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IRONBRIDGE SUBDIVISION AFFORDABLE HOUSING AGREEMENT
This AF ORDABLE HOUSING AGREEMENT (hereinafter "Agreement") is made this
i� day of 2016, by and between the BLUE HERON DEVELOPMENT
COMPANY (the " wner"), GARFIELD COUNTY HOUSING AUTHORITY ("GCHA") and
BOARD OF COUNTY COMMISSIONERS OF GARFIELD COUNTY, COLORADO
(hereinafter "BOCC").
RECITALS
WHEREAS, the Owner is the developer of the Ironbridge Phase III Subdivision (the
"Subdivision"), which is the property depicted on the Final Plat of Ironbridge Subdivision Phase
111, Filing 1 ("Final Plat").
WHEREAS, on December 10, 2007, the BOCC, by Resolution No. 2008-42 approved a
preliminary plan for the subdivision which, among other things, created 61 single-family and
open space common area parcels.
WHEREAS, on September 21, 2015 the BOCC approved the Phase III, Filing 1 Final
Plat for 34 Lots.
WHEREAS, as a condition of approval of the Final Plat submitted to the BOCC, Owner
was required to complete six (6) affordable housing units in fulfillment of the Ironbridge PUD
affordable housing requirements for all of Phase III.
WHEREAS, Owner had submitted an Affordable Housing PIan attached as Exhibit B
and which is incorporated herein. •
WHEREAS, Owner has entered into an agreement for the sale of the Sanitation Parcel
(TBA "Parcel A") as shown on the Final Plat Phase III Filings 1, 2 and 3 with the Roaring Fork
School District ("RFSD").
WHEREAS, the Owner and the BOCC (together the "Parties") wish to enter into this
Agreement whereby the last six (6) affordable units for the Ironbridge PUD shall be transferred
to the Roaring Fork School District in fulfillment of the affordable housing obligations of the
Ironbridgc PUD.
NOW THEREFORE, in consideration of the foregoing recitals on the mutual covenants
and promises contained herein the parties agree as follows:
1. Owner shall on or before, July 1, 2017 have completed construction of six
affordable housing units on the Sanitation Parcel in the Ironbridge PUD.
2. The units described in Paragraph 1 shall be owned by RFSD and shall be
occupied by RFSD employees subject to the deed restriction attached hereto as Exhibit A.
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3. The completion and transfer of the six units to RFSD shall fulfill all remaining
affordable housing requirements of the Ironbridge PUD as approved.
4. Owner has filed an application to amend the PUD to acknowledge the inclusion of
the final six (6) affordable housing units on-site and shall complete on or before March 3I, 20I7
a PUD Amendment acknowledging the inclusion of the six affordable units in the Ironbridge
PUD.
5. The Parties acknowledge that construction of the affordable units on the
Sanitation Parcel may commence on approval of the PUD Amendment, application number
PUAA-06-16-8465; and Amended Final Plat, application number FPAA-06-16-8466.
6. In the event that RFSD does not purchase the Sanitation Parcel, Owner shall
complete six (6) affordable units and offer them for sale pursuant to the Garfield County Land
Use and Development Code affordable housing guidelines.
7. INDEMNITY. The Owner shall indemnify and hold the BOCC harmless and
defend the BOCC from all claims which may arise as a result of any obligation of Owner, related
to development of the Affordable Housing, required pursuant to this Agreement. The Owner,
however, does not indemnify the BOCC for claims made asserting that the standards imposed by
the BOCC are improper or the cause of the injury asserted, or from claims which may arise from
the negligent acts or omissions of the BOCC or its employees. The BOCC shall notify the
Owner of receipt by the BOCC of a notice of claim or a notice of intent to sue, and the BOCC
shall afford the Owner the option of defending any such claim or action. Failure to notify and
provide such written option to the Owner shall extinguish the BOCC's rights under this
paragraph. Nothing in this paragraph shall be construed to constitute a waiver of governmental
immunity granted to the BOCC by Colorado statutes and case law.
