms, is intended to b performed after termination or Closing shall survive the same. 26. NOTICE, DELIVERY AND CHOICE OF LAW. a. PhysieaC Delivery. Except for the notice requesting mediation described in § 21, ahd except as provided in § 266 below, all notices must be in writing. Any notice to Buyer shall be effecti..ve when received by Buyer or by Selling Brokerage Firm, and any notice to Seller shall be effective wh~n received by Seller or Listing Brokerage Firrn. i b. Electronic Delivery. As an alternative to physical delivery, any signed document ~n~ written notice may be delivered in electronic form by the following indicated methods only:$'S Facsimile; t E-mail ^ None. Documents with original signatures shall be provided upon request of any party. i c. Choice of Law. This contract and all disputes arising hereunder shall be governed by ~an~ construed in accordance with the laws of the State of Colorado that would be applicable to Colorado residents who sign acoattact in this state for property located in Colorado. j 27. NOTICE OF ACCEPTANCE, COUNTERPARTS. This proposal shall expire unless accepte~ i, writing, by Huyer and Seller, as evidenced by their signatures below, and the offering party receives notice a acceptance pursuant to § 26 on or before Acceptance Deadline D9te (§ 2c) and Acceptance Deadline T)jrq~ 2c).w If accepted, this document shall become a contract between Seller and Buyer. A copy of ~hi docume~t,may be executed by each party, separately, and when each party has executed a copy thereof, s~rclcopiestakentogethershallbedeemedtobeafullandcompletecontractbetweentheparties. i Date:Date: Town of Vail, a Colorado Municipal Corp. Buyer ,by: Stanley Zemler Buyer 4ddress:S ` F d Address: Vail.Colorado 816 7 Phone N o.: ~7Q-47~-2106 Phone No.: Fax No.:97 - 7 - 15 7 Fax No.: NOTE:If this offer is being countered or rejected, do not sign this document. Refer to § 28~ Date: Date: Wend Vail Partneranrp, Ltn. Seller, by': Gary J. Miller, Managing Seller Partner Address; Post Office Box 1884 Address; Dillon, Colorado t3U4:i5 Phone No.: 970-468-7570 Phone No.: Fax No.: 970_468-6403 Fax No.: e~ 28. COUNTER; REJECTION. This offer is ^ Countered ^ Rejected. lnitiale only of party (Buyer or Seller) who countered or rejected offer END OF CONTRACT Note: Closing Instructions and Earnest Money Receipt should be signed on or before Title Deadline2c). i BROKER ACKNOWLEDGMENTS. The undersigned Brokers acknowledge receipt of the Ear a :. Money deposit specified in § 4 and, while not parties to the contract, agree to cooperate upon request i any mediation conducted under § 21. CBS 2-7-04 CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 9 of 10 ~I) Jh~ Is p.11 Rpr 12 2006 12: 31 PM Law Offices Of Gary S. Co 3038639595 p. 12 500 The Selling Broker is a ^ Buyer's Agent ^Transaction-Broker in this transaction. The Listing Broker is a ^ Seller's Agent OTransaction-Broker in this transaction. 503 504 BROKERS' COMPENSATION DISCLOSURE. 505 Selling Brokerage Firm's compensation or canntission is to be paid by ^ Listing Brokerage Firm 506 ^ Buyer ~] Other 507 '~ 508 (To be completed by Listing Broker) Listing Brokerage Firm's compensation or commission is to be paid t 509 ^ Seller ^ Buyer ^ Other slo s~sll 51 Z Selling Brokerage Firm's Name; 513 514 Dnte; S15 Broker 516 Address: 517 Phone No.: Fax No.: 518 519 520 Listing Brokerage Firm's Name: 521 522 Date; 523 Broker 524 Address: 525 Phone No.: Fax No.: e e.o IiS 2-0-tf4o CONTRACT TO Blll' AND SELL REAL ESTATE (COM1IDIERCIAL) Page 10 of 10 Rpr•~2 2006 12:32PM Law Offices Of Gar3 S. Co 3038639595 e ~,.o EXHIBIT A TO CONTRACT TO BUY AND SELL REAL ESTATE BETWEEN ll!~THE TOWN OF VAIL, A COLORADO MUNICIPAL CORPORATION ("BU . R") AND WEND VAIL PARTNERSHIP, LTD. ("SELLER") ! DATED APRIL 12, 2006 ~ I 1. To the extent of any inconsistency or conflict between the t~ ' of t Exhibit A and the terms of the Contract, the terms of this Exhibit A shall control 2. Buyer recognizes that Seller is not currently the record title o of th subject real property. Rather, Seller is currently a lessee of that property, wit ~ opti to purak~se it, which Seller has exercised. The closing date of this Contr c hall b 120 days from the date Buyer approves this Contract, provided, howev r, Sell r obtains record title to the subject real property prior ko the expiration of 12 ~ ys, th closing date shall, upon agreement of the parties, be moved to an earlier dot , . , 3. This Contract is expressly contingent upon Seller obtaining reC ~ ~ title 1 the subject real property within 120 days from the date of acceptance of this ~ ract ~ the Town of Vail. In the event Seller does not obtain record title to the s~u j;, ct re. property within said 120 days, then this Contract shall be null and void and furthE effect, and all earnest money shall be returned to Buyer. In addition, in the ~v ;,t of th failure of this contingency, Seller shall reimburse Buyer in the amount i ` ctuall incurred for the Phase II Environmental Assessment study and for title ~' surve expenses, in an amount not to exceed a total of $20,000. 4. This Contract is also expressly contingent upon the Buyer being tisfiE with the Phase II Environmental Assessment, which it shall obtain at its so e ' st ar expense (except as set forth in paragraph no. 3 of this Exhibit A). If B ` i$ n satisfied, then this Contract shall be null and void and of no further effe t, ' nd tt earnest money shall be returned to Buyer. ; e~° The parties acknowledge that the purchase price being paid y uyer allocated as follows: $1,500,000 for the land and building, and $500;000 t r bury Seller for various out of pocket expenses (including, by way of illustration o I ,~ for t~ fees, landscaping, retaining walls, and signage), as well as for Seder's furnit r , I ixturf and equipment. Buyer acknowledges that the cash registers currently Ioc t in tF building are not owned by Seller, and are not included in this purchas d sa transaction. p. 13 U Rpr 12 2006 12:32PM Law Offices Of Gary S. Co 3038639595 6. Upon closing, Seller shall lease back the property being tray Buyer for the period from the date of closing to March 31, 2007, at a mon 6,000 per month, double net, which shall be pro rated from the date of c parties acknowledge that the Town of Vail is not liable to pay property tax included in the monthly rental of $6,000 an allocation for what the property have been if owned by a private party and this was a triple net lease. 7. This contract is subject to Vail Town Council approval at 2006 ~e~ular meeting. 8. No real estate commission will be paid by or for the Town of 9. The earnest money will be delivered to Land Title within five d~ providing acceptable documentation showing ownership of the real property. TOWN OF VAIL By: Stanley Zemler WEND VAIL PARTNERSHIP By: Gary J. Miller, Managing e~ 2 i T wo 1 ~, r~ p. 14