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Home My WebLink Aboutbocc.ord.010.2000 AN EMERGENCY ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO APPROVING COUNTY FINANCING OF ASPEN VALLEY LAND TRUST ACQUISITION OF A PORTION OF THE RYAN PROPERTY ORDINANCE #00-010-004 e RECITALS 1. The Pitkin County Open Space and Trails Board of Trustees is charged with the responsibility of acquiring open space properties within Pitkin County, and; 2. The Pitkin County Open Space and Trails Board of Trustees has designated certain types of properties as priority acquisitions, with inholdings surrounded by public lands as one of the priorities. 3. The Ryan parcel is an inholding within the White River National Forest and is possessed of outstanding scenic values. 4. The parcel is adjacent to the Cathedral Lake Trailhead and upper Castle Creek road which is not plowed in winter and is a very popular nordic skiing access to the Pearl Pass area of the White River National Forest. 5. Because of the parcel's proximity to the historic mining town of Ascroft and Toklat, which just celebrated its 50' year as a iacal landmark, and its inclusion of historic sites used by the 10' Mountain Division during Wppd War Two, the Ryan parcel is important to the cultural heritage of Pitkin County. 6. Joint acquisition by the Pitkin County Open Space and Trails Program and the Aspen Valley Land Trust ("AVLT") will facilitate a land swap with the federal government and will therefore enable permanent protection of the Ryan Parcel. 7. On September 16, 1999 the Board of Open Space Trustees passed resolution 99-04 recommending an expenditure of up to $1,250,000.00 for the purchase of an interest in the Ryan Parcel, which combined with an interest in the parcel to be acquired by the AVLT, will vest the entire ownership in the buyers. The Federal Government is prepared to initiate a swap with Pitkin County whereby the County's $1.25m interest in the Ryan parcel would be exchanged for BLM parcel #79, a 40 acre isolate on the Crystal River with outstanding open space qualities. I 8. On October 7, 1999, the Board of County Commissioners adopted Ordinance 99-42 which authorized the execution of a joint purchase contract for the Ryan Parcel. The resulting contract was signed by the Board Chair on October 13, 1999. 9. AVLT must borrow funds needed to finance the acquisition of its $1.75m interest in the Ryan parcel, and must carry this loan until its costs are recouped through sale of the Devaney Parcel, which the USFS intends to trade for AVLT's Ryan interest. This swap is projected to take two years to complete. AVLT has a limited ability to finance this acquisition through a commercial lender. At a minimum, such financing would require a divided interest in the Ryan Parcel prior to the issuance of the loan, and would require AVLT to pursue maximum possible development on the Devaney Parcel to recoup its costs at a commercial lending rate. Commercial financing of AVLT's Ryan acquisition is problematic also because time is of the essence to the current landowner to make complete this sale as soon as possible, which limits the County's ability to consider a Ryan parcel split and Devaney approvals in a thorough manner. 10. The Pitkin County Attorney's Office has determined that Article XIII of the County's Home Rule Charter authorizes the County to loan funds from the Open Space Fund to facilitate the protection of Open Space of significant public value, based on the acquisition of a security interest and contingent conservation easement over AVLT's interest in the Ryan parcel. NOW THEREFORE BE IT ORDAINED BY COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO, AS FOLLOWS: That the Board of County Commissioners approves a loan of $1.75 million to the Aspen Valley Land Trust for the purchase of a part interest in the Ryan parcel pursuant to the existing purchase contract, pursuant to the following terms and conditions. 1. The County will loan such funds at the same government interest rate by which the funds would be available to the County. 2. The loan agreement will provide that in the event that AVLT is unable to complete an exchange of its Ryan interest for the Devaney Parcel, or otherwise elects to sell such interest to any party other than the United State Forest Service, at the County's option and subject to a recommendation from the Open Space Board of Trustees, AVLT will either convey a conservation easement over its portion of the Ryan parcel which restricts winter access to over the snow means, or shall convey it's 2 portion of the Ryan parcel to Pitkin County in return for elimination of the loan. A conservation easement deed and a deed of AVLT's interest in the Ryan parcel from AVLT to Pitkin County shall be deposited in escrow at the loan closing. 3. In the event the federal land trade is successful and AVLT takes title to the Devaney Parcel, AVLT shall agree that at the County's option, subject to a recommendation of the Open Space Board of Trustees, AVLT will either a. seek to sell the Devaney Parcel subject to restrictions on its development which allows no greater level of development than is necessary to repay the loan plus AVLT's actual costs, which includes the following; out of pocket expenses incurred in the ownership, sale, and acquisition of land use approvals for the Devaney Parcel; including, but not limited to: interest expense, real estate brokerage fees, planning fees and expenses, legal expenses and insurance, and an administrative fee of $100,000, or b. shall further restrict development of the Devaney Parcel through a conservation easement in return for whole or partial forgiveness of the then outstanding balance of the loan, and whole or partial repayment for AVLT actual costs. C. assign its ownership of the Devaney parcel to Pitkin County in return for forgiveness of the loan and repayment of AVLT's actual costs. 4. The agreement period shall not exceed three years from the date of execution. At the end of this agreement, AVLT, at its sole discretion shall deed to Pitkin County, and Pitkin County shall accept, all rights in the Ryan Parcel and/or the Devaney Parcel that it owns as of that date and shall be forgiven for the then outstanding balance of the loan including interest. Pitkin County and AVLT may extend the terms of the loan for additional time periods by mutual consent. That the Chair is authorized to execute a Loan Agreement, Promissory Note and Deed of Trust between the County and AVLT following approval of the form of those documents by the County Attorney's office, and is authorized to execute such other documents as may be necessary to finalize this transaction. That the Board of County Commissioners hereby declares its official intent to reimburse current expenditures from a future issuance of Pitkin County general obligation bonds. The current expenditures to be reimbursed include the purchase price, loan and other acquisition costs for the Ryan parcel, and the maximum amount of bonds expected to be issued for this project is $3,500,000. That because the closing date in the purchase contract has been repeatedly extended and the landowner is very anxious to avoid additional carrying costs, the purchase must 3 r be completed as soon as possible, this ordinance shall become effective immediately upon adoption at first reading. INTRODUCED, FIRST READ, AND APPROVED ON THE DAY OF JANUARY 26, 2000. NOTICE OF CONFIRMATORY READING P PAS DIN THE WEEKEND EDITION OF THE ASPEN T1ME ONJ�DA OF �f�FNiwG da.. g- -rU G�ul2uGlln'eu/� REAFFIRMED CONFIRMATORY READING AT PUBLIC MEETING ON THE 9�5/let OF 1 2000. PUBLISHED AF1TR�A�O)�N IN THE WEEKEND EDITION OF THE ASPEN TIMES ON THE, , DAY OF FEBRUARY, 2000. ATTEST: BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO (Ij Je ette Jones Ahellie Roy ar er D40uty Clerk Chair APPROVED AS TO FORM: Deborah Quinn Assistant County A orney County Manager Dale Will, Director Open Space and Trails Program 4