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19-89CClRESOLUTIONNO.19-89WHEREAS,theTownofEstesParkiscontemplatingconstructionofaConferenceCenteronpropertylocatedSouthandWestoftheHolidayInninEstesPark;andWHEREAS,theTownAdministratorandTownAttorneyhaveenteredintoaMemorandumofUnderstandingdatedJuly29,1989andanAddendumtoMemorandumofUnderstandingdatedSeptember7,1989,withRexMaughand/b/aForeverResortsoutliningthetermsandconditionsoftheleasingoftherealpropertyuponwhichtheConferenceCenterwillbebuilt,theconstructionoftheConferenceCenter,theserviceagreementforoperationoftheConferenceCenterandothermatterspertinenttotheConferenceCenter;andWHEREAS,theTownofEstesParkcontemplatesenteringintoanintergovernmentalagreementwiththeEstesParkUrbanRenewalAuthorityforthefinancingoftheConferenceCenter;andWHEREAS,theTownofEstesParkcontemplatesenteringintootheragreementsforthedesignandarchitecturalservicesfortheConferenceCenter.NOW,THEREFORE,BEITRESOLVEDbytheBoardofTrusteesoftheTownofEstesPark:1.TheBoardofTrusteesherebyratifiestheMemorandumofUnderstandingdatedJuly29,1989andtheAddendumtoMemorandumofUnderstandingdatedSeptember7,1989,betweentheTownofEstesParkandRexMaughand/b/aForeverResorts.TheappropriateofficialsandemployeesoftheTownofEstesParkareherebyauthorizedtoproceedtodraftallagreementsanddocumentsnecessarytocarryouttheprovisionsoftheMemorandumofUnderstandingandtheAddendumtoMemorandumofUnderstanding.2.TheTownofEstesParkherebyauthorizestheappropriateofficialsandemployeesoftheTowntoproceedwiththenegotiationofanintergovernmentalagreementbetweentheTownofEstesParkandtheEstesParkUrbanRenewalAuthorityinordertofinancetheConferenceCenter.3.TheTownofEstesParkherebyauthorizestheappropriateTownofficialsandemployeestonegotiateagreementsforthearchitecturalanddesignservicesfortheConferenceCenter.MayorATTEST:TownClerkep3/res2 CADDENDUMTOOUTLINEOFMEMORANDUMOFUNDERSTANDINGFrom:TownofEstesParkTo:RexMaughand/b/aForeverResortsRe:EstesParkConferenceCenterDate:September7,1989ThisAddendumamendstheOutlineofMemorandumofUnderstandingenteredintobythetownofEstesPark(hereinafterreferredtoas“Town”)andRexMaughand/b/aForeverResorts(hereinafterreferredtoas“Resorts”),executedonJuly29,1989.1.SubparagraphAofSection1,RealProperty,tobeamendedtoreadasfollows:1.A.ResortswillleasetotheTownortheEstesParkBuildingAuthority,approximately2.38acreslocatedSouthandWestoftheHolidayInn.Thepropertytolieleasedincludesthelandundereach‘ofthefollowingbuildings:thepresentTexacoStation,themetalwarehousebuilding,thetemporaryemployeehousing,andtheopenareafromtheTexacostationtoStanleyAvenue.Adequateset-backsfortheHolidayInnandtheHighCountrymotelwillremainwiththoseproperties.Theleasewillbeforaperiodof50yearswithrentalpaymentsasfollows:1-3years-$1.00peryear3-50years-anamounttobenegotiatedbetweenpartiesnottoexceedthefairrentalvalueoftheproperty.2.Section2,Financing,shallbeamendedtoreadasfollows: UFinancing.CTheTownshallobtainappropriatefinancingforconstructionandoperationoftheConferenceCenter.Theamountofmoneyraisedshallbeaminimumof$1,500,000.00.Thefinancingshallfollowthefollowingformat:A.TheEstesParkDowntownRedevelopmentProgram(hereinafterreferredtoasthe“UrbanRenewalPlan”),shallbeamendedbytheadditionofcertainrealproperty,adescriptionofwhichisattachedheretoasExhibit“A”.B.FollowingtheamendmentoftheUrbanRenewalPlan,theEstesParkUrbanRenewalAuthority(hereinafterreferredtoas“EPURA”),shallproceedtoissuetaxincrementbondsinthesumofapproximately$1,700,000.00.ThenetproceedsfromtheissueshallbemadeavailabletotheTownthroughanintergovernmentalagreementbetweentheTownandEPURAfortheconstructionandoperationoftheConferenceCenter.C.TheTownshallconstructtheConferenceCenteraccordingtotheplansandspecificationsoftheTown.Resortsshallbeconsultedinthepreparationofsaidplansandspecifications.D.TheTownshallenterintoanannualleasewithEPURAfortheConferenceCenter.E.Uponpaymentinfullofthetaxincrementbonds,EPURAshalltransferanyinterestitholdsintherealpropertyortheConferenceCentertotheTown.F.TheTownandEPURAwarrantthatnoliensorencumbrancesshallbeplacedontheleaseholdrealestatesite.3.Subparagraph0ofSection4,ServiceAgreement,shallbeamendedtoreadasfollows:—2— 