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HomeMy Public PortalAboutRES-CC-2006-22Resolution #22-2006 A RESOLUTION APPROVING THE AGREEMENT CONCERNING THE USE OF THE REAL ESTATE TRANSFER ASSESSMENT BY AND BETWEEN THE CITY OF MOAB, THE GONZO LAND COMPANY LLC AND THE GONZO CONDOMINIUM OWNERS ASSOCIATION, INCORPORATED WHEREAS, the attached Agreement concerning the use of the Real Estate Transfer Assessment provides for the collection and remittance of a Real Estate Transfer Assessment by the Gonzo Condominium Owners Association, Incorporated; NOW THEREFORE, WE THE GOVERNING BODY of the City of Moab do hereby approve the attached Agreement in substantially the form presented to this meeting of the Moab City Council and authorize the appropriate officials to execute and deliver said agreement. PASSED AND APPROVED in open Council by a majority vote of the Governing Body of Moab City Council on September 5, 2006. SIG David L. Sakrison, Mayor EST: adaiijck„.., Rachel Ellison, Recorder Resolution #22-2006 Page 1 of 1 AGREEMENT CONCERNING THE USE OF THE REAL ESTATE TRANSFER ASSESSMENT (THE GONZO CONDOMINIUMS) 11 THIS AGREEMENT ("Agreement") is made effective as of SeptembeP1', 2006 ("Effective Date") by and between The Gonzo Land Company, LLC, a Colorado limited liability company ("Declarant"), The Gonzo Condominiums Owners Association, Inc., a Utah nonprofit corporation ("Association") and the City of Moab, Utah ("City"). The Parties agree as follows: 1. De larant has caused, a certain Condominium Declarta�ion for The Gonzo Condominiums to be recorded oe� 1-S`, 2006 in Reception No. (113 1/ (o ("Declaration') and a certain Condominium Map for The Gonzo Condominiums to be recorded on St aS' , 2006 in Reception No. L}r}3cj j r ("Map"). 2. Pursuant to the Declaration, Declarant caused the Association to be formed in accordance with applicable law and for purposes stated in the Declaration. 3. The Gonzo Condominiums consists of certain Residential Units as depicted on the Map and existing in accordance with the Declaration. 4. The Declaration provides for the imposition and collection of a certain Real Estate Transfer Assessment in the amount of one percent of the purchase price of a Residential Unit ("RETA") which is to be paid and collected at closing of the sale or transfer of each Residential Unit, unless the transaction is entitled to an exemption from the payment of the RETA as stated in the Declaration. 5. The parties acknowledge and agree that this Agreement is entered into voluntarily, and not as a result of any requirement imposed by the City as a condition for land use approval or the approval of any construction or development activity. It is further agreed that the RETA, as specified above, constitutes a special assessment applicable to transfers of real property for the purposes of curing deficiencies in existing public facilities and addressing future public needs. 6. The Association agrees to assess and pay to the City, and the City agrees to receive, a RETA in the amount of one half of one percent (.5%) of the gross proceeds of all non-exempt transfers (as defined in the Declaration) of real property subject to the Declaration. All such proceeds will be paid by the Association to the City within 30 days of each closing. 7 The Association shall interpret and enforce the Declaration with respect to the collection of the RETA and the granting or withholding of an exemption from the RETA. The Association agrees to provide to the City an accounting substantiating all RETA income on an annual basis. 8. The City agrees to use the RETA proceeds only for: (a) the purpose of creating affordable employee housing for employees in the Moab region and/or (b) the purpose of acquiring, constructing, maintaining and/or repairing trails in the Moab region. 9 Miscellaneous. 9.1 The rights, duties and obligations of the Parties shall be binding upon and shall inure to the benefit of, and be a burden upon, the heirs, designees, successors and assigns of the undersigned Parties. This Agreement may not be assigned in whole or in part by a party without the express written consent of the other parties. This Agreement R:\2006Wgreements'.Gonzo RETA Agreement.doc Page 1 of 6 shall inure to the benefit of and be binding upon any successors or permitted assigns of the parties. 9.2 Time is of the essence of this Agreement and for the performance of each of the duties and obligations provided herein. In entering into this Agreement, the Parties acknowledge and agree that they will perform their duties and obligations in a commercially reasonable manner and in good faith and that this commitment is being relied upon by each other Party. 9.3 This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and all prior agreements, representations, statements, negotiations and undertakings are superseded by this Agreement. This Agreement may not be modified or amended except in writing signed by all the Parties hereto. The parties to this agreement are defined on the signature pages, below. There are no known or intended third party beneficiaries under this Agreement. 