Loading...
HomeMy WebLinkAbout03-04-24 - Study Session Agenda PacketSTUDY SESSION AGENDA CITY COUNCIL CITY OF WHEAT RIDGE, COLORADO 7500 W. 29th Ave. Wheat Ridge CO March 4, 2024 6:30 pm This meeting will be conducted as a virtual meeting, and in person, at 7500 West 29th Avenue, Municipal Building. City Council members and City staff members will be physically present at the Municipal building for this meeting. The public may participate in these ways: 1. Attend the meeting in person at City Hall. Use the appropriate roster to sign up to speak upon arrival. 2. Provide comment in advance at www.wheatridgespeaks.org (comment by noon on March 4, 2024) 3. Virtually attend and participate in the meeting through a device or phone: • Click here to pre-register and provide public comment by Zoom (You must preregister before 6:00 p.m. on March 4, 2024) 4. View the meeting live or later at www.wheatridgespeaks.org, Channel 8, or YouTube Live at https://www.ci.wheatridge.co.us/view Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Contact the Public Information Officer at 303-235-2877 or wrpio@ci.wheatridge.co.us with as much notice as possible if you are interested in participating in a meeting and need inclusion assistance. Public Comment on Agenda Items 1. Amendment to the Cooperation Agreement between the City and Wheat Ridge Urban Renewal Authority for the Walmart Redevelopment 2. Final Design for The Green at 38th 3. Agreement with Jeffco School District for Development of The Green at 38th 4. Resolution in Opposition to HB24-1152 – ADU Policy Preemptions 5. Staff Report(s) 6. Elected Officials’ Report(s) Memorandum TO: Mayor and City Council THROUGH: Patrick Goff, City Manager FROM: Steve Art, Renewal Wheat Ridge Executive Director DATE: March 4, 2024 SUBJECT: Amendment to the Cooperation Agreement between the City and the Wheat Ridge Urban Renewal Authority for the Walmart Redevelopment ITEM: U.S. Retail Partners, LLC (the “Developer”) redeveloped the vacant Walmart retail building within the Applewood Village Shopping Center in 2019 which resulted in new retailers such as Hobby Lobby, HomeGoods, Sierra Trading Post, Ulta, Eyeglass World and Chick-fil-A. To assist in the redevelopment, the City and the Wheat Ridge Urban Renewal Authority dba Renewal Wheat Ridge (RWR) entered into a Cooperation Agreement dated May 13, 2019 which authorized the City to pledge a 1.0 cent sales tax increment to the project for a period of five years up to a maximum amount of $2,000,874. The sales tax pledge will expire in 2024. Due to the emergence of the COVID crisis shortly after the new retailers opened, and other economic factors, the sales tax pledge is estimated to generate only $390,471, well short of the $2,000,874 originally estimated by revenue modeling. The Developer has requested an extension of the sales tax pledge for another ten years, without amending the maximum sales tax pledge of $2,000,874. PRIOR ACTION: On May 13, 2019, City Council approved a Cooperation Agreement authorizing the City to share 1.0 cent of its 3.5 cents sales tax for a period of five-years. FINANCIAL IMPACT: If approved, the City will continue to share 1.0 cent of its 3.5 cent sales tax generated from this project for a period of an additional 10-years or a maximum amount of $2,000,874, whichever occurs first. Based on current revenue projections, the maximum amount is estimated to be reached in Fiscal Year 2028. The redevelopment of the Walmart site is currently generating approximately $815,000 in sales tax revenue annually for the City. BACKGROUND: Walmart closed its doors in Wheat Ridge in July 2017. The Developer quickly made plans to Item No. 1 Study Session Memo – Cooperation Agreement for Walmart Redevelopment March 4, 2024 Page 2 redevelop the building and the site to attract new tenants. In early 2018, the Developer entered into letters of intent with Hobby Lobby, Sierra Trading Post, HomeGoods, and Ulta to backfill a majority of the vacant Walmart building. More recently, Eyeglass World backfilled the last retail space and in December 2023 Chick-fil-A opened a new store on a new retail pad at the corner of 38th and Youngfield. To attract these quality, national retail tenants, significant improvements to the 35-year-old structure and site were necessary. The new uses required dividing the former Walmart building into five separate spaces. The redevelopment included a complete reface of the building façade, reconstruction of the parking lot for more efficient use, creation of the Chick-fil-A retail pad and streetscape improvements along Youngfield and 38th. The City utilized a portion of its 1% Xcel funding to underground all the utilities from 32nd and Youngfield to the terminus of the former Walmart building on 38th Avenue. In total, the Developer invested approximately $20 million into this redevelopment project. Over $10.7 million of this investment was determined to be eligible public improvements. These include general site improvements, Youngfield streetscape and signalized intersection improvements, façade upgrades, wet utilities, 38th Avenue ROW improvements, demolition of blighted buildings and environmental remediation of asbestos. RWR hired Economic & Planning Systems (EPS) to conduct an analysis of the Developer’s pro forma to determine if a public subsidy was required to make this project financially feasible. For a project of this type, a typical developer’s return on cost is somewhere between 6%-8%. If this redevelopment project received no public assistance through the TIF, it would generate a return of 5.13%. In order for this project to move forward, the Developer required a 6.75% return or a public subsidy of 8.4 million in nominal dollars. Based on the EPS analysis, RWR approved a Redevelopment Agreement on March 15, 2019 to reimburse the Developer for the cost of these public improvements up to a maximum aggregate amount of $8,441,138 through the utilization of property and sales tax increment. On May 13, 2019, City Council approved a Cooperation Agreement with RWR authorizing the City to share 1.0 cent of its 3.5 cents for a period of five-years up to a maximum amount of $2,000,874 towards the maximum aggregate amount of $8,441,138. The Developer’s pro forma was utilized to estimate revenues. The estimated and actual sales and property tax generation were: Year Sales Tax Estimate Actual Property Tax Estimate Actual 2020 $327,156 $59,977 $0 $0 2021 $372,539 $179,068 $0 $0 2022 $383,716 $239,975 $226,541 $79,496 2023 $395,227 $243,176 $258,987 $68,745 2024 $407,084 $250,471* $261,392 $140,000* *Estimate Study Session Memo – Cooperation Agreement for Walmart Redevelopment March 4, 2024 Page 3 Due to the emergence of the COVID crisis as well as other economic factors, the modeled timing and revenue assumptions have been different than the revenue models originally anticipated. The result is that the economic value of the agreement is approximately $3.7 million less than anticipated which is negatively impacting the operation and future investments of the shopping center. If the Cooperation Agreement is amended to extend the sharing of the sales tax by another ten years up to a maximum of $2,000,874, the economic value of the agreement will only be $2.6 million less than anticipated. CONSIDERATION: Council is asked to provide consensus to move forward with a formal presentation at a future Council meeting adopting a resolution approving an Amendment No. 1 to the Cooperation Agreement between the City of Wheat Ridge and RWR to extend the sales tax pledge for another ten years up to a maximum of $2,000,874. ATTACHMENTS: 1. Memo from U.S. Retail Partners, LLC, dated February 12, 2024 2. Draft Amended Cooperation Agreement 3. Draft Amended Redevelopment Agreement February 12, 2024 Memo Regarding the Agreement between Wheat Ridge Urban Renewal Authority and U.S. Retail Partners, LLC, dated March 19, 2019 Will Damrath Vice President, Market Officer Regency Centers U.S. Retail Partners, LLC entered into a Redevelopment Agreement on March 19, 2019 with Wheat Ridge Urban Renewal Authority. The sales tax component of the agreement is set to expire this year. Per the agreement, regarding Pledged Sales Tax Increment Revenue, “one-third or one percent of the three percent sales tax rate received by the City shall be rebated back to U.S. Retailers over a period of five years” and the Sales Tax Increment Termina�on Date “shall be five years from the date Sales Tax is first collected on the property.” US Retail Partners, LLC (Regency) appreciates the ongoing rela�onship with both the City and the URA and believe the par�es have complied with the agreement to reinvigorate Applewood Village Shopping Center. Our commitment to the shopping center through reinvestment has resulted in a roster of great, new retailers in Wheat Ridge such as Hobby Lobby, HomeGoods, Sierra Trading Post, Ulta, Eyeglass World, Chick-fil-A, Valvoline, First Watch and a newly remodeled AppleJack. That said, due to the emergence of the COVID crisis as well as other economic factors, the modeled �ming and revenue assump�ons have been different than the revenue models originally an�cipated. The result is that the economic value of the agreement is much lower than an�cipated and nega�vely impac�ng the opera�on of the shopping center. Below you will find a few key components contained within the exis�ng Agreement: "Pledged Property Tax Increment Revenue" means one hundred percent (100%) of the annual ad valorem property tax revenue received by the Authority from the Jefferson County Treasurer in excess of the amount produced by the levy of those taxing bodies that levy property taxes against the Property Tax Base Amount in the TIF Area in accordance with the Act and the regula�ons of the Property Tax Administrator of the State of Colorado, but not including, any offsets collected by the Jefferson County Treasurer for return of overpayments or any reserve funds retained by the Authority for such purposes in accordance with C.R.S. §§ 31-25-107(9)(a)(III) and (b). Provided however, Pledged Property Tax Revenue shall not include fi�y percent (50%) of the TIF Revenue generated from the mill levy of the West Metro Fire Protec�on District (the "District"), which is shared back with the District. "Property Tax Increment Termina�on Date" shall be December 31, 2040, or payment of the Reimbursement Amount in full, whichever first occurs. "Pledged Sales Tax Increment Revenues" means, for each year that this Agreement remains in effect, one third (1/3) or one percent (1%) of the three percent (3%) sales tax rate of that por�on of the Sales Tax revenue received by the City, and remited to the Authority in accordance with the Act and the Plan, equal to the product of the Sales Tax rate of three percent (3.00%) �mes the amount of the taxable transac�ons subject to the Sales Tax in the TIF Area, less the Sales Tax Base Amount. ATTACHMENT 1 "Sales Tax Increment Termina�on Date" shall be five years from the date Sales Tax is first collected on the Property. "Reimbursement Amount" means a maximum amount equal to Eight Million Four Hundred Forty-One Thousand, One Hundred and Thirty Eight Dollars ($8,441,138.00), which is the maximum amount that will be paid to the Developer to reimburse the Developer for Eligible Costs in accordance with the terms and provisions hereof. No interest shall accrue on the Reimbursement Amount. Two main factors have affected the projected revenue under the exis�ng agreement. First, the county was uncoopera�ve for several years in establishing a clear basis for the property tax increment. This has caused the actual property tax increment amounts to be lower than expected. Second, delays due to COVID-19, as well as lower per square foot sales for the retailers have caused the sales tax por�on to be substan�ally lower than expected. These factors combined with the sales tax por�on of the Agreement expiring have caused US Retail Partners, LLC a large economic hardship. Below is also an exhibit from the original Agreement for reference showing the cost categories and es�mates for completed work that are eligible for reimbursement under the agreement. I am also ataching a spreadsheet for discussion which highlights the revenue received under the current agreement, the projected revenue if the agreement cannot be extended and a projec�on of revenues going forward based upon actual data. We look forward to further discussion and considera�on of a poten�al extension of the sales tax por�on of the Agreement. Applewood URA Payments Current In-Place Agreement projected future Actual URA Receipts 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Sales tax 59,977$ 179,068$ 239,975$ 243,176$ 250,471$ -$ Property tax -$ -$ 79,496$ 68,745$ 140,000$ 144,200$ 148,526$ 152,982$ 157,571$ 162,298$ 167,167$ 172,182$ 177,348$ 182,668$ 188,148$ 193,793$ 199,607$ 205,595$ 211,763$ 218,115$ 224,659$ cumulative 59,977$ 179,068$ 319,471$ 311,921$ 390,471$ 144,200$ 148,526$ 152,982$ 157,571$ 162,298$ 167,167$ 172,182$ 177,348$ 182,668$ 188,148$ 193,793$ 199,607$ 205,595$ 211,763$ 218,115$ 224,659$ 4,167,530$ projected amount of existing agreement EPS Model 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Sales tax $327,156 $372,539 $383,716 $395,227 $407,084 Property tax $0 $0 $226,541 $258,987 $261,392 $272,335 $274,924 $286,309 $289,092 $300,936 $303,924 $316,247 $319,449 $332,270 $335,700 $349,039 $352,707 $366,585 $370,505 $384,943 $389,128 cumulative $327,156 $372,539 $610,257 $654,214 $668,476 $272,335 $274,924 $286,309 $289,092 $300,936 $303,924 $316,247 $319,449 $332,270 $335,700 $349,039 $352,707 $366,585 $370,505 $384,943 $389,128 $7,876,735 shortfall ($267,179)($193,471)($290,786)($342,293)($278,005)($128,135)($126,398)($133,327)($131,521)($138,638)($136,757)($144,065)($142,101)($149,602)($147,552)($155,246)($153,100)($160,990)($158,742)($166,828)($164,469)($3,709,205) Projected Revenue if Agreement is Amended (1% Sales tax, 100% Property Tax increment) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Sales tax 59,977$ 179,068$ 239,975$ 243,176$ 250,471$ 257,985$ 265,725$ 273,697$ 230,800$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2,000,874$ Property tax -$ -$ 79,496$ 68,745$ 140,000$ 144,200$ 148,526$ 152,982$ 157,571$ 162,298$ 167,167$ 172,182$ 177,348$ 182,668$ 188,148$ 193,793$ 199,607$ 205,595$ 211,763$ 218,115$ 224,659$ 3,194,863$ 59,977$ 179,068$ 319,471$ 311,921$ 390,471$ 402,185$ 414,251$ 426,679$ 388,371$ 162,298$ 167,167$ 172,182$ 177,348$ 182,668$ 188,148$ 193,793$ 199,607$ 205,595$ 211,763$ 218,115$ 224,659$ 5,195,737$ Shortfall ($2,680,998) 1 12/21/2023 HTTPS://CIWHEATRIDGECOUS-MY.SHAREPOINT.COM/PERSONAL/RCURRY_CI_WHEATRIDGE_CO_US/DOCUMENTS/DESKTOP/03.04.24 SS/240304 - 1.C - ATTACH 2 - FIRST AMDT TO REGENCY COOP AGR-A122123.DOCX EXHIBIT A FIRST AMENDMENT TO COOPERATION AGREEMENT BETWEEN THE CITY OF WHEAT RIDGE AND WHEAT RIDGE URBAN RENEWAL AUTHORITY THIS FIRST AMENDMENT TO COOPERATION AGREEMENT (the "First Amendment") dated as of _______, 2024, is made and entered into between the CITY OF WHEAT RIDGE, COLORADO (the "City") and the WHEAT RIDGE URBAN RENEWAL AUTHORITY d/b/a/ RENEWAL WHEAT RIDGE (the "Authority"). WHEREAS, the City is a Colorado home rule municipality with all the powers and authority granted pursuant to Article XX of the Colorado Constitution and its home rule charter (the "Charter"); and WHEREAS, the Authority is a Colorado Urban Renewal Authority, with all the powers and authority granted to it pursuant to Title 31, Article 25, Part 1, Colorado Revised Statutes ("C.R.S.") (the "Urban Renewal Law"); and WHEREAS, pursuant to Article XIV of the Colorado Constitution, and Title 29, Article 1, Part 2, C.R.S., the City and the Authority are authorized to cooperate and contract with one another to provide any function, service or facility lawfully authorized to each governmental entity; and WHEREAS, the City Council of the City (the "City Council") has previously adopted the I-70/Kipling Corridors Urban Renewal Plan, as amended (the "Urban Renewal Plan" or the "Plan") for the area described therein (the "Urban Renewal Area"); and WHEREAS, U.S. Retail Partners, LLC, a Delaware limited liability company (the "Developer"), has redeveloped the vacant Walmart retail building consisting of approximately 126,000 square feet within the Applewood Shopping Center, which is in the Urban Renewal Area; and WHEREAS, to assist in the Redevelopment of the Project, the City and the Authority entered into that Cooperation Agreement dated May 13, 2019 (the "Original Cooperation Agreement"), which authorized the City to pledge sales tax increment to the Project for a period of five (5) years up to the maximum amount of $2,000,874; and WHEREAS, the Parties desire to extend the term of the Original Cooperation Agreement in order to extend the City's pledge of sales tax increment to the Project for an additional ten (10) years without amending the maximum amount of Pledged Sales Tax Revenues as set forth in the Original Cooperation Agreement. NOW, THEREFORE, in consideration of the mutual promises set forth below, the City and the Authority agree as follows: ATTACHMENT 2 2 12/21/2023 HTTPS://CIWHEATRIDGECOUS-MY.SHAREPOINT.COM/PERSONAL/RCURRY_CI_WHEATRIDGE_CO_US/DOCUMENTS/DESKTOP/03.04.24 SS/240304 - 1.C - ATTACH 2 - FIRST AMDT TO REGENCY COOP AGR-A122123.DOCX 1. Section 1, subsection b. of the Original Cooperation Agreement is amended to read as follows: I. COOPERATION. * * * b. The City agrees to assist the Authority by pursuing all lawful procedures and remedies available to it to collect and transfer to the Authority on a timely basis all Pledged Sales Tax Increment Revenues for deposit into the Project Account of the Special Fund until the total amount of Pledged Revenues as defined in the Redevelopment Agreement paid to Developer equals the Reimbursement Amount, or December 31, 2035 2025, whichever first occurs. 2. Entire Agreement. This First Amendment and the Original Cooperation Agreement shall represent the entire agreement between the parties with respect to the subject matter hereof and shall supersede all prior negotiations, representations, or agreements, either written or oral, between the parties relating to the subject matter of this Agreement and shall be independent of and have no effect upon any other contracts. IN WITNESS WHEREOF, this Agreement is executed by the Parties as of ____________, 2024. CITY OF WHEAT RIDGE, COLORADO By: ____________________________________ Bud Starker, Mayor ATTEST: ____________________________________ Steve Kirkpatrick, City Clerk APPROVED AS TO FORM ____________________________________ Gerald Dahl, City Attorney 3 12/21/2023 HTTPS://CIWHEATRIDGECOUS-MY.SHAREPOINT.COM/PERSONAL/RCURRY_CI_WHEATRIDGE_CO_US/DOCUMENTS/DESKTOP/03.04.24 SS/240304 - 1.C - ATTACH 2 - FIRST AMDT TO REGENCY COOP AGR-A122123.DOCX WHEAT RIDGE URBAN RENEWAL AUTHORITY By: ____________________________________ Walt Pettit, Chairperson ATTEST: _____________________________ Steve Art, Executive Director 1 12/21/2023 HTTPS://CIWHEATRIDGECOUS-MY.SHAREPOINT.COM/PERSONAL/RCURRY_CI_WHEATRIDGE_CO_US/DOCUMENTS/DESKTOP/03.04.24 SS/240304 - 1.D - ATTACH 3 - FIRST AMENDMENT TO REGENCY-A122123.DOCX FIRST AMENDMENT TO REDEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO REDEVELOPMENT AGREEMENT (the "First Amendment") dated as of _____ __, 2024, is made by and between WHEAT RIDGE URBAN RENEWAL AUTHORITY d/b/a/ RENEWAL WHEAT RIDGE, an urban renewal authority and a body corporate and politic of the State of Colorado (the "Authority"), U.S. RETAIL PARTNERS, LLC, a Delaware limited liability company (the "Developer"). The Authority and Developer are sometimes collectively called the "Parties," and individually, a "Party." RECITALS All capitalized terms used, but not defined, in these Recitals have the meanings ascribed to them in this Agreement. The Recitals are incorporated into this Agreement as though fully set forth in the body of this Agreement. WHEREAS, the Authority and the Developer entered into that Agreement dated March 19, 2019 (the "Original Agreement"), by which Developer constructed certain Eligible Improvements within the Applewood Shopping Center (the "Project"); and WHEREAS, the Authority and the Developer desire to extend the term of the Original Agreement to allow for an additional ten (10) years of the sharing of sales tax increment as defined below, but without modifying the maximum aggregate Reimbursement Amount of Eight Million Four Hundred Forty One Thousand, One Hundred and Thirty Eight Dollars ($8,441,138.00) as defined in the Original Agreement (the "Reimbursement Amount"), and without increasing the maximum amount of the Pledged Sales Tax Increment Revenues as set forth in the Original Agreement. NOW, THEREFORE, in consideration of the mutual covenants and promises of the Parties contained in this First Amendment, and other valuable consideration, the receipt and adequacy of which are acknowledged, the Parties agree to the terms and conditions in this First Amendment. AGREEMENT 1. The definitions of Pledged Sales Tax Increment Revenues and Sales Tax Increment Termination Date in Section 1 of the Original Agreement are amended to read as follows: "Pledged Sales Tax Increment Revenues" means, for each year that this Agreement remains in effect, one third (1/3) or one percent (1%) of the three percent (3%) sales tax rate of that portion of the Sales Tax revenue received by the City, and remitted to the Authority in accordance with the Act and the Plan, equal to the product of the Sales Tax rate of [three percent (3.00%)] times the amount of the taxable transactions subject to the Sales Tax in the TIF Area, less the Sales Tax Base Amount, up to a maximum amount of Two Million, Eight Hundred Seventy Four Dollars ($2,000,874.00). 2 12/21/2023 HTTPS://CIWHEATRIDGECOUS-MY.SHAREPOINT.COM/PERSONAL/RCURRY_CI_WHEATRIDGE_CO_US/DOCUMENTS/DESKTOP/03.04.24 SS/240304 - 1.D - ATTACH 3 - FIRST AMENDMENT TO REGENCY-A122123.DOCX "Sales Tax Increment Termination Date" shall be five fifteen (15) years from the date Sales Tax is first collected on the Property. 2. Section 6.2 of the Original Agreement is amended to read as follows: 6.2 Pledged Sales Tax Increment Revenues. The Authority shall reimburse one percent (1%) of the three percent (3%) sales tax rate of that portion of the Sales Tax revenue received by the City, and remitted to the Authority in accordance with the Act and the Plan until the Sales Tax Increment Termination Date for a period of five (5) fifteen (15) years. After the Sales Tax Increment Termination Date, the City shall no longer be obligated to pay the Sales Tax Increment into the Special Fund of the Authority. 