8. BREACH OR DEFAULT OF OWNER. A "breach" or "default" by Owner
under this Agreement shall be defined as Owner's failure to fulfill or perform any material
obligation of Owner contained in this Agreement. In the event of a breach or default by Owner
under this Agreement, the County shall deliver written notice to Owner of such default, at the
address specified in paragraph 13 below, and Owner shall have sixty (60) days from and after
receipt of such notice to cure such default. If such default is not of a type that can be cured
within such 60 -day period and Owner gives written notice to the County within such 60 -day
period that it is actively and diligently pursuing such cure, Owner shall have a reasonable period
of time given the nature of the default following the end of such 60 -day period to cure such
default, provided that Owner is at all times within such additional time period actively and
diligently pursuing such cure.
9. BREACH OR DEFAULT OF COUNTY. A "breach" or "default" by the
County under this Agreement shall be defined as the County's failure to fulfill or perform any
material obligation of the County contained in this Agreement. In the event of a breach or
default by the County under this Agreement, Owner shall have the right to pursue any
administrative, legal, or equitable remedy to which it may by entitled.
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10. ENFORCEMENT. In addition to any rights provided by Colorado statute, it is
mutually agreed by the BOCC and the Owner, that the BOCC, without making an election of
remedies, shall have the authority to bring an action in the Garfield County District Court to
compel enforcement of this Agreement. Nothing in this Agreement, however, shall be
interpreted to require the BOCC to bring an action for enforcement or to withhold permits or
certificates nor shall this paragraph or any other provision of this Agreement be interpreted to
permit the purchaser of a lot to file an action against the BOCC.
11. NOTICE BY RECORDATION. This Agreement shall be recorded in the
Office of the Garfield County Clerk and Recorder and shall be a covenant running with title to
the Sanitation Parcel. Such recording shall constitute notice to prospective purchasers and other
interested persons as to the terms and provisions of this Agreement.
12. SUCCESSORS AND ASSIGNS. The obligations and rights contained herein
shall be binding upon and inure to the benefit of the successors and assigns of the Owner and the
BOCC.
13. CONTRACT ADMINISTRATION AND NOTICE PROVISIONS. The
representatives of the Owner and the BOCC, identified below, are authorized as contract
administrators and notice recipients. Notices required or permitted by this Agreement shall be in
writing and shall be effective upon the date of delivery, or attempted delivery if delivery is
refused. Delivery shall be made in person, by certified return receipt requested U.S. Mail,
receipted delivery service, or facsimile transmission, addressed to the authorized representatives
of the BOCC and the Owner at the address or facsimile number set forth below:
Owner:
w/copy to:
BOCC:
Blue Heron Development Company
Attn: James W. Light or John Young
430 Ironbridge Drive
Glenwood Springs, CO 81601
Phone: 970-384-0630
Fax: 970-384-0634
Karl 1. Hanlon
Karp Neu Hanlon, PC
P.O. Box 2030
Glenwood Springs, CO 81602
Phone: 970-945-2261
Fax: 970-945-7336
Garfield County Board of County Commissioners
Attn: Community Development Director
108 Eighth Street, Suite 401
Glenwood Springs, Colorado 81601
Phone: (970) 945-8212
Fax: (970) 384-3470
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GCHA
Garfield County Housing Authority
Attn: Director
1430 Railroad Ave
Unit F
Rifle, CO 81650
Phone: (970) 625-3589
Fax: (970) 625-0859
14. AMENDMENT. This Agreement may be modified, but only in writing signed
by the Parties hereto, as their interests then appear. Any such amendment, including, by way of
example, extension of the Completion Date, substitution of the form of security, or approval of a
change in the identity of the security provider/issuer, shall be considered by the BOCC at a
scheduled public meeting. Before any extension of Completion Date is considered, Owner shall
certify that all taxes and assessments on the real property subject to the Agreement are paid in
full. Notwithstanding the foregoing, the Parties may change the identification of notice
recipients and contract administrators and the contact information provided in Paragraph 13,
above, in accordance with the provisions of that paragraph and without formal amendment of
this Agreement and without consideration at a BOCC meeting.
