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HomeMy WebLinkAbout1980-06 Amendment is required to the Definition of Maximum Resale Price by Resolution 19, 1979RESOLUTION NO. ~i, SERIES 1980 WHEREAS, it is the determination of the Town Council. of the Town of Vail, Colorado {the "Town") , that an amendment is required to the definition of "Maximum Resale Price" as established by Resolution No. 19, Series 1979, adopted on July 31, 1.979, in order to more nearly carry out the Town's purpose of restricting the resale price of units contained in an Approved Project (as defined in said Resolu- tion 19, Series 1979). NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COiJNCIL OF THE TOWN OF VAIL, COLORADO: Section 1. Section 7. (a) of Resolution 19, Series 1979, is hereby repealed, and the following Section 7. (a) is enacted and substituted in its place: a} In the event an owner shall desire to sell his financed residential unit, he shall notify the Town Clerk of the Town, or such other person .as designated by the Town Council of the Town {"Town Council") in writing of his inten~ Lion to sell his financed residential unit, and shall deposit with the Town Clerk the sum of .$300. The Town Clerk shall immediately notify the Town Council of such intent to sel•1 and the Town Council or other entity ar commission created by the Town Council shall have thirty (30) days in which to purchase the financed residential unit at the Maximum. Resale Price as hereinafter defined. If the Town Council or other entity or Commission created by the Tawn Council desires to exercise its option to purchase, it shall da so by notifying the owner in writing of its intention to purchase such unit within the 2- 30-day period, and shall thereafter proceed to close such transaction within fifteen days after the exercise of such option. If the Town Council or other entity or Commission created by the Town Council does not desire to purchase the financed residential unit or takes no action within the thirty (30) day period, or if such transaction does not close within fifteen days after the exercise of such option, through no fault of the seller, then the Town Clerk shall immediately advertise the financed residential unit for sale~for four {4} consecutive weeks in a newspaper located in the Town. Such sale shall be by competitive bid submitted by "Qualified.Pur- chasers" as hereinafter. defined, ar by an employer whose busi- ness is located within the Town of Vail ~("Employer"}. If an . Employer purchases a financed residential unit, it must pro- vide the Town with an opinion of bond counsel of recognized. standing in the fields of municipal law and municipal tax regulation that its purchase will not cause any of the Mort- gage Revenue Bonds to be considered industrial development bonds within the meaning of Section 103(b) of the Internal- Revenue Code of 1954, as amended. The owner may accept the highest bid after the last publication date; or, in the alter- native, reject all bids and retain ownership of the financed residential unit. Notwithstanding the above, an owner may sell his financed residential unit to a Qualified Purchaser without having the Town advertise the same, as long as he receives prior written consent from the~Town. . If the owner does not receive a bid in an amount equal to or greater-than the Maximum Resale Price within ninety {90) days of the last publication-date, then the owner shall be allowed to sell his financed residential unit on the "open market".and shall be deemed to have satisfied this Section 7{a). The transferee, his grantee s. or successors 3- i+ in Merest, however, shall bE~und by. the terms and cone tions of this Section 7(a} in the same manner and degree as if no transfer had occurred on the "open market." if the owner does~not sell his financed residential unit on the open. market within one hundred eighty (180) days of the last pub- lication date and if the owner still desires to sell his financed residential unit, he must again comply with the full terms and conditions of this Section 7(a). For the purpose of establishing the sales date in the preceding sentence, the recording date of the transfer deed shall be conclusive evi~ dence of the date of sale. If the owner rejects all bids, regardless of the dollar value of such bids, he shall forfeit his deposit. If the owner sells the financed residential unit to a Quali- fied Purchaser, as hereinafter defined, the Town, or an entity or commission created by the Town, or an employeY whose busi-- ness is located within the Town, then he shall pay the Town or its designee an amount equal to one percent {10} of the sales. price less the amount of deposit previously made. Such fees paid to the Town .s hall be for all advertising and administra- tive fees in connection with the sale of the financed residers- tial unit. Qualified Purchasers" shall be residents of the Town, who meet the qualifications, including the Maximum Household Yncome qualification, established annually by reso- lution of the. Town Council. The revision of the qualifications shall be limited to those changes reasonably necessary to limit the sale of the financed residential unit to purchasers. of low- and middle-income residing in the Town. Original Maximum 1 ~ 7 Household Income iimitations shall be defined arul established in the ordinance authorizing Mortgage P.cvenue Bonds. Such determination shall continue until changed by action of the Town Council. In no event shall any financed residential unit be sold, unless it is sold on the open market pursuant to the criteria set out above, for an amount in excess of the total of the following: 1) An amount calculated as follows: Owner's purchase price plus Owner's purchase price times a fraction, the numerator of which is the