3. The Original Agreement is in full force and effect and is hereby ratified by the Authority and the Developer. The Original Agreement and this First Amendment constitute all of the agreements between the Authority and the Developer. IN WITNESS WHEREOF, this Agreement is executed by the Parties as of ________ __, 2024. WHEAT RIDGE URBAN RENEWAL AUTHORITY By: ____________________________________ Walt Pettit, Chairperson ATTEST: ____________________________________ Steve Art, Executive Director Notice Address: Wheat Ridge Urban Renewal Authority 7500 West 29th Avenue Wheat Ridge, Colorado 80033 Attention: Steve Art, Executive Director Email: sart@ci.wheatridge.co.us STATE OF COLORADO ) ) ss. COUNTY OF __________________) The foregoing instrument was subscribed, sworn to and acknowledged before me this ___ day of ___________________, 2024 by Walt Pettit as the Chairperson of the Wheat Ridge ATTACHMENT 3 3 12/21/2023 HTTPS://CIWHEATRIDGECOUS-MY.SHAREPOINT.COM/PERSONAL/RCURRY_CI_WHEATRIDGE_CO_US/DOCUMENTS/DESKTOP/03.04.24 SS/240304 - 1.D - ATTACH 3 - FIRST AMENDMENT TO REGENCY-A122123.DOCX Urban Renewal Authority. My commission expires: (S E A L) ____________________________________ Notary Public 4 12/21/2023 HTTPS://CIWHEATRIDGECOUS-MY.SHAREPOINT.COM/PERSONAL/RCURRY_CI_WHEATRIDGE_CO_US/DOCUMENTS/DESKTOP/03.04.24 SS/240304 - 1.D - ATTACH 3 - FIRST AMENDMENT TO REGENCY-A122123.DOCX DEVELOPER U.S. RETAIL PARTNERS, LLC a Delaware limited liability company By: U.S. Retail Partners Holding, LLC, a Delaware limited liability company, its sole member By: GRI-Regency, LLC, a Delaware limited liability company, its sole member By: Regency Centers, L.P., a Delaware limited partnership, its managing member By: Regency Centers Corporation, a Florida corporation, its general partner By: ____________________________ Name: ____________________________ Title: ____________________________ Notice Address: c/o Regency Centers Corporation 8480 East Orchard Road, Suite 6900 Greenwood Village, Colorado 80111 Attention: Property Management STATE OF COLORADO ) ) ss. COUNTY OF ) The foregoing instrument was subscribed, sworn to and acknowledged before me this ___ day of ___________________, 2024 by ________________, as ___________ of U.S. RETAIL PARTNERS, LLC, a Delaware limited liability company My commission expires: (S E A L) ____________________________________ Notary Public Memorandum TO: Mayor and City Council FROM: Patrick Goff, City Manager DATE: February 25, 2024 (for March 4, 2024 study session) SUBJECT: Final Design for The Green at 38th ISSUE: Staff received direction from City Council in 2018 to engage a designer to develop conceptual designs for a community gathering space at The Green on 38th Avenue in front of Stevens Elementary. The final design is now nearly complete, and construction is scheduled to begin on June 1, 2024 when the school closes for summer break. Staff and the architect for the project, Architerra Group, will provide an update on the project and present the final design to City Council at the March 4th study session. PRIOR ACTIONS: •At the April 2, 2018 study session, a consensus was reached by City Council to engage a designer to develop conceptual designs for The Green. •Architerra Group was hired in August 2018 to develop conceptual designs for The Green. •City Council approved an appropriation of $900,000 in the 2019 Open Space Fund Budget,as a transfer from General Fund reserves, for design of The Green. •Architerra Group, representatives from the Jefferson County School District and City staff presented the preferred concept design for The Green at 38th to City Council at the October21, 2019 study session. Consensus was reached by City Council to bring forward a finalpreferred concept to a future study session. •Projected put on hold due to the COVID-19 pandemic •Architerra Group presented two preferred design options for The Green to City Council at theApril 18, 2022 study session based on feedback received from a comprehensive community engagement process. •City Council provided consensus at the May 16, 2022 study session to proceed to final designand construction drawings based on Concept #1. •City Council approved a contract with Architerra Group for final design of The Green onJuly 25, 2022 Item No. 2 Final Design for The Green at 38th March 4, 2024 Page 2 FINANCIAL IMPACT: The initial work to develop conceptual designs and 30% design development for The Green was completed at a cost of $94,638. A fee in the amount of $399,909 was negotiated with Architerra for final design and construction drawings. The original contract was amended with four change orders, increasing this budget to $427,559 for total design costs of $522,197. The current projected budget for The Green project is $7.1 million, of which $1.4 million is for the parking lot for Stevens Elementary. A value engineering exercise will be conducted in an attempt to decrease this total cost. The following funding has been allocated or is anticipated to be awarded for this project: General Fund $900,000 Department of Local Affairs Energy Impact Grant $850,000 Waste Management Grant $3,000 Gates Family Foundation Grant $30,000 Great Outdoors Colorado Grant (initial approval received) $500,000 CDOT Revitalizing Main Streets Grant (application submitted) $250,000 Fees in Lieu of Parkland Dedication $860,546 Open Space Fund $2,036,117 Conservation Trust Fund $300,000 Total Funding Sources $5,729,663 Total Budget including Design $7,622,197 ($1,892,534) A deficit of approximately $1.9 million exists in funding sources for this project. However, staff believes this deficit can be decreased substantially through a value engineering exercise. In addition, additional Open Space and Conservation Trust dollars can be budgeted in 2025 for any remaining budget deficit and any funds received from the sale of the Town Center Park property can be allocated towards The Green. BACKGROUND: One of the top five priorities in City Council’s 2018/2019 Strategic Plan was to finalize a design for the 38th Avenue Streetscape. While the proposal for The Green does not directly implement that priority, it is a logical first step in extending streetscape improvements from the West 38 mixed-use project directly to the west. The 2019 Neighborhood Revitalization Strategy Update also recommended that the City continue to prioritize additional streetscape investments along 38th Avenue. A consensus was reached by City Council in 2018 to engage a designer to develop conceptual designs for The Green. Architerra Group was hired by the City in August 2018 through the City’s established procurement process. The 2005 Neighborhood Revitalization Strategy (2005 NRS) focused on the repositioning of Wheat Ridge as a vibrant community. In particular, the NRS urged the City to pursue policies that encourage redevelopment and to promote 38th Avenue as a destination main street and pedestrian-oriented place. Strategy 6 specifically calls to “accelerate and shape the development along 38th Avenue” because “Wheat Ridge is a community that lacks a defined center.” The NRS emphasized the need to attract strong households, and ultimately the provision of an appealing, pedestrian- Final Design for The Green at 38th March 4, 2024 Page 3 oriented destination such as 38th Avenue helps to create that household demand. In 2009, this vision of a main street on 38th was reinforced in the City’s comprehensive plan, Envision Wheat Ridge. The plan specifically described the future of the 38th Avenue corridor from Wadsworth to Pierce as “a transit and pedestrian friendly ‘main street’ that features an extension of streetscape and urban design improvements that have been completed between Sheridan Boulevard and Harlan Street.” Enhancing community character and design is one of six key values on which the comprehensive plan is based. This includes a call to enhance the image of the City’s commercial corridors and specifically “to coordinate, fund, develop, and maintain streetscape improvements.” The 38th Avenue Corridor Plan, adopted October 2011, refines the main street vision and outlines specific action steps for revitalization. The plan addresses a wide range of recommendations related to branding, signage, housing, private development, public improvements, art, zoning, and community events all of which contribute to a feeling of place. Specifically, the plan recommended the following actions items pertaining to the Jefferson County School District property: Guiding Principle Action Vitality Work with Jefferson County School District to consider utilizing the large surface parking lot that abuts 38th Avenue for non-school events such as farmer’s markets, family or youth bike rodeos, overflow parking or civic functions. Guiding Principle Action Vitality Work with Jefferson County School District to consider long term re-investment of their underutilized land along 38th Avenue (vacant land fronting 38th and parking lot) for mixed use development and community functions such as community gardens and corridor parking Guiding Principle Action Appeal Create public plazas or gathering places along the corridor at activity nodes for public gatherings Subsequent to the adoption of the 38th Avenue Corridor Plan, the City hired a design firm to design conceptual streetscape improvements to 38th Avenue. As part of Phase II of that scope of work, Entelechy, the consultant urban designer, also designed conceptual designs for modifications to the school’s vacant property along 38th, generally referred to as “The Green”. Already used for many City events such as the Criterium and Brewfest, Friday Night Live, RidgeFest, and the Holiday Celebration, in partnership with the School District, the improvements would be intended to improve its functionality for these and other special events and for community passive uses. A primary recommendation in the 2019 Neighborhood Revitalization Strategy (2019 NRS) Update was to reinvest in the City’s primary corridors including 38th Avenue. It suggested the City complete “funding, final design and construction” of 38th Avenue streetscape improvements. In 2017, a major hailstorm hit the City of Wheat Ridge causing significant damage to a majority Final Design for The Green at 38th March 4, 2024 Page 4 of structures in the City. Between 2017 and 2018, building permit revenue increased substantially at approximately $900,000 above normal annual revenue. Former Councilmembers Fitzgerald, Pond and Davis requested a study session to discuss reinvesting those funds into an amenity the entire community could enjoy. In August 2018, with Council’s direction from the April 2018 study session, staff engaged with Architerra Group, a local landscape design firm, to develop conceptual designs for The Green. Architerra developed multiple options and those were presented to focus groups of interested stakeholders, including various school district representatives, Stevens Elementary parents, Localworks and 38th Avenue businesses. Some of the designs maintained the current footprint of The Green, while others altered that orientation such that it would occupy the entire frontage along 38th Avenue and relocate the school’s parking and student drop-off area to be a buffer between 38th Avenue, The Green and the school. This preferred concept design orientation has several advantages: • Meets the School District’s security/safety goals by providing a parking lot and circulation area that is protected from the street, more convenient to the building entry and will be perceived as being safer by providing a buffer between the elementary school and its outdoor playground and the various activities that occur on The Green. • Provides a more efficiently designed parking lot, while maintaining approximately the same number of spaces. • Gives The Green a stronger street presence and visibility, furthering the City’s goal of highlighting 38th Avenue as the City’s “main street.” • Provides a logical extension of streetscape improvements that were installed as part of the West 38 apartment complex to the west. The City and the School District have an existing agreement that allows for shared use of The Green, which has been in place for the last several years. The School District continues to be very supportive of this redesign and continued shared use, which as noted above, meets important goals for both the City and District. The original intent was for the City to enter into a long-term lease with the District to utilize the District’s property for this project. However, the District has now agreed to convey the property to the City in exchange for the City paying for and constructing a new parking lot for Stevens Elementary. ATTACHMENTS: 1. The Green at 38th Presentation The Green at 38th ATTACHMENT 1 The Green at 38th The Green at 38th The Green at 38th The Green at 38th Project Vision and Objectives Stakeholder Meeting #1 Project Vision Statement: Create a flexible and safe gathering space that can be used for community events, concerts, and festivals while also providing a physical buffer and separation from the school space. Objectives o Include a formal performance space. o Provide a permanent structure for shade and performance or event support. o Provide a space or use that draws visitors to the park when no scheduled events are occurring. o Provide shade/cover for users of the park. o Provide a visual and physical separation between the school and public space. o Include a large, unprogrammed green space. o The design should be self-contained so that adjacent roads don’t need to be closed for festivals/events. Concept 1 Concept 2 Concept 3 Concept 4 Project Vision and Objectives Stakeholder Meeting #2 Key Considerations o Continue to work with Jeffco Schools to further refine the circulation on the site o Consider flexible space that allows for food trucks to park and booths to set up o Consider stage infrastructure: power, raised stage, lighting, etc. o Ensure visibility into the park from the school o Consider restroom and trash/recycling locations for festivals/events o Ensure that design materials and aesthetics are appropriate for Wheat Ridge o Interactive water feature is preferred, but interactive art could be another way to activate the space if water isn’t feasible Concept A Concept B Stevens Parking Lot Final Concept Southwest Corner Central Promenade Art Screen Central Promenade - Typical Central Promenade - Concert Central Promenade – Market Images of tents in lawn and food trucks on promenade Central Gathering Area Central Gathering Area Play Area Play Equipment Musical Play Seating Grove 38th Ave Plaza Stage Stage Final Concept Firepit Furnishings Site Pieces Monoline Rocker Freestanding Site Pieces Alpine 46er Chair Surface Mounted or Freestanding Site Pieces Alpine Cascade Chaise Surface Mounted or Freestanding Site Pieces Custom Seating Platform Games Site Pieces Monoline Ping Pong Table Surface Mounted Doty and Sons Concrete Bag Toss Surface Mounted Seating Grove Site Pieces Monoline Topper with and without back Surface Mounted Landscape Forms Twig Modular Bench HDPE Anova Beacon Hill Game Table Surface Mounted Café Tables Maglin Battery Café Table Kontur Chair Freestanding Site Pieces Monoline Carousel Table Surface Mounted MOST MOVEABLE LEAST MOVEABLE Streetscape Furniture Global Industrial U-Rack Bike Rack - Black Global Industrial 6’ Outdoor Steel Slat Bench Black w/ Wheat Ridge logo Global Industrial Outdoor Metal Slatted Trash Receptacle w/ Dome Lid 36 gallon – Black w/ Wheat Ridge logo Memorandum TO: Mayor and City Council FROM: Patrick Goff, City Manager DATE: February 25, 2024 (for March 4, 2024 study session) SUBJECT: Agreement with Jeffco School District for Development of The Green at 38th ISSUE: Staff received direction from City Council in 2018 to engage a designer to develop conceptual designs for a community gathering space at The Green on 38th Avenue in front of Stevens Elementary. The final design is now nearly complete, and construction is scheduled to begin on June 1, 2024 when the school closes for summer break. Staff signed a nonbinding Letter of Intent with the Jefferson County School District which set forth the terms under which the District would convey the property necessary for The Green to the City in exchange for the City constructing a new parking lot for Stevens Elementary. The terms of the Letter of Intent have been incorporated into the attached Draft Contract to Buy and Sell Real Estate which will be presented to City Council at the March 4th study session. PRIOR ACTIONS: There have been no prior City Council actions related to a contract with the Jeffco School District for construction of The Green at 38th. BACKGROUND: A consensus was reached by City Council in 2018 to engage a designer to develop conceptual designs for The Green. Architerra Group was hired by the City in August 2018 through the City’s established procurement process. Architerra developed multiple options and those were presented to focus groups of interested stakeholders, including various school district representatives, Stevens Elementary parents, Localworks and 38th Avenue businesses. Architerra will present the final design to City Council at the March 4th study session. This final design has several advantages: •Meets the School District’s security/safety goals by providing a parking lot andcirculation area that is protected from the street, more convenient to the building entryand will be perceived as being safer by providing a buffer between the elementary schooland its outdoor playground and the various activities that occur on The Green. •Provides a more efficiently designed parking lot, while maintaining approximately thesame number of spaces. •Gives The Green a stronger street presence and visibility, furthering the City’s goal ofhighlighting 38th Avenue as the City’s “main street.” •Provides a logical extension of streetscape improvements that were installed as part of the Item No. 3 Final Design for The Green at 38th March 4, 2024 Page 2 West 38th apartments immediately to the west. The City and the School District have an existing agreement that allows for shared use of The Green, which has been in place for several years. The District continues to be very supportive of this redesign and continued shared use, which as noted above, meets important goals for both the City and District. The original intent was for the City to enter into a long-term lease with the District to utilize the District’s property for this project. However, the District has now agreed to convey the property to the City in exchange for the City paying for and constructing a new parking lot for Stevens Elementary. The attached Draft Contract is the standard Colorado real estate contract and has been reviewed by the City Attorney. The Additional Provisions of the Contract in Section 29 are unique to this transaction and include the following: 1. The City will cause the property for The Green to be a separately platted parcel – this process in underway 2. The contract shall be conditioned on the inclusion of a reverter clause for the benefit of both Jefferson County Open Space (JCOS) and the Jefferson County School District. The City is currently working with JCOS to transfer the reverter from Town Center Park to The Green. The reverter clause will require the City to continue to operate The Green for “Park Purposes”. If the City fails to maintain the property for “Park Purposes”, JCOS may take over operation of the park and/or the property may be deeded back to the District. 3. The City will construct a parking lot and associated hardscape on District property that is like size and capacity as the current parking lot in exchange for the District deeding the property associated with The Green to the City. The engineers estimate for construction of the parking lot is approximately $1.4 million. RECOMMENDATION: Staff seeks City Council consensus to finalize the Contract to Buy and Sell Real Estate with the District for final City Council approval on March 25th. ATTACHMENTS: 1. Nonbinding Letter of Intent, dated January 15, 2024 2. Draft Contract to Buy and Sell Real Estate January 15, 2024 Via Email (pgoff@ci.wheatridge.co.us) Patrick Goff City Manager City of Wheat Ridge 7500 W. 29th Avenue Wheat Ridge, CO 80033 Re: Nonbinding Letter of Intent Regarding Sale of Real Property located at 7085 W. 38th Avenue, Wheat Ridge, CO 80033 Dear Patrick: Thank you for continuing the conversation in connection with developing a community park, The Green at 38th, adjacent to Stevens Elementary School (School) as part of the City’s 38th Avenue Corridor Plan. We have had the opportunity to review the draft intergovernmental agreement that you shared with us on September 26, 2023, which contemplates that Jefferson County School District R-1 (District) will lease certain real property to the City of Wheat Ridge (City). The District believes it is a better use of the parties’ respective resources for the District to convey the subject property to the City in consideration for the construction of a new parking lot for the School. Therefore, this letter of intent (Letter or LOI) sets forth the terms under which the District would be willing to sell the Property (as hereinafter defined) to the City. 1. Property. An approximately 1.62 acre (70,554 square feet more or less)-acre porAon of the School, which is located at 7085 W. 38th Avenue, as depicted on the site plan set forth in Exhibit A, aLached hereto and made a part hereof (Site Plan), the legal descripAon of which is to be established pursuant to the Survey (as defined in this LeLer) (Property). 2. Purchase Price. There shall be no purchase price for the Property. 3. Earnest Money. There shall be no earnest money for the Property. 4. Purchase and Sale Agreement. Promptly upon the parAes’ mutual execuAon of this LeLer, District’s aLorney will prepare and deliver to City a proposed purchase and sale agreement that will include, among other things, the business terms specified in this LeLer. The proposed purchase and sale agreement will not be considered binding unless it is approved and executed by both parAes. 5. Due Diligence Period. The City shall have ninety (90) days from the parAes’ mutual execuAon of a purchase and sale contract (ExecuAon Date) to enter upon the Property at all reasonable Ames for the purpose of doing any work or invesAgaAon as may be required by the City in its discreAon to determine that the Property is suitable for the City’s intended purpose (Due Diligence Period). The District will provide reasonable access to the Property for the City and its agents and contractors for the purpose of conducAng its work and inspecAons. If the City, in its sole and absolute discreAon, is dissaAsfied with its inspecAon of the Property for any reason or no reason, the City may terminate the purchase contract by giving a noAce of terminaAon (a TerminaAon NoAce) to the District at any Ame prior to the expiraAon of the Due Diligence Period, in which case the purchase contract will terminate. If City does not give a TerminaAon NoAce to the District prior to the expiraAon of the Due Diligence Period, then the purchase contract will conAnue in full force and effect. 6. Government Approvals. The City shall have ninety (90) days from the ExecuAon Date (Government Approval Period) to cause the Property to be a separately plaLed parcel and to obtain all necessary approvals, including without limitaAon approval and recordaAon of a final plat or similar document in the real property records of Jefferson County, from the City, Jefferson County, and all other applicable governmental authoriAes (Government Approvals). If the City does not obtain the Government Approvals, the City may terminate the purchase contract by giving a TerminaAon NoAce to the District at any Ame prior to the expiraAon of the Government Approval Period, in which case the purchase contract will terminate. If City does not give a TerminaAon NoAce to the District prior to the expiraAon of the Government Approvals Period, then the purchase contract will conAnue in full force and effect. 7. Survey. The City, at City cost, will obtain and cause to be delivered to the District and the Title Company (as hereina\er defined) an ALTA survey of the Property that conforms to the Site Plan, is in a form acceptable to the District and Title Company, and is cerAfied to the District, the City, and the Title Company (Survey). 