15. COUNTERPARTS. This Agreement may be executed in counterparts, each of
which shall be deemed an original, and alt of which, when taken together, shall be deemed one
and the same instrument.
16. VENUE AND JURISDICTION. Venue and jurisdiction for any cause arising
out of or related to this Agreement shall lie with the District Court of Garfield County, Colorado,
and this Agreement shall be construed according to the laws of the State of Colorado.
IN WITNESS WHEREOF, the Parties have signed this Agreement to be effective upon
the date of 61..> i5 �D+L
ATTEST:
BOARD OF rOUNT \COMMISSIONERS
F GARFIE D COUNTY, COLORADO
'Klerk to the Board
Date: b —) S 02 o I in
4.1sat s.12
•��
Ch irperson
HOUS G AUTHORITY
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BLUE HERON DEVELOPMENT COMPANY,
A COLORADO CORPORATION
By its Manager, Blue Heron Management, LLC,
a Colorado limited liability company
By:
am
s W. Light, its Man
STATE OF COLORADO
COUNTY OF GARFIELD
The foregoing instrument was acknowledged before me this 1C) day of
2016, by Blue Development Company, LLC by its Manager, Blue Heron anagement,
LLC, by its Manager, James W. Light. Witness my hand and official seal.
MARIANNE MCGARRY
NOTARY PUBLIC
STATE OF COLORADO
NOTARYMY COMMISSION ID EX1PI9RES SEPT 9, 2019
1 1i
Notary Public
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EXHIBIT A — AFFORDABLE ROUSING AGREEMENT
DECLARATION
OF MASTER DEED RESTRICTION AND AGREEMENT CONCERNING THE SALE,
OCCUPANCY, AND RESALE OF PROPERTY
THIS DECLARATION OF MASTER DEED RESTRICTION AND AGREEMENT
CONCERNING THE SALE, OCCUPANCY, AND RESALE OF PROPERTY ("Deed Restriction")
is entered into this day of , 2016 by the Roaring Fork RE -1
School District ("District"), the Board of County Commissioners of Garfield
County, Colorado ("County") and the Garfield County Housing Authority
("GCHA").
RECITALS
WHEREAS, the District is the owner of certain property described as Parcel A,
Ironbridge Planned Unit Development - Phase II, Filings 1, 2 & 3 as shown on the
Amended Final Plat recorded as Reception No. in the Garfield County Clerk
and Recorder's Office, County of Garfield, State of Colorado, said parcel containing
0.459 acres, more or Less ("the Property"); and
WHEREAS, the District intends to engage a general contractor experienced in
the construction of residential dwelling units for the purpose of constructing three (3)
duplexes consisting of six (6) residential housing units upon the Property ("Units");
and
WHEREAS, the District obtained the Property from Blue Heron Development
Company ("Blue Heron"), which was required to provide an Affordable Housing
Agreement with Garfield County, Colorado, as part of its conditionally approved
Final Plat Application for Ironbridge PUD Phase III, Filing 1; and
WHEREAS, on July 18, 2016, the County agreed to accept the request from
Blue Heron to sell the Property to the District and for the District to administer the
rental of affordable housing to employees of the District; and
WHEREAS, it is the intent of the District that the Units in the Project be
restricted to rental use and occupancy by District employees, preferably teachers; and
WHEREAS, any sale of any of the Units shall ensure conformance with the
County's Inclusionary Zoning for Housing (Article 8 of the Land Use and
Development Code) as described herein.
NOW, THEREFORE, in consideration of the promises and covenants
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hereinafter set forth, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledges, the District hereby declares, covenant
and agrees as follows:
ARTICLE 1
DEFINITIONS
1.1 "County" shall mean the County of Garfield, Colorado.
1.2 "Employee Housing Rental Guidelines" or "Rental Guidelines" shall mean
those certain guidelines promulgated by the District, which may contain the
eligibility standards for certifying and prioritizing Qualified Residents.