04.D.TheServiceAgreementbetweentheTownandResortsshallbeIoraperiodoffive(5)yearswithnooptiontorenew.TheTownshallbeentitledtoterminatetheServiceAgreementattheendofthree(3)years.ThepartiesagreetoreviewtheServiceAgreementateachanniversarydateandifbothpartiessoagree,toextendtheServiceAgreementbyone(1)yearoneachanniversarydate.4.AnewsubparagraphFofSection4,ServiceAgreement,shallbeaddedasfollows:4.F.BeginningwiththefourthanniversarydateoftheServiceAgreement,includingallextensionsorrenewalsoftheServiceAgreement,ResortsshallpaytotheTownanannualfeefortheServiceAgreement.Saidfeeshallbenegotiatedbytheparties.5.Exceptassetforthabove,theOutlineofMemorandumofUnderstandingshallbeamendedbythereplacementoftheEstesParkBuildingAuthoritywiththeEstesParkUrbanRenewalAuthority.Date:l_/_/Iq(t(1REXMAUGHANd/b/aFOREVERTOWNOFESTESPARK(IDate:Gar’F.LlphJ4eTownAdministätorAppredstoform:_____0tDate:Gç,6goA.White)ównttorney 0CEXHIBITAEBTESPARKURBANRENEWALAUtHORITYADDITIONALPROJECTAREASEPTEMBER1989AtractoflandlocatedintheNW1/4ofSection30,T5N,R72W,LarimerCounty,Colorado,moreparticularlydescribedas:BESINNINGontheNorthright—of—waylineofNorthSaintVramAvenue(U.S.36)attheSoutheastcornerofLot44,LittleProspectMountainAdditiontotheTownofEstesPark;ThenceSoutheasterlyalongsaidNorthright—of—waylinetotheWestright—of—waylineofFirstStreetextendednortherlytointersectsaidNorthright—of—wayline;ThenceSouthwesterlyalongsaidWestright—of—waylineextensiontotheSouthright—of—waylineofNorthSaintVramAvenue(U.S.36)andtheEastcornerofLot1,Block1,ReclamationSubdivision;ThenceNorthwesterlyandcounter—clockwisealongtheperimeterofsaidLot1totheEastright—of—waylineofSouthSaintVramAvenueCS.H.7);ThenceSoutheasterlyalongsaidEasttight—of—waylinetotheSouthright—of—waylineofDunravenStreetextendedeasterlytointersectsaidEastright—of—wayline;ThenceWesterlyalongsaidSouthright—of—waylineextensionanditswesterlyextensiontotheWesttight—of—waylineofStanleyAvenue;ThenceNorthwesterlyandNortherlyalongsaidWestright—of—waylinetotheSouthright—of—waylineofNorthSaintVramAvenue(U.S.36);ThenceNorthwesterlyalongsaidSouthtight—of—waylinetoapointwhichbears545°00’00L4fromtheSoutheastcornerofLot44,LittleProspectMountainAddition;C’ThenceN4500OOEtosaidSoutheastcornerofLot44,LittleProspectMountainAddition. ADDITION0-----—EEEEEJcEEEJ‘ZZ]10111I‘ 0July31,19890REXMAUGHANP.OBox29041Phoenix,AZ85038TOWNOFESTESPARKP.O.Box1200EstesPark,CO80517TheundersignedherebyagreetothetermsandconditionsoftheattachedOutlineofMemorandumofUnderstanding.TheyfurtheragreetopursuethedraftingandexecutionofanagreementincorporatingthetermsandconditionsoftheattachedOutlineofMemorandumofUnderstanding.REXMAUG]By:C--TOWNOFESTESPERKBy:Gai?’F.KlapI7áeTownAdminisrtorApprovedastoform:By:7./GregqyA.White,/Tow/Attorneyd/b/aFOREVERRESORTS 