9.4 In the event of an alleged default hereunder, the Party alleging the default shall send written notice to the Party allegedly in default stating the grounds for the alleged default and the specific steps that the defaulting party must take to cure the alleged default. The alleged defaulting party shall have seven (7) days to cure the default. 9.5 All notices, demands or writings in this Agreement provided to be given or made or sent that may be given or made or sent by either party hereto to the other, shall be deemed to have been fully given or made or sent when made in writing and delivered either by Fax, Email or United States Mail (certified, return receipt requests and postage pre -paid), and addressed to the party, at the below stated mailing address, email address or fax number. The mailing address, email address or fax number to which any notice, demand or writing may be changed by sending written notice to each Party notifying the party of the change. Declarant: City: Association: The Gonzo Land Company, LLC 187 Aldasoro Road Telluride, Colorado 81435 Phone: (970) 728-5474 Fax: (970) 728-6217 Email: mhbadger@aol.com City of Moab, 217 East Center Street Moab, Utah 84532 Phone: (435) 259-5121 Fax: (435) 259-4135 Email: donna@moabcity.org The Gonzo Condominiums Owners Association, Inc. 187 Aldasoro Road Telluride, Colorado 81435 Phone: (970) 728-5474 Fax: (970) 728-6217 Email: mhbadger@aol.com With a Copy to With a Copy to With a Copy to Thomas G. Kennedy, Esquire P.O. Box 3081 Telluride, CO 81435 Phone: (970) 728-2424 Fax: (970) 728-9439 Email: tom(a_ tklaw.net Christopher G. McAnany, Dufford, Waldeck, Milburn & Krohn, LLP 744 Horizon Court, Suite 300 Grand Junction, CO 81506 Phone: (970) 241-5500 Fax: (970) 243-7738 Email: mcanany@dwmk.com Thomas G. Kennedy, Esquire P.O. Box 3081 Telluride, CO 81435 Phone: (970) 728-2424 Fax: (970) 728-9439 Email: tom@tklaw.net 9.6 This Agreement shall be governed by the laws of the State of Utah without reference to any choice of laws provision contained therein. The sole jurisdiction and venue for any action arising with respect to this Agreement shall be a court of competent jurisdiction located in Grand County, Utah. In the event of litigation arising from a R:\2006\Agreements\Gonzo RETA Agreement.doc Page 2 of 6 dispute under this Agreement, the prevailing party shall be entitled to recover its costs and expenses, including reasonable attorney fees. A Party may pursue all remedies provided for under Utah law in the event of a default under this Agreement, including specific performance and injunctive relief. 9.7 If any provision of this Agreement shall be found invalid or unenforceable, this shall not affect the validity of the remaining provisions of this Agreement, and the remaining provisions shall remain in full force and effect. 9.8 This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document. Facsimile copies of any Party's signature hereon shall be deemed an original for all purposes of this Agreement. 9.9 This Agreement shall only terminate upon mutual agreement of all parties or upon the termination of the Declaration. R:\2006\Agreements1Gonzo RETA Agreement.doc Page 3 of 6 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. The Gonzo Land Company, LLC, a Colorado limited liability company Akehet By: Printed Name: /el? /'/'/ Title: STATE OF )§ COUNTY OF Date: 0b akChsitee 44-Ceirci&e- This document acknowledged before me this 1 day of6- , 2006 by as th of The Gonzo Land Company, LLC, a Colorado limited liability company. Witness.mY hand and official seal. Notary Public r 7 " � � Not ry Mbl ' °� � CHRISTINE E. GREEN _r ''i 150 East 100 North ~ Moab. Utah 84532 ktres *. My Commission t3E008Li * Mo• State of Utah .4 6—........® 1 R:\2006\Agreements\Gonzo RETA Agreement.doc My commission expires: ��.3/ iGg Page 4 of 6 The Gonzo Condominiums Owners Association, Inc., a Utah nonprofit corporation By: 446, Printed Name: 0/77C.,4--/ (" :ti--- Title: STATE OF �" ) )§ COUNTY OF Date: V This document was acknowledged before me this< < �-}(, day of , 2006 by int06n as the YrLA of The Gonzo Condominiums Owners Association, Inc.. L/ Witness my hand and official seal. Notary Public r r N oPTyB otaryry no1 CHRISTINE E. GREEN 1 g 3 ( 150 East 100 North i 0 My commission oab, Utah Wires State of Utah A R:\2006\Agreements' Gonzo BETA Agreement.doc My commission expires: Ft 3 Vag Page 5 of 6 The City Moab, Utah By: 0,4 Printed Name: David Sakrison Title: Mayor STATE OF u ) CO§ C COUNTY OF raiv•-ei ) Date: This document was acknowledged before me this 101y of the Mayor of The City of Moab, Utah. itness my hand and official seal. (,----; Notary Public 2006 by David Sakrison as My commission expires: Lp 30 — a 010 �-1t--d60 Rachel Ellison, City Recorder Date R:2006\Agreements\Gonzo RETA Agreement.doe Page 6 of 6