1.3 "Qualified Residents" shall mean one or more natural persons who are
certified by the Owner and/or Property Manager as District teachers or other District
employees, and in accordance with this Deed Restriction.
1.4 "Property Manager" ("Manager") shall mean the District or a property manager
retained by the District to operate the Project in accordance with this Deed
Restriction.
1.5 "Unit" shall mean one or more of the residential dwelling units constructed on
the Property for rent.
1.5 "Owner" shall mean the current and all future owners of the Project.
ARTICLE 2
AGREEMENT BINDS THE PROJECT
2.1 Binding Nature. This Agreement shall constitute a covenant running with the
title to the Property as a burden thereon, for the benefit of, and enforceable by, the
District. This Agreement shall bind the Owner and all District employees or
occupants of the Units. Each and every occupant of a Unit within the Project shall be
personally obligated hereunder for the full and complete performance and
observance of all covenants, conditions and restrictions contained herein during each
occupant's respective period of occupancy of a Unit. Each and every conveyance of
the Property or a portion thereof, or interest therein, for all purposes, shall be
deemed to include and incorporate by this reference, the covenants contained in this
Agreement, even without reference to this Agreement in any document of
conveyance.
ARTICLE 3
QUALIFIED TENANTS; AFFORDABILITY
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3.1 Occupancy. The District hereby restricts the occupancy and use of the Units
to Qualified Residents, except as expressly permitted by this Deed Restriction. A
Qualified Resident may not sublease the Unit or any part thereof. A Qualified
Resident may only have a roommate who is not a Qualified Resident with the
District's written consent.
3.2 Priority. The District has the right to select all Qualified Residents to occupy
the Unit in its sole discretion according to the restrictions contained herein and the
Rental Guidelines promulgated by the District. The first priority for Qualified
Residents shall be employees of the District. If the District is unable to secure a lease
with a first priority tenant, the District may expand its search for a tenant to a natural
person employed within Garfield County, and who is approved by GCHA, who will
occupy the unit as his or her principal place of residence for a Iease term riot to
exceed six (6) months, after which the District must take reasonably diligent steps to
lease the Units to an employee of the District. In no event shall a Unit be leased to
any resident who will not occupy the Unit as his or her principal place of residence.
3.3 Affordability. The District's Rental Guidelines shall ensure that the Units
remain affordable to Qualified Tenants.
ARTICLE 4
OCCUPANCY AND LEASE RESTRICTIONS
4.1 Occupancy. No occupants of the Unit shall engage in any business activity
on or in a Unit.
4.2 No Discrimination. In the rental and occupancy of the Units, there shall be
no discrimination on the basis of age, race, creed, color, sex, sexual orientation,
disability, religion, national origin, marital status, gender identity, or affiliation.
4.3 Vacancy. When a Unit becomes vacant, Manager shall promptly make it
available and actively market said Unit for lease to another Qualified Tenant in
accordance with this Deed Restriction and the Rental Guidelines.
4.4 Principal Residence. Each Unit shall only be Ieased and occupied by
residents who will utilize the Unit as his or her principal place of residence. A
principal place of residence shall mean the dwelling in which one's habitation is fixed
and to which a person, whenever he or she is absent, has a present intention of
returning after a departure or absence there from.
4.5 Leases. No Unit shall be leased or otherwise occupied unless the occupant
has executed a Iease in a form approved by the Owner. The lease shall contain a
statement that incorporates the terms and conditions of this Agreement.
ARTICLE 5
CONVERSION TO FOR -SALE AFFORDABLE HOUSING UNIT
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5.1. Conversion to Ownership. The District may convert a Unit into an ownership
unit for the purposes of use and occupancy. Conversion shall require subdivision
approval from the County. In the event RFSD receives subdivision approval to
convert one or more Unit(s) to Ownership, RFSD shall record a substitute deed
restriction which shall ensure conformance with the County's Inclusionary Zoning
for Housing (Article 8 of the Land Use and Development Code), which deed
restriction shall be substantially similar to that certain Declaration of Master Deed
Restriction and Agreement Concerning the Sale, Occupancy and Resale of Property
Described as Lots 199, 200, 222 and 223, Ironbridge Planned Unit Development,
Phase II, Garfield County, Colorado recorded on April 29, 2008 as Reception No.