8. Title. The City, at City cost, may cause TBD Title Company (Title Company) to issue and deliver to the City a current commitment for a 2021 ALTA extended coverage owner’s policy of insurance for the Property and legible copies of all documents therein (“Title Documents”). The City will have unAl the expiraAon of the Due Diligence Period to object to any maLers reported or shown on the Survey or Title Documents, and may terminate the Agreement based on such objecAons, unless the district agrees to cure the same. 9. Method of Conveyance. At the Closing, the District will convey its interest in the Property to the City by special warranty deed, showing as excepAons those on the B-2 schedule from the Atle commitment, and subject to a possibility of reverter as set forth in SecAon 12(a) of this LOI. 10. “As Is” CondiAon. Except for representaAons concerning the enAty status and authority of the parAes, there will be no representaAons or warranAes. The City will acknowledge that the District is conveying the Property to the City in its “As Is” condiAon, “Where Is” and “With All Faults.” 11. Closing. The closing of the purchase of the Property (the “Closing”) will occur within thirty (30) days following the expiraAon of the Government Approvals Period, or at such other Ame as the parAes may mutually agree. The following will be paid by the City in connecAon with the Closing: (a) the closing fee charged by the Title Company, (b) cost of preparaAon of the quitclaim deed and any other documents of conveyance, (c) furnishing of the Title Documents and premium for a 2021 ALTA extended coverage owner’s policy of insurance for the Property and any endorsements thereto, (d) the cost of recording any documents necessary to make Atle marketable, (e) filing fee to record the deed, and (f) any other fees incurred in connecAon with the Closing. 12. Special Provisions: a. Conveyance of the Property shall include a reverter clause in substanAally the following form: Grantor hereby conveys the above-described property to Grantee and its successors and assigns for so long as the Grantee or its successors or assigns use the land and any and all buildings or faciliAes constructed thereon for park purposes. "Park purposes" shall mean an area of land in the pursuit of outdoor leisure, athleAc, or recreaAonal acAviAes and faciliAes ancillary thereto including, but not limited to, cultural, educaAonal, and civic faciliAes, band shells, pavilions, outdoor classrooms, and concessions and include open areas, fields, play fields, trails, naAonal areas, historical areas, or wildlife areas. If Grantee or its successors or assigns cease to use the property for park purposes or use the property for other than park purposes and such cessaAon of use for park purposes or use for non-park purposes conAnues or exists on the sixAeth (60th) day a\er receiving wriLen noAce thereof from Grantor, Atle to the above described property, including any improvements thereon, shall automaAcally revert to Jefferson County School District R-1 or its successor ("District") on such day. If Atle to the property reverts to the District pursuant hereto, the District may record an affidavit executed and acknowledged by the Superintendent of Schools staAng that Atle has reverted to the District because of the disconAnuaAon of the use of the property for park purposes or the use of the property for other than park purposes, as the case may be. However, nothing herein shall be construed as limiAng Grantee’s right to grant easements or other interests in the property to a governmental or nonprofit enAty or public enAty or to enter into agreements that affect the property so long as such interests or agreements further the park purpose and enhance the park use of the property. b. The parAes’ obligaAon to close will be condiAoned on the parAes entering into a mutually acceptable intergovernmental agreement or comparable document pursuant to which the City will construct a parking lot and associated hardscape on District property in accordance with District specificaAons that is of like size and capacity as the City Manager current parking lot. Such agreement will further state that the District shall own and operate the parking lot but may provide for City use of the parking lot when not in use by the District pursuant to mutually acceptable terms and condiAons. Such agreement will afford the District an opAon to re-purchase the Property at no cost if the City fails to complete the parking lot and hardscape on or before August 1, 2024. The District shall have the right to expand and improve the parking lot at its own cost. This letter of intent does not constitute a formal and binding agreement. This letter of intent merely reflects the basic terms and conditions upon which the parties would be willing to enter into negotiations with regard to the purchase of the Property and is intended solely as the basis for the preparation of a purchase and sale agreement by the District. Only a fully executed purchase and sale agreement will constitute a final and binding agreement between the parties. Unless this Letter is accepted by the City on or before 5:00PM on Friday, January 19, 2024, this LOI shall expire and be without further force and effect. Sincerely, JEFFERSON COUNTY SCHOOL DISTRICT R-1 By: Title: Chief Operating Officer ACCEPTED BY: CITY OF WHEAT RIDGE By: Title: EXHBIIT A Site Plan CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 1 of 19 The printed portions of this form, except differentiated additions, have been approved by the Colorado Real Estate Commission. 1 (CBS3-6-23) (Mandatory 1-24) 2 3 THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTIES SHOULD CONSULT LEGAL AND TAX OR 4 OTHER COUNSEL BEFORE SIGNING. 5 6 CONTRACT TO BUY AND SELL REAL ESTATE 7 (COMMERCIAL) 8 ( Property with No Residences) 9 ( Property with Residences-Residential Addendum Attached) 10 11 Date: February 16, 2024 12 AGREEMENT 13 1. AGREEMENT. Buyer agrees to buy and Seller agrees to sell the Property described below on the terms and conditions set 14 forth in this contract (Contract). 15 2. PARTIES AND PROPERTY. 16 2.1. Buyer. City of Wheat Ridge (Buyer) will take title 17 to the Property described below as Joint Tenants Tenants In Common Other in severalty . 18 2.2. No Assignability. This Contract IS NOT assignable by Buyer unless otherwise specified in Additional Provisions. 19 2.3. Seller. Jefferson County School District R-1 (Seller) is the current owner of the Property described below. 20 2.4. Property. The Property is the following legally described real estate in the County of Jefferson, Colorado (insert legal 21 description): 22 23 An approximately 1.62 acre (70,554 square feet more or less)-acre portion of Stevens Elementary School, as depicted on 24 the site plan set forth in Exhibit A, attached hereto and made a part hereof (Site Plan), the legal description of which is to 25 be established pursuant to the Survey (as defined in this Contract 26 27 28 29 known as: 7085 W. 38th Avenue, Wheat Ridge, Colorado 80033 , 30 Street Address City State Zip 31 together with the interests, easements, rights, benefits, improvements and attached fixtures appurtenant thereto and all interest of 32 Seller in vacated streets and alleys adjacent thereto, except as herein excluded (Property). 33 2.5. Inclusions. The Purchase Price includes the following items (Inclusions): 34 2.5.1. Inclusions – Attached. If attached to the Property on the date of this Contract, the following items are 35 included unless excluded under Exclusions: lighting, heating, plumbing, ventilating and air conditioning units, TV antennas, inside 36 telephone, network and coaxial (cable) wiring and connecting blocks/jacks, plants, mirrors, floor coverings, intercom systems, built-37 in kitchen appliances, sprinkler systems and controls, built-in vacuum systems (including accessories) and garage door openers 38 (including N/A remote controls). If checked, the following are owned by the Seller and included: Solar Panels Water 39 Softeners Security Systems Satellite Systems (including satellite dishes). Leased items should be listed under § 2.5.7. 40 (Leased Items). If any additional items are attached to the Property after the date of this Contract, such additional items are also 41 included in the Purchase Price. 42 2.5.2. Inclusions – Not Attached. If on the Property, whether attached or not, on the date of this Contract, the 43 following items are included unless excluded under Exclusions: storm windows, storm doors, window and porch shades, awnings, 44 blinds, screens, window coverings and treatments, curtain rods, drapery rods, fireplace inserts, fireplace screens, fireplace grates, 45 heating stoves, storage sheds, carbon monoxide alarms, smoke/fire detectors and all keys. 46 2.5.3. Other Inclusions. The following items, whether fixtures or personal property, are also included in the 47 Purchase Price: 48 49 50 51 52 53 CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 2 of 19 54 2.5.4. Encumbered Inclusions. Any Inclusions owned by Seller (e.g., owned solar panels) must be conveyed at 55 Closing by Seller free and clear of all taxes (except personal property and general real estate taxes for the year of Closing), liens and 56 encumbrances, except: 57 58 59 60 61 2.5.5. Personal Property Conveyance. Conveyance of all personal property will be by bill of sale or other 62 applicable legal instrument. 63 2.5.6. Parking and Storage Facilities. The use or ownership of the following parking facilities: 64 N/A; and the use or ownership of the following storage facilities: N/A. Note to Buyer: If exact rights to the parking and storage 65 facilities is a concern to Buyer, Buyer should investigate. 66 2.5.7. Leased Items. The following personal property is currently leased to Seller which will be transferred to Buyer 67 at Closing (Leased Items): 68 69 70 71 2.5.8. Trade Fixtures. With respect to trade fixtures, Seller and Buyer agree as follows: 72 73 74 75 The trade fixtures to be conveyed at Closing will be conveyed by Seller free and clear of all taxes (except personal 76 property taxes for the year of Closing), liens and encumbrances, except . Conveyance 77 will be by bill of sale or other applicable legal instrument. 78 2.6. Exclusions. The following items are excluded (Exclusions): 79 80 81 82 2.7. Water Rights/Well Rights. 83 2.7.1. Deeded Water Rights. The following legally described water rights: 84 85 86 87 Any deeded water rights will be conveyed by a good and sufficient deed at Closing. 88 2.7.2. Other Rights Relating to Water. The following rights relating to water not included in §§ 2.7.1., 2.7.3. and 89 2.7.4., will be transferred to Buyer at Closing: 90 91 92 93 94 95 96 2.7.3. Well Rights. Seller agrees to supply required information to Buyer about the well. Buyer understands that if 97 the well to be transferred is a “Small Capacity Well” or a “Domestic Exempt Water Well” used for ordinary household purposes, 98 Buyer must, prior to or at Closing, complete a Change in Ownership form for the well. If an existing well has not been registered 99 with the Colorado Division of Water Resources in the Department of Natural Resources (Division), Buyer must complete a 100 registration of existing well form for the well and pay the cost of registration. If no person will be providing a closing service in 101 connection with the transaction, Buyer must file the form with the Division within sixty days after Closing. The Well Permit # is 102 . 103 2.7.4. Water Stock Certificates. The water stock certificates to be transferred at Closing are as follows: 104 105 106 107 108 109 2.7.5. Conveyance. If Buyer is to receive any rights to water pursuant to § 2.7.2. (Other Rights Relating to Water), 110 § 2.7.3. (Well Rights), or § 2.7.4. (Water Stock Certificates), Seller agrees to convey such rights to Buyer by executing the applicable 111 legal instrument at Closing. 112 CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 3 of 19 2.7.6. Water Rights Review. Buyer Does Does Not have a Right to Terminate if examination of the Water 113 Rights is unsatisfactory to Buyer on or before the Water Rights Examination Deadline. 114 3. DATES, DEADLINES AND APPLICABILITY. 115 3.1. Dates and Deadlines. 116 Item No. Reference Event Date or Deadline 1 § 3 Time of Day Deadline 4:00 p.m. MT 2 § 4 Alternative Earnest Money Deadline N/A Title 3 § 8 Record Title Deadline (and Tax Certificate) 10 days after MEC 4 § 8 Record Title Objection Deadline 90 days after MEC 5 § 8 Off-Record Title Deadline 10 days after MEC 6 § 8 Off-Record Title Objection Deadline 90 days after MEC 7 § 8 Title Resolution Deadline 95 days after MEC 8 § 8 Third Party Right to Purchase/Approve Deadline N/A Owners’ Association 9 § 7 Association Documents Deadline 10 days after MEC 10 § 7 Association Documents Termination Deadline 90 days after MEC Seller’s Disclosures 11 § 10 Seller’s Property Disclosure Deadline 10 days after MEC 12 § 10 Lead-Based Paint Disclosure Deadline (if Residential Addendum attached) N/A Loan and Credit 13 § 5 New Loan Application Deadline N/A 14 § 5 New Loan Terms Deadline N/A 15 § 5 New Loan Availability Deadline N/A 16 § 5 Buyer’s Credit Information Deadline N/A 17 § 5 Disapproval of Buyer’s Credit Information Deadline N/A 18 § 5 Existing Loan Deadline N/A 19 § 5 Existing Loan Termination Deadline N/A 20 § 5 Loan Transfer Approval Deadline N/A 21 § 4 Seller or Private Financing Deadline N/A Appraisal 22 § 6 Appraisal Deadline N/A 23 § 6 Appraisal Objection Deadline N/A 24 § 6 Appraisal Resolution Deadline N/A Survey 25 § 9 New ILC or New Survey Deadline 60 days after MEC 26 § 9 New ILC or New Survey Objection Deadline 90 days after MEC 27 § 9 New ILC or New Survey Resolution Deadline 95 days after MEC Inspection and Due Diligence 28 § 2 Water Rights Examination Deadline N/A 29 § 8 Mineral Rights Examination Deadline N/A 30 § 10 Inspection Termination Deadline 90 days after MEC 31 § 10 Inspection Objection Deadline 90 days after MEC 32 § 10 Inspection Resolution Deadline 95 days after MEC 33 § 10 Property Insurance Termination Deadline N/A 34 § 10 Due Diligence Documents Delivery Deadline 10 days after MEC 35 § 10 Due Diligence Documents Objection Deadline 90 days after MEC 36 § 10 Due Diligence Documents Resolution Deadline 95 days after MEC 37 § 10 Environmental Inspection Termination Deadline 90 days after MEC 38 § 10 ADA Evaluation Termination Deadline 90 days after MEC 39 § 10 Conditional Sale Deadline N/A CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 4 of 19 40 § 10 Lead-Based Paint Termination Deadline (if Residential Addendum attached) N/A 41 § 11 Estoppel Statements Deadline N/A 42 § 11 Estoppel Statements Termination Deadline N/A Closing and Possession 43 § 12 Closing Date 120 days after MEC 44 § 17 Possession Date At Closing 45 § 17 Possession Time At Closing 46 § 27 Acceptance Deadline Date March 31, 2024 47 § 27 Acceptance Deadline Time 4:00 p.m. MT 3.2. Applicability of Terms. If any deadline blank in § 3.1. (Dates and Deadlines) is left blank or completed with “N/A”, 117 or the word “Deleted,” such deadline is not applicable and the corresponding provision containing the deadline is deleted. Any box 118 checked in this Contract means the corresponding provision applies. If no box is checked in a provision that contains a selection of 119 “None”, such provision means that “None” applies. 120 The abbreviation “MEC” (mutual execution of this Contract) means the date upon which both parties have signed this Contract. The 121 abbreviation “N/A” as used in this Contract means not applicable. 122 3.3. Day; Computation of Period of Days; Deadlines. 123 3.3.1. Day. As used in this Contract, the term “day” means the entire day ending at 11:59 p.m., United States 124 Mountain Time (Standard or Daylight Savings, as applicable). Except however, if a Time of Day Deadline is specified in § 3.1. 125 (Dates and Deadlines), all Objection Deadlines, Resolution Deadlines, Examination Deadlines and Termination Deadlines will end 126 on the specified deadline date at the time of day specified in the Time of Day Deadline, United States Mountain Time. If Time of 127 Day Deadline is left blank or “N/A” the deadlines will expire at 11:59 p.m., United States Mountain Time. 128 3.3.2. Computation of Period of Days. In computing a period of days (e.g., three days after MEC), when the 129 ending date is not specified, the first day is excluded and the last day is included. 130 3.3.3. Deadlines. If any deadline falls on a Saturday, Sunday or federal or Colorado state holiday (Holiday), such 131 deadline Will Will Not be extended to the next day that is not a Saturday, Sunday or Holiday. Should neither box be checked, 132 the deadline will not be extended. 133 4. PURCHASE PRICE AND TERMS. 134 4.1. Price and Terms. The Purchase Price set forth below is payable in U.S. Dollars by Buyer as follows: 135 Item No. Reference Item Amount Amount 1 § 4.1. Purchase Price $ N/A 2 § 4.3. Earnest Money $ N/A 3 § 4.5. New Loan $ N/A 4 § 4.6. Assumption Balance $ N/A 5 § 4.7. Private Financing $ N/A 6 § 4.7. Seller Financing $ N/A 7 8 9 § 4.4. Cash at Closing $ N/A 10 TOTAL $ N/A $ N/A 4.2. Seller Concession. At Closing, Seller will credit to Buyer $_ N/A (Seller Concession). The Seller Concession may be 136 used for any Buyer fee, cost, charge or expenditure to the extent the amount is allowed by the Buyer’s lender and is included in the 137 Closing Statement or Closing Disclosure at Closing. Examples of allowable items to be paid for by the Seller Concession include, 138 but are not limited to: Buyer’s closing costs, loan discount points, loan origination fees, prepaid items and any other fee, cost, charge, 139 expense or expenditure. Seller Concession is in addition to any sum Seller has agreed to pay or credit Buyer elsewhere in this 140 Contract. 141 4.3. Earnest Money. The Earnest Money set forth in this Section, in the form of a N/A, will be payable to and held by N/A 142 (Earnest Money Holder), in its trust account, on behalf of both Seller and Buyer. The Earnest Money deposit must be tendered, by 143 Buyer, with this Contract unless the parties mutually agree to an Alternative Earnest Money Deadline for its payment. The parties 144 authorize delivery of the Earnest Money deposit to the company conducting the Closing (Closing Company), if any, at or before 145 Closing. In the event Earnest Money Holder has agreed to have interest on Earnest Money deposits transferred to a fund established 146 CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 5 of 19 for the purpose of providing affordable housing to Colorado residents, Seller and Buyer acknowledge and agree that any interest 147 accruing on the Earnest Money deposited with the Earnest Money Holder in this transaction will be transferred to such fund. 148 4.3.1. Alternative Earnest Money Deadline. The deadline for delivering the Earnest Money, if other than at the 149 time of tender of this Contract, is as set forth as the Alternative Earnest Money Deadline. 150 4.3.2. Disposition of Earnest Money. If Buyer has a Right to Terminate and timely terminates, Buyer is entitled 151 to the return of Earnest Money as provided in this Contract. If this Contract is terminated as set forth in § 24 and, except as provided 152 in § 23 (Earnest Money Dispute), if the Earnest Money has not already been returned following receipt of a Notice to Terminate, 153 Seller agrees to execute and return to Buyer or Broker working with Buyer, written mutual instructions (e.g., Earnest Money Release 154 form), within three days of Seller’s receipt of such form. If Seller is entitled to the Earnest Money, and, except as provided in § 23 155 (Earnest Money Dispute), if the Earnest Money has not already been paid to Seller, following receipt of an Earnest Money Release 156 form, Buyer agrees to execute and return to Seller or Broker working with Seller, written mutual instructions (e.g., Earnest Money 157 Release form), within three days of Buyer’s receipt. 158 4.3.2.1. Seller Failure to Timely Return Earnest Money. If Seller fails to timely execute and return the 159 Earnest Money Release Form, or other written mutual instructions, Seller is in default and liable to Buyer as set forth in “If Seller 160 is in Default”, § 20.2. and § 21, unless Seller is entitled to the Earnest Money due to a Buyer default. 161 4.3.2.2. Buyer Failure to Timely Release Earnest Money. If Buyer fails to timely execute and return the 162 Earnest Money Release Form, or other written mutual instructions, Buyer is in default and liable to Seller as set forth in “If Buyer 163 is in Default, § 20.1 and § 21, unless Buyer is entitled to the Earnest Money due to a Seller Default. 164 4.4. Form of Funds; Time of Payment; Available Funds. 165 4.4.1. Good Funds. All amounts payable by the parties at Closing, including any loan proceeds, Cash at Closing 166 and closing costs, must be in funds that comply with all applicable Colorado laws, including electronic transfer funds, certified 167 check, savings and loan teller’s check and cashier’s check (Good Funds). 168 4.4.2. Time of Payment. All funds, including the Purchase Price to be paid by Buyer, must be paid before or at 169 Closing or as otherwise agreed in writing between the parties to allow disbursement by Closing Company at Closing OR SUCH 170 NONPAYING PARTY WILL BE IN DEFAULT. 171 4.4.3. Available Funds. Buyer represents that Buyer, as of the date of this Contract, Does Does Not have 172 funds that are immediately verifiable and available in an amount not less than the amount stated as Cash at Closing in § 4.1. 173 4.5. New Loan. Intentionally deleted. 174 4.6. Assumption. Intentionally deleted. 175 4.7. Seller or Private Financing. Intentionally deleted. 176 TRANSACTION PROVISIONS 177 5. FINANCING CONDITIONS AND OBLIGATIONS. Intentionally deleted. 178 179 6. APPRAISAL PROVISIONS. Intentionally deleted. 180 181 7. OWNERS’ ASSOCIATIONS. This Section is applicable if the Property is located within one or more Common Interest 182 Communities and subject to one or more declarations (Association). 183 7.1. Common Interest Community Disclosure. THE PROPERTY IS LOCATED WITHIN A COMMON 184 INTEREST COMMUNITY AND IS SUBJECT TO THE DECLARATION FOR THE COMMUNITY. THE OWNER OF 185 THE PROPERTY WILL BE REQUIRED TO BE A MEMBER OF THE OWNERS’ ASSOCIATION FOR THE 186 COMMUNITY AND WILL BE SUBJECT TO THE BYLAWS AND RULES AND REGULATIONS OF THE 187 ASSOCIATION. THE DECLARATION, BYLAWS AND RULES AND REGULATIONS WILL IMPOSE FINANCIAL 188 OBLIGATIONS UPON THE OWNER OF THE PROPERTY, INCLUDING AN OBLIGATION TO PAY ASSESSMENTS 189 OF THE ASSOCIATION. IF THE OWNER DOES NOT PAY THESE ASSESSMENTS, THE ASSOCIATION COULD 190 PLACE A LIEN ON THE PROPERTY AND POSSIBLY SELL IT TO PAY THE DEBT. THE DECLARATION, BYLAWS 191 AND RULES AND REGULATIONS OF THE COMMUNITY MAY PROHIBIT THE OWNER FROM MAKING 192 CHANGES TO THE PROPERTY WITHOUT AN ARCHITECTURAL REVIEW BY THE ASSOCIATION (OR A 193 COMMITTEE OF THE ASSOCIATION) AND THE APPROVAL OF THE ASSOCIATION. PURCHASERS OF 194 PROPERTY WITHIN THE COMMON INTEREST COMMUNITY SHOULD INVESTIGATE THE FINANCIAL 195 OBLIGATIONS OF MEMBERS OF THE ASSOCIATION. PURCHASERS SHOULD CAREFULLY READ THE 196 DECLARATION FOR THE COMMUNITY AND THE BYLAWS AND RULES AND REGULATIONS OF THE 197 ASSOCIATION. 198 7.2. Association Documents to Buyer. Seller is obligated to provide to Buyer the Association Documents (defined below), 199 at Seller’s expense, on or before Association Documents Deadline. Seller authorizes the Association to provide the Association 200 CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 6 of 19 Documents to Buyer, at Seller’s expense. Seller’s obligation to provide the Association Documents is fulfilled upon Buyer’s receipt 201 of the Association Documents, regardless of who provides such documents. 