0C:OUTLINEOFMEMORANDUMOFUNDERSTANDINGFrom:TownofEstesParkTo:RexMauglian,d/b/aForeverResortsRe:EstesParkConferenceCenterThefollowingisalistingofconceptstobeincorporatedinaMemorandumofUnderstandingbetweentheTownofEstesPark,hereinafterreferredtoas“Town”,andRexMaugliand/b/aForeverResorts,hereinafterreferredtoas“Resorts”,concerningtheconstructionandoperationofaConferenceCenterlocatedsouthoftheHolidayInninEstesPark,Colorado.1.RealProperty.A.ResortswillleasetotheTownortheEstesParkBuildingAuthority,approximately2.38acreslocatedSouthandWestoftheHolidayInn.Thepropertytobeleasedincludesthelandundereachofthefollowingbuildings:thepresentTexacostation,themetalwarehousebuilding,thetemporaryemployeehousing,andtheopenareafromtheTexacostationtoStanleyAvenue.Adequateset-backsfortheHolidayInnandtheHighCountryMotelwillremainwiththoseproperties.Theleasewillbeforaperiodoffifty(50)yearsatone(1)dollarperyear.B.TheTexacostationwillberazedbyResorts.Resorts,intheprocessofrazingtheTexacostation,shallremoveallpetroleumstoragetanksinconformancewithcurrentundergroundstoragetankregulationsoftheEnvironmentalProtectionAgencyand1 0.0UtheStateoColorado.ThemetalwarehouseshallberefacedbyResortsS44becompatiblewiththefinaldesignoftheD.TheConferenceCentershallbedesignedtoincludeexpansionofthefacility.Incaseofthisfutureexpansion,Resortsshallremovethetemporaryemployeehousingandthemetalwarehouseatthattime.E.ThegroundleaseshallcontainaprovisionrequiringthatuponanytransferoftheTown’sortheAuthority’sleaseholdinteresttoathirdparty,ResortsshallhavefirstrightofrefusaltoacquireConferenceCenter,orResortsshallbepaidfairmarketvalueoftheland,orbepaidfortheremainingtermofthegroundleaseatthefairmarketvalueofthesite,lessthevalueoftheimprovements,atResortsoption.Thepartiesshallagreeastoanequitablemethodofdeterminingthefairmarketvalue.2.Financing.TheTownshallarrangeforappropriatefinancingfortheconstructionandoperationoftheConferenceCenter.Theamountofmoneyraisedthroughthefinancingshallbeaminimumof$1,000,000.00.Thefinancingshallfollowthefollowingformat:A.TheEstesParkBuildingAuthorityshallbecreatedpursuanttotheapplicableprovisionsoftheColoradoNon-ProfitCorporationAct.B.TheTownshalltransferitsleaseholdinteresttotheBuildingAuthority.2ConferenceCenter. C,0C.TheBuildingAuthorityandtheTownshallenterintoaconstructionagreementforconstructionoftheConferenceCenter.D.TheTownshallconstructtheConferenceCenteraccordingtotheplansandspecificationsoftheTownandtheBuildingAuthority.Resortsshallbeconsultedinthepreparationofsaidplansandspecifications.E.Aspartofthefinancingprocess,theTownshallenterintoanannualleaseoftheConferenceCenterfromtheBuildingAuthority.F.TheBuildingAuthorityshallissuecertificatesofparticipation(COPS),pursuanttotheaboveplan.TheCOPSshallbepayableoveratwenty(20)yearperiodwiththeannualleasepaymentsoftheTownequaltoprincipal,interest,maintenance,administrative,trustee,andreservepayments.G.UponpaymentinfulloftheCOPs,theBuildingAuthorityshalltransfertheleaseholdinterestbacktotheTown.H.TownandBuildingAuthoritywarrantsthatnolienorencumbranceshallbeplacedonleaseholdrealestatesite.3.ConferenceCenter.TheConferenceCentershallbedesignedpursuanttoplansandspecificationsacceptabletotheTownandtheBuildingAuthority.Resortsshallbeconsultedduringthedesignprocess.TheTownshallhireanarchitectfordesigningoftheConferenceCenter.TheBuildingAuthorityandResortsshallbeconsultedinthehiringofthearchitect.Thedesignshallincorporatethefollowingconcepts:3 