747553 (said future substitute deed restriction shall be referred to herein as the "For
Sale Deed Restriction"). Upon recording of such For Sale Deed Restriction, this Deed
Restriction as applied to said Unit shall automatically without the requirement of
recording further documentation be released from and no longer subject to this Deed
Restriction. In such event, the County shall execute a release of such Unit from this
Deed Restriction upon request by the District.
5.2.. Administration of Sale. The District shall work with the GCHA to administer
any future sale of a Unit. Such Unit shall be sold in accordance with the then -
applicable provisions of the Garfield County Code regarding Inclusionary Housing.
5.3. Sales Price; Appreciation. The initial sales price of each Unit was calculated by
Blue Heron and the District, and is set forth on Exhibit A. During the District's
ownership, the Units shall be entitled to appreciate above the initial sales price, but
such annual appreciation shall be no more than 3% simple interest or CPI whichever
is less, plus the cost of Permitted Capital Improvements, as defined by Garfield
County Land Use and Development Code Section 8-304 (2016).
ARTICLE 6
GENERAL PROVISIONS
6.1. Notices. All notices and demands required or permitted under this
Agreement shall be in writing as follows: (1) by actual delivery of the notice to the
party entitled to receive it; (2) by mailing such notice by certified mail, return receipt
requested, in which case the notice shall be deemed to be given three days after the
date of its mailing; or (3) by Federal Express or any other overnight carrier, in which
case the notice shall be deemed to be given as of the date it is sent. All notices which
concern this Agreement shall be sent or delivered, as the case may be, to the address
of the appropriate party as set forth below, except if changed by a party by notice
pursuant hereto:
If addressed to Owner:
Roaring Fork RE -1 School District
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1405 Grand Avenue
Glenwood Springs, CO 81601
With a copy to:
Balcomb & Green, P.C.
Attn: Chad J. Lee, Esq.
P.O. Drawer 790
Glenwood Springs, CO 81601
clee@balcombgreen.com
If to County:
Garfield County Commissioners
109 8th Street, Suite 213
Glenwood Springs, CO 81601
6.2 Severability. Whenever possible, each provision of this Agreement and any
other related document shall be interpreted in such a manner as to be valid under
applicable laws, ordinances, rules, regulations, rulings, orders, requirements and
guidelines of federal, state and local authorities and agencies applicable to the
Project; but if any provision of any of the foregoing shall hold to be invalid or
otherwise prohibited under said laws, ordinances, rules, regulations, rulings, orders,
requirements or guidelines of federal, state and local authorities and agencies
applicable to the Project, such provisions shall be ineffective to the extent of such
invalidity or prohibition without invalidating the remaining provisions of the
Agreement.
6.3 Choice of Law. This Agreement and each and every related document are to
be governed and construed in accordance with the laws of the State of Colorado.
6.4 Waiver. No claim of waiver, consent or acquiescence with respect to any
provision of this Agreement shall be valid against any party hereto except on the
basis of a written instrument executed by the Parties to this Agreement. However,
the party whose benefit a condition is inserted herein shall have the unilateral right
to waive such condition.
IN WITNESS WHEREOF, the parties hereto have executed this Deed
Restriction on the day and year first written above.
RFSD:
Roaring Fork RE -1 School District
By: Mary Elizabeth Geiger
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Board President
STATE OF COLORADO
COUNTY OF
) ss.
The foregoing instrument was acknowledged before me
2016, by Mary Elizabeth Geiger, President of the Roaring Fork RE -1 School District
Board of Education.
WITNESS my hand and official seal.
My commission expires:
Notary Public
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ACCEPTANCE BY THE GARFIELD COUNTY HOUSING AUTHORITY
AND THE BOARD OF COUNTY COMMISSIONERS OF GARFIELD COUNTY
The foregoing Declaration of Master Deed Restriction and Agreement
concerning the Sale, Occupancy and Resale of Property and its terms are hereby
adopted and declared by the Garfield County Housing Authority and the Board of
County Commissioners of Garfield County.