202 7.3. Association Documents. Association documents (Association Documents) consist of the following: 203 7.3.1. All Association declarations, articles of incorporation, bylaws, articles of organization, operating agreements, 204 rules and regulations, party wall agreements and the Association’s responsible governance policies adopted under § 38-33.3-209.5, 205 C.R.S.; 206 7.3.2. Minutes of: (1) the annual owners’ or members’ meeting and (2) any executive boards’ or managers’ meetings; 207 such minutes include those provided under the most current annual disclosure required under § 38-33.3-209.4, C.R.S. (Annual 208 Disclosure) and minutes of meetings, if any, subsequent to the minutes disclosed in the Annual Disclosure. If none of the preceding 209 minutes exist, then the most recent minutes, if any (§§ 7.3.1. and 7.3.2., collectively, Governing Documents); and 210 7.3.3. List of all Association insurance policies as provided in the Association’s last Annual Disclosure, including, 211 but not limited to, property, general liability, association director and officer professional liability and fidelity policies. The list must 212 include the company names, policy limits, policy deductibles, additional named insureds and expiration dates of the policies listed 213 (Association Insurance Documents); 214 7.3.4. A list by unit type of the Association’s assessments, including both regular and special assessments as 215 disclosed in the Association’s last Annual Disclosure; 216 7.3.5. The Association’s most recent financial documents which consist of: (1) the Association’s operating budget 217 for the current fiscal year, (2) the Association’s most recent annual financial statements, including any amounts held in reserve for 218 the fiscal year immediately preceding the Association’s last Annual Disclosure, (3) the results of the Association’s most recent 219 available financial audit or review, (4) list of the fees and charges (regardless of name or title of such fees or charges) that the 220 Association’s community association manager or Association will charge in connection with the Closing including, but not limited 221 to, any fee incident to the issuance of the Association’s statement of assessments (Status Letter), any rush or update fee charged for 222 the Status Letter, any record change fee or ownership record transfer fees (Record Change Fee), fees to access documents, (5) list of 223 all assessments required to be paid in advance, reserves or working capital due at Closing and (6) reserve study, if any (§§ 7.3.4. and 224 7.3.5., collectively, Financial Documents); 225 7.3.6. Any written notice from the Association to Seller of a “construction defect action” under § 38-33.3-303.5, 226 C.R.S. within the past six months and the result of whether the Association approved or disapproved such action (Construction 227 Defect Documents). Nothing in this Section limits the Seller’s obligation to disclose adverse material facts as required under § 10.2. 228 (Disclosure of Adverse Material Facts; Subsequent Disclosure; Present Condition) including any problems or defects in the common 229 elements or limited common elements of the Association property. 230 7.4. Conditional on Buyer’s Review. Buyer has the right to review the Association Documents. Buyer has the Right to 231 Terminate under § 24.1., on or before Association Documents Termination Deadline, based on any unsatisfactory provision in 232 any of the Association Documents, in Buyer’s sole subjective discretion. Should Buyer receive the Association Documents after 233 Association Documents Deadline, Buyer, at Buyer’s option, has the Right to Terminate under § 24.1. by Buyer’s Notice to 234 Terminate received by Seller on or before ten days after Buyer’s receipt of the Association Documents. If Buyer does not receive 235 the Association Documents, or if Buyer’s Notice to Terminate would otherwise be required to be received by Seller after Closing 236 Date, Buyer’s Notice to Terminate must be received by Seller on or before Closing. If Seller does not receive Buyer’s Notice to 237 Terminate within such time, Buyer accepts the provisions of the Association Documents as satisfactory and Buyer waives any Right 238 to Terminate under this provision, notwithstanding the provisions of § 8.6. (Third Party Right to Purchase/Approve). 239 8. TITLE INSURANCE, RECORD TITLE AND OFF-RECORD TITLE. 240 8.1. Evidence of Record Title. 241 8.1.1. Seller Selects Title Insurance Company. If this box is checked, Seller will select the title insurance 242 company to furnish the owner’s title insurance policy at Seller’s expense. On or before Record Title Deadline, Seller must furnish 243 to Buyer, a current commitment for an owner’s title insurance policy (Title Commitment), in an amount equal to the Purchase Price, 244 or if this box is checked, an Abstract of Title certified to a current date. Seller will cause the title insurance policy to be issued 245 and delivered to Buyer as soon as practicable at or after Closing. 246 8.1.2. Buyer Selects Title Insurance Company. If this box is checked, Buyer will select the title insurance 247 company to furnish the owner’s title insurance policy at Buyer’s expense. On or before Record Title Deadline, Buyer must furnish to 248 Seller, a current commitment for owner’s title insurance policy (Title Commitment), in an amount equal to the Purchase Price. 249 If neither box in § 8.1.1. or § 8.1.2. is checked, § 8.1.1. applies. 250 8.1.3. Owner’s Extended Coverage (OEC). The Title Commitment Will Will Not contain Owner’s 251 Extended Coverage (OEC). If the Title Commitment is to contain OEC, it will commit to delete or insure over the standard exceptions 252 which relate to: (1) parties in possession, (2) unrecorded easements, (3) survey matters, (4) unrecorded mechanics’ liens, (5) gap 253 period (period between the effective date and time of commitment to the date and time the deed is recorded) and (6) unpaid taxes, 254 assessments and unredeemed tax sales prior to the year of Closing. Any additional premium expense to obtain OEC will be paid by 255 Buyer Seller One-Half by Buyer and One-Half by Seller Other__________________________. 256 Regardless of whether the Contract requires OEC, the Title Insurance Commitment may not provide OEC or delete or insure over 257 any or all of the standard exceptions for OEC. The Title Insurance Company may require a New Survey or New ILC, defined below, 258 CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 7 of 19 among other requirements for OEC. If the Title Insurance Commitment is not satisfactory to Buyer, Buyer has a right to object under 259 § 8.7. (Right to Object to Title, Resolution). 260 8.1.4. Title Documents. Title Documents consist of the following: (1) copies of any plats, declarations, covenants, 261 conditions and restrictions burdening the Property and (2) copies of any other documents (or, if illegible, summaries of such 262 documents) listed in the schedule of exceptions (Exceptions) in the Title Commitment furnished to Buyer (collectively, Title 263 Documents). 264 8.1.5. Copies of Title Documents. Buyer must receive, on or before Record Title Deadline, copies of all Title 265 Documents. This requirement pertains only to documents as shown of record in the office of the clerk and recorder in the county 266 where the Property is located. The cost of furnishing copies of the documents required in this Section will be at the expense of the 267 party or parties obligated to pay for the owner’s title insurance policy. 268 8.1.6. Existing Abstracts of Title. Seller must deliver to Buyer copies of any abstracts of title covering all or any 269 portion of the Property (Abstract of Title) in Seller’s possession on or before Record Title Deadline. 270 8.2. Record Title. Buyer has the right to review and object to the Abstract of Title or Title Commitment and any of the 271 Title Documents as set forth in § 8.7. (Right to Object to Title, Resolution) on or before Record Title Objection Deadline. Buyer’s 272 objection may be based on any unsatisfactory form or content of Title Commitment or Abstract of Title, notwithstanding § 13, or 273 any other unsatisfactory title condition, in Buyer’s sole subjective discretion. If the Abstract of Title, Title Commitment or Title 274 Documents are not received by Buyer on or before the Record Title Deadline, or if there is an endorsement to the Title Commitment 275 that adds a new Exception to title, a copy of the new Exception to title and the modified Title Commitment will be delivered to 276 Buyer. Buyer has until the earlier of Closing or ten days after receipt of such documents by Buyer to review and object to: (1) any 277 required Title Document not timely received by Buyer, (2) any change to the Abstract of Title, Title Commitment or Title Documents, 278 or (3) any endorsement to the Title Commitment. If Seller receives Buyer’s Notice to Terminate or Notice of Title Objection, 279 pursuant to this § 8.2. (Record Title), any title objection by Buyer is governed by the provisions set forth in § 8.7. (Right to Object 280 to Title, Resolution). If Seller has fulfilled all Seller’s obligations, if any, to deliver to Buyer all documents required by § 8.1. 281 (Evidence of Record Title) and Seller does not receive Buyer’s Notice to Terminate or Notice of Title Objection by the applicable 282 deadline specified above, Buyer accepts the condition of title as disclosed by the Abstract of Title, Title Commitment and Title 283 Documents as satisfactory. 284 8.3. Off-Record Title. Seller must deliver to Buyer, on or before Off-Record Title Deadline, true copies of all existing 285 surveys in Seller’s possession pertaining to the Property and must disclose to Buyer all easements, liens (including, without 286 limitation, governmental improvements approved, but not yet installed) or other title matters not shown by public records, of which 287 Seller has actual knowledge (Off-Record Matters). This Section excludes any New ILC or New Survey governed under § 9 (New 288 ILC, New Survey). Buyer has the right to inspect the Property to investigate if any third party has any right in the Property not shown 289 by public records (e.g., unrecorded easement, boundary line discrepancy or water rights). Buyer’s Notice to Terminate or Notice of 290 Title Objection of any unsatisfactory condition (whether disclosed by Seller or revealed by such inspection, notwithstanding § 8.2. 291 (Record Title) and § 13 (Transfer of Title)), in Buyer’s sole subjective discretion, must be received by Seller on or before Off-292 Record Title Objection Deadline. If an Off-Record Matter is received by Buyer after the Off-Record Title Deadline, Buyer has 293 until the earlier of Closing or ten days after receipt by Buyer to review and object to such Off-Record Matter. If Seller receives 294 Buyer’s Notice to Terminate or Notice of Title Objection pursuant to this § 8.3. (Off-Record Title), any title objection by Buyer is 295 governed by the provisions set forth in § 8.7. (Right to Object to Title, Resolution). If Seller does not receive Buyer’s Notice to 296 Terminate or Notice of Title Objection by the applicable deadline specified above, Buyer accepts title subject to such Off-Record 297 Matters and rights, if any, of third parties not shown by public records of which Buyer has actual knowledge. 298 8.4. Special Taxing and Metropolitan Districts. Intentionally Deleted. 299 8.5. Tax Certificate. A tax certificate paid for by Seller Buyer, for the Property (Tax Certificate) must be delivered 300 to Buyer on or before Record Title Deadline. If the content of the Tax Certificate is unsatisfactory to Buyer, in Buyer’s sole 301 subjective discretion, Buyer may terminate, on or before Record Title Objection Deadline. Should Buyer receive the Tax Certificate 302 after Record Title Deadline, Buyer, at Buyer’s option, has the Right to Terminate under § 24.1. by Buyer’s Notice to Terminate 303 received by Seller on or before ten days after Buyer’s receipt of the Tax Certificate. If Buyer does not receive the Tax Certificate, or 304 if Buyer’s Notice to Terminate would otherwise be required to be received by Seller after Closing Date, Buyer’s Notice to Terminate 305 must be received by Seller on or before Closing. If Seller does not receive Buyer’s Notice to Terminate within such time, Buyer 306 accepts the content of the Tax Certificate as satisfactory and Buyer waives any Right to Terminate under this provision. If Buyer’s 307 loan specified in §4.5.3, (Loan Limitations) prohibits Buyer from paying for the Tax Certificate, the Tax Certificate will be paid for 308 by Seller. 309 8.6. Third Party Right to Purchase/Approve. If any third party has a right to purchase the Property (e.g., right of first 310 refusal on the Property, right to purchase the Property under a lease or an option held by a third party to purchase the Property) or a 311 right of a third party to approve this Contract, Seller must promptly submit this Contract according to the terms and conditions of 312 such right. If the third-party holder of such right exercises its right this Contract will terminate. If the third party’s right to purchase 313 is waived explicitly or expires, or the Contract is approved, this Contract will remain in full force and effect. Seller must promptly 314 notify Buyer in writing of the foregoing. If the third party right to purchase is exercised or approval of this Contract has not occurred 315 on or before Third Party Right to Purchase/Approve Deadline, this Contract will then terminate. Seller will supply to Buyer, in 316 writing, details of any Third Party Right to Purchase the Property on or before the Record Title Deadline. 317 CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 8 of 19 8.7. Right to Object to Title, Resolution. Buyer has a right to object or terminate, in Buyer’s sole subjective discretion, 318 based on any title matters including those matters set forth in § 8.2. (Record Title), § 8.3. (Off-Record Title), § 8.5. (Tax Certificate) 319 and § 13 (Transfer of Title). If Buyer exercises Buyer’s rights to object or terminate based on any such title matter, on or before the 320 applicable deadline, Buyer has the following options: 321 8.7.1. Title Objection, Resolution. If Seller receives Buyer’s written notice objecting to any title matter (Notice of 322 Title Objection) on or before the applicable deadline and if Buyer and Seller have not agreed to a written settlement thereof on or 323 before Title Resolution Deadline, this Contract will terminate on the expiration of Title Resolution Deadline, unless Seller receives 324 Buyer’s written withdrawal of Buyer’s Notice of Title Objection (i.e., Buyer’s written notice to waive objection to such items and 325 waives the Right to Terminate for that reason), on or before expiration of Title Resolution Deadline. If either the Record Title 326 Deadline or the Off-Record Title Deadline, or both, are extended pursuant to § 8.2. (Record Title) or § 8.3. (Off-Record Title) the 327 Title Resolution Deadline also will be automatically extended to the earlier of Closing or fifteen days after Buyer’s receipt of the 328 applicable documents; or 329 8.7.2. Title Objection, Right to Terminate. Buyer may exercise the Right to Terminate under § 24.1., on or before 330 the applicable deadline, based on any title matter unsatisfactory to Buyer, in Buyer’s sole subjective discretion. 331 8.8. Title Advisory. The Title Documents affect the title, ownership and use of the Property and should be reviewed 332 carefully. Additionally, other matters not reflected in the Title Documents may affect the title, ownership and use of the Property, 333 including, without limitation, boundary lines and encroachments, set-back requirements, area, zoning, building code violations, 334 unrecorded easements and claims of easements, leases and other unrecorded agreements, water on or under the Property and various 335 laws and governmental regulations concerning land use, development and environmental matters. 336 8.8.1. OIL, GAS, WATER AND MINERAL DISCLOSURE. THE SURFACE ESTATE OF THE 337 PROPERTY MAY BE OWNED SEPARATELY FROM THE UNDERLYING MINERAL ESTATE AND TRANSFER OF 338 THE SURFACE ESTATE MAY NOT NECESSARILY INCLUDE TRANSFER OF THE MINERAL ESTATE OR WATER 339 RIGHTS. THIRD PARTIES MAY OWN OR LEASE INTERESTS IN OIL, GAS, OTHER MINERALS, GEOTHERMAL 340 ENERGY OR WATER ON OR UNDER THE SURFACE OF THE PROPERTY, WHICH INTERESTS MAY GIVE THEM 341 RIGHTS TO ENTER AND USE THE SURFACE OF THE PROPERTY TO ACCESS THE MINERAL ESTATE, OIL, 342 GAS OR WATER. 343 8.8.2. SURFACE USE AGREEMENT. THE USE OF THE SURFACE ESTATE OF THE PROPERTY TO 344 ACCESS THE OIL, GAS OR MINERALS MAY BE GOVERNED BY A SURFACE USE AGREEMENT, A 345 MEMORANDUM OR OTHER NOTICE OF WHICH MAY BE RECORDED WITH THE COUNTY CLERK AND 346 RECORDER. 347 8.8.3. OIL AND GAS ACTIVITY. OIL AND GAS ACTIVITY THAT MAY OCCUR ON OR ADJACENT 348 TO THE PROPERTY MAY INCLUDE, BUT IS NOT LIMITED TO, SURVEYING, DRILLING, WELL COMPLETION 349 OPERATIONS, STORAGE, OIL AND GAS, OR PRODUCTION FACILITIES, PRODUCING WELLS, REWORKING 350 OF CURRENT WELLS AND GAS GATHERING AND PROCESSING FACILITIES. 351 8.8.4. ADDITIONAL INFORMATION. BUYER IS ENCOURAGED TO SEEK ADDITIONAL 352 INFORMATION REGARDING OIL AND GAS ACTIVITY ON OR ADJACENT TO THE PROPERTY, INCLUDING 353 DRILLING PERMIT APPLICATIONS. THIS INFORMATION MAY BE AVAILABLE FROM THE COLORADO OIL 354 AND GAS CONSERVATION COMMISSION. 355 8.8.5. Title Insurance Exclusions. Matters set forth in this Section and others, may be excepted, excluded from, or 356 not covered by the owner’s title insurance policy. 357 8.9. Mineral Rights Review. Buyer Does Does Not have a Right to Terminate if examination of the Mineral 358 Rights is unsatisfactory to Buyer on or before the Mineral Rights Examination Deadline. 359 9. NEW ILC, NEW SURVEY. 360 9.1. New ILC or New Survey. If the box is checked, (1) New Improvement Location Certificate (New ILC); or, (2) 361 New Survey in the form of ALTA; is required and the following will apply: 362 9.1.1. Ordering of New ILC or New Survey. Seller Buyer will order the New ILC or New Survey. The 363 New ILC or New Survey may also be a previous ILC or survey that is in the above-required form, certified and updated as of a date 364 after the date of this Contract. 365 9.1.2. Payment for New ILC or New Survey. The cost of the New ILC or New Survey will be paid, on or before 366 Closing, by: Seller Buyer or: 367 368 369 9.1.3. Delivery of New ILC or New Survey. Buyer, Seller, the issuer of the Title Commitment (or the provider of 370 the opinion of title if an Abstract of Title) and N/A will receive a New ILC or New Survey on or before New ILC or New Survey 371 Deadline. 372 9.1.4. Certification of New ILC or New Survey. The New ILC or New Survey will be certified by the surveyor to 373 all those who are to receive the New ILC or New Survey. 374 CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 9 of 19 9.2. Buyer’s Right to Waive or Change New ILC or New Survey Selection. Buyer may select a New ILC or New 375 Survey different than initially specified in this Contract if there is no additional cost to Seller or change to the New ILC or New 376 Survey Objection Deadline. Buyer may, in Buyer’s sole subjective discretion, waive a New ILC or New Survey if done prior to 377 Seller incurring any cost for the same. 378 9.3. New ILC or New Survey Objection. Buyer has the right to review and object based on the New ILC or New Survey. 379 If the New ILC or New Survey is not timely received by Buyer or is unsatisfactory to Buyer, in Buyer’s sole subjective discretion, 380 Buyer may, on or before New ILC or New Survey Objection Deadline, notwithstanding § 8.3. or § 13: 381 9.3.1. Notice to Terminate. Notify Seller in writing, pursuant to § 24.1, that this Contract is terminated; or 382 9.3.2. New ILC or New Survey Objection. Deliver to Seller a written description of any matter that was to be 383 shown or is shown in the New ILC or New Survey that is unsatisfactory and that Buyer requires Seller to correct. 384 9.3.3. New ILC or New Survey Resolution. If a New ILC or New Survey Objection is received by Seller, on or 385 before New ILC or New Survey Objection Deadline and if Buyer and Seller have not agreed in writing to a settlement thereof on 386 or before New ILC or New Survey Resolution Deadline, this Contract will terminate on expiration of the New ILC or New Survey 387 Resolution Deadline, unless Seller receives Buyer’s written withdrawal of the New ILC or New Survey Objection before such 388 termination (i.e., on or before expiration of New ILC or New Survey Resolution Deadline). 389 DISCLOSURE, INSPECTION AND DUE DILIGENCE 390 10. PROPERTY DISCLOSURE, INSPECTION, INDEMNITY, INSURABILITY AND DUE DILIGENCE. 391 10.1. Seller’s Property Disclosure. On or before Seller’s Property Disclosure Deadline, Seller agrees to deliver to Buyer 392 the most current version of the applicable Colorado Real Estate Commission’s Seller’s Property Disclosure form completed by Seller 393 to Seller’s actual knowledge and current as of the date of this Contract. 394 10.2. Disclosure of Adverse Material Facts; Subsequent Disclosure; Present Condition. Seller must disclose to Buyer 395 any adverse material facts actually known by Seller as of the date of this Contract. Seller agrees that disclosure of adverse material 396 facts will be in writing. In the event Seller discovers an adverse material fact after the date of this Contract, Seller must timely 397 disclose such adverse fact to Buyer. Buyer has the Right to Terminate based on the Seller’s new disclosure on the earlier of Closing 398 or five days after Buyer’s receipt of the new disclosure. Except as otherwise provided in this Contract, Buyer acknowledges that 399 Seller is conveying the Property to Buyer in an “As Is” condition, “Where Is” and “With All Faults.” 400 10.3. Inspection. Unless otherwise provided in this Contract, Buyer, acting in good faith, has the right to have inspections 401 (by one or more third parties, personally or both) of the Property, Leased Items, and Inclusions (Inspection), at Buyer’s expense. If 402 (1) the physical condition of the Property, including, but not limited to, the roof, walls, structural integrity of the Property, the 403 electrical, plumbing, HVAC and other mechanical systems of the Property, (2) the physical condition of the Inclusions and Leased 404 Items, (3) service to the Property (including utilities and communication services), systems and components of the Property (e.g., 405 heating and plumbing), (4) any proposed or existing transportation project, road, street or highway, or (5) any other activity, odor or 406 noise (whether on or off the Property) and its effect or expected effect on the Property or its occupants is unsatisfactory, in Buyer’s 407 sole subjective discretion, Buyer may: 408 10.3.1. Inspection Termination. On or before the Inspection Termination Deadline, notify Seller in writing, 409 pursuant to § 24.1., that this Contract is terminated due to any unsatisfactory condition, provided the Buyer did not previously deliver 410 an Inspection Objection. Buyer’s Right to Terminate under this provision expires upon delivery of an Inspection Objection to Seller 411 pursuant to § 10.3.2.; or 412 10.3.2. Inspection Objection. On or before the Inspection Objection Deadline, deliver to Seller a written 413 description of any unsatisfactory condition that Buyer requires Seller to correct. 414 10.3.3. Inspection Resolution. If an Inspection Objection is received by Seller, on or before Inspection Objection 415 Deadline and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Inspection Resolution Deadline, 416 this Contract will terminate on Inspection Resolution Deadline unless Seller receives Buyer’s written withdrawal of the Inspection 417 Objection before such termination (i.e., on or before expiration of Inspection Resolution Deadline). Nothing in this provision 418 prohibits the Buyer and the Seller from mutually terminating this Contract before the Inspection Resolution Deadline passes by 419 executing an Earnest Money Release. 