difference between the current index value at the time of sale and the index value at the time of purchase ("base index"), and the denominator of which is the average of the current index value at the time of sale and the base index. For the purposes of this subparagraph, the index value shall be the values established by the Consumer Price Index specified far All Items, All Urban Consumers for Denver, Colorado (Denver Revised CPI-U) (19b7=10Q) issued by tY-e United States Department of Labor, Bureau of Labor Statistics. If such index is no longer published, an index selected by the 's'own Council, shall be used to make the ad- justment rectuired herein. l!or the purposes of this subparagraph, the phraise "current index value at the time of sale" sha11 be the index value of the Consumer Price index which appeared most recently prior to the sale for which the maximum resale price must be determined. In formula form, the adjustment provided herein is as follows: Purchase price + purchase price X 1.5 X current index - base index base index + current index2 5- 2} The t~ue at tie time of sale of all capital improvements made to the financed resider-- tial unit plus the owner's pro rata share of the costs of those made to the common elements and assessecT to the owner. The value of the capital improvements shall be as determined by mutual agreement of the owner and Town or by an appraiser mutually acceptable to.~the owners and the Town. The cost of such appraisal shall be paid by the owner. 3} The cost of any public improvement for which assessments were imposed by any governmental ar quasi-governmental agency which have been paid during the period of ownership. The sum of~l, 2, and 3 above shall be the "Maximum Resale Price." In the event a bid is received equal to .or in excess of the Maximum Resale Price herein established, the financed residential unit shall be awarded to such bidder at said Maximum Resale Price. In the event two or more such bids are received, the winning bidder shall be selected by lottery and the financed residential unit shall be sold to him at no more than ,the Maximum Resale Price. Notwithstanding .the above, a Qualified Purchaser shall always have preference over an Employer as long as his bid is equal to or greater than the Maximum Resale Price or the Employer's bid, whichever is less. In the event two or mare bids are submitted which require the owner to take a promissory Hate as partial payment and no other Maximum Resale Price bids are received, then the owner may select the winning bidder at his sole discretion without the need of a lottery. Nothing herein, however, sha11 be construed to prevent the owner from rejecting all bids and retaining ownership of the financed residential unit. 6- J Section 2. If any :~tion, paragraph, clause o{~ provision of this Resolution shall for any reason be held to be inva~.id or unenforceable, the invalidity ox unenforcc?ability or such section, paragraph, clause, or provision sha11 not affect any of the remaining provisions of this Resolution. Section 3. This Resolution shall not be deemed to create any rights in any person other than the Town and may be amended by any Resolution subsequently adapted. Section 4. A11 bylaws, orders, and resolutions, or parts thereof, inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer shal-1 not be construed as reviving any bylaw, order, or resolution, or part thereof. Whereupon it was moved by Council Member and seconded by Council Member that all rules of the Town Council which might prevent, unless sus- pended, the final passage and adoption of said resolution at~ this meeting be, and the same hereby are, suspended for the purpose of permitting the final passage and adoption of said resolution at this meeting. The motion was put to a vote, the vote being as follows: Those Voting Yes: 41~~ ~ a~ 1 Those Voting No: .~"~C-~ Those Absent: ~@1~~ ~Yt--ti-~ 7- A motion to adopt the foregoing resolution was then duly made by Council Member ~.'~.. I.UC.~=~ and duly seconded by Council Member~2'~-lc.a(.. ~-dN.~7J'~~ was put to a vote, the vote being as follows: Those Voting X 5• Lx~ ~,~-e~V ` ccrc_.~ ! f~2~U~C~c~ f/~ ~~~ C~~-~ Those Voting No: •~~`?~~ Those Absent: Thereupon the Mayor declared said motion carried and said resolution duly passed and adopted. . After action on business not related to the foregoing resolution, on motion duly made, seconded and adapted, the meeting thereupon adjourned. c ~- Ma ar SEAL) ATTEST: Town Clerk g_ i STI~•1'E 4F COLORADO ~ ' COCiNTY QF EAGLE } SS. TOWN OF VAIL ) I, Colleen Kline, the duly qualified and acting Town Clerk of the Town of Vail, Colorado, do hereby certify: 1} The foregoing pages numbered 1 through 8, .inclusive, are a true, perfect, and com- plete copy of the.record of proceedings of the Town Council of the Town of Vail. had. and taken at a lawful regular meeting of the Council held at the Town Hall in Vail, Colorado, on Tuesday, March 18, 1980, com- . mencing at the hour of p.m., as recorded in the regular official book of the proceedings of the Town kept in my office, in which a resolution amending the definition of "Maximum Resale Price" as established by Resolution No. 19, Series 1979, was adopted. Said proceedings were duly had and taken as therein shown, the meeting therein shown was duly held, and the per- sons therein named were present at said meeting as therein shown. A quorum was present and acting through- out the meeting. The resolution has not been revoked, rescinded,'or modified, and is in full farce and effect on the date hereof. 2} All members of the Town Council were duly notified of said meeting, pursuant to law. IN WITNESS WI-IERNOF, I have hereunder set my hand a,,,n''d•• affixed the seal of the Town this day of Town Clerk - --- - 9- J