00A.TheConferenceCentershallbeapproximately12,000squarefeet.B.TheexteriorfacingoftheConferenceCentershallbecompatiblewiththesurroundingareaandtheHolidayInn.C.TheConferenceCentershallcontainsuchamenitiesassoundsystems,lighting,audio-visualfacilities,equipmentandeswhichare“state—of—the-art”,inadditiontoallinteriormeetingroomfurnishings.D.TheConferenceCentershallbeconstructedbytheTownaccordingtotheplansandspecifications.TheBuildingAuthorityshallberesponsibleforthepaymentofallconstructioncostsfromthefinancing.TheConferenceCentershallbereadyforoccupancyonorbeforeSeptember1,1990,subjecttoanynecessarydelaysduetoconditionsbeyondthecontroloftheTownand/ortheBuildingAuthority,includingbutnotlimitedtofinancing,design,weather,legalandconstructionproblems.4.ServiceAgreement.TheTownandResortsshallenterintoaserviceagreementforoperationoftheConferenceCenter.A.Resortsshallberesponsibleforthefollowingitems:Housekeeping;Dailymaintenance;Snowremovalandlandscapingupkeep;Conferenceregistration;Hostservices;Security;InventoryofFood&BeverageserviceitemsAllnecessarylicenses,permitsfortheoperationofFood&Beverageservices,andpayrolltaxes.TheTownshallprovideacapitalimprovementsbudgetforrepairand4 00replacements.B.ResortsshallprovidefacilitiesforfoodandbeverageservicetotheConferenceCenter.Inreturn,ResortsshallreceiveexclusiverightstothefoodandbeverageconcessionoftheConferenceCenter,subjecttotheTownperiodicallyreviewingthecostofthefoodandbeverageservicetodeterminethatthecostoftheserviceisreasonable.C.TheTownshallhavetherighttoperiodicallyreviewResorts’performanceunderthetermsandconditionsoftheserviceagreement.Tofacilitatethisreview,Resortsshallprovidethirdpartycostcomparisonstoitsoperationspursuanttotheserviceagreement.TheserviceagreementshallcontainprovisionssimilartoResorts’currentconcessionagreementswiththeNationalParkServicespecifyingstandardsandproceduresforreviewingResorts’performanceofitsobligationsundertheserviceagreement.D.TheserviceagreementbetweentheTownandtheResortsshallbeforaperiodoften(10)yearswithanoptiontorenew.Eitherpartyshallbeentitledtoterminatetheagreementupondefaultoftheotherparty.E.Duringthetermoftheserviceagreement,ResortsshallnottransferitsinterestintheHolidayInntoanyotherpartywhodoesnotmeettheownershiprequirementsofHolidayInns,Inc.oracomparablestandard.NosuchrestrictionsshallberequiredforatransferbyResortsofitsassetstoanycorporationorpartnershipcontrolledbyRexMaughan.IfResortstransfersits5jZ/ 00interestintheagreement,thetransfereeshallbeentitledandsubjecttoalloftherightsandobligationsofResortsintheagreement.5.Marketing.A.TheTownshallberesponsibleformarketingoftheConferenceCenter.TheTownagreestoemployafull—time,qualified,experiencedmarketingpersontomarkettheConferenceCenter.ThispersonshallbeemployedonorbeforeJanuary1,1990.B.ItistheunderstandingofResortsandtheTownthattheHolidayInnwillnothaveexclusiveaccommodationrightsforConferenceCenterparticipantswhowillbeentitledtopursueaccommodationsoftheirownchoiceintheEstesParkarea.However,theTownandResortsagreetocooperateintheprovidingofaccommodationsattheHolidayInnsubjecttotheaboveunderstanding.Resortsalsoagreesthat,foreventsthatareofappropriatesize,itwillcooperatewiththeTowninprovidingfacilitiesatamarketrateforthoseeventsinwhichboththeHolidayInnandtheConferenceCenterareneededtoaccommodatethenumberofparticipantsattheConferenceCenter.6.Miscellaneous.A.TheTownshallinsuretheConferenceCenterforcasualtylosses.Also,theTownshallcarryliabilityinsuranceontheConferenceCenter.Resortsshallprovideliability,worker’scompensationandunemploymentinsuranceinanamountand6 0formacceptabletotheTownforitsoperationsundertheserviceagreement.AnypropertytaxesonimprovementswillbepaidforbytheTownandthereshallbenorealestatetaxestoResortsonleasedlandforperiodoflease.B.IntheeventtheTownceasesoperationofConferenceCenterduringthetermofthelease,ResortsshallhavetherighttooperatetheConferenceCenterunderareasonablelease,basedonthegrosssalesofFood&BeverageintheConferenceCenter,ortopurchasetheConferenceCenteratitsfairmarketvalue,exclusiveofanyrealestateinterestorvalueandsubjecttocompliancewithallapplicablerecpiirementsoftheCOPfinancialdocuments.ep2/fr2;kegrevised:7/31/897