420 10.4. Damage, Liens and Indemnity. Buyer, except as otherwise provided in this Contract or other written agreement 421 between the parties, is responsible for payment for all inspections, tests, surveys, engineering reports, or other reports performed at 422 Buyer’s request (Work) and must pay for any damage that occurs to the Property and Inclusions as a result of such Work. Buyer 423 must not permit claims or liens of any kind against the Property for Work performed on the Property. Buyer agrees to indemnify, 424 protect and hold Seller harmless from and against any liability, damage, cost or expense incurred by Seller and caused by any such 425 Work, claim, or lien. This indemnity includes Seller’s right to recover all costs and expenses incurred by Seller to defend against 426 any such liability, damage, cost or expense, or to enforce this Section, including Seller’s reasonable attorney fees, legal fees and 427 expenses. The provisions of this Section survive the termination of this Contract. This § 10.4. does not apply to items performed 428 pursuant to an Inspection Resolution. 429 CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 10 of 19 10.5. Insurability. Buyer has the Right to Terminate under § 24.1., on or before Property Insurance Termination 430 Deadline, based on any unsatisfactory provision of the availability, terms and conditions and premium for property insurance 431 (Property Insurance) on the Property, in Buyer’s sole subjective discretion. 432 10.6. Due Diligence. 433 10.6.1. Due Diligence Documents. Seller agrees to deliver copies of the following documents and information 434 pertaining to the Property and Leased Items (Due Diligence Documents) to Buyer on or before Due Diligence Documents Delivery 435 Deadline: 436 10.6.1.1. Occupancy Agreements. All current leases, including any amendments or other occupancy 437 agreements, pertaining to the Property. Those leases or other occupancy agreements pertaining to the Property that survive Closing 438 are as follows (Leases): 439 440 441 10.6.1.2. Leased Items Documents. If any lease of personal property (§ 2.5.7., Leased Items) will be 442 transferred to Buyer at Closing, Seller agrees to deliver copies of the leases and information pertaining to the personal property to 443 Buyer on or before Due Diligence Documents Delivery Deadline. Buyer Will Will Not assume the Seller’s obligations 444 under such leases for the Leased Items (§ 2.5.7., Leased Items). 445 446 10.6.1.3. Encumbered Inclusions Documents. If any Inclusions owned by Seller are encumbered 447 pursuant to § 2.5.4. (Encumbered Inclusions) above, Seller agrees to deliver copies of the evidence of debt, security and any other 448 documents creating the encumbrance to Buyer on or before Due Diligence Documents Delivery Deadline. Buyer Will Will 449 Not assume the debt on the Encumbered Inclusions (§ 2.5.4., Encumbered Inclusions). 450 451 10.6.1.4. Other Documents. If the respective box is checked, Seller agrees to additionally deliver copies 452 of the following: 453 10.6.1.4.1. All contracts relating to the operation, maintenance and management of the 454 Property; 455 10.6.1.4.2. Property tax bills for the last years; 456 10.6.1.4.3. As-built construction plans to the Property and the tenant improvements, including 457 architectural, electrical, mechanical and structural systems; engineering reports; and permanent Certificates of Occupancy, to the 458 extent now available; 459 10.6.1.4.4. A list of all Inclusions to be conveyed to Buyer; 460 10.6.1.4.5. Operating statements for the past years; 461 10.6.1.4.6. A rent roll accurate and correct to the date of this Contract; 462 10.6.1.4.7. A schedule of any tenant improvement work Seller is obligated to complete but 463 has not yet completed and capital improvement work either scheduled or in process on the date of this Contract; 464 10.6.1.4.8. All insurance policies pertaining to the Property and copies of any claims which 465 have been made for the past years; 466 10.6.1.4.9. Soils reports, surveys and engineering reports or data pertaining to the Property (if 467 not delivered earlier under § 8.3.); 468 10.6.1.4.10. Any and all existing documentation and reports regarding Phase I and II 469 environmental reports, letters, test results, advisories and similar documents respective to the existence or nonexistence of asbestos, 470 PCB transformers, or other toxic, hazardous or contaminated substances and/or underground storage tanks and/or radon gas. If no 471 reports are in Seller’s possession or known to Seller, Seller warrants that no such reports are in Seller’s possession or known to 472 Seller; 473 10.6.1.4.11. Any Americans with Disabilities Act reports, studies or surveys concerning the 474 compliance of the Property with said Act; 475 10.6.1.4.12. All permits, licenses and other building or use authorizations issued by any 476 governmental authority with jurisdiction over the Property and written notice of any violation of any such permits, licenses or use 477 authorizations, if any; and 478 10.6.1.4.13. Other: 479 480 481 482 483 484 10.6.2. Due Diligence Documents Review and Objection. Buyer has the right to review and object based on the Due 485 Diligence Documents. If the Due Diligence Documents are not supplied to Buyer or are unsatisfactory, in Buyer’s sole subjective 486 discretion, Buyer may, on or before Due Diligence Documents Objection Deadline: 487 CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 11 of 19 10.6.2.1. Notice to Terminate. Notify Seller in writing, pursuant to § 24.1., that this Contract is terminated; 488 or 489 10.6.2.2. Due Diligence Documents Objection. Deliver to Seller a written description of any 490 unsatisfactory Due Diligence Documents that Buyer requires Seller to correct. 491 10.6.2.3. Due Diligence Documents Resolution. If a Due Diligence Documents Objection is received by 492 Seller, on or before Due Diligence Documents Objection Deadline and if Buyer and Seller have not agreed in writing to a settlement 493 thereof on or before Due Diligence Documents Resolution Deadline, this Contract will terminate on Due Diligence Documents 494 Resolution Deadline unless Seller receives Buyer’s written withdrawal of the Due Diligence Documents Objection before such 495 termination (i.e., on or before expiration of Due Diligence Documents Resolution Deadline. 496 10.6.3. Zoning. Buyer has the Right to Terminate under § 24.1., on or before Due Diligence Documents Objection 497 Deadline, based on any unsatisfactory zoning and any use restrictions imposed by any governmental agency with jurisdiction over 498 the Property, in Buyer’s sole subjective discretion. 499 10.6.4. Due Diligence – Environmental, ADA. Buyer has the right to obtain environmental inspections of the 500 Property including Phase I and Phase II Environmental Site Assessments, as applicable. Seller Buyer will order or provide 501 Phase I Environmental Site Assessment, Phase II Environmental Site Assessment (compliant with most current version 502 of the applicable ASTM E1527 standard practices for Environmental Site Assessments) and/or , 503 at the expense of Seller Buyer (Environmental Inspection). In addition, Buyer, at Buyer’s expense, may also conduct an 504 evaluation whether the Property complies with the Americans with Disabilities Act (ADA Evaluation). All such inspections and 505 evaluations must be conducted at such times as are mutually agreeable to minimize the interruption of Seller’s and any Seller’s 506 tenants’ business uses of the Property, if any. 507 If Buyer’s Phase I Environmental Site Assessment recommends a Phase II Environmental Site Assessment, the Environmental 508 Inspection Termination Deadline will be extended by 30 days (Extended Environmental Inspection Objection Deadline) and if 509 such Extended Environmental Inspection Objection Deadline extends beyond the Closing Date, the Closing Date will be extended 510 a like period of time. In such event, Seller Buyer must pay the cost for such Phase II Environmental Site Assessment. 511 Notwithstanding Buyer’s right to obtain additional environmental inspections of the Property in this § 10.6.4., Buyer has the 512 Right to Terminate under § 24.1., on or before Environmental Inspection Termination Deadline, or if applicable, the Extended 513 Environmental Inspection Objection Deadline, based on any unsatisfactory results of Environmental Inspection, in Buyer’s sole 514 subjective discretion. 515 Buyer has the Right to Terminate under § 24.1., on or before ADA Evaluation Termination Deadline, based on any 516 unsatisfactory ADA Evaluation, in Buyer’s sole subjective discretion. 517 10.7. Conditional Upon Sale of Property. This Contract is conditional upon the sale and closing of that certain property 518 owned by Buyer and commonly known as . Buyer has 519 the Right to Terminate under § 24.1. effective upon Seller’s receipt of Buyer’s Notice to Terminate on or before Conditional Sale 520 Deadline if such property is not sold and closed by such deadline. This Section is for the sole benefit of Buyer. If Seller does not 521 receive Buyer’s Notice to Terminate on or before Conditional Sale Deadline, Buyer waives any Right to Terminate under this 522 provision. 523 10.8. Source of Potable Water (Residential Land and Residential Improvements Only). [Intentionally Deleted - See 524 Residential Addendum if applicable] 525 10.9. Existing Leases; Modification of Existing Leases; New Leases. Seller states that none of the Leases to be assigned 526 to the Buyer at the time of Closing contain any rent concessions, rent reductions or rent abatements except as disclosed in the Lease 527 or other writing received by Buyer. Seller will not amend, alter, modify, extend or cancel any of the Leases nor will Seller enter into 528 any new leases affecting the Property without the prior written consent of Buyer, which consent will not be unreasonably withheld 529 or delayed. 530 10.10. Lead-Based Paint. [Intentionally Deleted - See Residential Addendum if applicable] 531 10.11. Carbon Monoxide Alarms. [Intentionally Deleted - See Residential Addendum if applicable] 532 10.12. Methamphetamine Disclosure. [Intentionally Deleted - See Residential Addendum if applicable] 533 11. TENANT ESTOPPEL STATEMENTS. Intentionally deleted. 534 535 CLOSING PROVISIONS 536 12. CLOSING DOCUMENTS, INSTRUCTIONS AND CLOSING. 537 12.1. Closing Documents and Closing Information. Seller and Buyer will cooperate with the Closing Company to enable 538 the Closing Company to prepare and deliver documents required for Closing to Buyer and Seller and their designees. If Buyer is 539 obtaining a loan to purchase the Property, Buyer acknowledges Buyer’s lender is required to provide the Closing Company, in a 540 timely manner, all required loan documents and financial information concerning Buyer’s loan. Buyer and Seller will furnish any 541 CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 12 of 19 additional information and documents required by Closing Company that will be necessary to complete this transaction. Buyer and 542 Seller will sign and complete all customary or reasonably required documents at or before Closing. 543 12.2. Closing Instructions. Colorado Real Estate Commission’s Closing Instructions Are Are Not executed with 544 this Contract. 545 12.3. Closing. Delivery of deed from Seller to Buyer will be at closing (Closing). Closing will be on the date specified as 546 the Closing Date or by mutual agreement at an earlier date. At Closing, Seller agrees to deliver a set of keys for the Property to 547 Buyer. The hour and place of Closing will be as designated by mutual agreement of the parties. 548 12.4. Disclosure of Settlement Costs. Buyer and Seller acknowledge that costs, quality and extent of service vary between 549 different settlement service providers (e.g., attorneys, lenders, inspectors and title companies). 550 12.5. Assignment of Leases. Seller must assign to Buyer all Leases at Closing that will continue after Closing and Buyer 551 must assume Seller’s obligations under such Leases. Further, Seller must transfer to Buyer all Leased Items and assign to Buyer such 552 leases for the Leased Items accepted by Buyer pursuant to § 2.5.7. (Leased Items). 553 554 13. TRANSFER OF TITLE. Subject to Buyer’s compliance with the terms and provisions of this Contract, including the tender 555 of any payment due at Closing, Seller must execute and deliver the following good and sufficient deed to Buyer, at Closing: 556 special warranty deed general warranty deed bargain and sale deed quit claim deed personal representative’s 557 deed ____________________________ deed. Seller, provided another deed is not selected, must execute and deliver a good 558 and sufficient special warranty deed to Buyer, at Closing. 559 Unless otherwise specified in § 29 (Additional Provisions), if title will be conveyed using a special warranty deed or a general 560 warranty deed, title will be conveyed “subject to statutory exceptions” as defined in §38-30-113(5)(a), C.R.S. 561 14. PAYMENT OF LIENS AND ENCUMBRANCES. Unless agreed to by Buyer in writing, any amounts owed on any liens 562 or encumbrances securing a monetary sum against the Property and Inclusions, including any governmental liens for special 563 improvements installed as of the date of Buyer’s signature hereon, whether assessed or not, and previous years’ taxes, will be paid 564 at or before Closing by Seller from the proceeds of this transaction or from any other source. 565 15. CLOSING COSTS, FEES, ASSOCIATION STATUS LETTER AND DISBURSEMENTS, TAXES AND 566 WITHHOLDING. 567 15.1. Closing Costs. Buyer and Seller must pay, in Good Funds, their respective closing costs and all other items required 568 to be paid at Closing, except as otherwise provided herein. 569 15.2. Closing Services Fee. The fee for real estate closing services must be paid at Closing by Buyer Seller 570 One-Half by Buyer and One-Half by Seller Other . 571 15.3. Association Fees and Required Disbursements. At least fourteen days prior to Closing Date, Seller agrees to 572 promptly request that the Closing Company or the Association deliver to Buyer a current Status Letter, if applicable. Any fees 573 associated with or specified in the Status Letter will be paid as follows: 574 15.3.1. Status Letter Fee. Any fee incident to the issuance of Association’s Status Letter must be paid by Buyer 575 Seller One-Half by Buyer and One-Half by Seller N/A. 576 15.3.2. Record Change Fee. Any Record Change Fee must be paid by Buyer Seller One-Half by Buyer 577 and One-Half by Seller N/A. 578 15.3.3. Assessments, Reserves or Working Capital. All assessments required to be paid in advance (other than 579 Association Assessments as defined in § 16.2. (Association Assessments), reserves or working capital due at Closing must be paid 580 by Buyer Seller One-Half by Buyer and One-Half by Seller N/A. 581 15.3.4. Other Fees. Any other fee listed in the Status Letter as required to be paid at Closing will be paid by 582 Buyer Seller One-Half by Buyer and One-Half by Seller N/A. 583 15.4. Local Transfer Tax. Any Local Transfer Tax must be paid at Closing by Buyer Seller One-Half by 584 Buyer and One-Half by Seller N/A. 585 15.5. Sales and Use Tax. Any sales and use tax that may accrue because of this transaction must be paid when due by 586 Buyer Seller One-Half by Buyer and One-Half by Seller N/A. 587 15.6. Private Transfer Fee. Any private transfer fees and other fees due to a transfer of the Property, payable at Closing, 588 such as community association fees, developer fees and foundation fees, must be paid at Closing by Buyer Seller 589 One-Half by Buyer and One-Half by Seller N/A. 590 15.7. Water Transfer Fees. Water Transfer Fees can change. The fees, as of the date of this Contract, do not exceed 591 $____________ for: 592 Water Stock/Certificates Water District 593 Augmentation Membership Small Domestic Water Company 594 and must be paid at Closing by Buyer Seller One-Half by Buyer and One-Half by Seller N/A. 595 15.8. Utility Transfer Fees. Utility transfer fees can change. Any fees to transfer utilities from Seller to Buyer must be 596 paid by Buyer Seller One-Half by Buyer and One-Half by Seller N/A. 597 15.9. FIRPTA and Colorado Withholding. 598 CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 13 of 19 15.9.1. FIRPTA. The Internal Revenue Service (IRS) may require a substantial portion of the Seller’s proceeds be 599 withheld after Closing when Seller is a foreign person. If required withholding does not occur, the Buyer could be held liable for the 600 amount of the Seller’s tax, interest and penalties. If the box in this Section is checked, Seller represents that Seller IS a foreign 601 person for purposes of U.S. income taxation. If the box in this Section is not checked, Seller represents that Seller is not a foreign 602 person for purposes of U.S. income taxation. Seller agrees to cooperate with Buyer and Closing Company to provide any reasonably 603 requested documents to verify Seller’s foreign person status. If withholding is required, Seller authorizes Closing Company to 604 withhold such amount from Seller’s proceeds. Seller should inquire with Seller’s tax advisor to determine if withholding applies or 605 if an exemption exists. 606 15.9.2. Colorado Withholding. The Colorado Department of Revenue may require a portion of the Seller’s proceeds 607 be withheld after Closing when Seller will not be a Colorado resident after Closing, if not otherwise exempt. Seller agrees to 608 cooperate with Buyer and Closing Company to provide any reasonably requested documents to verify Seller’s status. If withholding 609 is required, Seller authorizes Closing Company to withhold such amount from Seller’s proceeds. Seller should inquire with Seller’s 610 tax advisor to determine if withholding applies or if an exemption exists. 611 16. PRORATIONS AND ASSOCIATION ASSESSMENTS. 612 16.1. Prorations. The following will be prorated to the Closing Date, except as otherwise provided: 613 16.1.1. Taxes. Personal property taxes, if any, special taxing district assessments, if any, and general real estate taxes 614 for the year of Closing, based on Taxes for the Calendar Year Immediately Preceding Closing Most Recent Mill Levy 615 and Most Recent Assessed Valuation, adjusted by any applicable qualifying seniors property tax exemption, qualifying disabled 616 veteran exemption or Other Property is tax exempt. 617 16.1.2. Rents. Rents based on Rents Actually Received Accrued. At Closing, Seller will transfer or credit 618 to Buyer the security deposits for all Leases assigned to Buyer, or any remainder after lawful deductions, and notify all tenants in 619 writing of such transfer and of the transferee’s name and address. 620 16.1.3. Other Prorations. Water and sewer charges, propane, interest on continuing loan and _________________. 621 16.1.4. Final Settlement. Unless otherwise specified in Additional Provisions, these prorations are final. 622 16.2. Association Assessments. Current regular Association assessments and dues (Association Assessments) paid in 623 advance will be credited to Seller at Closing. Cash reserves held out of the regular Association Assessments for deferred maintenance 624 by the Association will not be credited to Seller except as may be otherwise provided by the Governing Documents. Buyer 625 acknowledges that Buyer may be obligated to pay the Association, at Closing, an amount for reserves or working capital. Any special 626 assessment assessed prior to Closing Date by the Association will be the obligation of Buyer Seller. Except however, any 627 special assessment by the Association for improvements that have been installed as of the date of Buyer’s signature hereon, whether 628 assessed prior to or after Closing, will be the obligation of Seller unless otherwise specified in Additional Provisions. Seller represents 629 there are no unpaid regular or special assessments against the Property except the current regular assessments and 630 ______________________________. Association Assessments are subject to change as provided in the Governing Documents. 631 17. POSSESSION. Possession of the Property and Inclusions will be delivered to Buyer on Possession Date at Possession Time, 632 subject to the Leases as set forth in § 10.6.1.1. 633 If Seller, after Closing occurs, fails to deliver possession as specified, Seller will be subject to eviction and will be additionally 634 liable to Buyer, notwithstanding § 20.2. (If Seller is in Default), for payment of $ N/A per day (or any part of a day notwithstanding 635 § 3.3., Day) from Possession Date and Possession Time until possession is delivered. 636 GENERAL PROVISIONS 637 18. CAUSES OF LOSS, INSURANCE; DAMAGE TO INCLUSIONS AND SERVICES; CONDEMNATION; AND 638 WALK-THROUGH. Except as otherwise provided in this Contract, the Property, Inclusions or both will be delivered in the 639 condition existing as of the date of this Contract, ordinary wear and tear excepted. 640 18.1. Causes of Loss, Insurance. In the event the Property or Inclusions are damaged by fire, other perils or causes of loss 641 prior to Closing (Property Damage) in an amount of not more than ten percent of the total Purchase Price and if the repair of the 642 damage will be paid by insurance (other than the deductible to be paid by Seller), then Seller, upon receipt of the insurance proceeds, 643 will use Seller’s reasonable efforts to repair the Property before Closing Date. Buyer has the Right to Terminate under § 24.1., on 644 or before Closing Date, if the Property is not repaired before Closing Date, or if the damage exceeds such sum. Should Buyer elect 645 to carry out this Contract despite such Property Damage, Buyer is entitled to a credit at Closing for all insurance proceeds that were 646 received by Seller (but not the Association, if any) resulting from damage to the Property and Inclusions, plus the amount of any 647 deductible provided for in the insurance policy. This credit may not exceed the Purchase Price. In the event Seller has not received 648 the insurance proceeds prior to Closing, the parties may agree to extend the Closing Date to have the Property repaired prior to 649 Closing or, at the option of Buyer, (1) Seller must assign to Buyer the right to the proceeds at Closing, if acceptable to Seller’s 650 insurance company and Buyer’s lender; or (2) the parties may enter into a written agreement prepared by the parties or their attorney 651 CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 14 of 19 requiring the Seller to escrow at Closing from Seller’s sale proceeds the amount Seller has received and will receive due to such 652 damage, not exceeding the total Purchase Price, plus the amount of any deductible that applies to the insurance claim. 653 18.2. Damage, Inclusions and Services. Should any Inclusion or service (including utilities and communication services), 654 system, component or fixture of the Property (collectively Service) (e.g., heating or plumbing), fail or be damaged between the date 655 of this Contract and Closing or possession, whichever is earlier, then Seller is liable for the repair or replacement of such Inclusion 656 or Service with a unit of similar size, age and quality, or an equivalent credit, but only to the extent that the maintenance or 657 replacement of such Inclusion or Service is not the responsibility of the Association, if any, less any insurance proceeds received by 658 Buyer covering such repair or replacement. If the failed or damaged Inclusion or Service is not repaired or replaced on or before 659 Closing or possession, whichever is earlier, Buyer has the Right to Terminate under § 24.1., on or before Closing Date, or, at the 660 option of Buyer, Buyer is entitled to a credit at Closing for the repair or replacement of such Inclusion or Service. Such credit must 661 not exceed the Purchase Price. If Buyer receives such a credit, Seller’s right for any claim against the Association, if any, will survive 662 Closing. 