BOARD OF COUNTY COMMISSIONERS
FOR THE COUNTY OF GARFIELD,
STATE OF COLORADO
By:
John Martin, Chairman
ATTEST:
Jean AIberico, CIerk and Recorder
Garfield County, Colorado
GARFIELD COUNTY HOUSING AUTHORITY
By: Linda Hansen, Chairwoman
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EXHIBIT A
INITIAL SALES PRICE OF UNITS
5260,000.00
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COUNTY CO
Exhibit 13— Affordable Housing Agreement
IRONBRIDGE SUBDIVISION
AFFORDABLE HOUSING PLAN PURSUANT TO LUDC 8-201
PHASE III — IRONBRIDGE PUD
1. LOCATION (8-201.4.1). Parcel A (formerly Sanitation Parcel) PA 22,
Ironbridge PUD.
NUMBER AND MIX OF UNITS (8-201 .A.3).
Free Market Lots: Sixty-onc (61) (including both Phase III, Filing I and 2)
Affordable Units (8-30I.A): Six (6)
Minimum bedrooms required (8-301.13): 6 x 2.6 = 15.6
15.6 _ 1.5 = 10.4 (rounded up to 112
Mix of Units: Detached or attached two (2) or three (3) bedroom Units with a
total of eleven (II) or more bedrooms.
2. SCHEDULE FOR CONSTRUCTION (8-201.A.3). Timing is controlled by the
LUDO and is anticipated to coincide with Building Permit issuance unless security is provided to
ensure completion. Owner will comply with to Resolution 2008-42, which requires construction
of affordable units equal to 10%e of the unrestricted units which have been sold, or made
available for sale. If the units are sold to the Roaring Fork School District ("RFSD") this
schedule will have been met upon issuance of Building Permits for construction of the six (6)
units.
3. UNITS BY CATEGORY (8-201.4.4). Six (6) detached or attached two (2) or
three (3) bedroom units with a minimum square footage of 950 sq. It. Lot size will be as shown
on the Phase 11, Filing 3, Second Amended Final Plat. in the event the units arc not sold to
RFSD, the Plat amendment is anticipated to be processed upon completion of foundations so that
subdivision lines match actual construction of attached units.
4. PROPOSED HOA DUES (8-201.4.5). Current IPOA fees for existing
affordable units are 5125.00 per month plus 530 per month to access all amenities other than golf
and fitness. It is anticipated that the same rates will apply to these units. The IPOA will also be
responsible for all onsite maintenance. It should be noted that while LUDC § 8-302(5) requires
specific amounts for affordable units, when, as in this case, the location of the units is in a pre-
existing development not subject to developer control there is no authority for the developer to
force the IPOA to comply with the regulations.
5. FORM OF DEED RESTRICTION (8-201.A.6). The then current Garfield
County Housing Authority ("GCHA") approved form of deed restriction will be used at the time
of sate of the affordable housing units. LUDC 8.303 requires GCHA approval of the form of
Dedication. Prior to that the form of deed restriction attached to the Affordable Housing
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Agreement and approved by the GCHA for sale of the units to the Roaring Fork School District
shall be used.
6. FINANCIAL SECRUITY (8-201.A.8). Section 8-201.A.8 provides that
financial security is not needed if the developer complies with providing one affordable unit for
every ten completed free market units. Owner intends to comply with this requirement.
7. RENTAL HOUSING (8-201.7). In the event that the units are sold to RFSD,
RFSD shall be responsible for administering the rental of units to RFSD employees and, if all
units are not rented to rent those available to units to GCIIA approved tenants on a short term
(less than a year) basis.
8. COMPLIANCE WITH AFFORDABLE HOUSING GUIDELINES (8-
201.A.10). Owner has worked closely with GCHA on Phase [I affordable unit sales and is
familiar with the regulations and process. The Affordable Housing Agreement provides a
mechanism to ensure compliance.