663 18.3. Condemnation. In the event Seller receives actual notice prior to Closing that a pending condemnation action may 664 result in a taking of all or part of the Property or Inclusions, Seller must promptly notify Buyer, in writing, of such condemnation 665 action. Buyer has the Right to Terminate under § 24.1., on or before Closing Date, based on such condemnation action, in Buyer’s 666 sole subjective discretion. Should Buyer elect to consummate this Contract despite such diminution of value to the Property and 667 Inclusions, Buyer is entitled to a credit at Closing for all condemnation proceeds awarded to Seller for the diminution in the value 668 of the Property or Inclusions, but such credit will not include relocation benefits or expenses or exceed the Purchase Price. 669 18.4. Walk-Through and Verification of Condition. Buyer, upon reasonable notice, has the right to walk through the 670 Property prior to Closing to verify that the physical condition of the Property and Inclusions complies with this Contract. 671 19. RECOMMENDATION OF LEGAL AND TAX COUNSEL. By signing this Contract, Buyer and Seller acknowledge that 672 their respective broker has advised that this Contract has important legal consequences and has recommended: (1) legal examination 673 of title; (2) consultation with legal and tax or other counsel before signing this Contract as this Contract may have important legal 674 and tax implications; (3) to consult with their own attorney if Water Rights, Mineral Rights or Leased Items are included or excluded 675 in the sale; and (4) to consult with legal counsel if there are other matters in this transaction for which legal counsel should be 676 engaged and consulted. Such consultations must be done timely as this Contract has strict time limits, including deadlines, that must 677 be complied with. 678 679 20. TIME OF ESSENCE, DEFAULT AND REMEDIES. Time is of the essence for all dates and deadlines in this Contract. 680 This means that all dates and deadlines are strict and absolute. If any payment due, including Earnest Money, is not paid, honored 681 or tendered when due, or if any obligation is not performed timely as provided in this Contract or waived, the non-defaulting party 682 has the following remedies: 683 20.1. If Buyer is in Default: 684 20.1.1. Specific Performance. Seller may elect to cancel this Contract and all Earnest Money (whether or not paid 685 by Buyer) will be paid to Seller and retained by Seller. It is agreed that the Earnest Money is not a penalty, and the parties agree the 686 amount is fair and reasonable. Seller may recover such additional damages as may be proper. Alternatively, Seller may elect to treat 687 this Contract as being in full force and effect and Seller has the right to specific performance or damages, or both. 688 20.1.2. Liquidated Damages, Applicable. This § 20.1.2. applies unless the box in § 20.1.1. is checked. Seller may 689 cancel this Contract. All Earnest Money (whether or not paid by Buyer) will be paid to Seller and retained by Seller. It is agreed that 690 the Earnest Money amount specified in § 4.1. is LIQUIDATED DAMAGES and not a penalty, which amount the parties agree is 691 fair and reasonable and (except as provided in §§ 10.4. and 21), such amount is SELLER’S ONLY REMEDY for Buyer’s failure to 692 perform the obligations of this Contract. Seller expressly waives the remedies of specific performance and additional damages. 693 20.2. If Seller is in Default: 694 20.2.1. Specific Performance, Damages or Both. Buyer may elect to treat this Contract as canceled, in which case 695 all Earnest Money received hereunder will be returned to Buyer and Buyer may recover such damages as may be proper. 696 Alternatively, in addition to the per diem in § 17 (Possession) for failure of Seller to timely deliver possession of the Property after 697 Closing occurs, Buyer may elect to treat this Contract as being in full force and effect and Buyer has the right to specific performance 698 or damages, or both. 699 20.2.2. Seller’s Failure to Perform. In the event Seller fails to perform Seller’s obligations under this Contract, to 700 include, but not limited to, failure to timely disclose Association violations known by Seller, failure to perform any replacements or 701 repairs required under this Contract or failure to timely disclose any known adverse material facts, Seller remains liable for any such 702 failures to perform under this Contract after Closing. Buyer’s rights to pursue the Seller for Seller’s failure to perform under this 703 Contract are reserved and survive Closing. 704 CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 15 of 19 21. LEGAL FEES, COST AND EXPENSES. Anything to the contrary herein notwithstanding, in the event of any arbitration 705 or litigation relating to this Contract, prior to or after Closing Date, the arbitrator or court must award to the prevailing party all 706 reasonable costs and expenses, including attorney fees, legal fees and expenses. 707 22. MEDIATION. If a dispute arises relating to this Contract (whether prior to or after Closing) and is not resolved, the parties 708 must first proceed, in good faith, to mediation. Mediation is a process in which the parties meet with an impartial person who helps 709 to resolve the dispute informally and confidentially. Mediators cannot impose binding decisions. Before any mediated settlement is 710 binding, the parties to the dispute must agree to the settlement, in writing. The parties will jointly appoint an acceptable mediator 711 and will share equally in the cost of such mediation. The obligation to mediate, unless otherwise agreed, will terminate if the entire 712 dispute is not resolved within thirty days of the date written notice requesting mediation is delivered by one party to the other at that 713 party’s last known address (physical or electronic as provided in § 26). Nothing in this Section prohibits either party from filing a 714 lawsuit and recording a lis pendens affecting the Property, before or after the date of written notice requesting mediation. This 715 Section will not alter any date in this Contract, unless otherwise agreed. 716 23. EARNEST MONEY DISPUTE. Except as otherwise provided herein, Earnest Money Holder must release the Earnest 717 Money following receipt of written mutual instructions, signed by both Buyer and Seller. In the event of any controversy regarding 718 the Earnest Money, Earnest Money Holder is not required to release the Earnest Money. Earnest Money Holder, in its sole subjective 719 discretion, has several options: (1) wait for any proceeding between Buyer and Seller; (2) interplead all parties and deposit Earnest 720 Money into a court of competent jurisdiction (Earnest Money Holder is entitled to recover court costs and reasonable attorney and 721 legal fees incurred with such action); or (3) provide notice to Buyer and Seller that unless Earnest Money Holder receives a copy of 722 the Summons and Complaint or Claim (between Buyer and Seller) containing the case number of the lawsuit (Lawsuit) within one 723 hundred twenty days of Earnest Money Holder’s notice to the parties, Earnest Money Holder is authorized to return the Earnest 724 Money to Buyer. In the event Earnest Money Holder does receive a copy of the Lawsuit and has not interpled the monies at the time 725 of any Order, Earnest Money Holder must disburse the Earnest Money pursuant to the Order of the Court. The parties reaffirm the 726 obligation of § 22 (Mediation). This Section will survive cancellation or termination of this Contract. 727 24. TERMINATION. 728 24.1. Right to Terminate. If a party has a right to terminate, as provided in this Contract (Right to Terminate), the 729 termination is effective upon the other party’s receipt of a written notice to terminate (Notice to Terminate), provided such written 730 notice was received on or before the applicable deadline specified in this Contract. If the Notice to Terminate is not received on or 731 before the specified deadline, the party with the Right to Terminate accepts the specified matter, document or condition as satisfactory 732 and waives the Right to Terminate under such provision. 733 24.2. Effect of Termination. In the event this Contract is terminated, and all Earnest Money received hereunder is timely 734 returned to Buyer, the parties are relieved of all obligations hereunder, subject to §§ 10.4. and 21. 735 25. ENTIRE AGREEMENT, MODIFICATION, SURVIVAL; SUCCESSORS. This Contract, its exhibits and specified 736 addenda, constitute the entire agreement between the parties relating to the subject hereof and any prior agreements pertaining 737 thereto, whether oral or written, have been merged and integrated into this Contract. No subsequent modification of any of the terms 738 of this Contract is valid, binding upon the parties, or enforceable unless made in writing and signed by the parties. Any right or 739 obligation in this Contract that, by its terms, exists or is intended to be performed after termination or Closing survives the same. 740 Any successor to a party receives the predecessor’s benefits and obligations of this Contract. 741 26. NOTICE, DELIVERY AND CHOICE OF LAW. 742 26.1. Physical Delivery and Notice. Any document or notice to Buyer or Seller must be in writing, except as provided in 743 § 26.2. and is effective when physically received by such party, any individual named in this Contract to receive documents or 744 notices for such party, Broker, or Brokerage Firm of Broker working with such party (except any notice or delivery after Closing 745 must be received by the party, not Broker or Brokerage Firm). 746 26.2. Electronic Notice. As an alternative to physical delivery, any notice may be delivered in electronic form to Buyer or 747 Seller, any individual named in this Contract to receive documents or notices for such party, Broker or Brokerage Firm of Broker 748 working with such party (except any notice or delivery after Closing, cancellation or Termination must be received by the party, not 749 Broker or Brokerage Firm) at the electronic address of the recipient by facsimile, email or _________________________________. 750 26.3. Electronic Delivery. Electronic Delivery of documents and notice may be delivered by: (1) email at the email address 751 of the recipient, (2) a link or access to a website or server provided the recipient receives the information necessary to access the 752 documents, or (3) facsimile at the facsimile number (Fax No.) of the recipient. 753 26.4. Choice of Law. This Contract and all disputes arising hereunder are governed by and construed in accordance with 754 the laws of the State of Colorado that would be applicable to Colorado residents who sign a contract in Colorado for real property 755 located in Colorado. 756 CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 16 of 19 27. NOTICE OF ACCEPTANCE, COUNTERPARTS. This proposal will expire unless accepted in writing, by Buyer and 757 Seller, as evidenced by their signatures below and the offering party receives notice of such acceptance pursuant to § 26 on or before 758 Acceptance Deadline Date and Acceptance Deadline Time. If accepted, this document will become a contract between Seller and 759 Buyer. A copy of this Contract may be executed by each party, separately and when each party has executed a copy thereof, such 760 copies taken together are deemed to be a full and complete contract between the parties. 761 28. GOOD FAITH. Buyer and Seller acknowledge that each party has an obligation to act in good faith including, but not limited 762 to, exercising the rights and obligations set forth in the provisions of Financing Conditions and Obligations; Title Insurance, 763 Record Title and Off-Record Title; New ILC, New Survey; and Property Disclosure, Inspection, Indemnity, Insurability and 764 Due Diligence. 765 ADDITIONAL PROVISIONS AND ATTACHMENTS 766 29. ADDITIONAL PROVISIONS. (The following additional provisions have not been approved by the Colorado Real Estate 767 Commission.) 768 29.1 Government Approvals. The Buyer shall have ninety (90) days from MEC (the “Government Approval Period”) to 769 cause the Property to be a separately platted parcel and to obtain all necessary approvals, including without limitation approval 770 and recordation of a final plat or similar document in the real property records of Jefferson County, from the City, Jefferson 771 County, and all other applicable governmental authorities (the “Government Approvals”). If the City does not obtain the 772 Government Approvals, the City may terminate the purchase contract by giving a written notice of termination to the District at 773 any time prior to the expiration of the Government Approval Period, in which case the purchase contract will terminate. If City 774 does not give a written notice of termination to the District prior to the expiration of the Government Approvals Period, then the 775 purchase contract will continue in full force and effect. 776 29.2 Reverter. Seller’s obligation to Close under this Contract shall be conditioned on the inclusion of a reverter clause 777 in substantially the following form in the special warranty deed conveying the Property: 778 Grantor hereby conveys the above-described property to Grantee and its successors and assigns for so long as the 779 Grantee or its successors or assigns use the land and any and all buildings or facilities constructed thereon for park 780 purposes. "Park purposes" shall mean an area of land in the pursuit of outdoor leisure, athletic, or recreational activities 781 and facilities ancillary thereto including, but not limited to, cultural, educational, and civic facilities, band shells, 782 pavilions, outdoor classrooms, and concessions and include open areas, fields, play fields, trails, national areas, 783 historical areas, or wildlife areas. If Grantee or its successors or assigns cease to use the property for park purposes or 784 use the property for other than park purposes and such cessation of use for park purposes or use for non-park purposes 785 continues or exists on the sixtieth (60th) day after receiving written notice thereof from Grantor, title to the above 786 described property, including any improvements thereon, shall automatically revert to Jefferson County School District 787 R-1 or its successor ("District") on such day. If title to the property reverts to the District pursuant hereto, the District 788 may record an affidavit executed and acknowledged by the Superintendent of Schools stating that title has reverted to the 789 District because of the discontinuation of the use of the property for park purposes or the use of the property for other 790 than park purposes, as the case may be. However, nothing herein shall be construed as limiting Grantee’s right to grant 791 easements or other interests in the property to a governmental or nonprofit entity or public entity or to enter into 792 agreements that affect the property so long as such interests or agreements further the park purpose and enhance the 793 park use of the property. 794 29.3 Intergovernmental Agreement. The parties’ obligation to close will be conditioned on the parties entering into a 795 mutually acceptable intergovernmental agreement or comparable document pursuant to which the Buyer will construct a parking 796 lot and associated hardscape on Seller property in accordance with Seller specifications that is of like size and capacity as the 797 current parking lot. Such agreement will further state that the Seller shall own and operate the parking lot but may provide for 798 Buyer use of the parking lot when not in use by the Seller pursuant to mutually acceptable terms and conditions. Such agreement 799 will afford the Seller an option to re-purchase the Property at no cost if the Buyer fails to complete the parking lot and hardscape 800 on or before August 1, 2024. The Seller shall have the right to expand and improve the parking lot at its own cost. 801 802 803 804 805 806 807 808 809 810 811 CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 17 of 19 30. OTHER DOCUMENTS. 812 30.1. Documents Part of Contract. The following documents are a part of this Contract: 813 814 815 816 30.2. Documents Not Part of Contract. The following documents have been provided but are not a part of this Contract: 817 818 819 820 SIGNATURES 821 822 Buyer’s Name: City of Wheat Ridge Buyer’s Name: Buyer’s Signature Date Buyer’s Signature Date Address: Address: Phone No.: Phone No.: Fax No.: Fax No.: Email Address: Email Address: [NOTE: If this offer is being countered or rejected, do not sign this document.] 823 Seller’s Name: Jefferson County School District R-1 Seller’s Name: By: Seller’s Signature Date Seller’s Signature Date Address: 1829 Denver West, # 27 Address: Golden, Colorado 80401 Phone No.: Phone No.: Fax No.: Fax No.: Email Address: Email Address: 824 END OF CONTRACT TO BUY AND SELL REAL ESTATE 825 BROKER’S ACKNOWLEDGMENTS AND COMPENSATION DISCLOSURE. A. Broker Working With Buyer Broker Does Does Not acknowledge receipt of Earnest Money deposit. Broker agrees that if Brokerage Firm is the Earnest Money Holder and, except as provided in § 23, if the Earnest Money has not already been returned following receipt of a Notice to Terminate or other written notice of termination, Earnest Money Holder will release the Earnest Money as directed by the written mutual instructions. Such release of Earnest Money will be made within five days of Earnest Money Holder’s receipt of the executed written mutual instructions, provided the Earnest Money check has cleared. CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 18 of 19 Broker is working with Buyer as a Buyer’s Agent Transaction-Broker in this transaction. Customer. Broker has no brokerage relationship with Buyer. See § B for Broker’s brokerage relationship with Seller. Brokerage Firm’s compensation or commission is to be paid by Listing Brokerage Firm Buyer Other . This Broker’s Acknowledgements and Compensation Disclosure is for disclosure purposes only and does NOT create any claim for compensation. Any compensation agreement between the brokerage firms must be entered into separately and apart from this provision. Brokerage Firm’s Name: Brokerage Firm’s License #: Broker’s Name: Broker’s License #: Broker’s Signature Date Address: Phone No.: Fax No.: Email Address: B. Broker Working with Seller Broker Does Does Not acknowledge receipt of Earnest Money deposit. Broker agrees that if Brokerage Firm is the Earnest Money Holder and, except as provided in § 23, if the Earnest Money has not already been returned following receipt of a Notice to Terminate or other written notice of termination, Earnest Money Holder will release the Earnest Money as directed by the written mutual instructions. Such release of Earnest Money will be made within five days of Earnest Money Holder’s receipt of the executed written mutual instructions, provided the Earnest Money check has cleared. Broker is working with Seller as a Seller’s Agent Transaction-Broker in this transaction. Customer. Broker has no brokerage relationship with Seller. See § A for Broker’s brokerage relationship with Buyer. Brokerage Firm’s compensation or commission is to be paid by Seller Buyer Other . This Broker’s Acknowledgements and Compensation Disclosure is for disclosure purposes only and does NOT create any claim for compensation. Any compensation agreement between the brokerage firms must be entered into separately and apart from this provision. Brokerage Firm’s Name: Brokerage Firm’s License #: Broker’s Name: Broker’s License #: Broker’s Signature Date Address: CBS3-6-23. CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) Page 19 of 19 Phone No.: Fax No.: Email Address: 826 4862-1175-9774, v. 1 827 Memorandum TO: Mayor and City Council THROUGH: Patrick Goff, City Manager Marianne Schilling, Assistant City Manager Lauren Mikulak, Community Development Director FROM: Cole Haselip, Management Analyst DATE: March 4, 2024 SUBJECT: Resolution in Opposition to HB24-1152 – ADU Policy Preemptions ISSUE: The Colorado Legislature’s House Bill 24-1152 preempts and undermines the efforts of the City of Wheat Ridge to continue a well-researched and community-driven accessory dwelling unit (ADU) policy. Notably, it would void the City’s locally supported requirement that ADUs be owner-occupied. Council may consider providing consensus to oppose HB24-1152 by resolution. PRIOR ACTION: The Wheat Ridge City Council adopted Ordinance No. 1744 in July 2022. Informed by an extensive six-year public outreach process, this ordinance established a policy allowing ADUs in the City of Wheat Ridge with some reasonable restrictions. FINANCIAL IMPACT: None. BACKGROUND: ADUs in the City of Wheat Ridge are defined as smaller, independent residential dwelling units located on the same property as a detached single-unit home. They can be converted portions of existing homes or additions to new or existing homes (attached ADUs), or they can be new or converted stand-alone accessory structures (detached ADUs). ADUs allow adult children to live independently at home, aging parents to live in multigenerational households, seniors to age in place, and may increase the City’s diversity of housing options and affordable housing stock. The City of Wheat Ridge’s ADU policy has been informed by an extensive six-year public outreach process, City Council direction, and best practices from other peer communities in the Front Range of Colorado and around the country. Ordinance No. 1744 established an ADU policy with reasonable allowances and locally supported restrictions such as the following: Item No. 4 Staff Report – Resolution in Opposition to HB24-1152 March 4, 2024 Page 2 • ADUs are allowed in all residential, agricultural, and mixed-use neighborhood zone districts as an accessory use to a single-unit home (not permitted on duplex or multi-unit properties). • The property owner must occupy the main house or the ADU. • Detached and attached ADUs are allowed. • The size of an ADU cannot exceed 25 feet in height (this would accommodate an ADU over a garage). Attached ADUs must comply with the height requirements of the primary dwelling unit. • ADUs must comply with the City’s development standards, including height, setback, and bulk plane regulations. • ADUs cannot be subdivided or sold separately from the primary dwelling unit. • ADUs cannot be used as “whole home” short term rentals (STRs) but can be used as a “partial home” STR because the property owner is required to live onsite. An STR license is required to operate a partial home STR in an ADU. DISCUSSION: The Colorado Legislature’s House Bill 24-1152 preempts and undermines the efforts of the City of Wheat Ridge to continue a well-researched and community-driven accessory dwelling unit (ADU) policy. The City’s ADU approach largely complies with the state legislation, as both allow ADUs as a use-by-right on all properties where single-unit detached dwellings are located or allowed. The most notable issue is that HB 24-1152 would void the City’s locally supported requirement that ADUs be owner occupied. In 2021, the City distributed its bi-annual survey to 4,500 households. Among other items, the survey included several questions related to ADUs that provided insight into resident sentiment at the time. When asked if ADUs were allowed, six in ten respondents believed that the property owner should live on site in either the ADU or the primary dwelling unit. This sentiment echoed earlier feedback from 2015/2016 engagement on ADUs and the 2019 Neighborhood Revitalization Strategy (NRS). Owner-occupied properties typically experience less turnover than rentals. As a result, the owner occupancy requirement contributes to a stronger sense of community, neighborhood familiarity, and positive neighborly relations. Furthermore, because the owner lives on-site, they are incentivized to address any maintenance issues promptly, maintain the property to a higher standard, and ensure that tenants comply with community guidelines and neighborhood courtesies. Allowing ADUs creates more diversity in housing options, accommodates multi- generational families, and allows for an income stream; and the owner-occupancy component aims to limit absentee ownership and an influx of outside investment which can undermine housing affordability goals. In addition to preempting the City’s requirement that ADUs be owner occupied, House Bill 24- 1152 limits the City’s ability to regulate ADUs in the future. The City’s current regulatory framework aligns with most elements of the state legislation (in regard to parking, size, setback, and architecture), but a state preemption strips the City of its ability to craft or amend locally informed zoning regulations and reasonable restrictions. Staff Report – Resolution in Opposition to HB24-1152 March 4, 2024 Page 3 The attached draft resolution is in opposition to House Bill 24-1152 and focuses instead on preserving locally crafted ADU policies, which have been developed through extensive community engagement processes and with consideration for the specific circumstances impacting each community. Furthermore, the resolution encourages its local legislators to vote against House Bill 24-1152. RECOMMENDATIONS: Staff recommends that the Council provide consensus to move forward with a resolution in opposition to House Bill 24-1152 and the accessory dwelling unit preemptions within. ATTACHMENTS: 1. Draft Resolution No. XX-2024 2. House Bill 24-1152 3. CML Position Paper on HB24-1152 CITY OF WHEAT RIDGE, COLORADO RESOLUTION NO. XX Series of 2024 TITLE: A RESOLUTION IN OPPOSITION TO ACCESSORY DWELLING UNIT PREEMPTIONS IN HOUSE BILL 24-1152 WHEREAS, for a century, the State of Colorado has committed both in statute and in the state constitution to the local control of land use planning and zoning because local governments are closest to the land and the people that occupy it; and WHEREAS, in 2022, the Wheat Ridge City Council adopted Ordinance No. 1744 establishing a policy to allow accessory dwelling units (ADUs) in the City of Wheat Ridge; and WHEREAS, the City’s ADU policy was informed by an extensive six-year community-wide public outreach process; and WHEREAS, the City’s ADU policy was designed with specific consideration for the particular circumstances and desires of the Wheat Ridge community; and WHEREAS, House Bill 24-1152 would place a state mandate on local land use matters in certain jurisdictions and substitute local control with the right of state legislators and regulators who lack the understanding needed to make the right decisions for our community; and WHEREAS, House Bill 24-1152 would preempt and undermine the efforts of the City of Wheat Ridge to continue a well-researched and community driven ADU policy with reasonable requirements; and WHEREAS, House Bill 24-1152 would void the City’s locally supported requirement that ADUs be owner-occupied; and WHEREAS, House Bill 24-1152 will limit our ability to maintain reasonable zoning regulations to ensure a high quality of life and safety for our current and future residents. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Wheat Ridge, Colorado, as follows: 1. It is the position of the City of Wheat Ridge that municipalities are best suited to determine appropriate ADU zoning laws for their communities and that collaboration and cooperation, rather than top-down statewide mandates, are the solution to Colorado’s affordable housing problem. 2. The City of Wheat Ridge opposes House Bill 24-1152 and strongly urges its legislators to vote NO on this legislation. ATTACHMENT 1 DONE AND RESOLVED this 4th day of March 2024 ATTEST: Steve Kirkpatrick, City Clerk Bud Starker, Mayor Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 24-0454.03 Pierce Lively x2059 HOUSE BILL 24-1152 House Committees Senate Committees Transportation, Housing & Local Government A BILL FOR AN ACT CONCERNING INCREASING THE NUMBER OF ACCESSORY DWELLING101 UNITS.102 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.) Section 1 of the bill creates a series of requirements related to accessory dwelling units. The bill establishes unique requirements for subject jurisdictions and for qualifying as an accessory dwelling unit supportive jurisdiction (supportive jurisdiction). As established in the bill, a subject jurisdiction is either: !A municipality that has a population of 1,000 or more and HOUSE SPONSORSHIP Amabile and Weinberg, SENATE SPONSORSHIP Mullica and Exum, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. ATTACHMENT 2 that is within the area of a metropolitan planning organization; or !The portion of a county that is both within a census designated place with a population of ten thousand or more, as reported in the most recent decennial census, and within the area of a metropolitan planning organization. The bill requires a subject jurisdiction to allow, subject to an administrative approval process, one accessory dwelling unit as an accessory use to a single-unit detached dwelling in any part of the subject jurisdiction where the subject jurisdiction allows single-unit detached dwellings. The bill also prohibits subject jurisdictions from enacting or enforcing certain local laws that would restrict the construction or conversion of an accessory dwelling unit. In order to qualify as a supportive jurisdiction, a jurisdiction must submit a report to the division of local government in the department of local affairs (the division) demonstrating that the jurisdiction: !Has complied with the accessory dwelling unit requirements the bill imposes on subject jurisdictions; and !Has implemented one or more strategies to encourage and facilitate the construction or conversion of accessory dwelling units. Section 1 also creates the accessory dwelling unit fee reduction and encouragement grant program within the division. The purpose of this grant program is for the division to provide grants to supportive jurisdictions for offsetting costs incurred in connection with developing pre-approved accessory dwelling unit plans, providing technical assistance to persons converting or constructing accessory dwelling units, or waiving or reducing accessory dwelling unit associated fees and other required costs. Section 2 grants the Colorado economic development commission the power to expend $8 million to contract with the Colorado housing and finance authority to operate and establish the following programs to benefit the residents of supportive jurisdictions: !An accessory dwelling unit loss reserve program that offers affordable loans for the construction or conversion of accessory dwelling units; !A program that allows for the buying down of interest rates on loans made in connection with the construction or conversion of accessory dwelling units; !A program that offers down payment assistance in connection with accessory dwelling units; and !A program through which the Colorado housing and finance authority offers direct loans in connection with the construction or conversion of accessory dwelling units. Section 3 prohibits a planned unit development resolution or HB24-1152-2- ordinance for a planned unit development from restricting the permitting of an accessory dwelling unit more than the local law that applies to accessory dwelling units outside of the planned unit development. Section 4 states that any prohibition on accessory dwelling units or the implementation of restrictive design or dimension standards by a unit owners' association in a supportive jurisdiction is void as a matter of public policy. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, add article 35 to title2 29 as follows:3 ARTICLE 354 State Land Use Criteria For Affordable Housing5 PART 16 ACCESSORY DWELLING UNITS7 29-35-101. Legislative declaration. (1) (a) THE GENERAL8 ASSEMBLY HEREBY FINDS, DETERMINES, AND DECLARES THAT:9 (I) ACCESSORY DWELLING UNITS OFFER A WAY TO PROVIDE10 COMPACT, RELATIVELY AFFORDABLE HOUSING IN ESTABLISHED11 NEIGHBORHOODS WITH MINIMAL IMPACTS TO INFRASTRUCTURE AND TO12 SUPPLY NEW HOUSING OPPORTUNITIES WITHOUT ADDED DISPERSED13 LOW-DENSITY HOUSING;14 (II) ACCESSORY DWELLING UNITS GENERATE RENTAL INCOME TO15 HELP HOMEOWNERS COVER MORTGAGE PAYMENTS OR OTHER COSTS,16 WHICH CAN BE IMPORTANT FOR A VARIETY OF RESIDENTS, SUCH AS OLDER17 HOMEOWNERS ON FIXED INCOMES AND LOW- AND MODERATE-INCOME18 HOMEOWNERS;19 (III) ACCESSORY DWELLING UNITS PROVIDE FAMILIES WITH20 OPTIONS FOR INTERGENERATIONAL LIVING ARRANGEMENTS THAT ENABLE21 CHILD OR ELDER CARE AND AGING IN PLACE, AND A 2021 SURVEY BY THE22 HB24-1152-3- AARP FOUND THAT APPROXIMATELY SEVENTY-FIVE PERCENT OF PEOPLE1 FIFTY YEARS OF AGE OR OLDER WANT TO STAY IN THEIR HOMES OR2 COMMUNITIES FOR AS LONG AS THEY CAN. ACCORDING TO A 2018 STUDY3 BY THE CENTER FOR AMERICAN PROGRESS, FIFTY-ONE PERCENT OF4 COLORADANS LIVE IN A CHILD CARE DESERT-A COMMUNITY WHERE THERE5 ARE NO CHILD CARE PROVIDERS OR SO FEW OPTIONS THAT THERE ARE6 MORE THAN THREE TIMES AS MANY CHILDREN AS THERE ARE LICENSED7 CHILD CARE SLOTS. THESE CHILD CARE DESERTS ARE SITUATED WITHIN8 RURAL, SUBURBAN, AND URBAN COMMUNITIES AND ARE A MAJOR REASON9 FOR WORKING PARENTS TO LEAVE THE WORKFORCE.10 (IV) ACCESSORY DWELLING UNITS ARE OFTEN OCCUPIED AT LOW11 TO NO RENT BY FAMILY MEMBERS, AND IF THEY ARE RENTED PRIVATELY,12 THEIR RENTS ARE RELATIVELY AFFORDABLE BECAUSE OF THEIR SMALL13 SIZE;14 (V) AS COLORADO'S POPULATION AGES AND TYPICAL HOUSEHOLD15 SIZE CONTINUES TO DECREASE, ACCESSORY DWELLING UNITS OFFER MORE16 COMPACT HOUSING OPTIONS THAT ALIGN WITH THE STATE'S CHANGING17 DEMOGRAPHICS, AND COLORADANS OVER SIXTY-FIVE YEARS OF AGE ARE18 THE FASTEST-GROWING AGE COHORT IN COLORADO ACCORDING TO THE19 STATE DEMOGRAPHY OFFICE;20 (VI) ACCESSORY DWELLING UNITS ENABLE SENIORS TO DOWNSIZE,21 MOVE INTO ACCESSIBLE UNITS, OR LIVE WITH FAMILY OR A CAREGIVER22 WHILE REMAINING IN THEIR COMMUNITIES. A 2018 AARP SURVEY FOUND23 THAT SIXTY-SEVEN PERCENT OF ADULTS WOULD CONSIDER LIVING IN AN24 ACCESSORY DWELLING UNIT TO BE CLOSE TO SOMEONE BUT STILL HAVE A25 SEPARATE SPACE. MOST SENIORS DO NOT LIVE IN HOMES THAT ARE26 ACCESSIBLE, EVEN THOUGH DISABILITY IS PREVALENT AMONG THE SENIOR27 HB24-1152-4- POPULATION AND INCREASES WITH AGE. LESS THAN FOUR PERCENT OF1 EXISTING HOUSING UNITS IN THE UNITED STATES ARE ESTIMATED TO BE2 LIVABLE FOR PEOPLE WITH MODERATE MOBILITY DIFFICULTIES,3 ACCORDING TO "HOUSING FOR AN AGING POPULATION" IN THE JOURNAL4 HOUSING POLICY DEBATE.5 (VII) RELATIVE TO DISPERSED, LOW-DENSITY DEVELOPMENT,6 COMPACT INFILL DEVELOPMENT, INCLUDING ACCESSORY DWELLING UNIT7 DEVELOPMENT, REDUCES WATER USE, GREENHOUSE GAS EMISSIONS,8 INFRASTRUCTURE COSTS, AND HOUSEHOLD ENERGY AND TRANSPORTATION9 COSTS;10 (VIII) ACCESSORY DWELLING UNITS USE SIGNIFICANTLY LESS11 ENERGY FOR HEATING AND COOLING THAN SINGLE-UNIT DETACHED12 DWELLINGS BECAUSE OF THEIR SMALLER SIZE, WHICH REDUCES13 HOUSEHOLD ENERGY COSTS AND GREENHOUSE GAS EMISSIONS.14 ACCESSORY DWELLING UNITS CAN REDUCE LIFETIME CARBON DIOXIDE15 EMISSIONS BY FORTY PERCENT COMPARED TO MEDIUM-SIZED16 SINGLE-FAMILY HOMES, ACCORDING TO A REPORT FROM THE OREGON17 DEPARTMENT OF ENVIRONMENTAL QUALITY. REDUCING EMISSIONS FROM18 THE HOUSING SECTOR IS CRITICAL FOR MEETING THE STATE'S GREENHOUSE19 GAS EMISSIONS TARGETS ESTABLISHED IN SECTION 25-7-102. ACCORDING20 TO "THE CARBON FOOTPRINT OF HOUSEHOLD ENERGY USE IN THE UNITED21 STATES" IN THE PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES,22 REDUCING FLOOR SPACE PER CAPITA IS A CRITICAL STRATEGY TO23 REACHING MID-CENTURY CLIMATE GOALS.24 (IX) COMPACT INFILL DEVELOPMENT REDUCES WATER DEMAND25 AND INFRASTRUCTURE COSTS BY USING LESS PIPING, WHICH REDUCES26 WATER LOSS; INCLUDES LESS LANDSCAPED SPACE PER UNIT; AND MAKES27 HB24-1152-5- BETTER USE OF EXISTING INFRASTRUCTURE. COMPARED TO A SINGLE-UNIT1 DETACHED DWELLING, ACCESSORY DWELLING UNITS USE TWENTY-TWO2 PERCENT LESS WATER, BASED ON DATA FROM DENVER AND AURORA3 WATER USERS ANALYZED FOR THE "COLORADO WATER AND GROWTH4 DIALOGUE FINAL REPORT" IN 2018.5 (X) ACCESSORY DWELLING UNITS REDUCE GOVERNMENT CAPITAL6 AND MAINTENANCE COSTS FOR INFRASTRUCTURE SINCE ACCESSORY7 DWELLING UNITS ARE BUILT IN EXISTING NEIGHBORHOODS AND HAVE A8 RELATIVELY SMALL IMPACT ON EXISTING INFRASTRUCTURE. NATIONAL9 STUDIES SUCH AS "RELATIONSHIPS BETWEEN DENSITY AND PER CAPITA10 MUNICIPAL SPENDING IN THE UNITED STATES", PUBLISHED IN URBAN11 SCIENCE, HAVE FOUND THAT LOWER DENSITY COMMUNITIES HAVE HIGHER12 GOVERNMENT CAPITAL AND MAINTENANCE COSTS FOR WATER, SEWER,13 AND TRANSPORTATION INFRASTRUCTURE AND LOWER PROPERTY AND14 SALES TAX REVENUE. THESE INCREASED COSTS ARE OFTEN BORNE BY15 BOTH STATE AND LOCAL GOVERNMENTS.16 (XI) A NUMBER OF LOCAL LAND USE LAWS PROHIBIT HOMEOWNERS17 FROM BUILDING AN ACCESSORY DWELLING UNIT, OR APPLY REGULATIONS18 TO ACCESSORY DWELLING UNITS THAT SIGNIFICANTLY LIMIT THEIR19 CONSTRUCTION;20 (XII) A NUMBER OF MUNICIPALITIES HAVE REMOVED BARRIERS TO21 ACCESSORY DWELLING UNIT CONSTRUCTION SUCH AS PARKING22 REQUIREMENTS, OWNER OCCUPANCY REQUIREMENTS, AND RESTRICTIVE23 SIZE AND DESIGN LIMITATIONS, WHICH HAS RESULTED IN ACCESSORY24 DWELLING UNIT PERMITS INCREASING TO TEN TO TWENTY PERCENT OF25 TOTAL NEW HOUSING PERMITS AND AN OVERALL INCREASE IN THE TOTAL26 HOUSING SUPPLY. SINCE CALIFORNIA IMPLEMENTED VARIOUS REFORMS TO27 HB24-1152-6- ENCOURAGE ACCESSORY DWELLING UNIT CONSTRUCTION, INCLUDING1 REQUIRING CITIES TO ALLOW ACCESSORY DWELLING UNITS AS A USE BY2 RIGHT, PREVENTING THE IMPOSITION OF PARKING REQUIREMENTS, AND3 PREVENTING OWNER OCCUPANCY REQUIREMENTS, ACCESSORY DWELLING4 UNIT CONSTRUCTION HAS INCREASED SIGNIFICANTLY IN CALIFORNIA.5 FOLLOWING REFORMS TO CALIFORNIA'S ACCESSORY DWELLING UNIT LAW6 IN 2016, ACCESSORY DWELLING UNIT DEVELOPMENT HAS INCREASED7 RAPIDLY FROM AROUND ONE THOUSAND ACCESSORY DWELLING UNITS8 PERMITTED IN 2016 TO OVER TWENTY-FOUR THOUSAND IN 2022, OR ABOUT9 TWENTY PERCENT OF NEW HOUSING PERMITS STATEWIDE, ACCORDING TO10 DATA FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY11 DEVELOPMENT AND ANALYSIS BY THE BIPARTISAN POLICY CENTER.12 (XIII) HOUSING SUPPLY IMPACTS HOUSING AFFORDABILITY, AND13 HOUSING PRICES ARE TYPICALLY HIGHER WHEN HOUSING SUPPLY IS14 RESTRICTED BY LOCAL LAND USE REGULATIONS IN A METROPOLITAN15 REGION, ACCORDING TO THE NATIONAL BUREAU OF ECONOMIC RESEARCH16 IN WORKING PAPERS SUCH AS "REGULATION AND HOUSING SUPPLY", "THE17 IMPACT OF ZONING ON HOUSING AFFORDABILITY", AND "THE IMPACT OF18 LOCAL RESIDENTIAL LAND USE RESTRICTIONS ON LAND VALUES ACROSS19 AND WITHIN SINGLE FAMILY HOUSING MARKETS";20 (XIV) INCREASING HOUSING SUPPLY MODERATES PRICE INCREASES21 AND IMPROVES HOUSING AFFORDABILITY ACROSS ALL INCOMES,22 ACCORDING TO STUDIES SUCH AS "THE ECONOMIC IMPLICATIONS OF23 HOUSING SUPPLY" IN THE JOURNAL OF ECONOMIC PERSPECTIVES AND24 "SUPPLY SKEPTICISM: HOUSING SUPPLY AND AFFORDABILITY" IN THE25 JOURNAL HOUSING POLICY DEBATE;26 (XV) ACADEMIC RESEARCH SUCH AS "THE IMPACT OF BUILDING27 HB24-1152-7- RESTRICTIONS ON HOUSING AFFORDABILITY" IN THE FEDERAL RESERVE1 BANK OF NEW YORK ECONOMIC POLICY REVIEW HAS IDENTIFIED ZONING2 AND OTHER LAND USE CONTROLS AS A PRIMARY DRIVER OF RISING3 HOUSING COSTS IN THE MOST EXPENSIVE HOUSING MARKETS;4 (XVI) ACCESSORY DWELLING UNITS OFFER AFFORDABLE AND5 ATTAINABLE OPTIONS TO LIVE IN HIGH-OPPORTUNITY NEIGHBORHOODS,6 WHICH CAN HELP IMPROVE EQUITY OUTCOMES REGIONALLY AND7 STATEWIDE. AN ANALYSIS OF ACCESSORY DWELLING UNIT PERMITTING IN8 CALIFORNIA FOUND THAT ACCESSORY DWELLING UNITS ARE TYPICALLY9 PERMITTED ON PARCELS WITH RELATIVELY GOOD ACCESS TO JOBS10 COMPARED TO SURROUNDING AREAS, ACCORDING TO "WHERE WILL11 ACCESSORY DWELLING UNITS SPROUT UP WHEN A STATE LETS THEM12 GROW? EVIDENCE FROM CALIFORNIA" IN CITYSCAPE: A JOURNAL OF13 POLICY DEVELOPMENT AND RESEARCH.14 (XVII) LOCAL GOVERNMENT REGULATION OF ACCESSORY15 DWELLING UNITS VARIES SIGNIFICANTLY WITHIN REGIONS AND STATEWIDE16 IN COLORADO IN TERMS OF WHERE THEY ARE ALLOWED, THE DIMENSIONAL17 AND DESIGN RESTRICTIONS APPLIED, AND OTHER REQUIREMENTS. THIS18 INCONSISTENCY INHIBITS THE DEVELOPMENT OF A ROBUST MARKET OF19 ACCESSORY DWELLING UNIT DEVELOPERS, MODULAR ACCESSORY20 DWELLING UNIT DESIGNS, AND ASSOCIATED COST REDUCTIONS. COLORADO21 IS SIMILAR TO MOST STATES IN THIS REGARD, AND, ACCORDING TO22 "ZONING BY A THOUSAND CUTS" IN THE PEPPERDINE LAW REVIEW,23 WHICH ANALYZED ACCESSORY DWELLING UNIT REGULATIONS ACROSS24 CONNECTICUT, "THE HIGH DEGREE OF REGULATORY VARIATION THWARTS25 THE DEVELOPMENT OF PROTOTYPE DESIGNS OR PREFABRICATED26 [ACCESSORY DWELLING UNITS] THAT COULD SATISFY DIFFERENT RULES27 HB24-1152-8- ACROSS JURISDICTIONS".1 (XVIII) MORE PERMISSIVE REGULATION BY LOCAL GOVERNMENTS2 OF ACCESSORY DWELLING UNITS PROVIDES A REASONABLE CHANCE FOR3 HOMEOWNERS TO CONSTRUCT OR CONVERT AN ACCESSORY DWELLING4 UNIT AND THEREBY INCREASE HOUSING SUPPLY, STABILIZE HOUSING5 COSTS, AND CONTRIBUTE TO AFFORDABLE AND EQUITABLE HOME6 OWNERSHIP TO ADEQUATELY MEET THE HOUSING NEEDS OF A GROWING7 COLORADO POPULATION.8 (b) THEREFORE, THE GENERAL ASSEMBLY DECLARES THAT9 INCREASING THE HOUSING SUPPLY THROUGH THE CONSTRUCTION OR10 CONVERSION OF ACCESSORY DWELLING UNITS IS A MATTER OF MIXED11 STATEWIDE AND LOCAL CONCERN.12 29-35-102. Definitions. AS USED IN THIS PART 1, UNLESS THE13 CONTEXT OTHERWISE REQUIRES:14 (1) "ACCESSIBLE UNIT" MEANS A HOUSING UNIT THAT SATISFIES15 THE REQUIREMENTS OF THE FEDERAL "FAIR HOUSING ACT", 42 U.S.C. SEC.16 3601 ET SEQ., AS AMENDED, AND INCORPORATES UNIVERSAL DESIGN.17 (2) "ACCESSORY DWELLING UNIT" MEANS AN INTERNAL,18 ATTACHED, OR DETACHED DWELLING UNIT THAT:19 (a) PROVIDES COMPLETE INDEPENDENT LIVING FACILITIES FOR ONE20 OR MORE INDIVIDUALS;21 (b) IS LOCATED ON THE SAME LOT AS A PROPOSED OR EXISTING22 PRIMARY RESIDENCE; AND23 (c) INCLUDES FACILITIES FOR LIVING, SLEEPING, EATING, COOKING,24 AND SANITATION.25 (3) "ACCESSORY DWELLING UNIT SUPPORTIVE JURISDICTION"26 MEANS A LOCAL GOVERNMENT THAT THE DIVISION HAS CERTIFIED27 HB24-1152-9- PURSUANT TO SECTION 29-35-104 AS AN ACCESSORY DWELLING UNIT1 SUPPORTIVE JURISDICTION.2 (4) "ACCESSORY USE" MEANS A STRUCTURE OR THE USE OF A3 STRUCTURE ON THE SAME LOT WITH, AND OF A NATURE CUSTOMARILY4 INCIDENTAL AND SUBORDINATE TO, THE PRINCIPAL STRUCTURE OR USE OF5 THE STRUCTURE.6 (5) (a) (I) "ADMINISTRATIVE APPROVAL PROCESS" MEANS A7 PROCESS:8 (A) IN WHICH A DEVELOPMENT APPLICATION IS APPROVED,9 APPROVED WITH CONDITIONS, OR DENIED BY LOCAL GOVERNMENT10 ADMINISTRATIVE STAFF BASED SOLELY ON ITS COMPLIANCE WITH11 OBJECTIVE STANDARDS SET FORTH IN ZONING OR OTHER LOCAL LAWS; AND12 (B) THAT DOES NOT REQUIRE, AND CANNOT BE ELEVATED TO13 REQUIRE, A PUBLIC HEARING, A RECOMMENDATION, OR A DECISION BY AN14 ELECTED OR APPOINTED PUBLIC BODY, OR HEARING OFFICER.15 (II) NOTWITHSTANDING SUBSECTION (19)(a)(I) OF THIS SECTION,16 AN ADMINISTRATIVE APPROVAL PROCESS MAY REQUIRE AN APPOINTED17 HISTORIC PRESERVATION COMMISSION TO MAKE A DECISION, OR TO MAKE18 A RECOMMENDATION TO LOCAL GOVERNMENT ADMINISTRATIVE STAFF,19 REGARDING A DEVELOPMENT APPLICATION INVOLVING A HISTORIC20 PROPERTY LISTED ON THE NATIONAL REGISTER OF HISTORIC PLACES, THE21 COLORADO STATE REGISTER OF HISTORIC PROPERTIES, OR DESIGNATED BY22 THE LOCAL GOVERNMENT, PROVIDED THAT:23 (A) THE LOCAL GOVERNMENT HAS BEEN DESIGNATED AS A24 CERTIFIED LOCAL GOVERNMENT BY THE STATE HISTORIC PRESERVATION25 OFFICE; AND26 (B) THE DECISION OR RECOMMENDATION IS BASED ON STANDARDS27 HB24-1152-10- SET FORTH IN LOCAL LAW OR ESTABLISHED BY THE SECRETARY OF THE1 INTERIOR OF THE UNITED STATES.2 (b) AS USED IN THIS SUBSECTION (1), "OBJECTIVE STANDARD"3 MEANS A STANDARD THAT:4 (I) IS UNIFORMLY VERIFIABLE AND ASCERTAINABLE BY REFERENCE5 TO AN AVAILABLE EXTERNAL OR UNIFORM BENCHMARK OR CRITERION BY6 THE DEVELOPMENT APPLICANT OR PROPONENT AND THE PUBLIC BODY OR7 OFFICIAL PRIOR TO THE DEVELOPMENT APPLICANT'S OR PROPONENT'S8 FILING OF A DEVELOPMENT PROPOSAL; AND9 (II) DOES NOT REQUIRE THE DECISION-MAKER TO MAKE ONE OR10 MORE SUBJECTIVE DETERMINATIONS CONCERNING A DEVELOPMENT11 APPLICATION, INCLUDING BUT NOT LIMITED TO WHETHER THE12 APPLICATION:13 (A) IS CONSISTENT WITH LOCAL DEVELOPMENT PLANS;14 (B) IS OR CAN BE COMPATIBLE WITH THE LAND USE OR15 DEVELOPMENT OF THE AREA SURROUNDING THE AREA DESCRIBED IN THE16 APPLICATION;17 (C) REQUIRES INDIVIDUALIZED EVALUATIONS RELATING TO18 MITIGATION OF IMPACTS; OR19 (D) IS CONSISTENT WITH PUBLIC WELFARE, COMMUNITY, OR20 NEIGHBORHOOD CHARACTER.21 (6) "COUNTY" MEANS A COUNTY, INCLUDING A HOME RULE22 COUNTY BUT EXCLUDING A CITY AND COUNTY.23 (7) "DIVISION" MEANS THE DIVISION OF LOCAL GOVERNMENT24 CREATED IN SECTION 24-32-103.25 (8) "DWELLING UNIT" MEANS A SINGLE UNIT PROVIDING COMPLETE26 INDEPENDENT LIVING FACILITIES FOR ONE OR MORE INDIVIDUALS,27 HB24-1152-11- INCLUDING PERMANENT FACILITIES FOR COOKING, EATING, LIVING,1 SANITATION, AND SLEEPING.2 (9) "EXEMPT PARCEL" MEANS A PARCEL THAT IS:3 (a) NOT SERVED BY A DOMESTIC WATER AND SEWAGE TREATMENT4 SYSTEM, AS DEFINED IN SECTION 24-65.1-104 (5);5 (b) A HISTORIC PROPERTY THAT IS NOT WITHIN A HISTORIC6 DISTRICT; OR7 (c) IN A FLOODWAY OR IN A ONE HUNDRED YEAR FLOODPLAIN, AS8 IDENTIFIED BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY.9 (10) "HISTORIC DISTRICT" MEANS A DISTRICT ESTABLISHED BY10 LOCAL LAW THAT MEETS THE DEFINITION OF "DISTRICT" SET FORTH IN 3611 CFR 60.3 (d).12 (11) "HISTORIC PROPERTY" MEANS A PROPERTY LISTED:13 (a) ON THE NATIONAL REGISTER OF HISTORIC PLACES;14 (b) ON THE COLORADO STATE REGISTER OF HISTORIC PROPERTIES;15 OR16 (c) AS A CONTRIBUTING STRUCTURE OR HISTORIC LANDMARK BY17 A CERTIFIED LOCAL GOVERNMENT, AS DEFINED IN SECTION 39-22-514.518 (2)(b).19 (12) "LOCAL GOVERNMENT" MEANS A MUNICIPALITY, COUNTY, OR20 TRIBAL NATION WITH JURISDICTION IN COLORADO.21 (13) "LOCAL LAW" MEANS ANY CODE, LAW, ORDINANCE, POLICY,22 REGULATION, OR RULE ENACTED BY A LOCAL GOVERNMENT THAT23 GOVERNS THE DEVELOPMENT AND USE OF LAND, INCLUDING LAND USE24 CODES, ZONING CODES, AND SUBDIVISION CODES.25 (14) "LOW- AND MODERATE-INCOME HOUSEHOLD" MEANS A26 HOUSEHOLD THAT IS CONSIDERED LOW-, MODERATE-, OR MEDIUM-INCOME,27 HB24-1152-12- AS DETERMINED BY THE FEDERAL DEPARTMENT OF HOUSING AND URBAN1 DEVELOPMENT.2 (15) "METROPOLITAN PLANNING ORGANIZATION" MEANS A3 METROPOLITAN PLANNING ORGANIZATION UNDER THE "FEDERAL TRANSIT4 ACT OF 1998", 49 U.S.C. SEC. 5301 ET SEQ., AS AMENDED.5 (16) "MUNICIPALITY" MEANS A HOME RULE OR STATUTORY CITY6 OR TOWN, TERRITORIAL CHARTER CITY OR TOWN, OR CITY AND COUNTY.7 (17) "RESTRICTIVE DESIGN OR DIMENSION STANDARD" MEANS A8 STANDARD IN A LOCAL LAW THAT:9 (a) REQUIRES AN ARCHITECTURAL STYLE, BUILDING MATERIAL, OR10 LANDSCAPING THAT IS MORE RESTRICTIVE FOR AN ACCESSORY DWELLING11 UNIT THAN FOR A SINGLE-UNIT DETACHED DWELLING IN THE SAME ZONING12 DISTRICT;13 (b) DOES NOT ALLOW FOR ACCESSORY DWELLING UNIT SIZES14 BETWEEN FIVE HUNDRED AND EIGHT HUNDRED SQUARE FEET;15 (c) REQUIRES SIDE OR REAR SETBACKS FOR AN ACCESSORY16 DWELLING UNIT GREATER THAN THE SETBACKS REQUIRED FOR AN17 ACCESSORY BUILDING IN THE SAME ZONING DISTRICT, OR IF IT IS NOT18 CLEARLY ESTABLISHED IN THE SAME ZONING DISTRICT, IN THE CASE OF AN19 ACCESSORY DWELLING UNIT WITH A SINGLE STORY, REQUIRES SIDE OR20 REAR SETBACKS GREATER THAN FIVE FEET;21 (d) IS A MORE RESTRICTIVE MINIMUM LOT SIZE STANDARD FOR AN22 ACCESSORY DWELLING UNIT THAN FOR A SINGLE-UNIT DETACHED23 DWELLING IN THE SAME ZONING DISTRICT; OR24 (e) APPLIES MORE RESTRICTIVE AESTHETIC DESIGN OR25 DIMENSIONAL STANDARDS TO ACCESSORY DWELLING UNITS THAT ARE26 FACTORY-BUILT RESIDENTIAL STRUCTURES, AS DEFINED IN SECTION27 HB24-1152-13- 24-32-3302 (10), THAN OTHER ACCESSORY DWELLING UNITS.1 (18) (a) "SHORT-TERM RENTAL" MEANS THE RENTAL OF A LODGING2 UNIT FOR LESS THAN THIRTY DAYS. AS USED IN THIS SUBSECTION (18),3 "LODGING UNIT" MEANS ANY PROPERTY OR PORTION OF A PROPERTY THAT4 IS AVAILABLE FOR LODGING; EXCEPT THAT THE TERM EXCLUDES A HOTEL5 OR MOTEL UNIT.6 (b) NOTWITHSTANDING SUBSECTION (15)(a) OF THIS SECTION, A7 LOCAL GOVERNMENT MAY APPLY ITS OWN DEFINITION OF "SHORT-TERM8 RENTAL" FOR PURPOSES OF THIS PART 1.9 (19) "SINGLE-UNIT DETACHED DWELLING" MEANS A DETACHED10 BUILDING WITH A SINGLE DWELLING UNIT ON A SINGLE LOT.11 (20) "SUBJECT JURISDICTION" MEANS EITHER:12 (a) A MUNICIPALITY THAT BOTH HAS A POPULATION OF ONE13 THOUSAND OR MORE, AS REPORTED BY THE STATE DEMOGRAPHY OFFICE,14 AND IS WITHIN A METROPOLITAN PLANNING ORGANIZATION; OR15 (b) THE PORTION OF A COUNTY THAT IS BOTH WITHIN A CENSUS16 DESIGNATED PLACE WITH A POPULATION OF TEN THOUSAND OR MORE, AS17 REPORTED IN THE MOST RECENT DECENNIAL CENSUS, AND WITHIN A18 METROPOLITAN PLANNING ORGANIZATION.19 (21) "UNIVERSAL DESIGN" MEANS ANY DWELLING UNIT DESIGNED20 AND CONSTRUCTED TO BE SAFE AND ACCESSIBLE FOR ANY INDIVIDUAL21 REGARDLESS OF AGE OR ABILITIES.22 (22) "VISITABLE UNIT" MEANS A DWELLING UNIT THAT A PERSON23 WITH A DISABILITY CAN ENTER, MOVE AROUND THE PRIMARY ENTRANCE24 FLOOR OF, AND USE THE BATHROOM IN.25 29-35-103. Accessory dwelling unit requirements for a subject26 jurisdiction. (1) A SUBJECT JURISDICTION SHALL ALLOW, SUBJECT TO AN27 HB24-1152-14- ADMINISTRATIVE APPROVAL PROCESS, ONE ACCESSORY DWELLING UNIT AS1 AN ACCESSORY USE TO A SINGLE-UNIT DETACHED DWELLING IN ANY PART2 OF THE SUBJECT JURISDICTION WHERE THE JURISDICTION ALLOWS3 SINGLE-UNIT DETACHED DWELLINGS.4 (2) A SUBJECT JURISDICTION SHALL NOT:5 (a) REQUIRE NEW PARKING IN CONNECTION WITH THE6 CONSTRUCTION OR CONVERSION OF AN ACCESSORY DWELLING UNIT;7 (b) REQUIRE AN ACCESSORY DWELLING UNIT, OR ANY OTHER8 DWELLING ON THE SAME LOT AS AN ACCESSORY DWELLING UNIT, TO BE9 OWNER-OCCUPIED; OR10 (c) APPLY A RESTRICTIVE DESIGN OR DIMENSION STANDARD TO AN11 ACCESSORY DWELLING UNIT.12 (3) NOTHING IN THIS SECTION PREVENTS A SUBJECT JURISDICTION13 OR OTHER LOCAL GOVERNMENT FROM:14 (a) ALLOWING THE CONSTRUCTION OR CONVERSION OF AN15 ACCESSORY DWELLING UNIT THAT IS SMALLER THAN FIVE HUNDRED16 SQUARE FEET OR GREATER THAN EIGHT HUNDRED SQUARE FEET, OR17 RESTRICTING THE SIZE OF AN ACCESSORY DWELLING UNIT SO THAT IT IS NO18 LARGER THAN THE SIZE OF THE PRINCIPAL DWELLING UNIT ON THE SAME19 LOT AS THE ACCESSORY DWELLING UNIT;20 (b) ALLOWING THE CONSTRUCTION OR CONVERSION OF MULTIPLE21 ACCESSORY DWELLING UNITS ON THE SAME LOT;22 (c) APPLYING A DESIGN OR DIMENSION STANDARD TO AN23 ACCESSORY DWELLING UNIT THAT IS NOT A RESTRICTIVE DESIGN OR24 DIMENSION STANDARD;25 (d) ADOPTING OR ENFORCING A GENERALLY APPLICABLE26 REQUIREMENT FOR:27 HB24-1152-15- (I) THE PAYMENT OF AN IMPACT FEE OR OTHER SIMILAR1 DEVELOPMENT CHARGE, PURSUANT TO SECTION 29-20-104.5; OR2 (II) THE MITIGATION OF IMPACTS IN CONFORMANCE WITH THE3 REQUIREMENTS OF PART 2 OF ARTICLE 20 OF THIS TITLE 29;4 (e) ENACTING OR APPLYING A LOCAL LAW CONCERNING THE5 SHORT-TERM RENTAL OF AN ACCESSORY DWELLING UNIT OR ANY OTHER6 DWELLING ON THE SAME LOT AS AN ACCESSORY DWELLING UNIT;7 (f) APPLYING THE DESIGN STANDARDS AND PROCEDURES OF A8 HISTORIC DISTRICT TO A LOT ON WHICH AN ACCESSORY DWELLING UNIT IS9 ALLOWED IN THAT HISTORIC DISTRICT, INCLUDING A STANDARD OR10 PROCEDURE RELATED TO DEMOLITION;11 (g) APPLYING AND ENFORCING A LOCALLY ADOPTED LIFE SAFETY12 CODE, INCLUDING BUT NOT LIMITED TO, A BUILDING, FIRE, UTILITY, OR13 STORMWATER CODE;14 (h) ALLOWING THE CONSTRUCTION OF, OR ISSUING A PERMIT FOR15 THE CONSTRUCTION OF, A SINGLE-UNIT DETACHED DWELLING IN AN AREA16 ZONED FOR SINGLE-UNIT DETACHED DWELLINGS; OR17 (i) ENCOURAGING THE CONSTRUCTION OF ACCESSORY DWELLING18 UNITS THAT ARE, THROUGH THE APPLICATION OF LOCAL LAWS OR19 PROGRAMS, MADE AFFORDABLE TO HOUSEHOLDS UNDER CERTAIN INCOME20 LIMITS OR USED PRIMARILY TO HOUSE THE LOCAL WORKFORCE.21 (4) THIS SECTION ONLY APPLIES TO A PARCEL IN A SUBJECT22 JURISDICTION THAT IS NOT AN EXEMPT PARCEL.23 29-35-104. Accessory dwelling unit supportive jurisdiction24 report - certification of a jurisdiction as an accessory dwelling unit25 supportive jurisdiction. (1) (a) IN ORDER TO BE CERTIFIED AS AN26 ACCESSORY DWELLING UNIT SUPPORTIVE JURISDICTION BY THE DIVISION,27 HB24-1152-16- A LOCAL GOVERNMENT MUST SUBMIT TO THE DIVISION, IN A FORM AND1 MANNER DETERMINED BY THE DIVISION, A REPORT DEMONSTRATING2 EVIDENCE OF THE LOCAL GOVERNMENT:3 (I) COMPLYING WITH SECTION 29-35-103; AND4 (II) IMPLEMENTING ONE OR MORE OF THE FOLLOWING STRATEGIES:5 (A) WAIVING OR REDUCING ACCESSORY DWELLING UNIT-RELATED6 FEES THAT ARE INCURRED BY LOW- AND MODERATE-INCOME HOUSEHOLDS;7 (B) ENACTING LOCAL LAWS OR PROGRAMS THAT INCENTIVIZE THE8 AFFORDABILITY OF CERTAIN ACCESSORY DWELLING UNITS INCLUDING9 ACCESSORY DWELLING UNITS USED PRIMARILY TO HOUSE THE LOCAL10 WORKFORCE;11 (C) PRE-APPROVING PLANS FOR THE CONSTRUCTION OF ACCESSORY12 DWELLING UNITS;13 (D) IMPLEMENTING A PROGRAM TO PROVIDE EDUCATION AND14 TECHNICAL ASSISTANCE TO HOMEOWNERS TO CONSTRUCT OR CONVERT AN15 ACCESSORY DWELLING UNIT;16 (E) IMPLEMENTING A PROGRAM TO REGULATE THE USE OF17 ACCESSORY DWELLING UNITS FOR SHORT-TERM RENTALS;18 (F) ENACTING LOCAL LAWS THAT INCENTIVIZE THE CONSTRUCTION19 AND CONVERSION OF ACCESSIBLE AND VISITABLE ACCESSORY DWELLING20 UNITS;21 (G) ASSISTING PROPERTY OWNERS WITH ENSURING THAT22 PRE-EXISTING ACCESSORY DWELLING UNITS COMPLY WITH LOCAL LAWS;23 (H) ENABLING A PATHWAY FOR THE SEPARATE SALE OF AN24 ACCESSORY DWELLING UNIT;25 (I) ENACTING LOCAL LAWS THAT ENCOURAGE THE CONSTRUCTION26 OF ACCESSORY DWELLING UNITS THAT ARE FACTORY-BUILT RESIDENTIAL27 HB24-1152-17- STRUCTURES, AS DEFINED IN SECTION 24-32-3302 (10); OR1 (J) ANY OTHER STRATEGY THAT IS APPROVED BY THE DIVISION2 AND THAT ENCOURAGES THE CONSTRUCTION, CONVERSION, OR USE OF3 ACCESSORY DWELLING UNITS.4 (b) (I) ON OR BEFORE JUNE 30, 2025, DECEMBER 31, 2029, AND5 DECEMBER 31 OF EVERY THIRD YEAR THEREAFTER, A SUBJECT6 JURISDICTION SHALL SUBMIT THE REPORT DESCRIBED IN SUBSECTION (1)(a)7 OF THIS SECTION.8 (II) NOTWITHSTANDING SUBSECTION (1)(b)(I) OF THIS SECTION,9 THE DIVISION MAY ALLOW A SUBJECT JURISDICTION TO SUBMIT THE10 REPORT DESCRIBED IN SUBSECTION (1)(a) OF THIS SECTION NO MORE THAN11 SIX MONTHS AFTER THE DEADLINES DESCRIBED IN SUBSECTION (1)(b)(I) OF12 THIS SECTION IF THE SUBJECT JURISDICTION DEMONSTRATES, IN A FORM13 AND MANNER DETERMINED BY THE DIVISION, THAT THE SUBJECT14 JURISDICTION HAS:15 (A) INITIATED A PROCESS TO UPDATE ITS LOCAL LAWS AS16 NECESSARY TO COMPLY WITH THE REQUIREMENTS OF THE REPORT17 DESCRIBED IN SUBSECTION (1)(a) OF THIS SECTION;18 (B) A PLAN AND TIMELINE TO UPDATE ITS LOCAL LAWS AS19 NECESSARY TO COMPLY WITH THE REQUIREMENTS OF THE REPORT20 DESCRIBED IN SUBSECTION (1)(a) OF THIS SECTION; AND21 (C) PROVIDED AN EXPLANATION FOR NOT BEING ABLE TO MEET22 THE DEADLINES DESCRIBED IN SUBSECTION (1)(b)(I) OF THIS SECTION.23 (c) IF A LOCAL GOVERNMENT THAT IS NOT A SUBJECT JURISDICTION24 SUBMITS A REPORT PURSUANT TO SUBSECTION (1)(a) OF THIS SECTION,25 THAT LOCAL GOVERNMENT SHALL, AS PART OF THE REPORT, SUBMIT26 EVIDENCE OF COMPLYING WITH THE REQUIREMENTS FOR A SUBJECT27 HB24-1152-18- JURISDICTION DESCRIBED IN SECTION 29-35-103.1 (2) (a) WITHIN NINETY DAYS OF RECEIVING A LOCAL2 GOVERNMENT'S REPORT SUBMITTED PURSUANT TO SUBSECTION (1)(a) OF3 THIS SECTION, THE DIVISION SHALL REVIEW THE REPORT, EITHER APPROVE4 OR REJECT THE REPORT, AND PROVIDE FEEDBACK TO THE LOCAL5 GOVERNMENT ON THE REPORT.6 (b) IF THE DIVISION APPROVES A LOCAL GOVERNMENT'S REPORT7 SUBMITTED PURSUANT TO SUBSECTION (1)(a) OF THIS SECTION, THE8 DIVISION SHALL ISSUE TO THAT LOCAL GOVERNMENT A CERTIFICATE9 INDICATING THAT THE LOCAL GOVERNMENT QUALIFIES AS AN ACCESSORY10 DWELLING UNIT SUPPORTIVE JURISDICTION UNTIL THREE YEARS FROM11 WHEN THE LOCAL GOVERNMENT SUBMITTED THE REPORT.12 (c) IF THE DIVISION REJECTS A LOCAL GOVERNMENT'S REPORT13 SUBMITTED PURSUANT TO SUBSECTION (1)(a) OF THIS SECTION, THE14 DIVISION MAY GRANT THE LOCAL GOVERNMENT AN ADDITIONAL ONE15 HUNDRED TWENTY DAYS TO CORRECT ANY DEFICIENCIES IDENTIFIED IN16 THE REPORT AND RESUBMIT AN AMENDED REPORT. WITHIN NINETY DAYS17 OF RECEIVING AN AMENDED REPORT, THE DIVISION SHALL REVIEW THE18 AMENDED REPORT, EITHER APPROVE OR REJECT THE AMENDED REPORT,19 AND PROVIDE FEEDBACK ON THE AMENDED REPORT.20 (3) THE DIVISION, IN CONSULTATION WITH THE DEPARTMENT OF21 TRANSPORTATION, THE COLORADO ENERGY OFFICE, AND THE COLORADO22 OFFICE OF ECONOMIC DEVELOPMENT, MAY DEVELOP POLICIES AND23 PROCEDURES AS NECESSARY TO IMPLEMENT THIS SECTION.24 29-35-105. Accessory dwelling unit fee reduction and25 encouragement grant program - created - application - criteria -26 awards - fund - reporting requirements - rules - definitions - repeal.27 HB24-1152-19- (1) THE ACCESSORY DWELLING UNIT FEE REDUCTION AND1 ENCOURAGEMENT GRANT PROGRAM IS CREATED IN THE DIVISION TO2 PROVIDE GRANTS TO ACCESSORY DWELLING UNIT SUPPORTIVE3 JURISDICTIONS FOR ACTIVITIES THAT PROMOTE THE CONSTRUCTION OF4 ACCESSORY DWELLING UNITS, INCLUDING BUT NOT LIMITED TO,5 OFFSETTING COSTS INCURRED IN CONNECTION WITH DEVELOPING6 PRE-APPROVED ACCESSORY DWELLING UNIT PLANS, PROVIDING TECHNICAL7 ASSISTANCE TO PERSONS CONVERTING OR CONSTRUCTING ACCESSORY8 DWELLING UNITS, OR WAIVING OR REDUCING ACCESSORY DWELLING UNIT9 ASSOCIATED FEES AND OTHER REQUIRED COSTS.10 (2) GRANT RECIPIENTS MAY USE THE MONEY RECEIVED THROUGH11 THE GRANT PROGRAM TO OFFSET BOTH ELIGIBLE COSTS AND THE COST OF12 WAIVING OR REDUCING REASONABLE AND NECESSARY ACCESSORY13 DWELLING UNIT FEES AND OTHER REQUIRED COSTS FOR:14 (a) LOW- AND MODERATE-INCOME HOUSEHOLDS;15 (b) AFFORDABLE ACCESSORY DWELLING UNITS;16 (c) ACCESSIBLE OR VISITABLE ACCESSORY DWELLING UNITS;17 (d) ACCESSORY DWELLING UNITS USED AS LONG-TERM RENTALS18 FOR MEMBERS OF THE LOCAL WORKFORCE; OR19 (e) ACCESSORY DWELLING UNITS USED TO SUPPORT OTHER20 DEMONSTRATED HOUSING NEEDS IN THE COMMUNITY.21 (3) THE DIVISION SHALL ADMINISTER THE GRANT PROGRAM AND,22 SUBJECT TO AVAILABLE APPROPRIATIONS, PROVIDE TECHNICAL23 ASSISTANCE, RECEIVE GRANT APPLICATIONS AND AWARD GRANTS AS24 PROVIDED IN THIS SECTION.25 (4) TO RECEIVE A GRANT, AN ACCESSORY DWELLING UNIT26 SUPPORTIVE JURISDICTION MUST SUBMIT AN APPLICATION TO THE DIVISION27 HB24-1152-20- IN ACCORDANCE WITH THE POLICIES AND PROCEDURES DEVELOPED BY THE1 DIVISION PURSUANT TO SUBSECTION (9) OF THIS SECTION. AT A MINIMUM,2 THE APPLICATION MUST INCLUDE THE FOLLOWING:3 (a) A COPY OF THE CERTIFICATE ISSUED BY THE DIVISION4 PURSUANT TO SECTION 29-35-104 CERTIFYING THAT THE LOCAL5 GOVERNMENT IS AN ACCESSORY DWELLING UNIT SUPPORTIVE6 JURISDICTION;7 (b) THE NUMBER OF ACCESSORY DWELLING UNITS THAT THE LOCAL8 GOVERNMENT HAS PERMITTED AND WHEN THE LOCAL GOVERNMENT9 PERMITTED THOSE ACCESSORY DWELLING UNITS;10 (c) THE TYPE AND COSTS OF FEES AND OTHER ELIGIBLE COSTS THAT11 THE LOCAL GOVERNMENT IS PROPOSING TO USE A GRANT AWARD TO PAY12 FOR;13 (d) THE NUMBER OF ACCESSORY DWELLING UNITS THAT THE LOCAL14 GOVERNMENT EXPECTS TO SUPPORT WITH A GRANT AWARD AND THE15 PERIOD FOR WHICH THE LOCAL GOVERNMENT INTENDS TO SUPPORT THOSE16 ACCESSORY DWELLING UNITS; AND17 (e) INFORMATION ABOUT THE TYPES OF HOUSEHOLDS AND18 ACCESSORY DWELLING UNITS THAT THE LOCAL GOVERNMENT INTENDS TO19 SUPPORT WITH A GRANT AWARD, SUCH AS WHETHER THE LOCAL20 GOVERNMENT INTENDS TO SUPPORT LOW- AND MODERATE-INCOME21 HOUSEHOLDS, AFFORDABLE ACCESSORY DWELLING UNITS, ACCESSIBLE OR22 VISITABLE ACCESSORY DWELLING UNITS, ACCESSORY DWELLING UNITS FOR23 HOUSING THE LOCAL WORKFORCE, OR ACCESSORY DWELLING UNITS24 SUPPORTING OTHER DEMONSTRATED HOUSING NEEDS IN THE COMMUNITY.25 (5) THE DIVISION SHALL REVIEW THE APPLICATIONS RECEIVED26 PURSUANT TO SUBSECTION (4) OF THIS SECTION. IN AWARDING GRANTS,27 HB24-1152-21- THE DIVISION SHALL GIVE PRIORITY TO LOCAL GOVERNMENTS THAT:1 (a) IMPOSE ACCESSORY DWELLING UNIT FEES AND COSTS THAT ARE2 REASONABLE AND NECESSARY; AND3 (b) HAVE DEMONSTRATED A SIGNIFICANT COMMITMENT TO4 FURTHER CONSTRUCTION AND CONVERSION OF ACCESSORY DWELLING5 UNITS THROUGH THE ADOPTION OF STRATEGIES DESCRIBED IN SECTION6 29-35-104 (1)(a)(II).7 (6) IN AWARDING A GRANT, THE DIVISION SHALL AWARD A LOCAL8 GOVERNMENT AN AMOUNT EQUAL TO NO MORE THAN TEN THOUSAND9 DOLLARS PER ACCESSORY DWELLING UNIT PERMITTED BY THE LOCAL10 GOVERNMENT, TO BE REIMBURSED BASED ON THE NUMBER OF PERMITTED11 ACCESSORY DWELLING UNITS.12 (7) (a) THE ACCESSORY DWELLING UNIT FEE REDUCTION AND13 ENCOURAGEMENT GRANT PROGRAM FUND IS CREATED IN THE STATE14 TREASURY. THE FUND CONSISTS OF ANY MONEY THAT THE GENERAL15 ASSEMBLY MAY TRANSFER OR APPROPRIATE TO THE FUND AND GIFTS,16 GRANTS, OR DONATIONS CREDITED TO THE FUND. THE STATE TREASURER17 SHALL CREDIT ALL INTEREST AND INCOME DERIVED FROM THE DEPOSIT18 AND INVESTMENT OF MONEY IN THE FUND TO THE FUND.19 (b) SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL20 ASSEMBLY, THE DIVISION MAY EXPEND MONEY FROM THE FUND FOR THE21 PURPOSE OF IMPLEMENTING AND ADMINISTERING THE GRANT PROGRAM.22 (c) ON OR BEFORE JUNE 30, 2024, THE STATE TREASURER SHALL23 TRANSFER TEN MILLION DOLLARS FROM THE GENERAL FUND TO THE FUND.24 (8) IN ACCORDANCE WITH THE POLICIES AND PROCEDURES25 DEVELOPED BY THE DIVISION PURSUANT TO SUBSECTION (9) OF THIS26 SECTION, EACH LOCAL GOVERNMENT THAT RECEIVES A GRANT THROUGH27 HB24-1152-22- THE GRANT PROGRAM SHALL SUBMIT A REPORT TO THE DIVISION. AT A1 MINIMUM, THE REPORT MUST INCLUDE THE FOLLOWING INFORMATION:2 (a) THE NUMBER OF ACCESSORY DWELLING UNITS WITH3 ACCESSORY DWELLING UNIT FEES OR COSTS THAT LOCAL GOVERNMENTS4 REDUCED OR WAIVED IN THE PAST YEAR IN CONNECTION WITH THE GRANT5 PROGRAM;6 (b) THE TOTAL AMOUNT OF ELIGIBLE COSTS THAT LOCAL7 GOVERNMENTS INCURRED AND WERE REIMBURSED FOR THROUGH THE8 GRANT PROGRAM IN THE PAST YEAR IN CONNECTION WITH THE GRANT9 PROGRAM;10 (c) THE NUMBER OF THE ACCESSORY DWELLING UNITS DESCRIBED11 IN SUBSECTION (8)(a) OF THIS SECTION THAT WERE BUILT IN THE PAST12 YEAR THAT WERE BUILT BY LOW- AND MODERATE-INCOME HOUSEHOLDS,13 THAT ARE AFFORDABLE ACCESSORY DWELLING UNITS, THAT ARE14 VISITABLE OR ACCESSIBLE ACCESSORY DWELLING UNITS, OR THAT ARE15 ACCESSORY DWELLING UNITS USED AS LONG-TERM RENTALS FOR MEMBERS16 OF THE LOCAL WORKFORCE;17 (d) THE NUMBER OF ACCESSORY DWELLING UNITS THAT ARE18 FACTORY-BUILT RESIDENTIAL STRUCTURES, AS DEFINED IN SECTION19 24-32-3302 (10); AND20 (e) THE NUMBER OF ACCESSORY DWELLING UNIT PERMITS21 AWARDED, DENIED, OR IN PROGRESS IN THE LOCAL GOVERNMENT'S22 JURISDICTION.23 (9) THE DIVISION SHALL IMPLEMENT THE GRANT PROGRAM IN24 ACCORDANCE WITH THIS SECTION. THE DIVISION SHALL DEVELOP, IN25 CONSULTATION WITH THE DEPARTMENT OF TRANSPORTATION, THE26 COLORADO ENERGY OFFICE, AND THE COLORADO OFFICE OF ECONOMIC27 HB24-1152-23- DEVELOPMENT, POLICIES AND PROCEDURES BOTH AS REQUIRED IN THIS1 SECTION AND AS MAY BE NECESSARY TO IMPLEMENT THE GRANT2 PROGRAM.3 (10) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE4 REQUIRES:5 (a) "ACCESSORY DWELLING UNIT FEE" MEANS A REASONABLE AND6 NECESSARY FEE COLLECTED OR REQUIRED BY A LOCAL GOVERNMENT IN7 CONNECTION WITH THE CONSTRUCTION OR CONVERSION OF AN ACCESSORY8 DWELLING UNIT. SUCH A FEE MAY INCLUDE IMPACT FEES.9 (b) (I) "ELIGIBLE COSTS" MEANS COSTS INCURRED BY A LOCAL10 GOVERNMENT AND DETERMINED BY THE DIVISION TO BE INCURRED IN11 CONNECTION WITH DEVELOPING PRE-APPROVED ACCESSORY DWELLING12 UNIT PLANS, PROVIDING TECHNICAL ASSISTANCE TO PERSONS CONVERTING13 OR CONSTRUCTING ACCESSORY DWELLING UNITS, OR OTHER REASONABLE14 AND NECESSARY FEES LEVIED BY OR COSTS BORNE BY THE LOCAL15 GOVERNMENT FOR THE CONSTRUCTION OR CONVERSION OF AN ACCESSORY16 DWELLING UNIT.17 (II) NOTWITHSTANDING SUBSECTION (10)(b)(I) OF THIS SECTION,18 IN ORDER FOR COSTS INCURRED BY A LOCAL GOVERNMENT IN CONNECTION19 WITH DEVELOPING PRE-APPROVED ACCESSORY DWELLING UNIT PLANS TO20 QUALIFY AS ELIGIBLE COSTS, AT LEAST ONE SUCH PRE-APPROVED21 ACCESSORY DWELLING UNIT PLAN MUST BE FOR AN ACCESSIBLE OR22 VISITABLE ACCESSORY DWELLING UNIT.23 (c) "FUND" MEANS THE ACCESSORY DWELLING UNIT FEE24 REDUCTION AND ENCOURAGEMENT GRANT PROGRAM FUND CREATED IN25 SUBSECTION (7) OF THIS SECTION.26 (d) "GRANT PROGRAM" MEANS THE ACCESSORY DWELLING UNIT27 HB24-1152-24- FEE REDUCTION AND ENCOURAGEMENT GRANT PROGRAM CREATED IN THIS1 SECTION.2 (11) THIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2030.3 SECTION 2. In Colorado Revised Statutes, 24-46-104, add4 (1)(q) as follows:5 24-46-104. Powers and duties of commission - repeal. (1) The6 commission has the following powers and duties:7 (q) TO EXPEND EIGHT MILLION DOLLARS TO CONTRACT WITH THE8 COLORADO HOUSING AND FINANCE AUTHORITY, CREATED IN PART 7 OF9 ARTICLE 4 OF TITLE 29, FOR THE OPERATION OF ONE OR MORE OF THE10 FOLLOWING PROGRAMS TO BENEFIT RESIDENTS OF LOCAL GOVERNMENTS11 THAT HAVE BEEN CERTIFIED AS ACCESSORY DWELLING UNIT SUPPORTIVE12 JURISDICTIONS BY THE DIVISION OF LOCAL GOVERNMENT PURSUANT TO13 SECTION 29-35-104:14 (I) AN ACCESSORY DWELLING UNIT LOSS RESERVE PROGRAM THAT15 OFFERS AFFORDABLE LOANS FOR THE CONSTRUCTION OR CONVERSION OF16 ACCESSORY DWELLING UNITS;17 (II) A PROGRAM THAT ALLOWS FOR THE BUYING DOWN OF18 INTEREST RATES ON LOANS MADE IN CONNECTION WITH THE19 CONSTRUCTION OR CONVERSION OF ACCESSORY DWELLING UNITS;20 (III) A PROGRAM THAT OFFERS DOWN PAYMENT ASSISTANCE IN21 CONNECTION WITH ACCESSORY DWELLING UNITS; AND22 (IV) A PROGRAM IN WHICH THE COLORADO HOUSING AND FINANCE23 AUTHORITY OFFERS DIRECT LOANS IN CONNECTION WITH THE24 CONSTRUCTION OR CONVERSION OF ACCESSORY DWELLING UNITS.25 SECTION 3. In Colorado Revised Statutes, 24-67-105, add (5.5)26 as follows:27 HB24-1152-25- 24-67-105. Standards and conditions for planned unit1 development - definitions. (5.5) (a) IN A SUBJECT JURISDICTION, ANY2 PLANNED UNIT DEVELOPMENT RESOLUTION OR ORDINANCE THAT IS3 ADOPTED OR APPROVED ON OR AFTER THE EFFECTIVE DATE OF THIS4 SUBSECTION (5.5), AND THAT ALLOWS THE CONSTRUCTION OF ONE OR5 MORE SINGLE-UNIT DETACHED DWELLINGS, MUST NOT RESTRICT THE6 CREATION OF AN ACCESSORY DWELLING UNIT AS AN ACCESSORY USE TO7 ANY SINGLE-UNIT DETACHED DWELLING MORE THAN THE LOCAL LAW THAT8 APPLIES TO ACCESSORY DWELLING UNIT DEVELOPMENT OUTSIDE OF A9 PLANNED UNIT DEVELOPMENT OR IN ANY WAY THAT IS PROHIBITED BY10 SECTION 29-35-103.11 (b) IN A SUBJECT JURISDICTION, ANY PLANNED UNIT DEVELOPMENT12 RESOLUTION OR ORDINANCE THAT WAS ADOPTED OR APPROVED BEFORE13 THE EFFECTIVE DATE OF THIS SUBSECTION (5.5), THAT ALLOWS THE14 CONSTRUCTION OF ONE OR MORE SINGLE-UNIT DETACHED DWELLINGS,15 AND THAT RESTRICTS THE CONSTRUCTION OF AN ACCESSORY DWELLING16 UNIT AS AN ACCESSORY USE TO ANY SINGLE-UNIT DETACHED DWELLING17 MORE THAN THE LOCAL LAW THAT APPLIES TO ACCESSORY DWELLING UNIT18 DEVELOPMENT OUTSIDE OF A PLANNED UNIT DEVELOPMENT:19 (I) SHALL NOT BE INTERPRETED OR ENFORCED TO RESTRICT THE20 CREATION OF AN ACCESSORY DWELLING UNIT AS AN ACCESSORY USE TO21 ANY SINGLE-UNIT DETACHED DWELLING UNIT IN ANY WAY THAT IS22 PROHIBITED BY SECTION 29-35-103; AND23 (II) MAY BE SUPERSEDED BY THE ADOPTION OF A LOCAL LAW24 PURSUANT TO SECTION 29-35-103.25 (c) NOTWITHSTANDING SUBSECTION (5.5)(b) OF THIS SECTION, A26 LOCAL GOVERNMENT MAY ADOPT CONFORMING AMENDMENTS TO ANY27 HB24-1152-26- SUCH PLANNED UNIT DEVELOPMENT.1 (d) AS USED IN THIS SUBSECTION (5.5), UNLESS THE CONTEXT2 OTHERWISE REQUIRES:3 (I) "ACCESSORY DWELLING UNIT" HAS THE SAME MEANING AS SET4 FORTH IN SECTION 29-35-102 (2).5 (II) "LOCAL LAW" HAS THE SAME MEANING AS SET FORTH IN6 SECTION 29-35-102 (13).7 (III) "SUBJECT JURISDICTION" HAS THE SAME MEANING AS SET8 FORTH IN SECTION 29-35-102 (20).9 SECTION 4. In Colorado Revised Statutes, 38-33.3-106.5, add10 (3) as follows:11 38-33.3-106.5. Prohibitions contrary to public policy -12 patriotic, political, or religious expression - public rights-of-way - fire13 prevention - renewable energy generation devices - affordable14 housing - drought prevention measures - child care - definitions.15 (3) (a) IN A SUBJECT JURISDICTION OR AN ACCESSORY DWELLING UNIT16 SUPPORTIVE JURISDICTION, NO PROVISION OF A DECLARATION, BYLAW, OR17 RULE OF AN ASSOCIATION THAT IS ADOPTED ON OR AFTER THE EFFECTIVE18 DATE OF THIS SUBSECTION (3) MAY RESTRICT THE CREATION OF AN19 ACCESSORY DWELLING UNIT AS AN ACCESSORY USE TO ANY SINGLE-UNIT20 DETACHED DWELLING IN ANY WAY THAT IS PROHIBITED BY SECTION21 29-35-103, AND ANY PROVISION OF A DECLARATION, BYLAW, OR RULE22 THAT INCLUDES SUCH A RESTRICTION IS VOID AS A MATTER OF PUBLIC23 POLICY.24 (b) IN A SUBJECT JURISDICTION OR AN ACCESSORY DWELLING UNIT25 SUPPORTIVE JURISDICTION, NO PROVISION OF A DECLARATION, BYLAW, OR26 RULE OF AN ASSOCIATION THAT IS ADOPTED BEFORE THE EFFECTIVE DATE27 HB24-1152-27- OF THIS SUBSECTION (3) MAY RESTRICT THE CREATION OF AN ACCESSORY1 DWELLING UNIT AS AN ACCESSORY USE TO ANY SINGLE-UNIT DETACHED2 DWELLING IN ANY WAY THAT IS PROHIBITED BY SECTION 29-35-103, AND3 ANY PROVISION OF A DECLARATION, BYLAW, OR RULE THAT INCLUDES4 SUCH A RESTRICTION IS VOID AS A MATTER OF PUBLIC POLICY.5 (c) AS USED IN THIS SUBSECTION (3), UNLESS THE CONTEXT6 OTHERWISE REQUIRES:7 (I) "ACCESSORY DWELLING UNIT" HAS THE SAME MEANING AS SET8 FORTH IN SECTION 29-35-102 (2).9 (II) "ACCESSORY DWELLING UNIT SUPPORTIVE JURISDICTION" HAS10 THE SAME MEANING AS SET FORTH IN SECTION 29-35-102 (3).11 (III) "SUBJECT JURISDICTION" HAS THE SAME MEANING AS SET12 FORTH IN SECTION 29-35-102 (20).13 SECTION 5. Safety clause. The general assembly finds,14 determines, and declares that this act is necessary for the immediate15 preservation of the public peace, health, or safety or for appropriations for16 the support and maintenance of the departments of the state and state17 institutions.18 HB24-1152-28- HB24-1152 OPPOSE UNLESS AMENDED OPPOSE HB24-1152 UNLESS AMENDED Accessory Dwelling Units WHAT DOES THE BILL DO? HB24-1152 imposes top-down residential zoning standards on select municipalities in Metropolitan Planning Organizations (MPOs) by making accessory dwelling units (ADUs) a “use by right” in single family zones. The bill would prohibit local governments from maintaining parking requirements, owner-occupancy rules, and so-called “restrictive” design or dimension standards. WHY YOU SHOULD OPPOSE UNLESS AMENDED Colorado Municipal League respectfully requests opposition, unless the bill is amended. This bill will require many local governments to change zoning requirements regardless of local needs. Many communities in Colorado already allow ADUs with reasonable requirements that meet the needs of the local community. This bill will undo the great work of municipalities across the state. If preemp- tions are replaced with incentives, municipalities can continue and expand their ongoing efforts. YOUR OPPOSITION IS RESPECTFULLY REQUESTED •HB24-1152 overrides current ADU programs that have reasonable requirements and incentives for housing production. •HB24-1152 focuses on preemption of local control instead of adequate financial incentives. •HB24-1152 tells Coloradans that they shouldn’t have a say in how their communities grow. CONTACT Bev Stables | CML legislative and policy advocate | 978-973-4401 | bstables@cml.org ATTACHMENT 3